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Ordinance 55-11RECORD OF ORDINANCES ro,m No, 0043_ Ordinance No. 55 -11 Passed 20 AN ORDINANCE ACCEPTING THE UPDATED ESTIMATED AVERAGE PER ACRE VALUE OF LAND FOR PARK FEES IN LIEU OF LAND DEDICATION 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 Horner Appraisal Group, Inc. has completed their update of raw land transactions within the Dublin area and is recommending an average suggested price per acre consistent with the current value. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, 0 of the elected members concurring that: Section 1. The report of the Horner Appraisal Group, Inc. is hereby accepted, estimating per acre value for raw land at $40,000 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. 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. This ordinance shall be effective upon the earliest date permitted by law. Passed this 10 day of A!TQbet"� , 2011. Mayor - re iding Officer ATTEST: Clerk of Council Office of the City Manager 5200 Emerald Parkway • Dublin, OH 43017 -1090 CITY OF DUBLIN- Phone: 614 - 410 -4400 • Fax: 614 -410 -4490 Memo To: Members of Dublin City Council From: Marshal. Grigsby, City Manager�� Date: September 22, 2011 Initiated By: Fred Hahn, Director of Parks & Open Space Re: Ordinance 55 -11 - Updating Parkland Fees for 2011 -2012 Background Attached is the City of Dublin Parkland Fee report from Homer Appraisal Group, Inc., which details the recommended Parkland fee for the years 2011 and 2012. The establishment of this fee is detailed under Section 152.086, Part C of the Subdivision Regulations for the City of Dublin, which stipulates that: "Estimate 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 recent real estate transactions and provide Council with a suggested price per acre for raw land within the City." The suggested raw land value found in this report is $40,000 per acre. The value for 2009 and 2010 was $35,000 per acre. This value, once approved, will be used by the City when it is determined that money in lieu of land for parkland donation is in the best interest of the City. The summary of the bases for the land values is in the attached correspondence. A complete 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, and is recommending adoption of Ordinance 55 -11 at the second reading/public hearing on October 10, 2011. Chy of .Dublin .Parkland Fee Suggested Average Unit Price /AC Single - Family Residential Development Land Park Fees in Lieu of Land Donation Two -Year Period (2011/2012) Prepared For: Mr. Fred Haughn Director of Grounds & Facilities City of Dublin 6555 Shier Rings Road Dublin, Ohio 43016 As Of: September 1, 2011 Prepared By: James R. Horner, MAI Samuel R. Horner Horner Appraisal Group, Inc. 22 East Gay Street, Suite 300 Columbus, Ohio 43215 HORNER APPRAISAL GROUP, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 22 EAST GAY STREET, SUITE 300 COLUMBUS, OHIO 43215 JAMES R. HORNER, MAI SAMUEL R. HORNER, APPRAISER September 6, 2011 Mr. Fred Haughn Director of Grounds & Facilities City of Dublin 6555 Shier Rings Road Dublin, Ohio 43016 Re: Single- Family Development Land Study Suggested Unit Price /AC of Raw Development Land Park Fees in Lieu of Land Dedication Time Period: 2011 & 2012 Dear Mr. Haughn: TEL. 614/246 -8383 FAX 614/246 -8384 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 (2011- 2012). This estimate considered 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 152.086 Part C of the Subdivision Regulations, at the time of the 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. Unfortunately, there have been few transactions that fall into this category which has taken place since the onset of the real estate recession. Real estate values "peaked" in 2006/2007 and by October 2007, values began a significant "slide" coinciding with the all -time "high" of the Dow Jones Industrial Index which closed at 14,164. By July of 2008, the Dow was more than 20% below its peak and clearly, in the initial stage - of the "bear market" which was impacted by the demise of Lehman Brothers in August of 2008 and of the subsequent near collapse of the banking system in October of 2008. The recession cancelled the development of several proposed subdivisions within Union County including the approximate 1K AC tract that had been assembled and proposed development by Forest City w Enterprises. This was to have included over (2,000) single- family homes. Jerome Village, a 1.35K AC development, proposed for (2,200) units remains as a potential subdivision as a real estate development arm of Nationwide Insurance has "partnered -up" with the original developer. Even so, Jerome Village remains undeveloped and will no doubt be "held" for a considerable period of time awaiting change in demand characteristics. The "best" method for estimating value would be based upon the economic principal of substitution which states, "when several similar or commensurate commodities, goods or services are available, the one with the lowest price will attract the greatest demand and the widest distribution." Financing "dried -up ". 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 Page 2 development land typically transfers is established through the interactions of market participants (buyers /sellers). Many of the major local regional and national home builders have left this market. There remain only a few participants, including The Edwards Land Company who developed Tartan Ridge and Ballantrae Subdivisions. There remains a significant "inventory" of unsold lots within these and well as additional subdivisions. We have undertaken a Survey in regards to the impact of the recession upon residential and "bulk lot sales" which have occurred throughout the Central Ohio Area. This study indicates Bulk Lot Sale Discounts ranging from 35% to 65% while raw acreage for vacant land falls into a similar discount range from 33% to 70 %. The value of residential acreage in the pre -2007 era would have been at or near $60K/AC. In our opinion, a discount of 35% is considered warranted based upon current market conditions. As a result of our appraisal and analysis, it is our recommendation that the average price per acre of raw development land as of the Retrospective Date of January 1, 2011 through the Future or Prospective Valuation Date of December 31, 2012, is: FORTY THOUSAND DOLLARS PER ACRE ($40,000 /AC) The unit value estimated 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 parkland property and that out 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. R4es. submitted, rner AI C on 380744 Samuel R. Horner, Appraiser GA Certification #430914 JRH/mm CERTIFICATE OF APPRAISAL I certify that, to the best of my 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 is my personal unbiased professional analyses, opinions and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My 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. 7. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. I have made a personal inspection of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the persons signing this certification. 11. As of the date if this report, I, James R. Horner, have not completed the requirements under the voluntary continuing education program of the Appraisal Institute for the MAI designation. Property: Suggested Unit Price /Acre of Single - Family Development Land in Lieu of Donation — City of Dublin Suggested Unit Price: $40,000 /AC As Of: September 1, 2011 HORNEWAPPRAISAL GWUP, INC. Gs A. Homer, AV M Certification #380744 September 6, 2011 Date CERTIFICATE OF APPRAISAL I certify that, to the best of my 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 is my personal unbiased professional analyses, opinions and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My 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. 7. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. I have made a personal inspection of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the persons signing this certification. 11. As of the date of this report, I have completed the requirements of the continuing education program of the Appraisal Institute. Property: Suggested Unit Price /Acre of Single - Family Development Land in Lieu of Donation — City of Dublin Suggested Unit Price: $40,000 /AC As Of: September 1, 2011 HORNER APPRAISA&ROUP, INC. C� September 6, 2011 Samuel R. orner, Apprais r Date GA Certification #430914 Eq PREFACE CO\ERPAGE. TRANSMITTAL LETTER CERTIFICATION LIMITING CONDITIONS DEFINITION OF MARKET VALUE Q�N-1 PURPOSE INTENDED USE & SCOPE OF ANALYSIS ................................................... l MARKET ANALYSIS & CONCIJ]SI{]NS........'....................'''''''''''''''^'''''''''''''`'''''`^ BRIEF REGIONAL DISCUSSION ............................,''''''''''^'''''''`'''''''`'''''''''''^`''''''^^ AREA AND NEIGHBORHOOD DISCUSSION.. . . . . . . . . . .. .. '. . .. . ..' ' ' ' '' ' '' ' ' ' ' ' ' ' ' ' ' '' ' ' ' ' ^' ' ' ' ' ' ' ' ' ' ''/+ SUMMARY OF HOUSING MARKET REPORT - I�TJl�I.DN.....' .'' ... ... ... . .,... ...'.. ... ... .. ....... I SUMMARY OF SUBDIVISION SALES ..................................................................... l2 ANALYSIS OF MARKET DATA .............................................................................. l3 BULK LOT DISCOUNTS .............................................................. 15 ADDENDUM QUALIFICATIONS OF APPRAISERS APPRAISER DISCLOSURE STATEMENTS 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 appraiser for matters which 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 delinquencies in the payment of general taxes or special assessments exist, and as though free of indebtedness. Possession of this report, or any copy thereof, does not carry with it the right of publication, nor may the same be used for any purpose by any but the applicant without the previous written consent of the appraiser or the applicant, and, in any event, only in its entirety. The appraiser herein, by reason of employment to make this appraisal, agrees to give testimony and/or attend in court or any other governmental hearing with reference to the property in question, provided sufficient notice shall be given to him. The client's attorney shall have the right to determine what is considered sufficient note, subject to approval by the appraiser. The appraiser herein has no present or future contemplated interest in the property appraised. Employment of James R. Horner and /or Samuel R. Horner to make the appraisal hereto attached is in no manner contingent upon the value reported. The values for land and improvements as contained in the written report are constituent parts of the total value reported, 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. The current purchasing power of the dollar is the basis for the value reported. Neither all nor any part of the contents of this report, or copy thereof, shall be used for any purpose by anyone but the client or its assigns without previous written consent of the appraiser and /or of the client or its assigns; nor shall it be conveyed by any including the client to the public through advertising, public relations, news, sales or other media, without the written consent and approval of the author, particularly as to the valuation conclusions, the identity of the appraiser, or a firm with which he is connected, or any reference to any professional society or institute of any initialed designations conferred upon the appraiser. De inition of Market Value Market Value is defined as follows: "The most probable price (amount), in terms of money, 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, knowledgeably and assuming the price is not affected by undue stimulus." Implicit in this definition is the consummation of a sale at a specified date and passing of title from seller to buyer, under conditions whereby: 1. Buyer and Seller are typically motivated. 2. Both parties are well informed or well advised and acting in what they consider their own best interest. 3. A reasonable time is allowed for exposure in the open market. 4. Payment is made in cash or its equivalent. 5. Financing, if any, is on terms generally available in the community, at the specified date and typical for the property type in its locale. 6. The price represents a normal consideration for the property sold, unaffected by special financing amounts and/or terms, services, fees, costs of credit incurred in the transaction. Purpose, intended Use & Scone 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 situation in the City of Dublin. This estimate is to be effective for the two year period from the retrospective date of January 1, 2011 through December 31, 2012 as specified by City Ordinance. The intended use of this prospective average price per acre estimate is to calculate the value of the land donations setforth 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 forms the basis of this report, are outlined as follows: "Estimated Average Land Value of Land pen 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 area 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 Addendum. The scope of this assignment includes a review of the marketing 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 an 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. Horner Appraisal Group, Inc. P urpose, Intended Use & Scope of Analysis (Cont) 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 a two year period. 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 definition of Market Value. Market Analysis & Conclusions Historically, the scope of this assignment 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 setforth under Ordinance No. 1109.02(c)(6) (Park Fee). The general parameters established for land sale transactions considered in this analysis include: 1. Transfer of single family raw development land situated in the City of Dublin 2. Transfer of Fee Simple Estate 3. Transfer on cash equivalent basis 4. Arm's length, open market negotiated transactions 5. Sales data included should consist of properties that transferred subsequent to the onset of the Real Estate Recession 6 Studies involving the sale and resale of both bulk lots and acreage within Central Ohio 7. A consideration of the Housing Market Report as prepared by Robert Binns Co. and which has been consolidated to reflect the sales within the City of Dublin, within Franklin, Union and Delaware Counties As real estate does not exist in economic vacuum, we have included within the following section, a brief Regional, Area and Neighborhood Discussion. Brief Regional Discussion The Metropolitan Area of Columbus, Ohio has a population of approximately 1.8M, reflecting an increase of approximately 12.7% over the past decade. This compares very favorably to the overall increase within the State of Ohio at 1.6 %. Franklin County grew by approximately 8.5% while Delaware County had the highest growth rate in the state at 56.9% followed by Union County at 12.2 %. 43 counties in Ohio or almost half of the total counties lost population. Columbus is the economic and population center of the region and has a population of approximately of 800K, being Horner Appraisal Group, Inc. 2 Brie Reional Discussion (Cont.) One of the few large industrial manufacturers is Worthington Industries, a steel producing company, located within the northern section of Columbus, near Worthington, Ohio. The appraisers have within their file memorandum, a voluminous amount of information in regards to the Region and additional information can be made available to the client. As the report is being submitted as a Summary Report, we have only provided the "highlights" of the region's characteristics. Area and Neighborhood Discussion Dublin is within Franklin, Delaware and Union Counties and has a population of approximately 3 8,000. Dublin is the headquarters for a number of companies including Wendy's, Cardinal Health, Ashland Inc. and OCLC. Cardinal Health continues to expand their presence with a $50M four -story building containing more than 600,000 SF which will be able to accommodate 2,650 additional employees. Cardinal Health is a $90+ billion global company and is the largest company in Ohio by revenue. Many of the major employers within this area are within the corporation limits of Columbus and include Sterling Commerce and Qwest which are within the northwest quadrant of the Tuttle Crossing interchange with I -270. Major employers within Dublin include Nationwide Insurance and Verizon. The Dublin Methodist Hospital is along Hospital Drive which is a "loop" thoroughfare extending south off of Perimeter Drive and connecting to Avery - Muirfield Drive. This is a 325K SF medical center and was constructed to serve the anticipated future demand of "rooftops" within the expanding Dublin Area. Surrounding the hospital are many medical office buildings. Other subsidiaries of major hospitals within the Columbus Area are located to the east of Avery Road along Venture Drive, including Nationwide Children's Hospital, Mount Carmel, etc. There are (4) primary areas of commercial development within the northwest quadrant of the region including the Sawmill Road corridor which extends north from I -270 into Delaware County and progresses to the City of Upper Arlington at Henderson Road to the south. For the most part, this is a 6 -lane controlled access highway with its economic "hub" being the interchange with I -270. Nearly all of the land along Sawmill Road is developed. There is a predominance of automobile- related uses within the neighborhood, some of which are included on the following page. Horner Appraisal Group, Inc. 4 Area and Neighborhood Discussion (Cont) ® Germain Ford at the intersection of Sawmill and Billingsley Roads. ® Germain Lexus of Columbus on the south side of Dublin- Granville Road (SR 161) just west of the intersection of Sawmill Road. ® Byers Dublin Chevrolet at 6801 Village Parkway to the west of Sawmill Road. Byers Northwest Mazda /Subaru on the south side of Billingsley Road to the east of Sawmill Road and abutting 1 -270. ® Tobin Pontiac /Buick /GMC on the south side of Billingsley Road east of Sawmill Road and abutting 1- 270. ® Infiniti of Ohio within the southwest quadrant of 1 -270 and Sawmill Road. Hummer of Columbus located on the north side of Dublin - Granville Road (SR 161) between Sawmill Road and Riverside Drive being the former Honda dealership. Northwest Honda on west side of Sawmill Road north of Dublin- Granville Road (SR 161). • Germain Cadillac on the west side of Sawmill Road between Dublin- Granville Road (SR 161) and 1 -270. • Immke pre -owned dealership within the southeast quadrant of 1 -270 and Sawmill Road. • Tansky's Toyota located at the southeast quadrant of Sawmill Road and Dublin- Granville Road (SR 161). • "MAG" dealership facilities within the northeast quadrant of Avery Road and US 33 /SR 161 (Perimeter Drive) selling Ferrari, Jaguar, Land Rover, Lotus, Mazarati, Mini, Porsche, Range Rover, Rolls Royce, Saab, Volkswagen and BMW. Crown Jeep Eagle and Crown Mercedes on Perimeter Loop Road near the MAG facilities. ® CarMax Superstore on the north side of Farmers Drive within the southeast quadrant of 1 -270 and Sawmill Road. Dennis Hyundai dealership on the south side of Billingsley Road adjacent to the Tire Kingdom Store. Acura Dealership located at the northwest corner of Dale Drive and Dublin- Granville Road (SR 161). Within the northwest quadrant of the interchange of Sawmill Road and I -270 is; the popular Lifestyle Fitness Center and various neighborhood shopping centers, freestanding retail outlets, office buildings and condominium communities. Bridge Street, which extends east/west through Dublin, forms the hub of the Olde Dublin District at its intersection with High Street. This area has experienced gentrification with new structures that have an architectural design and quality that is compatible with the balance of the buildings, many of which are on the National Register. To the west of Olde Dublin is a neighborhood shopping center at the intersection of Frantz Road and several highway- oriented commercial facilities (hotels, restaurants, etc.). To the east of Olde Dublin, near the southeast quadrant of the intersection of SR 161 and Riverside Drive are the Shoppes at River Ridge which is anchored by the Montgomery Inn Restaurant. This new development has not yet achieved a level of stabilized occupancy. The northeast and northwest quadrants of the interchange of US 33 /SR 161 and Avery Road are developed with retail outlets which are oriented primarily towards local businesses, including the Horner Appraisal Group, Inc. 5 Area and Neighborhood Discussion (Font.) residents of nearby Muirfield and Tartan Fields. These retail centers, restaurants, banking facilities, etc. are also influenced by their proximity to Dublin Methodist Hospital and other healthcare facilities along Perimeter Drive /Post Road. Tuttle Crossing Mall is a regional mall located within the southeast quadrant of the interchange of Tuttle Crossing Boulevard and I -270. It is anchored by Macy's, JC Penney's, Sears, etc. Along the Tuttle Crossing Boulevard thoroughfare are primary commercial properties including restaurants, retail petroleum outlets, primary freestanding retail buildings, etc. Tuttle Crossing Mall is located within the City of Columbus and is bordered on the east by Frantz Road. The area to the north of Tuttle Crossing Mall is primarily within the City of Dublin; although, the northeast quadrant of this interchange is also within the City of Columbus and includes several large office complexes occupied by primary tenants such as Sterling Commerce, Qwest, etc. This area also includes a large apartment complex known as Britton Woods which straddles the Dublin/Columbus corporate line. Emerald Parkway as it extends south from Tuttle Crossing becomes Britton Parkway as it progresses to Hilliard. It continues north from Tuttle Crossing and extends over I -270 continuing to the Riverside Drive frontage. There is also a small section of Emerald Parkway that extends to the southwest off of Sawmill Road. The last section of the Emerald Parkway extension is expected to begin in 2012. Dublin is "poised" for significant growth and development as there is an anticipation that significant new housing units will be constructed to the west of the city within the area of Jerome Township, Union County. This includes the Jerome Village Project which is partially sponsored by Nationwide Insurance Company and is currently "underway" even though economic factors within Central Ohio are not conducive towards significant housing demands. Unresolved is the future of developments associated with the construction of the new interchange of US 33 with SR 161 /Post Road. It was announced in December 2009 that the 1.5K AC Central Ohio Innovation Park at the southwest quadrant of this interchange would not be built due to the lack of financing. Other significant commercial developments that were to have been developed initially by Duke Realty and subsequently by the Casto Organization have yet to be started because of the lack of construction on the interchange and the uncertainty of utility and zoning plans as there are unresolved issues between Dublin and Marysville, the County Seat for Union County. The northwest quadrant of the CMA has historically been one of the most promising and vibrant areas and it is anticipated that these trends will continue within the foreseeable future. The City of Dublin provides excellent city services including parks /recreation, police /fire protection, Horner Appraisal Group, Inc. 6 Area and Neighborhood Discussion (Coat.) f architectural integrity /land planning, roadway systems and other city services. As a supplement, the reader is referred to an Executive Summary of the population and demographics of the City of Dublin as provided by Nielsen on the following pages. The Dublin Residential Submarket can be categorized into (5) zones which are as follows: The northeast zone is the portion 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 zoned will be an area of significant potential growth in the foreseeable future. The northwest zone is located west of the Scioto River, north and west of I -270 and north and east of SR 33. Historically, this area has been the most active area for residential development of the (5) 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 Area, whereby much of the ground was acquired /assembled several years ago. The City of Dublin has expanded into both Delaware and Union Counties. 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. 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 bean area of more moderate residential growth, with the most recent activity taking place in the vicinity of Dublin and Tuttle Roads. The majority of residential land in this area is developed. 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. The southwest zone is bordered on the north by SR 33 and on the east by I -270. With the development of Tuttle RoadII -270 interchange and the new Emerald Parkway in recent years, this sector has become an active growth area in Dublin. The southwest zone is anticipated to continue as a growth area in the City of Dublin when the market recovers. This area has ample development land available. Horner Appraisal Group, Inc. 7 Executive Summary 2011 Place (see appendix for geographies), Total The population in this area is estimated to change from 31,392 to 38,792, resulting in a growth of 23.6% between 2000 and the current year. Over the next five years, the population is projected to grow by 8.8 %. The population in the United States is estimated to change from 281,421,906 to 310,650,750, resulting in a growth of 10.4% between 2000 and the current year. Over the next five years, the population is projected to grow by 4.0 %. The current year median age for this area is 34.5, while the average age is 34.8. Five years from now, the median age is projected to be 34.1. The current year median age for the United States is 37.0, while the average age is 37.8. Five years from now, the median age is projected to be 37.7. Of this area's current year estimated population: 86.4% are White Alone, 2.8% are Black or African Am. Alone, 0.1% are Am. Indian and Alaska Nat. Alone, 9.0% are Asian Alone, 0.0% are Nat. Hawaiian and Other Pacific Isl. Alone, 0.4% are Some Other Race, and 1.2% are Two or More Races. Of the United States's current year estimated population: 72.0% are White Alone, 12.4% are Black or African Am. Alone, 1.0% are Am. Indian and Alaska Nat. Alone, 4.5% are Asian Alone, 0.2% are Nat. Hawaiian and Other Pacific Isl. Alone, 6.9% are Some Other Race, and 3.1% are Two or More Races. This area's current estimated Hispanic or Latino population is 2.5 %, while the United States current estimated Hispanic or Latino population is 16.1 %. The number of households in this area is estimated to change from 11,209 to 14,189, resulting in an increase of 26.6% between 2000 and the current year. Over the next five years, the number of households is projected to increase by 8.6 %. The number of households in the United States is estimated to change from 105,480,101 to 116,862,390, resulting in an increase of 10.8% between 2000 and the current year. Over the next five years, the number of households is projected to increase by 4.0 %. The average household income is estimated to be $125,382 for the current year, while the average household income �o for the United States is estimated to be $67,529 for the same time frame. The average household income in this area is projected to change over the next five years, from $125,382 to $127,120. The average household income in the United States is projected to change over the next five years, from $67,529 to $69,479. The current year estimated per capita income for this area is $45,915, compared to an estimate of $25,728 for the United States as a whole. t 1 i C I SC I 1 Prepared On: Thurs Sep 01, 2011 Page 1 Of 4 Prepared By: . .. ' ` . ' ` . Nielsen Solution Center 1 800 866 6511 Prepared For: ® 2011 The Nielsen Company. All rights reserved. Horner Appraisal Group, Inc. 8 Executive Summary 2011 Place (see apuendix for geographies), Total For this area, 53.2% of the-population is estimated to be employed and age 16 and over for the current year. The employment status of this labor force is as follows: 0.1% are in the Armed Forces, 69.0% are employed civilians, 2.8% are unemployed civilians, and 28.1% are not in the labor force. For the United States, 47.2% of the population is estimated to be employed and age 16 and over for the current year. The employment status of this labor force is as follows: 0.5% are in the Armed Forces, 59.4% are employed civilians, 5.3% are unemployed civilians, and 34.8% are not in the labor force. For this area, 53.2% of the population is estimated to be employed and age 16 and over for the current year. The occupational classifications are as follows: 5.7% have occupation type blue collar, 85.8% are white collar, and 8.5% are Service & farm workers. For the United States, 47.2% of the population is estimated to be employed and age 16 and over for the current year. The occupational classifications are as follows: 21.5% have occupation type blue collar, 60.5% are white collar, and 18.0% are Service & farm workers. For the civilian employed population age 16 and over in this area, it is estimated that they are employed in the following occupational categories: 3.3% are in Architecture and Engineering, 2.1% are in Arts, Entertainment and Sports, 9.5% are in Business and Financial Operations, 5.6% are in Computers and Mathematics, 7.0% are in Education, Training and Libraries, 8.1% are in Healthcare Practioners and Technicians, 0.7% are in Healthcare Support, 1.4% are in Life, Physical and Social Sciences, 21.2% are in Management, 9.2% are in Office and Administrative Support. 0.7% are in Community and Social Services, 3.0% are in Food Preparation and Serving, 2.0% are in Legal Services, 1.6% are in Protective Services, 15.6% are in Sales and Related Services, 2.0% are in Personal Care Services. 1.1% are in Building and Grounds Maintenance, 1.5% are in Construction and Extraction, 0.2% are in Farming, Fishing and Forestry, 0.8% are in Maintenance and Repair, 1.8% are in Production, 1.6% are in Transportation and Moving. For the civilian employed population age 16 and over in the United States, it is estimated that they are employed in the following occupational categories: 1.9% are in Architecture and Engineering, 1.9% are in Arts, Entertainment and Sports, 4.4% are in Business and Financial Operations, 2.4% are in Computers and Mathematics, 5.9% are in Education, Training and Libraries, 5.2% are in Healthcare Practioners and Technicians, 2.3% are in Healthcare Support, 0.9% are in Life, Physical and Social Sciences, 9.7% are in Management, 14.1% are in Office and Administrative Support. 1.6% are in Community and Social Services, 5.5% are in Food Preparation and Serving, 1.2% are in Legal Services, 2.2% are in Protective Services, 11.3% are in Sales and Related Services, 3.4% are in Personal Care Services. 3.9% are in Building and Grounds Maintenance, 5.8% are in Construction and Extraction, 0.7% are in Farming, Fishing and Forestry, 3.4% are in Maintenance and Repair, 6.3% are in Production, 6.0% are in Transportation and Moving. I, j C 1 , C j j Prepared On: Thurs Sep O1, 2011 Page 2 Of 4 Prepared By: ' . ' . ' ` ' .. Nielsen Solution Center 1 800 866 6511 Prepared For: ® 2011 The Nielsen Company. All rights reserved. Horner Appraisal Group, Inc. Executive Summary 2011 Place (see appendix for geographies), Total Currently, it is estimated that 17.5% of the population age 25 and over in this area had earned a Master's Degree, pJ' 4.8% had earned a. Professional School Degree, 2.0% had earned a Doctorate Degree and 42.2% had earned a Bachelor's Degree. In comparison, for the United States, it is estimated that for the population over age 25, 7.1 % had earned a Master'sDegree, 1.9% had earned a Professional School Degree, 1.1% had earned a Doctorate Degree and 17.5% had earned a Bachelor's Degree. Most of the dwellings in this area (75.0 %) are estimated to be Owner - Occupied for the current year. For the entire country the majority of the housing units are Owner - Occupied (66.4 %). The majority of dwellings in this area are estimated to be structures of 1 Unit Detached for the current year. In the United States, the majority of dwellings are estimated to be structures of 1 Unit Detached for the same year. The majority of housing units in this area (37.2 %) are estimated to have been Housing Unit Built 1990 to 1999 for the current year. The majority of housing units in the United States (16.1 %) are estimated to have been Housing Unit Built 1970 to 1979 for the current year. Prepared On: Thurs Sep O1, 2011 Page 3 Prepared For: Of 4 Prepared By: Nielsen Solution Center 1900 866 6511 © 2411 The Nielsen Company. All rights reserved. Horner Appraisal Group, Inc. 10 Su'lamary of Housing Market Report — Dublin The appraisers have consolidated information from the Banns HousinMarket Report to reflect the sales information for both improved and unimproved lots within the City of Dublin. The "peak" year for lot absorption and sales was 2004. Since that point in time, the number of improved sales in new subdivisions has decreased 492 to 53 or stated differently, the sales in 2010 represent approximately 10% of the sales that occurred during 2004. The analysis also indicates a significant number of unsold lots currently available within the existing subdivisions. This tends to decrease demand for vacant undeveloped acreage and as a consequence, a negative impact upon raw land value. The land contribution as compared to improved values has also shown a decline over the past 7 years as follows: 2004 21.0% 2005: 20.0% 2006: 19.6% 2007: 22.3% 2008: 23.9% 2009: 18.0% 2010: 167% The "average" improved sale price has decreased considerably over the past 4 years and the diminished contribution of lot price, as compared to the total "package value ", also was negatively impacted. The trends for 2010 have continued through the first half of 2011. There were (19) Improved Sales for the first half of 2011 and an average price $468,386 and (17) Lots Sales at an average price of $93,087. The latest information indicates little or no change in the economic viability within this segment of the market. A Summary of the sold of lots and improved properties within new subdivisions of Dublin is found on the following page. Horner Appraisal Group, Inc. 1 Horner Appraisal Group, Inc. 12 p 00 t- It r O ti ti r ` o N C N U') M O Q O C'q N T o CO N T 0 N O N M I `- N 0 Z NO d N CO 00 � e9 6 00 6 Ef3 O N �T It oo O 04 to M V) M O d Z 0 U') �t C' 't C� OO 00 O O C'I T f�- C) r t r N N N r N N N M O N O Efl T Ltd 6 43 '� Ef} T Ef} N CF) Cl T [ 00 m 110 O O r CA O O Q N O N L17 CO d d N O C) Oo O O N 00 1 tom- r O N Ln N ti 00 O O N Z O O N ti (Yl T o � r NHS Lf) � e- 64 N Eft d' (� T Ed9 O t- n N L() ' C d O d N 0 N O O Q OJ r 7 m O O O N (fl r to o ti� o d o Z N `- M t N N Ltd E� T Ef3 LO 69 r EFt d E!3 LO Ef3 r Ef} 00 O O O (C) N N O t` N O O t` .4 O O 00 O 00 CO O O d 00 CO O 00 O M p O N T CO M M U7 O O N U') h O T O O N `- O O H 6 O O N CO It ch Uf O N 00 r d' 69 O M ca "t ta LO 6,1_ I- Eli O N� O O 0 O O �_ , O O Q O O N T U N 00 0) U O O N T 00 M Cp N CO O O M N O Z T O N -t 0 0 to 6 6c)- ea O r T O r r Lf� N d � T CO U Q Q M Lt) O N LO O r O r N T O N -t � M t N O Z O Z N � ti O d Ef} T- 69 Ei3 L t's I�- o Ca Q t�o y ; q o� a a ti o� •+ o o •+ o o o o o o C o o ta 4� �. �. 4.� Y s r,.� s• ,� S. 4� a. a, Horner Appraisal Group, Inc. 12 Analysis Of 1Mfarket Data Within our general file memorandum, is residential acreage that has sold within the City of Dublin from the period of 2000 through 2007. Some relevant sales have also been included herein. In our opinion, the Market Value of land within the market area during this "peak" period of development would have been typically at or near $60K/AC to $70K/AC A significant discount is warranted for current marketing conditions. As a guide to judgment, the appraiser refers the reader to the (6) sales which are original sales and re -sales of acreage within Franklin County and (14) sales of bulk lots which are also within the Central Ohio Area. The reader's attention is invited to the following exhibits. Horner Appraisal Group, Inc. 13 ORIGINAL SALE RESALE VARIATION 1 LOCATION: Cosgray Road LOCATION: Cosgray Road COUNTY: Franklin GRANTOR: McCoy & Jude Tree Service GRANTOR: M/I Homes GRANTEE: M/I Homes GRANTEE: Cosgray Crossing DATE: 9/9/2004 DATE: 6/27/2008 PRICE: $710,000 PRICE: $475,000 ACRES: 26.25 ACRES: 26.25 PRICE /ACR $27,048 PRICE /ACR $18,095 - $8,952 /ACRE -33.1% 2 LOCATION: Sheffield Park LOCATION: Sheffield Park COUNTY: Delaware GRANTOR: Virginia Homes GRANTOR: Centex Homes GRANTEE: Centex Homes GRANTEE: Grand Communities (Fischer Homes) DATE: 4/26/2004 DATE: 1/14/2008 PRICE: $1,150,500 PRICE: $691,427 ACRES: 22.44 ACRES: 22.44 PRICE /ACR $51,270 PRICE /ACR $30,812 - $20,458 /ACRE -39.9% 3 LOCATION: Spring Road - Westerville LOCATION: Spring Road - Westerville COUNTY: Delaware GRANTOR: Mae McCorkle GRANTOR: M/I Homes GRANTEE: M/1 Homes GRANTEE: Autumn Chase DATE: 6/4/2003 DATE: 9/30/2008 PRICE: $2,125,000 PRICE: $900,000 ACRES: 15.981 ACRES: 15.981 PRICE /ACR $132,970 PRICE /ACR $56,317 - $76,654 /ACRE -57.6% 4 LOCATION: Jackson Pike LOCATION: Jackson Pike COUNTY: Franklin GRANTOR: Gaynelle Borror Kerschner GRANTOR: M/I Homes GRANTEE: M/I Homes GRANTEE: S & W Hugett Ohio DATE: 1/29/2003 DATE: 9/30/2008 PRICE: $2,929,420 PRICE: $830,000 ACRES: 146.471 ACRES: 146.471 PRICE /ACR $20,000 PRICE /ACR $5,667 - $14,333 /ACRE -71.7 % 5 LOCATION: Haughn Glen LOCATION: Haughn Glen COUNTY: Franklin GRANTOR: C.V.Perry etal GRANTOR: Crossman /Beazer GRANTEE: Crossman Communities GRANTEE: Haughn Glen Investment DATE: 6/17/2003 DATE: 10/21/2008 PRICE: $1,188,000 PRICE: $215,000 ACRES: 25.064 ACRES: 11.158 PRICE /ACR $47,399 PRICE /ACR $19,269 - $28,130 /ACRE - 59.3% 6 LOCATION: Olentangy River Rd LOCATION: Olentangy River Rd COUNTY: Franklin GRANTOR: Noel Hamilton, Trustee GRANTOR: The Bigler Co. GRANTEE: The Bigler Co. GRANTEE: Savko Brothers Properties DATE: 10/11/2006 DATE: 3/12/2009 PRICE: $1,000,000 PRICE: $425,000 ACRES: 6.032 ACRES: 4.675 PRICE /ACR $165,782 PRICE /ACR $90,909 - $74,873 /ACRE -45.2% Horner Appraisal Group, Inc. 14 Bulk Lot ,S'aleslRelated .discounts Village at Abbey Trails On October 7, 2008, Fischer Homes purchased (3 1) lots from Beazer Homes at an average price of $17,742/lot. This modest - income subdivision is located within the Columbus /Groveport Area near the Gender Road corridor within the southeast quadrant of Greater Columbus. Beazer Homes sold (38) lots to Rockford Homes in March, May and September of 2006 at an average price of $32,470/lot indicating a discount of 45.4 %. DISCOUNT — VILLAGE AT ABBEY TRAILS: 45.4% Wilshire Subdivision Located in Delaware County, Wilshire Subdivision is a (10) lot purchase by Fischer Homes from Centex Homes that occurred on January 1, 2008 with the purchase price being $48,280 /lot. M/I Homes purchased (17) lots in April of 2007 and September of 2006 for an average price of $75K/lot indicating a discount of 35.6% for the bulk sale. DISCOUNT — WILSHIRE SUBDIVISION: 35.6% Taylor Glen Subdivision Taylor Glen Subdivision is located within Licking County and is within the City of Pataskala. The lots are typically 60' x 139'. In June 24, 2008 (59) of these lots transferred from Beazer Homes to MVR Ohio Acquisitions for a total price of $682,879 or $11,572 /lot. Since 2004, these lots had been selling at approximately $27,500 (average) indicating a discount of 58 %. DISCOUNT — TAYLOR GLEN SUBDIVISION: 58% Grant Run Estates Located within the Grove City Area of Franklin County is Grant Run Estates. MVR Ohio Acquisitions purchased (39) lots on June 24, 2008 for $786,739 or $20,172/lot. Since 2004, the average price of lots within this subdivision had been approximately $46K/lot and the Franklin County Auditor had estimated the retail value of these lots at $40,433/lot. Using this as a base, the discount reflected by the bulk sale is approximately 50 %. DISCOUNT — GRANT RUN ESTATES: 50% Enclave at New Albany There are (3 6) lots located in the subdivision known as the Enclave at New Albany within Franklin County. These (36) lots were transferred to MVR Ohio Acquisitions on June 24, 2008 for an average price of $28,579/lot. This Beazer Home subdivision had been developing with homes that had been selling for approximately $450K. Applying an 18% land contribution would indicate a retail value of these lots at $ 8 1 Mot or an indicated discount of approximately 65 %. DISCOUNT — ENCLAVE AT NEW ALBANY: 65% Horner Appraisal Group, Inc. 15 Glen Oaks Subdivision The Glen Oaks Subdivision located within Orange Township, Delaware County was developed by Dominion Homes which sold (25) homes to Westport and Westport Property Group in August of 2008 for an average price of $42,500/lot. In Delaware County, the average land contribution for lot is higher than in Franklin County and is typically 22% to 25 %. This was an owner developed subdivision and we have estimated that the previous retail value of the lots would have been 23% of the average retail value of $260,000 or $60K/lot. Comparing the bulk sale to the average retail lot price would indicate a discount of 35 %. DISCOUNT — GLEN OAKS SUBDIVISION: 35% Sunbury Meadows In August of 2006, Dominion Homes also sold (20) lots to Westport with the average purchase price being $41,610 /lot. This is a Delaware County location (Sunbury). Dominion Homes had been developing these lots within Sunbury with an average retail value of $245,200. The land contribution is estimated to be $60,000 /lot and the indicated discount reflected by the bulk sale is 31 %. DISCOUNT — SUNBURY MEADOWS: 31% Wilshire Subdivision This subdivision is located in Orange Township of Delaware County and was developed by Centex Homes. In August of 2008, Fischer Homes purchased (10) lots for an average price of $48,280/lot. Centex Homes had been developing this subdivision with an average retail price of $386,500 and applying 22% would indicate a land contribution of $85K/lot. The discount reflected by this sale is 43 %. DISCOUNT — WILSHIRE SUBDIVISION: 43% McCammon Estates This is also a subdivision developed by Centex Homes located within Orange Township of Delaware County. In August of 2008, Fischer Homes purchased (8) lots within this subdivision at an average price of $48,280/lot. This subdivision compares favorably to Wilshire Subdivision (mentioned above); hence, the discount is the same. DISCOUNT — McCAMMON ESTATES: 43% Tartan West This subdivision was developed by Tartan Development Company (Mr. Steven J. Simonetti). This subdivision is located within the City of Dublin. There are (30) lots which are currently being purchased by Davidson Phillips Inc. The sale is to close on July 12, 2010. The (30) lots are being purchased for $55K/lot. When this subdivision started, individual lots were selling for $145K (80' lots) and $125K (70' lots). This would indicate a discount factor from 56% to 62 %. DISCOUNT — TARTAN WEST: Harvest Wind 56% to 62% This subdivision is located within Southern Delaware County and is within the Westerville School District. Retail lot values had been at or near $85K/lot. Fischer Homes (Grand Communities) purchased (24) lots from Truberry in June of 2009 for $32,779/lot indicating a discount of 61 %. DISCOUNT — HARVEST WIND: 61% Horner Appraisal Group, Inc. The Woods at Havens Run This subdivision is located within Jefferson Township and within the Gahanna School District. Fischer Homes (Grand Communities) purchased (12) lots in June of 2010 for $50K/lot as compared to the typical Gross Retail Value of lots that occurred previously at or near $100K/lot indicating a discount of approximately 50 %. DISCOUNT — THE WOODS AT HAVENS RUN: 50% Glenn Ross This subdivision is located just east of US 23 near the intersection of Cheshire Road and adjacent to the Dornock Golf Course. In December of 2009, Fischer purchased (82) lots from Bob Webb Builders and Truberry for $29K/lot which reflects a discount of 64% based upon the typical retail lots that had sold previously at $80K/lot. DISCOUNT — GLENN ROSS: 64% This statistical study indicates overall bulk discounts for the sale of lots in 2007 through mid 2010, ranging from 35% to 65% depending upon a myriad of factors including the overall locational attributes of the subdivision, the number of lots involved in the transaction, the overall circumstances involved in the sale of the lots (i.e. distress of the seller and bargaining position of the purchaser), etc. As discussed previously, there have been very arm's length sales that have taken place within the northwest quadrant of Franklin County over the past 2 to 3 years. We have included on the following pages, Development Land Sales A through D which are considered to be relevant to the analysis. Some of these sales involve public entities such as Sale A (Columbus) and Sales D and E (Dublin). They are included primarily for informational purposes. The reader's attention is invited to the following exhibits. 1 Horner Appraisal Group, Inc. DEVELOPMENT LAND SALE A GRANTOR: GRANTEE: SALE DATE: LAND SIZE: SALE PRICE: UNIT PRICE: TERMS & CONDITIONS: CONFIGURATION: TOPOGRAPHY: UTILITIES: ZONING: VERIFICATION: East Side of Sawmill Road, South of Summitview Road Columbus, Ohio See Remarks City of Columbus See Remarks See Remarks See Remarks See Remarks Cash to Seller Irregular Level to Rolling Public Available R Ann Kelly of the City of Columbus and Ken Wilson, MAI COMMENTS: This property was 16.656 AC and was assembled from (3) separate owners. It is located adjacent to a high density moderate- income area of Northwest Columbus. The southern portion of the site (formerly owned by the Dublin Unitarian Universalist Church) was for the most part wooded. A small portion of the property had a retention pond along the frontage. The "sale prices" of the individual parcels are set forth below: SALE DETAILS Seller Sale Date Sale Price Size Price /AC Robert K. Nielson Trustee 3/9/200 $645,846 7.737 AC $83,475/AC Dublin Unitarian Universalist Church 2/8/2007 $308,860 3.041 AC $101,565/AC GLS Development LLC 1/30/2007 $543,715 5.878 AC $92,500/AC TOTAL $1,498,421 16.656 AC $89,9631AC This was a negotiated sale as these properties had been available and the City of Columbus paid at or near the asking price. A city official who asked to be anonymous suggested that the city probably paid a "premium ", but was in no pressure to purchase. The parkland was acquired in order to satisfy the wishes of many of the residents within the immediate neighborhood. There was no threat of eminent domain and the sales are considered to represent arm's length transactions. Horner Appraisal Group, Inc. 18 DEVELOPMENT LAND SALE A P8, I3-Il Horne° Appraisal Group, Inc, 19 DEVELOPMENT LAND SALE B LOCATION: GRANTOR: GRANTEE: SALE DATE: LAND SIZE: SALE PRICE: UNIT PRICE: TERMS & CONDITIONS CONFIGURATION: TOPOGRAPHY: UTILITIES: ZONING: VERIFICATION: North of Davidson Road, East of Avery Hilliard, Ohio Frederick M. Windmiller Wolpert Enterprises 4/16/2008 44.516 AC $1,558,060 $35,000 /AC Cash to Seller Irregular Relatively Level and At Grade with the Surrounding Parcels All Available Al Public Records Only COMMENTS: This parcel was assembled with an adjacent tract which is also owned by Wolpert Enterprises. The property is located adjacent to the Hilliard Davison High School and is at the terminus of Hayden Crest Road located south of Hayden Run Road and north of Davidson Road. It was purchased for single - family development. 4 N' 11P a.;i t t.t 0011` �I-- Tf1'95`� � lai i .. 2 ,, � boo I I i t - _ p rb, 2fA to -_ 77 2 ? • �3?r 1� 88 Sri 00211' _z7o71 Yl.I I n1f� � �y5 � i � �I 1102899 • vl � 1 ix5.Q5- gAfiTi 4 t t 1M103031 i I 0031 • Ch i I t 1 1 H1L D $off �} pl DAV SON s H1GFf SCHOOL t N 003033 i ! � '• ,�, r nz ie , 0 g ti S I V h i I , , - � `� =' .a ".c'�, o - - X61. • 'a .... . Horner Appraisal Group, Inc. 20 DEVELOPMENT LAND SALE C LOCATION: South Side of Rings Road, West Side of Cosgray Road and North of Hayden Run Road, Columbus, Franklin County, Ohio GRANTOR: See Comments GRANTEE: Western Property LLC SALE DATE: 3/28/2007 — 3/30/2007 — 8/22/2008 LAND SIZE: 266.67 AC SALE PRICE: $12,219,000 UNIT PRICE: $45,820/AC TERMS & CONDITIONS: Arm's Length CONFIGURATION: Irregular TOPOGRAPHY: Level to Rolling UTILITIES: Within the General Area ZONING: PUD -6 (6- Units /AC) VERIFICATION: Joe Sugar formerly of Dominion Homes and a confidential source that requested anonymity. COMMENTS: This sale actually involves (3) separate transactions. Dominion Homes owned 156.248 AC and sold this portion of the property for $7,774,650 or approximately $49,750/AC. Dominion Homes retained the "First Right of Refusal" for this property which is part of the Chambrey Subdivision, an approximate 317 AC development within the Hayden Run Community Development District. This particular tract is the L- shaped parcel located on the south side of Rings Road. The other (2) tracts were sold by Lloyd Kutz who was the original owner of the entire property and sold initially to Dominion Homes. There were (2) separate deeds for the acreage which is also part of the proposed Chambrey Subdivision. One of these properties abuts the bike trail that extends from Hilliard to Plain City. This is relatively high density proposed development with a density of (6) units /AC. It was purchased by a "patient investor" who realized that it would be necessary to hold this land for a period time until economic conditions improved to the extent that development was possible. The owner of this property has significant "interests" in other nearby parcels and wishes to remain anonymous. All parties were well informed and there was no unusual duress involved. Horner Appraisal Group, Inc. 21 DEVELOPMENT LAND SALE C Horner Appraisal Group, Inc. 22 DEVELOPMENT LAND SALE D LOCATION: West side of Club Road, east of 8500 Riverside Drive, Dublin, Ohio GRANTOR: Virginia & Francis Barry GRANTEE: City of Dublin SALE DATE: 11/1/2007 LAND SIZE: 3.144 AC (see comments) SALE PRICE: $22000 UNIT PRICE: $7000 /AC TERMS & CONDITIONS: Arms Length CONFIGURATION: Slightly Irregular TOPOGRAPHY: This parcel wooded as is the adjacent 16.9 Ac tract that was purchased at the same time. UTILITIES: All Available ZONING: R1 VERIFICATION: Melody Merrick — Kennedy Financial Analyst for Dublin COMMENTS: There were (2) transactions. The "sister" sale involved a property that was owned by the Hutchins Trust and contained 16.9 AC with a transfer price of $ l .OMM or $59,172/AC. The 3.144 AC tract was assembled with the larger tract for parking purposes and to insure the preservation of a Riparian Habitat corridor. The sketch below shows the 16.9 AC tract highlighted in yellow with the 3.144 AC tract being in pink. Horner Appraisal Group, Inc. 23 DEVELOPMENT LAND SALE E LOCATION: South of Bright Road, East of Riverside Drive Dublin, Ohio GRANTOR: O Josephine Holder LLC GRANTEE: City of Dublin SALE DATE: 11/23/2010 LAND SIZE: 21.411 AC SALE PRICE: $1 UNIT PRICE: $70,057/AC TERMS & CONDITIONS: Cash to Seller CONFIGURATION: Irregular TOPOGRAPHY: The frontage along Bright Road is, for the most part, level; however, there is a ravine and drainage swale which progresses through the center of the property. UTILITIES: All Available ZONING: R1 VERIFICATION: City Officials of Dublin to Horner Appraisal Group COMMENTS: The purchase price for this property was based primarily upon a prior appraisal completed in January of 2005, prior to the beginning of the real estate recession (late 2007 /early 2008). The funding for the project had been reserved within a parkland fund. This property was partially acquired for the improvement of Emerald Parkway which will progress through a portion of the property. Based upon marketing conditions, a downward adjustment would appear to be warranted. _. aa57 r i , R N i 1. _�.._ifi WW /!. Who, _ =.4'' �C11 O556s7 i 213 13 �mai7 �`r; ! tli I II Q y I' i" �% * rz --------- '— '. � ' �.,?.•*- � -- - -- — �7iQC;NiL�7FUSFRI� — � ___- i Horner Appraisal Group, Inc. 24 DEVELOPMENT LAND SALE F LOCATION: GRANTOR: GRANTEE: SALE DATE: LAND SIZE: SALE PRICE: UNIT PRICE: TERMS & CONDITIONS: CONFIGURATION: TOPOGRAPHY: UTILITIES: ZONING: VERIFICATION: Northeast corner of the intersection of Roberts Road & Alton Darby Creek Road Hilliard, Ohio Anderson Farms Ltd. Schottenstein Homes LLC (27.755 AC) & Hilliard Meadows Apartments (22.318 AC) 12/20/2010 50.073 AC (27.755 AC + 22.318 AC) $2,506,650 ($926,650 + $1 $50,000 /AC Arm's Length Nearly Rectangular Relatively Level All Available PUD Public Records COMMENTS: The 22.318 AC located at the immediate intersection is to be developed with (208) apartment units and was transferred to Hilliard Meadows Apartments. It appears that a "sister" entity, Schottenstein Homes LLC, purchased the adjacent tract for future development and allocated that price at $33,387/AC. It would appear that this "dual" transaction should actually be considered as a single sale. F f0006!" 1 I I � I 1 1 � Horner Appraisal Group, Inc. 25 Conclusion — 1Vfarket 14nalysis After giving consideration as setforth herein, it is our opinion that the Market Value of the typical residential acreage within the City of Dublin would range from $35K/AC to $40K/AC. Dublin is one of the most economically viable communities within the Midwest. With its high quality city services, medical facilities, employment centers, etc., there is every reason for optimism. As well- located residential land, the holding period should be no more than 3years. Assuming an interest rate of 15 %, the discount factor would be 0.657516. Applying this to a Future Value of $60K/AC would indicate a Current Market Value of the subject at say, $40K/AC. 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 time projection, the appraisers conclude to a suggested price per acre for raw development land with the City of Dublin, for the subsequent two year period, as required under Section 1109.02 of the Ordinance of the City of Dublin, of $40,000 /AC. This average unit value projection considers all the factors previously discussed and anticipates some improvement in market conditions over the two year period. As a result of our appraisal and analysis, it is our recommendation that the average price per acre of raw development land as of the Retrospective Date of January 1, 2011 through the Future or Prospective Valuation Date of December 31, 2012, is: FORTY THOUSAND DOLLARS PER ACRE ($40 /AC) Horner Appraisal Group, Inc. 26 11 1 Qua of the Appraiser /Consultant James R. Horner, MAI Present Status President of Homer Appraisal Group, Inc., an independent real estate appraising and consultin firm, specializing in investment properties. A Business Address Phone Numbers 22 East Gay Street Office Suite 300 Fax Columbus, Ohio 43215 Cell E -Mail D Tees Bachelor of Arts, The Ohio State University, 1969 I Professional Memberships Appraisal Institute: MAI #5762 Arbitrator: American Arbitration Association Formal Real Estate Education Appraisal Institute (614) 246-8383 (614) 246-8384 (614) 284-8888 James64Homer.LDMI.net 1 Attendance at numerous seminars and lectures dealing with new techniques in real estate, real estate appraisal, finance, etc. 2. Formerly on the faculty of Ofterbein College. 3. Currently certified under the Continuing Education Program of the Appraisal Institute. 4. The appraiser is certified as a General Appraiser (GA) within the State of Ohio (See copy of certificate following qualifications). Real Estate Appraisal ExDerience Mr. Homer is engaged full-time in the real estate appraisal profession. From 1968 to Januar of 1971, he was under the trainin a nd supervision of Anthony F. Mollica, MAI. From 1971 to October of 1977, Mr. Homer was employed and was Vice President of Associated Consultants and Appraisers, Inc., Columbus, Ohio. A In October of 1977, Mr. Homer formed his own firm. Since 1971, the appraiser has made numerous appraisal reports, including feasibilit studies for apartment and condominium projects, office buildings, single-family I residences and commercial properties. The purpose of the appraisal reports has been for condemnation, mortgage and for individual buying and selling. The Homer Appraisal Group has had the opportunity of appraising many Federal, State and Local Agencies, includin but not limited to, the Federal Aviation I., Administration, US Department of the Interior and Agriculture, The Ohio Department of Transportation, The Ohio Department of Natural Resources, COTA and man Cit A throu the State of Ohio. / �' � i n I d- o - ve -i 7wr/ I �'.�'�:?+�-� �r�'� '� w�v�::x3..�a"•a ;�� :. .-.'� "' "` ks - '� L r*a, ,'! - � � � zi= � ''�;G,.S.`� � ° rF T IN - Department of Commerce ORIGINAI. ISSUE DATE: 7/01/91 D wtsion of Real Estate CERTIFICATE NO.: 380744 CERTIFIED GENERAL REAL ESTATE "PRA.ISER THIS IS TO ACKNOWLEDGE THAT HORNER, JAMES R. HAS QUALIFIED UNDER THE LAWS AND REVISED CODE OF THE STATE OF OHIO AND.THE REQUIREMENTS OF THE REAL ESTATE APPRAISER BOARD AND IS A DULY CERTIFIED AND QUALIFIED PERSON TO ENGAGE IN THE PRACTICE OF GENERAL REAL ESTATE APPRAISAL. Witness the seal of the Ohio Department of Commerce, Division of Real Estate and the signatures of this board this 16th day of June 1993. This certificate is not valid unless renewed in accordance with state requirements. i '" .% }a :';,.� ri -•� >. .,,t .gF, 's >F .g1�_" _ 4 Y J . ,,, c r .!f' ' -- __. .. l^ d..: {:�' ]'vt�' �k.'.'ii3 :ti�;ry+ "� o 4. �;:. • :,..:�: - _ �.rs. -_.. +'t -�. .�. S -., .� . �,y'• ,. �'�. � � - r. „.._.,.:::._. ,k -s.: � .. #cr .1�i. r . n7 e ,zt,. .c. ,�•t� rr.� ax:.,.i COM 3502 APPRAISER DISCLOSURE STATEMENT In compliance with Ohio Devised Code Section 4763.12 (C) 1. Name of Appraiser: James R. Homer, MAI 2. Class of Certification/Licensure: X Certified General Certified Residential Licensed Residential Temporary General Licensed Certification/Licensure Number: GA Certification #380744 3. Scope: This report x is within the scope of my Certification/License. is not within the scope of my Certification/License. 4. Service Provided By: X disinterested & unbiased third party 5. Signature of person Interested & biased third party Interested third party on contingent fee basis reporting the appraisal: THIS FORM MAT BE INCLUDED IN CONJUNCTION WITH ALL APPRAISAL ASSIGNMENTS OR SPECIALIZED SERVICES PERFORMED BY A STATE - CERTIFIED OR STATE - LICENSED REAL ESTATE APPRAISER. State of Ohio Department of Commerce Division of Deal Estate Appraiser Section Cleveland, Ohio (216) 787 -3100 Qua ffmcations oLthe Appraiser Samuel R. Horner Present Status Partner of Homer Appraisal Group, Inc., an independent real estate appraising and consulting firm, specializing in investment properties. Business Address 22 East Gay Street Suite 300 Columbus, Ohio 43215 D e rees Phone Numbers Office (614) 246-8383 Fax (614) 246-8384 Cell (614) 284-8000 E-Mail SamaHomer.LDMI.net B.S., Business Administration, Colorado State University, 1993 Emphasis: Real Estate/Finance Formal Real Estate Education Real Estate Principals Real Estate Finance Real Estate Law Real Estate Appraisal Appraisal Institute The Appraiser has completed all of the pre-requisites for course work involving the MAI designation which involved 10 separate classes as well as numerous seminars, both voluntary and required. Real Estate Licenses Ohio Certified General Appraiser, #430914 Ohio Sales Associate License, issued 6-17-97 "Real Estate Appraisal Ex perience For approximately two years, Mr. Homer was employed with D.F. Davis Real Estate, Inc., located in ISan Diego, California. During this period, Mr. Homer worked on a m of investment properties. In 1996 JW- Homer became Vice President of the Homer Appraisal Group, Inc. f n G eorge V VOxlwvich, G ovemor t ; ; -), h" Dmmw _recor 777 De,partinent �,3 Compel Ce a a a D�Msllonl Estate ORIGINAL ISSUE DATE. 10 1 17 1 1997 CERTIFICATE FO. ® 430914 CERTIFIED GENE REAL ESTATE APPRAISER THIS IS TO ACENOrlLEDGE THAT HO.RNER a SAMUEL ROBERT HAS QUALIFIED UNDER THE LAWS AND REVISED CODE OF THE STATE OF OHIO AND THE REQUIREMENTS OF THE .REAL ESTATE APPRAISER BOARD AND IS DULY CE.RTIE'IED AND QUALIFIED TO ENGAGE Ip THE PRACTICE OF GENE REAL ESTATE APPRAISAL. Witness the seal of the Ohio Department of Oozmerce Division of Real Estate and the s ignatures of this hoard this 17th day of October 1997. This certificate is not valid unless renewed in accordance with state .regul rements Chairman ti 9bCembcr /' COM 3502 APPRAISER DISCLOSURE STATEMENT In compliance with Ohio Revised Code Section 4763.12 (C) 1. Name of Appraiser: Samuel R. Homer 2. Class of Certification/Licensure: X Certified General Certified Residential Licensed Residential Temporary General Licensed Certification/Licensure Number: GA Certification #430914 3. Scope: This report X is within the scope of my Certification/License. is not within the scope of my Certification/License. 4. Service Provided By: X disinterested & unbiased third party 5. Signature o Interested & biased third party Interested third party on contingent fee basis 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. State of Ohio Department of Commerce Division of Real Estate Appraiser Section Cleveland, Ohio (216) 787 -3100