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12/01/2014-CC-Agenda Packet-RegularQL "D TEXAS AGENDA CITY COUNCIL MONDAY, DECEMBER 1, 2014 7:00 PM 502 ELM STREET 1. Call Meeting to Order, Invocation, Pledge of Allegiance. 2. Citizens Input: (Citizens are allowed 3 minutes to speak. The City Council is unable to respond or to discuss ally issues brought up during this section). CONSENT AGENDA 3. a) Approval of Minutes: November 17, 2014 -Work Session November 17, 2014 - City Council b) Disbursements 4. Consider any Items Removed From Consent Agenda. REGULAR AGENDA 5. Consider, Discuss and Possibly Approve Resolution #1112-01-14 - Approving Financing by the Sanger Cultural Education Facilities Corporation for the Benefit of Abilene Christian University and Related Matters. 6. Consider, Discuss and Possibly Approve a Sales Contract Between PAC Capital Holdings, LTD Doing Business as PAC Group, LTD and the City of Sanger for the Purchase of 2 Acres Situated in the Tierwester Survey, Abstract 1241, City of Sanger, Located North of FM 455 and East of Keith Drive in the Amount of $175,000. 7. Consider, Discuss and Possibly Approve an Agreement With Eikon for Engineering Services Regarding an Impact Fee Assessment Feasibility Study on Road Improvements in the Amount of $11,500. 8. INFORMATION ITEMS: None. 9. Adjourn. I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the bulletin board, at the City Hall ofAu f rq Sanger, Texas, a place convenient and readily accessible to the general public,,AiA`t}e�;` end said, notice was posted on the following date �. and time: e' r t "/ } �L.m. and shall remain posted until meeting isid!"OiTnk Tami Taber, City Secretary City of Sanger, Texas MINUTES: CITY COUNCIL WORKSESSION November 17, 2014 PRESENT: Mayor Thomas Muir, Councilman Billy Ezell, Councilman Russell Martin, Councilman Scott Stephens, Councilman Gary Bilyeu and Councilman Allen Chick OTHERS PRESENT: Mike Brice City Manager, Tami Taber City Secretary, Joe Falls and Meghann Piercy 1. Call Meeting to Order. Mayor Muir called the meeting to order at 6:30 p.m. 2. Discuss Revisions to Parking Ordinance. For the last six to eight months the City Manager has been working on updating this ordinance now that Sanger is transitioning from a rural to a suburban community needing more restrictive regulations. The following sections were suggested and discussed: 12.610 Off street parking - currently it only says a) Parking on grass, gravel or rock surfaces, except as allowed in 12.610(f), is prohibited in all zoning districts except A (Agriculture), I1 (Light Industrial) and I2 (Heavy Industrial) b) Required off street parking shall meet the requirements of the zoning ordinance City Manager suggested adding: c) Non -required off street parking shall only be allowed on paved concrete or asphalt surfaces except in A (Agriculture), I1 (Light Industrial) and I2 (Heavy Industrial). All driveways and approaches to off street parking spaces shall be similarly paved. d) Additional parking areas for recreational vehicles, trailers and boats in residential areas shall be allowed on paved surfaces. The size of the parking space must be at a minimum the length and width of the vehicle, trailer or boat. All driveways and approaches accessing these parking areas must be similarly paved. e) Non -required parking in front of a residence may not obscure more than a certain percentage ( to be determined) of the residence. f) Parking on gravel or rock surfaces in existence on the effective date of this ordinance shall be allowed to continue. These surfaces may be repaired or improved from time to time but may not be expanded. Section 12.901 Weight Limitation Parking changed to Parking on Public Property a) Hereinafter it shall be unlawful for any person, driver or owner to leave, park or stand any truck -tractor, road tractor, semi -trailer, flatbed trailer, livestock trailer bus or truck trailer. b) This article shall not prevent parking or standing of the above described vehicles in such zoned areas for the purposes of expeditiously loading and unloading passengers, freight or merchandise or for providing a temporary service such as lawn care. c) Nothing in this article is intended to supersede other ordinances specifying designated truck routes or truck parking areas as provided by ordinances of the City of Sanger. Section 12.902 Hours a) Hereafter it shall be unlawful for a person, driver or owner to stand, park or allow to stand an automobile, truck or any other motor vehicle on any public property for a period in excess of ninety-six (96) hours when such vehicle or trailer is without one (1) or more wheels, or is apparently inoperative for any reason. For this purpose, any vehicle without license or inspection for current registration or inspection year may be deemed inoperative. b) Hereafter it shall be unlawful for a person, driver or owner to stand, park or allow to stand a recreational vehicle on any public property for a period in excess of forty-eight (48) hours, whether or not such units are operative. c) For the purpose of this section, recreational vehicle means a vehicular type unit primarily designed as temporary living quarters for recreational camping or travel use that either has its own motive power or is mounted on or towed by another vehicle. This would include, but is not limited to such entities as travel trailers camping trailers, truck trailers and motor homes. d) Nothing in this article precludes a peace officer from requiring a vehicle to be moved for health or safety reasons regardless of the time limits above. There will be more discussion on these revisions, these are not the final changes. 3. Overview of Items on Regular Agenda. 4. Adjourn. Mayor Muir adjourned the meeting at 7:05 p.m. MINUTES: CITY COUNCIL MEETING November 17, 2014 PRESENT: Mayor Thomas Muir, Councilman Billy Ezell, Councilman Russell Martin, Councilman Scott Stephens, Councilman Gary Bilyeu and Councilman Allen Chick OTHERS PRESENT: Mike Brice City Manager, Tami Taber City Secretary, Joe Falls, Meghann Piercy 1. Call Meeting to Order, Invocation, Pledge of Allegiance. Mayor Muir called the meeting to order at 7:10 p.m. Councilman Stephens led the Invocation followed by Councilman Chicle leading the Pledge of Allegiance. 2. Citizens Input: (Citizens are allowed 3 minutes to speak. The City Council is unable to respond or to discuss any issues brought up during this section). Joe Falls, 4489 McReynolds Road, wanted to mention what a wonderful nation we have and give thanks for benefits and freedoms that we have. CONSENT AGENDA 3. a) Approval of Minutes: November 3, 2014 - Joint with 4A & 4B November 3, 2014 - Work Session November 3, 2014 - City Council b) Disbursements c) Approve Appointing Ronnita Jensen as an Alternate to the Library Board Councilman Ezell made a motion to approve. Seconded by Councilman Martin. Motion carried unanimously. 4. Consider any Items Removed From Consent Agenda. REGULAR AGENDA 5. Consider, Discuss and Possibly Approve an Agreement With Eikon for Engineering Services Regarding Water and Wastewater Relocations for Kirkland, Smith, Simms and Jones Street. This is in preparation of replacing the old clay tile sewer lines and undersized 2" water ►ines which will be replaced with 6" lines. The Jones Street line will be extended to the wastewater plant. Four fire hydrants will be added. Councilman Bilyeu made a motion to approve a total of $25,900. Seconded by Councilman Martin. Motion carried unanimously. 6. Consider, Discuss and Possibly Approve the Dedication of Land on the North Side of Willow Street at Ranger Branch for Development as a City Park. Councilman Bilyeu made a motion to approve. Seconded by Councilman Stephens. Motion carried unanimously. 7. INFORMATION ITEMS: None. 8. Adjourn. Mayor Muir adjourned the meeting at 7:25 p.m. 11/25/2014 10:14 AM A / P CHECK REGISTER PACKET: 07041 Regular Payments By 2014 VENDOR SET: 99 BANK POOL POOLED CASH ACCOUNT PAGE: 1 CHECK CHECK CHECK CHECK VENDOR NAME / I.D, PESO TYPE DATE DISCOUNT AMOUNT N08 MOUNT 28000 BERMAN, SAMES I-156229 CPRP EXAM FEE R 11/25/2014 195.06CR 058686 195.00 03730 COLLIN COUNTY COLLEGE I-SO042779-1 DUNN & PARKER ANTI -TERRORISM R 11/25/2014 80.000R 058687 I-SO042779-2 DODSON NARCOTICS 101 R 11/25/2014 80.000R 058687 160.00 08210 KWIK KAR 1-25666 INSPECTIONS R 11/25/2014 39.15CR 058688 39.75 17260 QUEST CARE I-19.12.2015 EMS MEDICAL DIRECTOR R 11/25/2014 6,500.000R 058689 6,500.00 16240 SCHAD & HURTS 1-194846 02 TANK REFILL R 11/25/2014 14.000R 058690 1-94958 02 TANK REFILL R 11/25/2014 33.000R 058690 I-99982 02 TANKS R 11/25/2014 180.000R 058690 227.00 * * T 0 T A L S * * N09 DISCOUNTS CHECK MIT TOTAL APPLIED REGULAR CHECKS: 5 0.00 7,121.15 7,121.75 HANDWRITTEN CHECKS: 0 0.00 0.00 0.00 PRE -WRITE CHECKS: 0 0.00 0.00 0.00 DRAFTS: 0 0.00 0.00 0.00 VOID CHECKS: 0 0.00 0.00 0.00 NON CHECKS: 0 0.00 0.00 0.00 CORRECTIONS: 0 0.00 0.00 0.00 REGISTER TOTALS: 5 0.00 7,121.75 7,121.75 TOTAL ERRORS: 0 TOTAL WARNINGS: 0 11/25/2014 10:10 A14 A / P CHECK REGISTER PACKET: OM37 Regular Payments FY 2015 VENDOR SET: 99 SANK POOL POOLED CASH ACCOUNT PAGE: 1 CHECK CHECK VENDOR NAPIE / I.D. DESC TYPE DATE 26810 BANK OF TEXAS I-11/17/2014 SANG412GOR ❑ 11/1]/2014 16990 ADVANCED RESCUE SYSTEM I-2014-712 TNT TOOL SERVICE R 11/25/2014 28000 BERVAN, JA14ES I-CFM 2014 CPM REIMBURSEMENT R 11/25/2014 00420 BOUND TREE MEDICAL, LLC I-81602826 EMS SUPPLIES R 11/25/2014 26350 C 6 G ELECTRIC, INC I-26917 ELECTRICAL REPAIR R 11/25/2014 27990 CAPITAL OFFICE PRODUCTS C-C4935134-0 MISC OFFICE SUPPLIES R 11/25/2014 C-C4951471-0 MISC OFFICE SUPPLIES R 11/25/2014 I-4935134-0 MISC OFFICE SUPPLIES R 11/25/2014 I-494160-0 MISC OFFICE SUPPLIES R 11/25/2014 20410 CARE NOW CORPORATE I-934665 DRUG TESTING R 11/25/2014 02490 CENTURYLINK I-11/10/14-12/9/14 CENTURYLINK 11/10/14-12/10/14 R 11/25/2014 08880 COOPER'S COPIES I-119501 LETTERS FOR BUILDING R 11/25/2014 00710 DATA BUSINESS FORMS INC. I-99276 BUSINESS CARDS R 11/25/2014 08460 DELL COMPUTERS, LLD I-XSKDRMS38 2 LICENSE FOR PUBLISHER R 11/25/2014 26410 DENTON COUNTY CLERK I-11/11/14 LIENS LIENS R 11/25/2014 18190 DEPARTMENT OF INFORMATION RESOURCE I-15101028N LONG DISTANCE 10/l/14-10/31/14 R 11/25/2014 CHECK CHECK DISCOUNT AMOUNT NON MOUNT 36,1I5.00CR 000000 36,175.00 1,350.000R 058645 1,350.00 595.000R 058648 595.00 89.18CR 058649 89.98 180.000R 058650 180.00 5.90 058651 38.08 058651 191.18CR 058651 9.35CR 058651 131.15 120.000R 058652 120.00 1,494.19CR 058653 1,494.19 187.95CR 058654 189.95 65.48CR 056655 65.48 190.56CR 058656 190.56 120.000R 058657 120.00 27.98CR 058658 2".98 11/25/2014 10:10 AN A / P CHECK REGISTER PAGE: 2 PACKET: 07037 Regular Payments FY 2015 VENDOR SET: 99 BANK POOL POOLED CASH ACCOUNT CHECK CHECK CHECK CHECK VENDOR NAME / I.D. DESC TYPE DATE DISCOUNT AMOUNT N04 AMOUNT 1 DEPRATER, LESA I-DEPRATER 11/14 DEPOSIT R 11/25/2014 100.000R 058659 100.00 27320 DO -ALL ELECTRIC SERIVCE I-3180 120 VOLT OUTLET - LIBRARY R 11/25/2014 100.000R 058660 100.00 14950 PRO - TEXAS SOCIAL SECURITY PROGRAM I-9291205 2014 ADMINISTRATIVE FEE R 11/25/2014 35.000R 058661 35.00 18790 FUELNAN I-NP42809807 FUELMAN 11/10/14-11/16/14 R 11/25/2014 2,303.83CR 058662 2,303.83 17380 THE GLOVE GUY I-35818 GLOVES R 11/25/2014 65.00CR 058663 65.00 16860 GRAINGER I-9593165633 HONE DEPOT R 11/25/2014 396.75CR 058664 396.75 2030C GREEN EAGLE OVERHEAD DOORS 1-4334 2 GARAGE DOORS R 11/25/2014 1,620.000R 058665 1,620.00 16900 GOT PUBLIC SAFETY SUPPLY I-INV-052803 UNIFORMS FOR NEW HIRE R 11/25/2014 238.73CR 058666 238.73 02610 HD SUPPLY POWER SOLUTIONS 1-2705694-00 METER RATTIERIES R 11/25/2014 342.000R 058667 342.00 01350 HENDERSON, JOHN I -BOOTS 2014 BOOT REIMBURSEMENT R 11/25/2014 86.59CR 058668 86.59 08210 KWIK PAR I-27501 VEHICLE INSPECTIONS- OCT R 11/25/2014 39.75CR 058669 I-27577 VEHICLE INSPECTIONS- OCT R 11/25/2014 14.50CR 058669 I-27578 VEHICLE INSPECTIONS- OCT R 11/25/2014 14.50CR 058669 68.75 25060 LEMONS PUBLICATIONS INC I-3316 ADVERTISING OCT 2014 R 11/25/2014 125.000R 058670 125.00 20"0 LEXIS SEXES I-1457774-20150930P LEXIS NEXIS 10/l/14-9/30/15 R 11/25/2014 2,030.63CR 058671 2,030.63 1 MCCANDLESS, SHERRI I-MCCANDLESS 11/14 DEPOSIT R 11/25/2014 100.000R 058672 100.00 11/25/2014 10:10 AM A / P CHECK REGISTER PAGE: 3 PACKET: 07037 Regular Payments FY 2015 VENDOR SET: 99 BANK POOL POOLED CASH ACCOUNT CHECK CHECK CHECK CHECK VENDOR NAME / I.O. DESC TYPE DATE DISCOUNT AMOUNT NOW AMOUNT 2740C METCALF, BRANDON I-CDL 2014 OIL 2014 R 11/25/2014 57.000R 058673 57.00 02970 OFFICE DEPOT I-?3919266"01 MISC OFFICE SUPPLIES R 11/25/2014 294.29CR 058674 I-?39192754001 MISC OFFICE SUPPLIES R 11/25/2014 2,378.95CR 058674 I-739192755001 MISC OFFICE SUPPLIES R 11/25/2014 314.99CR 058674 I-739192756001 PIISC OFFICE SUPPLIES R 11/25/2014 158.94CR 058674 I-739192757001 MISC OFFICE SUPPLIES R 11/25/2014 9.90CR 058674 I-739192750001 MISC OFFICE SUPPLIES R 11/25/2014 33.55CR 058674 I-739313674001 OFFICE SUPPLIES R 11/25/2014 131.42CR 058674 I-?40032358001 OFFICE SUPPLIES R 11/25/2014 186.69CR 058674 I-?40034105001 OFFICE SUPPLIES R 11/25/2014 175,88CR 058674 3,684,61 19200 PATHPLIRK TRAFFIC PRODUCTS OF TEXAS,INC. I-008368 ASSORTED STREET SIGNS R 11/25/2014 2,495.72CR 058675 2,495.72 05290 RFD WING I-00627045344 DUTY BOOTS R 11/25/2014 134.99CR 058676 134.99 25970 REPUBLIC METERING GROUP, INC I-1426 WATER PETERS R 11/25/2014 7,601.20CR 058677 7,601.20 27450 RICOH USA I-26054169 COPIER LEASE R 11/25/2014 709.97CR 058678 709.97 27750 SAMANTHA SPRINGS BOTTLING I-10/31/14 003781 COURT WATER 003781 R 11/25/2014 2.97CR 058679 I-10/31/2014 003823 POLICE WATER 003823 R 11/25/2014 12.90CR 058679 I-11/13/14 003819 WATER BOTTLES - CITY HALL R 11/25/2014 35.000R 058679 50.87 16240 SCHAD 5 PULTE I-8208326 02 TANK LEASE R 11/25/2014 90.000R 0586630 I-93802 02 TANK REFILL R 11/25/2014 33.000R 058680 I-95228 02 TANK REFILL R 11/25/2014 14.000R 058680 137.00 25590 SCHNEIDER ENGINEERING 1-000000024670 ERCOT TRANS OPERATOR R 11/25/2014 536.25CR 058681 536.25 26590 TEXAS COMMISSION ON ENVIRONMENTAL QUALITY I-PHS0151533 FY 15 0630006 WATER R 11/25/2014 6,058.70CR 058682 6,058.70 11/25/2014 10:10 AM A / P CHECK REGISTER PACKET: 07037 Regular Payments FY 2015 VENDOR SET: 99 BANK POOL POOLED CASH ACCOUNT PAGE: 4 VENDOR NAME / I.D. DESC 27980 TEXAS STRIPES I-95 STRIPPING OF SPORT PARK 27890 TWIN OAKS CUSTOM CABINETRY I-6038 CABINETS/WORKSTATION 02910 UPPER TRINITY I-W271411 10/l/14-10/31/14 ** T O T A L S REGULAR CHECKS: HANDWRITTEN CHECKS: PRE -WRITE CHECKS: DRAFT'S: VOID CHECKS: MON CHECKS: CORRECTIONS: REGISTER TOTALS: TOTAL ERRORS: 0 TOTAL WARNINGS: 0 CHECK CHECK CHECK CHECK TYPE DATE DISCOUNT AMOUNT NO# AMOUNT R 11/25/2014 1,850.000R 058683 1,850.00 R 11/25/2014 1,575.000R 058684 1,575.00 R 11/25/2014 20,744.35CR 058685 20,744.35 NOR DISCOUNTS CHECK ART TOTAL APPLIED 39 0.00 57,805.83 57,805.83 0 0.00 0.00 0.00 0 0.00 0.00 0.00 1 0.00 36,175.00 36,175.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 40 0.00 93,980.83 93,980.83 CONTRACT FOR SALE THE STATE OF TEXAS BY THIS AGREEMENT AND CONTRACT: COUNTY OF DENTON Parties PAC CAPITAL HOLDINGS, LTD. (dba PAC GROUP, LTD.), hereinafter called Seller, hereby agrees to sell and convey unto THE CITY OF SANGER, hereinafter called Purchaser, the following described property: Property Approximately 2f acres situated in the Tierwester, Abstract #1241 City of Sanger, Denton County, Texas. This parcel is situated north of FM 455 and east of Keith Drive in Sanger, Texas. Actual acreage and boundaries to be determined by survey. Terms The purchase price is $175,000.00, being effectively based on the price of $2/S.F of land. As a contingency to the sale, Seller agrees to allow the Purchaser to drill a test water well on the proposed site. If the well is not deemed suitable for use by Purchaser, then there will be no obligation on the part of Purchaser to complete the transaction. Within 2 days of the execution of this contract, Purchaser will deposit with the undersigned Title Company Escrow Agent as earnest money the sum of $2,500,00; with the balance to be paid in full at closing. Seller grants Purchaser a 300 day inspection period, beginning on the date in which the contract is executed, to perform its due diligence on the property. Title Seller agrees to furnish Owner's Title Policy through Title Resources (Denton, TX) to said property, which shall be conveyed free and clear of any and all encumbrances. Seller agrees to deliver a good and sufficient General Warranty Deed properly conveying said property to said Purchaser, and Purchaser agrees, when said Deed is presented, to pay the balance of the purchase price in cash. Default Should the Purchaser fail to consummate this Contract as specified for any reason, except title defects or as noted above, Seller shall have a right to retain said cash deposit as liquidated damages for the breach of this Contract, or Seller may enforce specific performance of this Contract. Closing Purchaser agrees to consummate the sale on or before October 31, 2015. Purchaser accepts the property and improvements in the present condition. Taxes All regular taxes due and payable through the year 2013, are paid by Seller. Taxes for the current year shall be prorated to the date of closing. If Purchaser's use of the property results in rollback taxes, such rollback taxes shall be the Purchaser's responsibility. Special Conditions Purchaser agrees to accomodate Seller at closing, if Seller opts to attempt a "like -kind exchange", as defined in Section 1031 of the Internal Revenue Code of 1986, as amended. Such accommodation shall include the Seller's possible use of a qualified intermediary in the transaction. No minerals are to be conveyed. EXECUTED this day of November, 2014. Seller: Purchaser: PAC CAPITAL HOLDINGS, LTD. CITY OF SANGER 1801 Hinkle Dr., Suite 150 502 Elm St. Denton, TX 76201 Sanger, TX 76266 Phone: 940/891-4223 Phone: 940/458-7930 4j�By: By: John R. Porter Mike Brice Receipt of Earnest money in the amount of $ is hereby acknowledged by the undersigned Escrow Agent on this _ day of February, 20 4, Escrow Agent for Title Resources TOMMY MBA RSHALL & ASSOCIATES Real Estate Appraisers & Consultants Wells Fargo Tower 101 S. Locust, Ste, 600 P.O. Box 158 Denton, Texas 76202 Phone: (940) 243-2387 Fax: (940) 243-5352 robert@tma-appraisal.com www.tma-appraisal.com TMA File: A-14-08-1878 This Appraisal Report is intended to and considered to comply with the reporting requirements set forth by the Uniform Standards of Professional Appraisal Practice. The report presents the data, reasoning, and analyses utilized in the appraisal process to develop the opinion of value. The depth of discussion contained in this report is specific to the needs of the intended user and for the intended use stated herein. The firm is not responsible for unauthorized use of this report. Specific/Extraordinary Assumptions and/or Hypothetical Conditions utilized in the value opinion: ♦ It is a specie assumption of this report that the subject has no environmental or,structural conditions which could adversely affect its marketability or market value. ♦ It is a specie assumption of this report that the subject is not adversely affected by flood hazard area or drainage area other than is indicated in this report. ♦ It is a specie assumption of this report that the land andlor building size reported for the subject are sufficiently correct as to not adversely affect the value opinion. ♦ It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. ♦ It is a specific assumption of this report that the intended usage meets or exceeds the specifications setforth by any applicable zoning ordinance. REFERENCE: City of Sanger SUBJECT PROPERTY: 2.0000 acres of vacant land East side of Keith Drive, north of FM-455 Address not yet established Sanger, Texas 76266 DATE OF REPORT: DATE OF VALUE: INTENDED USE: INTENDED USER: September 22, 2014 September 21, 2014 Purchase analysis City of Sanger Mr. Mike Brice City Manager 502 Elm Street Sanger, Texas 76266 Phone: 940-458-7930 Email: mbrice@sangertexas.org DEFINITION OF MARKET VALUE The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. 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: a. buyer and seller are typically motivated; b. both parties are well informed or well advised C. a reasonable time is allowed for exposure in the open market d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e. 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. PURPOSE OF APPRAISAL Estimate the market value of the fee simple interest of the subject property in "as is" condition as of the date(s) of value subject to the Specific/Extraordinary Assumptions and/or Hypothetical Conditions, and Assumptions and Limiting Conditions set forth. SCOPE OF WORK Conduct a visual survey of the subject, regional area and market area. Analyze secondary data sources to assist in assessing market conditions, zoning and tax information in the market area. Estimate the highest and best use of the property. Research market data of comparable properties confirmed by participants in the regional market area. Develop a credible opinion of the defined value for the subject property utilizing the applicable approaches to value. Present the opinion in the appropriate format. COMPETENCY OF APPRAISER Robert Lewis received his MAI designation in 1990, has been active in real estate since 1978, and in real estate appraisal since 1982 when he received a Masters degree in real estate appraisal from Texas A&M University. He received his real estate broker's license in 1981. He has 13 years of experience with C.L. McDade & Company, has been an Appraisal Manager for (1) the 3rd largest bank holding company in Texas, (2) Arthur Andersen & Co., (3) a regional county appraisal district, and has appraised properties in California, Florida, Oklahoma, Georgia, Arkansas, Louisiana, Kansas, New Mexico and Texas. His expertise and competency encompasses 25+ years of appraisal in all property types. In addition to industrial, retail, and office properties, Robert currently specializes in gas station convenience stores, day cares, full/express/self service car washes and lube centers. Tommy Marshall has been in real estate appraisal since 1984, and has experience with a variety of property types in Texas and Oklahoma including golf courses, resorts, churches, manufacturing plants and rural water Co-Ops. Other property types include multi -family residential, commercial and residential subdivisions, hotel/motel, farm/ranch, industrial, retail, office facilities. TABLE OF CONTENTS TRANSNUTTAL ReportType..................................................................................................................................................Transmittal Specific Assumptions and/or Hypothetical Conditions............................................................................Transmittal IntendedUse/Intended User........................................................................................................................Transmittal Definitionof Value......................................................................................................-..............................Transmittal Purposeof Appraisal....................................................................................................................................Transmittal Scopeof Work..............................................................................................................................................Transmittal Competency of Appraiser .............................................. Table of Contents SECTION A - SUBJECT PROPERTY 0VERVIE W ....................................................................... Transmittal ExecutiveSummary.......................................................................................................................................................... 1 Photographsof the Subject Property...............................................................................................................................2 Historyof the Subject Property ....................................................................................................................................... 3 SECTION B - SUBJECT PROPERTYANALYSIS SECTION C - VALUATIONANALYSIS Approachesto Value.......................................................................................................................................................I SalesComparison Approach..........................................................................................................................................2 ComparableLand Sales................................................................................................................................................3 Location Map - Comparable Land Sales......................................................................................................................7 Adjustment Grid - Comparable Land Sales.................................................................................................................8 Analysis of Comparable Land Sales............................................................................................................................9 Value Conclusion by the Sales Comparison Approach........................................................................................... 10 Reconciliation and Final Opinion of Value................................................................................................................ 11 Marketing Period/Exposure Time............................................................................................................................... 12 Assumptionsand Limiting Conditions........................................................................................................................ 14 Certificationof the Appraiser...................................................................................................................................... 16 SECTION D - ADDENDA Appraiser Qualification Appraisal Assignment Letter SECTION A SUBJECT PROPERTY OVERVIEW EXECUTIVE SUMMARY TMA File: A-14-08-1878 Property Type: Vacant land 7� Address: Address not yet established Sanger, Texas 76266 County/State: Denton County/Texas Location: East side of Keith Drive, north of FM-455 Legal Description: Out of Tract 57, Tierwester Survey, Abstract Purpose of Appraisal: Estimate the market Date of Report: September 22, 2014 value of the fee simple interest in "as is" condition Date of Value: September 21, 2014 Appraiser: Robert Lewis Estimated Marketing Time: 12 Months Tommy Marshall & Associates SITE DATA IMPROVEMENT DATA Land Area (Acres): 2.0000 gross Improvements: No known structures of contributory value Zoning: Not zoned Land -Bldg Ratio: None Shape: Irregular Highest and Best Use: In "as is" condition; commercial usage, as demand warrants Topography: Basically level PLAT MAP 12B32J 1RBJ25 Road Frontage: Interior location; average �595 frontage .34 I 66 (- Soil Conditions: Assumed adequate; rely on geo-technical report non 8536 r Q 9 NA a Utilities: All available with public water/septic AWEDR Flood Plain: Not adversely affected, FEMA 1169J W4�P4^�4F 9 8 39°6 38 B '66 13f}O6 82 5dfi 5 2d N TtlN D av/ 5d5 5 0 5328 332 6]435 51 t� 48121C 0210 G April 18 2011 , p > VALUE CONCLUSION Market Value Estimate: $175,000 ($2.01/SF) TOMMYMARSHALL & ASSOCIATES Section A - Page I TOMMYMARSMALL & ASSOCIATES Section A - Page 2 HISTORY OF THE SUBJECT PROPERTY As required by the Code of Professional Ethics and Standards of Professional Appraisal Practice established by the Appraisal Institute, the appraisal report must consider and analyze any current agreement of sale, options, listings, and any prior sales within the past three years. This analysis should reasonably disclose and verify: a. Grantor(s) - Grantee(s) b. Sale Date(s) c. Sale Price(s) and terms of financing, discounting the sale to a cash equivalent, when necessary. d. Any interrelated parties to each transaction. The subject history is reported in compliance with USPAP and no other pertinent information is known other than is reported below. The history should not be used in lieu of a title search and is not a guarantee to the chain of title. A title policy which should detail any easement and/or deed restriction was not provided. It is a specific asstnnption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. According to the Denton County Appraisal District, the deed history of the subject property is Account(s) out of 56489 Date Type Seller Buyer Deed Numher Sale Price John Pac 1/23/2001 Warranty Deed Porter Auto Group 01-6340 Unavailable Sales Ltd Moore, John 5/SJ1999 Carr Of Major % Porter . 99- Unavailable Wd Thomas Auto 0044389 Safes Moore Details of the 01/23/01 transaction are not known. The current entity has held title for more than three years, and has made an offer to sale for $2.00/SF, or $174,240. Based upon current market data, the offer price is considered to be within current market levels. The property does not appear to be listed for sale or lease. No other historical data is known. TOMMYMARSHALL & ASSOCIATES Section A - Page 3 SECTION B SUBJECT PROPERTYANAL YSIS REGIONAL OVERVIEW The 2008-2009 recession was one of the most severe economic downturns that the U.S. has experienced. However, the Dallas -Fort Worth economy exhibits above average performance with an Unemployment Rate of 6.5%, in line with the overall Texas' unemployment rate as of April 2012 of 6.5%, well below the national average of 8.2% for that period. Regional Population Total eet January 1, 2010 61729,800 PERSONS Jan 1 - Doc 31, 2009 Growth: 90,170 1tl 2dti9 2010 The Dallas/Fort Worth area continues to build on the recovery of the office market that began in 2010 as the rate of job gains accelerates in 2012. Employment growth is among the highest in the nation with nearly one-third of the new hires being in the office market sector. The Metroplex continues to draw major financial services firms to lease space in the area. JPMorgan Chase & Co, American Home Mortgage, and Merrill Lynch & Co. have leased a total of 630,000 square feet in the last 12 months. The Fort Worth area is projected to outperform the area as a whole as vacancy levels in some submarkets fall below 12 percent. The surge in demand throughout Fort Worth is partially due to the growing healthcare presence. US Health Group, AHC Management Co., and HCA Patient Account Services are among several that have leased in Fort Worth within the expanding healthcare industry. Forbes ranked D/FW as the sixth fastest recovering area in the country, and net absorption rates are positive. The area remains one of the superiorly positioned markets in the nation. Sales Trends $140 S $1W $ $120 a v $110 $100 07 00 00 10 11 ®Auld., Pent ='r.•., EI/ecOve emit $22 $10 Id $13� $10 ". 00 W 10 11 12' Sources: Marcus & Millichap Research Services, Costar Group, Inc., RCA TOMMYMARSHALL & ASSOCIATES Section B - Page I REGIONAL OVERVIEW MAP > �+Q .. ' }- M � } R Ala -= Z�3Y _ G =� C,. F. �.P El [9 Cl �_� M � I( Q i Y �C f 3 C � yy'�" f . • 3 �. V '. t��r� C f^� "� - O Q �` !/ -per, •-I �l �a � -' t` - I cu Lw An . . O. 5 p 3 G ,(f•cam C Igj r��1 --L O L] Q'-C per' Z J �I u OS C �` 'r•a-art?=�) �}-3c 6 CD ... i - LJ.I� 44, z , m Ell ZD o V ME q ��' • �i 4� V ... ? lal Ltff'/] i� < ,11 =. 61- �"--...) l CD ' ;/T `'- .. T�s f+ V •".�,c}i .emu o r d f,•`: 4 �- C?o �. f �' • c. J d O d6 W C -�q �F(j� VIA OSl '� II 'A I I '.� rOJ f?o o t �I a I =�� = %•G::;aml ae ...: }off?';"" �t (t-'S CD TOMMYMARSHALL & ASSOCIATES Section B - Page 2 MARKET AREA ANALYSIS The subject market area is considered to be the area within the City of Sanger in the northwestern portion of Denton County. The market area is part of the Dallas Consolidated Metropolitan Statistical Area (CMSA). Major arterial routes and proximity to the CMSA are the primary economic generators for the area. Population 2000 2010 % Change County 432,976 662,614 53.0% United States 281,421,906 309,349,689 9.9% Median Household Income 2000 2010 % Change County $58,216 $67,892 16.6"% United States $41,994 $50,046 19.2% Median Home Value 2000 2010 % Change County $133,200 $179,800 35.0% United States $119,600 $185,400 55.0% Source: U.S. Census Bureau "Census 2010 Quickfacts" REAL ESTATE LEASE RATE AND VACANCY RATE TRENDS Vacancy Rate Trends Rent Trerds cartfeuten' umapum --comessrons —Meta :'IW4p05nR, 2% �Askhg Ponl --a geatlry Rent yawl 12% to 6% a /� 16% pp d 3S fl, l L 7b as 9 G 16% v 6% `.1 o ffi 7% �10 d N% ¢ w 31 3Y ,,..,' 4% 00 89 10 1 12 6% 0 09 10 11 12' � 99 10 II It' 10% 2 3 91 0 94 gi 9d 00 92 a Cg 10171� Apartments Industrial Vacancy Rate Trends Rent Trends Vacancy Rate Trends Rent Trends 26% —mata Nes -�. MRe0 States 9% rAsking Rent .-, Mike, Rent ®Meta lWitadstates +•Asking Pont -"+ofeatMe Rent 22% u% S d 5 4% OK •..l. 12% 4% IB% � � r d „k r 10% .9% % 09 10 It IY 08 09 10 tI 12' 6% W 00 10 11 1 'g,6 00 09 10 11 12' Office Retail Source: Marcus & Millichap Local Market Reports, December 2012 The local real estate market areas appear to be stabilized to improving as illustrated by the lease and vacancy rate trends in the property types of apartments, industrial, office, and retail indicated above. ITOMMYMARSHALL & ASSOCIATES Section B - Page 3 11 MARKET AREA MAP ram unue_V1 -u+ , u=I=uel ulI i _W L r¢ _ R, sllroad3=eve ' tr 2 ..-, P t-tki=F-2��=i FEZ i-kYkt3'16 G3-iLL, Li=il i YB iC7p��j { '] D C7 L�/`�� IC i1 � ? �nd L-'$ I1 �yak LL � 4�5 llc _ J �r � o f—p � 1ZIQ rr � --� JL -- - II- TOMMYMARSHALL & ASSOCIATES Section B - Page 4 SITE ANALYSIS The site consists of 2.0000 gross acres of land area located on the east side of Keith Drive, north of FM-455 near the City of Sanger. The micro -locale is a developing commercial/residential area considered to be of average development intensity. The interior location offers average fi-ontage on one secondary roadway. Traffic levels are considered below average. The site frontage provides average visibility and exposure for commercial usage. The site is irregular and is basically level. The fi•ontage-to-depth ratio and ingress/egress is considered average for commercial usage. The site is considered to offer adequate public water/septic utility availability for commercial usage development. A survey was not provided. The Denton County Appraisal District is the source of the land size. It is a specific assumption of this report that the land and/or building size reported for the subject are sufficiently correct as to not adversely affect the value opinion. The site does not appear to have any adverse easements or encroachments. It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. The surrounding land uses are primarily vacant land and commercial/residential and includes vacant land to the north and east, single-family residential to the west, and commercial to the south. II AERIAL VIEW OF SITE AREA II TOMMYMARSHALL & ASSOCIATES Section B - Page 5 PLAT MAP 128327 128325 M585 56374 56 6 56489 4 t8493t 77677 8 86 C q a0 wEXC AAGEbR X 19 B 11693 53746 39 WC0APMAN D(p 45 ss6 245 54 245 824 56 5 8 52' 5 545 24 - 457 545 3328 332 67235 5 139PAB 785 \ - NPEA7DN RD The site appears to be not adversely affected by flood hazard area. It is a speck assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. The applicable map is FEMA 48121C 0210 G, April 18, 2011. FLOOD PLAIN MAP Mai- 4-IMM a . �..� o N�YIVHRI may .ck r�rn.m,J r, Bi3�uurnl vT, `rc j •� J ,�S AY IIN ON14k1tlIl TILL At v 1�4< ro y ft Ili y I n„ f� t �:LL I+li 'v: •�iJT i rF I�:� 1 a f �f rVi641LW® Summary of Site Analysis The subject site is situated in a developing commercial/residential area considered to be of average development intensity. The interior location offers average fiontage on one secondary roadway. Traffic levels are considered below average. The surrounding land uses are primarily vacant land and commercial/residential. The fi•ontage-to-depth ratio and ingress/egress is considered average for commercial usage. The site is considered to offer adequate utility availability in sufficient quantities for commercial usage development. Considering these influences, the site is considered to offer average utility characteristics for commercial usage. TOMMYMARSHALL & ASSOCIATES Section B - Page 6 ZONING The City of Sanger regulates land use within its municipal jurisdiction by the implementation and enforcement of zoning ordinances. Zoning ordinances purportedly screen and control urban development, promote consistency, compatibility and contribution to the community, and define the quality and character of the neighborhood area. The zoning is reported to be not zoned. Any subject iniprovenients are considered a conforming usage of the site. It is a speck assumption of this report that the intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance. ZONING MAP Civumiis MF-1Muld-family Residental FP Floodplaln Overlay MF-2 Multi -family Residental I. A AgKsilfural Dssidot MH-2 Mo61e Home SF-3 Single Family Resv.denLa' ! B-1 Business Disnicl { SF-6 Single Family Resldemha tom^-', 8-2 Business Dlstricl SF-7 Single Family ResAeMW 8-3 Central Business 0 strict _-' SF-8 Single Family Res"denflal 1-1 Industrial Distkc j, SF-2 Single Family Residential 1 1-2 Heavy fndasfnai DisW-1 SF-10 Single Fami'iy Resdenlal PD Planned Development 2-F Two family Residential TOMMYMARSHALL & ASSOCIATES Section B - Page 7 IMPROVEMENT ANALYSIS The subject site has no known structures of contributory value. The land -to -building ratio is none. No functional, environmental or structural problems other than previously described or that are atypical of this market area are noted. II VIEW OF IMPROVEMENTS II TOMMYMARSHALL & ASSOCIATES Section B - Page 8 TAX ASSESSMENT ANALYSIS According to the Denton County Appraisal District, the subject property is within the tax jurisdictions of the City of Sanger, Sanger Independent School District, and Denton County and assessed as Account(s) out of 56489. Segment Size Assessed Value * AV/unit Land Improvements 59.7400 2,186 $374,447 $42 817 $6,268 /Ac $19.59 / SF Market Assessed Value A Assessed Value 59.7400 59.7400 $417,264 $62 007 $0.16 /SF $1 038 /Ac Tax Jurisdiction Tax Rate Assessed Value Tax Liability City School County $0,63304900 $1,47700000 $0.27390000 $417,264 $417,264 $417,264 $2,641 $6,163 $1,143 Market Tax Liability Ag Tax Liability $2.38394900 $2.38394900 $417,264 $62 007 $9,947 $I 478 The estimated tax liability for the subject is approximately $1,500 annually. HIGHEST AND BEST USE ANALYSIS The concept of Highest and Best Use can be defined as being: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value."t The subject site is situated in a developing commercial/residential area considered to be of average development intensity. The interior location offers average frontage on one secondary roadway. Traffic levels are considered below average. The surrounding land uses are primarily vacant land and commercial/residential. The frontage -to -depth ratio and ingress/egress is considered average for commercial usage. The site is considered to offer adequate utility availability in sufficient quantities for commercial usage development. Considering these influences, the site is considered to offer average utility characteristics for commercial usage. Therefore, the highest and best use of the subject site in "as is" condition is considered to be for commercial usage development, as demand warrants. 'The Appraisal of Real Estate, Thirteenth Edition, Appraisal Institute, 2008, Pages 277-278 TOMMYMARSHALL & ASSOCIATES Section B - Page 9 SECTION C VALUATIONANALYSIS APPROACHES TO VALUE The estimation of value involves a systematic process in which the problem is defined; the work necessary to solve the problem is planned; and the data required is acquired, classified, analyzed and interpreted into an estimate of value. In this process, three basic approaches: the Cost Approach, the Income Approach, and the Sales Comparison Approach. When one or more of these approaches is not applicable in the appraisal process, justification is warranted. A brief explanation of each approach follows: In the Cost Approach, the value of the subject site is estimated by comparing it to similar sites that have recently sold or are currently offered for sale. The replacement cost new of the improvements, as determined by comparison to similarly constructed properties, is then estimated. Depreciation from all sources is determined and subtracted from the replacement cost new of the improvements, to arrive at their present worth. The present worth of all improvements is added to the estimated site value with the result being the indicated value by this approach. The age/condition and/or design may render this approach in applicable due to the subjectivity of the estimation of depreciation. The Income Approach is a process in which the anticipated flow of future benefits (actual dollar income or amenities) is discounted to a present worth figure through the capitalization of the net income. Net income is the remainder after deduction of expenses of operation from effective gross income. The steps in this approach include estimating potential gross income by comparison with competing properties and estimating expenses (derived fiom historical and/or market experience) to determine a projected net income stream. The income stream is then capitalized into an indication of value by using capitalization rates extracted from competitive properties in the market or by using other techniques when applicable. The Sales Comparison Approach involves the comparison of similar properties that have recently sold or similar properties that are currently offered for sale, with the subject property. These properties are compared to the subject with regard to differences or similarities in market conditions, location, size, physical characteristics, and any conditions influencing the sale. The notable differences in the comparable properties are then adjusted from the subject property to indicate a value range for the property being appraised. When sufficient sales data is available, these adjustments are best determined by the actions of typical buyers and sellers in the subject's market. This value range, as indicated by the adjusted comparable properties, is then correlated into a final indicated value for the subject property by this approach. The Cost Approach is inapplicable and not utilized since the subject is vacant land. The Sales Comparison Approach is primarily applicable and utilized since the property type is commonly traded in the market area. The Income Approach is considered inapplicable and utilized since the property type is rarely traded for rental income potential. The value estimates as indicated by the applicable approaches are reconciled into a final value estimate of market value. TOMMYMARSHALL & ASSOCIATES Section C - Page I SALES COMPARISON APPROACH This approach to value is also termed the Market Approach and requires the comparison of recent comparable sales to the subject property. The typical unit of comparison used in the market area is utilized in this analysis. The unit of comparison is obtained by dividing the property's sale price by the unit primarily utilized in the market area. Since this approach involves a comparison of physical attributes, adjustments are applied to the comparables for differences that are considered to have an influence on price in the market area. The differences may include financing conditions, market conditions at date of sale, location, size, age/condition, and various other utility attributes. This method is considered highly reliable when sales of an adequate degree of comparability are available. The subject property represents vacant land with no known structures of contributory value. Recent sales of this property type in the regional area are analyzed. The recent sales which are considered the most comparable which are analyzed as a basis for valuation of the subject property are presented, analyzed, and adjusted on the following pages. TOMMYMARSHALL & ASSOCIATES Section C - Page 2 LAND SALE NUMBER 1 Location: West side of IH-35, north of FM-455 Address: Not yet established City: Sanger County/State: Denton/Texas Legal Description: Tract 47, Tierwester Survey, Abstract 1241 AERIAL PLAT U W` IA N Q I 55 "J55 A a IN EXCHAlnFOR,jjj ®� ®1� WCH4PMANDR m x x x SALES DATA DESCRIPTIVE DATA Land Size (Acres): 3 0.95 10 Sale Date: 06/12/13 Zoning: Commercial Sale Price: $2,750,000 Intended Use: Commercial Sale Price Per Acre: $88,850 Shape: Rectangular Sale Price Per SF: $2.03 Frontage: Average Terms of Sale: Cash to seller; market terms Topography: Average; basically level Grantor: Stearman Family Trust Utilities: All available Grantee: Holt Texas, Ltd. Ownership Conveyed: Fee simple Flood Plain: Not adversely affected Deed Record: 2011-59208 Verified By: Appraisal District 84585 TOMMYMARSHALL & ASSOCIATES Section C - Page 3 LAND SALE NUMBER 2 Location: Northeast coiner of Pecan Street and 9`h Street Address: 805 Pecan Street and 502 N. 9`11 Street City: Sanger County/State: Denton/Texas Legal Description: Block 9 Sullivan West Addition AERIAL I PLAT 53310 53196 I M176 I mm 146504 I 146499 I I I M.nf ':I M197 pHCAN ST DESCRIPTIVE DATA SALES DATA Land Size (Acres): 0.1859 Sale Date: 05/13/11 Zoning: Residential Sale Price: $20,500 Intended Use: Investment Sale Price Per Acre: $110,274 Improvements: None Sale Price Per SF: $2.53 Shape: Rectangular Frontage: Above average Terms of Sale: Cash to seller Topography: Average; basically level Grantor: Red River Resources, Ltd. Utilities: All available Grantee: Danny Preas Flood Plain: Not adversely affected Ownership Conveyed: Fee simple Verified By: MLS 11544092; LoopNet 3524819; DCAD 58195 Deed Record: 2011-44209 TOMMYMARSHALL & ASSOCIATES Section C-Page 4 11 LAND SALE NUMBER 3 Location: West side of 7"' Street, north of Locust Street Address: 105 N. 7"' Street City: Sanger County/State: Denton/Texas Le al Description: Tracts 194-195 Bebee Surve Abstract 29 AERIAL PLAT � •„ �, f/B646 ll8649 171 213634 TANGLE TADDN u z= 213635 U703 54)6 •fy' b f-. „K N...'� 58216 61y366'. O G 'Yf30302 3216 m3et 5v2H TSANfERR W211 DESCRIPTIVE DATA SALES DATA Lot Size (Acres): 0.3030 Sale Date: 10/21/08 Zoning: Residential Sale Price: $26,250 Intended Use: Residential Sale Price Per Acre: $86,634 Improvements: None Sale Price Per SF: $1.99 Shape: Rectangular Terms of Sale: Cash to seller Frontage: Average Grantor: Douglas & Marilyn Robison Topography: Average; basically level Grantee: Michael & Carolyn Bucher Utilities: All available Flood Plain: Not adversely affected Ownership Conveyed: Fee simple Verified By: MLS 11040540; DCAD 60387+ Deed Record: 2008-114954 TOMMY MARSHALL & ASSOCIATES Section C - Page 5 LAND SALE NUMBER 4 Location: Northeast corner of Plum Street and 10"' Street Address: Not yet established City: Sanger County/State: Denton/Texas Legal Description: Block 15 Sullivan West Addition AERIAL PLAT _ 69 6 38 W933 9731 ur 5); � Y �h FPA r spa � .1 ID6560 VAAi Y 199937 o w 216 srPaxr� DESCRIPTIVE DATA SALES DATA Lot Size (Acres): 1.0900 Sale Date: 07/20/07 Zoning: Commercial Sale Price: $149,000 Intended Use: Apartments Sale Price Per Acre: $136,697 Shape: Rectangular Sale Price Per SF: $3.14 Frontage: Above average Terms of Sale: Cash to seller Topography: Average; basically level Grantor: Cherry Ann Beard Utilities: All available Grantee: Eri-Pate Plaza, LP Flood Plain: Not adversely affected Ownership Conveyed: Fee simple Verified By: LoopNet 1481408; Appraisal District 58419 Deed Record: 2007-89472 TOMMYMARSHALL & ASSOCIATES Section C- Page 6 LAND SALE NUMBER 5 Location: North side of Austin Street, east of IH-35 with frontage on Church Street Address: Not yet established City: Sanger County/State: Denton/Texas Legal Description: Lot 4, Block A Clear Creek Industrial Park Addition AERIAL PLAT 2 1 I� Z 56915 0 rq 244597 3 I C M939 M834 AR CR K 1 DUSTftIAL PARK BK 2M588 V4590 J ,��'' "'�.;„,�-' - •� CHISUM TRAILS - N 2H569 1 ......... N E 408 N O 11]520 2 90 761 1 !DESCRIPTIVE SALES DATA DATA Lot Size (Acres): 2.7200 Sale Date: 04/28/06 Zoning: Commercial Sale Price: $355,000 Intended Use: Commercial Sale Price Per Acre: $130,515 Shape: Rectangular Sale Price Per SF: $3.00 Frontage: Above average Terms of Sale: Cash to seller Topography: Average; basically level Grantor: Belle F. Lawson Utilities: All available Grantee: Sean McDonald Flood Plain: Not adversely affected Ownership Conveyed: Fee simple Verified By: LoopNet 911315; Appraisal District 244590 Deed Record: 2006-52581 TOMMYMARSHALL & ASSOCIATES Section C - Page 7 Location Map - Comparable Land Sales _ I_ - 'F1=ueip�[�II �, �f�0V�fi[I�� ` rrfi� - L 0 -f L I i 4; I I o-- -"-- R��IKzsa-cl w Z YY�i hY 19 = 4l C - 11 �.3'kswrxl=s-z-r%ccasnt f (.� ` _ J ir i Elr-17=� Ley`%. rf , r _ me[ 1 L J" �ry � m � �a "m If V C —U P, ( u 0 Q 0 Y a TOMMYMARSHALL & ASSOCIATES Seetion C - Page 8 Adjustment Grid - Comparable Land Sales SUMMARY AND ADJUSTMENT GRID Date of Sale: Sale I 06/12/13 Sale 05/13/11 Sale3 10/21/08 Sale9 07/20/07 Sale 04/28/06 Land Area (Acres): 30.9510 0.1859 0,3030 1.0900 2.7200 Utilities: All available All available All available All available All available Topography: Basically level Basically level Basically level Basically level Basically level Zoning: Commercial Residential Residential Commercial Commercial Improvements: None None None None None Flood Hazard Area: Not affected Not affected Not affected Not affected Not affected Shape: Rectangular Rectangular Irregular Irregular Rectangular Frontage: Average Above Average Average Above Average Above Average Intended Use: Commercial Investment Residential Apartments Commercial Sale Price: $2,750,000 $20,500 $26,250 $149,000 $355,000 SP/Acre: $88,850 $110,274 $86,634 $136,697 $130,515 SP/SF: $2.04 $2.53 $1.99 $3.14 $3.00 Property Rights Conveyed Adj.: 0% 0% 0% 0% 0% Adjusted Sale Price: $2.04 $2.53 $1.99 $3.14 $3.00 Financing Terms Adj.: 0% 0% 0% 0% 0% Adjusted Sale Price: $2.04 $2.53 $1.99 $3.14 $3.00 Conditions of Sale Adj.: 0% 0% 0% 0% 0% Adjusted Sale Price: $2.04 $2.53 $1.99 $3.14 $3.00 Market Conditions (Time) Adj.: 0% 0% 0% -10% -10% Adjusted Sale Price: $2.04 $2.53 $1.99 $2.82 $2.70 Location: -10% 0% 0% -10% -10% Frontage: 0% -10% 0% -10% -10% Size: 10% -15% -10% -10% 0% Improvements: 0% 0% 0% 0% 0% Zoning: 0% 0% 0% 0% 0% Flood Hazard: 0% 0% 0% 0% 0% Utilities: 0% 0% 0% 0% 0% Shape/Topography: 0% 0% 0% 0% 0% Total Adjustment Percentage: 0% -25% -10% -30% -20% Indicated Value: $2.04 $1.90 $1.79 $1.98 $2.16 Average = $1.97 3xcluding Outlier Average = $1.97 Median = $1.98 3xcluding Outlier Median = $1.98 TOMMYMARSHALL & ASSOCIATES Seetlon C- Page 9 Analysis of Comparable Land Sales The adjustments of the comparables land sales utilized in the adjustment grid are discussed below. The unit of comparison developed in this approach from the comparable sales to estimate value is considered to be one primarily utilized by market participants for this property type. Property Rights Conveyed: Each of the comparable sales involved the sale of a fee simple interest. When considering the subject property rights appraised, adjustment for property rights conveyed of the comparables is not warranted. Financing Terms: All of the sales are reported to have market terns or cash to seller transactions and therefore adjustment consideration is not warranted. Conditions of Sale: All of the sales utilized in this analysis are reported to be arms -length transactions. Therefore, none of the sales warrant adjustment consideration for conditions of sale. Market Conditions: Although the market area experienced a notable decline in development activity and sale transactions in the late 2000's, the market and regional area has experienced a stabilization or improvement in market conditions since 2010. All of the sales are considered transacted in current market conditions and do not warrant adjustment consideration. Location: The subject site is situated in a developing commercial/residential area considered to be of average development intensity. The interior location offers average frontage on one secondary roadway. Traffic levels are considered below average. The surrounding land uses are primarily vacant land and commercial/residential. The frontage -to -depth ratio and ingress/egress is considered average for commercial usage. The site is considered to offer adequate utility availability in sufficient quantities for commercial usage development. Considering these influences, the site is considered to offer average utility characteristics for commercial usage. Land Sales 1, 4, and 5 are considered superior in micro -locale and/or roadway and warrant downward adjustment. The remaining sales are considered similar to the subject and do not warrant adjustment consideration. Frontage: The subject site is considered to offer average frontage. The sales range is Average - Above Average. Land Sales 2, 4, and 5 are considered superior and warrant downward adjustment. The remaining sales are considered similar to the subject and do not warrant adjustment consideration. Size: The subject size consists of 2.0000 gross acres of land area. The sales size range is 0.1859 - 30.9510 acres of gross land area. Land Sale 1 is considered larger and warrants upward adjustment consideration. Land Sales 2-4 are considered smaller and warrant downward adjustment. The remaining sales are considered similar to the subject and do not warrant adjustment consideration. Improvements: The subject site is considered to have no known structures of contributory value. Alt of the sales are considered similar to the subject and do not warrant adjustment consideration. Zoning: The subject site zoning is not zoned. All of the sales are similarly zoned and/or were purchased for similar usage and/or have similar highest and best uses and do not warrant adjustment consideration. TOMMYMARSHALL & ASSOCIATES Section C-Page 10 Flood Hazard: The subject site appears to be not adversely affected by flood hazard. All the sales are considered similar to the subject and do not warrant adjustment consideration. Utilities: The subject site is considered to offer adequate public water/septic utility availability for development to its highest and best use. All of the sales are considered similar to the subject and do not warrant adjustment consideration. Shape/Topography: The subject site is basically level with adequate shape for development. All of the sales are considered similar to the subject and do not warrant adjustment consideration. Value Conclusion by Unit of Comparison The unadjusted range of the comparables is $1.99 - $3.14 per square foot of gross land area. The adjusted range of the comparable sales is $1.79 - $2.16 per square foot with an average adjusted sale price of $1.97 and a median of $1.98. When the outliers are excluded, the range is $1.90 - $2.04 per square foot with an average of $1.97 and a median of $1.98. Land Area (Acres) SP/SF Value Indication 2.0000 x $1.95 = $169,884 2.0000 x $2.05 = $178,596 Value Estimate $175 000 Value Conclusion of by Sales Comparison Approach The estimated market value of the fee simple interest in the subject property in "as is" condition is $175,000. TOMMYMARSIIALL & ASSOCIATES Section C-Page 11 11 RECONCILIATION AND FINAL OPINION OF VALUE Cost Approach Inapplicable Sales Comparison Approach $175,000 Income Approach Inapplicable The Cost Approach utilizes replacement cost estimated by using actual costs for comparable facilities and/or Marshall and Swift Valuation Services. Indirect costs associated with property are also determined. The land value is estimated by analyzing current land sales within the area. The estimated land value is added to indicate the value estimate by this approach. The Sales Comparison Approach is considered a generally reliable method because the units of comparison are market based. The units of comparison are direct, which renders the comparison highly indicative of market behavior and the primary approach utilized by market participants. The Income Approach is generally considered to be an appropriate valuation method when the property has rental income -producing potential. The potential gross income, stabilized vacancy rate and operating expenses are estimated from market data. The Cost Approach is inapplicable and not utilized since the subject is vacant land. The Sales Comparison Approach is primarily applicable and utilized since the property type is commonly traded in the market area. The Income Approach is considered inapplicable and utilized since the property type is rarely traded for rental income potential. The value estimates as indicated by the applicable approaches are reconciled into a final value estimate of market value. Giving consideration to the applicable approaches, the estimated market value of the fee simple interest for the subject property in "as is" condition subject to the Specific/Extraordinary Assumptions and/or Hypothetical Conditions, and Assumptions and Limiting Conditions as of September 21, 2014, is: FINAL OPINION OF VALUE OF THE SUBJECT PROPERTY - - ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS - - - - $175,000 - - We appreciate the opportunity to provide this appraisal for you. Should you have any questions regarding the appraisal, contact the fnrn at (940) 243-2387 or robert@tma-appraisal.com. Respectfully submitted, TOMMY MARSHALL & ASSOCIATES — Tommy Marshall, MSA, Principal Robert Lewis, Associate TX #1322676-G TX-1321989-G tommy@tma-appraisal.com rober•t@trna-appraisal.com TOMMYMARSHALL & ASSOCIATES Section C - Page 12 MARKETING PERIOD/EXPOSURE TIME Per USPAP the exposure period for the subject property must be analyzed. Five factors must be considered in the exposure period, the ability of those marketing the property, the type of property, the listing price, the size and location of the market and the comparability of available market data. An adept marketer will tend to move the property in a shorter period than will an average one and an inept marketer may require twice as much. Exposure period must be assessed in terms of whether the property was originally listed reasonably close to its true value as perceived by the market. Any property listed significantly above its true value will tend to attract no interested parties due to the perception that it is a waste of time pursuing its purchase. Further, a property listed noticeably below the market's perception of the value will tend to sell in a shorter period than may otherwise be required and therefore distort the concept of "reasonable marketing period". A study by M/PF, a real estate market research firm in Dallas, polled real estate brokers as to the "reasonable marketing period" for various types of real estate. The response was 9 - 12 months. Implicit in this response is that the property is listed reasonably close to the market's perception of its true value. Historically, purchasers of any property which is considered by the market to have value, are available regardless of product oversupply, availability of financing or lack thereof. The definition of market value specifically requires that there exists a potential buyer and potential seller, each acting prudently and knowledgeably and implies a consummation of a sale. Therefore, an additional factor to be considered in analyzing the marketing period is the size and location of the market. For very large industrial properties or for very specialized properties such as petrochemical refining, large granaries, etc., the market may be relatively small, specialized and national or international rather than local or regional. More typical real estate such as apartments, retail, office and vacant land has a market that is local, regional national or international implying a shorter marketing period and exposure time. The date of the comparable sales must be considered. If no data is available to indicate current expectations of current market conditions and is only available for market conditions unlike current conditions, the value indicated by the data may not necessarily reflect current expectations and the analysis must include these circumstances. Properties similar to the subject in the market area are marketable to a wide group of potential purchasers in the local region, state, and nation. Exposure time is considered to be twelve months. Without exception, all real estate offices contacted expressed, if offered at or near market value and had the property been correctly exposed to the market for the past twelve months, the property should sell for a reasonable price. After development of the preceding pages of market data, it is considered that had the property been offered at or slightly above the market value conclusion an exposure period from 9 - 12 months is considered necessary for the property to potentially consummate a sale closer to the appraised market value. An exposure period of twelve months or less is considered applicable for the subject property. TOMMYMARSHALL & ASSOCIATES Section C - Page 13 ASSUMPTIONS AND LIMITING CONDITIONS 1. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report. 2. The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report. 3. Responsible ownership and competent property management are assumed unless otherwise stated in this report. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report. 9. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been reported, stated, defined, and/or considered in this appraisal report. 9. It is assumed that all required license, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based. 10. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report. It. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report. TOMMYMARSHALL & ASSOCIATES Section C-Page 14 11 12. The firm is not qualified to detect hazardous waste and/or toxic materials. Any comment by the firm that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of enviromnental assessment. The presence of substances such as asbestos, urea - formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The descriptions and comments are the result of the routine observations made during the appraisal process. 13. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with disabilities act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property's value, marketability, or utility. 14. Any proposed improvements are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications. 15. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 16. Possession of this report, or a copy thereof, does not cagy with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the firm, and in any event, only with proper written qualification and only in its entirety. Speciclextraordinmy assumptions and/or hypothetical conditions utilized in the value opinion: ♦ It is a speck assumption of this report that the subject has no environmental or structural conditions which could adversely affect its marketability or market value. ♦ It is a speck assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report ♦ It is a specific assumption of this report that the land and/or building size reported for the subject are sufficiently correct as to not adversely affect the value opinion. ♦ It is a speck assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. ♦ It is a speck assumption of this report that the intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance. TOMMYMARSHALL & ASSOCIATES Section C-Page 15 11 CERTIFICATION OF THE APPRAISER We certify that, to the best of our Imowledge and belief. 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are personal, unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and we have no personal interest or bias with respect to the parties involved. 4. The compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 5. The appraisal is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 6. The analyses, opinions, and conclusions are developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. 7. We have made a personal inspection of the property that is the subject of this report. 8. 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 and the Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. As of the date of report, I, Tommy Marshall, am a State Certified General Real Estate Appraiser. 11. As of the date of report,l, Robert Lewis, am a State Certified General Real Estate Appraiser. 12. Tommy Marshall & Associates has not appraised the subject property in the past three years. 13. The value estimate is not valid unless this certification is included in the appraisal. TOMMY MARSHALL & ASSOCIATES Tommy Marshall, MSA, Principal TX #1322676-G tommy@tma-appraisal.com TOMMYMARSHALL & ASSOCIATES Robert Lewis, Associate TX-1321989-G robert@tma-appraisal.com Section C-Page 16 SECTION D ADDENDA APPRAISER QUALIFICATION - Page I of 5 QUAIJUICA PIONS OF TOI47MY MARSHALL Experience: • 1984 to presunt, Tommy NlarallJtll hn4 bt:en un- aged in independent lieu uppralsin, ind I'eoal calale C4)Y1Srl ltltlOJlti, ownCr or Vottliny Mlalrlhall & Avso6ks, Rtiill I'state App"a1sel"s mid (S)I1SUlt'ams. = GQI)e'ally, the n'ade a cn iwhidvs (11C Dallosil t- WOCrth ASA to Nol'lla C;entlal i©XaS. A1praisalS havc also becli pri- ornied In K9nsas. Florida,. Missouri, II1ditalla, 01clahollin, !llld h9ississippi, Since 1992, most work has been in the. North C:cnvrl Texas aaul se4lhrru Ctklahonsa alerts. Varied 1pesufre;d property have Ireell appJaiscd whiell includes special purpasc propct'tks including goli com',os, rosor#x, cllurchcs, mtunll.:cWrin plants and rural Nvaler Co-Ops. 061tcr properties such ns iarin and ranch, residoolial subdivisions, Jnixr_.d use developmems, ofl'tc,o ladldmgs, ilpktl'(Inell{[, retail complexes, industrial Compltxe.', hotels, motels, bank hllild Jags unit Single-Ialllly pl'oputics. • C:llelltsS@r1'edi❑clude enl'pllr2tlf011S; altOCIDCYS,estates; flnmwiaLaI1$lllnlltfns, ]ItdJVR1lI1Sls, altdl governmunt'd agencies_ C, ilah;led i11U1 SS r6'S-tl n51JdY Cx1R'rr Vr C1nC S in i' euteral Com is, District Collis, County CAlll'ts, us WCII J41 Iemify911b Lit Number of CdtnnnlS9in11L•ILC hcal'Ings for ell➢Incilt donlailt, Lducatiou: • B,A, Degree:, Southeastern State. C.luav€.rsity - Donknt, oklahonla 1<J72 Successfully conlpletvd nuancrons real estate and rek iw.d c:nnrsasslnd seminars sponsnrcd by thelv'atiom6 Association orklas;cr Appraisers, Appraisal Institute, International RiZla of Nay Assneiaii0n, hidepcndcnl Fw. Appraisers and others. _ CWTOniky a dlc5ignat4ll NlasterSenior Appraiscr WSA�, and a member in good sandnlg it) by filio Natiow l Associaticnl of Master Appraiser;,. Professional associntimi merohorships include; Member. Nalioutd;Association orMlastcr Appreaiscrs Nfonrber. National Association or Realtors MMmbet, Vexals Association orRcaltors - Associtq(e Mlember, Flonle Nildors A69cj6aiioii of Cit'Cater Dallas AefiveMetalber, Grrawr Dentat)AVise County Board of [ceul urs Liccnscd Rural listale Hrokor -'texas 1977 (Ucenv: No, 0230242) Staw Certilincl (ieneral Appraiscr - fv.nas (Certification No I X-1 +22626.6) APPRAISER QUALIFICATION - Page 2 of 5 i Texaq zfpprafoer lice"Zing anb (Certification 00arb P.O. Box 12188 Austin, Texas 78711-2188 Certified General Real Estate Appraiser Number: TX 1322676 G Issued: 03/26/2012 Expires: 03/31/2014 Appraiser: TOMMY L MARSHALL i Having provided satisfactory evidence of the qualifications required by the �� Texas Appraiser Licensing and Certification Act, Texas Occupations Code, fi' Chapter 1103, Is authorized to use this title, Certified General Real Estate uglas E. Old ixon Appraiser. Commissioner APPRAISER QUALIFICATION - Page 3 of 5 QUALIFICATIONS OF APPRAISER ROBERT LEWIS lIn Leiiis received the MAI designation in 1990 and has been active in real estate since 1978 and in real estate appraisal since 1982, when he received a Masters degree in real estate appraisal. He has experience with regional and national appraisal firms, large regional batik appraisal departments and in property tax valuation. Professional Affiliations: Received MAI designation - 1990 Received Real Estate Broker's license - 1981 Previous member of Board of Tax Professional Exanners State Certified Real Estate Appraiser - State of Texas Certificate TX- 1321989-G Education South Texas College of Law Texas A&M University - M.A. Real Estate Appraisal Texas A&M University - B.S. Ag. Economics Board of Tax Professional Examiner courses All courses required by Appraisal Institute to receive NLM designation All courses required by Board of Tax Professional Examiners for RPA designation All courses required by Texas licensing board to receive General Appraiser license Researched for publication effects on real estate of oil industry downturn on Caldwell, Tx `'Human Relations Regulations for Managers" - First City Bancorp "Negotiating Skills" Seminar - Rice University Real Estate Appraisal Experience: January 2011 to Present — Owner of North Texas Appraisal Company. Enngagements include the valuation of all types of real estate with a specialty in convenience stores, day cares, tube centers and car washes. January 1998 to January 2011 - Appraiser with C. L. McDade & Company in Dallas, Texas. Duties include valuation of all types of real estate properties. January 1996 to January 1998 - Appraiser with Tonnny Marshall & Associates in Denton, Texas. Ditties include valuation of all types of real estate properties and training appraisers. November 1994 to January 1996 — Chief Appraiser for Cooke County Appraisal District. Duties included being the 7th chief appraiser in 12 years to address numerous problems at a troubled district. November 1992 to November 1994 - Senior appraiser with Denton Central Appraisal District. Duties included valuation of land and connnercial properties for tax purposes. February 1988 to _November 1992 - W-North/Central Regional Appraisal Manager for First City Bancorporation. Duties included establishing North Texas appraisal department, managing 7 employees, real estate appraisal, appraisal review and overseeing appraisal requirements for 28 north central banks. APPRAISER QUALIFICATION - Page 4 of 5 Real Estate Experience — continued (NIr. Robert Lewis) August 1986 to February 1988 - AVP-Appraisal Group II Manager for First RepublicBank - Houston (InterFirst Batik). Duties included real estate appraisal of all property types, appraisal review, Training appraisers and developing an appraisal tracking system. August 1984 to August 1986 - Acting Manager for Arthur Andersen & Co. in Houston. Duties included establishing real estate appraisal department in Houston office. Prepared appraisals in California, Florida, Oklahoma, Georgia, Arkansas, Louisiana, Kansas_ New Mexico and Texas. December 1982 to August 1984 - Staff appraiser for Osenbaugh, Fox & Associates in Houston. Duties included appraisal of all types of property and court testimony for TSU acquisitions. Summer 1981 - Appraisal internship for Charles Rhodes & Associates in Amarillo, Texas. Areas of Specialization: - Day care facilities (over $100M in 45 properties over last 4 years) - Gas station/conveniience store (75 properties over last 6 years) - Full and express service car washes - Lube centers - Mobile homelRV parks - Ground lease valuation - North Texas area horse ranches - North Texas livestock auction barns - Appraisal review Representative Clients: Partial Listing Basil: of America — Dallas, Charlotte Compass Bank — Dallas SIB Bank of Dallas —Frisco, Stillwater Frost Bank— San Antonio American National Bank — Plano. Terrell First Batik — Farmersville Prosperity Bank — Dallas, Houston I" Independent National Batik Wachovia Bank —D/FW Market First National Bank —Durant Northern Trust Bank Gateway Bank — Dallas, Frisco JP Morgan Chase Batik— Dallas, Houston l-r International Batik Bank of Texas Prosperity Bank McKinney Batik One GE Capital Americrest Batik — Dallas Inwood National Batik - Community Credit Union — Plano United Texas Batik CIT Small Business Lending —.Dallas, Denver MetoBauk — Dallas, Houston Colonial Bank United Central Bank First National Bank —Dallas, Omaha First State Batik— Plano, Dallas Hibernia Bank — McKinney, New Orleans Amegy Batik North Texas Certified Development Land Plan — Frisco North Dallas Bank — Dallas, Plano, Richardson Park Cities Batik Regions Batik — D/FW Market TexasBank —Fort Worth Texas Capital Bank - Dallas, Austin, San Antonio Signature Bank— Dallas Parkuvay Bank — Plano Wells Fargo Batiks — Dallas, Houston Wing Lung Bank —Hong Kong, Los Angeles United States Postal Service APPRAISER QUALIFICATION - Page 5 of 5 IGew Zlpiaizer hanoittg aril efftififaYtptl �POarb P.O. Box 12188 Austin, Texas 78711-2188 Certified General Real Estate Appraiser Number: TX 1321989 G Issued: 12109/2013 Expires: 11/30/2016 Appraiser: ROBERT KENDALL LEWIS I f ' Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Texas Occupations Code, Chapter 1103, is authorized to use this title, Certified General Real Estate adlas E ofd Appraiser. Commissioner i I I APPRAISAL ASSIGNMENT LETTER - Page 1 of 2 (IAr+n (� fin Aq•1-064878 Tanury IArl:�i G sLsacl-be AGREEMENT FOR APPRAISAL SERVICES [[I.PARTIES rnnna. na4-gelRra CITY OF SAN13ER Client hamhysgmaatoemplay TOhHMY MARSRALL„ _ ARpr€l9ef 2.P130PFRTPIoeatedih DENTON lonnry. Ctote at TEXAS _. Ideally dosrrlbod is: BTREEI ADDRESS 1E09 FM 4O5 CITY SANDER _ _ _ STATE TX TIPCOUE hsmRnvhwcabad Property_ 3. APPRAISAL REPORT. Appreirershrcrs to prepare, in washing, an Appralsal Report, In cutfwrniry with any prolasalonal wgantslkns to which Appraiser may belong, with an option of value. The purpose of His appraisal In: I PU033e n SRI, n Istato Tar I-1 Lessee In Insurance n Ad valorem Tax ❑ htartgepe Ivagctma ❑ Contreatlaran General Iniorrtmtan jYj one, 4. INTEREST to he aparsRed shall he fXj Era Simple ❑LovsehUM 1-1 Luoull'ad ❑other 5. COMPLETION at the appraisal that he by SEPJEM8ER 362O1A saHlucltpdnhttewea c_xl+mamrcesoc cundihorw boydnd the 0111N101 Pm Appfaiser, the rdtmbsrat copres to Ua plPparedi3 ONE ELECTRONIC COPY iPOFI g. PAYMENTS FOH IIERVICbs; y�x AGREED FEE. Gland option OR pay Appraises a mail leg or I5C0 _ ❑ HOORLY-PERDIEM. CII¢tltaprees to payAPPIaIBa arnsMea ofS pet ❑ burn n day let Harz saturated on Cllonl's banal6lo an eslimah4marlmum at S IXPENSES. Appeaser mall to ad"mally infamous and necessary expenses Twthe following ❑ LITIRATIOR In the event Appraiser is rased union. VO-AnHarity Of 0111MI o, a iesflt shy in cratut or deposition ragardlog the Appraisal Report heein Client agrees to pay an addlhoaa said of$ IOraach plus Appraiser i; usual add W910mary expenses n CANCELLATION. If this aamentera is coneAvl at any time pilot to the dePvery of me ApproW RPpart, Chum agrees to 0.M a fen of RETAINER foe mine amsawd.f 3 lspayable to apply towardtha total tan harem. As surrey din Lavender ship h5 paid on delvaly of the Appmllaal Repot ba fAleal. and Bra poinea in the Cormy o1 Approlur's priacipul fealdanee, The Appraisal's tee is In no way bated on the calling of value of are appalsed Property, tied ail sears homurder are clan and pal regardless of tiro aMolxd o1 Ilia opinion of valee, in ilia eyud it Is necessary to ORVRdy an ammrey to collard any sums due hu idil, MEA agues to pay masomble attorney's Ines and court costs upended by Appeaser. Pago I of 2 5ormAS2 LT--yIinTOTAL" uNlaokdl saHwaa by s le MtYa, YA.-1•Bp0•AWlAOE APPRAISAL ASSIGNMENT LETTER - Page 2 of 2 sT'�Sgletie Fill Aln E AGREEMENT FOR APPRAISAL SERVICES (OONHIlUed) Ia MO. A-140&1&TB 7. AUTHORITY. Appraleer and Ids suaooOraitom art Iwmhy arll,nfla-d to m:Ya on 5Ita rnopacliana of uldriocl property at so masohahlo times to noun stppurang property data, iwllldlng hla not limited to! pulling plans, plpl4, doed„ legal descriptions, abelru05, Ina mu Slid axpcnsu dale :oases, aptfole, NRhnT In MlnrYlaw Client'o altnfrwyri, eamotal", managers, :galas, present and ptospectwm to ants. In be (waited coarse of retavam fulmination, Ia copy seine and use as dOCamRRtadon for 1M Aijushial Report. 10 Ohtalo suety IRIPrmalign Ills, In No Appraf,,,ps ludgmeN may he Qhvant to the pppruicuL CLIENT'S AUTHORITY to "Acute this OORV"N Is luetebY waraded, hnd then them is what oWnec Of the of)[Oct property w has aathonty of Via o\'/nBr in enter Into this agoahmart. 5. CONDITIONS. TIN ApiTti al Repel SIM he-lAalet to Appraisals crndtlians and Ilmllallons stardom Term or as sha n on 03011 enl hereto, The Appaaisal ROOM Will he prepared lur the Sole and axnat a use of the CAlapl, and eha6 not he raptod(cld, pulsed Or ay:rbuted H sry r-m-nc-r W.Atold "ell coTemat of ApluaLsnr, as L Ixnsists of limde sacluts and cemmaicial Sad Ilnaacl%l Intuf nagOW Which ie pdvitaged and ntdidareal slid e%An'ped Imtn discloslde Mohr rUISC(h)(d). D. WARRANTIES Alto INDEAINIT'. Appmiaar dads net may, any W9ia gill or amfailpee of any WDI regarding Ure COMIRMfr 01 lee p19000111, ,rd,ch,,,y of Ipia, ateas par bmnxla'les, muscomical and sinadmal emulitfans of Rio lrrrynrowmarts and Vra,i big 95rement that the A,npralso Rapml repteaente Appeaser's epll4on 06 rAns only, wilhoul QOY warranty that rite property Will fell Ipr flue appraised Yalue. Client -glues to Indemnlly Appraisal, Ills Olnpbyens and independem conhaciors from all 1d*es, suns Pro charges of arty nature "I may also Old of tilts apfeemord. 10. AVORNANAL AGREEMENTS: PLEASE SIGN AND RETURN FEE AGREEMENT. Exemlod fit duplicalo mhoals on his daayy,,- a-PTEkSPR 291hggl 4,_ ournt5lnnalwo ApprolaarSgn.Nlso OF SANGER TOSA1dY MARSHALL .,,, - _CITY f9eft,turtle "'''' ApprahiliNunle 141 SOUTH LOGUST STREET SUTE WO PO SOX'15B D514TOI MPAA pressjr� .yg ARprollawAddm-s. () I — 7 3 V fy9O� Clio Telephone ApplaMlorTelopllow __. Pago 2.of 2 (mif AS2 T—'VAdTOTAL"2W4aU1 soltwae by a Ismndg tic. —140MIAMOOE a{ 3 @'K 0 AGREEMENT FOR ENGINEERING SERVICES Date: November 24, 2014 Client: Mike Brice City Manager City of Sanger 502 Ehn Sheet Sanger, Texas 76266 mbrice@sangertexas.org Project Name and Location: City of Sanger Impact Fee Assessment Feasibility Study —Road Improvements Sanger, Texas As requested, EIKON Consultant Group, LLC (EII{ON) is pleased to submit this proposal for professional engineering services related to the above referenced project. Our proposed Scope of Services, Assumptions, Deliverables, Schedule, and Fee are outlined below. General Proiect Description: We understand that the project includes providing a report of findings for the feasibility of the City of Sanger to assess impact fees to offset maintenance costs for public road improvements. Scope of Services (Exhibit A): Descriptions of Specific Services: • EIKON will prepare a report of findings that will provide information regarding the feasibility for the City of Sanger to assess impact fees for public road improvements. The report will look at the following characteristics: o The City's Thoroughfare Plan o Existing Interlocal Agreements o Existing Impact Fee programs from surrounding municipalities o Existing City of Sanger Operations and Maintenance Budgets for public road improvements o Probable Impact Fee structure for the City • EIKON will meet with the City as required to obtain the information necessary to complete the report of findings. • EIKON will meet with the City/Board to present the report of findings. • EIICON will assist City staff with providing information for the City to create road maps depicting the roads within the study. • We have included two (2) meetings with the City/Board representative(s) to review the draft report of findings and incorporate any changes. Assumptions: Typical Assumptions: • Client will provide necessary information for timely completion of the project. • In the event that additional work is required in connection with this project, we propose to complete the work on an hourly basis at our current rates then in effect. Prior to the start of any new work, we will identify a Scope of Work with associated tasks, submit a budgetary cost estimate, and a proposed work schedule for your approval. Deliverables: • EIKON will deliver 3 bound reports to the client at completion ........................... _...-._._......---- --------------- _..................... I .................. ...._------------------------......------_.._..._._. EIKON Consultant Group, LLC Sanger, Texas o Carrollton, Texas o Tampa, Florida www.eikoncg.com EIKON will submit the report in PDF format Schedule (Exhibit B): The report will be completed in a thnely fashion to meet the Client's requirements. Fee (Exhibit C): Fixed Fee (refer to the scope of services and assumptions): $11,500. Notice to Proceed: EIKON must receive (by fax, email, or regular mail) this signed services agreement. This proposal will remain in effect for 30 days. If this proposal meets with your approval, please sign the attached agreement authorizing our office to begin work. Note that references in the agreement to Exhibits A, B and C are those identified above. Thank you for considering EIKON for your engineering services. We look forward to working with you and your staff on this project. Should you have any questions about this proposal, please do not hesitate to contact us. Page 12 K 0 EIKON SHORT FORM AGREEMENT THIS AGREEMENT is made this 24th day of November, 2014 by and between EIKON Consultant Group, LLC (hereinafter "EIKON") and City of Sanger (hereinafter "Client"). Client and EIKON, for the consideration hereinafter set forth, hereby agree as follows: 1. Services of EIKON - EIKON agrees to provide the professional services described in Exhibit A (hereinafter the "Services"), 2. Schedule of Services - EIKON shall use its best efforts to complete the Services in a timely fashion to meet Client's requirements. If the parties have agreed to a specific project schedule and specific milestone dates, such information will be set forth in Exhibit B. 3. Resoonsibilities of Client - Client shall furnish or make available to EIKON any and all of its records, maps, or other data which are pertinent to EIKON's work. Client shall authorize and assist EIKON in obtaining any such pertinent information from other public and private sources. EIKON may use such information, requirements, reports, data, surveys and instructions in pet -forming its services and is entitled to rely upon the accuracy and completeness thereof. EIKON shall not be held responsible for any errors or omissions that may arise as a result of erroneous or incomplete information provided by the Client and/or the Client's consultants and contractors. 4. Compensation - As compensation for the performance of the Services, Client shall pay EIKON its fees and expenses in accordance with Exhibit C. Payments are due at the address appearing on the invoice within 30 days following the invoice date. Invoices not paid within 30 days will accrue interest from the 3 tat day at the rate of 1.5% per month (12% per annual). 5. Termination - This Agreement may be terminated by either party upon not less than seven (7) days written notice. EIKON shall be compensated for all Services performed until the receipt of notice plus any fees and/or costs reasonably necessary to properly terminate the project. 6. Relationship of Parties - EIKON is and shall at all times during the term of this Agreement be an independent contractor of Client. This Agreement and the relationship of the patties shall not be deemed to create or be one of employment, agency, partnership, joint venture or any other association. 7. Assignment - This Agreement is binding on the heirs, successors, and assigns of the parties hereto. This Agreement may not be assigned by Client or EIKON without the prior written consent of the other. Any assignment without written consent of the other party shall be null and void. 8. Standard of Care - The standard of care for all professional engineering and related Set -vices performed or famished by EIKON under this Agreement will be the care and skill ordinarily used by the members of ERCON's profession practicing under similar conditions at the same time and in the same locality. EIKON makes no warranties, express or implied, under this Agreement or otherwise, in connection with EIKON's Services. 9. Insurance - EIKON shall procure and maintain worker's compensation and employer's liability insurance in accordance with requirements of the state in which the Services are being performed, comprehensive liability insurance (including contractual and contractor's protective liability coverage) with combined single limits of $1,000,000 per occurrence for bodily injury and property damage; automobile liability coverage including owned and hired vehicles with a combined single limit of $1,000,000 per occurrence for bodily injury and property damage and professional liability insurance in the amount of $2,000,000 per clainm/annual aggregate 10. Indemnification - Client shall indemnify EIKON, its partners, officers, directors and employees from all claims, damages, losses and expenses including reasonable attorney's fees, arising out of or in any manner connected with, the performance of the Services to the extent caused by Client's negligence. EIKON shall indemnify Client, its partners, officers, directors and employees from all claims, damages, losses and expenses including reasonable attorney's fees, arising out of the performance of the Set -vices to the extent caused by EHWN's negligence. Page 13 Im,-„11'O it. Limitation on Liability - The total liability of EIKON and its partners, principals, employees and agents to Client and any one claiming by, through or under Client for any and all injuries, claims, losses, expenses or damages whatsoever arising out of, or in any way related to, the Services of this Agreement from any cause or causes whatsoever including, but not limited to, negligence, errors, omissions, strict liability or breach of contract shall not exceed the total compensation received by EIKON under this Agreement or the total amount of 2.0 times the original fee. 12. No Personal Liability - Notwithstanding any other provision of this Agreement to the contrary, EIKON's partners, principals, officers, directors, employees, or agents shall not be personally liable, regardless of the cause of action asserted including breach of contract, warranty, guarantee, products liability, negligence, tort, strict liability, or any other cause pertaining to EIKON's performance or non-performance of the Agreement Client will look solely to EIKON for its remedy for any claim arising out of or related to this Agreement 13. Corporate Protection- It is intended by the parties to this Agreement that EIKON's services in cowection with the Project shall not subject EIKON's individual employees, officers or directors to any personal legal exposure for the risks associated with this Project. Therefore, and nowithstanding anything to the contrary contained herein, the Client agrees that as the Client's sole and exclusive remedy, any claim, demand or suit shall be directed and/or asserted only against EIKON, a Texas corporation, and not against any of EIKON's individual employees, officers or directors. 14. No Consequential Damages - In no event shall EIKON be liable to Client or the Client to EIICON for consequential, special or indirect damages, including but not limited to, toss of profits or revenue, loss of use of equipment, loss of production, additional expenses incurred in the use of the equipment and facilities and claims of customers of the Client. This disclaimer shall apply to consequential damages based upon any cause of action whatsoever asserted including, but not limited to, ones arising out of any breach of contract, warranty, guarantee, products liability, negligence, tort, strict liability, or any other cause arising out of the performance or non-performance of the contract by Client/EIKON. 15. Hazardous Materials: Suspension of Services - Both parties acknowledge that EIKON's scope of services does not include any services related to the presence of any hazardous or toxic materials. In the event EIKON or any other person or entity involved in the project encounters any hazardous or toxic materials, or should it become known to EIKON that such materials may be present on or about the jobsite or any adjacent areas that may affect the performance of EIKON's services, EIKON may, at its sole option and without liability for consequential or any other damages, suspend performance of its services under this agreement until the client retains appropriate qualified consultants and/or contractors to identify and abate or remove the hazardous or toxic materials and warrants that the jobsite is in full compliance with all applicable laws and regulations. 16. Hazardous Materials Indemnity - The Client agrees, notwithstanding any other provision of this Agreement, to the fullest extent permitted by law, to indemnify and hold harmless EIKON, its officers, partners, employees and sub -consultants from and against any and all claims, suits, demands, liabilities, losses, damages or costs, including reasonable attorneys' fees and defense costs arising out of or in any way connected with the detection, presence, handling, removal, abatement, or disposal of any asbestos or hazardous or toxic substances, products or materials that exist on, about or adjacent to the Project site, whether liability arises under breach of contract or warranty, tort, including negligence, strict liability or statutory liability, regulatory or any other cause of action, except for the sole negligence or willfal misconduct of EIKON. 17. Mediation — The parties, as a condition precedent to commencing litigation (other than for the non- payment of EIKON's fees), shall endeavor to resolve their claims by mediation which, shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association currently in effect. Request for mediation shall be filed in writing with the other party to the contract and with the American Arbitration Association. 18. Other Agreements - (a) The services to be performed by EIKON are intended solely for the benefit of Client and no benefit is conferred on, nor any contractual relationship established with any person or entity not a party to this Agreement; (b) Any provision or part thereof of this Agreement held to be void or unenforceable under any law shall be deemed stricken and all remaining provisions shall continue to be valid and binding upon the parties; (c) This Agreement represents the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters; (d) This Agreement shall not be amended, modified, supplemented or rescinded in any manner except by written agreement executed by the parties; (e) This Agreement shall be governed by and construed in accordance with the laws of the State of Texas; (f) EIKON shall not be liable for any failure to perform or delay in the performance of the Services due to circumstances beyond its reasonable control. 19, Design Without Construction Phase Services - It is understood and agreed that EIKON's Scope of Services under this Agreement does not include project observation or review of the Contractor's performance or any other construction phase services, and that such services will be provided for by the Client. The Client assumes all responsibility for interpretation of the Contract Page 14 :.. 1 1�0 Documents and for construction observation and the Client waives any claims against EIKON that may be in any way connected thereto. In addition, the Client agrees, to the fidlest extent permitted by law, to indemnify and hold harmless EIKON, its officers, directors, employees and subconsultants (collectively, Consultant) against all damages, liabilities or costs, including reasonable attorneys' fees and defense costs, arising out of or in any way connected with the performance of such services by other persons or entities and from any and all claims arising from modifications, clarifications, interpretations, adjustments or changes made to the Contract Documents to reflect changed field or other conditions, except for claims arising from the sole negligence or willful misconduct of EIKON. If the Client requests in writing that EBZON provide any specific construction phase services, and if EBCON agrees in writing to provide such services, then they shall be compensated for as Additional Services as provided in Section. IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date set forth above. By: EMON 1!56iA`-"' By: Name: Brad Isbell, P.E. Name: Title: President Title: Date November 24, 2014 Date: Page 15 CLIENT