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Tigard Water Surplus Property Appraisal REAL ESTATE SERVICES GROUP, Matthew Larrabee, M.Arch., MAI TIGARD WATER SURPLUS PROPERTY 10310 SW CANTERBURY TIGARD, OREGON 97224 YIt .r REAL ESTATE APPRAISAL REPORT PREPARED FOR Jennifer De Gregorio _ Jordan Schrader Ramis PC Two Centerpointe Drive, 61h Floor Lake Oswego, Oregon 97035 PREPARED BY Matthew Larrabee, M.Arch., MAI Real Estate Services Group, Inc. 922 NW Joy Avenue Portland, Oregon 97229 Email: matthew@resg.us EFFECTIVE DATE OF VALUE September 22, 2007 DATE OF REPORT September 24, 2007 RESG File No. 07123 GROUP, MATTHEW LARRABEE, M.ARCH.,MAI Certified General Appraiser Oregon Cert.#C000543 September 24,2007 Jennifer De Gregorio Jordan Schrader Ramis PC Two Centerpointe Drive, 6th Floor Lake Oswego, Oregon 97035 Subject: Appraisal of Tigard Water surplus property at 10310 SW Canterbury,Tigard, Oregon 97224 Dear Ms. De Gregorio: I am pleased to present you with this appraisal of the Tigard Water surplus property at 10310 SW ` Canterbury in Tigard. The subject has been analyzed and valued according to its economic highest and best use,within the limitations set by zoning and with respect to the lease of the historical John Tigard House and the proposed conservation easement on that portion of the property. The required tower setback and the tree ordinance are also considered, and thus this report reflects a full analysis of the subject's developability and market value. The parcel boundaries of the proposed partition of the subject appears to be problematic. Tigard's ` municipal code requires that the communications tower be set back from any property boundary by a distance equal to its height. The proposed boundary is too close according to this standard. For additional information,refer to the Site Analysis. In the course of this appraisal assignment, I have completed an on-site exterior viewing of the subject property, and have analyzed the characteristics of the subject and its market area. This appraisal has included the research and reporting of market data relevant to the valuation of the subject. The subject property has been valued as though it would be sold on an all-cash or equivalent new mortgage financing basis. This appraisal complies with the current version of the Uniform Standards of Professional Appraisal Practice(USPAP)and the Code of Ethics of the Appraisal Institute. Please refer to the Executive Summary for value opinion conclusions and other information. Feel free to contact me for any additional information or clarification needed. Thank you for the opportunity to be of service. Respectfully submitted, //11 Z_ Ma hew Larrabee,M.Arch.,MAI Certified General Appraiser Oregon State Certification#C000543 922 NW Joy Avenue, Portland, Oregon 97229 • Phone: 503.799.3374 • Fax: 503.641.8591 • Email: matthew@resg.us TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI TABLE OF CONTENTS ExecutiveSummary............................................................................................................................ 1 GENERALDATA......................................................................................................................2 Scopeof Work................................................................................................................................3 Client & Intended User...................................................................................................................3 IntendedUse of the Appraisal........................................................................................................4 _ Property Rights Appraised..............................................................................................................4 Typeof Value.................................................................................................................................4 ExposurePeriod..............................................................................................................................4 _ Ownership &Recent Sales History................................................................................................4 RegionalLocation Map.......................................................................................................................5 RegionalMarket Analysis...................................................................................................................6 NeighborhoodMap............................................................................................................................. 8 NeighborhoodDescription.................................................................................................................. 9 DESCRIPTION........................................................................................................................... 10 AerialPhotograph............................................................................................................................. 11 SubjectPhotographs.......................................................................................................................... 13 SiteAnalysis ..................................................................................................................................... 18 PlatMap............................................................................................................................... 18 SurplusProperty Map.......................................................................................................... 19 TopographyMap..................................................................................................................20 SanitarySewer Map.............................................................................................................21 _ Zoning Map..........................................................................................................................23 TowerSetback Map.............................................................................................................28 Highestand Best Use........................................................................................................................29 _ VALUATION ...............................................................................................................................31 TheAppraisal Process.......................................................................................................................32 Sales Comparison Approach............................................................................................................. 32 ComparableSales Photographs................................................................................................ 33 ComparableSales Map.............................................................................................................35 Analysis of Market Data—Residential Land Sales..................................................................37 Certification......................................................................................................................................40 Ordinary Assumptions and Limiting Conditions..............................................................................41 ADDENDA.....................................................................................................................................43 Qualifications of the Appraiser Copy of State Certification Definitions Consultant's Tree Count _ Title Information John Tigard House Lease &Legal Description Intergovernmental Water Board Resolution 9-1-1 Communications Tower Engineering Drawing REAL ESTATE SERVICES GROUP,INC. TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI EXECUTIVE SUMMARY Effective Date: September 22, 2007 — Date of Inspection: June 19 & September 22, 2007 Date of Report: September 24, 2007 Property Rights Appraised: Fee Simple IDENTIFICATION OF SUBJECT PROPERTY Name/Location: Tigard Water Surplus Property 10310 SW Canterbury Tigard, Oregon 97224 Map & Tax Lot: An undivided portion of 2S 1 W Section 11BC Tax lot 2600 Owner of Record: Tigard Water District Site Size: Subject portion of tax lot is an estimated 2.75 acres. Improvements: Historical John Tigard House "- Zoning: R-3.5 Residential by the City of Tigard; _ HD Historic District overlay on entire parcel. Highest & Best Use: Residential development and retention of the existing historical house. MARKET VALUE CONCLUSION Market Value as of 9/22/2007 — Market Value in Fee Simple: $605,000 Assumptions/Hypotheticals—The subject is part of an undivided tax lot and is analyzed as if it were a freestanding parcel. At the instruction of the client, the property is being analyzed under the assumption that the proposed conservation easement that would restrict the lot under the John Tigard house to the use and maintenance of the historical house will be recorded prior to transfer of title. The analysis also incorporates my estimates as to the number of lots that could be developed on the subject in accordance with the zoning code, and extraordinary and offsite development costs. If these assumptions are not the case,the value opinion could be different. REAL ESTATE SERVICES GROUP,INC. 1 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI GENERAL DATA REAL ESTATE SERVICES GROUP,INC. 2 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI Scope of Work ■ Appraisal and Appraisal Report comply and are consistent with: ✓ Current edition of USPAP (Uniform Standards of Professional Appraisal Practice) ✓ The Code of Ethics of the Appraisal Institute ■ Complete Appraisal/Summary Report Format ■ Inspection of Subject ✓ The extent of inspection of the subject property is noted in the Certification. ✓ "Inspection" is a term of art and does not imply that a building inspection was _ performed. It is simply a viewing of the property. Appraiser takes no responsibility as to the serviceability or defects, if any, of the improvements, soils conditions, or of any other detrimental property conditions. ` ■ Review of materials provided by the property owner and public records ■ Research, reporting and analysis of market data ✓ Market data verified through public sources, Metroscan, Multiple Listing Service, Costar Comps, or other published materials, or with other sources considered reliable, or with direct participants in the transaction where such cooperation was made available and deemed necessary. ■ Personal property, business enterprise value, and other intangible values, if any, are excluded from the scope of work. ■ The value of any timber, orchards, crops, nursery stock, unique and marketable specimen plants is excluded. ■ The scope excludes consideration of potential or actual claims under Measure 37. ■ For the purposes of this appraisal, delinquent taxes, local improvement district bonds, SDCs, TIFs, etc. (if any) are considered as liens on the property, and are excluded from the analysis of market value. Extraordinary mitigation measures necessary for development are considered to the extent they increase the cost of development for each lot relative to comparable development properties. ■ The sales comparison approach is utilized to arrive at an opinion of value. Since the John Tigard House and its portion of the property are subject to a perpetual lease with a nominal rent of one dollar per year, the dwelling and its site do not contribute value. The balance of the site consists of vacant land and thus the cost approach is not applicable. ■ The income approach is not applicable in this case since typical buyers of properties of this size and type in this market would not analyze their purchase decision based on potential rental income of the existing property. Client& Intended User The client and intended user is Jordan Schrader Ramis PC. Tigard Water District and the City of Tigard are additional intended users. There are no other intended users. Ownership of the Documents and Limits of Liability The appraiser's and the corporation's responsibilities are limited solely to the client and solely in the context of the intended use noted below. Liability is limited to the amount of appraisal REAL ESTATE SERVICES GROUP,INC. 3 L TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI fees actually collected. This document is an instrument of service, and as such remains the — property of the service provider. Possession of this document does not convey ownership of the contents, and copying, distribution (other than to the property owner or other entities as required by law) or conversion into electronic form in whole or in part is prohibited without prior, express written permission of the author. The author reserves the right to charge fees for any additional work expended. Copyright Matthew Larrabee—all rights reserved. Intended Use of the Appraisal To assist the client in the negotiation of a sale of the subject between two public entities. The use of this report is limited solely to the client and for the intended use specified above. All other uses are expressly prohibited. Reliance on this report by anyone other than the client or intended user noted here, or for a purpose not set forth above is prohibited. Use of this appraisal for financing is prohibited. Property Rights Appraised Fee Simple Estate. Type of Value To develop and report an opinion of Market Value. Exposure Period Based upon the market sales analyzed in this report, the location, type and size of the subject property, and the current market conditions for such properties in this market area, a reasonable exposure time for the subject property would be approximately six months, if it _ were to be listed at a reasonable price with a knowledgeable and competent broker. In this market, developable infill parcels of land such as the subject are becoming increasingly scarce and are sought after by builders, investors and developers alike. Ownership & Recent Sales History Public records indicate that the subject is owned by the Tigard Water District. No sale of the subject property is known to me to have occurred during the last three years. To my _ knowledge, the property is not currently listed for sale, and there are no current offers or options known to me. REAL ESTATE SERVICES GROUP, INC. 4 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI REGIONAL LOCATION MAP .............. .. 502 C r i L IU ta}' I ` Battfe Ground ScappooS I C 501_ - Meadow Gladeo 4t 'r7 4F brush ., ,Prairie Imbn Greek oFeBda.-- �� }4 H t N G T O N awie b d �1 L Hazel Nalnut &1Jrchards 500 1GrovexP C L A K banC0l�/e l h St Banks ( i`30 x . 14 worth t North Plains e ti tt I,20 ._ Camas 1 30 b�ashi+cagpt 14'e_ _ LGk* A 47 - ' -- *. �Gedpr`g2tll �,30 B cz~ Fair ex Lake ' i _ ry '. 0 N: � . FOY$5't 1 -,. 444111 i17�.'..L k �GrpveCorne6us �thllsb0ro z, Vtyeh SEi _.�Mage } W #{ I`N G' T O West $SE 11311L3C1 5t E D�visio _ BtTt A10ba $ 99E Flo r } L1alty Lie$1fPltpft t IIIS Cxeek 317 firysf 3s O Ft t SF'r� L ;f -�'`,d' . .�, -�Metz� ,�• �.. . t z p Iwau le, w s Oak Grgv Nappy Valley Boring; Gv 3 rd a > t + -- CI a Ck a ac Sunnyside 33 Al 4 4 }ting it- e USwegO 319 4 d 224 gs Lodge Sherwood 'rv' Lii r% egon City F ',,-Greek } ' Rediand� h Valley Rd . X51 240 g9w.........: .P Newberg lsonvifle L A C K M A S er k p Beav Cree Est Y' A M_'H I L Dundee _'.:. f �) Lafayette s9 a , r S Upper Hghl .99E'a1' bi 219 _- tji.P Dayton..-,L �s St.Paul pr�ulino I 1701 b- i i ° ta{ A f 1 G rd Co n ht 2003 Microsoft Corp.,andfor its su liers.All hts r 4 REAL ESTATE SERVICES GROUP, INC. 5 L TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI REGIONAL MARKET ANALYSIS The Portland Metropolitan Area The PortlandNancouver/Beaverton PMSA is defined by the U.S. Census as these seven counties: Clackamas, Columbia, Multnomah, Washington, Yamhill Counties in Oregon, and _ Clark and Skamania Counties in the State of Washington. The city of Portland, located in Multnomah County, is the geographical,political and cultural center of the PMSA. Population According to the 2000 Census, the Portland PMSA was the 23rd largest urban area in the United States with a population of 1,927,881. The 2005 population estimate for the Portland PMSA is 2,082,240, an increase of 154,359, or 8.0% since the 2000 Census. The July 1, 2006 population Nonfarm Payroll Employment for the State of Oregon is 3,690,160, which (not seasonally adjusted) represents a 7.9% increase from the 2000 Census 200 March 2006 population of 3,421,399. Total 1.022,700 1,001,800 Construction 63,400 60,000 The Portland PMSA (otherwise referred to in this Manufacturing 127,100 125,100 report as the Portland metropolitan area), comprises Trade,Trans.,&Utilities 203,000 198,400 the majority of the population in the state of Oregon. Information 24,300 23,700 Between 1990 and 2000, population in the State of Financial Activities 70,200 69,700 Professional&Bus_Svc. 134,000 131,200 Oregon increased by 20.3%, while the Portland Educ.&Health Services 127,000 124,700 PMSA population increased by 26.6%. Leisure&Hospitality 93,000 90,900 Approximately 70% of the state's population Government 143,400 141,600 increase during those ten years occurred in the High Tech• 51,000 50,900 Portland PMSA. "(manufacturing and nonmanufacturing) Employment After the decline in the high tech industry that started in 2000, the local unemployment rate increased substantially. From a low of under 4% during the year 2000, unemployment reached a peak of that briefly exceeded 9% in the Portland PMSA during early 2002 and the first half of 2003. The following table compares Portland unemployment rates with the State of Oregon and the Unemployment Rates United States as a whole. Oregon's higher Seasonally ed R unemployment can be attributed to its reliance on high Portland MSA Adjust Jul 2007 suss technology industries, which recently went through a .tun 2007 4.6% 4-8% cyclical downturn, and also to its high minimum wage, Jul 2006 5.2 5.2°k Clregon lagging transportation infrastructure (particularly its Jul 2007 5.5% 5.3% inadequate highways), deficences n higher education Jun 2007 5.1% 5Z.1% q deficiencies ig Jul 2006 5.4'x`0 5A% and the perceived anti-business regulatory and tax United States climate. Both Portland and Ore on as a whole have Jul 2007 4. 4 g .lun 21x07 4.55`m% 47% largely recovered from the downturn, and Jul 2006 4.8°x, 5,0% unemployment rates are moderate. REAL ESTATE SERVICES GROUP,INC. 6 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI Portland Metro Employment Trends Portland Metro, Oregon, and U.S. Unemployment Rates 2000-Current(seasonally adjusted) U.S, 4. —Oregon —Portland Oregon °Portland Metro 8.i0 _ TO r,0 5.0 4.0 3.0 — Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Source for preceding tables:Portland Metropolitan Labor Trends-Oregon Employment Department http://www.qualityinfo.org/olm isi/OlmisZine?zitieid=00000010 The following chart indicates recent employment trends in the Portland PMSA employment by job sector: 12-Month Growth Rates by Broad Industry Portland MSA, May 2007 E% Constructor 4% — °k Leisure& =_ducat nal& _ hospitality health sves. .yam Total Nonfarm Government. M1.1a- xnr g 0% 4nformatior Professional& Trade.trarsport., Financ=a business sVes. &!1tIF._ties activiies � C..ther se...vi,es Source:The State of Oregon Employment Division REAL ESTATE SERVICES GROUP,INC. 7 j _ TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI NEIGHBORHOOD MAP Beaverton a� SW Oak St 210 _ SW Pine ssw SW Spruce St O St m 4 Portland L SW Tigard St Greton v ssw ED C.6 a> -0 M, s a W CU y Walnuti St �3a �- _ t� 0 W o `a Q r u. Q� 7 r. 4Tigard 217. [n Omam St �y 29 SW Gaarde St ,}Lake Oswego 1 SW McDonald St `x- Bonita �2°,• SW Bonita Rd co S'JJ Bul4 1'tido+�rtatin � ssw - yC/3co 3 ' 4D SW Sattler St ,9 `4t ir_ VV Kable St `�� G S"UJ SUmEr ti ar '.221 ^fir King C IT S� $6C" SW Durharn w Cn t5 a0 D Cook ParkpNPi U} t ti SW Naxslbrook Rd �� Kt Durham 29" o Tualatin CLru SW Tualatin Rd n Country Cluh tvlcEwan Rd F X11 y Leveton Dr ° 9 River Grove y Y+ ro Sw. rq Rd=SW Nyberg Ln REAL ESTATE SERVICES GROUP, INC. 8 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI NEIGHBORHOOD DESCRIPTION Overview — The subject is located in a residential neighborhood close to Highway 99W, a major arterial. The neighborhood is in transition from older housing stock situated on large parcels to newer infill development. Residential—Residential land use in the area consists of a broad range of types, densities and ages. Erickson Heights, a newer single family subdivision built in the last five years is located less than a quarter mile southwest of the subject. Polygon Homes is in the process of marketing a townhome development, Canterbury Heights just east of Hwy 99W along Canterbury Lane. Multifamily development generally parallels 99-W at the westerly fringe of the neighborhood, with a transition of moderate density development and then detached single family uses as one goes east into the neighborhood, following zoning patterns. Retail — An abundance of commercial retail uses are available along the Pacific Highway, including convenience stores, grocery shopping and automotive maintenance. Farther north, Main Street provides a traditional downtown business district for Tigard. There are a number of major retail centers within a convenient drive time of the neighborhood, including Washington Square and Bridgeport Village. Office and Industrial — A number of smaller office buildings are located along Pacific Highway. There are concentrations of Class A office buildings along Kruse Way in nearby Lake Oswego, in the Tigard Triangle near the I-5/Hwy 217 interchange, and in the vicinity of Washington Square. Light industrial uses are found along the railroad that runs north/south through the northeasterly portion of Tigard, but there are no industrial uses in the subject neighborhood other than the Water District facility. Transportation and Linkages —The neighborhood is well served by transportation routes including Hwy 99W and the local street network. Several freeway access points to Interstate 5 and Highway 217 are located within two miles of the subject. Hwy 99W suffers congestion during peak periods. However, driving times to key destinations including downtown Portland are acceptable, and new transportation infrastructure is being developed in the form of a commuter train that will run from Wilsonville to Beaverton, with stops in Tigard and other communities along the line. Local Trends — Continued infill development and replacement of existing residential and commercial properties. REAL ESTATE SERVICES GROUP,INC. 9 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI DESCRIPTION REAL ESTATE SERVICES GROUP,INC. 10 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI AERIAL PHOTOGRAPH A,10 At i� a AW iltx - , . «.- a I 6 Note that maps show approximate boundaries only and are not to be relied on for any other use. REAL ESTATE SERVICES GROUP,INC. I I TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI OBLIQUE AERIAL PHOTOGRAPHS 77 w, t Facing North F 4 V r ; Facing South REAL ESTATE SERVICES GROUP,INC. 12 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI SUBJECT PHOTOGRAPHS M� LM 1 1: Subject's frontage along SW 103rd Avenue { 41, 2: Central portion of subject property — REAL ESTATE SERVICES GROUP,INC. 13 _ TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI - 40 r f 3: Overgrown Christmas trees on the east side of the site Q t. v, 4: Facing east toward unimproved Murdock Street right-of-way REAL ESTATE SERVICES GROUP, INC. 14 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI N ill a a k^av Y 5: View of 9-1-1 communications tower from subject �t � Ilii 6: View of Tigard Water facility from subject REAL ESTATE SERVICES GROUP, INC. 15 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI a. 1 ♦"4. , _. .....apt 7: Historic John Tigard house viewed from intersection of SW 103rd & Canterbury .S P i 8. Rear view of John Tigard house REAL ESTATE SERVICES GROUP,INC. 16 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI H 4 4� ir�urr 9: Street scene facing south along SW 103rd Avenue, subject at right 01 0 rt a eaa. ffs 10: Street scene facing north along SW 103rd Avenue, subject at left REAL ESTATE SERVICES GROUP, INC. 17 TIGARD WATER PROPERTY MATTHEW LARRABEE, M.ARCH., MAI SITE ANALYSIS .47 AC ID 8 4 H8938-3C7E U 2 LANE n' SW CANTE E _758!848 10931682 139.99 T 50.00 186.8_ 6 -��._ 161.00 NBW 2S110AD 113.60 70 2700 o John Tigard SM51.00e .113 12 n5 .30 AC m House 14 a,3315,.3200, m ®' m ^ m �S 2303 ' 1MAD .r 86.15 ■��ra��■ O ®t6 n 16 �'� i3&SB--- - ^� .39 AC 3.83 �,m �. 284 00 ��` 21400 • ___.._�2SN(tAD ,. 60.00 -... Q !— TRACT"E" r $ d4Ob c •O.p Y C m 11 28 "t 1800 v n = :�:• to "a33'QAD S4e 2w.ao fi0 1 -we r, -. 7p� `a�ytGt� at�•� " 5 SAC ^ 2a17'61D o 45 o Proposed Property Line N EASEIAeNi 551 D`ffi s N 0 10.61 CRAM - -- �r4�6 10 ia► �2o�AoobtroAD -- --- �__------------ _ - - rns;oti.'" 41,23 22 21 _ 6000 3. 2 � .. 13a.03 19OA6 �7 _ 67.�__... i0y 0 YO 10 J — 42 3 ,..-.248.00'G. 46' er� 1 6100 138.00 3 ss�naoaa ao 12890 R _ _ R E ET a 1, �9 ok— -- -- 1b1 U RDMX-- ry NORTH wcr5a11asowoica4 ts_ x1 n l4r,07 ;2a.a5 �s v .. _ 17 to a' J 33152..3.>2AAC `� 10 1 9�0 130.52 161.87 ,p. �`.9 95.44 78.95 0e7an� �- n 23111 C8 0� (� RD 2a111C81 1 7S117C8 'Z 500 41 40 1311 W n 1301 H,F 4 00 _ o 22n m 21 4 - M1� Plat Map REAL ESTATE SERVICES GROUP,INC. 18 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI ii Canterbury 140' - � Private _ T_ Residence � o f, /'f f /fffJf/fi 136 °aQP P °J s f//i`Vit.✓ '�/f�:./J !'fr ✓r a O o o ,3 r,1 t✓ /,; P�y o P J J°,? o P a Jo 4 o P a J-0 a o f �.. W _._ ' t✓ ° � ° ° Ja-0J ° Jater Fac.lio J , Ja ° J° Xa J - °a a JJ °8 o JJ P8 o JJ ° a v J a a o J j '✓ �f` f/ f Q,.0 Jo° °ao moo °�7a Ja° QQ l/J!fJl ✓j/j✓ff' aJa °JasJo PJJoJa o�7JoJ ',`/ o J o J a J o J o if�f ff f✓ f,' r' f�/ �o J ° J ° J ° ° J c ✓ a4)1 ✓✓fJ q J a p a ° 4 a° J J o ° J J aao P ✓✓f f�ff ff!J,/t % o o a a a o o > �. 1' f '�, .`�f f, ✓,'✓s.`.; J°� ° a 4 a°J a a J aP J a o+�,°J QI a Ja ° Ja,7 o _2.0_2.04 J J o Ja 4;1 J _—I � f /f�f, ff✓,rj„✓�f� ��. J a o J - f /.,`f/ l '`_rr f✓%j f J J °P e y � �3'� a° a a J o f o a0a asg�}Ja o a+�o Ja° aJa J°J � °`�JaJ aJJaJP o as,7P oa�J7� J°,? ° oJJ¢J aooaJ0J° � oJpa JJ ° .7P ° JJ a !° ° aao ,?° P JJ ° J° oJ J P a J � 1 ° J °o,� °aJ °aJ °aJaaJ °JJoaJ °aJo,3 °aJ °o3 ° Jf I IIIIfS �o'� Pa °Je'7P'7 4.0 J °no P;1 aov — a J 515' Murdock _ Easement Area I i i (50'x50') { I 1 F Surplus Property Map SITE ANALYSIS Map & Tax Lot: Township 2S Range IW Section 11,portion of Tax Lot 2600 Site Size and Shape: Entire tax lot is 5.05 acres per county assessor. Using the dimensions _ indicated on the map above, as provided by the client, the subject parcel including the site of the Tigard House consists of 133,032 SF (square feet) of land, or 3.05 acres. The Tigard House occupies 0.31 acres and the tower setback reduces the site area by 0.50 acres, for a net _ site area of 2.24 acres. Street dedications would be required along the subject's SW 103rd and Murdock ROW frontages as a prerequisite to subdivision approvals. For additional details, see the Developable Area analysis at the end of this section. _ REAL ESTATE SERVICES GROUP, INC. 19 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI Abutting Properties: ■ North—Private residence and Canterbury Lane, across which is a church ■ East— SW 103rd Avenue, across which are several homes ■ South — Undeveloped SW Murdock Street right-of-way, beyond which are several homes ■ West—Tigard Water facility with 9-1-1 tower, alley, and a townhome development ■ Detrimental adjacencies — The Tigard Water facility and the 9-1-1 tower are considered somewhat undesirable adjacencies due to their visual impact and occasional noise from operations. The proposed 50' x 50' easement for future well drilling at the corner of Murdock and 103rd is detrimental for the same reasons. Street Improvements: ■ The subject has ±515' of frontage along SW Murdock, which is an undeveloped public right-of-way. Murdock is defined in the City of Tigard Transportation System Plan as a Neighborhood Route. It is likely that as a condition of granting development rights, the city would require a"three-quarter" street improvement extending along the subject's street frontage on Murdock, at least for the four lots which could be placed there, say 350' total. This would include a paved street with public utilities and a curb and sidewalk on one side. ■ A small undeveloped alleyway that is not included in the Transportation System Plan extends along the western edge of the surplus property. It is possible that improvement of the portion fronting the subject surplus property could be required in the event of development, but it is not considered likely since it would not provide a public benefit. ■ SW Canterbury is a two lane public asphalt paved street improved with a sidewalk, _ curb and utter. ■ SW 103' is a two.lane public asphalt .paved street. The sidewalk, curb and gutter extends approximately 100' south along 103rd from its intersection with Canterbury. In the event of development of the subject, the City would require a half street improvement along SW 103rd Avenue (curb/sidewalk) and a dedication of land to increase the existing right-of-way from 40 feet to 54 feet. 10270 131X29 10196 y •^"- f �•,-,.„,. '� p 144211 1131 F5 tolls i �'l 10"5 f ' �.1 15 t 1x - _1 116!5 3� ,t011it3 t 346 ! ..• Y4fi09 14659 '11541 YdE 14685 `14700 1012fi I 4CA$ 7 �.1 34 i 14739 11t3&3 Li956T # 1923}5.1{}155 y '9ll 10233 ROO 148Gt 1-11@5 IL180 11809 14755 f1iT4G 14p95 m 1� 3j8� 145:3£i�:--�19 ,+1915Q M 14971 1483£+ 1 35 19259 Topography Map REAL ESTATE SERVICES GROUP, INC. 20 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI Topography: Moderate slope to east side (toward 103rd). It is reasonable to assume that the property can accommodate a standard gravity flow connection to the storm drainage and sanitary sewer systems. Vegetation: The frontage along 103rd has a dense stand of overgrown Christmas trees. The central portion of the site is open and grassy. The southern portion of the property and the undeveloped Murdock right-of-way have a good number of mature trees. Macro-Accessibility: Good. The subject property is close to Hwy 99W and has good freeway access to I-5 and Hwy 217. Micro-Accessibility: Good. The subject has frontage on two local street with the potential for _ frontage on a third neighborhood street. Utilities: Electrical, telecom, public water, and sewer are located within the immediate vicinity of the subject and are assumed adequate for a small infill development, However, since there is no current sewer line under SW 103rd along the subject's frontage, it would necessary to extend the sewer main from either of the closest connections along Murdock or SW 103rd, approximately 500' under SW 103rd to the south line of the John Tigard house lot. Sewer would also need to be extended to serve any lots that would front on the Murdock right-of-way, and it is possible that the city would require a full build-out of sewer and water lines as part of the required improvements along the currently undeveloped right-of-way. Sanitary Sewer Map Flood Zone: The subject does not appear to be in a FEMA flood zone. — Environmental: No environmental assessment information was provided. It is assumed that no significant environmental contamination exists on the subject property. If any questions or concerns exist, the appropriate experts should be consulted by the owner and other interested parties. REAL ESTATE SERVICES GROUP, INC. 21 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI Geology and Soils: No soils report was provided and soil capability and stability is assumed adequate for construction of roads, utilities, drainage facilities, and dwellings on conventional concrete footings. The area of Oregon west of the Cascade Mountains is designated Zone 3 for earthquake/seismic risk out of a scale of four. Thus there is a risk of seismic activity, and new construction is required to comply with seismic codes. This risk applies to all properties in the area and thus does not appear to unduly affect the value of the subject. Zoning and Comprehensive Plan: The subject is zoned R3.5 Low Density Residential by the City of Tigard. This indicates a target density of 3.5 units per acre. R-3.5: Low-Density Residential District. The R-3.5 zoning district is designed to acconunodate detached single-family homes with or without accessory residential units at a minimum lot size of 10,000 square feet. Duplexes are permitted conditionally. Some civic and institutional uses are also permitted conditionally. Basic requirements are indicated on the following table: TABLE 18.510.2 DEVELOPMENT STANDARDS I-RESIDE\TIAL ZONES _ STANDARD R-1 R-2 R-3.5 R4.5 R-7 Minimum Lot Size Detached trait 30,000 sq.ft. 20.000 sq.ft. 10,000 sq.ft. 7.500 sq.ft. 5,000 sq.ft. —Duplexes 10.000 sq.ft. 10.000 sq.ft. Attached unit[1] 5.000 sq-ft. Average Mininmun Lot Width Detached unit lots 100 ft. 100 ft. 65 ft. 50 ft. 50 ft. Duplex lots 90 ft. 90 ft. 50 ft. Attached unit lots 40 ft. Maximum Lot Coverage - - 804a[2] Minimtun Setbacks Front yard 30 ft. 30 ft. 20 ft. 20 ft. 15 ft. Side facing street on confer&through lots 20 ft. 20 ft- 20 ft. 15 ft 10 ft. Side yard 5 ft. 5 ft. 5 ft. 5 ft. 5 ft. Rear Yard 25 ft. 25 ft. 15 ft. 15 ft. 15 ft. Side or rear yard abutting more restrictive zoning district 30 ft. Distance between property line and front of garage 20 ft. 20 ft. 20 ft. 20 ft. 20 ft. Maximum Height 30 ft. 30 ft. 30 ft. 30 ft. 35 ft. \riuimuiu Landsca e Re uirennent - '00-0 _ [1]Single-family attached residential units permitted at one dwelling per lot with no more that five attached units in one grouping- [2]Lot coverage includes all buildings and unnpervious surfaces. REAL ESTATE SERVICES GROUP,INC. 22 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI s . : r. lAtiF IIS` tlt cc R-12 i Iwai=t'g R-3.5 r' rlind(H D) sd _A-_T_L� R-12 t= !Ln (PD) R-3.5 j� �� -• f' R•3.5 - Zoning Map Historic District Overlay — The entire tax parcel is also designated with an HD Historic District overlay, which requires the preservation of the properties historic character through special land use procedures. Restrictions on development from the HD overlay, however, can be avoided due to Oregon Revised Statute 197.772 which annuls such involuntary restrictions on property rights. Consequently, future owners of the subject property need simply to request the removal of the designation to eliminate the Historic District overlay. 197.772 Consent for designation as historic property.(1)Notwithstanding any 6' other provision of law,a local government shall allow a property owner to refuse to consent to any form of historic property designation at any point during the designation process. Such refusal to consent shall remove the property from any form of consideration for historic property designation under ORS 358.480 to 358.545 or other law except for consideration or nomination to the National Register of Historic Places pursuant to the National Historic Preservation Act of 1966,as amended(16 U.S.C.470 et seq.). (2)No permit for the demolition or modification of property removed from consideration for historic property designation under subsection(1)of this section shall be issued during the 120-day period following the date of the property owner's refusal to consent. (3)A local government shall allow a property owner to remove from the property a historic property designation that was imposed on the property by the local government. [1995 c.693 §21;2001 x.540 §19] Comprehensive Plan — The comprehensive plan for the City of Tigard serves as a guide for zoning and can differ from the official zoning for a property. In this case the comprehensive plan is in agreement with the zoning map and defines the subject land use as R3.5. REAL ESTATE SERVICES GROUP,INC. 23 _ TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI Tree Ordinance — Chapter 18.790 of the Tigard municipal code governs tree removal. The tree protection requirements relating to land development are stated as follows: A. Tree plan required. A tree plan for the planting. removal and protection of trees prepared by a certified arborist shall be provided for any lot.parcel or combination of lots or parcels for which a development application for a subdivision,partition. site development review,planned development or conditional use is filed. Protection is preferred over removal wherever possible. B. Plan reauuennents. The tree plan shall include the following: 1. Identification of the location. size and species of all existing trees including trees designated as significant by the city; 2. Identification of a program to save existing trees or mitigate tree removal over 12 inches in caliper. Mitigation must follow the replacement guidelines of Section 18.790.060D, in accordance with the following standards and shall be exclusive of trees required by other development code provisions for landscaping.streets and parking lots: a. Retention of less than 25%of existing trees over 12 inches in caliper requires a mitigation program in accordance with Section 18.790.060D of no net loss of trees: b. Retention of from 25%to 50%of existing trees over 12 inches in caliper requires that two- thirds of the trees to be removed be mitigated in accordance with Section 18.790.060D: c. Retention of from 50%to 75%of existing trees over 12 inches-in caliper requires that 50 percent of the trees to be removed be mitigated in accordance with Section 18.790.060D: d. Retention of 75%or greater of existing trees over 12 inches in caliper requires no mitigation. 3. Identification of all trees which are proposed to be removed; ^ 4. A protection program defining standards and methods that will be used by the applicant to protect trees during and after construction. Chuck Barber, a professional forester, recently compiled a list of all trees on the site with a caliper diameter of over 12" (see Addenda). He found that there are 171 trees on the developable area of the subject (excluding the tower setback area and Tigard house lot) and 27 trees in the Murdock Street right-of-way. According to city officials, the cost to mitigate damages (the "in lieu-of payment) for tree removal is $125 per caliper inch. Mr. Barber has estimated the total estimated in lieu-of payment if all trees were removed on the subject and the Murdock ROW at $380,875 ($32,875 + $283,750 + $64,250). While it is likely that all trees would need to be removed from the Murdock ROW if the property is subdivided into lots, not all trees would need to be removed to develop the subject land itself. The code allows flexibility in planning the layout of the site, such as clustering lots. Also, lot clearing could be _ limited to the extent necessary for placement of a house and small yard. The potential hazard of falling trees needs to be considered as well. Finally, mitigation can be achieved at least in theory by planting replacement trees, but in this case such mitigation would only offset a _ small portion of caliper inches lost to cutting. Also, in an interview with Mr. Barber, he opined that any revenue from timber would likely be offset by the costs to grub the site and haul away and dispose of the debris. A precise measurement of the financial impact of the tree ordinance is not possible without the assistance of a professional planner who could lay out a subdivision plan. However, for the purposes of this analysis, it is reasonable to assume that perhaps 50% of the Type 1 trees REAL ESTATE SERVICES GROUP, INC. 24 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI (Scattered large trees) and up to 75% of the Type 2 trees (33 year old Douglas fir plantation) would need to be removed for development. Thus the in lieu fees are estimated as follows: Estimated Tree Removal "in Lieu" Fees Item d F t t a1 PerOtt rotat trd t aeu Fees Removed Type 1 Scattered Large Trees $32,875 50% $16,438 Type 2 Douglas fir plantation $283,750 75% $212,813 Murdock right-of-way $64,250 100% $64,250 _ Total $380,875 $293,500 Total Tree Removal In Lieu Fees, Rounded $294,000 _ This reflects an estimate for the purposes of this appraisal. If a more definitive estimate is required, it will be necessary to hire a planner or engineer to lay out a subdivision plat and -- review the plans and tree removal /mitigation costs with the municipal authorities. 9-1-1 Tower Setback requirement Tigard Code sections 18.510.060 (Accessory Structures) and 18.798.050 (Wireless Communications Facilities) specify that communications towers be set back from the property line by a distance equal to or greater than the height of the tower. Based on the engineering drawing for the facility, the tower appear to be approximately 130' — high at the topmost point of its antenna. Thus any property line to partition the subject from the existing whole parcel owned by Tigard Water would need to be set back 130' from the base of the tower. This would reduce the land area of the subject by an estimated 21,645 SF, — or 0.5 acre. Refer to the Tower Setback Map for an illustration of the setback line. Easements & Encumbrances: The current owner, Tigard Water District, has indicated that an approximately 50 foot by 50 foot easement will be reserved on the southeast corner of the subject for a future well facility. The easement location may have to be expanded or moved closer to the interior to maintain its dimensions due to the requirement for a street dedication of an additional 7' of width along both the SW 103rd and the Murdock frontages. The possibility of the future construction of a pump facility on the 50' x 50' easement would negatively affect the marketability of homes on the subject, especially if higher-end, larger lots are developed. It is an undesirable adjacency. The John Tigard house occupies a site area of 13,600 SF or 0.31 acre (100' x 136') at the corner of Canterbury and 103rd and thus encumbers that portion of the subject property. (Note that this differs slightly from the measurements shown on the Surplus Property Map but reflects the dimensions specified in the Legal Description of the Tigard House site — see Addenda). _ The April 10, 1979 lease agreement between the Tigard Water District and the Tigard Area Historical and Preservation Association provides for an annual, renewable lease at one dollar _ per year. However, Section XIII, while granting the Lessee the option to renew for indefinite number of one-year terms, does provide that the Lessor may terminate upon a one year's written notice. The Intergovernmental Water Board, in Resolution 07-02, revised 4/11/2007, _ REAL ESTATE SERVICES GROUP, INC. 25 _ TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI has identified as a condition of disposition of the surplus property that a conservation easement shall be placed on the area leased to the Tigard Area Historical and Preservation Association for the John Tigard House. The conservation easement will be "limited to the sole use and maintenance of the historical John Tigard House and no other purpose." Thus it is concluded that the portion of the subject that supports the Tigard House is effectively excluded from economic uses, except to the extent that the land area can be included in a density calculation when determining the number of allowable lots. A search of apparent encumbrances in the form of a "Lot Book Service" was performed by Pacific Northwest Title, revealing no detrimental easements on the property, and it is assumed that there are no existing or proposed easements other than those analyzed above that would be detrimental to the value of the subject. In all cases it is strongly recommended that a current title insurance policy be obtained to be protected against the possibility of unknown easements or other deed restrictions that could affect value. At the instruction of the client, the property is being analyzed under the assumption that the proposed conservation easement that would restrict the 0.31 acre lot under the John Tigard house to the use and maintenance of the historical house will be recorded prior to transfer of title. Property Taxes: The subject property would ordinarily be liable for annual real estate taxes as levied by the county assessor. However, due to the fact that it is under the ownership of a governmental body, no taxes have been assessed. The RMV (real market value per county assessor) for the 2006/07 tax year (07/01/2006-06/30/2007) indicates a land value of $1,893,750 for the entire 5.05 acre tax lot, which equates to $375,000 per acre. However, since assessment practice involves a methodology that is not as site-specific as an individual appraisal, no weight is given to the county's RMV. Improvement Description: The subject contains the historic John Tigard house, which was constructed in 1880 on Pacific Highway at the intersection of McDonald Street. The house was moved to its current location in 1978 and placed on the National Historic Registry in 1979. The lease agreement between the Tigard Historical Association and the Tigard Water District indicates that the house remains the personal property of lessee and is therefore not considered to be part of the real estate being valued. The lease is effectively a net ground lease in which the tenant is responsible for property insurance costs, maintenance of the premises, and requires the tenant to carry a personal injury liability that names the Lessor as an additional insured party. As noted previously, there is an annual, renewable lease at one dollar per year, and a proposed conservation easement. Due to the proposed restrictions on use, and the terms of the lease, this portion of the property has no meaningful market value, although it does provide a minor amenity that partially offsets the detrimental adjacency of the water facility. Developable Area & Lot Density Analysis: I have obtained the following site plan from City records, which I have used as a base map for estimating the developable area of the subject. The total developable area of the site excludes the land leased for the John Tigard house, the 130' setback from the 9-1-1 tower, the 50' x 50' proposed well easement, and the REAL ESTATE SERVICES GROUP, INC. 26 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI required street dedications along SW 103rd and Murdock. The resulting net developable area is estimated at 91,304 SF or 2.10 acres. However, for the purposes of density calculation (i.e. the target of 3.5 lots/acre) the Tigard House site and the required street dedications can be _ included, while it does not appear that the setback area around the 9-1-1 tower can be included in the subject since it must remain part of the parcel that contains the tower. Allowable Lot Density—Using a strictly mathematical calculation, lot density is calculated as follows: Initial Lot Density Calculation Area Are . Pa ret I_a# `Tull lelt.# Total including Tigard House and Tower Setback area: 3.05 Less Tower Setback area: 0.50 Total Subject Site including Tigard House: 2.55 3.50 9 Less Existing Lot occupied by Tigard House: 0.31 01 _ New Lots allowable on remainder: 2.24 8 Given the specific circumstances of the subject property, including the irregular shape imposed by the tower setback area, and the zoning code requirements relative to minimum average lot size and frontage, a more precise method is used to calculate allowable density. Tigard Municipal Code section 18.715.020 provides for a density calculation as follows: — B. Calculating maxinniim number of residential units. To calculate the maximum number of residential — units per net acre. divide the number of square feet in the net acres by the minimum number of square feet required for each lot in the applicable zoning district. The net developable area of the subject is calculated as follows (assuming a private internal — street with a 20' dedicated ROW x 240' length—4800 SF—to serve no more than six lots, and seeking approval as a Planned Unit Development): Lot Density Calculation Based on Net Area Area - : roxyF — Totat- =; Total Subject Site excluding Tower Setback: 2.55 111,078 Less Internal Private Street 20'x 240': (4,800) Total Subject Site including Tigard House: 106,278 10,000 10.6 Less Existing 100'x 136'Lot occupied by Tigard House: 1( 3.600) 1 Net Developable Area&Number of Lots: 92,678 10,000 9.3 — By the preceding analysis, which considers the net developable area, it appears that the subject can be developed with up to nine lots in addition to the existing lot for the Tigard — House. As a final test, a suggested layout is shown on the Tower Setback Map on the following page. This reflects an estimate for the purposes of this appraisal. If a more REAL ESTATE SERVICES GROUP, INC. 27 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI definitive estimate is required, it will be necessary to hire a planner or engineer to lay out a subdivision plat and review the plan with the municipal authorities. S W C A N T E R B U R Y L A N E i h ' EX. SM i Ex WATER TANK v R / if w IX.NATi7t ¢. iM1K 11 EXSHOP WOR a � •� 1 2 LJ1 >. I • \'` ` 1 s Private Street �� I ■•�• ��■ Eed�eF■ER.KixauKBM••■ p� I 0i f ' P :V70 FENCE I 4-� M OC� S MURD�CK STREE SW U DE VSE _L � E 6f Tower Setback Map REAL ESTATE SERVICES GROUP, INC. 28 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI HIGHEST AND BEST USE Highest and best use is defined as the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria are legal permissibility, physical possibility, financial feasibility, and maximum productivity (Source: The Dictionary of Real Estate Appraisal, 4th Ed.) Implied within this definition is that the determination of highest and best use involves the _. appraiser's judgment and analytical skills, and is not a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which a value is based. In a context of most probable selling price (market value) another appropriate term for highest and best use would be most probable use. In order to estimate the subject's highest and best use, the potential uses for the property are examined in the context of the restraints put on its use, which are governmental, social, economic and physical. HIGHEST AND BEST USE AS THOUGH VACANT Legal Considerations: The subject is zoned for low density residential development. A portion of the property is encumbered by a lease and a proposed conservation easement to accommodate a historic house. Another portion is undevelopable due to its proximity to a communications tower. Tigard's tree protection ordinance increases the costs and complexity of development. L Physical Characteristics: The subject is relatively level and much of it is covered with mature trees. It is essentially a suburban infill site, with a paved street frontage along its eastern edge, and an unimproved street right-of-way along its southern edge. Utilities are ` available, although public sewer must be extended several hundred feet. The subject is bordered by an existing water facility and 9-1-1 communications tower which are detrimental to the development of upscale homes. Market Considerations: The residential market remains generally healthy, with supply and demand in relative balance. After a number of years in which high demand relative to supply ` led to rapid increases in prices for land and finished homes, the market is currently more subdued. However, except for a few areas, overbuilding has not occurred, and developable _ residential land remains in high demand, especially in good locations. The subject is situated in an older residential area typified by larger lots that is transitioning _ through infill development. The target lot type for this development would likely be in the mid-range of the market, given the positive and negative attributes of the subject. It is estimated that the subject could accommodate a maximum of nine lots. Conclusion: A number of items pose uncertainty and risk to a development venture. These include the reaction of neighbors to the conversion of public open space into subdivided lots and the removal of mature trees, the nature of the Historic District overlay and the time and management effort needed to attain planning approvals. Highest and best use as though vacant is for residential development. REAL ESTATE SERVICES GROUP, INC. 29 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI HIGHEST AND BEST USE AS IMPROVED The subject is improved with a historical house that is not part of the real property of the current owner, because by contract it remains the property of the historical society. Given the scenario that a conservation easement will be placed on the leased John Tigard house, restricting any future development on that demised area, it is likely that a developer would choose to dedicate that parcel to the public or a charitable enterprise. Highest and best use as improved is for residential development on the areas of the site where development is allowed, and for retention of the historic structure on its site, subject to the proposed conservation easement on that area. REAL ESTATE SERVICES GROUP, INC. 30 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI VALUATION REAL ESTATE SERVICES GROUP,INC. 31 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI THE APPRAISAL PROCESS There are three basic approaches used by appraisers to estimate market value. These three approaches provide market data from differing perspectives. The three approaches are the Cost, Sales Comparison and Income Approaches. Since no substantive structural improvements are a part of the real estate, the only applicable approach is considered a site valuation using a sales comparison approach, analyzing sales of vacant land in the subject's market area. The income approach and cost approach are not relevant for land valuation, except in cases where there is a ground lease that produces substantial income. SALES COMPARISON APPROACH The direct sales comparison method is based upon the principle that a prudent investor would pay no more for property than the cost of acquiring a satisfactory substitute, and is considered to be the most applicable method of valuation in this case. The price per potential or raw lot is the most applicable unit of value relative the comparison of these land sales. Extensive research was conducted in the subject's market area for recent sales of similar parcels. The most meaningful sales are analyzed on the following pages. REAL ESTATE SERVICES GROUP, INC. 32 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI COMPARABLE SALES PHOTOGRAPHS r Comparable 1 Comparable 2 _ ; a m L Comparable 3 Comparable 4 L REAL ESTATE SERVICES GROUP,INC. 33 L TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI 4, Comparable 5 Comparable 6 Comparable 7 REAL ESTATE SERVICES GROUP, INC. 34 TIGARD WATER PROPERTY MATTHEW LARRABEE, KARCH., MAI COMPARABLE SALES MAP _fr �s Robinson >>r"rrelrF(�d� _.+ 2 � � _�� Been 1L��—_ � `a'y°1F r�Orel St Metzger �i�� {�i0114�„�.tC1C� ,�`+. `��-, y� VIM LF 4 �.��,-� �_ ��L T fl_ - > 1 u 1. n� ['ow r j 3V�F yak ;# ,J � t 9 n S�tr'1F SpruCa_. t nburJ %0 IFT i 44!- '�`pfR) 210 nrtr T Y� f > �' eW Pfaftle St Jammer ,,(',i ** '� 7(3Slnji fn Lake Park - s U L SL IL LIEL t �Nr� zS= 1r I l t 217 �_ (�r � v� t�� 1 iQt �I !,` i ))) �} f (ti �, JL j41 II `Ij ` r „ ' r' �, `��tltr St rra rr r; `:u�IL1� II r ` I A r 9 IPAc N _�r Y f "r i - S >, f ��I� �(._.._„'.�»'{ 11... s r �� 4luvti �i 1t :: .t . ."r7°_,,.^ ��. ._ i_.: ._�Ioi_.tt neer _. � r F o ,_ v -IC A F - c J i� �'w_'L.�.�L- _ l ^C� t �o��1��_ 217 Lake r7mara — �� o � ,� g oL ,4' rr j M h 5�.r4' Bardet .r _:� � G liar 2A Ur L G c 1—t BonNk di y�r Bull Mountain Rd5I 1 SVJ gonia Rd _ r _ (` j IF � 03JL±c r 4. == L J � ; SW Sattler St 2: King OD OJ s IF t, t ^', SUrnmtS�}ol� 1i R� i��' r, •� SW Durham Rd - Gy. .: CI1 aso 1� alzin REAL ESTATE SERVICES GROUP, INC. 35 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI Residential Land Sales Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 Sale 7 Name/Location W.of SW 100th 9000 SW Omara 15100 SW 109th 12300 SW Bull Mtn 12040 SW Bull Mtn SW 158th SW 95th& S. of McDonald &Tuscany McDonald City Tigard Tigard Tigard Tigard Tigard Tigard Tigard Map&Tax Lot 2S1W05CD 200 2S1W02DC 500 2S1W1ODA 300,400 2S1W1OBC 1201 2SIW1OBC 1400 2S1W05CD 200 2SIW02CD 2500 Sale date Pending 4/2007 1/2007 3/2007 3/2007 5/2006 5/2006 Sale price $1,792,000 $539,950 $1,050,000 $1,300,000 $1,125,000 $2,880,000 $695,000 Adjustments $80,000 $5,000 $5,000 $5,000 $5,000 ($240,000) $65,000 Adjusted Sale Price $1,872,000 $544,950 $1,055,000 $1,305,000 $1,130,000 $2,640,000 $760,000 Total acres 3.61 1.14 3.29 1.64 2.44 4.19 1.89 Usable acres 3.61 1.14 3.29 1.64 2.44 4.19 1.89 Price/Usable acre $518,560 $478,026 $320,669 $795,732 $463,115 $630,072 $402,116 Zoning R-3.5 Tigard R-4.5 Tigard R-3.5 Tigard R-7 Tigard R-7 Tigard R-7 Tigard R-4.5 Tigard Allowed Density 3.5 Units/Acre 4.5 Units/Acre 3.5 Units/Acre 7 Units/Acre 7 Units/Acre 7 Units/Acre 4.5 Units/Acre Total Lot Yield 12 4 10 10 10 24 8 Actual Lots/Acre 3.32 3.51 3.04 6.10 4.10 5.73 4.23 Price/Raw Lot $156,000 $136,238 $105,500 $130,500 $113,000 $110,000 $95,000 Shape Irregular Rectangular Rectangular Ro. Rectangular Rectangular Oblong Rectangular Topography Rolling Level to rolling Sloping Level to rolling Level to rolling Sloping Level to rolling Utilities 400'sewer ext. All available All available All available All available All available All available REAL ESTATE SERVICES GROUP,INC. 36 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI ANALYSIS OF MARKET DATA—RESIDENTIAL LAND SALES Range of Value: The comparables range from a cash-equivalent $95,000/lot to $156,000/lot, after making initial, quantitative adjustments to the sale price as noted below. This analysis will consider the comparables on a price per potential lot basis. After an initial value conclusion, a deduction will be made for the extraordinary and offsite development costs, including estimated tree mitigation costs, sewer extension, and 3/a street improvements along the Murdock right-of-way. Adjustments to Sale Price: There are a number of factors for which quantitative adjustments are made to the sales prices of the comparables. For those which had existing dwellings that needed to be removed, a $5000 adjustment was added to the price to reflect demolition costs. Sale 1 and Sale 7 had tree mitigation costs, which were also added to the sale price, since tree mitigation reflects an extraordinary site development cost. Sale 6 sold with entitlements in place (i.e. planning approval, engineering, etc.), for which a $10,000/lot deduction was deemed appropriate,based on an interview with a developer as to the worth of such approvals. Elements of Comparison: In this comparison, the adjustment factors that are considered include market conditions (i.e. time or date of sale), location, topography, lot density, and other characteristics. Quantitative vs. Qualitative Adjustments—Due to the disparity of the available market data, it is not feasible to make specific, supportable, quantitative adjustments for the differences between each comparable and the subject with reliability or precision in this case, except for those previously noted. Therefore a qualitative method of comparison is employed, whereby each sale is analyzed relative to its superior or inferior characteristics relative to the subject, thus indicating whether it should bracket the lower or upper range of value for the subject property. Conditions of Sale: All sales appear to have been arm's length transactions between unrelated parties. Market Conditions (Time/Date of Sale): The residential market has remained strong, and land sales prices have escalated in the peripheral areas around the Portland metro area, particularly between 2002 and mid-2006 as closer-in sites have become more scarce. Since mid-2006 there has been some concern in the market that housing price escalation has slowed and that absorption of new housing has moderated. Time adjustments are considered appropriate where sales appear to have been negotiated in the rising market prior to mid-2006. Location, Topography, Density, etc.: Individual adjustments for locational differences, topography and other factors are made where appropriate. Density refers to the number of lots per acre. Lower density translates to larger lots, for which a premium is often observed. REAL ESTATE SERVICES GROUP, INC. 37 _ TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI ANALYSIS OF COMPARABLES— Price per Potential Lot Sale 1 is a pending.sale of a parcel in Tigard for a planned 12-lot subdivision for $156,000/lot after adjustments for tree mitigation ($37,500), sewer extension ($36,000), and demolition ($6,500). Downward adjustments are indicated since several of the lots will have views of Mt. Hood, increasing their value. Additional downward adjustments are made relative to the subject's detrimental adjacencies, including the water facility, 9-1-1 tower, and the proposed well easement. Thus this sale brackets the upper range of value for the subject on a per-lot basis. Sale 2 is the 4/2007 sale of a parcel in Tigard that was marketed as being able to accommodate four lots. The property sold for $136,238/lot. Downward adjustments are made relative to the subject's detrimental adjacencies. Thus this sale brackets the upper range of value for the subject on a per-lot basis. Sale 3 reflects the 1/2007 sale of a parcel in Tigard that was marketed with the potential for a ten-lot development. The property sold subject to a life estate, which requires an upward adjustment to account for the indeterminable holding period. There are many trees on the site as well, which will likely entail a tree mitigation cost upon development. These factors indicate upward adjustments. Smaller downward adjustments are made relative to the subject's detrimental adjacencies. Given these circumstances, this sale at $105,000/lot brackets the lower range of value. Sales 4 and 5 are situated on Bull Mountain, and sold for $130,500/lot and $113,000/lot, _ respectively in 3/2007. The properties suffer from some traffic influence, and they are being developed to higher densities. These circumstances indicate upward adjustments. However, their overall location is considered superior and some lots will have territorial views to the south, indicating downward adjustments. Additional downward adjustments are made relative to the subject's detrimental adjacencies. Considering these factors, Sale 4 at $130,500/lot appears to be a slightly high indicator of value, while Sale 5 at $113,000/lot appears to be a low indicator of value as it appears that the price was negotiated some time previously to closing. Sale 6 is the 5/2006 sale of a vacant parcel that had been approved for 24 lots. The price was $110,000/lot after adjusting for the value of engineering and planning approvals. An upward adjustment is made for this sale's steep topography, which increases building costs, although this is largely offset by the added value of the territorial views that the lots will provide. An additional upward adjustment is made for this sale's higher lot density. Smaller downward adjustments are made relative to the subject's detrimental adjacencies. Considering these factors, this sale brackets the lower range of value for the subject. Sale 7 is the 5/2006 sale of a parcel in Tigard for $95,000/lot after adjusting for demolition and tree mitigation costs. Upward adjustments are indicated for inferior, traffic-influenced location. Thus this sale brackets the lower range of value for the subject. Conclusion of Land Sales Analysis — In the preceding analysis, Sales 1, 2 and 4 bracket the upper range of value for the subject at and $130,000/lot to $156,000/lot. Sales 3, 5, 6, and 7 at REAL ESTATE SERVICES GROUP, INC. 38 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH.,, MAI $95,000/lot to $113,000/lot bracket the lower range of value on a per lot basis. With some weight placed on all comparables analyzed, the estimated value of the subject is $120,000 per potential lot prior to adjusting for extraordinary and offsite costs including tree mitigation costs, street improvements, and extension of utilities. Deduction for Subject's Offsite & Extraordinary Site Development Costs — The following table summarizes the subject's anticipated development costs. It is reasonable and prudent practice to add a 20% contingency allowance relative to the hard costs. Indirect costs for surveying, engineering fees, permits, etc., must also be considered, and 20% of hard costs is added as a reasonable allowance for indirect or "soft" costs. See Site Analysis for additional details. Offsite& Extraordinary Site Development Costs Item Quantity Unit $/Unit Total Sanitary Sewer 500 Lin.Ft. $80.00 $40,000 Murdock ROW Improvemei 350 Lin.Ft. $250.00 $87,500 Total $127,500 Permits& Fees 20% $25,500 Contingencies 20% $25,500 Tree Mitigation $295,000 — Total cost estimate $473,500 Estimated offsite&extraordinary costs, rounded: $474,000 Opinion of Value — Therefore, my opinion of the current fee simple market value of the subject property under a scenario of future residential use and utilizing a sales comparison analysis, is as follows: 9 potential lots @ $120,000/Lot: $ 1,080,000 Less Extraordinary& Offsite Site Development Costs: $474,000 Total: $606,000 Current market value of the subject property: $ 605,000 Test of Reasonableness — The concluded value of calculates to $270,089/acre on the subject's 2.24 acres of developable area (excluding Tigard House lot and Tower Setback— see Site Analysis). The comparables sold for an adjusted $320,669/acre to $795,732/acre. The concluded value is below the range of the sales on a price per acre basis, as this reflects the impact of estimated tree mitigation costs. If not for the tree removal ordinance, the conclusion would be $900,000 ($605K+ $295K), or $401,785/acre,which is within the range of the comps. Assumptions/Hypotheticals—The subject is part of an undivided tax lot and is analyzed as if it were a freestanding parcel. At the instruction of the client, the property is being analyzed under the assumption that the proposed conservation easement that would restrict the lot under the John Tigard house to the use and maintenance of the historical house will be recorded prior to transfer of title. The analysis also incorporates my estimates as to the number of lots that could be developed on the subject in accordance with the zoning code, and extraordinary and offsite development costs. If these assumptions are not the case,the value opinion could be different. REAL ESTATE SERVICES GROUP,INC. 39 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI CERTIFICATION The undersigned does hereby certify that,to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my own personal, impartial, and unbiased professional analysis, opinions and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report, and I have not personal interest with respect to the parties involved. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 4. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. My compensation for this assignment is in no manner contingent upon returning a specified value, requested minimum value, approval of a loan, or conclusion. Additionally, my compensation for completing this assignment 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 this appraisal. 6. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice (USPAP). 7. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 8. Significant professional assistance was provided by Albert Chira(Oregon AA02254). Mr. Chira's assistance falls within Oregon ACLB categories b-h. 9. I have made an exterior on-site viewing of the property that is the subject of this report and I have viewed the exteriors of the comparables used in this report. 10. The Appraisal Institute conducts a program of continuing education for its designated members. As of the date of this report, I, Matthew Larrabee, MAI, have completed the continuing education program of the Appraisal Institute. 1� Matthew Larrabee,MAI Certified General Appraiser Oregon State Certification#C000543 REAL ESTATE SERVICES GROUP, INC. 40 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH, MAI ORDINARY ASSUMPTIONS AND LIMITING CONDITIONS The legal description furnished me is assumed to be correct. I assume no responsibility for matters legal in character, nor do I render any opinion as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, and the property is appraised as though free and clear, under responsible ownership and competent management. The exhibits in this report are included to assist the reader in visualizing the property. They are not to be relied on for any other use. I have made no survey of the property and assume no responsibility in connection with such matters. Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations existing in the subject property, and that there are no artifacts or historical resources that would be detrimental to the value of the property. Information, estimates, and opinions contained in this report are obtained from sources considered reliable; however,no liability for them can be assumed by the appraiser. This report shall be used for its intended purpose only and by the parties to whom it is addressed. Possession of this report does not include the right of publication. This document is an instrument of service and all intellectual property rights are retained by the author. Use of portions of the report out of context, or the resale of data, or placement of market data from this report into an electronic database is prohibited. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media without the written consent or approval of the author. This applies particularly to value conclusions or to the identity of the appraiser or firm with which he is connected. The appraiser may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made. Any description of the total valuation of this report between land and improvements applies only for purposes of this appraisal. The separate valuations for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea- formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is not such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover s them. The client is urged to retain an expert in this field, if desired. The appraiser assumes no REAL ESTATE SERVICES GROUP,INC. 41 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI responsibility for determining if the property requires environmental approval by the appropriate governing agencies nor if it is in violation thereof. The statements of value and all conclusions shall apply as of the dates shown herein. All opinions of market value are presented as my considered opinion based on the facts and data appearing in the report. As an appraiser, I assume no responsibility for changes in market conditions or for the inability of the owner to locate a purchaser at the appraised value. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. The appraiser assumes no responsibility for such conditions, or for engineering that might be required to discover such factors. On all appraisals subject to satisfactory completion, repair, or alterations, the appraisal report and value conclusions are contingent upon completion of the improvements in a workmanlike manner as described herein. All major improvements on the land under appraisement appear to be structurally sound, unless otherwise noted within the body of the appraisal. However, this appraiser is not an engineer and has not been instructed to secure a qualified engineer's certification of the structural soundness of the said improvements or functional utility of major appliances or mechanical units. I therefore accept no legal responsibility for structural or mechanical failures that would not be reasonably obvious in the scope of an appraiser's normal inspection of the specified improvements, or to a prudent purchaser. The Americans with Disabilities Act (ADA) became effective January 26, 1992. I have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements _ of the act. If so, this fact could have a negative effect upon the value of the property. Since I have no direct evidence relating to this issue, I did not consider possible noncompliance with the requirements of ADA in estimating the value of the property. Ballot Measure 37 was recently passed into law by Oregon voters as a property rights measure that allows property owners to file claims for either monetary damages or waivers of regulations that diminish the value of their property when those regulations were put into place subsequent to the date that they or a family member became the owners of the property. The impact of any potential Measure 37 claims have not been considered and are beyond the scope of this assignment. All other assumptions or conditions stated elsewhere in the body of the report are also made a part of these Assumptions and Limiting Conditions stated herein. REAL ESTATE SERVICES GROUP, INC. 42 TIGARD WATER PROPERTY MATTHEW LARRABEE, MARCH., MAI ADDENDA REAL ESTATE SERVICES GROUP,INC. 43 QUALIFICATIONS STATEMENT MATTHEW LARRABEE, MARCH., MAI MATTHEW LARRABEE, M.ARCH., MAI Principal Appraiser—Real Estate Services Group, Inc. 922 NW Joy Avenue,Portland, Oregon 97229 Tel.: 503.799.3374 • Email: matthew@resg.us PROFESSIONAL DESIGNATION Member of the Appraisal Institute, MAI EDUCATION Undergraduate Degree: Bachelor of Arts, 1976 (Psychology) University: University of California-Berkeley, California Graduate Degree: Master of Architecture(M.Arch.), 1982 (Architecture) University: University of California-Los Angeles, California Appraisal courses: American Society of Farm Mgr./Rural Appr's. Fundamentals of Appraisal Review-2006 Appraisal Standards Board USPAP Instructors' Course—2002 Appraisal Institute Course 420 Standards of Professional Practice,Part B—2000 Appraisal Institute Course 720 Condemnation Appraisal(Applications)— 1999 Appraisal Institute Course 710 Condemnation Appraisal(Principles)— 1999 Appraisal Institute Course 540 Report Writing and Valuation Analysis— 1999 Appraisal Institute Course 550 Advanced Applications— 1998 Appraisal Institute Course 520 Highest&Best Use and Market Analysis—(Exam 1998) Appraisal Institute Course 530 Advanced Sales Comparison and Cost Approaches— 1997 Appraisal Institute Course 510 Advanced Income Capitalization— 1995 Appraisal Institute Course 410 Standards of Professional Practice,Part A(USPAP)— 1995&2000 Chemeketa College,Appraisal III Income Property Case Study&Narrative Report Writing— 1995 Portland Comm. College,Real Estate 210 Real Estate Appraisal Foundations— 1995 Mt.Diablo Comm. College,Calif. Mt.Diablo Comma College, Calif. Appraisal Institute Course 210 Applied Residential Property Valuation— 1991 Continuing Education: Appraisal Institute Appraising Convenience Stores-2006 Appraisal Institute Litigation Appraising:. Specialized Topics-2006 Appraisal Institute Valuation of Detrimental Conditions in Real Estate-2006 Appraisal Institute Analyzing Distressed Real Estate-2005 Appraisal Institute USPAP Instructor Recertification Course—2005,2007 Appraisal Institute Subdivision Analysis—2005 Appraisal Institute Measure 37,What's Happening Now?-2005 Marylhurst University Uncertainties of Measure 37-2005 ^ Appraisal Institute Small Hotel/Motel Valuation—2005 American Society of Farm Mgr./Rural Appr's. Yellow Book:Uniform ApprT Stds.for Federal Land Acquisitions-2005 American Society of Farm Mgr./Rural Appr's. Timber and Timberland Evaluation-2005 Oregon Law Institute Measure 37 Summit—2005 Appraisal Institute Land Valuation Assignments—2004 Appraisal Institute Land Valuation Adjustment Procedures—2004 Appraisal Institute Evaluating Commercial Construction—2004 Appraisal Institute/American Bankers Assoc. Conference Call on Regulatory Issues—2004 Oregon Society of Farm Mgrs./Rural Appr's. Appraising Unique,Complex&Mixed Use Agricultural Properties—2004 American College of Real Estate USPAP National 7-hour Update—2003 The Seminar Group Eminent Domain—2003 Mt.Hood Community College Corridor Valuation—2002 Appraisal Institute Attacking&Defending Appraisals in Litigation—2001 International Right-of-Way Association Federal Yellow Book Updates—2001 Oregon Law Institute Recent Issues Affecting Land Use Development—2001 Appraisal Institute Appraisers and the Gramm-Leach-Bliley Act—2001 PGP Seminars Non-urban Properties Symposium— 1997 Appraisal Institute Seismic Issues— 1996;Construction Costs- 1996 QUALIFICATIONS STATEMENT MATTHEW LARRABEE, MARCH., MAI LICENSING,PROFESSIONAL AFFILIATIONS,and AWARDS Member of the Appraisal Institute,MAI(Designation awarded 2004) Oregon State Certified General Appraiser(Certificate C000543; First certified 1996,expires 3/31/2008) AQB national USPAP Instructor, certified by the Appraisal Foundation(Certif. 10135; 2002-present) Appraisal Institute Instructor(2005-present) California Registered Architect(Certificate No. C20644; First licensed 1989,expires 3/31/2009) Texas Real Estate Commission, Real Estate Appraisal Instructor(2001-present) Recognized by the State of Oregon ACLB as an Education Provider(2003-present) Member, Oregon Society of Farm Managers&Rural Appraisers(2004-present) President's Service Award for 2004, Greater Oregon Chapter of the Appraisal Institute Oregon representative to the 2005 LDAC,the Appraisal Institute's Leadership Development&Advisory Council,Washington DC 2006 Secretary of the Greater Oregon Chapter of the Appraisal Institute 2007 Treasurer of the Greater Oregon Chapter of the Appraisal Institute Education Committee Chairman, Greater Oregon Chapter of the Appraisal Institute (2006-present) REAL ESTATE APPRAISAL& CONSULTING EXPERIENCE 2004-present: Principal Appraiser and President, Real Estate Services Group, Inc. — Providing real estate appraisal, consultation, expert witness testimony, and instructional services for private and public sector �- clients in the Pacific Northwest. 1994-2004: Senior Staff Appraiser/Staff Appraiser/Research Assistant - Moscato, Ofner & Henningsen, Inc., Portland, Oregon (Louis J. Moscato, MAI, Lawrence E. Ofner, MAI, and Scott Henningsen, MAI, Principals) — Primary duties were the appraisal of existing and proposed commercial/industrial/multifamily real estate, subdivisions, and vacant land, for private and public sector clients in the Pacific Northwest. A number of complex assignments required the coordination of engineering and legal consultants, and development pre-application conferences with planning staff of governmental agencies. The appraisals were issued as narrative reports,typically 50 to 150 pages per report. 1993-1994: Staff Appraiser - Cotton & Associates, Danville, California — Primary duties were to appraise one-to-four family residential properties as a state licensed appraiser in Contra Costa, Alameda and surrounding counties in the San Francisco Bay Area. (Charles Cotton, Certif. Gen. Appraiser,Principal) TYPES OF APPRAISAL ASSIGNMENTS Expert Witness Testimony Valuation of Estates/Fractional Interests Condemnation/Public Acquisition Review Appraisal Subdivisions Rural Land Shopping Centers/Retail Constrained Sites Industrial/Business Park Condemnation/Public Acquisition ` Office &Medical Office Buildings Commercial/Industrial Land Apartments&Condominiums Wetlands School Buildings/Churches Transitional Lands Historical/Shell Buildings Forested Lands Conservation Easements and TDRs Quarry Residential Single-Family Proposed Development Development Land Conservation Land ` Contaminated Properties Construction Defects QUALIFICATIONS STATEMENT MATTHEW LARRABEE, MARCH, MAI TEACHING& CURRICULUM DEVELOPMENT Appraisal Institute, Chicago, Illinois, 2004-present, Instructor for the Appraisal Institute. Mr. Larrabee is qualified to teach Basic Income Capitalization, Basic Appraisal Principles, Basic Appraisal Practices, Residential Highest & Best Use courses (15-39 hours each — qualifying education), and USPAP. Recent teaching of several courses for the Greater Oregon Chapter (Vicki Champ, 503.316.1979), and for the Northern California Chapter (Lisa Estes, 925.932.7753). Also organized "Measure 37, What's Happening Now,"discussion panel and"Finding Value in Green Buildings" seminar for the local chapter in 2005. Marylhurst University, Center for Professional Real Estate Studies, Marylhurst, Oregon, 9/01-present; Adjunct Instructor, B.S. undergraduate degree program for majors in Real Estate. Developed and taught RE 350E-Building Design & Construction; RE 430E-Environmental Issues and Hazards; RE 440-The Real Estate Development Process. These are accredited college courses that Mr. Larrabee teaches in an interactive online setting. Participating instructor in Measure 37 forum at Marylhurst in 2005. Portland State University,Center for Real Estate; Selected to teach Real Estate Appraisal (Finance 439) for Winter Quarter 2008. International Right of Way Association, 2006 Annual Meeting Hood River, Seminar "The Ethical Dilemma"; 2005 Annual Meeting Hood River, Oregon, Seminar instructor, Highest and Best Use in Measure 37 Appraisals; Discussion panel participant,Measure 37 from an Appraiser's Viewpoint. American College of Real Estate Appraisal, Portland, Oregon, 2002-2006, Instructor, Income Property Appraisal; Basic Appraisal; Case Studies in Income Property Appraisal (30 hours each - qualifying education); Vacant Land Appraisal; Highest & Best Use; Condemnation; USPAP Compliance Workshop; Case Studies in USPAP (7-8 hours each- continuing ed.). Mr. Larrabee teaches these courses in a classroom setting. Mt. Hood Community College, (The Center for Community & Workforce Development) Troutdale, Oregon, 1999 and 2003, Instructor, 7-hour National USPAP Update; Transitional Properties; Vacant Land; Residential Construction; Condemnation(continuing ed.). These are classroom education offerings. McKissock Real Estate Appraisal School (nationwide course provider) 2000-2003, Instructor (USPAP; Factory-built Housing; Current Issues; Vacant Land; Residential Report Writing— continuing ed.); (Illinois IL4 Income Property Appraisal — qualifying ed.); and course developer (Vacant Land Appraisal). The latter is an 8-hour seminar that has been taught by myself and others to over 2,100 students nationwide. These are classroom education offerings. COMMUNITY SERVICE &PROFESSIONAL ACTIVITIES Organized the Oregon Measure 37 Task Force for the Greater Oregon Chapter of the Appraisal Institute Testified before the Oregon House of Representatives Land Use Committee on the role of appraisers in Measure 37 claims,February 2005 Fundraiser, art literacy teacher,and Lego robotics coach for our children's elementary school Fundraising activities for St. Mary's Academy,Portland, Oregon Contributor to The Dictionary of Real Estate Appraisal,4"'Ed.,publ. Appraisal Institute, Chicago 2002 Frequent teaching of real estate and real estate appraisal classes OREGON GENERAL CERTIFICATION 0000543 t Appraiser Certification and Licensure Board '> � State Certified General Appraiser ► _ � �;;,� .�, �; 2��uurs .f.wr,fsrt,.r,��rf�ceft.¢,regur,d rur rr�re,✓ti `' License NO: t;000543 Issue mato, 11'200b Eypirat'ur=Q t ,3 2008 r } , Lafrataee Regi Estate Service,Group INC 9"a NW Jc,,AVE _�`ir'" ✓ Port•anc OR 97229 R.A.lBobl Keith,Administrator DEFINITIONS Market Value - The following definition of market value is used by agencies that regulate federally insured financial institutions in the United States: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale,the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: ■ Buyer and seller are typically motivated; ■ Both parties are well informed or well advised, and acting in what they consider their 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. L (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; 59 Federal Register 29499,June 7, 1994;Title XI of FIRREA) Fee Simple Estate - As defined in The Dictionary of Real Estate Appraisal (4`h Ed.) by the Appraisal Institute, fee simple estate is: 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. Extraordinary Assumptions/Hypothetical Conditions Extraordinary assumptions and hypothetical conditions are defined in USPAP as follows: Extraordinary Assumption:an assumption,directly related to a specific assignment,which,if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. Hypothetical Condition: that which is contrary to what exists, but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property or about conditions external to the property, such as market conditions or trends;or about the integrity of data used in an analysis. Extraordinary Assumptions and Hypothetical Conditions, if any, are stated in the Executive Summary and immediately after the conclusion of value. Exposure Period and Marketing Time Exposure time is the estimated length of time the property interest being appraised would have been offered _ on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; in other words a retrospective estimate based upon an analysis of past market conditions. r r BARBER TIMBERLAND SERVICES 3800 SW Cedar Hills Blvd. Suite 271 Beaverton, Oregon 97005 (503)939-8549 August 24,2007 Mr. Matthew Larrabee,M.Arch.,MAI Principal Appraiser Real Estate Services Group,Inc. 922 Joy Street Portland,Oregon 97229 RE: Tree Count by Caliper Diameter and Estimation of Mitigation Fee for Water District Tract in Tigard,Oregon. Dear Mr. Larrabee: Attached please find a compilation of all the 12"+ caliper diameter trees found on the Tigard Water Districts excess land at SW 103`d and SW Murdock Tigard, Oregon. A _ map of the tract showing the location of the trees is attached. The trees are located in three separate areas or stand types. Type No. 1 includes 10 scattered larger trees that are generally located in the northwest comer of the property. Type No. 2 is a 33-year-old plantation of Douglas fir and contains 161 trees that are 12"caliper diameter and larger. The last type is a right-of-way area for SW Murdock Street that contains 27 trees of various species and sizes. The balance of the area contains grass,brush and trees smaller than 12". Trees within 130 feet of the"911 Tower"were reserved and not included in the tree count. Each tree was recorded and the diameter taped at 4 feet above the ground. A stand summary for each stand is included herein. According to the Tigard tree ordinance and the city-planning department the mitigation fee is $125 per caliper inch for trees 12 inches and over when removed. From my observations of the property it is likely that all the trees in the Right-of-way would be removed if Murdock Street were extended. Most of the scattered trees in Type No. 1 would be reserved from cutting. I would further estimate that a portion of the trees in Stand No. 2 could be reserved during a hypothetical development If you have any questions on this data please contact me. Sincerely, Charles W. Barber,RPF CC:Jennifer De Gregorio,Ramis Crew Corrigan,LLP TIGARD PROPERTY TREE REMOVAL MITIGATION CALCULATIONS TYPE 1 Scattered Large Trees Mitigation Fee Total _ Caliper Diameter #of Trees Total Caliper Per Inch of Caliper Fee 13 1 13 $ 125 $ 1,625 17 1 17 $ 125 $ 2,125 23 1 23 $ 125 $ 2,875 - 24 1 24 $ 125 $ 3,000 26 2 52 $ 125 $ 6,500 31 1 31 $ 125 $ 3,875 34 2 68 $ 125 $ 8,500 35 1 35 $ 125 $ 4,375 Total for Type 1 10 $ 32,875 TYPE 2 33-Year-Old Douglas fir Plantation Mitigation Fee Total Caliper Diameter #of Trees Total Caliper Per Inch of Caliper Fee 12 44 528 $ 125 $ 66,000 13 34 442 $ 125 $ 55,250 14 27 378 $ 125 $ 47,250 - 15 17 255 $ 125 $ 31,875 16 15 240 $ 125 $ 30,000 17 13 221 $ 125 $ 27,625 18 6 108 $ 125 $ 13,500 19 3 57 $ 125 $ 7,125 20 1 20 $ 125 $ 2,500 21 1 21 $ 125 $ 2,625 _ Total for Type 2 161 $ 283,750 Road ROW ROW for Murdock Road Mitigation Fee Total Caliper Diameter #of Trees Total Caliper Per Inch of Caliper Fee - 12 2 24 $ 125 $ 3,000 13 4 52 $ 125 $ 6,500 14 1 14 $ 125 $ 1,750 15 2 30 $ 125 $ 3,750 16 5 80 $ 125 $ 10,000 17 3 51 $ 125 $ 6,375 18 1 18 $ 125 $ 2,250 _ 21 1 21 $ 125 $ 2,625 22 1 22 $ 125 $ 2,750 24 1 24 $ 125 $ 3,000 25 1 25 $ 125 $ 3,125 - 26 2 52 $ 125 $ 6,500 27 1 27 $ 125 $ 3,375 32 1 32 $ 125 $ 4,000 42 1 42 $ 125 $ 5,250 Total for Road ROW 27 $ 64,250 Pacific Northwest Title of Oregon, Inc. _ 9020 SW Washington Sq Rd Suite 220 Tigard,OR 97223 Phone:(503)671-0505 Fax:(503)643-3746 LOT BOOK SERVICE May 14,2007 Order Number:07296763-W Premium: $350 00 Property Address: 10310 SW Canterbury Lane Tigard,OR 97224 Tigard Public Works Dept 13125 SW Hall Blvd Tigard,OR 97223 Attention: Dennis Koellermeier Reference:Tigard Water District We have searched our Tract Indices as to the following described property: See Exhibit A Attached hereto and as of May 3,2007 at 5:00 p.m.we find that the last Deed of Record runs to: TIGARD WATER DISTRICT,a municipal corporation,as to Parcels 1,2 and 5, And TIGARD WATER DISTRICT,an Oregon domestic water supply corporation,as to Parcels 3 and 4 We also find the following unpaid taxes and city liens, encumbrances, judgments, and state and federal tax liens within ten years prior to effective date thereof. 1 Taxes,including the current fiscal year, not assessed due to ownership by a governmental entity. if the exempt status is terminated,an additional tax may be levied Account No 2S 111 BC-02600 Levy Code 023.74 Key No R502423 2. City liens, if any,of the City of Tigard 3 The herein described premises are within the boundaries of and subject to the statutory powers, including the power of assessment,of Clean Water Services 4 Rights of the public in and to any portion of the herein described premises lying within the boundaries of streets, roads or highways PAGE 1 of lot Book Service Report Order No 07296763-W LOT BOOK SERVICE(CONTINUED) 5.. Conditions and Restrictions,including the terms and provisions thereof,in Deed: Recorded March 16, 1979 Book 774 _ Page 11 (Affects Parcel 3) 6 Easement,including the terms and provisions thereof: _ For A perpetual right-of-way easement for public use as a road, street,or highway, including the use of same for public utility purposes Granted to The City of Tigard,a municipality of the State of Oregon Recorded October 6, 1969 _ Book 758 Page 841 Affects Northerly 25 feet of Parcel 5 within SW Canterbury Lane 7 Easement, including the terms and provisions thereof: For : A perpetual right-of-way easement for public use as a road,street, or highway, including the use of same for public utility purposes Granted to The City of Tigard,a municipality of the State of Oregon Recorded October 6, 1969 Book 758 Page 848 Affects Northerly 25 feet of Parcels 1 &4 within SW Canterbury Lane 8 Easement, including the terms and provisions thereof: For A perpetual right-of-way and easement for Street,road and utility purposes on, over,across,under,along premises Granted to Public Recorded January 25, 1975 Book 1093 Page : 582 Affects Northerly 25 feet of Parcel 4 within SW Canterbury Lane 9 For title insurance purposes in connection with transactions involving real property interests held by governmentallmunicipal corporations and non-profit organizations,we will require copies of the following: (a) Resolution authorizing the transaction,and naming party authorized to execute documents for this _ transaction. (b) Minutes of the meeting at which said resolution was passed. 10 Unrecorded leaseholds,rights of parties in possession,and security interests in trade fixtures, personal _ property or unattached improvements,if any 11 No search has been made for Financing Statements filed in the office of the Secretary of State. Exception may be taken to such matters as may be shown thereby. No liability is assumed if a Financing Statement is _ filed in the office of the County Recorder covering timber,crops,fixtures or contracts on the premises wherein the lands are described other than by metes and bounds or under the rectangular survey system or by recorded lot and block. PAGE 2 of Lot Book Service Report Order No 07296763-W LOT BOOK SERVICE(CONTINUED) NOTE: We find a Well Ownership Identification Form recorded February 22,2002 as Recording No.2002- 021421, regarding Well No. L48800 This informational note will not appear as an exception in a title insurance policy, because the recorded form is not a matter within the scope of policy coverage. (Affects Parcel 5) THIS IS NOT A TITLE REPORT, since no examination has been made of the title to the above described property. Our search for apparent encumbrances was limited to our Tract Indices, and therefor, above listings do not include additional matters which might have been disclosed by an examination of the record title. We assume no liability in connection with this Report and will not be responsible for errors or omissions therein The charge for this service will not include supplemental reports, rechecks or other services PACIFIC NORTHWEST TITLE OF OREGON, INC 4 Jim Goodbaudy Commercial Title Officer Telephone 503-671-0505, Extension 2048 Fax 503-646-2009 Email iimaood(a�pnwtor.com JLG:cee PAGE 3 of Lot Book Service Report Order No 07296763-W LOT BOOK SERVICE(CONTINUED) _ EXHIBIT A PARCEL 1: _ BEGINNING at the Northwest comer of Lot 5,TIGARDVILLE HEIGHTS a subdivision of record in Section 11, Township 2 South, Range 1 West,of the Willamette Meridian,in the City of Tigard, County of Washington and State of Oregon, running thence South 1`19'West along the West line of said subdivision 165 feet to the _ Southwest corner of Lot 5,thence East along the South line of Lot 5,a distance of 264 feet;thence North and parallel,with the West line of said lot 165 feet to the North line thereof;thence West 264 feet to the place of beginning; EXCEPTING THEREFROM the following. A tract of land situated in Section 11,Township 2 South,Range 1 West,of the Willamette Meridian and being a part of Lot 5,TIGARDVILLE HEIGHTS, Record of Townplats,in the City of Tigard,County of Washington and State of Oregon, being more particularly described as follows: BEGINNING at an iron rod in the Southerly boundary of said Lot 5,which iron rod is also the Southeast corner of that certain tract of land conveyed to the Tigard Water District as recorded in Book 276,Page 659,Deed Records, Washington County,Oregon, said Southeast corner being further described as being North 8936'East,264.00 feet from the Southwest corner of said Lot 5. From said place of beginning thence South 89036'West along said Southerly boundary of Lot 5,a distance of 50.00 feet to an iron rod;thence leaving said Southerly boundary North 10 19' East 164 80 feet to an iron rod in the Northerly boundary of said Lot 5;thence North 89°36'East along said Northerly boundary of Lot 5,a distance of 50.,00 feet to an iron rod;thence leaving said Northerly boundary of Lot 5,South 1°19'West 164.80 feet to the place of beginning PARCEL 2: _ A tract of land situated in Section 11,Township 2 South, Range 1 West,of the Willamette Meridian and being a part of Lot 6,TIGARDVILLE HEIGHTS, Record of Townplats, in the City of Tigard, County of Washington and State of Oregon, being more particularly described as follows: BEGINNING at the Northwest corner of said Lot 6,which Northwest comer is also the Southwest corner of that certain tract of land conveyed to the Tigard Water District as recorded in Book 276, Page 659, Deed Records, Washington County,Oregon. From said place of beginning thence North 89036 East along the Northerly boundary of said Lot 6,a distance of 214.00 feet to an iron rod;thence leaving said Northerly boundary of said Lot 6, South 10 19'West 52 8 feet to an iron rod;thence South 8936'West parallel with said Northerly boundary of Lot 6,a distance of 214 00 feet to the Westerly boundary of said Lot 6;thence North 10 19' East 52.8 feet to the place of beginning _ PARCEL 3: That portion of Lot 6,TIGARDVILLE HEIGHTS,in the City of Tigard, County of Washington and State of Oregon, described as follows: BEGINNING at a point South 1°19'West 52.8 feet from the Northwest corner of said Lot 6,said point being the Southwest corner of the Tigard Water District tract as described in deed recorded October 30, 1967,in Book 666, Page 423,Records of Washington County,Oregon; thence North 89036'East 214.00 feet to the Southeast corner of said District tract;thence South 1°19'West 33 0 feet to a point;thence South 89036'West parallel with the Northerly line of said Lot 6 a distance of 214 00 feet to the West line of said Lot 6; thence North 1°19'East 33 0 feet to the point of beginning _ PAGE 2 of Lo!Bonk Service Report Order No 07296763-W LOT BOOK SERVICE(CONTINUED) PARCEL 4: BEGINNING at the Southwest corner of Lot 7,TIGARDVILLE HEIGHTS,in Section 11,Township 2 South,Range 1 West,of the Willamette Meridian, in the City of Tigard,County of Washington and State of Oregon;thence North along the West line of said Lot 7 and Lot 6 of TIGARDVILLE HEIGHTS to a point which is the Southwest comer of that parcel of land deeded to Tigard Water District recorded March 16, 1970, Book 774, Page 11, Records of Washington County,Oregon;thence North 89036'East 214.00 feet to the Southeast corner of said District tract; thence North 01 1 19'East along the East line of said District tract and an extension thereof to a point on the North Fine of Lot 5 in said TIGARDVILLE HEIGHTS,said point also being on the centerline of that street dedicated to the public in Book 758, Page 848;thence along the centerline of said street East 50 feet to a point which is North 89°33'East(Plat North 89°38' East)264 feet from the Northwest corner of said Lot 5 TIGARDVILLE;thence South 01°19'West parallel with said Westerly boundary of Lot 5 to a point in the center of Southwest Murdock Street; thence West along the center of Southwest Murdock Street to the point of beginning. PARCEL 5: BEGINNING at the Southeast corner of Lot 7, TIGARDVILLE HEIGHTS,a Plat of record in Section 11,Township 2 South, Range 1 West,of the Willamette Meridian,in the City of Tigard, County of Washington and State of Oregon;thence West,along the South line of said Lot 7,a distance of 297.66 feet, to the Southeast corner of that parcel of land conveyed to Tigard Water District, recorded August 14, 1973, in Book 932,Page 281, Records of Washington County,Oregon,re-recorded September 18, 1973 in Book 945, Page 398,said Records; thence North 01°19' East, 346.70 feet,along the East boundary of said parcel,to a point which is South 01°19'West, 11 feet,from the Southwest corner of that parcel of[and described in Book 529, Page 452, Deed Records of Washington County;thence North 89033'East, parallel with the Southerly line of said parcel, 136 66 feet,thence North 01°19'East, 148 30 feet, to the North line of Lot 5,TIGARDVILLE HEIGHTS,said point also being the center line of that street dedicated to the public in Book 758, Page 841;thence North 89033'East, 161.00 feet, along said North fine of Lot 5,to the Northeast comer of said Lot 5;thence South 01°19'West,along the East line of lots 5,6,and 7,a distance of 503 58 feet,to the point of beginning PAGE 3 of Lot Book Service Report Order No 07296763-W C9 NI./1 t 43 AC a4A4 - tA4 AQ .. � •.a : .-1 .' Aat•.p. .WT+� �bRC ,rtim• I', ryry �I�� t • � �" if aa� aMw 3540 3400 A 3300 .. .. AOAc f 7 A f e til» ' y'-, 1700 7 taw �� a 3200 g t 2 a nca l \ 0 9 1400 17 ta7u — SW VIEW TFR ACE s s SW VI TERRACE . -----"— "— 2800 1300 g 3 3700 3a0D q A4 AC 3f00 4 S 2300 $ 200 6 5 = - 3 Z 2 5 moa a C2 noo ` 12005 g tf A7n - _ m 3 ---_ --- _—film —�....- =.� a 14 f00 $00 .'••, �'•.' 900 = exp 700 35 AC 35A A3AG 3 34iAG � 3a M ° y ;.. SW .IN E2 RE&- lip y4700 t — NA (� 2300 S =0 2000 20 A41M 99A 11DI NE,,� SW ° CANTE .tea —i_,�I+JE �40�0 naa 23—M n - 4400 ;.•� m. . � as.a�ia[ �RACT moi{" pla° Bv• 1$..12 � q 3su �. b 1 +'` ♦,�; .».» 2303 a • gn n, .wu __77 O I -- � g nY 21 5. 4300 4200 410 f -•� —_...A!N3..._-- y800 wawa fp '�''•`, �— Or600 1 4500 9 8 1 7 aw 2503 23 rJ 2544 2541 "I AC 2A7?1C q � e re ! C 9 I .7 % -174'd`�O t�i� anm As'ataw �, EET w yo 4113 +rj wt (�}V ll v i.�-„ u , .. ...:. .. o\�\ N01{IH s.N } a•.f,4441, I .tsri.rs _ f� , - - xos�'u°O+Yt: wn Luin�lt i��• m. 5.• - .••�„�.� ..21 :tl'E.�. g ''. Yx4iW "' "`° mo°' ,•nm -,,Z a ® ..,.^ •ll.'t' . t' >A aaena .3f?c �0 A[" [. .3nAC •1 t .,M1..• ' ," Cj THIS MAP IS FURNISHED AS A CONVENIENCE BY PACIFIC NORTHWEST TITLE M This map is not a survey and does not show the location of any improvements The company assumes no liability for errors therein MAP#25111 BC 02600 -0,4/25/2001 17 :43 5835822443 HQUSTONS PAS 92 LEASE AGREEMEWT This lease is made and, executed on f 1979, by and between TTGARD WATER DISTRICT, of 8841 S. W. Cor�eraial Street, Tigard, Oregon 97223, telephone nuraler 543-639--1554, here- inafter called "Lessor" , TIGARD AREA alsTORICAL AND pRESERVAT'InN ASSOCIATION, of 2042 S. W. Custer Street, Portland, Oregon 97219, hereinafter called "Lessee", and OREGON MTSTQRICAL SOCIETY, of 1.230 S. W. ?ark Avenue, Portland,`Orregori. 97205, tWiephone number 503-'222--1741., hereinafter called °Guarantor"; and WHEREAS, Lessee wishes to lease from Lessor the demised premises, hereinafter described, for the purpose of locating and restoring the John Tigard House thereon and holding the same open to the public as a historic home; and TIH REAS, Lessor wishes to lease the same to Lessee for the above stated purpose and fox no other purpose; and WHEREAS, Guarantor, in a mutual effort with Lessee, wishes to preserve and protect Uie John Tigard House for the en- joyment. of !`uture generations and to induce Lessor to lease the demised premises to Lessee; t10W, MEREEORE, in consideration of the covenants and considerations herein contained, ,it is hereby agreed: x Lessor Leases to Lessee and Lessee hires from Lessor, for the purpose of locating and restoring the John 'Tigard House and holding the same open to the public as a historic home, and far no other purpose, that certain premises with appurtenances, situated in the City of Tigard, County of Washington, State of Oregon, and zrkore particularly described in the schedule attached hereto, marked 1'txhibit A" , (hereinafter referred to as the "demised premises") and by this reference :rade a part hereof. IT The initial team of this lease shall he for one year, commencing on the date bereo=, subject to renewal as hereinafter Provided. ZZI The total rent per year shall be $1.00, which Lessee shall pay to Lesson, without deduction or offset, at Lessor's address set forth above. n- i _ 7n7%Cr. Tnnr r,hRAtm ,04!25!2021 11:43 5035822443 HOUSTONS PAGE 03 IV — Lessor covenants that Lacsor owns the demise, premises in fee simple and has full right to make this lease and that Lessee shall have quiet and peaceful possession of the demised — premises during the term hereof. V — Lessee shall not use or •permit the demised premises, or any part thereof, to be used for any purpose or purposen, oth- er than the purpose or purpose's 'for which the demised premises are hereby leased. VI During the term of this lease, Lessee sLall comply with all applicable laws affecting the demised premises and the John Tigard Douse, the breach of which might result in any penalty on _ Lessor or forfeiture of Lessor's title to the demised premises. Lessee shall not commit, or suffer to be committed, any waste on the demised premises, or any nuisance. V11 Lessee shall permit Lessor and the agents and employees of Lessor to enter into and upon the demised premises and the — John Tigard House at all reasonable times for the purpose of in- specting the same, or for the purpose of posting notices of non- responsibility for alterations, additions or repairs, without any rebate of rent and without any liability to Lessee for any loss of occupancy or quiet enjoymiaant of the demised premises thereby occasioned. Vill - Lessee may encumber by mortgage or deed of trust, or other proper instrument, its leasehold interest and estate in the — demised premises together with all buildings and improvements placed by LQssee thereon, as security for any indebtedness of Lessee. If Lessee shall encumber its leasehold interest and es- tate in the demised premises and if Lessee or the holder of the — indebtedness secured by such enewabrance shall give notice to Lessor of the existence thereof and the address of such holder, then Lessor will mail or deliver to such holder, at such address , a duplicate copy of all notices in writing which Lessor may, from time to time, gave to or serve on Lessee under and pursuant to the terms and provisions hereof. IX — Because this lease is personal between Lessee and Les- sor, Lessee may not sublet the demised premises in whold or in — r,�,.,, 7 .. r.cTCF nr_u�rrrrF�rr D4/25/2001 11:43 5035822443 HOUSTONS PAGE 04 Part Without Lessor`s prior written Consent, but the making of any such sublease shall lot release Lessee or grantor from, or otherwise affect in anY manner, any of Lessee's or Guarantor's obligations hereunder. Lessee shall not assign or transfer this lease, or any interest herein, without the prior written, consent of Lessor. and a consent to an assignment shall not be,deemed to be a consent to any subsequent assi9nmen,t, Any such assignment without sUch consent shall be void, and shall, at the aptio�} o£ Lessor, terminate this lease. The damage, des building or other itruction, or partial. destruction of any Of the demised premisss4svement which is a part or to become a part shall not release Lessee from any obliga- tion hereunder and, -in the case of damage to or destruction of any such building or improvement, at its option Lessee shall., at its °wn expense, promptly repair and restore the same to a condi- tion as good or better than that which existed prior to such dam- age or destruction, or alternatively, terminate the lease. X Lessee shall keep the demised premises and all build- ings and Other 'improvements at any time located thereon, free and clear of any and all mechanic's, materi.alman's, and other liens, for or arising out, of or in connection with work or Labor done, services Performed, or materials or appliances used or furnished for or in connection with any operations of Lessee, any altera- tion., improvement, or repairs or additions which Lessee may wake or permit or cause to be made, or any work or Construction, by, ,for, or permitted by Lessee on or about the premises, or any .ob- ligations of any kind incurred by Lessee, and that at all times Promptly and fully to ,pay and discharge any and all claims on Which any such lien, may or could be based, ' and to indemnify Lee- sax and all. of the demised premises and aII buildings and imprQve- ments thereon against all such liens and claims of liens and suits or for other proceedings pertaining thereto. Xl. Lessor shall not he liable for any loss, injury, death, or damage to persons or property which at any time may be suf- fered or sustained by Lessee or by any person whosoever may at any time be using or .occupying or visiting the demised premises ox the John Tigard House, whether such loss, injury, death, or danage shall, be caused by or in any way result from or arise out of any aetr oMiSSion, or negligence of Lessee or any occupant, subtenant, visitor, or user of any portion of the demised prem- ises or the John Tigard House, or shall result from or be caused by any other matter or thing whether of the same kind as or of a different kind from the matters or things above set forth, and Lessee shall indemnify Lessor against all claims, liabilities, loss or damage whatsoever, on account of any such loss, injury, P4/25/2001 11:43 5035822443 HQU5TONS PAGE 05 1 death or damage. Lessee hereby waives ali claims against T,essoz - faz damages to the building and imgroveraents that are now or her placed or built on the demised premises and to the property Of Lessee in, on or about the demised premises or the Joan Tigard TIOUSe, and for injuries to persons or property in or about the de- - mised premises or the John Tigard Rouse, from any cause arising at any tip. The two Preceding sentences shall not apply to loss, injary, death or damage arising by reason of the negligence . misconduct of Lessor, its agents or employees. or - XTI If any action at law or in equity shall be brought to recover any rent under this lease, or for or on account of any breach of, or to enforce or interpret any of the covenants, terms or conditions of this Tease, or for the recovery of the - possession of the demised premises, the prevailing party shall be entitled to recover from the other party as part of the pre- vailimg party's costs reasonable attorneys' tees, the amount of shall be fixed by the court and shall be made a part of any judgment or decree rendered. XTIT Lessor grants to Lessee, subject to the Conditions set forth below, the right and option to renew this lease i.ndefi,nite- lY for additional terms of one year each at the same rental as provided above and otherwise subject to and on all of thh terms and conditions herein contained; provided, however, that Lessor may terminate this renewal, option, at any time upon one year's written notice. As each such option may be exercised, Guaran- tor's obligations 'herein contained likewise continues. XIV .Lessee shall pay the rent and all other sums -r-equired to be paid by Lessee hereunder in the amounts, at the times, and in the Manner herein provided, and shall keep and perform all of the terns and conditions hereof on its Part to be kept and per- formed and, at the expiration or sooner termination, of this lease, Peaceably and quietly surrender to Lessor the demised premises in a condition as good as or better than that which existed prior to this lease. - XtT' Lessee shall maintain in effect through the term of this lease personal injury liability insurance covering the de- mised premises and the John Tigard House and its appurtenances and the sidewalks fronting thereon in the amount of $300,000 per - injury to or death of any one person, and $300,000 for injury to or death of any number of persons in one occurrence, and property T.Fh CF 7%(`Dt't1RTa.�*n •04/25/2001 11:43 5035822443 HSUSTUNS PAGE 05 damage liability insurance in the amountof $300,000. Such insur- ance shall insure both Lessor and Lessee. XV1 In the event of any breach of Chia lease by Lessee Which is not remedied within 30 days after notice thereof is giv- en by Lessor to Lessee, Lessor may terminate this lease and shall have the itmuediate right 4f re-entry and :nay remove all persons and property from the demised premises,- such property may be re- moved at the cost of, and for the account of, Lessee, xvxr In addition to Lessee's duties, Obligations and respon- sibilities hereirl�efore described, Lessee, at its sole expense, shall be. responsihle for obtaining a conditional use permit from the City of Tigard, COunty of Washin ton State of Ore on, ant to the City's letter to Lessee dated March 12, 1979, a pursu- ant of which is attached hereto and marked "Exhibit B" , and by this reference made a part hereof. XV111 The John Tigard House to be located an the demised prem- ises shall be and remain the property of Lessee. - At the expira- tion or sooner tez-minati.on of this lease, Lessee shall remove the John Tigard House from the demised premises. XIX Guarantor hereby makes the guarantees set .forth' in that -- certain l.ettor from Guarantor to Lessor and dated February 9, 1979, a copy of which is attached hereto, 'marked "Exhibit C", and by this reference made a part hereof. IN WITNESS WHEREOF, the parties hereto have executed this lease in txfplieate on the lo5t-t day of 1979. TIGARD WATER DISTRICT s By T IGARD ARF,A HISTORICAL AND PRESERVATION ASSOCIATION BY OREGON ORICAL SOCI Paae 5 - LEASE AGREEMENT X4/2.5/2003 11:43 5035822443 HOUSTONS PAGE 07 TIGARDWATER DISTRICT _8e41a. w_rMMMCRC,,Lo- sr. Y"'ARD. 06MUMN 9722a PHDN� +SOS) b39 !!S4 LEGAL DESCRIPTION Site for.aohn Tigard house — Beginning at a point 25 feet south and 25 feet- west — of the Northeast corner of Lot 5, TICARDVILLE HEIGHTS, a plat of record in Section 11, Township 2 South, Range 1 — West, Willamette Meridian, •Washington County, Oregon; thence south 100 feet; thence west 136 feet to the eaut line of that parcel of land described xn Book 529, Page 452, Deed Records of Washington County; thence North 01° 19' East, along said east line, 100 feet to the south. bdundary line of S. W. Canterbury Lane; thence North 89° 33' East, along said south boundary line of S. W. — Canterbury Lane, 1.36 feet to the point of beginning; containing 0,31 acres, PROFS: - C�� I]NC �. 7.149 o x sell ,t4. Exhibit "A" .04/25/2001 11:43 5035822443 HDUSTONS PASS 08 r CITY OF TIGARD P.O.Box 23397 124M S.W.Main Tigard,Oregon 97223 — March 22, 1979 Tigard.Area Elf-storical s presetvatibn A.9sociation 2042 s-w. Custer Street Portland, Oregon 97219 CU 3-79 - Crohn Tigard Bone �a 14h0m Yt Play concern: Please be advised that the Tigard Planning Cession at their reguLxr meeting of M=ch 6, 1979, approved your request fora conditional use permit for the-above referenced project_ This approval is subject to the following conditions. I. That the-_approval of the canditianal use he subject to the approval of the minor lend-p&rtiti.on if found to be appl3c�hle — by the applicant's and land owner's attouseys. 2. That this be -resolved between staff and the applicant so far as appropriate number of Accesses--whatever in reasonably _ POSSial.e in view of the special nature of the building. 3. That ha£ street improvements be made along B.W. Canterbury Lane to City local street standards prior to final building inspection. 4. That five feet of right-of-way be dedicated 'kith half street improvele-hts to City standards along S.W. 103rd p-ri.or to final building inspection. 5. That all utilities be subsurface and street lights provided. 6. utilities be installed prior to final building inspection. 7. That the fire marshall approve site and building prior to final building inspection. S. That construction and drainage and sewage drainage plans be sub- Witted and approved by the City's building and engineering dePaxtments with necessary bonds prior to final building inspection_ Exhibit "B" e4/25/2001 11:43 5035822443 H1YJSTONS PA E. 09 .TORN •xIGMZD HOME — CU 9-79 Marcb 12, 1979 Page 2 9. That •landscaping plan and emplacement be ,approved prior to final building inspection. The conditional use pezmit shall expire in one year from the date of approval, if the use has not begun and continudZ progress towards its full operation is not in evidence. If we can be of ,any further assistance, please do not hesitate to contact this office at 639-4171. Sincerely" Ken Selby 1ssaciate City Planner KS:db Cc: Bob Santee Tigard water District Note: The following acknowledgement =st be received.by the City of Tigard within fourteen (14) days of ,your receipt of this Letter. Failure to return this acknowledgement may result in action by the City of Tigard. — I hereby acknowledge this letter documenting the action of the Tigazd Planning Commission. I have received and read this letter, and I agree to — the decision here do�$nted and to abide by any terms and/or conditions attached_ Signature (applicant) gate Signature (owner) Late — ,04/25/2001 11:43 5035822443 HOUSTONS PAGE 10 Oregon Historical Society 1230 S-W. Park Avenue-Portland,Oregon 97205 (503)222-1741 •Cable:Histore THOMAS VAtlGHAN gWutiva Director. Editor-In-Ghimf Oregunliistnric4lQuariarly February 9, 1979 Tigard slater District Tigard, Oregon 97223 Gentlemen: Please be advised by this letter that the Oregon Historical Society will undertake to act as guarantor i.n the matter of the John Tigard House project undertaker .by the Tigard Area Historical and Preservation Association and subject to the approval of the State Historic Preservation Office of Oregon. By acting as guarantor the Oregon Historical Society accepts the responsibility of the ultimate disposition of the John Tigard House should. the Tigard Area Historical and Preservation Society be dissolved or be otherwise unable to perform its stated function with regard to the John Tigard Rouse. The assumption of this responsiblity protects the Tigard Water District from liability for the project in any way including upkeep Of the property. The Society will oversee return of the property to the Tigard Dater District should he project be concluded. Sirs ely, i;Aa9 xe cutive Director With which are now incorporated The Hatties Np Oregon Museum.Orcmcn Geographic Names Board, Oragcm Landmarks Comniittee.Oregon bawis and(lark Trail Heritage Foundation Commtuse, North Pacific(Irkut::k)Archival Research Group Exhibit c Revised 4/11/07 INTERGOVERNMENTAL WATER BOARD RESOLUTION NO.07- D 2— A RESOLUTION OF THE INTERGOVERNMENTAL WATER BOARD (IWB) REC0_AQAENDLNG TO THE TIGARD CITY COUNCIL THAT A PORTION OF THE CANTERBURY PROPERTY BE DECLARED SURPLUS AND ADDRESSING OTHER — __----iSSL'ES BELATED TO-THE DISPOSITION—OF-THE-PROPERTY — WHEREAS,a portion of the water facility known as the "Canterbury property" is not being used for water operations;and WHEREAS,the IWB has determined that potential future water system expansion/improvements on the unused property can be preserved by retaking an water easement on the southeast comer of the parcel;and — WI-MREAS, the City of Tigard has expressed an interest in purchasing the unused portion of the property in order to develop a park on the site;and — WHEREAS,the Tigard Water District (MD),owner of record for the Canterbury property,has authorized the sale of the property,at not less than the appraised value,to the City of Tigard for the purpose of constructing a park;and WHEREAS,the IWrB serves an advisory role to the Tigard City Council;and — WHEREAS,the JWB has identified several conditions related to the disposition of the unused Canterbury property. — NOW,TMEREFORE,BE IT RESOLVED by the Intergovernmental Water Board as follows: — SECTION 1: The Canterbury property,located at 10310 SW Canterbury Lane,Tigard,Oregon, (2S 11 1BCO26000), shall be partitioned,generally as depicted on the attached map — (Exhibit 1).That portion of the site after partitioning(hereafter,"the Property")that is not retained in fee for waxer system use shall be offered for sale as provided for in this Resolution. — SECI"ION 2: The IWB recommends to the Tigard City Council that the Property,generally as depicted on the attached snap (Exhibit 1),be declared surplus in accordance with _ City of Tigard surplus property procedures, Intergovernmental Water Board RESOLUTION NO.0702— Page I of 2 SECTION 3: In any conveyance of the Property to any person the grantor(s) shall reserve not less than a 50-foot by 50-foot easement for future water system use in the southeast corner of the property,generally as depicted on the attached map (Exhibit 1),and a conservation easement for the area now leased to the Tigard Area Historical and Preservation Association,the easement to be limited to the sole use of maintenance of the historical John Tigard House and no other purpose. SECTION 4: The City of Tigard at its initiative and expense may conduct an independent appraisal and title search of the portion of the property that is offered for sale. The property shall be offered for sale at its fair market value as determined by the appraisal or by any commercially reasonable means. SECTION 5: The City of Tigard shall have the right of first refusal on reasonable terms,including a reasonable time limit within which the option must be irrevocably exercised,to purchase the unused portion of the Canterbury property at the appraised price, The _ appraisal shall reflect the value of the reserved easements as described in this Resolution as offsets to the present market value of the Property. SECITON b: Any proceeds from the sale of the Property shall be credited to the Water Capital Improvement Project Fund SECTION 7: The resolution is effective immediately upon passage. PASSED: This+��day of 2047. AN Bill Scheiderich,Presid Intergovernmental Water Board ATTEST: Greer Gaston,IWB Recorder Intergovernmental Water Board RESOLUTION NO.07-U,7 Page 2 of 2 _ Exhibit 1 b G G u 4 _ UGUU U G u <J G {J U O U j 4 a G G Q 1 aG4U a a � 4 o tJ G z'a UU 4Go{J +(J a U a G _ (J GGU 4 Ga +uGa U a u a a G {J u U G G U 4 G G u a G t 0', a Gu GL U Gtr 4 Go 4 Ga(� G4 U Ga 4 aGaa a s aGVa 4 4 <,G4a QU' 4G4(, a G Ga G v iJ CJ G 4 G /��} {� LUG u4V��JU ubG {r CJ °oG G G •Y u V a 4 4a 4 v Gu V a 4 Ga U a et a 4 KJ CJ V y�.�J U 4 4 < C! 4 o G V > Ga 40< Va 'Gu KJ vu aGuG Gu °E+a 4 UGu4 a t, 4 U 4 U tG44 , a 400 4) v Ga V ♦1a(J 4< V <` 0 V G ° aJ (� G KJ a u 4Ci GWG G a a {G u o uG t G G u u J 4 U G a ° G G u Ea u 4 G G v u u G G u u u G G Gv a{Jv Kr {'u u G4 Kr {'a v 4v G Qa a Gu }� U U U uGua a u u041u a 'V 40up a GU41 KJ 4 <j KJu G u 4 G G G G 4 U (J U u 44C6r. u a avUv GGu U UGe 103rd Ave CL c°> — �-Z mmaarol, 9EF RmEROmE _�R6WENtt "cc x ra mlp wRaxu soups Aml _ WASHINGTON COUNTY a , vouaaa au,raw _ CONSOU0.47FD COMM NIG110N5 AGEM.Y P.O. BOX 6375 amvam aelt.Dort a wprosm baF exec[ Awyi�:,mj rr(p'°x' BEAVERTON, OREGON 97006 ua m.R Arm wR An r9aosio wa°xnE Sex waermr. x vaovam tano-nvAer.Ro Em.rarx sx¢Ra 9 vmvmm aroai AwrtxrWs ..Rxx�m. Aro xn uwmrAnm:sm Tura v+EEx�- __ ucaoxA.E aarF s¢Etm'Atw1 Ae9 vxaom9 wrxm am xmo mea aWa xuo eAeaFn Avg acooxx mum nuemmF wi xmM 9R aro w=<ALL A,xE1N.�� mI amamm Mm°mmMm xEF m 9s w,a D A ammx xo Fmr a T— .xmovK KEY NOTE LEGEND ... ........ ._... IQ1'NOTE IECENO,._..., ....._.. ._.. _.... _... xo-mot a,o-rta �� p oax w1EM°, »xae we.esx: Axu1u1N 9is.3! ° 12AvorE wx m. y11r11_I a mca [um. II LEGACY m �JY ;� ex9 fro. II tI 9ra•.e,q9x 1 Atlutme ilt.e J "/, �j ° LEGACY WIRELESS SE CES o x �U�• ��1 MSLWSUHME sIEOREGON27222 �aco-.awu w.mcxa4. •w,(JMi) td II- Yd •-p J� e xl, nuA o x�co eu wic[ ( ) II, i.�wi mo ax vORE x"(,w) ^>� �.cll(,? �.3�r-y S� > `:; • ��1•I�+'^Jc'�,U,., "yy4J�� n.uowum rr[m. rv� 77 roslmA ��yk "� �s;r" 'iri��..1 • =y;a��r"' .. 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