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Res 2023-01-1359 Public Necessity For Acquisition of Permanent Right of Way 404 Hackberry Dr
CITY OF ANNA, TEXAS RESOLUTION NO. 2-0�23 -- O I — i 35 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, FINDING THAT A PUBLIC NECESSITY EXISTS FOR ACQUISITION OF A PERMANENT RIGHT OF WAY ON AND UNDER 0.272 ACRES OF REAL PROPERTY AND A TEMPORARY CONSTRUCTION EASEMENT PROVIDING LIMITED RIGHTS ON AND UNDER 0.017 ACRES OF REAL PROPERTY, MORE OR LESS; AUTHORIZING THE CITY MANAGER, STAFF, CONTRACTORS, AND THE CITY'S ATTORNEYS TO ACQUIRE SAID EASEMENTS BY ANY LAWFUL MEANS, INCLUDING BUT NOT LIMITED TO NEGOTIATIONS, AND, IF NECESSARY, PROCEEDINGS IN EMINENT DOMAIN; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Anna plans to construct and/or install road paving, public water and sanitary sewer utilities, public drainage, and associated appurtenances to meet the public need to provide paving, water, sanitary sewer, and drainage system improvements to benefit the City of Anna, its citizens and the general health, safety and welfare; and WHEREAS, it is necessary to acquire a certain permanent right of way and drainage easement not now held by the City of Anna for such paving, drainage, water, and sanitary sewer system improvements; and WHEREAS, it is necessary for the City to use its authority to pursue negotiations for the acquisition of said easements and/or to pursue the easements under power of eminent domain; and WHEREAS, the City Council of the City of Anna, Texas ("City Council"), after careful consideration, finds that a public necessity exists for acquisition of a permanent right of way on and under 0.272 acres of real property and a permanent drainage easement providing limited rights on and under 0.017 acres of real property, said tracts being more particularly described in Section 2 of this resolution, for the purposes of constructing, laying, maintaining, repairing and/or replacing of public paving, public water, public sanitary sewer lines, public drainage systems, and related appurtenances, and benefiting the public health, safety and welfare; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Incorporation of Recitals; Purpose 1.01 The City Council finds that the above -stated recitals are true and correct and said recitals are incorporated herein as if set forth in full for all purposes. CITY OF ANNA, TEXAS RESOLUTION NO. 13 Sq PAGE 1 OF 6 1.02 This resolution is intended to comply in all respects with Texas Government Code § 2206.001, et seq., Texas Local Government Code § 251.001, et seq., and Texas Property Code § 21.001 et seq., to the extent the provisions of such statutes are applicable, and to comply with all other applicable law. 1.03 The City Council, by this resolution, intends, if necessary, to exercise the City's powers of eminent domain under Texas Local Government Code § 251.001 and any and all other applicable law. Section 2. Easements to be Acquired (a) The necessary permanent right-of-way sought to be acquired on and under a portion of a tract of real property, said portion totaling approximately 0.272 acres of real property (the "Permanent Right -of -Way"), held by Sarah Martin, Donna Martin, Nelda Stanley, and/or others. Said approximate 0.272 acres of real property is generally aligned and described as shown in Exhibit A, attached to this resolution and incorporated herein by reference as if fully set forth for all purposes. The precise permanent right-of-way to be acquired may differ from what is shown in said alignment and description but said alignment and description approximates the general route and general area of the permanent right-of-way to be acquired. (b) The necessary temporary construction easement sought to be acquired will provide limited rights on and under a portion of a tract of real property, said portion totaling approximately 0.017 acres of real property (the "Temporary Construction Easement"), held by Sarah Martin, Donna Martin, Nelda Stanley, and/or others. Said approximate 0.017 acres of real property is generally aligned and described as shown in Exhibit A, attached to this resolution and incorporated herein by reference as if fully set forth for all purposes. The precise permanent drainage easement to be acquired may differ from what is shown in said alignment and description but said alignment and description approximates the general route and general area of the temporary construction easement to be acquired. Section 3. Finding of Public Necessity and Authorization to Take Action 3.01 The City Council finds a public necessity for the public welfare and convenience to acquire the Permanent Right -of -Way and Temporary Construction Easement identified in Section 2, above, for the purpose of constructing, laying, maintaining, repairing and/or replacing public paving, water systems, sanitary sewer lines, CITY OF ANNA, TEXAS RESOLUTION NO.135G PAGE 2 OF 6 public drainage systems, and related appurtenances. The City Council authorizes the City Manager, City staff and/or City consultants or contractors, and, Wolfe, Tidwell & McCoy, LLP, attorneys, and other legal counsel if determined necessary by said attorneys, to acquire the needed Permanent Right -of -Way and Temporary Construction Easement by any lawful means including but not limited to negotiations with landowners and, if necessary, proceedings in eminent domain. 3.02 The City Council by this resolution directs the City Manager, his staff, and Wolfe, Tidwell & McCoy, LLP, attorneys, and other legal counsel if determined necessary by said attorneys —as necessary and in the appropriate sequence —to have the Permanent Right -of -Way and Temporary Construction Easement appraised by a certified appraiser, to send the landowner(s) a copy of the appraisal and the State of Texas Landowner's Bill of Rights prepared by the Office of the Attorney General of Texas, to enter into good -faith negotiations with the landowner(s), to make a bona -fide offer and make any necessary initial and final monetary offers in an attempt to acquire the Permanent Right -of -Way and Temporary Construction Easement consistent with the appraisal(s), when appropriate, and to convey the City's desire to acquire the Permanent Right -of -Way and Temporary Construction Easement in an efficient manner, and, if necessary, to institute proceedings in eminent domain and take all necessary actions in such proceedings to condemn and acquire the Permanent Right -of -Way and Temporary Construction Easement. The City Council hereby authorizes and ratifies any such actions taken thus far, and hereby further asserts its full authority, to the greatest extent provided by law, to acquire the Permanent Right -of -Way and Temporary Construction Easement identified in Section 2, above. Section 4. Effective Date. This resolution shall take effect immediately upon its passage. PASSED AND APPROVED by the City Council of the City of Anna, Texas, this 2411, day of January, 2023. ATTESTED: L. Land, 1913 APPROVED: c GF� e Pike, Mayor CITY OF ANNA, TEXAS RESOLUTION NO. 13!Sq PAGE 3 OF 6 Sarah Martin et at 412512022 Exhibit A EXHIBIT "A" FIELD NOTE DESCRIPTION PERMANENT RIGHT-OF-WAY CITY OF ANNA, TEXAS Parcel Na 4 Collin County Being a 0.272 acre tract of land for right-of-way in the Henry Brantley Survey, Abstract, No. 071, City of Anna, Collin County, Texas, and being part of a called 2.892 acre tract of land, conveyed to Sarah Marin, Donna Martin and Nelda Stanley, by deed recorded in Instrument Number 20190530000609730, Deed Records of Collin County Texas (D.R.C.C.T.), said right-of-way being more particularly described as follows: BEGINNING at a point for comer, said point being on the southeast property corner of said 2.892 acne Martin tract and also being on the southwest property corner of a called 0.278 acre tract of land, conveyed to Wanda Burk, Wayne McCullough, Norma Risher, Mary Compton, Linda Risner and Willie Risner, by deed recorded in Instrument Number 20180619000756710, said point bears N 68025'54" W, a distance of 119.22 feet, from a 1/2-inch iron rod found on the northwest property comer of Lot 1, Block 1,ULAJ Addition, an addition to the City of Anna by plat recorded in Instrument Number 20080328010001220, PRCCT, said point also bears N 43°40'58" W, a distance of 69.42 feet from a 1/2" iron rod found on the northeast property corner of the called 0.36 acre Lot 5 of the Slater Hollow Phase I Addition to the City of Anna, conveyed to Ely Bennett, by deed recorded in Instrument Number 20100713000715550, DRCCT; THENCE, N 89°48'32" W, along the south property line of said 2.892 acre Martin tract, a distance of 253.35 feet to a point for corner, said point being on the southwest property comer of said 2.892 acre Martin tract, and also being on the southeast property of a called 0.0586 acre tract of land conveyed to James &. Lori Rivera, by deed recorded in Instrument Number 20090801000936340, DRCCT; THENCE, N 03°09'11" E, along the west property line of said 2.892 acre Martin tract, and along the east property litre of said 0.0586 acne Rivera tract, a distance of 47.14 feet to a point for corner, said point being a 1/2-inch iron rod set with yellow cap stamped "BHC" on the new north right-of-way line of Haekberry Lane (variable width R.O.W.) THENCE, S 89°43'16" E, along the new north right-of-way line of said Hackberry Lane, a distance of 251.93 feet to a point for corner, said point being on the east property line of said 2.892 acne Martin tract, and also being on the west property line of said 0.278 acre Risner tract, said point also being a 1/2-inch iron rod set with yellow cap stamped "BHC"; Il'�hc�oc�Mt�301a162BmdcbcsryDrPs.lry��nlaryeROtiV'F�saneetPlu f�slmf�2016162 Psrcd04-Malln a Page I nj3 Exhibit A swwh Martin et at 412512022 Parcel No. 4 Collin County THENCE, S 01 °2678" W, along the east property line of said 2.892 acre Martin tract, a distance of 46.71 feet to the POINT OF BEGINNING, containing 0172 acres (11,846 square feet) of land, more or less. Notes: 1. Bearings and distances cited in this field note description are based on the Texas State Plane Coordinate System, NAD-83, Texas North Central Zone 4202. 2. Field survey concluded on 03/02/2022. 3. A Plat of even date herewith accompanies this Field Note Description. Gary C. Hendricks, P.E., RAL.S. Texas Registration No. 5073 Birkhofi', Hendricks & Carter, L.L.P. TBPELS Firm No. 100318-00 11910 Greenville Ave., Suite 600 Dallas, Texas 75243 H-Tm* lAwdd0161 W ft Wtm 1)r ih�np DrtlnVie Ra W�aKsrm� P1awDnca�t+oc�.t2o1s i G2_ Perosl bt Al,ria doe Page 2 of -3 x w ' E�CHIBIT "A" j � I ARAPAGE 30F3' l SH MARTIN. WNNA '�i3Oa V. � MARTIN, & NEWA 2mtaos nm um w off.�as+o STANLU 1 INSTF. #20190s=0609�30 ! __ ''�' 2voa0 2.s92 ACNM TR+�CT Ewa` ,moo,, .tea Rya fwwl tau KM M=UJM% NUM OM e I 13' rUPORARY CONSlRUCTlt?N FASFIII£NT I —II WALM ROM VU.W MM WM ROMI 0.01 T ACRFS �.4rid . 2018 SCW7758710 (756 SF.) fig istAr cRtm � I � l11ti6IiC35-EGRESS �. r IRS. pRaVM ROW POINT OF BEGINNING HACIUMM WE a" Sul" ars' —� E>w. M ` rtwn'm's - 1,9.22' mm m¢o go 11r I.R.F. Pf.1PdWMEhIT ,a, slnIE wIUM UAL 1/2' I.RF. fflUL—OF—WAY SUN 1.O. 6 NM RfiFERET�oCE SUM= 0.M AC ( 107704VMIOMSO l0S4WW** - 69 42' 1/2' I.R.F. (>r sm SF.) e I HENRY BRANW I BEl�l1M1tM t ORSTUC M SURYtY Our s Nm I MR t a ABSTRACT 071 2G1�OQ240001801a0 It+tStT. to �D1°07300071�"'0 PARCEL NO. 4 CITY OF ANNA, TEXAS 1. mmucs u0 OIS[Nm cm w Tm PLAT �olQ��1.�a cA Comm ME �' `� ne T SARAH MARTIN ET AL W 000[ft Z srslrst. taRO-®. TDfAS laorilll celllax 2CDIE .202. GM cuxt011 tr KS 2. MW S ON 03/0/2= •:••�•••••••••�•�•�•• 5073 PERMANENT RIGHT-OF-WAY ..i �. 1/T LR.S. = 1/r WM R1Ew SET M 0 40 r,y� a& St �CQ BIRKHOFF, HENDRICKS & CARTER, L.L.P. YEIAPRIL m ew STws 'w � SURV� PROFESSIONAL ET OWURS s. A RW MOTE GE=qW OF M WE 1 It�G! _ T11pcl.S lS FMM sea: SOM RW 100 IM0 2022 � �67 pmm MIS aw. 11910GrwwaloAvo.. Sui e600 • Datlat em 73213 (214)361.7900 Location Map Approximate Location of proposed Right -of -Way A mw.ic Irk 'Mi SLS Specialty Land Services LLC Sarah Louise Martin & Donna Gail Martin & Nelda Jean Stanley 404 W Hackberry Ln Anna, TX 75409 Dear Property Owner: As you are aware, it is necessary for the City of Anna (the "City") to acquire land on a tract of land with Legal Description, ABS A0071 HENRY BRANTLEY SURVEY, TRACT 29, 2.9164 ACRES, Collin County Property ID 2520275, located in Anna, TX, 75409. Specifically, the City's representatives have contacted you about the necessity for acquisition of the Property, which will be used for the municipal purposes in order to install public roadways, drainage, such appurtenant facilities as may be necessary, and other public uses. The City needs to obtain the Property free from all mortgages and liens. The City is vested with the authority of eminent domain under Chapter 251 of the Texas Local Government Code and by its home -rule charter. Pursuant to Chapter 21 of the Texas Property Code, the City, as a condemning authority, is required to follow certain procedural requirements. This correspondence serves as the City's Initial Offer Letter as required by Chapter 21 of the Texas Property Code. As a result of a professional appraisal, the City is willing to offer you the following offer of $103,893.00 for the Property. This initial offer is based upon the enclosed appraisal report conducted by Mitchell B. Todd, MAI, Michael A. Keane, MAI and Jonathan D. Martin of Todd Property Advisors with an effective date of July 21, 2022. For more details on the valuation, please consult that attached report. The appraisal attached also does not include any damages to the remainder. These statements are made in accordance with Texas Property Code Section 21.0113(b)(1)(B). You will also find enclosed a copy of the Texas Landowner's Bill of Rights as published by the Texas Attorney General. It provides you information relating to your valuable real property ownership rights as well as an overview of the condemnation process. A copy of the proposed conveyance instruments to convey the land from the owner to the City of Anna in consideration for the payment of the offer is enclosed as required by state law. Please be advised that you are required to disclose to the City any and all current and existing appraisal reports that you have produced or acquired to determine your opinion of value of the Property. Section 21.0111(b) of the Texas Property Code requires that you disclose these reports not later than the earlier of (1) the 1 Oth day after the date of receipt of an appraisal report; or (2) the third business day before the date of a special commissioner's hearing if an appraisal report is to be used at the hearing. The law gives you the right to either discuss this or any offer or agreement regarding the City's attempted acquisition of the Property with others or to keep the offer or agreement confidential, unless the offer or agreement is subject to Chapter 552, Texas Government Code. If the Property to be acquired is encumbered by lease(s) or by lien(s), please provide copies of any lease(s) and lien(s) immediately. This offer is subject to conveyance of a good, marketable, indefeasible, and insurable title approved by the City Attorney. State law does provide for the possibility of re -purchase by the owner after a condemnation. This law is attached for your review. It is necessary for the City to acquire this Property for the public uses stated herein. A resolution will be presented to City Council authorizing this acquisition by purchase or eminent domain, and the City will proceed to file a condemnation suit under the state law should an agreement not be reached. If you desire to accept this offer or should you have any questions or concerns, please do not hesitate to contact Matthew Hutto of Specialty Land Services LLC at (903) 714-4018. Respectfully, On Behalf of the City of Anna, Texas Matthew Hutto Specialty Land Services, LLC Cell: 903-714-4018 matthew(n),saecialtvland.com Enclosures: 1. Texas Property Code; Title 4. Actions And Remedies; Chapter 21. Eminent Domain 2. Texas Landowner's Bill of Rights 3. Conveyance Document (Right of Way Deed) for Property 4. Property Appraisal dated July 21, 2022 Enclosure 1: TEXAS PROPERTY CODE TITLE 4. ACTIONS AND REMEDIES CHAPTER 21. EMINENT DOMAIN Sec. 21.023. DISCLOSURE OF INFORMATION REQUIRED AT TIME OF ACQUISITION. An entity with eminent domain authority shall disclose in writing to the property owner, at the time of acquisition of the property through eminent domain, that: (1) the owner or the owner's heirs, successors, or assigns may be entitled to: (A) repurchase the property under Subchapter E; or (B) request from the entity certain information relating to the use of the property and any actual progress made toward that use; and (2) the repurchase price is the price paid to the owner by the entity at the time the entity acquired the property through eminent domain. Sec. 21.101. RIGHT OF REPURCHASE. ( a) A person from whom a real property interest is acquired by an entity through eminent domain for a public use, or that person's heirs, successors, or assigns, is entitled to repurchase the property as provided by this subchapter if: (1) the public use for which the property was acquired through eminent domain is canceled before the property is used for that public use; (2) no actual progress is made toward the public use for which the property was acquired between the date of acquisition and the 10th anniversary of that date; or (3) the property becomes unnecessary for the public use for which the property was acquired, or a substantially similar public use, before the loth anniversary of the date of acquisition. (b) In this section, "actual progress" means the completion of three or more of the following actions: (1) the performance of a significant amount of labor to develop the property or other property acquired for the same public use project for which the property owner's property was acquired; (2) the provision of a significant amount of materials to develop the property or other property acquired for the same public use project for which the property owner's property was acquired; (3) the hiring of or contracting with and the performance of a significant amount of work by an architect, engineer, or surveyor to prepare a plan, plat, or easement that includes the property or other property acquired for the same public use project for which the property owner's property was acquired; (4) application for state or federal funds to develop the property or other property acquired for the same public use project for which the property owner's property was acquired; or (5) application for a state or federal permit or certificate to develop the property or other property acquired for the same public use project for which the property owner's property was acquired. (b-1) Notwithstanding Subsection (b), a navigation district or port authority, or a water district implementing a project included in the state water plan adopted by the Texas Water Development Board, may establish actual progress for purposes of this section by: (1) the completion of one action described by Subsection (b); and (2) the adoption by a majority of the entity's governing body at a public hearing of a development plan for a public use project that indicates that the entity will not complete more than one action described by Subsection (b) before the loth anniversary of the date of acquisition of the property. (c) A district court may determine all issues in any suit regarding the repurchase of a real property interest acquired through eminent domain by the former property owner or the owner's heirs, successors, or assigns. Added by Acts 2003, 78th Leg., ch. 1307, Sec. 2, eff. Jan. 1, 2004. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 19, eff. September 1, 2011. Acts 2021, 87th Leg., R.S., Ch. 86 (S.B. 726), Sec. 1, eff. September 1, 2021. Sec. 21.102. NOTICE TO PREVIOUS PROPERTY OWNER REQUIRED. Not later than the 180th day after the date an entity that acquired a real property interest through eminent domain determines that the former property owner is entitled to repurchase the property under Section 21.101, the entity shall send by certified mail, return receipt requested, to the property owner or the owner's heirs, successors, or assigns a notice containing: (1) an identification, which is not required to be a legal description, of the property that was acquired; (2) an identification of the public use for which the property had been acquired and a statement that: (A) the public use was canceled before the property was used for the public use; (B) no actual progress was made toward the public use; or (C) the property became unnecessary for the public use, or a substantially similar public use, before the loth anniversary of the date of acquisition; and (3) a description of the person's right under this subchapter to repurchase the property. Sec. 21.1021. REQUESTS FOR INFORMATION REGARDING CONDEMNED PROPERTY. (a) On or after the loth anniversary of the date on which real property was acquired by an entity through eminent domain, a property owner or the owner's heirs, successors, or assigns may request that the condemning entity make a determination and provide a statement and other relevant information regarding: (1) whether the public use for which the property was acquired was canceled before the property was used for the public use; (2) whether any actual progress was made toward the public use between the date of acquisition and the 10th anniversary of that date, including an itemized description of the progress made, if applicable; and (3) whether the property became unnecessary for the public use, or a substantially similar public use, before the 10th anniversary of the date of acquisition. (b) A request under this section must contain sufficient detail to allow the entity to identify the specific tract of land in relation to which the information is sought. (c) Not later than the 90th day following the date of receipt of the request for information, the entity shall send a written response by certified mail, return receipt requested, to the requestor. Sec. 21.1022. LIMITATIONS PERIOD FOR REPURCHASE RIGHT. Notwithstanding Section 21.103, the right to repurchase provided by this subchapter is extinguished on the first anniversary of the expiration of the period for an entity to provide notice under Section 21.102 if the entity: (1) is required to provide notice under Section 21.102; (2) makes a good faith effort to locate and provide notice to each person entitled to notice before the expiration of the deadline for providing notice under that section; and (3) does not receive a response to any notice provided under that section in the period for response prescribed by Section 21.103. Sec. 21.103. RESALE OF PROPERTY; PRICE. (a) Not later than the 180th day after the date of the postmark on a notice sent under Section 21.102 or a response to a request made under Section 21.1021 that indicates that the property owner, or the owner's heirs, successors, or assigns, is entitled to repurchase the property interest in accordance with Section 21.101, the property owner or the owner's heirs, successors, or assigns must notify the entity of the person's intent to repurchase the property interest under this subchapter. (b) As soon as practicable after receipt of a notice of intent to repurchase under Subsection (a), the entity shall offer to sell the property interest to the person for the price paid to the owner by the entity at the time the entity acquired the property through eminent domain. The person's right to repurchase the property expires on the 90th day after the date on which the entity makes the offer. THE STATE OF TEXAS LANDOWNER'S BILL OF RIGHTS This Landowner's Bill of Rights applies to any attempt to condemn your property. The contents of this Bill of Rights are set out by the Texas Legislature in Texas Government Code section 402.031 and chapter 21 of the Texas Property Code. Any entity exercising eminent domain authority must provide a copy of this Bill of Rights to you. L You are entitled to receive adequate compensation if your property is condemned. z. Your property can only be condemned for a public use. 3. Your property can only be condemned by a governmental entity or private entity authorized by Law to do so. 4• The entity that wants to acquire your property must notify you that it intends to condemn your property. 5• The entity proposing to acquire your property must provide you with a written appraisal from a certified appraiser detailing the adequate compensation you are owed for your property. 6. If you believe that a registered easement or right-of-way agent acting on behalf of the entity that wants to acquire your property has engaged in misconduct, you may file a written complaint with the Texas Real Estate Commission (TREC) under section 1101.205 of the Texas Occupations Code. The complaint should be signed and may include any supporting evidence. 7. The condemning entity must make a bona fide offer to buy the property before it files a lawsuit to condemn the property —meaning the condemning entity must make a good faith offer that conforms with chapter 21 of the Texas Property Code. B. You may hire an appraiser or other professional to determine the value of your property or to assist you in any condemnation proceeding. g. You may hire an attorney to negotiate with the condemning entity and to represent you in any legal proceedings involving the condemnation. io.Before your property is condemned, you are entitled to a hearing before a court -appointed panel of three special commissioners. The special commissioners must determine the amount of compensation the condemning entity owes for condemning your property. The commissioners must also determine what compensation, if any, you are entitled to receive for any reduction in value of your remaining property. u.If you are unsatisfied with the compensation awarded by the special commissioners, or if you question whether the condemnation of your property was proper, you have the right to a trial by a judge or jury. You may also appeal the trial court's judgment if you are unsatisfied with the result. a�EYC �s ?�T. � PREPARED BY THE OFFICE OF THE ATTORNEY GENERAL OF TEXAS • JANUARY 2022 �µ?'EYA�`�` 9 Eminent domain is the Legal authority certain governmental and private entities have to condemn private property for public use in exchange for adequate compensation. Only entities authorized by Law to do so may condemn private property. Private property can include Land and certain improvements that are on that property. WHO CAN I HIRE TO HELP ME? You can hire an appraiser or real estate professional to help you determine the value of your property as well as an attorney to negotiate with a condemning entity or to represent you during condemnation proceedings. WHAT QUALIFIES AS A PUBLIC PURPOSE OR USE? Your property may be condemned only for a purpose or use that serves the general public. This could include building or expanding roadways. public utilities, parks, universities, and other infrastructure serving the public. Texas law does not allow condemning authorities to exercise eminent domain for tax revenue or economic development. WHAT IS ADEQUATE COMPENSATION? Adequate compensation typically means the market value of the property being condemned. It could also include certain damages if your remaining property's market value is diminished by the condemnation or the public purpose for which it is being condemned. OTHER THAN ADEQUATE COMPENSATION, WHAT OTHER COMPENSATION COULD I BE OWED? If you are displaced from your residence or place of business, you may be entitled to reimbursement for reasonable expenses incurred while moving to a new site. However, reimbursement costs may not be available if those expenses are recoverable under another Law. Also, reimbursement costs are capped at the market value of the property. WHAT DOES A CONDEMNOR HAVE TO DO BEFORE CONDEMNING MY PROPERTY? ♦ Provide you a copy of this Landowner's Bill of Rights before, or at the same time as, the entity first represents that it possesses eminent domain authority. It is also required to send this Landowner's Bill of Rights to the last known address of the person Listed as the property owner on the most recent tax roll at least seven days before making its final offer to acquire the property. • If the condemnor seeks to condemn a right-of-way easement for a pipeline or electric transmission Line and is a private entity, the condemnor must also provide you a copy of the Landowner's Bill of Right's addendum. • The addendum describes the standard terms required in an instrument conveying property rights (such as a deed transferring title or an easement spelling out the easement rights) and what terms you can negotiate. ♦ Make a bona fide offer to purchase the property. This process is described more fully in chapter zl of the Texas Property Code. A'bona fide offer' involves both an initiaLwritten offer as well as a final written offer. • The initial written offer must include: • a copy of the Landowner's BiLlofRights and addendum (if applicable); • either a Large -font, bold -print statement saying whether the offered compensation includes damages to the remainderof your remaining property cra formal appraisal of the property that identifies any damages to the remaining property (if any); • the conveyance instrument (such as an easement or deed);and • the name and telephone number of an employee, affiliate, or Legal representative of the condemning entity. • The finalwritten offer must be made at least 30 days after the initial written offer and must include, if not previously provided: • compensation equaltoormore than the amount Listed in a written, certified appraisal that is provided to you; n copies of the conveyance instrument; and • the Landowner's Bill of Rights. ♦ Disclose any appraisal reports. When making Its Initial offer, the condemning entity must share its appraisal reports that relate to the property from the past to years. You have the right to discuss the offer with others and to either accept or reject the offer made by the condemning entity. 2 REV 1122 WHAT IF I DO NOT ACCEPT AN OFFER BYTHE CONDEMNING AUTHORITY? The condemnor must give you at Least 14 days to consider the final. offer before filing a Lawsuit to condemn your property, which begins the legal condemnation process. HOW DOES THE LEGAL CONDEMNATION PROCESS START? The condemnor can start the legal condemnation process by filing a Lawsuit to acquire your property in the appropriate court of the county where the property is located. When filing the petition, the condemnor must send you a copy of the petition No later than 3o days after the condemning entity files a condemnation lawsuit in court, the judge will appoint three Local Landowners to serve as special commissioners and two alternates. The judge will promptly give the condemnor a signed order appointing the special commissioners and the condemnor must give you, your Lawyer, and other parties a copy of the order by certified malt, return receipt requested. The special commissioners wiLL then scheduLe a condemnation hearing at the earliest practical time and place and to give you written notice of the hearing. WHAT DO THE SPECIAL COMMISSIONERS DO? The special commissioners' job is to decide what amount of money is adequate to compensate you for your property. The special commissioners will hold a hearing where you and other interested parties may introduce evidence. Then the special commissioners will determine the amount of money that is adequate compensation and file their written decision, known as an "Award," in the court with notice to all parties. Once the Award is filed, the condemning entity may take possession and start using the property being condemned, even if one or more parties object to the Award of the special commissioners. ARE THERE LIMITATIONS ON WHAT THE SPECIAL COMMISSIONERS CAN DO? Yes. The special commissioners are tasked onlywith determining by certified mait, return receipt requested, and first class mail. It must also send a copy to your attorney if you are represented by counsel. WHAT DOES THE CONDEMNOR HAVE TO INCLUDE IN THE LAWSUIT FILED WITH THE COURT? The Lawsuit must describe the property being condemned and state the following: the public use; your name; that you and the condemning entity were unable to agree on the value of the property; that the condemning entitygaveyou the Landowner's Bill of Rights; and that the condemning entity made a bona fide offer to voluntarily purchase the property from you. monetary compensation forthe value of the propertycondemned and the value of any damages to the remaining property. They do not decide whether the condemnation is necessary or if the public use is proper. Further. the special commissioners do not have the power to alter the terms of an easement, reduce the size of the Land acquired, or say what access will be allowed to the property during or after the condemnation. The special commissioners also cannot determine who should receive what portion of the compensation they award. Essentially, the special commissioners are empowered only to say how much money the condemnor should pay for the Land or rights being acquired. WHO CAN BE A SPECIAL COMMISSIONER? Special commissioners must be landowners and residents in the county where the condemnation proceeding is filed, and they must take an oath to assess the amount of adequate compensation fairly, impartially, and according to the Law. WHAT IF I WANT TO OBJECT TO A SPECIAL COMMISSIONER? The judge must provide to the parties the names and contact information of the special commissioners and alternates. Each party will have up to to days after the date of the order appointing the special commissioners or 20 days after the date the petition was filed, whichever is later, to strike one of the three special commissioners. If a commissioner Is struck, an alternate will serve as a replacement. Another party may strike a special commissioner from the resulting panel within three days after the date the initial strike was filed or the date of the initial strike deadline, whichever is Later. 3 REV 1/22 W HAT W ILL HAPPEN AT TH E SPECIAL COMMISSIONERS' HEARING? The special commissioners will consider any evidence (such as appraisaL reports and witness testimony) on the value of your condemned property, the damages or value added to remaining property that is not being condemned, and the condemning entity's proposed use of the property, WHATARE MY RIGHTS ATTHE SPECIAL COMMISSIONERS' HEARING? You have the right to appear or not appear at the hearing. If you do appear, you can question witnesses or offer your own evidence on the value of the property. The condemning entity must give you all existing appraisal reports regarding your property used to determine an opinion of value at least three days before the hearing. If you intend to use appraisal reports to support your claim about adequate compensation, you must provide them to the condemning entity io days after you receive them or three business days before the hearing, whichever is earlier. If you, the condemning entity, or any other party is unsatisfied with the amount of the award, that party can formally object The objection must be filed in writing with the court and is due by the first Monday following the zoth day after the clerk gives notice that the commissioners have filed their award with the court. If no party timely objects to the special commissioners' award. the court will adopt the award amount as the final compensation due and Issue a finaljudgment in absence of objection. DO I HAVE TO PAY FOR THE SPECIAL COMMISSIONERS' HEARING? if the special commissioners' award is less than or equal to the amount the condemning entity offered to pay before the proceedings began, then you may be financially responsible for the cost of the condemnation proceedings. But. if the award is more than the condemning entity offered to pay before the proceedings began, then the condemning entity will be responsible for the costs. WHAT DOES THE CONDEMNOR NEED TO DO TO TAKE POSSESSION OF THE PROPERTY? Once the condemning entity either pays the amount of the award to you or deposits it into the court's registry, the entity may take possession of the property and put the property to public use. Non -governmental condemning authorities may also be required to post bonds In addition to the award amount. You have the right to withdraw funds that are deposited into the registry of the court, but when you withdraw the money, you can no longer challenge whether the eminent domain action is valid —only whether the amount of compensation is adequate. right to a trial and can elect whether to have the case decided by a judge or jury. WHO PAYS FOR TRIAL? If the verdict amount at trial is greater than the amount of the special commissioners' award, the condemnor may be ordered to pay costs. If the verdict at trial is equal to or Less than the amount the condemnor originally offered, you may be ordered to pay costs. WHAT HAPPENS AFTER I OBJECTTO THE SPECIAL COMMISSIONERS' AWARD? IS THE TRIAL VERDICT THE FINAL DECISION? If a party timely objects, the court will hear the case just Like Not necessarily. After trial any party may appeal the judgment other civil lawsuits. Any party who objects to the award has the entered by the court. 4 REV 1122 A condemnation action may be dismissed by either the the court grants the Landowner's motion, the court may award condemning authority itself or on a motion by the landowner, the Landowner reasonable and necessary fees and expenses WHAT HAPPENS IF THE CONDEMNING AUTHORITY NO LONGER WANTS TO CONDEMN MY PROPERTY? If a condemning entity decides it no Longer needs your condemned property, it can file a motion to dismiss the condemnation proceeding. If the court grants the motion to dismiss, the case is over, and you can recover reasonable and necessary fees for attorneys, appraisers, photographers, and for other expenses up to that date. WHAT IF I DO NOTTHINKTHE CONDEMNING ENTITY HAS THE RIGHTTO CONDEMN MY PROPERTY? You can challenge the right to condemn your property by filing a motion to dismiss the condemnation proceeding. For example, a Landowner could challenge the condemning entity's claim that it seeks to condemn the property for a public use. If For more information about the procedures, timeLines, and requirements outlined in this document, see chapter 22 of the Texas Property Code. An addenda discussing the terms required for an instrument of conveyance under Property Code section 21.oli4(c), and the conveyance terms that a property owner may negotiate under Property Code section 21.=4(d), is attached to this statement. incurred to that date. CAN I GET MY PROPERTY BACK IF IT IS CONDEMNED BUT NEVER PUTTO A PUBLIC USE? You may have the right to repurchase your property if your property is acquired through eminent domain and: ♦ the public use for which the property was acquired is canceled before that property is put to that use, ♦ no actual progress is made toward the public use within io years, or ♦ the property becomes unnecessary for public use within io years. The repurchase price is the price you were paid at the time of the condemnation. The information in this statement is intended to be a summary of the applicable portions of Texas state law as required by HB 1495. enacted by the Both Texas Legislature, Regular Session, and HB 2730, enacted by the 87th Texas Legislature, Regular Session. This statement is not Legal advice and is not a substitute for legal counseL. 5 REV 1/22 THE STATE OF TEXAS LANDOWNER'S BILL OF RIGHTS (1) The maximum number of pipelines that may be installed in the right-of-way acquired through this instrument is _. (z) The types of pipeline appurtenances that are authorized to be installed under this instrument for pipeline -related appurtenances, such as pipes, valves, compressors, pumps, meters, pigging stations, dehydration facilities, electric facilities, communication facilities, and any other appurtenances that may be necessary or desirable in connection with a pipeline, are described as follows: (3) The maximum diameter, excluding any protective coating or wrapping, of each pipeline to be Initially installed under this instrument for a pipeline right-of-way Is — (4) For each pipeline to be installed under this instrument, the type or category of substances permitted to be transported through each pipeline is _. (5) Any aboveground equipment or facility that Grantee intends to install, maintain, or operate under this instrument on the surface of the pipeline easement is described as follows: _. (6) A description or illustration of the Location of the easement, including a metes and bounds or centerline description, plat, or aerial or other map -based depiction of the location of the easement on the property, is attached as Exhibit _ is (7) The maximum width of the easement under this instrument is . (8) For each pipeline to be installed under this instrument, the minimum depth at which the pipeline will initially be installed (g) The entity installing pipetine(s) under this instrument: (check one) ❑ intends to double -ditch areas of the pipeline easement that are not installed by boring or horizontal directional drilling. ❑ does not intend to double -ditch areas of the pipeline easement that are not installed by boring or horizontal directional drilling. (io) Grantee shall provide written notice to Grantor3, at the last known address of the person in whose name the property is listed on the most recent tax roLL of any taxing unit authorized to Levy property taxes against the property, if and when Grantee assigns any interest conveyed under this Instrument to another entity, provided that this provision does not require notice by Grantee for assignment to an affiliate or to a successor through merger, consolidation, or other sale or transfer of all or substantially all of its assets and businesses. (ii) The easement rights conveyed by this instrument are: (check one) exclusive. ❑ nonexcLuslve. 3 The easement terms listed in this addendum may be amended, altered, or omitted by the agreement of the condemning authority and the landowner. pursuant to Sections 21.mt4(d), (a). and M of the Texas Property Code. 2 'Grantee is the private entity, as defined by section 23.0134(a) of the Texas Property Code. that is acquiring the pipeline easement 3 'Grantor is the property owner from whom the Grantee is acquiring the pipeline easement. REV 1122 (12) Grantee may not grant to a third party access to the easement area for a purpose that is not related to one of the following: the construction, safety, repair, maintenance, inspection, replacement, operation, or removal of each pipeline to be installed under this instrument or of pipeline appurtenances to be installed under this instrument. (13) Grantor: (check one) o may recover from Grantee actual monetary damages, if any, arising from the construction and installation of each pipeline to be installed under this instrument. o acknowledges that the consideration paid for the easement acquired under this instrument includes monetary damages, if any, arising from the construction and installation of each pipeline to be installed under this instrument. (14) After initial construction and installation of each pipeline installed under this instrument, Grantor: (check one) o may recover from Grantee actual monetary damages, if any, arising from the repair, maintenance, inspection, replacement, operation, or removal of each pipeline to be installed under this instrument o acknowledges that the consideration paid for the easement acquired under this instrument includes monetary damages, if any, arising from the repair, maintenance, inspection, replacement, operation, or removal of each pipeline to be installed under this instrument. (15) Grantor: (check one) ❑ and Grantee agree, with regard to Grantee's removal, cutting, use, repair, and replacement of gates and fences that cross the easement or that will be used by Grantee under this instrument, that Grantee will access and secure the easement acquired under this instrument as follows: o may recover from Grantee payment for monetary damages, if any, caused by Grantee to gates and fences, if any, to the extent that the gates or fences are not restored or paid for as part of the consideration paid for the instrument. o acknowledges that the consideration paid for the easement acquired under this instrument includes monetary damages, if any, caused by Grantee to gates and fences. M) With regard to restoring the pipeline easement area acquired under this instrument and Grantor's remaining property used by Grantee to as near to original condition as is reasonably practicable and maintaining the easement in a manner consistent with the purposes for which the easement is to be used under this instrument: (check one) ❑ Grantee will be responsible for the restoration. o Grantee will reimburse Grantor for monetary damages that arise from damage to the pipeline easement area or the Grantor's remaining property, if any, caused by the Grantee and not restored or paid for as part of the consideration for the instrument. ❑ acknowledges that the consideration paid for the easement acquired under this instrument includes monetary damages, if any, caused by Grantee to the pipeline easement area or the Grantor's remaining property. (17) Grantee's rights of ingress, egress, entry, and access on, to, over, and across Grantor's property under this instrument are described as follows: (18) Grantee may not make use of the property rights acquired by this instrument, other than as provided by this instrument, without the express written consent of Grantor. (1g) The terms of this instrument bind the heirs, successors, and assigns of Grantor and Grantee. 7 REV 1/22 THE STATE OF TEXAS LANDOWNER'S BILL OF RIGHTS (1) The uses of the surface of the property to be encumbered by the electric transmission line right-of-way easement acquired by Grantees under this instrument are generally described as follows: — (2) A description or illustration of the location of the electric transmission line right-of-way easement, including a metes and bounds or centerline description, plat, or aerial or other map -based depiction of the location of the easement on the property, is attached as Exhibit (3) The maximum width of the electric transmission line right-of-way easement acquired by this instrument is _. (4) Grantee will access the electric transmission line right-of-way easement acquired under this instrument in the following manner: (5) Grantee may not grant to a third party access to the electric transmission line right-of-way easement area for a purpose that Is not related to the construction, safety, repair, maintenance, inspection, replacement, operation, or removal of the electric and appurtenant facilities installed under this instrument. (6) Grantors: (check one) ❑ may recover from Grantee actual monetary damages, if any, arising from the construction, operation, repair, maintenance, inspection, replacement, and future removalof lines and support facilities after initiatconstmction in the easement, if any. ❑ acknowledges that the consideration paid for the easement acquired under this instrument includes monetary damages, if any, arising from the construction. operation, repair, maintenance, inspection, replacement, and future removal of lines and support facilities after initial construction in the easement (7) Grantor. (check one) o and Grantee agree, with regard to Grantee's removal, cutting, use, repair, and replacement of gates and fences that cross the easement or that will be used by Grantee under this instrument, that Grantee will access and secure the easement acquired under this instrument as follows: ❑ may recover from Grantee payment for monetary damages, if any, caused by Grantee to gates and fences, if any, to the extent that the gates or fences are not restored or paid for as part of the consideration paid for the instrument. ❑ acknowledges that the consideration paid for the easement acquired under this Instrument includes monetary damages, if any, caused by Grantee to gates and fences, 4 The easement terms listed in this addendum may be amended, altered, or omitted by the agreement of the condemning authority and the landowner, pursuant to Sections 2Lon4(d). (a). and (n of the Texas Property Code. 5 'Grantee is the private entity, as defined by Section 21.=4(a) of the Texas Property Code, that is acquiring the electric transmission line right-of-way easement. 6 'Grantor is the property owner from whom the Grantee is acquiring the electric transmission line right-of-way easement 8 REV 1122 (8) Grantee shall restore the easement area and Grantor's remaining property to their original contours and grades, to the extent reasonably practicable, unless Grantee's safety or operational needs and the electric facilities located on the easement would be impaired. With regard to restoring the electric transmission line right-of-way easement area acquired under this instrument and Grantor's remaining property used by Grantee to as near to original condition as is reasonably practicable following future damages, if any, directly attributed to Grantee's use of the easement: (check one) o Grantee will be responsible for the restoration, unless the safety or operational needs of Grantee and the electric facilities would be impaired. ❑ Grantor acknowledges that the consideration paid for the easement acquired under this instrument includes future damages, if any, caused by Grantee to the easement area or the Grantor's remaining property. (g) The easement rights acquired under this instrument are: (check one) a exclusive. a nonexclusive. ❑ otherwise limited under the terms of the instrument as follows: (1o) Grantee may not assign Grantee's interest in the property rights acquired under this instrument to an assignee that will not operate as a utility subject to the jurisdiction of the Public Utility Commission of Texas or the Federal Energy Regulatory Commission without written notice to Grantor at the last known address of the person in whose name the property is listed on the most recent tax roll of any taxing unit authorized to levy property taxes against the property. (11) Grantee may not make use of the property rights acquired by this instrument, other than as provided by this instrument, without the express written consent of Grantor. (12) The terms of this instrument bind the heirs, successors, and assigns of Grantor and Grantee. 9 REV 1/22 THE STATE OF TEXAS LANDOWNER'S BILL OF RIGHTS (1) With regard to the specific vegetation described as follows: — Grantors: (check one): ❑ may recover from Grantees payment for monetary damages, if any, caused by Grantee to the vegetation. ❑ Grantor acknowledges that the consideration paid for the easement acquired under this instrument Includes monetary damages, if any, caused by Grantee to the vegetation. (2) With regard to income loss from disruption of existing agricultural production or existing leases based on verifiable Loss or Lease payments caused by Grantee's use of the easement acquired under this instrument, Grantor: (check one) ❑ may recover from Grantee payment for monetary damages. if any, caused by Grantee to Grantors income. ❑ Grantor acknowledges that the consideration paid for the easement acquired under this instrument Includes monetary damages, if any, caused by Grantee to Grantors income. (3) Grantee shall maintain commercial liability insurance or self-insurance at all times, including during Grantees construction and operations on the easement, white Grantee uses the easement acquired under this instrument. The insurance must insure Grantor against Liability for personal injuries and property damage sustained by any person to the extent caused by the negligence of Grantee or Grantees agents or contractors and to the extent allowed by Law. If Grantee maintains commercial liability Insurance, it must be issued by an insurer authorized to issue Liability insurance in the State of Texas. (4) If Grantee is subject to the electric transmission cost -of -service ratejurisdiction of the Public Utility Commission of Texas or has a net worth of at least $25 million. Grantee shall maintain commercial liability insurance or self-insurance at levels approved by the Public Utility Commission of Texas in the entity's most recent transmission cost -of -service base rate proceeding. 7 Pursuant to Section 21.oi14(d) of the Texas Property Code, in addition to the terms set forth in Addenda A and B. a properly owner may negotiate for the Inclusion of the terms in this Addendum in any instrument conveying an easement to a private entity. as defined by Section 2to114(a) of the Texas Property Code. The easement terms listed in this addendum may be amended, altered, or omitted by the agreement of the condemning authority and the land- owner, pursuant to Sections 2tot14(d). (a). and if) of the Texas Property Code. 8 'Grantor is the property owner from whom the Grantee is acquiring the pipeline or electric transmission fine right-of-way easement g 'Grantee' is the private entity. as defined by Section 21.0114(a) of the Texas Property Code. that is acquiring the easement. 10 REV 1122 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. Special Warranty Deed for Right of Way With Temporary Construction Easement Date: , 2022 Grantor: Sarah Louise Martin, Donna Gail Martin & Nelda Jean Stanley Grantor's Mailing Address: 404 W Hackberry Ln, Anna, TX 75409 Grantee: City of Anna, Texas, a home -rule municipality Grantee's Mailing Address: P.O. Box 776, Anna, TX 75409-0776 Consideration: $10.00 and other good and valuable consideration in hand received and adequacy of which is acknowledged Property (including any improvements): The real property described on Exhibit A, attached hereto and incorporated herein by reference Grantor, for the Consideration state above, grants, sells, and conveys to Grantee the Property in fee simple, together with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee and Grantee's heirs, successors, and assigns forever. Grantor binds Grantor and Grantor's heirs and successors to warrant and forever defend all and singular the Property to Grantee and Grantee's heirs, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through, or under Grantor, but not otherwise. Additionally, Grantor does hereby GRANT, SELL AND CONVEY unto Grantee a temporary construction easement ("Easement") and temporary right to access and use certain real property owned by Grantor and located in Collin County, Texas, as more particularly described in Exhibit A, attached hereto and incorporated herein for all purposes ("Temporary Construction Easement"), for the purpose of facilitating construction of roadway facilities and/or other public facilities, together with all incidental improvements, and all necessary laterals, thereto. As part of the grant hereby made, it is agreed between the parties hereto that any stone, earth, gravel or caliche which may be excavated in the opening, construction or maintenance of said channel or easement may be removed from said premises by Grantee. SPECIAL WARRANTY DEED PAGE 1 During the term of the Easement, Grantee will at all times after doing any work in connection with the construction, operation or repair of the roadway or other public facilities, restore the surface of the Temporary Easement Property as close to the condition in which it was found before such work was undertaken as is reasonably practicable, except for trees, shrubs and structures within the Temporary Easement Property that were removed as a result of such work. The Temporary Construction Easement granted herein will automatically terminate on the date that Grantee issues its final acceptance of the roadway or other public facilities in the area of the Temporary Easement Property or 24 (twenty-four) months from date of execution of this instrument, whichever occurs first. [Signature page follows.] SPECIAL WARRANTY DEED PAGE 2 GRANTOR: Sarah Louise Martin LM Print: Title: STATE OF TEXAS COUNTY OF COLLIN This instrument was acknowledged before me on , 2022, by , known to me to be the persons whose names are subscribed to the foregoing instrument; acknowledged to me that said person executed the same for the purposes and consideration therein expressed. (SEAL) Notary Public, State of My commission expires: SPECIAL WARRANTY DEED PAGE 3 GRANTOR: Donna Gail Martin By: Print: Title: STATE OF TEXAS COUNTY OF COLLIN This instrument was acknowledged before me on , 20223P by , known to me to be the persons whose names are subscribed to the foregoing instrument; acknowledged to me that said person executed the same for the purposes and consideration therein expressed. (SEAL) Notary Public, State of My commission expires: SPECIAL WARRANTY DEED PAGE 4 GRANTOR: Nelda Jean Stanley By: Print: Title: STATE OF TEXAS COUNTY OF COLLIN This instrument was acknowledged before me on , 2022, by , known to me to be the persons whose names are subscribed to the foregoing instrument; acknowledged to me that said person executed the same for the purposes and consideration therein expressed. Notary Public, State of My commission expires: (SEAL) SPECIAL WARRANTY DEED PAGE 5 Sarah Martin et al 412512022 Parcel No. 4 Collin County EXMIT "A" FIELD NOTE DESCRIPTION PERMANENT RIGHT-OF-WAY CITY OF ANNA, TEXAS Being a 0.272 acre tract of land for right-of-way in the Henry Brantley Survey, Abstract, No. 071, City of Anna, Collin County, Texas, and being part of a called 2.892 acre tract of land, conveyed to Sarah Marin, Donna Martin and Nelda Stanley, by deed recorded in Instrument Number 20190530000609730, Deed Records of Collin County Texas (D.R.C.C.T.), said right-of-way being more particularly described as follows: BEGINNING at a point for corner, said point being on the southeast property corner of said 2.892 acre Martin tract and also being on the southwest property comer of a called 0.278 acre tract of land, conveyed to Wanda Burk, Wayne McCullough, Norma Risner, Mary Compton, Linda Risner and Willie Risner, by deed recorded in Instrument Number 20180619000756710, said point bears N 68°25'54" W, a distance of 119.22 feet, from a 1/2-inch iron rod found on the northwest property comer of Lot 1, Block 1,ULAJ Addition, an addition to the City of Anna by plat recorded in Instrument Number 20080328010001220, PRCCT, said point also bears N 43°40'58" W, a distance of 69.42 feet from a 1/2" iron rod found on the northeast property corner of the called 0.36 acre Lot 5 of the Slater Hollow Phase I Addition to the City of Anna, conveyed to Ely Bennett, by deed recorded in Instrument Number 20100713000715550, DRCCT; THENCE, N 89048'32" W, along the south property line of said 2.892 acre Martin tract, a distance of 253.35 feet to a point for corner, said point being on the southwest property comer of said 2.892 acre Martin tract, and also being on the southeast property of a called 0.0586 acre tract of land conveyed to James & Lori Rivera, by deed recorded in Instrument Number 20080801000936340, DRCCT; THENCE, N 03'009'11" E, along the west property line of said 2.892 acre Martin tract, and along the east property line of said 0.0586 acre Rivera tract, a distance of 47.14 feet to a point for corner, said point being a 1/2-inch iron rod set with yellow cap stamped `BHC" on the new north right-of-way line of Hackberry Lane (variable width R.O.W.) THENCE, S 89043' 1611 E, along the new north right-of-way line of said Hackberry Lane, a distance of 251.93 feet to a point for corner, said point being on the east property line of said 2.892 acre Martin tract, and also being on the west property line of said 0.278 acre Risner tract, said point also being a 1/2-inch iron rod set with yellow cap stamped "BHC' ; H:1Prg=ft%k=U018162 Huibe" Dr Paving-Dratnaga ROW1Easement P1&bU)asai0=sU018162—ft d 04 Marthdw Page 1 of 3 Sarah Martin et al 412512022 Parcel No. 4 Collin County THENCE, S 01026/28/1 W, along the east property line of said 2.892 acre Martin tract, a distance of 46.71 feet to the POINT OF BEGINNING, containing 0.272 acres (11,846 square feet) of land, more or less. Notes- 1. Bearings and distances cited in this field note description are based on the Texas State Plane Coordinate System, NAD-83, Texas North Central Zone 4202. 2. Field survey concluded on 03/02/2022. 3. A Plat of even date herewith accompanies this Field Note Description. Gary C. Hendricks, P.E., R.P.L.S. Texas Registration No. 5073 Birkhoff, Hendricks & Carter, L.L.P. TBPELS Firm No. 100318-00 11910 Greenville Ave., Suite 600 Dallas, Texas 75243 H:Wrojccts\Anna12018162 Hwkbcay Dr Paving-DraiuV ROWTAs==t PlatslDescriRtimi%=8162_ Pared 04—Mvdmdoc Page 2 of 3 1 I I N, JAMES P. do SPOUSE, LDRI V. RNVERA TRACT ONE Dw. NO. 2006OW1000936340 ?RACY TWO` I F TEA PROP. 27' DRAINAGE ESIti1T. I 47.14' A HACKBERRY LANE EXHIBIT "A" PAGE 3OF3' 1 SAW MARTIN, DONNA I CLAD GRID I� ' ^ INST. NO. MARTIN, IN, & NELDA � 20100618000621620 � STANLEY 1/r LRF. INST. #20190530000609730 _ _ 2.892 ACRES WANDA JEAN RISNER BUNK. WAYNE KYLE MCCULLOLYM. NOR►1A JEAN I BIFFEL RISNER, MAW JOYCE Wa R I CONS7J4UC770N EASEMENT NDD L' AAiENE ROLAND RRISNE ANWaiIEWALCH R I .017 ACRES 8 INST. NO. (756 S.F. i z � � 20180619000756710 CHAD GRI ES 1 INGRESS —EGRESS ES\- 4 I�i. PROPOSED ROW I 780GINIVING 1/2- LR.F.POINT OF 1/2' I.R.F. + I PERMAN&ff 48W (110m IF.) I I BENJAMIN T. qHRIST NSON LOT 7A&86 INST. NO. 20140224000166160 NOTES: 1. BEARINGS AND DISTANCES CITED IN THIS PLAT DESCRIPTION ARE BASED ON THE TEXAS STATE PLANE COORDINATE SYSIEY, NAD-83. TEXAS NORTH CENTRAL ZONE 4202. 2. FIELD SURVEYS CONCLUDED ON 03/02/2022. 3. 1/2- LR.S. a 1/2' IRON ROD SET WITH YELLOW CAP STAMPED 'BW 4. A FIELD NOTE DESCRIPTION OF EVEN DATE 1 INCH = 40 FEET HENRY BRANTLEY SURVEY 1 ABSTRACT 071 EXIST. ROW PROPOSED ROW SUZIE MATHENY ETAL LOT 6 REFERENCE BEARING INST. NO. N43'40'S8'W — 69.42' 19770427000105590 \ REFERENCE BEARING \ N68'25'54'W — 119.22' \ \ r--1/2' I.R.F. \ ELY L BENNETT LOT 5 INST. NO. 20100713000715550 1/2- I.R.F. PARCEL NO. 4 I CITY OF ANNA, TEXAS I SARAH MARTIN ET AL PERMANENT RIGHT-OF-WAY BIRKHOFF, HENDRICKS & CARTER, L.L.P. A P R I L PROFESSIONAL ENGINEERS TBPELS PE FIRM 526; SERV. FIRM 10031800 2022 11910 Greenville Ave., Suite 600 Dallas, Texas 75243 (214) 361-7900 An Appraisal Report of A Proposed Partial Acquisition of A 2.916 Acre Tract of Land Located Along the North Line of Hackberry Lane, West of Powell Parkway Anna, Collin County, Texas 75409 TPA File #: 22.0317.4 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 -----. i Todd Property Advisors 2301 Ohio Drive, Suite 150 Plano, Texas 75093 (214)297-9000 www.ToddPropertyAdvisors.com 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 2.916 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 ♦ 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: $301,071 Value of the Part Acquired (0.272 Acre Right -Of -Way): $19,485 Remainder Before Acquisition: $281,586 Remainder After Acquisition: $281,586 Enhancements: $0 Damages: $80,000 Cost to Cure: $4,305 Value of the Part Acquired (0.272 Acre Right -Of -Way): $19,485 Recommended Compensation (0.017 Acre TCE): $103 Total Recommended Compensation: $103,893 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 architectural/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 mitchellll@toddpa.com #4 Jonathan D. Martin Appraisal Associate State Certification #TX-1381200-G jonathan@toddpa.com nz�emae, Michael A. Keane, MAI Senior Vice President State Certification #TX-1380384-G michael@toddpa.com TABLE OF CONTENTS Section I - Introduction ExecutiveSummary ........................................................................................................2 Identification of the Property............................................................................................5 Objective of 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..........................................................................................................13 City/Neighborhood Analysis..........................................................................................23 Section III - Factual Descriptions and Analyses Site Description and Analysis........................................................................................ 29 Zoning and Land Use Restrictions.................................................................................35 TaxAnalysis..................................................................................................................37 Subject Property Photographs.......................................................................................38 Highest and Best Use Analysis.....................................................................................42 The Appraisal Process..................................................................................................45 Section IV — Land Valuation LandValuation..............................................................................................................47 Comparable Land Sales Presentation...........................................................................48 LandSales Analysis...................................................................................................... 53 Conclusion of Land Value.............................................................................................58 Section V - Valuation Conclusion FinalOpinion of Value...................................................................................................62 HomeSales Analysis....................................................................................................70 Conclusionof Land Value.............................................................................................75 Section VI — Certification & Assumptions & Limiting Conditions Assumptions and Limiting Conditions............................................................................ 83 Section VI - Addendum Qualifications & Certifications of the Appraisers Prescriptive ROW Surveys SECTION I - INTRODUCTION EXECUTIVE SUMMARY SALIENT FACTS & CONCLUSIONS TODD PROPERTY ADVISORS REALPROPERw ANALYWS, INC. Property Appraised: A 2.916 acre (127,038 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 0.272 acre (11,846 square foot) right-of- way acquisition and a 0.017 acre (756 square foot) temporary construction easement. Property Type: Location: Date of Inspection: Date of Valuation: Date of Report: Property Rights Appraised Ownership: Land improved with single-family residence 404 Hackberry Lane, Anna, Collin County, Texas July 21, 2022 July 21, 2022 August 5, 2022 Fee Simple Estate Sarah Martin, Donna Martin, and Nelda Stanley 22.0317.4 2 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. Land Size: Total Land: 2.916 acres (127,038 square feet) Right-of-way Acquisition: 0.272 acres (11,846 square feet) TCE: 0.017 acres (756 square feet) Status of Property: As of the date of the appraisal, the subject property consists of a 2.916 acre (127,038 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 404 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 0.272 acre (11,846 square foot) right-of-way acquisition and a 0.017 acre (756 square foot) temporary construction easement. The subject property currently has access to all public utilities from the City of Anna. Zoning: SF-1, Single Family Residential HIGHEST AND BEST USE: As If Vacant: Residential Development SCOPE OF WORK Appraisal Problem Identification: 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). Objective of the Appraisal: Intended User: Client: Valuation Approaches Used: 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 22.0317.4 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 (0.272 Acre Right -Of -Way): Remainder Before Acquisition: Remainder After Acquisition: Enhancements: Damages: Cost to Cure: Value of the Part Acquired (0.272 Acre Right -Of -Way): Recommended Compensation (0.017 Acre TCE): Total Recommended Compensation: $3019071 $199485 $281,586 $281,586 $0 $80,000 $4,305 $19,485 $103 $103,893 22.0317.4 4 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. IDENTIFICATION OF THE PROPERTY As of the date of the appraisal, the subject property consists of a 2.916 acre (127,038 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 404 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 0.272 acre (11,846 square foot) right-of-way acquisition and a 0.017 acre (756 square foot) temporary construction easement. The part to be acquired includes the single-family residence and barn located on the subject property. According to the Collin CAD, the single-family residence was constructed in 1940 and comprises 810 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 in the Henry Brantley Survey, Abstract No. 071, City of Anna, Collin County, Texas, and being part of a tract of land, conveyed to Sarah Martin, Donna Martin and Nelda Stanley, by deed recorded in Instrument Number 20190530000609730, Deed Records of Collin County, Texas (D.R.C.C.T). `Aerial photograph provided by the Collin CAD website (www.collincad.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. 22.0317.4 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. 22.0317.4 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 governmental 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 Sarah Martin, Donna Martin, and Nelda Stanley. 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. 22.0317.4 7 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, 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. 22.0317.4 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 Sarah Martin, Donna Martin, and Nelda Stanley. According to the Vesting Deed (Instrument #20190530000609730), the current owners purchased the property from Rita Cook in May 2019. Details for the transaction, including the sales price and whether or not the sale was an arm's length transaction, were not available to the appraisers. No other 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 22.0317.4 9 TODD PROPERTY ADVISORS REAL PnoPERw ANALMS, INC. this report generally indicated that exposure times during the last twelve months have typically ranged from six to twelve months. 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."" 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 4 The Appraisal Institute, The Dictionary of Real Estate Appraisal (SWh Edition), Chicago, Illinois, 2015, page 140. 22.0317.4 10 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. conclusion contained herein, it will be sufficiently attractive to entice an investor or user to purchase the property within a twelve month marketing period. 22.0317.4 11 SECTION II - EXTERNAL INFLUENCES TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, 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. CJ I.o.,.a AMae vla.11 ee.,ar see.+ -. r Subject Property CJ ,., wxeva en.ara Krugerr,llp Me4[aa m O eaeaiv �� ® O Cmsa Posts Pmvmr f�.� .J At,r Q' McKlaaey01 Pau4+ P Var,J.rt, L Ir1eL F,rvew �rI>rmr+arllr L rrlS[O •: Pv�tl PM s.J Q BY,J Q33 Asvn •'Y wo L .T Wont Ti C y, CMM M�I:r PW"° �T LPwliMlle m .� Laren Q Flower Mount Plano Mv{!.y wvLe �* La , P rU "v< �a,ra y v � CanoNon © ,gam Pcr:•car x L, wcnarawo 9+gay,r,ll fal, Kelkl Glapev�ne f ® &u[f<f ® c�c� Gerlantl a �`CID �2 � IJ - � NtHaNxP: Ccc Penn .—. ',:. m :mr. ,hN,ury Irvin9 Dallas FOR Worth on v Masawm O ® ® Arlinglon Gr MPaifie r T �vr�Mr.. Pxannr<� r..rli r. O L+YnY• GadLl BSJ G�LjY\TilYe O to Crouq/ rrrarr.lO pSola Lnrca,:w ComL+x K�JrM1n+' Wnrmx .Jvry r.J Lrf,tM ORm � P,EOaL imir G,L fipv � srv,n ,i Ocaaa �i �a xom vmu K..�. VFlra,.d, ® GoagkM Maj� '"` r.P CID 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. 22.0317.4 13 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 Toliway 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. 22.0317.4 14 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 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. 22.0317.4 15 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, 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 Eat. 2012 Est. 2013 Est. 2014 Est. 2015 Est. 2016 Est. 2017 Est. 2018 Est. 2019 Est. 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 782.341 792.150 795.390 827.780 851.920 873,840 901,170 932,530 969.780 1.010,330 1,039.540 1,082,760 43.220 4.16% Dallas 2.368,139 2.380.510 2,383.790 2.415.060 2,435,800 2,455,050 2,478,970 2,502,270 2,529.150 2.554.770 2,593,670 2.619,040 25.470 0.98°% Denton 662,614 669,930 677.880 714.000 736,900 761,040 784,840 814.560 844,260 874,240 902,190 933,220 31.030 3.44% Ellis 149,610 151.030 152,570 158,070 161.200 165,010 168,690 173,410 183,360 189,820 198,640 206.810 8.170 4.11% Erath 37,890 38,340 38,340 40,700 41.010 41.460 43,540 43,850 44.200 44,700 45,670 46,180 510 1.12°% Hood 51.182 51,420 53.670 58,880 61.680 64,400 64.620 64,840 65,060 65,960 66,890 66,920 30 0.04°% Hunt 86,129 86,860 87,840 90,070 91,240 92,530 93,110 94.350 95,960 97,410 99,300 101,510 2,210 2.23°% Johnson 150,934 151,440 151.790 155,240 156.710 158,880 161,670 164,970 169,160 173,700 178,260 185,180 6,920 3.88°% Kaufman 103,350 103,440 104,050 108,400 108,120 109,300 113,530 116,140 119,670 124,850 128,520 132,250 3,730 2.90% Navarro 47.735 47,940 47.940 48.470 48.590 48,900 49,030 49,170 49,740 50,250 50.870 51.670 $00 1.57°% Palo Pinto 28.111 28,180 28,290 28,420 28.590 28,710 28.660 28,660 28,710 28,820 28,960 29.360 400 1.38°% Parker 116,927 117.570 118.040 120,640 121.830 124,630 127,880 130,150 131,210 134,620 136.600 139.180 2,580 1.89% Rockwall 78,337 78.990 79,570 83,400 85,900 88.200 90.570 93,130 97.990 101.020 107.780 113.350 5,570 5.17°% Somervell 8,490 8.550 8,550 8,690 8,800 8.950 9.230 9,420 9,640 9,820 9,980 10.190 210 2.10% Tarrant 1.809,034 1,818,240 1.832,660 1,875,930 1,899,900 1,922,470 1,945.320 1.966,440 1,989,810 2,024,030 2.064.340 2,091,320 26,980 1.31% Was 1 59,127 59.540 59,600 60,920 61.690 61,970 62,240 62.460 62,700 64.060 65.300 66.010 710 1.09°% 116-CountyRogioni 6,539,950 6,584,130 6.619.970 6,792,670 6,899,880 7.005,340 7.123,170 7.246.350 7.390,400 7.548,400 7,716,410 7.874.950 158,540 2.06% 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." 22.0317.4 16 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 15t Quarter 2022 CoStar analytics report, the Dallas/Fort Worth area apartment asking rent has increased approximately 15.5% (YOY). Additionally, CoStar reports "The 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 22.0317.4 17 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. 22.0317.4 18 TEXAS LaborMarket information Dalla6-Fort Worth -Arlington MSA 1= TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. May 2022 Mao LUM1ut ra r[e G: n,t11C) , a I r �A, tatm bienrFmm:6nbllu' e+tzmr r-- .-., .,............... •-•--•-•. -. r m _ ■ Tams ■US Dallas -Fort Worth -Arlington a:a.ax ureadAee Ess39 "M,mgMn 11 :I.ax r—Gmwva, H,ap"i.A f �Sa :1.t% Gmainri5).Yllbt S✓.a $E 41.a571 NamLaNevp l6,/i330 Is�eW ��\ Hmpa.srys2ssau aa�vot.p �- � n.m.Tv�swdem �5090 ;11% rveaN sinks E1.6B5.s2 J,® ` ...EH.3 M wo Ibaaaau-.�u,aae ao � 16a319'123% auv:%se sews Et&561.:9 \_ F .W SGu93 :9.3X L2Y M:9.]% MFdEs59,M.07 g m�f' E.—'—N-ZtiT'i >E';_ sE-�dMq2-imi rs�Na._Cp. i�.-3�-�1 . g A_A.-...—_.T9� _�.— 2p2A.y�E3 ■Rate anmtnanth xuomny %rwtr MrYg. p ne„ew emn:orm.nt enen9e rwen9• •roan ttax\ F-- ODbr Nenuhm 79 4.BW.3W 0.6% ].]x Sp.w 3l%\ :q aMCAnsWctlor: 296500 0.B% 4. -A LcnxeaN 296500 0.5% 4S% HmpWry tOSx�-r ptlatlon,eM URltles 801,700 0.5% ]S% $ _Tta iMmpotetion, munNa.213°6 84,500 0.6% 8.2% aeu ..11 rifles 384,500 0.6°b B.3% H. SSMros fl.]%� snd Business 747,700 1]% 11.0% `Inb:me@n 2.1% PMa4rnalaM F." f HealN seMws 481.300 -0.5% 5.0°b wires SeMmeta3%_r \'eawwsa.5% 22.0317.4 Page 1 of i EI2]/20222A4:03 PM 19 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 22.0317.4 20 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 Ma -22 A r-22 Ma -21 Chan a Ma -22 A r-22 Ma -21 Change 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 13.353.800 554.023 Employed 158,426.000 158,105,000 151,550,000 6,876,000 Unemployed 608,248 620,722 840.528 -232,2801 Unemployed 5.950.000 5,952,000 9.251,000 -3,301,000 Unem to ment Rate 4.2% 4.3% 5.9% -1.7% 1 Unemployment Rate 3.60% 3.6% 5.8% -2.2% Texas Employment by Industry Seasonally Adjusted (in Thousands) INDUSTRY TITLE 042021 % of Total Q3 2021 % of Total 042020 ova 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 6.5% 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% 472.093 3.9% -0.60% -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 22.0317.4 21 TODD PROPERTY ADVISORS 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. 22.0317.4 22 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, 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. a A9 v` Be 611e uo nsm: asaz Waslm ass Subject Property Weston Chembersvllle y - Vam as,a tic s — �h`nl Alto a 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. 22.0317.4 23 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. 2010 Population 14,622 2020 Population 32,079 2022 Population 39,716 2027 Population 46,062 2010-2020 Annual Rate 8.17% 2020.2022 Annual Rate 9.96% 2022-2027 Annual Rate 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 22.0317.4 24 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 10 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 Size 3.24 The household count in this area has changed from 9,895 in 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 "e as d z a 1.s 1 0.5 8 Population Households Median Household Income Owner Occupied 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 rive 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 22.0317.4 25 TODD PROPERTY ADVISORS REAL PROPERTY ANALMS, 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+ Population 16+ Employed Population I6+ Unemployment rate Population 16-24 Employed Population 16-24 Unemployment rate Population 25-54 Employed Population 25-54 Unemployment rate Population 55-64 Employed Population 55-64 Unemployment rate Population 65+ Employed Population 65+ Unemployment rate 2022 Employed Population 16+ by Industry Total Agriculture/Mining Construction Manufacturing Wholesale Trade Retail Trade Transportation/Utilities Information Finance/Insurance/Real Estate Services Public Administration 2022 Employed Population 16+ by Occupation Total White Collar Management/Busi news/Financial Professional Sales Administrative Support Se,Aces Blue Collar Farning/Forestry/Fishing lm otallabon/Maintenance/Repair Production 22.0317.4 26 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 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. 22.0317.4 27 SECTION 111 - 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 in the Henry Brantley Survey, Abstract No. 071, City of Anna, Collin County, Texas, and being part of a tract of land, conveyed to Sarah Martin, Donna Martin and Nelda Stanley, by deed recorded in Instrument Number 20190530000609730, Deed Records of Collin County, Texas (D.R. C. C. T). Size and Shape The subject consists of a tract of land totaling 2.916 acres (127,038 square feet). The tract is near 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 0.272 acre (11,846 square foot) right-of-way acquisition and a 0.017 acre (756 square foot) temporary construction easement. 7 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 165. 22.0317.4 29 N N O J A W CD �I I e JNICS P. R SPOUSE. tan v. RNFW, TRALT axE 2W80601000938N0 Tw m-,, I e I I ,i' m FNNACE ESMf. glHACKBERRY LANE —r—r-I— SARAH MARTIN, DONNA MARTIN, & NELDA STANLEY INST. J20190530000609730 2.892 ACRES CONSMUC77ON EASEMENT 017 ACRES 6 (756 S.F.) fig PERMANENT Har6euw 0,272 ACRES (11,846 S.F.) BENJNNN T. 01RISICM1SpN LOT 7A R BO INST. NO. 201402240001661M I H� I NOTES: ,. aLN6NG5 AND OmINCES OPED N THIS PIAT DFSCR�IION APE DASD ON T14E TEYAS STATE MANE COORDPNTE STSrEM, NAD-83, TE>A.S NORTN VITIATE ZONE 4202. 2. FED SNNL15 CONCI.WED ON 03/M/= 0 3. 1/r IRS - 1/2' BON ROD SET TpIN .. yam CAP SDMPED'RNC 0 1 INCH = EXHIBIT I'All PAGE 3 OF 3 1 CIW CMUES INST. NO. R 20100616000621620 It 1R'uts. WMDA JENI RSNER OM. NAYNE e NYIE MCOLLNI I. NORMA JEAN �I BIiTEE RSNER. M J E RISNM COM N, LNIDA MALCII RSNER, AND "WE &ENE MIAND R U Mr. NO, 20=8190007M710 F9J GRIM INC. ES$-E $6 1/2' IFS PROPOSED ROW I 1 1/2' RETFRENCE B G E=. ROW \ \ rNW25'54V - 119.22' SIRE WTTERY ET& 1/2' I.R.F. LOT 6 REFERENCE MARNO 197704270001U5560 14 34056V - 69A.& 1/r LRF, HENRY BRAMLEY SURVEY a EX LBBENNEn ABSTRACT 071 / �E. �. PARCEL N0. 4 of F �18TEq�,-T' �`N CITY OF ANNA, TEXAS SARAH MARTIN ET AL RON NENORICKS 5073 PERMANENT RIGHT-OF-WAY 0:° ;easTD�y0 BIRKHOFF, HENDRICKS&CARTER, L.L.P. >URNIE I'ROFESSIWAL EINGINEGRS APRIL TBPEI.S PEFIRM 526;SERV, FIRM 100TI800 2022 I19IOGmn0lI,AN .$v ¢600 TaAo,`Fxm75243 (214)361-M TODD PROPERTY ADVISORS REAL PROPERTY ANALYM, 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 property's location, access and exposure to the site is considered to be good. Parcel Map c: �1 w 322 w 0: I Anna'C: SII� 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 22.0317.4 31 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 ;FUAA A�3, r �FLOODWAY ' r 4-� e, rM, t 1. W Soils 2- waemap:t5G5Matlonal pMlydmegtrf 0ala m/ttawtl Mawr. )0]0 Subject Property gwm.0 Rwax.a.r,�q srcaunoro x.rxmnru wuni.uo.a..a.,.tm. m•a,m n.,a—. oaxarmra.mr..axmwrx. xi{,®IeWuwxaOmw! �Ymx�YPmgYgaO .YuaCv®al{/�1 ��r .oaWwmdafYx p..m. rcxq.uuar �� ••• nowxaruP wm.eum.m.a aMMV W iMa xauN r. q,[W ID,Bh q,m,.wus .u..xuwumwanwwva.m. mw+uue �� �r„a,w.mw..nam..a rmau.,omu..rxn —,d.a•r.n .ams.mmxn rtarvus _ ,e.,xy,t,.x„ prPmp..w.wm, .I waxsw.mr�w. xx Px[45 yxwpa f r.r,. tvw•,.m rtx.v,wuw r mt r a ap+rmu w.�aum.dxdi ma�ww. v ,r,w t�dw e�w qe rw tauw�rmry un r, wrw mot 4 ear m ww.wtx.esam+xaNM� m mw t+;pa ��^a�umvu u++w+nNmmaut,m wwm[wurure hNra.aw tw tm.. t~"tan M�w.ss .uo,^Vtrnitrn. ,wmw�+ +'u�. tw nix enetu.eeev. rr� xtur Mramrt ryrwt. revwf Hord Otw 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, 22.0317.4 32 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 Commercial 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. 22,0317.4 33 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 2.916 acres (127,038 square feet), is near 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. 22.0317.4 34 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INL. 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 sir 510 506 404 320 ma C ° 322 r ) 323 3226 SF-7 318 Subject Property 22.0317.4 35 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 SF-1 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 comer 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 °: 80 80 70 60 60 50 50 (feet) Min. lot depth 120 120 150 135 130 120 120 120 120 120 120 (feet) 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% 22.0317.4 36 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, 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 0.5830000 0.5695000 -1.35% Anna ISO 1.6700000 1.6700000 1.5683500 1.4746000 IA603000 -3.30% Collin County Community Colle e 0.0798100 0.0812220 0.0812220 0.0812220 0.0812220 0.44% Total Tax Rate $2.543344 $2.523295 $2.415811 $2.311353 $2.279109 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 I.D. Number Land Value Improvement Value Total Market Value 2520275 $131,238 S63,341 $194,579 Total Assessment: $131,238 $63,341 $194,579 Assessment PSF: $1.03 $44.92 $138.00 The subject has a 2022 assessed value of $194,579. This equates to a tax expense of $4,435 based upon the 2021 tax rate of $2.279109/$100 of assessed value. The land portion of the subject appears to be reasonably assessed. 22.0317.4 37 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. SUBJECT PROPERTY PHOTOGRAPHS Exterior view of the subject's main improvements Exterior view of the subject's main improvements 22.0317.4 38 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. SUBJECT PROPERTY PHOTOGRAPHS Viewing northeast across the subject property Exterior view of the storm shelter located in the proposed acquisition 22.0317.4 39 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. SUBJECT PROPERTY PHOTOGRAPHS Viewing east across the proposed acquisition area Viewing west across the proposed acquisition area 22.0317.4 40 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. SUBJECT PROPERTY PHOTOGRAPHS Viewing west down Hackberry Lane from subject Viewing east down Hackberry Lane from subject 22.0317.4 41 TODD PROPERTY ADVISORS REAL PRGPERTY 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, financial feasibility, and maximum productivity. 8 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. 22.0317.4 42 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 near 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 2.916 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 22.0317.4 43 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. small tract may be 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 2.916 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 financially 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 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. 22.0317.4 44 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 2.916 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. 22.0317.4 45 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 Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, pages 339. 22.0317.4 47 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, 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. IF o 0 0 Anna High School Q ; •'gSlayter Creek Park d Anna MiddleScfiool® 8 am Q Anna rnvmms d °._. y' vi xmnev" Fwrmas, Natural Spdii&:Park 4% , ® C Harlon: e F� �$ ra: s , � EFa,mlo Ma,kMMi55 ♦1 Map Comparable Summary Map # Date Size of Sale (Acres) Sales Price/SF 1 5/7/21 10.600 $0.68 2 2/1/21 2.512 $1.69 3 11/11/20 3.333 $1.17 4 6/30/20 4.620 © - 2.916 Subject 22.0317.4 48 'ROPERTY IDENTIFICATION Location (Physical): Legal Description: NEC FM 455 & Sheffield Dr Anna, TX Lot 47, Sheffield Farms subdivision TRANSACTION DATA Grantor: Lakshimi & Neeraja Koya Grantee: Alexis & Christopher Watson Date of Sale: May 7, 2021 Recording Information: Doc#20210511000947950 Property Rights Conveyed: Fee Simple Estate Conditions of Sale: Arm's Length Transaction TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. Sales Price: $315,000 Participant's Sale Terms: Cash to Seller Cash Equivalent Price: $315,000 Intended Use: Residential 1HYSICAL CHARACTERISTICS Road Frontage: FM 455 & Sheffield Drive Size of the Tract: 10.600 acres Configuration: Irregular 461,736 square feet Flood Plain: 0% Improvements: None Topography: Near Level Utilities: Electric & Water Zoning: Umoned UNITS OF COMPARISON Actual Sales Price Per Sq. FL: Cash Equivalent Price Per Sq. Ft.: Contact Person: Yola Dittmar Position: Buyer Agent SO.68 S9.68 Telephone Number: 972-948-0919 roperty is located at the northeast corner of FM 455 and Sheffield Drive in Anna, Texas. The property reportedly sold for $315,000, or per square foot. 22.0317.4 49 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 'ROPERTY IDENTIFICATION Location (Physical): E Line Twin Creeks Cir, N of Gleason Ln Anna, TX Legal Description: Lot 28, Twin Creeks Subdivision, Ezra Shelby Survey, Abstract 839 TRANSACTION DATA Grantor: Twin Creeks 9593 Land Trust Grantee: Vivek Kondaparthi Mwk- Date of Sale: February 1, 2021 Sales Price: $185,000 Recording Information: Doc #20210202000226730 Participant's Sale Terms: Cash to Seller Property Rights Conveyed: Fee Simple Estate Cash Equivalent Price: $185,000 Conditions of Sale: An's Length Transaction Intended Use: Residential 'HYSICAL CHARACTERISTICS Road Frontage: Twin Creeks Circle Size of the Tract: 2.512 acres Configuration: Rectangular 109,401 square feet Flood Plain: 0% Improvements: None Topography: Level Utilities: Electric & Water Zoning: Unzoned UNITS OF COMPARISON Actual Sales Price Per Sq. Ft.: $1.69 Cash Equivalent Price Per Sq. Ft.: $1.69 Contact Person: Trey Crook Position: Listing Agent Telephone Number: 214-597-4160 This property is located along the east line of Twin Creeks Circle, north of Gleason Lane in Anna, Texas. The property reportedly sold for $185,000, or $1.69 per square foot. 22.0317.4 50 'ROPERTY IDENTIFICATION Location (Physical): W Line Quail Creek Rn, S of Taylor Blvd Anna, TX Legal Description: Lot 4, Block A, Quail Creek Run Place Addition TRANSACTION DATA Grantor: Kutis & Amanda Clifton Grantee: Qi Lan Date of Sale: November 11, 2020 Recording Information: Doc#20201111002007920 Property Rights Conveyed: Fee Simple Estate Conditions of Sale: Arm's Length Transaction PHYSICAL CHARACTERISTICS Road Frontage: Quail Creek Run Configuration: Rectangular Flood Plain: 0 k Topography: Level Zoning: Unz ned Contact Person: Position: UNITS OF COMPARISON Actual Sales Price Per Sq. Ft.: Cash Equivalent Price Per Sq. Ft.: Steve Depriest Listing Agent TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. Sales Price: $170,000 Participant's Sale Terms: Cash to Seller Cash Equivalent Price: $170,000 Intended Use: Residential Size of the Tract: Improvements: Utilities: 3.333 acres 145,177 square feet None Electric & Water Telephone Number: 972-948-312.2 rty is located along the west line of Quail Creek Run, south of Taylor Boulevard in Anna, Texas. The property reportedly sold for or $1.17 per square feet. 22.0317.4 51 TODD PROPERTY ADVISORS REAL PROPEN ANALYSTS, INC. COMPARABLE LAND SALE NUMBER 4 PROPERTY IDENTIFICATION - i'!y�&. - IN Location (Physical): N Line CR 376, E of CR 426 r a^ • 411 p Anna. TX 41 �e Legal Description: Robert Whitaker Survey, Abstract a } 1011 Aim 111 TRANSACTION DATA Grantor: Brent & Theresa Hendricks Grantee: Martin & Abigail Covanubias Date of Sate: June 30, 2020 Recording Information: Doc#20200630001002920 Property Rights Conveyed: Fee Simple Estate Conditions of Sale: Ards Length Transaction PHYSICAL CHARACTERISTICS Road Frontage: County Road 376 Configuration: Rectangular Flood Plain: 0% Topography: Level Zoning: Unzoned UNITS OF COMPARISON Actual Sales Price Per Sq. Ft.: Cash Equivalent Price Per Sq. Ft.: Contact Person: Kelley Mackay Position: Listing Agent . ' r . r , try Sales Price: $157,000 Participant's Sale Terms: Cash to Seller Cash Equivalent Price: $157,000 Intended Use: Residential Size of the Tract: 4.620 acres 201,247 square feet Improvements: None Utilities: Electric & Water $0.78 $0.78 Telephone Number: 469487-6344 This property is located along the north line of County Road 376, Just east of County Road 426 In Anna, Texas. The property reportedly sold for $157,000, or $0.78 per square foot. 22.0317.4 52 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 Location Date Size Flood Price No. (Physical of Sale Acres Utilities Zoning TopoAraphy Plain PSF Intended Use 1 NEC FM 4558 Sheffield Dr 5///21 10.600 Electric it Water Ummned Near Level 0% $0.68 Residential Anna, TX 2 E Line Twin Creeks Ch,, N of Gleason Ln 2A/21 2.512 Electric 8 Water Ummned Level 0% $1.69 Residential Anna, TX 3 W Line Quail Creek Rn, S of Taylor Blvd 11111/20 3.333 Electric8 Water Uwned Level 0% SIA7 Residential Anna, TX 4 N Une CR 376, E of CR 426 6/30120 4.620 Electric 8 Water Ummned Level 0% $0.78 Residential Anna, TX Subject: N Line Neokberry Ln, W of Powell Pkwy - 2.916 All Available SF1, Single Family Residential Level 0% - - 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 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. 22.0317.4 53 TODD PROPERTY ADVISORS 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. 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. 22.0317.4 54 TODO PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. Market Conditions Comparison Comparable Number Date of Sale Unadjusted Price/Sq. Ft' Physical % Adjustment Adjusted Price/Sq. Ft. Comparable 1 May 7, 2021 $0.68 29% $0.88 Comparable 2 February 1, 2021 $1.69 9% $1.84 Comparable 3 November 11, 2020 $1.17 11% $1.30 Comparable 4 June 30, 2020 $0.78 18% $0.92 `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 subjectto 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. Comparable 1 is located in a more rural area of surrounding development and will be adjusted upward 10 percent. Comparables 2 and 3 are located in similar areas of development and along similar residential roadways as the subject and will not be adjusted. Comparable 4 is located in a slightly more rural area of surrounding development and will be adjusted upward 5 percent. Size The subject has a total land size of 2.916 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 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. 22.0317.4 55 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% J 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 E 50% - 75% -5.00% - -10.00% u7 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 10.600 2.916 264% 5% 9% Comparable 2.512 2.916 -14% 5% -1% Comparable 3.333 2.916 14% 5% 1% Comparable 4 4.620 2.916 58% 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 corner 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. All of the Comparable have access to electric and water utilities only and will be adjusted upward 10 percent. 22.0317.4 56 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. Zoning 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. 22.0317.4 57 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 $0.68 $1.69 $1.17 $0.78 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 0.04 0.12 0.09 0.08 Conditions Adj. Price/SF $0.72 $1.81 $1.26 $0.86 Location 10% 0% 0% 5% Size 9% -1% 1% 3% Corner 0% 0% 0% 0% Utilities 10% 10% 10% 10% Topography 0% 0% 0% 0% Zoning 0% 0% 0% 0% Flood Plain 0% 0% 0% 0% Total Adjustment 29% 9% 11% 18% Adjusted Price/SF $0.93 $1.97 $1.40 $1.01 $/SF Range Mean (Average) Standard Deviation All Data $0.93 - $1.97 $1.33 $0.48 Data Without High and Low Extremes $1.01 -$1.40 $1.21 $0.28 Data with Absolute Adjustments < 20% $1.01 -$1.97 $1.46 $0.48 22.0317.4 58 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. All of the Comparables had a mean of $1.33 per square foot, while the mean of data without high and low extremes is $1.21 per square foot, and the data with the least absolute adjustments (<= 20%) had a mean of $1.46 per square foot. Comparables 2 and 3 are the least adjusted Comparables and adjusted sales prices of $1.97 per square foot and $1.40 per square foot, respectively. Therefore, considering the foregoing analysis and giving emphasis to Comparables 2 and 3, a market value opinion of $1.75 per square foot is considered to be reasonable for the subject tract. However, as mentioned previously, a portion of the subject lies within the existing prescriptive right-of-way. According to survey provided by the client (located in the Addendum Section), approximately 6,283 square feet of the subject lies within the prescriptive right-of-way. The Easement Valuation Matrix located as follows provides a guide for allocating value of the fee simple interest between the easement estate (dominant estate) and the landowners estate (servient estate). This exhibit was provided by an article entitled "Valuation of Easements" by Donald Sherwood, SR/WA, published in the November/December 2014 edition of Right of Way Magazine. Easement Valuation Matrix Percemoge of Fear 9016.100% Comments Sevne impact on ..face we PotamtIal Typn of Easements Overhead electic, flowage easements, Conveyance of future was railroad right Away, irrigation Cana$ exclusive access easements 75%-89% Major impact on sudoee use Overhead electric. pipelimm drainage Cww"ance of future wes easements, railroad right of way, flowage eaumenti 91%-74% Some impact on surface use lsipefnm sank easemems Conveyance of ingreWegress rights 80% Balanced use by both owner end Water or sewer lines, cable fines. easeshent hcldn leleiomm.,imtiorss 78%-49% location along a property line Water or sewerline, able inn Wation Soon non -usable End area li%-S% Subsurface or air rights with minimal Air rights, water or sewer lint effect w we and utility Location with a MUWA 0%-10% Nominal effect an use and. lily Small subnrfam 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 22.0317.4 59 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. encumbered land, leaving 5 percent of its fee simple value for the subject. Thus, the "as is" market value opinion for the subject property, land only, as of the effective date of the appraisal is calculated below: Outside Prescriptive ROW: 120,755 square feet x $1.75 per square foot = $211,321 Inside Prescriptive ROW: 6,283 square feet x $1.75 per square foot x 5% = $550 Total: 127,038 square feet = $211,871 Therefore, the market value of the whole property, including the contributory value of the improvements (calculated in the damages section), was $301,071 ($89,200 + $211,871). 22.0317.4 60 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 2.916 acres (127,038 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 ($301,071) VALUE OF THE PARTS TO BE ACQUIRED The portions of the site from which property rights will potentially be acquired involve a 0.272 acre (11,846 square foot) right-of-way acquisition and a 0.017 acre (756 square foot) temporary construction easement. As mentioned previously, according to survey provided by the client (located in the Addendum Section), approximately 6,283 square feet of the subject lies within the prescriptive right-of-way. Therefore, approximately 5,563 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 0.272 acres (11,846 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: 5,563 square feet x $1.75 per square foot = $9,735 Inside Prescriptive ROW: 6,283 square feet x $1.75 per square foot x 5% = $550 Total: 11,846 square feet = $10,285 Additionally, a storm shelter is located within the proposed right-of-way. According to the Marshall & Swift Cost Manual, a storm shelter of this size would cost $9,200, inclusive of profit. Therefore, upon adding the contributory value of the storm shelter to the land within the proposed right-of- way, a total value of $19,485 results. 22.0317.4 62 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 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 0.017 acres (756 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 easements, which results in an annual rental rate. The value of the temporary construction easements is calculated as follows: 756 square feet (0.017 acres) x $1.751square foot = $1,323 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. ... ::..:...:........ . . ...:....:, .. - ... . ... ... .. .... ... O .. �.,.::.:.. .. y6A_00% �4.64% 9.37% - 4.860/.j-15.260/. 4.86Y. i 10.56% 7A0: l 9.2T, Apartments _ j 2.04%8.87% Golf ��-- ^T' �- - - j 2.26% 14.76% 823Y. Health CarefSenior Housing 226%j-10.06Y. 6.55Y. Industrial ; 226% 9.41% 6.30% 1 CSVI.' 9.91% 7.30: - - Lodging 226%; 14.06%; 6.83Y. 4_86%1 14.56% 1 7.83; - Mobile H omefRV Park • 2.06/.1 11.96/. • 7.09 /. - � 4.66•i 12.46% 1 8.09: Office j 226% 9.26Y.1 6.06 V. 4.86% j 9.76Y. 7.06: Restaurant ! 2.65%i 14.54Y. 7.87Y. 525•Y.. 15.04% 8.87: Retail Self -Storage _ I 2.26% 228%1 -, 10.46% 9.66% ' 6.47 Y. 7.36Y. - _ i 4.86% � t0 96% 4.88%, 10.16%j 7.47: UP, _ Special Purpose -- - - - - - - , 2.61% 1 -16.16% f 8.30 Y. 6.05%' 17.49% j 8.72: Ali Properties j 2.04 16.t6Y. �7.01% I 4.64% 1526% 1 7.88: •4th Quarter 2021 Data Copyright 2022 RcaltyRatcs.comTM 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: 22.0317.4 63 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. Value of Temporary Construction Easement 1: Land Value: $1,323 x Overall Rate: 7.75% Equals: Annual Rent: $103 Months/Year: 12 Equals Monthly Rent: $9 x 12 Months (Term of Temporary Construction Easement): 12 Equals: Recommended Compensation (Temporary Construction Easement 1): $103 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. 22.0317.4 64 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 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. fr Anna, 14 g Ww Ie St a EWEne sr EFe a Ural 0 's Sp"nge ark a , R 63 3ET , 1 O . Harlow in Elementary School© -W ^ n l� l (4; I F'� aes 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 8/20/21 1,323 $98.26 4 9/20/19 1,560 $96.79 © - 810 Subject 22.0317.4 65 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. OPERTY IDENTIFICATION Location: Legal Description: 709 N Sherley Ave Anna, TX Henry Brantley Survey, Abstract 71 RANSACTION DATA =I -�■ — Grantor: William Chesser Jr. B Made Pinkston e. . Grantee: Daniel Javier & Matthew Perez Date of Sale: March 14, 2022++- Recording Information: Doc#20220317000432590 Property Rights Conveyed: Fee Simple Estate Conditions of Sale: Arm's Length Transaction Estimated Site Value PSF: $2.00 Sales Price: $18,750 Total Estimated Site Value: $87,000 Participant's Sale Terms: Cash to Seller Contributory Sales Price: $100,500 Cash Equivalent Price: $187,500 'HYSICAL CHARACTERISTICS Type of Construction: Wood Siding Gross Livable Area: 1,360 square feet Condition and Appearance: Good Land Area: 1.000 acres Year of Construction: 1950 Amenities Shed Bedrooms/Bathrooms: 312 Driveway Gravel Garage: WA OF COMPARISON Sales Price PSF: Contributory Sales Price PSF: $137.87 $73.90 Contact Person: Stacy Collinsworth Telephone Number: 469-952-0269 Position: Listing Agent :OMMENTS We property is located along the west line of North Shedey Road, north of East First Street in Anna, Tetras. 22.0317.4 66 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. OPERTY IDENTIFICATION Location: 805 N Powell Pkwy Anna, TX Legal Description: Henry Brantley Survey, Abstract 71 ANSACTION DATA Grantor. Michael, Larry, 8 Thomas Montgomery - Grantee: Joseph Mojarrad & 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: S2.50 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: 3/1 Driveway Gravel Garage: N/A OF COMPARISON Sales Price PSF: Contributory Sales Price PSF: $114.31 $85.55 Contact Person: David Montgomery Telephone Number: 214585-4063 Position: Seller/Agent MMENTS s property is located along the west line of Powell Parkway, north of Hackberry Lane in Anna, Texas. 22.0317.4 67 NUMBER3 OPERTY IDENTIFICATION Location: 204 Wortham St Anna, TX Legal Description: Gwyn Morrison Survey, Abstract 559 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. ANSACTION DATA[. s� Grantor: Robbie Rollins Grantee: Cynthia Scibelli Date of Sale: August 20, 2021 Recording Information: Doc #20210823001699950 Property Rights Conveyed: Fee Simple Estate Conditions of Sale: Arm's Length Transaction Estimated Site Value PSF: $2.50 Sales Price: $175,000 Total Estimated Site Value: $45,000 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 BedroomslBathrooms: 3/2 Driveway Gravel Garage: Carport OF COMPARISON Sales Price PSF: Contributory Sales Price PSF: Contact Person: Mickey Cody Position: Listing Agent Telephone Number: $132.28 $98.26 property is located at the southwest corner of 5th Street and Wortham Drive in Anna, Texas. 972-987-3800 22.0317.4 68 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. COMPARABLE SALE NUMBER 'ROPERTY IDENTIFICATION Location: 3122 CR 422 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 Estimated Site Value PSF: $1.50 Sales Price: $216,000 Total Estimated Site Value: $65,000 Participant's Sale Terms: Cash to Seller Contributory Sales Price: $151,000 Cash Equivalent Price: $216,000 Type of Construction: Wood Siding Gross Livable Area; 1,560 square feet Condition and Appearance: Good Land Area: 1.000 acres Year of Construction: 1959 Amenities WA Bedrooms/Bathrooms: 312 Driveway Gravel Garage: 2 Car Attached OF COMPARISON Sales Price PSF: Contributory Sales Price PSF: $138.46 $96.79 Contact Person: Lisa Biddle Telephone Number: 972-333-0301 Position: Listing Agent :OMMENTS -his property Is located along the west line of County Road 422, north of Foster Crossing in Anna, Texas. 22.0317.4 69 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, 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 BIT SF Price PSF Price PSF 1 709 N Shedey Ave March 14, 2022 1950 312 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 NIA $138.46 $96.79 Anna, TX Subject: 404 Hackberry Ln - 1940 21l 810 Fenced Yard/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 22.0317.4 70 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. 22.0317.4 71 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, 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 3% $76.12 Comparable 2 December 21, 2021 $85.55 8% $92.39 Comparable 3 August 20, 2021 $98.26 -7% $91.38 Comparable 4 September 20, 2019 $96.79 -10% $87.11 '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 subjectto 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. Age/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 22.0317.4 72 TODD PROPERTY ADVISORS REAL PROPERTY 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 (CA-SA=AD) Econ. % Life (Yrs) Difference (EL) (AD+EL=PD) % Attributable to Building (PAB) Indicated Adjustment (PD x PAB = IA) 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 810 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. 22.0317.4 73 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 E 50% - 75% -5.00% - -10.00% 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 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 1,360 810 68% 5% 3% Comparable 2 1,356 810 67% 5% 3% Comparable 3 1,323 810 63% 5% 3% Comparable 1,560 810 93% 5% 5% 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. 22.0317.4 74 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 3% 3% 3% 5% Garage 0% 0% 0% -5% Total Adjustment 3% 8% -7% -10% Adjusted Price/SF $77.64 $95.17 $95.95 $99.31 $/SF Range Mean (Average) Standard Deviation All Data $77.64 - $99.31 $92.02 $9.75 Data Without High and Low Extremes $95.17 - $95.95 $95.56 $0.55 Data with Absolute Adjustments < 15% $77.64 - $95.95 $89.59 $10.35 22.0317.4 75 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. All of the Comparables had a mean of $92.02 per square foot, while the mean of data without high and low extremes is $95.56 per square foot, and the data with the least absolute adjustments (<=15%) had a mean of $89.59 per square foot. Therefore, considering the foregoing analysis, a contributory value opinion of $95.00 per square foot is considered to be reasonable for the subject. Thus, the contributory value of the improvements is as follows: 810 square feet x $95.00/SF = $76,950 Rounded to: $80,000 Additionally, as discussed in the part acquired, the contributory value of the subject storm shelter is $9,200. Therefore, a total contributory value of $89,200 ($80,000 + $9,200) results. 22.0317.4 76 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSrS, INC. 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 * 21b 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 cast estimate near the low end of the range of comparables or $3.00 per square foot is likely. Therefore, demolition costs are calculated in the following chart. Improvement Square Footage Demo Cost House 810 SF x $3.00/SF $2,430 Barn 600 SF x $3.00/SF $1,800 Storm Shelter 25 SF x $3.00/SF $75 Total: S4.305 22.0317.4 77 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. Opinions of Recommended Compensation Value of the Whole Property: Value of the Part Acquired (0.272 Acre Right -Of -Way): Remainder Before Acquisition: Remainder After Acquisition: Enhancements: Damages: Cost to Cure: Value of the Part Acquired (0.272 Acre Right -Of -Way): Recommended Compensation (0.017 Acre TCE): Total Recommended Compensation: $301,071 $19,485 $281,586 $2819586 $0 $809000 $4,305 $19,485 $103 $1032893 22.0317.4 78 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 XI 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. 22.0317.4 80 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: $301,071 Value of the Part Acquired (0.272 Acre Right -Of -Way): $19,485 Remainder Before Acquisition: $2819586 Remainder After Acquisition: $2810586 Enhancements: $0 Damages: $80,000 Cost to Cure: $4,305 Value of the Part Acquired (0.272 Acre Right -Of -Way): $19,485 Recommended Compensation (0.017 Acre TCE): $103 Total Recommended Compensation: $103,893 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. 22.0317.4 81 Respectfully submitted, Mitchell B. Todd, MAI President State Certification #TX-1323514-G mitchell@toddpa.com #4 1�� Jonathan D. Martin Appraisal Associate State Certification #TX-1381200-G jonathan@toddpa.com TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. n,Z%44� Michael A. Keane, MAI Senior Vice President State Certification #TX-1380384-G michael@toddpa.com 22.0317.4 82 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. 22.0317.4 83 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. 22.0317.4 84 SECTION VI 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 (2/90-7/92); 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 6 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 8 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 Appraiserg�+'a� Chelsea Buchholtz For additional information or to file a complaint please contact TALCB commissioner at www.talcb.texas.gov. TALCB TEXAS APPRAISER LICENSING 6 CERTIFICATION BOARD Certified General Real Estate Appraiser 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 Ad, 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. NI I I JAMES P. & SPOUSE, 't LORI V. RIVERA TRACT ONE INST. NO. 2GO80801000936340 TRACT TWO` `i,. I R� I I 3' TEA I.R.S. l SARAH MARTIN, DONNA MARTIN, & NELDA STANLEY INST. #20190530000609730 2.892 ACRES (756 S.F.) 16 C. M P fi AW4BJ21Y (11,846 SF.) BENJAMIN T. CHRISTENSON LOT 7A & 88 INST. NO. 20140224000156160 NOTES: 1. BEARINGS AND DISTANCES CITED IN THIS PUT DESCRIPTION ARE BASED ON THE TEXAS STATE PLANE COORDINATE SYSTEM, NAD-83, TEXAS NORTH CENTRAL ZONE 4202. 2. FIELD SURVEYS CONCWDED ON 07/08/2021. 3. 1/2- I.R.S. = 1/2- IRON ROD SET WITH YELLOW CAP STAMPED 'BHC' 4. A FIELD NOTE DESCRIPTION OF EVEN DATE Approximately 6, 283 SF of prescriptive right of way in use. u PROPOSED ROW SUZIE MATHENY ETAL LDT 6 REFERENCE I INST. NO N4N40'58"W — 1977042742700010105590 HENRY BRANTLEY SURVEY ABSTRACT 071 P R E L I M I N A R Y THIS SHAU. NOr BE MENT I 4��ECORDED FORUANY PURPOSE AND SWV1 4 0 .0 ftft W NOT 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 EXHIBIT "A" PAGE 3 OF 3 I CHAD GRIMES INS. N0.4RISNrER. R 2010 618 00621620 It — — WANDA JEAN RISNER B I JEAN EIFFEL RISNER, KYLE OWJ?Y JCOMPTON. UNDA WAL AND WIWE ALENE ROLAND RISNER INST. NO. ZD180619000756710 CHAD GRIMES CRESS —EGRESS ESMT. n _ 1 V / OSED ROW 5176i6V' 1/2' I.R.F. 4&71' POINT OF BEGINNING REFERENCE BEARING �N68'25'54'W — 119.22' 1/2' I.R.F. 1/2' I.R.F. i R / ELY LOT NO. _`_/// 201007 3000715550 PARCEL N0. 4 CITY OF ANNA, TEXAS SARAH MARTIN ET AL PERMANENT RIGHT-OF-WAY BIRKHOFF, TIENDRTCKS & CARTER, L.L.P. DECEMBER PROFESSIONAL I:NGINFRS 'FBPELS I'E FIRNI5'_6; SERV.IIRNI 10031800 12021 11910 Greenville Ave, Suite 600 Della,. Tcxe, 75243 (214) 361-7900