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PH #1 New Day Parkway land swap
/6470_t_\ CHUBBUCK 1 0 0 H 0 Memo To: Honorable Mayor & City Council Community Services Department 290 E Linden Ave., Chubbuck, ID 83202 208.237.2430 www.CityofChubbuck.us From: Devin Hillam, Community Services Director Date: October 8, 2024 Re: Consideration of equal value land exchange of City property on New Day Parkway for land north of Capell Park, and declaring a value As part of the New Day Parkway / Siphon Road expansion project, lands on current New Day Parkway west of Whitaker Road were acquired in their entirety. Now that the road is constructed, remaining land is available which is zoned C-1 and could see a higher beneficial use in the future for commercial purposes. The City does not have plans for this land and being non -landscaped and immediately adjacent to residences and an existing busy arterial, it is a property which requires regular maintenance by city staff to keep weeds mowed and trash cleaned. 3 vsmgMqKEL,ippon a FIT' -- F' IMF Image above shows the 2.05 acres of usable land owned by the City of Chubbuck suggested for the land exchange B:\Community Services\Director\Reports to Council\New Day Parkway land swap_Memo to Council 10.8.2024.docx 1 Across the railroad tracks is an active development called Legacy Park. Recognizing a desire by the tennis / pickleball community to someday grow the racquet facilities at Capell Park and to have an area for immediate recreational or event -type uses, such as a Christmas tree bonfire area or for additional parking area to support the softball and tennis events, I approached the developer to see if he would consider a land swap. The developer was interested and obtained appraisals for both the City property and for the area that the City was interested in. The land being discussed is not the property which was obtained through eminent domain and which went through a court settlement. Although this property will still require maintenance, it will not be as time consuming or critical since it is not immediately adjacent to established residents nor it is located along a busy arterial street. If exchanged, staff intends to utilize some of the asphalt millings between it and the tennis courts to create a hard surface for parking and other vehicular access (such as dropping on Christmas trees after the holidays). _ - v i _Rcan ukeL i — 1 1 �,,,� - hesapea e•L �R'y7• 3'�33�E i � - - Gal Iowa • r• f- 4= - Image above shows the 2.05 acres of land owned in the Legacy Park development owned by Brandon Ratliff suggested for the land exchange Idaho Code Title 50 Chapter 14 governs the sell or exchange of city properties across the state and the City is permitted to manage its real property in ways which the City deems to be in the public interest; for land exchanges, properties must be of equal value 50-1403 pursuant to terms which shall be a matter of public record. Attached to the memo are the appraisals for both properties for that public record. If the Council wishes to proceed by finding this exchange to be in the public's interest, the first step, which staff is recommending, is to accept the findings of the appraisal and to declare the value of the City property to be $445,000. Following that action, the next step is to direct the City Clerk to publish notice of intent to exchange the property in the newspaper at least 14 days prior to the date of a hearing, and to hold a public hearing to take comment on the exchange. After the hearing, the Council may authorize the exchange of the property. In this instance, because the plat will need to be amended, the developer would amend and record the final plat and then the exchange would occur. B:\Community Services\Director\Reports to Council\New Day Parkway land swap_Memo to Council 10.8.2024.docx 2 Attached: 1- Appraisal Report- City Property 2- Appraisal Report- Brandon Ratliff Property 3- Idaho Code Title SO Chapter 14 B:\Community Services\Director\Reports to Council\New Day Parkway land swap_Memo to Council 10.8.2024.docx ■ 11110KIRKHAM s on ""A-7 ki Appraisals (Bus) (208)233-4132 P.O. Box 2503 Kirkhamappraisal@gmail.com Pocatello, Idaho 83206 ATTACHMENT #1: CITY PROPERTY APPRAISAL REPORT AN APPRAISAL REPORT OF A 2.05+/- Acre Tract of Vacant Commercial Land LOCATED AT TBD New Day Parkway Chubbuck, Idaho 83202 CLIENT LandQuest illgKIRKHAM Appraisals P.O. Box 2503 Pocatello, Idaho 83206 (Bus) (208)233-4132 March 14, 2024 Mr. Brandon Ratliff LandQuest Dear Brandon Ratliff, Re: TBD New Day Parkway Chubbuck, Idaho 83202 At your request, we have appraised a real property interest for the above real estate. Our objective was to form one or more opinions about the market value for a 100% ownership interest in the subject property's fee simple estate assuming no liens or encumbrances other than normal covenants and restrictions of record. The subject property physically consists of two autonomous, vacant parcels creating one tract of land. The tract of land consists of a total of 2.98+/- acres with what appears to be two access points from New Day Parkway based on a site concept plan provided by the client. Of the 2.98+/- acres, only about 2.05+/- acres is usable because of ROW easements along the north side of the property. The land is in a developing area with office, medical office, industrial, residential, and vacant land uses, off a new I-15 Interstate Interchange. This tract of land is zoned "C-1" Limited Commercial by the City of Chubbuck. This valuation contains analyses, opinions, and conclusions along with market data and reasoning appropriate for the scope of work detailed later herein. It was prepared solely for the intended use and intended user(s) explicitly identified in the attached report. Unauthorized users do so at their own risk. The appraisal is communicated in the attached document, which conforms to the version of the Uniform Standards of Professional Appraisal Practice (USPAP) in effect on this report's preparation date of March 14, 2024. This letter is not an appraisal report hence it must not be removed from the attached 90 -page document. If this letter is disjoined from the attached appraisal report, then the value opinions set forth in this letter are invalid because the analyses, opinions, and conclusions cannot be properly understood. In general, valuation of the subject property involves no atypical issues. All value opinions are affected by all the information, extraordinary assumptions, hypotheses, general limiting conditions, facts, descriptions, and disclosures stated in the attached appraisal report. After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof firmly supports the following final value opinion(s) for the subject property as of March 11, 2024: $445,000 Market Value "As Is" Thank you for your business. Let us know how we may further serve you. Brian Kirkham, MAI Certified General Appraiser Idaho License CGA -3486 License Expiration Date: 5/9/2024 Table of Contents Overview....................................................................................................... l SalientInformation........................................................................................................ 1 NoteworthyIssues......................................................................................................... 1 Scopeof Work..............................................................................................2 Scopeof Work...............................................................................................................2 Introduction.............................................................................................................. 2 Assignment Elements................................................................................................ 2 Relevant Characteristics.......................................................................................... 4 Extent of Services Provided...................................................................................... 5 Other Intended Use Considerations......................................................................... 5 MiscellaneousMatters.............................................................................................. 5 AppraisalDevelopment............................................................................................ 6 Concept Explanations............................................................................................... 6 Scopeof Work Limitation............................................................................................. 9 Report Reliance & Use Restrictions.............................................................................. 9 Scope of Work Exclusion - Insurable Value ...............................................................10 Extraordinary Assumptions & Disclosures.................................................................. l l Hypothetical Conditions..............................................................................................12 Personal Property & Intangibles..................................................................................12 Definition of Market Value.........................................................................................13 Definition of Real Property Estates.............................................................................14 Non -Disclosure State...................................................................................................16 Assemblage..................................................................................................................16 Disclosures..................................................................................................17 Professional Standards.................................................................................................17 Competency.................................................................................................................17 AreaData...................................................................................................18 RegionalMap..............................................................................................................18 NearbyLand Uses........................................................................................................ 34 Pocatello/Chubbuck Residential Market Analysis...................................................... 35 Regional Commercial Market Data.............................................................................37 SubjectProperty........................................................................................41 Identification of the Property.......................................................................................41 LegalDescription.........................................................................................................41 AerialView..................................................................................................................42 SoilsMap.....................................................................................................................43 TopographyMap......................................................................................................... 44 SaleHistory.................................................................................................................48 FloodHazard............................................................................................................... 48 RealEstate Taxes.........................................................................................................48 Zoning.......................................................................................................................... 48 Zoning.......................................................................................................................... 49 EnvironmentalRisks....................................................................................................50 SubjectProperty.......................................................................................................... 51 SubjectSite..................................................................................................................51 Analyses& Conclusions............................................................................52 ValueIntroduction.......................................................................................................52 RealEstate Cycles....................................................................................................... 53 Highestand Best Use................................................................................................... 54 LandValue.................................................................................................................. 60 Introduction............................................................................................................ 60 Summary of Land Sales.......................................................................................... 66 Land Sales Location Map....................................................................................... 67 Analysis & Conclusions.......................................................................................... 69 ValueSummary........................................................................................................... 71 ExposureTime.............................................................................................................72 Contingent and Limiting Conditions ........................................................................... 73 Certification................................................................................................................. 80 Addenda...................................................................................................... 82 DigitalImages.............................................................................................................. 82 Technical Qualifications.............................................................................................. 83 EngagementLetter....................................................................................................... 84 CopyrightProtection.................................................................................................... 90 Endof Report............................................................................................................... 90 Overview • . Salient Information Property Type Vacant Tract of Commercial Land Real Estate Appraised TBD New Day Parkway Chubbuck, Idaho 83202 County Bannock Estate Valued 100% of the Fee Simple Estate Client LandQuest Client File Number 24-985 Most Likely Buyer Owner -User March 11, 2024 Effective Value Date (point in time that the value applies) Report Date (date the report is transmitted to client) March 14, 2024 Land Size (Usable) 2.05+/- Acres or 89,298+/- square feet Flood Hazard Zone X Zoning Classification "C-1" by the City of Chubbuck Highest & Best Use As Though Vacant Commercial Final Value Conclusion(s) $445,000 Market Value "As Is" Noteworthy Issues The subject property physically consists of two autonomous, vacant parcels creating one tract of land. The tract of land consists of a total of 2.98+/- acres with what appears to be two access points from New Day Parkway based on a site concept plan provided by the client. Of the 2.98+/- acres, only about 2.05+/- acres is usable because of ROW easements along the north side of the property. The land is in a developing area with office, medical office, industrial, residential, and vacant land uses, off anew I-15 Interstate Interchange. This tract of land is zoned "C-1" Limited Commercial by the City of Chubbuck. No atypical factors significantly affect value. The real estate appraised is generally typical for this type of property in this locale. 24-985 Kirkham Appraisals Inc. Page 1 Scope of Work ... Scope of Work Introduction The Uniform Standards of Professional Appraisal Practice (USPAP) defines scope of work as "the type and extent of research and analysis in an assignment". Scope of work includes, but is not limited to: ➢ the extent to which the property is identified; ➢ the extent to which tangible property is observed; ➢ the type and extent of data researched; and ➢ the type and extent of analyses applied to arrive at opinions or conclusions. Assignment Elements The purpose of this assignment (the problem to be solved) is to form one or more opinions about value. This purpose necessitates identification of seven assignment elements listed below. 1. Client Information Client's Name * * Client's Company Name Appraiser(s) Engaged By Client's Interest In Property Appraised 2. Other Intended Users 3. Intended Use Of Report (To aid) 4. Value Opinion(s) Developed Standard / Definition Of Value Used To Form The Value Opinion(s) ** The client is always an intended user. Mr. Brandon Ratliff LandQuest The Client Potential Buyer None Decisions By A Potential Buyer Market value Advisory Opinion 30 of USPAP, which is the same definition as the one in FIRREA. 24-985 Kirkham Appraisals Inc. Page 2 Scope of Work Assignment Elements 5. Key Dates Effective Value Date (point in time the value applies) Date Property Appraised Was Observed By One Or More Appraisers Signing This Report 6. Assignment Conditions Extraordinary Assumptions Hypothetical Conditions Jurisdictional Exceptions Expected Public or Private On -Site or Off - Site Improvements Affect Value Assemblage of Estates or Component Parts Affects Value Other March 11, 2024 Land Observed March 11, 2024 One Or More Apply, Detailed Later Herein None Used None Used Not Expected Not Expected None Used 24-985 Kirkham Appraisals Inc. Page 3 Scope of Work Relevant Characteristics The seventh assignment element is relevant characteristics about the property appraised. These characteristics are typically categorized as physical, legal, and economic. Physical attributes of the property appraised are presented later in the Subject section of this report. Some characteristics are identified below. Atypical issues are listed in the Noteworthy Issues section and may be further detailed elsewhere herein. Unless specifically stated otherwise, the estate appraised (listed below) assumes no adverse leases, liens or encumbrances other than normal covenants and restrictions of record. 7a. Physical Existing Property Use Property Use Reflected In One Or More Value Opinions Sources of Information About the Property Appraised Included 7b. Legal Category Of Property Appraised Estate(s) Appraised Legal Issues Considered Environmental Concerns 7c. Economic Effect Of Lease(s) On Value Cost Information Type of Reconstruction Cost Used Source of Reconstruction Cost Information Vacant Land Vacant Land Just An Exterior Observation; Online Public Records; Public Records in Government Office Real Property Fee Simple No Atypical Legal Issues No Known Environmental Concerns No Leases Hence Not Applicable Not Applicable Not Applicable 24-985 Kirkham Appraisals Inc. Page 4 Scope of Work Extent of Services Provided Number of Final Value Opinions Developed Value Opinion(s) Reflect the Worth Of the Property Appraised Extent Of Report Preparation Other Reporting Requirements Extent Of Data Research Data Sources Documents Considered Data Verification Extent Of Subject Observation by One Or More Appraisers Signing Report Other Intended Use Considerations Client's Prior Engagement Of Appraisal Services Loan To Value Ratio Atypical Issues Assignment Complexity FIRREA Compliance Insurable Value Miscellaneous Matters Scope of Work Agreement 6 As Is An Appraisal Report Not Applicable Extensive Local MLS; Private Data Provider Service; Public Records at Gov't Office(s); Public Records on Gov't Website(s); Online Public Records; Other Appraisers; Real Estate Sales Agents; Buyers and / or Sellers; Landlords and / or Tenants None Direct and Indirect Methods Moderate Land Viewing Specifics of this viewing, if any, are detailed in the Extraordinary Assumptions & Disclosures section of this report. Never Not Applicable No Atypical Issues Typical Complexity FIRREA Not Applicable Insurable Value Is Not An Intended Use Agreement in Addenda 24-985 Kirkham Appraisals Inc. Page 5 Scope of Work Appraisal Development Appraisal development is the extent of research and analyses that produce one or more credible opinions of value for one or more specifically identified intended users and an explicitly stated intended use. In this context, credible is defined as "worthy of belief'. Depending upon the intended use, intended users, and agreements between the appraiser and the client, the appraisal development process may include several, but not necessarily all of the following tasks. ➢ observation of the property appraised ➢ research for appropriate market data ➢ data verification ➢ consideration of influential market area, physical, economic, and governmental factors ➢ determination of the subject's highest and best use(s), if appropriate ➢ development of one or more applicable approaches to value ➢ reconciliation of value indications ➢ preparation of this report In most cases, the core valuation process begins with a highest and best use analysis. This is essential because it establishes a framework for the proper selection of comparables. Cited comparables should have the same highest and best use as the property appraised. 24-985 Kirkham Appraisals Inc. Page 6 Scope of Work Appraisal Development If some property modification like new construction is contemplated, a feasibility analysis may be appropriate. In some cases, feasibility may simply be justified by inferred market evidence like low vacancy or rising rents. According to USPAP, all approaches that are applicable to the interest being appraised and necessary to produce credible results must be developed. The type of highest and best use; extent of feasibility considered; and the relevance of each major approach are listed below. Highest and Best Use Feasibility Analysis (a more detailed study separate from highest & best use) Cost Approach Sales Comparison Income Approach An Inferred Demand Analysis Separate Feasibility Analysis Not Developed Not Applicable And Not Included In Report Applicable And Included In Report Not Applicable And Not Included In Report Quoting "The Appraisal of Real Estate" Thirteenth Edition published by the Appraisal Institute, page 186 says "Highest and best use analysis and feasibility analysis are interrelated, but feasibility analysis may involve data and considerations that are not directly related to highest and best use determinations. Such analyses may be more detailed than highest and best use analysis, have a different focus, or require additional research. " Applicable and necessary approaches were selected for development after consideration of available market data, intended use, and intended user(s). An approach considered not applicable was omitted because this methodology is not appropriate for the property interest being appraised, or sufficient data to properly develop the approach was not available. Any approach judged not applicable, yet included in this report, was developed solely at our client's request. Data used to develop an inapplicable but included approach has a low to nil degree of comparability to the subject. Hence, no emphasis was given an approach deemed not applicable but included. Furthermore, no liability or responsibility is assumed for an approach considered not applicable but included at the client's request. 24-985 Kirkham Appraisals Inc. Page 7 Scope of Work Concept Explanations Intended use and all intended user(s) should be weighed heavily during the scope of work decision. A single intended user who frequently engages appraisal services is likely very knowledgeable about the appraisal process. For this type user, the appraisal development and reporting for less complex property types might be toward the lower end of the spectrum. By contrast, multiple intended users, especially those with opposing motivations, likely need extensive appraisal development and reporting. Litigation is a prime example when a thorough appraisal development and detailed reporting is warranted. A loan to value ratio reflects risk. For commercial -grade loans, ratios over 75% are generally regarded as risky. If a contemplated loan is viewed as risky, then the extent of appraisal development and the level of report detail should be more comprehensive. Similarly, more complex properties generally warrant more thorough analyses and more extensive report details. Prior engagement of appraisal services by a client implies a level of awareness about the appraisal process. A greater awareness may justify a less thorough level of report detail whereas the opposite is true for an individual who has never engaged an appraisal. A Jurisdictional Exception is an assignment condition, which voids a portion of USPAP that is contrary to law or public policy. When a Jurisdictional Exception applies, only the contrary portion is void. The remainder of USPAP remains in full force and effect. Jurisdiction Exceptions always shrink USPAP, not expand it. Data verification affects reliability. Direct data verification confirms information used in the report with one or more parties who have in-depth knowledge about physical characteristics for the property being appraised, or related financial details. Indirect verification employs information obtained from a secondary source like a data reporting service, a multiple listing service, or another appraiser. Direct verification is generally more time- consuming and costly, but also more reliable. Information from all data sources was examined for accuracy, is believed reliable, and assumed reasonably accurate. However, no guaranties or warranties for the information are expressed or implied. No liability or responsibility is assumed by Kirkham Appraisals Inc. or the appraiser(s) for any inaccuracy from any seemingly credible information source. 24-985 Kirkham Appraisals Inc. Page 8 Scope of Work Concept Explanations A statement about observation of the subject property by the appraiser(s) is listed above. If the subject was observed, this viewing was not as thorough as a professional property inspection. A professional inspector determines the precise physical condition, remaining useful life, and operability of major building components like the structural system, roof cover, electrical system, plumbing, and heating plant. Inspectors typically do not ascertain size of the building, or characteristics of the land. By contrast, an appraiser commonly ascertains both land and building size. Ordinarily, appraisers do not determine operability, or remaining useful life of building systems. An appraiser typically views real estate to determine only general attributes like physical condition of the building as a whole, site topography and access, building size, construction quality, floor plan, and functionality of the property as a whole. For this appraisal, no probes, investigations, or studies were made to discover unapparent, adverse physical features. Highest and best use analyses can be categorized into two groups - inferred and fundamental. A fundamental analysis is quantified from broad demographic and economic data such as population, household size, and income. Supply is inventoried. Subject specific characteristics are considered. Then, the relationship between supply and demand is weighed to determine a specific highest and best use for the subject. An inferred analysis uses local trends and patterns to infer a general highest and best use for the subject. For an inferred analysis, market dynamics that might be considered include prices, market exposure times, rents, vacancy, and listings of similar real estate. Inferred analyses emphasize historical data while fundamental analyses are based on future projections. The kind of highest and best use analysis utilized in this assignment is listed above. Scope of Work Limitation All readers of this report should be aware the foundation, for conclusions communicated herein, was based on and limited to an inferred market analysis, not a fundamental market study. Our scope of work agreement with our client does not include a detailed fundamental analysis. A fundamental analysis forecasts demand from broad demographic and economic data like population and income. Existing supply is inventoried. Then the relationship of supply and demand is weighed to determine net demand. An inferred analysis is based on local trends and patterns from which inferences are made. Sales, listings, marketing intervals, and/or price change for other similar land infer there is adequate demand for the subject parcel at a price level congruous with this data. If the client desires an in-depth analysis regarding the subject's marketability, potential alternate uses, or a numeric demand analysis, it is suggested a detailed fundamental market analysis be prepared. Report Reliance & Use Restrictions No liability is assumed, expressed, or implied by Kirkham Appraisals Inc., or the appraiser(s) for unauthorized use of this report. Only those persons, parties, entities, companies, corporations, partnerships, associations, or groups that are explicitly identified as an intended user on page 2 may rely on, and use this report. There are no implied, suggested, inferred, consequential, or indirect intended users of this report. Unauthorized users should not use, or rely on any portion of this document. Unauthorized users do so at their own risk and peril. 24-985 Kirkham Appraisals Inc. Page 9 Scope of Work Exclusion - Insurable Value The cost approach may or may not have been developed herein. Unless explicitly stated otherwise, the cost approach was developed solely to support the subject's market value. Use of this appraisal, in whole or part, for another purpose is not an expected intended use. Nothing in this appraisal should be used, or relied upon to determine the amount or type of insurance coverage to be placed on the subject property. The signatory / signatories to this report assume no liability for, and do not guarantee that any insurable value inferred from this report will result in the subject property being adequately insured for any loss that may be sustained. Since labor costs, material costs, building codes, construction intervals, and governmental regulations are constantly changing, the cost approach may not be a reliable indication of replacement or reproduction cost for any date other than this report's effective value date. 24-985 Kirkham Appraisals Inc. Page 10 Extraordinary Assumptions & Disclosures An extraordinary assumption is defined by the Uniform Standards of Professional Appraisal Practice (USPAP) to be "an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinion or conclusions". Extraordinary assumptions presume as fact otherwise uncertain information. In other words, this type assumption involves uncertainty about an underlying premise. An example is a survey that displays a lot size. If the lot size is later found to be much smaller, then the value conclusion may be negatively affected. USPAP Standard Rule 1-2(f) requires the identification of all extraordinary assumptions that are necessary for credible assignment results. This appraisal employs the following extraordinary assumptions. ➢ Features of the subject site such as legal description, dimensions, size, etc. were obtained from publicly available sources. All information taken therefrom is assumed reasonably correct. ➢ Observation of the subject was limited to a moderate viewing of the entire property. It is assumed the land has no subsoil defects. No soiling borings were made. Furthermore, the appraiser(s) did not attempt to study, dig, probe, investigate, detect, remove materials, or discover unfavorable physical features on, above, or below the ground. ➢ Real estate tax information for the subject was obtained from a reputable online source, so it is assumed reasonably correct. Moreover, this information is assumed the most recent that is expeditiously available to the public. ➢ A public water system and public sewer main are connected to the subject structure, or available near the subject's lot lines. This appraisal assumes these systems possess sufficient capacity to serve the intended use of the subject improvements, if any. This appraisal also assumes the water is potable and non -contaminated. If these systems were inadequate to serve the subject's intended use, then the subject's value and marketability would be adversely affected. ➢ Assumptions and presumptions discussed in the Noteworthy Issues section of this report, if any, are incorporated by way of reference into these Extraordinary Assumptions & Disclosures. ➢ A recently issued title policy was not furnished to the appraiser(s). If a value -impairment is identified or suggested in a title policy, another professional report, or some other document, this appraisal does not address issues that are significantly atypical for a valuation of this type property unless specifically identified in the Scope of Work and/or Noteworthy Issues section of this report. The above extraordinary assumptions as well as other assumptions anywhere herein are integral premises upon which the conclusions in this document are based. If any of these assumptions are later found to be materially untrue or inaccurate, then this report's assignment results may or may not be affected. 24-985 Kirkham Appraisals Inc. Page 11 Hypothetical Conditions USPAP defines a hypothetical condition as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis." Hypothetical conditions assume conditions that are contrary to known fact. An illustration is the current valuation of a proposed home. For the purpose of a rational analysis, it is assumed the home exists on the effective value date, but it is known the home is nonexistent. Another example is a new zoning classification, that a property does not have today, but the new zoning is assumed for the purpose of a logical current valuation. Uncertainty is not involved with a hypothetical condition. An essential premise underlying the valuation is known not to exist on the effective value date. USPAP Standard Rule 1-2(g) requires the identification of all hypothetical conditions that are necessary for a credible value opinion. This appraisal employs no hypothetical conditions. Personal Property & Intangibles Personal property is movable and not permanently affixed to the real estate. Examples of personal property are freestanding ranges, refrigerators, tables, desks, chairs, beds, linen, silverware, hand tools, and small utensils. An intangible is a nonphysical asset like franchises, trademarks, patents, goodwill, and mineral rights. Personal and intangible property included in this appraisal's value opinion, if any, is considered typical for this type real estate, yet insignificant to the value opinion. Therefore, non -realty is not itemized or valued herein. Moreover, this report's final value conclusion(s) excludes unaffixed equipment, detached trade fixtures, and chattel unless specifically stated to the contrary. 24-985 Kirkham Appraisals Inc. Page 12 Definition of Market Value The definition of market value is used in all federally regulated transactions that exceed a minimum amount. This definition is mandated by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. The exact same definition was published in the Federal Register several times by different federal agencies. Some printings are: 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; and 59 Federal Register 29499, June 7, 1994.) Federal agencies publishing the exact same definition include the • Office of the Comptroller of the Currency (OCC) as 12 CFR 34, subpart C • Federal Reserve Board (FRB) as 12 CFR 225, Subpart G • Federal Deposit Insurance Corporation (FDIC) as 12 CFR 323.2, Definition (g) in 55 Federal Register, 33,888 August 20, 1990, Effective September 19, 1990. • Office of Thrift Supervision (OTS) as 12 CFR 564 • National Credit Union Administration (NCUA) as 12 CFR 722 The exact same definition was again published jointly by the OCC, OTS, FRS, and FDIC on page 61 of the "Interagency Appraisal and Evaluation Guidelines ". These guidelines were published in the Federal Register on December 10, 2010 as Volume 55, page 77472. All the above citations defined market value as: "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • buyer and seller are both typically motivated; • both parties are well informed or well advised, and acting in what they consider their own best interests; • a reasonable time is allowed for exposure in the open market; • payment is made in terms of cash in U.S. dollars or in terms offinancial arrangements comparable thereto; and • the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. " Virtually the same definition is also cited in Advisory Opinion 30 in the Uniform Standards of Professional Appraisal Practice (USPAP). 24-985 Kirkham Appraisals Inc. Page 13 Definition of Real Property Estates One or more of the following underlined legal estates or interests are valued in this report. Definitions of three estates, quoted immediately below, are from The Dictionary of Real Estate Appraisal, 6th Edition; published by the Appraisal Institute, copyright 2015. Fee Simple Estate "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. " Leased Fee Estate "The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires." Leasehold Estate "The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease." The words "Leased Fee Estate" constitute a real estate term. This term is not defined in Black's Law Dictionary, the Deluxe Eight Edition. However, leased fee estate is defined by USLegal.com as: "an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right to repossession at the termination of lease." In effect, the definitions of "lease fee estate" by the Appraisal Institute and USLegal.com are equivalent. Chicago Title Insurance Company, one of the largest in the country, does not use the term "Lease Fee Estate" in their title insurance policies. Chicago Title does insure the "Fee Simple Estate Subject to the Leases". For all practical purposes, the terms "Leased Fee Estate" and "Fee Simple Estate Subject to the Leases" are equivalent. Market value of the leased fee estate represents the worth of real property to the landlord (the lessor) as encumbered by terms set forth in one or more leases. A leasehold estate is the tenant's (the lessee's) interest in real property. A lease is an encumbrance because it limits or precludes the landlord's right of use. If a property is unencumbered, then usage of the term "fee simple estate" could be strictly or narrowly interpreted to mean the property is not encumbered by lease. If there are no leases for a multitenant facility, then the building has no lease income. Under this interpretation, the value of the fee simple (VFS) would be less than the value of the leased fee (VLF). Accordingly, the VFS < VLF because lease -up costs must be paid by a buyer to find tenants. In effect, total lease -up cost would constitute a penalty to the property's value imposed by a buyer. Components of a total lease -up cost include leasing commissions, rent loss, concessions, tenant improvements, any other cash expenditures, and buyer incentive to undertake the risk of lease -up. 24-985 Kirkham Appraisals Inc. Page 14 Definition of Real Property Estates According to the Appraisal Institute course General Appraiser Income Approach, Part 2 - page 231, there are two interpretations of the term "fee simple estate". A second interpretation for fee simple estate is a value -oriented definition used by many real estate appraisers. For valuation purposes, market value of the fee simple is the worth of the property assuming it is already leased at market rent to a level of stabilized occupancy. Under this interpretation, the VFS ? VHF because lease -up costs to find tenants are already paid. An extremely important concept in the valuation of leases is the relationship between market rent or income (IFS) and contract rent, the rent stated in a lease (IAF). If the contract rent is below market rent (IAF < IFS), the tenant enjoys an advantageous position called a positive leasehold interest. Then, the value of the leased fee is usually less than the value of the fee simple (VLF < VFS). If contract rent exceeds market rent (IAF > IFS), then the landlord has an advantage while the tenant has an unfavorable position called a negative leasehold interest. When contract rent equals market rent, then the numerical value of these two estates is equal but the rights of each estate are distinctly different. In essence, the difference interpretations for the fee simple estate involve lease -up costs. If fee simple is interpreted to mean no leases encumber the property, then a buyer of a multitenant facility would incur lease -up costs. These cost would likely be substantial so a prospective buyer would penalize the property by the amount of the total lease - up cost, which is detailed above. If fee simple is interpreted to mean the value of real property already leased up to stabilized occupancy at market rent, then no lease -up is necessary so no lease -up penalty is appropriate. For valuation purposes in this report, three estates are defined below. • Market value of the fee simple estate for a single -user property like a one -user building or vacant land represents the worth to the most probable buyer via the sales comparison approach. Income generation on a rental basis is not an important factor to this buyer. Property suitability for the buyer's own use or use control are the primary purchasing criteria. Lease -up costs are not relevant. In this context, fee simple means the property is not encumbered by lease. • The fee simple estate for a multiple-tenantfacility is different from the one immediately above. A different interpretation is appropriate for a building designed to generate real estate rental income like a shopping center or apartment building. This estate for this type property is defined as the worth to the most probable buyer assuming the property is already leased to a level of stabilized occupancy at normal market terms including market rent. Lease -up costs are assumed already paid so a lease -up penalty is not appropriate. • An investment grade, leased, single -user building is best valued in a fashion that is similar to a multiple - tenant property. Hence, the interpretation for fee simple in the immediately preceding paragraph is best for an investment grade, leased, single -user building. • Market value of the leased fee estate is defined as the worth of real property to its current owner as encumbered by terms specified in one or more leases. • Lastly, a leasehold estate is defined as one tenant's interest in real property as defined by a lease. These definitions are crucial valuation concepts in this report. 24-985 Kirkham Appraisals Inc. Page 15 Non -Disclosure State Idaho is a non -disclosure state. This means essential information like grantor, grantee, sale prices and sale dates for real estate transactions are not listed in public records. Hence, appraisers must gather key details from parties involved who have no incentive to cooperate. Often appraisers are compelled to obtain the information from secondary sources. This lessens reliability of the data and lengthens the time required to complete a proper appraisal. Kirkham Appraisals Inc. discloses it made reasonable attempts, within the context of the scope of work, to obtain all key information from seemingly reliable sources; but common sense suggests some data may not be completely accurate. Assemblage USPAP Standard Rule 14(e) requires an analysis of the assemblage of various estates or component parts that affect value. In this case, no assemblage is expected so value is not affected. 24-985 Kirkham Appraisals Inc. Page 16 Disclosures* • • Professional Standards All leading professional appraisal organizations, the U.S. Congress, all state legislatures, and numerous legal jurisdictions recognize the Uniform Standards of Professional Appraisal Practice (USPAP), promulgated by the Appraisal Foundation. Revised biennially to keep it contemporary, these standards set forth ethical practices and proper procedures for a competent appraisal. This appraisal fully complies with all relevant portions of the USPAP version in effect on the report date. It also complies with the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), a federal law. The report date is shown in the Salient Information. Competency The person signing this report is licensed to appraise real property in the state the subject is located. I affirm I have the experience, knowledge, and education to value this type property. I have previously appraised similar real estate. 24-985 Kirkham Appraisals Inc. Page 17 - 1 -ur,-. •ldahc falls *Ammar 4 OBlacUcct •-fort Hall � -L'1- _t•w r =4 y : _ 'R- Subject Property 'OAbercleen a - - iFoUatello }10.*La,•a Hot Springs, Oesn- Oalnno& County, 1D 46 6anno& County, 1D (16005) Geoglapfiy; County Prepared by Esri 4� I �i3G1�4� 5 nad it 24-985 Kirkham Appraisals Inc. Page 19 Iresn- Bannock County, Id 46 Prepared by Esn BannockCaunty, IO (1504.5} Geography; County Sarrno& Count.,. Population 2014 Population 82rS39 2024 Papulation 87,018 2023 Population 89r078 2028 Papulation 90,474 2014-2020 Annual Rate 0A9 2024-2023 Annual Rate 0.72% 2023-2028 Annual Rate 0.31% 2024 Male Population 49,75 2020 Female Papulation 50.3% 2024 Median Age 34.7 2023 Male Popu€@tion 510.4% 2023 Female Papulation 49.6% 2023 Median Age 34.0 In the identified area, the current year population is E9r078. In 2024, the Census count on the area was 67,418. The rme of change since 2024 was 0.72% annually. The five-year projection far the population in the area is 9[1,474 representing a change of D.31% annual -y From 2023 to 2428. Currently, the popu latkrr is 50.4% male and 49.6% female. Median Age The median age in this area is 34,0, compared to U.S. median age of 39.1. Race and Ethniriky 2023 White Alone 133.356 2023 Ellack Alone 1A56 2023 American IndlarOlaska Native Alone 3.4% 2023 Asian ?Jone 1,4% 2023 Pacific Islander Alone 4.3% 2023 Other Ram 3.3% 2023 Two or More Races 7.2% 2023 Hispanic Orgin (Any Race) 9.5% Persons cf Hispanic orig in represent 9.546 of the Papulation in the identified area compared to 19A% of the U.S. population, Persons of Hispa nic Origin may be of any rare. The Diversity Indexr which measures the probability that two people from the same area will be From different raceletfmic groups, is 41.9 in the identified @rear compared to 72.1 fw the U.S. as a whole. HousehaCds 2023 Wealth Index fie 2010 House4halds 30,6432 20210 Househo-lds 32,438 2023 Households 33,433 2028 Households 34,298 2014-2020 Annual Rate 0.55% 20210-2023 Annual Rate 0.93% 2023-2028 Annual Rate 0.51% 2023 Average Household Size 2.60 The household count in this area has changed Ftwn 32,438 in 2024 to 33,433 in the current year, a change cF 0.93% annually. The Prue -area r projection of households is 34,298. a change of 0.5146 annually from the current yea r total. Average household size is currently 2,50, com pared to 2.61 in the year 2020, The number of Families in the current year is 22235 in the spedfied area. D&M Ple t., Income It expressed w torrent 6NIars. Hauslno Arrordahlllty Index acrd Percent of InMYM Far Flevh W raki stWs are on[y awaMbbe fW areas wth SU or mtae owper p!,W hqusLllo uil tt. The nlnl Ilsdex ftasw es erx e[teAt to whrpt the dlnultwdUn of Income of mnsunVtim emonq 4nd6YfdLLaI$ or hoLM&MARt wlthln an tans" devotes Mom a perledty e%:%1 ElltrrIDuLId11. A Glnl Ilidek OF 0 repWe!ienes perfect equality, while air Index Of 400 Int att 0r' -r" Irrequalry_ rmuM a: V-$. Co-muLa Bureau_ Ewl ibhKa7ts For 2023 and 2028. Earl tnnvet{ed Cemus 2740 Inks 2024 geography inti Cansue 2029 data. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 20 Qesri- Executive Bannock County, ID 45 Prepared by E i Bannock County, ID (IGO" Geography; County Sannod€ Count... Mortgage Income 2423 Percent of Income For Moagage 27.2% Median Mousehold Income 2023 Median Household Income 563,898 2028 Median Household Inca me 675,591 2023-2028 Annual Rate 3.42% AvLwage household Income 2023 Average Frouseho'd [-iconie S83r449 2028 Average Househo'd I,corre 597,399 2023-2428 Annual Rate 3.1456 Per Capita Income 2023 Per Capita Income $31,413 2028 Per Capita Incame s37,014 2023-2028 Annual Rate 3.33% r -mi Index 2423 Gini Index 39,6 Honsehcros by Income Cuirent median household income is 563,898 in the area, comparedtt $72,603 farall U.S. households, Median household income is KGected to be 575.591 in five years, compared to $92,414 for all U 5, households Current average household income is $83,449 in this area, compared to $147,008 far all U.S. households. Average household income is projected to- be $97,389 in five years, mrnpared to $122,048 for all U.S. households Current per capita income is $31,413 in the area, compared to the U.S. per capita income of 541r3l0. Tile pe r capita income is pmjacted to be $37,01{) in five yearsr compared to $47, 525 for all U.S. households Housing 2023 Housing AFfiordability Index_ 94 2014 Total Housing Units 33,191 2010 Owner Occupded Housing Units 20r817 2010 Renter Occupied Housing Units 9,865 2010 Vacant Housing Units 2,509 2024 Total Rousing Units 34,903 2020 Owner Occupied Housing Units 21,939 2020 Renter Occupied Housing Unrts 10,499 2020 Vacant Housing Units 2,455 2023 Total Housing Units 35,949 2023 Owner Occupied Housing Units 22,272 2023 Renter Occupied Housing Units 11,161 2023 Vacant Housing Units 2516 2025 Tatal Housing Units 36,678 2028 Owner Occupied Housing Units 23,074 2028 Renter Occupied Housing Units 11,224 2028 Vacant Housing Units 2,384 Sodne•canomic Status Index 2023 Socioeconomic Status Index 59,8 Currently, 62.0% of the 35,949 housing unite in the area are owner occupied, 31.Or%, renter occupied, and 7.046 are vacant Cu rrentFf, in tine U.5., 58,5% of the housing units in the area are owner occupied; 31.7% are renter occupied; and S.B% are vacant, In 2420, there were 34,903 housing units in the area and 7.1% vacant housing units. The annual rate of change in housing units since 2024 is 0,91`fo. Median home valve in the area is $288,967, compared to a median home value of $308,943 for the U.S. In five years, median value is projected to change by 3.67% annually to 5346,147. Doti Notm Mmmie H exereesed m t trent dNiihrs. Hausing AHordahlllly lndex and Percent of [newle Far Hevhjeprt t unlit k5ns are on[ya,allahk ic* cares „r[h s0 ar more awner-occipWd tpus[no unit. The Wnl Ind nieaswes the ett6w to nhreh the&m1bution oFIncome et conturnMion among 4nd&Yfdk $ of tk5uft4wadx wlrhln aniNmmorng devla[vst Mom a periirrs}y equal d1swinutla4r. A GIN Loden J0 represents patl)haequbllty, while an index of 100 Invaes peHpee Ine4ualky. Snurpe: V-$. fo-ecut Bureau. €sri Fcrecase> F6r 3023 and 2028. Earl evitvetio Cemus 2710 Inks 2024 geography and Cana -us 2D2p data. Deoember 19, 2423 24-985 Kirkham Appraisals Inc. Page 21 i s nMarket Profile Bannock County, ID 46 Prepared by Esri Bannock County, ID (16085) Geography; County 3Bannuck Count.. Papulation Surnenrary 2010 Total Papulation 62.839 2021) Total Papulation 87,018 2421) Group Quarters 2240 2023 Total Population 89,072 2423 Gimp Quarters 2,240 2026 Total Population 90.474 2423-2028 Annual Rabe 0.31% 2D23 Total Daytime Papulation 87,262 Workers 36,574 Residents 50.588 Household Summary 2010 HcusehoWr 34r682 2010 Average Hcusehold Size 2.64 2020 Total Households 32x438 2420 Average Household Size 2,61 2023 Households 33,433 2423 Average Household Size 2,60 2D2B Households 34,295 2425 Average Household Size 2.57 2423-2028 Annual Rate 0.51% 2010 Families 24,836 2410 Average Farrily Size 3.17 2023 Families 22r235 2423 Average Farrily SLD-- 3,13 202& Families 22,814 242E Average Farrily'size 3.09 2023-2028 Annual Rabe 0.52% Housing Unit Summary 20DO Housing Units 29,102 Owner Occupied Housing Units 66.4°16 Renter Occupied Housing Units 27,4% Vacant Housing Units 6.6% 2D1D Housing Units 33,191 Owner Occupied Housing Units 62,7% Renter Occupied Housing Units 29.7% Vacant Housi ng Units 7.45% 2020 Housing Units 34,983 Owner Occupied Housing Units 62.9% Renter Occupied Housing Units 30.1% Vacant Housing Units 7.1% 2023 Housing Units 35,949 Ovrner Occupied Housing Units 62,0°16 Rmber Occupied Housing Units 31.0% Vacant Housing Units 7.0% 2028 Housing Units 36,578 Ovines Occupied Housing Units 62,9% Renter Occupied Housing Units 38.6% Vacant Housing Units 6.5% Data Nabm Househohd population includes persons rut residing in group quarters, Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the howsehulder by birth, rr.arHage, or adoption. per Capita Income represents the income received by all pe rsoms aged 15 years and over diuidred by the tote I population, Source: Esri foiecasrs far 2023 and 2028. U.S. Census Bureau 2DOG and 2414 decennial Cer*sus data converted bw Esri inta 2026 neon rauhw. Deceinbqm- 19, 2023 24-985 Kirkham Appraisals Inc. Page 22 Qesri- MarketProfile Bannock County, ID 46 Prepaored by Esii Bannock County, ID (16005) Geography; County Bannock Count.. 2023 Ha�useholds by Income Household Income Ease 33,433 <$15.000 10,7% $15,000 - $24.999 8.7% $25,000 - 534,999 .5.7% SZ5,000 - 349,999 11.6°16 $50,000 - 574,999 20,2% $75,000 - 599,999 14.5% $104,000 - 5149,999 17.9% 51.50,000 - $199,999 6.7% 5200,000+ 3,8°16 Average Household Income $83,449 2028 Households by Income Household Income Base 34,298 <$15.000 8, 2% 515rO04 524r999 7.4% 525rOO4 534r999 4.7% 535r004 - 549r999 9.6% i54r000 $74r999 19.6% 57.5,000 - 199,999 1.5.4% $1O4r0OO- 5149,999 21.1% S150r0O4 - 5199,999 9.3% s20DrOO4+ 4.7% Average Household income $97,389 2023 Owner Occupied Housing Units by Value Tatal 22,272 <M.000 7.2% SSOr000 - 399r999 4.8% 31O4r0OD - 5149,999 7.0% 5150r000 - $199,999 5.2% $200x004 5249,999 12.3% 5250r0U0 $299,999 15.3% 93O0r00O 5399,999 27.2% 54O0r00O 5499,999 9,4% 55Oor00O $749,999 S.D% 5754,004 5999,999 1.5% 51,000.000 - $1.499,999 0.4% 51.500.000 - $1,999,999 0.0% 52.000.000 + 0,1% Average Home Value $304,640 2028 Chmner Occupied M>tksing Units by Value Total 23 x074 <$50, 000 4.8% S5Or000 - S99r999 2.B% $1017x004- $149,999 3.1% $150,004 $199,999 1.13% 5200,000 5249,999 5.9% ji,254r000 $299,999 14,B% 531)Dr004 5399,999 36.3% "00r000 5499,999 16.2% 55O4r004 5749,999 12.2% 575OrOOO 5999,999 1.5% $1.000.400 - $1.499,999 0.4% 51.500.000 - $1r999,999 0.0% #2.O0OrDDO + 0.1% Average Home Value $36LO75 Data Mote: Income represents the preceding year, expressed in current dollars. Household income indudes wage and salary earnings, interest dividends, net rents, pensions, SSI and welfare payments, child support. and alimony, Souraee Esri forecasts far 2023 and 2028. U.S. Census bureau 200a and 2610 decennial Cermus data converted by Esri into 2026 aeon iaohv. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 23 5.XRET Market P r c December 19, 2023 24-985 Kirkham Appraisals Inc. Page 24 Bannock County, 1D 46 BannockCaunty, ID (16005) Geography; County Prepm ed by Esii Bannock Count.. Median H au&eWd Income 2023 $63r898 2426 $75.591 Medials HoFne Value 2023 $288,967 2026 $346.107 Per Capita Income 2023 $31.413 21026 $37,010 Median Age 2010 31.5 2020 34.7 2023 34.0 2023 34.8 2020 Population by Age Total 87.018 0 - 4 6.6% 5 - 9 7.4% 10-14 7.7% 15-24 15.3% 25 - 34 13.5% 35-44 13.D% 415-54 10.2% 55 - 64 11.0% 65-74 3.6% 75 - B4 4.3% 85+ 1.5% i B + 74.0°16 2023 ParpukaU- by Age Total 83,078 0-4 7.4% 5-9 7.3% 10-14 7.1% 15 - 24 14.9% 2.5-34 14.7% 35-44 13.0% 45 - 54 9.6% 55-64 10.8% 65-74 9.2% 7.5 - B4 4.4% 85+ 1.6% 1 B + 74.2% 2028 PopL" an by Age Total 90,474 0 - 4 7.5% 5 - 9 7.2% N-14 7.D% 15-24 15.1% 25-34 13.5% 3-5-44 13.3% 45-54 10.3% 55 - 64 9.6% 65-74 9.2% 75-84 5.5% 85 + 1.8% 1 B + 74.5% 2020 FbpuiaU� by Sex Sourom Esri forecasts fo{ 2023 and 2028. U.S. Census Bureau 20011 and 2014 decennial Census data Converted by Esri inn 2020 neooia&iv. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 24 Warket Arc Bannock County, ID 46 Prepaid by Esri Bannock County, ID (1GO" Geography; County Bannock CourrL.. MaJes 43,211 Females 43,807 202.3 POP uJaban by Sex Males 44,930 Females 44,145 2828 Pop ulallco by Sex Males 4.5,581 Females 44,S93 2010 Population by Race Ethnicity Total 82„839 White Alone 89,B% Blad4 Alone 4,8°16 American Indian None 3.2% Asian Wane 1.3% P3 cific Islander Alone 0.2% Some Other Race Alone 2.1% Two or Mage Races 2.7% Hispanic Origin 6.7% Diversity Index 29.3 2020 Population by RacefEthnicity Total 87,018 White Alone 833% Black Alone 0.9% Ameiiran Indian Alone 3.6% Asian Alone 1.4% Pacific Islander Wane 0.3% Some Qtlher Race Alone 3.2% Two or Mage Races 6.9% Hispanic Origin 9,2% Diversity Index 44.9 2029 Population by Race/Ethnicity Total 89.078 White Alone 83.3% Black AJone 1.0% Ameriran Indian None 3,4% Asian Alone 1.4% Pacific Islander Alone 0.3% Some Other Race Alone 3.3% Two or Mage Races 7.2% Hispanic Origin 9.5% Diversity Index 41.9 2028 Pop ulaiian by Race/Ethnicity Total 94.474 White alone 82.1% E lack Alone 1.1% American Indian Alone 3.3% Asian Alone 1.5% pacific islander Alo ne 0,4% Some Other Race Alone 3.6% Two or More Races 8.0% Hispanic Origin 10.1% Diversity Index 44.0 Data Nate: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probabdiry that two people from the same area will he from different race+ethnic groups. Saurcm Esri forecasts far 2083 and 2028. V,S. Census Bureau 2040 and 2410 decennial Cerrsus data converted by Esri into 2026 oewraO)yy Devernher 19, 2A23 24-985 Kirkham Appraisals Inc. Page 25 isesruMarketProfile Bannock County, ID 46 Prepared by Esii BannockCaunty, ID (16005} Geography; County Ban a& Count... 20201PWulati4>n by Relationship and HouseTKAdType Total 67,018 in Households 97.4% Householder 37.3% Opposite- -Sex Spouse 18.2% Same -Sex Spouse 0,2% Opposite -Sex Unmarried Partner 2.7% Same -Sex Unmaaried partner 0.1% Biological child 28.1% AdupLed Child GIB% Stepchild 1.7% Gaandchild 2.2% Biuther or .Sister 0.9% Parent 0.7% Parent -in-law 0.2% Son-in-law or daughter-irrlaw 0.4% Defier Relatives 0.9% Foster child 0,1% Ot#rer Nonretatives 3.1% In Group Quaters 2.6% Institutionalized i.D% Noninstituticnaliaed 1,5% 2023 tyop&art1<m 25+ by Educational Attaimrnent Total 56„3 i 1 Less than 9th Grade 1.3% 9th - 12th CAader No Uploma 5.0% High 13c ml Gaaduabe 22.6% GED/Alternative Credential 4.5% Some College, No Degn_-e 22.9% Associate Degree 11.9% Bachelor's Degree 21.5% GraduaWProiessional Degiee 10,3% 2023 Population 15+ by Marital Statkis Total 69x623 Never Marred 30.2% Maiiied 53.5% Widowed 5.2% Divorced 11,2% 2023 Civilian Population 16+ in Labor Force Caviiian population 16+ 410,014 papulation 16+ Employed 96.B% Popu>ation 16+ Unemployment rate 3,21AE Papulation 16-24 Employer} 19.2% population 16-24 Unemployment date 5.7% Population 25-54 Emptoyed 63.6% population 25-54 Unemployment rate 2.5% population 55-64 Employed 13.1% population 55-14 Unemployment rate 2.5% Population 65+ Employed 4.1% Population 65+ Unemployment rate 4.4% Source: Ewi forecasts far 2023 and 2028, U.S. Census Bureau 200a and 2618 decennial Caermus data mnverberl by Esri into 2020 a]ewraphy. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 26 Cesn- Market Profile Bannock County, ID 46 prepared by Esii BannockCaunty, ID (LGO" Geography; County Bannock Court... 2023 Employed Papulation 16+ by Industry Total 38.739 AgRicultumgMin ing 1.5% Construction 6.8% ManufachAing 7.9% Wholesale Trade 1.8% Retail Trade 10.2% Tiarnspartabon jUtiliUes 6.5% information 1.2% Finance}Insurance/Real Estate 8.5% Services 49.5% Public Administration 6.13% 2023 Employed Papulation 16+ by Occupation Total 38,739 White Collar 59.3% Mark gement/$usine:WFinancia! 13.7% Pynfssianal 25.646 Sales B.4% Administrative Suppoit 11.64b Services 18.8% Blue Collar 21.906 Fairni ng{Far esbyf Fishi ng 13.3% ❑o nstrudjon/Ext iac#ion 5.0% InstaIIation/MaintenancejRepair 3.1% Production 5.4% TianspoitationfMaterial Moving 8.19b 2020 Households by Type Tatal 32,438 Married Couple Households 49.2% With Own Children <16 29.796 Without Own Children <18 28.446 Cohabitating Couple Households 7.4% With Own Children <13 2.646 Without O4m Children <18 4.8% Male Househoiderr No Spouse/Paitner 19.111% Living None 12.8% 65 Years and over 3.996 With Own Children <18 1.9% Without Own Children <18, With i9e4atives 2.5% No Relatives Present 1.8% Female Householder, No Spausef Paitrwr 24.4% Living Alone 14.1% 65 Years and over 5.4% With Own Children <18 4.5% Without Ohm Children <18, VAth Rellatives 4.7% No Relatives Present 1.240 2020 Households by Size Tatal 32,438 1 Person Household 26.9% 2 Person Household 33.6% 3 Pei3on Household 14.5% 4 Person Household 11,7% 5 Person Household 7,13016 6 Person Household 3,B% 7 + Persan Household 2.5% Source: Ewi forecasrs far 21323 and 2028, U.S. Census Bureau 2040 and 241D decennial Census data corwerted by Esri into 2020 cewiaO)y. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 27 Q4esruMarket Profile Bannock County, id 46 Prepared by Esii Bannock County, Id (1GO" Geography; County Bannock Count.. 2020 Households by Tenure and Mortgage Status Total 32.438 Ovines' Occupied 67.6% Ovrned with a Mortgage&aan 46,2% Ovmed Free and Clear 21.4% Renter Occupied 32,4% 2023 Affordability, Mortgage and Wealth Housing Affordability Index 90 gement of Income for mortgage 27.2% Wealth Index 68 2020 Housing Units By Urban{ Rural S#atus Tatal 34,903 Lrdban Housing Units 83.8% Rural Housing Units 16.2% 2020 izopulatian By Urban/ Rural Status Tatal 87r018 Urban population 83.0°16 Rural Papulation 17.D% Data Note: Households with children include any households with people under age 18, related or not. Multigenerational households are families with 3 armore parent child relationships. Unmarried partner households are usually classified as nonfamily households unlessthere is another member al' the hausehoid related to the hauseholder. Uultigen erational and unmarried partrier households are reported only to the tract level. Esn estimated block group data, whit is used to estimate paiygons or non-standard geography. Saurae: Esri forecasts far 2023 and 2028, U.S. Census Bureau 2006 and 2d1G decennial Census data converted by Esri inti 2026 Aeon iaO)y. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 28 -- i s n MarketProfile Bannock County, Id 46 Prepared by Esri Bannock County, IO (1GO" Geography: County $ar3nnck Count.. Top 3 Tapestry Segments i. Set to Impress (1ED) 2. Middleburg (4C) 3. Old and Newcomers (9F) 2023 Consumer Spending Apparel & Services: Total $ $58,317,392 Average Spent $1,744.31 Spending Potential Index 79 Education: Tatal $ $45,323,198 Average Spent $1 r355.64 Spending potential index 76 EntertairunenVRecneatian; Total $ $99,636,547 Average Spent $2r980,19 Spending Potential Index 79 Food at Home: Total $ $179,059,626 Average Spent $5355.78 Spending Potential index 79 Food Away frorn Home: TUtal $ $98,656,96B Average Spent $2.950.89 Spending Potential Index 79 Health Care: Total $ $196,554,092 Average Spent $5879.04 Spending Potential Index 80 HH Furnishings & Equipment: Total $ $77,834,043 Ayerage Spent $2, 328,06 Spending Potential Index 79 Per3Dnal Care products & Services: Total $ $25,482,532 Average Spent $762.20 Spending Potential Index 8D Shelber: Total S ",B31,197 Average Spent $19.347.09 Spending Potential Index 78 Support Payments/Cash Cont3ibutions/CWts in Find: Total 5 02,870,ZiB Average Spent $2,478.70 Spending Potential index 79 Travel: Toted S $58,589,717 Average Spent $1.752.45 Spending Potential index 78 Vehicle Alaintenance& Repairs: Total 3 $35,676,092 Average Spent $1,067.09 Spending Potential index 81 Data Note: Consumer spending shows the a mount spent on a variety of goods and se,vices by households that reside in the area. Errpenditures are shown by broad budnget catagmies that are not mutually esodusiva. Consumer spending does oat equal business revenue. Total and Average Amount Spent Per Household represent annual figs,, es, The Spending Potential Index represents the amouut spent in the area relative to a national average of IN. Sources Consumer Spending data are derived from the 2019 and 2020 Consumer Expenditure Surveys, Bureau of labor .Statistics, Esri, Sources Esri forecasts far 2023 and 2428. U.S. Census Bureau 2046 and 2010 decennial Census data converted by Esri into 2020 aeoarachv. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 29 Environmental Issues A visual inspection of the property did not reveal any apparent environmental issues or concerns. While the appraiser has inspected the subject property, he is not qualified to detect hazardous substances whether by visual inspection or otherwise, nor qualified to determine the effect, if any, of known or unknown substances present. The final value estimate is based on the subject being free of hazardous waste contamination. Parties desiring more precise and reliable information may wish to engage a professional environmental consultant to conduct an environmental assessment. Should such assessment indicate an adverse condition is present that has not been addressed by this appraisal; the conclusion of this appraisal may need revision. General Area Data and Trends The cities of Pocatello and Chubbuck are located close together in southeast Idaho in a valley surrounded by mountains on three sides. The cities are at an altitude of 4,450 feet in the western foothills of the Rocky Mountains near the Oregon Trail. One main railway, Interstate 86, Interstate 15, and the Portneuf River intersected the city. The southeastern area of Idaho was inhabited by the Shoshone and Bannock Indian tribes for hundreds of years prior to the Lewis and Clark expedition in 1805. It was the Lewis and Clark reports of that expedition that first attracted fur trappers and traders to southeastern Idaho. One of the first permanent settlements was established by Nathaniel Wyeth of Massachusetts a few miles northeast of Pocatello at Fort Hall in 1834. After over -trapping and changes in fashion ended the fur trade, Wyeth's settlement became a stopping point for immigrants traveling the Oregon Trail. It was not until after the discovery of gold in Idaho in 1860 that immigrants began settling in Idaho in large numbers. The gold rush had brought a demand for goods and services that supported the establishment of towns. The Portneuf Valley and Pocatello area became the corridor that was initially used by freight shipping and stage lines. After the gold rush ended, the settlers who remained in the Pocatello area turned to agriculture as a means of support and the nearby Snake River provided ample irrigation water for crops. The region eventually became a major supplier of potatoes and grain products. The city was named for Chief Pocatello of the Shoshone tribe who gave the railroad a right-of-way through the original Fort Hall Indian Reservation for a line that connected Salt Lake City, Utah to Butte, Montana. Initially, the Utah and Northern Railroad stopped for water in the Pocatello Creek area. Then, with the arrival of the Oregon Short Line in 1882, the area became a junction and transfer point between the two railroads. In 1887, the Oregon Short Line moved its offices to the Pocatello Junction and the two railroads merged, creating a large repair and maintenance facility. In 1888, an Executive Order ceded 1,840 acres of Indian land to establish the city of Pocatello. The Pocatello/Chubbuck area has a four -season climate that was sunny and dry with less than fifteen inches of precipitation annually. Summers were dry and warm with cool nights and an average temperature in July of 72 degrees. The winter temperatures averaged thirty-five degrees with several months of snow. According to The US Census bureau, as of April 2010, Pocatello's population was 54,255 persons: a 5.29% increase from the 2000 census. 13,922 reside in the neighboring town of Chubbuck, Idaho. Chubbuck experienced 43.35% growth between 2000 and 2010. The total population for Bannock County was 87,018 persons living in 1,112 square miles in 2020. The growth for Bannock County between 2010 and 2020 was, overall, 5.04%. The county is population is reported at 89,078 persons as of 2023. The cost of living in Bannock County was well below the national average for groceries, housing, utilities, and transportation. The median priced home in Bannock County reported at $225,283 in 2022; apartment rents were from $400 to $2,200 per month. The chief sources of income in Pocatello/Chubbuck and the nearby trade area was manufacturing, mining, transportation, agriculture, medical products, processing of agricultural products, high-tech and nuclear research, recreation and tourism. 24-985 Kirkham Appraisals Inc. Page 30 UMM M.11 III Idaho Central Credit Union PorfieufMedicalCentar Aspire Human Services LLC ON Sem iconducto-r, Inc. Contiergys Cusiamer Wriagemen Union Pacific Railroad Allstate Ins uranceCc VarsityContractars Am Kitchen Inc_ Veal-Nbrt Regional industry also included the Idaho National Laboratory (INL) which was located 60 miles northwest of Pocatello/Chubbuck. Built in 1949, the site had more than 50 nuclear reactors and employed approximately 12,000 individuals. The years between 1970 and 1990 brought recessionary times to Pocatello's older downtown business district. However, in the decade of the 1990's, the older downtown area underwent restoration and revitalization efforts, with the result that numerous small or specialty retail stores and a number of new restaurants relocated in the central downtown area. It was during those recessionary times that Yellowstone Avenue gradually underwent commercial development. Over the ensuing years, the primary areas of expansion and new development on Yellowstone Avenue occurred in the north Pocatello and Chubbuck portions of this major arterial highway. That growth continued, and Yellowstone Avenue became the prime retail commercial center of the city with many newly developing areas that contained retail and service facilities, fast food facilities, restaurants, and the major automobile sales/service establishments. The Pine Ridge Mall, Wal-Mart, and Fred Meyer superstores, as well as, the commercial Pocatello Square subdivision, provided the central focus for the continuing development of new business and expansion on Yellowstone Avenue. Pocatello/Chubbuck offered excellent health care services and facilities. The Portneuf Medical Center was formed when two area hospitals consolidated in 2002. The facility was designated as a Level Three Trauma Center and housed a Life Flight helicopter. Portneuf Medical Center had recently added open heart surgery to its services. Idaho State University (ISU) was among the fastest growing of the four academic institutions of higher education in the State of Idaho. Approximately 13,569 students were enrolled in the 124 Baccalaureate, 50 Masters and nine Doctoral programs. ISU had an outstanding School of Applied Technology that was the largest post -secondary technical institute in the state of Idaho, providing technical and career -oriented educational opportunities. The city of Pocatello has a newer library, 32 parks, two public golf courses, a swimming complex and small zoo, and a Museum of Natural History located on the ISU campus. The city of Chubbuck has a library and numerous parks. The neighborhood is a mix of residential, commercial, and light industrial properties. The market suffered declining values from 2008 to 2011 and stabilized in 2012. The market has increased since. The market has been expanding for several years now. A sharp contraction in the economy occurred in March and April of 2020 with the COVD Pandemic. An expansion occurred shortly after. Drastic inflation and interest rate hikes to fight the inflation could send the economy into a recession within the next 12 months, and has already caused a slow -down to real estate activity. It is possible interest rates may begin to decline in the next several months if inflation continues to ease as it has over the past several months. These interest rate declines could spur some real estate activity. 24-985 Kirkham Appraisals Inc. Page 31 Bannock County Economic Overview Civilian Labor Force (Dec 2023) 46,209 Unemp4oyment Rate (Dec 2023) 3.296 PopuWon (2022) 89,517 Median Fk uwhdd Income (2021) $56,472 Per Capita Pe oral Income (2022) $47,457 Poverty Date (2021) 12.7% I "Vow M Lint Updffted. January 2D24 A p.wil partner of the Idaho Department of Labor lab or. ida&o.0 ov raln,,V�d* amerF a� njobcenier nmw ik 1hr1dWa1rpar1awtaFLah4Y1&an*"a1appcaucdtjia rrardwrrirnp4m%idvL*roan,blrrocammGdAms 1461reAorlddw{1r4K` w. 24-985 Kirkham Appraisals Inc. Page 32 Market Delineation: According to Market Analysis for Real Estate Second Edition page 534, "A market area is defined by the specific use or uses of the property and the users it is likely to attract. The tenants and clientele who constitute the demand for the mix of uses in the subject tract will not all be drawn from areas with identical boundaries. Available data often have to be adjusted to correspond to the market areas defined by the location of property users." The market area is the physical area where similar properties effectively compete. It can also be envisioned as the area that contains all the primary competition, and in certain cases, some secondary competition. Market areas may contain one or more neighborhoods, districts, cities, counties, or states. Market Area Boundaries North Bannock County East Bannock County South Bannock County West Bannock County Demographics Physical Area Bannock County Recent Population Level About stable near 89,517 Household Income About stable near $56,472 Local Unemployment Physical Area Bannock County Recent Pattern Mildly declining Approx. Current Percent 3.2% (Bureau of Labor Statistics) Financing (for real estate like subject) General Loan Availability Ample availability; requirements mildly difficult Interest Rate Range 6.00% to 10.00% Typical Loan -to -Value Ratio 70% to 75% Typical Amortization Years 15 to 20 years Loan Maturity / Balloon 5 years 24-985 Kirkham Appraisals Inc. Page 33 Nearby Land Uses Single -Unit Residential Multiple -Unit Residential Retail / Commercial Office Industrial Agriculture Vacant Land Other Total 00% Other Description: The subject property is located along the south side of New Day Parkway bordered by the railroad on the west side. The area has been developed with medical uses, office uses, residential uses, and industrial uses. The subject property is located within 0.90 miles of the Northgate I-15 Interstate Interchange. 24-985 Kirkham Appraisals Inc. Page 34 Proximity Features Expected Change in Economic Base The area is growing, with 1% growth in population and households over the past several years expected to continue. Protection from Adverse Conditions Average Demand for Real Estate Like Subject Moderate Building Age Range 0 to 80 Years Oversupply of Property Like Subject Eastern Idaho has a large amount of land on the market. General Appearance of Property Average Location Average, Suburban Land Use Change Unlikely Police and Fire Protection Average Expressway Access Average Employment Centers Under 1 mile Property Compatibility Average Overall Appeal to Market lAverage Nearby Land Uses Single -Unit Residential Multiple -Unit Residential Retail / Commercial Office Industrial Agriculture Vacant Land Other Total 00% Other Description: The subject property is located along the south side of New Day Parkway bordered by the railroad on the west side. The area has been developed with medical uses, office uses, residential uses, and industrial uses. The subject property is located within 0.90 miles of the Northgate I-15 Interstate Interchange. 24-985 Kirkham Appraisals Inc. Page 34 Pocatello/Chubbuck Residential Market Analysis Physical Area Foreclosures & Short Sales New Construction Pocatello/Chubbuck Shrinking portion of all sales Increasing An Abstract of PocatellofChubbuck MLS Reported Single Family Detached Sales YEAR total sales reported Avg Value Annual %-Chng Med DOM % of Asking Total Ann Sales $ Median Price $ 2013 809 151.336 # 'RE F! 8v 97.29 122,431,489 135.000 2014 841 156.739 1.07 •5 93 97.87 131,817,906 136.450 2015 960 157.490 1.65�� 78 97.82 151,190,603 138.700 2018 1 1.002 188.127 1.80� 70 98.51 1 166,459,388 141.200 2017 1.030 168.578 4.11�� 61 98.74 173,636,209 147.000 2018 989 196.175 15.50% 52 99.21 194,018,001 169.900 2019 981 214.388 10.06% 50 99.42 210,293,114 187.000 2020 988 246.937 18.59% 50 99.53 243,974,548 221.771 2021 1.088 1312.841 1 26.26% 42 1100.00 339,746,105 280.000 2022 1 922 1374.6421 17.86% 1 50 1 99.28 1 345,420,388 330.000 2023 1 747 1378.6331 3.03 •5 1 58 1 98.77 1 282,839,568 340.000 Median dome Pr Iles C6 2-50,000 20D,O M 150,OW 100,1000 2016 1 2011 1 2018 1 2019 1 2020 1 2021 1 2022 1 2023 Seriesi 1141,20 1147,00 1169,90 1187,00 1221,77 1280,100 1330,00 34-0,00 In real estate, average sale price is often greater than the median. If the ratio of the average sale price to the median price (shown in last column) significantly changes from prior periods, the distribution of sales may be the real cause of the price change, and not true price appreciation or depreciation. Further analysis is necessary. Expected Near Future Price Could decrease with increase in interest rates Change Overall Supply & Demand Near equilibrium of Housing 24-985 Kirkham Appraisals Inc. Page 35 Real Estate Like Subject (Commercial and High Density Residential Land) Sales Market New Construction Inventory of Competing Property for Sale Expected Near Future Price Change Marketing Times Overall Market Conditions "MI Some Could Decline with Rising Interest Rates, and a possible recession. Stable Fairly Stable with a possible recession forecast for 2024 The residential market had seen increases in median and average home values since 2011. 2021 and 2022 have brought large increases in value to residential properties. Interviews with agents in the market area indicate there was a shortage of supply for residential homes, which fueled the current residential value growth. New construction starts have increased since 2014 and are expected to continue their increases over the next several years. The federal funds rate for May of 2017 was 1.0%, and went to 0% during the pandemic, and has since increased to 5.25-5.50%. The increase in the federal funds rate has had a significant effect on mortgage rates and real estate activity has slowed. Pocatello's commercial growth has consisted of major retail chains including Costco, Dick's Sporting Goods, and Winco, along with several new restaurants that have been constructed mostly along Yellowstone and East Center Street over the past several years. The main growth in Pocatello and Chubbuck over the past several years has been in high density residential developments and smaller commercial developments in Chubbuck, North Pocatello, and the University area. 24-985 Kirkham Appraisals Inc. Page 36 Regional Commercial Market Data Average Price (COr1 MErcial hand Listings) se00.0W $753,377 i�ao,00a - L5 Seao,Ooa +�+ $500,000 u$372,221 $377754 S400.000 $290,969 53000)0 — -. 5200.000 5100,000 $6 0 Ada CaurI Can,Dn{oimty Eastern Idaho _ouih,arn d3ha Demand Supply Prices DOM* *Average days on market for now rosidantEaI cons"ction in Ada and Canvr• counties. Based on the most recent available monthly reports from IM LS Colliers International of Idaho indicates that demand for commercial land is remaining declining, supply is decreasing, and prices are currently decreasing. The average list price per acre for commercial land in Eastern Idaho where the subject is located, is just below $377,754 per acre or $8.67 per square foot. The acreage of commercial land listings decreased in Eastern Idaho compared to the last quarter. Southern Idaho and Canyon County currently have the most commercial land listed with 2,180 acres and 3,356 acres available, respectively. 24-985 Kirkham Appraisals Inc. Page 37 Highlights • The Idaho Falls guglorlal AvrporT Is rominumg to up& arae In an: rffarr ru otter 'efficient and premier tra N experiences' mcustomers and supporie Aarnlc ,min In In [h6, region Inveeaa4 'r%rME 1rr Mt Itliamllj pro�K s M piimgg up agai n -Mega pr61e�', wh, h are large scale, mvhl-use tn5lldurgs IncLPdmS a mix of rerall, ;esldmual and office spade areeAperi&wting a surge in popu6ifnty. T} Vataa4_y knte -. AhMq"h ... _ ai tt along h 8tt 'x i[II.r a 7-A 3-v3 0 0 aory ,e r!1_ . 2363 AL 6 I'4054 i rOTA0 rnyw i# am 'U.132 Ea5terr7 a 410M •138: Vat" Rate u{ • e 1�@p� Net Xb3WjXFOn ; Dine[ Aikirlg Letne! "tes JF56) tiYL .r]4k Pa11lrx7 -24,12 ► A Overview Tile ecannrlt'j,+ is stable in Eastern artd Southern Idaho_ The Iaher market in Idaho bti+erall i5 grlywing; from November 2022 to November 21M, empinyrnent Increased by 4.2% In Idaho Falis and 5.8% 1 r the Pocatelko MSA. In Twirl Eallsr employment decreased by 10 -4% - Vacancy & Absorption phis quarter, vacancy inrreased Slightly ir1 both Southern Idaho and Eastern Rialto. Absorption detreased in both markets: by 24.122 5q_ ft. 7n Eastern Idahn and 1,254 sq_ ft. in Scuthern Idaho. Asking Rate This quarter. asking rates decreased Irl bath Southern and Fastens Idat)o, Si rice last qUarterr they were down 9.7% in Southern Idaho and 2.2% in Eastern Idaho_ With a US national average cost of $$_4Q -23.4O square foot to similarly-siLud markets, Eastern and Southern Idaho remain appealing with an average cost of $14.82 per square toot m Eastern Idaho and 617.59 per squ4tre Foot M southern Idaho. CJi'.15 :-K 134117 11 ' _ a1= _ TOTAL -.330'063 23011 22-M7 =155•{ 1344 i Ori r—t ,..'ti0,774 135410 108,234 ,7UA75 4 -Ul 6 'x i[II.r ::77757 1:E03 975D 7-A 3-v3 0 0 aory ,e r!1_ _'?.M 31,470 ".JA6 2363 W761 6 I'4054 f 175: rOTA0 rnyw i# am 'U.132 53W2 a 410M •138: 24-985 Kirkham Appraisals Inc. Page 38 Overview New stores Corltlnue to open throughout Eastern and Southern Idaho, and vacancy remakes low In both n1arkets. Yearly net absorption is pn5itive to Eastern Idaho anti negati-ve Irl Southern Idaho, Askki-ng rat,55r are holding steady In Southern Idaho and rncreasing in Eastern Idaho_ Vacancy &Absorption Vacancy remained law this quarter_ At 2.195 In Eastern Idaho and 1.6% In Southern Idaho, it dropped in markets that are well below the national average of 10,395_ Since the start of the year, occupped square fu,otage has remainp-d relatively steady tri Moth markets_ Asking Rate Asking rates Increased this quarter in Eastern Idatlo, up 4.1% from last quarter, and remained steady In Southern Idaho. �r.)". .=62 r72 lied ....-. _. •� J. . -S7 14S 1U.1elL 7— Asking Rates for the commercial properties for Eastern Idaho can be found above and was extracted from Colliers International Idaho Market Research & Forecast Report. These asking rates are fairly stable from the prior quarter. 24-985 Kirkham Appraisals Inc. Page 39 Highlights • A Jou di dust anmwnced n was'waring soon to NA! L In Twin tal Is. The Idaho Falls Parks and Recrearlm oeparvnent & sea rrkN for effl-fMrei K.Urs to run and Dperate 3 cafes art The Natio Falls Municipa l Gall {ours as. A req_.e:- prdposads hastreen Issued far12w operadonof rhe cares frwn years 2024-= ' • A la[.al wo.arTn has opened SaiA Sister Flom Therapy In RIgLy al 253 Farnswci wayr wth dhe goal of providing a relaldrg senwr}L - IvaucnTherapy to he aommunw/. 'rtf2 Pocawdla Ccunmunlry RecfeaTla+r Censer has broken ground on a 313 ir0loo- dollar expansion porojea ra adal aver 3,066 square fre[ of Indoof spare and a new WMEMroam E15 the center. SL l.I Yh#ancy RaYr V Ne#,ihSGrptlBn Direct Asking Leme A Rerea(NNN1 � � r F)stern Vmanq Rate we � Net Aba4rption Dircc# Asking Lease � Parts (NNNl :a O Q�p! — 2.14fr rcx+1 25,58d] 5r zNf•_+s' 1115.1 �.., Overview New stores Corltlnue to open throughout Eastern and Southern Idaho, and vacancy remakes low In both n1arkets. Yearly net absorption is pn5itive to Eastern Idaho anti negati-ve Irl Southern Idaho, Askki-ng rat,55r are holding steady In Southern Idaho and rncreasing in Eastern Idaho_ Vacancy &Absorption Vacancy remained law this quarter_ At 2.195 In Eastern Idaho and 1.6% In Southern Idaho, it dropped in markets that are well below the national average of 10,395_ Since the start of the year, occupped square fu,otage has remainp-d relatively steady tri Moth markets_ Asking Rate Asking rates Increased this quarter in Eastern Idatlo, up 4.1% from last quarter, and remained steady In Southern Idaho. �r.)". .=62 r72 lied ....-. _. •� J. . -S7 14S 1U.1elL 7— Asking Rates for the commercial properties for Eastern Idaho can be found above and was extracted from Colliers International Idaho Market Research & Forecast Report. These asking rates are fairly stable from the prior quarter. 24-985 Kirkham Appraisals Inc. Page 39 Conclusion The market area has grown over the past couple of years at a slightly slower rate than Boise and Idaho Falls. I would expect extended marketing times and a possible decline in land values in the area with economists predicting a recession in 2024-2025 is possible, but the area is predicted to continue its steady growth of approximately 1% yearly, which will continue its demand for both commercial and residential developments. 24-985 Kirkham Appraisals Inc. Page 40 Subject Property e * . Identification of the Property The real estate appraised is situated at the on the south side of New Day Parkway about 550 west of Whitaker Road. Since the subject property consists of just vacant land, it does not have a common address. Legal Description A professional surveyor and / or legal counsel should verify the following legal description before relying upon, or using it as part of any conveyance, or any other document. This legal description was obtained from public records and is assumed accurate. To Be Determined site uoncent Flan Froviciecl ttie touowmiz vimensions: 24-985 Kirkham Appraisals Inc. Page 41 Aerial View Aerial Map - E�uYrr rii-- i _ E��i�hc•n�F�d'� �-- ' . F N �r { Pacatdo I l + R + ` r I III APPRAISAL CC .1x , uret 9 nv�owi. Yc 7823 ,..R dpR7ralr w+ Boundary Center 42-934,5613.-112.451317D 3 -6S -34E Bannock County Idaho Dft 1358 2898 � I7 17 W - � r. r 3111r2C24 24-985 Kirkham Appraisals Inc. Page 42 Soils Map r Sous data proulded by USDA 2nd NRCS. Soils Map 3s State: Idaho County: Bannock Location: 3 -6S -34E Township-, Pocatello Acres_ 2.05 Bate: 311112024 .4pph/dlAL CO y *lr., surety. W P. s4�tp�dr OwLwMvw� i.{ylt7uu F-£ 2873 x.x F;lScwl rcv- Area 5yarbDk: I D711. Sod Area Version: 18 Code Soi Aures Percent Restric#iue Septic Foucdawn Sai Non- Irr ?KAW Bane 4iEh Pastre Sugar Wheat Oe�n of field Layer Loom Limis Drainage Irr Gass hay Impaled WWbE5 Irrigated beets I^igatec Class IRigased Bu Irrigated AUM mUmed Bu Tons Cart Torts r 13ahern Mt 2135 :OOA'6 = 6.5ft. somewLl not linrtec 'Ne1I wtc IIIc 5 100 270 12 20 kxwn, Oto 2 Iimted dra reed 51Dpes Weighted Average &00 3.00 5 100 270 1 12 20 'n: lire aggregamon nwdmd is Weighed Average using al l components' sarsd=Q 121tdnxuaoAwilrww. 24-985 Kirkham Appraisals Inc. Page 43 Topography Map Topographer Hillshade 1� - tea;-39t�-.� •e � -_ �F - Pucanfl•St �P cano•St i' r>�i Low Elevation Filth of 137ft 274f' Source= USGS 16 meter dem I ntervak(ft): 1 Mar 4,473-3 " Max- 4.417.8 3 -6S -34E ,wa...A�a, Bainnock County :.—ewar Range-- 4.3 l rt* AWerage_ 4,474.4 311112024 Idaho e .o.�.. o.....,,...,. Standard Deviation: 1.3d R a.o7,u.0 ere Zara ...ASC. � : Boundary Center. 42.934588, -112-4".,8170 24-985 Kirkham Appraisals Inc. Page 44 Photographs of Subject (photo page 1) Subject Street Subject Street 24-985 Kirkham Appraisals Inc. Page 45 Photographs of Subject (photo page 2) r Subject '400 0 Subject 24-985 Kirkham Appraisals Inc. Page 46 Photographs of Subject (photo page 3) IF Subject Subject 24-985 Kirkham Appraisals Inc. Page 47 Sale History On-line public records and / or a private data -reporting service were used to search for prior sales of the subject real estate. This research discovered no recorded conveyance of the subject during the three -years preceding this report's effective value date. The assessor's office indicated the property did not convey. Moreover, the subject was not offered "For Sale" in the local MLS or other major data -reporting services during this same period. No sale or option agreements are now pending. Flood Hazard According to the appropriate Federal Emergency Management Agency (FEMA) flood map, which is identified below, the subject property is not located in a zone "A" special flood hazard. Flood Map Number 16005CO237D Flood Map Date 07/07/09 Flood Zone X Flood Maps published by FEMA are not precise. If anyone desires a precise determination of the subject's flood hazard classification, a professional engineer, licensed surveyor, or local governmental authority should make an exact determination. Real Estate Taxes Throughout Bannock County, the Total Assessed Value is supposed to represent 100% of market value for all property types. County Bannock Parcel ID # RPRCCP0024406 RPRCCPCO24409 Tax Year 2023 Total Assessed Value Exempt Total Tax Dollars Exempt Real estate taxes are a primary mechanism used by local government to gather the monies needed to fund operations. Too little funds can limit governmental services. Excessive tax burden can hinder real estate values. For the subject, they are owned by the City of Chubbuck and are exempt from taxes. Zoning The subject property is zoned "C-1" Limited Commercial District by the City of Chubbuck. This land is well suited to serve a large number of legally permitted uses. Zoning does not unduly limit value or marketability. 24-985 Kirkham Appraisals Inc. Page 48 Zoning 24-985 Kirkham Appraisals Inc. Page 49 Environmental Risks Disclosure During the course of this appraisal, the appraiser(s) did not detect or attempt to discover any environmental hazard on, under, above, or within the subject real estate. No overt evidence of any environmental hazard is apparent to the untrained eye. It should be known the appraiser(s) did not view the subject property with the intent of detecting any environmental hazard. It is beyond the expertise of the appraiser(s) to detect or determine the chemical nature of any substance or gas. No effort was made to dismantle or probe any part of the property to discover enclosed, encased, or concealed hazards. No effort was exerted to ascertain the presence of any environmental hazard including but not limited to the following. Asbestos Underground storage tanks Lead-based paint Radon Chemical spills Urea formaldehyde insulation Soil contamination or deficiencies Toxic mold PCB Fire resistant treated plywood (FRTP) Flood hazards are detailed elsewhere in this report. Except as enumerated herein, the appraiser(s) were not given the results of any environmental testing on or near the property being appraised. Neither observation of the subject property, or research conducted as part of a typical real estate appraisal suggest the presence of any hazardous substance or detrimental environmental condition affecting the subject. Nearby sites were not investigated to determine whether they are contaminated. Public information and other Internet sources were not researched to determine the presence of hazardous substances or detrimental environmental conditions in the subject's vicinity. Federal, State, and local laws concerning any hazardous substance or gas are sometimes contradictory. Therefore, any needed clean up should comply with the most stringent laws. The appraiser(s) are not informed or trained in environmental legalities. It is assumed no hazardous substance or gas adversely affects the subject real estate. If the subject is adversely influenced by a hazardous condition, then the subject's market value would be impaired. C111iiuIMMI M The presence of any hazardous condition usually diminishes market value. The value opinion formed in this report assumes there is no environmental hazard affecting the subject real estate. No responsibility is assumed by the appraiser(s) or Kirkham Appraisals Inc. for any hazard, or for any expertise required to discover any environmentally hazardous condition. Our client is urged to retain an expert in this field, if desired. 24-985 Kirkham Appraisals Inc. Page 50 Subject Property Subject Site Size 2.05+/- Acres or 89,298+/- Square Feet Easements Typical utility type Encroachments None known; none assumed Shape Generally Rectangular Topography Mostly Level Curbs & Gutters None Water & Sanitation Public water, public sewer at/near site Rear Alley None Access Typical Street Paving Asphalt Sidewalks None Natural Gas Public Adjacent Road(s) 2 -way, 4 -lane Nearby Land Uses Medical, Office, Residential, Industrial Electric Provided by public companies at prevailing rates Major Flaws None Overall Features The land has typical features as compared to similar alternatives. Its overall locational attributes are average relative to competitive parcels. 24-985 Kirkham Appraisals Inc. Page 51 Analyses & Conclusions .10 Value Introduction For real estate that is predominantly unimproved vacant land, there are six valuation methods. The most frequently used sales comparison approach is employed in this report. 24-985 Kirkham Appraisals Inc. Page 52 Real Estate Cycles Real estate generally has four market cycles. "Understanding where the market is and forecasting the extent of duration of the cycle are important in projecting the patternof future income."' These cycles are depicted below. The red arrow depicts the appraiser(s) opinion of the subject's position in the market cycle. Segment Name Characteristics i Growing demand, rental rates climbing above replacement cost, decreasing AB Expansion vacancy, concessions not prevalent, high profit potential stimulating much new construction Stable to weakening demand, stable to weakening vacancy, small BC Contraction concessions beginning to occur, rents stable to mildly weakening, profit potential shrinking so new construction slowing i CD Recession Stagnant to declining demand, vacancy growing, rental rates falling, significant concessions prevalent, new construction virtually halted DA Recovery Demand strengthening, vacancy shrinking, rental rates starting to climb, concessions shrinking, new construction beginning to occur Time until the next major point to 2 years ' Advanced Concepts & Case Studies, pg 253, Appraisal Institute, copyright 2010 24-985 Kirkham Appraisals Inc. Page 53 Highest and Best Use Introduction A highest and best use identifies the most reasonably probable and appropriately supported use of the property appraised. Since market conditions change, a property's highest and best use may change as well. This analysis is an essential step in the determination of market value. Market dynamics determines a property's use and an appraisal values that use. Practically speaking, a highest and best use analysis forms a framework for the proper selection of comparables. The "Dictionary of Real Estate Appraisal", 6th edition, copyright 2015 by the Appraisal Institute defines this term on page 93 as: 1. The reasonablyprobable use ofproperty that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and mostprofitable use for which theproperty is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions). " There are two types of highest and best use. The first is highest and best use of land as though vacant. If a building already exists, the second variety is highest and best use as though now improved. The later considers whether the existing building should be retained as is, demolished, remodeled, renovated, repaired, enlarged, or converted to an alternate use. Both types require separate analyses. Current usage may or may not be different from the near future highest and best use. The concept of Highest and Best Use is based upon four major criteria, which are summarized below: 1. Legally The use must be legal or probable. That is, the use must conform to existing zoning Permissible restrictions, or there must be a reasonable likelihood a rezoning or variance may be granted. Private agreements like deed restrictions and leases must also be considered. 2. Physically Physical attributes of the land that must be considered include size, access, shape, orientation, Possible soil conditions, potential hazards, topography, and utilities. Physical attributes of the building that must be analyzed include design, size, efficiency, mechanical systems, floorplan, construction materials, quality, and physical condition. 3. Financially Land may be developed with different uses. Only those uses, which produce a positive net Feasible return over time with acceptable risk, are deemed financially viable. This use must not depress surrounding property values. 4. Maximum Of all uses that survive the first three tests, there is only one use, which produces the greatest Productivity return with the least risk. This single use represents the property's Highest and Best Use. Supply and demand are constantly fluctuating, so it is common for a property's highest and best use to change. 24-985 Kirkham Appraisals Inc. Page 54 Highest and Best Use Introduction Demand analyses can be categorized into two different levels of detail - Inferred and Fundamental. A fundamental analysis forecasts future demand from projections of broad demographic and economic data, specifically population, income, and employment. Existing supply is inventoried. Then, the relationship of supply and demand is weighed to determine residual demand. If residual demand is positive, more of that property type is needed. Of course, the opposite is also true. An inferred analysis is based on local trends and patterns from which inferences are made. This type analysis presumes that recent past trends will continue for the near future. Sale prices, number of competitive listings, marketing intervals, and / or price changes for other similar properties infer there is adequate demand for the subject at a price level congruous with the available data. An inferred analysis emphasizes historical data while a fundamental analysis is based on expected future occurrences. This appraisal's highest and best use was based, in part, on an inferred demand analysis. Following below are detailed considerations used to form a highest and best use determination for the property appraised. Buyer Types The most likely buyer type is crucial to highest and best use. Different buyer types have different motivations and different perceptions of risk. The buyer type must be identified to better understand applicable approaches and the selection of cap rates and yield rates. Different buyer types are identified below. Owner -User Acquires real estate mostly for its use or control. Vacancy & investment yield are not primary criteria. Property suitability is the major objective. Typically, a medium to long-term owner. 2 Secure Income Seeks an established, secure income stream; normally does not change the property in Investor any meaningful way. Usually favors a long-term ownership. 3 Developer Acquires real estate to physically or legally change it in some significant fashion; accepts substantial risk so expects major reward over a short -to -medium holding period. 4 Speculator Buys real estate solely as an investment with most of the reward at termination. Property use is not a primary consideration; medium -to -long-term holding period; Usually buys during very weak market conditions, so accepts huge risk. Mantra: buy low, sell high. 5 Value Growth Buys real estate mostly for price appreciation. Property use is usually not a major Investor consideration. Typically buys during conditions of rapidly increasing prices; prefers a short -to -medium ownership period. 24-985 Kirkham Appraisals Inc. Page 55 Highest and Best Use Most Likely User The most likely user is also important. Clearly, users of an age -restricted, multiunit residential structure have needs and preferences that are much different from young married couples with small children. Similarly, the most likely buyer of a handicap accessible home is a handicap person. This most -likely buyer would perceive the special physical features as beneficial, not detrimental. Preferences and needs of the most likely user affect value, so the most likely user should be identified to judge the extent that existing or proposed improvements fulfill those preferences or needs. Nationally -recognized users typically pay higher prices and rents as compared to local users. Timing of Use A crucial component of a highest and best use is timing. If the timing of a use is not now, when is it? When timing for a specific use cannot be identified, then that use is not the best. If the highest use is not within a decade, then the time -value of money usually precludes that use. When the timing of a use is within a few years, what is the interim use? Remaining dormant is a legitimate interim use. Ideal Improvement Identification of the "ideal improvement" is an essential element of highest and best use. If the property appraised is vacant land, the ideal describes what should be built. If the existing improvements (one or more buildings and site improvements) have the same or similar attributes as the ideal, then the existing improvements have no or minimal depreciation. Obviously, the opposite also applies. The described ideal improvement is as specific as market data will allow. The ideal improvement is the physical use of the land as though vacant. 24-985 Kirkham Appraisals Inc. Page 56 As Though Now Vacant Land If subject parcel were vacant, how would it be used? This question is answered by applying the four tests of highest and best use. Legally Permissible Legal restrictions fall into two main categories - private and public. Private restrictions are agreements imposed by previous owners. Examples include access easements, use limitations, and leases. Public constraints include zoning, right-of-way easements, historic districts, and utility easements. Unless specifically stated otherwise, there are no known atypical private or public restrictions. Zoning permits a variety of commercial uses including office and light retail. Limited commercial (C-1): The purpose of this district is to provide for small office uses and neighborhood scaled convenience business uses which serve nearby residential areas. The goal of this district is to integrate limited commercial activity and professional offices with residential land uses in a climate favorable to both. Particular attention is to be paid to the interface between commercial and professional uses and the residential uses within the same neighborhood. Such a designation is appropriate where commercial activities are to be provided in the midst of a neighborhood for the benefit of the residents thereof. Such benefits may include convenience, energy conservation or related factors. Such a designation may properly apply to a limited area located in a convenient place relative to the circulation pattern for both vehicles and pedestrians within a neighborhood. Some larger establishments may be conditionally permitted if compatible with adjoining uses. Application of this district would also be appropriate where its permitted or conditionally permitted uses might serve as an effective buffer between a residential neighborhood and nearby commercial or industrial uses. Phvsicallv Possible Physical attributes commonly considered include size, shape, access, flood potential, topography, and availability of utilities. Characteristics that may be significantly detrimental but the appraiser(s) are not trained to detect or determine environmental hazards or soil conditions. There are no known environmental concerns or adverse soil conditions. The land is not located in a FEMA special flood hazard. Sewer and water connections are proximate and access is convenient. The subject's 2.05+/- acre size, New Day Parkway frontage, and efficient shape are adequate for a variety of commercial uses. Its location within a developing area with commercial uses is beneficial for a commercial use that would benefit from moderate traffic and it's location near the Northgate I-15 Interstate Interchange. In summary, the subject's physical attributes are conducive for a myriad of legal commercial uses. Financially Feasible Uses that are impossible or improbable physically and legally are first eliminated. Those uses that remain are then tested to determine whether they produce sufficient net income to fully pay for all operating expenses and provide adequate compensation for all invested capital. Commercial vacancy is low in Eastern Idaho at this time for office, retail, and industrial uses. Commercial sales prices are currently commensurate with commercial construction costs. Currently a commercial use is a financially feasible use. There are current headwinds which should be considered, like the monetary policy that has increased mortgage interest rates thus reducing effective purchasing power. Caution should be taken through the next year when the real estate sector is expected to stabilize. 24-985 Kirkham Appraisals Inc. Page 57 Maximum Productivity Maximum productivity is considered only if more than one use survives the first three tests. This concept holds land will be developed with the use that returns the greatest positive reward over time assuming it is appropriately supported. However, the numerical return should not be the sole determinant. The numerical reward must be weighted within the context of risk. When a use is expected to produce a very attractive return but the risk is very high, that use is often eliminated. A commercial use is currently the maximally productive use for the subject property. Conclusion As Though Now Vacant Physical Use Timing of Physical Use Interim Use Market Participants Most Likely Buyer Most Likely User A New Commercial Building/Buildings Immediately develop with the physical use No Interim Use An owner -user The buyer Considering the foregoing highest and best use determinations, comparables were selected with the same or similar highest and best use. This data is very influential while forming a value opinion for the property appraised. 24-985 Kirkham Appraisals Inc. Page 58 Land Value "As Is" 24-985 Kirkham Appraisals Inc. Page 59 Land Value Introduction The best method of valuing vacant land is the sales comparison approach. Sales of similar sites are gathered and compared to the parcel being appraised. Differences affecting value are noted. Adjustments to compensate for dissimilarities are applied applicable transactions. Adjusted comparables produce an indication of value for the subject parcel. Any factor can affect value. Those considered during this appraisal's land valuation process included yet are not limited to prominence of location, date of sale, size, shape, availability of utilities, zoning, topography, and access. Numerous sales were reviewed; however, only those deemed most comparable were selected for detailed analysis. All conveyed on an "arm's length" basis except if specifically noted otherwise. Land sales shown herein are presented on a dollar per square foot basis as a common denominator. Abbreviations Used in Some Tables SEC = Southeast Corner Sim = Similar NWC = Northwest Corner Inf = Inferior Loc Fea = Locational Features Sup = Superior There are few, if any, conveyances of truly similar land. Therefore, an opinion of the subject's land value was developed after consideration of scarce sales, which hinders the sales comparison process. Moreover, the allocation method of land valuation was also considered. 24-985 Kirkham Appraisals Inc. Page 60 Land Sale #1 Commercial Property Land Location Data i4,lr ms ity County 110VY5iphon Road Chubburk jekarmcck Sa Ie5 Data Grantor Siphon. PrepertiesLLC Grantee FnanbnG Terrrrs Cash t --Seller Property fight€ Corweged :e3>e AId!:�+:--- and H3ileyAid oL-- Fee=imol=- Sale Date 4JIV2022 Sales Price 52 15,518. G Wruiitiorrs ofSale rmsLength bays on Nrasket {ash Equvarant Pri ce 'de rifi cation 1177 $815, Slaw Jar Tr=m3=: A;ert Economic Indicator Site Data PLartel4 Sze in SF R F RC'.,: H 5X- 1 111,51 on ing 5�ze in Acres w_ ..5E Appraisal Indicators GverallPricePerUnit GrasaRentMuIdp1ier 5-jax Capitalization Rate JPG Varancy EQ Eq woI ISO 15C 50 Iso jsv Th L- is the sale or a parcel of lan-d re ady fur -d evelopment along Yellovr=ne Highway and Siphan (Nrew Days Road There are commercial, industrial, and residential uses that surroun-d it. PictLwe 24-985 Kirkham Appraisals Inc. Page 61 Land Sale #2 Commercial Property Land Location Data Address ityr 1counly TRD NE%v Day Parinvaq Chutbl 12arronk Sales Data Grantor -Spud Bud dl es LLC grantee Interstate DevelapmertGraup, Inc SaLeWte 5ale5Prite 41151 3 $1,129,075.20 Days on Marka Cash Equivalent Price Economic In dicator Rrearririg Terms Cash to Sellar Property Rights Conveyed Fee -Simple Cbriditions ofSale Arm zLen h l-erificati4n erar.dan Ratl iff: Buyer Site Data Parcel #! Size in 5F RPR--PCO2:425 2S1.341 Hing Size in Ac ms C-2 S. , ,app ra isa I Ind icators vera 11 PricePerUnitFrass Renk Multipliei 5 -� C I Capitalization Rate f•:30"r5 PGI EG Expeinues Not. -71, O Iso Iso Comments This isthesaleof 5.77tf- acres along Umv Day Parkway. A n. --w interstate interchange -was mrnpleted within thE f - coupleof years that hasinrreased traffic flow along New Day. The subject was nut grubbed or leveled bEfore pur&.aBE. Buyer provided methesettle-ment statemEnt from AllianEETitJa P-,U"e 24-985 Kirkham Appraisals Inc. Page 62 Land Sale #3 Commercial Property Land Location Data Addrem City C a unty TLC Wev,, CayFarkxvay Chuht+.ct 2arrci�:, Soles Data Grantor 1YY LLC Size in5F F nanr ft Twno-s lash to- Sell er Grantee Z.Dmft ProWnyr Riga& Cu weyed Crape at Chubburk LLC Fee.5imple Sal a date S/2/2019 Sales Price $1 A4Q,05}.M prq GtiOTE of Sale ArmsLen-th Days an Market Cash EquivaIen#Price Verification Unknm-Yn $1,165,,ai.•du C=r{iYE.:IBI Economic Indicator Site Data Parce14 Size in5F -P;FRCWC1CDMW 27€.78Z Z.Dmft &zL- inAires 1 [Limited Can} G. 4C AppraisaI indicators verall Price Per Unit -,ress Rent Multiplier 54.191: -..CC Capitaliaatian Rate PSI Vacancy EG F MI 5C 5-- 150 $ $o Can m enu This is asal-e if a GAGq- acre Parcel that wassp•litfrom a larger Parcel. Thesales price included $275;Odd in road rads acmnd ing to tie- sell er. Th a land was soli in an assisted I Wring tan pang an d th ey are hu ild ing a large assisted I Wring facility. Thecash equivalentprice rerncre-dthe$275;OMin mad cost& viirture jr — -- - — __ _ _ .—w. _ _ 24-985 Kirkham Appraisals Inc. Page 63 Land Sale #4 Commercial property Land Location Data x dd ress city I GMrFty T°C Yr=llaws1nne HY/y ChubbUd-, eanradc Sales Da to Gra,ribar =navy, RCorey 5�ze in SF Frmncirig Terms Cash 1= =eller Gramee Vw am er, Thud are J Property Rights Canve-jed Fe e c i mple Sale Date Sales Price IWncirtons of Sa le Days on Market s125. .-M Cash EquvalentPrice ArmsLer.}th Verification 3' $123,x'C•.311 Keller:AgEnt Economic Indicator Site D a to Parml4 5�ze in SF RPRCCPCG061 LL3 Zo ning SIZE in Ar res Cl2 -a E3 Appraisal Ind icatur.5 vefa9 Price *r Urrt GrM Rent PAultiplier 4.70 110:30 Capitaliaatian Rate J.'L —C PGI a ra n cpi {3 EKPO Imes NCH Is-- 5:1 so Is -- This is a parcel of land acm-cafrflm Crms RoadsRV in ChLbbutk It hasgoadfrantage on YLA-mvstflne and issun-ounded by a n ew townhouse devEkrpm Ent and same rum rremial build nga Rietme r� inmvwru �- �•: a�n g-ajc�cra .:an�ad.a wu: � •. �9rY 4•••• i ci rr+mak FEW nmA ow.etnv-� 4w ' 4ao-- �oaia+� 4G5 [rtw44PS 4r•i•tirr Gb 24-985 Kirkham Appraisals Inc. Page 64 Land Sale #5 Location Data Aamress rbf IC --V 5 328 Ye Ilowstone Avon ue h utrhu do Ban nad€ *a les Data Site Data Grantor Mathew5himaava Finarlc i rig TerTns Cash -, {ellar Ge� . Nope rty Rights Conveje d JRG Haldirts, LLC :s4 Feesimple ;ate Fite Sales Price lCGnd ilia ns of 5a le 5i1V2023 Daip an Market $1,4C4 -M.00 Cwsh EcIdno mt Prive sLength AWM cation Economic indicator PirceL# SwinSF RFR385=&M, R 193,634 ZoInIrmNze rn Ac res M U 4.5 Alin ra isa I Ind icators Overall Price per Unit Grass Rent Multi plier 5'7.--5 . Cap itaIiaatinn Rate :s4 P,I acanof a Expenses h�4 = s: 50 �O ISO I -M• .9. 11enlN This L- thesale -Of txv4 parClso-f land abrig Yellflwa 30EAvenue in Chubbuck that was nut yet annexed irrtotheflty. Therewere im prflve ments that are to be razed i n th a future fDr -developm errt of the knt into tam mercial uses P-rttiee 1M''al + ± ;.; i `3 it r 24-985 Kirkham Appraisals Inc. Page 65 Land Value Summary of Land Sales # Location Sale Size (SF) Zoning Purchase Price/SF Date Price 1. 110 W Siphon Road, 04/22 111,514+/- C-2 $815,518 $7.31 Chubbuck 2. TBD New Day Parkway, 04/22 251,341+/- C-2 $1,129,075 $4.49 Chubbuck 3. TBD New Day Parkway, 05/19 278,784+/- C-1 $1,165,000 $4.18 Chubbuck 4. TBD Yellowstone Highway, 08/21 27,443+/- C-2 $129,000 $4.70 Chubbuck 5. 5328 Yellowstone Avenue, 05/23 198,634+/- MU $1,400,000 $7.05 Chubbuck Subject TBD New Day Parkway, - 89,298+/- C-1 - - Chubbuck 24-985 Kirkham Appraisals Inc. Page 66 kJi# F.1 �. t�� iIpMsmi at 1 _ a' Cl� aIID ilia p awiA ATE fq * �Auim-Aq. _ .!. i J { ftng LL �W Nits LA Land Value Quantitative Adjustment Grid Land/Site Adjustment Grid SUMMARY OF COMPARABLES Subject 1 2 3 4 6 Date of Sale 04/22 04/22 05/19 08/21 05/23 Zoning C-1 C-2 C-2 C-1 C-2 MU Utilities City City City City City City Sale Price $815,518 $1,129,075 $1,165,000 $129,000 $1,400,000 Size (SF) 89,298 111,514 251,341 278,784 27,443 198,634 Price/Square Foot $7.31 $4.49 $4.18 $4.70 $7.05 ADJUSTMENTS Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjusted Price/Foot $7.31 $4.49 $4.18 $4.70 $7.05 Cond/Terms - - - - ($1.41) Adjusted Price/Foot $7.31 $4.49 $4.18 $4.70 $5.64 Market (Time) Adj. $0.00 $0.00 $0.38 $0.14 $0.00 Adjusted Price/Foot $7.31 $4.49 $4.55 $4.84 $5.64 Location - - - - - Zoning - - - - - Size - - - - - Utilities - - - - - Shape/Topography - - - - - Frontage/Access ($1.46) - - - - Other - - - - - ADJUSTED VALUE $5.85 $4.49 $4.55 $4.84 $5.64 Net Adjustment ($1.46) $0.00 $0.00 $0.00 $0.00 Range of Values $4.49 to $5.85 Mean $5.08 24-985 Kirkham Appraisals Inc. Page 68 Land Value Analysis & Conclusions The subject and all cited comparable sales share several characteristics. They are all located in Chubbuck and have similar possible development uses. These commonalities justify inclusion of these transactions in this analysis. Often there are differences between the property appraised ("the subject") and a comparable sale. When the dissimilarity affects value, an adjustment to the sale price of the comparable is necessary. PropeM Rights Agreements or laws create partial interests in real estate. A deed restriction or life estate usually reduces rights and value. If the subject is not affected by these limitations and a comparable is, then the comparable's sale price needs an upward property rights adjustment. In another situation, unfavorable leases eliminate a landlord's right to collect market rent, so the real estate sells for a below-market price. If the property appraised has no lease adversities and a comparable does have unfavorable leases, then the comparable requires upward adjustment. Unless stated otherwise, property rights are virtually the same for the subject and all cited conveyances. Hence, no adjustments are necessary for this element of comparison. Financing Sub -market financing is a common technique used to finance the acquisition of real estate during periods of high interest rates. When non -market financing is used, the financing may be favorable to the buyer so the sale price is inflated. The escalated price can be envisioned as a composite of the worth of real estate plus the value of advantageous financing. Since value created by financing is not real property, the contribution of the advantageous financing must be deducted from total sale price to derive market value for just the realty. On the opposite hand, there are instances where the buyer assumes unfavorable financing, so the sale price is diminished. In the latter case, an upward adjustment must be applied to the sale price of the comparable thusly deriving the market value of the real estate. Unless a statement is made to the contrary, non -market financing was not used to acquire any comparable sale cited in this report. Therefore, no compensations are needed for financing. Conditions of Sale An adjustment for conditions of sale is necessary when a criterion of market value is violated. It could compensate for unusual buyer or seller motivations. For instance, when a seller gives a buyer an atypical rebate, discount, credit, or something of value to induce a conveyance, the sale price is usually inflated. In this case, it is logical to deduct the worth of the giveback from the sale price. Residual sums represent the property's market value. In another scenario, a buyer may pay a premium to facilitate an assemblage. In this instance, the premium must be deducted from the sale price to derive market value for that conveyance. Sale 5 was purchased by a neighbor to assemble into their current parcel, and it appears they paid a premium based on the other sales in the area. This sale is adjusted downward for its premium. Expenditure Post Sale This is a situation when a buyer is compelled to invest additional money into a property immediately after acquisition for some atypical reason. Post -sale invested sums are appropriately added to a comparable's sale price thereby producing an adjusted sale price. Examples are demolition costs or building -code compliance costs. Unless a contrary statement is made, no adjustments are necessary for post -sale expenditures. Market Conditions Adjustments for market conditions are commonly referred to as time adjustments, but this is misleading. Value does not change due to the passage of time; sometimes it remains stable. Often real estate values fluctuate due to changes in supply and demand, interest rates, employment, or inflation. This type of adjustment compensates for change in market conditions between a sale's transaction date and a later point in time. All cited comparables conveyed between May 2019 and this report's effective value date. The market did increase to about the middle of 2022. Sales prior to 2022 were adjusted at 3% annually up through the middle of 2022. Location Each property was rated to the subject for locational aspects such as value growth potential, access, and general desirability. Those transactions with superior locations were adjusted downward and vice versa. All sales are from Chubbuck, so no adjustments were considered necessary. Physical Attributes A myriad of physical characteristics can affect land value. Some examples are lot size, shape, site orientation, availability of utilities, and soil conditions. Those sales with superior physical qualities warrant downward adjustment and vice versa. 24-985 Kirkham Appraisals Inc. Page 69 Size can be an influential factor in value for commercial land. Often smaller size land will sell at a premium over larger parcels of land. I have performed a trend analysis, which indicated low correlation between size and price per square foot, so no adjustments were made. Frontage and access can have a major factor for commercial land values. Often land with high density traffic frontage or very near interstate interchanges will sell at a premium over lower density traffic roads or farther distances from the interstate. Sale 1 is a corner lot, and is adjusted downward. Analysis & Conclusions The appraiser is well aware the cited conveyances are less than ideal comparisons. However, sales of more comparable properties were not discovered during our research. Selected transactions were chosen for analysis because they are all moderately priced, commercial parcels like the subject, that have similar highest and best uses. The adjusted data for the subject varies from $4.49 to $5.85 per sq. ft., with a $5.08 per square foot average. A value near the central tendency is considered reasonable. After consideration of all factors pertaining to and influencing land values, the following is selected as the most fitting value indication for the subject parcel as though vacant. Accordingly, Subject Property 89,298 Sq. Ft. @ $5.00 Per Sq. Ft. _ $446,490 Indicated Market Value of Subject Land "As Is" $445,000 Via Sales Comparison, Say 24-985 Kirkham Appraisals Inc. Page 70 Value Summary The subject property physically consists of two autonomous, vacant parcels creating one tract of land. The tract of land consists of a total of 2.98+/- acres with what appears to be two access points from New Day Parkway based on a site concept plan provided by the client. Of the 2.98+/- acres, only about 2.05+/- acres is usable because of ROW easements along the north side of the property. The land is in a developing area with office, medical office, industrial, residential, and vacant land uses, off anew I-15 Interstate Interchange. This tract of land is zoned "C-1" Limited Commercial by the City of Chubbuck. A highest and best use analysis concluded a commercial use would yield the greatest net return to the land. The cost approach is only applicable buildings with minimal depreciation. In this case, this approach is not an appropriate valuation method. Vacant land is seldom leased in this locale, so rental data for just the land is almost non-existent. Hence, the income approach is also not applicable. The sales comparison approach firmly supports the worth of the land as though vacant. After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof firmly supports a market value for the subject real estate as of March 11, 2024. $445,000 Market Value "As Is" 24-985 Kirkham Appraisals Inc. Page 71 Exposure Time Terminology abounds in the real estate appraisal profession. Two related but different concepts that are often confused are Exposure Time and Marketing Time. USPAP specifically addresses the confusion. Definition Explanation "The estimated length of time the property interest being Backward looking, ends on Exposure Time appraised would have been offered on the market prior to the the effective value date. (Statement 6) hypothetical consummation of a sale at market value on the Based on factual past events effective date of the appraisal". ' "An opinion of the amount of time it might take to sell a real or Forward looking, starts on the Marketing Time effective value date. A (Advisory Personal property interest at the concluded market value forecast based on Opinion 7) during the period immediately after the effective date of the expectancies of future appraisal". occurrences. Marketing time and exposure time are both influenced by price. That is, a prudent buyer could be enticed to acquire the property in less time if the price were less. Hence, the time span cited below coincides with the value opinion(s) formed herein. USPAP Standard rule 1-2(c)(iv) requires an opinion of exposure time, not marketing time, when the purpose of the appraisal is to estimate market value. In the recent past, the volume of competitive properties offered for sale, sale prices, and vacancy rates have fluctuated little. Sale concessions have not been prevalent. In light thereof, an estimated exposure time for the subject is 0 to 12 months assuming competitive pricing and prudent marketing efforts. 24-985 Kirkham Appraisals Inc. Page 72 Contingent and Limiting Conditions 1. By this notice, all persons, companies, or corporations using or relying on this report in any manner bind themselves to accept these Contingent and Limiting conditions, and all other contingent and limiting conditions contained elsewhere in this report. Do not use any portion of this report unless you fully accept all Contingent and Limiting conditions contained throughout this document. 2. The "Subject" or "Subject Property" refers to the real property that is the subject of this report. An Appraiser is defined as an individual person who is licensed to prepare real estate appraisal -related services in the State of Idaho and affixes his / her signature to this document. 3. Throughout these Contingent and Limiting Conditions, the singular term "Appraiser" also refers to the plural term "Appraisers". The terms "Appraiser" and "Appraisers" also refer jointly / collectively to "Kirkham Appraisals Inc.", its officers, employees, contractors, personnel, staff, shareholders, members, and affiliates. The masculine terms "he" or "his" also refer to the feminine term "she" or "her". 4. In these Contingent and Limiting Conditions, the "Parties" refers to all of the following collectively: (a) the Appraiser(s), (b) Kirkham Appraisals Inc., (c) the client, and (d) all intended users. 5. These Contingent and Limiting Conditions are an integral part of this report along with all certifications, definitions, descriptions, facts, statements, assumptions, disclosures, hypotheses, analyses, and opinions. 6. All contents of this report are prepared solely for the explicitly identified client and other explicitly identified intended users. The liability of the Appraiser is limited solely to the client. There is no accountability, obligation, or liability to any other third parry. Other intended users may read but not rely on this report. In no event, shall the Appraisers be liable for consequential, special, incidental or punitive loss, damages or expense (including without limitation, lost profits, opportunity costs, etc.) even if advised of their possible existence. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all contingent and limiting conditions, assumptions, and disclosures. Use of this report by third parties shall be solely at the risk of the third party. 7. This document communicates the results of an appraisal assignment. This communication is not an inspection, engineering, construction, legal, or architectural report. It is not an examination or survey of any kind. Expertise in these areas is not implied. The Appraiser is not responsible for any costs incurred to discover, or correct any deficiency in the property. 24-985 Kirkham Appraisals Inc. Page 73 Contingent and Limiting Conditions 8. As part of this appraisal, information was gathered and analyzed to form opinion(s) that pertain solely to one or more explicitly identified effective value dates. The effective value date is the only point in time that the value applies. Information about the subject property, neighborhood, comparables, or other topics discussed in this report was obtained from sensible sources. In accordance with the extent of research disclosed in the Scope of Work section, all information cited herein was examined for accuracy, is believed to be reliable, and is assumed reasonably accurate. However, no guaranties or warranties are made for this information. No liability or responsibility is assumed for any inaccuracy which is outside the control of the Appraiser, beyond the scope of work, or outside reasonable due diligence of the Appraiser. 9. Appraiser and Client agree the following mutual limitation of liability is agreeable in consideration of the fees to be charged and the nature of appraisal services provided under this Agreement. Appraiser and Client agree to the fullest extent permitted by applicable law, that the Appraiser's and its Personnel's maximum aggregate and joint liability to the other party for claims and causes of action relating to this Agreement for appraisals or other services under this agreement shall be limited to $25,000 or the total of all fees and costs charged by the Appraiser for services that are subject of the claim(s) or cause(s) of action. This limit of liability extends to all types of claims or causes of action, whether in breach of contract or tort, including without limitation claims / causes of action for negligence, professional negligence, or negligent misrepresentation on the part of either party or its Personnel, but excluding claims / causes of action of intentionally fraudulent conduct, criminal conduct, or intentionally caused injury. The Personnel of each parry are intended third parry beneficiaries of this limitation of liability. The word "Personnel", as used in this paragraph, means the respective party's staff, employees, contractors, members, partners, affiliates, and shareholders. Appraiser and Client agree that they each were free to negotiate different terms than stated in this Agreement or contract with other parties. 10. Real estate values are affected by many changing factors. Therefore, any value opinion expressed herein is considered credible only on the effective value date. Every day that passes thereafter, the degree of credibility wanes as the subject changes physically, the economy changes, or market conditions change. The Appraiser reserves the right to amend these analyses and/or value opinion(s) contained within this appraisal report if erroneous, or more factual -information is subsequently discovered. No guarantee is made for the accuracy of estimates or opinions furnished by others, and relied upon in this report. 11. In the case of limited partnerships, syndication offerings, or stock offerings in the real estate, the client agrees that in case of lawsuit (brought by the lender, partner, or part owner in any form of ownership, tenant, or any other party), the client will hold Kirkham Appraisals Inc., its officers, contractors, employees and associate appraisers completely harmless. Acceptance of, and/or use of this report by the client, or any third party is prima facie evidence that the user understands and agrees to all these conditions. 24-985 Kirkham Appraisals Inc. Page 74 Contingent and Limiting Conditions 12. For appraisals of multiunit residential, only a portion of all dwellings was observed. A typical ratio of observed dwellings roughly approximates 10% of the total number of units, and this ratio declines as the number of dwellings grows. It is assumed the functionality, physical condition, construction quality, and interior finish of unseen units are like the functionality, physical condition, construction quality, and interior finish of observed units. If unobserved dwellings significantly differ from those that were viewed in functionality, physical condition, quality, or finish, the Appraiser reserves the right to amend theses analysis and/or value opinion(s). 13. If the appraised property consists of a physical portion of a larger parcel is subject to the following limitations. The value opinion for the property appraised pertains only to that portion defined as the subject property. This value opinion should not be construed as applying with equal validity to other complementary portions of the same parcel. The value opinion for the physical portion appraised + the value of all other complementary physical portions may or may not equal the value of the whole parcel. 14. Unless specifically stated otherwise herein, the Appraiser is unaware of any engineering study made to determine the bearing capacity of the subject land, or nearby lands. Improvements in the vicinity, if any, appear to be structurally sound. It is assumed soil and subsoil conditions are stable and free from features that cause supernormal costs to arise. It is also assumed existing soil conditions of the subject land have proper load bearing qualities to support the existing improvements, or proposed improvements appropriate for the site. No investigations for potential seismic hazards were made. This appraisal assumes there are no conditions of the site, subsoil, or structures, whether latent, patent, or concealed that would render the subject property less valuable. Unless specifically stated otherwise in this document, no earthquake compliance report, engineering report, flood zone analysis, hazardous substance determination, or analysis of these unfavorable attributes was made, or ordered in conjunction with this appraisal report. The client is strongly urged to retain experts in these fields, if so desired. 15. If this report involves an appraisal that values an interest, which is less than the whole fee simple estate, then the following disclosure applies. The value for any fractional interest appraised + the value of all other complementary fractional interests may or may not equal the value of the entire fee simple estate. 16. If this appraisal values the subject as though construction, repairs, alterations, remodeling, renovation, or rehabilitation will be completed in the future, then it is assumed such work will be completed in a timely fashion, using non -defective materials, and proper workmanship. All previously completed work is assumed completed in substantial conformance with plans, specifications, descriptions, or attachments made or referred to herein. It is also assumed all planned, in -progress, or recently completed construction complies with the zoning ordinance, and all applicable building codes. A prospective value opinion has an effective value date that is beyond or in the future relative to this report's preparation date. If this appraisal includes a prospective valuation, it is understood and agreed the Appraiser is not responsible for an unfavorable value effect caused by unforeseeable events that occur before completion of the project. 24-985 Kirkham Appraisals Inc. Page 75 Contingent and Limiting Conditions 17. This valuation may or may not include an observation of the appraised property by an Appraiser. The extent of any observation is disclosed in the Scope of Work section of this report. Any observation by an Appraiser is not a professional property inspection. Viewing of the subject was limited to components that were not concealed, clearly observable, and readily accessible without a ladder on the property observation date. As used herein, readily accessible means within the Appraiser's normal reach without the movement of any man made or natural object. Comments or descriptions about physical condition of the improvements are based solely on a superficial visual observation. These comments are intended to familiarize the reader with the property in a very general fashion. 18. The allocation of value between the subject's land and improvements, if any, represents our judgment only under the existing use of the property. A re-evaluation should be made if the improvements are removed, substantially altered, or the land is utilized for another purpose. 19. The Client and all intended users agree to all the following. (A) This appraisal does not serve as a warranty on the physical condition or operability of the property appraised. (B) All users of this report should take all necessary precautions before making any significant financial commitments to or for the subject. (C) Any estimate for repair or alternations is a non -warranted opinion of the Appraiser. 20. Electric, heating, cooling, plumbing, water supply, sewer or septic, mechanical equipment, and other property systems were not tested. No determination was made regarding the operability, capacity, or remaining physical life of any component in, on, or under the real estate appraised. All building components are assumed adequate and in good working order unless stated otherwise. Private water wells and private septic systems are assumed sufficient to comply with federal, state, or local health safety standards. No liability is assumed for the soundness of structural members since structural elements were not tested or studied to determine their structural integrity. The roof cover for all structures is assumed water tight unless otherwise noted. This document is not an inspection, engineering or architectural report. If the client has any concern regarding structural, mechanical, or protective components of the improvements, or the adequacy or quality of sewer, water or other utilities, the client should hire an expert in the appropriate discipline before relying upon this report. No warranties or guarantees of any kind are expressed or implied regarding the current or future physical condition or operability of any property component. 21. Any exhibits in the report are intended to assist the reader in visualizing the subject property and its surroundings. The drawings are not surveys unless specifically identified as such. No responsibility is assumed for cartographic accuracy. Drawings are not intended to be exact in size, scale, or detail. 22. Value opinions involve only real estate, and inconsequential personal property. Unless explicitly stated otherwise, value conclusions do not include personal property, unaffixed equipment, trade fixtures, business - good will, chattel, or franchise items of material worth. 24-985 Kirkham Appraisals Inc. Page 76 Contingent and Limiting Conditions 23. All information and comments concerning the location, market area, trends, construction quality, construction costs, value loss, physical condition, rents, or any other data for the subject represent estimates and opinions of the Appraiser. Expenses shown in the Income Approach, if used, are only estimates. They are based on past operating history, if available, and are stabilized as generally typical over a reasonable ownership period. 24. No liability is assumed for matters of legal nature that affect the value of the subject property. Unless a clear statement to the contrary is made in this report, value opinion(s) formed herein are predicated upon the following assumptions. (A) The real property is appraised as though, and assumed free from all value impairments including yet not limited to title defects, liens, encumbrances, title claims, boundary discrepancies, encroachments, adverse easements, environmental hazards, pest infestation, leases, and atypical physical deficiencies. (B) All real estate taxes and assessments, of any type, are assumed fully paid. (C) It is assumed ownership of the property appraised is lawful. (D) It is also assumed the subject property is operated under competent and prudent management. (E) The subject property was appraised as though, and assumed free of indebtedness. (F) The subject real estate is assumed fully compliant with all applicable federal, state, and local environmental regulations and laws. (G) The subject is assumed fully compliant with all applicable zoning ordinances, building codes, use regulations, and restrictions of all types. (H) All licenses, consents, permits, or other documentation required by any relevant legislative or governmental authority, private entity, or organization have been obtained, or can be easily be obtained or renewed for a nominal fee. 25. Conversion of the subject's income into a market value opinion is based upon typical financing terms that were readily available from a disinterested, third party lender on this report's effective date. Atypical financing terms and conditions do not influence market value, but may affect investment value. 26. This appraisal was prepared by Kirkham Appraisals Inc. and consists of trade secrets and commercial or financial information, which is privileged, confidential, and exempt from disclosure under 5 U.S.C. 522 (b) (4). 27. The Appraiser is not required to give testimony or produce documents because of having prepared this report unless arrangements are agreed to in advance. If the Appraiser is subpoenaed pursuant to court order or required to produce documents by judicial command, the client agrees to compensate the Appraiser for his appearance time, preparation time, travel time, and document preparation time at the regular hourly rate then in effect plus expenses and attorney fees. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. 24-985 Kirkham Appraisals Inc. Page 77 Contingent and Limiting Conditions 28. Effective January 26, 1992, the Americans with Disabilities Act (ADA) - a national law, affects all non- residential real estate or the portion of any property, which is non-residential. The Appraiser has not observed the subject property to determine whether the subject conforms to the requirements of the ADA. It is possible a compliance survey, together with a detailed analysis of ADA requirements, could reveal the subject is not fully compliant. If such a determination was made, the subject's value may or may not be adversely affected. Since the Appraiser has no direct evidence, or knowledge pertaining to the subject's compliance or lack of compliance, this appraisal does not consider possible noncompliance or its effect on the subject's value. 29. Kirkham Appraisals Inc. and the Appraiser have no expertise in the field of insect, termite, or pest infestation. We are not qualified to detect the presence of these or any other unfavorable infestation. The Appraiser has no knowledge of the existence of any infestation on, under, above, or within the subject real estate. No overt evidence of infestation is apparent to the untrained eye. However, we have not specifically inspected or tested the subject property to determine the presence of any infestation. No effort was made to dismantle or probe the structure. No effort was exerted to observe enclosed, encased, or otherwise concealed evidence of infestation. The presence of any infestation would likely diminish the property's value. All value opinions in this communication assume there is no infestation of any type affecting the subject real estate or the Appraiser is not responsible for any infestation or for any expertise required to discover any infestation. Our client is urged to retain an expert in this field, if desired. 30. All opinions are those of the signatory Appraiser based on the information in this report. No responsibility is assumed by the Appraiser for changes in market conditions, or for the inability of the client, or any other party to achieve their desired results based upon the appraised value. Some of the assumptions or projections made herein can vary depending upon evolving events. We realize some assumptions may never occur and unexpected events or circumstances may occur. Therefore, actual results achieved during the projection period may differ from those set forth in this report. Compensation for appraisal services is dependent solely on the delivery of this report, and no other event or occurrence 31. No warrantees are made by the Appraiser concerning the property's conformance with any applicable government code or property covenant including but not limited to all laws, ordinances, regulations, agreements, declarations, easements, condominium regulations, restrictions, either recorded or unrecorded. The client is urged to engage the services of a licensed attorney to confirm any legal issue affecting the property appraised. No liability or responsibility is assumed by the Appraiser to determine the cost of replacing or curing any supposedly defective physical component. 32. In the event of an alleged claim due to some defective physical component, the client must notify Kirkham Appraisals Inc. and allow its representatives and experts to examine and test the alleged defective component before any repairs or modifications are made. If any type of repair or modification is made without the knowledge of the Appraisers, the Appraiser is released from all liability, real or alleged. 24-985 Kirkham Appraisals Inc. Page 78 Contingent and Limiting Conditions 33. The client and all explicitly identified intended users agree to notify in writing Kirkham Appraisals Inc., within one year of this report's preparation date, of any claim relating to or arising from this report regardless of any statute of limitations. If Kirkham Appraisals Inc. does not receive this written notification within the year period defined in the paragraph, then the claimant releases the Appraiser from all claims arising from or related to this report. 34. The client and all explicitly identified intended users acknowledge that any claim relating to this report shall be settled in accordance with the commercial arbitration rules of the American Arbitration Association with the Parties each paying an equal share of all associated costs. 35. Any alleged claim must be filed in the Circuit Court for the County that encompasses most of or all of Pocatello, Idaho 83206 where the Appraiser's business office is located. If a court of law voids any portion of these Contingent and Limiting Conditions, then the remainder remains in full force and effect. The claimants(s) agree not to contest the venue set forth herein and to submit to, and not contest, the exercise of personal jurisdiction over them by the foregoing court. The claimant(s) waive all rights concerning the exercise of personal jurisdiction of them by the foregoing courts and all claims of or concerning forum non - conveniences in the foregoing forum. 36. Superseding all comments to the contrary regardless of the date, this report may not be transferred or assigned without the prior written consent of Kirkham Appraisals Inc., the copyright holder. 37. No part of this report shall be published or disseminated to the public by advertising media, public relations media, news media, sales media, electronic devices, or other media without the prior written consent of Kirkham Appraisals Inc.. This restriction applies particularly as to analyses, opinions, and conclusions; the identity of the Appraiser; and any reference to the Appraisal Institute or its MAI, SRPA, or SRA designations. Furthermore, no part of this report may be reproduced or incorporated into any information retrieval system without prior written permission from Kirkham Appraisals Inc., the copyright holder. 24-985 Kirkham Appraisals Inc. Page 79 Certification The appraiser signing this report make the following certifications to the best of his / her knowledge and belief. ➢ The statements of fact contained in this report are true and correct. ➢ Reported analyses, opinions, and conclusions are limited only by the assumptions and limiting conditions contained within this report, and are the appraiser's personal, impartial, and unbiased professional analyses, opinions, and conclusions. ➢ The appraiser has no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. ➢ The appraiser has no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. ➢ This engagement is not contingent upon developing or reporting predetermined results. ➢ Compensation paid to the appraiser is not contingent upon the development or reporting of a predetermined value, or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal. ➢ Reported analyses, opinions, and conclusions were developed, and this report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) ➢ A statement regarding observation of the subject property by the appraiser is listed below. The appraiser is not a professional property inspector. Furthermore, the appraiser has no formal training in the use of tools or instruments as part of a professional property inspection. Observations by the appraiser, if any, was limited to just those physical features and attributes that are not hidden or obscure in any fashion by any object or weather condition. The appraiser did not used any tools or instruments, beyond those typically used by appraisers to probe, study, investigate, detect, or discover any physical feature or attribute that was not clearly visible on the date the property was observed. Appraiser Brian Kirkham, MAI Observations Moderate Land Viewing ➢ No one provided significant real property appraisal assistance to the appraiser(s) signing this certification. ➢ The appraisers have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report during the three-year period immediately preceding acceptance of this assignment. 24-985 Kirkham Appraisals Inc. Page 80 Certification ➢ Use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. I have completed all continuing education requirements for designated members of the Appraisal Institute. ➢ After careful consideration of all factors pertaining to and influencing value, the data, and analysis thereof firmly supports the following final value opinion(s) for the subject property as of March 11, 2024: $445,000 Market Value "As Is" Brian Kirkham, MAI Certified General Appraiser Idaho License CGA -3486 License Expiration Date: 5/9/2024 24-985 Kirkham Appraisals Inc. Page 81 t JL Addenda* • • Digital Images Our world is rapidly shifting to a global economy in which technology and e-commerce play major roles. Digitized signatures and digital photographs are key elements of this shift. This appraisal may contain digital photographs, which are true and accurate representations. Brightness and/or contrast of these images may have been adjusted to enhance visibility when lighting conditions were too light or too dark. However, the content of these images was not altered or augmented in any way. Digital signatures may be affixed to this document. Statement 8 of USPAP recognizes and addresses the proper use of digitized signatures. In this document, a digital signature is a reproduction of the appraiser's actual signature. Software used for the affixation has a password security feature, which controls its usage. 24-985 Kirkham Appraisals Inc. Page 82 Technical Qualifications Technical QuaUtcations $rlan KlrkhArn. MAi liliMhain Appralsin lx Inc. 231E.i riiis vievy COil rl pncajolb. Id B3201 Fdutatiou: SA_ Degree, Applied EconGinics Idaho Stale T-Tm-%ersity, 2610 IDAHO CERIIFIED GENERAL APPKAJI ER CGA -3486 Service Edreauon Chairman far Sauthem Idaho Chapter of the Appraisal Eisl uta X2616-2621) Sp-LLcia&red Background: - Semi= and mursea urponswed by the Appraisal Institute Ameiican Society ofFarm 'Managers and liana! Appraisers and American Institute of Real Estate Appmisers, and Institute of Real EstateAppraLsal Studies mchldmg: Appraisal Institute-Qaantitatit,,E Aaa13sn Appraisal instmce-.fid,! anted Concept and Case Studies Appraisal lnstitrite-Advanced MarkerAaaZysis and Hie'hest and $est Use Appraisal in_ to-A&mced Income Capualiaation Appraisal Institute -General Appraiser Income Capitalisation I Appraisal iustmire-General Appraises income Capitallzatioo IT Appraisal In_ e -General Appraise3 Market Analysis and Highest & Befit Use Appraisal Inst3h"-Gesser31 Sale9 C'ompansOB Approach Appraisal lusla ee-General Cost Approach and Site Analysis Appraisal Institute-Gemeral Report Writing Appraisal lustrrute-General Appraisez Market Analyses and Ilrghes# & BestUrge Appraisal Institute -Statistic s Appraisal institute -Ad>: anted Resideunal Appiicatians and Cast Studies USPAP USPAP Update Institute of Real Estate Appraisal Studws-Fundamentals ofRzal Estate Ap.rassals Institute of Real Estate Appraisal Studies --,Residential Appraisal Techniques I Institute of Real Estate Appraisal Studies— Highest and Rest Use Numerous other related courses, seminars and personal study Emonan t Domain and Condemnation Appraisal Erperiencet -Nineteen years of appraisal expenente and appraisal relnew functions I am a designated member of the Appraisal Institute. Area and Type of Appraisals: -Performed appraisals and comsultmg in Idaho with expmenee in Southern and Sautheastein Idaho on residential and commercial propertzes. im{iaian or Oraupotonel end Prnrom wLkorlwa DaNrWent a 540 fir[+ lrg At"c11R M �e'Sn ii+� in�i n. r..��narrt 4i4�ir�rr ri4iMrl ■aawzaN rbc al IY[ 91rY al p1Yr 4W M µll oEFMFLM air WAL AP44VUSW eFwul KiNTH KInKHAM LM DUSK YIEW Cr POC TR1DiD 99201 R4ULA* rc a� ccu>ruw os019h." tl��.k`ntr Nunic EtpYR 24-985 Kirkham Appraisals Inc. Page 83 Engagement Letter Appwaisa I Ass ignm ent RKHAM ppraisals P_O. Sox 2503 Pocatello, Idaho 832D6 (208) 233-4132 DATE OF AGREEMENT: 02/26/202A PARTIES TO AGREEMENT-. Client: LandQuest Client Representative: Brandon Ratriff Address= FSA City, State, Zip: NA Phone: �208j221-4962 Email: kandquest@hotmail_com Appraiser Name: Shan Kirkham, MAI Company: Kirkham Appraisals, Inc. Address: PD Bax 2503 City, State, Zip.. Pocatello, lD 83206 Phone: 208-233-4132 E-mail- KiTlchamapRraisal�DGmall.corr., j.kirkhamappraisalftmail_r_om 24-985 Kirkham Appraisals Inc. Page 84 Client hereby engages Appraiser to complete appraisal assignments as follows: PROPERTY IDENTIFICATION Appraisal 1: A 4.78+f- AC Port ions of RPRCCPG04S401 Appraisal 2= 2.48 +/- AC Tract cDnstaining RPRCCPOD24406 & RPRCCPCO24409 PROPERTY TYPE Commercial INTEREST VAWED Fee Sample IMENDED USERS LaridQuest Notes Na other users i2re intended by Appruiser_ The appraiser shall consider the intended users when determ&ring the level of detail to be provided in ttre Appraisai Report_ 24-985 Kirkham Appraisals Inc. Page 85 INTENDED USE Decisions by ownership for potential land swap TYPE OF VALUE Market value as defined by the appraisal requirements pursuant to FIRREA- DATE OF VALUE Current HYPOTHETICAL CONDITIONS, EHTRAORD1NARY ASSUMPTIONS ITal --W-*oted- APPLICABLE REQUIREMENTS OTHER THAN THE UNIFORM STANDARDS OF PROFESSIONAL APP RA ISA LPRACTICE JUSPAP] The Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute ANTICIPATED SCOPE OF WORT{ Site visit Observation of the property. Valuation approaches Sales Comparison Approach Note= Appraiser shall use all approaches necessary to develop a credible opinion of value_ APPRAISAL REPORT Form or format; Narrative 24-985 Kirkham Appraisals Inc. Page 86 CONTACT FOR PROPERTY ACCESS, IF APPLICABLE NA DELIVERY DATE Four weeks from the date of engagement DELIVERY METHOD E-mail= landquest9hotmail.com NUMBER OF COPIES 1 PDF version PAYMENT The fee of $3,640 is to be call ected prior to completion of the report and ca be mailed by the client to the add ress provided above. If the Appraiser is subpoenaed pursuant to courtorder or required to produce documents by judicial cammandr the client agrees to compensate the Appraisers for their appearance time, preparation time, travel time, and document preparation time at 5344 hourly rate then in effect plus expenses and attomeyfees. In the event the real prop" appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. CONFIDENTIALrfY Appraiser shall not provide a copy of the written Appraisal Report to or disclose the results of the appraisal prepared in accordance with this Agreement with, any party other than Client, unless Client authoriZesr except as stipulated in the Confidentiality Section of the ETHICS RULE of the Uniform Standards of Professional Appraisal Practice (USPAP)- CHANGES TO AGREEMENT Any changes to the assignment as outlined in this Agreement shall necessitate a new Agreement. The identity of the client, intended users, or intended use; the date of value; type of value; or property, appraised €annot be changed without a new Agreement 24-985 Kirkham Appraisals Inc. Page 87 CANCELLATION Client may cancel this Agreement at anytime prior to the delivery of the report upon written notification to the company. Client shall pay Appraiserfor work completed on assignment prior to receipt of written cancellation notice, un less otherwise agreed upon by Appraiser and Client in writing_ NO THIRD -PARTY BENEFICIARIES Nothing in this Agreement shall create a contractua I rel ationship between the Appraiser -or the Cl lent and any third party, or any cause of action in favor of a ny th ird party. Th is Agreement shall not be €onstmed to render any person or entity a th ird-pa rty beneficiary of this Agreementr incl udingr but not limited to, a ny third parties identified herein. USE OF EMPLOYEES OR INDEPENDENT CONTRACTORS Appraiser may use employees or independent contractors at Appraiser's discretion to complete the ass ignmentr unless otherwise agreed by the parties_ Notwithstanding, Appraiser shall sign the written Appraisal Report and take full responsibility for the services provided as a result of this agreement_ TESTIMONY AT COURT OR OTHER PROCEEDINGS Unless otherwise stated in this Agreement, Client agrees that Analyst's assignment pursuant to this Agreement shall not include the Analyst's participation in or preparation forr whether voluntarily or pursuantto subpoena, any oral or written discovery, sworn testimony in ajudi€ial, arbitration or administrative proceeding, or attendance at a ny jud icial, arbitration, or administrative proceeding rel ating to this assignment_ APPRAISER INDEPENDENCE Appraiser cannot agree to provide a value opinion that is contingent on a predetermined amount. Appraiser ca nnot guarantee the outcome of the assignment in adva nae. Appra iser cannot ensure that the opin ion of value developed as a result of this Assignment wil I serve to fall itate a ny specific obj ective t y Client or others or advance anyparticular €ause. Appraiser's opinion ofvaluewill Ibedeveloped competently and with independen€er impartia I ityr and objectivity. EXPIRATION OF AGREEMENT This Agreement is valid only ifsigned by both the Appraiser and Client within 3 days of the Date of Agreement specified. GOVERNING LAW & JURISDICTION The interpretation and enforcement of this Agreement shall be governed by the laws of the state in which the Analysts principal place of business is located, exclusive of any choice of law rules_ 24-985 Kirkham Appraisals Inc. Page 88 ey Apprats.!r: $risn_IClrkha�n. . (Printad na„tej (date) By talent; )Signature) jPrutted Warne) (dare) 24-985 Kirkham Appraisals Inc. Page 89 Copyright Protection © Copyright 2024 Kirkham Appraisals Inc. Pocatello, Idaho 83206 All Rights Reserved. No part of this document may be reproduced, nor may any portion be incorporated into any information retrieval system without written permission from Kirkham Appraisals Inc., the copyright holder. The descriptions, analyses, and conclusions stated herein are intended for the exclusive use of our client, LandQuest, and other explicitly identified intended users, if any. This report should only be used for the intended use stated herein. Kirkham Appraisals Inc. retains all rights, title, and interests in all trademarks, trade names, trade secrets, data, conclusions, opinions, valuations, and other information included in, arising out of, or in any way related to this appraisal. No person or entity shall be entitled to break down, strip out, mine, or disseminate any component or portion of this report, including, but not limited to any valuations, opinions, data compilations, or conclusions. This report and all its contents are a culmination of intellectual and professional experiences, education, personal investigations, and know-how, which shall at all times remain the property of Kirkham Appraisals Inc., its sole owner. End of Report 24-985 Kirkham Appraisals Inc. Page 90 A'7 i1114KIRKHAM :�Appraisalss (Bus) (208)233-4132 P.O. Box 2503 Kirkhamappraisal@gmail.com Pocatello, Idaho 83206 ATTACHMENT #2 RATLIFF PROPERTY APPRAISAL REPORT AN APPRAISAL REPORT OF A 2.05+/- Acre Tract of Vacant High Density Residential Land LOCATED AT Lot 15 Legacy Park Division #2 Chubbuck, Idaho 83202 CLIENT LandQuest J&KIRKHAM Appraisals P.O. Box 2503 Pocatello, Idaho 83206 (Bus) (208)233-4132 October 4, 2024 Mr. Brandon Ratliff LandQuest Dear Brandon Ratliff, Re: Lot 15 Legacy Park Division #2 Chubbuck, Idaho 83202 At your request, we have appraised a real property interest for the above real estate. Our objective was to form one or more opinions about the market value for a 100% ownership interest in the subject property's fee simple estate assuming no liens or encumbrances other than normal covenants and restrictions of record. The subject property physically consists of a 2.05+/- acres portion of larger parcel RPRCCPC045401. The subject is accessed near the tennis courts in Capell Park. The land is in a developing area with office, medical office, industrial, high density residential, and vacant land uses, near a new I-15 Interstate Interchange. This tract of land is zoned "R-4" Dense Residential by the City of Chubbuck. This valuation contains analyses, opinions, and conclusions along with market data and reasoning appropriate for the scope of work detailed later herein. It was prepared solely for the intended use and intended user(s) explicitly identified in the attached report. Unauthorized users do so at their own risk. The appraisal is communicated in the attached document, which conforms to the version of the Uniform Standards of Professional Appraisal Practice (USPAP) in effect on this report's preparation date of October 4, 2024. This letter is not an appraisal report hence it must not be removed from the attached 91 -page document. If this letter is disjoined from the attached appraisal report, then the value opinions set forth in this letter are invalid because the analyses, opinions, and conclusions cannot be properly understood. In general, valuation of the subject property involves no atypical issues. All value opinions are affected by all the information, extraordinary assumptions, hypotheses, general limiting conditions, facts, descriptions, and disclosures stated in the attached appraisal report. After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof firmly supports the following final value opinion(s) for the subject property as of March 11, 2024: $445,000 Market Value "As Is" Thank you for your business. Let us know how we may further serve you. Brian Kirkham, MAI Certified General Appraiser Idaho License CGA -3486 License Expiration Date: 5/9/2024 Table of Contents Overview....................................................................................................... l SalientInformation........................................................................................................ l NoteworthyIssues.........................................................................................................1 Scopeof Work..............................................................................................2 Scopeof Work...............................................................................................................2 Introduction.............................................................................................................. 2 Assignment Elements................................................................................................ 2 Relevant Characteristics.......................................................................................... 4 Extent of Services Provided...................................................................................... 5 Other Intended Use Considerations......................................................................... 5 MiscellaneousMatters.............................................................................................. 5 Appraisal Development............................................................................................ 6 ConceptExplanations............................................................................................... 8 Scopeof Work Limitation............................................................................................. 9 Report Reliance & Use Restrictions.............................................................................. 9 Scope of Work Exclusion - Insurable Value...............................................................10 Extraordinary Assumptions & Disclosures.................................................................. l l Hypothetical Conditions..............................................................................................12 Personal Property & Intangibles..................................................................................12 Definition of Market Value.........................................................................................13 Definition of Real Property Estates.............................................................................14 Non -Disclosure State...................................................................................................16 Assemblage..................................................................................................................16 Disclosures..................................................................................................17 ProfessionalStandards.................................................................................................17 Competency.................................................................................................................17 AreaData...................................................................................................18 RegionalMap..............................................................................................................18 NearbyLand Uses........................................................................................................ 34 Pocatello/Chubbuck Residential Market Analysis......................................................35 Regional Multi -Family Market Data........................................................................... 37 SubjectProperty........................................................................................41 Identification of the Property ....................................................................................... 41 LegalDescription.........................................................................................................41 AerialView..................................................................................................................42 SoilsMap.....................................................................................................................43 TopographyMap......................................................................................................... 44 SaleHistory................................................................................................................. 48 FloodHazard............................................................................................................... 48 RealEstate Taxes.........................................................................................................48 Zoning.......................................................................................................................... 48 Zoning.......................................................................................................................... 49 EnvironmentalRisks.................................................................................................... 50 SubjectProperty .......................................................................................................... 51 SubjectSite.................................................................................................................. 51 Analyses& Conclusions............................................................................52 ValueIntroduction....................................................................................................... 52 RealEstate Cycles....................................................................................................... 53 Highestand Best Use................................................................................................... 54 LandValue..................................................................................................................60 Introduction............................................................................................................ 60 Summary of Land Sales.......................................................................................... 67 Land Sales Location Map....................................................................................... 68 Analysis & Conclusions.......................................................................................... 70 ValueSummary........................................................................................................... 72 ExposureTime.............................................................................................................73 Contingent and Limiting Conditions ........................................................................... 74 Certification................................................................................................................. 81 Addenda...................................................................................................... 83 DigitalImages.............................................................................................................. 83 TechnicalQualifications.............................................................................................. 84 EngagementLetter....................................................................................................... 85 CopyrightProtection.................................................................................................... 91 Endof Report ............................................................................................................... 91 Overview • • Salient Information Property Type Vacant Tract of High -Density Residential Land Real Estate Appraised Lot 15 Legacy Park Division #2 Chubbuck, Idaho 83202 County Bannock Estate Valued 100% of the Fee Simple Estate Client LandQuest Client File Number 24-984 Most Likely Buyer Developer Effective Value Date (point in time that the value applies) March 11, 2024 Report Date (date the report is transmitted to client) October 4, 2024 Land Size (Usable) 2.05+/- Acres or 89,568+/- square feet Flood Hazard Zone X Zoning Classification "R-4" by the City of Chubbuck Highest & Best Use As Though Vacant Multi -Unit Residential Final Value Conclusion(s) $445,000 Market Value "As Is" Noteworthy Issues The subject property physically consists of a 2.05+/- acres portion of larger parcel RPRCCPC045401. The subject is accessed near the tennis courts in Capell Park. The land is in a developing area with office, medical office, industrial, high density residential, and vacant land uses, near a new I-15 Interstate Interchange. This tract of land is zoned "R-4" Dense Residential by the City of Chubbuck. No atypical factors significantly affect value. The real estate appraised is generally typical for this type of property in this locale. 24-985 Kirkham Appraisals Inc. Page 1 Scope of Work ...�� Scope of Work Introduction The Uniform Standards of Professional Appraisal Practice (USPAP) defines scope of work as "the type and extent of research and analysis in an assignment". Scope of work includes, but is not limited to: ➢ the extent to which the property is identified; ➢ the extent to which tangible property is observed; ➢ the type and extent of data researched; and ➢ the type and extent of analyses applied to arrive at opinions or conclusions. Assignment Elements The purpose of this assignment (the problem to be solved) is to form one or more opinions about value. This purpose necessitates identification of seven assignment elements listed below. 1. Client Information Client's Name ** Client's Company Name Appraiser(s) Engaged By Client's Interest In Property Appraised 2. Other Intended Users 3. Intended Use Of Report (To aid) 4. Value Opinion(s) Developed Standard / Definition Of Value Used To Form The Value Opinion(s) ** The client is always an intended user. Mr. Brandon Ratliff LandQuest The Client Owner None Decisions By Ownership Market value Advisory Opinion 30 of USPAP, which is the same definition as the one in FIRREA. 24-985 Kirkham Appraisals Inc. Page 2 Scope of Work Assignment Elements 5. Key Dates Effective Value Date (point in time the value applies) Date Property Appraised Was Observed By One Or More Appraisers Signing This Report 6. Assignment Conditions Extraordinary Assumptions Hypothetical Conditions Jurisdictional Exceptions Expected Public or Private On -Site or Off - Site Improvements Affect Value Assemblage of Estates or Component Parts Affects Value Other March 11, 2024 Land Observed March 11, 2024 One Or More Apply, Detailed Later Herein None Used None Used Not Expected Not Expected None Used 24-985 Kirkham Appraisals Inc. Page 3 Scope of Work Relevant Characteristics The seventh assignment element is relevant characteristics about the property appraised. These characteristics are typically categorized as physical, legal, and economic. Physical attributes of the property appraised are presented later in the Subject section of this report. Some characteristics are identified below. Atypical issues are listed in the Noteworthy Issues section and may be further detailed elsewhere herein. Unless specifically stated otherwise, the estate appraised (listed below) assumes no adverse leases, liens or encumbrances other than normal covenants and restrictions of record. 7a. Physical Existing Property Use Property Use Reflected In One Or More Value Opinions Sources of Information About the Property Appraised Included 7b. Legal Category Of Property Appraised Estate(s) Appraised Legal Issues Considered Environmental Concerns 7e. Economic Effect Of Lease(s) On Value Cost Information Type of Reconstruction Cost Used Source of Reconstruction Cost Information Vacant Land Vacant Land Just An Exterior Observation; Online Public Records; Public Records in Government Office Real Property Fee Simple No Atypical Legal Issues No Known Environmental Concerns No Leases Hence Not Applicable Not Applicable Not Applicable 24-985 Kirkham Appraisals Inc. Page 4 Scope of Work Extent of Services Provided Number of Final Value Opinions Developed Value Opinion(s) Reflect the Worth Of the Property Appraised Extent Of Report Preparation Other Reporting Requirements Extent Of Data Research Data Sources Documents Considered Data Verification Extent Of Subject Observation by One Or More Appraisers Signing Report Other Intended Use Considerations Client's Prior Engagement Of Appraisal Services Loan To Value Ratio Atypical Issues Assignment Complexity FIRREA Compliance Insurable Value Miscellaneous Matters Scope of Work Agreement One As Is An Appraisal Report Not Applicable Extensive Local MLS; Private Data Provider Service; Public Records at Gov't Office(s); Public Records on Gov't Website(s); Online Public Records; Other Appraisers; Real Estate Sales Agents; Buyers and / or Sellers; Landlords and / or Tenants None Direct and Indirect Methods Moderate Land Viewing Specifics of this viewing, if any, are detailed in the Extraordinary Assumptions & Disclosures section of this report. Never Not Applicable No Atypical Issues Typical Complexity FIRREA Not Applicable Insurable Value Is Not An Intended Use Agreement in Addenda 24-985 Kirkham Appraisals Inc. Page 5 Scope of Work Appraisal Development Appraisal development is the extent of research and analyses that produce one or more credible opinions of value for one or more specifically identified intended users and an explicitly stated intended use. In this context, credible is defined as "worthy of belief'. Depending upon the intended use, intended users, and agreements between the appraiser and the client, the appraisal development process may include several, but not necessarily all of the following tasks. ➢ observation of the property appraised ➢ research for appropriate market data ➢ data verification ➢ consideration of influential market area, physical, economic, and governmental factors ➢ determination of the subject's highest and best use(s), if appropriate ➢ development of one or more applicable approaches to value ➢ reconciliation of value indications ➢ preparation of this report In most cases, the core valuation process begins with a highest and best use analysis. This is essential because it establishes a framework for the proper selection of comparables. Cited comparables should have the same highest and best use as the property appraised. 24-985 Kirkham Appraisals Inc. Page 6 Scope of Work Appraisal Development If some property modification like new construction is contemplated, a feasibility analysis may be appropriate. In some cases, feasibility may simply be justified by inferred market evidence like low vacancy or rising rents. According to USPAP, all approaches that are applicable to the interest being appraised and necessary to produce credible results must be developed. The type of highest and best use; extent of feasibility considered; and the relevance of each major approach are listed below. Highest and Best Use Feasibility Analysis (a more detailed study separate from highest & best use) Cost Approach Sales Comparison Income Approach An Inferred Demand Analysis Separate Feasibility Analysis Not Developed Not Applicable And Not Included In Report Applicable And Included In Report Not Applicable And Not Included In Report Quoting "The Appraisal of Real Estate" Thirteenth Edition published by the Appraisal Institute, page 186 says: "Highest and best use analysis and feasibility analysis are interrelated, but feasibility analysis may involve data and considerations that are not directly related to highest and best use determinations. Such analyses may be more detailed than highest and best use analysis, have a different focus, or require additional research. " Applicable and necessary approaches were selected for development after consideration of available market data, intended use, and intended user(s). An approach considered not applicable was omitted because this methodology is not appropriate for the property interest being appraised, or sufficient data to properly develop the approach was not available. Any approach judged not applicable, yet included in this report, was developed solely at our client's request. Data used to develop an inapplicable but included approach has a low to nil degree of comparability to the subject. Hence, no emphasis was given an approach deemed not applicable but included. Furthermore, no liability or responsibility is assumed for an approach considered not applicable but included at the client's request. 24-985 Kirkham Appraisals Inc. Page 7 Scope of Work Concept Explanations Intended use and all intended user(s) should be weighed heavily during the scope of work decision. A single intended user who frequently engages appraisal services is likely very knowledgeable about the appraisal process. For this type user, the appraisal development and reporting for less complex property types might be toward the lower end of the spectrum. By contrast, multiple intended users, especially those with opposing motivations, likely need extensive appraisal development and reporting. Litigation is a prime example when a thorough appraisal development and detailed reporting is warranted. A loan to value ratio reflects risk. For commercial -grade loans, ratios over 75% are generally regarded as risky. If a contemplated loan is viewed as risky, then the extent of appraisal development and the level of report detail should be more comprehensive. Similarly, more complex properties generally warrant more thorough analyses and more extensive report details. Prior engagement of appraisal services by a client implies a level of awareness about the appraisal process. A greater awareness may justify a less thorough level of report detail whereas the opposite is true for an individual who has never engaged an appraisal. A Jurisdictional Exception is an assignment condition, which voids a portion of USPAP that is contrary to law or public policy. When a Jurisdictional Exception applies, only the contrary portion is void. The remainder of USPAP remains in full force and effect. Jurisdiction Exceptions always shrink USPAP, not expand it. Data verification affects reliability. Direct data verification confirms information used in the report with one or more parties who have in-depth knowledge about physical characteristics for the property being appraised, or related financial details. Indirect verification employs information obtained from a secondary source like a data reporting service, a multiple listing service, or another appraiser. Direct verification is generally more time- consuming and costly, but also more reliable. Information from all data sources was examined for accuracy, is believed reliable, and assumed reasonably accurate. However, no guaranties or warranties for the information are expressed or implied. No liability or responsibility is assumed by Kirkham Appraisals Inc. or the appraiser(s) for any inaccuracy from any seemingly credible information source. 24-985 Kirkham Appraisals Inc. Page 8 Scope of Work Concept Explanations A statement about observation of the subject property by the appraiser(s) is listed above. If the subject was observed, this viewing was not as thorough as a professional property inspection. A professional inspector determines the precise physical condition, remaining useful life, and operability of major building components like the structural system, roof cover, electrical system, plumbing, and heating plant. Inspectors typically do not ascertain size of the building, or characteristics of the land. By contrast, an appraiser commonly ascertains both land and building size. Ordinarily, appraisers do not determine operability, or remaining useful life of building systems. An appraiser typically views real estate to determine only general attributes like physical condition of the building as a whole, site topography and access, building size, construction quality, floor plan, and functionality of the property as a whole. For this appraisal, no probes, investigations, or studies were made to discover unapparent, adverse physical features. Highest and best use analyses can be categorized into two groups - inferred and fundamental. A fundamental analysis is quantified from broad demographic and economic data such as population, household size, and income. Supply is inventoried. Subject specific characteristics are considered. Then, the relationship between supply and demand is weighed to determine a specific highest and best use for the subject. An inferred analysis uses local trends and patterns to infer a general highest and best use for the subject. For an inferred analysis, market dynamics that might be considered include prices, market exposure times, rents, vacancy, and listings of similar real estate. Inferred analyses emphasize historical data while fundamental analyses are based on future projections. The kind of highest and best use analysis utilized in this assignment is listed above. Scope of Work Limitation All readers of this report should be aware the foundation, for conclusions communicated herein, was based on and limited to an inferred market analysis, not a fundamental market study. Our scope of work agreement with our client does not include a detailed fundamental analysis. A fundamental analysis forecasts demand from broad demographic and economic data like population and income. Existing supply is inventoried. Then the relationship of supply and demand is weighed to determine net demand. An inferred analysis is based on local trends and patterns from which inferences are made. Sales, listings, marketing intervals, and/or price change for other similar land infer there is adequate demand for the subject parcel at a price level congruous with this data. If the client desires an in-depth analysis regarding the subject's marketability, potential alternate uses, or a numeric demand analysis, it is suggested a detailed fundamental market analysis be prepared. Report Reliance & Use Restrictions No liability is assumed, expressed, or implied by Kirkham Appraisals Inc., or the appraiser(s) for unauthorized use of this report. Only those persons, parties, entities, companies, corporations, partnerships, associations, or groups that are explicitly identified as an intended user on page 2 may rely on, and use this report. There are no implied, suggested, inferred, consequential, or indirect intended users of this report. Unauthorized users should not use, or rely on any portion of this document. Unauthorized users do so at their own risk and peril. 24-985 Kirkham Appraisals Inc. Page 9 Scope of Work Exclusion - Insurable Value The cost approach may or may not have been developed herein. Unless explicitly stated otherwise, the cost approach was developed solely to support the subject's market value. Use of this appraisal, in whole or part, for another purpose is not an expected intended use. Nothing in this appraisal should be used, or relied upon to determine the amount or type of insurance coverage to be placed on the subject property. The signatory / signatories to this report assume no liability for, and do not guarantee that any insurable value inferred from this report will result in the subject property being adequately insured for any loss that may be sustained. Since labor costs, material costs, building codes, construction intervals, and governmental regulations are constantly changing, the cost approach may not be a reliable indication of replacement or reproduction cost for any date other than this report's effective value date. 24-985 Kirkham Appraisals Inc. Page 10 Extraordinary Assumptions & Disclosures An extraordinary assumption is defined by the Uniform Standards of Professional Appraisal Practice (USPAP) to be "an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinion or conclusions". Extraordinary assumptions presume as fact otherwise uncertain information. In other words, this type assumption involves uncertainty about an underlying premise. An example is a survey that displays a lot size. If the lot size is later found to be much smaller, then the value conclusion may be negatively affected. USPAP Standard Rule 1-2(f) requires the identification of all extraordinary assumptions that are necessary for credible assignment results. This appraisal employs the following extraordinary assumptions. ➢ Features of the subject site such as legal description, dimensions, size, etc. were obtained from a plat map provided by the client. The subject has not yet been split from the larger parcel, and an assumption is made based on the plat map that the land can be split as indicated. If the land cannot be split as indicated, the appraisal will change. All information taken therefrom is assumed reasonably correct. ➢ Observation of the subject was limited to a moderate viewing of the entire property. It is assumed the land has no subsoil defects. No soiling borings were made. Furthermore, the appraiser(s) did not attempt to study, dig, probe, investigate, detect, remove materials, or discover unfavorable physical features on, above, or below the ground. ➢ Real estate tax information for the subject was obtained from a reputable online source, so it is assumed reasonably correct. Moreover, this information is assumed the most recent that is expeditiously available to the public. ➢ A public water system and public sewer main are connected to the subject structure, or available near the subject's lot lines. This appraisal assumes these systems possess sufficient capacity to serve the intended use of the subject improvements, if any. This appraisal also assumes the water is potable and non -contaminated. If these systems were inadequate to serve the subject's intended use, then the subject's value and marketability would be adversely affected. ➢ Assumptions and presumptions discussed in the Noteworthy Issues section of this report, if any, are incorporated by way of reference into these Extraordinary Assumptions & Disclosures. ➢ A recently issued title policy was not furnished to the appraiser(s). If a value -impairment is identified or suggested in a title policy, another professional report, or some other document, this appraisal does not address issues that are significantly atypical for a valuation of this type property unless specifically identified in the Scope of Work and/or Noteworthy Issues section of this report. The above extraordinary assumptions as well as other assumptions anywhere herein are integral premises upon which the conclusions in this document are based. If any of these assumptions are later found to be materially untrue or inaccurate, then this report's assignment results may or may not be affected. 24-985 Kirkham Appraisals Inc. Page 11 Hypothetical Conditions USPAP defines a hypothetical condition as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis." Hypothetical conditions assume conditions that are contrary to known fact. An illustration is the current valuation of a proposed home. For the purpose of a rational analysis, it is assumed the home exists on the effective value date, but it is known the home is nonexistent. Another example is a new zoning classification, that a property does not have today, but the new zoning is assumed for the purpose of a logical current valuation. Uncertainty is not involved with a hypothetical condition. An essential premise underlying the valuation is known not to exist on the effective value date. USPAP Standard Rule 1-2(g) requires the identification of all hypothetical conditions that are necessary for a credible value opinion. This appraisal employs no hypothetical conditions. Personal Property & Intangibles Personal property is movable and not permanently affixed to the real estate. Examples of personal property are freestanding ranges, refrigerators, tables, desks, chairs, beds, linen, silverware, hand tools, and small utensils. An intangible is a nonphysical asset like franchises, trademarks, patents, goodwill, and mineral rights. Personal and intangible property included in this appraisal's value opinion, if any, is considered typical for this type real estate, yet insignificant to the value opinion. Therefore, non -realty is not itemized or valued herein. Moreover, this report's final value conclusion(s) excludes unaffixed equipment, detached trade fixtures, and chattel unless specifically stated to the contrary. 24-985 Kirkham Appraisals Inc. Page 12 Definition of Market Value The definition of market value is used in all federally regulated transactions that exceed a minimum amount. This definition is mandated by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. The exact same definition was published in the Federal Register several times by different federal agencies. Some printings are: 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; and 59 Federal Register 29499, June 7, 1994.) Federal agencies publishing the exact same definition include the • Office of the Comptroller of the Currency (OCC) as 12 CFR 34, subpart C • Federal Reserve Board (FRB) as 12 CFR 225, Subpart G • Federal Deposit Insurance Corporation (FDIC) as 12 CFR 323.2, Definition (g) in 55 Federal Register, 33,888 August 20, 1990, Effective September 19, 1990. • Office of Thrift Supervision (OTS) as 12 CFR 564 • National Credit Union Administration (NCUA) as 12 CFR 722 The exact same definition was again published jointly by the OCC, OTS, FRS, and FDIC on page 61 of the "Interagency Appraisal and Evaluation Guidelines". These guidelines were published in the Federal Register on December 10, 2010 as Volume 55, page 77472. All the above citations defined market value as: "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • buyer and seller are both typically motivated, • both parties are well informed or well advised, and acting in what they consider their own best interests; • a reasonable time is allowed for exposure in the open market; • payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. " Virtually the same defmition is also cited in Advisory Opinion 30 in the Uniform Standards of Professional Appraisal Practice (USPAP). 24-985 Kirkham Appraisals Inc. Page 13 Definition of Real Property Estates One or more of the following underlined legal estates or interests are valued in this report. Definitions of three estates, quoted immediately below, are from The Dictionary of Real Estate Appraisal, 6th Edition; published by the Appraisal Institute, copyright 2015. Fee Simple Estate "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. " Leased Fee Estate "The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. " Leasehold Estate "The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease." The words "Leased Fee Estate" constitute a real estate term. This term is not defined in Black's Law Dictionary, the Deluxe Eight Edition. However, leased fee estate is defined by USLegal.com as: "an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right to repossession at the termination of lease." In effect, the definitions of "lease fee estate" by the Appraisal Institute and USLegal.com are equivalent. Chicago Title Insurance Company, one of the largest in the country, does not use the term "Lease Fee Estate" in their title insurance policies. Chicago Title does insure the "Fee Simple Estate Subject to the Leases". For all practical purposes, the terms "Leased Fee Estate" and "Fee Simple Estate Subject to the Leases" are equivalent. Market value of the leased fee estate represents the worth of real property to the landlord (the lessor) as encumbered by terms set forth in one or more leases. A leasehold estate is the tenant's (the lessee's) interest in real property. A lease is an encumbrance because it limits or precludes the landlord's right of use. If a property is unencumbered, then usage of the term "fee simple estate" could be strictly or narrowly interpreted to mean the property is not encumbered by lease. If there are no leases for a multitenant facility, then the building has no lease income. Under this interpretation, the value of the fee simple (VFS) would be less than the value of the leased fee (VHF). Accordingly, the VFS < VHF because lease -up costs must be paid by a buyer to find tenants. In effect, total lease -up cost would constitute a penalty to the property's value imposed by a buyer. Components of a total lease -up cost include leasing commissions, rent loss, concessions, tenant improvements, any other cash expenditures, and buyer incentive to undertake the risk of lease -up. 24-985 Kirkham Appraisals Inc. Page 14 Definition of Real Property Estates According to the Appraisal Institute course General Appraiser Income Approach, Part 2 - page 231, there are two interpretations of the term "fee simple estate". A second interpretation for fee simple estate is a value -oriented definition used by many real estate appraisers. For valuation purposes, market value of the fee simple is the worth of the property assuming it is already leased at market rent to a level of stabilized occupancy. Under this interpretation, the VFS >_ VHF because lease -up costs to find tenants are already paid. An extremely important concept in the valuation of leases is the relationship between market rent or income (IFS) and contract rent, the rent stated in a lease (IAF). If the contract rent is below market rent (IAF < IFS), the tenant enjoys an advantageous position called a positive leasehold interest. Then, the value of the leased fee is usually less than the value of the fee simple (VHF < VFS). If contract rent exceeds market rent (IAF > IFS), then the landlord has an advantage while the tenant has an unfavorable position called a negative leasehold interest. When contract rent equals market rent, then the numerical value of these two estates is equal but the rights of each estate are distinctly different. In essence, the difference interpretations for the fee simple estate involve lease -up costs. If fee simple is interpreted to mean no leases encumber the property, then a buyer of a multitenant facility would incur lease -up costs. These cost would likely be substantial so a prospective buyer would penalize the property by the amount of the total lease - up cost, which is detailed above. If fee simple is interpreted to mean the value of real property already leased up to stabilized occupancy at market rent, then no lease -up is necessary so no lease -up penalty is appropriate. For valuation purposes in this report, three estates are defined below. • Market value of the fee simple estate for a single -user property like a one -user building or vacant land represents the worth to the most probable buyer via the sales comparison approach. Income generation on a rental basis is not an important factor to this buyer. Property suitability for the buyer's own use or use control are the primary purchasing criteria. Lease -up costs are not relevant. In this context, fee simple means the property is not encumbered by lease. • The fee simple estate for a multiple-tenantfacility is different from the one immediately above. A different interpretation is appropriate for a building designed to generate real estate rental income like a shopping center or apartment building. This estate for this type property is defined as the worth to the most probable buyer assuming the property is already leased to a level of stabilized occupancy at normal market terms including market rent. Lease -up costs are assumed already paid so a lease -up penalty is not appropriate. • An investment grade, leased, single -user building is best valued in a fashion that is similar to a multiple - tenant property. Hence, the interpretation for fee simple in the immediately preceding paragraph is best for an investment grade, leased, single -user building. • Market value of the leased fee estate is defined as the worth of real property to its current owner as encumbered by terms specified in one or more leases. • Lastly, a leasehold estate is defined as one tenant's interest in real property as defined by a lease. These definitions are crucial valuation concepts in this report. 24-985 Kirkham Appraisals Inc. Page 15 Non -Disclosure State Idaho is a non -disclosure state. This means essential information like grantor, grantee, sale prices and sale dates for real estate transactions are not listed in public records. Hence, appraisers must gather key details from parties involved who have no incentive to cooperate. Often appraisers are compelled to obtain the information from secondary sources. This lessens reliability of the data and lengthens the time required to complete a proper appraisal. Kirkham Appraisals Inc. discloses it made reasonable attempts, within the context of the scope of work, to obtain all key information from seemingly reliable sources; but common sense suggests some data may not be completely accurate. Assemblage USPAP Standard Rule 14(e) requires an analysis of the assemblage of various estates or component parts that affect value. In this case, no assemblage is expected so value is not affected. 24-985 Kirkham Appraisals Inc. Page 16 Disclosures .. • —11L:l Professional Standards All leading professional appraisal organizations, the U.S. Congress, all state legislatures, and numerous legal jurisdictions recognize the Uniform Standards of Professional Appraisal Practice (USPAP), promulgated by the Appraisal Foundation. Revised biennially to keep it contemporary, these standards set forth ethical practices and proper procedures for a competent appraisal. This appraisal fully complies with all relevant portions of the USPAP version in effect on the report date. It also complies with the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), a federal law. The report date is shown in the Salient Information. Competency The person signing this report is licensed to appraise real property in the state the subject is located. I affirm I have the experience, knowledge, and education to value this type property. I have previously appraised similar real estate. 24-985 Kirkham Appraisals Inc. Page 17 OUCO' 1,101 - •Idaho F a.1 Blackfoot w Fort I call Subject-'P�p erty.. 44 *Abercicei Ocatello m6r:onr. Falis ► I , . KI t, W L ' L- U w; t ' I I I � L-; s *L-aV9"'Hct Springs 2anno& County. ID 46 Eanno& County, ID (15005) GLogiaphy; County Prepared by Ezri Pos3ln caribou -OrTiii ionY r: I t 24-985 Kirkham Appraisals Inc. Page 19 Wesn' Bannock county, id 46 Prepay by Esri BannockCaunty, is (1604.5) Geography: County Bannock Count... Population 2014 Population 82rB39 202(1 Population 87,018 2023 Papulation 59r078 2028 Population 90.474 2610-2020 Annual Rate 0.49% 202(1-2023 Annual Rate 0.72% 2023-2028 Annual Rate 0,31% 202(1 Male Papulation 49,7% 2424 Female PapulatDn 54.3% 2020 Median Age 34.7 2023 Male Papulation 50.4% 2023 Female Population 49L% 2023 Median Age 34,0 In the identiFied area, the current year papulation is E9,07E, In 2024, the Cen sus count in the area was 87,131.5. The rate of change since 2024 was 0.72% annually. The five-year projection Fort -he population in the area is 90,474 representing a change of4.31% annually from 2A23 to 2428. Currently, the popu lation is 50.4% male and 49.6% female. Median Age Ti,e median age in this area is 34.0, compared to U.S. median age of 39.1. Race and Ethnidty 2023 White Alone B3.3% 2023 Mack Alone 1.0% 2023 American IndiarVAlaska Native A:ane 3.4% 2023 Ascan ?Jane 1.4% 2023 Paeific Islander Alone 13.3% 2023 Other Race 3.3% 2023 Two ar More Races 7.2% 2023 Hispanic Origin (Any Race) 9.5% Persons of Hispanic prig in represent 9.5% of the Papulation in the identified area compared to 19A% of the U.S. population. Persons of Hispa nic Origin may he of any race. The Diversity Index, which measures the probability that two people from the same area will he From diFFerent raceleth nic groups, is 4L9 in the identified arear compared to 72.1 for the U.S. as a whole. Households 2023 Wealth index 68 2010 Households 30.682 20213 Households 32r438 2023 Households 33.433 202E Households 34r298 2010-202A Annual Rake 0.55% 20213-2023 Annual Rate 0.93% 2023-2028 Annual Rate 0.51% 2023 Awerage Hausehold Size 2.50 The household count in this area has changed Frnm 32,438 in 2024 to 33,433 in the current year, a change flF 0.93% annually. The five -yea r projection of households is 34,298, a change of 0.51% annually frn n the current year total. Average hausehold size is currently 2.50, compared to 2,51 in the year 2020. The number of Families in the current year is 22.235 in the specified area. 6"A P19ft. ln=nte Is ddlars. Hdushlq AHoalabiIIty Ender and Permnt 0Income kir Nevhga,prt rak,.lMSanyarson[yavaAehk fw arena w4th 50 or mare owner -c=00 h-msL%units. The rinl Index memuies tl* extent to wh6ch Medkmltx,tlon eF lnrw*er mnsunip*n&rnon IndwiduMs or ftousehaWr L within an ft4o 5y ftvWtes V m a p 4ftst ty Mal dlstnGuLkil. A GIN DWex #9 repre5lr5ti ybled equality, Uhlle ari Index dr 100 Jlnphls perTeGt I11e4ualky. Siouma: U.S. fo-neuS Bureaki. Ewl NfeaSM F8r 2023 a6l 2aM. E%rl MitwenAd CllKL6 2010 Into 2924 QeWrbblly 3MJ Geftui W2D daln. December 19r 2423 24-985 Kirkham Appraisals Inc. Page 20 /aiii" 41111 anesn' aannock County, Id 46 Prepared by Esn Bannock ODu rty, ED (16CU5) Geography: Chunky tlannodt Count... Mortgage Income 2423 Percent of Income for Mortgage 27.2% Median Household Income 2023 Median Household Income 163r698 202A Median Household Income 375,931 2423-2022 Annual Rate 3.42% Average Household In€orae 2023 Average ko,isehDA Income s83r449 2028 Average Household Income 397r3439 2023-2428 Annual Rate 3.14% Per Capita 1nclime 2023 Per Capita In€ome 531,413 2428 Per Capita Income 537r010 2023-202e Annual Rate 3.33% GIHI IR&K 2023 Gini Index 33,5 Households by Income Cu rent median household income is X63,598 in the area, compared to $72,603 for all U.S. households. Median household income is pro;e€ted to be 575r591 in five years, compared to 02r418 for all U.S. househnlds Current average household income is $83,449 in this area, compared to $187r009 fam r all U.S. households. Average household incoe is pmected to be 197,389 in five years, oornpamd to $122r048 for all U.S, households Current per capita income is 0 1,4 13 in the arear compared to the U.5. per capita income of 541r310, Tire pe r capha income is prof ected to be 537,018 in five yearsr compared to "7,525 for all U.S. households Housing 2023 Housing Affordability Ender: 98 2018 Total Housing Units 33,191 2010 Owner occupied Housing Units 20,817 2610 Renter Occupied Housing Units 9,865 2010 Vacant Housing Units 2,509 2626 Total Housing Units 34,903 2620 Owner Occupied Housing Units 21,935 2020 Renter Occupied Housing Units 10,499 2020 Vacant Housing Units 2,465 2023 Total Housing Units 35,949 2423 Owner occupied Housing Units 22,272 2023 Renter Occupied Housing Units 11,161 2023 Vacant Housing Units 2,516 2029 Total Housing Units 36,678 2028 Owner Occupied Housing Units 23,074 2028 Renter Occupied Housing Units 11,224 2628 Vacant Housing Units 2,388 Socioeconornic Status Index 2023 Socioecon omic Status Indiex 59.8 Currentlyr 62.0% of the 35,949 housing un its in the area are owner occupied; 31.0%, renter occupied; and 7.046 are vacant Currently, in the U.S., 58.5% of the housing uniks in the area are owner nceupied; 31.7% are renter occupied; and 9.9% are vacant. In 24120, there were 34,903 housing unit; in the area and 7.1% vacant housing units. The annual rate of change in hnusirrg units since 2028 is 0,91%. Median home value in the area is $288,967, compared to a median home value of $308,943 for the U.S. In five yearsr median value is pn*cted to change by 3.67% annually to 5346,107. 0"A Npts. Income It exprmsed in eurrenk d011errs. 5*3using ARordeblllky tndex mid Percent 0 ]rt€ome W Kortg , t rakuli tiros are wiLy avallahk fw areas oath 50 or mare owner-coa,pWd housLlig unUs. The Glnl Index measui es the e3deOt ria whkch the dimbudon eF Incaft 01 €5munIxim 3nwg In4viduels or tirwsehoWbi Within an etirt" deulStas IVM a Imr-N Fg aWal dIsErrinulkil. A SIMI Index #4 repre!PMIEi pftfe tequallty, rihlle an Index of 100 InipaeY perW-c Iht4ualry. SOUMS: U5. fo-neuS Suredu. €Sri WeCa5r5 For 2423 and 2428. EWI =ftwetM CeMSUS 2410 Into 2924 QaWrbpuy &M CehSuS 3424 data. December 19, 2A23 24-985 Kirkham Appraisals Inc. Page 21 qw nIMarketProfile Bannock County, ID 46 prepared 631 Fsri Bannock county, ID (1608.5) Geography: Count} Banrr.nde Count.. papulation Summary 2010 Total Population 52,839 2{}213 Total Populatixi 87,018 2420 0,raup Quarters 2.240 2023 Total Papulation 89,078 2423 Group Quarters 2.240 2D26 Tonal Population 90,474 2423-2028 Annual Rate 0.31°16 21323 Total Daytime Population 87.162 Workers 36,574 Residents 5Q.588 Household Summary 2010 Households 34,582 2410 Average Househald Size 2.64 2020 Total Households 32,438 2420 Average Household Size 2,61 2023 HausehoWs 33,433 2423 Average Household Size 2.60 2026 Households 34,298 2025 Average Household Size 2.57 2423-2028 Annual Rate 0.51% 2010 Families 24,835 2410 Average Family Size 3.17 2023 Families 22.235 2423 Average Family Size 3.13 2028 Families 22.814 24213 Average Family Size 3.09 2023-2028 Annual Rabe 0.52% Housing Unit Summary 2040 Housing Units 29,102 O tner Occupied Housing Units 66.0% Renter Occupied Housing Units 27.4% Vacant Housing Units 6.6% 213113 Hausing Units 33.191 Owner Docupied Housing Units 62.7% Renter Occupied Housing Units 29.7% Vacant Housing Units 7.4594 213213 Housing Units 34,983 Owner Occupied Housing Units 62.9% Renter Occupied Housing Units 30.1% Vacant Housing Units 7.196 2023 Housing Units 35.949 Owner Docupied Housing Units 62.0% {tenter Occupied Housing Units 31.0% Vacant Housing Units 7.0% 2026 Housing Units 35,678 Owner Occupied Housing Units 62.9% Ri nter Occupied Housing Units 34.6% Vacant Housing Units 6.5% Data Nate: Household population indudes persons not residing in group quarters. Average Household Size is the household popul ation divided by totai households. Persans in families include the householder and persons related to the householder by biith. marriage. or adaption. Per apita Income represents the income received by all pe rsoms aged 15 years and over divided by the tots I population. Sourom Esri forecasts far 2023 and 2028. U.S. Census Bureau 2000 and 2010 decennial Cesrs,us data comrerted by Esri into 2026 veoaiaoh4. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 22 Bannock County, Sd 4b BannockCaunty, Za (160O5J Geography: County Prepared by Esi Bannock Count... 2023 Households by Income Household Income Base 33.433 <$15.000 10.7% 515.000 - 524r999 8.7% $25,000 534,994 5.7% 535r000 - 349r999 11.6°16 $54,000 $74x999 20.2°16 2P75,004 - $99r999 14.5% $iOOrO00 - 5149,999 17.9% 5150,004 -$199,999 6.7% 52O0rOOO+ 3.B% Average Household Lncorne $83,449 2028 #louseholds by Encome dousehald Income Base 34,298 -C$15.000 8.2% $1.5,000 324r999 7,4°16 #25r0OO 534r999 4.7% S35r0OO S49r999 9.6% $5Or0OO - 574r999 19.6% 575,000 - 393r999 15.494 $100,004 5149,999 21.1% 5150,000 5199,999 9.3% 5244,000+ 4.71* Average Household lncane $97,389 2023 Owner Occupied Housing Units by Value Total 22,272 <$54.000 7.2% 550,000 - $99r994 4.8% $140,004 $149,999 7.0% Si5Or0O4 $199,999 6.8% 5200,004 5249,994 12.3% 525Or0OO $299,999 15.3% S300=0 5399,994 27.2% $44OAOO 5499,999 9.4% 5S4OrO00 5749,999 8.0°16 5750rOOO 5999,994 1.5% $1.000,000 - $1.499,999 0.4% 51,500=0 - $1,999,999 O.O% 52,000,000 + 0.1% Average Poore Varue $304,640 ZO28 {honer Occupied Housing Units by Value Total 23 74 <$50.000 4.13% S5Or0OO - $99r999 2.396 51OOrO04 $149,999 3.1% 5150rO04 5199,999 LB% 5244,004 - 5249,999 .5.9% 525OrOOO $299,994 14.B% s3ODrO0O 5399,999 36.3°x6 "00rO00 5499,999 16.2% $5T)rOO4 5749,999 12.2% S75OrOO4 3999,999 1.5% Si,O0O,O0O - $1,499,999 0.4% 51,500,000 - $1r999,999 O.D% 52,OOO,13oo + 0.1% Average Home Value $361,076 Data Nute: Income represents the preceding year, expressed in cu men¢ dollars. House6uld income includes wage and salary earnings, interest dividends, net rents. pensions. SSI and welfare payments. child support. and alimony. Sourom Esri forecasls for 2023 and 2028. U.5. Cansus Bureau 2OW and 2610 decmriial Census data cnmrerted by Esri into 2026 veoaraohv. decern6er 19, 2023 24-985 Kirkham Appraisals Inc. Page 23 5.XRET Market P r c December 19, 2023 24-985 Kirkham Appraisals Inc. Page 24 Bannock County, 1D 46 BannockCaunty, ID (16005) Geography; County Prepm ed by Esii Bannock Count.. Median H au&eWd Income 2023 $63r898 2426 $75.591 Medials HoFne Value 2023 $288,967 2026 $346.107 Per Capita Income 2023 $31.413 21026 $37,010 Median Age 2010 31.5 2020 34.7 2023 34.0 2023 34.8 2020 Population by Age Total 87.018 0 - 4 6.6% 5 - 9 7.4% 10-14 7.7% 15-24 15.3% 25 - 34 13.5% 35-44 13.D% 415-54 10.2% 55 - 64 11.0% 65-74 3.6% 75 - B4 4.3% 85+ 1.5% i B + 74.0°16 2023 ParpukaU- by Age Total 83,078 0-4 7.4% 5-9 7.3% 10-14 7.1% 15 - 24 14.9% 2.5-34 14.7% 35-44 13.0% 45 - 54 9.6% 55-64 10.8% 65-74 9.2% 7.5 - B4 4.4% 85+ 1.6% 1 B + 74.2% 2028 PopL" an by Age Total 90,474 0 - 4 7.5% 5 - 9 7.2% N-14 7.D% 15-24 15.1% 25-34 13.5% 3-5-44 13.3% 45-54 10.3% 55 - 64 9.6% 65-74 9.2% 75-84 5.5% 115 + 1.8% 1 B + 74.5% 2020 FbpuiaU� by Sex Sourom Esri forecasts fo{ 2023 and 2028. U.S. Census Bureau 20011 and 2014 decennial Census data Converted by Esri inn 2020 neooia&iv. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 24 nMavket r Total SZ 839 Bannock County, ED 46 Prepared by E --,n $lads Alone BannockCaunty, ED (160" American Indian Alone 3.2% Geography: County 1.3% Pacific Islander AJone 4.2% Banruadc Courd... Kates Ttvo or More Races 43,211 Females 5.7% 43.807 ZO23 population by Sex 2824 Population by Race/Ethnicity Males 87.01:3 44,930 Females Black Plane 44.146 2028 population by Sex 3.6% Asian Alone MAes Pacific Islander AJone 45,581 Tama les 3.2% 44,S93 2014 PopeTation by Race/Ethnicity Total SZ 839 White Alone 99.8°16 $lads Alone O.B% American Indian Alone 3.2% Asian Alone 1.3% Pacific Islander AJone 4.2% Some Other Race Alone 2.1% Ttvo or More Races 2.7% Hispanic Origin 5.7% Diversity Index 29.3 2824 Population by Race/Ethnicity Total 87.01:3 White Alone 83.B% Black Plane 0.9% Ameiran Indian None 3.6% Asian Alone 1.4% Pacific Islander AJone 4.3% Some Ot9 er mace None 3.2% Two or More Races 6.9% Hispanic Origin 9.2% Diversity index 44.9 ZO23 population by Race/Ethnicity Total E19.078 White Alone 83.3% Black Wane 1.0% American IndianJUone 3.4% Asian ,Ohne 1.4% Pacific Islander Wane 4.3% Some Other Race Pdone 3.3% Two or Mme Races 7.294 Hispanic Origin 9.5% Diversity Index 41.9 2028 Populabon by Race/Ethnicity Total 94.474 White Alone 82.1% Blade Alone 1.1% Arnerican Indian Alone 3.3% Asian Atone 1.596 Pacific Islander Wane 0.4% Some Other Race Alone 3.6% Two or Mere Races 8.0% Hispanic Origin 14.1% Diversity Index 44.0 Data NDte: Persons of Hispanic Origin may be of arty rare, The Diversity Index measures the probability that tyro people from the same area will he from &ffenent vacs+ethnic groups. Snurom Esri forecasts for 2023 and 2028. U.S. Census Bureau 200a and 2810 decennial Census data r,onverted by Esri into 2026 neoaraphy. Decemhi 19, 2023 24-985 Kirkham Appraisals Inc. Page 25 i nI gmes' Market Profile Bannock County, ED 46 Prepar--d by Esd BannockCaunty, Sa (16045) Geography: County Bannock Count.. 2024 Pop tiIation by Relationship and Household Type Total 87.018 In Households 97.4% Householder 37.3% Oppasite-Sex Spouse 18.2% SamrSex Spouse 4.2% Opposite -Sex Unmarried Partner 2.7% Sarni -Sex Unmaaried Pannier 4.1% Biological Child 28.1% Adopted Child 4.8% S'6epchild 1.7% Grandchild 2.2% Brother or Sister 4.9% Parent 4.7% Parent -in-law 4.294 Son-in-law or Daughter-in-law 4.4% Other Relatives 0.9% Foster Child 4.1% Otey Nonralatives 3.1% In Group Quaters 2.6% Institutionalized 1. D% Noninstitutiarraliaed 1.5% 2023 Population 25+ by Educationai Attainment Total 56.311 Less than 9th Grade 1.3% 9th - 12th Cwader No Diploma 5.0% High School Graduate 22,61{0 GEINAltemative Credential 4.596 Some College. Na Degree 22.9% As5cciate Degree 11.994 Bachelor's Degree 21.5% GraduaWPIrofessional Degree 14.3% 2423 Papulation 15+ by Marital Status Toil 691623 Never Marred 34.2% maahied 50.5% Widowed 5.2% Divorced 11.2% 2023 Civilian Population 16+ in Labor Force Civilian Papulation 16+ 40,014 Population 16+ Employed 96.B% Population 16+ Unemployment rate 3.2% Pbpulakian 16-24 Employed 19.2% Population 15-24 Unemployment :ate 5.7% Population 25-54 Employed 53.6°16 Population 25-54 Unemployment rate 2.5% Population 55-64 Employed 13.1% Population 55-64 Unemployment rate 2.5% Population 65+ Employed 4.1% PAopulatian 65+ Unemployment rate 4.4% souron Est forecast for 21123 and 2828. U.S. Census Bureau 2009 and 2810 decennial Census data converted by Esri into 2026 oecaraphy. Decern er 19, 2023 24-985 Kirkham Appraisals Inc. Page 26 Qesri- Bannock Colony, ED 46 Prepared by Esri Bannock County, ED C16OU5) Geography: Counky Sannack Count.. 2023 Employed Population 16+ blfLidLts" Tont 38.739 Agliculture/Min ing 1.5% Construction 6.B% Manufacturing 7.9% Wharesale Trade 1.8°!o- Retait Trade 10.2% Tiansportation/Utilibes 6.594 Information 1.2% Finanre/Insuranre/Real Estate 8.594 Services 49.5% Public Administration 6.0% 2023 Employed Population 16+ by Occupation Total 35,739 White Collar 59.3% ManagernerFVBusiness/Financial 13.7% Professional 25.6% Sales 8.4% Administrative Suppoit 11.6% Servioes 18.8% Blue collar 21.9% Faiming/Fanestry/Fishing 0.3% Construction/Extraction 5.00!0 InstaItation aintenance/ftepair 3.1% Pimduction 5.4% Trarrsprmtation{Material Moving 5.1% 2020 iHouselwlds by Type Takal 32,43B Married Couple Households 49.2% With Own Children <18 20.7% Without Oo-m Children <18 28.4% Cohabitating Couple Households 7.4% With Own Children <18 2.6% Without I}vm Children <18 4.84'0 !dale Householder; No SpouselPartner 19.0% Living Alone 12.840 65 Years and over 3.946 With Own Children <18 1.9% Without Oo-m Children <18, With Relatives 2.5% No Relatives Present 1.8% Fernele Households. No Spouse{Paitnm- 24.4% Living None 14.1% 65 Years and over 6.4% With Own Children <19 4.5% Without Oven children <18, With Relatives 4.7% No Relatives Piesent 1.2% 2020 Households by Size Takal 32,438 1 Person Household 26.9% 2 Person Househotd 33.6% 3 Person Household 14.5% 4 Person Household 11.7% 5 Person Household 7.D% 6 Person Household 3.8% 7 4 Person House#rold 2.5% Souron Fsri forecasts for 2823 and 2029. U.S. Census Bureau 200a and 201G decennial Census data converted by Esri into 2020 QeooraDhy. Decern&m 19, 2023 24-985 Kirkham Appraisals Inc. Page 27 i jr nI m. Bannock county, ED 46 BanncckCcunty, ID (16045) Geography: County -Prepared by Esd Bannock Count... 2020 Households by Tenure and Mortgage Status Total 32.438 Owner Occupied 67.6% Owned with a NodgagefLoan 46.2% Dvmed Free and Clear 21.4% Renter Occupied 32.4% 2023 Affordability, Mortgage and Wealth Housing AFFandabirity Index 90 Percent of lncome for Moitgag e 27.2% Ykalth Index 68 2020 Housing Units By Urban/ Rural Status Total 34,903 Urban Housing Unite 83.8% Rural Housing Units 16.2% 2020 Population 8y Urban/ Rural Status Total 87,018 Urban Population 83.0°16 Rural Population 17,10% Data Note: Households with children indude any households with people under age 18, relatsd or not. Multigenerational households are families with 3 or mane parern~child relationships. Unmarried partner housetrclds are usually classified as nonfamily households unless there is another member of the household related to the householder. Multigenerational and unmarried partner households are reported only to the tract level. Esri estimated block group datar wfiidy is used to estimate polygons or non-standard geography. Smrrom Esi forecasts for 2023 and 2028. U.S. Census Bureau 200[I and 2010 decennial Census dam mnverted by Esri into 2020 oeooranhy. Decem&m 19, 2023 24-985 Kirkham Appraisals Inc. Page 28 _ i Qesn, MarketProfile Bannock County, Id 46 Prepared by Esd Bannock County, Ia (16045} Geography: County Bannock Count.. Top 3 Tapestry Segments 1- Set to Impress (11D) 2. Middleburg (4C) 3. Old and Newcomers (8F) 2023 Consumer Spending Apparel & Services: Tatal $ $58,317,392 Average Spent $1,744.21 spending Potential Index 79 Education: Total$ $45,323,198 Average Spent $1.355.54 Spending Potential index 76 EntertainmentjRecreation. Total $ $99,636,547 Average Spent #2r980.19 Spending Potential Index 79 Food at Home: Total $ $179,059,526 Average Spent $5,355.78 Spending Potential index 79 Food Away from Home: Total $ $98,656,968 Average Spent $2.950.89 spending Potential Index 79 Health Care: Total $ $196,554,D92 Average Spent $5,879.44 Spending Potential Index 80 HH Furnishings & Equipment. Total $ $77,834,643 Average Spent $2,328.66 Spending Potential Index 79 Per-sonal Care Products & Seivices: Total 5 $25,482,532 Average Spent $762.20 Spending Potent9al Index SD Shelter: Total $ $645,831,197 {average Spent #19,347.49 Spending Potential lndex 78 Support PaymentsfGash Contribubons/CAFU in Kind: Total $ $82,570,218 Average Spent $2,478.70 Spending Potential index 79 Travel: Total S $58,589,717 Average Spent $1,752.45 Spending Potential Index 78 Vehicle Maintenance& Repair: Total T $35,675,492 Average: Spent $1,D67.49 Spending Potential Index 81 Data Note: Cwsumer spa n&ng shows the a mount spent on a variety of goods and se ivices by households carat reside in t#ie area. Expenditures are shown by broad budget categories that are not mutually exclusive. Consumer spending does not equal business revenue. Total and Average Amount Spent Per Household nepnesent annual figures. The Spending Potential Index represents the amount spent in Elie area relative to a uatior4 average of IDG. Source: Consumer Spending data are deiived from the 2019 and 2020 Consumer Expenditure Surreys, Bureau of Labor Statistics.. Fsri. Suuroee Esri forecasts for 2023 and 2028. U.S. Census Bureau 2009 and 2010 decennial Census data converted by Esri into 2020 ve9araohw. December 19, 2023 24-985 Kirkham Appraisals Inc. Page 29 Environmental Issues A visual inspection of the property did not reveal any apparent environmental issues or concerns. While the appraiser has inspected the subject property, he is not qualified to detect hazardous substances whether by visual inspection or otherwise, nor qualified to determine the effect, if any, of known or unknown substances present. The final value estimate is based on the subject being free of hazardous waste contamination. Parties desiring more precise and reliable information may wish to engage a professional environmental consultant to conduct an environmental assessment. Should such assessment indicate an adverse condition is present that has not been addressed by this appraisal; the conclusion of this appraisal may need revision. General Area Data and Trends The cities of Pocatello and Chubbuck are located close together in southeast Idaho in a valley surrounded by mountains on three sides. The cities are at an altitude of 4,450 feet in the western foothills of the Rocky Mountains near the Oregon Trail. One main railway, Interstate 86, Interstate 15, and the Portneuf River intersected the city. The southeastern area of Idaho was inhabited by the Shoshone and Bannock Indian tribes for hundreds of years prior to the Lewis and Clark expedition in 1805. It was the Lewis and Clark reports of that expedition that first attracted fur trappers and traders to southeastern Idaho. One of the first permanent settlements was established by Nathaniel Wyeth of Massachusetts a few miles northeast of Pocatello at Fort Hall in 1834. After over -trapping and changes in fashion ended the fur trade, Wyeth's settlement became a stopping point for immigrants traveling the Oregon Trail. It was not until after the discovery of gold in Idaho in 1860 that immigrants began settling in Idaho in large numbers. The gold rush had brought a demand for goods and services that supported the establishment of towns. The Portneuf Valley and Pocatello area became the corridor that was initially used by freight shipping and stage lines. After the gold rush ended, the settlers who remained in the Pocatello area turned to agriculture as a means of support and the nearby Snake River provided ample irrigation water for crops. The region eventually became a major supplier of potatoes and grain products. The city was named for Chief Pocatello of the Shoshone tribe who gave the railroad a right-of-way through the original Fort Hall Indian Reservation for a line that connected Salt Lake City, Utah to Butte, Montana. Initially, the Utah and Northern Railroad stopped for water in the Pocatello Creek area. Then, with the arrival of the Oregon Short Line in 1882, the area became a junction and transfer point between the two railroads. In 1887, the Oregon Short Line moved its offices to the Pocatello Junction and the two railroads merged, creating a large repair and maintenance facility. In 1888, an Executive Order ceded 1,840 acres of Indian land to establish the city of Pocatello. The Pocatello/Chubbuck area has a four -season climate that was sunny and dry with less than fifteen inches of precipitation annually. Summers were dry and warm with cool nights and an average temperature in July of 72 degrees. The winter temperatures averaged thirty-five degrees with several months of snow. According to The US Census bureau, as of April 2010, Pocatello's population was 54,255 persons: a 5.29% increase from the 2000 census. 13,922 reside in the neighboring town of Chubbuck, Idaho. Chubbuck experienced 43.35% growth between 2000 and 2010. The total population for Bannock County was 87,018 persons living in 1,112 square miles in 2020. The growth for Bannock County between 2010 and 2020 was, overall, 5.04%. The county is population is reported at 89,078 persons as of 2023. The cost of living in Bannock County was well below the national average for groceries, housing, utilities, and transportation. The median priced home in Bannock County reported at $225,283 in 2022; apartment rents were from $400 to $2,200 per month. The chief sources of income in Pocatello/Chubbuck and the nearby trade area was manufacturing, mining, transportation, agriculture, medical products, processing of agricultural products, high-tech and nuclear research, recreation and tourism. 24-985 Kirkham Appraisals Inc. Page 30 Idaho Cent -d Credit Union i'ortr eLdhledical Center As Aire Human Services LLC ON Sernioonducbr_ Jnc_ ContiergWCustomerbbnagemer Union Pacift Railroad AJlshde Ins uranceCo %farsityConliactars Arnys Kitchen Inc. 4vaJ-Nbrt Regional industry also included the Idaho National Laboratory (INL) which was located 60 miles northwest of Pocatello/Chubbuck. Built in 1949, the site had more than 50 nuclear reactors and employed approximately 12,000 individuals. The years between 1970 and 1990 brought recessionary times to Pocatello's older downtown business district. However, in the decade of the 1990's, the older downtown area underwent restoration and revitalization efforts, with the result that numerous small or specialty retail stores and a number of new restaurants relocated in the central downtown area. It was during those recessionary times that Yellowstone Avenue gradually underwent commercial development. Over the ensuing years, the primary areas of expansion and new development on Yellowstone Avenue occurred in the north Pocatello and Chubbuck portions of this major arterial highway. That growth continued, and Yellowstone Avenue became the prime retail commercial center of the city with many newly developing areas that contained retail and service facilities, fast food facilities, restaurants, and the major automobile sales/service establishments. The Pine Ridge Mall, Wal-Mart, and Fred Meyer superstores, as well as, the commercial Pocatello Square subdivision, provided the central focus for the continuing development of new business and expansion on Yellowstone Avenue. Pocatello/Chubbuck offered excellent health care services and facilities. The Portneuf Medical Center was formed when two area hospitals consolidated in 2002. The facility was designated as a Level Three Trauma Center and housed a Life Flight helicopter. Portneuf Medical Center had recently added open heart surgery to its services. Idaho State University (ISU) was among the fastest growing of the four academic institutions of higher education in the State of Idaho. Approximately 13,569 students were enrolled in the 124 Baccalaureate, 50 Masters and nine Doctoral programs. ISU had an outstanding School of Applied Technology that was the largest post -secondary technical institute in the state of Idaho, providing technical and career -oriented educational opportunities. The city of Pocatello has a newer library, 32 parks, two public golf courses, a swimming complex and small zoo, and a Museum of Natural History located on the ISU campus. The city of Chubbuck has a library and numerous parks. The neighborhood is a mix of residential, commercial, and light industrial properties. The market suffered declining values from 2008 to 2011 and stabilized in 2012. The market has increased since. The market has been expanding for several years now. A sharp contraction in the economy occurred in March and April of 2020 with the COVD Pandemic. An expansion occurred shortly after. Drastic inflation and interest rate hikes to fight the inflation could send the economy into a recession within the next 12 months, and has already caused a slow -down to real estate activity. It is possible interest rates may begin to decline in the next several months if inflation continues to ease as it has over the past several months. These interest rate declines could spur some real estate activity. 24-985 Kirkham Appraisals Inc. Page 31 { ti %Vow 4WAM q - � h. A� F 0� � - BannoGk County Economic Overview Civilian Labor Force (Dec 2023) 40,209 Unemployment Rate (Dec 2023) 3.2% Population (2022) 89,517 Median Household Income (2021) $58,472 Per Capita Personal Income (2022) $47,457 Poverty R (2021) 12.79 Lit Updated: January 2G24 % prpyd partner of Vie Id a ho Depa rt ment of La bor : labor.idaho.qov ninam. amerK njo6center nRrWpiN rw Who DrprMm mS aF Lahar a an equal opponuaLR aapbyw ■red ureic■ proMdar Il.rcanihlr kmamma aumi as aaalAit l,pon raq.9s5. Dal rtl For IdWke %lar ` mEm. 24-985 Kirkham Appraisals Inc. Page 32 Market Delineation: According to Market Analysis for Real Estate Second Edition page 534, "A market area is defined by the specific use or uses of the property and the users it is likely to attract. The tenants and clientele who constitute the demand for the mix of uses in the subject tract will not all be drawn from areas with identical boundaries. Available data often have to be adjusted to correspond to the market areas defined by the location of property users." The market area is the physical area where similar properties effectively compete. It can also be envisioned as the area that contains all the primary competition, and in certain cases, some secondary competition. Market areas may contain one or more neighborhoods, districts, cities, counties, or states. Market Area Boundaries North Bannock County East Bannock County South Bannock County West Bannock County Demographics Physical Area Bannock County Recent Population Level About stable near 89,517 Household Income About stable near $56,472 Local Unemployment Physical Area Bannock County Recent Pattern Mildly declining Approx. Current Percent 3.2% (Bureau of Labor Statistics) Financing (for real estate like subject) General Loan Availability Ample availability; requirements mildly difficult Interest Rate Range 6.00% to 10.00% Typical Loan -to -Value Ratio 70% to 75% Typical Amortization Years 15 to 20 years Loan Maturity / Balloon 5 years 24-985 Kirkham Appraisals Inc. Page 33 Nearby Land Uses Single -Unit Residential Proximity Features Expected Change in Economic Base The area is growing, with 1% growth in population and households overthe past several years expected to continue. Protection from Adverse Conditions Average Demand for Real Estate Like Subject Moderate Building Age Range 0 to 80 Years Oversupply of Property Like Subject Eastern Idaho has a large amount of land on the market. General Appearance of Property Average Location Average, Suburban Land Use Change Unlikely Police and Fire Protection Average Expressway Access Average Employment Centers Under 1 mile Property Compatibility Average Overall Appeal to Market lAverage Nearby Land Uses Single -Unit Residential 40% Multiple -Unit Residential ! 10% Retail / Commercial ! 15% Office ! 10% Industrial 15% Agriculture ! 5% Vacant Land 5% Other 00% Total 100% Other Description: The subject property just north of Capell Park in Chubbuck. The general developed with medical uses, office uses, residential uses, and industrial uses over the past se subject property is located approximately 425 feet east of Mesquite Drive. 24-985 Kirkham Appraisals Inc. Page 34 Pocatello/Chubbuck Residential Market Analysis Physical Area Foreclosures & Short Sales New Construction Pocatello/Chubbuck Shrinking portion of all sales Increasing An Abstract of PocatellofChubbuck MLS Reported Single Family Detached Sales YEAR total sales Avg reported Value Annual %-Chng Med %of QOM Asking Total Ann Sales S Median Price $ 2013 809 151,338 #REF! 85 97.29 122,431,489 135,000 2014 841 156,739 1.07% 93 97.87 131,817,906 136,450 2015 960 157,490 1.65% 78 97.82 151,190,603 138,700 2018 1 1.002 188,127 1.8096 1 70 98.51 1 166,459,388 141,200 2017 1.030 168,578 4.11% 61 98.74 173,636,209 147,000 2018 989 196,175 15.58% 52 99.21 194,018,001 169,900 2019 981 214,366 10.06% 50 99.42 210,293,114 187,000 2020 988 246,937 18.59% 50 99.53 243,974,548 221,771 2021 1.086 1312,8411 26.26% 42 1100.00 339,746,105 280,000 2022 1 922 1374,6421 17.8696 1 50 1 99.28 1 345,420,366 330,000 2023 1 747 1378,6331 3.0396 1 58 1 98.77 1 282,839,568 340,000 Median Horne Prices g 200,GQ10 154,OW 100,000 2016 1 2011 1 2018 1 2019 1 2020 1 2021 1 2022 1 2023 Seriesi 1141,20 1147,00 1169,90 1187,00 1221,77 1280,100 1330,00 340,00 In real estate, average sale price is often greater than the median. If the ratio of the average sale price to the median price (shown in last column) significantly changes from prior periods, the distribution of sales may be the real cause of the price change, and not true price appreciation or depreciation. Further analysis is necessary. Expected Near Future Price Could decrease with increase in interest rates Change Overall Supply & Demand Near equilibrium of Housing 24-985 Kirkham Appraisals Inc. Page 35 Real Estate Like Subject (Commercial and High Density Residential Land) Sales Market New Construction Inventory of Competing Property for Sale Expected Near Future Price Change Marketing Times Overall Market Conditions "MI Some Could Decline with Rising Interest Rates, and a possible recession. Stable Fairly Stable with a possible recession forecast for 2024 The residential market had seen increases in median and average home values since 2011. 2021 and 2022 have brought large increases in value to residential properties. Interviews with agents in the market area indicate there was a shortage of supply for residential homes, which fueled the current residential value growth. New construction starts have increased since 2014 and are expected to continue their increases over the next several years. The federal funds rate for May of 2017 was 1.0%, and went to 0% during the pandemic, and has since increased to 5.25-5.50%. The increase in the federal funds rate has had a significant effect on mortgage rates and real estate activity has slowed. Pocatello's commercial growth has consisted of major retail chains including Costco, Dick's Sporting Goods, and Winco, along with several new restaurants that have been constructed mostly along Yellowstone and East Center Street over the past several years. The main growth in Pocatello and Chubbuck over the past several years has been in high density residential developments and smaller commercial developments in Chubbuck, North Pocatello, and the University area. 24-985 Kirkham Appraisals Inc. Page 36 Regional Multi -Family Market Data MARKET RENTS I MULTIFAMILY MARKET 2023 EASTERN■Aw RENTAL ItAfEV-, l BEDROOM 2 BEDROOM 3 BEDROOM AVERAGE AVERAGE AVERAGE SIZE (SF) 644 970 1,154 ■ MARKET SNAPSHOT Apartment rents stabilized throughout the Eastern Idaho RASA with the average rates for 1 bedroom units all under S1,150 per month. in the Idaho Falls and Pocateilo regions, average rental rates for 2 bedroom units decreased from this time in 2022. Rents remain highest in the Idaho Fails and Ammon region, but Rexburg follows closely with rent prices increasing by an 1 BEDROOM 2BEDROOM 3 BEDROOM average of $16.00 in the last year. Multifamily rates in other EasternIda hometros suchasfloratelIoandChubbuckremain AVG LOW HIGH AVG LOW HIGH AVG LOW HIGH more affordable but are expected to rise considering new supply remains limited In these areas. IDAHO FALL5&AMMON $1,112 $706 51.395 $1p62 $875 $1,710 53,749 $1,120 $2.110 Si ng lefamiIy home sales in Eastern Idaho have dec I i ned year- AVG LOW HIGH AVG LOW HIGH AVG LOW HIGH over -year since 2020 with no signs of change to that trend in 2023. Based on data from the Snake River MLS, single family POCATELLO&CHUBB11Ck 5912 $717 51395 51,147 $875 51,620 51,333 $942 $1,875 home sales are down al most 13 percent from this time in 2022. AVG LOW HIGH AVG LOW HIGH AVG LOW HIGH Additionally, the current median home sale price is $390,000, down $15,000 when compared to 2022high interest rates14 SIA23 5695 51,210 S1,235 5986 S1,760 $1,533 51,560 5MAJ and continued inflation have put homes out of reach for many would-be buyers, while also discouraging people with -- mortgage rates at lower levels from selling. According to TOK Commercial brokers, apartment rents have stabilized throughout most of Eastern Idaho. Single family home sales have slowed over the past several years with the current monetary policy creating affordability issues for single-family housing. This unaffordability could increase the amount of renters in the area, which in turn would increase demand for new multi -family units. 24-985 Kirkham Appraisals Inc. Page 37 MARKET ACTIVITY I MULTIFAMILY MARKET 2023 For rnuhifamily product over 4 units, transactions increased by over 70 percent compared to 2022. Values also remain high with a median price per door of $141,250, up 5.6 percent from 2022s vaIues.These increases are likely due to stable population growth, coupled with the rising number of renters, further solidifying the appeal of investing in muidfamily real estate In Ea stem Idaho. In the Idaho Falls area, the occupancy rate is currently 96.4 percent for stabilized apartment complexes over 50 units, per ALN Apartment data. This is over 300 basis polnts higher than the current national average of 93.1 percent. National cap rates are 528 percent, the highest they have been since 2017. This rise in multifamily cap rates can likely be attributed to higher interest rates. Additionally,over the next six months, most investors expect overall cap rates to continue to rise. 4s 4Q 25 20 is in 5 d TRANSACTIONS PER YEAR I PRICE PER DOOR $16o,000.m $140,o0a.m s1.x,000.m $]AO,000.m S80,amAa 560.00h0a $4O,a0a00 $20,OOh00 �n m 2073 201$ la19 2020 2021 ZC22 � Median Price per tenor -N D. of Sales In Eastern Idaho, the multifamily real estate market has experienced significant growth in transactions, increasing by over 70 percent compared to 2022. Values have remained high, with a median price per unit rising by 5.6 percent to $141,250. This growth is attributed to stable population increases and a rising number of renters, making multifamily properties appealing investments in the region. In the Idaho Falls area specifically, occupancy rates for large apartment complexes are at 96.4 percent, significantly higher than the national average of 93.1 percent. National cap rates for multifamily properties have reached 5.28 percent, the highest since 2017, likely due to rising interest rates. Most investors anticipate further increases in cap rates over the next six months. 24-985 Kirkham Appraisals Inc. Page 38 UNDER CONSTRUCTION MULTIFAMILY MARKET 2023 ,fie._ Rexburg 0 UNDER CONSTRUCTION I ', PLANNED J l ' I I ( IDAHO FALLS Z3 I •w.r JI II 224 I� The data from TOK indicates approximately 468 units in the Pocatello/Chubbuck area to come online in the next several years. This increase in supply should help off -set rising demand. Which in turn could help keep rents stable. 24-985 Kirkham Appraisals Inc. Page 39 UNDER CONSTRUCTION1 MULTIFAMILY MARKET 2023 Accord Ing to the US Census Bureau, the majority of Eastern Idaho cities saw population grow by over two percent from 2026. The strongest growth happened in the cities of Rigby and Amman, with an 82 percent increase and a 7.3 increase, respectively. This growth continues to drive multifamily development in Eastern Idaho, as demonstrated by a 62 percent increase in multifamily unit permits from the end of 2021 Additionally, there are 75,000siudents registered each semester be four major universltiesand col leges within the region, per REDI.This large student population I n Eastern Ida ho a I so plays a major role in mui tifamily development. Most development can tin ues to occur In Idaho Falls, with over 900 units planned or under construction in the area. However, other areas such as Chubbuck/Pocatello and Rexburg are starting to see new multifamily con structlon as well, with 540 units currently under construction or planned. MULTIFAMILY & SINGLE FAMILY TRENDS ;itl0 2,000 l,500 S,DDO 500 0 m1y aoxs xoxo znxl ..._. xuz3 ■Single FamJy Perm4ts •-r.Wlfllart¢ly lri+i: POPULATION PERCENT CHANGE BY CITY me�wr�h e.nMen Pou�elio PeaGrtp &erHaer (IDY 1bf x.Ox i.0:' ?.Cm: 9.W Population growth in Eastern Idaho, particularly in cities like Rigby and Ammon, has driven a surge in multifamily development, with permits for such units increasing by 62 percent since 2022. The region also boasts a significant student population, with around 75,000 students enrolled each semester across four major universities and colleges. Most development activity is concentrated in Idaho Falls, where over 900 units are planned or under construction, though areas like Chubbuck/Pocatello and Rexburg are also witnessing new multifamily construction, with 540 units currently in progress or planned. Conclusion The market area has grown over the past couple of years at a slightly slower rate than Boise and Idaho Falls. I would expect extended marketing times and a possible decline in land values in the area with economists indicating a recession in 2024-2025 is possible, but the area is predicted to continue its steady growth of approximately 1-2% yearly, which will continue its demand for residential developments. 24-985 Kirkham Appraisals Inc. Page 40 MULTIFAMILY UNITS & PERMIT VALUES 000 59t1 SBO PD cob sw sso Sau 400 530 xoo Sm 1 Ocie m19 m]0 m11 N—her ur uniu —Fermi[ Wl- �5 n1.411F-1[ Accord Ing to the US Census Bureau, the majority of Eastern Idaho cities saw population grow by over two percent from 2026. The strongest growth happened in the cities of Rigby and Amman, with an 82 percent increase and a 7.3 increase, respectively. This growth continues to drive multifamily development in Eastern Idaho, as demonstrated by a 62 percent increase in multifamily unit permits from the end of 2021 Additionally, there are 75,000siudents registered each semester be four major universltiesand col leges within the region, per REDI.This large student population I n Eastern Ida ho a I so plays a major role in mui tifamily development. Most development can tin ues to occur In Idaho Falls, with over 900 units planned or under construction in the area. However, other areas such as Chubbuck/Pocatello and Rexburg are starting to see new multifamily con structlon as well, with 540 units currently under construction or planned. MULTIFAMILY & SINGLE FAMILY TRENDS ;itl0 2,000 l,500 S,DDO 500 0 m1y aoxs xoxo znxl ..._. xuz3 ■Single FamJy Perm4ts •-r.Wlfllart¢ly lri+i: POPULATION PERCENT CHANGE BY CITY me�wr�h e.nMen Pou�elio PeaGrtp &erHaer (IDY 1bf x.Ox i.0:' ?.Cm: 9.W Population growth in Eastern Idaho, particularly in cities like Rigby and Ammon, has driven a surge in multifamily development, with permits for such units increasing by 62 percent since 2022. The region also boasts a significant student population, with around 75,000 students enrolled each semester across four major universities and colleges. Most development activity is concentrated in Idaho Falls, where over 900 units are planned or under construction, though areas like Chubbuck/Pocatello and Rexburg are also witnessing new multifamily construction, with 540 units currently in progress or planned. Conclusion The market area has grown over the past couple of years at a slightly slower rate than Boise and Idaho Falls. I would expect extended marketing times and a possible decline in land values in the area with economists indicating a recession in 2024-2025 is possible, but the area is predicted to continue its steady growth of approximately 1-2% yearly, which will continue its demand for residential developments. 24-985 Kirkham Appraisals Inc. Page 40 Subject Property e 9 . Identification of the Property The real estate appraised is part of a larger parcel that is access from Capell Park. The site is just north of the existing tennis courts. Since the subject property consists of just vacant land, it does not have a common address. Legal Description A professional surveyor and / or legal counsel should verify the following legal description before relying upon, or using it as part of any conveyance, or any other document. This legal description was obtained from public records and is assumed accurate. To Be Determined 24-985 Kirkham Appraisals Inc. Page 41 Aerial View "I kLISAI CD Usuret #.uylQou Lr 3073 x."dp'I=rlti ro•. Aerial Map ,I I IF '-h{arn vi- I ROanok _ 4 511 a� Dr � 1 pgce6e'llq 'hl9 3�3:saE 1 { I p _ Lr � I - Boundary Center: 42.931208, -112.481304 3 -GS -34E Bannock County Idaho DR 26OR 5bOR r r r W_ F. Q .. 1 OW2D24 24-985 Kirkham Appraisals Inc. Page 42 Soils Map Soils Map Sous Bala pruvWd by USDA and NRC G. - iphor•I=Rd� 91 Ada r1S`St � -+ 9rrres 11 3 . z .0 m Mingo -Ln � rceinn iYV4Dhub�uck'-.I d IB ! 024 FI State- Idaho Cade Couny- Bannock Aces Locafiw- 3-6S-3 Narlkr Townsh[W- Pocatello Sept -c Acres: 2.05 Sal Bate: 10f4f2024 m Mal`% Bw" naoaausaK� �o Paswre Sugar j surety W+P. # sMtp�hrOwLw�Mv�w* :.s,A6+u YY i0i9 N.r }N15Y11 tem Class ,area Sy"bd: 0711.8a Area Version: 18 Cade SA Aces PEroem Narlkr Resucijwe Sept -c Feundatan Sal Non- m Mal`% Bw" Irish Paswre Sugar 4esawbDn olfield Class Layer Limfs Linin Drainage Irr Class hay Irrigated Wines Omgaged heels Lesotwa Class kmated Bc Irrigated AUM &WtEC Tarns Cge Tans T Bdwn Mk 265 iGODh > 05ft sainewhat rrotynited Well Vic rlie 6 100 270 12 2 hDarn, 0 to 2 in ileo dained L-1 slopes WeighiPd Average I fi.D01 1.0DI 51 1001 2701 121 2 'n: The aggregaYon nw4iod is'Weigh:ed Average using aN components' SWIsdemm %JedbUUaDLwilrft:S- 24-985 Kirkham Appraisals Inc. Page 43 Topography Map Topography€ Contours � Il � 111 p'1 7 1 T � 4�3 :E ING' 4 Y A Ar L F 1 r n F Source: USC,5 16 meter dem dR 13BR 2738 Jlajj511jj 1 1 1 MA: llirisenraljflj: 1-0Min: 4,469-d��1�1 '� 1�� Max: 4,469-6 �.,�, � 3 -6S -34E w:p�P~ dtd% Range: 2.2 amurBannock County Average: 4,469-1 Idaho .,.�.. o..�......... 1414f2U24 Standard Deviation: U-$2ft .c.-wi �� mss w.RouaScrai�m+ Boundary Center 42.939269, -112.4613U4 24-985 Kirkham Appraisals Inc. Page 44 T A, MPH Photographs of Subject (photo page 2) low Subject Subject 24-985 Kirkham Appraisals Inc. Page 46 Photographs of Subject (photo page 3) w N ,]oil r--, �.:�#'�1a;�.k;!iuL�-r�'--r1= iy�= - _.�.s_-Y'��:�v.�s:»a�,s�s�cn•,�.t::---- w_ ;._ - -��.,: Subject Subject 24-985 Kirkham Appraisals Inc. Page 47 Sale History The subject property is a portion of a larger parcel that was sold on September 1, 2021. The parcel contained approximately 39.48+/- acres and sold for $4,500,000. The grantor was listed as Keith Tanabe and Tomi Ivie and the grantees were listed as Gary and Jennie Ratliff. The subject has since been platted and split several times as it has been developed. Subject's Current Ownership Owner Information Source Gary Ratliff Assessor's Records Flood Hazard According to the appropriate Federal Emergency Management Agency (FEMA) flood map, which is identified below, the subject property is not located in a zone "A" special flood hazard. Flood Map Number 16005CO237D Flood Map Date 07/07/09 Flood Zone X Flood Maps published by FEMA are not precise. If anyone desires a precise determination of the subject's flood hazard classification, a professional engineer, licensed surveyor, or local governmental authority should make an exact determination. Real Estate Taxes Throughout Bannock County, the Total Assessed Value is supposed to represent 100% of market value for all property types. County Bannock Parcel ID # Part of RPRCCPC045401 Tax Year 2023 Total Assessed Value $462,172 (10.61+/- acres) Total Tax Dollars $1,302.06 Real estate taxes are a primary mechanism used by local government to gather the monies needed to fund operations. Too little funds can limit governmental services. Excessive tax burden can hinder real estate values. The subject's tax burden is within normal ranges and should not have a negative affect on the marketability of the subject property. Zoning The subject property is zoned "R-4" Dense Residential District by the City of Chubbuck. This land is well suited to serve a large number of legally permitted uses. Zoning does not unduly limit value or marketability. 24-985 Kirkham Appraisals Inc. Page 48 Zoning 24-985 Kirkham Appraisals Inc. Page 49 Environmental Risks Disclosure During the course of this appraisal, the appraiser(s) did not detect or attempt to discover any environmental hazard on, under, above, or within the subject real estate. No overt evidence of any environmental hazard is apparent to the untrained eye. It should be known the appraiser(s) did not view the subject property with the intent of detecting any environmental hazard. It is beyond the expertise of the appraiser(s) to detect or determine the chemical nature of any substance or gas. No effort was made to dismantle or probe any part of the property to discover enclosed, encased, or concealed hazards. No effort was exerted to ascertain the presence of any environmental hazard including but not limited to the following. Asbestos Underground storage tanks Lead-based paint Radon Chemical spills Urea formaldehyde insulation Soil contamination or deficiencies Toxic mold PCB Fire resistant treated plywood (FRTP) Flood hazards are detailed elsewhere in this report. Except as enumerated herein, the appraiser(s) were not given the results of any environmental testing on or near the property being appraised. Neither observation of the subject property, or research conducted as part of a typical real estate appraisal suggest the presence of any hazardous substance or detrimental environmental condition affecting the subject. Nearby sites were not investigated to determine whether they are contaminated. Public information and other Internet sources were not researched to determine the presence of hazardous substances or detrimental environmental conditions in the subject's vicinity. Federal, State, and local laws concerning any hazardous substance or gas are sometimes contradictory. Therefore, any needed clean up should comply with the most stringent laws. The appraiser(s) are not informed or trained in environmental legalities. It is assumed no hazardous substance or gas adversely affects the subject real estate. If the subject is adversely influenced by a hazardous condition, then the subject's market value would be impaired. Recommendation The presence of any hazardous condition usually diminishes market value. The value opinion formed in this report assumes there is no environmental hazard affecting the subject real estate. No responsibility is assumed by the appraiser(s) or Kirkham Appraisals Inc. for any hazard, or for any expertise required to discover any environmentally hazardous condition. Our client is urged to retain an expert in this field, if desired. 24-985 Kirkham Appraisals Inc. Page 50 Subject Property Subject Site Size 2.05+/- Acres or 89,568+/- Square Feet Easements Typical utility type Encroachments None known; none assumed Shape Generally Rectangular Topography Mostly Level Curbs & Gutters None Water & Sanitation Public water, public sewer at/near site Rear Alley None Access Typical Street Paving Asphalt Sidewalks None Natural Gas Public Adjacent Road(s) 2 -lane, 2 -way Nearby Land Uses Medical, Office, Residential, Industrial Electric Provided by public companies at prevailing rates Major Flaws None Overall Features The land has typical features as compared to similar alternatives. Its overall locational attributes are average relative to competitive parcels. 24-985 Kirkham Appraisals Inc. Page 51 0 Analyses & Conclusions e e e Value Introduction For real estate that is predominantly unimproved vacant land, there are six valuation methods. The most frequently used sales comparison approach is employed in this report. 24-985 Kirkham Appraisals Inc. Page 52 Real Estate Cycles Real estate generally has four market cycles. "Understanding where the market is and forecasting the extent of duration of the cycle are important in projecting the pattern of future income."' These cycles are depicted below. The red arrow depicts the appraiser(s) opinion of the subject's position in the market cycle. Segment Name Characteristics Growing demand, rental rates climbing above replacement cost, decreasing AB Expansion vacancy, concessions not prevalent, high profit potential stimulating much new construction Stable to weakening demand, stable to weakening vacancy, small BC Contraction concessions beginning to occur, rents stable to mildly weakening, profit potential shrinking so new construction slowing CD Recession Stagnant to declining demand, vacancy growing, rental rates falling, significant concessions prevalent, new construction virtually halted DA Recovery Demand strengthening, vacancy shrinking, rental rates starting to climb, concessions shrinking, new construction beginning to occur Time until the next major point 1 1 to 2 years ' Advanced Concepts & Case Studies, pg 253, Appraisal Institute, copyright 2010 24-985 Kirkham Appraisals Inc. Page 53 Highest and Best Use Introduction A highest and best use identifies the most reasonably probable and appropriately supported use of the property appraised. Since market conditions change, a property's highest and best use may change as well. This analysis is an essential step in the determination of market value. Market dynamics determines a property's use and an appraisal values that use. Practically speaking, a highest and best use analysis forms a framework for the proper selection of comparables. The "Dictionary of Real Estate Appraisal", 6th edition, copyright 2015 by the Appraisal Institute defines this term on page 93 as: 1. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and mostprofitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions). " There are two types of highest and best use. The first is highest and best use of land as though vacant. If a building already exists, the second variety is highest and best use as though now improved. The later considers whether the existing building should be retained as is, demolished, remodeled, renovated, repaired, enlarged, or converted to an alternate use. Both types require separate analyses. Current usage may or may not be different from the near future highest and best use. The concept of Highest and Best Use is based upon four major criteria, which are summarized below: 1. Legally The use must be legal or probable. That is, the use must conform to existing zoning Permissible restrictions, or there must be a reasonable likelihood a rezoning or variance may be granted. Private agreements like deed restrictions and leases must also be considered. 2. Physically Physical attributes of the land that must be considered include size, access, shape, orientation, Possible soil conditions, potential hazards, topography, and utilities. Physical attributes of the building that must be analyzed include design, size, efficiency, mechanical systems, floorplan, construction materials, quality, and physical condition. 3. Financially Land may be developed with different uses. Only those uses, which produce a positive net Feasible return over time with acceptable risk, are deemed financially viable. This use must not depress surrounding property values. 4. Maximum Of all uses that survive the first three tests, there is only one use, which produces the greatest Productivity return with the least risk. This single use represents the property's Highest and Best Use. Supply and demand are constantly fluctuating, so it is common for a property's highest and best use to change. 24-985 Kirkham Appraisals Inc. Page 54 Highest and Best Use Introduction Demand analyses can be categorized into two different levels of detail - Inferred and Fundamental. A fundamental analysis forecasts future demand from projections of broad demographic and economic data, specifically population, income, and employment. Existing supply is inventoried. Then, the relationship of supply and demand is weighed to determine residual demand. If residual demand is positive, more of that property type is needed. Of course, the opposite is also true. An inferred analysis is based on local trends and patterns from which inferences are made. This type analysis presumes that recent past trends will continue for the near future. Sale prices, number of competitive listings, marketing intervals, and / or price changes for other similar properties infer there is adequate demand for the subject at a price level congruous with the available data. An inferred analysis emphasizes historical data while a fundamental analysis is based on expected future occurrences. This appraisal's highest and best use was based, in part, on an inferred demand analysis. Following below are detailed considerations used to form a highest and best use determination for the property appraised. Buyer Types The most likely buyer type is crucial to highest and best use. Different buyer types have different motivations and different perceptions of risk. The buyer type must be identified to better understand applicable approaches and the selection of cap rates and yield rates. Different buyer types are identified below. Owner -User Acquires real estate mostly for its use or control. Vacancy & investment yield are not primary criteria. Property suitability is the major objective. Typically, a medium to long-term owner. 2 Secure Income Seeks an established, secure income stream; normally does not change the property in Investor any meaningful way. Usually favors a long-term ownership. 3 Developer Acquires real estate to physically or legally change it in some significant fashion; accepts substantial risk so expects major reward over a short -to -medium holding period. 4 Speculator Buys real estate solely as an investment with most of the reward at termination. Property use is not a primary consideration; medium -to -long-term holding period; Usually buys during very weak market conditions, so accepts huge risk. Mantra: buy low, sell high. 5 Value Growth Buys real estate mostly for price appreciation. Property use is usually not a major Investor consideration. Typically buys during conditions of rapidly increasing prices; prefers a short -to -medium ownership period. 24-985 Kirkham Appraisals Inc. Page 55 Highest and Best Use Most Likely User The most likely user is also important. Clearly, users of an age -restricted, multiunit residential structure have needs and preferences that are much different from young married couples with small children. Similarly, the most likely buyer of a handicap accessible home is a handicap person. This most -likely buyer would perceive the special physical features as beneficial, not detrimental. Preferences and needs of the most likely user affect value, so the most likely user should be identified to judge the extent that existing or proposed improvements fulfill those preferences or needs. Nationally -recognized users typically pay higher prices and rents as compared to local users. Timing of Use A crucial component of a highest and best use is timing. If the timing of a use is not now, when is it? When timing for a specific use cannot be identified, then that use is not the best. If the highest use is not within a decade, then the time -value of money usually precludes that use. When the timing of a use is within a few years, what is the interim use? Remaining dormant is a legitimate interim use. Ideal Improvement Identification of the "ideal improvement" is an essential element of highest and best use. If the property appraised is vacant land, the ideal describes what should be built. If the existing improvements (one or more buildings and site improvements) have the same or similar attributes as the ideal, then the existing improvements have no or minimal depreciation. Obviously, the opposite also applies. The described ideal improvement is as specific as market data will allow. The ideal improvement is the physical use of the land as though vacant. 24-985 Kirkham Appraisals Inc. Page 56 As Though Now Vacant Land If subject parcel were vacant, how would it be used? This question is answered by applying the four tests of highest and best use. Dally Permissible Legal restrictions fall into two main categories - private and public. Private restrictions are agreements imposed by previous owners. Examples include access easements, use limitations, and leases. Public constraints include zoning, right-of-way easements, historic districts, and utility easements. Unless specifically stated otherwise, there are no known atypical private or public restrictions. Zoning permits a variety of residential uses including single family development up to high density apartment complexes. Dense residential (R-4): The purpose of this district is to provide for the development of dense residential districts, including apartment buildings and apartment complexes composed of clusters of abutting zero lot line residences, duplexes, threeplexes and fourplexes. Single household dwellings, abutting zero lot line residences, duplexes, threeplexes, fourplexes and apartments are permitted. Class III residential production buildings are allowed only in clustered arrangements as provided elsewhere in this title. Physically Possible Physical attributes commonly considered include size, shape, access, flood potential, topography, and availability of utilities. Characteristics that may be significantly detrimental but the appraiser(s) are not trained to detect or determine environmental hazards or soil conditions. There are no known environmental concerns or adverse soil conditions. The land is not located in a FEMA special flood hazard. Sewer and water connections are proximate and access is convenient. The subject's 2.05+/- acre size, low traffic frontage, and efficient shape are adequate for a variety of residential uses. Its location near other residential uses is beneficial for a residential use. There is a local railroad on the east side of the property that may cause some noise concerns, but several other residential development have occurred along the same rail line, so the impact is considered minimal. In summary, the subject's physical attributes are conducive for a myriad of legal residential uses. Financiallv Feasible Uses that are impossible or improbable physically and legally are first eliminated. Those uses that remain are then tested to determine whether they produce sufficient net income to fully pay for all operating expenses and provide adequate compensation for all invested capital. Residential vacancy is low in Eastern Idaho at this time. Residential sales prices are currently commensurate with residential construction costs. Currently a residential use is a financially feasible use. There are current headwinds which should be considered, like the monetary policy that has increased mortgage interest rates thus reducing effective purchasing power. Caution should be taken through the next several years until the real estate sector is expected to stabilize. Maximum Productivit Maximum productivity is considered only if more than one use survives the first three tests. This concept holds land will be developed with the use that returns the greatest positive reward over time assuming it is appropriately supported. However, the numerical return should not be the sole determinant. The numerical reward must be weighted within the context of risk. When a use is expected to produce a very attractive return but the risk is very high, that use is often eliminated. A residential use is currently the maximally productive use for the subject property. 24-985 Kirkham Appraisals Inc. Page 57 Conclusion As Though Now Vacant Physical Use Timing of Physical Use Interim Use Market Participants Most Likely Buyer Most Likely User A New Residential Building/Buildings Immediately develop with the physical use No Interim Use A developer for immediate improvement Small, local tenants Considering the foregoing highest and best use determinations, comparables were selected with the same or similar highest and best use. This data is very influential while forming a value opinion for the property appraised. 24-985 Kirkham Appraisals Inc. Page 58 Land Value "As Is" 24-985 Kirkham Appraisals Inc. Page 59 Land Value Introduction The best method of valuing vacant land is the sales comparison approach. Sales of similar sites are gathered and compared to the parcel being appraised. Differences affecting value are noted. Adjustments to compensate for dissimilarities are applied applicable transactions. Adjusted comparables produce an indication of value for the subject parcel. Any factor can affect value. Those considered during this appraisal's land valuation process included yet are not limited to prominence of location, date of sale, size, shape, availability of utilities, zoning, topography, and access. Numerous sales were reviewed; however, only those deemed most comparable were selected for detailed analysis. All conveyed on an "arm's length" basis except if specifically noted otherwise. Land sales shown herein are presented on a dollar per square foot basis as a common denominator. Abbreviations Used in Some Tables SEC = Southeast Corner Sim = Similar NWC = Northwest Corner Inf = Inferior Loc Fea = Locational Features Sup = Superior There are few, if any, conveyances of truly similar land. Therefore, an opinion of the subject's land value was developed after consideration of scarce sales, which hinders the sales comparison process. Moreover, the allocation method of land valuation was also considered. 24-985 Kirkham Appraisals Inc. Page 60 Land Sale #1 Commercial Property Land Location Data Adj ress City I Chia my TBC 9erch Rzad pacatella jearreck Sales data -G rantor Size in SF Fwrana ng Terms The ChLrch nfJesus Christ of Latter -Day -Grarrtee rr17-F C�3pital, LL_ Coal"' be =ElIer Property RightsCurnmyed FeE :irnple SaleDate Sales prig CondtivrrsofS&le 9 _x2022 Days on Market $1,29-: ,O E3. h Equnraleratprice -,rrm Length Verification =2" $1,=?C.xc.,.0 Dean Funk: MLS Economic. Indicator Site a ata Rarcel4 Size in SF RF1'FF3C-1C7 2,2 E,E2S Zoning Size in Arres RLF 6.52 Appraisal Indicators Overall Priteper Unit Gra ss Rerrt Multiplier 5 -. -r,,-.4 y Capitalization Rate pG1 Vacancy EM Expenses f4w 5v 5, I �,:) Iso ISO 24-985 Kirkham Appraisals Inc. Page 61 Land Sale #2 Commercial Property Land Location Data Sams D a za Site D ata Appraisa I Indicators Economic Indicator PIG Vacanc' iE Exp MM 5v 5- $� $o rt.Mefas This isthesa6 of a RH za ed parcel containing 3.72+•r- acres. ThesaL-was apprwad f -Dr a 7 2 unitaxn*xwhifh equates t-D$fiy597 per unit i J Wn jka ij I y CIO. tl *+ ,4d d rens City �al.rr� T'_� ��.irr Riad Fo.atell= Eann:�ck C}ranto r Size in SF Finan Ling Terms Gary Ratliff Grarrt� Zoning �=_.r ,= =LIICr Property R�hts C�rl,reyed Date City builders = _� simple 5al��te las Prirg Conditions of Sale 5 2iD20 $d75 JM 20 arm= L=_r =:t D�ysrn�4dadoei hf�iva4errt Prue Verrficalian, �Jrkr.�vr. 475,'0. r.rathanVincent buyer Parteln Size in SF TPC 1E 2,13 Zoning 5ixe in Ames �Irerall Pri�ePer UI-rit ro�RgntF°lultiplier $ 2.93 {�pital ¢ati�n Rate•O.,0055 24-985 Kirkham Appraisals Inc. Page 62 Land Sale #3 Commercial Property Land Location Data i ifd!rau Gtv I Cm my 4335 Hawthorne Read PoratellC 18arinock Sales a ata !G rant -Dr Size in SF Finand rig Terms Trusteesofthe EriksenFamilyTru-. Grantee Cal Kunkel CashtZEdlar PrDperey Rights Conveyed Few imple Sale Date Sales Price Conditions of Sa le EV q2021 51 :D4 Arms LenQ h Dap an 4arket Cash EquivaLent Price VevlfluatoTp Urnknwor S1. SC-.:3CC.:v Chris Fou lkrod:Agent Economic Indicator Site Data Parral 0 Size in SF RPRFCFP; l Ew-:,1-57 Zoning Size in Ages R CF 13.78 Appraisal Indicators Overall Price Per Unit Gra ss RentMultiplier Capitalization Rate PG1 Vaiancp M EHpen!es IN01 5v Sv $0 Is-- 150 Cflm me rru Th is Lr* the -sale d aIargeparuel akrrg I-86and HavvtharneRnad acrossfrom Home Depot. There are rommerflaIuses as yell as multkfamily and siriglefamily residential usessun-oundirgthesuNert V i. pVr ar l- �I[!r � e - 1 its.. I`1 il T ■X144 �� Al � �� 11111■� � 61AM 13 24-985 Kirkham Appraisals Inc. Page 63 Land Sale #4 Commercial PropertV Land Location data Ad d r ss City Cau rrLy TBC =--+.th Sth Ayeru=_ F --_34a11: P_rr=ti z Sales Data -Grantor Size in SF Financing Terms South End LLC -Graatee Zoning Pruperty. Rights Conveyed Jo n.athan Vinc.r- 3.62 Fee 5 rFla Sal eDais Sales Price Cmifitiansflf Sale 12r'1r'?�21 S==S,C:v" Arrrs Length Days ort Market Ca ah EquivalentPrice Verification 5 5,MZ:-- Economic Indicator Site Data Parcel 4 Size in SF TPD 15?,61�? Zoning Size in Acres M U 3.62 ADDraasaI Indicators Overall Price Per Unit 6roasRent Multiplier 52. Capitalization Rate a :205s FGI Vacancy EGI Expenses INOI Si IS, 1-110 Iso 1150 C -0m me nts This is a parcel of land just west of PMTtranspu tion. The land was zoned N11 by BannockOwnty at the time of sale. This isthesite of na0ideueloped 18 un ittvwnhause cam pier, The total per unit is 523,611. PiMre �' •,� % rF f .ti f r Ak � L 24-985 Kirkham Appraisals Inc. Page 64 Land Sale #5 Commercial Property Land Location Data Pdd ress City CM my 255 East Chu tbuck Road CFubt+.Ek Earr:c Sales Data G ranto r 5iae in 5F Fwmnn rig Terms Bra be and Car, deECwter -Gran[ee Cash tE =eller property RightsOmveyed Arbor Ccu rt LLC Fee Simple Sal-eDa-e Sales Price Carwitionsof5ale Er' ?421 5 E -1210M. -X- ms Length Daps an I4trket h Equhmlent price Veeficaton Uknowri 5C-1"=.:-.0 kssing5tawmerxt Economic indicator Site Data Nrrel4 5iae in 5F RPRI'D 1216.cC1al ,SCE Zoning 5iae in Aires AuuraisaI Indicators Overa II Price per Unit rfls5 Renk Mulbplier 5' - Capital¢atian Rate FGI Vacancy EM Fla NOI 5i 5i 1Sa Iso 5v Comments This is a parte) cf land on East Chubbuck Road just north of the new Chubhuck pity Hall. Thesubortwas znned C-2 commercialgene ralatthe time nfsal e. Totaldaibftraffkof141}€DDcar5Per dagswas reportedbyITD.This Iand was developedwith a 2&u nit mulitfamitydevelopment which equatesto$21,857 per un it. PrLxe io� :1. j' , I i ; 5 24-985 Kirkham Appraisals Inc. Page 65 Land Sale #6 Commercial Property MU Land Location Data Sales Data Site Data Appraisal Indicators Economic indicator PQ Vacancy EM Expenses NCH 5v 5i �0 s]Is-- Corn nwnu The= fler_tparrelw,aspurthaledindewelopedasalargeapartmEntrDmpiEx.Acrordingtotheagent,ther�mplexwilI bea high end EDrnpiPx The am nuntof units being built is unknown. PrLwe -�t - Y ■ i I T �J ; -: Ad d rens Cite. Cflu MYTBC f;rudser Granter Size in 5F Fin antirg Terms phd �uttt parrs.; Granter Size in 5F Fin antirg Terms tirudsen Foar Farms Grande property Righ*sGonveyed '.:'C-� Chu htur:k LLL Fee =imFl= 5aleCratg males Price Conditions of 5a le 6r'1D/202 2 53,!:'.:{.C.:' firms Lente h Daps on l4Urke[ Cash E qu i�•a le nc prir a Verification 53, 1v v,:OC.�v GonZebe:Aoens Barrel � Size in 5F Zono� Size in Ages 1u �rerall prKe Rer Unit Graas Renk Mul4plier ian Rate Capikal¢atROME 24-985 Kirkham Appraisals Inc. Page 66 Land Value Summary of Land Sales # Location Sale Size (SF) Zoning Purchase Price/SF Date Price 1. TBD Bench Road, 09/22 286,625+/- RCP $1,290,000 $4.50 Pocatello 2. TBD Quinn Road, 05/20 162,134+/- RH $475,000 $2.93 Pocatello 3. 4335 Hawthorne Road, 08/21 600,257+/- RCP $1,800,000 $3.00 Pocatello 4. TBD South 51 Avenue, 12/21 157,687+/- MU $425,000 $2.70 Pocatello 5. 295 East Chubbuck Road, 06/21 84,506+/- C-2 $612,000 $7.24 Chubbuck 6. TBD Knudsen Blvd, 06/22 435,600+/- C-2 $3,100,000 $7.12 Chubbuck Subject Lot 15 Legacy Park - 89,568+/- R-4 - - Division #2, Chubbuck 24-985 Kirkham Appraisals Inc. Page 67 t lir- _ .ubjct Property. - f: • _ .. y y Land Value Quantitative Adjustment Grid Range of Values $2.95 to $6.73 Mean $4.78 24-985 Kirkham Appraisals Inc. Page 69 Land/Site Adjustment Grid SUMMARY OF COMPARABLES Subject 1 2 3 4 5 6 Date of Sale 09/22 05/20 08/21 12/21 06/21 06/22 Zoning R-4 RCP RH RCP MU C-2 C-2 Utilities City City City City City City City Sale Price $1,290,000 $475,000 $1,800,000 $425,000 $612,000 $3,100,000 Size (SF) 89,568 286,625 162,134 600,257 157,687 84,506 435,600 Price/Square Foot $4.50 $2.93 $3.00 $2.70 $7.24 $7.12 ADJUSTMENTS Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjusted Price/Foot $4.50 $2.93 $3.00 $2.70 $7.24 $7.12 Cond/Terms - - - - - - Ad'usted Price/Foot $4.50 $2.93 $3.00 $2.70 $7.24 $7.12 Market (Time) Adj. $0.00 $0.18 $0.09 $0.05 $0.24 $0.00 Adjusted Price/Foot $4.50 $3.11 $3.09 $2.75 $7.48 $7.12 Location - - - - - - Zoning - - - - ($1.50) ($1.42) Size $0.59 $0.22 $1.53 $0.20 ($0.02) $1.04 Utilities - - - - - - Shape/Topography - - - - - - Frontage/Access - - - - - - Other - - - - - - ADJUSTED VALUE $5.09 $3.33 $4.62 $2.95 $5.97 $6.73 Net Adjustment $0.59 $0.22 $1.53 $0.20 ($1.51) ($0.39) Range of Values $2.95 to $6.73 Mean $4.78 24-985 Kirkham Appraisals Inc. Page 69 Land Value Analysis & Conclusions The subject and all cited comparable sales share several characteristics. They are all located in Chubbuck or Pocatello and have similar possible development uses. These commonalities justify inclusion of these transactions in this analysis. Often there are differences between the property appraised ("the subject") and a comparable sale. When the dissimilarity affects value, an adjustment to the sale price of the comparable is necessary. Property ghts Agreements or laws create partial interests in real estate. A deed restriction or life estate usually reduces rights and value. If the subject is not affected by these limitations and a comparable is, then the comparable's sale price needs an upward property rights adjustment. In another situation, unfavorable leases eliminate a landlord's right to collect market rent, so the real estate sells for a below-market price. If the property appraised has no lease adversities and a comparable does have unfavorable leases, then the comparable requires upward adjustment. Unless stated otherwise, property rights are virtually the same for the subject and all cited conveyances. Hence, no adjustments are necessary for this element of comparison. Financing Sub -market financing is a common technique used to finance the acquisition of real estate during periods of high interest rates. When non -market financing is used, the financing may be favorable to the buyer so the sale price is inflated. The escalated price can be envisioned as a composite of the worth of real estate plus the value of advantageous financing. Since value created by financing is not real property, the contribution of the advantageous financing must be deducted from total sale price to derive market value for just the realty. On the opposite hand, there are instances where the buyer assumes unfavorable financing, so the sale price is diminished. In the latter case, an upward adjustment must be applied to the sale price of the comparable thusly deriving the market value of the real estate. Unless a statement is made to the contrary, non -market financing was not used to acquire any comparable sale cited in this report. Therefore, no compensations are needed for financing. Conditions of Sale An adjustment for conditions of sale is necessary when a criterion of market value is violated. It could compensate for unusual buyer or seller motivations. For instance, when a seller gives a buyer an atypical rebate, discount, credit, or something of value to induce a conveyance, the sale price is usually inflated. In this case, it is logical to deduct the worth of the giveback from the sale price. Residual sums represent the property's market value. In another scenario, a buyer may pay a premium to facilitate an assemblage. In this instance, the premium must be deducted from the sale price to derive market value for that conveyance. No sales were adjusted for conditions of sale. Expenditure Post Sale This is a situation when a buyer is compelled to invest additional money into a property immediately after acquisition for some atypical reason. Post -sale invested sums are appropriately added to a comparable's sale price thereby producing an adjusted sale price. Examples are demolition costs or building -code compliance costs. Unless a contrary statement is made, no adjustments are necessary for post -sale expenditures. Market Conditions Adjustments for market conditions are commonly referred to as time adjustments, but this is misleading. Value does not change due to the passage of time; sometimes it remains stable. Often real estate values fluctuate due to changes in supply and demand, interest rates, employment, or inflation. This type of adjustment compensates for change in market conditions between a sale's transaction date and a later point in time. All cited comparables conveyed between May 2020 and this report's effective value date. The market did increase to about the middle of 2022. Sales prior to 2022 were adjusted at 3% annually up through the middle of 2022. Location Each property was rated to the subject for locational aspects such as value growth potential, access, and general desirability. Those transactions with superior locations were adjusted downward and vice versa. All sales are from Chubbuck or Pocatello, so no adjustments were considered necessary. Physical Attributes A myriad of physical characteristics can affect land value. Some examples are lot size, shape, site orientation, availability of utilities, and soil conditions. Those sales with superior physical qualities warrant downward adjustment and vice versa. 24-985 Kirkham Appraisals Inc. Page 70 Comparables 5 and 6 are zoned commercial general, but both parcels have been developed with multi -family developments. It is apparent that the land for the commercial general zoning is higher than that with RCP or RH zoning, so these sales are adjusted downward. Size can be an influential factor in value for commercial land. Often smaller size land will sell at a premium over larger parcels of land. I have performed a trend analysis, which indicated some correlation between size and price per square foot: Size Trend $7.00 $5.00 • y= -3E -06x +4.5515 R' = 0.152 $5.00 54.00 $3.00 • . ...! • $ 2.00 $1.00 8- - - - 100,000 209,000 30D,000 460,000 500,000 600,000 700,000 Analysis & Conclusions The appraiser is well aware the cited conveyances are less than ideal comparisons. However, sales of more comparable properties were not discovered during our research. Selected transactions were chosen for analysis because they are all moderately priced, commercial parcels like the subject, that have similar highest and best uses. The adjusted data for the subject varies from $2.95 to $6.73 per sq. ft., with a $4.78 per square foot average. A value slightly above the central tendency is considered reasonable, as the two most recent sales are the highest adjusted sales price per square foot. After consideration of all factors pertaining to and influencing land values, the following is selected as the most fitting value indication for the subject parcel as though vacant. Accordingly, Subject Property 89,568 Sq. Ft. @ $5.00 Per Sq. Ft. _ $447,840 Indicated Market Value of Subject Land "As Is " $445,000 Via Sales Comparison, Say 24-985 Kirkham Appraisals Inc. Page 71 Value Summary The subject property physically consists of a 2.05+/- acres portion of larger parcel RPRCCPC045401. The subject is accessed near the tennis courts in Capell Park. The land is in a developing area with office, medical office, industrial, high density residential, and vacant land uses, near a new I-15 Interstate Interchange. This tract of land is zoned "R-4" Dense Residential by the City of Chubbuck. A highest and best use analysis concluded a residential use would yield the greatest net return to the land. The cost approach is only applicable buildings with minimal depreciation. In this case, this approach is not an appropriate valuation method. Vacant land is seldom leased in this locale, so rental data for just the land is almost non-existent. Hence, the income approach is also not applicable. The sales comparison approach firmly supports the worth of the land as though vacant. After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof firmly supports a market value for the subject real estate as of March 11, 2024. $445,000 Market Value "As Is" 24-985 Kirkham Appraisals Inc. Page 72 Exposure Time Terminology abounds in the real estate appraisal profession. Two related but different concepts that are often confused are Exposure Time and Marketing Time. USPAP specifically addresses the confusion. Definition Jl Explanation Marketing time and exposure time are both influenced by price. That is, a prudent buyer could be enticed to acquire the property in less time if the price were less. Hence, the time span cited below coincides with the value opinion(s) formed herein. USPAP Standard rule 1-2(c)(iv) requires an opinion of exposure time, not marketing time, when the purpose of the appraisal is to estimate market value. In the recent past, the volume of competitive properties offered for sale, sale prices, and vacancy rates have fluctuated little. Sale concessions have not been prevalent. In light thereof, an estimated exposure time for the subject is 0 to 12 months assuming competitive pricing and prudent marketing efforts. 24-985 Kirkham Appraisals Inc. Page 73 "The estimated length of time the property interest being Backward looking, ends on Exposure Time appraised would have been offered on the market prior to the the effective value date. (Statement 6) hypothetical consummation of a sale at market value on the Based on factual past events ' effective date of the appraisal". Marketing Time "An opinion of the amount of time it might take to sell a real or Forward looking, starts on the effective value date. A (Advisory Personal property interest at the concluded market value forecast based on Opinion 7) during the period immediately after the effective date of the expectancies of future appraisal". occurrences. Marketing time and exposure time are both influenced by price. That is, a prudent buyer could be enticed to acquire the property in less time if the price were less. Hence, the time span cited below coincides with the value opinion(s) formed herein. USPAP Standard rule 1-2(c)(iv) requires an opinion of exposure time, not marketing time, when the purpose of the appraisal is to estimate market value. In the recent past, the volume of competitive properties offered for sale, sale prices, and vacancy rates have fluctuated little. Sale concessions have not been prevalent. In light thereof, an estimated exposure time for the subject is 0 to 12 months assuming competitive pricing and prudent marketing efforts. 24-985 Kirkham Appraisals Inc. Page 73 Contingent and Limiting Conditions 1. By this notice, all persons, companies, or corporations using or relying on this report in any manner bind themselves to accept these Contingent and Limiting conditions, and all other contingent and limiting conditions contained elsewhere in this report. Do not use any portion of this report unless you fully accept all Contingent and Limiting conditions contained throughout this document. 2. The "Subject" or "Subject Property" refers to the real property that is the subject of this report. An Appraiser is defined as an individual person who is licensed to prepare real estate appraisal -related services in the State of Idaho and affixes his / her signature to this document. 3. Throughout these Contingent and Limiting Conditions, the singular term "Appraiser" also refers to the plural term "Appraisers". The terms "Appraiser" and "Appraisers" also refer jointly / collectively to "Kirkham Appraisals Inc.", its officers, employees, contractors, personnel, staff, shareholders, members, and affiliates. The masculine terms "he" or "his" also refer to the feminine term "she" or "her". 4. In these Contingent and Limiting Conditions, the "Parties" refers to all of the following collectively: (a) the Appraiser(s), (b) Kirkham Appraisals Inc., (c) the client, and (d) all intended users. 5. These Contingent and Limiting Conditions are an integral part of this report along with all certifications, definitions, descriptions, facts, statements, assumptions, disclosures, hypotheses, analyses, and opinions. 6. All contents of this report are prepared solely for the explicitly identified client and other explicitly identified intended users. The liability of the Appraiser is limited solely to the client. There is no accountability, obligation, or liability to any other third parry. Other intended users may read but not rely on this report. In no event, shall the Appraisers be liable for consequential, special, incidental or punitive loss, damages or expense (including without limitation, lost profits, opportunity costs, etc.) even if advised of their possible existence. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all contingent and limiting conditions, assumptions, and disclosures. Use of this report by third parties shall be solely at the risk of the third party. 7. This document communicates the results of an appraisal assignment. This communication is not an inspection, engineering, construction, legal, or architectural report. It is not an examination or survey of any kind. Expertise in these areas is not implied. The Appraiser is not responsible for any costs incurred to discover, or correct any deficiency in the property. 24-985 Kirkham Appraisals Inc. Page 74 Contingent and Limiting Conditions 8. As part of this appraisal, information was gathered and analyzed to form opinion(s) that pertain solely to one or more explicitly identified effective value dates. The effective value date is the only point in time that the value applies. Information about the subject property, neighborhood, comparables, or other topics discussed in this report was obtained from sensible sources. In accordance with the extent of research disclosed in the Scope of Work section, all information cited herein was examined for accuracy, is believed to be reliable, and is assumed reasonably accurate. However, no guaranties or warranties are made for this information. No liability or responsibility is assumed for any inaccuracy which is outside the control of the Appraiser, beyond the scope of work, or outside reasonable due diligence of the Appraiser. 9. Appraiser and Client agree the following mutual limitation of liability is agreeable in consideration of the fees to be charged and the nature of appraisal services provided under this Agreement. Appraiser and Client agree to the fullest extent permitted by applicable law, that the Appraiser's and its Personnel's maximum aggregate and joint liability to the other party for claims and causes of action relating to this Agreement for appraisals or other services under this agreement shall be limited to $25,000 or the total of all fees and costs charged by the Appraiser for services that are subject of the claim(s) or cause(s) of action. This limit of liability extends to all types of claims or causes of action, whether in breach of contract or tort, including without limitation claims / causes of action for negligence, professional negligence, or negligent misrepresentation on the part of either party or its Personnel, but excluding claims / causes of action of intentionally fraudulent conduct, criminal conduct, or intentionally caused injury. The Personnel of each parry are intended third party beneficiaries of this limitation of liability. The word "Personnel", as used in this paragraph, means the respective party's staff, employees, contractors, members, partners, affiliates, and shareholders. Appraiser and Client agree that they each were free to negotiate different terms than stated in this Agreement or contract with other parties. 10. Real estate values are affected by many changing factors. Therefore, any value opinion expressed herein is considered credible only on the effective value date. Every day that passes thereafter, the degree of credibility wanes as the subject changes physically, the economy changes, or market conditions change. The Appraiser reserves the right to amend these analyses and/or value opinion(s) contained within this appraisal report if erroneous, or more factual -information is subsequently discovered. No guarantee is made for the accuracy of estimates or opinions furnished by others, and relied upon in this report. 11. In the case of limited partnerships, syndication offerings, or stock offerings in the real estate, the client agrees that in case of lawsuit (brought by the lender, partner, or part owner in any form of ownership, tenant, or any other party), the client will hold Kirkham Appraisals Inc., its officers, contractors, employees and associate appraisers completely harmless. Acceptance of, and/or use of this report by the client, or any third party is prima facie evidence that the user understands and agrees to all these conditions. 24-985 Kirkham Appraisals Inc. Page 75 Contingent and Limiting Conditions 12. For appraisals of multiunit residential, only a portion of all dwellings was observed. A typical ratio of observed dwellings roughly approximates 10% of the total number of units, and this ratio declines as the number of dwellings grows. It is assumed the functionality, physical condition, construction quality, and interior finish of unseen units are like the functionality, physical condition, construction quality, and interior finish of observed units. If unobserved dwellings significantly differ from those that were viewed in functionality, physical condition, quality, or finish, the Appraiser reserves the right to amend theses analysis and/or value opinion(s). 13. If the appraised property consists of a physical portion of a larger parcel is subject to the following limitations. The value opinion for the property appraised pertains only to that portion defined as the subject property. This value opinion should not be construed as applying with equal validity to other complementary portions of the same parcel. The value opinion for the physical portion appraised + the value of all other complementary physical portions may or may not equal the value of the whole parcel. 14. Unless specifically stated otherwise herein, the Appraiser is unaware of any engineering study made to determine the bearing capacity of the subject land, or nearby lands. Improvements in the vicinity, if any, appear to be structurally sound. It is assumed soil and subsoil conditions are stable and free from features that cause supernormal costs to arise. It is also assumed existing soil conditions of the subject land have proper load bearing qualities to support the existing improvements, or proposed improvements appropriate for the site. No investigations for potential seismic hazards were made. This appraisal assumes there are no conditions of the site, subsoil, or structures, whether latent, patent, or concealed that would render the subject property less valuable. Unless specifically stated otherwise in this document, no earthquake compliance report, engineering report, flood zone analysis, hazardous substance determination, or analysis of these unfavorable attributes was made, or ordered in conjunction with this appraisal report. The client is strongly urged to retain experts in these fields, if so desired. 15. If this report involves an appraisal that values an interest, which is less than the whole fee simple estate, then the following disclosure applies. The value for any fractional interest appraised + the value of all other complementary fractional interests may or may not equal the value of the entire fee simple estate. 16. If this appraisal values the subject as though construction, repairs, alterations, remodeling, renovation, or rehabilitation will be completed in the future, then it is assumed such work will be completed in a timely fashion, using non -defective materials, and proper workmanship. All previously completed work is assumed completed in substantial conformance with plans, specifications, descriptions, or attachments made or referred to herein. It is also assumed all planned, in -progress, or recently completed construction complies with the zoning ordinance, and all applicable building codes. A prospective value opinion has an effective value date that is beyond or in the future relative to this report's preparation date. If this appraisal includes a prospective valuation, it is understood and agreed the Appraiser is not responsible for an unfavorable value effect caused by unforeseeable events that occur before completion of the project. 24-985 Kirkham Appraisals Inc. Page 76 Contingent and Limiting Conditions 17. This valuation may or may not include an observation of the appraised property by an Appraiser. The extent of any observation is disclosed in the Scope of Work section of this report. Any observation by an Appraiser is not a professional property inspection. Viewing of the subject was limited to components that were not concealed, clearly observable, and readily accessible without a ladder on the property observation date. As used herein, readily accessible means within the Appraiser's normal reach without the movement of any man made or natural object. Comments or descriptions about physical condition of the improvements are based solely on a superficial visual observation. These comments are intended to familiarize the reader with the property in a very general fashion. 18. The allocation of value between the subject's land and improvements, if any, represents our judgment only under the existing use of the property. A re-evaluation should be made if the improvements are removed, substantially altered, or the land is utilized for another purpose. 19. The Client and all intended users agree to all the following. (A) This appraisal does not serve as a warranty on the physical condition or operability of the property appraised. (B) All users of this report should take all necessary precautions before making any significant financial commitments to or for the subject. (C) Any estimate for repair or alternations is a non -warranted opinion of the Appraiser. 20. Electric, heating, cooling, plumbing, water supply, sewer or septic, mechanical equipment, and other property systems were not tested. No determination was made regarding the operability, capacity, or remaining physical life of any component in, on, or under the real estate appraised. All building components are assumed adequate and in good working order unless stated otherwise. Private water wells and private septic systems are assumed sufficient to comply with federal, state, or local health safety standards. No liability is assumed for the soundness of structural members since structural elements were not tested or studied to determine their structural integrity. The roof cover for all structures is assumed water tight unless otherwise noted. This document is not an inspection, engineering or architectural report. If the client has any concern regarding structural, mechanical, or protective components of the improvements, or the adequacy or quality of sewer, water or other utilities, the client should hire an expert in the appropriate discipline before relying upon this report. No warranties or guarantees of any kind are expressed or implied regarding the current or future physical condition or operability of any property component. 21. Any exhibits in the report are intended to assist the reader in visualizing the subject property and its surroundings. The drawings are not surveys unless specifically identified as such. No responsibility is assumed for cartographic accuracy. Drawings are not intended to be exact in size, scale, or detail. 22. Value opinions involve only real estate, and inconsequential personal property. Unless explicitly stated otherwise, value conclusions do not include personal property, unaffixed equipment, trade fixtures, business - good will, chattel, or franchise items of material worth. 24-985 Kirkham Appraisals Inc. Page 77 Contingent and Limiting Conditions 23. All information and comments concerning the location, market area, trends, construction quality, construction costs, value loss, physical condition, rents, or any other data for the subject represent estimates and opinions of the Appraiser. Expenses shown in the Income Approach, if used, are only estimates. They are based on past operating history, if available, and are stabilized as generally typical over a reasonable ownership period. 24. No liability is assumed for matters of legal nature that affect the value of the subject property. Unless a clear statement to the contrary is made in this report, value opinion(s) formed herein are predicated upon the following assumptions. (A) The real property is appraised as though, and assumed free from all value impairments including yet not limited to title defects, liens, encumbrances, title claims, boundary discrepancies, encroachments, adverse easements, environmental hazards, pest infestation, leases, and atypical physical deficiencies. (B) All real estate taxes and assessments, of any type, are assumed fully paid. (C) It is assumed ownership of the property appraised is lawful. (D) It is also assumed the subject property is operated under competent and prudent management. (E) The subject property was appraised as though, and assumed free of indebtedness. (F) The subject real estate is assumed fully compliant with all applicable federal, state, and local environmental regulations and laws. (G) The subject is assumed fully compliant with all applicable zoning ordinances, building codes, use regulations, and restrictions of all types. (H) All licenses, consents, permits, or other documentation required by any relevant legislative or governmental authority, private entity, or organization have been obtained, or can be easily be obtained or renewed for a nominal fee. 25. Conversion of the subject's income into a market value opinion is based upon typical financing terms that were readily available from a disinterested, third party lender on this report's effective date. Atypical financing terms and conditions do not influence market value, but may affect investment value. 26. This appraisal was prepared by Kirkham Appraisals Inc. and consists of trade secrets and commercial or financial information, which is privileged, confidential, and exempt from disclosure under 5 U.S.C. 522 (b) (4). 27. The Appraiser is not required to give testimony or produce documents because of having prepared this report unless arrangements are agreed to in advance. If the Appraiser is subpoenaed pursuant to court order or required to produce documents by judicial command, the client agrees to compensate the Appraiser for his appearance time, preparation time, travel time, and document preparation time at the regular hourly rate then in effect plus expenses and attorney fees. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. 24-985 Kirkham Appraisals Inc. Page 78 Contingent and Limiting Conditions 28. Effective January 26, 1992, the Americans with Disabilities Act (ADA) - a national law, affects all non- residential real estate or the portion of any property, which is non-residential. The Appraiser has not observed the subject property to determine whether the subject conforms to the requirements of the ADA. It is possible a compliance survey, together with a detailed analysis of ADA requirements, could reveal the subject is not fully compliant. If such a determination was made, the subject's value may or may not be adversely affected. Since the Appraiser has no direct evidence, or knowledge pertaining to the subject's compliance or lack of compliance, this appraisal does not consider possible noncompliance or its effect on the subject's value. 29. Kirkham Appraisals Inc. and the Appraiser have no expertise in the field of insect, termite, or pest infestation. We are not qualified to detect the presence of these or any other unfavorable infestation. The Appraiser has no knowledge of the existence of any infestation on, under, above, or within the subject real estate. No overt evidence of infestation is apparent to the untrained eye. However, we have not specifically inspected or tested the subject property to determine the presence of any infestation. No effort was made to dismantle or probe the structure. No effort was exerted to observe enclosed, encased, or otherwise concealed evidence of infestation. The presence of any infestation would likely diminish the property's value. All value opinions in this communication assume there is no infestation of any type affecting the subject real estate or the Appraiser is not responsible for any infestation or for any expertise required to discover any infestation. Our client is urged to retain an expert in this field, if desired. 30. All opinions are those of the signatory Appraiser based on the information in this report. No responsibility is assumed by the Appraiser for changes in market conditions, or for the inability of the client, or any other party to achieve their desired results based upon the appraised value. Some of the assumptions or projections made herein can vary depending upon evolving events. We realize some assumptions may never occur and unexpected events or circumstances may occur. Therefore, actual results achieved during the projection period may differ from those set forth in this report. Compensation for appraisal services is dependent solely on the delivery of this report, and no other event or occurrence 31. No warrantees are made by the Appraiser concerning the property's conformance with any applicable government code or property covenant including but not limited to all laws, ordinances, regulations, agreements, declarations, easements, condominium regulations, restrictions, either recorded or unrecorded. The client is urged to engage the services of a licensed attorney to confirm any legal issue affecting the property appraised. No liability or responsibility is assumed by the Appraiser to determine the cost of replacing or curing any supposedly defective physical component. 32. In the event of an alleged claim due to some defective physical component, the client must notify Kirkham Appraisals Inc. and allow its representatives and experts to examine and test the alleged defective component before any repairs or modifications are made. If any type of repair or modification is made without the knowledge of the Appraisers, the Appraiser is released from all liability, real or alleged. 24-985 Kirkham Appraisals Inc. Page 79 Contingent and Limiting Conditions 33. The client and all explicitly identified intended users agree to notify in writing Kirkham Appraisals Inc., within one year of this report's preparation date, of any claim relating to or arising from this report regardless of any statute of limitations. If Kirkham Appraisals Inc. does not receive this written notification within the year period defined in the paragraph, then the claimant releases the Appraiser from all claims arising from or related to this report. 34. The client and all explicitly identified intended users acknowledge that any claim relating to this report shall be settled in accordance with the commercial arbitration rules of the American Arbitration Association with the Parties each paying an equal share of all associated costs. 35. Any alleged claim must be filed in the Circuit Court for the County that encompasses most of or all of Pocatello, Idaho 83206 where the Appraiser's business office is located. If a court of law voids any portion of these Contingent and Limiting Conditions, then the remainder remains in full force and effect. The claimants(s) agree not to contest the venue set forth herein and to submit to, and not contest, the exercise of personal jurisdiction over them by the foregoing court. The claimant(s) waive all rights concerning the exercise of personal jurisdiction of them by the foregoing courts and all claims of or concerning forum non - conveniences in the foregoing forum. 36. Superseding all comments to the contrary regardless of the date, this report may not be transferred or assigned without the prior written consent of Kirkham Appraisals Inc., the copyright holder. 37. No part of this report shall be published or disseminated to the public by advertising media, public relations media, news media, sales media, electronic devices, or other media without the prior written consent of Kirkham Appraisals Inc.. This restriction applies particularly as to analyses, opinions, and conclusions; the identity of the Appraiser; and any reference to the Appraisal Institute or its MAI, SRPA, or SRA designations. Furthermore, no part of this report may be reproduced or incorporated into any information retrieval system without prior written permission from Kirkham Appraisals Inc., the copyright holder. 24-985 Kirkham Appraisals Inc. Page 80 Certification The appraiser signing this report make the following certifications to the best of his / her knowledge and belief. ➢ The statements of fact contained in this report are true and correct. ➢ Reported analyses, opinions, and conclusions are limited only by the assumptions and limiting conditions contained within this report, and are the appraiser's personal, impartial, and unbiased professional analyses, opinions, and conclusions. ➢ The appraiser has no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. ➢ The appraiser has no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. ➢ This engagement is not contingent upon developing or reporting predetermined results. ➢ Compensation paid to the appraiser is not contingent upon the development or reporting of a predetermined value, or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal. ➢ Reported analyses, opinions, and conclusions were developed, and this report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) ➢ A statement regarding observation of the subject property by the appraiser is listed below. The appraiser is not a professional property inspector. Furthermore, the appraiser has no formal training in the use of tools or instruments as part of a professional property inspection. Observations by the appraiser, if any, was limited to just those physical features and attributes that are not hidden or obscure in any fashion by any object or weather condition. The appraiser did not used any tools or instruments, beyond those typically used by appraisers to probe, study, investigate, detect, or discover any physical feature or attribute that was not clearly visible on the date the property was observed. ➢ No one provided significant real property appraisal assistance to the appraiser(s) signing this certification. ➢ The appraisers have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report during the three-year period immediately preceding acceptance of this assignment. 24-985 Kirkham Appraisals Inc. Page 81 Certification ➢ Use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. I have completed all continuing education requirements for designated members of the Appraisal Institute. ➢ After careful consideration of all factors pertaining to and influencing value, the data, and analysis thereof firmly supports the following final value opinion(s) for the subject property as of March 11, 2024: $445,000 Market Value "As Is" Brian Kirkham, MAI Certified General Appraiser Idaho License CGA -3486 License Expiration Date: 5/9/2024 24-985 Kirkham Appraisals Inc. Page 82 It Addenda... Digital Images Our world is rapidly shifting to a global economy in which technology and e-commerce play major roles. Digitized signatures and digital photographs are key elements of this shift. This appraisal may contain digital photographs, which are true and accurate representations. Brightness and/or contrast of these images may have been adjusted to enhance visibility when lighting conditions were too light or too dark. However, the content of these images was not altered or augmented in any way. Digital signatures may be affixed to this document. Statement 8 of USPAP recognizes and addresses the proper use of digitized signatures. In this document, a digital signature is a reproduction of the appraiser's actual signature. Software used for the affixation has a password security feature, which controls its usage. 24-985 Kirkham Appraisals Inc. Page 83 Technical Qualifications Technical Qualifications EUibP FCKltharn. MAi nitkhaw Appialgnls Itfc, 2353 Duskview Court 11 h I PPcpielln. Id 13201 Edutatioo„ B.A. Degree, Applied Ee000mies Idaho State Uni%mrsity, 2010 IDAHO {'ERBF' D GENERAL APPR.U[L ER CGA -3486 service Edncatwn Charam for Sauthem Idaho Chapter ofthe Appraisal Instigate {201S-2021 5p ecialized Background: - Seminars and courses spomswed by the Appraisal Institute, American Society ofFarm Managers and l2ralAppraisers and American Iostitate of Real Estate Appraisers, and Institute nfReal €.ate Appraisal Studier ivcludmg- Appraisal instmir -Quantitative Analysis Appraisal lushftffe-AAcamced Concept and Case Studies Appraisal lusts ee-Advanced Market Analysis and Highest and Best Use Appraisal Imstitute-Ach-anced lucamre Capitalization Appraisal in-diftee-General Appraiser Imcame CapitalimtionI 'ar ppr ma.l lmstitute-General A.ppa amen Ia€ane Capitalizatoo El Appraisal ludiftee-GeneralAppraiser Market Amal}tis and Highest & Best Use Appraisal in-diftee-General Sales Comparison Approach Appraisal Institute-Gemeral Cost Approach and Site Analysis Appraisal Iugbnjre-GeneralReport Wrivng Appraisal lmsbftee-General Appimser Maiikat Analysis and firgkest & Best Use Appraisal Inslinire -Statistics Appraisal Iustmrte-Ashanced Resuieamal Applicatioms anti Cast Studies USPAP USPAP Update Institute of ReadEsWe Appraisal Studies -Fundamentals nfReal E tate Appraisals Iastmite of Real Estate Appraisal Studies-- Residential Appraisal Techniques I Institute of Real Estate Appraisal Stndm— Highest and Best Use Numerous other related caurses seminars and personal Eto Fn iaent Domain and Conde=tion Appraisal Experience, - Nis e n years of appraisal expemace and appraisal rel IHW functions I am a designated member of the Appramal Institute. Area and Type of Appraisals:-Feiformed appraisals and consulting in Idaho with expenence m Southern and Southeastern Idaho on res' ria t and oxtunerci23 pmperues. nhni or 11 c potonal opu ProFae$I"IManna" hrrr naporrt ce rN Garernlrg ,r gemmas o-.s� ����..«�,w. wya«r• a. rs,nv..,. . mi�o-i a,i as � aN n.wal lbr6hrl kW= 4•�� �+Nil CEFMFTim GENLF"L OLN*WI klrr etolJl KEITI I RIPMAM 1313 CUSS VIEW GT up1•ATTAP? 1n 232p1 gzabn S 03A.1466a" CA.1466 nS�L�P3sm lrx,1cn hynh r+niaw E•pR'F 24-985 Kirkham Appraisals Inc. Page 84 Engagement Letter Appraisal Assignment �17Ilk '■��1�1 .ppraisals P.O. Box 2503 Pocateto, Idaho 832M (2M 233-4132 GAT€ OF AGREEM EM: 02/26/2624 PARTIES TO ACRE€MEI-M. tient: landQuest Client Representative: Brandon Ratrift Address- NA Crty. State, Zip: NA Phone: �248) 221-4962 E-mail: randquest&hatmail.corn Appraiser Name: Brian Kirkharn, MAI Company? Kirkham Appraisals, Inc. Address: PO Bax 2503 City, State, Zip. Pocatello, IU 83246 Phone: 208-233-4132 Emal=kirl€namapt~raisal rnair_eom:jAiridiamappraisal@gmail_com 24-985 Kirkham Appraisals Inc. Page 85 Client hereby engages Appraiser to complete appra i5al assignments as follows: PROPERTY IDENTIFICATION Appraisa 11: A 4.76+f- AC Portion of RPRCCPC04ra401 Appraisal 2-- 2.48 +/- AC Tract containing RPRCCPCO24406 & RPRCCPCO'' 4469 PROPERTY TYPE Commercial INTEREST VALUED Fee Simple INTENDED USERS LandQuest Note: No other risers are intended byAppruiser_ The oppraisershall consider the ipterrded risers when determining the level of detoiO to be provided in the Pppraisol Report. 24-985 Kirkham Appraisals Inc. Page 86 INTENDED USE Decisions by ownership for potential land swa p TYPE OF VALUE Market value as defined by the appraisal requirements pursuantto FIRREA- DATE OF VALUE Cu rrent HYPOTHETICAL CONDITIONS, EXTFLAORDINARY ASSUMPTIONS o d_ APPLICABLE REQUIREMENTS OTHER THAN THE UNIFORM STANDARDS OF PRO FESSICIMAL APP RAJSAL PRACTICE JUSPAP) The Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute ANTICIPATED SCOPE OF WORT{ Site visit Observation of the property. Valuation approaches Sales Comparison Approach Note: Appraiser shall use all approaches nei-essaryto develop a credible opinion of value_ APPRAISAL REPORT Form or format; Narrative 24-985 Kirkham Appraisals Inc. Page 87 CONTACT FOR PROPERTY ACCESS, IF APPLICABLE NA D E LIVERY DATE Four weeks from the date of engagement DELIVERY METHOD E-mail: landquest@hotmail.com NUMBER OF COPIES 1 PDF version PAYMENT The fee of 53,500 is to be collected prior tip completion of the report and can be mailed by the client tip the address provided above_ If the Appraiser is subpoenaed pursuant to court order or required to produce documents by judicial commandr the client agrees to compensate the Appraisers for their appearance time, preparation time, travel time, and document preparation time at 5340 hourly rate then in effect plus expenses and ammeyfees. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal pro€eedingr it is assu med the Appraiser wil I be given reason bl a advanced notice, a nd reasonable additional tim a for €ou rt preparation. CONFIDEMTIALFFY Appraiser shall not provide a copy of the written Appraisa I Report to or disclose the results of the appraisal prepared in a€€orda n€e with this Agreement with, a ny party other than Client, unless Client a uthor¢esr except as stipulated in the Confidentia lity Section of the ETH ICS RU LE of the Uniform Sta ndards of Professional Appraisal Practice (USPAP)- CHANGES TO AGREEMENT Any changes to the assignment as outlined in this Agreement shall necessitate a new Agreement. The identity of the client, intended users, or intended use; the date of value; type of value; or property appraised €annot be changed without a new Agreement 24-985 Kirkham Appraisals Inc. Page 88 CANCELLATION Client may cancel this Agreement at anytime prior to the delivery of the report upon written notification to the company. Client shall pay Appraiser for work completed on assignment prior to receipt of written cancellation notice, unless otherwise agreed upon by Appraiser and Client in writing_ NO THIRD -PARTY BENEFICIARIES Nothing in this Agreement sha II create a contractua I rel ationship between the A ppraiser or the Cl lent and any third party, or any cause of action in favor of any third party_ This Agreement shall not be construed to render any person or entity a th ird-pa rtyr beneficiary of this Agreement, in€I uding, but not limited to, a ny th ird parties identified herein. USE OF EMPLOYEES OR INDEPENDENT CONTRACTORS Appraiser may use employees or independent contractors at Appraiser's discretion to complete the assignment, unless otherwise agreed by the parties. Notwithstanding, Appraiser shall sign the written Appraisal Report and take full responsibility for the services provided as a result of this agreement. TESTIMONY AT COURT OR OTHER PROCEEDINGS Unless otherwise stated in this Agreement, Client agrees that Analyst's assignment pursuant to this Agreement shall not include the Analyst's participation in or preparation for, whether voluntarily or pursuantio subpoena, any oral or written discovery, swam testimony in a judicial, arbitration or administrative proceeding, or attendance at a ny jud icial, arbitration, or administrative proceeding relating to this assignment_ APPRAISER INDEPENDENCE Appraiser cannot agree to provide a value opinion that is contingent on a predetermined amount. Appraiser €a nnat guarantee the outcome of the assignment in adva nce. Appra icer cannot ensure that the opin ion of value developed as a resu It of this Assignment wil I sense to fall irate a ny specific objective t y Client or others or advance any particular cause. Appraiser's opinion of value will be developed competently and with independence, impartia I ity, and objectivity. EXPIRATION OF AGREEMENT This Agreement is va lid only if s igned by both the Appra iser and Client within 3 days of the Date of Agreement specified. GOVERNING LAW & JURISDICTION The interpretation and enforcement of this Agreement shal I be governed by the laws of the state in which the Analysts princi pa I place of business is located, exclusive of any choice of law rules - 24 -985 Kirkham Appraisals Inc. Page 89 9y Apa«is.ar: {540atul e} 9rfan_I4lrkhan. . (Printed na liq! 0212612024 {date] By Glantz (Signaturs� IPrItAed narne) L, khz� /— (date) 24-985 Kirkham Appraisals Inc. Page 90 Copyright Protection C Copyright 2024 Kirkham Appraisals Inc. Pocatello, Idaho 83206 All Rights Reserved. No part of this document may be reproduced, nor may any portion be incorporated into any information retrieval system without written permission from Kirkham Appraisals Inc., the copyright holder. The descriptions, analyses, and conclusions stated herein are intended for the exclusive use of our client, LandQuest, and other explicitly identified intended users, if any. This report should only be used for the intended use stated herein. Kirkham Appraisals Inc. retains all rights, title, and interests in all trademarks, trade names, trade secrets, data, conclusions, opinions, valuations, and other information included in, arising out of, or in any way related to this appraisal. No person or entity shall be entitled to break down, strip out, mine, or disseminate any component or portion of this report, including, but not limited to any valuations, opinions, data compilations, or conclusions. This report and all its contents are a culmination of intellectual and professional experiences, education, personal investigations, and know-how, which shall at all times remain the property of Kirkham Appraisals Inc., its sole owner. End of Report 24-985 Kirkham Appraisals Inc. Page 91 ATTACHMENT #3: IDAHO CODE TITLE 50, CHAPTER 14 TITLE 50 MUNICIPAL CORPORATIONS CHAPTER 14 CONVEYANCE OF PROPERTY 50-1401. REAL PROPERTY OWNED BY CITIES -- METHOD OF CONVEYANCE OR EX- CHANGE. It is the intent of this chapter that cities of the state of Idaho shall have general authority to manage real property owned by the city in ways which the judgment of the city council of each city deems to be in the public interest. The city council shall have the power to sell, exchange or convey, by good and sufficient deed or other appropriate instrument in writ- ing, any real property owned by the city which is underutilized or which is not used for public purposes. [50-1401, added 1967, ch. 429, sec. 244, p. 1249; am. 2001, ch. 331, sec. 1, p. 1161.] 50-1402. DECLARATION OF VALUE OF PROPERTY. Whenever the city council proposes to convey, exchange or offer for sale any real property, it shall first declare the value or minimum price, if any, it intends to receive as a result of such conveyance or exchange. The city council may contract for or provide that the property be appraised under such terms and conditions as may be deemed appropriate by the city council. The declaration, either in the form of a minimum dollar value, or an explanation of an intended exchange or conveyance for other than monetary consideration shall be made on the record at a public meeting of the council. The city council may also declare that the subject property will be offeredfor sale without establishing a minimum price. Following a declaration of intent to sell or exchange real property, the clerk of the city shall publish a summary of the action taken by the city council in the official newspaper of the city and provide notice of a public hearing before the city council. Notice of the public hearing concerning the proposed exchange or conveyance shall be published in the official newspaper of the city at least fourteen (14) days prior to the date of the hearing. [50-1402, added 1967, ch. 429, sec. 245, p. 1249; am. 2001, ch. 331, sec. 2, p. 1162.] 50-1403. DISPOSITION AFTER HEARING. After a public hearing has been conducted, the city council may proceed to exchange, convey or offer for sale the real property in question, subject to the restrictions of section 50-1401, Idaho Code. The city council shall be governed by the following provisions: (1) When the property is offered for sale, the property shall be sold at a public auction to the highest bidder and no bids shall be accepted for less than the minimum declared value previously recorded on the record at a public meeting of the council, provided however, if no bids are received, the city council shall have the authority to sell such property as it deems in the best interest of the city. (2) When it is determined by the city council to be in the city's best interest that the property be offered for exchange, the council may do all things necessary to exchange any property owned by the city for real property of equal value pursuant to terms which shall be a matter of public record. 2 (3) When property is purchased, donated or otherwise conveyed to a city and the city has previously used federal funding to acquire the property, with funds specifically designated for the purpose of assisting low- to mod- erate -income families with decent, safe, affordable housing opportunities, the property may be sold, donated or otherwise conveyed directly to a low- to moderate -income family, so long as the sale or conveyance is consistent with the applicable federal regulations under which the property was obtained initially. In such instances, the city council shall pass an ordinance stating: (a) That the property was acquired, in whole, with federal funds; (b) That the property is to be sold or otherwise conveyed to a low- to moderate -income family; (c) That the sale or conveyance is consistent with all applicable fed- eral, state or local statutes, laws, regulations and policies; and (d) That the property may be offered for sale, donation or otherwise conveyed immediately upon the passing of the ordinance. (4) When it is determined by the city council to be in the city's best interest that a transfer or conveyance be made, the city council may, by or- dinance duly enacted, authorize the transfer or conveyance of any real prop- erty owned by such city to any tax supported governmental unit, with or with- out consideration. (5) When it is determined by the city council to be in the city's best interest, the city may transfer property to a trustee for security purposes, or for purposes of accommodating a transaction, or for funding of construc- tion of capital facilities on city owned property. [50-1403, added 2001, ch. 331, sec. 4, p. 1162.] 50-1404. TERMS OF SALE. Real property may be sold for cash or on con- tract for a period not exceeding ten (10) years, with a rate of interest on all deferred payments as determined by the city council. The title to all property sold on contract shall be retained in the name of the city until full payment has been made by the purchaser. Any property sold by the city council under the provisions of this section either for cash or on contract, shall be assessed by the county assessor in the same manner and upon the same basis of valuation as though the purchaser held a record title to the property so sold. The city council shall have authority to cancel any contract of sale pursuant to law, and retain all payments paid thereon, if the purchaser shall fail to comply with any of the terms of the contract. The city council may, by agreement with the purchaser, modify or extend any of the terms of any con- tract of sale, but the total period shall not exceed ten (10) years. [50-1404, added 2001, ch. 331, sec. 5, p. 1163.] 50-1405. CONVEYANCE -- DISPOSITION OF PROCEEDS. The proceeds received from the sale or exchange of property shall be utilized in a manner consis- tent with provisions of law regarding revenues received by the city. [50-1405, added 2001, ch. 331, sec. 6, p. 1163. ] 50-1406. DISPOSAL OF LAND ACQUIRED BY FORECLOSURE -- EXCESS PRO- CEEDS. Should real property be acquired as the result of a foreclosure of any improvement lien, or where a deed has been made and executed by the owner to the city in satisfaction of an improvement lien, and thereafter bring more 3 than is assessed against the same, together with costs and expenses, then the proceeds shall be paid to the owner if his address is known, otherwise, to be placed in the improvement fund for the benefit of which the property was impressed with the lien. [50-1406, added 2001, ch. 331, sec. 7, p. 1163.] 50-1407. LEASES. The mayor and council may, by resolution, authorize the lease of any real or personal property not otherwise needed for city pur- poses, upon such terms as the city council determines may be just and equi- table. [50-1407, added 2001, ch. 331, sec. 8, p. 1164.] 50-1408. DISPOSAL OF LAND ACQUIRED BY FORECLOSURE -- EXCESS PRO- CEEDS. Should the property acquired as the result of a foreclosure of any improvement lien, or where a deed has been made and executed by the owner to the city in consideration of such improvement lien, bring more than is assessed against the same together with costs and expenses, then such excess shall be paid to the owner if his address is known, otherwise, to be placed in the improvement fund for the benefit of which such property was impressed with such lien. [50-1408, added 1967, ch. 429, sec. 251, p. 1249.1 50-1409. LEASES. The mayor and council may, by resolution, authorize the lease of any property not needed for city purposes, upon such terms as may be just and equitable. The provisions of sections 50-1401 through 50-1409 shall not apply to the vacation or discontinuance of streets, highways, avenues, alleys or lanes annulled, vacated or discontinued. Provided, that the council of a city, upon a vote of one half (1/2) plus one (1) of the members of the full council, may set apart portions of the public parks, playgrounds or other grounds to be used from time to time for athletic contests, golf links, agricultural exhibits, ball parks, fairs, rodeos, swimming pools and other amusements, and for military units of the state of Idaho or the United States, and may, upon a vote of one half (1/2) plus one (1) of the members of the full council, make and enter into proper contracts with organizations and associations necessary and proper to carry out the purposes of this provision. Provided, that a city shall not be liable for any damage by reason of any accident occurring on the parks and lands set apart for such purposes, except for gross negligence on the part of the city or its officers or agents, and provided further, that an entrance or other fee may be charged sufficient to pay the expense of maintaining and operating the ground. [50-1409, added 1967, ch. 429, sec. 252, p. 1249.] Wednesday, October 30, 2024 Joey Bowers, Clerk City of Chubbuck Via emailjbowers@cityofchubbuck.us Re: November 6th Public Hearing Joey, Please accept this document as written testimony offered by Rodney Burch, who resides at 5402 Stuart Ave, Chubbuck, Idaho. I will not be able to attend the public hearing but ask that this written testimony be read aloud during the meeting, to allow all who attend to hear the testimony. Mytestimony is intended to address the following 4 items: 1) Improper notice of public hearing 2) Inaccuracies in previous staff supplied materials on this topic 3) Concern over comparable property uses 4) Deficiency in property appraisal, both process and results Item #1 City resolution 2021-06 (as referred to in the public notice) requires signs to be posted on the subject property including the type of action to be considered, contact information, time / date and location of the hearing. My personal observation of both sites indicated no signage has been posted (phots available if needed). As such, the hearing does not meet standards for public hearing notice. Item #2 Staff report dated October 8th and provided to council at October 16th council meeting represents the "city does not have any plans for this land.....". This statement is inaccurate and misleading. The city council has previously adopted a parks master plan which includes development of this site for public purpose. The proposed plan includes development of the city owned parcel immediately east of the subject parcel, which if included would reduce future city maintenance of non -landscaped areas. The staff report indicates this adjacent property "will still require maintenance, it will not be as time consuming or critical since it is not immediate adjacent to established residents not is it located along a busy arterial street". This statement is also factually inaccurate. Similar to the property being considered for exchange, the referenced property fronts New Day Parkway and Whitaker Road, both being major arterials. It also adjoins the same residential neighborhood. Item #3 There is no realistic comparison of the uses between the two parcels being considered for exchange. The property along New Day Parkway has been master planned to serve the community in a purpose that was identified through resident surveys (parks master plan and Strategic Plan). The proposed use of the property behind Diamond Court Apartments, adjacent to Capell Park is being proposed as a hard surface parking lot and an area to drop off Christmas trees". I ask you to please consider the existing plans, which are based on public input before you sacrifice that use for a gravel parking lot. Item #4 The process of having the developer obtain appraisals falls short of basic due diligence by the city. At a minimum, the City should obtain independent appraisal to avoid any potential conflict of interest. The final and most critical concern is related to the results of the appraisals. There is no realistic way that commercially zoned property located adjacent to New Day Parkway has was the same value as a property which has no roadway frontage, is located 114 of a mile from the nearest major roadway and has zero potential for development. I seek council consideration in declining the proposed land exchange. Th you, Rodney Burch