The City of Arnold Missouri Pays Back A Friend, Spends $266k On A Hole Worth $65k

COMPLETE APPRAISAL SUMMARY REPORT OF 2306 RIDGECREST DRIVE ARNOLD, MISSOURI 63010
DATE OF REPORT OCTOBER 28, 2011 DATE OF VALUE OCTOBER 26, 2011 PREPARED FOR CITY OF ARNOLD ARNOLD, MISSOURI
PREPARED BY J. L. TULLER APPRAISAL COMPANY, INC. FESTUS, MISSOURI
October 28, 2011 Mr. Gregory C. Hall Director of Administration City of Arnold 2101 Jeffco Blvd. Arnold, MO 63010 Dear Mr. Hall: At your request, we have made a personal inspection and an appraisal of the property located at 2306 Ridgecrest Drive, Arnold, Jefferson County, Missouri 63010. The property is actually located at the northeast corner of Jeffco Blvd (US Highway 61/67) and Ridgecrest Drive, a four way lighted intersection within the City of Arnold. This Complete Appraisal, Summary Report, of which this letter is a part, describes in detail the land and methods of appraisal; and contains pertinent data considered in reaching our conclusions. Based upon our examination and analysis of the property and subject to the limiting conditions and certification contained in this report, it is our opinion that the market value of the subject property as of October 26, 2011, is: SIXTY FIVE THOUSAND DOLLARS $65,000
Respectfully submitted, J. L. TULLER APPRAISAL COMPANY
James L. Tuller, MAI
Jeffrey E. Gonterman
EXECUTIVE SUMMARY Property Appraised: Tax ID: Legal Interest Appraised: Land Area: 2306 Ridgecrest Drive, Arnold, Missouri 63010 01-9.0-29.0-2-001-013 The interest appraised is the Fee Simple interest 0.91 acre or 39,782 square feet (per Mo. Land Surveyor) (C-1) Neighborhood Commercial District The subject property, according to Insurance Community Panel No. 29099C0136E - Map Date: 04/05/2006 is in Flood Zone X, which correspond to areas that correspond to areas outside the 1-percent annual chance floodplain, areas of 1-percent annual chance sheet flow flooding where average depths are less than 1 foot, areas of 1-percent annual chance stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 1-percent annual chance flood by levees. No Base Flood Elevations or depths are shown within this zone. The subject property is currently an unimproved, vacant tract of land of sloping topography at the northeast corner of Ridgecrest Drive and Jeffco Blvd (US Highway 61/67). The property is more or less suited for assemblage, due to its limited utility specific to its size, slope, grade, irregular shape and topography/terrain.
Zoning Classification: Flood Plain Designation:
Property Description:
Summary & Conclusions:
TABLE OF CONTENTS
Page Executive Summary Nature of Assignment Purpose of Appraisal Premise of Appraisal Function of Appraisal Type of Appraisal and Report Scope of Appraisal Dates of Inspection and Value Definitions FIRREA Standards Certification of Value Assumptions and Limiting Conditions St. Louis Regional Dynamics Jefferson County Neighborhood Analysis The Property Ownership and Sales History Real Estate Taxes Description of the Site Highest and Best Use Highest and Best Use as Vacant Method of Appraisal 1 1 1 1 1 2 2 3 5 6 7 10 13 14 16 16 16 17 25 26 28
TABLE OF CONTENTS cont. Page Sales Comparison Approach Value by Sales Comparison Approach Final Reconciliation EXHIBITS Regional Map Neighborhood Map Survey Aerial Flood Map Photographs of Subject Property Map of Comparable Sales ADDENDA Qualifications 10 14 18 19 20 22-24 34 29 37 38
Summary Appraisal Report of 2306 Ridgecrest Drive, Arnold, Jefferson County, Missouri 63010
NATURE OF ASSIGNMENT Purpose of Appraisal Our assignment has been to appraise the property located at 2306 Ridgecrest Drive, Arnold, Jefferson County, Missouri 63010. The purpose of this appraisal is to estimate the as is market value of the subject property as of our most recent property inspection. Premise of Appraisal This appraisal and our final value estimate is based on the premise that the property would be aggressively marketed. Function of Appraisal/Intended Use/Intended User This appraisal is intended for the exclusive use of the City of Arnold to provide an estimate of market value for possible sale. Use of this report by anyone other than that of the client is not intended. Type of Appraisal and Report This is a Complete Appraisal, Summary Report. Extraordinary Assumptions None. Hypothetical Conditions None Report Option This report is a Summary Appraisal Report in accordance with Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice. As such, it presents sufficient information to enable the client and other intended users, as identified, to understand it properly.
J. L. Tuller Appraisal Company, Inc.
Scope of Appraisal The scope of this appraisal is as follows: To gather and analyze, rental data, operating expense data, improved property sales, and rates of return on similar properties, all as these relate to the subject property. To assess the economic effects of the neighborhood and the community at large upon the subject property. When and where possible, to obtain confirmation of market data by one or more parties to the transaction, or a participating broker. If this were not the case, the information was obtained from sources we believe to be reliable.
Dates of Inspection and Value The date of the final property inspection and to which the as is value estimate applies is October 26, 2011.
Definitions The following definitions are given as an aid toward a better understanding of the values estimated. Market Value According to the Federal Register and also quoted in the Dictionary of Real Estate Appraisal, Fourth Edition, 2002, and the Appraisal of Real Estate, Twelfth Edition, 2001, 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, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: Buyer and seller are typically motivated; Both parties are well informed or well advised and each acting in what he considers his own best interest; A reasonable time is allowed for exposure in the open market; Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 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. (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994)
Reasonable Exposure Time As defined in The Appraisal Foundation, Statement on Appraisal Standards No. 6 (SMT-6), adopted September 16, 1992, Reasonable Exposure Time is the length of time the property interest being appraised would have been on the market prior to a hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. The concept of exposure time not only encompasses adequate, sufficient and reasonable time, but also adequate, sufficient and reasonable effort.
To estimate the reasonable exposure time for a property, three primary information sources provide the foundation of the analysis and conclusion. Statistical information about days on the market for similar property types. Information gathered through the sales verification process, assuming typical buyers and sellers of this property type. Interviews of market participants involved with the marketing, management, buying and selling of the particular property category.
We have surveyed several real estate agents, brokers and other appraisers to determine a reasonable exposure time for similar facilities. From our discussions, approximately twelve months represents an approximate average period of exposure. We do not believe the market for these properties has changed to the point whereby a marketing time frame, reflecting a reasonable period of time to sell a property interest at the estimated market value during the period immediately after the effective date of an appraisal, would have changed. However, our market value estimate reflects a 12-month marketing time frame because delays in sale transaction often due occur due to holdups in due diligence, obtaining commitments for financing, contracts that fall through, etc. Based upon these considerations, we believe the twelve-month period is characteristic of a transaction that is free from the sort of delays mentioned.
Fee Simple Estate According to The Dictionary of Real Estate Appraisal, Fourth Edition, 2002, Fee Simple Estate is An absolute fee; a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power, and taxation. An inheritable estate.
FIRREA Standards Minimum appraisal standards for federally related transactions have been established by Title XI of the Financial Institution Reform, Recovery and Enforcement Act of 1989 (FIRREA), amended June 6, 1994. All appraisals shall, as a minimum: Conform to generally accepted appraisal standards as evidenced by the Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board (ASB) of the Appraisal Foundation unless principles of safe and sound banking require compliance with stricter standards; Be written and contain sufficient information and analysis to support the institution's decision to engage in the transaction; Analyze and report appropriate deductions and discounts for proposed construction or renovation, partially leased buildings, non-market lease terms, and tract developments with unsold units; Be based upon the definition of market value required as set forth in this subpart; and Be performed by State licensed or certified appraisers in accordance with requirements set forth in this subpart.
CERTIFICATION OF VALUE REPORT DATED OCTOBER 28, 2011 We certify that, to the best of our knowledge and belief: 1. 2. The statements of fact contained in this report are true and correct; The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, impartial, and unbiased professional analyses, opinions, and conclusions. We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest with respect to the parties involved. We have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. Our 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. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. James L. Tuller, MAI and Jeffrey E. Gonterman have made a personal inspection of the property that is the subject of this report. As of date of this report, James L. Tuller has not completed the continuing education program of the Appraisal Institute. James L. Tullers membership falls under the voluntary requirements of the continuing education program and is not required to complete the education program.
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James L. Tuller, MAI Missouri State Certified General Real Estate Appraiser
Jeffrey E. Gonterman Missouri State Certified General Real Estate Appraiser

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ASSUMPTIONS AND LIMITING CONDITIONS The conduct of this appraisal is necessarily guided and its results influenced by the terms of the assignment and the assumptions, which together form the basis of the study. The following conditions and assumptions, together with lesser assumptions embodied in this report, constitute the framework of our analyses and conclusions.
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Unless otherwise stated, the value of the property is based upon the present conditions of the national and local economies, the present purchasing power of the U.S. dollar, present financing rates as of the date of this appraisal, and is subject to any future changes which may occur in any or all of these conditions. The forecasts, projections, and operating estimates contained in this report are based upon current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions. All information and comments concerning the location, neighborhood, market, trends, construction quality and costs, obsolescence, condition, necessary repairs, expenses, income, taxes, zoning, or any other data of or relating to the property appraised herein, represent the estimates and opinions of J. L. Tuller Appraisal Company, Inc., formed after an examination and study of the property. While it is believed the information, estimates, and analyses given and the opinions and conclusions drawn there from are correct, J. L. Tuller Appraisal Company, Inc. does not guarantee them. We believe the information which was furnished to us by others is reliable, but we assume no responsibility for its accuracy. We assume no responsibility for matters legal in character, nor do we render any opinion as to the title, which is assumed to be good and the property marketable. All existing liens and encumbrances except as specified herein have been disregarded and the property appraised as though free and clear and under responsible ownership and competent management. The sketches in this report are included to assist the reader in visualizing the property. We have made no engineering tests or surveys of the property, and assume no responsibility for the structural soundness of the improvements, stability, and/or load bearing capacity of the soil and subsoil, adequacy of drainage, location of property lines and improvements on the site, hidden or unapparent conditions, or any other matters of a related nature. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined, and considered in the appraisal report. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. J. L. Tuller Appraisal Company, Inc.
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Unless otherwise stated in this report, the existence of electro-magnetic fields (EMF), poor indoor air quality (IAQ), carbon monoxide and other gases or substances/materials, including without limitation radon, asbestos, polychlorinated byphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. THE APPRAISER, HOWEVER, IS NOT QUALIFIED TO TEST SUCH SUBSTANCES/MATERIALS, OR CONDITIONS. If the presence of such gas or substances, such as radon, asbestos, urea formaldehyde foam insulation, or other hazardous materials or environmental conditions may affect the value of the property, then any loss in value would have to be deducted from our concluded value because the value we have estimated in this appraisal is predicated on the assumption that there is no such condition on or in the property, or in such proximity thereto that it would cause a loss in value. NO RESPONSIBILITY IS ASSUMED FOR ANY SUCH CONDITIONS, NOR FOR ANY EXPERTISE OR ENGINEERING KNOWLEDGE REQUIRED TO DISCOVER THEM. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in estimating the value of the property. Possession of this report or a copy thereof does not carry with it the right of publication, nor may it be used for any purpose by any but the client without the previous written consent of the appraiser and then only with proper written qualification, and in its entirety. We are not required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless previous arrangements have been made. The distribution, if any, of the value concluded in this report between land and improvements applies only under the stated program of utilization. The separate allocations of value for land and improvements must not be used in conjunction with any other appraisal, and are invalid if so used. Any value estimates provided in this report apply to the entire property. Any proration or division of the total into fractional interests will invalidate the value estimate, unless such proration or division of interests has been set forth in the report. This report was not prepared for syndication purposes, nor is it to be used for syndication purposes without the consent of the appraisers and then only with proper qualifications. J. L. Tuller Appraisal Company, Inc.
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Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers or the firm with which they are connected, or any reference to the Appraisal Institute) shall be disseminated to the public through advertising media, public relations media, news media, sales media, or any other public means of communication without the prior written consent and approval of the appraiser. This appraisal report has been prepared for the exclusive benefit of the addressee. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparers written consent, does so at his own risk.
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REGIONAL MAP
ST. LOUIS REGIONAL DYNAMICS The City of St. Louis was founded in 1764, ten miles south of the confluence of the Missouri and Mississippi Rivers. This location in the center of the United States and on the waterway system made St. Louis one of the leading industrial and transportation centers in the Midwest. By 1870 St. Louis was the nation's fourth largest city. In 1876 the city separated from St. Louis County, establishing its boundaries around a 61.4 square mile area. Today, the St. Louis Metropolitan Statistical Area (MSA) is the 18th most populous region in the country and covers 6,397 square miles. Its population of 2,801,033 (as of 2007 according to the US Census Bureau) includes the independent City of St. Louis, St. Louis County (which does not include the City of St. Louis), the Missouri counties of Saint Charles, Jefferson, Franklin, Lincoln, Warren and Washington and the Illinois counties of Madison, Saint Clair, Clinton, Monroe, Jersey, Bond, Calhoun and Macoupin.
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Population for individual counties in the St. Louis MSA shows a continuing pattern of migration to less urbanized areas. In percentage terms, the counties of St. Charles, Warren and Lincoln have posted the largest gains. Since 1990, the population in St. Charles County increased by 33.0 percent. Warren and Lincoln Counties indicate increases of 25.6 and 34.8 percent, respectively. In Illinois the greatest percentage growth was in Monroe County with a 23.2 percent increase. The St. Louis region is the 18th largest metropolitan area in the country with a population of 2.8 million people, a workforce of 1.5 million and over 1 million households. The unemployment rate was 9.8% in December 2009. The region is forging new frontiers in innovative industries, such as plant and medical sciences, information technology and advanced manufacturing. The St. Louis Region is headquarters to 21 Fortune 1000 companies, eight of which are in the Fortune 500. Despite the recession, the St. Louis Commercial Real Estate market fared better than other parts of the country. Foreclosures of commercial properties occurred sporadically in 2009, but industry experts view 2010 as the time when distressed commercial real estate will be at the front of major defaults as foreclosures mount. Jerry Ebest of Dierbergs is quoted as saying, the commercial market is dead! Additionally, the St. Louis Business Journal, dated 09/07/2009 entitled Signs Point to Impending Commercial Property Crisis restated the lack of liquidity in the market as banks remain unwilling to refinance loans that are maturing. Meanwhile, delinquencies on debt payments are becoming an increasing problem. There are more distressed properties now because as a loan is coming due, the value of properties have come down, so when a lender goes to refinance, he cant get a loan for the original amount, said Joe Monteleone, principal and executive vice president of Q10 Triad Capital Advisors in St. Louis. Some sectors, such as retail, experienced more difficulties than others. Planned office and retail developments have been put on hold due to the tightening of the financial markets and the lack of demand. The tightening of the credit markets has made investment sales almost non-existent in all sectors. Although the residential housing market is seeing an increase in sales and prices, the commercial market will take longer to recover. Banks have been inflexible in refinancing loans that are maturing, causing equity infusions by owners, foreclosures or short sales of distressed properties. Values and income of various properties have fallen, making it difficult to refinance. Throughout the United States, other cities are facing the same problem in whats emerging as a wave of distressed properties. Nationwide, Real Capital Analytics report found the volume of troubled commercial properties grew 122 percent in the first six months of 2009, with $67 billion added to its troubled list. Recent data indicates that distressed or troubled commercial properties in the metro area are on their way to reaching the $1 billion mark, with $726 million in commercial properties currently foreclosed on or at risk for foreclosure. Industry research firm Real Capital Analytics (RCA) identified 45 local apartment, hotel, office or retail properties that are in financial trouble or at risk for foreclosure in a study that tracks properties nationwide. The bulk of the properties with a value of $499.7 million are J. L. Tuller Appraisal Company, Inc.
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considered potentially troubled. These properties typically have an owner in financial distress that could lead to foreclosure. The Industrial market saw increases in new construction of industrial space, both on a tenant and speculative basis from 2002 to 2008. With the downturn of the economy and the slowdown in consumer spending, fewer goods need to be warehoused for distribution. The ripple effect from consumer to supplier has and will continue to limit new construction in the industrial sector. The vacancy rate rose from 8.3% in January 2009 to 10.6% in January 2010. The Retail market has been the hardest hit sector of the commercial real estate market during the recession. During the previous decade of retail growth and expansions, St. Louis has seen numerous shopping centers constructed and/or redeveloped. During 2009, as consumers tightened their household spending, many retailers closed their doors. Large corporations as well as local shops are feeling the squeeze. Retailers will continue to struggle to keep afloat through 2010 and landlords will struggle to keep their properties leased. Many landlords are working with their tenants to assist them through these difficult times including a number of concessions including free rent and/or incentives for build out. Multi-family sales and rental rates are down. The national vacancy rate is 8% according to Marcus & Millichap Research Services, Reis. Current cap rates of 7.36% are expected to rise through 2010. The office market is expected to lag in the recovery process. More vacancies are expected as leases expire or come up for renewal and companies down size. Businesses that have reduced work forces may reduce their overall leased space to accommodate for the decrease in employees. The full impact of layoffs that have occurred in the past year is starting to be felt in office vacancy. While the market has remained in a recession and other experts identify it as the next depression, there is not all gloom and doom. Most Recently, G.J. Grewe was picked as the preferred developer in St. Ann, to turn the mostly empty Northwest Plaza into a mixed-use development with retail, offices and manufacturing. G.J. Grewe was quoted as saying they do not have a plan in place yet but will analyze numerous alternatives for the once largest shopping mall in the world. All positive signs will be welcomed as St. Louis starts to dig out of a deep hole that started with the foreclosure fiasco in 2007. St. Louis has a huge amount of job loss to overcome. Average annual employment for 2009 will be approximately 38,000 to 40,000 jobs below that of 2008. That number is double the figure for jobs lost in 1991, the largest figure of the last twenty years. Average annual St. Louis employment for 2009 will be approximately 1,320,000 jobs, which is 4,000 jobs less than the region had ten years ago.
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JEFFERSON COUNTY The subject property is located in an area of Jefferson County that has historically experienced a tremendous growth in population. This is one of many areas that has developable land and has recently been undergoing transition from agricultural to residential and commercial uses. Over the past five years, several new subdivisions have been developed and several are in varying stages of development. There has also been considerable growth in commercial development along Highway 30 and Interstate 55. Jefferson County is a part of the St. Louis metropolitan area. The county has a total surface area of 668 square miles, placing it in the top four counties in the metropolitan area by size. Historically, the county has always been predominantly agricultural in nature. However, as time has progressed, especially so since the construction of I-55 through the eastern side of the county, the region has grown as a suburban area for the St. Louis metropolitan area, and a number of industrial and commercial concerns have set up large operations. The long-term outlook for the county is excellent, with large amounts of relatively inexpensive raw acreage and numerous access points into St. Louis County. While Jefferson County has, in the past, relied on agriculture for its economic support, the influx of both large numbers of residential buyers and industrial groups has created a new and growing source of income. Major industries in the county at present include Dow Chemical Company in Pevely, Mastercham Industries in Antonia, Taylor Packaging Corporation in Imperial, The Doe Run Company in Herculaneum, Seiler Plastic in Fenton, and Uniseal Rubber Products in Arnold. In addition, many support related commercial areas have sprung up along the I-55 corridor, primarily in Festus, Pevely, and Arnold to name a few communities that have expanded. This development is primarily related to the large numbers of people moving into the county. Population growth in Jefferson County has been on a constant upswing since the 1970s. The 1980 Census for the county placed the overall population at 146,183. The 1990 Census indicated that the population had increased to 171,380. The most recent population statistics indicate that the county is still experiencing significant growth, but not as explosive as in earlier years. Between 1970 and 1980 the county population increased 40,935, or 38.89 percent. The increase from 1980 to 1990 was 25,197, or 17.24 percent. The 2000 Census indicated a population of 198,099, an increase of 26,719 since 1990, or 15.6 percent. The population as of 2006 is 216,469. In summary, while the overall recessionary economy has placed a halt on may commercial and residential developments, the trend for new development is still occurring sparsely throughout the area and along the eastern portion of Jefferson County along Interstate 55. The inclusion of new commercial as well as subdivision development over the past decade has been laying the groundwork for the expansion of the Cities of Arnold and Imperial. While growth is slow due to the overall foreclosure fiasco, credit crunch and lack of liquidity, new development continues to occur along Highway 30/Gravois Road in southern Jefferson County. The area of Jefferson County has for the most part, not experienced the major overdevelopment and problems that are as prevalent in larger urban metropolitan areas. J. L. Tuller Appraisal Company, Inc.
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NEIGHBORHOOD MAP
Neighborhood Analysis The neighborhood analysis provides a bridge between the analysis of general influences on all property values and the study of a specific property. The goal of the neighborhood analysis is to determine how the operation of social, economic, government, and environmental forces influences property values in the specific area in which the subject property is located. According to The Appraisal Institute, The Dictionary of Real Estate Appraisal, Fourth Edition, 2002, a neighborhood may be defined as: A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises.
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Boundaries and Access - The subject property is located in and around the area identified as the City of Arnold, approximately 17.0 miles south of the City of St. Louis and 3.0 miles south of St. Louis/Jefferson County line. Located in the City of Arnold, access is considered good via Jeffco Boulevard (Highway 61/67) the main north/south arterial roadway. Boundaries are somewhat vague but the subject is essentially bounded by I-55 to the west, the Meramec River to the north and east and Telegraph Road to the south. Homogeneous Uses - Land uses within the neighborhood are primarily commercial in nature, as Jeffco Blvd is a highly developed commercial corridor. However, residential uses are located along the interior or tertiary roadways. Commercial uses in the immediate area consists of a variety of developments to include but not necessarily limited to retail, office, convenience and local neighborhood shopping and strip centers along with big box retailers. Neighborhood Trends During the first part of this decade the subject neighborhood remained largely stable. However, during that last three years the population of the Jefferson County area has increased with the population shift south and west of St. Louis. At the present time, residential development is limited as the foreclosure fiasco, credit crunch and overall recessionary economy has placed almost a complete halt on new development. Summary - In summary, the immediate subject neighborhood is located in a generally stable and marketable area. The citys quality of life and services offered make the city a good place to live and do business. Linkage, residential support facilities, and centers of employment appear very adequate. All of this bodes well for the continued marketability of the subject property.
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THE PROPERTY Ownership and Sales History According to the records from the Jefferson County Assessor's Office, title to the subject property is currently vested in the City of Arnold, who acquired the property in July 2004 via Warranty Deed from Michael D. & Peggy L. Allen and recorded in Document 40744 of the Jefferson County Recorder of Deed's Office. There have been no further transactions of the subject property. According to our knowledge, the subject property is neither under contract nor currently listed for sale. Legal Description A short legal description obtained from the Jefferson County Assessor's Office is as follows: Lindwedel, Lot 6 Real Estate Taxes The ability to ascertain all tax information by tax parcel varies depending upon the jurisdiction and availability of public records. We report the existing tax status as follows: Real estate taxes for properties located in Jefferson County are based upon the property's assessed valuation on the first day of January for each tax year. Real estate taxes in this county represent ad valorem taxes, meaning a tax applied in proportion to value. In the State of Missouri property taxes are paid in the year they are assessed, therefore, the taxes assessed for the current calendar year are due and payable on or before December 31. According to Missouri State Law, commercial property is assessed at 32.0 percent, while residential property is assessed at 19.0 percent of the appraised market value. Reassessment of all properties every two years is mandatory with the exception of institutional or non-profit uses. The property is exempt being a government entity.
Parcel Number 01-9.0-29.0-2-001-013 County Appraised Value N/A County Assessed Value N/A Tax Rate N/A RE Taxes N/A
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Description of the Site Physical Features Size/Dimensions - According to Missouri Land Surveyor, the subject site contains a total of 0.91 acre or 39,782 square feet. The site is located at the northeast corner of Ridgecrest Drive and Jeffco Blvd (US Highway 61/67) in the City of Arnold. The site has approximately 225 feet of frontage along its west property line or the east line of Jeffco Blvd and approximately 370 feet of frontage along the north line of Ridgecrest Drive. Configuration The site is irregular in shape. Topography/Drainage The site is of sloping topography and generally below grade as the site slopes downward to the north from Ridgecrest Drive and to the east of Jeffco Blvd. The rear of the site is substantially below grade, whereas a small portion of the southwest corner of the site is at grade with the intersecting roadways. The site's topography is extreme and mostly scrub. Drainage appears adequate. Flood Plain The subject property, according to Insurance Community Panel No. 29099C0136E - Map Date: 04/05/2006 is in Flood Zone X, which correspond to areas that correspond to areas outside the 1-percent annual chance floodplain, areas of 1-percent annual chance sheet flow flooding where average depths are less than 1 foot, areas of 1-percent annual chance stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 1-percent annual chance flood by levees. No Base Flood Elevations or depths are shown within this zone. Insurance purchase is not required in these zones. Access Ingress to the property was originally available via one curb cut off of Jeffco Blvd, located approximately 100 feet north of the south line of the subject site. However, access is currently unrestricted along both Jeffco Blvd and Ridgecrest Drive. Ground Stability We were not furnished a soils analysis, therefore, no conclusion can be ascertained with regard to the stability of the site.
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Plat Map
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Aerial Map
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Flood Map
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Legal Zoning Analysis The subject is zoned C-1 Neighborhood Commercial District. The "C-1" Commercial District of the City of Arnold is intended to authorize the provisions of certain limited sales and service facilities located in residential communities and constituting a convenience to residents in the immediate neighborhood. There are a number of permitted and condition uses permitted under the current zoning. Minimum lot size requirement is 15,000, exclusive of any area dedicated as a public roadway. Conformance Not Applicable/Vacant Land Easements/Encumbrances/Moratoriums/Encroachments We are not aware of the site being encumbered by any restrictive easements or any easement other than typical utility easements. An ALTA survey for the subject property was not provided
Utilities Public Water & Sewer, Electric and Telephone. Environmental As referenced in the Assumptions and Limiting Conditions to this report, we are not considered experts nor competent to assess environmental issues. Upon physical inspection of the subject property, no indication to the untrained eye" of environmental hazard could be found. Conclusions The subject site is located in an area that has remained relatively stable over the past few decades. While the recessionary economy has placed a halt on many new developments, as banks make heavy restrictions on money lending, the area should continue to see new growth in both the commercial and residential sectors into the foreseeable future. The area of Jefferson County has for the most part, not experienced the major overdevelopment and problems that are as prevalent in larger urban metropolitan areas. Description of the Improvements None
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PHOTOGRAPHS OF SUBJECT PROPERTY
View of site looking north along Jeffco Blvd
View of site looking northeast from corner of Jeffco Blvd and Ridgecrest Drive J. L. Tuller Appraisal Company, Inc.
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View of site looking north from Ridgecrest Drive
View of site looking west from southeast corner of site along Ridgecrest Drive J. L. Tuller Appraisal Company, Inc.
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View of Ridgecrest Drive looking east
View of Ridgecrest Drive and its intersection with Jeffco Blvd J. L. Tuller Appraisal Company, Inc.
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HIGHEST AND BEST USE The highest and best use of both land as though vacant and property as improved must meet four criteria according to the twelfth edition of the Appraisal Institute's text book, "The Appraisal of Real Estate". The highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive. These criteria are most often considered sequentially, but due to their interaction may also be considered in concert, depending on the particular situation. It is recognized that in cases where a site has existing improvements, the highest and best use may be determined to be different from the existing use. The existing use will continue, however, unless and until the land value in its highest and best use exceeds the total value of the property in its existing use. The determination of the highest and best use of the land lies in market analysis and the economic concept of supply and demand. This entails ascertaining that use of the property which will produce the most value to both the owner and the community for the longest foreseeable time, and which will be consistent with the uses of the surrounding properties, the neighborhood, and the community. An analysis of the factors affecting highest and best use as they pertain to the land as though vacant and the improved site follows.
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Highest and Best Use as Vacant The highest and best use factors considered are identified as follows: Legally Permissible The present zoning, according to the City of Arnold is C-1 Neighborhood Commercial District. The C-1 District established by this Order allows for a variety of commercial uses. It is our opinion that the highest and best use of the site, based upon the legally permissible uses, is for a development with a use in conformance with the existing zoning. Physically Possible The size, shape, topography, accessibility, availability of utilities, soil conditions, and the risk of natural disasters, in particular flooding, affect the uses for which a site can be developed. The subjects 0.91 acre is irregular in shape and of steep sloping topography with only a portion of the site being at grade with Jeffco Blvd or Ridgecrest Drive, limiting a number of developments, without suitable fill. We were not provided with any documentation indicating the amount of fill or cost necessary to render the site suitable for immediate development, however, reportedly, the City of Arnold will have a significant amount of clean fill available for this site. Financially Feasible Of the legally permissible and physically possible uses, only some may be financially feasible. At the present time, the immediate area is improved with a number of commercial retail type uses, which is considered the norm for this highly trafficked arterial. Given the location of the site at the intersection of a lighted intersection of Jeffco Blvd (US Highways 61/67), which is a four lane, asphalt paved arterial with asphalt shoulder and Ridgecrest Drive, a two lane, asphalt paved secondary arterial with asphalt shoulder, the characteristics of surrounding improvements, i.e. retail/service type uses, development with a similar use in conformance with the immediate area, taking advantage of its ease of access and good visibility, would be considered financially feasible. However, this is only the case if the lot were at grade and suitable for immediate development. Due to the restrictions placed upon the site based on its steep sloping topography, irregular shape and small size, the mostly likely use of the site is for assemblage with an abutting property. It is our opinion that it would be impractical to fill the remaining site (0.91 acre) with a slope necessary along the north property line to leave adequate usable land for any independent use. An alternative would be to construct a very large retaining wall and fill the property adjacent to the wall. However, this is also considered impractical because of the immense cost associated with building such a high wall for such a small site. Therefore, assembling this site with another it is only feasible use and would greatly enhance the potential for future development. J. L. Tuller Appraisal Company, Inc.
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Maximally Productive This analysis determines which of the financially feasible land uses produces the highest residual land value. This then determines which of the various financially feasible uses is maximally productive. As discussed above, this analysis has already been carried out by the market, which has indicated that assemblage with an abutting property would be maximally productive and represent the highest and best use of the site.
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METHOD OF APPRAISAL The traditional methods by which market data may be processed into a value indication include the Cost Approach, the Income Approach, and the Sales Comparison Approach. The Cost Approach is based on the presumption that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the subject property. The Cost Approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when relatively unique or specialized improvements are located on the site and for which there are no comparable properties in the marketplace. The Income Approach is a procedure in appraisal analysis, which converts the anticipated benefits (dollar income or amenities) to be derived from ownership of the property into a value estimate. The Income Approach is widely applied in appraising income-producing properties. Anticipated future income and/or reversions are discounted to a present value figure through the capitalization process. The Sales Comparison Approach is based on the presumption that an informed purchaser would pay no more for a property than the cost of acquiring an existing property with the same utility. This approach is applicable when an active market provides sufficient quantities of reliable data, which can be verified by authoritative sources. The Sales Comparison Approach is relatively unreliable in an inactive market or in estimating the value of properties for which no real comparable sales data is available. It is also questionable when sales data cannot be verified by principals to the transaction. Based on the subjects highest and best use, we have utilized only the sales comparison approach to value. The most reliable indicator for valuating vacant land, when sales are available. Sales are available and provide a good indication of values for the subjects immediate and surrounding area.
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SALES COMPARISON APPROACH This approach is based upon comparing the appraised property to similar recently sold properties. It is based on the principle of substitution, where value is set at the cost of acquiring an equally desirable substitute property. This approach is applicable when an active market provides enough reliable data, which can be verified by authoritative sources. This approach is relatively unreliable in an inactive market, or in estimating the value of properties for which no real comparable sales data is available. This analysis has five separate steps: Sold properties are inspected for comparability to the subject; The comparables are verified as to the terms of the sale and price; Each sale is compared to the subject giving consideration to the time of sale, locational influence, and physical characteristics. Each sale is evaluated and adjusted as being more, less, or equal in value to the subject; and After comparing the sales to the subject and making adjustments for any major dissimilarities, each sale then indicates a probable selling price for the subject. The probable selling prices indicated by all sales are then correlated into a final value estimate. In performing this approach, we have surveyed market sales activity for similar type properties in the general area. Relying upon sales that have occurred recently as the best indication of current investor attitudes and market behavior, we have selected four sales for adjustment. Detailed data on each sale are shown on the following pages. Each transaction represents a cash sale transaction; no adjustment for cash equivalency is required. In analyzing the sales data, we have selected the price per square foot as the operative unit of comparison.
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Sale No. 1 Identification Location: Transaction Data Date of Sale: Grantor: Grantee: Document: Sale Price: Physical Data Land Area: Zoning: Topography: Utilities: Remarks: 104,544 square feet; 2.40 acres Commercial Rolling/Wooded All Available Irregular shaped tract of land that is heavily wooded with visibility from Highway 141 with access via Lone Star Drive. This site abuts Quiktrip to the east, office use to the south. July 11, 2009 Leona E. Kuechenmeister Trust Duncan Avenue Properties, Inc. 32057 $600,000 2116 Lone Star, Arnold, Missouri 63010
Sale Analysis Price/Sq.Ft.: Source: $5.73 Listing Agent, Angela Mullet of Century 21 Heartland
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Sale No. 2 Identification Location: Transaction Data Date of Sale: Grantor: Grantee: Document: Sale Price: Physical Data Land Area: Zoning: Topography: Utilities: Remarks: 129,373 square feet; 2.97 acre "B-2" Community Retail Slopes upward to south All Available Purchased from Bank after foreclosure of the property. This purchase is primarily speculation based on redevelopment of the southeast quadrant of Highway A and S. Collins Drive at an undetermined future date, which encompasses 7+ parcels containing approximately 13.64 acres, more or less. $1.62 Buyer August 17, 2009 Meramec Assets, LLC Jim Tinnin & Dean Robinson 2009R-035172 $210,000, all cash to seller S. Collins Drive, Festus, Missouri 63028
Sale Analysis Price/Sq.Ft.: Source:
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Sale No. 3 Identification Location: Transaction Data Date of Sale: Grantor: Grantee: Document: Sale Price: March 5, 2009 James Guin James Ullom B Doster, Trustee Dean & Sara E. Robinson 8908 - Bought at Foreclosure $145,000, all cash to seller ($150,000 less interim use value of improvements $5,000.) 1819 Gamel Cemetery Road, Festus, Missouri 63028
Physical Data Land Area: Zoning: Topography: Utilities: Remarks: 99,752 square feet; 2.29 acre "B-2" Community Retail Rolling All Available This property located along the north line of Gamel Cemetery Road is improved with a 59 year old masonry ranch home with attached garage. The property was purchased for redevelopment of the area into commercial. The purchase price is representative of commercial price points with little contributory value to the improvements. However, the improvements are considered to have an interim use and have a minor contributory value of say $5,000.
Sale Analysis Price/Sq.Ft.: Source: $1.45 Buyer
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Sale No. 4 Identification Location: Transaction Data Date of Sale: Grantor: Grantee: Document: Sale Price: Physical Data Land Area: Zoning: Topography: Utilities: Remarks: Sale Analysis Price/Sq.Ft.: Source: $2.29 Listing Agent, Kim Obermark with Prudential Alliance 30,492 square feet; 0.70 acre Commercial Rolling All Available Located on the corner of Highway 61 and Willing Street. April 30, 2009 Loren L. Ramsey John Hubick Living Trust 19970 $70,000, all cash to seller 6988 Willing Street, Barnhart, Missouri 63012
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LAND SALES MAP
The elements of comparison for which adjustments may be required include: Property Rights - Any dissimilarity in property rights conveyed in the sale of the comparable and those being valued in respect to the subject need to be considered. Financing Terms - Any significant unusual financing conditions affecting the sale, such as advantageous seller financing, are adjusted in the cash equivalence calculation. Conditions of Sale - All comparables are considered similar with regard to conditions of sale (buyer and seller motivations). As far as we are aware none of the parties was acting under duress. Time/Market Conditions - Market conditions change over time. Therefore, past sales must be examined in the light of the direction of change, if any, between the date of the sale of the comparable and the date of valuation of the subject property.
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Location - The location of a site in terms of its neighborhood and the economic influences of that neighborhood are critical factors in the value of real property. Access - Access is critical for any commercial activity. Buyers will pay a premium for a site that offers a quicker access to major traffic ways. Size/Configuration - All else being equal, a smaller site will tend to be priced at and sell for a higher unit price than a larger site, and adjustments for significant variations in size are warranted. In addition, generally the more symmetrical a site is the more useful it is to a developer or commercial user; hence the value is usually higher. Topography - Sites may differ in value due to topographical characteristics. Sites with steeply sloping terrain may make the construction of improvements more difficult and therefore more expensive. Zoning - Land use and development may be regulated by city or county government and these regulations may preclude or restrict (in terms of height, density and size) certain types of development. Sites with fewer restrictions allowing more varied or intensive development may command a higher price, all other things being equal. Utilities - The need to provide all or some utilities to a site is a cost to a developer and would tend to result in a lower price paid compared to a similar site with all utilities provided. Site Improvements - Land already improved with utilities, curb cuts, gutters, paving and other improvements making the site ready for immediate development may command a higher price than a similar site without such improvements. Sites may also be improved with structures that are considered an encumbrance to the proposed development and this would tend to adversely affect price.
The characteristics for which adjustments are required, as discussed above, are analyzed in relation to each comparable on the following page: All of the sales were of the fee simple interest, and as far as we are aware, were not subject to any unusual financing terms or conditions of sale. The sales occurred between March 2009 and August 2009. The real estate market has remained relatively stable or even stagnant since the beginning of 2008, especially for vacant tracts of land suitable for new development. Considering the relative unstable real estate market, no adjustment for time was applied for sales after 2008. It is also noted that due to the highest and best use of the subject, for assemblage, we have made an attempt to obtain sites with similar highest and best uses. We were able to obtain two of the four sales included herein that are of similar highest and best use, that is, both Sales Two and Three were purchased for assemblage for future redevelopment.
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Sale Number One is the sale of a 2.40 acre tract of land with visibility and frontage along Highway 141 with access from an interior, commercially developed roadway, Lone Star Drive. This sale, while somewhat similar in topography and terrain, i.e. heavily wooded in nature and well above grade with that of Highway 141 and Jeffco Blvd, still has potential for development with access from Lone Star Drive. Considering the fact that this site is suitable for independent development, an adjustment for utility and topography/terrain is warranted. Sale Number Two is the sale of a 2.97 acre tract of land off of S. Collins Drive in Festus, Missouri. This sale is similar in terms of highest and best use with that of the subject. This sale was purchased for future assemblage and commercial redevelopment at the southeast quadrant of Highway A and South Collins Drive. However, while similar in highest and best use, this sale is superior in terms of topography and terrain, but limited in terms of access and visibility, i.e. inferior to the subject's corner location along Jeffco Blvd and Ridgecrest Drive. Also, located in a less desirable area, specific to population and density of development, an adjustment for location was also applied. Sale Number Three is the sale of a 2.29 acre tract of land located along the north line of Gamel Cemetery Road. Similar to that of Sale Number Two, this sale was purchased for assemblage and future commercial redevelopment. Adjustments were applied for its inferior location, access/visibility and superior terrain/topography. Sale Number Four is a 0.70 acre tract of land located at the corner of Highway 61 and Willing Street in Barnhart, Missouri, approximately six miles south of the subject. This sale was utilized for its limited development utility. The size and irregular shape of the lot limits it future development potential, warranting an adjustment. While located on a corner lot with frontage along Highway 61/67, this sale is located in a less desirable area, specific to population and density of development, warranting an adjustment for location. An additional adjustment is required for its superior terrain/topography. The adjustment grid that follows utilizes percentage adjustments based on the qualitative analysis discussed above in the absence of market extracted dollar adjustments.
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ADJUSTMENT GRID
Sale No. 1 2 3 4 Access/ Visibility --+10% +10% --Terrain/ Topography -20% -20% -20% -20% Adjusted Price/SF $1.72 1.62 1.45 1.60
Price/SF $5.73 1.62 1.45 2.29
Time ---------
Price/SF $5.73 1.62 1.45 2.29
Location --+10% +10% +10%
Utility -50% -----20%
Net -70% -----30%
After adjustments, the comparables provide a range of value indications from $1.45 to $1.72 per square foot, with a mean of $1.60 and a median of $1.61 per square foot. All sales were used in the valuation. After giving consideration to the adjusted sale prices, it is our opinion that the market has indicated and will support a land value for the subject property as follows: Land Value: 0.91 acre or 39,782 sq.ft. @ $1.60 per sq.ft. Rounded to: $63,651 $65,000
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FINAL RECONCILIATION One of the three recognized approaches to value has been applied in estimating the as is market value of the subject property. The value concluded by this approach is as follows: Value Conclusions AS IS: Cost Approach Income Approach Sales Comparison Approach Concluded Value N/A N/A $65,000 $65,000
The Sales Comparison Approach is based on the presumption that an informed purchaser would pay no more for a property than the cost of acquiring an existing property with the same utility. This approach is applicable when an active market provides sufficient quantities of reliable data, which can be verified by authoritative sources. The Sales Comparison Approach is relatively unreliable in an inactive market or in estimating the value of properties for which no real comparable sales data is available. It is also questionable when sales data cannot be verified by principals to the transaction. As previously noted, a property such as the subject (vacant land), neither the Cost Approach nor the Income Approach is applicable. In appraising vacant land, the Sales Comparison Approach is the primary approach used, with the Income Approach being used only in special situations or where comparable sales are lacking. Based upon our examination and analysis of the property and subject to the limiting conditions and certification contained in this report, it is our opinion that the as is market value of the subject, as of October 26, 2011, is: SIXTY FIVE THOUSAND DOLLARS ($65,000) In our opinion this property could be marketed and sold in less than twelve months at our appraised value.
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ADDENDA
QUALIFICATIONS James L. Tuller, MAI, has thirty-seven years of experience in the Real Estate Field. Jim has previously been associated with Hallauer-McReynolds & Associates, 1969-1971, Missouri State Highway Commission, 19601969 and Roy Wenzlick & Copany 1957-1960. Jim has appraised various types of real estate, mostly in the St. Louis Metro Area, but also in other counties of Missouri, Illinois, Indiana, Iowa, Arkansas, Kentucky and Tennessee. He has made appraisals for both individuals and taking agencies, including utility companies, cities, school districts, railroads and state and federal agencies. Jim has appraised property for numerous state and federal agencies, including the Missouri Department of Transportation, Missouri Department of Natural Resources, Justice Department, U.S. Forest and Park Services. Participated in mass appraisals for equalization in St. Louis County, Missouri and Bradley County, Tennessee. Testified as expert witness in Missouri Circuit Courts of Jefferson, St. Francois, Federal Court and Eastern District of Missouri. Licensed Real Estate Broker for thirty years. State Certified General Real Estate Appraiser - State of Missouri MAI Designation Member No. 5497 License No. RA 001162 - valid through June 30, 2012 Licensed Real Estate Broker State of Missouri Jeffrey E. Gonterman, has been involved in real estate since 1998. Prior to Blue Shutters Appraisal Group Jeffrey was employed by Red Eagle Appraisals, an affiliate of DAS Acquisitions (USA Mortgage) as an inhouse appraiser. From 2001 to 2004, Jeffrey was an employee of Real Estate Analysts, Limited for three years, where he obtained his State Certified General Real Estate Appraiser License and Brokers License for the State of Missouri. From 1999 through 2001 he was employed by Dinan Real Estate Advisors, a commercial firm. Prior to being involved with the St. Louis market, Jeffrey was employed with a residential appraisal firm in Kansas City, known as Pinnacle Appraisal Group for two years. Jeffrey has been involved in several aspects from residential to commercial appraisals and specializing in apartment complexes, acquisition and condemnation properties for both the State of Missouri and Illinois. Past experience includes gas station/convenience stores, apartment complexes, educational facilities, financial facilities, health care properties, assisted living facilities, shopping centers, light and heavy manufacturing facilities, funeral homes, nurseries, lodging facilities, warehousing and office buildings. Jeffrey is also a member of the National Association of Realtors and a general associate member of the Appraisal Institute and is currently working towards his MAI designation. State Certification State Certified General Real Estate Appraiser - State of Missouri License No. - 2003026711 - valid through June 30, 2012 State Certified General Real Estate Appraiser State of Illinois License No. 153.0001606 valid through September 30, 2013 Licensed Real Estate Broker State of Missouri License No. 2004007420 valid through June 30, 2012
June 23, 2004 Acquisition of Right of Way Project No. STP-5456 (606) Michigan Avenue & Route 61/67 City of Arnold, Jefferson County Michael & Peggy Allen 2832 Fox Run Ridge Arnold, MO 63010 Dear Michael & Peggy Allen: The City of Arnold is pleased to inform you of the Michigan Avenue/Jeffco Blvd. Intersection Improvement Project planned for your area. It will be necessary to acquire certain real property and rights to accomplish the proposed intersection construction as indicated on the engineering plans and more particularly described in the enclosed deeds presented to you for consideration. You will note that 11,264 square feet of land is required from your property to provide for the right of way for this intersection improvement. Also, 13,052 square feet of land is required from your property to provide a temporary construction easement and slope license. As determined by the enclosed Tuller appraisal, the remainder of your lot after acquisition of the above right of way and easement has been deemed an uneconomic remnant. For this reason we are offering to purchase your entire parcel. I am authorized by the City of Arnold to offer on its behalf to all parties who may have an interest in the real estate to be acquired the sum of $286,000.00, which has been determined to be just compensation for such property and rights based upon the fair market value of the property. A summary of the amount set out above as just compensation is as follows: 1. 2. 3. 4. Land Acquired and Minor Improvements 11,264 SF @ $5.60 Major Improvements Total Land and Major Improvements Damages to Remainder: Uneconomic Remnant 39,782/SF @ $5.10 Loss in value to remainder due to taking of Temporary Construction Easement included as Part of uneconomic remnant Total Just Compensation Due Fee Owner: $63,078 N/A $63,078 $202,888
5.
$266,000 (rounded) $20,000 (rounded)
Uneconomic Remnant 39,782 SF @ $0.50
The value of just compensation has been arrived at after giving consideration to the sales prices of other properties in the area that are similar to your property. A copy of the Standard Format Appraisal and Review Appraisal used in the determination of just compensation is enclosed. In determining the amount by which structures contribute to the overall value of the property, consideration may have also been given to the cost of replacing the structures along with any observed depreciation. This value has been arrived at in accordance with the procedures explained in the enclosed brochure When a Road or Bridge Comes Your Way. It is noted that there are no structures on your parcel and thus the regulations involving structures do not apply. It is requested that you advise Greg Hall by July 9, 2004 of your acceptance or rejection of this offer. An acquisition brochure is furnished with this letter. The purpose of this brochure is to explain the process, which must be followed to acquire right of way. We look forward to the continuation of our street improvement program and are grateful for the opportunity to serve you. If you have any questions or concerns please contact me at 636-282-6667. Respectfully,
Gregory C. Hall Director of Administration

The City of Arnold Missouri Pays Back A Friend, Spends $266k On A Hole Worth $65k

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COMPLETE APPRAISAL SUMMARY REPORT OF 2306 RIDGECREST DRIVE ARNOLD, MISSOURI 63010

PREPARED BY J. L. TULLER APPRAISAL COMPANY, INC. FESTUS, MISSOURI

Respectfully submitted, J. L. TULLER APPRAISAL COMPANY

James L. Tuller, MAI

Zoning Classification: Flood Plain Designation:

Summary & Conclusions:

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

Jeffrey E. Gonterman Missouri State Certified General Real Estate Appraiser

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

PHOTOGRAPHS OF SUBJECT PROPERTY

View of site looking north along Jeffco Blvd

PHOTOGRAPHS OF SUBJECT PROPERTY

View of site looking north from Ridgecrest Drive

PHOTOGRAPHS OF SUBJECT PROPERTY

View of Ridgecrest Drive looking east

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

Sale Analysis Price/Sq.Ft.: Source:

J. L. Tuller Appraisal Company, Inc.

Sale Analysis Price/Sq.Ft.: Source: $1.45 Buyer

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

LAND SALES MAP

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

Price/SF $5.73 1.62 1.45 2.29

Price/SF $5.73 1.62 1.45 2.29

Location --+10% +10% +10%

Utility -50% -----20%

Net -70% -----30%

J. L. Tuller Appraisal Company, Inc.

J. L. Tuller Appraisal Company, Inc.

$266,000 (rounded) $20,000 (rounded)

Uneconomic Remnant 39,782 SF @ $0.50

Gregory C. Hall Director of Administration

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