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EVALUATION ASSOCIATES RIGHT OF WAY LAND RIGHTS ANALYSIS· APPRAISAL· ACQUISITION· SOLUTIONS SUMMARY OF SALIENT FACTS AND CONCLUSIONS ARAPAHO ROAD PROJECT Property Owner: 15211 Addison
Road JV Parcel Nos. 2, 2-TE IiI Valuation Conclusion: Whole Property Proposed Acquisition Remainder Before Acquisition Remainder After Acquisition Loss in Value ofRemainder After Determination
ofCompensation: Permanent Right ofWay (Land Only@$9.00/SF) Compensation for Improvements within Proposed Acquisition Area Temporary Construction Easement Compensation for Improvements
within Proposed TCE Total Compensation $705,000 $ 69,712 $635,288 $855,500 $ -0-$ 64,686 $ 5,026 $ 39,556 $ 63,934 $173,202 Date ofAppraisal: Location: Legal Description: July 21, 2002
15223 Addison Road, Town ofAddison, Texas Lot 2, Block 1, Addison Car Care Addition, Town ofAddison, Dallas County, Texas 1I Land Size: Zoning: Highest and Best Use: As ifVacant BEFORE:
As ifVacant AFTER: Whole Property (perDCAD records) Right ofway Area Temporary Construction Construction easement Parkway Easement PD (planned Development District) Commercial use Commercial
use 1.6188 Acres 0.0476 Acres 0.5045 Acres 0.1170 Acres 11615 Forest Central Drive • Suite 205 • Dallas, Texas 75243-3917 • (214) 553-1414
II! III' rII' EVALUATION ASSOCIATES RIGHT OF WAY LAND RIGHTS ANALYSIS • APPRAISAL • ACQUISITION' SOLUTIONS July 22, 2002 Mr. Steve Chutchian, P.E. Assistant City Engineer Town ofAddison
16801 Westgrove Addison, Texas 75001-9010 Re: ARAPAHO ROAD PROJECT -Parcel Nos 2, 2-TE Property Owner: 15211 Addison Road JV An appraisal ofa 0.0476 acre proposed permanent right ofway
acquisition (ROW), a 0.5045 acre proposed temporary construction easement, and a 0.117 acre parkway easement out of an approximate 1.6188 Acre tract of land situated on the southwest
corner ofAddison Road and proposed Arapaho Road (known locally as 15223 Addison Road). The parent tract is legally described as Lot 2, Block 1, Addison Car Care Addition, Town of Addison,
Dallas County, Texas Dear Mr. Chutchian: At your request, we have conducted the analysis and investigations necessary to derive the value of the whole property and proposed acquisition
areas based on the economic conditions which prevailed on the current valuation date ofJuly 21,2002. It is understood that the function ofthe appraisal, and ofthis summary ofdata and
analysis employed in that appraisal process, will be used as a basis for establishing just compensation due to the property owner concerning the intent of the Town of Addison to acquire
the referenced right of way for the widening, realignment and improvement ofArapaho Road. This appraisal was prepared in accordance with valuation principles which conform with the State
of Texas condemnation laws and subsequent legal precedents based on, but not limited to, State v Carpenter, 89 SW 2nd, 1936. Further, this report addresses appraisal guidelines of the
International Right of Way Association, the Appraisal Institute, and is classified as a limited summary report format under the Uniform Standards ofProfessional Appraisal Practice (USPAP)
promulgated by the Appraisal Foundation. The methods of valuation and reporting are also consistent with an acceptable process relevant to the nature of the whole property and the proposed
acquisition area. All herein mentioned value estimates are market oriented and based on the principle of Value in Exchange rather than Value in Use to a specified owner. These value
terms, along with other appraisal terminology, are defined in the addendum section ofthis report. 11615 Forest Central Drive • Suite 205 • Dallas, Texas 75243-3917 • (214) 553-1414
"II \I. II Mr. Steve Chutchian July 22, 2002 Owner Contact The subject property was inspected from various points of reference on several dates from June to July 2002, with the date
ofour last inspection being July 21, 2002, also the valuation date. The enclosed photographs were personally taken by the undersigned appraiser during the same time frame. Based on our
research, the subject property was purchased by the current owner in August 1996 for $528,600. The appraisers were not provided any historical or current rental and expense information
for the subject property. There are no known contracts or offers for sale on the subject whole property. Property information was obtained from public records and a physical inspection.
It is important to note that a written request was extended to the owners for pertinent property information. A copy of our request is included in the addendum of this report. The owner
made no response to our request for pertinent property information. Based on a review ofengineering design and construction plans provided by the Town ofAddison, and an inspection ofthe
subject whole property, after the acquisition the site should have the same access and superior exposure when compared with the before condition. Related analysis is described in more
detail in the Analysis and Valuation of the Proposed Acquisition Section later in this report. It will also be explained how and why there is no loss ofmarketability and utility ofthe
property after the acquisition. The appraisers have analyzed the subject property both before and after the proposed acquisition and found no diminution in value beyond the portion ofthe
property within the proposed right ofway, which is to be compensated. Subject Site Description According to investigation ofDallas County Plat Maps, field review by Evaluation Associates,
and information provided by the Town ofAddison, the subject whole property fronts 245.56 feet along the west side of Addison Road. The subject property also fronts 199.34 feet along
the south side of proposed Arapaho Road. The right ofway for this roadway was apparently dedicated in 1987 as part of the plat for the subject property. The road, however, has not been
constructed. The irregular shaped tract contains 1.6188 acres. All public utilities are available to the subject property. Topographical features includegenerally level terrain. There
are three easements located onthe subject parent tract. First at the southeast corner ofthe property, a rectangular shaped 15 foot drainage and street easement extends approximately
80 feet along the Addison Road frontage. It is adjacent to and intersects with a 10 foot wide drainage easement which extends west-east through the property. The. third easement is a
24 foot wide emergency access and utility easement which is approximately 20 feet east ofthe western property boundary and generally runs parallel to this property line. It appears none
ofthe easements presently negatively impacts the subject property and upon re-development, a land planner can design a site layout where these easements continue to exert no negative
influence on the utility of the property. There were no other noted or observed easements, encroachments or other special hazards that might effect the marketability or utility ofthe
subject parent tract. The subject site is similar to other commercial sites found within this market area. Subject Improvements Based on a review of public records and field review by
Evaluation Associates, the aforementioned subject site is improved with several buildings totaling 19,665 SF. The exterior condition of each is considered fair to poor, considering the
age and outdated design. No detailed interior inspection was made as there was no response from the owner as of the date of this report. Evaluation Associates 2
[." I, j.II II I![) Mr. Steve Chutchian July 22, 2002 personnel entered some ofthe buildings, without disclosing the proposed acquisition, to make informal inspections. No photographs
were made of the interiors. Based on limited observation, the interior is in no better nor Worse condition than the exterior. The improvements appear near the end of the physical and
economic life. It appears as though the improvements will continue to be utilized until such time as new Arapaho Road is constructed and it is feasible to raze the existing improvement
in favor ofnew, current designed commercial facilities (not necessarily an automotive repair shop). The continued occupancy of the subject improvements provides monies to pay operating
expenses (ad valorem taxes, building insurance, and the like). Any rental income generated from the subject improvements does not likely provide sufficient cash flow to fully service
any debt associated with the subject property, nor provide an adequate cash return on investment. Zoning Based on our review of the Town ofAddison Zoning Map, the subject whole property
is zoned PD, Planned Development District. The subject site is improved with cinder block buildings currently used for automotive repair purposes. It appears that the subject property
is a legal conforming use both before and after the proposed acquisition. The City requires and maintains certain building and site requirements in this district, a copy ofwhich has
been retained in the file. Highest and Best Use The highest and best use is that use which will provide the greatest net return to the owner ofthe land within applicable physical, legal
and financial market acceptance constraints. These criteria are usually considered and tested sequentially; i.e., a use may be financially feasible, but this is irrelevant ifit is physically
impossible or legally prohibited. Highest and Best Use is defined in The Appraisal ofReal Estate, 11th Edition, published by the Appraisal Institute as being: "the reasonably probable
and legal use ofvacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. " Physical factors
include physical characteristics ofthe site such as shape, size, topography, ingress and egress. The subject property encompasses 1.6188 Acres. The tract has adequate size, shape, ingress
and egress. Visibility and exposure is to Addison Road, a secondary north-south street. All utility services are available in the site. The physical influences indicate the subject site
could support a variety ofuses. The legal limits to Highest and Best Use in this case are determined by the zoning ordinance. As previously discussed, the subject property is designated
for commercial uses. Analysis of the physical and legal factors suggest that the highest and best use of the subject property is for commercial uses. All other uses are eliminated as
the legal constraints prohibit such uses. An analysis offinancial factors would include determining uses which produce a market accepted rate ofreturn based on the risks involved. The
area surrounding the subject property is developed as a variety ofuses -restaurants, professional offices, office/showroom, etc. There are few vacant tracts available for development.
Likewise, there are few vacant commercial zoned tracts ofland. 3
Mr. Steve Chutchian July 22, 2002 The highest and best use of the subject properly, as vacant, is commercial use. Highest and Best Use Conclusion The highest and best use ofthe whole
subject 􀁰􀁲􀁯􀁰􀁥􀁲􀁴􀁹􀁾 as vacant, is for a commercial use. Valuation Approach Analysis indicates that the existing industrial buildings are near the end of their physical and economic
life. That being the case, the stimulus for redevelopment is the construction of the new Arapaho Road. As noted, right-of-way for this road has previously been dedicated. That is, the
valuation approach utilized in this report does not take into consideration project influence in estimating the value of the subject whole property in the before condition. The Arapaho
Road Project has begun and will likely be completed within the next one to two years. Wherein it appears to be a short time horizon for re-development of the subject property and the
·existing improvements represent, at best an interim use, the valuation approach utilized is a discounted cash flow analysis. II! Based on information supplied and investigations made
by Evaluation Associates personnel, it appears that after the completion of the thoroughfare widening and improvement project, there should be no negative impact on the remainder resulting
from the proposed acquisition. Access and visibility should be similar both before and after the proposed acquisition. The site is not adversely affected by the proposed acquisition
and the subject property (land and improvements) is valued on a discounted cash flow basis. Additional detail and discussion in support of this conclusion can be found in the Analysis
and Valuation ofthe Proposed Acquisition Area section. Conclusion Our research has included an investigation ofmarket and neighborhood trends which are believed to influence the value
ofthe subject whole property. Specific attention and consideration was given to the value of the subject property, both before and after the proposed right of way acquisition area. Based
uponour analyses and interpretation ofthe data, the Market Value ofthe proposed acquisition area as ofJuly 21, 2002, is estimated to be: ONE HUNDRED SEVENTY THREE THOUSAND TWO HUNDRED
TWO DOLLARS ($173,202) The following narrative report sets forth a description ofthe subject property along with maps, photographs and other exhibits. The report has been prepared in
accordance with the Code of Ethics andProfessional Conduct promulgated bythe Appraisal Institute and the International Right ofWay Association. The report is subject to the Assumptions
and Limiting Conditions included in the Addendum. This report was prepared by James W. Cullar, Jr. and Richard N. Baker, both representing the firm Evaluation Associates, and deriving
the analysis and value estimate conclusion. The undersigned assumes responsibility for any required testimony. 4
I· iII ' I[[III Mr. Steve Chutchian July 22, 2002 Ifyou have any questions, please call us. Respectfully submitted, EVALUATION ASSOCIATES 5
PHOTOGRAPHS OF SUBJECT PROPERTY Facing west across Addison Road toward the subject property 6
PHOTOGRAPHS OF SUBJECT PROPERTY View of the subject property 7
APPRAISAL PROCEDURE The estimation of Market Value of a property that is being appraised is accomplished by the comparison and analysis of as many techniques as are appropriate. Three
approaches are generally used to produce value indications for improved properties while only one (the Sales Comparison Approach) is normally employed in analyzing an unimproved property
such as the subject site. COST APPROACH The value indication by this approach is accomplished by determining the Reproduction (or Replacement) Cost New ofthe improvements less accrued
depreciation from all causes to which the value of the land (estimated by comparison) is added. SALES COMPARISON APPROACH The comparison ofsimilar properties that have sold in the marketplace
is used to produce an indication of value. The comparison may either be direct or indirect by commonly accepted units or elements of comparison. INCOME APPROACH This approach to value
is applicable to properties capable ofproducing a net income stream. The net income is translated into a value indication through capitalization. The strengths and weaknesses of each
approach employed are weighed in the final analysis. The approach or approaches offering the greatest quantity and quality ofsupporting data are typically given most consideration and
the final value is then correlated. In this appraisal situation, wherein only the land valuation was required, only the Sales Comparison Approach was employed. 8
LAND VALUATION A reliable value indication for the subject land is provided by an analysis and comparison ofother tracts that have sold in the marketplace. Many factors influence the
price ofvacant land. The selected sales are analyzed with respect to real property rights conveyed, financing terms, conditions ofsale, market conditions, location and physical characteristics.
A transaction price is always predicated on the real property interest conveyed. The revenue generating potential of a property can be limited by the terms of existing leases. The purchase
price can be influenced by financing terms. Non-market financing terms must be considered to determine the cash equivalent price. Adjustments for conditions ofsale usually reflect the
motivations ofthe buyer(s) and the seller(s). Circumstances such as assemblage sales are considered in this analysis. Market conditions sometimes change over time and past sales must
be analyzed to determine the direction and velocity of change between the sale date and the appraisal date. The analysis of location includes the comparison of trade or market area,
proximity and accessibility to major thoroughfares and exposure and accessibility to traffic. The analysis of physical characteristics would include zoning, topography, frontage, depth,
shape, proximity to public utilities and other factors influencing the utility or use. 9
COMPETiTIVE LAND SALE LalJ1Hd! Salle NilD. 1 Location: Grantor: Grantee: Nls ofRealty Road, Addison Lincoln Trust Company Osteomed Corporation 14!-A Legal Description: Lot 4R, Block
1, Beltline-Marsh Business Park Addition Date of Sale: Site Data: Size: Zoning: Utilities: Frontage: Shape: Topography: Easements: Improvements: Intended Use: Consideration: Financing:
Comments: April 26, 2001 4.3625 Acres Industrial All available Along Realty Functional Level None reported detrimental None Office $1,000,000 or $S.26/SF All cash to seller Site is currently
vacant. VolumelPage: 2001082/6116 10
COMPETITIVE LAND SALE 4-P Location: Grantor: Grantee: Legal Description: E/s ofMidway Road at Commander Drive, Carrollton Maylar, LP Sixteen Thousand Five Hundred, Inc. Lots 5 and 20,
Part ofLots 4 and 21, Block A, Carroll Estates Addition; Part ofLots 4 and 5, Block B, Carroll Estates Addition 1.341 Acres Light Industrial All available Midway Road Generally rectangular
Level None reported detrimental None Office/commercial facility for King Aerospace $470,000 or $8.05/SF All cash to seller Property remains vacant as of the date of appraisal. Date of
Sale: Site Data: Size: Zoning: Utilities: Frontage: Shape: Topography: Easements: Improvements: Intended Use: Consideration: Financing: Comments: January 31, 2000 VolumelPage: 200096/2365
11
COMPETITIVE LAND SALE ].4-A Location: Grantor: Grantee: Legal Description: N/s ofBelt Line Road, 15 ft E. ofBusiness Avenue, Addison BusinesslBeltline, LP Burger King Corporation Lot
A, Block 3, Beltline Marsh Business Park 1.571 Acres Commercial All available 158 feet on Belt Line Road Functional Level None reported detrimental None Investment $785,000 or $1 1.47/SF
All cash to seller Property is improved a Burger King restaurant. Date of Sale: Site Data: Size: Zoning: Utilities: Frontage: Shape: Topography: Easements: Improvements: Intended Use:
Consideration: Financing: Comments: October 1, 1999 Volume/Page: 99192/6903 12
II
rI LAND VALUATION SUMMARY The subject property is located in Addison. The area is largely developed, thus other competing neighborhoods were researched for sales data. The following
sales are very similar to the subject whole property in many respects, however there are' some differences. Such differences make it necessary to apply adjustments to the sale properties
in order to reconcile the affect of these features on Market Value. RECAPITULATION OF SALES DATA II 1_ 123 SUBJECT 4/01 1/00 10/99 7/02 4.3625 1.341 1.571 1.6188 I LI C PD $5.26 $8.05
$11.47 lIIII> I. The above table capsulizes the data presented on the preceding pages. The chart that follows after this section, uses the sales price per square foot as a unit ofcomparison.
The sales are analyzed and compared with the subject tract for similarities and differences. The elements considered to be inferior to the subject property are adjusted upward while
the superior qualities of the competitive sales are adjusted downward. Adjustments have been based on the appraisers observations of physically and economically oriented differences
in each competitive sale. The amount of adjustment is determined by the extent to which the sale varies from the subject property. The adjustment process compensates for the difference
betweenthe competitive sale and subject and provides an indication ofvalue for the subject property. ANALYSIS AND CORRELATION The preceding summary chart displays three land sales for
comparison to the subject whole property/parent tract. A reliable value indication for the subject land is provided by an analysis and comparison to other vacant land that has recently
sold in the marketplace. This market derived sales data has been used to abstract and analyze property features that affect sales price. Rights conveyed, financing terms, conditions
of sale, location, market conditions and physical characteristics were factors considered to determine which influences price in the subject market area. 14
lIIr-Il II Land Valuation Summary (continued) Rights Conveyed The market value fee simple interestin the subject whole property is being sought in this analysis. During the sales verification
process, it was determined that there were no existing leases on any ofthe sale properties, thus indicating that fee simple interest was transferred in each transaction. Therefore, no
adjustment is applied to any ofthe sales for this factor. Financing Terms The adjustment for financing considers the effect that seller financing has on the purchase price of a property.
Below market interest rates are typically reflected in higher prices per unit. The adjustment for financing is estimated by comparing the financing terms with the terms readily available,
as ofthe sale date, from disinterested parties. All of the sales were reported as cash transactions, thus no adjustment was appropriate for financing terms. Conditions of Sale Adjustments
for conditions of sale usually reflect the motivations ofthe buyer and seller or any unusual concessions by either party to the transaction. The sales were purchased for owner use and/or
speculative investment purposes. No adjustment for this factor is applied. Market Conditions The sales occurred over an approximate two and halfyear period prior to the valuation date
(July 2002). The sales did not provide substantive evidence on which to base a time/market conditions adjustment. Location The influence oflocation is a composite ofnumerous attributes
such as access, exposure, visibility, quality and consistency of surrounding development, proximity to major roadways and location within the perceived growth pattern as evidenced by
existing and planned development. Sale No.3 fronts Beltline Road, a major traffic artery. Land uses fronting Belt Line are typically those commercial uses requiring exposure to high
traffic counts. Such uses include restaurants, retail and the like. As noted, the subject whole property fronts Addison Road. This sale location is rated slightly superior to the subject
location and a downward adjustment is applied. Located on the east side ofMidway Road, at Commander, Sale NO.2 also fronts a busy street. The Addison Airport abuts this sale onthe east.
Office/warehouse, office/showroom and industrial 15
iI·, II iI Ii i" I[..' I. I . Land Valuation Summary (continued) flex space uses are situated along the secondary streets to the west, some front Midway. This sale is positioned south
of the retail activity at the Trinity MillslMidway intersection. Overall, it is rated similar to the subject property with regard to locational attributes. Sale No.1 is located west
ofthe subject property and will front new Arapaho Road. This sale is an interior tract but lacks traffic volume which the subject location near Addison Road and Belt LineRoad generates.
Therefore, this sale is rated inferior in terms oflocational characteristics and an upward adjustment is applied. Physical Characteristics The analysis ofphysical characteristics considers
such factors as shape, depth, frontage, zoning, topography and the availability of public utility services. The shape of the subject property is generally rectangular. It has good ingress/egress,
and access to the site is considered good. The tract has adequate depth for commercial development. All ofthe sale properties comparefavorably with the subject with regard to physical
features. Size The market for real estate is comparable to that for other commodities in that price is sometimes influenced by volume (quantity or scarcity). It can generally be demonstrated
that as volume decreases, the price per unit will likely rise.. In contrast, unit price typically declines when volume increases. If all other attributes are equal the site may sell
for more on a unit basis than a larger one due to reduced holding costs and less risk. However, larger parcels which have potential for various uses, even though additional development
and an extended period prior to sale, are adaptable to larger scale intended uses and sometimes sell for a premium. Therefore, in real estate, the aspect ofquantity discounting should
not be assumed because it is not an economic principle, but rather an inconsistent market reaction. It should be supported by market transactions if available. The subject site contains
approximately 1.6188 acres. The sales range in size from 1.3 to 4.3 acres. A comparison of the sale properties supports a size adjustment. The following exhibit presents a reconciliation
ofthe adjustment process. 16
Land Valuation Summary (continued) Cash $9.18 -20% $11.47 Market Similar Similar Similar Superior -20% Fee simple 􀀺􀀺􀀺􀀺􀀺􀀡􀀺􀁭􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀁴􀀺􀁩􀁭􀁩􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀁲􀀺􀀺􀁲�
�􀀺􀀺􀀧􀁕􀀺􀀺􀁉􀀺􀀧􀀺􀀺􀀺􀁍􀁴􀁅􀁬􀁩􀁪􀁦􀁦􀁩􀁾􀁮􀁇􀁩􀀺􀁩􀁪􀁦􀁩􀁊􀀮􀁍􀁩􀁪􀁩􀁪􀁩􀁲􀁩􀁩􀁩􀁾􀁩􀀺􀀺􀁩􀁴􀀺􀀺􀀧􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀁭􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀁀􀀺􀀺􀁭􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺
􀀺􀀺􀀺􀁩􀀺􀁩􀀺􀁤􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀁳􀀮􀁩􀁩􀁩􀀺􀁩􀀶􀁾􀀺􀀺􀀺􀁩􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀁲􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀁳􀁭􀁩􀁪􀀺􀀺􀁎􀁩􀁪􀁾􀁩􀀺􀀲􀀺􀀺:􀀺􀀺􀀺􀀺􀀺􀀺􀀺􀀺::::::::siMi_1 SP/SF $5.26 $8.05
$11.47 .Rights Conveyed Fee Simple Fee simple Financing Cash Cash Conditions of Sale Market Market Market Conditions Similar Similar Adiusted Price $5.26 $8.05 I Inferior Similar I Location
+30% Physical features Similar Similar Size Inferior Similar +20% Net Adi. ·50% 0% Indicated Value $7.89 $8.05 The sale prices ranged from $5.26/SF to $11.47/SF before the analysis.
After the analysis, the adjusted values ranged between $7.89/SF and $9.18/SF. After adjustments were made to the sale properties, this approach produced a relatively ·narrow range of
indicators. In view of these indicators, the Market Value ofthe subject land is estimated to be: I: 1.6188 Acres x 43,560 SF/Ac =70,515 Rd 70,515 SF x $9.00/SF = $634,635 Rounded to:
$635,000 I. IIIl 17
Il·:·-· " IIl. l[i. IiI Discounted Cash Flow Analysis As noted in the Subject Site Description, the subject property appears to be occupied but current existing lease informationwas
not available to the appraisers. It is necessary, therefore, to estimate a market rental rate for the improvements: The subject improvements exhibit outdated design and overall property
condition is rated fair to poor. The current usage appears to be for storage and automotive repair. It is unlikely the improvements are air-conditioned, except perhaps any office space,
which is minimal. Research was conducted to identify similar rental properties to the subject. None were found. Therefore, the appraisers have utilized rental information for older office/warehouse
space found in the area. The lower end ofthe rental rate range, $3.DO/SF, was selected due to the condition ofthe subject property. The annual rental income would approximate $58,995
or $4,916/Mo (19,665 SF x $3.00/SF). There are expenses related to the subject property. These are discussed below. Management The subject property must be considered as an investment
under prudent management. A charge is made to reflect either the owner's input oftime and attention or that ofa professional agent. The management expense includes property supervision.
It is believed that a prudent owner, if performed his self or herself, would set aside specific funds to account for time and services associated with management ofthe property. Wherein
there is minimal management required for the subject property, the appraiser has estimated a monthly expense of $295 or 6% of rental mcome. Ad Valorem Taxes Dallas Central Appraisal
District (DCAD)currently values the subject property at $884,290. The assessed value has increased over the past fiveyears. The subject property is located within the taxing jurisdictions of Dallas County, Town of Addison, and the Dallas Independent School District. The chart on the following page
depicts the impact on taxes due to the combined effects ofa increasing assessed value and a changing tax rate. 18
I􀁾 III IIIIII [. Discounted Cash Flow Analysis Year Assessed Value Tax Rate per $100 Estimated Taxes 1997 $506,230 2.3511/100 $11,902 1998 $506,230 2.293604/100 $11,611 1999 $884,290
2.29829/100 $20,275 2000 $884,290 2.5603671100 . $22,641 2001 $884,290 2.6245251100 $23,208 The net effect over the past three years of a changing tax rate and a stable assessed value
is a relative stable tax burden. Therefore for purposes ofthis analysis, the appraisers have assumed the ad valorem taxes will remain unchanged.. Brokerage Commission This method ofvaluation
assumes a sale at the end ofthe project. After the acquisition, the subject site will contain 68,440 SF. The value of the remainder site is estimated to be $12.50/SF. The brokerage commission
is $51,330 ($855,500 x 6%). Insurance The structures are insured in this area and are leased on a gross basis with the owner paying building insurance (not contents). Based on interviews
with local insurance agents, the rate for a property like the subject should be approximately $0. 12/SF times 19,665 SF equals $2,360 Rd. No other expenses are projected for the subject
property. Discount Rate Periodic income and reversions are converted into present value by a general procedure called discounting which is based on the assumption that benefits received
in the future are worth less than the same benefits received today. The mechanism that compensates all types ofinvestors for foregoing present benefits (immediate use of capital) in
favor of accepting future benefits is the payment of return on the investment. This payment is called interest or yield. An inherent assumption in the discounting procedure is that the
return ofcapital will be accomplished through periodic income, the reversion, or a combination of both. 19
II rIIII Discounted Cash Flow Analysis The specific discount, or interest rate, selected to convert future income into present value is based on the level ofperceived risk ofthe investment.
Ofthese two elements, the portion attributable to timing is generally considered easier to quantify. The base rate for the timing ofthe flow is a "pure" rate, or that rate which has
no risk factor built into it. The most similar investment to one without risk is widely perceived to be government debt issues, such as Treasury Bills, Notes, and Bonds. There is some
risk in these investment vehicles, although it is minimal and these rates are the best available benchmark. Risk As previously outlined, there are numerous risks to which the receipt
ofthe cash flows are subject. Based on an inspection ofthe subject property and the immediate neighborhood, these risks appear slightly above average when compared with the typical for
real estate investments. The risks do include the tenant's ability to make the monthly lease payment. The prime rate at the nation's money center banks is reported to be 4.75% reflecting
recent efforts to stimulate a decelerating and/or stagnate economy, the rate has been decreased several times during the past year. It is unclear whether Federal Reserve policymakers
will continue to add stimulus to the economy. In addition, we contacted regional lenders to establish relevant local practices. In order to estimate the appropriate rate applicable to
the equity position, consideration is given to yields on competing investments. Bond yields are often used as a benchmark for interest risk rates on real estate 􀁩􀁮􀁶􀁥􀁾􀁴􀁭􀁥􀁮􀁴􀁳􀀮
A recent survey published by The Appraisal Institute indicated the yields listed below: Survey ofBond Yields US Treasury Bonds (1-10 Yr.) Corporate Bonds, Aaa 􀀨􀁉􀁾􀀱􀀰 Yr.) Corporate
Bonds, A-BBB/Baa(I-10 Yr.) As ofMay. 2002 5.21% 6.76% 8.03% The preceding bond survey indicated yields from 5.21% to 8.03%. The yield rate ofa real estate investment is regarded as somewhat
similar to that which securities attract. It reflects an 20
Ii\ .._-Discounted Cash Flow Analysis anticipation on the part ofpurchasers that cash flows will likely improve as lending interest rates 􀁦􀁾􀁬􀁬 or rental levels increase. As previously
discussed, the subject competitive market is primarily comprised oflocally owned, regional and national businesses who cater a variety ofservices in the area.. Therefore, an yield rate
slightly higher than the bond yields best reflects current industrial market conditions in the subject neighborhood. Considering the quantity and quality of the potential rental income
on the subject property an 10% return is appropriate. This rate is slightly above the yield ofthe high-grade corporate bonds which arejudged to have a lesser degree ofrisk compared to
the subject project. The following table displays the discounted cash flows for the subject property. This discounted cash flow analysis indicates the value ofthe subject property (land
and improvements) is $705,000 (Rounded). As previously estimated, the Sales Comparison Approach produced a value for the subject site (LAND ONLY) of $635,000. The difference between
the land value and the whole property value is the contributory value ofthe 􀁩􀁭􀁰􀁲􀁯􀁶􀁥􀁭􀁥􀁮􀁴􀁳􀁾 rI Whole Property Value Less: Land Value Contributory Value ofthe Improvements
$705,000 $635,000 $70,000 [IiI!rL: Per public records, the total square footage of the improvements is 19,665 SF or $3.56/SF ($70,000/19,665 SF = $3.56/SF Rounded). 21
I Discounted Cash Flow For 15211 Addison Road JV Aug-02 􀁓􀁥􀁰􀁾􀀰􀀲 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $4,916.00 IIil Monthly
Rental Income Expenses Mgmt Ad Valorem Taxes Insurance Total Monthly Expenses $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $23,208.00 $2,360.00 $295.00 $295.00 $295.00
$25,863.00 $295.00 $295.00 ***************************************************** I· II Net Moothly Incame Monthly Rental Income Expenses Mgmt Ad Valorem Taxes Insurance Total Monthly
Expenses Net Manthly Income $4,621.00 􀀤􀀴􀀬􀀶􀀲􀀱􀀮􀀰􀀰􀀭􀀭􀀤􀀴􀀬􀀭􀀶􀀲􀁬􀁾􀁏􀁡 􀀤􀀴􀀻􀀶􀀲􀁴􀁾􀀰􀀰 -$26;94-'H39 $4,621.00 $4,621.00 Mar-03 Apr-03 May-:03 Jun-OS Jul-03 Aug-03 Sep-03
$4,916.00 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00
$4.621.00 $4,621.00 $4,621.00 $4,621.00 $4,621.00 $4,621.00 $4,621.00 ',.,":: " ****************************************.************* Monthly Rentai Income Expenses Mgmt Ad Valorem
Taxes Insurance Total Monthly Expenses Net Monthly Income Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 􀁍􀁡􀁲􀁾􀀰􀀴 Apr-04 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $4,916.00
$295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $295.00 $23,208.00 $2,360.00 $295.00 $295.00 $25,863.00 $295.00 $295.00 $295.00 $295.00 $4,621.00 $4,621.00 -$20,947.00 $4,62LOO $4,621.00
$4,621.00 $4,621.00 Monthly Rental Income ***************************************************** May-04 Jun-04 Jul-04 Aug-04 Sep-04 $4,916.00 $4,916.00 $4,916.00 $4,916.00 $855,500.00
I. Expenses Mgmt Ad Valorem Taxes Insurance, Total Monthly Expenses Net Monthly Income Discount Rate Present Value $295.00 $295.00 $295.00 $295.00 $51,330.00 $295.00 $295.00 $295.00
$295.00 $51,330.00 $4,621.00 $4,621.00 $4,621.00 $4,621.00 $804,170.00 10.00% $705,261.59
II IIl. )IlI( . iII1I CORRELATION AND CONCLUSION The subject property is improved with several buildings which are in fair to poor condition. Considering the condition, it is difficult
to accurately estimate all forms of depreciation. In this appraisal situation, the Cost Approach was not considered applicable. Currently, the existing buildings generate rental income
but details regarding actual income and expenses was not available to the appraisers. Market data was utilized to estimate both rental income and expenses for the subject facility. The
condition of the improvements combined with the ongoing Arapaho Road project indicate the existing improvements do not represent the highest and best use. These improvements are likely
to be utilized on an interim basis. Considering the short duration for the continued use ofthe existing improvements, a discounted cash flow model was used to estimate the contributory
value of the improvements. The Income Approach to estimate value provided an indication ofvalue for both the land and improvements. The Sales Comparison Approach analyzes trends of buyers
and sellers from the analysis of competitive land sales. Rights conveyed, financing terms, conditions of sale, location, market conditions and physical characteristics were factors analyzed
to determine the influence on price in this market area. Each sale was inspected, analyzed and compared with the subject property. Adjustments were made to each to reconcile differences
in locational attributes and physical differences (size) The Sales Comparison Approach and Income Approach produced the only reliable and supportable indications ofmarket value for the
subject property. Therefore, the Market Value ofthe fee simple interest in the subject whole property (Land and Improvements), as ofJuly 21,2002, is estimated to be: SEVEN HUNDRED FIVE
THOUSAND DOLLARS $705,000 23
Il.. __ )IIParcel 2 Field Note Description Arapaho Road Project Town of Addison Dallas County, Texas BEING a description of a 0.0476 acre (2,075 square foot) tract of land situated in
the Edward Cook Survey, Abstract Number 326, Town of Addison, Dallas County, Texas, being a portion of a called 1.6188 acre tract of land conveyed to 15211 Addison Road Joint Venture
on August 7, 1996 and recorded in Volume 96156, t>age 04963 of the Deed Records of. Dallas County, Texas, said called 1.6188 a.....re tract being a '··portion of Lot 2, Block 1, of Addison
Car Care, an addition to 􀁴􀁾􀁥 Town of Addison, as . I • . --.--evidenced by the map recorded on June 8, 1987 and recorded in Volume 87111, Page 0286 of said Deed Records; said 0.0476
acre tract of land being more particularly described by metes and bounds as follows; BEGINNING at a "PK" nail set at the· North ehd of a cut back corner located at the Southwest intersection
of Addison Read (variable width) with Arapaho Road (60 feet wide) as dedicated by said plat of Addison Car Care, said nail also bej.ng the Northwest corner of a called 0.117 acre (5,112.33
square foot) tract for a 20 foot wide proposed Parkway Easement for Addison Road as evidenced by exhibit furnished by Birkhoff, Hendricks, & Conway, LLP., and signed by Gary Clinton
Hendricks, Registered Professional Land Surveyor No. 5037 on April 30, 2002; THENCE, SOUTH 00°18'13" EAST, along the West line of said called 0.117 acre tract, being 20 feet West of,
measured at a right angle, and parallel to the existing West right of way of said Addison Road, a distance of 17.78 feet to a "PK" set in the proposed South right of way line of Arapaho
Road; THENCE, along the proposed South right of way line of Arapaho Road the following courses and distances: NORTH 45°03'52" WEST, a distance of 7.79 feet to a "PK" nail set for an
angle point; WEST, a distance of 18.49 feet to a "PK" nail set for the point of beginning of a tangent curve to the 􀁬􀁾􀁦􀁴􀀻 Page 1 of 3
I[j[iI PARCEL 2 -ARAPAHO ROAD PROJECT WESTERLY, along the arc of said curve to the left having a radius of 810.00 feet, a central angle of 12°41'54", a chord bearing South 83°39'03"
West for 179.15 feet, for an arc distance of 179.52 feet to a 5/8 inch iron rod set in a curve of the cornman Northwest line of said called 1.6188 acre tract and the Southeast line of
a called 3 & 48/100 acre 􀁴􀁲􀁡􀁣􀁴􀁾􀁯􀁦 land conveyed to St. Louis Southwestern Rpilway Company of Texas on January 15, 1902 as evidenced by the deed recorded in Volume 278, Page 115
of said Deed Records; THENCE, NORTHEASTERLY, departing said proposed right of way line of Arapaho Road, along said cornman line and 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 00°43'36", a chord bearing North 32°09'20" East for 9.06 feet, for an arc distance of 9.06 feet to a 5/8 inch iron rod
set for the cornman Northwest corner of said called 1.6188 acre tract and Southwest corner of the dedication of said Arapaho Road by said plat of Addison Car Care; THENCE, EASTERLY,
departing said common line and along the cornman "North line of said called 1.6188 acre tract and existing South right of way line of said Arapaho Road, along a non-tangent curve to
the right having a radius of 670.00 feet, a central angle of 15°19'50", a chord bearing North 82°09'51" East for 178 ..74 feet, for an arc distance of 179.27 feet (called 179.44 feet)
to a "PK" nail set for the point of tangency of said curve; THENCE, NORTH 89°49' 46" EAST (called North 89°39' West), continuing along said cornman line, a distance of 20.07 feet to
the POINT OF BEGINNING; CONTAINING an area of 0.0476 acres or 2,075 square feet of land within the metes recited. Page 2 of 3
II PARCEL 2 -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. 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 plat of description. ri II -t-Page 3 of 3
'---------' ; 􀀮􀁾 " ':. .. :.. ' '" ---:s:::..--ARAPAHO ROAD .' 􀁾􀀬 "..; , 􀀺􀁾 '. : ,.: '1; , G, j 1 I !:)l ! ;' 􀁪􀁾􀀬􀀧􀁩􀁜 :)\.•􀁾􀀢􀀢􀁾 il ti :l )i) !f II !j i! :l "": 􀀺􀁲􀁾
Q<o 0::: aCJ) QQ < ! , 􀀮􀁾􀁜 j: ,I ji !\ 1, \;􀁾􀀺 '; Ii" II I Ii III 'Ii l. : , ,I . ; !; 􀁾􀀮􀀺􀀺􀀺􀀺􀀭􀀭􀀧􀀢 􀁌􀁟􀁾􀀮􀀽􀀭􀀭􀀽􀁾􀀮􀀺􀁾􀁾􀂷􀀻􀁜􀀻 􀁌􀀳􀁾 i J 􀁾 􀁾 \'11;---':;1 1 􀁾􀁾
:5 􀀺􀁾 '" .._--" '-..􀀬􀀮􀁾 .i, i ' "s"__ ARAPAHO ROAD . 􀀧􀀺􀀧􀁾􀀺􀀭􀀧􀀭􀀭􀀢􀀭􀀼􀀶􀁑􀁾􀁂􀀮􀀹􀀮􀁗􀀮􀀩 ." JUNE 8, i 1987 '.VOL 87111.:PG. 0286 ;" A,:: 􀁜􀀷􀀹􀀬􀁾􀀩􀀢 􀀨􀁃􀁾􀁕􀁦􀀮􀁏 D.R.D.C.T.
P 0 8' '. \. -',' PK' • ; ': : . 1'_"'_" 􀀭􀁭􀀬􀀭􀁣􀁾􀀭􀀧􀀭􀀢􀀭􀀧 ........ L4 PK 􀁜􀀡􀁾 'Y'PK t. 'EXHIBIT • Cl CALLED 1.6188 AC• 15211 ADDISON ROAD JOINT , I " VENlURE , .} ! 􀁉􀁲􀀧􀁾􀀧
AUGUST 7, 1996 5r3 ." A''' 􀁾 Ii" VOL 96156, PG. 04963 􀀺􀁾 􀀢􀁜􀁾 • D.R.D.C.T. G .l., i<J I LOT 2 􀁾􀁾􀁹 I BLOCK 1 (;J 􀁾 _.,_ I¥/l 1 !ADDiSON CAR CARE _ /"".,..... !3!<J \ i JUNE 8,
1987 U} 􀁾􀁾 \VpL. 87111, PG.' 0286 r! .", 􀀮􀁾 􀁾􀁴􀁩 ,I D,R.D.C.T. f 􀀬􀁾 cy,,:, i \\ PROPOSED 20' ;...􀁾. 􀀭􀁾􀁫􀀭􀀮----i -"",-n"·,,,,r, ',j PARKWAY EASEMENT (CALLED 0.117 ACRES.
5.112,335 SQ. FT.) '.:JI; ) ,,:;: ;" AS SHOWN ON EXHIBIT FROM 􀁾􀀮􀀺􀀻􀀮 /! BIRKHOFF, HENDRICKS. & CONWAY, LLP ..", i AND SIGNED BY i "; , GARY CUNTON HE NDRICKS '¢ -------R.P.L.S. 5073
DATE D APRIL 30, 2002 PARCEL 2 A PLAT OF A . 􀀭􀀻􀀢􀀬􀁾􀀮􀀢􀀢􀀧􀀢 0.0476 ACRE (2.075 SQ. FT.) 􀀱􀁾􀁾􀁾􀀻􀀻􀀧􀀺􀀱􀀨􀁓􀀺􀂷􀀮􀁾􀁾􀁾􀀧􀁾􀁾􀁾􀀮 􀁉􀁎􀀱􀁈􀁾􀀸􀁾􀁄􀀡􀁻􀁾􀁾􀁆􀁾􀁧􀁾􀁾􀀺􀀲􀁓􀀶􀁕􀁒􀁖􀁅
y 􀀯􀁾 ::.: :':': 􀀭􀀬􀀮􀀺􀀺􀀺􀁾 􀀡􀁾􀀮 TOWN OF ADDISON ·PK DENOTES A SET "PK" NAIL \fi 􀀮􀁾 vus ::'. 􀀻􀀻􀁁􀀻􀁾􀀺􀀺􀁈􀁴􀁊 0; DALLAS COUNTY. TE XAS o DENOTES A FOUND POINT AS INDICATED
􀀭􀀺􀁾􀀱 ..,..􀀺􀀮􀁾􀀮􀁩 .. 􀀢􀀻􀀮􀀬􀀺􀀻􀁾 .;::•.. Y" DENOTES A 5/8" IRON ROD SET 􀁕􀁎􀁌􀁅􀁓􀁓􀀧􀀺􀁊􀁾􀁾􀀬􀀺􀁪􀁽􀀻􀀬􀀮􀀬􀀼􀀺􀀮􀀭'? 􀁾􀀬􀂷􀀺􀀻􀀺􀀬􀀧􀁩􀀮􀀮􀂷􀁩 50 0 25 50 100 Oll-tERWISE
NOTED \'V '..'v;.....􀁾􀀧􀀾􀀺􀁾􀀮􀁳􀀮􀀮􀀬 -::,;.:...􀁾';oj""""" I' I --PROPOSED RIGHT OF WAY UNE +.􀁹􀁴􀁲􀀧􀀩􀀬􀀭􀀺􀀬􀀬􀀺􀁢􀀧􀁾􀀲􀀺􀀭􀀮􀀭􀁾􀁢 I-sw-_ I I , 􀁾􀁾􀁾.... 􀀧􀀳􀀺􀁾􀀼􀀭􀀧􀁾􀀽􀁉􀁬􀀻􀀺􀁬􀁩􀁬�
�􀀧􀀭􀀭􀁾􀁟􀀶􀁾􀀧􀀺􀀷􀀧􀀺􀀺􀀻􀀧􀀲􀀭 GRAPHIC SCALE 1 INCH = 50 FT. CHORD N 32"09'20" E -9.06' S 83"39'03" W -179.15' N 82"09'51" E -178.74' CURVE TABLE RADIUS ILENGll-t 􀀸􀀱􀀰􀀮􀀰􀀰􀁾
I 179.52 714.00' I 9.06 670.00' I 179.27 DELTA 15"19'50" 12"41'54" 00"43'36" C1 C2 C3 UNE TABLE UNE BEARING CAllE 0 DIST I CAU£O L1 S 00"18'13" E SOO'13'OO"W 17.78' L2 N 45"03'52" W
-7.79' L3 WEST -18.49' L4 N 89"49'46" E N89'39'W 20.07' CURVE NOTES: ALL EASEMENTS SHOWN ARE TAKEN FROM ll-tE PLATS INDICATED HEREON. ll-tE SURVEYOR DID NOT ABSTRACT ll-tE SUBJECT PROPERTY
SO ALL EASEMENTS MAY NOT BE SHOWN. ALL BEARINGS ARE REFERENCED TO ll-tE NORll-t RIGHT OF WAY UNE OF CENlURION WAY, CALLED S 89"51'55" E, ACCORDING TO ll-tE FINAL PLAT OF LOT 3, SURVEYOR
ADDITlON, RECORDED IN VOL 77173, PAGE 135, D.R.D.C.T. A LEGAL DESCRIPTION OF EVEN SURVEY DATE HEREWIll-t ACCOMPANIES ll-tIS PLAT. /<..􀀺􀀼􀀺􀁾􀀧􀀧􀀧􀀯􀀯􀀧􀀧􀀼􀀺􀀻􀁾􀀺􀀻􀀾 /+ '􀁾􀁾􀁾􀁾􀁾􀀧􀀭􀁾􀁾􀀺􀁀􀁯
􀁣􀀺􀀧􀁾􀁾􀀧􀁾􀁊􀁾􀁾􀀯􀀧 ,: N /,.. /.... 􀁾􀀯􀀯􀀺􀁴􀀭􀀯 ,.' .,/././.. ' .. 􀁟􀀯􀁾􀁾..J,,,/..., ................ 􀁬􀁁􀁜􀁣􀁾􀁾􀂮􀀬􀂷􀀭􀀧 .,./,-//􀀯􀁾􀀻􀀻􀀺􀀻􀀺􀀺􀀺􀀺􀀻􀀻􀀻􀀻􀀻 􀀼􀀺􀀺􀁾􀀺􀀺􀀯􀀺􀁾􀁾􀀮􀁾�
� /> 􀁾􀁏􀀮􀁯 ..... /' ............ i'· 0"o/1.\,,\0 /' //....". \. GPOS",,,-1"'!\'"./l.f-,I'U" i" .. 􀀺􀁾􀀺􀀺􀀻􀀮􀀺 //'/. /i/f'-C•.􀁾􀁒"', .' ',) -. 􀁾􀁾􀁾􀁾􀁾􀁾 c'." .,I'Q ':; 􀁓􀁏􀁕􀁾􀁾􀁾􀁦􀀧􀀭􀁓
.,,' cf'-VOu\s .lor ,taO? S\· 􀁵􀁾􀁾 c0ft.-{ 􀀧􀁾􀁇 􀀬􀀬􀁾 􀀮􀁉􀁦􀀧􀀭􀁜􀀧􀁜􀁲􀀿􀀮􀀱􀁾􀀧 􀁾􀀺􀁩􀀮 \jOY-􀀯􀁴􀀮􀁾􀂷􀁑 i I r.;:::;""··· i .
(I􀁉􀁾 I. Parcel 2-TE Field Note Description Arapaho Road Project Town of Addison Dallas County, Texas >9 BEING a description of a O. 5045 􀁡􀁣􀁲􀁾􀀬 (21,975 square foot) t:r::'<ls::t
of land situated in the Edward Cook Survey, Abstract Number 326, Town of Addison, Dallas County, Texas, being a portion of a called 1.6188 acre tract of land conveyed to 15211 Addison
Road Joint Venture on August 7, 1996 and recorded in Volume 96156, Page 04963 of the Deed Records of Dallas -County, Texas, said called 1.6188 acre tract being a portion of Lot 2, 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 0.5045 acre
tract of land being more particularly described by metes and bounds as follows; COMMENCING at a "PK" nail set at the _North end of a cut back corner located at the Southwest intersection
of Addison Road (variable width) with Arapaho Road (60 feet wide) as dedicatedby said plat of Addison Car Care, said nail also being the Northwest corner of a called 0.117 acre (5, 112.33
square foot) tract for a 20 foot wide proposed Parkway Easement for Addison Road as evidenced by exhibit furnished by Birkhoff, Hendricks, & Conway, LLP., and signed by Gary Clinton
Hendricks, Registered Professional Land Surveyor No. 5037 on April 30, 2002; THENCE, SOUTH 00°18'13" EAST, along the West line of said called 0.117 acre tract, being 20 feet West of,
measured at a right angle, and parallel to the existing West right of way of said Addison Road, a distance of 17. 78 feet to a "PK" set in the proposed South right of way line of Arapaho
Road same being the POINT OF BEGINNING; THENCE, SOUTH 00°18'13" EAST, continuing along the West line of said called 0.117 acre tract, being 20 feet West of, measured at a right angle,
and parallel to the existing West right of way of said Addison Road, a distance of 14.20 feet to the most Eastern Southeast corner of the herein described tract; Page 1 of 3
t, PARCEL 2TE -ARAPAHO ROAD PROJECT THENCE, over and aCrOSE said called ,1.6188 acre tract and said Lot 2, Block 1 the following course and distances: NORTH 45°03'52" WEST, a distance
of 14.63 feet to an ell corner of the herein described tract; SOUTH 00°38'19" EAST, a distance of 80.29 feet to an ell corner of the herein described tract; SOUTH 89°21' 41" WEST, a
distance of 18.74 feet to an ell corner of the herein described tract; SOUTH 00°38'19" EAST, a distance of 45.51 feet to the Southeast corner of the herein described tract; SOUTH 89°21'
41" WEST, along the South line of the herein described tract, a distance of 151.97 feet to the most Southerly corner of the herein described tract; NORTH 00 ° 39' 50" West, along the
West line of the herein described tract,' a distance of 111.54 feet to an ell corner of the herein described tract same being the beginning of a non tangent curve to the left; WESTERLY,
along the arc of said non tangent curve to the left having a radius of 800.00 feet, a central angle of 02°05'03", a chord bearing South 77°38'59" West for 2,9.10 feet, for an arc distance
of 29.10 feet to the Westerly Southwest corner of the herein described tract, same being in a curve of the common Northwest line of said called 1.6188 acre tract and the Southeast 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; THENCE, NORTHEASTERLY, along said common line and the arc of a non-tangent curve to the right 􀁨􀁾􀁶􀁩􀁮􀁧 a radius of 714.00 feet -e, ° r (called 713.94 feet), a
􀁣􀁥􀁮􀁴􀁾􀁡􀁬 􀁡􀁮􀁧􀁬􀁾􀀮 of 01 07'15", a chord bearing North 31 °13' 55" East for 13.9'7 feet, for an arc distar1t:e of 13.97 feet to the Northwest corner of the herein described
tract ,same being in the South line of Proposed South right of way line of Arapaho Road said corner also being the beginning of a non tangent curve to the right; Page 2 of 3
PARCEL 2TE -ARAPAHO ROAD PROJECT THENCE, continuing over and across said called 1.6188 acre tract and said Lot 2, Block 1 and along the proposed South right of way line of Arapaho Road
the following courses and distances: II: ( EASTERLY, along a non-tangent curve to the right having a radius of 810.00 feet, a central angle of 12°41'54",· a chord bearing North 83°39'03"
East for 179.15 feet, for an arc distance of 179.52 feet to a "PK" nail set for the point of tangency of said curve; I. EAST, a distance of 18.49 feet; CONTAINING an area of 0.5045 acres
or 21,975 square feet of land within the metes recited. SOUTH 45°03'52" EAST, a distance of 7.79 ·feet to the POINT OF BEGINNING; 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. -·tI..· 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. I.e lIIr[ Page 3 of 3
100 ,; J !' .;. 􀀺􀁾 " 􀀮􀀺􀀮􀁾􀀭􀀭􀀭􀀽􀀭􀀭􀀽􀀽 ARAPAHO ROAD :, 􀁜􀁾 _:, h ," ... , ;lld 􀀩􀁜􀁾 :'.,....􀀬􀀮􀁾􀀮􀀭 ", 􀁾 GRAPHIC SCALE 1 INCH = 50 FT. c<o a:: zo fI) C􀁾 􀁪􀁬􀁾􀁛􀁉􀁾􀀻􀀻􀀧
I, 􀀬􀁾􀁊 ilpROPOSED 20' PARKWAY EASEMENT (CAUED 0.117 ACRES. 5.112.335 SQ. FT.) AS SHOWN ON EXHIBIT FROM BIRKHOFF, HENDRICKS, & CONWAY, LLP AND SIGNED BY GARY CLINTON HENDRICKS R.P.L.S.
5073 DAfDIAFtlL 30, 2002 Ii j j 􀀡􀁾 'j PARCEL 2-1£ A PLAT OF A 0.5045 ACRE (21,975 SQ. FT.) TRACT OF LAND IN THE EDWARD COOK SURVEY ABSTRACT NO. 326 TOWN OF ADDISON DALLAS COUNTY, 1£XAS
o 25 50 iii" " j,.J \ ! :􀁾 ! 50 __ I J I 􀁾􀀧 . c. ..,...___ 􀀧􀀭􀀮􀀽􀀭􀀭􀀭􀀭􀀺􀀻􀁾􀀡!.􀀼􀁾􀁩 "'c", :.; i 􀁾􀀧􀀬 'j : ',g: 􀁾 ,'li " 􀁾􀁾􀀮􀀭􀀺􀀺 􀁾􀀺 ,.: iii 11 􀁣􀁾 ;;j, 􀁾􀁔􀁾􀁾
􀁾􀁴􀁾􀁩 "".-.__ 􀁁􀁒􀁁􀁐􀁁􀁈􀁾 ROAD //'f'''--c::-.---(.60' R.O.W.) ", JUNE 8,! 1987 VOL 87111" PG. 0286 , D.R.D.C.T. EXHI81T "8" ///." ,/, ..,' " ,/' /.... rl'􀁾􀀯 CAUED 1.6188 AC.
; 􀀻􀀼􀁾 15211 ADDISON ROAD JOINT -7 . t i j 􀀲􀀻􀁾 VENTURE 􀁾 Iv-' ",' "/" : i ," AUGUST 7, 1996 :;; 101. C1 I;{ ;; VOL 96156, PG. 04963 -􀁾􀁾􀁉 /'I' I D.R.D.C.T. Ib:i1 􀁾 ' 1° ii'
/<.... L; VI 􀀮􀀻􀁊􀀱􀁩􀀢􀀢􀁾􀀧􀀧􀀧􀀧􀀧􀀥􀀧􀀧􀀻􀀧􀀧􀁾􀁴􀀤 􀁧􀁾􀀮􀀡 LOT 2 I ,-."}.":.:,/.,/I t{(J;􀁾:j/· m'A' BLOCK 1 t"l t! ADDISON CAR CARE L4 i '. /<:j 􀁾􀁪􀁾 g""i JUNE 8, 1987 ':j
􀁾􀀬􀀮􀀮 Iff 4J z 11 VOL. 87111. PG. 0286 Ai I-t!'t : ',I D,R,D.C.T. '., .. __ 􀁾􀀮􀀾􀀭􀁊􀀭􀀩􀁟􀀢􀀭􀀢􀁾 ,c,'''''_.: :\' ,.cy 􀁾 • -'j 􀀯􀁾􀀮􀀺􀁜􀀧􀁩􀀻􀀮􀀧􀀮 /./S89'21'41·W .,:: .. 151.97'
i_/􀁾􀀯􀀭􀀭 .... :=-.... . 􀁁􀁾􀀻􀁾􀁦􀁾􀀺􀁾􀁜 ·PK DENOTES A SET "PK" NAIL 􀁜􀁾 A'IUS R. 3i':"'!CHU 􀁾 DENOTES A FOUND POINT AS INDICATED '0 ···c:.;-· ..::··.. ·-··.'.;: .. r/I • DENOTES
A 5/8" IRON ROD SET UNLESS 􀀧􀀩􀀼􀀺􀀺􀀾􀁾􀁾􀀩􀁾􀁾􀀺􀀺􀀧􀀱􀀰 􀁲􀀮􀀧􀁾􀀺􀀺􀀺􀀺􀀤 (//OTHERWISE NOTED \t:. 􀀢􀀧􀀻􀀢􀀧􀀺􀀢􀀺􀀺􀁓􀀺􀀢􀀧􀀮􀂧􀁽􀀺􀀺􀀧􀁾􀀺􀀺􀀢 ,\; ---PROPOSED RIGHT OF WAY UNE
􀀭􀀮􀁌􀀢􀀧􀁾􀁾􀁾􀁩􀁾 􀁾􀀷􀀧 􀁢􀁾􀀢􀀻􀁚􀀯􀀧􀀭􀀧􀁏 t-"7,,///7 .. '" ;' //. ..... CAillD CHORD S n'38'59" W -29.10" N 31'13'55" E -13.97' N 83'39'03" E -179.15' 􀀮􀁾 f!R0?Os'iQ..􀀺􀁾􀁒􀁾􀀿
􀁾􀁾􀁏 􀁒􀁏􀁏􀁾􀁏 "/"bO ",C." ....,' ·c. .""",._ ,.ct>:!l 210 􀁾􀀼􀀧􀁴􀁉􀁅􀀮􀁓􀁾􀁾􀁾 C"'\>QU\S 􀁳􀀹􀁕􀀩􀀧􀁴􀀧􀁜􀁾􀀧􀁦􀀭􀀢􀀧􀁓 􀁓􀁾􀀧 \.lnQ co,'9'f ,caO􀁴􀀧􀀺􀀺􀁾􀁕􀀢􀀬􀁜􀀧􀁜􀁉􀀧􀁻 ,'5.
,,'?5 ,\...._. 1'" ?G. 􀀧􀁉􀀯􀁾􀁾􀀺􀁾􀀮􀀻􀀮􀁢􀀮􀁃􀁾􀀧 .........../'. ...., .... 􀀯􀁾􀀮􀀬 \ .•.. UNE TABLE CURVE TABLE _.,." ..•. 0" '. ..... /......,::::." .•... ....􀀯􀁾 􀁾􀀧􀀭􀀭􀀮
-:., . 􀁾􀁾􀁾􀁩􀁐􀁤􀁀 􀂩􀁀􀁀􀁉􀁩􀀧􀀺􀂮􀁬􀀱􀁊􀁊􀁉􀁒􀀱􀁷􀀬􀁾􀁗 ..................-/. 􀁾.. ,/,," ,.,/' ." ,/-" ..... 􀀯􀀯􀁢􀀮􀁜􀀽􀁾􀁾􀁀􀀮􀀮 -' 􀁟􀁟􀀺􀀻􀀻􀀾􀀻􀀺􀀺􀀺􀀺􀀺􀀺􀀻􀀾􀀺􀀺􀀺􀁾􀀼􀀮􀀢...
>􀀢􀁾􀁾􀀻􀀬􀀻􀀺􀀺􀀻􀀬􀀺􀁊􀀧 RADIUS ILENGll-t 714.00' 113.97' 810.00' 179.52 800.00' I 29.10' ,-,-..... DELTA 02"05'03" 01"07'15" 12'41'54" ..,.., +/':....../-...... -,/L1 I S 00'18'13·
E I -I 17.78' C1 L3 I N 45"03'52" 'II I -I 14.63' C2 C3 L2 I S 45'03'52" E I -I 7.79' L4 I S 89'21'4"" Wi-I 18.74' UNE I BEARING I CAU.ED I DIST ALL BEARINGS ARE REFERENCED TO THE NORTH
RIGHT OF WAY UNE OF CENTURION WAY. CAUED 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. CURVE 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. .-'.... 􀀭􀀢􀁾􀀻􀀺􀀭􀀭􀀭􀁾 .... '. .... ,/I L5 I 􀁅􀁁􀁓􀁾 -I 18.49' j I L6 I S 00'i8'13" E I --14.20' -
IIr I IIl,-Irl IIi 4/30/02 TOWN OF ADDISON, TEXAS FIELD NOTE DESCRIPTION FOR 15211 ADDISON ROAD JOINT VENTURE (pARKwAY EASEMENT) BEING a tract out of a 1.619 acres of a tract of land
located in the Edward Cook Survey, Abstract No. 326, and being across Lot 2 of Block 1 in the Addison Car Care Addition, an addition to the Town of Addison, . Dallas County, Texas, conveyed
to 15211 Addison Road Joint Venture by a deed now of record in Volume 96156, Page 4963, of the Deed Records of Dallas County, Texas, said tract of land being more particularly described
as follows: BEGINNING POINT a.;ld being a found 'X' in coIicrete and said point being the southeast cpmer of said 1.619 acre tract and the northeast comer of a 0.304 acre tract C"f land
conveyed to Dyson 􀁅􀁮􀁴􀁥􀁲􀁰􀁲􀁩􀁳􀁾􀁳􀀬 LP by a deed now of record in Volume 2000034, Page 2494, of the Deed Records of Dallas County, Texiitand being in the west right-of-way line
of Addison Road, (generally a 60 foot right-of-way and generally 30 feet to the center line), line), said point also being N 00 13'00" E, 54.98 feet from a found 1/2 inch and being the
southeast comer of said 0.304 acre tract; THENCE, Due West, along the south line of said 1.619 acre tract, and along the north line of said 0.304 acre' tract for a distance of20.00 feet
to a point for comer; THENCE, N 000 13'00" E for a distance of 265.68 feet to a point for comer in the north line of said 1.619 acre tract and in the south line of a dedicated right-of-way
for Arapaho Road (generally 60 feet wide) to the Town of Addison, Dallas County, Texas; THENCE, S 440 43'21" E, along the north line of said 1.619 acre tract and along the south line
of said dedicated right-of-way for Arapaho Road, a distance of28.31 feet to a point for corner, said point being in said west right-of-way line ofAddison Road; THENCE, S 000 13'00" W
along the east line of said 1.619 acre tract and the west right-of-way line of said Addison Road, a distance of 245.56 feet to the Point of Beginning and containing 5,112.33 square feet
(0.117 acres) of land. h:lprojectsladdison\98143\esmt-doolplat-6w.doo
........... , ... SCALE:1"=60' ............. 􀁾 1/2" IRF ---SO'S1 ............. ............. 􀀭􀀭􀁾 . LOUIS &-s. ............. OU11iJ1tcS "-.. /----I-l 􀀭􀀭􀁾 7ttrtV R.tr. "'-.. "'-..
'S' UIIU1Y ""T􀁾. //-􀁉􀁾􀀮􀀼􀀾 . ..􀁾 "'-.. ""-􀁾 􀁩􀀭􀁉􀁾 " '-'-"-IJ 􀁾􀀮 . ---.//'-,'-, A0 UI c:"-rJ A. f rI I I ........................S c{o Ulh "-.. 􀀧􀁾 '" '-' l-. , " , '''r.
"-"-''-'.. "..1,... . LOT 1, BLOCK 1 I 1' , I. '"/-1, ,9 II "-.".-. 1 .... =-+. I ,.....􀀧􀁜􀁾􀁟Y!! R-... I ; 􀁾 11 '1'<... u/,. 􀁾􀁾􀁩 -1 '" 􀀬􀀮􀀮􀀮􀁾 . • 11.)1.,..,.... I 1(\1 I I
...... U /8::: 􀀱􀀱􀁾􀀬 .; i )JfV I 􀁾 I { _ v T 􀁾 ,;DYSON ENlERPRlS<S, "'. 􀁾 /I I N ROAD JOINT VENTURE\ 􀁾􀁾 􀁡􀁾 \ " VOL. 2000034-, 􀁐􀁾􀀮 124-j4-. 11 􀁾 \1 􀀱􀁾􀀲􀀱􀀱 􀁁􀁏􀁏􀁾􀁾 96156, PG. 4963 {': 􀁾􀁾 􀀬􀁾􀁾 MEJRO BRICK BLOCK 1,
La <5 I ti 1<5\ BLOCK 1, LOT 2 \ £ 􀁾 􀁾0 COMPANY, 11jC. 90 . u. 􀁾􀁯 " 0 PG .02 <:> ei I 􀁾 􀁾 􀁾􀁾 VOL 9618, '. , 􀁾􀁉 125 I 􀁾 g 􀁾􀁾 BLOCK I, LOT.3 , :> 1:»\ • <:> °8 􀁾 I I" II
􀁾 :'h\ PROPOSED 20 NT Z J' S1Rill ""T. ) I 15' STREET '&Tn I I DRAINAGE ESM .. I 􀁉s:;.\ PARKWAY EASEME . I . 􀁾 N 00'13'00' E :-_ = s-. Z 0> CX)t>:: 015 "'CD '" "" 􀁉􀁾lnf"f"i 􀀱􀀵􀀬􀁾
􀁉􀁾 􀁾􀁘􀀢􀁉􀁎 CONC. 1/2" 􀁉􀁒􀁆􀁾 , . -------. 􀁾􀀵􀀯􀀸􀀧 I.R.f. II w-' CS Vl o<DII -' 􀁾 P1JfNrOF /ADDISON ROAD TOWN OF ADDISON, TEXAS _.!3EGINNING -----􀁾 ADDISON ROAD T "5,112.33
SQ. FT. 􀁾􀁾 BELT LINE RD. TO KELLER SPRINGS RD. 􀀮􀁾 0.117 ACRES b5: 􀁐􀁁􀁁􀀮􀁾􀁁􀁙 E'ASEMENT t􀁧'! 􀀺􀁬􀁟􀁾, 􀁾 􀀮􀀮0􀀮􀁊􀁬􀀭􀁾􀁃􀁾B􀁏􀁎IR􀀺􀀺K􀀺􀁳H􀀺O􀀺􀀻F􀀻􀀬F􀀺.􀀻􀁵􀁌H􀁾􀁮E􀁎N􀀻􀀻D􀀻􀀻R􀁇􀀻I􀀧O
􀀻􀁅<􀀻S􀀧􀀻􀀧&􀁎􀁇:􀁾􀁉C􀀺􀁴O􀁾􀁅N􀁾􀀮W􀁒􀀮A􀀻􀀮Y􀁓. LLP. APR., 2002 _...Iooo..-...PLA..J_6_W_ v . o􀁾􀁾:5 ll-6 8 􀁾 !:= 􀀮􀁾 􀁾 􀁾􀁾􀀺􀁧 ::s Vl • «") 0-e::: =D 􀁾 􀁾􀁾 a.. ex; 􀁾􀁾
0 en 􀁡􀀺􀁦􀁦􀁩􀁾 􀁾 􀀼􀀳􀁾 􀁾 )g 􀀺􀀺􀀩􀁾􀀮 o CD a.. --I "" 􀁾 §; G Vl I ! l' 120' -.....-, ------N 0"13'00· E -174.98' 􀁾
ANALYSIS AND VALUATION OF PROPOSED ACQmSITION AREA TheproposedArapahoRoadrightofway acquisition effectively reduces the whole properly by 2.9 %. 31 The proposed parkway easement acquisition
reduces thewholeproperly by 7.2 %. II' rIIl. IIrIII· IIIII The Proposed Arapaho Road Acquisition According to the attached surveyor's field notes, the proposed acquisition area contains
0.0476 acres (2,075 SF) for the widening and reconstruction ofArapaho Road. The location, dimensions and shape ofthe proposed acquisition area are shown on the AcquisitionMap exhibit
page(s). The proposed acquisition area is rectangular in shape and is located adjacent to the northern portion of the subject parent tract. This acquisition will reduce the size of the
subject parent tract by approximately 2.9%. A portion of the proposed acquisition area overlays the previously mentioned 24 foot emergency and utility easement. The Town ofAddison seeks
fee simple rights in the proposed acquisition area. Presently, there are improvements in the the existing new Arapaho Road right of way. Compensation for these improvements is notestimated.
In addition, there are improvements in the proposed acquisition area which will be detailed and compensation of these improvements is estimated. The Proposed Parkway Easement Acquisition
According to the attached surveyor's field notes, the proposed acquisition area contains 0.117 acres (5,112.33 SF) for the widening and reconstruction ofAddison Road. The location, dimensions
and shape of the proposed acquisition area are shown on the Acquisition Map exhibit page(s). The proposed acquisition area is generally rectangular in shape and is located adjacent to
the western property boundary ofthe subject parent tract. It is our understanding that this acquisition area will be utilized for the relocation ofutilities, installation and maintenance
of a sidewalk. The easement area will be landscaped and improved with vegetation, concrete pavers, street lights and sidewalks. This acquisition will reduce the size ofthe subject parent
tract by approximately 7.2%. A portion of the proposed easement acquisition area overlays a 15 foot street and drainage easement, and a 10 foot drainage easement. Granting of these rights,
by the property owner, has the effect of a fee simple acquisition. The landowner effectively relinquishes all surface and subsurface rights within the proposed easement area. The rights
retained by the land owner are only reversionary interests. That
11_ Analysis and Valuation ofProposed Acquisition Area (Continued) being the case, property rights being acquired are 􀁴􀁲􀁥􀁾􀁴􀁥􀁤 as the entire fee simple 'bundle of land rights'
. Considering the Highest and Best Use ofthe proposed acquisition area, the standard sequential tests; physically possible, legally permissible, economically feasible, and maximally
productive were analyzed. Because ofthe unique size and shape characteristics ofthe proposed acquisition area it has no potential for independent utility separate from the parent tract.
Therefore, the highestand best use ofthe proposed acquisition area is as a part of the whole parent tract. Inspection ofthe subject site and review ofavailable engineering plans indicates
that the proposed acquisition route affects a portion ofa cinder block building, some fencing, and gravel drive/parking area. The land value is based on $9.00 SF which is supported by
the sales data and analysis presented on the preceding pages ofthis report. Therefore, taking all factors into consideration, the compensation for the proposed acquisitions can be calculated
as follows: Proposed Arapaho Road ROW 2,075 SF x $9.00/SF Fencing 14 feet x $3.00/SF Building Approx. 1,400 SF x $3.56/SF r Proposed Addison Road Parkway Easement i 5,112.33 SF x $9.00/SF
Total = $18,675 = $ 42 = $ 4,984 = $46,011 $69,712 Value of the Remainder Before the Acquisition The value ofthe Remainder Before the Acquisition is simply the mathematical difference
between the value ofthe whole property less the value ofthe Proposed Acquisition Area. Therefore, the value of the Remainder Before the Acquisition can be calculated as follows: IIWhole
Property Value Less: Value ofProposed Acquisition Area Value ofthe Remainder Before the Acquisition $705,000 $ 69,712 $635,288 Value of the Remainder After the Acquisition As noted,
the proposed acquisition area will be used for the widening and realignment ofArapaho Road, and the improvement of Addison Road. After the acquisitions, the remaining site will 32
I -[I[I IiII -I Analysis and Valuation ofProposedAcquisition Area (Continued) become a comer tract having similar accessibility and increased visibility. The remaining site will have
similar highest and best use as before the acquisition. That is, the highest and best use is for commercial development but the existing improvements are in poor condition, and with
the comer influence ofthe remainder subject site, it is feasible for re-development. In developing the analysis ofthe Remainder Highest and Best Use and estimating the value after the
acquisition, several questions were formulated and answered throughthe combined sources of: analysis ofthe Right ofWay AcquisitionMap, the engineering design and construction plans,
the Town of Addison Department of Engineering, and consultation with locally knowledgeable consultants. The answers to specific questions, combined with the analysis ofthe undersigned
land rights appraiser, were subsequently applied to market reaction observations and data introduced by the the appraiser to finalize remainder impact conclusions. Following are some
of the considerations in the valuation ofthe remainder after the proposed acquisition(Remainder After). 1) Will the remainder property comply with zoning regulations? Yes, it appears
the remainder site will be a legal conforming use under current zoning. 2) Will the remainder property have access to new Arapaho Road? Yes, the ownerofthe subjectremainderproperty wouldbepermitted
access to newArapaho Road provided the location of driveway access meets all of the Town of Addison Comprehensive Transportation requirements for construction. Specifically, the owner/developermustre
questthe driveway approach by submitting asite/engineeringplan. The Comprehensive Transportation Plan has specifications relating to the size ofdriveway approaches and distances from
an intersection which must be meet by the applicant. 3) What is the grade ofthe new Arapaho Road adjacent to the subject property? Based on available plan and profile design plans, the
the new road will be at the current/existing grade level. 4) Are there any direct benefits as a result ofthis project? Yes, the subject remainder property will become a corner site with
frontage on new Ar,apaho Road and Addison Road. The remainder site will have increased visibility. Secondly, the property owner should request a reduction in the assessed value due to
the 33
IiiI. Il. C·lI I. L· I Analysis and Valuation ofProposedAcquisition Area (Continued) reduced land size and the razing of the improvements as a result of the temporary construction easement
(TCE which is discussed in thefollowing report section). Therefore in the final analysis, the market ofthe remainder subject property after the acquisition and realignment of Arapaho
Road should be greater in than the value before the acquisition and reconstruction. As a remainder, the physical characteristics ofthe remainder site are significantly different than
the before conditions. The remainder site will contain approximately 68,440 SF. The amount of frontage on Addison Road is approximately the same as the before condition. However as a
result of the project, the subject remainder site gains approximately 197 feet of frontage on Arapaho Road. The comer influence significantly enhances the value ofthe remainder. Data
was researched and collected which was utilized in the analysis and valuation ofthe remainder site. Adjustments were applied to the sales data, depending upon differences between the
subject property and each sale. Comparative analysis of sales data which has been retained in our file indicates the value ofthe subject remainder site would fall in the $12.50/SF range.
34
rI ij Analysis and Valuation ofProposedAcquisition Area (Continued) TEMPORARY CONSTRUCTION EASEMENT According to the attached surveyor's field notes, there· is a propo.sed temporary
construction easementtotaling O. 504? acres (or 21,975 SF) for the widening and realignment ofArapaho Road. The TCE is located adjacent to the proposed ROW acquisition area. The rights
sought are temporary in nature. Topography ofthe proposed easement area is generally level. The net affect of this temporary construction easement will not permanently reduce the size
of the subject property. The purpose ofthe proposed temporary construction easement is to provide working area for the ingress, egress, and placement of construction machinery and excavation
materials during the construction phase ofthis project. The period requested for the temporary construction easement is 2 years. It is important to note the existing improvements totaling
approximately 17,959 SF are located within the proposed temporary easement area and will be required to be removed during the construction. The value ofthe easement is calculated as
follows: Temporary Construction Easement (21,975 SF x $9.00/SF) multiplied by the market competitive annual rate of return of 10% = multiplied by 2 years = $197,775 $ 19,778 Rd $ 39,556Rd
III I plus Improvements within the TCE Total 17,959 SF x $3. 56/SF $63,934 $103,490 35
RECAPITULATION A recapitulation ofthe pertinent values ofthe whole property. the proposed acquisition area. the remainder before and after the acquisition are depicted below: 11II II
I Value ofthe Whole Property (Land and Improvements) less Value ofthe Proposed Acquisition Area equals Value ofthe Remainder Before the Acquisition Value ofthe Remainder After the Acquisition
plus Value ofthe Temporary Construction Easement equals Total Compensation $705.000 $ 69,712 $635.288 $855.500 $103,490 $173,202 36
I\II.. r-IIII AFFIDAVIT AND CERTIFICATE OF VALUE The undersigned does hereby certify that, except as otherwise noted in this appraisal report: 1. We have personally inspected the exterior
to the subject property. The value conclusion in this report may require modification if an interior inspection is permitted by the owners. 2. We have no present or contemplated future
interest in the real estate that is the subject of our evaluation. 3. We have no personal interest or bias with respect to the subject matter ofthis evaluation or the parties involved.
4. To the best of our knowledge and belief, we have included only truthful statements offact in this report; and the analysis, opinions and conclusions expressed herein are true and
correct and no pertinent information has knowingly been withheld. 5. The compensation for our professional service is not-contingent upon the reporting of a predetermined value or direction
in value that favors the cause ofthe client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 6. The analyses, opinions
and conclusions in the report are limited only by the assumptions and limiting conditions set forth, and are the personal, unbiased, professional analyses, opinions and conclusions of
the appraiser. 7. The development ofthe herein expressed value opinions have been made in conformity with, and is subject to the requirements of the Uniform Standards of Professional
Appraisal Practice adopted by both the Appraisal Institute and the International Right of Way Association and can be supported by internal file inspection. 8. No persons other than the
undersigned prepared the analyses, conclusions and opinions concerning real estate that are set forth in this appraisal report. 9) This document is hereby communicated to the original
client named in the transmittal letter for the privileged use that client and their selected distribution. It is understood that most appraisal products are prepared to be a tool for
some financial decision purpose. With this understanding, it should be noted that this report was obtained from Evaluation Associates, who owns the data and the detailed file memorandum,
notes, etc., which may consist oftrade secrets and commercial or financial information that is privileged and confidential and exempt from disclosure under 5 U.S.C. 552 (b) (4). Therefore,
please notify Evaluation Associates of any request ofreproduction ofthis appraisal. 37
IIf II Affidavit and Certificate ofValue 10) The act ofpreparation and submission ofthis report to the public in the form ofthe original client, simultaneously 􀁭􀁾􀁫􀁥􀁳 this report
subject to the professional requirements of the Appraisal Institute and the International Right ofWay Association regarding review by its duly authorized representatives. 11) The Appraisal
Institute conducts both mandatory and voluntary programs of continuing education for their designated members depending upon the date ofthe conferring ofthe specific professional designation.
Designated 􀁭􀁥􀁭􀁢􀁾􀁲􀁳who meetthe minimum standards for these programs are awarded periodic educational certification. James W. Cullar, Jr., and Richard N. Baker are currently certified
under their respective and applicable programs. 12) This Appraisal is classified as Limited in Scope and is presented in Summary Format. 13) The market derived value ofthe proposed acquisition
areas as ofJuly 21,2002 is estimated to be: ONE HUNDRED SEVENTY THREE THOUSAND TWO HUNDRED TWO DOLLARS ($173,202) 􀁗􀀮􀁾􀁦􀀱􀁴􀁬 W. Cullar, Jr., SRPA, SRA, 􀁓􀁾􀁁 Richard N. Baker, MAl
38
[IIIl· I􀁬􀁾 II. II EVALUATION ASSOCIATES Right of Way Land Rights Appraisal and Acquisition Solutions James w. Cullar, Jr., SRPA, SRA, SRIWA Qualifications and Professional Background
EDUCATION Graduate ofNorth Texas State University, BBA 1967 All courses, demonstration appraisal reports, professional experience, and quality reviews required for the three professional
designations awarded from 1969 to current time. PROFESSIONAL EXPERIENCE Founder and general manager ofEvaluation Associates, a real property consulting and land rights acquisition firm,
providing a variety of real property evaluation services for the financial market, public land rights acquiring agencies, and individuals seeking decision making information for mortgage
lending, asset review, right ofway land rights acquisition and related matters. Jim Cullar has qualified as an expert witness in county; state and federal courts in Dallas, Tarrant,
Collin, Denton, Ellis, Grayson, and Travis Counties. Prior to founding Evaluation Associates, Jim was a lender and appraiser with a large financial institution; and later the chiefappraiser
with the Right ofWay Division ofthe Dallas County Department ofPublic Works. He has been a selfemployed consultant since 1985. Jim keeps abreast of industry change through reading, continuing
education, teaching, forum discussion, and publication. PROFESSIONAL AFFILIATIONS The Appraisal Institute SRPA, SRA Member designation Past President -North Texas Chapter 1995 Member
National Board ofDirectors -1997 -1999 National Finance Committee 1998-1999 Chair -Region VIII 1999 International Right ofWay Association (IRIWA Region 2) SR/WA Designation Certified
Instructor of: Real Estate Appraisal Principles Income Approach to Valuation Appraisal ofPartial Acquisition Easement Evaluation State Certified General Texas Real Estate Appraiser -TX
-1321322 G 1-11615 Forest Central Drive' Suite 205' Dallas, Texas 75243-3917· (214) 553-1414 Fax (214) 553-1615 39
,I , II, IIt. ;(I. I EVALUATION' ASSOCIATES Right of Way Land Rights Appraisal and Acquisition Solutions RICHARD N. BAKER, MAl Qualifications and Professional Background EDUCATION, Graduate
of Texas Tech University • Masters ofBusiness Administration -May 1985. Graduate of Southern Methodist University· Bachelor of Arts -Bachelor of Business Administration -May 1983 All
courses, demonstration appraisal reports, professional experience, and quality reviews required for the:MAI professional designation awarded 1996. RECENT ACCREDITED APPRAISAL COURSES
and SEMINARS Highest and Best Use Applications (November 1999) Standards ofProfessional Practice, Part C (March 1998) Dynamics of Office Building Valuation (November 1997) PROFESSIONAL
EXPERIENCE Appraisal experience includes the analysis and preparation of comprehensive narrative appraisal reports, evaluating a variety of interests in numerous property types including
multi-family residential, industrial, office, retail, rural and urban land, special purpose properties, right-of-way land rights acquisition matters, special benefits /enhancement studies,
and related consultation issues. Appraisal work product has been accepted and utilized for mortgage lending, estate tax planning and settlement, propeI1Y exchange, corporate management
decisions, road and thoroughfare improvement assessment programs, and partial acquisition valuation for just compensation analysis by eminent domain acquiring agencies. PROFESSIONAL
DESIGNAnONS and AFFILIATIONS MAl -The Appraisal Institute #10984 State Certified Real Estate Appraiser-General #1322012-G Texas Real Estate Salesman -Inactive APPRAISAL INSTITUTE LEADERSHIP
CONTRIBUTION Candidate Guidance Chair -North Texas Chapter -'1998 Web Site Committee Chair -North Texas Chapter -2001 -2002 Regional Representative -Region VIII -2000 -2001 Region Representative
to National Technology Outreach Committee 1999 -2001 North Texas Chapter -Member Board ofDirectors -2001 -2003 40
IIl_ III rI l: ADDENDUM 41
ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES For the purpose ofthis appraisal, the following assumptions and limiting conditions are made a part thereof: 1. That title to the individual
property will be good and marketable and that title is in fee simple under single ownership unless otherwise stated. 2. No responsibility is assumed by the appraiser for matters of legal
character. The value is reported without "regard to questions of title, boundaries, encumbrances, easements and encroachments. All existing liens and encumbrances have been disregarded,
and the property is appraised as though free and clear under responsible ownership and management unless otherwise stated. The valuation is reported in dollars ofcurrency prevailing
on the date ofthe appraisal. This is a financial decision document. It is riot a marketing tool. Therefore no part of the contents ofthis report (especially any conclusions as to value,
the identity ofthe appraiser or the firm with which he is connected, or any reference to the professional organizations that designate the appraisers or to the applicable designation)
shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication other than the intent of the
report as a financial decision tool for the original client. If the subject is an improved property, the sketches in this report are approximate and are included, together with the 􀁰􀁨􀁯􀁴􀁯􀁾􀁡􀁰􀁨
􀁹􀀬to assist the reader in visualizing the property. All information and comments pertaining to this and other properties represent the combination offacts provided by others and the
professional opinion of the appraiser, formed after careful examination and study ofthe subject property. Hence, the work product of the appraiser is an estimate. While it is believed
that the information, estimates and analyses which led to the herein stated estimated value conclusions are correct, and the primary appraiser is prepared to testify as to the applicability
ofthe selected data to the valuation ofthe subject property, the appraiser does not guarantee any element ofthe data base. Nor does he assume any financial liability for errors in facts
provided by others, analysis or judgement. The client's remedy is referral of a faulty analysis to the Appraisal Institute, the International Right ofWay Association, and/or the Texas
Appraisal Licensing and Certification Board. ! 3. 4. -5. I!r -III Ir 6. IrIr 7. Given adequate preparation 􀁮􀁯􀁴􀁩􀁣􀁥􀁾 the appraiser is prepared to provide testimony and to appear
in court by reason ofthis appraisal, under separate contract, at the request ofthe original client. 8. The distribution ofthe total valuation in this report between land and improvements
applies only under the "existing program of utilization. The separate valuations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so
used.
): ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES VALUE 9. Also, the value is estimatedunder the assumption that there will be no international or domestic, political, economic, or military
actions that will seriously affect real estate values throughout the country. 10. Real estate values are influenced by a large number of external factors. The analysis included all of
the data necessary to form an informed highest and best use and value conclusion. The report does not include all the data necessary to support the value estimate. All pertinent facts
have been referenced in this report, but we do not guarantee that we have knowledge of all factors that might influence the value ofthe subject. Due to rapid changes in the external
factors, the value estimate is considered reliable only as of the 􀁾􀁡􀁴􀁥 of the appraisal and any related testimony.. 11. In the event the appraisal is based upon proposed improvements,
it is assumed that the improvements will be constructed in substantial conformity with plans and specifications that have been furnished the appraiser, and with g<?od materials 􀁾􀁤
workmanship. It is also assumed that the proposed foundation and construction techniques are adequate for the existing sub-soil conditions. 12. Unless otherwise stated in this report,
the existence ofenvironmentally hazardous or damaging material, which mayor may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge ofthe
existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence ofsubstances such as asbestos or urea-formaldehyde
may affect the value ofthe property. The value estimate is predicted on the assumption that there is no such material on or in the property that would cause such a loss in value. No
responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client, property owner and/or prospective purchaser is
advised to conduct environmental due diligence with regard to the property including having the necessary environmental assessments and/or environmental audits made to determine if any
environmental problems related to the subject property exist. Ifany environmental problems are found which effect the subject property, the value estimate contained in this report is
subject to review and may not be valid. 13. The American and Disabilities Act (ADA) became effective January 26, 1992. I (we) have not made a specific compliance survey and analysis
ofthis 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 ofthe property together with
a detailed analysis ofthe requirements ofthe ADA could reveal that the property is not in compliance with one or more ofthe requirements ofthe act. If so, this fact could have a negative
effect upon the value ofthe property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider possible noncompliance with the requirements ofADA in estimating
the value ofthe property.
II. I)rI. I 2. DEFINITION OF TERMS Market Value: The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair. sale,
the buyer and seller each acting prudendy and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation ofa sale as ofa
specified date and the passing oftide from seller or buyer under conditions whereby: a. buyer and seller are typically motivated; b. both parties are well informed or well advised, and
each acting in what they consider their best interest; c. a reasonable time is allowed for exposure in the open market; d. payment is made in cash in U.S. dollars or in terms offinancial
arrangements comparable thereto; and e. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by
anyone associated with the sale. Value in Use: The value of an economic good to its owner-user which which is based on the productivity (privacies in 􀁩􀁮􀁣􀁯􀁭􀁥􀁾 utility or amenity
form) of the economic good to a specific individual. 3. Highest and Best Use: The most profitable likely use to which a property can be put. That use of land which may reasonably be
expected to produce the greatest net return to land over a period oftime. That legal use which will yield to land the highest present value. 4. Abbreviations cominonly used in the appraisal
of real estate: FM = Farm to Market Rd US = United States Highway I = Interstate Highway .Frwy = Freeway Expwy = Expressway Hwy = Highway SH = State Highway· N = North S = South E =
East W = West II SF = square feet lAC = per acre 5. Vehicular traffic artety abbreviations: St. = Street Ln Lane Dr = Drive Rd = Road PI = Place Pkwy = Parkway Ave = Avenue Blvd = Boulevard
Cir = Circle Ct = Court . Mt. = Mount RR ROW = railroad = right ofway
III I EVALUATION ASSOCIATES REAL ESTATE ANALYSIS AND CONSULTATION July 12, 2002 15211 Addison Road JV 3333 Earhart Drive -Suite 140 Carrollton, Texas 75006-5163 Re: Town of Addison -Arapaho
Road Improvement Project & Addison Road Intersection Improvements -15223 Addison Road (Proposed expansion of road right of way and Intersection Construction) Gentlemen: As you are probably
aware, the Town of Addison proposes to extend Arapaho Road from Addison Road west to Marsh Lane. In earlier meetings and correspondence, you mayhave been informed that this project will
require the acquisition of a portion ofyour property, along the north side ofthe combined properties which constitute the facility. The Town ofAddison may have mailed you documents describing
the proposed acquisition. Evaluation Associates has been employed by the Town of Addison to assist them in the evaluation ofyour property for compensation related to the right ofway.
Part of the process involves a review of many physical and economic factors. As for the property inspection aspect, even though we may be able to view much of the property from the perimeter,
aerial photography, maps and plats of record, we would like to inspect the interior of the buildings, and to meet with you to discuss the appraisal process, and to consider your perspective.
At that time, you are invited to ask any questions you have regarding the appraisal process and issues that will be considered in the appraisal ofyour property. Please feel free to forward
your questions to jcullar(ti)aitmai1.net, mail, or fax to (214) 553-"" 1414. In the interim, would you please complete the accompanying questionnaire to provide backgroundinformation in preparation for the property review? A self-addressed envelope has been provided for your assistance. Please mail it back as soon as possible, as the information contained
may assist us in preparing to meet with you. If you feel that the proposed road project will have any specific impact on your property, please tell us. Everything will be taken into
consideration in the appraisal process. Thank you for your time and assistance. :Evaluation <:illssociates 1 161 5 FOREST CENTRAL DRIVE· SUITE 205 • DALLAS. TEXAS 75243-391 7 • (21 4)
553-1 41 4 • FAX (21 4) 553-1 61 5
I!IIir-IlI)II OWNERSHIP QUESTIONNAIRE and PROPERTY INSPECTION NOTIFICATION PROJECT: Town of Addison -Arapaho Road Improvement Project & Addison Road Intersection Improvements -15223
Addison Road (Proposed expansion ofroad right ofwayand Intersection Construction) TO: 15211 Addison Road JV 3333 Earhart Drive -Suite 140 􀁃􀁡􀁲􀁲􀁯􀁬􀁬􀁴􀁯􀁾 Texas 75006-5163 To assist
us in contacting you at the most convenient time, and to be aware ofyour concerns related to the proposed project, please complete this questionnaire. We want to explain as much as possible
regarding the appraisal process and to hear your viewpoint regarding the impact ofthe proposed water and sewer project and the proposed construction on your property. Thank you for your
cooperation. Person completing this form: Phone: Names oftenants: List below any specific concerns that you may have, and/or any additional information you may have that we should be
aware of (feel free to add-on, or write on the back of form) : 1 161 5 FOREST CENTRAL DRIVE· SUITE 205 • DALLAS. TEXAS 75243-3917 • (21 4) 553-1 41 4 • FAX (21 4) 553-1 61 5