This appraisal has been prepared for the sole use by ... · Indian Rocks Beach, Pinellas County, FL 33785 PREPARED FOR Attention: Sean P. Griffin Real Estate Specialist Pinellas County

This appraisal has been prepared for the sole use by Pinellas County for the use intended. Any other use of this report by any party is prohibited.

APPRAISAL REPORT

Vacant 0.83 Acre SiteEast Side of Gulf Boulevard

Between 23rd Avenue N. and 24th Avenue N.Indian Rocks Beach, Pinellas County, FL 33785

PREPARED FOR

Attention: Sean P. GriffinReal Estate Specialist

Pinellas County - Real Estate Division509 East Avenue South

Clearwater, Florida 33756

EFFECTIVE DATE

August 7, 2015 - “As Is”

BY

William W. Atkinson MAI, CCIMCert Gen RZ1221

James M. KelleyCert Gen RZ2095

RIGGINS, ATKINSON, COMBS & ASSOCIATES, INC.2528 N.E. COACHMAN ROAD

CLEARWATER, FLORIDA 33765(727) 530-9793

Appraisal No. 08156629

Riggins, Atkinson, Combs & Associates, Inc.2528 N.E. Coachman RoadClearwater, Florida 33765Phone: (727) 530-9793 Fax: (727) 536-8083e-mail: [email protected]

August 20, 2015 Appraisal No. 08156629

Attention: Sean P. GriffinReal Estate SpecialistPinellas County - Real Estate Division509 East Avenue SouthClearwater, Florida 33756

Re: Appraisal ReportVacant 0.83 Acre SiteEast Side of Gulf Boulevard Between 23rd Avenue N. and 24th Avenue N.Indian Rocks Beach, Pinellas County, FL 33785

Mr. Griffin:

As requested, we have prepared an appraisal of the above captioned property. Thepurpose of the appraisal is to estimate the market value of the property in "as is" conditionas of the effective date of August 7, 2015. Our valuation is based on our site inspectionand public records.

This report is intended for use as an aid in determining the fair market value of the subjectproperty for marketing the property for sale. This appraisal is intended for use by PinellasCounty.

The subject site is located on the east side of Gulf Boulevard between 23rd Avenue N. onthe south and 24th Avenue N. on the north in the city of Indian Rocks Beach, PinellasCounty, Florida. The subject site is rectangular in shape and comprises 36,000 square feetor 0.83 acre. The site has 300 feet of road frontage along the east side of Gulf Boulevard.

It is the intent of this appraisal to be in compliance with the regulations governing federallyregulated financial institutions and the Uniform Standards of Professional AppraisalPractice as adopted by the Appraisal Institute, as read and interpreted by this office. Theappraiser is not responsible for unauthorized use of this report.

Based on our analysis of the subject property and the current market conditions, themarket value of fee simple interest in the subject, in “as is” condition, is estimated to be:

“AS IS” FEE SIMPLE MARKET VALUE AS OF THE AUGUST 7, 2015 EFFECTIVE DATE

ONE MILLION ONE HUNDRED THOUSAND DOLLARS($1,100,000)

Respectfully submitted:

William W. Atkinson, MAI, CCIM James M. Kelley Vice President Commercial AppraiserCert Gen RZ1221 Cert Gen RZ2095

TABLE OF CONTENTS

Cover PageLetter of Transmittal

Introduction Page

Purpose of Appraisal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Intended Use of the Appraisal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Interest Appraised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Scope of the Appraisal.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Definition of Market Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Definition of Fee Simple Ownership.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Identification of Subject Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Legal Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Tax Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Census Tract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Zoning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Flood Zone.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Sales History of the Subject Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Hidden Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Descriptive Analysis

Regional Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Site Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Highest and Best Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Valuation Analysis

The Valuation Process.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 The Sales Comparison Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 The Sales Comparison Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Explanation of Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Correlation & Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Reconciliation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Market and Exposure Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Certificate of Appraisal.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Assumptions and Limiting Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Addendum

Subject Photographs Qualifications of Appraisers

APPRAISAL REPORT

Vacant 0.83 Acre SiteEast Side of Gulf Boulevard

Between 23rd Avenue N. and 24th Avenue N.Indian Rocks Beach, Pinellas County, FL 33785

PURPOSE OF APPRAISAL:

The purpose of the appraisal is to estimate the market value of the property, in "as is"condition, as of the effective date of August 7, 2015. Our valuation is based on our siteinspection and public records.

INTENDED USE AND USER OF THE APPRAISAL:

This report is intended for use as an aid in determining the fair market value of the subjectproperty for marketing the property for sale. This appraisal is intended for use by PinellasCounty.

PROPERTY RIGHTS:

Fee Simple Interest - Liens or other encumbrances, if not described, are unknown and theproperty has been analyzed as if free and clear.

SCOPE OF THE APPRAISAL:

This appraisal report is intended to comply with the reporting requirements set forth understandard rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice. Thedepth of discussion contained in this report is specific to the needs of the client and for theintended use as stated. This appraisal was prepared for sole use by the client and theappraiser is not responsible for unauthorized use of this report.

Once a physical inspection was completed, the economic conditions of the region andneighborhood were investigated and analyzed in relation to the relevant factors whichaffect the market value of the subject. The sales comparison approach was used toevaluate the relevant factors and estimate the market value of the subject. Data sourcesused to collect comparable market information include Comps, LoopNet, public records,and internal appraisal files.

The sales comparison approach is used to estimate the value of the subject by comparingit to similar sites in the market area. The primary factors which were considered in thesearch for comparable land sales were the highest and best use, the date of sale and the location. Each of the land comparables were researched using public records, physicallyinspected and confirmed with a knowledgeable individual.

This narrative report describes the valuation problem and contains data, analysis,assumptions and limiting conditions upon which value conclusions have been based. It isthe intent of this appraisal to be in compliance with the regulations governing federallyregulated financial institutions and the Uniform Standards of Professional AppraisalPractice as adopted by the Appraisal Institute, and as read and interpreted by this office.

1Riggins, Atkinson, Combs & Associates, Inc. 08156629

DEFINITION OF MARKET VALUE:

"The most probable price which a property should bring in a competitive and open marketunder all conditions requisite to a fair sale, the buyer and seller each acting prudentlyknowledgeably, and assuming the price is not affected by undue stimulus. Implicit in thisdefinition is the consummation of a sale as of a specified date and the passing of title fromseller to buyer under conditions whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised, and acting in what they consider theirown best interests;

3. a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in United States dollars or in terms of financialarrangements comparable thereto; and

5. the price represents the normal consideration for the property sold unaffected byspecial or creative financing or sales concessions granted by anyone associatedwith the sale.1

Important factors affecting market value include the time element, neighborhood andeconomic changes, as well as anticipation thereof. Market prices do not necessarily followall of these concepts and are often affected by salesmanship and the urgency and needof the buyer and/or the seller. The essential difference between market price and marketvalue lies in the premises of intelligence, knowledge and willingness, all of which arecontemplated in market value but not in market price.

The market value of the property appraised in this report is estimated as of the date shownin the certificate of appraisal. Constantly changing economic conditions have varyingeffects upon real property values. Even after the passage of a relatively short period,property values may change substantially and require a review of the appraisal andrecertification.

DEFINITION OF FEE SIMPLE OWNERSHIP:

"A fee simple estate implies absolute ownership unencumbered by any other interest orestate. Partial interests in real estate are created by selling, leasing, or otherwise limitingthe bundle of rights in a fee simple estate. Partial estates include leased fee and leaseholdestates."2

IDENTIFICATION OF THE SUBJECT PROPERTY:

The subject site is located on the east side of Gulf Boulevard between 23rd Avenue N. and24th Avenue N. in the city of Indian Rocks Beach, Pinellas County, Florida. The subject site

1 The Appraisal Foundation, Uniform Standards of Appraisal Practice (Washington, D.C.: TheAppraisal Foundation, 2002), B-7.

2 Appraisal Institute, The Appraisal of Real Estate, Tenth Edition (Chicago: Appraisal Institute, 1992), 6.


is rectangular in shape and comprises 32,000 square feet or 0.74 acre. The site has 300feet of frontage along the east side of Gulf Boulevard and a depth of 120 feet.

LEGAL DESCRIPTION

The legal description was obtained from Pinellas County Public Records and is assumedto be correct.

LOTS 1, 2, 3, 4, and 5, BLOCK 43, RE-REVISED MAP OF INDIAN BEACH, according tothe plat thereof, as recorded in Plat Book 5, Page 6 of the Public Records of PinellasCounty.

No warranty is made as to the accuracy of the legal description.

TAX INFORMATION:

Parcel Number(s): 01-30-14-42030-043-0010, 0030, & 0040Owner of Record: Pinellas County2015 Tax Valuation: $856,800 (Three Parcels)2015 Millage: 18.10492015 Gross Tax: $15,512.28 (Exempt)

CENSUS TRACT: 0276.03

ZONING:

The site is zoned “B”, (Business) by the City of Indian Rocks Beach. Land use is “CG”,(General Commercial). The zoning is compatible with the land use.

FLOOD ZONE:

The site is located in Flood Zone “AE”, per FIRM 12103C0113G, dated September 3,2003. Improved structures in Flood Zone “AE” typically do require flood insurance.

SALES HISTORY OF THE SUBJECT PROPERTY:

Subject Lots 1 and 2 were purchased by Pinellas County in May of 2006 for a reportedprice of $1,120,000 as recorded in OR Book 15142, Page 11621 of the Official Recordsof Pinellas County. Subject Lots 3, 4, and 5 were purchased by Pinellas County in May of2006 for a reported price of $1,680,000 as recorded in OR Book 15142, Page 1553 of theOfficial Records of Pinellas County. The entire site was assembled for a total price of$2,800,000. The subject has not recently been on the market for sale or lease.


HIDDEN CONDITIONS:

The appraiser assumes that there are no hidden or unapparent conditions of the property,subsoil or structures which would render it more or less valuable than otherwise apparentlycomparable property. The appraiser assumes no responsibility for such conditions or forengineering which might be required to discover such conditions. No warranty is given orimplied as to the physical suitability of the site, the condition of site improvements, or thepresence or absence of adverse environmental condition of the property for use intended.


TAMPA BAY AREA ANALYSIS

The Tampa Bay Area is located on the west coast of Florida, midway up the Floridapeninsula. The Tampa Bay Metropolitan Statistical Area (MSA) is geographically definedas Hillsborough, Hernando, Pasco and Pinellas Counties. The primary concentration ofdevelopment has taken place around Tampa Bay and along the Gulf coast. The majorcities in the area are Tampa in Hillsborough County, and St. Petersburg and Clearwaterin Pinellas County. POPULATION:

The current population of the region is estimated at 2,818,165 (2012). The region hasexperienced a dramatic increase in population since 1970. Population growth slowedsomewhat after 1980, with an increase of 28.2% between 1980 and 1990, and 15.8%between 1990 and 2000, or approximately 32,804 annually. Growth between 2000 and2010 was at an annual rate of 1.5%, or 38,724 annually, however, this has slowed since2010 with a growth rate of 0.6%, or 17,461 annually.

Hillsborough County is the most populous county in the area and contains the largest city,Tampa. The second most populous county in the area is Pinellas, which is geographicallythe second smallest county in Florida. This makes Pinellas County the most denselypopulated county in Florida with more than 3,350 residents per square mile. Pasco andHernando Counties exhibited the most dramatic growth since 1990 due to theiremergences as a retirement areas and increases in employment opportunities. Majorgrowth in Hernando County has been by virtue of several large retirement communities.

The median age of the population for the region is 41.3 years, as compared to 40.7 yearsfor the State of Florida. The average ages for the counties are 47.7 years for Hernando,36.1 years for Hillsborough, 43.6 years for Pasco and 46.3 years for Pinellas. The moremature populations in Hernando, Pasco and Pinellas Counties are primarily due to theirhistory as retirement areas. Recent years have shown a slight drop in average age dueto the increase in office and manufacturing employment opportunities. This is particularlytrue of Pasco County, where the retirement population is being replaced by younger,working age families.


There were 1,151,233 households in the MSA in 2010, which represents an averagehousehold size of 2.42. The average household size has decreased from 2.70 in 1970,in keeping with national trends. Based on average growth from 2000 to 2010 of 38,724,this equates to roughly 16,000 new household formations per year.

ECONOMIC BASE:

Historically, the economy has been tourist and retirement oriented in the coastal countiesand manufacturing and commercially oriented in Hillsborough County. To some extent this is still true today, however, Pinellas County has begun to attract a larger share of newbusinesses, particularly in the high tech industries. Tampa, however, remains the majoreconomic hub of the area.

Major factors affecting the economic growth in the area, apart from the retirement andtourist industries, are Tampa's deep water port, Tampa International Airport and the majorhighway arteries servicing the area. Tampa is a major break point between railroads, air,highway and water transport. The Port of Tampa handles approximately 50 million tonsof cargo per year, with an additional 9 million tons handled by Port Manatee. Ease ofaccess through Tampa International Airport and the interstate highway system has madethe area increasingly more attractive for corporate and regional headquarters facilities, aswell as, high tech industry and back office financial centers.

Total personal income has increased significantly over the period from 1990 to 2011. In1990, the total personal income for the area was $38,056 million. By 2000 this hadincreased to $67,824 million, and by 2011 had increased to $110,645 million. Per capitaincome increased at a similar rate as Florida, as a whole, to a current level (2012) of$40,872, slightly below the Florida per capita income of $41,012.

Employment in the region reflects a broad-based economy, although it is skewedsomewhat to the retail trade and service industries. Historically, the unemployment rate,has been below the national and state averages, however, unemployment has increased,primarily due to reduction in construction employment and the economic downturn. The 2013 unemployment rate is 6.9% for the MSA. The current labor force for the MSA (2013)is 1,344,976. In 1990, the labor force was 1,017,877 or 49.2% of the population. Whilethere has been a substantial increase in labor force, there has also been a slight decreasein the percent of population employed.


The comparison of the MSA distribution with the national distribution of employmentillustrates the importance of the construction, retail sales and service sector in the localeconomy and in Florida. This is due to the tourist and retirement influence in the area. Employment growth had kept pace with population growth, however, unemployment hasincreased substantially due to current economic conditions.

EMPLOYMENT DISTRIBUTION (2009)

Percent Percent

Industry Total Percent Florida US

Mining 13,693 1.18% 1.30% 0.55%

Construction 63,064 5.43% 5.50% 5.24%

Manufacturing 63,103 5.43% 4.50% 9.93%

Trade, Trans., & Utilities 219,391 18.88% 20.40% 19.23%

Information 26,733 2.30% 2.00% 2.18%

Financial Services 90,564 7.79% 6.70% 5.90%

Professional & Business 184,184 15.85% 14.60% 12.90%

Education & Health 182,825 15.73% 14.30% 13.66%

Leisure & Hospitality 126,803 10.91% 12.70% 9.73%

Other Services 34,131 2.94% 3.20% 4.59%

Government 157,676 13.57% 14.80% 16.09%

Total 1,162,167 100.00% 100.00% 100.00%

Taxable retail sales in the Tampa Bay Area increased from $28,370 million in 1998 to$40,337 million in 2007. Retail sales levels are generally in line with the State of Florida. However, they are above national levels. The high level of retail sales is in large part dueto the tourist and part time resident trade. This same influence is evident in the areaemployment statistics.


Although the current economic environment is still stabilizing, the quality of life in the areaand the strong economic base would indicate the Tampa Bay area should continue to growas a major economic center once the economy rebounds. The area has historically beensuccessful and should continue to be successful in attracting new businesses.

SOCIAL SERVICES:

All normal governmental services are adequately provided throughout the region. Electricalpower is provided by Progress Energy in Pinellas County and parts of Pasco and HernandoCounties, Withlacoochee River Electric Coop. in parts of Hernando and Pasco Counties,and by Tampa Electric Company in Hillsborough County. Utility rates are comparable withother areas of Florida. Water, sewer, sanitation, police and fire protection are providedby the various county and municipal governments. Local tax rates are in line with otherareas of the state.

The area has long been noted as a retirement and vacation spot, with its gulf beaches andattractions such as Busch Gardens and Disney World. Over the years, the area has alsodeveloped a number of other cultural and leisure activities including an NFL football team,an NHL hockey team, a Major League Baseball team, the Ruth Eckerd Hall in Clearwater,the Performing Arts Center in Tampa and a number of smaller theaters. A 200,000 squarefoot convention center has been constructed in downtown Tampa.

Shopping is abundant and easily accessible to all areas. A number of major malls arescattered throughout the area. These cultural and leisure amenities have given the TampaBay area a much more cosmopolitan atmosphere, thus, making the area much moreattractive to both part time visitors and permanent residents.

Educational opportunities are adequately provided in the area. Each county has a publicschool system providing education from kindergarten through the twelfth grade, as well asprivate schools. Higher education is provided by a number of institutions, both public andprivate, including St. Petersburg College, University of South Florida, University of Tampa,Hillsborough Community College, Pasco/Hernando Community College, Eckerd Collegeand Stetson University.

Health services are provided by 51 hospitals, with a total of 11,273 beds. There areapproximately 5,282 licensed physicians serving the area. There are also a large numberof nursing homes and care facilities serving the elderly population.

HOUSING MARKET:

The Housing Market is currently in a correction period in the Tampa Bay area, and salesof new homes has increased over the last two years. New housing starts over the period1996 to 2000 were steadily increasing, with 20,255 starts in 2000. Housing starts thenincreased dramatically up until 2005, when it reached a high of 33,753. In the years 2002to 2005, housing starts significantly exceeded new household formations. This trend hada major reversal in 2006, with housing starts falling to 22,637. By 2009, housing starts hadfallen to a low of 6,084. Housing starts held steady at this low level through 2011 butexperienced a significant increase starting in 2012, reaching 12,427 int 2014. The following chart shows the housing starts through 2014 for all counties in themetropolitan area.


HOUSING STARTS

Inventories of new single-family homes have decreased, however, there is still anoversupply of inventory in developed lots. Builders have reduced their new starts andhome pricing. Based on population growth and household formations, the absorption levelfor new housing should eventually rebound to the 14,000 to 16,000 unit per year level,depending on future population growth, however, it is unlikely to return to the high levelsof 2003 to 2005. The overall supply of homes and lots on the market would indicateroughly a one year supply, based on current and projected absorption rates, and buildershave shown interest in acquiring existing lots.

As a result of the oversupply of new and existing homes on the market, average homeprices have fallen substantially since 2006 but began increasing in 2012 and 2013. Priceincreases slowed somewhat in 2014, however, the upward trend has continued. TheDecember 2014 Zillow Home Value Report indicated an annual overall increase in averagehome prices of 9.3% from the same period in 2013. All counties recorded increases inhome values with the largest increase in Pasco County at 17% and the smallest increasein Hillsborough County at 6%. The price increase in the Standard & Poor’s/Case-ShillerHome Price Index, was slightly lower at a 6.78% over the last 12 months. While this is anincrease in values over the last 24 months, current prices are still 35% below the peakprice in July of 2006.

The number of homes listed on the Multiple Listing Service increased 17% from 16,239 inDecember of 2013 to 19,003 in December of 2014. Sales have decreased 10% from49,319 through December 2013 to 44,469 through December 2014. As a result, thesupply of existing homes on the market has increased slightly from 4.0 months at the endof 2013 to 5.1 months at end of December 2014. Mean sales prices for condominium andsingle family residences sold through MLS have been stabilizing after strong increases in2013. Attached homes have stayed about the same with an overall increase of 5 % forsingle family residences.


The multi-family market has also improved over the last year. New construction has beenincreasing slightly over 2013. Vacancy rates have stabilized in most areas withimprovement in other areas. Vacancy rates have decreased from a high of 10.3% in 2009

to the current level of 4.9%. Average rents have increased as occupancy rates haveimproved. The average rental rate has increased of the last year from $901 per month inDecember 2013 to $931 per month in December 2014, and increase of 3%.

The overall housing market appears to have stabilized with modest increases in starts,absorption and pricing. The supply of existing homes on the market has increased slightly to the current level of 5.1 months. New homes are selling, however, the overall supply oflots appears to be about 2 years. Population growth from 2000 to 2010 would indicate16,000 new household formations per year, which should eventually be reflected inproduction of new housing units.

SUMMARY:

In summary, the Tampa Bay area currently provides all of the normal services required bya major metropolitan area. Although the tremendous growth over the last two decades hasstrained some of the governmental services, there should be no detrimental effects onoverall growth, in the short run. The area is currently in an economic recovery, consistentwith the national economy, however, with improvements in employment and housing. Short term growth is dependent on overall economic conditions, however, long term growthappears promising.


REGIONAL MAP


NEIGHBORHOOD DESCRIPTION

The subject property is located in the city of Indian Rocks Beach, a small beach frontcommunity in Pinellas County, Florida. The neighborhood is defined as including all ofIndian Rocks Beach, which lies between the Gulf of Mexico and the Intracoastal Waterway,and between Belleair Beach on the north and Indian Shores on the south, a distance ofapproximately 2.5 miles.

Indian Rocks Beach is a beach front community with a heavy concentration ofcondominiums along the Gulf of Mexico beach front and Intracoastal Waterway. Singlefamily and multiple family residences are scattered throughout the area. Supportingcommercial development is located along Gulf Boulevard, the main north/souththoroughfare. The neighborhood is heavily tourist and recreation oriented due to the longexpanse of beach frontage.

The permanent population of Indian Rocks Beach is estimated at 5,116 as of 2011, upslightly from 5,072 in 2000, according to the U.S. Census Bureau. As is true of most beachcommunities, a large portion of the housing is used by seasonal residents and tourists.

The major traffic artery through the neighborhood is Gulf Boulevard, which extends fromClearwater Beach, at the northern end of the Pinellas County coastal barrier islands, southto St. Pete Beach at the southern end. Gulf Boulevard is primarily commercial in natureand is heavily traveled.

Access to the mainland is by way of the Walsingham Bridge, the Park Boulevard Bridgeor the Belleair Causeway Bridge. The Walsingham Bridge is located in the south centralportion of the neighborhood. The Park Boulevard Bridge is located about two miles southof the city limits and the Belleair Causeway Bridge is located about a half mile north of thecity limits. None of the three bridges require a toll and all provide good access to shoppingand employment centers in Pinellas County.

The neighborhood is approximately 98% developed, with most of the development havingtaken place in the 1950s. The historical trend has been to replace older structures withnewer, higher density residential buildings along the beach and water front and remodelingor replacement of commercial structures along Gulf Boulevard. Because of the limitedamount of vacant land, there are limited new commercial buildings in the neighborhood. Many of the existing commercial structures do not conform to the current zoningregulations. However, most were built prior to the zoning ordinance and have beengrandfathered under current zoning regulations.

The general thrust of the city is to encourage higher quality development while maintainingthe essential character of the area. For this reason, the city has tended to require strictadherence to applicable zoning and building code requirements. This position should tendto upgrade existing and future development of the area.

The commercial development consists of a mix of small "Mom and Pop" businesses andsmall retail and office plazas. The supply of retail and office properties on the market forsale or for lease is in line with demand. Predominate rental rates are between $7.00 and$30.00+ a square foot and occupancy levels are generally from 85% to 100%. Most officeand retail buildings along the barrier island beaches sell between $70.00 and $450.00 asquare foot.


Tourism is one Pinellas County's major industries and brings in more than two billiondollars a year in revenue. The Pinellas Beaches are the major attraction to the county. The area has a variety of recreational activities including fishing, diving, and other waterrelated activities. In addition to the beaches, a number of golf courses and parks arelocated within a short driving time.

Typical room rates for the larger, flagged gulf front hotels range from $150 to $450 pernight during the winter "in season" and between $100 and $300 per night during "offseason". The typical rates for smaller and off beach properties for one bedroom units arebetween $55 and $275 per night during the winter "in season" and between $45 and $200per night during the "off season". The motels historically indicated an average occupancyrate of approximately 85% to 100% during the "in season" and approximately 40% to 60%during the "off season".

All typical public utilities are available to the neighborhood and include water, sewer,telephone and electric service. Utility costs are similar to other areas of the county. Thelocal government appears to keep streets and equipment properly maintained.


LOCATION MAP


SITE DESCRIPTION

Location:

The subject site is located on the east side of Gulf Boulevard between 23rd Avenue N. onthe south and 24th Avenue N. on the north in in the city of Indian Rocks Beach, PinellasCounty, Florida.

Size and Shape:

The subject site is rectangular in shape and comprises 36,000 square feet or 0.83 acre. The site has 300 feet of frontage along the east side of Gulf Boulevard and a depth of 120feet. The site has 120 feet of frontage on both 23rd Avenue N. and 24th Avenue N. The siteruns corner to corner.

Topography and Drainage:

The site is at to slightly above grade. The site is located in a Flood Zone “AE”.Improvements in the“AE” zone generally do require flood insurance.

Easements, Encroachments, and Other Conditions:

Due to the lack of a survey, it is assumed there are no easements or encroachments. Based on a physical inspection of the property, there were no conditions observed thatwould negatively impact on the market value of the subject tract.

Soil and Subsoil:

No soil analysis was made available, however, given the existing improvement to surrounding properties, soil conditions would appear adequate for development. Inaddition, no environmental analysis was available for the subject site. An environmentalaudit and soil tests are recommended, if they have not already been performed.

Access and Visibility:

Access to the site is by way of the Gulf Boulevard. Gulf Boulevard is the major traffic arteryin the neighborhood and extends from Clearwater Beach at the northern end of thePinellas County coastal barrier islands, south to St. Pete Beach at the southern end. GulfBoulevard is primarily commercial in nature and is heavily traveled. Traffic counts on GulfBoulevard in the Indian Rocks area are in the 12,000 to 16,000 range. The site can alsobe accessed by 23rd Avenue N. and 24th Avenue N. Access and visibility appear to beadequate to good for commercial or residential uses.

Zoning and Land Use:

The site is zoned “B”, (Business District) by the City of Indian Rocks Beach. The purposeof this district is to permit a wide variety of commercial and residential developmentincluding retail, office, service stations, restaurants, hotels, motels, mixed use commercial


and residential, and temporary lodging uses. Residential uses include single-familydetached, duplex, and multi-family attached. Maximum density is 18 units per acre.Maximum floor area ratio is 0.55. Maximum building height above 10 foot pilings is 25 feet.Land use is “CG”, (Commercial General). Zoning is compatible with the land use.

Utilities and Services:

Water: Pinellas CountySewer: Pinellas CountyElectricity: Duke EnergyTelephone: VerizonPolice: Pinellas County Sheriff Fire: Pinellas Suncoast Fire and Rescue District

The cost of utilities and services is similar to competing areas within the Tampa Baymarket.

Concurrency:

The enactment of Concurrency Laws in the state of Florida, which became effective March30, 1990, can directly impact on the use of a site. Concurrency is part of the 1985 GrowthManagement Act, which states in part that all of an area's infrastructure which are or willbe affected by the development of a property must be in place or concurrent withdevelopment. Concurrency appears not to be an issue.

Relationship to Surrounding Properties and Uses:

The subject is located in Indian Rocks Beach proximate to Gulf Boulevard and the Gulfbeaches. Single family and multiple family residences are scattered throughout the area. Supporting commercial development is located along Gulf Boulevard, the main north/souththoroughfare. The neighborhood is heavily tourist and recreation oriented due to the longexpanse of beach frontage.

Summary:

Given the size and location of the subject site, it would appear adequately suited forcommercial and/or residential development.


TAX MAP

AERIAL MAP



HIGHEST AND BEST USE

Highest and best use is defined as:

"The reasonably probable and legal use of vacant land or an improved property, which isphysically possible, appropriately supported, financially feasible, and that results in thehighest value."3

Highest and Best Use as Though Vacant

The subject site is located on the east side of Gulf Boulevard between 23rd Avenue N. onthe south, and 24th Avenue N. on the north, in the city of Indian Rocks Beach, PinellasCounty, Florida. The subject site is rectangular in shape and comprises 36,000 square feetor 0.83 acre. The site has 300 feet of frontage along the east side of Gulf Boulevard. Thesite has an additional 120 feet of frontage on both 23rd Avenue N. and 24th Avenue N. Considering the size, shape, topography, and the availability of utilities to the site, manyuses could be physically built on the site.

The site is zoned “B”, (Business District) by the City of Indian Rocks Beach. The purposeof this district is to permit a wide variety of commercial and residential developmentincluding retail, office, service stations, restaurants, hotels, motels, mixed use commercialand residential, and temporary lodging uses. Residential uses include single-familydetached, duplex, and multi-family attached. Maximum density is 18 units per acre.Maximum floor area ratio is 0.55. Maximum building height above 10 foot pilings is 25 feet.

Land use is “CG”, (Commercial General). Zoning is compatible with the land use. Basedon the current zoning and land use, as well as the physical attributes of the site, a legallypermissible use for the subject would be commercial, residential, or mixed usedevelopment.

The subject is located in Indian Rocks Beach on Gulf Boulevard proximate to the Gulfbeaches. Single family and multiple family residences are scattered throughout the area. Supporting commercial development is located along Gulf Boulevard, the main north/souththoroughfare. The neighborhood is heavily tourist and recreational oriented due to the longexpanse of beach frontage.

Commercial property values and residential property values are beginning to stabilize aftersoftening due to the prolonged slump in the local real estate market and the national andlocal economies. The use that would provide the greatest return would be for futuredevelopment with commercial and/or residential building improvements. Therefore, thehighest and best use "as though vacant" is for future commercial, residential, or mixed use development.

Based on the current zoning of the subject site and the market conditions, the highest andbest use of the subject is to hold for future commercial, residential, or mixed usedevelopment as dictated by the market.

3 Appraisal Institute, The Appraisal of Real Estate, Tenth Edition (Chicago: Appraisal Institute, 1992),275.


THE VALUATION PROCESS

The estimate of market value for real property involves a systematic process in which theproblem is defined, the work necessary to solve the problem is planned, and the datarequired; is acquired, classified, analyzed and interpreted into an estimate of value. In thisprocess, three approaches are used by the appraiser to estimate value. They are:

THE COST APPROACH THE SALES COMPARISON APPROACH THE INCOME CAPITALIZATION APPROACH

The cost approach is a method in which the value of a property is derived from creating asubstitute property with the same utility as the subject property. In the Cost Approach, theappraiser must estimate the market value of the subject site as if vacant, by using thedirect sales comparison approach, then estimate the reproduction cost new of theimprovements. Depreciation from all sources is estimated and subtracted from thereproduction cost new of the improvements. The depreciated reproduction cost of allimprovements is then added to the estimated site value with the results being an indicatedvalue by the cost approach.

The sales comparison approach also referred to as the market approach, involves thecomparison of similar properties that have recently sold or similar properties that arecurrently offered for sale, with the subject property. The basic principle of substitutionunderlies this approach. It implies that an informed purchaser would not pay more for aproperty than the cost to acquire a satisfactory substitute property with the same utility asthe subject property in the current market. These properties are compared to the subjectwith regard to differences or similarities in time, age, location, physical characteristics, andthe conditions influencing the sale. The notable differences in the comparable propertiesare adjusted to the subject property to indicate a value range for the property beingappraised. The principle of increasing and decreasing returns is important in identificationof comparables. The principle of contribution is the heart of the adjustment process indetermining the effect that the presence or absence of some characteristic has on the saleprice.

When sufficient sales data is available, these adjustments are best determined by theactions of typical buyers and sellers in the subject`s market place. This value range, asindicated by the adjusted comparable properties, is reconciled into a final indicated valuefor the subject property by this approach.

The income capitalization approach is a process which discounts anticipated incomestreams (whether in dollar income or amenity benefits) to a present worth figure throughthe capitalization process. The appraiser is again faced with obtaining certain data relatedto the subject and comparing it to similar physical, functional and economic properties. Comparable rental information is analyzed to estimate potential gross income (actualand/or comparative) to determine a projected net income stream. The appraiser mustestimate a capitalization rate, either through extraction from the market or using otheravailable techniques. The net income stream is capitalized into an indicated value by thisapproach.

The subject is a vacant site. Vacant land is typically valued using the sales comparisonapproach. Because we are valuing vacant land, only the sales comparison approach isconsidered applicable in the valuation process.


THE SALES COMPARISON APPROACH

The sales comparison approach involves a detailed comparison of the subject propertywith similar properties which have recently sold in the same or competitive market. Thisapproach is based primarily on the principle of substitution. This principle states, whenseveral commodities or services with substantially the same utility are available, the lowerprice attracts the greatest demand and widest distribution. In other words, a prudentinvestor/purchaser would not pay more to acquire a given property in the market,considering that an alternative property may be purchased for less. The five basic stepsin this analysis are listed below:

1. Research the market to identify similar properties for which pertinent sales listingsofferings and/or rental data is available.

2. Qualify the data as to terms, motivating forces, or bona fide nature.

3. Analyze the salient characteristics of the comparable properties in relation to theproperty being appraised, particularly those items relating to date of sale, location,physical characteristics, and condition of sale.

4. Consider all dissimilarities and the probable effect on the price of each sale andderive individual market value indications for the property being appraised.

5. Formulate an opinion of market value from the pattern developed from the foregoinganalysis.

Estimate of Land Value

The valuation of vacant land is typically undertaken by the sales comparison approach. The application of this approach produces a value estimate for land by comparing it withsimilar properties that have recently sold in the same or competitive neighborhoods. Thesale price of these properties tends to set the range of value in which the subject propertywill fall when reduced to an appropriate unit of comparison (price per square foot, per frontfoot, per unit, etc). Refinement of this data, by the comparative process, should lead to alogical estimate of market value as of the date of appraisal.

The reliability of this technique is dependent upon (1) the degree of comparability of eachsale to the subject, (2) market conditions at the time of sale, (3) verification of pertinentdata, and (4) the absence of unusual conditions that influence the sale. A variety of saleswithin the subject's neighborhood were analyzed. Information on those sales consideredto be most comparable to the subject property are set forth in the following pages.

A market investigation was conducted in the subject area to find sales of propertiescomparable to the subject. The most pertinent transactions have been presented on thefollowing pages along with an identifying photograph and summary of important facts.


LAND COMPARABLE NO. 1:

Location: The southeast corner of Gulf Boulevard and 28th

Avenue N., Indian Rocks BeachParcel Number: 01-30-14-42030-002-0010Date of Sale: July 2013Grantor: Michelle Fischetti and Michael MazzaferroGrantee: Ponte Vedra 2008 LLCO.R. Book/Page: 18086/2621Sale Price: $485,000Land Size: 20,625 Sq.Ft., / 0.47 Ac.Price Per Sq.Ft.: $23.52 / Sq.Ft.Price Per Unit: $60,625 / Unit 8 Allowable Units Price Per Unit: $121,250 / Unit 4 Developed UnitsZoning: “B”, (Business) and “RM-2", (Medium Density Multi

Family Residential) by Indian Rocks BeachProperty Type: Vacant Commercial/Residential SiteProperty Rights Conveyed: Fee SimpleTopography: Basically Level Shape: IrregularUtilities: AvailableFinancing: Cash to Seller

Comments: This is the sale of a vacant corner site located on Gulf Boulevard in IndianRocks. The site was previously improved with an older restaurant property. The site waspurchased for redevelopment with a four unit residential townhouse project.



Location: Southeast corner of Gulf Boulevard and 23rd AvenueN., Indian Rocks Beach

Parcel Number: 01-30-14-42030-047-0090Date of Sale: March 2015Grantor: CR Property Acquisitions, Inc. and othersGrantee: Anwar Askar and othersO.R. Book/Page: 18707/0743Sales Price: $350,000Size: 10,715 Sq.Ft., or 0.25 Ac.Price Per Square Foot: $32.66Price Per Unit: $50,000 / Unit 7 Allowable Units Price Per Unit: $58.333 / Unit 6 Approved Units Zoning: “CT”, (Commercial Tourist) by Indian Rocks BeachProperty Type: Vacant Residential SiteTopography: Basically levelShape: RectangularUtilities: AvailableFinancing: Cash to Seller

Comments:

The site has about 120 feet of frontage on Gulf Boulevard and 89 feet of frontage on 23rdAvenue N. The site reportedly has approval for six condominium units. The property’s listprice was $449,000 and the property was listed for 65 days prior to contract. With theexception of motels, Indian Rocks Beach typically does not allow commercial uses on thewest side of Gulf Boulevard.



Location: Southeast corner of Gulf Boulevard and 75th Avenue,St. Pete Beach

Parcel Number: 36-31-15-77994-060-0030 Date of Sale: April 2015 Grantor: T14 Properties, LLCGrantee: SP Beach Investments, LLCO.R. Book/Page: 18764/2423List Price: $412,500Size: 12,385 Sq.Ft., or 0.28 AcresPrice Per Square Foot: $33.31 Price Per Unit: $103,125 / Unit 4 Allowable Units Zoning: “TC-1" , (Town Center Corey) by St. Pete BeachProperty Type: Vacant Commercial/Residential SiteProperty Rights Conveyed: Fee SimpleTopography: Basically LevelShape: Basically RectangularUtilities: AvailableFinancing: Cash to Seller

Comments:

This is the sale of a vacant commercial parcel located at a major signalized corner in St.Pete Beach. The site has 96 feet of frontage on Gulf Boulevard. Traffic counts on GulfBoulevard are in the 23,000 to 25,000 range. The site was purchased by ParadiseDevelopment Group Inc., a local developer.



Location: East side of Gulf Boulevard just north of 163rd Avenue,Redington Beach

Parcel Number: 05-31-15-73908-0010, 0020, 0030, 0040, 0170, 0180,0190, 0200

Date of Sale: December 2014Grantor: Kenom Management , Inc.Grantee: Weekley Homes, LLCO.R. Book/Page: 18635/1606Sale Price: $1,500,000Land Size: 52,272 Sq.Ft., or 1.20 Ac. Price Per Sq.Ft.: $28.70 / Sq.Ft.Price Per Unit: $83,333 / Unit 18 Allowable Units Price Per Unit: $93,750 / Unit 16 Developed Units Zoning: “District 1”, by Redington BeachProperty Type: Vacant Residential SiteProperty Rights Conveyed: Fee SimpleTopography: Basically LevelShape: RectangularUtilities: AvailableFinancing: Cash to Seller

Comments:

This site was purchased for development with eight duplex buildings. The site was listedfor $2,000,000 for approximately one year prior to sale.



Location: Northeast corner of Gulf Boulevard and 135th Avenue,Madeira Beach

Parcel Number: 15-31-15-58320-009-0010Date of Sale: February 2015Grantor: Krystal Clear Properties, LLCGrantee: JEDJTD, LLCO.R. Book/Page: 18667/620Sale Price: $699,000Land Size: 31,798 Sq.Ft., or 0.73 Ac. Price Per Sq.Ft.: $21.98 / Sq.Ft.Price Per Unit: $99,857 / Unit 7 Developed Units Price Per Unit: $99,857 / Unit 7 Allowed Units Zoning: “C-3” and “R-2", by Madeira BeachProperty Type: Vacant Commercial/Residential SiteProperty Rights Conveyed: Fee SimpleTopography: Basically LevelShape: IrregularUtilities: AvailableFinancing: Cash to Seller

Comments:

This site was purchased for development with seven two story homes to be known as EcoVillage of Madeira Beach. The property sold at full list price after only ten days on themarket. Residential development in the C-3 zone warranted a special exception.


COMPARABLE LOCATION MAP



EXPLANATION OF ADJUSTMENTS

Where appropriate, adjustments have been made to the comparables to account formaterial differences from the subject. The adjustment categories included: financing/conditions of sale, market conditions (time), size/shape, location/visibility, utilitiesand zoning/density. The following is an explanation of the adjustments.

As indicated in the Highest and Best Use analysis, it appears the subject could bedeveloped with residential, commercial, or mixed use improvements. The landcomparables used in the analysis could be developed with either residential or commercialuses or a combination of both. There appears to be little difference in per square footprices whether the comparable site was purchased for commercial or residentialdevelopment.

FINANCING/CONDITIONS OF SALE

All of the sales were confirmed with either the grantee, grantor, or an informed party. There were no disclosed under market financing or sale conditions which were believedto have any influence on the sale prices.

MARKET CONDITIONS (TIME)

The land comparables are sales of sites zoned for residential or commercial development. The sales all occurred within a 25 month period and were reported to be arm's-lengthtransactions. Four of the five transactions occurred in the past eight months. Noadjustment for time appears warranted.

LOCATION

Factors which were included in this adjustment category are the general location of thecomparables as compared to the subject. Properties with good visibility and good ingressand egress in exclusive areas typically sell at a higher price per unit.

The subject is situated in a good location on Gulf Boulevard in Indian Rocks Beach.Comparable 1 is considered to have an inferior location based on its limited frontage andwas adjusted upward 15%. Comparables 2, 4, and 5 are located on Gulf Boulevard inbeachfront communities in Pinellas County and are considered to have similar locationalcharacteristics. No adjustments appear warranted. Comparable 3 is located at a signalizedintersection and was adjusted downward 15% for its superior locational characteristics.

SIZE/SHAPE

Size/shape adjustments are made on the basis of the comparables size/shape in relationto the subject. Typically, larger parcels or irregular shaped parcels tend to sell at a lowerprice per unit. Furthermore, smaller parcels are more affordable to a larger number ofbuyers indicating more demand and higher prices for smaller parcels. However, whenlarger parcels are scarce, making assemblage necessary, larger parcels sell at a higherprice per unit. This is because of the time and effort necessary to assemble them. Largerparcels can also be more economically feasible to develop because the fixed developmentcosts can be more easily absorbed.


In review of the comparables and the market, it appears that no adjustment for site size iswarranted. Comparable 1 is a flag shaped parcel that was adjusted upward 10% for itsinferior configuration.

TOPOGRAPHY

All of the sites have topographies suitable for residential construction or commercialconstruction. The comparables have similar topographies and were ready for development. No adjustments for topography appear to be necessary in this analysis.

UTILITIES

All of the comparables like the subject had utilities available to the site and no adjustmentswere necessary.

DENSITY (ZONING)

The subject site is zoned “B”, (Business District) by the City of Indian Rocks Beach. Thepurpose of this district is to permit a wide variety of commercial and residentialdevelopment including retail, office, service stations, restaurants, hotels, motels, mixed usecommercial and residential, and temporary lodging uses. Residential uses include single-family detached, duplex, and multi-family attached. Maximum density is 18 units per acre.

All of the comparables have zonings which allow commercial and/or residentialdevelopment and all of the comparables were purchased for such a use. Therefore, noadjustments are warranted for zoning.

The land comparables allow residential or commercial development or a combination ofboth. The comparables vary in density from 9.59 to 28.00 units per acre. Typically, thedevelopable density of residential land will have a direct relationship with the price persquare foot, i.e., when developed at highest and best use, higher density properties willtend to sell for more per square foot and less per unit.

A review of the comparables confirms this relationship. The comparables appear toindicate that each 1% change in density will result in about a 0.30% direct change in the per square foot prices and a 0.50% inverse change in the per unit prices. Adjustments toeach of the comparables were made accordingly.

CORRELATION AND CONCLUSION

The foregoing comparables have sale prices which were compared on the basis of persquare foot and per unit selling prices. All of the sales are located in the same, or similar,market areas and occurred within an 25 month period of time.

The sales have adjusted per square foot prices between $25.06 and $30.31 with a meanof $28.56 and a standard deviation of $2.04 (7.13%). The sales have adjusted per unitprices between $63,500 and $76,313 with a mean of $73,100 and a standard deviation of$4,868 (6.66%). Approximately equal weight has been applied to each of the comparablesales used in this analysis.


Based on the cited comparables and the improving market, the value of the subject site isestimated to be $30.00 per square foot and $75,000 per unit. These prices are well withinthe range of the comparables and near the approximate mean adjusted prices. Therefore,the value of the subject site is estimated using the following calculations.

36,000 Sq.Ft. X $30.00/Sq.Ft. = $1,080,000

15 Units X $75,000/Unit = $1,125,000

Based on this analysis, the estimated fee simple market value of the subject site, in “as is”condition, as of the effective date of August 7, 2015, is estimated to be:

ESTIMATED MARKET VALUE OF THE SUBJECT SITE - “AS IS” CONDITION($1,100,000)


RECAPITULATION AND FINAL RECONCILIATION

Reconciliation is the analysis of alternative conclusions to arrive at a final value estimate. The Dictionary of Real Estate Appraisal (1989 2nd edition, page 249)published by TheAmerican Institute of Real Estate Appraisers defines reconciliation as: "The step in thevaluation process in which an appraiser analyzes alternative value indications to arrive ata final value estimate."

The estimate of market value for real property involves a systematic process in which theproblem is defined; the work necessary to solve the problem is planned, and the datarequired is acquired, classified, analyzed and interpreted into an estimate of value. Thefollowing is a summary of the value conclusions obtained from the applicable approaches:

ESTIMATED MARKET VALUE (AS IS) $1,100,000

The sales comparison approach involves comparing similar properties that have recentlysold, or similar properties that are currently offered for sale, with the subject. The basicprinciple of substitution underlies this approach. Since we are dealing with vacant land,only the sales comparison approach is applicable.

The five land comparables used to estimate the value of the subject site were consideredto be the most reliable indicators of market value available at this time. Where necessary,adjustments were made for material differences between the comparable and the subject.The sales comparison approach provides a good indication of the value of the subject site.

Based on the cited data and analysis contained in this appraisal report, attachedaddendum and appraisal file, the market value of the subject property, as of the effectivedate of August 7, 2015, is estimated to be:

“AS IS” FEE SIMPLE MARKET VALUEONE MILLION ONE HUNDRED THOUSAND DOLLARS

($1,100,000)

ESTIMATED MARKETING TIME AND EXPOSURE TIME:

We have reviewed the typical marketing times for development sites in the Tampa Bayarea, as well as, discussed the marketing time with knowledgeable commercial brokers. If appropriately priced and marketed, the estimated exposure time for the subject propertyas a vacant site would have been about 6 to 12 months. Marketing time of the subjectproperty is also estimated at 6 to 12 months.


CERTIFICATE OF APPRAISAL:

I certify that, to the best of my knowledge and belief:

- The statements of fact contained in this report are true and correct.

- The reported analyses, opinions, and conclusions are limited only by the reportedassumptions and limiting conditions, and are my personal, impartial, and unbiasedprofessional analyses, opinions, and conclusions.

- I have no present or prospective interest in the property that is the subject of thisreport, and no personal interest or bias with respect to the parties involved.

- We have not performed an appraisal on the property that is the subject of this reportwithin the three-year period immediately preceding acceptance of this assignment.

- I have no bias with respect to the property that is the subject of this report or to theparties involved with this assignment.

- My engagement in this assignment was not contingent upon developing or reportingpredetermined results.

- My compensation for completing this assignment is not contingent upon thedevelopment or reporting of a predetermined value or direction in value that favorsthe cause of the client, the amount of the value opinion, the attainment of astipulated result, or the occurrence of a subsequent event directly related to theintended use of this appraisal.

- My reported analyses, opinions, and conclusions were developed, and this reporthas been prepared, in conformity with the Uniform Standards of ProfessionalAppraisal Practice; and the requirements of the Code of Professional Ethics and theStandards of Professional Practice of the Appraisal Institute. Unless otherwisestated herein, the departure provision does not apply.

- William W. Atkinson and James Kelley have made a personal inspection of theproperty that is the subject of this report.

- No one provided significant real property appraisal assistance to the person signing

this certification.

- The appraiser has preformed within the context of the competency provision of theUniform Standards of Professional Appraisal Practice.

- This report was not based on a requested minimum valuation, a specific valuation,or the approval of a loan.

- The reported analysis, opinions and conclusions were developed, and this reporthas been prepared, in conformity with the requirements of the Code of ProfessionalEthics and Standards of Professional Appraisal Practice of the Appraisal Institute.

- The use of this report is subject to the requirements of the Appraisal Instituterelating to review by its duly authorized representatives.


- As of the date of this report, William W. Atkinson has completed the continuingeducation program for Designated Members of the Appraisal Institute.

- This appraisal recognizes the following definition of value:

Market Value: as defined in Chapter 12, Code of Federal Regulations, Part 34.42(f)is, "The most probable price which a property should bring in a competitive andopen market under all conditions requisite to a fair sale, the buyer and seller eachacting prudently knowledgeably, and assuming the price is not affected by unduestimulus. Implicit in this definition is the consummation of a sale as of a specifieddate and the passing of title from seller to buyer under conditions whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised, and acting in what theyconsider their own best interests;

3. a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in United States dollars or in terms offinancial arrangements comparable thereto; and

5. the price represents the normal consideration for the property soldunaffected by special or creative financing or sales concessions granted byanyone associated with the sale.

Riggins, Atkinson, Combs & Associates, Inc.

William W. Atkinson, MAI, SRA James M. KelleyVice President Associate AppraiserCert Gen RZ1221 Cert Gen RZ2095


ASSUMPTIONS AND LIMITING CONDITIONS

1. The legal description furnished is assumed to be correct. No responsibility isassumed for the accuracy of the legal description, or for matters legal in characternor is any opinion rendered herein as to title which is assumed to be good andmerchantable. It is assumed that the property is free and clear of liens andencumbrances.

2. It is assumed that surveys and/or plats furnished to or acquired by the appraiser andused in the making of this report are correct. The appraiser has not made a landsurvey or caused one to be made and, therefore, assumes no responsibility for theiraccuracy. Drawings in this report are to assist the reader in visualizing the propertyand are only an approximation of grounds and/or building plan.

3. Certain data used in compiling this report was given to the appraiser by the client,his counsel, employees, and/or agent, or from other sources believed to be reliable;however, we do not guarantee the correctness of such data and assume no liabilityor responsibility for its complete accuracy. Should the user of this report be orbecome aware of conditions that would materially alter the conclusions of thisreport, the user agrees to immediately notify the appraiser. The appraiser reservesthe right to modify the report to consider such conditions.

4. The soil and the area the property being appraised appears to be firm and solid,unless otherwise stated. Subsidence in the area is unknown or uncommon but theappraiser does not warrant against this condition or occurrence.

5. Subsurface rights (mineral and oil) were not considered in making this report, unlessotherwise stated. Any riparian rights and/or littoral rights indicated by survey, mapor plat are assumed to go with the property unless easements or deeds of recordwere found by the appraiser to the contrary.

6. The appraiser made a limited visual inspection of the subject property. Theappraisal does not constitute an inspection for compliance with building, fire, zoningor ADA requirements. The appraiser assumes that there are no hidden orunapparent conditions of the property, subsoil or structures which would render itmore or less valuable than otherwise apparently comparable property. Theappraiser assumes no responsibility for such conditions or for engineering whichmight be required to discover such conditions.

7. Possession of this report, or copy thereof, does not carry with it the right ofpublication or reproduction nor may it be used by anyone but the client without priorwritten consent of the client and the appraiser and in any event only in its entirety.

8. This appraisal has been prepared solely for the private use of the client who is listedas the addressee, for the purpose and use intended. No other party is entitled torely on the information, conclusions or opinions contained herein, without writtenconsent of the appraiser. The appraiser is not responsible for the unauthorized useof this report.

9. It is assumed that the property is in full compliance with all federal, state and locallaws and regulations, unless noncompliance is stated, defined and considered inthe appraisal report. It is also assumed that any licenses, consents or otheradministrative approvals, required for the operation of the property, have been orcan be obtained and renewed for any use on which the value estimate is based.


10. It is assumed that the property is under responsible ownership and competentmanagement.

11. The appraiser, by reason of this report, is not required to give testimony in court withreference to the property herein appraised nor is he obligated to appear before anygovernmental body, board or agent unless arrangements have been previouslymade thereof.

12. The distribution of the total valuation in this report between land and improvementsapplies only under the existing program of utilization. The separate valuations forland and improvements must not be used in conjunction with any other appraisaland is invalid if so used.

13. Neither all nor any part of the contents of this report shall be conveyed to the publicthrough advertising, public relations, news, sales or other media without the writtenconsent and approval of the author, particularly as to the valuation conclusions, theidentity of the appraiser or firm with which he is connected, or any reference to theAppraisal Institute, or the MAI designation.

14. We are not expert in determining the presence or absence of hazardoussubstances, defined as all hazardous or toxic materials, wastes, pollutants orcontaminants (including, but not limited to, asbestos, PCB, UFFI, or other rawmaterials or chemical(s) used in construction, or otherwise present on the property.We assume no responsibility for the studies or analyses which would be requiredto determine the presence or absence of such substances or for loss as a result ofthe presence of such substances. The value estimate is based on the assumptionthat the subject property is not so affected. We do, however, recommend anenvironmental audit for the subject property.

15. Acceptance and/or use of this appraisal report constitutes acceptance of the data,analysis, assumptions and limiting conditions contained herein.


ADDENDUM

SUBJECT PHOTOGRAPHS

SUBJECT FRONT VIEW SOUTHEAST ALONG GULF BLVD.

INTERIOR OF THE SITE VIEW SOUTH

INTERIOR OF THE SITE VIEW NORTH

RETAIL PROPERTY AT 23rd AVENUE AND GULF BLVD. VIEW WEST

24th AVENUE VIEW EAST

23rd AVENUE VIEW EAST

GULF BOULEVARD VIEW NORTH

GULF BOULEVARD VIEW SOUTH

William W. Atkinson, MAI, CCIM

Education:

Florida State University 1986, Tallahassee, Florida, Bachelor of Science Degrees in bothFinance and Real Estate.

Courses:

Florida State University Real Estate Feasibility Analysis Real Estate Principles and Practices Real Estate and Its Legal Environment Real Estate AppraisalReal Estate Market AnalysisReal Estate Finance

Appraisal Institute Standards of Professional Practice SPP, Part A (9/94)Standards of Professional Practice SPP, Part B (9/94)Standards of Professional Practice SPP, Part C (10/00)National Uniform Standards of Professional Appraisal Practice (4/07)Business Practices and Ethics (01/08)Real Estate Appraisal Principles 1A1 (10/89)Basic Valuation Procedures 1A2 (3/90)Capitalization Theory and Techniques, Part A 1BA (3/91)Capitalization Theory and Techniques, Part A 1BB (6/91)Case Studies in Real Estate Valuation (11/92)Report Writing and Valuation Analysis (6/93)Non-Residential Demonstration Report (10/94)The Appraiser's Complete Review (2/95)Comprehensive Exam (2/95)

Commercial Investment Real Estate InstituteFinancial Analysis For Commercial Investment Real Estate CI 101 (4/96)Market Analysis For Commercial Investment Real Estate CI 201 (8/96)Decision Analysis For Commercial Investment Real Estate CI 301 (5/96)Course Concepts Review CI 408 (11/96)

Real Estate Education SpecialistsCase Studies In Uniform Standards (5/98)USPAP/Law Update (5/98)

Seminars:

Appraisal InstituteDemonstration Non-Residential Report Writing (3/94) Florida State Law for Real Estate Appraisers (2/04)Appraisal of Nonconforming Uses (6/99)Attacking & Defending an Appraisal in Litigation (6/00)When Good Houses Go Bad (9/01)Appraisals and Real Estate Lending:What Every Banker Should Know (10/01)Appraisal Consulting (3/02)The Technology-Assisted Appraiser (6/02)

Land Valuation Assignments (2/03)Scope of Work: Expanding Your Range of Services (6/03)The Road Less Traveled: Special Purpose Properties (6/05)The Professional’s Guide to the URAR Form (6/05)Florida State Law Update for Real Estate Appraisers (2/10)Appraising High-Value and Historic Homes (2/07)Analyzing Operating Expenses (1/08) Quality Assurance in Residential Appraisals (2/08)Florida Supervisor Trainee Roles and Rules (2/10)Analyzing Distressed Real Estate (2/09)FHA and The Appraisal Process (2/09)7 Hour National USPAP Update Course (3/14)Small Hotel/Motel Valuation (5/09)Real Estate Finance Statistics and Valuation Modeling (2/12)Analyzing Operating Expenses (2/12)Florida State Law for Real Estate Appraisers (3/14)Uniform Appraisal Dataset Aftereffects: Efficiency Vs. Obligation (2/13)General Appraiser Site Valuation and Cost Approach (1/14)

U.S. Department of Housing & Urban DevelopmentHUD Lender Selection Roster Appraiser Training (11/94)

Professional Affiliations/Memberships:

Member of the Appraisal Institute, MAI Designation #10,975 Member of the Commercial Investment Real Estate Institute, CCIM Designation #6,616Member of Indian Rocks Rotary Club

Treasurer (1998 - 2000)Board Member (1998 - 2015)President (2002 - 2003)

Experience:

Special Magistrate, Pinellas County Value Adjustment Board (1997 - 2014)

Vice President, Riggins, Atkinson, Combs & Associates, Inc. (1994-Present)

Staff Appraiser, Residential and Commercial Division - AppraisalFirst, Inc., Clearwater,Florida. (1987 - 1994)

Staff Appraiser, Residential Division - AmeriFirst Appraisal Company, Clearwater, Florida (1986 - 1987)

Licenses:

Licensed Real Estate Broker - State of Florida.State-certified general real estate appraiser RZ1221

QUALIFICATIONS OF APPRAISERJAMES M. KELLEY

GENERAL EDUCATION:

Regis College, Denver, ColoradoDegree: Bachelor of Arts Degree (1970)Major: Psychology

PROFESSIONAL EDUCATION:

Courses: Appraisal Institute

Standards of Professional Practice, Part A (09/94)Basic Valuation Procedures 1A2 (05/85)Real Estate Appraisal Principles 1A1 (12/81)HP-12C Calculator Course (1/05)Small Hotel/Motel Valuation : Limited Service Lodging (1/05)The Cost Approach to Commercial Appraising (1/15/05)Feasibility, Market Value, Investment Timing: Option Value (12/15/05)Operating Expenses (11/03/2007)Appraising From Blueprints and Specifications (11/09/07)Nursing Facilities (8/31/08)Real Estate Finance, Statistics, and Valuation Modeling (2/10/10)

Courses:Appraisal Board Course III (02/93)Income Capitalization (1/05)

LICENSES:

State-certified general real estate appraiser RZ2095

SERVICE AREAS:

Pinellas, Hillsborough, Pasco, Polk, Hernando Counties

REAL ESTATE AND APPRAISAL EXPERIENCE:

Staff Appraiser, Commercial Division, Riggins, Atkinson, Combs & Associates, Inc.,Clearwater, Florida (June 1994 - Present)

Staff Appraiser, Commercial Division, AppraisalFirst, Inc., Clearwater, Florida ( June 1994)

Staff Appraiser, Tropical Realty Appraisal Services, Port Richey, Florida

Staff Appraiser, Pardue, Heid Church, Smith and Waller, Tampa, Florida

Staff Appraiser, Henderson Appraisal, Tampa, Florida

Documents

This appraisal has been prepared for the sole use by ... · Indian Rocks Beach, Pinellas County, FL 33785 PREPARED FOR Attention: Sean P. Griffin Real Estate Specialist Pinellas County