NOV-17-2003 00:24 COWLES & THOMPSON COWLES &THOMPSON A Pr61,nlonal Corporation ATTORNEYS AND COUNSEl-DRS FACSIMILE COVER PAGE 2146722020 P.01/13 Date: November 17. 2003 Time: _ Total
Number of Pages (including this sheet): 13 Normal/Rush: Normal Client/Matter #: 3305160962 TO: (1) Mike 􀁍􀁾􀁲􀁰􀁨􀁹 FAX: (972) 450-2837 PHONE: FROM: Angela K. Washington Direct Dial
#: (214) 672-2144 MESSAGE: As we discussed. IF YOU HAVE ANY PROBLEMS WITH THIS TRANSMISSION. PLEASE CALL Yolanda Rodriguez at (214) 612-2629 Thank you. IMPORTANT\CONFIDENTIAL: This message
Is intended only for the use of the individual or entity to which it is addressed. This message contains information from the law firm of Cowles & Thompson which may bEt privileged,
confidential, and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient or the employee, or agent responsible for delivering the message
to the intended recipient. you are hereby notified that any dissemination, distribution. or copying of this communication Is strictly prohibited. If you have received this communication
in error. please notify us immediately at our telephone number (214) 672-2000. We will be happy to arrange for the return of this message to us, via the United States Postal Service,
at no cost to you. DALLAS T Y L E R 901 MAIN STIlEET SUITE 4000 DALLAS, TEXAS 15202·'19' 'I'H l14."Z.2000 FAX Z14.672.202O WWW.COWLl!:ITIIO .. PUN.COM
NOV-17-2003 00:24 COWLES &THOMPSON 2146722020 P.02/13 DALLAS COUNTY, TEXAS AT LAW NUMBER 5 CAUSE NO. CC·02-05062-E IN THE COUNTY COURT TOWN OF ADDISON §§ 􀁾 §§ METRO BRICK COMPANY, INC.,
and § DENNIS CALANDER, INDIVIDUALLY § and as PRESIDENT OF METRO BRICK § COMPANY, INC. § AGREED FINAL JUDGMENT On the__day of -__, 2003, came on to be heard the above-entitled and numbered
cause. As evidenced by their signatures below, the ToWll of Addison ("Plaintiffl ) and the owners of the land, Metro Brick Company, Inc., and Dennis Calander, Individually and as President
of Metro Brick Company, Inc. ("Defendants"), have compromised and settled all matters in controversy between them and have requested entry of this Agreed Judgment. I. Defendants admit
and stipulate as follows: (a) Plaintiff has the right to recover and condemn the property and access rights described in Exhibit "A," attached hereto and incorporated herein; (b) All
statutory requirements and due processes of law have been duly, legally, and timely performed; (c) Plaintiff has duly complied with all legal prerequisites; (d) Defendants have agreed
to accept the sum of $95,150.00 as the amount of compen.sation due to them as a result of the condemnation of the property described herein; (e) Defendants have agreed to accept the
swn of $60,000.00 in full and final satisfaction oftheir counterclaims, as described in Defendants' Original Counterclaim; and (f) This Court has jurisdiction ofsuch issues and these
causes ofaction. ll. AGREED FINAL 􀁊􀁕􀁄􀁃􀁩􀁍􀁾􀁎􀁔􀀮􀂷 PAGE I OF 5 DUCl.Il'rK;lt(.: 1071901
NDU-17-2003 00:24 COWLES &THOMPSON 2146722020 P.03/13 After reviewing the pleadings on file, the orders of the Court, and the agreements and stipulations made by the panies, as evidenced
by their signatures below, the Court finds: (a) Under and by its Original Petition in Condemnation, filed with the court on April 23, 2002, Plaintiff sought and prayed for acquisition
of the tract of land located in Dallas County, Texas, more properly described in Exhibit "A," and the rights of access also described in Exhibit IIA." Plaintiff sought and prayed for
the acquisitio.n of the land for purposes of constructing, relocating, and extending Arapaho Road, as well as for related park uses in the form of pedestrian walkways and pocket parks.
(b) Pursuant to the Original Petition in CondeIlUlation, the Court appointed three disinterested freeholders of Dallas County, Texas, as Special Commissioners with respect to the parcel,
The Special Commissioners subsequently took their oaths of office, set a date of hearing, and caused notice thereof to be duly served as prescribed by law regarding the parcel. (c) On
July 26,2002, the Special Commissioners issued their Order Setting Time and Place of Hearing, setting a hearing for September 11, 2002. (d) On September 11, 2002, the Special Conunissioners
duly held the hearing scheduled for that day. (e) After the hearing, the Special Commissioners rendered their decision and Award in writing. The Award was filed with the Court on September
12,2002. (0 In their Award the Special Commissioners awarded the Defendants the swn of NINETY-FIVE THOUSAND ONE HUNDRED FIFTY AND NO/IOO DOLLARS ($95,150.00) for the parcel of land.
(g) Defendants duly and timely filed Objections to the award of the Special Commissioners. AGREI:;[) fiNAL JUDGMENT --PAGE Z 0(' 5 􀁄􀁡􀁣􀀮􀁬􀁲􀁴􀀺􀁮􀁬􀁾􀀺 IOTI901
NOU-17-2003 00:24 COWLES &THOMPSON III. 2145722020 P.04/13 The Court further finds and detennines the following: (a) All proceedings necessary to vest this Court with jurisdiction of
the parties, the property and of the subject matter of this cause have been instituted, maintained, and complied with as required by law; therefore, this Court has jurisdiction of the
parties llereto and of the subject matter set forth in this case; (b) Metro Brick Company. Inc. and Dennis CaJander, whose Agent for Service is Charles Salazar, 3710 Rawlins, Suite 1200,
Dallas, Texas 75219, are the owners of said property; Town of Addison, whose Agent for Service is _ __-__; Dallas County, whose Agent for Service is Margaret Keliher, County JUdge, 411
Elm Street, 2nd Floor, Dallas, Texas 75202; and Dallas Independent School District, whose Agent for Service is Mike Moses, Superintendent. 3700 Ross Avenue, Dallas, Texas 75204-5491,
have an interest in said property. Plaintiff is condemning and acquiring the fee simple title in and and to said ptoperty under and by virtue of these condemnation proceedings. Plaintiff
is authorized to condemn said property. ee) From the agreement of the parties, Defendants shall have and recover from Plaintiff the total sum of ONE HUNDRED FIFTY-FIVE THOUSAND, ONE
HUNDRED F1FTY AND NOIlOO DOLLARS ($155,150.00), representing NINETY-FIVE THOUSAND, ONE HUNDRED FIFTY AND NO lOO/DOLLARS ($95,150.00) for Plaintiffs acquisition and condemnation of the
subject property, and SIXTY THOUSAND AND NO/100 DOLLARS (560,000.00) in satisfaction of Defendants' counterclaims alleged against Plaintiff. (d) Plaintiff should have and recover from
Defendants, as more specifically set forth in Exhibit"A," a fee simple title in and to said property, and any rights of access as described in Exhibit "A." (e) On January 21, 2003, Plaintiff
deposited NINETY"FIVE THOUSAND ONE HUNDRED FiFTY AND NO/IOO DOLLARS (595,150.00) into the Registry of this Court for AORP-ED fiNAL JUDGMBNT·· PAGE J OF 5 􀁬􀀾􀁯􀀼􀁵􀁭􀁲􀁮􀁬􀁾􀀧 107190'
NOU-17-2003 00:24 COWLES &THOMPSON 2146722020 P.05/13 the use and benefit of the Defendants, which amount Defendants did not withdraw. Defendants acknowledge Plaintiffs deposit into
the Registry of the Court; (f) The parties expressly agr:eeto each pay their own court costs and costs of litigation; (g) The parties agree that the payments as outlined herein are a
full and final settlement of all pending or potential claims arising from this taking, including any potential or outstanding claims for inverse condemnation, wrongful possession, relocation
expenses, attorney's fees and expenses, and costs of court.IV. It is therefore ORDERED, ADJUDGED, AND DECREED that Plaintiff does have and recover of and from Defendants fee simple title
in and to said property, and any rights of access, as described in Exhibit "A," situated in the Town of Addison, Dallas County, Texas. It is further ORDERED that Defendants have and
are entitled to a judgment from the Plaintiff in the total amount of ONE HUNDRED FIFTY..FIVE THOUSAND, ONE HUNDRED FIFTY AND N0l100 DOLLARS ($155,150.00), representing NINETY-FIVE THOUSAND,
ONE HUNDRED FIFTY AND NO 100IDOLLARS (595,150.00) for Plaintiffs acquisition and condemnation of the SUbject property, and SIXTY THOUSAND AND NOI100 DOLLARS (560,000.00) in satisfaction
of Defendants' counterclaims alleged against Plaintiff. The amount of NINETY-FIVE THOUSAND, ONE HUNDRED FIFTY AND NO lOOIDOLLARS (595,150.00) was deposited into the Registry of the Court
on January 21,2003. Upon payment of the remaining SIXTY THOUSAND AND NOIIOO DOLLARS (560,000.00) into the Registry of the Coun, Plaintiff will be RELEASED and DISCHARG.ED from its constitutional
obligation to pay compensation for the taking of said property for public use to any party with any interest in the subject property. AGREED I<INAL JUDGMENT _. PAGE 4 OF S 􀁾􀁕􀁉􀀧􀁦􀁴􀁉􀁥􀁉􀀢􀀮􀀡
I0719()1
NOV-17-2003 00:24 COWLES &THOMPSON v. 2146722020 P.06/13 It is further ORDERED that within ten (10) days after Plaintiff has deposited into the Court's Registry the remaining balance
as described in. Paragraph IV, the Dallas County Clerk shall immediately issue a cheek in the total amount of ONE HUNDRED FIFTY-FIVE THOUSAND, ONE HUNDRED FIFTY AND NO/lOO DOLLARS ($J
55,150.00) (less any statutory administrative fees), payable to "Metro Brick CompanYt Inc., Dennis Calander, and The Law Offices of Eddie Vassallo, p.e.," and shall forward the check
via first class U.S. mail to the Law Offices of Eddie Vassallo, p.e., 3710 Rawlins, Suite 1200, Dallas, Texas 75219-4276. VI. It is further ORDERED, ADJUDGED, and DECREED that the fee
simple title to said land, any rights of access as described in Exhibit "A," is hereby decreed to and vested in Plaintiff. Signed this day of , 2003. JUDGE PRESIDING APPROVED AS TO SUBSTANCE
AND FORM: THOMAS L. MIGHELL Cowles & Thompson, P.C. Attorneys for Plaintiff, tile Town ofAddison CHARLES A. SALAZAR Law Offices ofEddie Vassallo, P.C. Attorneys for Defendants Metro
Brick Company, Inc. and Dennis Calander AGREED FINAL JUDGMENT ,-PAGE S OF S 􀁄􀁯􀁣􀀮􀁭􀁴􀁮􀁬􀁾􀀺 107 􀁉􀁾􀁏 I
NOU-17-2003 00:25 COWLES &THOMPSON 2146722020 P.07/13 DALLAS COUNTY, TEXAS AT LAW NUMBER 5 CAUSE NO. CC-02-0S062-E IN THE COUNTY COURT TOWN OF ADDISON §§ V. §§ METRO BRICK COMPANY, INC.,
and § DENNIS CALANDER, INDIViDUALLY § and as PRESIDENT OF METRO BRICK § COMPANY, INC. § SETTLEMENT AGREEMENT AND RELEASE THIS SETTLEMENT AGREEMENT AND RELEASE is made and entered into
effective as of the date of its signing as set out at the end of this Agreement by and among The Town of Addison, Texas, Plaintiff, and Metro Brick Company, Inc., and Dennis Ca)aodet,
Individually and as Preiident of Metro Brick Company, Inc. (hereinafter "Metro Brick"), Defendant and Counter-Plaintiff. 1.0 REelTALS The parties acknowledge that bona fide disputes
and controversies exist between them, both as to liability and the amount of damages thereof, if any, and by reason of such disputes and controversies they desire to compromise and settle
all claims and causes of action of any kind whatsoever which the parties have or may have arisi.ng out of the transaction or occurrence which is the sUbject of this litigation. It is
further understood and agreed that this is a compromise of a disputed claim, and nothiJlg contained herein shall be construed as an admission of liability by any party, all such liability
being expressly denied. 2.0 AGREEMENT The parties hereto agree as follows: 2.01 Release aDd Discbarge In consideration of the payments called for herein, which the parties assert arises
out of the condemnation proceedings instituted by the Town of Addison, Texas as well as the SETTLEMENT AGREEMENT AND RELEASE·· PAGE 1OF 7 DoclIPlI:ntlt; IOlSIJI19
NOU-17-2003 00:25 COWLES &THOMPSON 2146722020 P.08/13 claims and allegations asserted and more fully described in Metro Brick's Original Counterclaim, and any damages related thereto,
The Town of Addison, Metro Brick and Dennis Calander, for themselves, their heirs, executors, administrators, estates, legal representatives, assigns, and all others claiming under them,
completely release, discharge, and forever hold harmless the Town of Addison, Metro Brick and Dennis Calander, of and from any and all past, present or future claims, demands, obligations,
actions, causes of action, damages, costs, sums of money, suits, expenses, whether based on tort, breach of contract, fraud, breach of fiduciary duty, breach of implied warranty, breach
of express warranly, negligent misrepresentation, intentional misrepresentation, legal misrepresentation, bad faith, statutory violation, fraud, statutory fraud, Deceptive Trade Practices
Act, or other theory of recovery and whether for compensatory or punitive damages which the Town of Addison, Metro Brick and/or Dennis Calander now have or which may have or hereafter
accrue or otherwise be acquired including, without limitation, any and all known and unknown claims for loss of earnings; attorney's fees; judgments and liabilities whatsoever, in law
and in equity; interest; costs; penalties; punitive damages; exemplary damages or any other damage or claim of any kind or character whatsoever sustained, directly or indirectly, by
the Town of Addison, Metro Brick and/or Dennis Calander which in any way relates to, arises out of, or is in any way connected with the Town of Addison's institution of condemnation
proceedings or the: allegations, facts and injuries more particularly described in Metro Brick's Original Counterclaim, and any lawsuits or the handling of any lawsuits emanating therefrom.
This release on the part of the Town of Addison, Metro Brick and Dennis Calander shall be a fuJly binding and complete settlement between the Town of Addison, Metro Brick, and Dennis
Calander. 2.02 AGREED JUDGMENT The Town of Addison, Texas, Metro Brick, and Dennis Calander agree to the entry of an Agreed Judgment in this case, which will continn that the Town of
Addison has SETTLEMENT AGREEMENT AND RELEASE ·-PAGE2 OF 7 0lI0._01 q: 106al19
NOV-17-2003 00:25 COWLES & THOMPSON 2146722020 P.09/13 lawfully obtained fee simple title to the property in question, and that Metro Brick and Dennis Calander's counterclaims against
the Town of Addison are dismissed with prejudice, with court costs to be taxed against the party that incurred them. 3.0 PAYMENTS In consideration for the mutual promises, covenants,
warranties and Release set forth above, the Town of Addison hereby agrees to make the following payments: 3.01 Condemnation Damages The sum of NINETY-FIVE THOUSAND, ONE HUNDRED FIFTY
AND NO/IOO DOLLARS (595,150.00) shall be paid to Cyuthia Figueroa Calhoun, Dallas County Clerk, for the Use and Benefit of Metro Brick, Inc. and/or Dennis Calander, as payment for damages
awarded against the Town of Addison, Texas for the condemnation of that property described in Exhibit "A," which is attached hereto and incorporated herein by reference. 3.02 Additional
Payments Th.e sum of SIXTY THOUSAND AND NO/tOO Do.LLARS ($60,000), to be paid to Dennis Calander and his attorneys, the Law Offices of Eddie Vasallo, Pre, 4.0 General Release Metro Brick.
Dennis Calander, and the Town of Addison hereby acknowledge and agree that the release set forth in Paragraph 2.01 hereof is a general release of all claims they have or might have and
they further expressly waive and assume the risk of any and all claims for damages which exist as of this date but of which they do not know or suspect to exist, whether through ignorance,
oversight, etTor, negligence, or otherwise, and Which, if known, would materially affect their decision to enter into this Settlement Agreement and Release. The Town of Addison, Metro
Brick and Dennis Calandcr agree that the payment of the sums specified herein are a complete compromise of a matter involving disputed issues of law and fact and that they fully assume
the risk that the facts or law may be otherwise than they believe. It is SETILEMENT AGREEMENT AND RELEASE·· PAGE 3OF 7 Do,um,.,·: 1061119
NOV-17-2003 00:25 COWLES &THOMPSON 2146722020 P.10/13 understood by the Town of Addison, Metro Brick and Dennis Calander that this settlement is a compromise of doubtful and disputed
claims and the payments are not to be construed as an admission of liability on the part of the Town of Addison, Texas, Metro Brick, Dennis Calander, or any of the other parties released,
by whom liability is expressly denied. 5.0 WARRANT OF CAPACITY TO EXECUTE AGREEMENT The Town of Addison, Metro Brick and Dennis Calander represent and warrant that no other persons or
entities have or have had any interest in the claims, demands, allegations referred to in this Settlement Agreement and Release except as otherwise set forth herein and that they have
the sole right and exclusive authority to execute this Settlement Agreement and Release and receive the sums specified in it; and that they have not sold, assigned, transferred, conveyed
or otherwise disposed of any claims, demands, Or obligations referred to in this Settlement Agreement and Release. 6.0 NO ADMISSION OF LJ.A.BTLITY OF RELEASED PARTY With respect to Metro
Brick's Original Counterclaim, the Town of Addison, Metro Brick and Dennis Calander acknowledge that the Town of Addison, Texas deni.ed and continues to deny all allegations made by
Metro Brick in, or in connection with, the Counterclaim; and that the senlement ofthe above-referenced matter, the payment of the above-described sums, and any other actions taken by
the Town of Addison, Texas in connection therewith shall not be deemed to be, or construed as an admission of, liability by the Town of Addison, Texas but rather said actions have been
taken in order to avoid the expense. uncertainty, and inconvenience of litigation. 7.0 ENTIRE AGREEMENT AND SUCCESSORS IN INTEREST This Settlement Agreement and Release contains the
entire agreement between the parties with regard to the matters set forth in it and shall be binding upon and inure to the benefit SETTLEMENT AGREEMENT AND RELEASE •• PAGli 4 OF 7 􀁄􀁯􀁾􀀢....nl.'
􀀱􀀱􀀱􀁬􀁉􀀩􀁾􀀱􀀱􀀢
NOV-17-2003 00:25 COWLES &THOMPSON 2146722020 P.11/13 of the executors, administrators, personal representatives, heirs, successors and assigns of Metro Brick, Dennis Calander, and the
Town ofAddison, Texas. 8.0 REPRESENTATION OF COMPREHENSION OF DOCUMENTS In entering into this Settlement, Agreement and Release, the Town. of Addison, Metro Brick and Dennis Calander
represent that they have not relied upon any statements or representations pertaining to this matter or any issues in the aforementioned lawsuit made by the person(s), firms, organizations,
or corporations hereby released or by any person(s) representing them or by anyone employed on their behalf, and the tenns of this Settlement Agreement and Release have been completely
read by the Town of Addison, Metro Brick and Dennis Calander and those terms are fully understood and voluntarily accepted by them. 9.0 GOVERNANCE, CONSTRUCTION AND PERFORMANCE This
Settlement, Release and Indemnity Agreement shall be governed by and construed In accordance with with the laws of the State of Texas in all respects, including matters of construction,
interpretation, validity and enforcement, and is performable in Dallas County, Texas. D.ENNJS CALANDER, IndividuaUy and as Authorized Representative of Metro Brick, Inc. RON WHITEHEAD,
Authorized Representative of the Town of Addison, Texas SETTLEMENT AGREEMENT AND RELEASE •• PAGE 5 Or 7 1),1&;l.lrncl\' II: 1068 I If)
NOU-17-2003 00:25 COWLES &THOMPSON VERIFICATION 2146722020 P.12/13 STATE OF TEXAS §§ COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on this day personally appeared DENNIS CALANDER,
Individually and as Authorized Representative of Metro Brick, Inc., known to me to be the person whose name is subscribed to the above and foregoing instrument and, being by me first
duly sworn on his oath deposed and stated that he is duly qualified and authorized in all respects to make this Affidavit; that he has read the above and foregoing Settlement Agreement
and Release; and that every statement contained therein is true and correct to the best ofhis knowledge. . DENNIS CALANDER, Individually and as Autborized Representative of Metro Brick,IDc.
SUBSCRIBED AND SWORN TO BEFORE ME on this ______, 2003, to certify which witness my hand and seal ofoffice. Notary Public, State ofTexas My Commission Expires: SETTLEMENT AGREEMENT AND
RELEASE -PAGE 6OF 7 Do........􀀧􀁾􀀻 􀁉􀀰􀀶􀀸􀀱􀀱􀁾 day of
NDV-17-2003 00:25 COWLES &THOMPSON VERIFICATION 2146722020 P.13/13 STATE OF TEXAS §§ COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on this day personally appeared RON WHITEHEAD,
Authorized Representative of The Town of Addison, Texas known to me to be the person whose 􀁮􀁡􀁭􀁾 is subscribed to the above and foregoing instrument and, being by me first duly sworn
on his oath deposed and stated that he is duly qualified and authorized in aU respects to make this Affidavit; that he has read the above and foregoing Settlement Agreement and Release;
and that every statement contained therein is true and correct to the best of his knowledge. RON WHITEHEAD, Authorized Representative of the Town of Addison, Texas SUBSCRIBED AND SWORN
TO BEFORE ME on this ______, 2003, to certify which witness my hand and seal of office. Notary Public, State ofTexas My Commission Expires: Se""I'LEMENT AGREEMENT AND RELEASE·· PAGE
7 Of 7 DOCII'""": 10<58119 day of TOTAL P.13
􀁍􀁾􀁒􀀭􀀱􀀵􀀭􀀲􀀰􀀰􀀲 11:56 􀀳􀀭􀀱􀀴􀀭􀀲􀁾􀀲 10:15PM COWLES &THOMPSON FROM 2146722020 P.03/04 P.2 . , JlIL 17 7.001 «.: • I '" . i L ....__....,.......... . __._-1 r;"v '.' ". r. ,:Gi'R
---,.... ADDI N 51 ., . • July 16,2001 omCE OF THE CITY MANAGER ,,. 􀁾􀀻􀁾􀁾 \'•• ' l,';" I I," ... . ,,' 􀁾 , , \i'\ i '\" _'::.. -:! : j : I : • ; I Mr. Denais Catander Metro Brick
Company, Inc. lS301 Addison Road Addison, Tx 75001 RE: Lot 3, Block 1 AddiaOD Car Clre AdditiOD to the Tow8 01AcldfMD Reeordtd iD V6l. 87111, Pg. 0286 ill the Ddd Rteords 01Dallu Co.
Dear Mr. Calandor: In Febnwy2000. the Town ofAddisoD .IDOted to sell boods in order to fUnd six. cODStruotion projects. J1'leluded in these projects is-the: extension ofArapaho Road,
fl'om A.ddison Road to Marsh Lane. At Ulis 1ime, we are in the right-of-way acquisition phase ofth. project, in order to extend Arapaho R.oad to the weSl . Tho Town ofAddison has delonninod
tit. public need to 􀁉􀁾􀁱􀁵􀁾 aU of rJt.e tract of land thafis 􀀧􀁯􀁷􀁮􀁥􀁤􀁾􀁢􀀾􀀧you and is currently occupied by Metro Brick Company, Inc. The pubUc I . purpose for this land acquisition
i9 the 􀁮􀁯􀁣􀁾 rigbt-of-way for the Arapaho Road project alons with related municipal uses including pUblic parks and opeD spaces. The firm ofHIpes &: 􀁁􀀮􀀧􀁉􀁳􀁾􀁩􀁬􀁬􀁴􀁣􀁳 appniscd
the property 011 May 24. 2001. The attaobed summary 􀁾􀁥􀁥􀁴 shows the fair market value ofthis whole taking 􀁩􀁾 S103,On. One JUl1e 26, 2001, ilie City Council ofthe Town of Addison
authorized mo to 􀁭􀁡􀁾 aD offer 10 purchase this 11,363 square foot traet of land Ilt the a,ppralsal value of $103.032. The Town ofAddison requests that you re5pond to this offer ofpW'Qlwe
within thirty (30) days oftho date of this lener. Irwe do not hear from you within the thirty (30) <lays, dlC Town will consider Its offer rejected and we willlnJtlate 􀁥􀁭􀁩􀁮􀁾􀁴 domain
proceedings to acquire the property. ", Should Y9u have any questions. please itel free to COlitael Mr. Mike Murphy, Director of Public Works, at (972) 􀀴􀁾􀀲􀁕􀁾 or me. . Sincerely,
fWD Whitehead City Manager '.
MAR-15-2002 11:56 COWLES &THOMPSON COWLES &THOMPSON A Profuslonal Corpor<illtlon ATTORNEYS AND COUNSELORS FACSIMILE COVER PAGE 2146722020 P.01/04 Date: March 15, 2002 Time: _ Total Number
of Pages (including this sheet): 4 TO: FROM: Normal/Rush: Normal (1) Steve Chutchian Kenneth plppel ClienUMatter #: 3305/60962 FAX: (972) 450·2837 Direct Dial #: (214) 672·2158 MESSAGE:
RE: Metro Brick· Fax for Your Files (Ron Whiteheadls letter to Dennis Calander). IF YOU HAVE ANY PROBLEMS WITH rHIS TRANSMISSION, PLEASE CALL OUR SERVICE CENTER AT (214) 672-2508 or
Yolanda Rodriguez at (214) 672-2629 Thank you. IMPORTANT\CONFIDEN'fIAL: This message is intended only for the use of the individual or entity to which It Is addressed, 'rhis message
contains information from the law firm of Cowles & Thompson which may be privileged, confidential, and exempt from disclosure under applicable law. If the reader of this message Is not
the intended recipient or the employee, or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination. distribution, or copying
of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately at our telephone number (214) 672-2000. We will be happy
to arrange for the return of this message to us. via the United States Postal Service, at no cost to you. DALLAS T Y L E R 901 MAIN STIlEEr SUITE 4000 DALLAS, TEXAS 15202·3193 TEL 214.612.2000
FAX 214.672.2020 WWW.COWL£$THOMPSON.COM
MAR-15-2002 11:56 COWLES &THOMPSON 2146722020 P.04/04 3-1d-200210:16PM FROM P.3 􀁾 . '" L' .:' ,J'J I 1', \ I., I. 􀁾􀀮 􀁾 ...􀂷􀁟􀁩􀀻􀀮􀀺􀁾􀀢..f> 􀀺􀁾􀀽 􀀺􀀬􀁾􀀮􀀮 '" . 􀂷􀁜􀀢􀁜􀀢􀁴􀁾
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.. . 􀀢􀀻􀀧􀁾 .. •􀁾􀁾 ..􀁾 . K1IU'NU"'!.2 -_ ===ePA JIa)(A¥ I I"'·" • .􀀨􀀮􀁾􀀧􀁩􀁩􀁾 .. 􀀧􀁾􀁦􀁬􀁦􀀬􀁾􀁾􀀮 I' 'I ',. !: 􀀬􀀮􀁾..• " ',':";'. ..' ,. , .' .11 :': ',", ". ", .. " ••
0:,,' ,\ ,.. 􀀮􀀻􀀮􀀮􀁾􀁾􀀡􀁾􀁾􀀮􀀬􀀮􀀮􀀻􀁉 􀂷􀀷􀀻􀀻􀀾􀀬􀂷􀂷􀁽􀀻􀁲􀀻􀂷􀀬􀀻􀂷􀂷􀀻􀀮􀁾􀀬 A. Wholt P1'Opertj,AQ}1IIsltlml'.i'th. NW/e orbtcrtedioD ()f 􀁁􀁤􀁤􀁾􀁯􀁾 lbJlcJlArapaho Rood '"
􀂷􀁍􀁥􀁾􀀧􀁂􀁲􀁩􀁣􀁫􀀧􀀮􀁣􀁯􀁊􀁄􀁰􀀸􀁊􀁑􀀧􀀬􀀮􀁥􀀢􀀻􀀬􀀺􀁏􀁷􀁄􀁶􀀮􀀧􀂷􀂷􀀢 '. . . ,';' ; '. • ','0, . .': MdJloa, TailS' .. , ...' Date of the App'iaisaJ: ,':; Value Estimated: '. .
.. . .. ',: . Property Rights Appraised; Property 􀁾􀁣􀁤􀀺 ',May 24, 2001 ' 􀀧􀁍􀀮􀁾􀁴 Value. Just Compensation Fee Simplo .A %11,363 SP􀁴􀁲􀁡􀁾􀁴 unproved with an ofliedsaloa r:aeJlhyt
􀀬􀁊􀁯􀁾􀁴􀁣􀁤 at the . , NW/c 'of 􀀮􀁾􀁄 Rd., &:. Arapaho.' . Rd., AddiloD. Teas. Property Zoned: , PD; office, retsD. restaurant, car .wash .' !Ughest &:. Bat Use: "As vacant": WA.
• •....--11. ........ ' 􀀺􀀮􀁾􀂷􀁊􀁊􀁄􀁐􀀮􀁴􀀢􀀢􀁙􀁜􀁩􀁩􀁕􀀮􀁊 ' -,.. To be assembled with 􀁡􀁤􀁪􀁡􀁣􀀺􀁥􀁾􀁴􀀮 ralIroa4 propeny for potential future usa. ';'􀀬􀁾􀁾􀀢 !..,Ijhborhood
services 􀁾 .u.odl 􀁾􀁣􀁢 dme at redevelopment is , warranted. " Estimates of Pee Simple VaJue: Wbole )ImplY : Laud Value (SIb Comparison): Cost Approach; lDcome Approach: Sa1M Comparison
Approach: Whole Propu1;J: PlrtTaken; ,,' !. ,. . I • ,. 􀁂􀁥􀁭􀁩􀁩􀁾􀁤􀁥􀁴 IctOri tit; T,k;; ... ',. ": Remainder Alter the Tam Land Value: Colt Approacb: Income Approach: Salea ComparlSoD
􀁁􀁰􀁾 Damagea to the IWmaiDder: Flu) Value Estimate: JUST COMPENSA110N -.:.. $ S6,81S $111,.500 $103,032 $ N/A 􀀤􀀱􀁾􀀰􀀳􀀲 􀀤􀁬􀀬􀁾􀀳􀁊􀀰􀀳􀀲 '. • • I '. • • '.'.,' $'.,0;. . . I ••
• " $ N/A S N/A. S N/A S·N/A $ N/A .$10'3,032 TOTRL P.04
Council Agenda Item: SUMMARY: Arapaho Rd., Phase III Right-of-Way Acquisition from Lot 3, Block 1, Addison Car Care (Metro Brick Company, Inc.) FINANCIAL IMPACT: Budgeted Amount: Cost:
Budget Impact: BACKGROUND: Not Budgeted $103,032 Bond Funds are available for right-of-way acquisition in Arapaho Road, Phase 11/111, Project No. 83300 The right-of-way acquisition process
is currently underway on the proposed Arapaho Road, Phase III project. It was determined that a 1,657 square foot portion ofland (see attached Parcel 1 map) at the northwest comer ofAddison
Road and the proposed extension ofArapaho Road is required as part ofthe proposed roadway improvements. This parcel is a portion ofa tract ofland on Lot 3, Block 1, Addison Car Care,
and owned by Metro Brick Company, Inc. The attached Summary ofFacts states a Just Compensation value of$102,061, including damages to the remaining property, for the fee-simple taking
ofthis parcel. Public Works and Park & Recreation staffevaluated this location and determined that the Metro Brick Company site would also benefit the Town as a new hike & bike staging
facility/pocket park. Accordingly, a second appraisal was performed with the purpose of evaluating the fee-simple taking ofthe entire 11,363 square foot area ofLot 3, Block 1, Addison
Car Care (See attached map). The attached Summary ofFacts states a Just Compensation value of$103,032. RECOMMENDATION: It is recommended that Council authorize the City Manager to offer
a total of$103,032 to Metro Brick Company, Inc., for the acquisition ofthe entire 11,363 square foot site on Lot 3, Block 1, Addison Car Care.
t' ,." FEB-04-2002 15:22 COWLES&THOMPSON TOWN OF ADDISON, TEXAS RESOLUTION NO.__ 2146722020 P.02/05 A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF ADDISON, TEXAS DETERMINING THE NECESSITY OF ACQUIRING THE HEREINAFfER
DESCRIBED REAL PROPERTY OWNED BY METRO BRICK, ET AL. AND AUTHORIZING ITS CONDEMNATION AND/OR APPROPRIATION FOR PUBLIC USE IN CONNECTION WITH TIlE REALIGNMENT AND EXTENSION OF ARAPAHO
ROAD AND RELATED PARK IMPROVEMENTS IN ADDISON, TEXAS. BE IT RESOLVED BY THE CITY COUNCIL OF THE TOWN OF ADDISON, TEXAS: SECTION 1. That for the purposes of this Resolution. the following
definitions of terms shall apply: "PROPERTY": hereof for all purposes. The areas described in Exhibit IIA attached hereto are made a part "PROPERTY INTEREST": Fee simple title to the
land described in Exhibit "A," attached hereto and incorporated herein. "PROJECT": Realignment and extension of Arapaho Road, with related pedestrian . parkway and pocket parks in Addison,
Texas. "OFFER AMOUNT": One Hundred Three Thousand and Thirty Two and NollOO Dollars ($103,032.00). . "OWNERS": Metro Brick Company, Inc. and Dennis Calander, individually and as officer
ofMetro Brick Company, Inc. SECTION 2. . That it is hereby detennined that public convenience and necessity requires that the Towri of Addison should acquire the PROPERTY INTERESTS in,
over, and across the PROPERTY necessary for the PROJECT. SECTION 3. That the PROPERTY is hereby detennined to be necessary for the PROJECT. That for the pUIpose of acquiring the PROPERTY
INTEREST in, over, and across the PROPERTY, the City Manager, or such employee as he may designate, is hereby authorized and directed to offer the OFFER AMOUNT as payment for the PROPERTY
to be acquired and full damages allowable by law, which amount represents its fair cash market value. I\ESOLlITIONNO,__-fol:c I
FE8-04-2002 15:22 COWLES &THOMPSON 2146722020 P.03/05 SECTION 4. That the Town of Addison detennines to appropriate the PROPERTY INTEREST in, over, and across the PROPERTY for the PROJECT
under the laws of the State of Texas and the provisions ofthe Charter of the Town ofAddison. SECTION 5. That, in the event the OWNER accepts the OFFER AMOUNT as authorized herein, the
City Finance Director be and is hereby authorized to draw a check in favor of the OWNER named above, or the current owner ofrecord, in the OFFER AMOUNT. SECTION 6. That the City is to
have possession of the PROPERTY on closing; and the City will pay any title expenses and closing costs; and the City will pay court costs as may be assessed by the Special Commissioners
or the court. SECTION 7. Should the employee designated to make the official offer report to the City Attorney that OWNER has refused to accept the OFFER AMOUNT as compensation for the
hereinabove described taking from OWNER under the laws of eminent domain. which amount the City City Council deems to be the fair cash market value and all just compensation, in compliance
with the laws of the State ofTexas, this will be evidence that th.e Town ofAddison cannot agree with the OWNER as to the damages legally allowable by law. In such case, the City Attorney
is ailthorized and directed 10 file the necessary suit and take the necessaI)' action for the prompt acquisition of the PROPERTY in condemnation or in any manner provided by law. SECTION
8. That in the event the Special Commissioners in Condemnation appointed by the court return an award that is the same amount or less that the OFFER AMOUNT the City Finance Director
is hereby authorized to issue a check· not to exceed the amount of the Commissioners' award made payable to the County Clerk ofDaUas County, to be deposited into the registry ofthe court
to enable the City to take possession ofthe PROPERTY without further action ofthe City Council. SECTION 9. That in the event it is subsequently detennined that additional persons other
than those named herein have an interest in the PROPERTY, then the City Attorney is authorized and directed to join said parties as defendants in said condemnation suit. SECTION 10.
That this resolution shall take effect inunediately from and after its passage, as in the Charter in such cases is made and provided. PASSED AND APPROVED this day 􀁯􀁦􀁟􀁾 , 2002. Mayor
Town ofAddison, Texas ATTEST: By: City Secretary Town ofAddison, Texas RJ!SOLUTION NO.__-􀁲􀁡􀁾 t
FE8-04-2002 15:22 ... COWLES & THOMPSON Field Note Description Arapaho Road Project Town of Addison Dallas County, Texas 2146722020 P.04/05 BEING a description of a 0.2532 acre (11;027
square foot) tract of land situated in the Edward Cook Survey, Abstract Number 326, Town of Addison, Dallas County, Texas, being all of Lot 3, Block 1 of Addison Car Care, an addition
to the Town of Addison as evidenced by the map recorded on June 8, 1987 and recorded in Volume 87111, Page 0286 of the Deed Records of Dallas County, Texas, said Lot being conveyed to
Metro Brick Company, Inc. on September 11, 1996 and recorded 'in Volume 96180, Page 02908 of said Deed Records, Deed calls for Lot 3 of block 1 of said addition; said 0.2532 acre tract
of land being more particularly described by metes and bounds as follows; BEGINNING at a point at the North end of a 'cut back' corner located at the ·Northwest intersection of Addison'
:Road (variable width} . as dedicated by' said plat of Addison Car Gare with Ar.apho Road (60 feet feet wide) as dedicated by. said plat. of Addison· Car. Care, said point also:being
the most· Easterly Southeast corner.pf said Lot j, from' said point an ·"Xi , . in .concrete· found bears North 44·1;145'45" West, a distance of 4.24 feet; THENCE, SOUTH 44°45'45" WEST
(called SOUTH 48°17' WEST by plat), along said cut back corner and the Southeast line of said Lot 3 a distance of 24.01 feet to an "X" in concrete found in the common existing North
right of way line of said Arapaho Road and South line of said Lot 3, for the most Southerly Southeast corner of said Lot 3; . THENCE, SOUTH 89"49' 45" WEST (called NORTH 89"39' WEST
by plat), along said common line, a distance of 19.93 feet to a "PK" nail set for the beginning of a tangent curve to the left; 􀁔􀁈􀁅􀁎􀁾􀁅􀀬 . WESTERLY, .continuing 􀁾􀁬􀁯􀁮􀁧 said
'conunon line and along 􀁴􀁨􀁾 arc of said curve to the left having a radius of 730.00 feet; a central angle of 9°42'42", a chord bearing South 84°58'25" West for 123.59 feet, for an
arc distance of 123.74 feet (called 12i.82 feet by plat) to a point in a curve of the Southeasterly line of a called 3 & 48/100 acre tract of land conveyed to St. Louis Southwestern
Railway Company of Texas on January 15, 1902 as evidenced by the deed recorded in Volume 278, Page 115 of said 􀁄􀁾􀁥􀁤 Records, said point being the common Southwest corner of said
Lot 3 and the Northwest corner of the dedication of said Arapaho Road by said plat of Addison Car Care; Page 1 of 2
FEB-04-2002 15:22 .-COWLES &THOMPSON PARCEL 1 -ARAPAHO ROAD PROJECT 2146722020 P.05/05 ,. THENCE, NORTHEASTERLY, departing said common line, along the common Northwesterly line of said
Lot 3 and Southeasterly line of said called 3 & 48/100 acre tract, along the arc of a non-tangent curve to the right having a radius of 714.00 feet (called 713.94 feet by plat), a central
angle of 17 0 09' 36", a chord' bearing Nor.th 48 0 24'53" East for 213.04 feet, to 5/Binch iron rod set for the Northeast corner of said Lot 3, being in the West Right Of Way line of
said Addison Road (variable width) as dedicated by. said plat; THENCE, SOUTH 00°18'13" EAST, departing said common line along the common East line of said Lot 3 and West Right Of Way
line of said Addison Road, a distance of 113.47 to the POINT OF BEGINNING; CONTAINING an area of 0.2532 acres or 11,027 square feet of land wrthin the metes recited. All bearings are
referenced to the' North Right of Way' line of Centurion Way, cplled'S' 89 D 51,155" E, according to the final plat of Lot 3,' Surveyor Addition, recorded in Vol. 77173, Page' 135, Deed
Records of Dallas 􀁾􀁯􀁵􀁮􀁴􀁹􀀬 Texas., Pi: ,plat of even' survey date, herewith 'accompanies t.his description. I, Ayub R. Sandhu, a Registered Professional Land Surveyor, hereby certify
that the legal description hereon and the accompanying plat represent an actual survey made on the ground under my supervislon. 􀁾􀁾􀀮􀁾 :40h/ol A}(b:R. Sandhu, R.P.L.S: Texas Registration
No. 2910 Page 2 of 2 TOTAL P.05
Law Offices Of Eddie Vassallo, RC.================ REGENCY PlAZA 3710 RAWUNS, SUITE 1200 DAllAS. TEXAS 75219-4276 August 8, 2001 TELEPHONE (214) 559-7200 􀁔􀁾􀁌􀁅􀁃􀁏􀁐􀁉􀁅􀁒 (214) 559-7209
Mr. Mike Murphy Director of Public Works Town of Addison P. O. Box 9010 Addison, Texas 75001-9010 Via CMRRR-71064575129404067330 Re: Lot 3, Block 1 Addison Car Care Addition to the Town
of Addison Recorded in Vol._ 87111, Pg. 0286 in the Deed Records of Dallas County Dear Mr. Murphy: Please let this letter serve as formal notice that the Law Offices of Eddie Vassallo,
P.C. have been retained to represent the interests of Mr. Dennis Calander, regarding the Town of Addison's acquisition of the above-referenced property. Please direct all further negotiations,
inquiries and correspondence to our client by and through this office. This letter shall further serve as evidence that the Law Offices of Eddie Vassallo, P.C. are authorized to serve
as agents for any required notices, citations and/or other process as may be necessary to acquire the real property. Pursuant to Tex. Prop. Code Ann. § 21.0111, you are requested to
forward copies of any and all appraisal reports used or relied upon in determining the final valuation offer. We would further like the opportunity to participate in the nomination or
selection of the Special Commissioners who may be appointed to serve in the administrative hearing. Should you have any questions regarding our representation and authority, please feel
free to call me at your convenience. Very truly yours, LAW OFFICES OF EDDIE VASSALLO, P.C. £c/..d!.e.-1!OMa.{jpI􀁾 EDDIE VASSALLO EV/cc cc: Mr. Ron Whitehead Addison City Manager Mr.
Dennis Calander Via CMRRR-71064575129404067347 Via First Class Mail
J:,:
TOWN OF ADDISON, TEXAS RESOLUTION NO..R03-090 A RESOLUrlON OF THE TOWN OF ADDISON, TEXAS, AUTHORIZING THE CITY'S ATTORNEY TO ENTER INTO AN AGREED JUDGMENT IN CAUSE NO. CC-02-CS062-E,
TOWN OF ADDISON \I. METRO BRICK COMPANY, INC. AND DENNIS CALANDER, INDIVIDUALLY AND AS PRESIDENT OF METRO BRICK COMPANY, -INC.; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Addison,
Texas, has instituted Cause No. CC-0205062-E, styled The Town of Addison vs. Metro Brick Company, Inc. and Dennis Calander, Individually and As President of Metro Brick Company, Inc.,
to acquire a certain tract of land needed for the extension of Arapaho Road; and WHEREAS, the Special Commissioners appointed by the Court have rendered an award of $95,150.00, which
money has been deposited into the registry of the Court; and WHEREAS, the parties have appeared before a court appointed mediator and reached a settlement of the hereinabove described
case, the total settlement amount approved by the mediator and agreed to by the parties being the sum sum of $155,150.00; and WHEREAS, the City Council of the Town of Addison finds that
it is in the public interest to settle this matter for said amount; Now, Therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE TOWN OF ADDISON, TEXAS: Section 1. That the City's attorney
is hereby authorized to enter into an Agreed JUdgment in The Town of Addison vs. Metro Brick Company, Inc. and Dennis Calander, Individually and As President of Metro Brick Company,
Inc., Cause No. CC-02-05062-E, effectively settling the matter_by providing a total amount of $155,150.00 as compensation for the property, allowable moving expenses, to save further
costs and expense of litigation and to address any and all other matters as set forth in the pleadings on file in this Cause. Section 2. That, as the Town has already deposited the Special
Commissioners' Award of $95,150.00 into the registry of the Court, the Director of Finance is hereby authorized to issue a check in the amount of $60,000.00 payable to Metro Brick, Dennis
Calander, and their attorney with the Law Offices of Eddie Vasallo, P.C. as full and final settlement of The Town of Addison vs. Metro Brick Company, Inc. and Dennis Calander, Individually
and As President of Metro Brick Company, Inc. OFFICE OF THE CITY SECRETARY R03·090
Section 3. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED by the City Council of the Town of Addison, Texas this 9th day of September,
2003. ATTEST: 􀁁􀁐􀁐􀁒􀁏􀁖􀁅􀁾􀁓 TO FORM: I,.._;:/􀁾􀀮 /I! () By: 􀀯􀁾􀀮􀀰􀁜 L()G(;.􀁀􀁾 IKen Dippel, City Attorney OFFICE OF THE CITY SECRETARY R03-090
Steve Chutchian From: Sent: To: Subject: FYI Jim Pierce Tuesday, May 06, 2003 9:46 AM Steve Chutchian; Luke Jalbert FW: Water customers Jim Pierce, P.E. Assistant Public Works Director
P.O. Box 9010 Addison, TX 75001-9010 972-450-2879 -----Original Message-----From: David Wilde Sent: Friday, May 02, 2003 4:29 PM To: Jerry Davis Cc: Phillip Kagarlce; Ron Pelky; Jim
Pierce Subject: Warer customers Jerry, We need to know positively all the buildings served by meter number 5527439 at 15293 Addison Rd. The engineers are trying to determine how to disconnect
the water services at the old Metro Brick, and also the body shop and welding service, as those buildings are set to be demolished. Is there service to the old buildings in the back
of that property? Are they metered with the Car Wash? We need definite information to avoid surprises later. Thank you for timely information. 'Dave 'Wilde Public Works Inspector Town
at Addison PH: 972-450-2847 1
PARCEL 1 A PLAT OF A 0.0380 ACRE (1,657 . SQ. FT.) TRACT OF LAND !N THE EDWARD COOK SURVEY ABSTRACT NO. 326 TOWN 'OF AODISON DALLAS COU'NTY, IEXAS 50 . 0 2550100 􀁾􀁟􀀬 I I ! GRAPHIC
SCALE 1 'INCH = 50 FT. UNE TABLE UNE BEARING CALLED DIST CALLED L1 S 44°45'45-W S4S·17'W 24.01' -L2 S 89°49'45-W NS9·39'W 19.93' 19.9S L3 EAST -9..48' -L4 N 44'55'56-E -43.76' -L5 S
00'18'13-E -21:64' -'. CURVE TABLE CURVE DELTA RADIUS LENGTH CHORD C1 9'42'42-730.00' 123.74' S 84'58'25-W -123.59' C2 1'15'05-714.00' 15.59' N 40'27'38-E -15.59' C3 7"03'24-890.00'
109.61' N '86'28'18-E -109.54' ARAPAHO ROAD • --.... PROPOSED RIGHT OF WAY UNE ·NOTES:. ALL EASEMENTS SHOWN ARE TAKEN FROM THE PLATS INDICATED HtRI;ON. THE SURvEYOR DID NOT ABSlRACT.
THE SUBJECT PROPERTY SO ALL EASEMENTS MAY NOT BE . SHOWN. 􀁁􀂣􀀮􀁌􀁣􀁂􀁅􀁁􀁾􀁉􀁎􀁇􀁓 ARE REFERENCED TOTHENORTH RIGHT OF WAY 􀁉􀀮􀁊􀀬􀁾􀁾􀁑􀁆􀀾􀀺􀁣􀁴􀁾􀀱􀀹􀁾􀁴􀀨􀀩􀁎􀁗􀁁􀁙􀀬􀂷 CAL.4EpS....
􀁾􀀹􀀧􀀵􀀱􀀧􀁾􀀵􀁾 .􀁅􀀢􀁁􀁾􀀹􀀰􀁒􀁄􀁉􀁎􀁇􀁔􀁏 􀁊􀁈􀁾􀁻􀀬􀀧􀀮􀀺􀁆􀀱􀁎􀁾􀀧􀁕􀀻􀁐􀁉􀁽􀁴􀁁􀁭􀀾􀁏􀁆 LOT· 3, SURVE YOR .ADDITION,' RECORDEDJN YOL,77173,"PAGE135,D.R.D.C.T. , A LEGAL DESCRIPTION
OF EVEN SURVEY DATE HEREWITH ACCOMPANIES THIS PLAT.
UNE TABLE .........-' LINE BEARING CALLED DIST L1 S 44°45'45-W S4817'W 24.01' L2 S 89°49'45-W N89'39'W 19.93' L3 S 00i8'13-E 113.47' CURVE TABLE DELTA RADIUS CALLED LENGTH CALLED CHORD
9°42'42-730.00' 123.74' 123.82' S 84°58'25-W -123.59' 17"09'36-714.00' 713.94' 213.04' N 48"24'538 E -213.04' ARAPAHO ROAD NOTES: ALL EASEMENTS SHOWN ARE TAKEN FROM THE PLATS INDICATED
HEREON, THE SURVEYOR DID NOT ABSTRACT THE SUBJECT PROPERTY SO ALL EASEMENTS MAY NOT BE SHOWN. ALL BEARINGS ARE REFERENCED TO THE NORTH RIGHT OF WAY LINE OF CENTURION WAY, CALLED S 89°51'558
E, ACCORDING TO THE FINAL PLAT OF LOT 3, SURVEYOR ADDITION, RECORDED IN VOL. 77173, PAGE 135, D.R.D.C.T. A LEGAL DESCRIPTION OF EVEN SURVEY DATE HEREWITH ACCOMPANIES THIS PLAT. .PK DENOTES
A SET 8pK8 NAIL o DENOTES A FOUND POINT AS INDICATED • DENOTES A 5/88 IRON ROD SET UNLESS OTHERWISE NOTED PROPOSED RIGHT OF WAY LINE ...If 􀁾 . ---PROPOSED PAVING 􀁾 A PLAT OF A 0.2532
ACRE (11,027 SQ. FT.) TRACT OF LAND IN THE EDWARD COOK SURVEY ABSTRACT NO. 326 TOWN OF ADDISON DALLAS COUNTY, TEXAS 50 0 25 50 100 􀁾􀀭__ I I I GRAPHIC SCALE 1 INCH = 50 FT.
Council Agenda Item: SUMMARY: Arapaho Rd., Phase III Right-of-Way Acquisition from Lot 3, Block I, Addison Car 􀁣􀁡􀁲􀁥􀁾􀀭􀁴􀁉􀀭􀁲􀁲􀀧􀁒􀁲􀁬􀀢􀀢􀁾 FINANCIAL IMPACT: Budgeted Amount:
Not Budgeted Cost: it 103,032 Budget Impact: /.Funds are available for right-of-way acquisition in Arapaho Road, 􀁾 Phase 11/111, Project No. 83300 BACKGROUND: The right-of-way acquisition
process is currently underway on the proposed Arapaho Road, Phase III project. It was determined that a 1,657 square foot portion ofland (see attached Parcel 1 map) at the northwest
corner ofAddison Road and the proposed extension ofArapaho Road is required as part ofthe proposed roadway improvements. This parcel is a portion ofa tract of land on Lot 3, Block 1,
Addison Car Care, and owned by Metro Brick Company, Inc. The attached Summary ofFacts states a Just Compensation value of$102,061, including damages to the remaining property, for the
fee-simple taking ofthis parcel. Public Works and Park & Recreation staff evaluated this location and and determined that the Metro Brick Company site would also benefit the Town as
a new hike & bike staging facili • Accordingly, a second appraisal was performed with the purpose ofevaluating e ee-simple taking ofthe entire 11,363 square foot area ofLot 3, Block
1, Addison Car Care. 􀁾􀁾 􀁾􀁵􀁭􀁭􀁡􀁲􀁹 ofFacts states a Just Compensation value of$103,032. RECO\NDATION: It is 􀁲􀁥􀁣􀁯􀁭􀁭􀁾􀁤􀁥􀁤 that Council authorize the City Manager to offer
a total of$103,032 to Metro Brick 􀁃􀁾􀁦􀁾􀁹􀀬 Inc., for the acquisition ofthe entire 11,363 square foot site on Lot 3, Block 1, 􀁁􀁾􀁯􀁮 Car Care.
-."'-.'-.-N -....􀁾􀀺 PARCEL 1 A PLAT OF A 0.0380 ACRE (1,657 SQ. FT.) TRACT OF LAND IN THE EDWARD COOK SURVEY ABSTRACT NO. 326 TOWN OF ADDISON DALLAS COUNTY, TEXAS 50 0 25 50 100 !-wi;
I I I . . GRAPHIC SCALE 1 INCH 􀁾 50 FT. LINE TABLE LINE BEARING CAllED DIST CALlED L1 S 44·45'45" W S4B·17'W 24.01' -L2 S 89'49'45" W NB9·39'W 19.93' 19.93' L3 EAST -9.48' -L4 N 44'55'56"
E -43.76' -L5 S 00'18'13" E -21.64' -CURVE TABLE CURVE DELTA RADIUS LENGTH CHORD C1 9'4-2'42· 730.00' 123.74' S 84'58'25" W -123.59' C2 1'15'05" 714.00' 15.59' N 40"27'38" E -15.59'
C3 7"03'24" 890.00' 109.61' N 86"28'18" E -109.54' ·PK DENOTE S A SET "PK" NAIL o DE NOTE S A FOUND POINT AS INDICATED • ---PROPOSED RIGHT OF WAY LINE '--.. ' . NOTES: ALL EASEMENTS
SHOWN ARE TAKEN FROM THE PLATS INDICATED HEREON. THE SURVEYOR DID NOT ABSTRACT THE SUBJECT PROPERTY SO ALL EASEMENTS MAY NOT BE SHOWN. ALL BEARINGS ARE REFERENCED TO THE NORTH RIGHT
OF WAY LINE OF CENTURION WAY, CALLED S 89·51'55" E. ACCORDING TO THE FINAL PLAT OF LOT 3, SURVEYOR ADDITION, RECORDED IN VOL. 77173, PAGE 135. D.R.D.C.T. A LEGAL DESCRIPTION OF EVEN
SURVEY DATE HEREWITH ACCOMPANIES THIS PLAT.' .' , 􀁾􀀮 ,'I' .. <....
SUMMARY OF SALIENT FACfS ±1,657 SF out of ±11,363 SF at the NW/c of Intersection of Addison Road/Arapaho Road Metro Brick Company, Inc••.Owner . Addison, Texas Date of the Appraisal:
Value Estimated: Property Rights Appraised: Property Appraised: Property Zoned: Highest & Best Use: "As vacant": "As .improved": Estimates of Fee Simple Value: Whole Property Land Value
(Sales Comparison): Cost Approach: Income Approach: Sales Comparison Approach: Whole Property: Part Taken: Remainder Before the Take: Remainder After the Take: Land Value: Cost Approach:
Income Approach: Sales Comparison Approach: Damages to the Remainder: Fb.tal Value Estimate: JUST COMPENSATION May 7, 2001 Market Value -Just Compensation Fee Simple A ±1,657 SF tract
out of a ±11,363 SF tract, located at the NWIc of Addison Rd. & Arapaho Rd., Addison, Texas. PD; office, retail, restaurant, car wash To be assembled with adjacent railroad property
for potential future uses. Interim neighborhood services use, until such time as redevelopment is warranted. $ 56,815 $111,500 $103,032 $ N/A $103,032 $ 15,275 $ 87,757 $ 971 $ N/A $
N/A $ N/A $ 86,786 $102,061 iii
􀀢􀁾􀀮 ";" SUMMARY OF SALIENT FACTS A Whole Property Acquisition at the NW/c of Intersection of Addison Road/Arapaho Road Metro Brick Company, Inc.• Owner Addison, Texas . Date of the
Appraisal: . Value Estimated: Property Rights Appraised: Property Appraised: Property Zoned: . Highest & Best Use: "As vacant": "As improved": Estimates of Fee Simple Value: Whole Property
Land Value (Sales Comparison): Cost Approach: Income Approach: Sales Comparison Approach: Whole Property: Part Taken: . ---Remainder Before the Take: Remainder After the Take: Land Value:
Cost Approach: Income Approach: Sales Comparison Approach: Damages to the Remainder: Final Value Estimate: JUST COMPENSATION ''.. May 24, 2001 Market Value -Just Compensation Fee Simple
A ±11,363 SF tract improved with an office/sales facility, located at the NW/c of Addison Rd. & Arapaho Rd., Addison, Texas. . PD; office, retail, restaurant, car wash To be assembled
with adjacent railroad property for potential future uses. Interim neighborhood services use, until such time as redevelopment is . warranted. $ 56,815 $111,500 $103,032 $ N/A $103,032
$103,032 $.;0-$ N/A $ N/A $ N/A $ N/A $ N/A $103,032 iii
Field Note Description Arapaho Road Project Town of Addison Dallas County, Texas BEING a description of a 0.2532 acre (11,027 square foot) tract of land situated in the Edward Cook Survey,
Abstract Number 326, Town of Addison, Dallas County, Texas, being all of Lot 3, Block 1 of Addison Car Care, an addition to the Town of Addison as evidenced by the map recorded on June
8, 1987 and recorded in Volume 87111, Page 0286 of the Deed Records of Dallas County, Texas, said Lot being conveyed to Metro Brick Company, Inc. on September 11, 1996 and recorded in
Volume 96180, Page 02908 of said Deed Records, Deed calls for Lot 3 of block 1 of said addition; said 0.2532 acre tract of land being more particularly described by metes and bounds
as follows; BEGINNING at a point at the North end of a cut back corner located at the Northwest intersection of Addison Road (variable width) as dedicated by said plat of Addison Car
Care with Arapho Road (60 feet wide) as dedicated by said plat of Addison Car Care, said point also also being the most Easterly Southeast corner of said Lot 3, from said point an "X"
in concrete found bears North 44 ° 45' 45" West, a distance of 4.24 feet; THENCE, SOUTH 44°45'45" WEST (called SOUTH 48°17' WEST by plat), along said cut back corner and the Southeast
line of said Lot 3 a distance of 2 4 . 01 feet to an "X" in concrete found in the common existing North right of way line of said Arapaho Road and South line of said Lot 3, for the most
Southerly Southeast corner of said Lot 3; THENCE, SOUTH 8 9 ° 49' 45" along said common line, set for the beginning of WEST (called NORTH 89°39' WEST by plat), a distance of 19.93 feet
to a "PK" nail a tangent curve to the left; THENCE, WESTERLY, continuing along said common line and along the arc of said curve to the left having a radius of 730.00 feet, a central
angle of 9°42'42", a chord bearing South 84°58'25" West for 123.59 feet, for an arc distance of 123.74 feet (called 123.82 feet by plat) to a point in a curve of the Southeasterly line
of a called 3 & 48/100 acre tract of land conveyed to St. Louis Southwestern Railway Company of Texas on January 15, 1902 as evidenced by the deed recorded in Volume 278, Page 115 of
said Deed Records, said point being the common Southwest corner of said Lot 3 and the Northwest corner of the dedication of said Arapaho Road by said plat of Addison Car Care; Page 1
of 2
PARCEL 1 -ARAPAHO ROAD PROJECT THENCE, NORTHEASTERLY, departing said common line, along the common Northwesterly line of said Lot 3 and Southeasterly line of said called 3 & 48/100 acre
tract, along the arc of a non-tangent curve to the right having a radius of 714.00 feet (called 713.94 feet by plat), a central angle of 17°09'36", a chord bearing North 48°24'53" East
for 213.04 feet, to 5/8 inch iron rod set for the Northeast corner of said Lot 3, being in the West Right Of Way line of said Addison Road (variable width) as dedicated by said plat;
THENCE, SOUTH 00°18'13" EAST, departing said common line along the common East line of said Lot 3 and West Right Of Way line of said Addison Road, a distance of 113.47 to the POINT OF
BEGINNING; CONTAINING an area of 0.2532 acres or 11,027 square feet of land within the metes recited. All bearings are referenced to the North Right of Way line of Centurion Way, called
S 89°51'55" E, according to the final plat of Lot 3, Surveyor Addition, recorded in Vol. 77173, Page 135, Deed Records of Dallas County, Texas. A plat of even survey date herewith accompanies
this description. I, Ayub R. Sandhu, a Registered Professional Land Surveyor, hereby certify that the legal description hereon and the accompanying plat represent an actual survey made
on the ground under my supervision. 􀁾􀁴􀀮􀁌􀁇 It-􀁾􀀭􀀨􀀻􀀱􀀳􀀯􀁯􀁬 Ayub R. Sandhu, R.P.L.S. Texas Registration No. 2910 Page 2 of 2
ARS Ref. # Project TRANSMITTAL FORM o Via Regular Mail o Via Fax @Via Courier. fNext am f;l o Via ARS Personnel 􀁬􀀧􀁾 .....·_·􀁟􀁟􀁊􀁟􀁾􀁊 o Via Client Pickup o Via Lone Star/Fed Ex
To 16801 WESGROVE ---_.....􀁾􀀭􀀭􀀭􀀭􀀭􀁟..􀁟􀀭􀁾􀀭􀀭 ADI:)I§.Ql\I,.IX 􀀷􀀵􀀰􀀰􀀮􀁌􀁟􀁾 Attn STEVE CHUTCHIAN The following items are being transmitted for your: 5910 N. Central Expressway,
Suite 1000, Dallas, Texas 75206 (214) 739-3152 Fax: (214) 750-8823 Date ..::.J!J1y 13,2001 302-01-061 -----ARAPAHO ROAD EXTENSION ----LAND AT NW CORNER OF ARAP. AND ADD. D Review/Comments
D Signature Qty Duse D Approval DFiles D Please return Description of Items D Information copy(ies) for our files 2 Ea. .. Signed and 􀁾􀁾􀁡􀁬􀁥􀁤 Parcel MaQ.._------_._.------Remarks
-_._..----􀀭􀀭􀀭􀁾􀀮􀀭􀀭􀀭􀀭 -----_._----_. Distribution Master File __􀀭􀀽􀁁􀁾􀁹􀁵􀁢 _._".!1gl!.KniglJ.!. _ Transmitted By
12/30/2002 15:37 9722504774 DAL TECH ENGINEERING PAGE 02 December 30, 2002 J!l.iI!ii1iII 􀁅􀁎􀁇􀁉􀁎􀁅􀁅􀁒􀁉􀁾􀁇􀀬 INC. CONSULTING CIVil ENGINEERS /SURVEYORS CONSTRUCTION MANAGERS REVISED
l5 (/fV1fl--''0 􀁉􀁦􀀩􀁬􀀩􀁬􀁾 Steven Z. Chutchian, P.E., R.P.L.S. Assistant City Engineer Town of Addison 16801 Westgl'Ove P.O. Box 9010 Addison, Texas 􀀷􀀵􀀰􀀰􀀱􀁾􀀹􀀰􀀱􀀰 HE: Platting
and Surveying Services for Town of Addison Addison, Texas DTE Job 0144 Dear Steve: DAt-TECH Engineering, Inc. is pleased to resubmit our revised fee proposal per Mr. Jim Pierce's comments,
to perfoml the necessary services to prepare plats for two (2) parcels of property located at the intersections of Arapaho Road and Addison Road, and Arapaho Road and Surveyor's Boulevard,
per our meeting ofDecember 19, 2002 and documents provided to us by your office. Our budget estimate for each ofthe two plats is as follows: 1. Plat of area owned by the City of Addison
and containing "Parcel 14" ofthe proposed Arapaho Road (at intersection of Arapaho Road and Surveyor Boulevard): .DJi:SCRIPTION BOURS RATE COST 2-Man Field Party 22 $122.00 $2,684.00
1 Man w/GPS 5 $150.00 $ 750.00 Principal 4 $160.00 $ 640.00 RPLS 20 $ 84.00 $1,680.00 Survey Technician 35 $ 68.50 $2,397.50 Secretary/Typist 10 $ 44.00 $ 440.00 Abstractor 6 $ 50.00
$ 300.00 Reproduction $ 225.00 (Lump Sum) Travel Expens.es TOTAL BUDGET $ 9,116.50 F;\0244 -PI.tUng Al),d Surveying SeMCt1JlPfQPQulslRtviled Fee f'r<lpos;aI.ChutchillQ 1;l-30.Q2.doc
17311 DAllAS PKWY I STE 200 I DAllAS, TX 75248 I 97Z·250·2727 I FAX 972·250·4774 222 W. EXCHANGE /FT. WORTH, TX 76101 /817-626-8777 I FAX 817-626-5777 www.daHech.com
12/30/2002 16:37 9722504774 DAL TECH ENGINEERING PAGE 03 2. RepJat of Lot 3, Block 1, Addison Car Care Addition (contains "Parcell" at intersection ofArapaho Road and Addison Road) ofthe
proposed Arapaho Road: llESCRlPTION HOURS RATE COST 2-Man Field Party 22 $122.00 $2,684.00 1 Man w/GPS 5 $150.00 $ 750,00 Principal 4 $160.00 $ 640,00 RPLS 20 $ 84.00 $1,680,00 Survey
Technician 35 $ 68.50 $2397.50 Secretary/Tyvist 10 $ 44,00 $ 440.00 Abstractor 6 $ 50.00 $ 300.00 Reproduction $ 225.00 (Lump Sum) Travel Expenses TOTAL BUDGET $ 9,116.50 The total proposed
fee for both plats is 518,233.00. We are prepared to conunence this survey upon your authorization. We propose to complete this work in 25 working days, Please advise ifyou have any
questions regarding this estimate. Sincerely, DAL-TECH Engineering, Inc. 1';\0244 -Plaiting and Surveying SE{Vic£s\Pr(lpo5l18\1'ltvj8£d fee Pl'OJlolllChutchi&ll 12·30·02.doc
12/30/2002 15:37 9722504774 DAL TECH ENGINEERING PAGE 01 To: FuNo: From: Subject: Date: Total Pages: Mr. Chutcbian, DAL-TECH Engineering, Inc. 17311 Dallas Parkway Suite 200 Dallas,
Texas 75248 972-250-2727 972-250-4774 Fax FAX TRANSMITTAL Mr. Steve Chutchian, P.E. Town of Addison (972) 􀀴􀀵􀀰􀁾􀀲􀀸􀀳􀀷 Sedi A. Toumani, P.E. Revised Fee Proposal for Platting and
Sunreying Senrices December 30. 2002 3 (including cover)Please review the attached revised fee proposal and let us know ifthis is acceptable, so that we can send you the originals. If you have any questions, please do not hesitate to give
me a call. Sedi
nmumr ENGINEERING, INC. CONSULTING CIVIL ENGINEERS /SURVEYORS CONSTRUCTION MANAGERS December 20, 2002 VIA HAND DELIVERY Steven Z. Chutchian, P.E., R.P.L.S. Assistant City Engineer Town
of Addison 16801 Westgrove P.O. Box 9010 Addison, Texas 75001-9010 RE: Platting and Surveying Services for Town of Addison Addison, Texas DTEJob 0244 Dear Steve: DAL-TECH Engineering,
Inc. is pleased to submit our fee proposal to perform the necessary services to prepare plats for two (2) parcels of property located at the intersections of Arapaho Road and Addison
Road, and Arapaho Road and Surveyor's Boulevard, per our meeting ofDecember 19, 2002 and documents provided to us by your office. Our budget estimate for each of the two plats is as
follows: 1. Plat of area owned by the City of Addison and containing "Parcel 14" of the proposed Arapaho Road (at intersection of Arapaho Road and Surveyor Boulevard): DESCRIPTION COST
3-Man Field Party $3,780.00 Principal $ 640.00 RPLS $1,680.00 Project Coordinator $1,450.00 Survey Technician $2,150.00 Secretary/Typist $ 433.00 Reproduction $ 225.00 (Lump Sum) Travel
Expenses TOTAL BUDGET $10,358.00 F:\0244 -Platting and Surveying Services\Proposals\Fee Proposal.Chutchian 12-20-02.doc 17311 DALLAS PKWY /STE 200 /DALLAS, TX 75248 /972-250-2727 /FAX
972-250-4774 222 W. EXCHANGE /FT. WORTH, TX 76101 /817-626-8777 /FAX 817-626-5777 www.dal-tech.com
2. Replat of Lot 3, Block 1, Addison Car Care Addition (contains "Parcel 1"at intersection of Arapaho Road and Addison Road) ofthe proposed Arapaho Road: DESCRIPTION COST 3-Man Field
Party $3,490.00 Principal $ 590.00 RPLS $1,650.00 Project Coordinator $1,345.00 Survey Technician $2,100.00 Secretary/Typist $ 433.00 Reproduction $ 225.00 (Lump Sum) Travel Expenses
TOTAL BUDGET $ 9,833.00 The total proposed fee for both plats is $20,191.00. We are prepared to commence this survey upon your authorization. We propose to complete this work in 25 working
days. Please advise if you have any questions regarding this estimate. Sincerely, DAL-TECH Engineering, Inc. 􀁊􀁊􀁾 Sedi A. Toumani, P.E. SAT/dkj F:\0244 -Platting and Surveying Services\Proposals\Fe
e ProposaI.Chutchian 12-20-02.doc
AGREEMENT FOR PROFESSIONAL SERVICES Between DAL-TECH Engineering, Inc. and Town of Addison TIllS AGREEMENT, entered into at Addison, Dallas County, Texas ,on the 20th day of December,
2002 ,by and between Town of Addison ,hereinafter called "CLIENT," and DAL-TECH Engineering, Inc., a Dallas corporation, hereinafter called "DALTECH," is as follows: The CLIENT engages
DAL-TECH to perfonn professional servIces for a project described as Platting and Surveying Services for Town ofAddison The CLIENT and DAL-TECH, for mutual consideration hereinafter
set forth, agree as follows: A. DAL-TECH agrees to provide and perfonn certain professional services for CLIENT upon the Project as follows: See Attached "Fee Proposal" B. CLIENT agrees
to pay DAL-TECH as compensation for its services as follows: Lump Sum fee $20,191.00 for listed services on attached "Fee Proposal" to be paid monthly as the work progresses. C. Period
in which services are to be rendered: __􀁔􀀽􀀭􀁷􀀽􀁥􀁮􀀺􀀺􀀮􀁴􀁹􀁾􀁆􀀺􀀺􀀻􀀮􀀻􀁩􀁾􀁶􀀮􀀺􀀺􀀺􀁥􀀮􀀮􀁌􀀨􀀽􀀲􀀵􀀺􀀺􀀮􀀮􀀩􀁲􀀮􀀮􀀮􀁗􀀮􀀮􀀺􀀮􀀮􀀺􀀮􀀮􀀺􀁯􀀺􀀺􀀮􀀺􀀺􀁲􀁾􀁫􀁩􀀽􀂷􀁮􀀺􀀽􀁊􀁧􀁉􀁉􀀮􀀮􀀮􀀽􀀺􀀺􀁄�
�.􀀮.y.􀀺.􀀺"􀁡 ,,"s_ 1. AUTHORIZATION FOR WORK TO PROCEED Signing of this AGREEMENT for services shall be authorization by the CLIENT for DALTECH to proceed with the work, unless stated
otherwise in the WORK AUTHORIZATION/AGREEMENT. 2. STANDARD OF PRACTICE Services perfonned by DAL-TECH under this AGREEMENT will be conducted in a manner consistent with that level of
care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions. No other representation, expressed or implied, and
no warranty or guarantee is included or intended in this AGREEMENT, or in any report, opinion, document or otherwise. 3. BILLING AND PAYMENT The CLIENT, recognizing that timely payment
is a material part of the consideration of this AGREEMENT, shall pay DAL-TECH for services perfonned in accordance with the rates and charges set forth herein. Invoices will be submitted
by DAL-TECH on a monthly basis and shall be due and payable within thirty (30) calendar days of invoice date. If the CLIENT objects to all or any portion of an invoice, the CLIENT shall
so notify DAL-TECH in writing within ten (10) calendar days of receipt of the bill in question, and pay when due that portion ofthe invoice, not in dispute. F:\0244 -Platting and Surveying
Services\Proposals\Agreement for. Professional Services.12-20-02.doc
4. LIMITATION OF LIABILITY In order for the CLIENT to obtain the benefits of a fee which includes a lesser allowance for risk funding, the CLIENT agrees to limit DAL-TECH's liability
arising from DAL-TECH's professional acts, errors or omissions, such that the total aggregate liability of DAL-TECH shall not exceed DAL-TECH's total fee for the services rendered on
this project. 5. CONSEQUENTIAL DAMAGES The CLIENT shall not be'liable to DAL-TECH and DAL-TECH shall not be liable to the CLIENT for any consequential damages incurred by either due
to the fault of the other, regardless of the nature of this fault, or whether it was committed by the CLIENT or DALTECH, their employees, agents or subcontractors. Consequential damaged
include, but are not limited to loss of use and loss ofprofit. 6. TERMINATION In the event termination becomes necessary, the party (CLIENT or DAL-TECH) effecting termination shall so
notifY the other party and termination shall so notifY the other party and termination will become effective fourteen (14) calendar days after receipt of the termination notice. Irrespective
of which party shall effect termination or the cause of termination, the CLIENT shall within thirty (30) calendar days of termination remunerate DAL-TECH for services rendered and costs
incurred up to the effective time of termination, in accordance with DAL-TECH's prevailing fee schedule and expense reimbursement policy. 7. ADDITIONAL SERVICES Any services beyond those
specified will be provided for separately under an additional Work Authorization or amended Work Authorization. IF ANY ONE OR MORE OF THE PROVISIONS CONTAINDED IN TIllS AGREEMENT SHALL
BE HELD UNENFORCEABLE, THE ENFORCEABILITY OF THE REMAINING PROVISIONS SHALL NOT BE IMPAIRED. IN WITNESS WHEREOF, the parties hereto have accepted, made and executed this agreement upon
the terms, conditions, and provisions above stated, and on the reverse side hereof, the day and year first above written. DAL-TECH Engineering, Inc. Officer Signature: _􀁾􀁾􀀮􀀮􀀮􀀮􀀬􀁾􀁟By:
􀁾􀀭 Tt?/U?Zloi Title: %$dd Town of Addison, Client Signature: _ By: _ Title: _ F:\0244 -Platting and Surveying ServiceslProposals\Agreement for Professional Services.12-20-02.doc
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01/02/2003 10:44 J 2147395941 HIPES AND ASSOCIATES HIPES & ASSOCIATES 7557 Rambler Road Suite 260, LB 2S DaIJas. TCDII 75'231 (214) 739-5941 Facsimilt Transmittal PAGE 01 To: FaxN: From:
Dale: Matter: Pases: STEVEN Z. CHYICHIAN 912.450,2837 Mark A. HiDes 2 January 2003 MetrQ Brick • Summary Page 2 COMMENTS:
Steve Chutchian From: Sent: To: Cc: SUbject: Gents, Michael Murphy Tuesday, December 31, 20022:07 PM Ron Whitehead; Chris Terry Jim Pierce; Steve Chutchian FW: Metro Brick Below is the
latest from our attorney's regarding Metro Brick, Call with any questions ..... -----Original Message-----From: MIGHELL, TOM [mailto:tmighell@cowlesthompson.com] Sent: Tuesday, December
31, 2002 11:48 AM To: 'mmurphy@ci.addison.tx.us' Cc: HILL, JOHN; DIPPEL, KEN Subject: Metro Brick We met today to discuss our plan of action with regard to Metro Brick. This week, we
are going to propose that Metro Brick and Addison enter into an Interim Agreed Order on both pieces of property, as follows: 1. Metro Brick will vacate both parcels on or before February
15, 2003; 2. Metro Brick will pay rent due from September 2002 through February 15, 2003; 3. Metro Brick will allow Addison representatives to enter the property for the purpose of environmental
and other testing necessary to prepare the property for demolition and construction; 4. If Metro Brick does not vacate by February 15, Addison will have the sheriff serve a Writ of Possession
on both pieces of property, and evict Metro Brick from the premises at their expense. I (or John) will get back to you when we hear a response from Metro Brick. Please let me know if
you have any questions. Have a Happy New Year! Tom Tom Mighell Cowles & Thompson, P.C. 901 Main Street, Suite 4000 Dallas, Texas 75202 (214) 672-2181 (214) 672-2381 (Fax) tmighell@cowlesthompson.com
http://www.cowlesthompson.com 1
Steve Chutchian From: Sent: To: Cc: Subject: GUys, Michael Murphy Monday, December 16,20021 :56 PM Ron Whitehead; Chris Terry Steve Chutchian; Jim Pierce FW: Metro Brick Below is a message
from John Hill detailing the decision of the JP hearing last week regarding Metro Brick. Call with any questions. Mike -----Original Message-----From: HILL, JOHN [mailto:jhill@cowlesthompson.com]
Sent: Monday, December 16, 2002 10:44 AM To: Mike Murphy (E-mail) Cc: DIPPEL, KEN; MIGHELL, TOM Subject: Metro Brick ****************************************************************************
*IMPORTANT/CONFIDENTIAL: This message contains information from the law firm of Cowles & Thompson, P.C. which may be privileged, confidential, and exempt from disclosure under applicable
law. If the reader of this message is not the intended recipient or the employee, or agent responsible for delivering the message to the intended recipient, you are hereby notified that
any dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately at our telephone
number (214) 672-2000 **************************************************************************** ** Mike--as we discussed this morning, the JP Court entered a Judgment dated December
12, 2002 in the Metro Brick forcible entry and detainer matter. I will fax a copy of the Judgment to you today. The terms of the Judgment and the process for Metro Brick to file an appeal
from the Judgment are as follows: The Judgment provides that the Town of Addison shall have: 1. Possession of the premises; 2. Rent owed in the sum of $2,382.07; 3. Attorney Fees of
$1,000.00 4. Interest on the judgment at 10% per annum. Although it's not stated, Metro Brick must vacate the premises within 5 days of the Judgment, which means that legally Metro Brick
must vacate by tomorrow, December 17. After that, the Town is entitled to have the court enter a writ of possession, so that the sheriff can remove Metro Brick from the premises. Metro
Brick has a right of appeal --this is to the County Court, and it is trial de novo. They may do so by filing an appeal bond by December 17. Failure to file an appeal bond by this date
deprives the County Court of jurisdiction. Within 5 days of filing the appeal bond, Metro Brick must provide the Town with notice of the appeal. 1
When the appeal is perfected, further proceedings in the JP court (i.e., the writ of possession) are suspended. The JP Court must file a transcript with the County Court "immediately",
but no specific time limit is prescribed. After the transcript is on file 8 days, the case is subject to trial at any time. We would need to contact the specific court once the appeal
is filed to determine their procedure on scheduling FED appeals for trial. We will let you know once we determine whether or not Metro Brick has filed an appeal bond. If you have any
questions or desire any additional information, please let me know. John 2
r -􀀼􀁾 U.S. Postal SerVllce ' CERTIFIE[\ MAIL RECEIPT (Domestic Ma.;1 Only: No Insurance Coverage Provided) Postage $ Certified Fee CJ Return Receipt Fee ..D (Endorsement Required)
<0 Restrtcted DelivaI}' Fee CJ (Endorsement Required) Total Postage & Fees DYes D Agent D Addressee DYes DNo D. deli address different from item 1? If YES, enter delivery address below:
SENDER: COMPLETE THIS SECTION • COfr,plete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. • Print your name and address on the reverse \ so that we can return
the card to you. • Attach this card to the back of the mailpiece, ( or on the front if space permits. 􀀧􀁉􀀻􀀻􀀻􀀻􀁾􀀧 ! 􀀬􀁾􀁾􀁾􀁾􀁾􀀮􀁾􀀮􀁊􀀮􀁬 D Express Mail D Return Receipt for
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0_004 9719 5372 i' PSForm 3.811 ,. JUly 1999 Domestic Return Receipt I'· ,'., .. .... , 102595·00·M·095
2Certified Mail Provides: • A mailing receipt • A unique Identifier for your mailpiece • A signature upon delivery • A record'of delivery kept by the Postal Service for two years Important
Reminders: • , • Certified Mail may ONLY be combined with First-Class Mail or Priority Mail. ill Certified Mail is not available for any class of Interoati6niil 􀁲􀁩􀁬􀁡􀁩􀁾􀁾 • NO INSURANCE
COVERAGE IS PROVIDED';with-eertitied'Maii. For valuables, please consider Insured or Registered Mail. ... , • For an additional fee, a Retum Receipt may I;le requested to provide proof
of delivery. To obtain Return Receipt service, please complete and attach a fletum Receipt (PS Form 3811) to the article and add applicable postage to cover the fee. Endorse mallpiece
"Return Receipt Requested':. To receive a fee waIver for a duplicate return receipt, a USPS postmark on yOl.I.r Certified Mall I;9C6lpt Is required. . ., " • For an additional fee, delivery
may be restricted; to the addressee or addressee's authorized agent. Advise the clerk or mark the mailpiece with the endorsement "Restricted Delivery". i • If a postmark on the Certified
Mall receipt is desired, please present the article at the post officE' for postmarking. If a postmark on the Certified Mall receipt is not needeQ., detach and affix label with postage
and mail. IMPORTANT: 􀁓􀁡􀁾􀁥􀁾􀁉􀁓 rec!llpt and present it when making an inquiry. " PS Form 3800, April 2002 􀁾􀀸􀁖􀁂􀁲􀁳􀁂􀀩 "'-.:c.. .) 102595·02·M·1132 UNITED STATES POSTAL SERVICE
III"I First-Cfass Mail Postage & Fees. Paid USPS Permit No. G-H1 • 􀁳􀁥􀁾􀁩􀁮􀁴 your name, address, d ZIP+4 in this box. /t?},/A/􀁾 -. '7?o" 􀁂􀁾􀁫􀀮􀀹􀁾􀀯􀁃􀁊 /6?d/􀁍􀁾􀁾􀀯􀁚􀀭􀁾􀁾
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􀁾􀀭􀀭 I TOWN OF .ADDISON OFFICE OF THE CITY MANAGER (972) 450-7001 • FAX (972) 450-7043 􀁾􀀺􀀬􀀬􀁾􀁾􀁩􀁾􀀧􀀨􀁾􀁾􀁴􀀺􀀺􀁾􀀢􀀦􀀺􀀮􀁊􀁲􀀧􀀮􀀻􀁩􀁬􀁩􀀧􀀺􀀬􀁾􀁩􀁲􀀻􀀮􀁾􀁦􀁾􀁳􀁴􀀡􀀡􀁗􀁎􀀴􀁴􀁩􀁩􀁬􀀧􀀶􀁾􀁾􀀢
􀁴􀁾􀁽􀁍􀁾􀀮􀁾􀁾􀁜􀀩􀁦􀀺􀁩􀀺􀀺􀀺􀁴􀀡􀁾􀀡􀁊􀀮􀀬􀀻􀀻􀁾􀁾􀀺􀀩􀀮􀀺􀀬 ® 􀀧􀀺􀀺􀀺􀁾􀀻􀀺􀀻􀀺􀀺􀀢􀀻􀀺􀀺􀀽􀀧􀀺􀀺􀀢􀀢􀀷􀀧􀀺􀀺􀀧􀀺􀀺􀀷􀀺􀀺􀀺􀀭􀀺􀀻􀀺􀀺􀀺􀁾􀀽􀁾􀀺􀀢􀀺􀀺􀀢􀀢􀀧􀀢􀀭􀀭􀀭􀀭􀀭􀀭􀀢􀀺􀀧􀁾􀀢􀀢􀀺􀀧􀀺􀀻􀀧􀀻
􀀻􀀢􀀢􀀻􀀢􀀺􀀧􀀻􀁾􀁾􀁾􀁾􀁾􀁾 Post Office Box 9010 Addison, Texas 75001-9010 5300 Belt Line Road October 24, 2002 Mr. Dennis Calander Metro Brick Company 15301 Addison Road Dallas County,
TX 75001 Re: Lease of Property Located at 15301 Addison Road, Addison, Texas Dear Mr. Calander: Your annual rent for the above-referenced property was due September 1, 2002. As your
lease of the property is terminated effective November 1, 2002, we have prorated the amount due to cover the months of September and October 2002 only. Based on your current annual rent
of $8,694.56, the amount due is $1,449.10. Please deliver or forward a check made out to the Town of Addison in the amount of $1,449.10 no later than October 31, 2002 to the following
address: Mr. Ron Whitehead City Manager Town ofAddison P.O. Box 9010 5300 Belt Line Road Addison, Texas 75001-9010 Thank you for your attention to this matter. Sincerely, 􀀷􀀼􀀭􀀭􀁃􀁕􀁴􀁾􀁃􀁾􀁏
Ron Whitehead City Manager Docwnent #: 1025144
􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀽􀀻􀀻􀀺􀀺􀀽􀀽􀀽􀀮􀁾 􀁁􀁾􀁄􀁷INsooFN .filJ OFFICE OF THE CITY MANAGER ® Post Office Box 9010 Addison, Texas 75001-9010 September 20, 2002 Mr. Dennis Calander Metro Brick
Company 15301 Addison Road Dallas County, TX 75001 (972) 450-7001· FAX (972) 450-7043 5300 Belt Line Road Re: Notice of Termination of Lease of Property Located at 15301 Addison Road,
Addison, Texas 75001 Dear Mr. Calander: On December 21, 2001, the Town of Addison, Texas (the "City") purchased certain land from the Union Pacific Railroad Company. At the time of the
purchase, a portion of that land was the subject of a Lease Agreement entered into on September 20, 1997 by and between St Louis Southwestern Railway Company, as Landlord, and Metro
Brick Company, as Tenant (the "Lease Agreement"). The City has succeeded to the interests of and is the Landlord under the Lease. Pursuant to Section 13B of Exhibit B of the Lease, you
are hereby notified that the Lease is terminated effective November 1, 2002. You must surrender the property to the Town of Addison on or before November 1,2002. As provided by Section
15 of Exhibit B of the Lease Agreement, you must remove from the leased premises all structures, property and other materials not belonging to the Town by or before November 1,2002,
and restore the surface of the ground to as a good a condition as the same was in before such structures were erected or such materials were thereon placed. If restoration and removal
cannot be completed by November 1, 2002, please contact the City's Director of Public Works, Mr. Mike Murphy, at 972-450-2871 and additional time may be provided for you to complete
this requirement. Any additional time provided shall not extend beyond December 1, 2002. If restoration and removal are not completed by December 1, 2002, the Town may exercise its options
under Section 15B of Exhibit B of the Lease Agreement, or it may seek other remedies pursuant to the terms of the Lease Agreement or as otherwise allowed by law. Sincerely, Ron Whitehead
City Manager Document #: 1019666
(ftt.I. MICHAEL E. MURPHY, P.E. Director of Public Works (972) 􀀴􀀵􀀰􀁾􀀲􀀸􀀷􀀸 (972) 450-2837 FAX mmurphy@ci.addison.tx.us E-mail Town ofAddison 16801 Westgrove Dr. P.O. Box 9010, Addison,
Texas 75001-9010 I
(Itt_I. PUBLIC WORKS MEMORANDUM FAX COVf3R SHf3f3T TO.. David/Uohn.son Pa;x-(Z4) 672::2020 FTCOM.rMike 􀁦􀁖􀀱􀁵􀁲􀁰􀁨􀁹􀁾 lJirel5tcrrofPubtiz;-Work$Mm:ti50n Ftl)C #. !37:2) *50'-:2g37
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NOV-21-2002 15:03 COWLES &THOMPSON COWLES &THO.MPSON A Professional Corporation ATTORNEYS AND COUNSELORS FACSIMILE COVER PAGE 2146722000 P.01/06 Date: November 21 , 2002 Time: _ Total
Number of Pages (including this sheet): 6 TO: FROM: Normal/Rush: Normal (1) Chris Terry David A Johnson Client/Matter #: 3305-60972 FAX: 972-450-2837 Direct Dial #: (214) 672-2186 MESSAGE:
Town of Addison v Metro Brick: Please sign verification, have it notarized and return to me. Thanks! IF YOU HAVE ANY PROBLEMS WITH THIS TRANSMISSION, PLEASE CALL OUR SERVICE CENTER AT
(214) 672·2508 or Christy Trimble at (214) 672-2570 Thank you. IMPORTANT\CONFIDENTIAL: This message is intended only for the use of the individual or entity to which it is addressed.
This message contains information from the law firm of Cowles & Thompson which may be privileged, confidential, and exempt from disclosure under applicable law, If the reader of this
message is not the intended recipient or the employee, or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution,
or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately at our telephone number (214) 672·2000. We will
be happy to arrange for the return of this message to us, via the United States Postal Service, at no cost to you. D ALL A S T V l f R liOI MAIN STREET SUITE 4000 DALLAS, TEXAfI 15202-37"
TtL. 214."72.2000 fAX Z14.672.2020 WWW.COWlESTHOM PSO N.C 0 M
NOU-21-2002 15:03 COWLES &THOMPSON CAUSE NO. _ 2146722000 P.02/06 TOWN OF ADDISON § Plaintiff, §§ 􀁾 §§ METRO BRICK COMPANY, INC., and § DENNIS CALANDER, § Defendants. § IN THE JUSTICE
COUIRT PRECINCT 3, PLACE: A DALLAS COUNTY, TEXAS COMP.tA.INT FOR FORCIBLE DETAINER COMES NOW, TOWN OF ADDISON, Pla.intiff, and complains of METRO BRICK COMPANY, INC. and DENNIS CAl.ANDER
and for cause of action respectfully represents to the Coun the following: Parties and Service of Citation t. Plaintiff Town of Addison is a municipal corporation duly fonned and existing
under the laws of the State of Texas, and having its location ill Dallas County, Texas. 2. Defendant Metro Brick Company, Inc. is a corporation duly formed and existing under the laws
of the State of Texas, and may be served by service on its President, Dennis Calander, at t 5301 Addison Road, DaHas, Dallas County, Texas, 75001. 3. Defendant Dennis Calander is an
individual residing in Dallas County, Texas, who may be served at his place of business, Metro Brick, inc., 15301 Addison Road, Dallas, Dallas County, Texas, 75001. 4. The Town of Addison
is the owner of certain land in Addison, Dallas County, Texas, (the ··Subject Property") as more particularly described in the Special Warranty Dc:ed from Union Pacific Railroad Company
to the Town of Addison, a copy of which is attached hereto as Exhibit A and inCOJPorated herein. The Town of Addison is also the assignee, owner COMPLAINT FOR FORCIBLE DETAINER-Page.l
Onc.umenl 11: I U::!HJH:
NDV-21-2002 15:04 COWLES & THDI'1PSDN 2146722000 P.03/06 and holder of the landlord's interest in that certain Lease agreement ("Lease") with lessee Mc;:tro Brick Company dated September
20, 1997, and relating to the Subject Property. A true copy of the Assignment and Assumption Agreement regarding the Lease is attached hereto as Exhibit B and incorporate herein by reference.
A true copy of the Lease is attached to the Assignment and Assumption Agreement. 5. Defendants are presently occupying the Subject Properly pursuant to the Lease 6. The Lease is tenninable
without cause upon 30 days' notice. Section 13(B) of the Lease states: Notwithstanding the tenn of this Lease set forth \\1 Arti.cle ILA., Lessor or Lessee may terminate this Lease without
cause upon thirty (30) days' notice to the other party; provided, however, that at Lessor's election, no such termination by Lessee shall be effective wlless and until Lessee has vacated
and restored the Premises as required in Section 13(A), at which time Lessor shall refund to Lessee, on a pro rata basis, any uneamed rental paid in advance. 7. On September 20, 2002,
the Town of Addison served written Notice of Tennination validly terminating the Lease as of November 1, 2002 and demanding that Defendants vacate the SUbject Property. This written
notice was seJ>led upon Defendants in full compliance with Section 13(B) of the Lease. Forcible DetliinerlRight of Possession 8. The Town of Addison is entitled to imlncdiate possession
ofthe Subject Propclty. The Defendants, despite notice and demand to vacate the property, have failed, refused, Clnd cO\ltinue to fail and refuse to vacate the Subject Property and remove
all property and materials they placed thereon, thereby committing a forcible detainer and breach of the Lease. Th.e Town of Addison is therefore entitled to and seeks judgment for restitution
and possession of the Subject Property. COMPLAINT FOR FORCIBLE DETAINER -Pice 2 􀁛􀀩􀁯􀁾􀁉􀁉􀁉􀁜􀀱􀁃􀀺􀁬􀁉􀁬 D· I􀁏􀁚􀁾􀀴􀀱􀁬􀁾
NOV-21-2002 15:04 COWLES &THOMPSON Claim for Unpaid Rent 2146722000 P.04/06 9. The teans of the lease agreement provided for rent to be paid to the Plaintiff in the amount of $7,500.00
per year, with a three percent (3%) increase annually compounded increalse. The total amount owed by Defendants on September 1, 2002 was $8,694.56. This amOill1t was prorated due to
the teullination of the lease, and a demand for payment of $1,449.10 was mad.e on October 24, 2002. The Defendants have fa.i led and refused and continue to fail and refuse to pay the
rental owed. Moreover, the Defendants' holding over after the expiration of the lease agreement entitles the Town of Addi.son to additional rent in an undetennined amount within the
jurisdictional limits of this Court. Attorneys' Fees and Court Costs 10. Exhibit B, Section 20 of the Lease states the following: If either party retains an attorney to enforce this
Lease (including, without limitation, the indemnity provisions of this Lease), the prevailing party is entitled to recover reasonable attorneys' fees. Under this provision of the Lease,
Plaintiff is entitled to recover attorney's fees in a sum that is reasonable in relation to the amowlt of work expended in preparation and trial of this cau.se. This amount of attorneys'
fees to which Plaintiff is entitled is currently undetennincd but is within the jurisdictional limi.ts of tb,is Court. Further, Plaintiff is entitled to recover all costs of court in
this matter under Texas Property Code §24.006(d). WHEREFORE, PREMISES CONSIDERED, Plaintiff The Town of Addison pnlys that Defendants be cited. to appear and answer, and that on final
trial, Defendants be adjudged guilty of forcible detainer, a writ of possession be issued giving Plaintiff its rightful possession of the leased property, restitution of the leased property
be made to Plaintiff, the Plaintiff recover from the Defendants rents due within the jurisdi.ctionallimits of this Court, the Plaintiff recover COMPl.AINT FOR FORCIBLE DETAINER -Page
3 􀁄􀁵􀀢􀀢􀁭􀁵􀁮􀁬􀁬􀁾􀀧 1028482
NOV-21-2002 15:04 COWLES & THOI'1PSON 2146722000 P.05/06 from the Defendants attorneys' fees within the jurisdictional limits of this Court, that Plaintiff recover all costs of court,
and for such other and fiJrther relief, both at law and in equity, to which it may show itselfjustly entitled. Respectfully sUbmitted, COWLES & THOMPSON, P.e. By:.=SI=M-=-=IS=RA;::-:""'E=L="'"O=F=F--
----Texas BarNo. 10435380 THOMAS L. MIGHELL Texas Bar No. 14028020 901 Main Street, Suite 4000 Dallas, IX 75202 (214) 672-2000 (214) 672-2020 (Fax) ATTORNEYS FOR PLAINTIFF TOWN OF ADDISON,
TEXAS COMPLAINT FOR FORCIBLE DETAINER -Page 4 Dacunlen, ft'; 1UJ....J
NOU-21-2002 15:04 COWLES 8. THOMPSON VERIFICATION 2146722000 P.06/06 STATE OF TEXAS §§ COUNTY OF DALLAS § Before me, the undersigned authority, on this day personally appeared Chris
Terry, known to me to be a person oflawful age, qualified in all respects to make this Veri.fication, and who, being first duly sworn upon oath states and affirms that he is the Assistant
City Manager for the Town of Addison, the Plaintiff in the above-captioned cause, that he has read the Plaintiffs Complaint for Forcible Detailler, and that he has either personal knowledge.
or knowledge from public records, of all facts stated in the Complaint of Forcible Detainer, each ofwhich is true and correct.SWORN TO AND SUBSCIUBED before me by C'h(. ;s .-reI' r 7
ou this􀁾 day of October, 2002, to certilY which witness my hand and official seal. COMPLAINT FOR FORCIBLE DETAINER -Pllgl: 5 Unt.l.Il\1tftl": 1􀁑􀁬􀁦􀁬􀀴􀁒􀁾 TOTAL P.06
8L .􀁁􀁾􀁄􀁷INSOOFN .fil.J (972) 450-7000 􀁲􀁾􀁾􀁾􀀭􀁾􀀧􀁾􀁾􀀭􀀭􀀭􀀧􀀭􀀭􀀭􀀭􀀭􀁾􀀭􀀭􀁾􀁊􀂮 􀁾􀁐􀁯􀁾􀁳􀁴􀁾􀁏􀁾􀁾􀁾􀁣􀁥􀁾􀁂􀁾􀁾􀁾􀀹􀁾􀀰􀀱􀁾􀀰􀁾􀁾􀁁􀁤􀁾􀁾􀁾􀁳􀁯􀁾􀁮􀀮􀁾􀁾􀁾􀁘􀁡􀁾􀁓􀁾􀀷􀀵􀁾􀀰􀀰􀁾􀀱􀀭􀁾􀀹
􀀰􀁾􀀱􀀰􀁾􀁾􀁾􀀵􀁾􀀳􀀰􀁾􀁏􀁂􀁾􀁥􀁾􀁕􀁾􀁾􀁾􀁮􀁥􀁾􀁒􀁾􀁯􀁡􀁾􀁤􀁾􀁾􀁾􀁆􀁾􀁾􀁾􀀨􀀹􀁾􀀷􀀲􀁾􀀩􀁾􀀴􀀵􀁾􀀰􀁟􀁾􀀷􀀰􀁾􀀴􀀳 TO WHOM IT MAY CONCERN Please be advised that the attached document is
a true and correct copy ofa letter to Mr. Dennis Calander, dated September 20,2002, which bears the signature of Ron Whitehead, City Manager. Duly certified by Carmen Moran, City Secretary
for the Town of Addison on the 19th day of November, 2002 􀁃􀁾 City Secretary ATTEST: SEAL
OFFICE OF THE CITY MANAGER ® Post Office Box 9010 Addison, Texas 75001-9010 September 20,2002 Mr. Dennis Calander Metro Brick Company 15301 Addison Road Dallas County, TX 75001 (972)
450-7001 • FAX (972) 450-7043 5300 Belt Line Road Re: Notice of Termination of Lease of Property Located at 15301 Addison Road, Addison, Texas 75001 Dear Mr. Calander: On December 21,
2001, the Town of Addison, Texas (the "City") purchased certain land from the Union Pacific Railroad Company. At the time of the purchase, a portion ofthat land was the subject of a
Lease Agreement entered into on September 20, 1997 by and between St Louis Southwestern Railway Company, as Landlord, and Metro Brick Company, as Tenant (the "Lease Agreement"). The
City has succeeded to the interests of and is the Landlord under the Lease. Pursuant to Section l3B of Exhibit B of the Lease, you are hereby notified that the Lease is terminated effective
November 1, 2002. You must surrender the property to the Town of Addison onor before November 1,2002. 1,2002. As provided by Section 15 of Exhibit B of the Lease Agreement, you must
remove from the leased premises all structures, property and other materials not belonging to the Town by or before November 1, 2002, and restore the surface of the ground to as a good
a condition as the same was in before such structures were erected or such materials were thereon placed. If restoration and removal cannot be completed by November 1, 2002, please contact
the City's Director of Public Works, Mr. Mike Murphy, at 972-450-2871 and additional time may be provided for you to complete this requirement. Any additional time provided shall not
extend beyond December 1, 2002. If restoration and removal are not completed by December 1, 2002, the Town may exercise its options under Section 15B of Exhibit B of the Lease Agreement,
or it may seek other remedies pursuant to the terms of the Lease Agreement or as otherwise allowed bylaw. Sincerely, 􀁋􀁾􀁗􀁾 Ron Whitehead City Manager Document#: 1019666
(972) 450-7000 􀀧􀀭􀁟􀁾􀁾􀁾􀀭􀀺􀀭􀁾􀁾􀁟􀀺􀁾􀀽􀀻􀀧􀁾􀀻 􀁾􀀮 __ 􀀺􀀭􀀽􀀭􀁟􀁾 ® _Po_st_O_ffi_lce_B_ox_9_0_1O__Ad_di_·so_n,_li_ex_as_75_00_1_-90_1_0 5_30_0_Be_1t_Lin_e_R_oa_d 􀀻􀀮􀀻􀀬􀁆􀁁􀁘􀁾􀀨􀀹􀀻􀀮􀀻􀀮
􀀷􀁾􀀲􀀩􀀮􀀮􀀻􀀻􀀴􀀵􀀻􀀮􀀻􀀻􀀬􀀰􀀭􀀮􀀮􀀻􀀮􀀷􀀰􀀻􀀻􀀮􀀻􀀮􀀻􀀻􀀬􀀴􀀳 TO WHOM IT MAY CONCERN Please be advised that the attached document is a true and correct copy of a letter to Mr. Dennis
Calander, dated October 24, 2002, which bears the signature of Ron Whitehead, City Manager. Duly certified by Carmen Moran, City Secretary for the Town of Addison on the 19th day of
November, 2002 􀁻􀀻􀁾 City Secretary ATrEST: SEAL
OFFICE OF THE CITY MANAGER (972) 450-7001· FAX (972) 450-7043 􀁾􀀿􀁔􀁷􀁹􀁾􀀢􀁗􀁴􀁾 ® 􀁾􀁐􀁯􀀭􀁳􀁴􀁾􀁏􀁾􀁦􀁦􀁩􀁾􀁬􀁣􀀭􀁥􀁾􀁂􀁯􀀭􀁸􀁾􀀹􀀰􀁾􀀱􀁾􀀰􀀭􀁁􀁾􀁤􀁤􀁾􀁩􀁳􀀭􀁯􀀭􀁮􀀬􀁾􀁾􀀭􀁥􀁸􀀭􀁡􀁳􀁾􀀷􀁾􀀵􀀰􀁾􀀰
􀀭􀀱􀀮􀀹􀁾􀀰􀀭􀀧􀀱􀀰􀁾􀀭􀀭􀀭􀀭􀀭􀀢􀀢􀀻􀀢􀀢􀀢􀀻􀀢􀀭􀀭􀀭􀀵􀀳􀀭􀀰􀀭􀀰B"';'e-lt"';'L-in-e-Ro-ad 􀁏􀁣􀁴􀁯􀁢􀁾􀁲 24, 2002 Mr. Dermis Calander Metro Brick Company 15301 Addison Road Dallas
CoUIity, TX 75001 Re: Lease of Property Located at 15301 Addison Road, Addis,on, Texas Dear Mr. Calander: Your annual rent for the above-referenced property was due September 1, 2002.
As your lease of the property is terminated effective November 1, 2002, we have prorated the amount due to cover the months of September and October 2002 only. Based on your current
annual rent of $8,694.56, the amount due is $1,449.10. Please deliver or forward a check made out to the Town ofAddison in the amount of $1,449.10 no later than October 31, 2002 to the
following address: Mr. Ron Whitehead City Manager Town ofAddison P.O. Box 9010 5300 Belt Line Road Addj.son, Texas 75001-9010 Thank you for your attention to this matter. Sincerely,
K--CuUcL:J Ron Wbitehead City Manager Document #: 1025144
Steve Chutchian From: Sent: To: Cc: Subject: Importance: Metro Brick Prorated rent Michele, Michael Murphy Thursday, October 24, 2002 3:57 PM Michele Covino Steve Chutchian FW: Metro
Brick -Letter Re Prorated Rent High Please print the attached letter on City Manager letter head for Ron's sig. Please return to Public Works for delivery. Thanks ..... call with any
questions. -----Original Message-----From: Washington, Angela [mailto:awashington@cowlesthompson.com] Sent: Thursday, October 24, 2002 11:20 AM To: 'mmurphy@ci.addison.tx.us' Cc: DIPPEL,
KEN; HILL, JOHN Subject: Metro Brick -Letter Re Prorated Rent Importance: High Mike -Pursuant to your meeting with John and Ken yesterday, enclosed is a letter to Metro Brick regarding
rent due on the property. It should be sent or preferably hand delivered immediately as we are requiring payment no later than October 31, 2002. Let me know if you have any questions
or changes. Angela «Metro Brick -Prorated rent» 1
COWLES &THOMPSON A Professional Corporation ATTORNEYS AND COUNSELORS THOMAS L. MIGHELL 214.672.2181 TMIGHELl.@COWLESTHOMPSON.COM October 31,2002 Mr. Ron Whitehead Town of Addison P.O.
Box 9010 Addison, Texas 75001-9010 Re: Town ofAddison vs. Metro Brick Company, Inc.; Cause No. CC-02-05062-E Our File No. 3305/60962 Dear Mr. Whitehead: Please be advised that the court
has set the above-referenced case for trial on April 28. 2003. at 9:00 a.m. The court has also appointed Maxine Aaronson as mediator, and has ordered that mediation take place before
March 28, 2003. Please make a note of these dates on your calendar. If you have any questions, please do not hesitate to give me a call. Sincerely, 􀁾􀁌􀁾 Thomas L. Mighell TLM cc: Mike
Murphy Ken Dippel Sim Israeloff LAS ."' 1026325 T Y L E R 901 MAIN STREET SUITE 4000 DALLAS, TEXAS 75202·3793 TEL 214.672.2000 FAX 214.672.2020 WWW.COWLESTHOMPSON.CDM
September 20, 2002 Mr. Dennis Calander Metro Brick Company 15301 Addison Road Dallas County, TX 75001 Re: Notice of Termination of Lease of Property Located at 15301 Addison Road, Addison,
Texas 75001 Dear Mr. Calander: The Town of Addison, Texas (the "City") purchased certain land from the Union Pacific Railroad Company. At the time ofthe purchase, a portion ofthat land
was the subject ofa Lease Agreement entered into on September 20, 1997 by and between St Louis Southwestern Railway Company, as Landlord, and Metro Brick Company, as Tenant (the "Lease
Agreement"). The City has succeeded to the interests of and is the Landlord under the Lease. Pursuant to Section 13B of Exhibit B of the Lease, you are hereby notified that the Lease
is terminated effective November 1, 2002. You must surrender the property to the Town of Addison on or before November 1,2002. As provided by Section 15 of Exhibit B of the Lease Agreement,
you must remove from the leased premises all structures, property and other materials not belonging to the Town by or before November 1, 2002, and restore the surface of the ground to
as a good a condition as the same was in before such structures were erected or such materials were thereon placed. If restoration and removal cannot be completed by November 1, 2002,
please contact the City's Director of Public Works, Mr. Mike Murphy, at 972-450-2871 and additional time may be provided for you to complete this requirement. Any additional time provided
shall not extend beyond December 1, 2002. If restoration and removal are not completed by December 1, 2002, the Town may exercise its options under Section 15B ofExhibit B ofthe Lease
Agreement, or it may seek other remedies pursuant to the terms of the Lease Agreement or as otherwise allowed by law. Yours truly, Ron Whitehead, City Manager Town ofAddison Document#:
1019666
OFFICE OF THE CITY MANAGER moWNiii n,**i¥\il!M!1wg""\i?!Mi$:::SWiI CIil Post Office Box 9010 Addison, Texas 75001·9010 July 16, 2001 Mr. Dennis Calander Metro Brick Company, Inc. 15301
Addison Road Addison, Tx 75001 (972) 450-7000 • FAX (972) 450-7043 5300 Belt Line Road . . .􀁾􀀭 . RE: Lot 3, Block 1 Addison Car Care Addition to the Town of Addison Recorded in Vol.
87111, Pg. 0286 in the Deed Records ofDaJJas Co. Dear Mr. Calander: In February 2000, the Town ofAddison elected to sell bonds in order to fund six construction projects. Included in
these projects is the extension ofArapaho Road, from 􀁁􀁤􀁤􀁩􀁾􀁯􀁮 Road to Marsh Lane. At this time, we are in the right-of-way acquisition phase ofthe project, in order to extend Arapaho
Road to the west. TheTown ofAddison has determined thepublic need to acquire all ofthe tract of land that is owned by you and is currentiy':6cetipied by Metro Brick Company, Inc. The
public purpose for this land acquisition is the necessary right-of-way for the Arapaho Road project along with related municipal uses including public parks and open spaces. The firm
ofHipes & . Associates appraised the property on May 24, 2001. The attached summary sheet shows the fair market value ofthis whole taking is $103,032. One June 26, 2001, the City Council
ofthe Town ofAddison authorized me to make an offer to purchase this 11,363 square foot tract of land at the appraisal value of$103,032. The Town ofAddison requests that you respond
to this offer ofpurchase within thirty (30) days ofthe date ofthis letter. Ifwe do not hear from you within the thirty (30) days, the Town will consider its offer rejected and we will
initiate eminent domain proceedings to acquire the property. . Should you have any questions, please feel free to contactMr. Mike Murphy; Director of Public Works, at (972) 450-2886,
or me. . . Sincerely, Ron Whitehead . City Manager '.
,_ .. 􀁾􀀬 .. . 􀀧􀁾􀁾􀀭􀁾􀀡􀁾􀁾􀁾􀀻􀀺􀁾􀁾􀁾􀀺􀁾􀀿􀀻􀁾􀀻􀀻􀀼􀁾􀀢􀀧􀀮􀀧 ..= . 􀀡􀁩􀁴􀁾􀁩􀁊􀀧A 􀁾􀁯􀁬􀁥􀁐􀁲􀁯􀁰􀁾􀁁􀁾􀁾􀁴􀁩􀁏􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀽􀁩􀀺􀀺􀀺􀀺􀁤􀁭􀁏􀁮􀁒􀁾􀁁􀁲􀁮􀁰􀁡􀁨􀁯Road
" ' '00 'MetroBrick .Company, Inc.:' Own'er 000 ,'; ,0: Addison, Texas ' Date of the Appraisal: Value Estimated: '. 􀁾􀀧􀀮 .., Property Rights Appraised: Property Appraised: Property
Zoned: 0 Highest & Best Use: "As vacant": "As improved": 0 Estimates of Fee Simple Value: Whole Property 0 Land Value (Sales Comparison): Cost Approach: Income Approach: Sales Comparison
Approach: Whole Property: Part Taken: o Remainder Before the Take: Remainder After the Take: Land Value: Cost Approach: Income Approach: Sales Comparison Approach: Damages to the Remainder:
Final Value Estimate: JUST COMPENSATION .:. '. oMay 24, 2001 Market Value -Just Compensation Fee Simple A ± 11,363 SF tract improved with an office/sales facility, located at the NW/c
'of Addison Rd. & Arapaho Rd., Addison, Texas. PD; office, retail, restaurant, car wash To be assembled with adjacent railroad property for potential future uses. o Interim 􀁮􀁾􀁩􀁧􀁨􀁢􀁯􀁲􀁨􀁯􀁯􀁤
services use, until such time as redevelopment is warranted. $ 56,815 $111,500 $103,032 $ N/A $103,032 $103,032 000 $ .,.0-$ N/A $ N/A $ N/A $ N/A $ N/A $103,032 iii
􀁾􀀭􀀭􀀮􀀭􀀮􀀬 June 3, 1996 061$96 JUN , I 1900 .' . FAIRWAY . t-' . GROUP 􀁾􀀻􀀢􀀬􀁜􀁰􀀭􀁲 􀀢􀀮􀁾 r REAL ESTATE /􀁾 -,,,b '. 􀀮􀁟􀁾 ,-1 ./􀁬􀁴􀀱􀁾 Mr. John Baumgartner Director of Public
Works Town of Addison 16801 Westgrove Drive \ P. O. Box 144 Addison, Texas 75001-0144 RE: 11,363± square feet of land located at the northwest corner of Addison Road and future Arapaho
Road in the Town of Addison, Dallas County, Texas Dear John: Pursuant to our meeting approximately a month ago, please be advised that the owners of the above referenced property are
desirous of entering into a Contract of Sale with the Town of Addison to sell the above referenced property. As we discussed in our meeting and in a couple of telephone conversations
prior to the meeting, I have been authori7-Cd to offer this land to you at a price of $1 0.00 per square foot or $113,630.00. I genuinely feel that I can deliver this property to you
with a summer 1996 closing date at a bottom dollar price of around $100,000.00. This property is owned by Car Wash Properties North V, L.P. The Managing General Partner is Weyand Investment
Trust with the signatory being Richard W. Weyand, Trustee. The address ofrccord is 5710 LBJ Freeway, Suite 328, Da'llas, Texas 75230. I know that you have been waiting on word from the
City Manager so as to proceed in this matter. I would greatly appreciate it if you could give me a call with an update on the timing under which we might proceed with this acquisition.
Also, please find enclosed a copy of the Easement Dedications for the drainage easement that Milton J. Noell granted to the City of Addison back in March 1979. As you may recall this
is the easement that runs east and west through the excess land north of the Waterworks Car Wash and south of future Arapaho Road. I mentioned to you in our meeting that I had been told
that Mr. Noell possibly added a special condition to the granting of this easement and sure enough, he did. D:\CONTRAC1\BMGRTNR.LTR 613/96 4011 West Plano Parkway, Suite 116 Plano, Texas
75093 (214) 985·0500
Mr. John Baumgartner June 3, 1996 Page 2 Thank you for your help regarding this matter and please know that I will look forward to hearing from you. Sincerely, GROUP,REALESTATE RF:lz
Ene. I D:\CONTRACl\BMGRTNR.LTR 613196
\ \ .. //. I . :: /.. NOlF.: TilE FOLLOWING DLI\NI<ET EASEMENTS I\FFECr TillS SUDJECT TnACT OF LI\ND (NO r PLOTTI\ULE): YOL. 1530. i'G. 1175 YOLo 5757. PG. 121 􀁙􀁏􀁌􀀮􀁕􀀳􀀰􀁾􀀹􀀮 PG.II07
YOLo U3053.PG. 20011 YOLo 09057. PG. 0357 "" "\ .. \... \ .. I I
:.,) .. ' 0 KNON ,\LL 􀁈􀁃􀁾􀁉 BY TIlES!: PRESE:.lTS: 'I'll E:-: c:I: , sOllthC'rly 20 feet, more or !e::::, in the cast line 01' railroad property I'(lr ;1 point; Tl/l:o'oiCI:, $ollth,
11!}0 43'00" J:, ;WII feet, more or Il'S':, to the 1'11\:-:"1' Ill' III:C;lllNIN<:, :11111 􀁬􀁬􀁥􀀺􀀧􀁣􀁲􀁩􀁨􀁩􀁮􀁾 :11'''rl::<:dd 111 1'0llt 􀁃􀁜􀁬􀁬􀁬􀀺􀀺􀁾􀁲􀁬􀁬􀀮􀀮􀀺􀁴 1'ln casement.
Sped;!\ C:onditlon:;: (;RA;.ITor: re;o;erVes the right to construct f:rci It ies ol'er the ,Ir:lin:,!:<' C':lscrIH.'lItS. T11l;.':r.E, nlon.!! :'<1111 curved 􀁒􀀬􀁏􀀮􀁉􀁾􀀮 line 10.00
fC'ct, ,"ore or less, to :1 pCo.nt; maldn!: u 10,nll foot caserlC'nt; 'f1II::-JCI:, South, 89 0 /43'00" E, J01 feC't, more or les:<, to thc 􀀱􀀧􀀨􀀱􀁉􀁾􀁲 (11' I1I:C:J1.::-II:-I(;, ;lnl!
de::crihlll!: :lfores:liJ III foot .I raIn:lJ.:c en:;el:.ent. 􀁔􀁉􀁉􀁅􀁾􀁬􀁃􀁅􀀬 North, 00 17'00" E, 10.00 [eet, to n point; rrcr;Nr.E, ;.Iorth, /l!l0 􀁾􀀳􀀧􀁯􀁮􀀢 􀁉􀁾􀀮 3110 feet,
more or 􀁬􀁥􀁾􀁾􀀬 to a point In thC' clirvC'11 􀁥􀁡􀁾􀁴􀁃􀀧􀁲􀁬􀁹 1t.0.11'. Ilnll of the :>aint I,Ollls :lnl! 􀁾􀁯􀁵􀁴􀁨􀁈􀁥􀁳􀁴􀁥􀁲􀁦􀁬 Itallroad property; TII':NCI:, North, 89 0 0'00"
I\', 2!11l feet, lIfore or 􀁬􀁾􀀧􀀺􀀺􀁳􀀬 ttl :I l'oLlt in tlie Cllst 1l.(1,li. linc of 1':1; 1ro:,,1 pr0I'Cl'tr; neinE: a tr:lct of Illlld 111 the 􀁲􀀺􀁊􀁉􀁾􀁮􀁲􀁤 Cook :;urvey, Ahstr:lct
:-10. 326, <llId being more particul:lrly iJescriheJ ,I S r0 I i 􀁏􀁉􀁾 s : T111::-IC:r., :\orth, 00 l7'nn" 􀁬􀁾􀀬 􀁨􀁥􀁪􀁮􀁾 in the Ne:;t R.n.I';. linC' uf "ddis<ll1 Iload .in,Uo (eet,
morc or 􀁉􀁾􀀧􀀧􀀧􀁳􀀬 to :I point, $:li<1 !,oint hl'inr. till' southcast corner of constrllction e;I:<C'IIIC'nt; :11111 thC' 51:1.0:';11 POINT OF 􀀱􀁉􀀱􀀺􀀨􀀺􀁉􀁎􀀺􀀭􀁈􀀺􀁾􀁲􀀮􀀺 r.OWII:,'Jr.I:.lG
;It the Intersection of the centerlines of I\elt 1.lne 111111 ,\d,li:;OIl Ro'lds; thence, :-: 00 17'00" E, Idth the centerline of Addison Road, 1103.50 feet to n point; thence, 1'1 89
0 ,13'OU" 􀁉􀁾􀀬 30.00 feet, to a point on the ,,'est R.(1.I\'. line of Alldison /load, 􀁾􀀺􀁬􀁬􀁣􀁬 point 􀁢􀁥􀁩􀁮􀁾 the I'Or.'JT OF 􀁉􀁉􀁉􀀺􀁃􀀻􀁉􀁓􀀬􀀧􀁩􀁉􀁾􀁲􀀮􀀺 􀁾 􀁾 • • ·•. 􀁩􀁜􀁾􀁅􀁾􀁩􀁅􀁎􀁔
OED I 􀁃􀁁􀁔􀁬􀁏􀀺􀀭􀁊􀁾 (2) D3D F:::C'ED TIIAT the unJcr:;lllned, 􀁾􀁬􀁩􀁬􀁴􀁯􀁮 J. Noell, herein::lfter C:llied " Grantor", for 1I good <lnJ v;ll"::Ible consideration, the receipt
:lfld sufricient:y of which is herehy <lckno\;}ec.lJ.:ed, lloes hereby 􀁾􀁲􀁡􀁮􀁴 to the CITY OF AlJlll:;ON, TEXAS, hereinafter c:llled "Gr;lntec", :I 10 foot dr:tin::lge casement <lnJ
<120 foot construction casement for the purpose of constructinJ.:,opcrating anJ maint:llning ::I 60" di::lmeter :;trlrJJl 􀀺􀀻􀁥􀁬􀁾􀁥􀁲 line over 1I11U "l'l'O:-S Grnntor'S lanJ loc::lted
on the ,;est side of the 􀁥􀀺􀁤􀁳􀁴􀁩􀁮􀁾 Right 􀁯􀁦􀀮􀁬􀁾􀁡􀁹 line of AJdison Road, City of ,\ddison, Dall;ls Count)". Texas lind more pnrtLcularly described ;IS folloHS: COUNTY Of
DALLAS .,
'. /q PK 3 lZ ...... -.... ' ......-.., I 􀁾 􀁾 ,. • ........,... #-...., ... -...-......,. _-I ,..... ." • .,..-......... ... , '--I ..-. • hlhl .. A.elllftfl) h.lI flO ""1.1 '19 DEC
I ;lVO r.: I p'V/'y' flo d'1 v l. D.hc.I"'7 />< -.,
Item #R11 f?ove 0 j1f&(2-6/tJ f Consideration of a Resolution authorizing the City Manager to enter into negotiations with 15211 Addison Road Joint Venture to purchase 0.0558 acres of
permanent right-of-way located at Lot 2, Block 1, Addison Car Care. Item #R12 -Consideration of an Ordinance amending the Town of Addison FY 2000-01 Annual Budget. Item #R13-Presentation
and discussion of General Fund and Hotel Fund nonprofit requests for the FY 2001-02 budget. Item #R14 -Presentation and review of 2nd quarter financial report and the preliminary City
Manager's General Fund and Hotel Fund budgets for FY 2001-02. Adjourn Meeting Posted 5:00 p.m. June 20, 2001 Carmen Moran City Secretary THE TOWN OF ADDISON IS ACCESSIBLE TO PERSONS
WITH DISABILITIES. PLEASE CALL (972) 450-2819 AT LEAST 48 HOURS IN ADVANCE IF YOU NEED ASSISTANCE. City Council Agenda 06-26-01
3. The term "bar", "tavern" or any equivalent term associated with alcoholic beverages shall not be used in exterior signs. Voting Aye: Braun, Bradbury, Doepfner, Hirsch, Niemann Voting
Nay: None Absent: Ryland Administrative Recommendation: Administration recommends approval Item #R9 -Consideration of a Resolution authorizing the City Manager to enter into a contract
in an amount not to exceed $21,220.00 with the Waters Consulting Group to conduct a Departmental Audit of Public Works. Attachmenst: 1. Council Agenda Item Overview 2. Memorandum to
Ron Whitehead 3. Letter to Mike Murphy 4. Proposed Work Plan/Contract Administrative Recommendation: Administration recommends approval Item #R1 0 -Consideration of a Resolution authorizing
the City Attorney to initiate eminent domain proceedings to acquire a .2532 acre tract of land, Lot 3, Block 1 of Addison Car Care Addition from Metro Brick Company, Inc. Said property
to be used for Arapaho Road and related park uses. Attachments: 1. Council Agenda Item Overview 2. Resolution 3. Letter to Metro Brick Company Inc. 4. Letter to Mike Murphy Administrative
Recommendation: Administration recommends approval City Council Agenda 02-12-02
COWLES &THOMPSON A Professional Corporation ATTORNEYS AND COUNSELORS KENNETH C DIPPEL 214.672.2158 KDIPPEL@COWLESTHOMPSON.COM July 10,2001 VIA FAX (972) 45 -2837 Mr. Mike M hy, P.E.
Director Public Works Town Addison P.O. ox 9010 A tlison, TX 75001-9010 RE: Right-of-Way Acquisition Metro Brick Company Joe's Auto Body Dear Mike: Pursuant to Steve Chutchian's letter
of July 3, 2001, enclosed are my changes to Steve's letters to two property owners on Addison Road regarding the taking of right-of-way for the proposed Arapaho Road Extension project.
If you will note, I do not want to send the two property owners any of the right-of-way parcel maps for each site. Thank you for your attention to this matter. If you have any questions,
please give me a call. ..􀀼􀁬􀀭􀁃􀀮􀀶􀁾 enneth C. Dippel KCD/yjr Enclosures Mr. Steve Chutchian, Assistant City Engineer Town of Addison D ALL A S DocumenlT 959609 T Y L E R McKINNEY
901 MAIN STREET SUITE 4000 DALLAS, TEXAS 75202-3793 TEL 214.672.2000 FAX 214.672.2020
Mr. Dennis Calander Metro Brick Company, Inc. 15301 Addison Road Addison, TX 75001 RE: Lot 3, Block 1 Addison Car Care Addition to the Town of Addison Recorded in Vol. 87111, Pg. 0286
in the Deed Records of Dallas Co. Dear Mr. Calander: In February 2000, the Town of Addison elected to sell bonds in order to fund six construction projects. Included in these improvements
is the extension of Arapaho Road, from Addison Road to Marsh Lane. At this time, we are in the right-of-way acquisition phase of the project.The Town of Addison has determined the public
need to acquire all of the tract of land that is owned by you and is currently occupied by Metro Brick Company, Inc. The public purpose for this land acquisition is the necessary right-of-way
for the Arapaho Road project along with related municipal uses including public parks and open spaces. The firm of Hipes & Associates appraised the property on May 24, 2001. The attached
summary sheet shows the fair market value of this whole taking is $103,032. On June 26,2001, the City Council of the Town of Addison authorized me to make an offer to purchase this 11,363
square foot tract of land at the appraised value of $103,032. The Town of Addison requests that you respond to this offer of purchase within thirty (30) days of the date of this letter.
If we do not hear from you within the thirty (30) days, the Town will consider its offer to be rejected and we will initiate eminent domain proceedings to acquire the property. Should
you have any questions, please feel free to contact Mr. Mike Murphy, Director of Public Works, at (972) 450-2886, or me. Sincerely, Ron Whitehead City Manager Document * 9'9'93
Mr. Kim Forsythe Sambuca Jazz Cafe 3333 Earhart, Suite 140 Carrollton, Texas 75006 RE: 15211 Addison Road Joint Venture located at the Southwest Corner of the Addison Road!Arapaho Road
Intersection Town of Addison, Dallas County, Texas Dear Mr. Forsythe: The Town of Addison is in the process of extending Arapaho Road from Addison Road to Marsh Lane. Your organization
"The 15211 Addison Road Joint Venture" owns a tract of land consisting of 1.6188 acres that will be affected by the 'new roadway. The City needs to acquire 2,432 square feet ofland at
the North end of your real property. Mr. Pat Haggerty, our real estate consultant, will be in contact with you to discuss this project. Under state law, the City is required to pay fair
market value for the land it purchases. Although the land needed for the road is small in comparison to your entire property, it will affect the two northern most buildings on your property.
Mr. Haggerty will discuss with you the proposed compensation and its affect on your ownership and the leases on the property. We are in hopes of arriving at a mutually and satisfactory
resolution of this matter. Sincerely, Ron Whitehead City Manager Documcrll , 959714
PUBLIC WORKS DEPARTMENT 􀁾􀀶􀀡􀁬􀀡􀀡􀁎􀀡􀀧􀁩􀀱􀁬􀀡􀁬􀀡􀁬􀁬􀀧􀁬􀀡􀀡􀁬􀁬􀁬􀁬􀀡􀁭® Post Office Box 9010 Addison, Texas 75001-9010 FlAX Coversheet To: Ken Dippel Fa)( (.214) 67.2-.20.20
Front: Mike Murphy, Diy. ofPubLic wor/es/Addison Fa)( [;)7.2) 450-.2g(37 off [;)7.2) 450-.2g(7g( suij: Arapaho R.oad R.DWAcquisition Date: August:1..3, .2001 (v..umberofpages i/ILCtudi"'13
atr,/er -:2) Attached is a Letter I received from Mr. vassaLLo regardivt.g Lot3 BLock :l ofthe AddisoJll, car care AdditoJll, (Metro Brick Property). caLL me with aJll,y questioJll,s.
(972) 450-2871 16801 Westgrove
-----------------------------------.----------.-.. ---.. -__ ._._._ .. --. CERTIFIED MAIL Law Offices Of Eddie Vassallo, P.C. REGENCY PLAZA 3710 RAWLINS, SUITE 1200 DALLAS, TEXAS 75219-4276
I ?LDb 1f575 ],2.... DIfDb 733D RETURN RECEIPT REQUESTED /11111111111111111111111111.1111111111111111111111111111111111 Mr. Mike Murphy Director of Public Works Town of Addison P. O.
Box 9010 Addison, Texas 75001-9010
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Sent by: ARS ENGINEERS 2147508823j 07/09/01 11 :55AM;#538j Page 1/1 Ju]y 9, 200] Luke Jalbert Town of Addison 5300 Belt Line Road Dallas. Texas 75240-7606 Civil Engineering • Plallning
• Surve.ving RE:Arapaho Road Extension-Property Survey of Parcel 1 showing Improvements ARS Proposal No. 160..01-079 Dear Mr. Jalbert; In response to a Request for Proposal, ARS Engineers, Inc. is pleased
to present this proposal for Professional Services for the referenced project. SCOPE Prepare a Survey Plat showing improvements and Description of Lot 3, Block 1 of the Addison Car Care
Addition. Delivery ARS Engineers, Inc. will be able to deliver two (2) signed and sealed Plats and Descriptions on or before Friday July 20, 2001. ARS Engineers proposes to perfonn the
Work outlined above for a Lump Sum Fee ofOne Thousand, Eight Hundred Dollars ($1,800.00). If you have any questions regarding this proposal, please feel free to call me at (214) 739-3152.
If this proposal is acceptable, please have an authorized representative representative ofyour finn sign below and return one original letter to our office with Notice to Proceed. 􀀴􀁾􀁾
Hugh W. Knight, RPLS Survey Manager 􀁾􀁔􀁈􀁏 ATION Accepted by: 􀁾􀀭􀀽􀀺􀀺􀀽 _ Printed Name:· :J :c. ,Lc.:e Title: 􀀱􀀴􀁳􀁾 .. 􀁐􀁾􀁢 I'CvJk-9 ./)J{'el.· Date: 7 -q,-.O l Consulting
Engineers 5910 N. Central Expressway· Suite /000 • Dallas. Texas 75206 • Phone (2/4) 739-3/52 • Fax (214) 750-8823 e-mail: mail@arsen!:rLcom website: www.arsengrs.com
Civil Engineering • Planning • Surveying July 9,2001 Luke Jal bert Town of Addison 5300 Belt Line Road Dallas, Texas 75240-7606 RE: Arapaho Road Extension-Property Survey of Parcel 1
showing Improvements ARS Proposal No. 160-01-079 Dear Mr. Jalbert; In response to a Request for Proposal, ARS Engineers, Inc. is pleased to present this proposal for Professional Services
for the referenced project. SCOPE Prepare a Survey Plat showing improvements and Description of Lot 3, Block 1 of the Addison Car Care Addition. Delivery ARS Engineers, Inc. will be
able to deliver two (2) signed and sealed Plats and Descriptions on or before Friday July 20, 2001. ARS Engineers proposes to perform the Work outlined above for a Lump Sum Fee ofOne
Thousand, Eight Hundred Dollars ($1,800.00). If you have any questions regarding this proposal, please feel free to call me at (214) 739-3152. If this proposal is acceptable, please
have an authorized representative ofyour fmn sign below and return one original letter to our office with Notice to Proceed. 􀀣􀁾 Hugh W. Knight, RPLS Survey Manager '. J;( Accepted
by: 􀁟􀁾􀀤􀁱􀀺􀀻􀁾􀁾􀁾􀀽􀀭􀀭 _ Printed Name: • C... l 􀁥􀁖􀀧􀁴􀀭􀁾 Title:JhsUb( LC-W 􀁫􀁾 􀁢􀀬􀁲􀁾 Date: J;"'l (-6 J Consulting Engineers 5910 N. Central Expressway • Suite 1000 • Dallas,
Texas 75206 • Phone (214) 739-3152 • Fax (214) 750-8823 e-mail: mail@arsengrs.com • website: www.arsengrs.com
SuMMARY OF SALIENT FACfS A Whole PropertY Acquisitionst the NW/c ofIntersection of Addison 􀁾􀁯􀁡􀁤􀀯􀁁􀁲􀁡􀁰􀁡􀁨􀁯 Road .Metro'Brick .Company, Inc. 􀁾 Owner . . 􀁾 .: Addison, Texas
. Date ofthe Appraisal: Value Estimated: Property Rig,,1?:!S Appraised: Property Appraised: Property Zoned: . Highest & Best Use: "As vacant": "As im.Pf,9ved": . Estimates of Fee Simple
Value: Whole Property . Land Value (Sales Comparison): Cost Approach: Income Approach: Sales Comparison Approach: Whole Property: Part Taken: . '. . Remainder Before the Take: Remainder
After the Take: Land Value: Cost Approach: Income Approach: Sales CompariSon Approach: Damages to the Remainder: Final Value Estimate: JUST COMPENSATION ...... .May 24,2001 Market Value
-Just Compensation Fee Simple A ± 11,363 SF tract improved with an office/sales facility, located at the NW/c .of Addison Rd.. & Arapaho Rd., Addison, Texas. PD; office, retail, restaurant,
car wash To be assembled with adjacent railroad property for potential future uses. Interim Interim 􀁮􀁥􀁩􀁧􀁨􀁢􀁯􀁲􀁾􀁯􀁯􀁤􀁳􀁥􀁲􀁶􀁩􀁣􀁥􀁳 use,. until such time as redevelopment is
warranted. $ 56,815 $111,500 $103,032 $ N/A $103,032 $103,032 .... $.,0.: $ N/A $ N/A $ N/A .$ N/A f'N/A $103,032 iii
July 3,2001 Mr. Dennis Calander Metro Brick Company, Inc. 15301 Addison Road Addison, Texas 75001 Re: Lot 3, Block 1 Addison Car Care Dear Mr. Calander: DRAF'" In February 2000, the
Town ofAddison elected to sell bonds in order to fund six individual construction projects. Included in this list ofimprovements is the extension of Arapaho Road, from Addison Road to
Marsh Lane. At this time, we are in the right-ofway acquisition phase ofthis project. The Town ofAddison has determined the need to acquire your entire 11,363 square foot tract ofland
that is currently occupied by Metro Brick Company, Inc. This taking will provide necessary right-of-way for the proposed Arapaho Rd. project and associated municipal park & recreation
facilities. The:firm ofHipes & Associates appraised the property on May 7, 2001. The attached summary sheet states the value ofthis taking as $103,032.00. On June 26, 2001, the City
Council ofthe Town ofAddison authorized me to make an offer to purchase this 11,363 square foot tract ofland at the appraised value of $103,032. Please accept this correspondence as
a written request for your response regarding acceptance ofthis offer. The Town ofAddison must receive your response within thirty (30) days ofreceipt ofthis letter. Ifwe do not hear
from you within the thirty (30) day time frame, the Town will consider our offer to be rejected and we will immediately initiate imminent domain proceedings against your property.
The Town looks forward to resolving this issue in a timely and equitable manner for all parties involved. Should you have any questions, please feel free to contact Mr. Mike Murphy,
Director ofPublic Works, at 972-450-2886, or myseI£ Sincerely, Ron Whitehead City Manager Cc: Ken Dippel, City Attorney Chris Terry, Assistant City Manager Mike Murphy, Director ofPublic
Works Jim Pierce, Assistant Director ofPublic Works Steve Chutchian, Assistant City Engineer
AN APPRAISAL REPORT OF THE MElRO BRICK COMPANY, INC. PROPERTY A WHOLE PROPERTYACQUISITION LOCATED AT THE NORTHWEST CORNER OF THE ADDISON ROAD/ARAPAHO ROAD INTERSECTION TOWN OF ADDISON,
DALLAS COUNTY, TEXAS PREPARED FOR TOWN OF ADDISON C/O MR. MICHAEL MURPHY, P.E. DIRECTOR OF PUBLIC WORKS P.O. BOX 9010 ADDISON, TEXAS 75001-9010 DATE OF APPRAISAL MAY 24,2001 PREPARED
BY HIPES & ASSOCIATES 7557 RAMBLER ROAD SUITE 260, LB 25 DALLAS, TEXAS 75231
HIPES & ASSOCIATES REAL ESTATE APPRAISERS/CONSULTANTS OFFICE ADDRFSS: 7557 RAMBLER RD #'lBJ LOCK BOX 25 DALLAS, 1EXAS 75231 May 24,2001 Mr. Michael Murphy, P.E. Director of Public Works
Town of Addison P.O. Box 9010 Addison, Texas 75001-9010 Re: The Metro Brick Company, Inc. Property Arapaho Road Acquisition Dear Mr. Murphy: MAILING ADDRFSS: P.O. BOX 600142 DALLAS,
1EXAS 75360 214-739-5941 I have inspected and made an appraisal of the above referenced property. Conditions pertinent to or indicative of the value of the property were researched and
investigated. This report sets forth my findings and conclusions and any material matters within the market place that may have an impact on the value of the subject, the proposed acquisition,
and any remainders both before and after the proposed acquisition. Factual data pertaining to the subject is exhibited along with any market data felt significant in the analysis and
opinion of value. Certificate of Appraiser I hereby certify: That it is my opinion the total compensation for the acquisition of the herein described property is $103.032.00 as of May
24, 2001 based upon my independent appraisal and the exercise of my professional judgement; That on April 11, 2001, and various other dates, I personally inspected in the field the property
herein appraised; that I afforded Mr. Dennis Calandar, the property owner or his representative, the opportunity to accompany me at the time of inspection; The comparable sales relied
upon in making said appraisal were as represented by the photographs contained in the appraisal and were inspected on April 11, 2001, and various other dates; That to the best of my
knowledge and belief the statements contained in the appraisal hereinabove set forth are true, and the information upon which the opinions expressed therein are based is correct, subject
to the limiting conditions therein set forth;
That I understand that such appraisal is to be used in connection with the acquisition of land area for a public project by the Town of Addison, Texas, and that such appraisal has been
made in conformity with the appropriate State laws, regulations, and policies and procedures applicable to appraisal for such purposes, and that to the best of my knowledge no portion
of the value assigned to such property consists of items which are noncompensable under the established law of said State, and any decrease or increase in the fair market value of subject
real property prior to the date of valuation caused by the public improvement for which such property is to be acquired, or by the likelihood that the property would be acquired for
such improvement, other than that due to physical deterioration within the reasonable control of the owner, has been disregarded in determining the compensation for the property; That
neither my employment nor my compensation for making this appraisal and report are in any way contingent upon the values reported herein; That I have no direct or indirect present or
contemplated future interest in such property or in any benefit from the acquisition of such property appraised; and that should I or any employee in my service acquire any interest
in cr to the property appraised prior to the acquisition of the parcel by the Town of Addison, I will immediately notify the Town of such interest or interests; That I have not revealed
and will not reveal the findings and results of such appraisal to anyone other than the proper officials of the Town, until authorized by Town officials to do so, or until I am required
to do so by due process of law, or until I am released from this obligation by having publicly testified as to such findings. Respectfully submitted, \d 􀁾􀀱􀁨􀀮􀀴􀁫􀀱 X Hipes Texas
Certification No. TX-1321416-G 􀁤􀀭􀀭􀁾 􀁾2P-o i-Date Note: This is a SummalYAppraisal Report which is intended to comply with the reporting requirements set forth under Standards Rule
2-2(b) ofthe Uniform Standards ofProfessional Appraisal Practice for a Summary Appraisal Report. As such, it presents only summary discussions of the data, reasoning, and analysis that
were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analysis is retained in the appraiser's file.
The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated below. The appraiser is not responsible for unauthorized use of
this report. 11
SUMMARY OF SALIENT FACTS A Whole Property Acquisition at the NW/c of Intersection of Addison Road/Arapaho Road Metro Brick Company, Inc. -Owner Addison, Texas Date of the Appraisal:
Value Estimated: Property Rights Appraised: Property Appraised: Property Zoned: Highest & Best Use: "As vacant": "As improved": Estimates of Fee Simple Value: Whole Property Land Value
(Sales Comparison): Cost Approach: Income Approach: Sales Comparison Approach: Whole Property: Part Taken: Remainder Before the Take: Remainder After the Take: Land Value: Cost Approach:
Income Approach: Sales Comparison Approach: Damages to the Remainder: Final Value Estimate: JUST COMPENSATION May 24,2001 Market Value -Just Compensation Fee Simple A ±11,363 SF tract
improved with an office/sales facility, located at the NW/c of Addison Rd. & Arapaho Rd., Addison, Texas. PD; office, retail, restaurant, car wash To be assembled with adjacent railroad
property for potential future uses. Interim neighborhood services use, until such time as redevelopment is warranted. $ 56,815 $111,500 $103,032 $ N/A $103,032 $103,032 $ -0-$ N/A $
N/A $ N/A $ N/A $ N/A $103,032 III
TABLE OF CONTENTS Transmittal I..etter i Summary of Salient Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii Table of Contents
iv Purpose and Use of the Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Definition of Market Value .. , . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Scope of the Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 1 Property Rights Appraised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Effective Date of Valuation. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Identification of the Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 2 History of the Property 2 City Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Neighborhood
Analysis and Trends 5 Subject Property 6 Highest and Best Use -Zoning 8 The Appraisal Process -Whole Property 10 Land Valuation (Sales Comparison) . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 11 Cost Approach to Value 20 Income Approach to Value 24 Sales Comparison Approach to Value 27 Reconciliation 27 Part Taken -Valuation 28 Remainder
Before the Take -Valuation 29 Remainder After the Take -Valuation 29 Estimate of Just Compensation ADDENDUM Comparable Rental Data Assumptions & Limiting Conditions Photographs of the
Subject Plat of the Subject I..egal Description FAA Exhibits Zoning Map Qualifications of Appraiser 29 iv
Purpose of the Appraisal The purpose of this appraisal is to estimate the market value of the fee simple title to the real property to be acquired, encumbered by any easement not to
be extinguished, less oil, gas· and sulphur. If the acquisition is of less than the entire property, any special benefits and damages to the remainder property must be included in accordance
with the laws of Texas. This appraisal is rendered in order to assist Addison in estimating the value of property to be acquired. Definition of Market Value Market Value may be defined
as follows: "Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obliged to sell, and is bought by one who is under no
necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available
within the reasonable future." Scope of the Appraisal The scope of this report includes the research, data acquisition and analysis as described in the appraisal process description
of this report. In gathering comparable sales data our sources include direct interview with grantor and/or grantee, commercial sales reporting services, other appraisers and real estate
practitioners, published data and information in our files. Comparable rent information is generally derived from direct interview with property managers and leasing agents. On comparable
rent and sale information the source is generally indicated on the respective comparable's page. Information on property operating expenses can be derived from a number of sources including
actual amounts provided to us for the subject property, file information, direct interview with property managers and owners and published industry averages. Replacement construction
costs amounts are generally derived from the national cost reporting services prepared by Marshall and Swift and, where available, actual construction costs are utilized. On some comparable
sales data an attempt is made to confirm third party information with either the grantor or grantee if there is concern about the data's reliability. Property Rights Appraised .The property
rights appraised are those of the Fee Simple estate. Fee simple estate is defined as "Absolute ownership unencumbered by any interest or estate; subject only to the limitations of eminent
domain, escheat, police power, and taxation". (The Dictionary of Real Estate Appraisal, Second Edition, American Institute of Real Estate Appraisers, 1984, p. 123.) Effective Date of
Valuation The effective date of valuation is May 24, 2001. The inspection date of the subject was April 11, 2001, and various other dates. The date of this report is May 24, 2001. 1
Identification of the Subject Property The property being appraised is a ±11,363 SF tract of land improved with a small sales/office building, located at the northwest corner of Arapaho
Road and Addison Road, in the Town of Addison, Dallas County, Texas. This is an area principally developed with commercial, industrial, and airport service uses. The acquisition of the
subject property is comprised of a strip taking along the south side of the subject containing ±1,167 SF adjacent to the existing Arapaho Road right-of-way, and the ±9,706 SF outside
the strip taking for a future park site. The survey provided to the appraiser representing the proposed acquisition is included in the Addendum to this report. Briefly, the legal description
for the subject property/part taken is described as; being a part ofBlock 1, Lot 3, Addison Car Care Addition, and a part of the Edward Cook Survey, Abstract Number 326, Town ofAddison,
Dallas County, Texas, containing a total of ±11,363 SF of land area. A metes and bounds legal description of the proposed acquisition has been provided Lo the appraiser and is included
in the addendum of the report. History of the Subject Property No property ownership information was provided to the appraiser for this appraisal assignment. However, data contained
in the appraiser's files indicates that the current owner acquired the subject property on September 11, 1996, from Carwash Properties North V, LP, as recorded in Volume 96180, Page
2908, of the Dallas County Deed Records, for $85,267. No previous ownership history is known. The subject property was purchased by the pre-existing tenant fOf the continued operation
of his business. Ad Valorem Tax Information The DCAD Acet. # for the subject is 10000610010030000. The DCAD appraised value for the subject is $85,000; land value @$68,210 and improvement
value @$16,790 for the year 2000. Estimated MarketinglExposure Time The USPAP requires that the appraiser address the estimated reasonable exposure time of the property at the value
estimate. This is defined as the time prior to and ending with the effective date of the appraisal estimated to be required to market the property at the final value estimate. Conversations
with industrial and office brokers in preparing this report indicate that a reasonable exposure time for the subject property of nine to twelve months is supported by historic market
conditions. 2
CIlY DATA The Town of Addison is located in the northern portion of Dallas County, approximately 12 miles north of the Dallas Central Business District. The City is bounded by Dallas
on the north and east sides, Dallas and Farmers Branch to the south and the City of Carrollton on the west. The City is a suburb of Dallas and is a part of the Dallas Metropolitan area.
Addison has participated in the growth of the metropolitan area as shown by the following figures: Census Year Population Increase 1970 593 N/A 1980 5,553 +835% 1990 8,783 + 58% 1997
(est.) 11,100 + 25% The Town of Addison is primarily commercial in nature. Light industrial and flex warehouse space has developed in the areas east, north, and west of the Addison Airport.
The Dallas North Tollroad corridor sparked heavy hotel and multi-story office building development during the 1980's. This extends from the west side of the freeway to the railroad tracks
at Inwood road. The corridor along Midway Road from the Farmers Branch boundary continued the light industrial, office/flex development of the Midway Industrial Park that extends southward
to LBJ Freeway. The corridor along Belt Line Road through the City has seen extensive development with restaurants, hotels, and retail facilities. As a result, residential housing is
a minor factor in the property base of the Town of Addison. This has helped to keep taxes low, but has afforded the Town a very healthy tax income due to the high valuations of the commercial
properties. This is displayed in the quality and quantity of public facilities and services provided. Primary north/south access through Addison is via the Dallas North Tollway, Addison
road and Midway Road. Belt Line Road and Trinity Mills Road are primary eastlwest thoroughfares. The major development within the city is the Addison Airport, a major corporate and private
air facility, which occupies a large portion of the City'S land area. due t Addison's accessibility and location in the path of the City of Dallas northern growth, substantial hotel,
commercial, retail, office and light industrial development has occurred. This is generally all of good quality and relatively recent construction. The character of the City is primarily
commercial with small concentrations of multifamily housing and upper-middle income single-family in its central and southwestern portions, and high-end single family housing found in
the extreme eastern portion. Addison has a Council/Manager type government. It provides police and fire protection to it's citizens. Utilities are provided by Lone Star Gas Company,
TV Electric Company, and Southwestern Bell Telephone Company. It gets it's water from the City of Dallas and sewer services from the Trinity River Authority and the City of Dallas. Utilities
appear to be adequate to service projected growth. Addison is in the Dallas and CarrolltonlFarmers Branch Independent School districts. There are no school buildings located within Addison's
city limits. There are a number ofmajor shopping facilities in or near Addison, including the Galleria Mall and Northpark Mall. Additional large, modem retail areas are in close proximity.
The renowned retailer, Nordstrom's has a store in the Galleria shopping center just south of Addison at LBJ and the Tollroad and a new major retail center has been constructed on a tract
north of that. Other 3
significant large retail facilities are a free-standing Home Depot Expo Design Center and Mikasa Home Store. Due to the number of office and light industrial buildings in the area, there
is a large and diversified community of employers. Two of the largest are the Dallas Marriott Quorum and Intercontinental hotels. Addison is well known as an entertainment and restaurant
area with over 100 restaurants operating the in Town. The new "urban hub" consisting of a 70 acre development at Addison Circle, located north of Belt Line Road and bounded by Airport
Parkway, Addison road, the Toll road and Arapaho Road is currently under development. The main thrust is the increase of residential housing, an arts center, and parks and public use
areas. When completed, it is projected to increase the population by 50% -60%. The City feels that this will prevent Addison from losing businesses to northern suburbs and insure long-term,
quality growth. This should enhance overall values in the area in our opinion. After a period of speculative real estate investment activity in the early and mid 1980's, Addison and
adjoining areas were among those hardest hit by the real estate recession of the last half of that decade. That situation has now turned around dramatically. Due to its highly desirable
location, a resumption of market strength is currently found. MIPF market research has 􀁣􀁯􀁮􀁳􀁩􀁳􀁴􀁾􀁮􀁴􀁬􀁹 reported strong increases in office construction over the previous several
years. In addition, Hines Interests plan 250,000 Sf of new office at the Galleria in the Dallas City limits, and Centre Development plans a 410,000 SF office structure at Dallas Parkway
and Spring Valley in Farmers Branch just south of Addison. For multi-family construction, MIPF research also shows strong growth and absorption. The overall prospects for the City's
future is considered to be good, in our opinion.4
NEIGHBORHOOD ANALYSIS AND TRENDS The subject neighborhood is described as being that area generally bounded by Belt Line Road on the south, Midway Road on the west, Westgrove to the
north and Quorum Drive to the east. This area is in the north-central portion of the Town of Addison which is a northern suburb of the City of Dallas situated approximately 12 miles
north of that municipality's central business district. The predominant feature and major land use within the subject neighborhood is the Addison Airport which is due north of the subject
property. This is a major fIXed-base corporate and private airport facility for northern Dallas County. Improvements at the airport include a 7,200' lighted runway, control towers, ILS
Approach System, and two 24-hour fIXed base operators providing fuel and other aircraft related services. It houses corporate aircraft for a number of businesses within the area. Much
of the improvement west of Addison Road is light industrial and airport related type construction. Major facilities for the City of Addison occur at the west corners formed by the intersection
of Airport Parkway and Addison Road. The northwest corner of those two streets houses the City of Addison's police and court facilities while the southwest corner is the site for the
City of Addison's central fire station. The majority of the rest of the development south of Airport Parkway, extending along Lindberg and on the west side of the airport, is light industrial
or commercial in nature. Addison Road is a major north/south connector within this portion of Addison and North Dallas. In addition to commercial buildings found here, there was fairly
extensive low and mid-rise garden office development during the construction boom of the early and mid 1980's. Examples of this type of construction are found on the west side of that
thoroughfare both south and north of the Keller Springs intersection with similar development in the northeast quadrant of Keller Springs and Addison Road. Additional construction of
this this type is found along the south side of Westgrove west of Addison Road. North of Westgrove on this side of Addison Road is found more office warehouse/office showroom type development.
There are still some fairly sizable tracts of undeveloped land, primarily on the east side of Addison Road in this area. The development in the northern part of the northeastern part
of the neighborhood has been high quality, single-story office showroom and hi-tech type construction. There is still a significant amount of developable land in this area. The City
of Addison and adjacent areas north of Belt Line have enjoyed new development and generally increasing land prices since the mid-1990's. Of particular interest is the developing apartment,
hotel, retail, and commercial activity surrounding the Addison Circle portion of the subject neighborhood. The attractiveness of relatively close in North Dallas locations should ensure
strong demand for existing properties and vacant development land within the subject neighborhood as the real estate economy continues to improve. As these events occur, the subject
neighborhood development prospers. Current market evidence suggests a healthy real estate market. 5
SUBJECT PROPERlY Site Data The subject tract is near triangular in shape, the northwest side curving along the railroad right-ofway, based on information provided in a site plan. Plats
indicate approximately ± 112' of boundary with the west right-of-way line of Addison Road and ±144' of frontage along the north side of existing (but unimproved) Arapaho Road. Total
land area is ± 11,363 SF as shown on the survey provided by the Town of Addison and a survey/site plan provided by the previous owner. Addison Road is a four-lane undivided street, with
a center turn lane. The improved portion of Arapaho Road terminates to the east of the subject property, where it is a concrete divided multi-lane road. The Arapaho Road right-of-way
along the south side of the subject is unimproved and currently utilized for access, parking and storage. The subject appears to be at grade with Addison Road/Arapaho Road. Physical
Characteristics The subject site is basically level with no major drainage problems noted. Site grading appears to such to carry surface water from the entire site to the south and east
and the drainage in Addison Road. An open cut drainage ditch is situated near the north side of the subject improvements. This is generally effective except in very heavy rainfalls.
Apparentlyoff-site drainage capacity is sufficient. The subject property is not located in a HUD designated flood plain area according to Town of Addison, Texas Community Panel No. 481089 0005
A, effective July 16, 1980. Access in and out of the site is accomplished from existing frontage along Addison Road adjacent to the east. Additional access, via unimproved Arapaho Roadright-of-way,
is currently available along the south side of the site. However, n,o drive-way cuts are currently existing within this area. Size/Shape The subject property contains ±11,363 SF in a
triangular configuration. The site is of insufficient size and shape to support independent economic development, if it were vacant and available for development. There is a pipeline
easement across the northwest side of the site, which precludes building permanent improvements in that area. Additionally, there is a 25' setback requirement along both Addison Road
and Arapaho Road. That portion of the site available to support improvements is too limited for reasonable economic viability. Currently, the existing Arapaho Road right-of-way to the
south of the subject site and the railroad right-of-way to the north of the subject are utilized for parking in support of the subject improvements. The only on-site parking noted was
limited to parallel parking in front of the subject improvements (east side). Zoning: The existing improvements are considered "non-conforming" under the Town's current zoning ordinances.
Per the sale plat of the subject, the existing improvements are situated within the setback requirements. A 25' setback building line is required off of both Arapaho Road and Addison
Road. The subject property is zoned "PD", a planned development zoning allowing for office, retail, restaurant, and car wash development, under the Town of Addison's ordinances. This
is a fairly broad classification providing for a wide variety of commercial usages. Due to the location of the subject tract proximate to Addison Airport, a 20' maximum building height
restriction is imposed on any building improvements. The actual development of the subject would require specific plan approval by the Town. 6
Utilities Sanitary sewer and water connections are provided through the Town of Addison. It is presumed that the present utilities directly available to the site are of sufficient capacity
to support commercial development. Telephone service, electricity and natural gas are available and in adequate supply by private companies serving the subject's general area. The current
design of access is considered sufficient to support commercial development. Given the abundance of adjoining street right-ofway, direct access to the subject site is considered both
reasonable and probable. Easements and Restrictions As set forth in the Assumptions and Limiting Conditions of this report, there was not available to the appraiser in the preparation
of this appraisal a current survey and/or title policy. It is assumed from a review of plats and public information that there are no, other than standard utility easements, easements
affecting the subject property which are not shown on the site plans/plats, and further, that there are no private deed restrictions that would hinder its current use or future development.
It is suggested that these assumptions be verified by competent parties. Easements shown on the plats available to the appraiser indicate that there is a Dorchester Pipeline easement
along the northwest side of the subject site and a T.P. & L. easement along the south side of the subject site. Typical utility easements are presumed to service the site. Site Improvements
The subject property is improved with 2 buildings, a mixture of concrete and brick paving, and ornamental brick fencing. The buildings are currently utilized for display and sales office
functions. The building fronting Addison Road is a one story brick veneer building, constructed in a residential style, ±22' x ±42' (±924 SF). This building is utilized as a display
and sales office for the Metro Brick Company, Inc. The east central portion of the building is generally used as open display area. Along the south, west and north sides are sales offices.
There is a restroom located on the west central side of the building. Interior trim is generally related to the products the company markets. Overall condition of this subject improvement
is considered to be very good. The roof is a low pitch, asphalt shingle type, with HVAC unit. Gutters and drains were noted. Security lighting was noted along the eves. Near adjacent
to the west of the residential style office is a brick veneer garage and storage building. The garage is basically 23' x 17.5' and complete with overhead residential garage type doors.
This area has sales samples displayed and also appears to be utilized as a breakroom area for the brick yard employees. Attached to the south side of the garage building is a brick veneer
storage room, approximately 16.5' x 8.5'. Storage of sales samples was noted in this area. A significant portion of the site area to the south, east, and west of the buildings is paved
with bricks. Ornamental brick wall/fencing is noted to the south and to the north of the buildings. The bulk of the currently available parking for the subject buildings is situated
within the existing right-of-way of Arapaho Road. A limited amount of parking may be available adjacent to the railroad right-of-way along the northwest side of the subject site. It
appears that portions of the site could be reconfigured to provide for limited parking in support of the building improvements. As the subject property is currently improved, it appears
that there is minimal parking available on the Addison Road side of the subject site to support the subject improvements. 7
HIGHEST AND BEST USE The Highest and Best Use, as defined by Real Estate Appraisal Terminology, Ballinger Publishing Company, Cambridge, Massachusetts (author Byrl D. Boyce, Ph.D.),
Page 107, is as follows: "That reasonable and probable use that will support the highest present value, as defined, as of the effective date of the appraisal. Alternatively, that use,
from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible and which results in highest land value. The
definition immediately above applies specifically to the highest and best use of the land. It is recognized that in cases where a site has existing improvements on it, the highest and
best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until the land value in its highest and best use exceeds
the total value of the property in its existing use." Also implied is that the determination of the Highest and Best Use results from the appraiser's judgment and analytical skill, Le.,
that the use determined from analysis represents an opinion, not a fact to be found. (Appraisal Terminology and Handbook, AIREA AND SREA, 1975) Some of the more important factors of
influence include the legal parameters associated with zoning ordinances, deed restrictions, building code requirements and area market supply/demand conditions. Further, the trends
within the neighborhood must also be considered and are discussed in the "Neighborhood Description and Trends" section of this report. In addition to the typical considerations involved
in estimating the Highest and Best Use of the subject property, the City of Addison requires approval from the U.S. Department of Transportation, Federal Aviation Administration (FAA),
for the construction or alteration of improvements located within many of it's zoning classifications. Even though the subject property is located outside the currently existing "clear
zone" of the Addison MuniCipal Airport, these additional requirements apply. The subject property is located proximate to the east and south of the existing airport boundary and clear
zone. Consideration was given to the development currently existing proximate to the north, south, east, and west of the subject in analyzing the potential uses for the subject site.
While the FAA will not speculate on what types of improvements or alterations would be allowable, without proper application and supporting documentation, it is presumed by the appraiser
that those uses existing proximate to the subject generally reflect the type of development that would be probable. Exhibits containing a "Notice of Proposed Construction or Alteration"
(Form Approved OMB No. 2120-0001) are provided in the Addendum section of this report. 8
Physically Possible Uses As previously described, the subject tract is of such size and shape to preclude the physical possibility of construction of most structures permitted under
current zoning and clear zone restrictions. Legally Permissible Uses The main constraints are those affected by the subject tract's zoning ordinance. The "PO" zoning ordinance which
regulates the subject allows for office, retail, restaurant, and car wash uses. The character of the surrounding development and the subject's proximity to the Addison Road/Arapaho Road
controlled intersection, and Belt Line Road, it is estimated that retail or office development would be the most appropriate for the site, if it were of sufficient size and shape to
support such development. There is no current or contemplated change in the subject site's zoning, nor is there one which would provide development opportunities that would create a
higher return to the land than it's current classification. Financially Feasible Due to building height restrictions imposed by clear zone considerations it is unlikely that a typical
office development would generate the necessary revenues to provide for an adequate return on the cost of the land and improvements at current market office rent rates in this location.
Retail/service or restaurant occupancy and rental rates suggest that the current local market is strong enough to support financial feasibility for development of the subject site as
it is zoned for retail/service or restaurant use. These uses could include restaurant, fast-food, convenience store, service station, satellite banking, copy center, or comparable high
intensity/exposure traffic uses, again if the site were of sufficient size and shape to support independent economic development. Maximally Productive Based on the subject's zoning,
current operational results and market analysis, it is estimated that the maximally productive utilization of the site as a retail/service or restaurant/fast-food site is substantiated.
The subject site, as developed with the older office/sales-style improvements representing a very high building-to-Iand ratio, is maximally utilizing the site, given the current size
and shape of the subject site. Highest and Best Use As Vacant Land The estimate of the Highest and Best Use of the subject Whole Property would to be to utilize for off-site parking
for commercial developments in the area which may be short on parking, or to sell to the adjacent land owner (railroad). If vacant, the size and shape of the subject site render it unsuitable
for development to any use which is allowable under the current zoning. It is unlikely that a change in zoning would materially affect the probable future use of the subject site, if
it were vacant and available for development. Highest and Best Use As Improved Analysis of the subject property indicates that the currently existing improvements provide contributory
value to the property. The improvements represent the estimated Highest and Best Use of the property "as improved". The existing improvements would provide for income which, in effect,
provide a return on and of the investment represented by the property. 9
THE APPRAISAL PROCESS Appraisal theory provides three basic methods of appraising properties. They are the Cost Approach to Value, the Income Approach to Value, and the Sales Comparison
Approach to Value. The Cost Approach to Value embraces the philosophy that the replacement costs applied under the Principle of Substitution may define the value for a property. In this
approach to value, the appraiser estimates the market value of the site, the replacement cost of the improvements less any applicable accrued depreciation, and then combines these two
items to arrive at a cost estimate of value. The Income Approach to Value is based upon an analysis of the potential income stream of the property and comparison of that income stream
with those of similar properties. This calculation and analysis results in a net income stream attributable to the real estate. That income is then capitalized at a rate which is commensurate
with the rates expressed in the marketplace by investors for similar properties. The resulting figure is an income estimate of value. The Sales Comparison Approach to Value is a basis
for estimating value based upon units of comparison derived from sales of similar properties in the marketplace. Those units of comparison are then applied to the subject property to
arrive at a range of values which should be indicative of a value estimate. This approach is used not only for improved properties but also in estimating the current value of the subject
site. That portion of the report is necessary to complete the Cost Approach. After applying the three traditional approaches to value, it is the appraiser's responsibility to weigh the
strengths and weaknesses of the three different approaches to value and determine which of the three is most applicable in the valuation of the subject property. This section of the
report is captioned as "Reconciliation". 10
Land Value by the Sales Comparison Approach In this section of the report, the appraiser will present data and analysis leading to an estimate of market value as of the effective date
of the appraisal for the subject site. Basically, this value is estimated by the comparison of sales of similar land tracts that are current or of recent date to the subject tract. This
comparison relates the differences, if any, in the legal, physical, locational, and economic characteristics of the comparable sales and the subject site, analyzing also any differences
in real property rights transferred, dates of sale, motivations of buyers and sellers, and any unusual financing arrangements for the sales analyzed, any of which factors might account
for price variations. The adjustments, if any, for property rights conveyed, financing terms, sale conditions and market conditions are made sequentially and individually. Adjustments
for location and physical characteristics are accumulated and made at the end of any adjustments from the previously cited sources. From the information available, the following comparable
sales presented all transferred ownership in fee simple, and there were no known unusual financing terms. General adjustments for market conditions relate to passage of time, e.g., in
a rising market an earlier comparable sale would be adjusted upward to reflect conditions as of the effective date of the appraisal. Over the time period reviewed for the comparable
sales, trends in either direction which cannot presently be ascribed to other contributing factors within the marketplace, other than those discussed following the comparable sales presentation,
will be adjusted based on historical market data. At the end of the presentation of the comparable sales, those sales will be summarized and a grid presented which makes the remaining
adjustments called for relative to locational and physical differences between the comparables and the subject tract. The comparable sale prices as adjusted to the subject site are then
analyzed to produce an estimate of market value for the land. As the subject whole property is of insufficient size and shape to support independent economic development, it's contributory
value for some other use is deemed the most appropriate methodology to utilize. The land sales selected reflect the contributory value of the subject site to the adjacent railroad property
to the northwest; the only property that adjoins the subject site. There are other methods available for estimating land value including allocation, extraction, subdivision and the land
residual technique. Generally, in all cases, the estimation of land value by comparable market sales is considered appropriate and most desirable where sufficient data is available.
This is the case for the subject site and the Sales Comparison Approach will be utilized solely in estimating it's current market value. Sufficient data is available within the recent
past to make an accurate appraisal specifically for the subject. The subject property is triangular in shape and contains ±11,363 SF. There is s pipeline easement across the northwest
(interior) side ofthe site, and 25' building setback requirements on the south and east sides of the site. It is unlikely that this site could be developed if it were vacant and available
for development. It provides for an insufficient foot-print for building development. Therefore, it will be evaluated "as if' it were a part of the adjacent railroad property. The adjacent
railroad property is considered the ±4.5 acre "}'" tract adjacent to the northwest side ofthe subject. The comparable sales will reflect this property, resulting in a subject-parent
tract. In this manner, the subject site has value comparable to that ofthe adjacent tract. Exclusive ofthe adjacent tract, the subject site has near zero value due to a minimal market
for a site of such size, shape, and encumbrances. 11
Comparable #1 Location: Legal Description: Grantor: Grantee: Date of Sale: Recorded: Consideration: Terms of Sale: Cash Equivalency: Size: Zoning: Comments: Verified By: Mapsco #: 3800
Realty Road (Realty Rd./Arapaho Road connection), Addison, Texas Beltline-Marsh Business Park, Blk. 1, Lot 4R, Addison, TX Lincoln Trust Co. Osteomed Corporation Pending Contract 04/02/01
Pending $5.20/SF ($988,158.60) Not Available $5.20/SF ±190,030 SF; 4.3625 Acres 1-1, industrial This pending sale will have a portion of extended Arapaho Road through it. It is approximately
the same size as the parent property. Contract D-14A 12
Land Sale Comparable #2 Location: Legal Description: Grantor: Grantee: Date of Sale: Recorded: Consideration: Terms of Sale: Cash Equivalency: Size: Zoning: Comments: Verified By: Mapsco
#: Southeast corner of Westgrove & Excel, Addison, TX Block A, Part of Lots 3, 4, 21, 22, Carroll Estates Addition, Addison, TX Stratus Properties Operating Company Jackson-Shaw/Addison
Tech, Ltd. October 1, 1999 (filed) 99192/3812 $4.50/SF ($1,524,252 -calculated) All cash to seller. $4.50/SF ±338,773 SF; 7.776 Acres C-1 (commercial) This site is a minor corner location,
just outside the airport boundaries, similar to that of the subject parent tract. It has since been developed with a large tech-space building. Debbie Carter (w/gte) 972.628.7400 D-4P
13
Land Sale Comparable #3 Location: Legal Description: Grantor: Grantee: Date of Sale: Recorded: Consideration: Terms of Sale: Cash Equivalency: Size: Zoning: Comments: Verified By: Mapsco
#: ±4300 Sunbelt, Addison, Texas Sunbelt Business Park Addn., Addison, TX Blackland Properties Johnson Equipment November 28,2000 $4.50/SF (±$744,876) All cash to seller $4.50/SF ± 165,528
SF; ±3.8 Acres C-1, commercial This is an interior tract near the north side of the airport. This is predominantly a tech-space area. This site is comparable in size to the subject parent
tract. Randall Johnson -Purchaser D-4P 14
[COMPARABLE MAP]
123 Subject Pending 04/01 10/01/99 11/28/00 05/01 $5.20 $4.50 $4.50 N/A 190,030 338,773 165,528 ±196,020 Commercial Industrial Commercial Commercial Subject-Parent Tract As discussed
previously, the subject Whole Property is judged to be of insufficient size, shape, and building utility to support independent economic development "as if' it were vacant and available
in the open market. The most probable scenario for the subject Whole Property "as if' vacant and available for development, would be for development as a part/portion of an adjoining
property. As there is only one property adjoining the subject Whole Property, the railroad property to the north and west, this property was the obvious selection for association with
the subject Whole Property. The resulting subject-parent tract benefits both tracts; (1) it potentially provides the necessary site area z.nd shape to cure the subject's deficiencies,
and (2) it would provide better access for the vacant railroad property for future development. As discussed at the beginning of the Land Valuation section (Page 11), the subject Whole
Property will be evaluated as if it were a proportional part of a subject-parent tract in this analysis. To consider the subject Whole Property on an independent basis would adversely
affect the potential market value of the site by severely restricting the probable end-users for such a site. Adjustments to Land Sale Comparables Standard appraisal practice calls for
the analysis of the sales presented comparing each to the subject in regard to time passed from sale date to appraisal date (that is, changes in market conditions), locational differences,
relative size, physical characteristics and utility. Adjustments were made from the known, i.e., the actual sale, to the unknown, i.e., the value of the subject. In a comparison heading
where the subject is deemed to be superior to a particular sale, an appropriate upward adjustment is made to the comparable sale and vise versa. Your appraiser considered the application
of paired paired sales analysis in adjusting the comparable sales to the subject. There was not sufficient comparability of the sales within those available for review that permitted
a reasonable application of that type of analysis. The adjustments are based to a great degree on subjective analysis and market appraisal experience, but the adjustments rely on some
easily recognizable and generally accepted maxims about the various aspects of comparison. They are briefly discussed in the following paragraphs which in short form discuss the items
considered for each adjustment heading. 15
Property Rights Conveyed This is a consideration of the real property interest conveyed. In the case of the comparable sales used in this analysis, all were transferred in fee simple,
indicating no adjustment for this heading of comparison. Financing Terms This reflects that for similar properties, a higher price might be paid for one wherein very attractive financing
terms are available to the purchaser. Any adjustments required under this consideration have been addressed within the discussion of each individual sale in converting reported transaction
price to cash equivalency where conditions so indicate. Conditions of Sale This element of comparison is to reflect any unusual motivations of buyer and/or seller that would take the
transaction out of the broad parameters of the definition of a sale for market value. Although paired sales were not available with which to compare it, it is the appraiser's opinion
that those conditions in all probability did not exist for any of the comparables selected for inclusion in this report. Market Conditions Any number of factors, including fluctuations
in supply and demand, inflation, depression and the like may cause changes in market conditions which are reflected in the prices of real property. The subject neighborhood has undergone
significant growth in the recent past, which in turn has lead to escalating land prices. Upward TimelMarket Conditions adjustments will be applied to the selected comparable sales to
reflect this change. Sale #2 is approximately 18 months old. While the more recent comparable sales do not provide any significant indication of upward pressure on prices, it is felt
prudent to apply a modest upward adjustment to this sale for time to this sale in comparison to the subject-parent tract. Both Sales #1 and #3 are sufficiently recent in time as to require
no adjustment for market conditions. Location In this portion of the adjustment process the appraiser considers locational aspects of the comparable sales as opposed to the subject.
Such aspects as quality and quantity of surrounding development, adjacent land uses, and other perceived physical amenities are considered. Due to the lack of paired sales characteristics
in the comparables, the adjustments are qualitative. The subject-parent tract is located within a transition area of Addison Road. To the south is much more intense retail/restaurant
development associated with Beltline Road. Beginning just to the south of the subject-parent tract along the west side of Addison Road is typically more commercial/industrial in nature,
partially due to the influence of adjacent Addison Airport. To the north of this commercial/industrial character area transition to office, service, and tech-space development predominates.
Each of the sales is considered to be inferior in location as compared to the subject-parent tract due to the "Addison Road" name recognition factor. Additionally, Sales #1 and #3 are
interior tracts as compared to the subject-parent tract's corner influence. Sale #2 has good quality corner location. Each sale is adjusted upward to the subject-parent tract for locational
considerations. Zoning The zoning of each of the Comparable Sales is considered to be comparable to that of the subjectparent property. No adjustment is deemed appropriate for these
sales. 16
Utility In this category a number of factors are considered in adjusting the comparable sales and offerings to the subject property. They include physical dimensions and shape of the
site, topography of the site, availability of public and private utilities, and accessibility among others. Those physical dimensions which permit the most economic and efficient use
of the land also command better prices. This fact perhaps is best stated in that not having this advantage is an offset to sites with poor frontage-to-depth ratios and the like. The
density of development allowable on the subject is restricted to a maximum building height of 20'. Similar restrictions apply to the Comparable Sales. The density of development appeared
to be comparable between the sales and the subjectparent tract. Therefore, no "utility" adjustment will be made in this analysis; the components of site "utility" being address in zoning,
location, etc. Being located adjacent to the south end ofthe Addison Airport IUnway will make the approval process for any planned development of the subject site extremely rigorous
and potentially restrictive. This could/would have a significant impact on the estimated market value for the subject property. For the purpose ofthis appraisal, it is presumed that
a reasonable level ofdevelopment would be allowable by the FAA and the Town ofAddison. Access, exposure, and frontage all impact how a property will be accepted by the market. Additionally,
immediacy of access is a specific consideration for the subject property, as opposed to general access which is considered as a part of the "Location" category. SightNiew This factor
considers (1) how the property is presented to the public and (2) what the impact of surrounding property characteristics affect subject property. Each of the Comparables are within
a typical commercial/tech-space development area, which exhibit good orderly development and design. The subject-parent tract is deemed to be comparable to each of the comparable sales.
AccesslFrontage Each of the comparable sales is judged to be superior to the subject-parent tract in this category. Both Sales #1 and #3 are interior tracts which have extensive frontage
along their respective streets, relative to the size of their sites. The subject-parent tract, which a quasi-corner at the present time, has relatively little road frontage in relation
to it's size. Sale #2 is located at the corner of Westgrove and Excel, providing dual improved road frontage. Sale #1 is situated along Realty as Realty becomes a quasi-corner. Each
of the sales is superior to the subject-parent tract and is adjusted downwarq accordingly. Size The subject-parent tract is ±4.5 Acres SF in size. Sales #1 and #3 are ±4 Acres in size
and considered comparable to the subject-parent tract. Sale #2 is ±7.8 Acres in size and is considered to be inferior to the subject-parent tract. It is typically found that much larger
tracts do tend to sell for a lesser "per unit" price than do smaller tracts thatare generally available for similar, although smaller scale, developments. While there are no absolutes noted for size difference among the comparable sales selected for presentation
herein, the general market reflected throughout the range of sales reviewed for this appraisal does indicate that the market is somewhat size sensitive. To a limited degree the market
reflects a willingness to pay slightly more for smaller tracts, on a per square foot basis, than for larger tracts. There follows a grid which displays the adjustments to the comparable
sales called for in the opinion of your appraiser. -17
Cash Equivalent Price $/SF $5.20 $4.50 $4.50 Property Rights Adjustment -0--0--0-Adjusted Price $/SF $5.20 $4.50 $4.50 Conditions of Sale Adjustment -0--0--0-Adjusted Price$/SF $5.20
$4.50 $4.50 Time/Market Conditions Adjustment -0-+5% -0-Adjusted Price $/SF $5.20 $4.73 $4.50 Location Adjustment +10% +5% +10% AccesslFrontage -10% -10% -5% Zoning -0--0--0-Size Adjustment
-0-+10% -0-SightNiew -0--0--0-IAdjustment Factor -0-+5% + 5% I Adjusted Price $/SF $5.20 $4.97 $4.73 Market Value Estimate -Subject Site After adjustments, the comparable sales range
from $4.73/SF to $5.20/SF. The average of the adjusted sales price is calculated at $4.97/SF. It is the appraiser's opinion that each of the Comparable Sales, as adjusted, are representative
of the probable market value of the subject property, as a proportional part of the subject-parent tract. Sales #1 and #3 are very similar is size and potential for future development.
Sale #2 is near adjacent to the airport and has been developed with a use comparable to the probable future use of the subject-parent tract. All of the sales are more expressive of the
lower density development available for the subject, given the subject's location proximate to Addison Airport. Each comparable has its strengths and weaknesses as compared to the subject.
While these comparables are not identical to the subject in terms of exact location, these sales are believed to accurately reflect the most probable range of value for the subject,
as well as approximating the ultimate use of the subject. The comparables selected ultimately required fewer adjustments than other comparables in the market would require. 18
When analyzed in light of the general surrounding development, it appears that there is a market and, hence, a range of value which is generally acceptable for various forms of development
on properties of this class in this area. Over sixteen sales, occurring from 1997 to the present, were reviewed in the development of this appraisal. These sales were proximate to the
market area of the subject and were analyzed to determine if there was any definable trend to the market activity. It is noted that sales to end-users is becoming more wide spread in
this market for all classes of properties. Speculative investment does not appear to be the principal motivating factor. A number of sales reviewed were for near term use/development,
and these sales reflected the upper limit of the market value range. The range of the value indications provided by the Comparable Sales is considered to be a good indication of probable
market value for the subject property. Based on the aforementioned data and analysis, the Market Value of the subject site is estimated to be $5.00 per square foot of the land area.
The subject is estimated to contain ± 11,363 SF of land area according to the documents provided. Therefore: Site Area ±11,363 SF Value Estimate $5.00/SF $56,815 ESTIMATED MARKET VALUE
-WHOLE PROPERlY "SITE", Say $56,815 19
COST APPROACH TO VALUE As noted, the Cost Approach to Value estimates the replacement or reproduction costs of the improvements plus land value to arrive at an indication of worth for
the property appraised. This theory of valuation is based on the Principle of Substitution which holds that a knowledgeable purchaser will not pay more for a property than that amount
for which he can obtain a property of equal utility and desirability by acquiring a site and constructing a building thereon within a reasonable period of time. This approach entails
the following: 1. Estimation of the current replacement or reproduction cost of the improvements. 2. Estimation of all accrued depreciation, if any, of the improvements, deducting such
depreciation from the current cost estimate. 3. Adding the value of the land as estimated by the Sales Comparison Approach to the estimated depreciated cost of the improvements. Reproduction
cost is defined as the cost required to exactly duplicate the existing improvements as of the effective date of the appraisal. Replacement cost is that estimated required to construct
at current prices the Subject improvements with equivalent utility to the existing structure using current standard design layout and modern materials. As the Subject building is ±60
years old and the fact that these kind of structures are of fairly standard design and construction, it is our opinion that utilization of replacement cost is appropriate within the
Cost Approach. Replacement Cost Estimate Direct Building Costs The source for current cost data is from the Marshall and Swift Valuation Service as adjusted for time andlocational variances.
This building has the characteristics between the "Average Class D" and "Good Class D" office buildings as described by Marshall and Swift. In Section 15, Page 17, which describes this
type of building, current estimated replacement costs are stated at $82.67/SF for Class "D" Good and $58.63/SF for Average Class "D" construction. The finish and climate control of the
subject are better than the "average" category, but not nearly as extensive as the "good" category. The subject property appears to be more of a typical residential exterior construction,
with the interior lacking many of the amenities of residential construction. Construction costs for "shell" Class "D" office buildings range from $30.40/SF for "average" Class "D" to
$46.16/SF for "good" Class "D" buildings. The exterior of the building supports limited, but good quality landscaping and sections of 􀁯􀁲􀁮􀁡􀁭􀁥􀁮􀁾􀁡􀁬 brick fencing/screening. Based
on the physical inspection of the subject property, the estimated construction cost for the subject main building improvements is $72.00ISF The estimated construction cost is adjusted
by factors also prepared by Marshall and Swift for time lapse to the present from cost preparation date-1.03x--and adjustment for price differentials caused by different physical geographic
locations--0.91x. Multiplying these two factors times the $72.00/SF indicates a current estimated replacement cost for the subject at $67.49/SF. 20
Also included in direct costs are elements not covered in the per square foot amount published by Marshall and Swift. These items would include the cost of the landscaped areas at the
front of the building, the ornamental fencing/screening, the paved area at the front and sides of the office, and the garage type storage structure behind the main office building. Not
included is the brick paved parking area to the south of the buildings, as this area is within the existing Arapaho Road right-ofway. The estimated cost new of the landscape items is
$2,500. The estimated cost of the ornamental brick fencing/screening is $2,000. The estimated cost of the "accessory" garage/storage building to the east of the office is $19,285 (551
SF x a shell+ cost estimate of $35.00/SF). These estimates are based on interviews with developers as cross-referenced with Marshall and Swift. The other major element of direct expense
not covered in the per square foot cost is the amount for paved parking, walks and drives. It is estimated that there is approximately 1,250 SF of paving associated with the subject
property. The paving is a mixture of concrete and brick paving, estimated at a current new cost estimate of $3.50/SF (per Marshall and Swift estimates for concrete). This equates to
$4,375 for the paving on the subject site as obtained and adjusted from the segregated cost section of the Marshall and Swift report found on Page 2 of Section 66. Indirect Costs Other
elements of construction costs not covered in the basic per square foot amount in Marshall and Swift are an allowance for entrepreneurial profit, loan fees and expenses over and above
interest during construction--which are included in the basic square foot cost--and the initial leasing and marketing costs. The estimate of entrepreneurial profit is based on -0-% of
the direct replacement cost. It is unlikely that an investor would build a property the size of the subject. This is more typically an owner/builder type of property. The subject is
so small as to make the risk of such speculative "investor" venture highly unlikely. No entrepreneurial profit is estimated. The Marshall and Swift published prices do cover interest
during construction but not loan fees. Depreciation -General Depreciation is defined in most appraisal textbooks as a loss in value as of the date of the appraisal from total replacement
or reproduction costs. That depreciation may fall within three different categories. Those categories and the method of estimating the depreciation in each category are explained in
the following paragraphs. Physical Deterioration Curable physical deterioration refers to items of deferred maintenance. This applies only to items requiring immediate repair. The measure
of this category is the cost to correct or cure. Repairs to items such as the roof, painting the interior, carpeting and painting the exterior are typical items of curable physical deterioration.
The building in general demonstrated an average standard of ongoing repair and maintenance. No deduction for Curable Physical Depreciation is indicated. Short-lived incurable physical
depreciation recognizes that, while the majority of the structural components will have a life equal to the economic life of the total building, some will have a shorter 21
life and a deduction must be made to allow for their gradual deterioration and eventual replacement. This amount is calculated by multiplying the percentage derived by dividing effective
age by total physical life times the estimated replacement cost of the short-lived component. Longlived physical incurable depreciation takes into account the decline in value due to
normal wear and tear on the basic building structure and any concurrent loss in economic use due to its age. This amount is typically calculated by dividing the effective age of the
building by its estimated economic life and multiplying the percentage result times the total replaeement cost new less physical curable depreciation and the replacement cost of short-lived
items for which physical incurable depreciation is taken, then, deducting that figure from replacement cost-new. Functional Obsolescence Functional obsolescence is loss in value attributable
to such factors as poor design, changes in technology and super-adequacies and/or deficiencies in the construction. Incurable Functional Obsolescence occurs where deficiencies or super-adequacies
are involved and the cost to cure is greater than the anticipated increase in utility or benefits to be derived. This form of depreciation is usually measured by the capitalization (by
the rate developed in the Income Approach) of the net income loss attributable to the deficiency or super-adequacy. Curable Functional Obsolescence is that for which the cost to cure
provides equivalent or superior economic returns to the property. As noted, the subject improvements are of sufficient appeal in the market, although not in conformity with the current
zoning of the site. It is noted that the building is in good physical condition. As such, it is the appraiser's opinion that there are no elements of curable or incurable functional
obsolescence present in the subject property, at the property's estimate of highest and best use. Accrued Depreciation Estimate by Life Method This method of estimating total accrued
depreciation is found by multiplying the percentage derived by dividing the effective age by the estimated total economic life of the building times the estimated replacement or reproduction
costs of the improvements. The Marshall & Swift guidelines indicate a typical economic life for buildings of the type and construction quality of the subject to be ±50 years. The building's
actual age is unknown, but a physical inspection results in an estimate of its effective age of ± 20 years due to its present condition and quality of upkeep. The following table shows
the calculation of Depreciation of All Items as described. -Estimated Direct Building Replacement Cost New (Building) Times Ratio of Effective Age to Use Life (20/50) Estimated Incurable
Physical Depreciation, Long-Lived Items $62,361 xO.40 􀁾􀀲􀀴􀀬􀀹􀀴􀀴22
Economic Obsolescence Economic obsolescence is a loss in value caused by detrimental influences outside the site. Unsightly or undesirable nearby usages such as salvage yards and heavy
industrial plants that have an adverse effect on the value of the appraised property are causes of this type of value loss. Economic loss is always incurable and it is measured by either
capitalizing the rent loss attributable to the negative influence or by comparable sales. No noted adverse physical influences so affecting the subject property as to produce economic
loss from that cause were observed. There follows a Cost Approach Summary tabulating the preceding data leading to subject's value estimate by this method. COST APPROACH SUMMARY Direct
Costs 924 SF @$67A9/SF -Main Building 551 SF @$35/SF -Acc. BId. Landscaping Fencing/Screening Paving Total Estimated Direct Costs Indirect Costs Entrepreneurial Profit @0% Loan Fees
(est.) Total Estimated Indirect Costs Total Estimated Replacement Cost New Estimated Depreciation Main Building (040 x $62,361) Paving (040 x $4,375) Landscaping (.20 x $2,500) Acc.
Bid. (040 x $19,285) Fencing/Screening (040 x $2,000) Depreciated Replact:ment Cost Add: Site Value Estimate by Market Comparison Total Estimated Replacement Cost After Depreciation
ESTIMATED MARKET VALUE BY COST APPROACH, Called $ 62,361 19,285 2,500 2,000 4,375
INCOME APPROACH TO VALUE As discussed previously in the Appraisal Process section, the Income Approach to Value is the result of the analysis of the projected gross income stream for
the subject property less vacancy and expenses to determine what net operating income for it can reasonably be expected. The first step in the Income Approach is determining what income
can be achieved by the property under prudent management. This section typically directs itself to deriving rent comparables from similar properties in the subject's area to determine
the stabilized gross annual income potential for it. From that gross annual income, a vacancy and collection loss factor is deducted to arrive at an effective gross income. From the
effective gross income, total estimated operating expenses for the project are deducted to arrive at a proforma net operating income. This figure is converted to a value indication through
a process known as capitalization. The subject property is currently owner occupied. The current owner was previously the tenant on this property. The improvements are utilized for a
sales/showroom office. Primary parking for the building is located within the existing right-of-way for Arapaho Road to the south of the building, and on the St. Louis & Southwestern
Railroad property to the north. On site parking is limited to parallel parking at the front (east side) of the building. Due to the lack of available parking in support of the improvements,
it is estimated that the leasing of the subject property would be limited to low traffic density uses. A survey was made of office space in the subject area adjacent to Addison Road.
The primary criteria was Addison Road frontage and relatively small office space availability. While no buildings were found reflective of the small total size of the subject, buildings
leasing relatively small square footage office space were. Although the comparables are multi-tenant buildings with adequate parking availability, they should provide a competitive alternative
to the subject's characteristics. Rents Survey data indicated that rental rates are based either on a "full-service" or modified full-service basis. In a full-service lease, all expenses
are paid by the landlord and include; water, electricity, trash service, common area maintenance (CAM), janitorial service, property taxes, and insurance. In the modified full-service
leases, the tenant is responsible for their individual electric utility expense and janitorial expenses. Full-service leases are quoted in the $18.00/SF to $20.00/SF price range, depending
on the size of the space leased. Modified full-service leases are quoted in the $15.00/SF price range. Vacancy Generally, the survey data indicates a softening of the office market in
this area. This is demonstrated by average vacancy rates in the 85% to 90% range. Noted vacancies surveyed spanned 0% to 30%. A lower than typical vacancy is estimated for the subject
-8%. The rationale for this estimate is, since the subject and the comparables are smaller buildings a relatively small number of square feet translates into a relatively high percentage
of vacancy. The subject would either be 100% occupied or 100% vacant. The Real Estate Investment Trends -Year End 2000, published by the Henry S. Miller Companies, indicates survey results
for average vacancy and collection loss at 8.7% for "small" office properties. The 8% vacancy figure is based on the presumption that there will be periods between tenants, not that
a certain number of square feet will be vacant at any given time. 24
Expenses The direct expense data derived in the survey was very uniform in all areas excepting electrical service expense. A $3.00/SF expense figure was quoted for the combined expenses
of taxes, insurance, trash service, water, and common area maintenance. Janitorial service was estimated at $0.30/SF by those properties including that service. Electrical utility expense
ranged from $3.20/SF to $3.55/SF for the full-service properties. The indirect expense data includes lease commission expenses and administrative expenses. While lease commission expenses
range from 2% to 6%, based on surveys of real estate companies specializing in this service, no lease expense will be estimated for the subject. As the subject is not reflective of a
multi-tenant building, it is presumed that the subject property owner would likely provide his oWn leasing effort. An administrative expense of 1Yz% is estimated for the subject to address
the minimal bookkeeping/reporting time involved in managing the property. Market survey data suggests that multi-tenant properties pay management companies in the range of 2Yz% to 6%
for these services. Subject Lease -Estimate Based on the survey data, a market lease estimate is developed for the subject property (1) as if it were available to produce rental income
for the property owner, or (2) for the purpose of estimating the economic value of the subject property for owner-occupancy. The income analysis theory presumes that a prudent person
considers the options between leasing business property and owning business property. There are opportunity costs involved with each, and these costs will vary depending on how well
suited a property is to the general leasing market, versus how well suited a property is to an owner-occupant. As stated previously, the modified full-service lease rate in the subject
area is ±$15.00/SF. The fullservice lease rate ranges from $18.00ISF to $20.00/SF. Deducting the $3.50/SF to $3.85/SF from the full-service lease rates results in a range of $14.50/SF
to $16.15/16.15/SF lease rate on a modified fullservice basis. Obviously, all of the comparables are typical of conventional office space. All have adequate parking and offer amenities
not available to the subject. However, as competitive space, each has it's strengths and weaknesses, each potentially appealing to an over-lapping demand mix in the market. The Comparable
data pages and location map will be found in the Addendum. For the purpose of this analysis, the non-conforming nature of the subject improvements will not be considered. It is presumed
that a lease use compatible with the subject improvements as they currently exist is reasonable; i.e., that no change in use would be required to achieve the estimated rental rates,
as a material change in use could elevate the subject's non-conforming status to the detriment of the property. The following pro-forma operating income statement is developed for the
subject property, based on the survey data and the extrapolations made therefrom. This derivation is made for the subject property as an independent, self-sustaining unit; Le., a ±924
SF primary structure situated on a ± 11,363 SF site situated at the northwest comer of Addison Road and Arapaho Road (unimproved). 25
Pro-Forma Operating Income Statement 15301 Addison Road • Metro Brick Co. Potential Gross Income (924 SF @$15.00/SF) Less Vacancy & Collection Loss @8% Effective Gross Income Estimate
Less Expenses: Admin./Mgt. @1Yz% Leasing Commission (self marketed) Modified Full Service @$3.00/SF Janitorial -tenant expense Electrical (utility) -tenant expense Total Estimatea. Expenses
Indicated Net Operating Income $13,860 -1,109 12,751 $ 191 -02,772 -0--0--2,963 $ 9,788 CAPITALIZATION Several capitalization techniques are available to process income into an indication
of value. The proper capitalization technique is not determined by random selection. The appropriate technique is determined by the quality and quantity of accessible market data. As
there are not any properties similar to the subject from which to derive capitalization rates, survey data compiled at the end of 2000 was utilized for the overall rate estimate. Three
capitalization rate ranges were surveyed by the Henry S. Miller Companies and summarized in their Real Estate Investment Trends -Year End 2000 report; "going-in" rate (based on the income
at the time of purchase), "stabilized" rate (based on typical operating year at stabilized occupancy), and a "reversion" rate (rate anticipated at resale). The stabilized rates for office
properties ranged from 9.5% to 11.5%, with an average of 10.4%. As the net operating income estimate is divided by the capitalization rate to derive an estimate of market value, the
lower the capitalization rate, the higher the estimate of market value will be. Analysis supports an Ro for the subject property of 9.5%. This gives the benefit of the doubt for a strong
operating market for the subject property as an investment. Thus: Proforma NOI $9,788 9.5% = Indicated Value $103,032 The estimated market value of the subject site via the Sales Comparison
Approach is $56,815. The capitalized value estimate for the whole property "as improved" is $103,032. These results indicate that the improvements to the subject site have a contributory
value of $46,217. Improvements that generate the level of income displayed by the subject improvements provide for an adequate return "on" the value of the site, and a return "on" the
value of the improvements. There does not appear to be a return "of' the value of the improvements (i.e., paying back the depreciating value of the improvements over time). 26
SALES COMPARISON APPROACH TO VALUE (Improved) The Sales Comparison Approach to Value was utilized to estimate the value of the subject property as vacant, undeveloped land. Generally,
the Sales Comparison Approach to Value is considered to be the most reliable approach for valuing undeveloped land. The Sales Comparison Approach to Value was not utilized to estimate
the value of the subject property "as improved". An investigation of the Addison market did not reveal any meaningful level of very small office property sales within the previous 2V2
years. Therefore, the Sales Comparison Approach to Value -Improved was not developed for the subject property. RECONCILIATION For reasons previously stated within this report, the Sales
Comparison Approach was utilized in estimating the Market Value of the subject site. The Cost Approach was developed to test the reasonableness of the conclusions derived in the Income
Approach. Generally, the Cost Approach is much better utilized in estimating the value of new or proposed improvements. It is more difficult the judge the various levels of depreciation
on improvements the age of the subject improvements. The Income Approach was developed for the subject property. The subject property improvements have small office utility in the current
market, and there is evidence that the subject improvements are capable of producing income and, hence, value as they currently exist. Typically, income producing properties are traded
on their ability to produce income. A summary of the value estimates derived for the Whole Property are as follows; Sales Comparison Approach -Land: Cost Approach: Income Approach: Sales
Comparison Approach -Improved: $ 56,815 $111,500 $103,032 N/A The Income Approach to Value is selected as the most reliable indicator of probable market value for the subject Whole Property.
Therefore; WHOLE PROPERlY Components of Value $103,032 Main BId. Ace. BId. Landscape Fencing Paving Imp. Tot. Land Value Total $ 37,500 4,000 1,000 1,000 2,717 46,217 _56,815 $103,032
27
27PART TAKEN -VALUATION This Taking is considered a Whole Property acquisition. The Part Taken is comprised of two parts; (1) a strip taking for right-of-way, and (2) a park site tract.
A plat of the subject showing the Part Taken is included in the Addendum of this report. The Right-of-Way Part Taken consists of a strip of land varying from ±21Yz' 10 ± 15Yz' wide,
along the south side of the subject from east to west, roughly parallel, and adjacent, to the existing unimproved Arapaho Road right-of-way; a length of roughly ± 144'. The land area
within the J proposed R.O.W. acquisition contains ±1,657 SF of site area. The Park Site-Part Taken encompasses ±9,706 SF adjacent to the north side of the R.O.W. acquisition, and represents
the balance of the subject property. Within the acquisition area are all of the main office/sales building, secondary building, brick fencing/screening, driveway paving, and landscaping.
As many of the survey markers for the proposed right-of-way for the Arapaho Road right-of-way extension have been over-covered with brick, percentage estimates of the quantity of improvements
within the proposed Arapaho Road right-of-way have been made from the right-of-way plat provided by the Town of Addison. The balance of those improvements are situated in the park-site
portion of the proposed acquisition. The depreciated value of all of the site improvements, taken from the Final Value Estimate breakdown on Page 27 is included in the Part Taken estimate.
This is a Whole Property acquisition. Therefore, the estimated Value of the fee simple interest of the Part Taken is the same as the estimated Market Value of the Whole Property, or,
Part Taken -$103,032 28
REMAINDER BEFORE THE TAKE • VALUATION In circumstances of Whole Property acquisitions, wherein the Part Taken is synonymous with the Whole Property, there is no Remainder Before the
Take to evaluate. Therefore, this analysis is not applicable to this appraisal problem. REMAINDER AFTER THE TAKE • VALUATION In circumstances of Whole Property acquisitions, wherein
the Part Taken is synonymous with the Whole Property, there is no Remainder After the Take to evaluate. Therefore, this analysis is not applicable to this appraisal problem. ESTIMATE
OF JUST COMPENSATION As the proposed acquisition represents a 􀁗􀁨􀁯􀁬􀁾 Property acquisition, the estimate of Just Compensation Estimate is the same as the Value of the Whole property.
As damages to real property arise out of the difference in the Value of the Remainder Before the Take and the Value of the Remainder After the Take, no real property damages are relevant
in this analysis. Therefore, the Estimate of Just Compensation is the same as the estimate of Market Value for the Whole Property, or, ESTIMATE OF JUST COMPENSATION $103,032 29
APPRAISER'S CERTIFICATE The undersigned do hereby certify that, except as otherwise noted in the appraisal report: The statements of fact contained in this report are true and correct.
The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professionalanalyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect
to the parties involved. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment
was not contingent upon developing or repo:ting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined
value or direction in value that the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related
to the intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards
of Professional Appraisal Practice. Mark A Hipes is currently certified under the Texas Appraiser Licensing and Certification board. I have made a personal inspection of the property
that is the subject of this report. No one other than signors provided significant professional assistance in the preparation of this report. The appraisal assignment was not based on
a requested minimum valuation, a specific valuation, or approval of a loan. 􀁾􀁜􀁌􀁾􀁾 afkA Hipes Texas Certification No. TX-1321416-G 30
ADDENDUM Comparable Rental Data Assumptions & Limiting Conditions Photographs of the Subject Survey Legal Description FAA Exhibits Zoning Map Qualifications of Mark A Hipes
Comparable #1 Location: Building Type: Construction: Age/Condition: Parking: Rentable Area: Current Occupancy: Quoted Lease Rate: Terms of Lease: Length of Leases: Estimated Expenses:
Comments: Survey Information: Mapsco #: Survey Date: 4801 Arapaho Rd. (NE/c Arapaho/Addison), Addison, TX 3 story, office Brick Veneer, 1900's style design ± 15 yrs., since remodeling;
excellent condition Concrete paved surface parking, excel. cond., adequate # 10,000 SF 71% $15.00/SF Modified Full Service; tenant pays electrical & janitorial 3 years, negotiable $3.00/SF,
exclusive of electric & janitorial This property is across Addison Road from the subject. It has one lease space available equaling 2,900 SF. Owner/manager felt like his rates were on
the low side of the market, and also that the office market is somewhat soft at the present time. Owner/manager 469.644.0002 D-14C 05/01
Comparable #2 Location: Building Type: Construction: Age/Condition: Parking: Rentable Area: Current Occupancy: Quoted Lease Rate: Terms of Lease: Length of Leases: Estimated Expenses:
Comments: Survey Information: Mapsco #: Survey Date: 16051 Addison Road (SE/c AddisonlKeller Springs), Addison, TX 3 story, office Brick Veneer, elevated, modern ± 15 yrs., excellent
condition Concrete paved surface parking (covered), excel. cond., adequate # 40,515 SF 88% $18.00 -$19.50 per square foot Full Service; attempting to change to + electrical 3 years,
negotiable $6.50/SF This property is on the west side of Addison Road, adjacent to the airport. It currently has space available ranging from 300 SF to 2,756 SF. This is the Concourse
Plaza building. Owner/manager feels that the market is somewhat soft at the present time. Owner/manager 972.934.8414 D-4U 05/01
Comparable #3 Location: Building Type: Construction: Age/Condition: Parking: Rentable Area: Current Occupancy: Quoted Lease Rate: Terms of Lease: Length of Leases: Estimated Expenses:
Comments: Survey Information: Mapsco #: Survey Date: 16300 Addison Road, Addison, TX 3 story, office Brick Veneer ±3 yrs., excellent condition Concrete paved surface parking, excel.
cond., adequate # 11,848 SF 100%; 2,313 SF available for sub-lease $20.00/SF Full Service 3 years, negotiable $6.84/SF This property an interior location on the east side of Addison
Road, about Vz block north of Keller Springs (non-airport side). This is a more casual style building with a covered walk around the perimeter of the building. Manager indicates that
their properties in the area suggest an 85% to 90% occupancy rate in the area; a somewhat soft market. Leasing Agent 972.250.3902 D-4U 05/01
[COMPARABLE MAP]
ASSUMPTIONS AND LIMITING CONDITIONS (Read Carefully) The following assumptions and limiting conditions are attached to and are made a part of this Appraisal (the "Appraisal") of the
subject property (the "Property") described in this Appraisal ("Appraisal") made by Hipes & Associates (the "Appraiser") at the request of the person or entity (the Beneficiary") to
whom and for whose exclusive use this Appraisal was prepared and delivered; and, this Appraisal is made by the Appraiser and accepted by the Beneficiary subject and strictly according
to the within assumptions and limiting conditions: 1. That legal and equitable title to the Property is good and merchantable and that title is held by the owner ("Owner") of the Property
in fee simple absolute forever, unless otherwise agreed by the Appraiser in writing. (No responsibility is assumed for matters legal or chance, nor is any opinion rendered as to the
title to the Property. The possible existence of any disputes, suits, assessments, claims, liens or encumbrances has been disregarded, and the Property is appraised as though free and
clear.) 2. That no survey of the Property has been made by the Appraiser and no responsibility is assumed in connection with any matters that may be disclosed by a current perfect survey
of the Property. (Dimensions and areas of the Property and comparables were obtained by various means including estimate and are not represented or guaranteed to be exact.) 3. That allocations
of value between land and improvements are applied only under the current program of occupancy and utilization, and are not made or intended to be used in conjunction with any other
appraisal and, if so used, are invalid. 4. That all information contained in this Appraisal is private and confidential and is submitted strictly for the sole use of the Beneficiary;
and, no other person or entity is entitled to read, use or rely upon the contents thereof. (Possession of the Appraisal or any copy thereof, does not carry with it the right of publication
or use. The Appraiser will not be required to give any testimony or appear in any court or other proceeding by reason of making or delivering the Appraisal without the prior written
approval of the Appraiser.) 5. That all 􀁩􀁾􀁦􀁯􀁲􀁭􀁡􀁴􀁩􀁯􀁮 and comments pertaining to the Property and other properties is the personal opinion of the Appraiser formed after examination
and study of the Property and its surroundings; and, although it is believed that the information, estimates and analyses contained herein are correct, the Appraiser does not warrant
or guarantee them, and assumes no liability for errors in fact, analysis or judgement. (Any misinformation about the Property furnished to the Appraiser by the Beneficiary, at the option
of the Appraiser, may release the Appraiser from any liability and invalidate the Appraisal.) 6. That all opinions of value contained in the Appraisal are merely estimates. (There is
no warranty or guarantee, written or implied, made by the Appraiser that the Property is worth or will sell sell for the appraised value now or ever.) 7. That disclosure of the contents
of this Appraisal is governed by the Uniform' Standards of Professional Appraisal Practice, and that, in addition, neither all nor any part of the contents of this Appraisal (especially
any conclusions of value, the identity of the Appraiser, shall be disseminated to the public through reports, proposals, brochures or any other means of
communication without the prior written consent and approval of the Appraiser. BENEFICIARY WILL NOT CAUSE, SUFFER OR PERMIT ANY PUBLIC DISSEMINATION OF THIS APPRAISAL TO OCCUR AND, BY
ACCEPTING THIS APPRAISAL, BENEFICIARY INDEMNIFIES APPRAISER AGAINST ANY LOSS, COST, LIABILITY, DAMAGE OR CLAIM INCURRED WITHOUT REGARD TO FAULT BY APPRAISER ARISING IN CONNECTION WITH
ANY SUCH UNAUTHORIZED DISCLOSURE BY BENEFICIARY. 8. That there are no latent defects or any hidden or any unapparent conditions of the Property, subsoil, or structures which would render
the Property more or less valuable. (No responsibility is accepted or assumed by Appraiser for any such conditions or for analyses or engineering which may be required to discover them.)
9. That no environmental impact or environmental condition studies were either requested or made in conjunction with this Appraisal unless otherwise agreed by Appraiser in writing and
shown in the Appraisal and the Appraiser hereby reserves the right to alter, amend, revise or rescind any of the value opinions included in this Appraisal based upon any subsequent environmental
impact or environmental condition studies, research, revelation or investigation. (In particular, unless otherwise agreed by Appraiser in writing, and shown in this Appraisal, this Appraisal/Appraise
r assumes that no violations of any environmental, or other, laws affecting the Property are pending or threatened against the Property and that no toxic waste, hazardous materials or
dangerous substances have ever been stored, used, produced, maintained, dumped or located on or about the Property.) to. That the value of the Property is estimated on the basis that
there will be no international or domestic political, economic, or other adverse conditions or any military or other conflicts including strikes and civil disorders that will seriously
affect overall real estate values. 11. That Beneficiary understands that the real estate values are influenced by a large number of external factors, that the data contained contained
in the Appraisal is all of the data that Appraiser considered necessary to support the value estimate and that the Appraiser has not knowingly withheld any 􀁰􀁾􀁲􀁴􀁩􀁮􀁥􀁮􀁴 facts;
and, Beneficiary has been advised and agrees that the Appraisal does not warrant, represent or guarantee that Appraiser has knowledge or appreciation of all factors which might influence
the value of the Property. 12. That due to the rapid changes in external factors affecting the value of the Property, Appraiser's value conclusions are considered reliable only as of
the date of the Appraisal. 13. That on all appraisals made subject to satisfactory construction, repairs, or alterations of improvements, the Appraisal and value conclusions are contingent
upon completion of such work on the improvements in a good and workmanlike manner, without dispute, per plans, in code, as agreed and within a reasonable period of time. 14. That the
value estimate of the Property assumes financially and otherwise responsible ownership and competent management of the Property. 15. That the Appraisal consists of trade secrets and
commercial or financial information which is privileged and confidential and exempted from disclosure under 5 U.S.c. 533 (b) (4). (Please notify Hipes and Associates of any request for
any reproductions of this Appraisal.)
16. That accurate estimates of costs to cure deferred maintenance are difficult to make or assess and that many different approaches or arrangements can be attempted or applied in various
ways. (Any estimates provided within this Appraisal represent reasonably probably costs given current market conditions, available information and the Appraiser's expertise. Further
deferred maintenance affecting the Property is considered to be limited to only those items, if any specified in detail, in the Property section of this Appraisal. 17. That the existence
of potentially hazardous materials used in the construction or maintenance of the Property such as urea-formaldehyde foam insulation, asbestos in any form, and/or other dangerous substances
or materials on the Property, has not been considered, unless otherwise shown in the Appraisal. (The Appraiser is not qualified to detect such material or substances and it is the responsibility
of the Beneficiary to retain an expert in this field, if desired.) 18. That the liability of the Appraiser and its officer, directors and employees, agents, attorneys and shareholders
is limited to the fee collected for preparation of the Appraisal. (Appraiser has no accountability or liability to any third party, except as otherwise agreed in writing by Appraiser
and such other party.) 19. That any projected potential gross income of the Property referred to in the Appraisal may be based on lease summaries provided by the Beneficiary, Owner or
third parties and Appraiser has not reviewed· lease documents and assumes no responsibility for the authenticity, accuracy or completeness of lease information provided by others. (Appraiser
suggests that legal advice be obtained regarding the interpretation of the lease provisions and contractual rights of parties under Leases.) 20. That Beneficiary and any party entitled
to read this report will consider the Appraisal as only one factor together with many others including its own independent investment considerations and underwriting criteria or other
observations, concerns or parameters in formulating its overall investment or operating decision. In particular, Appraiser assumes that the Beneficiary has made/obtained, relied upon
and approved the following, none of which was furnished by Appraiser unless otherwise agreed by Appraiser in writing, to wit: a. current survey of the Property showing boundary, roads,
flood plains, utilities, encroachments, easements, etc.; b. current title report of the Property witlr legible copies of all exceptions to title; c. any needed soil tests, engineer's
reports and legal and other expert opinions; d. abstract or other report of environmental conditions or hazards affection the Property; e. current visual inspection of the Property and
adequate study of its use, occupancy, history, condition and fitness for the purpose of underlying Beneficiary's request for this Appraisal; f. copies of current insurance policy, tax
statements, contracts, leases and notices affecting the Property; g. any needed estoppel certificates of tenants, mortgagee's or others claiming any interest in the Property; h. reports/opinions
of Beneficiary's staff, contacts, agents and associates; and 1. Owner's experience with the Property. 21. That Appraiser's projections of income and expenses are not predictions of the
future; rather, they are the Appraiser's best estimates of current market thinking about future income and expenses. (The Appraiser makes no warranty or guaranty that Appraiser's projections
will
succeed or materialize. The real estate market is constantly fluctuating and changing. It is not the Appraiser's task to predict or in any way forecast the conditions of a future real
estate market; the Appraiser can only reflect, without warranty what the investment community, as of the date of the Appraisal, envisions for a particular time without assurances in
terms of rental rates, expenses, capital, labor, supply, demand, ecology, etc.) 22. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. I (we) have not made
a specific compliance survey and analysis of this Property to determine whether or not it is in conformity with the various detailed requirements of the ADA It is possible that a compliance
survey of the Property, together with a detailed analysis of the requirements of the ADA, could reveal that the Property is not in compliance with one or more of the requirements of
the Act. If so, this fact could have a negative effect upon the value of the property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider possible non-compliance
with the requirements of ADA in estimating the value of the Property. Special Note: This may not be adequate if "readily achievable" barrier removal items are obvious and should have
been identified.
GRAPHIC SCALE 1 INCH = 50 FT. 19.93' C...uED CHORD DIST 9.48' 24.01' 43.76' 21.64' 19.93' N 40'27'38-E -15.59' S 84'58'25-W -123.59' N 86'28'18-E -109'-54' 548'17'. CAUED N89'39'W UNE
TABLE CURVE TABLE + 730.00' 1123,74' RADIUS ILENGTH 890.00' 1109.61' 714.00' I 15.59'PARCEL 1 A PLAT OF A 0.0380 ACRE (1,657 SQ. FT.) lRACT OF LAND IN THE EDWARD COOK SURVEY ASS lRACT
NO. 326 TOWN OF ADDISON DALLAS COUNTY, TE XAS 5r0 -..---0 25 50 100 !! ! BEARING EAST N 44'55'56-E S 00'18'13-E S 44·45'45-W S 89'49'45-W DELTA 9·42'42-7'03'24-1·,5'05-L1 Cl L3 L4 C2
L5 L2 C3 UNE CURVE .PK DENOTES A SET -PK-NAIL o DENOTES A FOUND POINT AS INDICATED • DENOTES A 5/8-IRON ROO SET UNLESS OTHERWISE NOTED ---PROPOSED RIGHT OF WAY UNE o NOTES: ALL EASEMENTS
SHOWN ARE TAKEN FROM THE PLATS INDICATED HEREON. THE SURVEYOR DID NOT ABSTRACT THE SUBJECT PROPERTY SO ALL EASEMENTS MAY NOT BE SHOWN. ALL BEARINGS ARE REFERENCED TO THE NORTH RIGHT
OF WAY UNE OF CENTURION WAY, CALLED S 89'51'55-E, ACCORDING TO THE FINAL PLAT OF LOT 3, SURVEYOR ADElITION, RECORDED IN VOL 77173, PAGE 135, D.R.D.C.T. A LEGAL DESCRIPTION OF EVEN SURVEY
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Parcel 1 Field Note Description Arapaho Road Project Town of Addison Dallas County, Texas BEING a description of a 0.0380 acre (1,657 square foot) tract of land situated in the Edward
Cook Survey, Abstract Number 326, Town of Addison, Dallas County, Texas, being a portion of that certain tract of land conveyed to Metro Brick Company, Inc. on September 11, 1996 and
recorded in Volume 96180, Page 02908 of the Deed Records of Dallas County, Texas, said tract being all of Lot 3, Block 1 of Addison Car Care, an addition to the Town of Addison as evidenced
by the map recorded on June 8, 1987 and recorded in Volume 87111, Page 0286 of said Deed Records; said 0.038 acre tract of land being more particularly described by metes and bounds
as follows; BEGINNING at a point at the North end of a cut back corner located at the Northwest intersection of Addison Road (variable width) as dedicated by said plat of Addison Car
Care with Arapho Road (60 feet wide) as dedicated by said plat of Addison Car Care, said point also being the most Easterly Southeast corners of said Lot 3 and said Metro Brick Company,
Inc. tract, from said point an 􀁾􀁘􀀢 in concrete found bears North 44°45'45" West, a distance of 4.24 feet; THENCE, SOUTH 44 ° 45' 45" WEST (called SOUTH 48 °17' WEST), along said cut
back corner and the Southeast line of said Metro Brick Company, Inc. tract, a distance of 24.01 feet to an 􀁾􀁘􀀢 in concrete found in the common existing North right of way line of
said Arapaho Road and South line of said Metro Brick Company, Inc. tract, for the most Southerly Southeast corner of said Metro Brick Company, Inc. tract; THENCE, SOUTH 89°49'45" WEST
(called NORTH 89°39' said common line, a distance of 19.93 feet to a for the beginning of a tangent curve to the left; Page 1 of 3 WEST), along 􀁾 PK" nail set
PARCEL 1 -ARAPAHO ROAD PROJECT THENCE, WESTERLY, continuing along said corrunon line and along the arc of said curve to the left having a radius of 730.00 feet, a central angle of 9°42'42",
a chord bearing South 84 ° 58' 25" West for 123.59 feet, for an arc distance of 123.74 feet (called 123.82 feet) to a point in a curve of the Southeasterly line of a called 3 & 48/100
acre tract . of land conveyed to St. Louis Southwestern Railway Company of Texas .on January 15, 1902 as evidenced by the deed recorded in Volume 278, Page 115 of said Deed Records,
said point being the corrunon Southwest corner of said Metro Brick Co. Inc. tract and the Northwest corner of the dedication of said Arapaho Road by said plat of Addison Car Care; THENCE,
NORTHEASTERLY, departing said corrunon line, along the corrunon Northwesterly line of said Metro Brick Company, Inc. tract and Southeasterly line of said called 3 & 48/100 acre tract,
along the arc of a non-tangent curve to the right having a radius of 714.00 feet (called 713.94 feet), a central angle of 1°15'05", a chord bearing North 40°27'38" East for 15.59 feet,
for an arc distance of 15.59 feet to a 5/8 inch iron rod set in a curve of the proposed North right of way line of Arapaho Road; THENCE, along the proposed North right of way line of
Arapaho Road the following courses and distances; EASTERLY, departing said corrunon line, along the arc of a non-tangent curve to the right having a radius of· 890.00 feet, a central
angle of 7°03'24", a chord bearing North 86°28'18" East for 109.54 feet, for an arc distance of 109.61 feet to a 􀁾􀁐􀁋􀀢 nail set for the point of tangency of said curve; EAST, a distance
of 9.48 feet to a 􀁾􀁐􀁋􀀢 nail set for an angle point; NORTH 44°55'56" EAST, iron rod set in the Company, Inc. tract Addison Road; a distance of 43.76 feet to a 5/8 inch corrunon East
line of said Metro Brick and West right of way line of said THENCE, SOUTH 00°18'13" EAST, departing the proposed North right of way line of said Arapaho Road, along said corrunon line,
a distance of 21.64 feet to the POINT OF BEGINNING; CONTAINING an area of 0.0380 acres or 1,657 square feet of land within the metes recited. Page 2 of 3
PARCEL 1 -ARAPAHO ROAD PROJECT All bearings are referenced to the North Right of Way line of Centurion Way, called S 89°51'55" E, according to the final plat of Lot 3, Surveyor Addition,
recorded in Vol. 77173, Page 135, Deed Records of Dallas County, Texas. A plat of description. even survey date herewith accompanies this I, Ayub R. Sandhu, a Registered Professional
Land Surveyor, hereby certify that the legal description hereon and the accompanying plat represent an actual survey made on the ground under my supervision. 􀁾􀁧􀀮􀁾 #--4:1-?l A ub
R. Sandhu, R.P.L.S. Texas Registration No. 2910 Page 3 of 3
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lase. U 􀁾􀁴􀀴􀀹 U.Sc. ,,,l2ta}j. I HEREBY CERTIFY the! III 01 the lbow••\element. made by me Ir. true, complete, Ind correct to the belt 01 my knoWIecIge. In 8ddltlon, I Igreeto ObstNctlon
mark Indlor light the IINctu,. In eccorclllnce with ....blilhed marking. Ilghtlng ....dlrdl " -.ery. ..... T..... N-.... .. _ ..... _ ......... fAA f.,.." 1410-1 (4-831 SUPERSEDES PREVIOUS
EDITION FAA FORM DO NOT REMOVE CARBONS
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MARK A. HIPES Qualifications Location of Office 7557 Rambler Road, Suite 260, LB 25, Dallas, Texas 75231 Education Southern Methodist University * Bachelor of Business Administration
-Quantitative Analysis * Master of Business Administration -Finance Texas Real Estate Broker License -License No. 388907-26 Texas State Certified General Real Estate Appraiser -License
No. TX-1321416-G Appraisal Courses, Seminars American Institute of Real Estate Appraisers * Course IIa -Case Studies in Real Estate Valuation * Course lIb -Valuation Analysis & Report
Writing Society of Real Estate Appraisers * Course 101 -Principals of Real Estate Appraisal * Course 201 -Income Property Valuation * Course R2 -Report Writing Standards of Professional
Practice Various Seminars on Valuation & Litigation Experience 02/87 to Present 03/79 to 02/87 09/71 to 03/79 Types of Properties Appraised Hipes & Associates Independent Real Estate
Appraiser Dallas County Department of Public Works Eminent Domain Appraiser Self Employed Financial AnalysislReal Estate Analysis Regional Malls Shopping Centers Office OfficelWarehouses
Service Stations Industrial/Manufacturing Apartments FarmslRanches Proposed Developments Educational Facilities Automobile Dealerships Hospitals Railroads Churches Airports All types
of commercial/industrial properties and a variety of special use properties. Extensive work in Eminent Domain & other forms of litigation valuation Qualified as an "Expert Witness" in
County, District, & Federal Courts
• 􀁾 ,I SUMMARY OF SALIENT FACfS ±1,657 SF out of ±1l,363 SF at the NW/c of Intersection of Addison Road/Arapaho Road Metro Brick Company, Inc•• Owner Addison, Texas Date of the Appraisal:
Value Estimated: Property Rights Appraised: Property Appraised: Property Zoned: Highest & Best Use: "As vacant": "As improved": Estimates of Fee Simple Value: Whole Property Land Value
(Sales Comparison): Cost Approach: Income Approach: Sales Comparison Approach: Whole Property: -Part Taken: Remainder After the Take: Land Value: Cost Approach: Income Approach: Sales
Comparison Approach: Damages to the Remainder: Fq.al Value Estimate: JUST COMPENSATION May 7, 2001 Market Value -Just Compensation Fee Simple A ±1,657 SF tract out of a ±11,363 SF tract,
located at the NW/c of Addison Rd. & Arapaho Rd., Addison, Texas. PD; office, retail, restaurant, car wash To be assembled with adjacent railroad property for potential future uses.
Interim neighborhood services use, until such time as redevelopment is warranted. $ 56,815 $111,500 $103,032 $ N/A $103,032 $ 15,275 $ 87,757 $ 971 $ N/A $ N/A $ N/A $ 86,786 $102,061
iii
Parcel 1 Field Note Description Arapaho Road Project Town of Addison Dallas County, Texas BEING a description of a 0.0380 acre (1,657 square foot) tract of land situated in the Edward
Cook Survey, Abstract Number 326, Town of Addison, Dallas County, Texas, being a portion of that certain tract of land conveyed to Metro Brick Company, Inc. on September 11, 1996 and
recorded in Volume96180, Page 02908 of the Deed Records of Dallas County, Texas, said tract being all of Lot 3, Block 1 of Addison Car Care, an addition to the Town of Addison as evidenced by the map
recorded on June 8, 1987 and recorded in Volume 87111, Page 0286 of said Deed Records; said 0.038 acre tract of land being more particularly described by metes and bounds as follows;
BEGINNING at a point at the North end of a cut back corner located at the Northwest intersection of Addison Road (variable width) as dedicated by said plat of Addison Car Care with Arapho
Road (60 feet wide) as dedicated by said plat of Addison Car Care, said point also being the most Easterly Southeast corners of said Lot 3 and said Metro Brick Company, Inc. tract, from
said point an "X" in concrete found bears North 44 ° 45' 45" West, a distance of 4.24 feet; THENCE, SOUTH 44°45'45" WEST (called SOUTH 48°17' WEST), along said cut back corner and the
Southeast line of said Metro Brick Company, Inc. tract, a distance of 24.01 feet to an "X" in concrete found in the common existing North right of way line of said Arapaho Road and South
line of said Metro Brick Company, Inc. tract, for the most Southerly Southeast corner of said Metro Brick Company, Inc. tract; THENCE, SOUTH 89°49'45" WEST said common line, a distance
for the beginning of a tangent (called NORTH 89°39' WEST), along of 19.93 feet to a "PK" nail set curve to the left; Page 1 of 3
PARCEL 1 -ARAPAHO ROAD PROJECT THENCE, WESTERLY, continuing along said common line and along the arc of said curve to the left having a radius of 730.00 feet, a central angle of 9°42'42",
a chord bearing South 84°58'25" West for 123.59 feet, for an arc distance of 123.74 feet (called 123.82 feet) to a point in a curve of the Southeasterly line of a called 3 & 48/100 acre
tract of land conveyed to St. Louis Southwestern Railway Company of Texas on January 15, 1902 as evidenced by the deed recorded in Volume 278, Page 115 of said Deed Records, said point
being the common Southwest corner of said Metro Brick Co. Inc. tract and the Northwest corner of the dedication of said Arapaho Road by said plat of Addison Car Care; THENCE, NORTHEASTERLY,
departing said common line, along the common Northwesterly line of said Metro Brick Company, Inc. tract and Southeasterly line of said called 3 & 48/100 acre tract, along the arc of
a non-tangent curve to the right having a radius of 714.00 feet (called 713.94 feet), a central angle of 1°15'05", a chord bearing North 40°27'38" East for 15.59 feet, for an arc distance
of 15.59 feet to a 5/8 inch iron rod set in a curve of the proposed North right of way line of Arapaho Road; THENCE, along the proposed North right of way line of Arapaho Road the following
courses and distances; EASTERLY, departing said common line, along the arc of a non-tangent curve to the right having a radius of 890.00 feet, a central angle of 7°03'24", a chord bearing
North 86°28'18" East for 109.54 feet, for an arc distance of 109.61 feet to a "PK" nail set for the point of tangency of said curve; EAST, a distance of 9.48 feet to a "PK" nail set
for an angle point; NORTH 44°55'56" EAST, iron rod set in the Company, Inc. tract Addison Road; a distance of 43.76 feet to a 5/8 inch common East line of said Metro Brick and West right
of way line of said THENCE, SOUTH 00°18'13" EAST, departing the proposed North right of way line of said Arapaho Road, along said common line, a distance of 21.64 feet to the POINT OF
BEGINNING; CONTAINING an area of 0.0380 acres or 1,657 square feet of land within the metes recited. Page 2 of 3
PARCEL 1 -ARAPAHO ROAD PROJECT All bearings are referenced to the North Right of Way line of Centurion Way, called S 89°51'55" E, according to the final plat of Lot 3, Surveyor Addition,
recorded in Vol. 77173, Page 135, Deed Records of Dallas County, Texas. A plat of description. even survey date herewith accompanies this I, Ayub R. Sandhu, a Registered Professional
Land Surveyor, hereby certify that the legal description hereon and the accompanying plat represent an actual survey made on the ground under my supervision. 􀁾􀀻􀀨􀁾􀀭􀁉􀀩􀀭􀁉􀀻􀀲􀀭􀁮
A ub R. Sandhu, R.P.L.S. Texas Registration No. 2910 Page 3 of 3
Parcel 1 Field Note Description Arapaho Road Project Town of Addison Dallas County, Texas BEING a description of a 0.0380 acre (1,657 square foot) tract of land situated in the Edward
Cook Survey, Abstract Number 326, Town of Addison, Dallas County, Texas, being a portion of that certain tract of land conveyed to Metro Brick Company, Inc. on September 11, 1996 and
recorded in Volume 96180, Page 02908 of the Deed Records of Dallas County, Texas, said tract being all of Lot 3, Block 1 of Addison Car Care, an addition to the Town . of Addison as
evidenced by the map recorded on June 8, 1987 and recorded in Volume 87111, Page 0286 of said Deed Records; said 0.038 acre tract of land being more· particularly described by metes
and bounds as follows; BEGINNING at a point at the North end of a cut back corner located at the Northwest intersection of Addison Road (variable width) as dedicated by said plat of
Addison Car Care with Arapho Road (60 feet wide) as dedicated by said plat of Addison Car Care, said point also being the most Easterly Southeast corners of said Lot 3 and said Metro
Brick Company, Inc. tract, from said point an "X" in concrete found bears North 44°45'45" West, a distance of 4.24 feet; THENCE, SOUTH 44 ° 45' 45" WEST (called SOUTH 48 ° 17' WEST),
along said cut back corner and the Southeast line of said Metro Brick Company, Inc. tract, a distance of 24.01 feet to an "X" in concrete found in the common existing North right of
way line of said Arapaho Road and South line of said Metro Brick Company, Inc. tract, for the most Southerly Southeast corner of said Metro Brick Company, Inc. tract; THENCE, SOUTH 89°49'45"
WEST said common line, a distance for the beginning of a tangent ". (called NORTH 89°39' . WEST)., along of 19.93 feet to a ."PK" nail set curve to the left; Page 1 of 3
PARCEL 1 -ARAPAHO ROAD PROJECT THENCE, WESTERLY, continuing along said common line and along the arc of said curve to the left having a radius' of 730.00' feet, a central angle of 9°42'42",
a chord bearing South 84 ° 58' 25" West for 123.59 feet, for an arc distance of 123.74 feet (called 123.82 feet) to a point in a curve of the Southeasterly line of a called 3 . & 48/100
acre tract of land conveyed to St. Louis Southwestern Railway Company of Texas on January 15, 1902 as evidenced by the deed recorded in Volume 278, Page 115 of said Deed Records, said
point being the common Southwest corner of said Metro Brick Co. Inc. tract and the Northwest corner of the dedication of said Arapaho Road by said plat of Addison Car Care; THENCE, NORTHEASTERLY,
departing said common line, along the common Northwesterly line of said Metro Brick Company, Inc. tract and Southeasterly line of said called 3 & 48/100 acre tract, along the arc of
a non-tangent curve to the right having a radius of 714.00 feet (called 713.94 feet), a central angle of 1°15'05", a chord bearing North 40°27'38" East for 15.59 feet, for an arc distance
of 15.59 feet to a 5/8 inch iron rod set in a curve of the proposed North right of way line of Arapaho Road; THENCE, along the proposed North right of way line of Arapaho Road the following
courses and distances; EASTERLY, departing said common line, along the arc of a non-tangent curve to the right having a radius of 890.00 feet, a central angle of 7 °03' 24" , a chord
bearing North 86°28'18" East for 109.54 feet, for an arc distance of 109.61 feet to a "PK" nail set for the point of tangency of said curve; EAST, a distance of 9.48 feet to a "PK" nail
set for an angle point; NORTH 44°55'56" EAST, iron .rod set in the Company, Inc. tract Addison Road; a distal1ce of 43. 76 feet to a 5/8 inch common .East line of said Metro Brick and
West right of way line of said THENCE, SOUTH 00°18'13" EAST, departing the proposed North right of way line of said Arapaho Road, along said common line, a distance of 21.64 feet to
the POINT OF BEGINNING; CONTAINING an area of 0.0380 acres or 1,657 square feet of land within the metes recited. Page 2 of 3
PARCEL 1 -ARAPAHO ROAD PROJECT All bearings are referenced to the North Right of Way line of Centurion Way, called S 89°51'55" E, according to the final plat of Lot 3, Surveyor Addition,
recorded in Vol. 77173, Page 135, Deed Records of Dallas County, Texas. A plat of description. even survey date herewith accompanies this I, Ayub R. Sandhu, a Registered Professional
Land Surveyor, hereby certify that the legal description hereon and the accompanying plat represent an actual survey made on the ground under my supervision. 􀁾􀀻􀁥􀀮􀁾1J-/;2-Ll A ub
R. Sandhu, R.P.L.S.· Texas Registration No. 2910 ". Page 3 of 3
Sc AN APPRAISAL REPORT OF lHE METRO BRICK COMPANY, INC. PROPERTY A WHOLE PROPERTYACQUISITION LOCATED AT lHE NORTHWEST CORNER OF THE ADDISON ROAD/ARAPAHO ROAD INTERSECTION TOWN OF ADDISON,
DALLAS COUNTY, TEXAS PREPARED FOR TOWN OF ADDISON C/O MR. MICHAEL MURPHY, P.E. DIRECTOR OF PUBLIC WORKS P.O. BOX 9010 ADDISON, TEXAS 75001-9010 DATE OF APPRAISAL MAY 24,2001 PREPARED
BY HIPES & ASSOCIATES 7557 RAMBLER ROAD SUITE 260, LB 25 DALLAS, TEXAS 75231
HIPES & ASSOCIATES REAL ESTATE APPRAISERS/CONSULTANTS OFFICE ADDRESS: 7557 RAMBLER RD #260 LOCK BOX 25 DAllAS. TEXAS 75231 May 24,2001 Mr. Michael Murphy, P.E. Director of Public Works
Town of Addison P.O. Box 9010 Addison, Texas 75001-9010 Re: The Metro Brick Company, Inc. Property Arapaho RO.ld Acquisition Dear Mr. Murphy: MAILING ADDRESS: P.O. BOX 600142 DALLAS.
TEXAS 75360 214-739-5941 I have inspected and made an appraisal of the above referenced property. Conditions pertinent to or indicative of the value of the property were researched and
investigated. This report sets forth my findings and conclusions and any material matters within the market place that may have an impact on the value of the subject, the proposed acquisition,
and any remainders both before and after the proposed acquisition. Factual data pertaining to the subject is exhibited along with any market data felt significant in the analysis and
opinion of value. Certificate of Appraiser I hereby certify: That it is my opinion the total compensation for the acquisition of the herein described property is $103,032.00 as of May
24, 2001 based upon my independent appraisal and the exercise of my professional judgement; That on April 11, 2001, and various other dates, I personally inspected in the field the property
herein appraised; that I afforded Mr. Dennis Calandar, the property owner or his representative, the opportunity to accompany me at the time of inspection; The comparable sales relied
upon in making said appraisal were as represented by the photographs contained in the appraisal and were inspected on April 11, 2001, and various other dates; That to the best of my
knowledge and belief the statements contained in the appraisal hereinabove set forth are true, and the information upon which the opinions expressed therein are based is correct, subject
to the limiting conditions therein set forth;
That I understand that such appraisal is to be used in connection with the acquisition of land area for a public project by the Town of Addison, Texas, and that such appraisal has been
made in conformity with the appropriate State laws, regulations, and policies and procedures applicable to appraisal for such purposes, and that to the best of my knowledge no portion
of the value assigned to such property consists of items which are noncompensable under the established law of said State, and any decrease or increase in the fair market value of subject
real property prior to the date of valuation caused by the public improvement for which such property is to be acquired, or by the likelihood that the property would be acquired for
such improvement, other than that due to physical deterioration within the reasonable control of the owner, has been disregarded in determining the compensation for the property; That
neither my employment nor my compensation for making this appraisal and report are in any way contingent upon the values reported herein; That I have no direct or indirect present or
contemplated future interest in such property or in any benefit from the acquisition of such property appraised; and that should I or any employee in my service acquire any interest
in or to the property appraised prior to the acquisition of the parcel by the Town of Addison, I will immediately notify the Town of such interest or interests; That I have not revealed
and will not reveal the findings and results of such appraisal to anyone other than the proper officials of the Town, until authorized by Town officials to do so, or until I am required
to do so by due process of law, or until I am released from this obligation by having publicly testified as to such findings. Respectfully submitted, '\. 􀁾 􀁾 􀁃􀁬􀁳􀁁􀁾 􀁾􀁁􀁈􀁬􀁰􀁥􀁳
Texas Certification No. TX-1321416-G Date Note: This is a Summa1YAppraisal Report which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) ofthe
Uniform Standards ofProfessional Appraisal Practice for a Summary Appraisal Report. As such, it presents only summary discussions of the data, reasoning, and analysis that were used
in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analysis is retained in the appraiser's file. The depth
ofdiscussion contained in this report is specifiC to the needs of the client and for the intended use stated below. .The appraiser is not responsible for unauthorized use of this report.
ii
SUMMARY OF SALIENT FACTS A Whole Property Acquisition at the NW/c of Intersection of Addison Road/Arapaho Road Metro Brick Company, Inc. -Owner Addison, Texas Date of the Appraisal:
Value Estimated: Property Rights Appraised: Property Appraised: Property Zoned: Highest & Best Use: "As vacant": "As improved": Estimates of Fee Simple Value: Whole Property Land Value
(Sales Comparison): Cost Approach: Income Approach: Sales Comparison Approach: Whole Property: Part Taken: Remainder Before the Take: Remainder Mter the Take: Land Value: Cost Approach:
Income Approach: Sales Comparison Approach: Damages to the Remainder: Final Value Estimate: JUST COMPENSATION May 24,2001 Market Value -Just Compensation Fee Simple A ±11,363 SF tract
improved with an office/sales facility, located at the NW/c of Addison Rd. & Arapaho Rd., Addison, Texas. PD; office, retail, restaurant, car wash To be assembled with adjacent railroad
property for potential future uses. Interim neighborhood services use, until such time as redevelopment is warranted. $ 56,815 $111,500 $103,032 $ N/A $103,032 $103,032 $ -0-$ N/A $
N/A $ N/A $ N/A $ N/A $103,032 III
TABLE OF CONTENTS Transmittal :Letter i Summary of Salient Facts . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii Table of Contents
iv Purpose and Use of the Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Definition of Market Value . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Scope of the Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 1 Property Rights Appraised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Effective Date of Valuation . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Identification of the Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 2 History of the Property 2 City Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Neighborhood
Analysis and Trends 5 Subject Property 6 Highest and Best Use -Zoning 8 The Appraisal Process -Whole Property 10 Land Valuation (Sales Comparison) . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 11 Cost Approach to Value 20 Income Approach to Value 24 Sales Comparison Approach to Value 27 Reconciliation 27 Part Taken -Valuation 28 Remainder
Before the Take -Valuation 29 Remainder After the Take -Valuation 29 Estimate of Just Compensation ADDENDUM Comparable Rental Data Assumptions & Limiting Conditions Photographs of the
Subject Plat of the Subject :Legal Description FAA Exhibits Zoning Map Qualifications of Appraiser 29 IV
Purpose of the Appraisal The purpose of this appraisal is to estimate the market value of the fee simple title to the real property to be acquired, encumbered by any easement not to
be extinguished, less oil, gas and sulphur. If the acquisition is of less than the entire property, any special benefits and damages to the remainder property must be included in accordance
with the laws of Texas. This appraisal is rendered in order to assist Addison in estimating the value of pnwerty to be acquired. Definition of Market Value Market Value may be defined
as follows: "Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obliged to sell, and is bought by one who is under no
necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available
within the reasonable future." Scope of the Appraisal The scope of this report includes the research, data acquisition and analysis as described in the appraisal process description
of this report. In gathering comparable sales data our sources include direct interview with grantor and/or grantee, commercial sales reporting services, other appraisers and real estate
practitioners, published data and information in our files. Comparable rent information is generally derived from direct interview with property managers and leasing agents. On comparable
rent and sale information the source is generally indicated on the respective comparable's page. Information on property operating expenses can be derived from a number of sources including
actual amounts provided to US for the subject property, file information, direct interview with property managers and owners and published industry averages. Replacement construction
costs amounts are generally derived from the national cost reporting services prepared by Marshall and Swift and, where available, actual construction costs are utilized. On some comparable
sales data an attempt is made to confirm third party information with either the grantor or grantee if there is concern about the data's reliability. Property Rights Appraised The property
rights appraised are those of the Fee Simple estate. Fee simple estate is defined as "Absolute ownership unencumbered by any interest or estate; subject only to the limitations of eminent
domain, escheat, police power, and taxation". (The Dictionary of Real Estate Appraisal, Second Edition, American Institute of Real Estate Appraisers, 1984, p. 123.) Effective Date of
Valuation The effective date of valuation is May 24, 2001. The inspection date of the subject was April 11, 2001, and various other dates. The date of this report is May 24, 2001. 1
Identification of the Subject Property The property being appraised is a ± 11,363 SF tract of land improved with a small sales/office building, located at the northwest corner of Arapaho
Road and Addison Road, in the Town of Addison, Dallas County, Texas. This is an area principally developed with commercial, industrial, and airport service uses. The acquisition of the
subject property is comprised of a strip taking along the south side of the subject containing ±1,167 SF adjacent to the existing Arapaho Road right-of-way, and the ±9,706 SF outside
the strip taking for a future park site. The survey provided to the appraiser representing the proposed acquisition is included in the Addendum to this report. Briefly, the legal description
for the subject property/part taken is described as; being a part ofBlock 1, Lot 3, Addison Car Care Addition, and a part ofthe Edward Cook Survey, Abstract Number 326, Town ofAddison,
Dallas County, Texas, containing a total of ±11,363 SF of land area. A metes and bounds legal description of the proposed acquisition has been provided to the appraiser and is included
in the addendum of the report. History of the Subject Property No property ownership information was provided to the appraiser for this appraisal assignment. However, data contained
in the appraiser's files indicates that the current owner acquired the subject property on September 11, 1996, from Carwash Properties North V, LP, as recorded in Volume 96180, Page
2908, of the Dallas County Deed Records, for $85,267. No previous ownership history is known. The subject property was purchased by the pre-existing tenant for the continued operation
of his business. Ad Valorem Tax Information The DCAD Acct. # for the subject is 10000610010030000. The DCAD appraised value for the subject is $85,000; land value @$68,210 and improvement
value @$16,790 for the year 2000. Estimated MarketinglExposure Time The USPAP requires that the appraiser address the estimated reasonable exposure time of the property at the ",;,alue
estimate. This is defined as the time prior to and ending with the effective date of the appraisal estimated to be required to market the property at the final value estimate. Conversations
with industrial and office brokers in preparing this report indicate that a reasonable exposure time for the subject property of nine to twelve months is supported by historic market
conditions. 2
CIlY DATA The Town of Addison is located in the northern portion of Dallas County, approximately 12 miles north of the Dallas Central Business District. The City is bounded by Dallas
on the north and east sides, Dallas and Farmers Branch to the south and the City of Carrollton on the west. The City is a suburb of Dallas and is a part of the Dallas Metropolitan area.
Addison has participated in the growth of the metropolitan area as shown by the following figures: Census Year Population Increase 1970 593 N/A 1980 5,553 +835% 1990 8,783 + 58% 1997
(est.) 11,100 + 25% The Town of Addison is primarily commercial in nature. Light industrial and flex warehouse space has developed in the areas east, north, and west of the Addison Airport.
The Dallas North Tollroad corridor sparked heavy hotel and multi-story office building development during the 1980's. This extends from the west side of the freeway to the railroad tracks
at Inwood road. The corridor along Midway Road from the Farmers Branch boundary continued the light industrial, office/flex development of the Midway Industrial Park that extends southward
to LBJ Freeway. The corridor along Belt Line Road through the City has seen extensive development with restaurants, hotels, and retail facilities. As a result, residential housing is
a minor factor in the property base of the Town of Addison. This has helped to keep taxes low, but has afforded the Town a very healthy tax income due to the high valuations of the commercial
properties. This is displayed in the quality and quantity of public facilities and services provided. Primary north/south access through Addison is via the Dallas North Tollway, Addison
road and Midway Road. Belt Line Road and Trinity Mills Road are primary eastlwest thoroughfares. The major development within the city is the Addison Airport, a major corporate and private
air facility, which occupies a large portion of the City's land area. due t Addison's accessibility and location in the path of the City of Dallas northern growth, substantial hotel,
commercial, retail, office and light industrial development has occurred. This is generally all of good quality and relatively recent construction. The character of the City is primarily
commercial with small concentrations of multifamily housing and upper-middle income single-family in its central and southwestern portions, and high-end single family housing found in
the extreme eastern portion. Addison has a Council/Manager type government. It provides police and fire protection to it's citizens. Utilities are provided by Lone Star Gas Company,
TU Electric Company, and Southwestern Bell Telephone Company. It gets it's water from the City of Dallas and sewer services from the Trinity River Authority and the City of Dallas. Utilities
appear to be adequate to service projected growth. Addison is in the Dallas and CarrolltonlFarmers Branch Independent School districts. There are no school buildings located within Addison's
city limits. There are a number of major shopping facilities in or near Addison, including the Galleria Mall and Northpark Mall. Additional large, modern retail areas are in close proximity.
The renowned retailer, Nordstrom's has a store in the Galleria shopping center just south of Addison at LBJ and the Tollroad and a new major retail center has been constructed on a tract
north of that. Other 3
significant large retail facilities are a free-standing Home Depot Expo Design Center and Mikasa Home Store. Due to the number of office and light industrial buildings in the area, there
is a large and diversified community of employers. Two of the largest are the Dallas Marriott Quorum and Intercontinental hotels. Addison is well known as an entertainment and restaurant
area with over 100 restaurants operating the in Town. The new "urban hub" consisting of a 70 acre development at Addison Circle, located north of Belt Line Road and bounded by Airport
Parkway, Addison road, the Toll road and Arapaho Road is currently under development. The main thrust is the increase of residential housing, an arts center, and parks and public use
areas. When completed, it is projected to increase the population by 50% -60%. The City feels that this will prevent Addison from losing businesses to northern suburbs and insure long-term,
quality growth. This should enhance overall values in the area in our opinion. After a period of speculative real estate investment activity in the early and mid 1980's, Addison and
adjoining areas were among those hardest hit by the real estate recession of the last half of that decade. That situatirm has now turned around dramatically. Due to its highly desirable
location, a resumption of market strength is currently found. MIPF market research has consistently reported strong increases in office construction over the previous several years.
In addition, Hines Interests plan 250,000 Sf of new office at the Galleria in the Dallas City limits, and Centre Development plans a 410,000 SF office structure at Dallas Parkway and
Spring Valley in Farmers Branch just south of Addison. For multi-family construction, MIPF research also shows strong growth and absorption. The overall prospects for the City's future
is considered to be good, in our opinion.4
NEIGHBORHOOD ANALYSIS AND TRENDS The subject neighborhood is described as being that area generally bounded by Belt Line Road on the south, Midway Road on the west, Westgrove to the
north and Quorum Drive to the east. This area is in the north-central portion of the Town of Addison which is a northern suburb of the City of Dallas situated approximately 12 miles
north of that municipality's central business district. The predominant feature and major land use within the subject neighborhood is the Addison Airport which is due north of the subject
property. This is a major fIxed-base corporate and private airport facility for northern Dallas County. Improvements at the airport include a 7,200' lighted runway, control towers, ILS
Approach System, and two 24-hour fIXed base operators providing fuel and other aircraft related services. It houses corporate aircraft for a number of businesses within the area. Much
of the improvement west of Addison Road is light industrial and airport related type construction. Major facilities for the City of Addison occur at the west corners formed by the intersection
of Airport Parkway and Addison Road. The northwest corner of those two streets houses the City of Addison's police and court facilities while the southwest corner is the site for the
City ofAddison's central fIre station. The majority of the rest of the development south of Airport Parkway, extending along Lindberg and on the west side of the airport, is light industrial
or commercial in nature. Addison Road is a major north/south connector within this portion of Addisonand North Dallas. In addition to commercial buildings found here, there was fairly extensive low and mid-rise garden offIce development during the construction boom of the early and
mid 1980's. Examples of this type of construction are found on the west side of that thoroughfare both south and north of the Keller Springs intersection with similar development in
the northeast quadrant of Keller Springs and Addison Road. Additional construction of this type is found along the south side of Westgrove west of Addison Road. North of Westgrove on
this side of Addison Road is found more offIce warehouse/offIce. showroom type development. There are still some fairly sizable tracts of undeveloped land, primarily on the east side
of Addison Road in this area. The development in the northern part of the northeastern part of the neighborhood has been high quality, single-story offIce showroom and hi-tech type construction.
There is still a signifIcant amount of developable land in this area. The City of Addison and adjacent areas north of Belt Line have enjoyed new development and generally increasing
land prices since the mid-1990's. Of particular interest is the developing apartment, hotel, retail, and commercial activity surrounding the Addison Circle portion of the subject neighborhood.
The attractiveness of relatively close in North Dallas locations should ensure strong demand for existing properties and vacant development land within the subject neighborhood as the
real estate economy continues to improve. As these events occur, the subject neighborhood development prospers. Current market evidence suggests a healthy real estate market. 5
SUBJECT PROPERTY Site Data The subject tract is near triangular in shape, the northwest side curving along the railroad right-ofway, based on information provided in a site plan. Plats
indicate approximately ± 112' of boundary with the west right-of-way line of Addison Road and ±144' of frontage along the north side of existing (but unimproved) Arapaho Road. Total
land area is ±11,363 SF as shown on the survey provided by the Town of Addison and a survey/site plan provided by the previous owner. Addison Road is a four-lane undivided street, with
a center turn lane. The improved portion of Arapaho Road terminates to the east of the subject property, where it is a concrete divided multi-lane road. The Arapaho Road right-of-way
along the south side of the subject is unimproved and currently utilized for access, parking and storage. The subject appears to be at grade with Addison Road/Arapaho Road. Physical
Characteristics The subject site is basically level with no major drainage problems noted. Site grading appears to such to carry surface water from the entire site to the south and east
and the drainage in Addison Road. An open cut drainage ditch is situated near the north side of the subject improvements. This is generally effective except in very heavy rainfalls.
Apparently off-site drainage capacity is sufficient. The subject property is not located in a HUD designated flood plain area according to Town of Addison, Texas Community Panel No.
481089 0005 A, effective July 16, 1980. Access in and out of the site is accomplished from existing frontage along Addison Road adjacent to the east. Additional access, via unimproved
Arapaho Road right-of-way, is currently available along the south side of the site. However, no drive-way cuts are currently existing within this area. Size/Shape The subject property
contains ±11,363 SF in a triangular configuration. The site is of insufficient size and shape to support independent economic development, if it were vacant and available for development.
There is a pipeline easement across the northwest side of the site, which precludes building permanent improvements in that area. Additionally, there is a 25' setback requirement along
both Addison Road and Arapaho Road. That portion of the site available to support improvements is too limited for reasonable economic viability. Currently, the existing Arapaho Road
right-of-way to the south of the subject site and the railroad right-of-way to the north of the subject are utilized for parking in support of the subject improvements. The only on-site
parking noted was limited to parallel parking in front of the subject improvements (east side). Zoning: The existing improvements are considered "non-confonning" under the Town's cUITent
zoning ordinances. Per the sale plat of the subject, the existing improvements are situated within the setback requirements. A 25' setback building line is required off of both Arapaho
Road and Addison Road. The subject property is zoned "PD", a planned development zoning allowing for office, retail, restaurant, and car wash development, under the Town of Addison's
ordinances. This is a fairly broad classification providing for a wide variety of commercial usages. Due to the location of the subject tract proximate to Addison Airport, a 20' maximum
building height restriction is imposed on any building improvements. The actual development of the subject would require specific plan approval by the Town. 6
Utilities Sanitary sewer and water connections are provided through the Town of Addison. It is presumed that the present utilities directly available to the site are of sufficient capacity
to support commercial development. Telephone service, electricity and natural gas are available and in adequate supply by private companies serving the subject's general area. The current
design of access is considered sufficient to support commercial development. Given the abundance of adjoining street right-ofway, direct access to the subject site is considered both
reasonable and probable. Easements and Restrictions As set forth in the Assumptions and Limiting Conditions of this report, there was not available to the appraiser in the preparation
of this appraisal a current survey and/or title policy. It is assumed from a review of plats and public information that there are no, other than standard utility easements, easements
affecting the subject property which are not shown on the site plans/plats, and further, that there are no private deed restrictions that would hinder its current use or future development.
It is suggested that these assumptions be verified by competent parties. Easements shown on the plats available to the appraiser indicate that there is a Dorchester Pipeline easement
along the northwest side of the subject site and a T.P. & L. easement along the south side of the subject site. Typical utility easements are presumed to service the site. Site Improvements
The subject property is improved with 2 buildings, a mixture of concrete and brick paving, and ornamental brick fencing. The buildings are currently utilized for display and sales office
functions. The building fronting Addison Road is a one story brick veneer building, constructed in a residential style, ±22' x ±42' (±924 SF). This building is utilized as a display
and sales office for the Metro Brick Company, Inc. The east central portion of the building is generally used as open display area. Along the south, west and north sides are sales offices.
There is a restroom located on the west central side of the building. Interior trim is generally related to the products the company markets. Overall condition of this subject improvement
is considered to be very good. The roof is a low pitch, asphalt shingle type, with HVAC unit. Gutters and drains were noted. Security lighting was noted along the eves. Near adjacent
to the west of the residential style office is a brick veneer garage and storage building. The garage is basically 23' x 17.5' and complete with overhead residential garage type doors.
This area has sales samples displayed and also appears to be utilized as a breakroom area for the brick yard employees. Attached to the south side of the garage building is a brick veneer
storage room, approximately 16.5' x 8.5'. Storage of sales samples was noted in this area. A significant portion of the site area to the south, east, and west of the buildings is paved
with bricks. Ornamental brick wall/fencing is noted to the south and to the north of the buildings. The bulk of the currently available parking for the subject buildings is situated
within the existing right-of-way of Arapaho Road. A limited amount of parking may be available adjacent to the railroad right-of-way along the northwest side of the subject site. It
appears that portions of the site could be reconfigured to provide for limited parking in support of the building improvements. As the subject property is currently improved, it appears
that there is minimal parking available on the Addison Road side of the subject site to support the subject improvements. 7
HIGHEST AND BEST USE The Highest and Best Use, as defined by Real Estate Appraisal Terminology, Ballinger Publishing Company, Cambridge, Massachusetts (author Byrl D. Boyce, Ph.D.),
Page 107, is as follows: "That reasonable and probable use that will support the highest present value, as defined, as of the effective date of the appraisal. Alternatively, that use,
from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible and which results in highest land value. The
definition immediately above applies specifically to the highest and best use of the land. It is recognized that in cases where a site has existing improvements on it, the highest and
best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until the land value in its highest and best use exceeds
the total value of the property in its existing use." Also implied is that the determination of the Highest and Best Use results from the appraiser's judgment and analytical skill, i.e.,
that the use determined from analysis represents an opinion, not a fact to be found. (Appraisal Terminology and Handbook, AIREA AND SREA, 1975) Some of the more important factors of
influence include the legal parameters associated with zoning ordinances, deed restrictions, building code requirements and area market supply/demand conditions. Further, the trends
within the neighborhood must also be considered and are discussed in the "Neighborhood Description and Trends" section of this report. In addition to the typical considerations involved
in estimating the Highest and Best Use of the subject property, the City of Addison requires approval from the U.S. Department of Transportation, Federal Aviation Administration (FAA),
for the construction or alteration of improvements located within many of it's zoning classifications. Even though the subject property is located outside the currently existing "clear
zone" of the Addison Addison Municipal Airport, these additional requirements apply. The subject property is located proximate to the east and south of the existing airport boundary
and clear zone. Consideration was given to the development currently existing proximate to the north, south, east, and west of the subject in analyzing the potential uses for the subject
site. While the FAA will not speculate on what types of improvements or alterations would be allowable, without proper application and supporting documentation, it is presumed by the
appraiser that those uses existing proximate to the subject generally reflect the type of development that would be probable. Exhibits containing a "Notice of Proposed Construction or
Alteration" (Form Approved OMB No. 2120-0001) are provided in the Addendum section of this report. 8
Physically Possible Uses As previously described, the subject tract is of such size and shape to preclude the physical possibility of construction of most structures permitted under
current zoning and clear zone restrictions. Legally Permissible Uses The main constraints are those affected by the subject tract's zoning ordinaI1ce. The "PD" zoning ordinance which
regulates the subject allows for office, retail, restaurant, and car wash uses. The character of the surrounding development and the subject's proximity to the Addison Road/Arapaho Road
controlled intersection, and Belt Line Road, it is estimated that retail or office development would be the most appropriate for the site, if it were of sufficient size and shape to
support such development. There is no current or contemplated change in the subject site's zoning, nor is there one which would provide development opportunities that would create a
higher return to the land than it's current classification. Financially Feasible Due to building height restrictions imposed by clear zone considerations it is unlikely that a typical
office development would generate the necessary revenues to provide for an adequate return on the cost of the land and improvements at current market office rent rates in this location.
Retail/service or restaurant occupancy and rental rates suggest that the current local market is strong enough to support financial feasibility for development of the subject site as
it is zoned for retail/service or restaurant use. These uses could include restaurant, fast-food, convenience store, service station, satellite banking, copy center, or comparable high
intensity/exposure traffic uses, again if the site were of sufficient size and shape to support independent economic development. Maximally Productive Based on the subject's zoning,
current operational results and market analysis, it is estimated that the maximally productive utilization of the site as a retail/service or restaurant/fast-food site is substantiated.
The subject site, as developed with the older office/sales-style improvements representing a very high building-to-Iand ratio, is maximally utilizing the site, given the current size
and shape of the subject site. Highest and Best Use As Vacant Land The estimate of the Highest and Best Use of the subject Whole Property would to be to utilize for off-site parking
for commercial developments in the area which may be short on parking, or to sell to the adjacent land owner (railroad). If vacant, the size and shape of the subject site render it unsuitable
for development to any use which is allowable under the current zoning. It is unlikely that a change in zoning would materially affect the probable future use of the subject site, if
it were vacant and available for development. Highest and Best Use As Improved Analysis of the subject property indicates that the currently existing improvements provide contributory
value to the property. The improvements represent the estimated Highest and Best Use of the property "as improved". The existing improvements would provide for income which, in effect,
provide a return on and of the investment represented by the property. 9
THE APPRAISAL PROCESS Appraisal theory provides three basic methods of appraising properties. They are the Cost Approach to Value, the Income Approach to Value, and the Sales Comparison
Approach to Value. The Cost Approach to Value embraces the philosophy that the replacement costs applied under the Principle of Substitution may define the value for a property. In this
approach to value, the appraiser estimates the market value of the site, the replacement cost of the improvements less any applicable accrued depreciation, and then combines these two
items to arrive at a cost estimate of value. The Income Approach to Value is based upon an analysis of the potential income stream of the property and comparison of that income stream
with those of similar properties. This calculation and analysis results in a net income stream attributable to the real estate. That income is then capitalized at a rate which is commensurate
with the rates expressed in the marketplace by investors for similar properties. The resulting figure is an income estimate of value. The Sales Comparison Approach to Value is a basis
for estimating value based upon units of comparison derived from sales of similar properties in the marketplace. Those units of comparison are then applied to the subject property to
arrive at a range of values which should be indicative of a value estimate. This approach is used not only for improved properties but also in estimating the current value of the subject
site. That portion of the report is necessary to complete the Cost Approach. After applying the three traditional approaches to value, it is the appraiser's responsibility to weigh the
strengths and weaknesses of the three different approaches to value and determine which of the three is most applicable in the valuation of the subject property. This section of the
report is captioned as "Reconciliation". 10
Land Value by the Sales Comparison Approach In this section of the report, the appraiser will present data and analysis leading to an estimate of market value as of the effective date
of the appraisal for the subject site. Basically, this value is estimated by the comparison of sales of similar land tracts that are current or of recent date to the subject tract. This
comparison relates the differences, if any, in the legal, physical, locational, and economic characteristics of the comparable sales and the subject site, analyzing also any differences
in real property rights transferred, dates of sale, motivations of buyers and sellers, and any unusual financing arrangements for the sales analyzed, any of which factors might account
for price variations. The adjustments, if any, for property rights conveyed, financing terms, sale conditions and market conditions are made sequentially and individually. Adjustments
for location and physical characteristics are accumulated and made at the end of any adjustments from the previously cited sources. From the information available, the following comparable
sales presented all transferred ownership in fee simple, and there were no known unusual financing terms. General adjustments for market conditions relate to passage of time, e.g., in
a rising market an earlier comparable sale would be adjusted upward to reflect conditions as of the effective date of the appraisal. Over the time period reviewed for the comparable
sales, trends in either direction which cannot presently be ascribed to other contributing factors within the marketplace, other than those discussed following the comparable sales presentation,
will be adjusted based on historical market data. At the end of the presentation of the comparable sales, those sales will be summarized and a grid presented which makes the remaining
adjustments called for relative to locational and physical differences between the comparables and the subject tract. The comparable sale prices as adjusted to the subject site are then
analyzed to produce an estimate of market value for the land. As the subject whole property is of insufficient size and shape to support independent economic development, it's contributory
value for some other use is deemed the most appropriate methodology to utilize. The land sales selected reflect the contributory value of the subject site to the adjacent railroad property
to the northwest; the only property that adjoins the subject site. There are other methods available for estimating land value including allocation, extraction, subdivision and the land
residual technique. Generally, in all cases, the estimation of land value by comparable market sales is considered appropriate and most desirable where sufficient data is available.
This is the case for the subject site and the Sales Comparison Approach will be utilized solely in estimating it's current market value. Sufficient data is available within the recent
past to make an accurate appraisal specifically for the subject. The subject property is triangular in shape and contains ±11,363 SF. There is s pipeline easement across the northwest
(interior) side ofthe site, and 25' building setback requirements on the south and east sides of the site. It is unlikely that this site could be developed if it were vacant and available
for development. It provides for an insufficient foot-print for building development. Therefore, it will be evaluated "as if' it were a part of the adjacent railroad property. The adjacent
railroad property is considered the ±4.5 acre "}'" tract adjacent to the northwest side ofthe subject. The comparable sales will reflect this property, resulting in a subject-parent
tract. In this manner, the subject site has value comparable to that ofthe adjacent tract. Exclusive ofthe adjacent tract, the subject site has near zero value due to a minimal market
for a site of such size, shape, and encumbrances. 11
Comparable #1 Location: Legal Description: Grantor: Grantee: Date of Sale: Recorded: Consideration: Terms of Sale: Cash Equivalency: Size: Zoning: Comments: Verified By: Mapsco #: 3800
Realty Road (Realty Rd./Arapaho Road connection), Addison, Texas Beltline-Marsh Business Park, Blk. 1, Lot 4R, Addison, TX Lincoln Trust Co. Osteomed Corporation Pending Contract 04/02/01
Pending $5.20/SF ($988,158.60) Not Available $5.20/SF ±190,030 SF; 4.3625 Acres 1-1, industrial This pending sale will have a portion of extended Arapaho Road through it. It is approximately
the same size as the parent property. Contract D-14A 12
Land Sale Comparable #2 Location: Legal Description: Grantor: Grantee: Date of Sale: Recorded: Consideration: Terms of Sale: Cash Equivalency: Size: Zoning: Comments: Verified By: Mapsco
#: Southeast corner of Westgrove & Excel, Addison, TX Block A, Part of Lots 3, 4, 21, 22, Carroll Estates Addition, Addison, TX Stratus Properties Operating Company Jackson-Shaw/Addison
Tech, Ltd. October 1, 1999 (filed) 99192/3812 $4.50/SF ($1,524,252 -calculated) All cash to seller. $4.50/SF ±338,773 SF; 7.776 Acres C-1 (commercial) This site is a minor corner location,
just outside the airport boundaries, similar to that of the subject parent tract. It has since been developed with a large tech-space building. Debbie Carter (w/gte) 972.628.7400 D-4P
13
Land Sale Comparable #3 Location: Legal Description: Grantor: Grantee: Date of Sale: Recorded: Consideration: Terms of Sale: Cash Equivalency: Size: Zoning: Comments: Verified By: Mapsco
#: ±4300 Sunbelt, Addison, Texas Sunbelt Business Park Addn., Addison, TX Blackland Properties Johnson Equipment November 28,2000 $4.50/SF (±$744,876) All cash to seller $4.50/SF ±165,528
SF; ±3.8 Acres C-1, commercial This is an interior tract near the north side of the airport. This is predominantly a tech-space area. This site is comparable in size to the subject parent
tract. Randall Johnson -Purchaser D-4P 14
[COMPARABLE MAP]
Pending $5.20 190,030 Commercial 04/01 􀁧􀁑􀁾􀁲􀁟􀁴􀁩􀁩􀁟􀁵􀀮􀁳􀁬􀁰􀀡􀁳􀁓􀁐􀁍􀁾􀁾􀂥􀀿􀁩􀁬 I!::::::::::=:::::::::=::::===:=:::::=::::= 2 10/01/99 $4.50 338,773 Industrial 3 11/28/00 $4.50
165,528 Commercial Subject 05/01 N/A ±196,020 Commercial Subject-Parent Tract As discussed previously, the subject Whole Property is judged to be of insufficient size, shape, and building
utility to support independent economic development lias if' it were vacant and available in the open market. The most probable scenario for the subject Whole Property lias if' vacant
and available for development, would be for development as a part/portion of an adjoining property. As there is only one property adjoining the subject Whole Property, the railroad property
to the north and west, this property was the obvious selection for association with the subject Whole Property. The resulting subject-parent tract benefits both tracts; (1) it potentially
provides the necessary site area c.nd shape to cure the subject's deficiencies, and (2) it would provide better access for the vacant railroad property for future development. As discussed
at the beginning of the Land Valuation section (Page 11), the subject Whole Property will be evaluated as if it were a proportional part of a subject-parent tract in this analysis. To
consider the subject Whole Property on an independent basis would adversely affect the potential market value of the site by severely restricting the probable end-users for such a site.
Adjustments to Land Sale Comparables Standard appraisal practice calls for the analysis of the sales presented comparing each to the subject in regard to time passed from sale date to
appraisal date (that is, changes in market conditions), locational differences, relative size, physical characteristics and utility. Adjustments were made from the known, i.e., the actual
sale, to the unknown, i.e., the value of the subject. In a comparison heading where the subject is deemed to be superior to a particular sale, an appropriate upward adjustment is made
to the comparable sale and vise versa. Your appraiser considered the application of paired sales analysis in adjusting the comparable sales to the subject. There was not sufficient comparability
of the sales within those available for review that permitted a reasonable application of that type of analysis. The adjustments are based to a great degree on subjective analysis and
market appraisal experience, but the adjustments rely on some easily recognizable and generally accepted maxims about the various aspects of comparison. They are briefly discussed in
the following paragraphs which in short form discuss the items considered for each adjustment heading. 15
Property Rights Conveyed This is a consideration of the real property interest conveyed. In the case of the comparable sales used in this analysis, all were transferred in fee simple,
indicating no adjustment for this heading of comparison. Financing Terms This reflects that for similar properties, a higher price might be paid for one wherein very attractive financing
terms are available to the purchaser. Any adjustments required under this consideration have been addressed within the discussion of each individual sale in converting reported transaction
price to cash equivalency where conditions so indicate. Conditions of Sale This element of comparison is to reflect any unusual motivations of buyer and/or seller that would take the
transaction out of the broad parameters of the definition of a sale for market value. Although paired sales were not available with which to compare it, it is the appraiser's opinion
that those conditions in all probability did not exist for any of the comparables selected for inclusion in this report. Market Conditions Any number of factors, including fluctuations
in supply and demand, inflation, depression and the like may cause changes in market conditions which are reflected in the prices of real property. The subject neighborhood has undergone
significant growth in the recent past, which in tum has lead to escalating land prices. Upward Time/Market Conditions adjustments will be applied to the selected comparable sales to
reflect this change. Sale #2 is approximately 18 months old. While the more recent comparable sales do not provide any significant indication of upward pressure on prices, it is felt
prudent to apply a modest upward adjustment to this sale for time to this sale in comparison to the subject-parent tract. Both Sales #1 and #3 are sufficiently recent in time as to require
no adjustment for market conditions. Location In this portion of the adjustment process the appraiser considers locational aspects of the comparable sales as opposed to the subject.
Such aspects as quality and quantity of surrounding development, adjacent land uses, and other perceived physical amenities are considered. Due to the lack of paired sales characteristics
in the comparables, the adjustments are qualitative. The subject-parent tract is located within a transition area of Addison Road. To the south is much more intense retail/restaurant
development associated with Beltline Road. Beginning just to the south of the subject-parent tract along the west side of Addison Road is typically more commercial/industrial in nature,
partially due to the influence of adjacent Addison Airport. To the north of this commercial/industrial character area transition to office, service, and tech-space development predominates.
Each of the sales is considered to be inferior in location as compared to the subject-parent tract due to the "Addison Road" name recognition factor. Additionally, Sales #1 and #3 are
interior tracts as compared to the subject-parent tract's comer influence. Sale #2 has good quality corner location. Each sale is adjusted upward to the subject-parent tract for locational
considerations. Zoning The zoning of each of the Comparable Sales is considered to be comparable to that of the subjectparent property. No adjustment is deemed appropriatefor these sales. 16
Utility In this category a number of factors are considered in adjusting the comparable sales and offerings to the subject property. They include physical dimensions and shape of the
site, topography of the site, availability of public and private utilities, and accessibility among others. Those physical dimensions which permit the most economic and efficient use
of the land also command better prices. This fact perhaps is best stated in that not having this advantage is an offset to sites with poor frontage-to-depth ratios and the like. The
density of development allowable on the subject is restricted to a maximum building height of 20'. Similar restrictions apply to the Comparable Sales. The density of development appeared
to be comparable between the sales and the subjectparent tract. Therefore, no "utility" adjustment will be made in this analysis; the components of site "utility" being address in zoning,
location, etc. Being located adjacent to the south end ofthe Addison Ai1]Jort mnway will make the approval process for any planned development of the subject site extremely rigorous
and potentially restrictive. This could/would have a significant impact on the estimated market value for the subject property. For the pU1]Jose ofthis appraisal, it is presumed that
a reasonable level of development would be allowable by the FAA and the Town ofAddison. Access, exposure, and frontage all impact how a property will be accepted by the market. Additionally,
immediacy of access is a specific consideration for the subject property, as opposed to general access which is considered as a part of the "Location" category. SightNiew This factor
considers (1) how the property is presented to the public and (2) what the impact of surrounding property characteristics affect subject property. Each of the Comparables are within
a typical commerciaVtech-space development area, which exhibit good orderly development and design. The subject-parent tract is deemed to be comparable to each of the comparable sales.
Accesslfrontage Each of the comparable sales is judged to be superior to the subject-parent tract in this category. Both Sales #1 and #3 are interior tracts which have extensive frontage
along their respective streets, relative to the size of their sites. The subject-parent tract, which a quasi-corner at the present time, has relatively little road frontage in relation
to it's size. Sale #2 is located at the comer of Westgrove and Excel, providing dual improved road frontage. Sale #1 is situated along Realty as Realty becomes a quasi-corner. Each of
the sales is superior to the subject-parent tract and is adjusted downward accordingly. Size The subject-parent tract is ±4.5 Acres SF in size. Sales #1 and #3 are ±4 Acres in size and
considered comparable to the 􀁳􀁵􀁢􀁪􀁥􀁾􀁴􀀭􀁰􀁡􀁲􀁥􀁮􀁴tract. Sale #2 is ±7.8 Acres in size and is considered to be inferior to the subject-parent tract. It is typically found that
much larger tracts do tend to sell for a lesser "per unit" price than do smaller tracts that are generally available for similar, although smaller scale, developments. While there are
no absolutes noted for size difference among the comparable sales selected for presentation herein, the general market reflected throughout the range of sales reviewed for this appraisal
does indicate that the market is somewhat size sensitive. To a limited degree the market reflects a willingness to pay slightly more for smaller tracts, on a per square foot basis, than
for larger tracts. There follows a grid which displays the adjustments to the comparable sales called for in the opinion of your appraiser. 17
Cash Equivalent Price $/SF $5.20 $4.50 $4.50 Property Rights Adjustment -0--0--0-Adjusted Price $/SF $5.20 $4.50 $4.50 Conditions of Sale Adjustment -0--0--0-Adjusted Price $/SF $5.20
$4.50 $4.50 Time/Market Conditions Adjustment -0-+5% -0-Adjusted Price $/SF $5.20 $4.73 $4.50 Location Adjustment +10% + 5% +10% AccesslFrontage -10% -10% -5% Zoning -0--0--0-Size Adjustment
-0-+10% -0-SightNiew -0--0--0-Adjustment Factor -0-+5% +5% Adjusted Price $/SF $5.20 $4.97 $4.73 Market Va)ue Estimate -Subject Site After adjustments, the comparable sales range from
$4.73/SF to $5.20/SF. The average of the adjusted sales price is calculated at $4.97/SF. It is the appraiser's opinion that each of the Comparable Sales, as adjusted, are representative
of the probable market value of the subject property, as a proportional part of the subject-parent tract. Sales #1 and #3 are very similar is size and potential for future development.
Sale #2 is near adjacent to the airport and has been developed with a use comparable to the probable future use of the subject-parent tract. All of the sales are more expressive of the
lower density development available for the subject, given the subject's location proximate to Addison Airport. Each comparable has its strengths and weaknesses as compared to the subject.
While these comparables are not identical to the subject in terms of exact location, these sales are believed to accurately reflect the most probable range of value for the subject,
as well as approximating the ultimate use of the subject. The comparables selected ultimately required fewer adjustments than other comparables in the market would require. 18
When analyzed in light of the general surrounding development, it appears that there is a market and, hence, a range of value which is generally acceptable for various forms of development
on properties of this class in this area. . Over sixteen sales, occurring from 1997 to the present, were reviewed in the development of this appraisal. These sales were proximate to
the market area of the subject and were analyzed to determine if there was any definable trend to the market activity. It is noted that sales to end-users is becoming more wide spread
in this market for all classes of properties. Speculative investment does not appear to be the principal motivating factor. A number of sales reviewed were for near term use/development,
and these sales reflected the upper limit of the market value range. The range of the value indications provided by the Comparable Sales is considered to be a good indication of probable
market value for the subject property. Based on the aforementioned data and analysis, the Market Value of the subject site is estimated to be $5.90 per square foot of the land area.
The subject is estimated to contain ± 11,363 SF of land area according to the documents provided. Therefore: Site Area ±11,363 SF Value Estimate $5.00ISF $56,815 ESTIMATED MARKET VALUE
-WHOLE PROPERTY "SITE", Say $56,815 19
COST APPROACH TO VALUE As noted, the Cost Approach to Value estimates the replacement or reproduction costs of the improvements plus land value to arrive at an indication of worth for
the property appraised. This theory of valuation is based on the Principle of Substitution which holds that a knowledgeable purchaser will not pay more for a property than that amount
for which he can obtain a property of equal utility and desirability by acquiring a site and constructing a building thereon within a reasonable period of time. This approach entails
the following: 1. Estimation of the current replacement or reproduction cost of the improvements. 2. Estimation of all accrued depreciation, if any, of the improvements, deducting such
depreCiation from the current cost estimate. 3. Adding the value of the land as estimated by the Sales Comparison Approach to the estimated depreciated cost of the improvements. Reproduction
cost is defined as the cost required to exactly duplicate the existing improvements as of the effective date of the appraisal. Replacement cost is that estimated required to construct
at current prices the Subject improvements with equivalent utility to the existing structure using current standard design layout and modern materials. As the Subject building is ±60
years old and the fact that these kind of structures are of fairly standard design and construction, it is our opinion that utilization of replacement cost is appropriate within the
Cost Approach. Replacement Cost Estimate Direct Building Costs The source for current cost data is from the Marshall and Swift Valuation Service as adjusted for time and locational variances.
This building has the characteristics between the "Average Class 0" and "Good Class 0" office buildings as described by Marshall and Swift. In Section 15, Page 17, which describes this
type of building, current estimated replacement costs are stated at $82.67/SF for Class "0" Good and $58.63/SF for Average Class "0" construction. The finish and climate control of the
subject subject are better than the "average" category, but not nearly as extensive as the "good" category. The subject property appears to be more of a typical residential exterior
construction, with the interior lacking many of the amenities of residential construction. Construction costs for "shell" Class "0" office buildings range from $30AO/SF for "average"
Class "0" to $46.16/SF for "good" Class "0" buildings. The exterior of the building supports limited, but good quality landscaping and sections of 􀁯􀁲􀁮􀁡􀁭􀁥􀁮􀁾􀁡􀁬 brick fencing/screening.
Based on the physical inspection of the subject property, the estimated construction cost for the subject main building improvements is $72.00/SF The estimated construction cost is adjusted
by factors also prepared by Marshall and Swift for time lapse to the present from cost preparation date-1.03x--and adjustment for price differentials caused by different physical geographic
locations--0.91x. Multiplying these two factors times the $72.00/SF indicates a current estimated replacement cost for the subject at $67A9/SF. 20
Also included in direct costs are elements not covered in the per square foot amount published by Marshall and Swift. These items would include the cost of the landscaped areas at the
front of the building, the ornamental fencing/screening, the paved area at the front and sides of the office, and the garage type storage structure behind the main office building. Not
included is the brick paved parking area to the south of the buildings, as this area is within the existing Arapaho Road right-ofway. The estimated cost new of the landscape items is
$2,500. The estimated cost of the ornamental brick fencing/screening is $2,000. The estimated cost of the "accessory" garage/storage building to the east of the office is $19,285 (551
SF x a shell+ cost estimate of $35.00/SF). These estimates are based on interviews with developers as cross-referenced with Marshall and Swift. The other major element of direct expense
not covered in the per square foot cost is the amount for paved parking, walks and drives. It is estimated that there is approximately 1,250 SF of paving associated with the subject
property. The paving is a mixture of concrete and brick paving, estimated at a current new cost estimate of $3.50/SF (per Marshall and Swift estimates for concrete). This equates to
$4,375 for the paving on the subject site as obtained and adjusted from the segregated cost section of the Marshall and Swift report found on Page 2 of Section 66. Indirect Costs Other
elements of construction costs not covered in the basic per square foot amount in Marshall and Swift are an allowance for entrepreneurial profit, loan fees and expenses over and above
interest during construction--which are included in the basic square foot cost--and the initial leasing and marketing costs. The estimate of entrepreneurial profit is based on -0-% of
the direct replacement cost. It is unlikely that an investor would build a property the size of the subject. This is more typically an owner/builder type of property. The subject is
so small as to make the risk of such speculative "investor" venture highly unlikely. No entrepreneurial profit is estimated. The Marshall and Swift published prices do cover interest
during construction but not loan fees. Depreciation -General Depreciation is defined in most appraisal textbooks as a loss in value as of the date of the appraisal from total replacement
or reproduction costs. That depreciation may fall within three different categories. Those categories and the method of estimating the depreciation in each category are explained in
the following paragraphs. Physical Deterioration Curable physical deterioration refers to items of deferred maintenance. This applies only to items requiring immediate repair. The measure
of this category is the cost to correct or cure. Repairs to items such as the roof, painting the interior, carpeting and painting the exterior are typical items of curable physical deterioration.
The building in general demonstrated an average standard of ongoing repair and maintenance. No deduction for Curable Physical Depreciation is indicated. Short-lived incurable physical
depreciation recognizes that, while the majority of the structural components will have a life equal to the economic life of the total building, some will have a shorter 21
life and a deduction must be made to allow for their gradual deterioration and eventual replacement. This amount is calculated by multiplying the percentage derived by dividing effective
age by total physical life times the estimated replacement cost of the short-lived component. Longlived physical incurable depreciation takes into account the decline in value due to
normal wear and tear on the basic building structure and any concurrent loss in economic use due to its age. This amount is typically calculated by dividing the effective age of the
building by its estimated economic life and multiplying the percentage result times the total replacement cost new less physical curable depreciation and the replacement cost of short-lived
items for which physical incurable depreciation is taken, then, deducting that figure from replacement cost-new. Functional Obsolescence Functional obsolescence is loss in value attributable
to such factors as poor design, changes in technology and super-adequacies and/or deficiencies in the construction. Incurable Functional Obsolescence occurs where deficiencies or super-adequacies
are involved and the cost to cure is greater than the anticipated increase in utility or benefits to be derived. This form of depreciation is usually measured by the capitalization (by
the rate developed in the Income Approach) of the net income loss attributable to the deficiency or super-adequacy. Curable Functional Obsolescence is that for which the cost to cure
provides equivalent or superior economic returns to the property. As noted, the subject improvements are of sufficient appeal in the market, although not in conformity with the current
zoning of the site. It is noted that the building is in good physical condition. As such, it is the appraiser's opinion that there are no elements of curable or incurable functional
obsolescence present in the subject property, at the property's estimate of highest and best use. Accrued Depreciation Estimate by Life Method This method of estimating total accrued
depreciation is found by multiplying the percentage derived by dividing the effective age by the estimated total economic life of the building times the estimated replacement or reproduction
costs of the improvements. The Marshall & Swift guidelines indicate a typical economic life for buildings of the type and construction quality of the subject to be ±50 years. The building's
actual age is unknown, but a physical inspection results in an estimate of its effective age of ± 20 years due to its present condition and quality of upkeep. The following table shows
the calculation of Depreciation of All Items as described. -Estimated Direct Building Replacement Cost New (Building) Times Ratio of Effective Age to Use Life (20/50) Estimated Incurable
Physical Depreciation, Long-Lived Items $62,361 xOAO 􀁾􀀲􀀴􀀬􀀹􀀴􀀴22
Economic Obsolescence Economic obsolescence is a loss in value caused by detrimental influences outside the site. Unsightly or undesirable nearby usages such as salvage yards and heavy
industrial plants that have an adverse effect on the value of the appraised property are causes of this type of value loss. Economic loss is always incurable and it is measured by either
capitalizing the rent loss attributable to the negative influence or by comparable sales. No noted adverse physical influences so affecting the subject property as to produce economic
loss from that cause were observed. There follows a Cost Approach Summary tabulating the preceding data leading to subject's value estimate by this method. COST APPROACH SUMMARY Direct
Costs 924 SF @$67A9/SF -Main Building 551 SF @$35/SF -Acc. BId. Landscaping Fencing/Screening Paving Total Estimated Direct Costs Indirect Costs Entrepreneurial Profit @0% Loan Fees
(est.) Total Estimated Indirect Costs Total Estimated Replacement Cost New Estimated Depreciation Main Building (040 x $62,361) Paving (040 x $4,375) Landscaping (.20 x $2,500) Acc.
BId. (040 x $19,285) Fencing/Screening (040 x $2,000) Depreciated ReplacEment Cost Add: Site Value Estimate by Market Comparison Total Estimated Replacement Cost After Depreciation ESTIMATED
MARKET VALUE BY COST APPROACH, Called $ 62,361 19,285 2,500 2,000 4,375
INCOME APPROACH TO VALUE As discussed previously in the Appraisal Process section, the Income Approach to Value is the result of the analysis of the projected gross income stream for
the subject property less vacancy and expenses to determine what net operating income for it can reasonably be expected. The first step in the Income Approach is determining what income
can be achieved by the property under prudent management. This section typically directs itself to deriving rent comparables from similar properties in the subject's area to determine
the stabilized gross annual income potential for it. From that gross annual income, a vacancy and collection loss factor is deducted to arrive at an effective gross income. From the
effective gross income, total estimated operating expenses for the project are deducted to arrive at a proforma net operating income. This figure is converted to a value indication through
a process known as capitalization. The subject property is currently owner occupied. The current owner was previously the tenant on this property. The improvements are utilized for a
sales/showroom office. Primary parking for the building is located within the existing right-of-way for Arapaho Road to the south of the building, and on the St. Louis & Southwestern
Railroad property to the north. On site parking is limited to parallel parking at the front (east side) of the building. Due to the lack of available parking in support of the improvements,
it is estimated that the leasing of the subject property would be limited to low traffic density uses. A survey was made cif office space in the subject area adjacent to Addison Road.
The primary criteria was Addison Road frontage and relatively small office space availability. While no buildings were found reflective of the small total size of the subject, buildings
leasing relatively small square footage office space were. Although the comparables are multi-tenant buildings with adequate parking availability, they should provide a competitive alternative
to to the subject's characteris.tics. Rents Survey data indicated that rental rates are based either on a "full-service" or modified full-service basis. In a full-service lease, all
expenses are paid by the landlord and include; water, electricity, trash service, common area maintenance (CAM), janitorial service, property taxes, and insurance. In the modified full-service
leases, the tenant is responsible for their individual electric utility expense and janitorial expenses. Full-service leases are quoted in the $18.00/SF to $20.00/SF price range, depending
on the size of the space leased. Modified full-service leases are quoted in the $15.00/SF price range. Vacancy Generally, the survey data indicates a softening of the office market in
this area. This is demonstrated by average vacancy rates in the 85% to 90% range. Noted vacancies surveyed spanned 0% to 30%. A lower than typical vacancy is estimated for the subject
-8%. The rationale for this estimate is, since the subject and the comparables are smaller buildings a relatively small number of square feet translates into a relatively high percentage
of vacancy. The subject would either be 100% occupied or 100% vacant. The Real Estate Investment Trends -Year End 2000, published by the Henry S. Miller Companies, indicates survey results
for average vacancy and collection loss at 8.7% for "small" office properties. The 8% vacancy figure is based on the presumption that there will be periods between tenants, not that
a certain number of square feet will be vacant at any given time. 24
Expenses The direct expense data derived in the survey was very uniform in all areas excepting electrical service expense. A $3.00/SF expense figure was quoted for the combined expenses
of taxes, insurance, trash service, water, and common area maintenance. Janitorial service was estimated at $0.30/SF by those properties including that service. Electrical utility expense
ranged from $3.20/SF to $3.55/SF for the full-service properties. The indirect expense data includes lease commission expenses and administrative expenses. While lease commission expenses
range from 2% to 6%, based on surveys of real estate companies specializing in this service, no lease expense will be estimated for the subject. As the subject is not reflective of a
multi-tenant building, it is presumed that the subject property owner would likely provide his own leasing effort. An administrative expense of 1􀁾􀀥 is estimated for the subject to
address the minimal bookkeeping/reporting time involved in managing the property. Market survey survey data suggests that multi-tenant properties pay management companies in the range
of 􀀲􀁾􀀥 to 6% for these services. Subject 􀁌􀁥􀁡􀁳􀁾 -Estimate Based on the survey data, a market lease estimate is developed for the subject property (1) as if it were available to
produce rental income for the property owner, or (2) for the purpose of estimating the economic value of the subject property for owner-occupancy. The income analysis theory presumes
that a prudent person considers the options between leasing business property and owning business property. There are opportunity costs involved with each, and these costs will vary
depending on how well suited a property is to the general leasing market, versus how well suited a property is to an owner-occupant. As stated previously, the modified full-service lease
rate in the subject area is ±$15.00/SF. The fullservice lease rate ranges from $18.00/SF to $20.00/SF. Deducting the $3.50/SF to $3.85/SF from the full-service lease rates results in
a range of $14.50/SF to $16.15/SF lease rate on a modified fullservice basis. Obviously, cillof the comparables are typical of conventional office space. All have adequate parking and
offer amenities not available to the subject. However, as competitive space, each has it's strengths and weaknesses, each potentially appealing to an over-lapping demand mix in the market.
The Comparable data pages and location map will be found in the Addendum. For the purpose of this analysis, the non-conforming nature of the subject improvements will not be considered.
It is presumed that a lease use compatible with the subject improvements as they currently exist is reasonable; i.e., that no change in use would be required to achieve the estimated
rental rates, as a material change in use could elevate the subject's non-conforming status to the detriment of the property. The following pro-forma operating income statement is developed
for the subject property, based on the survey data and the extrapolations made therefrom. This derivation is made for the subject property as an independent, self-sustaining unit; i.e.,
a ±924 SF primary structure situated on a ±11,363 SF site situated at the northwest corner of Addison Road and Arapaho Road (unimproved). 25
Pro-Forma Operating Income Statement 15301 Addison Road -Metro Brick Co. Potential Gross Income (924 SF @$15.00/SF) Less Vacancy & Collection Loss @8% Effective Gross Income Estimate
Less Expenses: Admin./Mgt. @1Y2% Leasing Commission (self marketed) Modified Full Service @$3.00/SF Janitorial -tenant expense Electrical (utility) -tenant expense Total Estimateci Expenses
Indicated Net Operating Income $13,860 -1.109 12,751 $ 191 -02,772 -0--0--2,963 $ 9,788 CAPITALIZAnON Several capitalization techniques are available to process income into an indication
of value. The proper capitalization technique is not determined by random selection. The appropriate technique is determined by the quality and quantity of accessible market data. As
there are not any properties similar to the subject from which to derive capitalization rates, survey data compiled at the end of 2000 was utilized for the overall rate estimate. Three
capitalization rate ranges were surveyed by the Henry S. Miller Companies and summarized in their Real Estate Investment Trends -Year End 2000 report; "going_in" rate (based on the income
at the time of purchase), "stabilized" rate (based on typical operating year at stabilized occupancy), and a "reversion"rate (rate anticipated at resale). The stabilized rates for office
properties ranged from 9.5% to 11.5%, with an average of 10.4%. As the net operating income estimate is divided by the capitalization rate to derive an estimate of market value, the
lower the capitalization rate, the higher the estimate of market value will be. Analysis supports an Ro for the subject property of 9.5%. This gives the benefit of the doubt for a strong
operating market for the subject property as an investment. Thus: Proforma NOI $9,788 + 9.5% = Indicated Value $103,032 The estimated market value of the subject site via the Sales Comparison
Approach is $56,815. The capitalized value estimate for the whole property "as improved" is $103,032. These results indicate that the improvements to the subject site have a contributory
value of $46,217. Improvements that generate the level of income displayed by the subject improvements provide for an adequate return "on" the value of the site, and a return "on" the
value of the improvements. There does not appear to be a return "of' the value of the improvements (i.e., paying back the depreciating value of the improvements over time). 26
SALES COMPARISON APPROACH TO VALUE (Improved) The Sales Comparison Approach to Value was utilized to estimate the value of the subject property as vacant, undeveloped land. Generally,
the Sales Comparison Approach to Value is considered to be the most reliable approach for valuing undeveloped land. The Sales Comparison Approach to Value was not utilized to estimate
the value of the subject property lias improved". An investigation of the Addison market did not reveal any meaningful level of very small office property sales within the previous 2%
years. Therefore, the Sales Comparison Approach to Value -Improved was not developed for the subject property. RECONCILIATION For reasons previously stated within this report, the Sales
Comparison Approach was utilized in estimating the Market Value of the subject site. The Cost Approach was developed to test the reasonableness of the conclusions derived in the Income
Approach. Generally, the Cost Approach is much better utilized in estimating the value of new or proposed improvements. It is more difficult the judge the various levels of depreciation
on improvements the age of the subject improvements. The Income Approach was developed for the subject property. The subject property improvements have small office utility in the current
market, and there is evidence that the subject improvements are capable of producing income and, hence, value as they currently exist. Typically, income producing properties are traded
on their ability to produce income. A summary of the value estimates derived for the Whole Property are as follows; Sales Comparison Approach • Land: Cost Approach: Income Approach:
Sales Comparison Approach • Improved: $ 56,815 $111,500 $103,032 N/A· The Income Approach to Value is selected as the most reliable indicator of probable market value for the subject
Whole Property. Therefore; WHOLE PROPERlY Components of Value $103,032 Main BId. Ace. BId. Landscape Fencing Paving Imp. Tot. Land Value Total $ 37,500 4,000 1,000 1,000 2.717 46,217
_56,815 $103,032 27
PART TAKEN -VALUATION This Taking is considereda Whole Property acquisition. The Part Taken is comprised of two parts; (1) a strip taking for right-of-way, and (2) a park site tract. A plat of the subject showing the Part Taken is
included in the Addendum of this report. The Right-of-Way Part Taken consists of a strip of land varying from ±21Y2' to ± 15Y2' wide, along the south side of the subject from east to
west, roughly parallel, and adjacent, to the existing unimproved Arapaho Road right-of-way; a length of roughly ±144'. The land area within the proposed R.O.W. acquisition contains ±1,657
SF of site area. The Park Site-Part Taken encompasses ±9,706 SF adjacent to the north side of the R.O.W. acquisition, and represents the balance of the subject property. Within the acquisition
area are all of the main office/sales building, secondary building, brick fencing/screening, driveway paving, and landscaping. As many of the survey markers for the proposed right-of-way
for the Arapaho Road right-of-way extension have been over-covered with brick, percentage estimates of the quantity of improvements within the proposed Arapaho Road right-of-way have
been made from the right-of-way plat provided by the Town of Addison. The balance of those improvements are situated in the park-site portion of the proposed acquisition. The depreciated
value of all of the site improvements, taken from the Final Value Estimate breakdown on Page 27 is included in the Part Taken estimate. This is a Whole Property acquisition. Therefore,
the estimated Value of the fee simple interest of the Part Taken is the same as the estimated Market Value of the Whole Property, or, Part Taken -$103,032 28
REMAINDER BEFORE THE TAKE -VALUATION In circumstances of Whole Property acquisitions, wherein the Part Taken is synonymous with the Whole Property, there is no Remainder Before the Take
to evaluate. Therefore, this analysis is not applicable to this appraisal problem. REMAINDER AFTER THE TAKE· VALUATION In circumstances of Whole Property acquisitions, wherein the Part
Taken is synonymous with the Whole Property, there is no Remainder After the Take to evaluate. Therefore, this analysis is not applicable to this appraisal problem. ESTIMATE OF JUST
COMPENSATION As the proposed acquisition represents a Whole Property acquisition, -the estimate of Just Compensation Estimate is the same as the Value of the Whole property. As damages
to real property arise out of the difference in the Value of the Remainder Before the Take and the Value of the Remainder After the Take, no real property damages are relevant in this
analysis. Therefore, the Estimate of Just Compensation is the same as the estimate of Market Value for the Whole Property, or, ESTIMATE OF JUST COMPENSATION $103,032 29
APPRAISER'S CERTIFICATE The undersigned do hereby certify that, except as otherwise noted in the appraisal report: The statements of fact contained in this report are true and correct.
The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and
conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved.
I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon
developing or 􀁲􀁥􀁰􀁯􀁾􀁴􀁩􀁮􀁧 predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or
direction in value that the cause of the client, the amount of the value opinion, the attainment of of a stipulated result, or the occurrence of a subsequent event directly related to
the intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards
of Professional Appraisal Practice. Mark A Hipes is currently certified under the Texas Appraiser Licensing and Certification board. I have made a personal inspection of the property
that is the subject of this report. No one other than signors provided significant professional assistance in the preparation of this report. The appraisal assignment was not based on
a requested minimum valuation, a specific valuation, or approval of a loan. 􀁾􀁢􀀮􀀲􀀭􀀬􀀻􀁾 􀁲􀁾􀁃􀀾 Texas Certification No. TX-1321416-G 30
ADDENDUM Comparable Rental Data Assumptions & Limiting Conditions Photographs of the Subject Survey Legal Description FAA Exhibits Zoning Map Qualifications of Mark A Hipes
Comparable #1 Location: Building Type: Construction: Age/Condition: Parking: Rentable Area: Current Occupancy: Quoted Lease Rate: Terms of Lease: Length of Leases: Estimated Expenses:
Comments: Survey Information: Mapsco #: Survey Date: 4801 Arapaho Rd. (NE/c Arapaho/Addison), Addison, TX 3 story, office Brick Veneer, 1900's style design ± 15 yrs., since remodeling;
excellent condition Concrete paved surface parking, excel. cond., adequate # 10,000 SF 71% $15.00/SF Modified Full Service; tenant pays electrical & janitorial 3 years, negotiable $3.00/SF,
exclusive of electric & janitorial This property is across Addison Road from the subject. It has one lease space available equaling 2,900 SF. Owner/manager felt like his rates were on
the low side of the market, and also that the office market is somewhat soft at the present time. Owner/manager 469.644.0002 D-14C 05/01
Comparable #2 Location: Building Type: Construction: Age/Condition: Parking: Rentable Area: Current Occupancy: Quoted Lease Rate: Terms of Lease: Length of Leases: Estimated Expenses:
Comments: Survey Information: Mapsco #: Survey Date: 16051 Addison Road (SE/c AddisonlKeller Springs), Addison, TX 3 story, office Brick Veneer, elevated, modern ± 15 yrs., excellent
condition Concrete paved surface parking (covered), excel. cond., adequate # 40,515 SF 88% $18.00 -$19.50 per square foot Full Service; attempting to change to + electrical 3 years,
negotiable $6.50/SF This property is on the west side of Addison Road, adjacent to the airport. It currently has space available ranging from 300 SF to 2,756 SF. This is the Concourse
Plaza building. Owner/manager feels that the market is somewhat soft at the present time. Owner/manager 972.934.8414 D-4U 05/01
􀀧􀁾􀁾􀀮􀀧􀀢􀀧􀀧􀀮􀀧􀀧􀀧 􀀮􀁾􀁰 Comparable #3 Location: Building Type: Construction: Age/Condition: Parking: Rentable Area: Current Occupancy: Quoted Lease Rate: Terms of Lease: Length
of Leases: Estimated Expenses: Comments: Survey Information: Mapsco #: Survey Date: 16300 Addison Road, Addison, TX 3 story, office Brick Veneer ±3 yrs., excellent condition Concrete
paved surface parking, excel. cond., adequate # 11,848 SF 100%; 2,313 SF available for sub-lease $20.00/SF Full Service 3 years, negotiable $6.84/SF This property an interior location
on the east side of Addison Road, about Y2 block north of Keller Springs (non-airport side). This is a more casual style building with a covered walk around the perimeter of the building.
Manager indicates that their properties in the area suggest an 85% to 90% occupancy rate in the area; a somewhat soft market. Leasing Agent 972.250.3902 D-4U 05/01
[COMPARABLE MAP]
ASSUMPTIONS AND LIMITING CONDITIONS (Read Carefully) The following assumptions and limiting conditions are attached to and are made a part of this Appraisal (the "Appraisal") of the
subject property (the "Property") described in this Appraisal ("Appraisal") made by Hipes & Associates (the "Appraiser") at the request of the person or entity (the Beneficiary") to
whom and for whose exclusive use this Appraisal was prepared and delivered; and, this Appraisal is made by the Appraiser and accepted by the Beneficiary subject and strictly according
to the within assumptions and limiting conditions: 1. That legal and equitable title to the Property is good and merchantable and that title is held by the owner ("Owner") of the Property
in fee simple absolute forever, unless otherwise agreed by the Appraiser in writing. (No responsibility is assumed for matters legal or chance, nor is any opinion rendered as to the
title to the Property. The possible existence of any disputes, suits, assessments, claims, liens or encumbrances has been disregarded, and the Property is appraised as though free and
clear.) 2. That no survey of the Property has been made by the Appraiser and no responsibility is 􀁡􀁾􀁳􀁵􀁭􀁥􀁤 in connection with any matters that may be disclosed by a current perfect
survey of the Property. (Dimensions and areas of the Property and comparables were obtained by various means including estimate and are not represented or guaranteed to be exact.) 3.
That allocations of value between land and improvements are applied only under the current program of occupancy and utilization, and are not made or intended to be used in conjunction
with any other appraisal and, if so used, are invalid. 4. That all information contained in this Appraisal is private and confidential and is submitted strictly for the sole use of the
Beneficiary; and, no other person or entity is entitled to read, use or rely upon the contents thereof. (Possession of the Appraisal or any copy thereof, does not carry with it the right
of publication or or use. The Appraiser will not be required to give any testimony or appear in any court or other proceeding by reason of making or delivering the Appraisal without
the prior written approval of the Appraiser.) 5. That all information and comments pertaining to the Property and other properties is the personal opinion of the Appraiser formed after
examination and study of the Property and its surroundings; and, although it is believed that the information, estimates and analyses contained herein are correct, the Appraiser does
not warrant or guarantee them, and assumes no liability for errors in fact, analysis or judgement. (Any'misinformation about the Property furnished to the Appraiser by the Beneficiary,
at the option of the Appraiser, may release the Appraiser from any liability and invalidate the Appraisal.) 6. That all opinions of value contained in the Appraisal are merely estimates.
(There is no warranty or guarantee, written or implied, made by the Appraiser that the Property is worth or will sell for the appraised value now or ever.) 7. That disclosure of the
contents of this Appraisal is governed by the Uniform Standards of Professional Appraisal Practice, and that, in addition, neither all nor any part of the contents of this Appraisal
(especially any conclusions of value, the identity of the Appraiser, shall be disseminated to the public through reports, proposals, brochures or any other means of
communication without the prior written consent and approval of the Appraiser. BENEFICIARY WILL NOT CAUSE, SUFFER OR PERMIT ANY PUBLIC DISSEMINATION OF TIllS APPRAISAL TO OCCUR AND,
BY ACCEPTING TIllS APPRAISAL, BENEFICIARY INDEMNIFIES APPRAISER AGAINST ANY LOSS, COST, LIABILITY, DAMAGE OR CLAIM INCURRED WITIlOUT REGARD TO FAULT BY APPRAISER ARISING IN CONNECTION
WITIl ANY SUCH UNAUTIlORIZED DISCLOSURE BY BENEFICIARY. 8. That there are no latent defects or any hidden or any unapparent conditions of the Property, subsoil, or structures which would
render the Property more or less valuable. (No responsibility is accepted or assumed by Appraiser for any such conditions or for analyses or engineering which may be required to discover
them.) 9. That no environmental impact or environmental condition studies were either requested or made in conjunction with this Appraisal unless otherwise agreed by Appraiser in writing
and shown in the Appraisal and the Appraiser hereby reserves the right to alter, amend, revise or rescind any of the value opinions included in this Appraisal based upon any subsequent
environmental impact or environmental condition studies, research, revelation or investigation. (In particular, unless otherwise agreed by Appraiser in writing, and shown in this Appraisal,
this Appraisal/Appraiser assumes that no violations of any environmental, or other, laws affecting the Property are pending or threatened against the Property and that no toxic waste,
hazardous materials or dangerous substances have ever been stored, used, produced, maintained, dumped or located on or about the Property.) 10. That the value of the Property is estimated
on the basis that there will be no international or domestic political, economic, or other adverse conditions or any military or other conflicts including strikes and civil disorders
that will seriously affect overall real estate values. 11. That Beneficiary understands that the real estate values are influenced by a large number of external factors, that the data
contained in the Appraisal is all of the data that Appraiser considered necessary to support the value estimate and that the Appraiser has not knowingly withheld any pertinent facts;
and, Beneficiary has been advised and agrees that the Appraisal does not warrant, represent or guarantee that Appraiser has knowledge or appreciation of all factors which might influence
the value of the Property. 12. That due to the rapid changes in external factors affecting the value of the Property, Appraiser's value conclusions are considered reliable only as of
the date of the Appraisal. 13. That on all appraisals made subject to satisfactory construction, repairs, or alterations of improvements, the Appraisal and value conclusions are contingent
upon completion of such work on the improvements in a good and workmanlike manner, without dispute, per plans, in code, as agreed and within a reasonable period of time. 14. That the
value estimate of the Property assumes financially and otherwise responsible ownership and competent management of the Property. 15. That the Appraisal consists of trade secrets and
commercial or financial information which is privileged and confidential and exempted from disclosure under 5 U.S.c. 533 (b) (4). (Please notify Hipes and Associates of any request for
any reproductions of this Appraisal.)
16. That accurate estimates of costs to cure deferred maintenance are difficult to make or assess and that many different approaches or arrangements can be attempted or applied in various
ways. (Any estimates provided within this Appraisal represent reasonably probably costs given current market conditions, available information and the Appraiser's expertise. Further
deferred maintenance affecting the Property is considered to be limited to only those items, if any specified in detail, in the Property section of this Appraisal. 17. That the existence
of potentially hazardous materials used in the construction or maintenance of the Property such as urea-formaldehyde foam insulation, asbestos in any form, and/or other dangerous substances
or materials on the Property, has not been considered, unless otherwise shown in the Appraisal. (The Appraiser is not qualified to detect such material or substances and it is the responsibility
of the Beneficiary to retain an expert in this field, if desired.) 18. That the liability of the Appraiser and its officer, directors and employees, agents, attorneys and shareholders
is limited to the fee collected for preparation of the Appraisal. (Appraiser has no accountability or liability to any third party, except as otherwise agreed in writing by Appraiser
and such other party.) 19. That any projected potential gross income of the Property referred to in the Appraisal may be based on lease summaries provided by the Beneficiary, Owner or
third parties and Appraiser has not reviewed lease documents and assumes no responsibility for the authenticity, accuracy or completeness of lease information provided by others. (Appraiser
suggests that legal advice be obtained regarding the interpretation of the lease provisions and contractual rights of parties under Leases.) 20. That Beneficiary and any party entitled
to read this report will consider the Appraisal as only one factor together with many others including its own independent investment considera.tions and underwriting criteria or other
observations, concerns or parameters in formulating its overall investment or operating decision. In particular, Appraiser assumes that the Beneficiary has made/obtained, relied upon
and approved the following, none of which was furnished by Appraiser unless otherwise agreed by Appraiser in writing, to wit: a. current survey of the Property showing boundary, roads,
flood plains, utilities, encroachments, easements, etc.; b. current title report of the Property with legible copies of all exceptions to title; c. any needed soil tests, engineer's
reports and legal and other expert opinions; d. abstract or other report of environmental conditions or hazards affection the Property; e. current visual inspection of the Property and
adequate study of its use, occupancy, history, condition and fitness for the purpose of underlying Beneficiary's request for this Appraisal; f. copies of current insurance policy, tax
statements, contracts, leases and notices affecting the Property; g. any needed estoppel certificates of tenants, mortgagee's or others claiming any interest in the Property; h. reports/opinions
of Beneficiary's staff, contacts, agents and associates; and 1. Owner's experience with the Property. 21. That Appraiser's projections of income and expenses are not predictions of the
future; rather, they are the Appraiser's best estimates of current market thinking about future income and expenses. (The Appraiser makes no warranty or guaranty that Appraiser's projections
will
succeed or materialize. The real estate market is constantly fluctuating and changing. It is not the Appraiser's task to predict or in any way forecast the conditions of a future real
estate market; the Appraiser can only reflect, without warranty what the investment community, as of the date of the Appraisal, envisions for a particular time without assurances in
terms of rental rates, expenses, capital, labor, supply, demand, ecology, etc.) 22. The Americans with Disabilities Act ("ADA") became effective January 26,1992. I (we) have not made
a specific compliance survey and analysis of this Property to determine whether or not it is in conformity with the various detailed requirements of the ADA It is possible that a compliance
survey of the Property, together with a detailed analysis of the requirements of the ADA, could reveal that the Property is not in compliance with one or more of the requirements of
the Act. If so, this fact could have a negative effect upon the value of the property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider possible non-compliance
with the requirements of ADA in estimating the value of the Property. Special Note: This may not be adequate if "readily achievable" barrier removal items are obvious and should have
been identified.
SUBJECT PHOTOGRAPHS View of proposed R.O.W., looking west-northwest from Addison Rd. View along the south side of the property showing acquisition width.
SUBJECT PHOTOGRAPHS View from the railroad northeast of the subject looking SW; trucks on RR property. View of the back of the property, looking from the ±southwest toward Addison Rd.
SUBJECT PHOTOGRAPHS View of the northwest side of the subject, looking southeast toward Addison Rd. View of the north side of subject office; subject begins past the drainage ditch.
SUBJECT PHOTOGRAPHS View north along Addison Road from the subject property. View south along Addison Road from the subject property.
SUBJECT PHOTOGRAPHS View west along Arapaho Road from the subject property. View east along Arapaho Road from the subject property.
19.93' DIST CAUED CHORD 9.48' 24.01' 43.76' 21.64' 19.93' N 40"27'38" E -15.S9' S 84'S8'25" W -123.S9' N 86"28'18" E -109.S4' CAUED 548'17" N89'39" UNE TABLE CURVE TABLE + 730.00' 1123.74'
RADIUS ILENGTH 714.00' I lS.S9' 890.00' 1109.61' GRAPHIC SCALE 1 INCH == 50 FT, PARCEL 1 A PLAT OF A 0.0380 ACRE (1,657 SQ. FT.) TRACT OF LAND IN THE EDWARD COOK SURVEY ASS TRACT NO.
326 TOWN OF ADDISON DALLAS COUNTY, TE XAS 50 0 25 50 100 􀁾􀁾􀀭􀀧 !! ! 􀀭􀁾 EAST BEARING S 00'18'13" E N 44'5S'56" E S 89'49'45" W DELTA 9'42'42" 7"03'24" 1'15'OS" L1 'S 44'45'45" W
L3 L2 C1 L4 C2 LS C3 UNE CURVE 􀁾􀁓 g. :'::1.:.. .-9-􀁾 .PK DENOTES A SET "PK" NAIL • DENOTES A FOUND POINT AS INDICATED • DENOTES A S/8" IRON ROD SET UNLESS OTHERWISE NOTEO ---PROPOSED
RIGHT OF WAY UNE u 􀁾􀁩 􀁾􀂫 U)1:1 􀁾􀁾C 5;;.t. ... 􀁾􀀱􀀮 o NOTES: ALL EASEMENTS SHOWN ARE TAKEN FROM THE PLATS INDICATED HEREON. THE SURVEYOR DID NOT ABSTRACT THE SUBJECT PROPERTY
SO ALL EASEMENTS MAY NOT 8E SHOWN. ALL BEARINGS ARE REFERENCED TO THE NORTH RIGHT OF WAY UNE OF CENTURION WAY, CALLED S 89'51'SS" E, ACCORDING TO THE FINAL PLAT OF LOT 3, SURVEYOR ADDITION.
RECORDED IN VOL 77173, PAGE 13S. O.R.D.C.T. A LEGAL DESCRIPTION OF EVEN SURVEY DATE HEREWITH ACCOMPANIES THIS PLAT. EXHISIT "s'j"1"() .-"--;;"/" /' :: ">-:;'1' ..::..-...-' 􀀧􀀧􀀧􀀱􀁉􀀧􀁾􀀧􀁉􀁦
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Parcel 1 Field Note Description Arapaho Road Project Town of Addison Dallas County, Texas BEING a description of a 0.0380 acre (1,657 square foot) tract of land situated in the Edward
Cook Survey, Abstract Number 326, Town of Addison, Dallas County, Texas, being a portion of that certain tract of land conveyed to Metro Brick Company, Inc. on September 11, 1996 and
recorded in Volume 96180, Page 02908 of the Deed Records of Dallas County, Texas, said tract being all of Lot 3, Block 1 of Addison Car Care, an addition to the Town of Addison as evidenced
by the map recorded on June 8, 1987 and recorded in Volume 87111, Page 0286 of said Deed Records; said 0.038 acre tract of land being more particularly described by metes and bounds
as follows; BEGINNING at a point at the North end of a cut back corner located at the Northwest intersection of Addison Road (variable width) as dedicated by said plat of Addison Car
Care with Arapho Road (60 feet wide) as dedicated by said plat of Addison Car Care, said point also being the most Easterly Southeast corners of said Lot 3 and said Metro Brick Company,
Inc. tract, from said point an "X" in concrete found bears North 44°45'45" West, a distance of 4.24 feet; THENCE, SOUTH 44°45'45" WEST (called SOUTH 48°17' WEST), along said cut back
corner and the Southeast line of said Metro Brick Company, Inc. tract, a distance of 24.01 feet to an "X" in concrete found in the common existing North right of way line of said Arapaho
Road and South line of said Metro Brick Company, Inc. tract, for the most Southerly Southeast corner of said Metro Brick Company, Inc. tract; THENCE, SOUTH 89°49'45" WEST said common
line, a distance for the beginning of a tangent (called NORTH 89°39' WEST), along of 19.93 feet to a "PK" nail set curve to the left; Page 1 of 3
PARCEL 1 -ARAPAHO ROAD PROJECT THENCE, WESTERLY, continuing along said common line and along the arc of said curve to the left having a radius of 730.00 feet, a central angle of 9°42'42
H , a chord bearing South 84°58'25 H West for 123.59 feet, for an arc distance of 123.74 feet (called 123.82 feet) to a point in a curve of the Southeasterly line of a called 3 & 48/100
acre tract of land conveyed to St. Louis Southwestern Railway Company of Texas .on January 15, 1902 as evidenced by the deed recorded in Volume 278, Page 115 of said Deed Records, said
point being the common Southwest corner of said Metro Brick Co. Inc. tract and the Northwest corner of the dedication of said Arapaho Road by said plat of Addison Car Care; THENCE, NORTHEASTERLY,
departing said common line, along the common Northwesterly line of said Metro Brick Company, Inc. tract and Southeasterly line of said called 3 & 48/100 acre tract, along the arc of
a non-tangent curve to the right having a radius of 714.00 feet (called 713.94 feet), a a central angle of 1°15'05 H , a chord bearing North 40 027'38 H East for 15.59 feet, for an arc
distance of 15.59 feet to a 5/8 inch iron rod set in a curve of the proposed North right of way line of Arapaho Road; THENCE, along the proposed North right of way line of Arapaho Road
the following courses and distances; EASTERLY, departing said common line, along the arc ofa non-tangent curve to the right having a radius of· 890.00 feet, a central angle of 7°03'24
H , a chord bearing North 86°28'18 H East for 109.54 feet, for an arc distance of 109.61 feet to a "PKH nail set for the point of tangency of said curve; EAST, a distance of 9.48 feet
to a "PKH nail set for an angle point; NORTH 44°55'56H EAST, iron rod set in the Company, Inc. tract Addison Road; a distance of 43.76 feet to a 5/8 inch common East line of said Metro
Brick and West right of way line of said THENCE, SOUTH 00018'13 H EAST, departing the proposed North right of way line of said Arapaho Road, along said common line, a distance of 21.64
feet to the POINT OF BEGINNING; CONTAINING an area of 0.0380 acres or 1,657 square feet of land within the metes recited. Page 2 of 3
PARCEL 1 -ARAPAHO ROAD PROJECT All bearings are referenced to the North Right of Way line of Centurion Way, called S 89°51'55" E, according to the final plat of Lot 3, Surveyor Addition,
recorded in Vol. 77173, Page 135, Deed Records of Dallas County, Texas. A plat of description. even survey . date herewith accompanies this I, Ayub R. Sandhu, a Registered Professional
Land Surveyor, hereby certify that the legal description hereon and the accompanying plat represent an actual survey made on the ground under my supervision. 􀁾􀁾􀀭􀁉􀀯􀀭􀁁􀀺􀀡􀀭 A ub
R. Sandhu, R.P.L.S. Texas Registration No. 2910 Page 3 of 3
DO NOT REMOVE CARBONS o􀁵􀁳􀀮􀁾 ___ ---1. 01 NOTICE OF PROPOSED CONSTRUCTION OR ALTERATION I'onnA__OMBNa. 􀁚􀁬􀁾􀀧 ---􀁬􀁟􀁾""""T=-_=-o-..".,-.._-.--rL ... u.c.aon of StrucIUn .... 5.
H lenclE....don 1__....-10«) C, HI"'" 01 ftNresl'ltpOl"l. hehPCJft.ftlQhll).J'__ . A. Elevataon of lite abow "*" ........ Of ..plllnebue (2) OitKtlOl"l from ItrucM.lo ..rporI C. 0#tt'I1I
'*Vht􀁾n-.n ....... fA • B) D. o.criptl(N"l 0' 􀀱􀁏􀁃􀀮􀁴􀀱􀁾at""l WI'" 􀁾􀀱􀀱􀀰 hlghw.ys, Ilrwta.llfports. promintfll '."..n ""ures.'''1S11nQ structures. etc. Attach. u.S. GeoIogICIII
Survey quadrangItJ tNp Of 􀁾tI'Iowing ttw ,...liot'lsht:p 01 CClnItruchon lltela ..-,..airpor'l(a), (i' '"'ClIN IINU 4 􀁾􀁥􀁤􀀮 CCWtllt»l.M on. 'epM.r.1hNt 01P.-Mtd.nKlt kJ fhiI nora.)
N""o""t.1,.I"rlt'eIOQCIIted b)I Pan 77 "',hel1c1w.,A'II.tlOll R-r/UI.flOlff( 14 C.F.R. p.rf n} putJuallllOS«11On HOI of,,-f«Iet.J A"••tI()l'tAcrot 1964. &s1INnd«1(4Q1l$.C. frOr J. 􀁾andwil""tIyWOl.,.
the NOlal'Iqult...."ts 01 Part n .."'btIC'10 .t".,,(CT,mlfl.'twI.1ry} 01not mota mota r"." $500 􀀢􀀢􀀬􀁾 I,rsloNwrN -'H1ftOt".". lNn sz.Gm lot' 􀁾􀀮􀀬􀀮􀀮􀀬􀁾 pulStAnr to s.erIO'l902(.j ol'hI
FM*aJ"''''''1On Act 01 IQ58. as􀁾(49 U.S,C. 1472f.)J. , HEREBY CERTIFY lNIt all 01 the above .l8Iementa mllcle by me are true, comptele, and corTeCl to the beat 01 my knowIecIge. In
addition, 18gr.. to obstRlction mark anellor light the .tRlctureln _cIlInce with ..labllahecl marking .. lighting .tanclllrell " -.s'Y. ..... T_N.....mao .. _ ..... N.... ___ FAA '''''''
7411f-! ('-63) SUPERSEDES PREVIOUS EDITION FAA FORM 00 NOT REMOVE CARBONS -==
( .:. 􀁾􀀮 rt=i'\ 􀁾 .... '. 􀁾 _' __J.. '. 􀁾􀀮 􀁾 ..... '. • ZONING MAP
MARK A. HIPES Qualifications Location of Office 7557 Rambler Road, Suite 260, LB 25, Dallas, Texas 75231 Education Southern Methodist University * Bachelor of Business Administration
-Quantitative Analysis * Master of Business Administration -Finance Texas Real Estate Broker License -License No. 388907-26 Texas State Certified General Real Estate Appraiser -License
No. TX-1321416-G Appraisal Courses, Seminars American Institute of Real Estate Appraisers * Course IIa -Case Studies in Real Estate Valuation * Course lIb -Valuation Analysis & Report
Writing Society of Real Estate Appraisers * Course 101 -Principals of Real Estate Appraisal * Course 201 -Income Property Valuation * Course R2 -Report Writing Standards of Professional
Practice Various Seminars on Valuation & Litigation Experience 02/87 to Present 03/79 to 02/8'1 09/71 to 03/79 Types of Properties Appraised Hipes & Associates Independent Real Estate
Appraiser Dallas County Department of Public Works Eminent Domain Appraiser Self Employed Financial AnalysislReal Estate Analysis Regional Malls Shopping Centers Office Office/Warehouses
Service Stations Industrial/Manufacturing Apartments FarmslRanches Proposed Developments Educational Facilities Automobile Dealership; Hospitals Railroads Churches Airports All types
of commercial/industrial properties and a variety of special use properties. Extensive work in Eminent Domain & other forms of litigation valuation Qualified as an "Expert Witness" in
County, District, & Federal Courts
􀀮􀁾 ENGINEERING CONSULTING SERVICES, LTD. :::IIIaIt Geotechnical • Construction Materials • Environmental April 1, 2003 Mr. Luke Jalbert Town of Addison 16801 􀁗􀁾􀁳􀁴􀁧􀁲􀁯􀁶􀁥 Drive
P.O. Box 9010 Addison, Texas 75001-9010 RE: Proposal for Phase I ESA and Pre-Demolition Asbestos Survey Metro Brick Company, Inc. 15130 Addison Road Addison, Texas ECS Proposal No. 19-03-994
Dear Mr. Jalbert, Based on your verbal request, Engineering Consulting Services, Ltd. (ECS) appreciates the opportunity to submit this proposal to perform a Phase I Environmental Site
Assessment (ESA) and Pre-Demolition Asbestos Survey at the above-referenced property (site). We understand the site to consist of a single-story brick veneer, 1,400 ft2 structure situated
on an approximate 0.26 acre tract of land. ECS will only survey this building identified as 'planned for demolition' for asbestos-eontaining materials (ACM). Our ESA will be prepared
in general accordance with the ASTM E1527-00, Standard Practice for Phase I Environmental Site Assessments for COlIlIJlercial Real Estate. Our Pre-Demolition Asbestos Survey will be
conducted to satisfy the requirements of 40 CFR 61, Subpart M, National Standards for Hazardous Air Pollutants (NESHAP), which require that a building be thoroughly inspected for the
presence of asbestos-eontaining materials prior to demolition or renovation. Detailed below is the proposed scope of work and cost estimate for these tasks. . SCOPE OF WORK PhaseIESA
In general, the objective of the proposed ESA is to provide sufficient information regarding the environmental integrity of the site for a pending real estate transaction. As part of
the ESA, ECS will provide the following: 1) An evaluation and estimation of the potential that the property under investigation may contain, or be adversely impacted from, substantial
levels of contaminants in the soil, surface water, and/or groundwater from activities either on the subject site or from nearby off-site sources. 2) The report will address the findings
of the ESA investigation. The report will include, at a minimum, the following topics: 4950 Keller Springs Road, Suite 480, Addison, TX 75001 • (972) 392-3222 • FAX (972) 392-0102 •
www.ecslimited.com Aberdeen. MD* . Atlanta. GA . Austin, TX . Baltimore. MD . Chantilly. VA . Charlotte. NC . Chicago. IL . Cornelia. GA* . Dallas. TX Danville. VA . Frederick. MD .
Fredericksburg. VA . Greensboro. NC . Greenville. SC . Norfolk. VA . Orlando. FL . Research Triangle Park. NC Richmond. VA . Roanoke. VA . San Antonio. TX . Williamsburg. VA . Wilmington.
NC . Winchester. VA *Testing Services Only
Metro Brick Company, Inc. ECS Proposal I9-03-994 Page 2 • site history and use; • current site conditions; • an evaluation regarding potential on-site and off-site sources of contamination;
• recommendations for additional assessment efforts, including testing and· sampling, if warranted; and, • recommendations for response actions concerning potentially hazardous materials,
if present. The proper performance of "due diligence", in respect to environmental site assessments, requires both an on-site inspection and a careful review of reasonably available
applicable local, state and federal public records. It should be noted that as part of this assessment, ECS will not collect samples at the subject property to evaluate lead-based paint
or lead in drinking water. Asbestos Survey ECS will perform a comprehensive asbestos survey of the above-identified building. The survey will be conducted by a Texas Department of Health
(TDH) licensed Asbestos Inspector or Individual Asbestos Consultant. Our scope of services will include the following: • Identify suspect ACM located within the buildings to be demolished
and/or renovated. Roofing materials will be sampled during this investigation. It should be noted that ECS will contract a roofing contractor to repair all areas that are impacted during
the roof sampling activities. • Specify the condition of the suspect ACM; • Collect bulk samples of all identified suspect materials in accordance with 40 CFR 763.86; • Submit the bulk
samples to an accredited Asbestos Laboratory for analysis utilizing the Polarized Light Microscopy method. Prepare a report of the results of the inspection detailing the results of
the survey, results of the laboratory analyses, and a condition assessment of confirmed ACMs. The report will include a drawing identifying the location of all confirmed asbestos-containing
materials on a floor plan (not to scale) of the building. ESTIMATED PROJECT COSTS The cost estimate is based on our experience evaluating sites within the area or under similar development
scenarios. We propose to complete the proposed tasks on a lump sum basis and any changes to the scope will be verbally approved prior to commencement. Included in this estimate are analytical
costs for a total of 30 samples. If additional samples are required, they will be billed at a rate of $15 per sample additional sample collection time will be billed at our hourly rate
of $65 per hour. Client approval will be obtained prior to the analysis of additional samples. Three (3) copies of the ESNAsbestos Survey report will be forwarded upon completion of
the project for the quoted price. Additional photocopies requested will be provided at a cost of $50/copy. Additional copies with color reproductions of photographs and/or figures will
be provided at a cost of $100/copy. 1. Phase I ESA 2. Pre-Demolition Asbestos Survey Total: $1,900.00 $ 950.00 $2,850,00
Metro Brick Company, Inc. ECS Proposa/19-03-994 Page 3 Our proposal does not include a provision for a 50-year chain-of-title search. As part of our study, we will need to interview
the property owner or owner's representative. If you could provide their name and telephone number it would also expedite matters. Our proposed scope of work can be initiated immediately
after we receive formal authorization to proceed, either by facsimile transmission or receipt of a hard copy of the signed letter. We anticipate that the proposed investigation for the
subject site can be completed within three weeks of authorization to proceed. This proposal assumes that we will have immediate access to all portions of the site including mechanical
rooms (if applicable). PROPOSAL ACCEPTANCE This proposal may be accepted by signing the attached Proposal Acceptance page and returning one copy to ECS prior to the commencement of work.
This will indicate acceptance of the proposal and the attached General Conditions of Service. This Proposal for Services and the General Conditions of Service shall constitute the entire
agreement between the Client and ECS. Thank you for allowing ECS to offer our services on this project. ECS approaches all projects with their client's best interest foremost and will
evaluate various solutions to each environmental issue. Please contact the undersigned if you have any questions or need additional information. Sincerely yours, ENGINEERING CONSULTING
SERVICES, LTD. Bruce A Meek, lAC., P.E. Environmental Department Manager Attachments: Proposal Acceptance Form General Conditions of Service
Metro Brick Company, Inc. ECS Proposal 19-03-994 . Page 4 PROPOSAL ACCEPTANCE Phase I ESAIPre-Demolition Asbestos Survey Metro Brick Company, Inc. 15301 Addison Road Addison, Texas Proposal
Number: 19-03-994 Environmental Services: $2.850.00 (Lump Sum) 4:(/() (03 ?' 􀁓􀁾􀁖􀂣􀁉􀁖 Z. 􀁃􀁦􀁦􀀨􀀮􀀯􀁔􀁃􀁦􀁦􀀨􀁾 Client Signature: Printed Name: TitlelFirm: Date of Acceptance:
To indicate acceptance of this proposal and to initiate work on the above-referenced project, please sign above and return one complete copy of this proposal to ECS, Ltd. The Client's
signature above indicates that he/she has the authority to bind, has read, and takes no exception to the accompanying General Conditions of Service and agrees to be bound by such General
Conditions of Service. BILLING INFORMATION (Please Print or Type)fZ'hrlLr 0 F /rP PIS°"l.---Party Responsible for Payment: S;....·....:..T"e--=--VE/iV_---=Z:...-'_---=-C--'-'#....:.._·v--'7'"_c.!..-'
'If'-1P''-''/YV'-..-Name of Contact Personffitle: Billing Address: Telephone Number: Fax Number: Client Project/Account Number Special Conditions for Invoice
• Metro Brick Company, Inc. ECS Proposal 19-03-994 ENGINEERING CONSULTING SERVICES, LTD. GENERAL CONDITIONS OF SERVICE These General Conditions of Service, including any Supplemental
Conditions of Service which are or may become appl icable to the services to be provided in the Proposal, are incorporated by reference into the foregoing Proposal and shall be part
of the Agreement under which services are to be performed by ECS for Client. For the purposes of these General Conditions, "Agreement" shall mean the Proposal, these General Conditions,
Supplemental Conditions (if any) and Fee Schedule. SECfION 1: SCOPE OF WORK a. The scope of work shall include all serVices provided by ECS, in its discretion, which are reasonably necessary
and appropriate for the effective and prompt fulfillment of ECS's obligations under the Agreement, including these General Conditions and any supplemental conditions incorporated herein;
it being expressly provided that all such services provided shall be invoiced and paid for in in accordance with Section 3 below. b. It is understood that the scope of work and time
schedule defined in the Proposal are based on the information provided by Client. If this information is incomplete or inaccurate, or if unexpected conditions are discovered, the scope
of work may change, even as the work is in progress. If the Client requests additional services or when a change in the scope of work or time schedule is necessary, a written amendment
to the Agreement shall be executed by the Client and ECS as soon as is practicable and consent to such amendments shall not be unreasonably withheld. SECfION 2: CLIENT DISCLOSURES a.
The Client shall notify ECS of any known or suspected hazardous substances which are or may be related to the services to be provided. Such hazardous substances shall include but not
be limited to any substance which poses or may pose a present or potential hazard to human health or the environment whether contained in a product, material, by-product, waste or sample
and whether whether it exists in a solid, liquid, semi-solid or gaseous form. This duty to notify ECS of any such hazardous substances shall also apply to any of the foregoing substances
which ECS may be provided or obtain or which exist or may exist on or near any premises upon which services are to be performed by employees, agents or contractors of ECS. The Client
shall notify ECS of all such hazardous substances of which it has knowledge or which it reasonably suspects exist upon entering into this Agreement. Thereafter, disclosure and notification
to ECS shall be required immediately Page 5 upon discovery of any other hazardous substances or upon discovery of increased concentrations of previously disclosed substances where the
increased concentration makes them hazardous. b. If all or any part of the scope of work is to be performed in the general vicinity of a facility or in an area where dust, fumes, gas,
noise, vibrations or other particulate or nonparticulate matter is in the atmosphere where it raises a potential health hazard or nuisance to those working in the area of such conditions,
Client shall notify ECS of such condition, potential health hazard or nuisance and thereafter ECS shall take all necessary and reasonable measures to protect its employees against such
possible health hazards or nuisances. The reasonable direct cost of such measures shall be born by the Client. SECfION 3: BILLINGS AND PAYMENTS a. Unless otherwise specifically provided
in the Proposal or Agreement, billings will be based on actual units used at the standard rates shown on the attached fee schedules, travel cost and other expenses. Such billings shall
not be limited by the estimates of total, incremental or phase project costs provided for information purposes in the Proposal. Client recognizes that time is of the essence with respect
of payment of ECS's invoices, and that timely payment is a material part of the consideration of this Agreement. Client shall pay ECS for services performed in U.S. funds drawn upon
U.S. banks and in in accordance with the rates and charges set forth herein. Invoices will be submitted by ECS from time to time, but no more frequently than every two weeks, and shall
be due and payable upon receipt. If Client objects to all or any portion of an invoice, Client shall nevertheless timely pay the full amount of such invoice and Client shall notify ECS
within fourteen (14) calendar days of the invoice date of the cause of disagreement and the portion of the invoice in dispute. Thereafter, ECS and the Client shall make good faith effort
to resolve such dispute. b. Client shall pay an additional charge of one-and-onehalf (1.5) percent (or the maximum percentage allowed by law, whichever is lower) of the invoiced amount
per month for any payment received by ECS more than thirty (30) calendar days from the date of the invoice, excepting any portion of the invoiced amount in dispute and resolved in favor
of Client. Payment thereafter shall first be applied to accrued interest and then to the principal unpaid amount. Payment of invoices is in no case subject to unilateral discounting
or set-offs by CI ient. c. Application of the percentage rate indicated above as a consequence of Client's late payments does not constitute any willingness on ECS's part to finance
Metro Brick Company, Inc. ECS Proposal 19-03-994 Client's operation, and no such willingness should be inferred. If Client fails to pay invoiced amounts within thirty (30) calendar days
of the date of the invoice, ECS may at any time, without waiving any other claim against Client and without thereby incurring any liability to Client, suspend or terminate this Agreement.
Termination shall not relieve Client of its obligation to pay amounts incurred up to termination. d. The Client's obligation to pay for the services performed under this Agreement is
in no way contingent upon Client's ability to obtain financing, zoning, approval of governmental or regulatory agencies, final adjudication of a lawsuit in which ECS is not involved,
or upon Client's successful completion of the project. No deduction shall be made from any invoice on account of penalty, liquidated damages or other sums withheld from payments to ECS.
It is agreed that all expenses incurred by ECS in enforcing the Agreement or in obtaining liens, liens, obtaining judgments or collecting any delinquent amounts due, including reasonable
attorney's fees shall be recoverable from the Client. e. The fees quoted in this contract shall remain valid for a period of twelve (12) months from the date of contract. Thereafter,
they shall be adjusted in accordance with the Average Consumer Price Index (CPI) for the last twelve (12) months. SECTION 4: RIGHT OF ENTRY a. Client hereby grants ECS and its subcontractors
or agents the right to enter from time to time property owned by Client and/or other(s) in order for ECS to fulfill the scope of services included hereunder. Client understands that
use of exploration equipment may cause some damage, the correction of which is not part of this Agreement. Client also ·understands that the discOvery of certain hazardous conditions
and/or taking preventive measures relative to these conditions may result in a reduction of the Property's value. Accordingly, Client waives any claim against ECS and its subcontractors
or agents, and agrees to defend, indemnify and hold ECS harmless from any claim or liability for injury or loss allegedly arising from procedures associated with subsurface exploration
activities or discovery of hazardous materials or suspected hazardous materials. In addition, Client agrees to compensate ECS for any time spent or expenses incurred by ECS in defense
of any such claim with compensation to be based upon ECS's prevailing fee schedule and expense reimbursement policy. SECTION 5: SAMPLES a. Soil, rock, water and/or other samples obtained
from the Project site are the property of Client. ECS shall Page 6 preserve such samples for no longer than sixty (60) calendar days after the issuance of any document that includes
the data obtained from them, unless other arrangements are mutually agreed upon in writing. Should any of these samples be contaminated by hazardous substances or suspected hazardous
substances, it is Client's responsibility to select and arrange for lawful disposal procedures, that is, procedures which encompass removing the contaminated samples from ECS's custody
and transporting them to a disposal site. Client is advised that, in all cases,. prudence and good judgment should be applied in selecting and arranging for lawful disposal procedures.
SECTION 6: REPORTS, OWNERSHIP OF DOCUMENTS a. ECS shall furnish three (3) copies of each report to Client. Additional copies shall be furnished at the rates specified in the fee schedule.
With the exception of ECS Reports to Client, all documents, including original boring logs, field data, field notes, laboratory test data, calculations and estimates are and remain the
property of ECS. Client agrees that al/reports and other work furnished to the Client not paid for in full will be returned to ECS upon demand and will not be used for design, construction,
permits or licensing. SECTION 7: STANDARD OF CARE a. Services performed by ECS under this Agreement will be conducted in a manner consistent with that level of care and skill ordinarily
exercised by members of the Engineering profession currently practicing in the same locality under similar conditions. No other representation, express or implied, and no warranty or
guarantee is included or intended in this Agreement, or in any report, opinion, document or otherwise. b. Any exploration, testing, surveys and analysis associated with the work will
be performed by ECS for the Client's sole use to fulfill the purpose of this Agreement and ECS is not responsible for interpretation by others of the information developed. The Client
recognizes that subsurface conditions beneath the Project site may vary from those encountered in borings, surveys or explorations and the information and recommendations developed by
ECS are based solely on the information available from such borings, surveys and explorations. SECTION 8: LIMITATION OF PROFESSIONAL LIABILITY a. Client agrees to limit ECS's liability
to Client arising from ECS's professional acts, errors or omissions in performing this Agreement, such that the total total aggregate liability of ECS to all those named shall not exceed
$50,000 or total fee for the services rendered on this project, whichever is greater.
" Metro Brick Company, Inc. ECS Proposal 19-03-994 b. Documents, including but not limited to, technical reports, original boring logs, field data, field notes, laboratory test data,
calculations, and estimates furnished to the Client or its agents pursuant to this Agreement are not intended or represented to be suitable for reuse by the Client or others on extensions
of the Project or on any other project. Any reuse without ECS's written consent will be at Client's sole risk and without liability to ECS or to ECS's contractor(s) and Client shall
indemnify and hold harmless ECS and ECS's contractor(s) from all claims, damages, losses and expenses including attorney's fees arising out of or resulting therefrom. SECfION 9: LIABILITY
INSURANCE a. ECS represents that it and its agents, and consultants employed by it, is and are protected by Workers Compensation insurance and that ECS has coverage under liability insurance
policies which ECS deems reasonable and adequate. ECS shall furnish certificates of insurance upon request. ECS shall not be responsible for bodily injury and property damage or losses
arising directly or indirectly, in whole or in part, from acts by the Client, its employees, agents, staff, consultants or subcontractors employed by it or by any other person or combination
of persons. The Client agrees to limit the Iiabil ity of ECS to the limits of ECS's insurance. The Client is responsible for requesting specific inclusions or limits of coverage that
are not present in ECS insurance, the cost of such inclusions or coverage increases, if available, to be at the expense of the Client. SECfION 10: ARBITRATION OF DISPUTES a. All claims,
disputes or controversies arising out of, or in relation to the interpretation, application or enforcement of this Agreement shall be decided through arbitration, as adopted and described
by the then most current rules of the American Arbitration Association. SECflON 11: TERMINATION a. Client or ECS may terminate this Agreement for breach of this Agreement, or for any
other reasons which may arise. In the event of termination, the party . effecting termination shall so notify the other party,. and termination will become effective fourteen (14) calendar
days after receipt of the termination notice. Irrespective of which party shall effect termination or the cause therefore, ECS shall promptly render to Client a final invoice and Client
shall immediately remunerate ECS for services rendered and costs incurred, in accordance with ECS's prevailing fee schedule and expense reimbursement policy. Services shall include those
rendered up to the time of termination, as well as those associated with Page 7 termination itself, such as demobilizing, modifying schedules and reassigning personnel. Upon such termination,
Client and ECS shall deliver to each other all reports and documents pertaining to services performed up to termination. SECflON 12: SEVERABILITY a. Any provision of this Agreement later
held to violate a law or regulation shall be deemed void, and all remaining provisions shall continue in force. SECflON 13: TITLES a. The titles used in this Agreement are for general
reference only and are not part of the Agreement. Parties to this Agreement are advised to read each provision and rely on the guidance of legal counsel as necessary to help assure a
complete understanding of all provisions and the obligations imposed through acceptance. SECflON 14: SURVIVAL a. All obligations arising prior to the termination ofthis Agreement and
all provisioris of this Agreement allocating responsibility or liability between the Client and ECS shall survive the completion of services and the termination of this Agreement. SECflON
15: ASSIGNS a. Neither the Client nor ECS may delegate, assign, sublet or transfer its duties, responsibilities or interests in this Agreement without the written consent of the other
party. SECflON 16: CHOICE OF LAW a. This Agreement shall be interpreted according to the laws of the State in which the Project is located (but not including its choice of law rules.
END OF GENERAL CONDmONS