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58-09 OrdinanceRECORD OF ORDINANCES Dayton Lc~~al I31ank, Inc. 58-09 Ordincnzce No. Passed AN ORDINANCE ACCEPTING THE UPDATED ESTIMATED AVERAGE PER ACRE VALUE OF LAND FOR PARK FEES IN LIEU OF LAND DEDICATION. 20 WHEREAS, Section 152.086(C)(6) of the Dublin Codified Ordinances requires that an estimated average value of land per acre shall be established by Council based on the recommendation of a qualified land appraiser; and WHEREAS, the estimated price per acre value provides a base for the payment of the park fee in lieu of a land dedication; and WHEREAS, the Continental Appraisal Company has completed their update of raw land transactions within the Dublin area and is recommending an average suggested price per acre consistent with the cui7ent value. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, ~ of the elected members concurring: Section 1. That the report of the Continental Appraisal Company is hereby accepted, estimating per acre value for raw land at S35,000 within the City of Dublin, Ohio for use pursuant to the provisions of Chapter 53, Section 152.086(C)(6) of the Dublin Codified Ordinances. Section 2. That this estimated value per acre is consistent with the current per acre value, and therefore the existing per acre value shall be retained for a period of two (2) years, commencing with the effective date of this ordinance. Section 3. That this ordinance shall be effective at the earliest date permitted by law. Passed this day of CVO () P~ ~ 2009. Mayor -Presiding Officer ATTEST: Clerk of Council Office of the City Manager 5200 Emerald Parkway • Dublin, OH 43017-1090 Phone: 614-410-4400 • Fax: 614-410-4490 To: Members of Dublin City Council From: Terry Foegler, City Manager/ ~~ Date: October 15, 2009 Initiated By: Fred Hahn, Director of Parks & Open Space Memo Re: Ordinance 58-09 - 2009-2010 Parkland Fee in Lieu of Land Dedication Background Attached is the City of Dublin Parkland Fee report from Continental Appraisal Company that details the recommended parkland fee in lieu of land dedication for the years 2009 and 2010. The establishment of this fee is required under Chapter 152, Subdivision Regulations of the Dublin Codified Ordinances. Section 152.086(C)(6) stipulates that: (An) estimated average value of land per acre shall be establislsed every two years by resola~tion of Council based upon the recommendation of a qualified la~zd appraiser retained by the City to research recent real estate tra~zsactions and provide Council with a suggested price per acre for raw land within the City. The suggested raw land value, based on findings of this report is $35,000 per acre. The value for 2007 and 2008 was $41,500.00 per acre. This reduction of land value is reflective of the existing land market. This value, once approved, will be used by the City when it is determined that payment in lieu of land for parkland donation is in the best interest of the City. The summary of the reasons for the reduction of land values is in the attached correspondence. Acomplete copy of the appraisal report is available for review in the Council planning room. Recommendation Staff has reviewed the appraisal document and found it to be complete and in order. Staff is recommending adoption of Ordinance 58-09 at the second reading/public hearing on November 2. Continental Appraisal Company REAL ESTATE CONSULTANTS & APPRAISERS 1111 Schrock Road Columbus, Ohio 43215 Phone (614) 436-0200 Fax (614) 436-0215 May 26, 2009 Mr. Fred Hahn Director of Grounds and Facilities City of Dublin 6555 Shier Rings Road Dublin, OH 43016 Re : Single-Family Development Land Study Suggested Unit Price per Acre of Raw Development Land Parkland Fees in Lieu of Land Dedication Time period: 2009 & 2010 Dear Fred: INDIVIDUAL MEMBERSHIPS APPRAISAL INSTITUTE AMERICAN SOCIETY OF REAL ESTATE COUNSELORS INTERNATIONAL RIGHT-OF-WAY ASSOCIATION NATIONAL ASSOCIATION OF REALTORS OHIO ASSOCIATION OF REALTORS COLUMBUS BOARD OF REALTORS Please find copies of the report enclosed, on the referenced analysis. This was the first year I experienced no new transfers of development land that met the criteria established by the city ordinance, from which an analysis could be made. In the prior Analysis for the years 2007-2008 the market was showing signs of stagnating, with no upward movement in the suggested unit price. At that time the housing market indicators were trending downward. The downward trend has continued to the current date. The impact of the financial crisis continues to adversely impact the housing market and demand for residential development land. The established trend will likely continue in to the near term, foreseeable future. As of the date of this report, there was no market for residential development land, thus a discount was made to the prior suggested unit price of $41,500. This most accurately reflect the anticipated market conditions over the next two-years. My suggested unit price has dropped to $35,000 per acre, which recognizes the anticipated holding period before development, and the opportunity cost recognizing an investors choice to invest in an alternative investment. After review of my appraisal, if you have any questions, please give me a call. Thank you. Enclosed, please find my invoice for appraisal services provided. Sincerely, C ine al Appr ' al Co. '"- Jo M. Ga in, M COUNCIL PLANNING ROOM COPY CITY OF DUBLIN PARKLAND FEE Suggested Average Unit Price/Acre Single Family Residential Development Land Park Fees In Lieu of Land Donation Two-Year Period (2009-2010) PREPARED FOR: Mr. Fred Hahn Director of Grounds & Facilities City of Dublin 6555 Shier Rings Road Dublin, OH 43016 AS OF: April 24, 2009 PREPARED BY: John M. Garvin, MAI Nick Wax Continental f~ppraisal Company 1111 SchNOCk Road, Suite 202 Columbus, OH 43229 Continental Appraisal Company REAL ESTATE CONSULTANTS & APPRAISERS 1111 Schrock Road -Ste 202 Columbus, Ohio 43229 Phone (614) 436-0200 Fax (614)436-0215 April 24, 2009 Mr. Fred Hahn Director of Grounds and Facilities City of Dublin 6555 Shier Rings Road Dublin, OH 43016 INDIVIDUAL. MEM6ERSHIPS: APPRAISAL INST1'I'U'i'E AMERICAN SOCIETY OF RP.AL. ESTATE COUNSELORS INTERNATIONAL RIGhLT-0P-WAY ASSOCIATION NATIONAL. ASSOCIATION OF REALTORS OHIO ASSOCIA'rLON OP REALTORS COL.UMEUS L30ARU OF REALTORS RE: Single-Family Development Land Study Suggested Unit Price per Acre of Raw Development Land Parkland Fees in Lieu of Land Dedication Time period: 2009 & 2010 Dear Mr. Hahn: At your request, we have completed a market investigation and analysis for the purpose of providing an average suggested price per acre for raw residential development land that is to be applicable for the two year time period (2009-2010). This estimate considers the current and anticipated future economic conditions and their effect on the overall average unit price/demand for single-family development land, in the Dublin submarket. The intended use of the suggested unit value is to establish the basis for the payment by a developer of the park fee in lieu of a land dedication, as specified in City Ordinance Section 152.086 Part C of the subdivision Regulations, at the time of plat approval. ~ Based on a review of the City Ordinance, it has been our conclusion that the base acre value should be premised on the analysis of raw single-family residential development land transactions, located in the Dublin submarket. However, considering the most recent downturn in the economy, with its adverse impact on demand throughout the various segments of the real estate market, there is an insufficient number of market transactions subsequent to our prior analysis and report dated January 12, 2007, from which a reliable indication of an average unit l value could be made. The methodology used in prior unit land value analysis has been premised on the economic principle of substitution that states that when several similar or commensurate 3 commodities, goods, or services are available, the one with the lowest price will attract the greatest demand and widest distribution. This principle assumes prudent market behavior, and recognizes that property values tend to be set by the price of acquiring an equally desirable substitute property. The price, at which vacant residential development land typically transfers is established through the interactions of market participants (buyers/sellers). Due to the recent decline in the market conditions, for single-family residential development land, market transactions have been limited. Therefore, the following analysis is focused on changes in market conditions, and the anticipated impact these changes have on market price over the next two years. Based on the conclusions set forth in the following report, it is our recommendation that the average rp ice der acre of raw development land for the succeeding two years (2009-2010), from the date of this report, be established as: THIRTY-FIVE THOUSAND DOLLARS PER ACRE ($35,000 / Acx~) This unit value estimate represents an average unit value for single-family residential development land for the entire City of Dublin, to be used in the calculation for the payment of a park fee in lieu of parkland dedication, by the developer. It should not be construed as an appraisal of any individual acre located within the City or used for valuation purposes, other than the stated purpose of this report. This report has been prepared in accord with the basic valuation principles and regulations of the Appraisal Institute and USPAP. We certify that we have no present nor contemplated future interest as it would relate to park land property and that our compensation is not contingent upon the result of this reported average unit value estimate. Thank you for the privilege of serving you in this matter. Respectfully submitted, Continental Appraisal Company John I~{1. Garvin, 1CiIAI General Appraiser/Certificate No. 381572 Nick Wax OH Registered Real Est e Appraiser Assistant No. 2008000404 i Table of Contents Title Page __ _ I i '~ Letter of Transmittal _._. __ Table of Contents _. _. j Certification i Limiting Conditions __ . ~ __ _. Analysis and Conclusions i _. _ Purpose, Intended Use and Scope of Analysis ............ .................................... ~ 1 Definition of Market Value .................................. ................................... 2 Market Analysis & Conclusions ......... ......... ... ...... ......... .............. j 4 Average Unit Price Analysis ... ......... ......... ... ...... ........................ ~ 14 Conclusion .................................................... .................................... j 15 Appraiser Qualifications ........ ........ ......... ... ..... ........ .... ' 17 Appraiser Disclosure Statement ............................ ................................... ~ 19 Cohtinental Appraisal Company CERTIFICATION The undersigned hereby certify that, except as otherwise noted in the appraisal report: { 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 ltmiting conditions, and are our personal, unbtased professional analyses, opinions, and conclusions. {3} We have no present or prospective interest in the property that is the subject.of this report and we have no personal interest or bras with respect to the parties involved. {4} Our compensation is not contingent upon the reporting of a predetermined value or directton to value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. { 5 } Our analyses, opinions, and conclusions were developed, and this re ort has been prepared, in conformityy with the 1) the Uniform Standards of Professional Practice as promulgated by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council and the Appraisal Foundation; and 2) the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute, and is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. {6} A personal inspection of the Dublin area and all sales data was made by the undersigned appraisers. {7} No one provided significant professional assistance to the persons signing this report. {8} The Appraisal Institute conducts a voluntary program of continuing education, for its designated members. John M. Garvtn, MAI is currently certified under this program. {9} We do not authorize out-of-context quoting from or partial reprints of this appraisal report. { 10} We certify that this appraisal assignment was not based on a requested minimum valuation or specification valuation for approval of a loan. The estimated average unit value as shown elsewhere in this report for: PROPERTY: Suggested Unit Price/Acre of Single Family Development Land in Lieu of Donation -City of Dublin. SUGGESTED UNIT PRICE/AC: $35,000/Acre AS OF: 2009 through 2010 . Gar~f n, MAI Appraiser, Certificate No. 381572 Nick Wax OH Registere Assistant No. Estate Appraiser Dublin Park Land Value 2009/2010 Continental Appraisal Company LIMITING CONDITIONS The Certificate of Appraisal and report hereto attached are made expressly subject to the conditions and stipulations following: - No responsibility is assumed by the appraisers for matters that are legal in nature, nor is any opinion on the title rendered herewith. This appraisal assumed good title. Any liens or encumbrances, which may now exist, have been disregarded and the property has been appraised as though no delinquency in the payment of general taxes or special assessments exists, and as though free of indebtedness unless otherwise noted. - Information, estimates, and opinions contained in this report were obtained from sources considered reliable and believed to be true and correct; however, the appraiser can assume no responsibility for accuracy. No single item of information was completely relied upon to the exclusion of the other information and all data was analyzed within the framework of judgment, knowledge and experience of the real estate appraisers. - The physical condition of the improvements described herein was based on visual inspection. No liability is assumed for the soundness of members, equipment or soil conditions, since no engineering tests were made. - Unless otherwise stated in this report, the existence of hazardous substances or other environmental conditions were not called to the attention of nor did the appraiser become aware of such conditions during the appraiser's inspection. This includes, without limitation, asbestos, polychlorinated biphenyls, petroleum leakage, agricultural chemicals, industrial chemicals, or other materials, which have or may be deemed to be hazardous or toxic by EPA. The appraisers have no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraisers are not qualified to test for such substances or conditions. Tf the presence of or proximity to hazardous substances or materials or environmental conditions may affect the value of the property, the value estimate is predicated upon the assumption that no such condition exists on or in the property or in proximity thereto that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. - The appraisers shall not be required to give testimony or appear in court by reason of this appraisal with reference to the property herein described, unless prior arrangements have been made. - The values for land and improvements as contained within the report are constituent parts of the total value report, and neither is to be used in making a summation appraisal by combination with values created by another appraiser. Either is invalidated if so used. - Neither all nor any part of the contents of this report, relating to value, the identity of the appraisers or Continental Appraisal Company, or reference to the Appraisal Institute, the MAI or SRA designations, may be conveyed to the public through advertising media, public relations media, news media, sales media, or any other public means of communication, nor may the same be used for any purpose by any but the applicant without the previously written consent of the appraisers, and in any event, only in its entirety. Dublin Park Land Value 2009/2010 Continental Appraisal Company ANALYSIS AND CONCLUSIONS Dublin Park Land Value 2009/2010 ContinentalAppraisal Company PURPOSE, INTENDED USE AND SCOPE OF ANALYSIS The purpose of this analysis is to provide an update of the estimated average prospective unit price per acre estimate, for raw development land, applicable for property situated in the City of Dublin. This estimate is to be effective for the two year period from January 2009 through December 2010, as specified by City Ordinance. The intended use of this prospective average price per acre estimate is to calculate the value of the land donation set forth by the park fee, identified in Section 152.086, Part C of the Subdivision Regulations for the City of Dublin. The relevant requirements of this section of the Code, which form the basis of this reporC, are outlined as follows: Item #6 `Estimated Average Value of Land per Acre shall be estimated every two years by resolution of Council based upon the recommendation of a qualified land appraiser retained by the Village to research real estate transactions and provide council with a suggested price per acre,for raw land within the City. " A developer has the option of paying a park fee in lieu of land dedication at the time of final plat approval. The formula used to determine the per unit park fee considers: the site's gross area, the total number of dwelling units, the calculated required land az~ea dedication, and the estimated average value of land per acre in the City of Dublin. This formula calculates both the value of the required parkland donation and the per unit park fee. For the reader's convenience, a copy of Section 152.086, Open Space Requirements, under Subdivision Regulations for the City of Dublin, is provided as an exhibit in the Addenda. The scope of this assignment includes a review of the market in order that a suggested price per acre for raw land within the city of Dublin can be made. As an update, a review of the data presented in prior reports was appropriate in order to determine the trend in unit prices for raw development land, from a historical standpoint. These reports were prepared under the same premise as this current analysis, including the supporting real estate (land) transactions that were appropriately considered in these prior analyses. This provides the basis from a historical and current perspective from which the future two year period may be estimated. Although this analysis considers the past market conditions, from which an estimated unit price was estimated for the respective two year period, the current market trends and anticipated future market trends are given greater weight. In summary, this analysis provides an estimate of the average unit price of raw development land in the city of Dublin, which is applicable for the next two years (2009 & 2010). The estimate is based on a review of historical trends, in conjunction with current and anticipated future trends. All market data considered in this analysis is in complete compliance with the following definition of Market Value. Dublin Park Land Value 2009/2010 Continental Appraisal Company DEFINITION OF MARKET VALUE The market data considered in Chis analysis have a highest and best use for single-family residential development. Considering the relatively recent downturn in the residential housing market, the components of this definition must be given careful consideration when assessing market data, as a part of this analysis. Market value is defined as follows: MARKET VALUE is the most probable price, which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. ImpliciC in this definition is the consummation of a sale as of a specifed date and the passing of title from seller to buyer undet• conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Comparable sales compliance with the items identified as #1 through #5 above are all necessary if the purpose of appraisal is to estimate the market value of a property. Item #1 is in reference to the motivation involved in Che sale. Both buyer and seller must be typically motivated, which implies Chat market forces dictate the sale price paid for a property and not a motivation that is not reflective of market conditions, such as a distressed sale. This is in reference directly to the condition under which a property transfers. Market conditions will be discussed later in this report, along with their impact on the current and anticipated market value for raw development land in the city of Dublin. Item #2 is in reference to the fact that both parties involved in the sales transaction were knowledgeable of market conditions, and negotiated to an agreeable market sales price. The interaction, or lack thereof, between buyers and sellers is discussed later in this report. Item #3 is in reference to the amount of time Che sale was exposed on the open market before the consummation of a sale. This ensures that property consideration is given to the time that market forces had to influence the sale price. Item #4 addresses the fact that comparable sales used in an analysis resulting in a market value estimate must be in terms of cash or its equivalent. Financing can influence Che price paid for a property; however, it can not influence the properties value. Item #5 is directly tied Co Item #4 in that financing can not affect the value indicated by the sale price of a comparable sale. Dublin Park Land Value 2009/2010 Continental Appraisal Company A market value estimate is not estimated for a specific property in this report. The definition of Market Value provides the standard conditions in which the tnarket data used in this ~ analysis transferred. The sales data considered in this analysis represent the negotiated arms length transactions of each property's fee simple estate, in terms equivalent to cash. Dublin Park Land Value 2009/2010 Continental Appraisal Company MARKET ANALYSIS & CONCLUSIONS Historically, the scope of this assigmnent has consisted of assembling and analyzing pertinent market data (recent sales transactions) to be used in developing an average unit price per acre, for residential development land, in the City of Dublin, as set forth under Ordinance No. 1109.02(c)(6) (Park Fee). The general parameters established for land sale transactions considered in this analysis include: 1. Transfer ofsingle-family raw development land situated in the City of Dublin 2. Transfer of fee simple estate 3. Transfer on a cash equivalent basis 4. Arm's length, open market negotiated transactions 5. Sales data included should consist of properties that transferred subsequent to the last update report [January 12, 2007]. Consideration is also given to historical data to analyze trends in the average unit price per acre, in the Dublin submarket. All of the market data that has been included in the database over the years has had a highest and best use for future low density, single-family residential development. At the time of transfer the properties were considered raw residential land sales, which are defined as acreage tracts suitable for residential development that have not been influenced by external forces relating to the development process, such as, engineering, platting, or infrastructure improvement. Any of the historical market data considered in this analysis had good physical utility for residential development. The primary legal consideration was that the sales used are zoned for low-density residential, no multifamily land sales have been included in the data set. Consideration has been given Co the anticipated market conditions that will likely impact residential development land values over the 2-year projection period. The first step in this analysis is a review and update of information on the interaction of four basic forces that influence human activity, which are outlined below. A discussion of the most pertinent value influencing factors is set forth as follows: 1. Social Trends -relate to population characteristics, education, and lifestyle options. These factors directly impact the demand for real estate. The Dublin submarket has historically demonstrated strong demand characteristics. 2. Economic Forces -primarily relate to the effective purchasing power of the general population, which is affected by employment and wage levels. Economic forces also affect demand, in that demand that is supported by purchasing power results in effective demand, which is the type of demand considered by the market. 3. Governmental Forces -These relate to the political and legal activities at all levels of government, which impact property development standards. 4. Environmental Forces -primarily consist of the desirability of the surrounding area, in this case the Dublin submarket, which has historically been desirable in the Columbus MSA. Dublin Park Land Value 2009/2010 Continental Appraisal Company Population Characteristics: The following is an updated analysis of the trend in the US Census population, from 1980 to i 2000. The parameters of the search area for the data included the corporate limits of the City of Dublin, as well as Franklin County, Delaware County and Union County. This data is presented as follows: City/County 1980 1990 2000 1980-2000 Percent Change Dublin 3,855 16,366 31,390 714.3% Franklin 869,132 961,437 1,068,978 22.9% Delaware 53,840 66,929 109,989 104.3% Union 29,536 31,969 40,909 38.5% The following chart considers this data, and projects both population estimates and the number of total households into the future. The following projections were obtained from a national demographic data service. Dublin 1990 2000 2008 Projection % Change % Change 2013 2000-2008 2008-2013 Total Population 16,366 31,390 37,538 41,346 19.6% 10.1% Total Households 5,866 11,209 13,604 15,131 21.4% 11.2% According to the projections made in the preceding summary chart, the subject submarket has demonstrated a historical trend of growth in both population and households. Although the population growth trend has slowed over the years, it is anticipated to remain steady. Growth in population is a primary demand generator for housing. Therefore, based on the historical and projected growth in population, demand for residential development land is expected to remain steady in to the foreseeable future, and is anticipated to follow the general real estate cycle that is established in the overall central Ohio market. It is noted here that as of the effective date of the appraisal the residential housing market is currently soft, which has had an adverse affect on residential housing values and demand for development land. This is discussed further in the following section titled Market Condition Analysis. The demand for real estate is also affected by the effective purchasing power of the population. For this reason, reviews of the labor force and income characteristics were made. The City of Dublin's unemployment rate is presented on an annual basis in the table provided on the right, for 2005 through March 2009. The table shows that the unemployment rate remained stable from 2005 through 2007. In 2008, the unemployment rate began to increase, which is commensurate with the onset of the current economic downturn/recession. The Unemployment Rate Year Dublin State of Ohio United States 2009-Mar. 5.3% 10.1% 9.1% 2009-Feb. 5.2% 10.2% 9.0% 2009-Jan. 5.0% 9.8% 8.5% 2008 4.0% 6.5% 5.8% 2007 3.5% 5.6% 4.7% 2006 3.6% 5.4% 4.7% 2005 3.7% 5.9% 5.2% Dublin Park Land Value 2009/2010 5 i ~ Continental Appraisal Company Employment data summarized on the previous page demonstrates a historical trend of strong economic conditions in the City of Dublin, when compared to the State of Ohio and the United States in light of the current economic crisis that has affected the entire nation. In addition to employment statistics, another factor that influences the value of real estate in a particular market is the ability to pay by the market participants. For this reason, it was necessary to review Household Income levels. The Average Household and Median Income for the population in the City of Dublin was summarized and reviewed. The summarized data is presented as follows: The Average Household and Per Capita Income -City of Dublin HH Income 1990 Census 2000 Census 20081?ro'ection 1990 to 2000 Annual Rate $0 - $15,000 213 3.6% 470 4.2% 379 2.8% 8.24% $15,000 - $24,999 330 5.6% 532 4.7% 407 3.0% 4.89% $25,000 - $34,999 451 7.7% 528 4.7% 552 4.1% 1.59% $35,000 - $49,999 841 14.3% 958 8.5% 860 6.3% 1.31% $50,000 - $74,999 1,462 24.9% 1,877 16.7% 1,607 11.8% 2.53% $75,000 - $99,999 1,058 18% 1,802 16.0% 1,942 14.3% 5.47% $100,000 - $149,999 894 15.2% 2,666 23.7% 3,281 24.1% 11.55% $150,000+ 632 10.7% 2,399 21.4% 4,576 33.6% 14.27% AverageHHlncome $87,899 $114,965 $154,930 2.72% Median HHlncome $68,236 $90,701 $121,663 2.89% The average Household and Median Household Income for• the City of Dublin was summarized and reviewed. According to the summarized data, the average household income in the City of Dublin rose 35.8% from 2000 to 2008, which is in conjunction with a projected increase in the median household income. This trend is anticipated to stagnate in the foreseeable future, considering the current depressed condition of the overall national and local economy. In conclusion, our review of the demographic data, with regard to the positive projected change in population that is set forth in the preceding section of this report, is contradicted by the labor market statistics, and the overall current economic downturn. Although the population projection for 2008 and 2013 indicate a sustained growth, based on the demographic data reviewed, these projections are not likely to be accurate in the near future. It is more likely that the population characteristics of the City of Dublin will remain relatively stable, until a recovery from the adverse current economic conditions occurs. The following section of this report addresses the current market and economic conditions that are affecting not only area demographics, but the subject real estate market as of the effective date of appraisal. Dublin Park Land Value 2009/2010 Continental Appraisal Company Market Condition Analysis The real estate market conditions in the City of Dublin have historically been strong. This has been demonstrated in the prior analysis made regarding the average unit price of raw residential development land in the City of Dublin, over the years. A review of the data presented in the prior reports dated December 2000, March 2003, February, and January 2007 was made, which demonstrated a consistent upward trend in unit land values, and began to stabilize in 2006-2007, which is consistent with the beginning of the housing market downturn. The suggested unit prices in each respective analysis are summarized as follows: • January 2007 Report - $41,500/Acre • February 2005 Report - $41,883/Acre • March 2003 Report - $39,107/Acre • December 2000 Report - $34,995/Acre The suggested unit prices in each respective analysis indicate a continued upward progression with some stabilization indicated in the January 2007 analysis. The following analysis indicates that the housing market locally, regionally, and nationally, began to decline in the first quarter of 2006. This trend has continued to the effective date of this report. National Market: In January, and into the first quarter of 2006, market conditions were in a transitional phase. Market indicators as of January 2006 indicated stable market conditions, whereby anticipated demand for future development was expected to mirro-• demand and development trends of recent years. The demand for single-family homes remained consistent through 2005. This is evidenced by the following chart produced by the National Association of Realtors. The chart on the right was presented in the January 2007 report. It has been included in this report because it clearly delineates the beginning of the housing market downturn as evidenced through an increased supply of homes on the market from September 2005 through August 2006. The capital letters below each bar represents each respective month over this 12-month period. The graph indicates that the supply of available homes remained consistent through January 2006. At this point in time, supply began to increase due to reduced demand for single-family housing. This upward trend begins in January 2006 and continues through August 2006. The increase in supply of existing homes corresponds directly with diminished demand. This increase in the supply of existing homes occurred through the spring and summer months, which are historically the period of a year that experiences the greatest demand. Therefore, this data set provides a direct indication that the market was experiencing a downturn in the first half of 2007. Dublin Park Land Value 2009/2010 Continental Appraisal Company national and regional basis. The index is derived from pending sales of existin ham. A sale is pending when the contract has been signed and the transaction has not closed. An index of 100 is equal to the average of contract activity during 2001 (first year examined). The appt•opriate column is under the subheading Midwest. Pe~rdi~rg Hor~te Sales hider (PHSI) Year United States *Jortheast i Midwest South West Uttited States Northea;t Midwest South West 2006 111.9 93.6 101.5 127.0 109.6 ' ' ' ' ' 2007 963 86.8 89.9 107.9 92.4 ' 2008 87.1 74.1 80.8 39.8 99.6 • ' ' Seasonally Ad}uxted Anuual Rate NotSeasoually AdJ usted 2008 \Sar 83.7 78.4 76.0 86.5 91.6 93.5 97.1 84.9 94.0 98.9 2008 Apr 87.3 78.3 81.4 89.8 97.7 103.2 98.5 100.8 108.7 100.7 2008 ivfay 85.0 75.8 80.0 85.8 96.2 100.1 98.3 93.4 101.7 106.0 2008 Jttn 88.7 76.7 80.6 92.5 100.6 106.5 97.5 97.3 113.1 112.8 2008 htt 87.1 75.3 81.5 92.6 93.8 95.4 79.3 87.5 101.7 100.2 2008 Aug 92.4 76.2 84d 96.6 106.7 99A 80.1 88.9 102.4 120.9 2008 Sept 90.9 71.5 83.4 84.3 116.3 85.7 63.7 81.8 82.4 111.9 2008 Oct 86.6 69.5 80.3 87.7 104.7 84.3 66.5 76.0 82.5 109.6 2008 ,Iov 83.1 64.8 75.1 85.2 102.6 b5.7 43.6 57.1 68.3 87.8 2008 Dec 87.1 66.2 80.0 93.3 101.1 57.9 37.8 51.5 65.1 69.1 2009 !an 80.4 57.8 72.6 82.2 103.6 68.4 44.1 59.5 67.7 97.6 2009 Fehr 52.0 63,1 83.1 85.9 89.6 75.3 57.6 79.4 763 83.3 2009 htarp 84.6 59.5 82.3 93.2 93.1 96.5 77.7 95.4 102.4 103.2 es. last month: 3.236 5.741 -1,041 8.591 J991 :3.3eib 34999 :0.201 34.291 23991 ss. hstcear. 1.19b -:4.191 841 7.791 1.7oi1 3.:oii -20.0!ti 1:.49 8.941 4.391 The preceding summary chart demonstrates the downward movement in the housing market from 2006 to March 2009. The data illustrates a decline and then stabilization of the interaction between buyers and sellers in the single-family residential real estate market. This data corresponds with the previously summarized data regarding the increase supply of homes on the market, which began in the first quarter of 2006. A review of the PHSI Pendingfdv»tesSaleslndex(PHSJ)•Annua! for the Midwest in the years 2003, 2004, and 2005 indicated that within this tithe period, the market peaked in 2004, with an average annual PHSI of 118.6. This is in contrast to the first quarter average for 2009 of 79.3. The graph on the right illustrates the softening of the residential housing market in the Midwest, as measured by the Pending Home Sales Index. In addition to a review of the supply of zoo3 ~o~ a'°5 zoos a'°' ao~ zoos existing homes on the market and pending sales, both of which are indicators of demand, it is also necessary to review new housing starts. An analysis of both the national and the local market is relevant in this report. National-US New Housing Starts: New home sales & housing starts are always leading indicators of economic recovery. The graph presented belo3v illustrates new housing starts on Dublin Park Land Value 2009/2010 Continental Appraisal Company a national basis, from January 1980 to January 2009. The trendline shows the impact that the economic cycle has on the demand for single-family residential development. The low points shown in the graph represent the recessions of 1981-82, 1990-91, and 2008-09. It is noted that as of 2008, new housing starts dipped below the levels of both the 1981-82 and 1990-91 recessions. Thus, new housing starts in 2008-09 were at the lowest point in 27 years. The lack of new housing starts is due to a reduction in demand for new homes, which translates into a reduction in demand for residential development land. Historical - U.S. New Housing Starts c N O 1 N N a1 C .y 0 3 as z 2500 - 2000 1500 1000 500 0 ' e~sslo~r ~E~ESSz~z~ R,EC~ES,SIQ O N CT7 ~ U7 (O f+ N O O N 0'] V ~!] CO f~ N m O N C7 V ~!7 (D I+ OJ O O pp Op pp CO CO OD N 0] CO OD O 01 ~ O 61 ~ 65 O O"7 O O O O O O O O O O O i i i i i i i i t i i i i i i i i i i i i i C C C C C C C C C C C C C C C C C C iC C C C C C C C C C C C C (6 (0 (6 (6 lU f6 f0 f6 (6 l4 (0 lU (6 (0 (0 f0 (6 lV l0 f0 (6 l0 l0 (0 (6 (0 f0 fa l0 (6 (6 Date The preceding chart is presented on an annual basis. The data presented in the graphs on the following page are on a monthly basis. The graph on the left presented below titled Last 6 Months: Monthly Change covers the time period from October 2008 to March 2009. It illustrates that month after month, new housing starts continued to decline, except for an up tick in February 2009. The graph titled Past 16 months: Level illustrates the downward trend in housing starts from September 2007 to March 2009. This bar graph illustrates the sustained decrease in new housing starts during this time period. It was reported by the National flssociation of Realtors that new housing starts in Dublin Park Land Value 2009/2010 Continental Appraisal Company January 2009 fell to their lowest production levels since World War II and that they have fallen a total 79% in the last three years. New Housing Starts -National Last 6 Months: Monthly Change s.D% 4.0% 2.D% 0.0°k -2.0°k -4.0% -6.0% $.D% -10.D°!o -12.0% 1,100 1,000 900 8D0 700 600 500 S-r ---• Past 16 months: Level The graphs presented below illustrate residential mortgage applications, on a national basis, over the past twelve months and in recent weeks. It is noted that in Apri12008 through August 2008, applications were generally on a consistent decline, before a temporary spike in September 2008. A lack of demand is demonstrated by this data from October-2008 through February-2009. Within this time period, residential applications have been depressed. Although residential mortgage applications have held fairly steady since February 13, 2009, it was reported on March 27, 2009, that applications were down 30.8% from the previous year. Residential Mortgage Applications Source: NAR /Mortgage Bankers Association Recent Weeks 350 300 250 200 150 100 50 0 2113 2120 2127 3/6 3113 3120 3127 413 4110 Past 12 Months Aar-2008 J un-2D08 Aua-2008 Oct-2008 Dec-2008 Feb-2009 Conclusion: The data presented in the preceding section, regarding the national housing market, indicates that a downward trend in the national housing market began in the first quarter of 2006, and has continued to the current date of this report. The current recession is reported to have officially begun in the first quarter of 2008. This economic downturn is directly linked to the financial crisis which was created by reckless lending practices on home mortgages, which has led to record foreclosures. The foreclosed/bank owned properties enter the supply side of the single-family residential market, at a distressed level of pricing. This 500.00 450.00 400.00 350.00 300.00 Dublin Park Land Value 2009/2010 1 U Oct•2008 Nnv4008 Dec-2008 Jan-2009 feb-2009 hlar•2009 ConlincnlalAppraisal Company affords the prospective residential home buyer an alternative choice that did not exist prior to the econotnic downturn. Ultimately, this condition has resulted in a lack of new construction, and the demand for residential developtneut land, on a national basis. Dublin Submarket: The Dublin market is delineated as the area located within corporate limits for the City of Dublin. This area is primarily situated in Franklin County, however in recent years; it has expanded into Delaware and Union Counties. In prior reports, the submatket has been broken down into five zones, which include: Northeast zone, Northwest zone, Central zone, and Southeast and Southwest zones. The Northeast zone is the portion of Dublin located east of the Scioto River, west of Sawmill Road, and north of I-270. It includes all of the incorporated area of the City of Dublin within this delineated area. Residential development in this zone has been limited in recent years. It is not likely that this zone will be an area of significant potential growth in the foreseeable future. In the market investigation no suitable sales were found in the northeast zone. The Northwest zone is located west of the Scioto River, north and west of I-270, and north and east of Route 33. Historically, this area has been the most active area for residential development of the five areas in the Dublin market. It continues to be the largest zone and has historically been an active residential development area within the corporate limits of Dublin. From a residential development standpoint, the Northwest zone of Dublin, situated in Franklin County, is maturing. New residential development in this portion of the district has been dominated by production builders. It is noted that some of the most recent development has taken place in the Avery/Brand Road at•ea, whereby much of the gt•ound was acquired/assembled several years ago. The City of Dublin has expanded into both Delaware County and Union County. These are the areas within the northwest zone that has the greatest potential for new growth and development. The established trend of growth, in the northwest zone, is expected to continue, when the market recovers. [n the market investigation no suitable sales were found in the northwest zone. The Central zone of Dublin is bound by the Scioto River on the east, by Hayden Run Road on the south and by I-270 on the west and north. This area continues to be an area of more moderate residential growth, with the most recent activity-faking place in the vicinity of Dublin and Tuttle Roads. The majority of residential land in this area is developed. In the market investigation no suitable sales were found in the central district. Due to the predominant property use in this district, and lack of market data, it historically has exerted no influence on the average unit value estimate in this analysis. This continues to be true in this analysis. The Southeast zone of Dublin's corporate area is bordered on the west by the Scioto River, on the north by I-270, and on the east by Sawmill Road. Historically, there has been a limited amount of single-family residential development in this zone. 'Therefore, this zone has had limited influence on the estimated average unit price per acre for residential development land. No land sales were found during the market investigation in this section of the city. The Southwest zone is bordered on the north by Route 33 and on the east by I-270. With the development of the Tuttle Road/I-270 interchange and the new l;merald Parkway, in recent Dublin Park Land Value 2009/2010 Continental Appraisal Company years, this sector has become an active growth area in Dublin. The Southwest cone is anticipated to continue as a growth area in the City of Dublin, when the market recovers. 'Phis area has ample development land available. However, no sales were fotmd in the market investigation for the years 2006, 2007, 2008, and 2009, which is attributed to the contraction in the overall housing market. A part of this analysis included the review of Guilding permits issued and residential lots sold, in the city of Dublin. This is a clear indicator of demand and market activity. The following graphs illustrates that a downward trend in both residential building permit activity and residential lot sale activity was prevalent between 2004 and 2005. This downward trend has continued through 2008, and into the first qual•ter of 2009, with two permits issued and four lots sold between January and March. ResiJential anilding Permits Issacd Dublin -Frankl in Comity J~ sn '~ rm _ - - ._- _ -___-_-_- -_ -__ _ ~ ~ uo - ----_._-.__ .__.__ zoo --_ . ___.__ ...-_____ _._..__._... __ ....__._. E ¢o `J a wo 30 0 ~~ O~ O~ O~ O^ O~ O~ lO ~0 ~O ~O tiO tiO ~O ~O tiO Year Total RCSiJmrtinl Lots SoIU Dublin -Franklin Connly nn ~~n v c ti Asa _____... ..__.__..__ ___..___. .__.._.... p Ilq a so 0 ~OO~ f3 I_ ~OO~ ~OO~ VOOV ~OO^ ~OO~ ~OO~ ~O~O Year The preceding graphs clearly illustrate a sustained lack of demand for new residential construction from 2004 to 2009. Perhaps it was not surprising, but the graph illustrating the trend in residential lot sales with in the city limit of Dublin closely parallels the trend line for the number of building permits issued. Our most recent market investigation resulted in uo new market transactions of raw residential development acreage that met the parameters established for this analysis. This is attributed to the sustained downturn in the housing market that has continued from the Jamlary 2007 report to the current date. Although a review of the prior January 2007 report was made, the most significant factor affecting the average unit price in the Dublin subinarket is the weak housing market. Due to the lack of demand for housing units, there is currently no demand for residential development land, with no indication that this will significantly change during the 2009/2010 period. The housing market continues in a distressed state, which is anticipated to continue into the foreseeable future. For this reason, it is not reasonable to assume that the unit price per acre of residential development land in the city of Dublin would continue to increase, or be stagnated, as it has in recent years. The demand for vacant residential development land is virtually non-existent due to the current market conditions. It the past two reports, dated February 2005 and January 2007, the estimated average unit price per acre for low density single-family development land in Dublin, for the two-year time Dublin Park Land Value 2009/2010 12 Continental Appraisal Company periods of (2005 & 2006) and (2007 & 2008), was $41,883 per acre and $41,500 per acre, respectively. The chart below includes the assembled data of single-family residential development land used in prior reports dating back to December 2000. The sales data dates back approximately 10-years and includes only properties that meet the parameters established for this analysis. It was noted Chat the most recent sale is directly in line with the forecasted trend line established by the historical data, on a straight line basis. A trend line analysis, forecasts anticipated market conditions into the foreseeable future, on a straight-line basis. This methodology does not recognize the ups and downs that are generally inherent in the real estate market, or business cycle that directly impacts the demand for real estate development. In this analysis a forecasted trend line on a straight line basis provides an erroneous result considering the recent down cycle in the housing market. $70 000 . r $60 000 $50 000 $40 000 i ' ~, u ~ ~ ~ ~~ ~ w $30 000 ` , $20 000 $10 000 ' $ - ~~ ps ,p^ p3 \9e ~0 oo p0 pti oa ~~ ps `00 Ah o p~ ~ c c J ~ ~` Q ` ~ Q Qe O eQ a ~` ~a ~° 9e )J ~ c ° ~ ~0 ~° ya e O O Q 5 ~ P x Date A market investigation was made for recent land sales that occurred subsequent to the January 2007 Report that met the criteria established in the city ordnance. After a thorough search of the subject market area, no sales data were found that met the parameters necessary for this analysis. The lack of market data is attributed to the previously discussed downturn in the housing market, which caused local developers to put projects that have been in the planning stages on hold, many of which have been withdrawn with no plans to proceed with the project anytime soon. Further, the existing home market, in conjunction with the new constructiozi already in the pipeline would require healthy absot•ption in the recovery phase before sufficient demand is generated for new development and the acquisition of new residential development land. Dublin Park Land Value 2009/2010 13 CovrlinentalAp~Yaisal Company Summary -The local housing market is generally paralleling the national trends set forth in the previous discussion. The housing market has been in a state of contraction since 2006. Considering the market indicators reviewed, iC appears that the residential market is still in a period of contraction. The decrease in demand for new housing starts translates into a reduced demand for residential development land, which in turn translates into a lack of sales transactions. It is a fact that many of the larger residential developers have scrapped several housing projects that were publicly announced by not exercising options to purchase the land and/or having their projects tabled indefinitely at the planning commissions. This market condition is anticipated to continue into the foreseeable future. [n conclusion, there is no indication that a recovery of the current soft housing market conditions will occur in the foreseeable future. The uncertainty of the current credit crisis will continue to have an adverse impact on the residential housing market and development land. AVERAGE UNIT PRICE ANALYSIS Based on oitr market research, the residential housing market has been in a state of decline since the approximate midpoint of 2006 to the current date. In the January 2007 report, it was indicated that the soft housing market was anticipated to have a stagnating affect on unit prices that would be paid for single-family residential development land. The sustained soft market conditions in the residential housing market, has continued to have a stagnating affect on unit prices. Due to the unanticipated duration of the downturn in the residential housing market, it is the opinion of the appraiser that a discounting of the unit price is warranted. In the preceding section of this report, a suggested unit price of $41,500/Acre, for the years 2007-2008, was indicated in the prior report. This suggested unit price reflected recognition of a softening in the single-family residential housing market, as of the first quarter of 2006. Our most recent market research indicates that the residential housing market continues on the downward slope, in this current real estate cycle. This has been evidenced by the data previously presented in this report, and the lack of recent market transactions. The lack of transactions that indicates a reduced demand for new single-family residential development, which adversely impacts the amount a residential developer would be willing to pay for development land. A perspective buyer of raw development land must take into consideration the anticipated duration of the current downturn in the residential real estate market. In addition, the net value of Che carry cost over the holding period, in conjunction with a discount of value to reflect the opportunity cost of capital. These items are identified as follows: - Carry Cost is the cost necessary to hold the property until the market dictates its future development. Considering the fact that the subject of this analysis is raw development land, the only carry cost is annual real estate taxes. Based on our prior analysis, we anticipate a holding period of three to five years. Recognizing that this analysis is applicable to an overall average unit price, and not to a specific property, a percentage adjustment for the anticipated annual real estate tax carry cost should be considered. Further recognition has been given to the fact that it is not likely that a developer would acquire and hold future development land without it being enrolled in the CAUV program. This significantly reduces the carry cost to a nominal amount. For purpose of this analysis, no deduction for carry cost is made. Dublin Park Land Value 2009/2010 14 i i Continental Appraisal Company - Opaortunity Cost of Capital/Risk: is defined as the cost associated with investing in residential development land, as opposed to an alternative investment vehicle, of similar risk. Consideration was given to low risk "safe" investment vehicles such as US Treasury Bonds and Bank CD's. As of the date of this analysis, these investment vehicles were yielding returns in the range of 1.09% to 2.32%. In addition, higher risk investtnents such as itnproved real estate that is well located within the market, was also considered on a return-on capital/return-of capital basis that produced a range between 7.00% and 9.00%. Based on the preceding discussion, a discount rate of 8.00% is concluded, recognizing that a property purchased today would be subjected to delayed development, and direct competition from the existing development land cwrently being held by developers. Based on the 8.00% discount rate and a three year holding period, the discounted unit price of $41,500/Acre is calculated as follows: "As Is" Market Value Estimate (2007 Report) $41,500/Acre Discount Factor: X 0.79383 "As Is" Market Value: (R) $33,000/Acre The indicated market value of $33,000/Acre reflects the necessary discount to attract investment capital in single-family residential development land, as of the date of this report. The base unit value of $41,500/Acre was appropriate as of the January 2007 report, and recognizes the soft market conditions that were considered stagnate, as evidenced in the market, at that time. Subsequent to that report, the residential real estate market continued on a downward cycle, which was compounded by the national Financial crisis and recession that began in early 2008. Due to the current market conditions, the demand for residential development land is virtually non-existent. This was evidenced by the lack of recent land safe transactions that met the parameters set forth in this report, not only for the City of Dublin, but both regionally and nationally. Typically, an estimate of an average unit price per acre that is applicable for the City of Dublin has been the result of the assemblage and analysis of current market data (recent land sales). However, in the recent past, current and anticipated future economic environment this methodology is not possible due to the lack of market activity. CONCLUSION The analysis set forth in this report indicates that the single-family residential housing market has remained in a state of contraction, subsequent to the prior January 2007 Report. Market conditions in the housing market have depressed home value, either through direct competition with distressed properties placed on the market, or simply a tack of demand due to the credit crunch experienced in the financial market. The January 2007 comparative analysis provided an average unit price of $41,731 per acre. The trend line regression analysis indicated that the overall average for residential development land in Dublin continued to increase through 2007. However, the straight line forecast based on historical data does not reflect the downturn that began in the residential Dublin Park Land Value 2009/2010 15 ContznentalAppraisal Cot~ipany housing market in the first quarter of 2006, and continues to the current date. For this reason, it is not a reliable indicator to project the appropriate unit price per acre for the Dublin market. Based on the preceding market analysis, and recognizing that the suggested average unit price per acre estimate is a prospective unit price that is to cover a two year tithe projection, the appraiser concludes to a suggested price per acre for raw development land within the City of Dublin, fot• the subsequent two year period, as required under Section 1109.02 of the Ordinance of the City of Dublin, of: $35,000 per acre. This average unit value projection considers all the factors previously discussed, and anticipates some improvement in market conditions over the two year period. SUGGESTED PRICE PER ACRE THII2TY-FIVE THOUSAND (35,000) DOLLARS PER ACRE Dublin Park Land Value 2009/2010 ContinentalAppraisal Company PROFESSIONAL QUALIFICATIONS OF JOHN M. GARVIN, MAI Independent fee appraiser with Continental Appraisal Company. Scope of experience includes appraisals, feasibility analysis and consulting for financing, estates, and due diligence support. Valuation and consulting services performed in litigation support for ad valorem tax and condemnation cases. Clients served include law firms, accountants, lenders, utility companies, raih~oad companies, private clients and public agencies. Education: • Bachelor of Arts Degree, Otterbein College, 1984. • Numerous real estate related courses and seminars sponsored by the Appraisal Institute, Columbus Board of Realtors, accredited universities, and others. • Currently certified by the Appraisal Institutes voluntary program of continuing education for its designated members. Professional Affiliations: • Member, Appraisal Institute, MAI Designation. • Member, Board of Directors, Cardinal Chapter, Appraisal Institute. • MAI Admissions Chair, Cardinal Chapter, Appraisal Institute • 2008 President, Cardinal Chapter, Appraisal Institute • 2006/2007 Vice President, Cardinal Chapter, Appraisal Institute • 2005/2006 Secretary, Cardinal Chapter, Appraisal Institute • Member of the Columbus Board of Realtors and National Association of Realtors. • Licensed Real Estate Agent, State of Ohio. • State of Ohio, Certified Real Estate Appraiser, General Appraiser Classification, and Certi&cation No. 381572. Expert Testimony: • Qualified as an expert valuation witness before the Ohio State Board of Tax Appeals, and Local Boards of Tax Revision. Experience: • Engaged in appraisal work since 1979. First employed as a part-time research assistant in the valuation of the bankrupt estates conveyed to Conrail. • Fee appraiser since September 1984. • Former Instructor, Real Estate Appraisal. • Valuation experience covers a wide range of property types, including: - Residential - Automobile Dealerships - Apartments - Manufacturing Facilities - Senior Housing - Warehouses - Development Land - Special Purpose Property - Agricultural Property - Railroad Surplus Property - Office Buildings - Right-of--way /Easements - Shopping Centers - Proposed developments - Commercial Buildings - Corridor Valuations Dublin Park Land Value 2009/2010 17 ContinentalAppraisa( Company PROFESSIONAL QUALIFICATIONS OF Nicholas Wax • Staff appraiser assistant with Continental Appraisal Company. Work scope includes appraisals, feasibility studies, and consulting services for lending institutions, private and governmental clients throughout Ohio. PROFESSIONAL AFFILIATIONS • Ohio Department of Commerce, Division of Real Estate, Registered Real Estate Appraiser Assistant- Certification 2008000404 • Associate Member-AppraisalInstitute FORMAL EDUCATION • Bachelor of Arts Degree, Majors in Real Estate and Urban Analysis and Marketing, The Ohio State University, 2006 PROFESSIONAL REAL EDUCATION • Numerous courses within the Real Estate program at The Ohio State University • Appraisal Institute Course IOIGR, Basic Appraisal Procedures (11/2006) • AppraisallnstituteCourset4]ON,IS-Hour NationalUSPAP(Il/2006) • Hondros College, Fair Housing, (1/2008) • Continuing attendance at real estate seminars and workshops EXPERIENCE • Staff Assistant with The Hammel Valuation Group, South Pasadena, CA, from September of 2006 to July of 2007 • Assistant Appraiser -Continental Appraisal Company from October 2007 -Present TYPES OF PROPERTIES APPRAISED • Office Buildings • Industrial Facilities • Shopping Centers • Potential Development Land • Self-Storage Facilities • Special Use Properties • Freestanding Retail Stores • Strip Retail Centers • Restaurants Dublin Park Land Value 2009/2010 18 Continental APPRAISER DISCLOSURE STATEMENT In compliance with Ohio Revised Code Section 4763.12 (C) 1. Name of Appraiser: 2. Class of Certification/Licensure: Certification/Licensure Number 3. Scope: 4. Service Provided By: 5. Signature of person preparing And reporting the appraisal: John M. Garvin X Certify General Certify Residential Licensed Residential Appraiser Assistant 381572 X Is within the scope of my Certification or License. Is not within the scope of my Certification or License. This form must be included in conjunction with all appraisal assignments or specialized services performed by a state-certified or state-licensed real estate appraiser. Dublin Park Land Value 2009/2010 19 X Disinterested & Unbiased Third Party Interested & Biased Third Party Interested Third party on Contingent Fee Basis