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2024-09-03 I01G_04 AP North LC DA_Certification of Approved Costs
AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: September 3, 2024 AGENDA ITEM:Consideration of approval of a resolution accepting Development Agreement Developer Certification of Approved Costs for AP North, L.C. FORMAT:Consent Agenda SYNOPSIS INCLUDING PRO & CON: The development agreement between the City and AP North, L.C. includes 50 acres of new commercial development and public improvements in the Kettlestone development. Public improvements completed per the agreement involved the design and construction of a regional storm water detention pond to serve new commercial and UnityPoint Medical Park. The pond will be dedicated to the City as public infrastructure. Receipts and invoices for the public improvement costs are included, per the development agreement. Total costs submitted $2.2M. Per the agreement, the maximum grant amount cannot exceed $2M. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: Regional storm water pond was needed to new commercial development including UnityPoint Medical Park. The investment in infrastructure will result in $20+M of new commercial. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve Resolution ATTACHMENTS: I. Resolution PREPARED BY: Jennifer Brown, Director of Economic Development REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: I1G4 THE CITY OF WAUKEE, IOWA RESOLUTION 2024 APPROVING RESOLUTION ACCEPTING DEVELOPER CERTIFICATION OF APPROVED COSTS [AP NORTH, L.C.] IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal Organization; AND, WHEREAS, on July 10, 2023, the Waukee City Council approved a Development Agreement by and among the City of Waukee and AP North, L.C. (Resolution #2023-286); AND, WHEREAS, pursuant to the terms of the Development Agreement, the Developer is obligated to submit expenses incurred for Public Improvements as defined within the Development Agreement; AND, WHEREAS, the Developer has submitted documentation of costs totaling $2,216,910 to the City demonstrating that they have met and are in compliance with the Development Agreement; AND, NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council that the Developer Certification of Approved Costs [AP North, L.C.], is hereby accepted and that the Mayor is authorized to execute the same on behalf of the City. BE IT FURTHER RESOLVED that the City Clerk is directed to record the executed Developer Certification of Approved Costs, with the County Recorder of Dallas County. Passed by the City Council of the City of Waukee, Iowa, and approved this the 3rd day of September 2024. ____________________________ Courtney Clarke, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN R. Charles Bottenberg Chris Crone Rob Grove Anna Bergman Pierce Ben Sinclair AP North, LC Ashworth North Plat 3 Lot B 2/27/2024 Pond Construction Summary McAninch Original Contract 1,394,000$ General Conditions 18,000$ Tree Cutting 16,000$ Earthwork 340,000$ Utlities 614,000$ Weir Wall 236,000$ Paving 90,000$ Erosion Control 80,000$ CO #1 - Storm Sewer 68,027$ CO #2 - Additional Sidewalk 35,203$ City Of Waukee 4,186$ Allender Butzke Engineers 8,468$ Civil Engineering Consultants 39,535$ Forested Wetland Mitigation 16,800$ Stream Mitigation 67,690$ Land Value (5.3 acres @ $110,000/acre) 583,000$ Total Costs 2,216,910$ Note: McAninch's cost breakdown, mitigation contracts, soft cost invoices and land appraisal are included. Invoice Summary Invoice No Supplier Invoice Date Property Invoice Amount INV03910 City of Waukee 01/19/2023 AP North, LC; Ashworth North (apnf001) 585.90 INV03933 City of Waukee 01/19/2023 AP North, LC; Ashworth North (apnf001) 390.60 INV03908 City of Waukee 01/19/2023 AP North, LC; Ashworth North (apnf001) 779.00 INV03943 City of Waukee 01/20/2023 AP North, LC; Ashworth North (apnf001) 1,040.00 INV04086 City of Waukee 04/01/2023 AP North, LC; Ashworth North (apnf001) 318.15 INV04075 City of Waukee 04/01/2023 AP North, LC; Ashworth North (apnf001) 195.30 INV04735 City of Waukee 08/07/2023 AP North, LC; Ashworth North (apnf001) 208.00 INV04962 City of Waukee 10/23/2023 AP North, LC; Ashworth North (apnf001) 157.50 INV05103 City of Waukee 12/01/2023 AP North, LC; Ashworth North (apnf001) 511.88 Total: 4,186.33 Invoice Summary Invoice No Supplier Invoice Date Property Invoice Amount 235111F1 Allender Butzke Engineers Inc 08/01/2023 AP North, LC; Ashworth North (apnf001) 771.80 235111F2 Allender Butzke Engineers Inc 09/01/2023 AP North, LC; Ashworth North (apnf001) 589.10 235111F3 Allender Butzke Engineers Inc 09/01/2023 AP North, LC; Ashworth North (apnf001) 470.10 235111F4 Allender Butzke Engineers Inc 09/01/2023 AP North, LC; Ashworth North (apnf001) 1,581.50 235111F5 Allender Butzke Engineers Inc 09/01/2023 AP North, LC; Ashworth North (apnf001) 856.90 235111F6 Allender Butzke Engineers Inc 09/06/2023 AP North, LC; Ashworth North (apnf001) 372.30 235111SP1 Allender Butzke Engineers Inc 09/07/2023 AP North, LC; Ashworth North (apnf001) 401.30 235111F7 Allender Butzke Engineers Inc 09/12/2023 AP North, LC; Ashworth North (apnf001) 338.30 235111SP2 Allender Butzke Engineers Inc 09/27/2023 AP North, LC; Ashworth North (apnf001) 401.30 235111C1 Allender Butzke Engineers Inc 10/10/2023 AP North, LC; Ashworth North (apnf001) 487.60 235111C2 Allender Butzke Engineers Inc 10/16/2023 AP North, LC; Ashworth North (apnf001) 450.60 235111C3 Allender Butzke Engineers Inc 10/23/2023 AP North, LC; Ashworth North (apnf001) 450.60 235111C4 Allender Butzke Engineers Inc 12/04/2023 AP North, LC; Ashworth North (apnf001) 487.60 235111C5 Allender Butzke Engineers Inc 12/18/2023 AP North, LC; Ashworth North (apnf001) 809.39 Total: 8,468.39 ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111F1 RE:Density Testing Compacted Fills INVOICE DATE:8/1/2023 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 2.0 hrs $74.00 /Hour $148.00 Transportation Charges 20.0 miles $0.89 /Mile $17.80 Standard Proctor (ASTM D698)3.0 tests $202.00 /Test $606.00 Total Due $771.80 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE INVOICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111F2 RE:Density Testing Compacted Fills INVOICE DATE:8/8/2023 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 4.0 hrs $74.00 /Hour $296.00 Transportation Charges 40.0 miles $0.89 /Mile $35.60 Nuclear moisture/density gauge(1-10)10.0 tests $17.00 /Test $170.00 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Total Due $589.10 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE INVOICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111F3 RE:Density Testing Compacted Fills INVOICE DATE:8/15/2023 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 4.0 hrs $74.00 /Hour $296.00 Transportation Charges 40.0 miles $0.89 /Mile $35.60 Nuclear moisture/density gauge(11-13)3.0 tests $17.00 /Test $51.00 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Total Due $470.10 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE INVOICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111F4 RE:Density Testing Compacted Fills INVOICE DATE:8/22/2023 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 9.5 hrs $74.00 /Hour $703.00 Technician III Overtime Rate 0.5 hrs $111.00 /Hour $55.50 Transportation Charges 100.0 miles $0.89 /Mile $89.00 Nuclear moisture/density gauge(14-34)21.0 tests $17.00 /Test $357.00 Engineering Review & Report Preparation 1.0 hrs $175.00 /Hour $175.00 Standard Proctor (ASTM D698)1.0 tests $202.00 /Test $202.00 Total Due $1,581.50 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE INVOICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111F5 RE:Density Testing Compacted Fills INVOICE DATE:8/29/2023 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 6.0 hrs $74.00 /Hour $444.00 Transportation Charges 60.0 miles $0.89 /Mile $53.40 Nuclear moisture/density gauge(35-50)16.0 tests $17.00 /Test $272.00 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Total Due $856.90 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE INVOICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111F6 RE:Density Testing Compacted Fills INVOICE DATE:9/6/2023 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 2.0 hrs $74.00 /Hour $148.00 Transportation Charges 20.0 miles $0.89 /Mile $17.80 Nuclear moisture/density gauge(51-57)7.0 tests $17.00 /Test $119.00 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Total Due $372.30 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE INVOICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111SP1 RE:Special Inspections INVOICE DATE:9/7/2023 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Staff Engineer III 2.0 hrs $148.00 /Hour $296.00 Transportation Charges 20.0 miles $0.89 /Mile $17.80 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Engineering Consultation: 8/28/2023 Total Due $401.30 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. INVOICE When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111F7 RE:Density Testing Compacted Fills INVOICE DATE:9/12/2023 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 2.0 hrs $74.00 /Hour $148.00 Transportation Charges 20.0 miles $0.89 /Mile $17.80 Nuclear moisture/density gauge(58-62)5.0 tests $17.00 /Test $85.00 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Total Due $338.30 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE INVOICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111SP2 RE:Special Inspections INVOICE DATE:9/27/2023 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Staff Engineer III 2.0 hrs $148.00 /Hour $296.00 Transportation Charges 20.0 miles $0.89 /Mile $17.80 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Engineering Consultation: 9/11/2023 Total Due $401.30 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. INVOICE When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111C1 RE:Concrete Observations INVOICE DATE:10/10/23 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 2.0 hrs $74.00 /Hour $148.00 Technician III Overtime Rate 1.0 hrs $111.00 /Hour $111.00 Transportation Charges 40.0 miles $0.89 /Mile $35.60 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Compressive Strength of Cylinder ASTM C39 (set of 3)4.0 tests $22.80 /Test $91.20 Disposable cylinder molds 4.0 ea $3.34 /Ea.$13.36 Tax on disposable cylinder molds 4.0 ea $0.234 /Ea.$0.94 Invoice for Concrete Cylinder Set Numbers: 86223 Total Due $487.60 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. INVOICE PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111C2 RE:Concrete Observations INVOICE DATE:10/16/23 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 3.0 hrs $74.00 /Hour $222.00 Transportation Charges 40.0 miles $0.89 /Mile $35.60 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Compressive Strength of Cylinder ASTM C39 (set of 3)4.0 tests $22.80 /Test $91.20 Disposable cylinder molds 4.0 ea $3.34 /Ea.$13.36 Tax on disposable cylinder molds 4.0 ea $0.234 /Ea.$0.94 Invoice for Concrete Cylinder Set Numbers: 86520 Total Due $450.60 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. INVOICE PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111C3 RE:Concrete Observations INVOICE DATE:10/23/23 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 3.0 hrs $74.00 /Hour $222.00 Transportation Charges 40.0 miles $0.89 /Mile $35.60 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Compressive Strength of Cylinder ASTM C39 (set of 3)4.0 tests $22.80 /Test $91.20 Disposable cylinder molds 4.0 ea $3.34 /Ea.$13.36 Tax on disposable cylinder molds 4.0 ea $0.234 /Ea.$0.94 Invoice for Concrete Cylinder Set Numbers: 86661 Total Due $450.60 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. INVOICE PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111C4 RE:Concrete Observations INVOICE DATE:12/4/23 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 2.0 hrs $74.00 /Hour $148.00 Technician III Overtime Rate 1.0 hrs $111.00 /Hour $111.00 Transportation Charges 40.0 miles $0.89 /Mile $35.60 Engineering Review & Report Preparation 0.5 hrs $175.00 /Hour $87.50 Compressive Strength of Cylinder ASTM C39 (set of 3)4.0 tests $22.80 /Test $91.20 Disposable cylinder molds 4.0 ea $3.34 /Ea.$13.36 Tax on disposable cylinder molds 4.0 ea $0.234 /Ea.$0.94 Invoice for Concrete Cylinder Set Numbers: 85602 Total Due $487.60 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. INVOICE PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE ALLENDER BUTZKE ENGINEERS INC. TO:Knapp Properties PROJECT NO:235111 5000 Westown Parkway, Suite 400 West Des Moines, IA 50266-6704 INVOICE NO:235111C5 RE:Concrete Observations INVOICE DATE:12/18/23 Ashworth North Plat 3 SE Esker Ridge & SE Glacier Trail, Waukee, Iowa Description of Services Amount Unit Price Total Technician III 5.0 hrs $74.00 /Hour $370.00 Transportation Charges 60.0 miles $0.89 /Mile $53.40 Engineering Review & Report Preparation 1.0 hrs $175.00 /Hour $175.00 Compressive Strength of Cylinder ASTM C39 (set of 3)8.0 tests $22.80 /Test $182.40 Disposable cylinder molds 8.0 ea $3.34 /Ea.$26.72 Tax on disposable cylinder molds 8.0 ea $0.234 /Ea.$1.87 Invoice for Concrete Cylinder Set Numbers: 87031, 87083 Total Due $809.39 REMIT TO:ALLENDER BUTZKE ENGINEERS, INC.Total invoice amount due upon 3660 109th Street receipt of invoice. Accounts not Urbandale, Iowa 50322 paid within 30 days after invoice Phone No. 515-252-1885 date are subject to a 1 1/2% per month late charge. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive the check back from your financial institution. INVOICE PLEASE INCLUDE INVOICE NUMBER ON REMITTANCE ADVICE Invoice Summary Invoice No Supplier Invoice Date Property Invoice Amount 0029676-IN Civil Engineering Consultants Inc 01/09/2023 AP North, LC; Ashworth North (apnf001) 7,675.00 0029751-IN Civil Engineering Consultants Inc 02/01/2023 AP North, LC; Ashworth North (apnf001) 1,459.40 0029995-IN Civil Engineering Consultants Inc 04/01/2023 AP North, LC; Ashworth North (apnf001) 3,637.00 0030114-IN Civil Engineering Consultants Inc 05/01/2023 AP North, LC; Ashworth North (apnf001) 3,516.50 0030233-IN Civil Engineering Consultants Inc 06/01/2023 AP North, LC; Ashworth North (apnf001) 1,717.50 0030394-IN Civil Engineering Consultants Inc 07/01/2023 AP North, LC; Ashworth North (apnf001) 1,770.50 0030502-IN Civil Engineering Consultants Inc 08/01/2023 AP North, LC; Ashworth North (apnf001) 5,215.50 0030608-IN Civil Engineering Consultants Inc 09/01/2023 AP North, LC; Ashworth North (apnf001) 1,297.00 0030780-IN Civil Engineering Consultants Inc 10/01/2023 AP North, LC; Ashworth North (apnf001) 3,501.50 0030853-IN Civil Engineering Consultants Inc 11/01/2023 AP North, LC; Ashworth North (apnf001) 828.00 0031139-IN Civil Engineering Consultants Inc 01/09/2024 AP North, LC; Ashworth North (apnf001) 4,573.00 0031270-IN Civil Engineering Consultants Inc 02/01/2024 AP North, LC; Ashworth North (apnf001) 4,344.50 Total: 39,535.40 10580 Justin Drive Urbandale, IA 50322 Nelsen Appraisal Associates, Inc. (Bus) 515-276-0021 (Fax) 515-276-9303 A REAL PROPERTY APPRAISAL IN AN APPRAISAL REPORT OF Vacant Land LOCATED AT Grand Prairie Parkway, between SE Tallgrass Lane and SE Ashworth Road Waukee, Iowa 50263 CLIENT Knapp Properties 10580 Justin Drive Urbandale, IA 50322 Nelsen Appraisal Associates, Inc. (Bus) 515-276-0021 (Fax) 515-276-9303 January 6, 2022 Mr. Brett Hyland Knapp Properties 5000 Westown Parkway, Suite 400 West Des Moines, Iowa 50266 Re: Grand Prairie Pkwy - North of Ashworth Road Waukee, Iowa 50263 Dear Mr. Hyland, At your request, we have appraised a real property interest for the above real estate. Our objective was to form one or more opinions about the market value for a 100% ownership interest in the subject property's fee simple estate assuming no liens or encumbrances other than normal covenants and restrictions of record. The subject property physically consists of 3 parcels of vacant land consisting of 64.39 acres. More details about the physical attributes of the property appraised are presented later in the Subject section of this report. This valuation contains analyses, opinions, and conclusions along with market data and reasoning appropriate for the scope of work detailed later herein. It was prepared solely for the intended use and intended user(s) explicitly identified in the attached report. Unauthorized users do so at their own risk. The appraisal is communicated in the attached Appraisal report, and conforms to the version of the Uniform Standards of Professional Appraisal Practice (USPAP) in effect on this report's preparation date of January 6, 2022. This letter is not an appraisal report hence it must not be removed from the attached 96-page report. If this letter is disjoined from the attached appraisal report, then the value opinions set forth in this letter are invalid because the analyses, opinions, and conclusions cannot be properly understood. In general, valuation of the subject property involves no atypical issues. All value opinions are affected by all the information, extraordinary assumptions, hypotheses, general limiting conditions, facts, descriptions, and disclosures stated in the attached appraisal report. After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof firmly supports the following final value opinion(s) for the subject property as of November 22, 2021: $9,670,000 Market Value “As Is” Thank you for your business. Let us know how we may further serve you. Gene F. Nelsen, MAI, CCIM Certified General Real Property Appraiser Iowa License CG01034 License Expiration Date: 6/30/2023 Amy J. Kintzle, MAI Certified General Real Property Appraiser Iowa License CG03204 License Expiration Date: 6/30/2022 Table of Contents Overview ....................................................................................................... 1 Salient Information ........................................................................................................ 1 Noteworthy Issues ......................................................................................................... 1 Scope of Work .............................................................................................. 2 Scope of Work ............................................................................................................... 2 Introduction .............................................................................................................. 2 Assignment Elements ................................................................................................ 2 Relevant Characteristics .......................................................................................... 4 Extent of Services Provided ...................................................................................... 5 Other Intended Use Considerations ......................................................................... 5 Miscellaneous Matters.............................................................................................. 5 Appraisal Development ............................................................................................ 6 Concept Explanations ............................................................................................... 8 Scope of Work Limitation ............................................................................................. 9 Report Reliance & Use Restrictions .............................................................................. 9 Scope of Work Exclusion - Insurable Value ............................................................... 10 Extraordinary Assumptions & Disclosures.................................................................. 11 Hypothetical Conditions .............................................................................................. 12 Personal Property & Intangibles .................................................................................. 12 Definition of Market Value ......................................................................................... 13 Definition of Real Property Estates ............................................................................. 14 Assemblage .................................................................................................................. 15 Contingent and Limiting Conditions ........................................................................... 16 Disclosures .................................................................................................. 23 Professional Standards ................................................................................................. 23 Competency ................................................................................................................. 23 Area Data ................................................................................................... 24 Regional Map .............................................................................................................. 24 Proximity Map ............................................................................................................. 25 Vicinity Map ................................................................................................................ 26 Proximity Features ....................................................................................................... 38 Nearby Land Uses........................................................................................................ 38 Legal Descriptions ....................................................................................................... 40 Photographs ................................................................................................................. 42 Sale History ................................................................................................................. 46 Flood Hazard ............................................................................................................... 46 Flood Map .................................................................................................................... 47 Environmental Risks .................................................................................................... 48 Size Calculations ......................................................................................................... 49 Subject Site .................................................................................................................. 49 Real Estate Taxes ......................................................................................................... 50 Zoning .......................................................................................................................... 51 Zoning Map ................................................................................................................. 59 Analyses & Conclusions ............................................................................ 61 Value Introduction ....................................................................................................... 61 Highest and Best Use ................................................................................................... 61 Land Value “As Is” ................................................................................... 65 Land Value .................................................................................................................. 65 Analysis & Conclusions .......................................................................................... 76 Value Indication ..................................................................................................... 77 Quantitative Adjustment Grid - Multi Family Land ............................................... 83 Analysis & Conclusions .......................................................................................... 83 Plus .............................................................................................................................. 85 Certification ................................................................................................................. 87 Marketing Brochure ..................................................................................................... 89 State Licenses .............................................................................................................. 92 Qualifications ............................................................................................................... 93 State Licenses .............................................................................................................. 95 Copyright Protection .................................................................................................... 96 202110-21A Nelsen Appraisal Associates, Inc. Page 1 Overview Salient Information Property Type Land Real Estate Appraised East side of Grand Prairie Pkwy, between SE Tallgrass Ln and SE Ashworth Rd Waukee, Iowa County Dallas Estate Valued 100% of the Fee Simple Estate Client Knapp Properties Client File Number Not Applicable Most Likely Buyer Builder-Developer Effective Value Date November 22, 2021 Report Preparation Date January 6, 2022 $9,670,000 Market Value “As Is” Noteworthy Issues The subject property physically consists of 3 parcels of vacant land consisting of 64.39 acres. More details about the physical attributes of the property appraised are presented later in the Subject section of this report. The global outbreak of a “novel coronavirus” known as COVID-19 was officially declared a pandemic by the World Health Organization (WHO). The reader is cautioned, and reminded that the conclusions presented in this appraisal report apply only as of the effective date(s) indicated. The appraiser makes no representation as to the effect on the subject property of any unforeseen event, subsequent to the effective date of the appraisal. No atypical factors significantly affect value. The real estate appraised is generally typical for this type property in this locale. 202110-21A Nelsen Appraisal Associates, Inc. Page 2 Scope of Work Scope of Work Introduction The Uniform Standards of Professional Appraisal Practice (USPAP) defines scope of work as “the type and extent of research and analysis in an assignment". Scope of work includes, but is not limited to: ➢ the extent to which the property is identified; ➢ the extent to which tangible property is observed; ➢ the type and extent of data researched; and ➢ the type and extent of analyses applied to arrive at opinions or conclusions. Assignment Elements The purpose of this assignment (the problem to be solved) is to form one or more opinions about value. This purpose necessitates identification of seven assignment elements listed below. 1. Client Information Client's Name ** Client's Company Name Mr. Brett Hyland Knapp Properties Client's Agent Agent's Company Name Not Applicable Not Applicable Appraiser(s) Engaged By The Client Client's Interest In Property Appraised Owner Representative 2. Other Intended Users None 3. Intended Use Of Report (To aid) Portfolio Analysis 4. Value Opinion(s) Developed Market value Standard / Definition Of Value Used To Form The Value Opinion(s) Advisory Opinion 30 of USPAP, which is the same definition as the one used in FIRREA ** The client is always an intended user. 202110-21A Nelsen Appraisal Associates, Inc. Page 3 Scope of Work Assignment Elements 5. Key Dates Effective Value Date (point in time the value applies) November 22, 2021 Report Preparation Date (date the report was prepared) January 6, 2022 Date Property Appraised Was Observed By One Or More Appraisers Signing This Report Land Observed November 22, 2021 6. Assignment Conditions Extraordinary Assumptions One Or More Apply, Detailed Later Herein Hypothetical Conditions One Or More Apply, Detailed Later Herein Jurisdictional Exceptions None Used Expected Public or Private On-Site or Off-Site Improvements Affect Value Not Expected Assemblage of Estates or Component Parts Affects Value Not Expected Other None Used 202110-21A Nelsen Appraisal Associates, Inc. Page 4 Scope of Work Relevant Characteristics The seventh assignment element is relevant characteristics about the property appraised. These characteristics are typically categorized as physical, legal, and economic. Physical attributes of the property appraised are presented later in the Subject section of this report. Some characteristics are identified below. Atypical issues are listed in the Noteworthy Issues section and may be further detailed elsewhere herein. Unless specifically stated otherwise, the estate appraised (listed below) assumes no adverse leases, liens or encumbrances other than normal covenants and restrictions of record. 7a. Physical Existing Property Use Vacant Land Property Use Reflected In One Or More Value Opinions Continued Use As Is Sources of Information About the Property Appraised Included Online Public Records 7b. Legal Category Of Property Appraised Real Property Estate(s) Appraised Fee Simple Legal Issues Considered No Atypical Legal Issues Environmental Concerns No Known Environmental Concerns 7c. Economic Effect Of Lease(s) On Value No Leases Hence Not Applicable Cost Information Type of Reconstruction Cost Used Not Applicable Source of Reconstruction Cost Information Not Applicable 202110-21A Nelsen Appraisal Associates, Inc. Page 5 Scope of Work Extent of Services Provided Number of Final Value Opinions Developed One Value Opinion(s) Reflect The Worth Of the Property Appraised As Is Extent Of Report Preparation Appraisal Other Reporting Requirements Not Applicable Extent Of Data Research Extensive Data Sources Private Data Provider Service; Online Public Records; Real Estate Sales Agents; Buyers and / or Sellers Documents Considered None Data Verification Direct and Indirect Methods Extent Of Subject Observation By One Or More Appraisers Signing Report Moderate Land Viewing Specifics of this viewing, if any, are detailed in the Extraordinary Assumptions & Disclosures section of this report. Other Intended Use Considerations Client's Prior Engagement Of Appraisal Services Numerous Atypical Issues No Atypical Issues Assignment Complexity Moderate Complexity FIRREA Compliance Fully Compliant Insurable Value Insurable Value Is Not An Intended Use Miscellaneous Matters Scope of Work Agreement Retained In Work File 202110-21A Nelsen Appraisal Associates, Inc. Page 6 Scope of Work Appraisal Development Appraisal development is the extent of research and analyses that produce one or more credible opinions of value for one or more specifically identified intended users and an explicitly stated intended use. In this context, credible is defined as "worthy of belief". Depending upon the intended use, intended users, and agreements between the appraiser and the client, the appraisal development process may include several, but not necessarily all of the following tasks. ➢ observation of the property appraised ➢ research for appropriate market data ➢ data verification ➢ consideration of influential market area, physical, economic, and governmental factors ➢ determination of the subject’s highest and best use(s), if appropriate ➢ development of one or more applicable approaches to value ➢ reconciliation of value indications ➢ preparation of this report In most cases, the core valuation process begins with a highest and best use analysis. This is essential because it establishes a framework for the proper selection of comparables. Cited comparables should have the same highest and best use as the property appraised. 202110-21A Nelsen Appraisal Associates, Inc. Page 7 Scope of Work Appraisal Development If some property modification like new construction is contemplated, a feasibility analysis may be appropriate. In some cases, feasibility may simply be justified by inferred market evidence like low vacancy or rising rents. According to USPAP, all approaches that are applicable to the interest being appraised and necessary to produce credible results must be developed. The type of highest and best use; extent of feasibility considered; and the relevance of each major approach are listed below. Highest and Best Use An Inferred Demand Analysis Feasibility Analysis (a more detailed study separate from highest & best use) Separate Feasibility Analysis Not Developed Cost Approach Not Applicable And Not Included In Report Sales Comparison Applicable And Included In Report Income Approach Not Applicable and Not Included In Report Quoting "The Appraisal of Real Estate" Fourteenth Edition published by the Appraisal Institute, says "Highest and best use analysis and feasibility analysis are interrelated, but feasibility analysis may involve data and considerations that are not directly related to highest and best use determinations. Such analyses may be more detailed than highest and best use analysis, have a different focus, or require additional research." Applicable and necessary approaches were selected for development after consideration of available market data, intended use, and intended user(s). An approach considered not applicable was omitted because this methodology is not appropriate for the property interest being appraised, or sufficient data to properly develop the approach was not available. Any approach judged not applicable, yet included in this report, was developed solely at our client’s request. Data used to develop an inapplicable but included approach has a low to nil degree of comparability to the subject. Hence, no emphasis was given an approach deemed not applicable but included. Furthermore, no liability or responsibility is assumed for an approach considered not applicable but included at the client's request. 202110-21A Nelsen Appraisal Associates, Inc. Page 8 Scope of Work Concept Explanations Intended use and all intended user(s) should be weighed heavily during the scope of work decision. A single intended user who frequently engages appraisal services is likely very knowledgeable about the appraisal process. For this type user, the appraisal development and reporting for less complex property types might be toward the lower end of the spectrum. By contrast, multiple intended users, especially those with opposing motivations, likely need extensive appraisal development and reporting. Litigation is a prime example when a thorough appraisal development and detailed reporting is warranted. A loan to value ratio reflects risk. For commercial-grade loans, ratios over 75% are generally regarded as risky. If a contemplated loan is viewed as risky, then the extent of appraisal development and the level of report detail should be more comprehensive. Similarly, more complex properties generally warrant more thorough analyses and more extensive report details. Prior engagement of appraisal services by a client implies a level of awareness about the appraisal process. A greater awareness may justify a less thorough level of report detail whereas the opposite is true for an individual who has never engaged an appraisal. A Jurisdictional Exception is an assignment condition, which voids a portion of USPAP that is contrary to law or public policy. When a Jurisdictional Exception applies, only the contrary portion is void. The remainder of USPAP remains in full force and effect. Jurisdiction Exceptions always shrink USPAP, not expand it. Data verification affects reliability. Direct data verification confirms information used in the report with one or more parties who have in-depth knowledge about physical characteristics for the property being appraised, or related financial details. Indirect verification employs information obtained from a secondary source like a data reporting service, a multiple listing service, or another appraiser. Direct verification is generally more time-consuming and costly, but also more reliable. Information from all data sources was examined for accuracy, is believed reliable, and assumed reasonably accurate. However, no guaranties or warranties for the information are expressed or implied. No liability or responsibility is assumed by Nelsen Appraisal Associates, Inc. or the appraiser(s) for any inaccuracy from any seemingly credible information source. 202110-21A Nelsen Appraisal Associates, Inc. Page 9 Scope of Work Concept Explanations A statement about observation of the subject property by the appraiser(s) is listed above. If the subject was observed, this viewing was not as thorough as a professional property inspection. A professional inspector determines the precise physical condition, remaining useful life, and operability of major building components like the structural system, roof cover, electrical system, plumbing, and heating plant. Inspectors typically do not ascertain size of the building, or characteristics of the land. By contrast, an appraiser commonly ascertains both land and building size. Ordinarily, appraisers do not determine operability, or remaining useful life of building systems. An appraiser typically views real estate to determine only general attributes like physical condition of the building as a whole, site topography and access, building size, construction quality, floor plan, and functionality of the property as a whole. For this appraisal, no probes, investigations, or studies were made to discover unapparent, adverse physical features. Highest and best use analyses can be categorized into two groups - inferred and fundamental. A fundamental analysis is quantified from broad demographic and economic data such as population, household size, and income. Supply is inventoried. Subject specific characteristics are considered. Then, the relationship between supply and demand is weighed to determine a specific highest and best use for the subject. An inferred analysis uses local trends and patterns to infer a general highest and best use for the subject. For an inferred analysis, market dynamics that might be considered include prices, market exposure times, rents, vacancy, and listings of similar real estate. Inferred analyses emphasize historical data while fundamental analyses are based on future projections. The kind of highest and best use analysis utilized in this assignment is listed above. Scope of Work Limitation All readers of this report should be aware the foundation, for conclusions communicated herein, was based on and limited to an inferred market analysis, not a fundamental market study. Our scope of work agreement with our client does not include a detailed fundamental analysis. A fundamental analysis forecasts demand from broad demographic and economic data like population and income. Existing supply is inventoried. Then the relationship of supply and demand is weighed to determine net demand. An inferred analysis is based on local trends and patterns from which inferences are made. Sales, listings, marketing intervals, and/or price change for other similar land infer there is adequate demand for the subject parcel at a price level congruous with this data. If the client desires an in-depth analysis regarding the subject’s marketability, potential alternate uses, or a numeric demand analysis, it is suggested a detailed fundamental market analysis be prepared. Report Reliance & Use Restrictions No liability is assumed, expressed, or implied by Nelsen Appraisal Associates, Inc., or the appraiser(s) for unauthorized use of this report. Only those persons, parties, entities, companies, corporations, partnerships, associations, or groups that are explicitly identified as an intended user on page 2 may rely on, and use this report. There are no implied, suggested, inferred, consequential, or indirect intended users of this report. Unauthorized users should not use, or rely on any portion of this document. Unauthorized users do so at their own risk and peril. 202110-21A Nelsen Appraisal Associates, Inc. Page 10 Scope of Work Exclusion - Insurable Value The cost approach may or may not have been developed herein. Unless explicitly stated otherwise, the cost approach was developed solely to support the subject's market value. Use of this appraisal, in whole or part, for another purpose is not an expected intended use. Nothing in this appraisal should be used, or relied upon to determine the amount or type of insurance coverage to be placed on the subject property. The signatory / signatories to this report assume no liability for, and do not guarantee that any insurable value inferred from this report will result in the subject property being adequately insured for any loss that may be sustained. Since labor costs, material costs, building codes, construction intervals, and governmental regulations are constantly changing, the cost approach may not be a reliable indication of replacement or reproduction cost for any date other than this report's effective value date. 202110-21A Nelsen Appraisal Associates, Inc. Page 11 Extraordinary Assumptions & Disclosures An extraordinary assumption is defined by the Uniform Standards of Professional Appraisal Practice (USPAP) to be “an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinion or conclusions”. Extraordinary assumptions presume as fact otherwise uncertain information. In other words, this type assumption involves uncertainty about an underlying premise. An example is a survey that displays a lot size. If the lot size is later found to be much smaller, then the value conclusion may be negatively affected. USPAP Standard Rule 1-2(f) requires the identification of all extraordinary assumptions that are necessary for credible assignment results. This appraisal employs the following extraordinary assumptions. ➢ Features of the subject site such as legal description, dimensions, size, etc. were obtained from publicly available sources. All information taken therefrom is assumed reasonably correct. ➢ Observation of the subject property was limited to the entire site, as visible from the existing public street. Unseen spaces are assumed to have physical condition and construction quality similar to that in observed spaces. It is further assumed the subject has no hidden defects. The appraiser(s) did not attempt to study, dig, probe, investigate, detect, remove materials, or discover unfavorable physical features. ➢ Real estate tax information for the subject was obtained from a reputable online source, so it is assumed reasonably correct. All information from any credible source is assumed reasonably correct. Moreover, this information is assumed the most recent that is expeditiously available to the public. ➢ Assumptions and presumptions discussed in the Noteworthy Issues section of this report, if any, are incorporated by way of reference into these Extraordinary Assumptions & Disclosures. ➢ A recently issued title policy was not furnished to the appraiser(s). If a value-impairment is identified or suggested in a title policy, another professional report, or some other document, this appraisal does not address issues that are significantly atypical for a valuation of this type property unless specifically identified in the Scope of Work and/or Noteworthy Issues section of this report. The above extraordinary assumptions as well as other assumptions anywhere herein are integral premises upon which the conclusions in this document are based. If any of these assumptions are later found to be materially untrue or inaccurate, then this report’s assignment results may or may not be affected. 202110-21A Nelsen Appraisal Associates, Inc. Page 12 Hypothetical Conditions USPAP defines a hypothetical condition as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis." Hypothetical conditions assume conditions that are contrary to known fact. An illustration is the current valuation of a proposed home. For the purpose of a rational analysis, it is assumed the home exists on the effective value date, but it is known the home is nonexistent. Another example is a new zoning classification, that a property does not have today, but the new zoning is assumed for the purpose of a logical current valuation. Uncertainty is not involved with a hypothetical condition. An essential premise underlying the valuation is known not to exist on the effective value date. USPAP Standard Rule 1-2(g) requires the identification of all hypothetical conditions that are necessary for a credible value opinion. This appraisal employs the following hypothetical conditions. Zoning ➢ A portion of the real estate being appraised is not zoned as valued in this report. ➢ One or more analyses developed in this report are based on a hypothesis. Specifically, approximately 13 acres, labeled as Area E in the map shown later in this report, is assumed to have a zoning classification (medium density residential) that is different from its actual classification on this report’s effective value date (K-RC, Kettlestone Retail Community District). ➢ This appraisal does not address unforeseeable events that could alter the hypothetical subject property and/or the market conditions reflected in these analyses. Personal Property & Intangibles Personal property is movable and not permanently affixed to the real estate. Examples of personal property are freestanding ranges, refrigerators, tables, desks, chairs, beds, linen, silverware, hand tools, and small utensils. An intangible is a nonphysical asset like franchises, trademarks, patents, goodwill, and mineral rights. Personal and intangible property included in this appraisal's value opinion, if any, is considered typical for this type real estate, yet insignificant to the value opinion. Therefore, non-realty is not itemized or valued herein. Moreover, this report’s final value conclusion(s) excludes un-affixed equipment, detached trade fixtures, and chattel unless specifically stated to the contrary. 202110-21A Nelsen Appraisal Associates, Inc. Page 13 Definition of Market Value The definition of market value is used in all federally regulated transactions that exceed a minimum amount. This definition is mandated by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. The exact same definition was published in the Federal Register several times by different federal agencies. Some printings are: 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; and 59 Federal Register 29499, June 7, 1994.) Federal agencies publishing the exact same definition include the • Office of the Comptroller of the Currency (OCC) as 12 CFR 34, subpart C • Federal Reserve Board (FRB) as 12 CFR 225, Subpart G • Federal Deposit Insurance Corporation (FDIC) as 12 CFR 323.2, Definition (g) in 55 Federal Register, 33,888 August 20, 1990, Effective September 19, 1990. • Office of Thrift Supervision (OTS) as 12 CFR 564 • National Credit Union Administration (NCUA) as 12 CFR 722 The exact same definition was again published jointly by the OCC, OTS, FRS, and FDIC on page 61 of the “Interagency Appraisal and Evaluation Guidelines". These guidelines were published in the Federal Register on December 10, 2010 as Volume 55, page 77472. All the above citations defined market value as: “the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition 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 both typically motivated; • both parties are well informed or well advised and acting in what they consider their own best interests; • a reasonable time is allowed for exposure in the open market; • payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." Virtually the same definition is also cited in Advisory Opinion 30 of the 2012-2013 version of the Uniform Standards of Professional Appraisal Practice (USPAP), lines 124 to 138. 202110-21A Nelsen Appraisal Associates, Inc. Page 14 Definition of Real Property Estates One or more of the following underlined legal estates or interests are valued in this report. Definitions of these estates are quoted from The Dictionary of Real Estate Appraisal, Sixth Edition; published by the Appraisal Institute, copyright 2015. • Fee Simple Estate "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." • Leased Fee Estate A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship." • Leasehold Estate "The tenant's possessory interest created by a lease" Conceptually, market value of the leased fee estate is the worth of the property to the landlord (the lessor) as encumbered by terms set forth in a lease or leases. A leasehold estate is the tenant’s (the lessee's) interest in a property. The above definition for fee simple estate is the classic legal meaning. A lease is an encumbrance. If a property is unencumbered, this could be interpreted to mean the property is not encumbered by lease. If there are no leases for a multi-tenant facility, then the building has no income. Under this interpretation, the value of the fee simple (VFS) would be less than the value of the leased fee (VLF). Accordingly, the VFS < VLF because lease-up costs must be paid to find tenants and induce occupancy. Examples of lease-up costs include leasing commissions, concessions, and tenant improvements. According to the Appraisal Institute course General Appraiser Income Approach, Part 2 - page 231, there are two interpretations of the term "fee simple estate". A second interpretation for fee simple estate is a value-oriented definition used by many real estate appraisers. For valuation purposes, market value of the fee simple is the worth of the property assuming it is already leased at market rent to a level of stabilized occupancy. Under this interpretation, the VFS > VLF because lease-up costs to find tenants and induce occupancy were already paid. An extremely important concept in the valuation of leases is the relationship between market rent or income (IFS) and contract rent, the rent stated in a lease (ILF). If the contract rent is below market rent (ILF < IFS), the tenant enjoys an advantageous position called a positive leasehold interest. Then, the value of the leased fee is usually less than the value of the fee simple (VLF < VFS). If contract rent exceeds market rent (ILF > IFS), then the landlord has an advantage while the tenant has an unfavorable position called a negative leasehold interest. When contract rent equals market rent, then the numerical value of these two estates is equal but the rights of each estate are different. 202110-21A Nelsen Appraisal Associates, Inc. Page 15 Definition of Real Property Estates For valuation purposes in this report, three estates are defined below. • Market value of the fee simple estate to an owner-user is the worth to this type buyer via the sales comparison approach. Income generation is not an important factor to this buyer. Property suitability for the buyer's own use is the primary purchasing criteria. Occupancy and lease-up costs are not relevant for this type of real property. • The fee simple estate for a multi-tenant facility is different from the one immediately above. A different interpretation is appropriate for a building designed to generate real estate rental income like a shopping center or apartment building. This estate for this type property is defined as the worth to the most probable buyer assuming the property is already leased to a level of stabilized occupancy at normal market terms including market rent. Lease-up costs are assumed already paid. • Market value of the leased fee estate is defined as the worth of real property to its current owner as encumbered by terms specified in one or more leases. • Lastly, a leasehold estate is defined as one tenant’s interest in real property as defined by a lease. These definitions are crucial concepts in the valuation for all real property. Assemblage USPAP Standard Rule 1-4(e) requires an analysis of the assemblage of various estates or component parts that affect value. In this case, no assemblage is expected so value is not affected. 202110-21A Nelsen Appraisal Associates, Inc. Page 16 Contingent and Limiting Conditions 1. By this notice, all persons, companies, or corporations using or relying on this report in any manner bind themselves to accept these Contingent and Limiting conditions, and all other contingent and limiting conditions contained elsewhere in this report. Do not use any portion of this report unless you fully accept all Contingent and Limiting conditions contained throughout this document. 2. The "Subject" or "Subject Property" refers to the real property that is the subject of this report. An Appraiser is defined as an individual person who is licensed to prepare real estate appraisal-related services in the State of Iowa and affixes his / her signature to this document. 3. Throughout these Contingent and Limiting Conditions, the singular term "Appraiser" also refers to the plural term "Appraisers”. The terms "Appraiser" and “Appraisers” also refer jointly / collectively to "Nelsen Appraisal Associates, Inc.", its officers, employees, contractors, personnel, staff, shareholders, members, and affiliates. The masculine terms "he" or "his" also refer to the feminine term "she" or "her”. 4. In these Contingent and Limiting Conditions, the "Parties" refers to all of the following collectively: (a) the Appraiser(s), (b) Nelsen Appraisal Associates, Inc., (c) the client, and (d) all intended users. 5. These Contingent and Limiting Conditions are an integral part of this report along with all certifications, definitions, descriptions, facts, statements, assumptions, disclosures, hypotheses, analyses, and opinions. 6. All contents of this report are prepared solely for the explicitly identified client and other explicitly identified intended users. The liability of the Appraiser is limited solely to the client. There is no accountability, obligation, or liability to any other third party. Other intended users may read but not rely on this report. In no event shall the Appraisers be liable for consequential, special, incidental or punitive loss, damages or expense (including without limitation, lost profits, opportunity costs, etc.) even if advised of their possible existence. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all contingent and limiting conditions, assumptions, and disclosures. Use of this report by third parties shall be solely at the risk of the third party. 7. This document communicates the results of an appraisal assignment. This communication is not an inspection, engineering, construction, legal, or architectural report. It is not an examination or survey of any kind. Expertise in these areas is not implied. The Appraiser is not responsible for any costs incurred to discover, or correct any deficiency in the property. 202110-21A Nelsen Appraisal Associates, Inc. Page 17 Contingent and Limiting Conditions 8. Appraiser and Client agree the following mutual limitation of liability is agreeable in consideration of the fees to be charged and the nature of appraisal services provided under this Agreement. Appraiser and Client agree that to the fullest extent permitted by applicable law, the Appraiser's and its Personnel's maximum aggregate and joint liability to the other party for claims and causes of action relating to this Agreement for appraisals or other services under this agreement shall be limited to $25,000 or the total of all fees and costs charged by the Appraiser for services that are subject of the claim(s) or cause(s) of action. This limit of liability extends to all types of claims or causes of action, whether in breach of contract or tort, including without limitation claims / causes of action for negligence, professional negligence, or negligent misrepresentation on the part of either party or its Personnel, but excluding claims / causes of action of intentionally fraudulent conduct, criminal conduct, or intentionally caused injury. The Personnel of each party are intended third party beneficiaries of this limitation of liability. The word "Personnel", as used in this paragraph, means the respective party's staff, employees, contractors, members, partners, affiliates, and shareholders. Appraiser and Client agree that they each were free to negotiate different terms than stated in this Agreement or contract with other parties. 9. As part of this appraisal, information was gathered and analyzed to form opinion(s) that pertain solely to one or more explicitly identified effective value dates. The effective value date is the only point in time that the value applies. Information about the subject property, neighborhood, comparables, or other topics discussed in this report was obtained from sensible sources. In accordance with the extent of research disclosed in the Scope of Work section, all information cited herein was examined for accuracy, is believed to be reliable, and is assumed reasonably accurate. However, no guaranties or warranties are made for this information. No liability or responsibility is assumed for any inaccuracy which is outside the control of the Appraiser, beyond the scope of work, or outside reasonable due diligence of the Appraiser. 10. Real estate values are affected by many changing factors. Therefore, any value opinion expressed herein is considered credible only on the effective value date. Every day that passes thereafter, the degree of credibility wanes as the subject changes physically, the economy changes, or market conditions change. The Appraiser reserves the right to amend these analyses and/or value opinion(s) contained within this appraisal report if erroneous, or more factual-information is subsequently discovered. No guarantee is made for the accuracy of estimates or opinions furnished by others, and relied upon in this report. 11. In the case of limited partnerships, syndication offerings, or stock offerings in the real estate, the client agrees that in case of lawsuit (brought by the lender, partner, or part owner in any form of ownership, tenant, or any other party), the client will hold Nelsen Appraisal Associates, Inc., its officers, contractors, employees and associate appraisers completely harmless. Acceptance of, and/or use of this report by the client, or any third party is prima facie evidence that the user understands and agrees to all these conditions. 202110-21A Nelsen Appraisal Associates, Inc. Page 18 Contingent and Limiting Conditions 12. For appraisals of multiunit residential, only a portion of all dwellings was observed. A typical ratio of observed dwellings roughly approximates 10% of the total number of units, and this ratio declines as the number of dwellings grows. It is assumed the functionality, physical condition, construction quality, and interior finish of unseen units are similar to the functionality, physical condition, construction quality, and interior finish of observed units. If unobserved dwellings significantly differ from those that were viewed in functionality, physical condition, quality, or finish, the Appraiser reserves the right to amend theses analysis and/or value opinion(s). 13. If the appraised property consists of a physical portion of a larger parcel is subject to the following limitations. The value opinion for the property appraised pertains only to that portion defined as the subject property. This value opinion should not be construed as applying with equal validity to other complementary portions of the same parcel. The value opinion for the physical portion appraised + the value of all other complementary physical portions may or may not equal the value of the whole parcel. 14. Unless specifically stated otherwise herein, the Appraiser is unaware of any engineering study made to determine the bearing capacity of the subject land, or nearby lands. Improvements in the vicinity, if any, appear to be structurally sound. It is assumed soil and subsoil conditions are stable and free from features that cause supernormal costs to arise. It is also assumed existing soil conditions of the subject land have proper load bearing qualities to support the existing improvements, or proposed improvements appropriate for the site. No investigations for potential seismic hazards were made. This appraisal assumes there are no conditions of the site, subsoil, or structures, whether latent, patent, or concealed that would render the subject property less valuable. Unless specifically stated otherwise in this document, no earthquake compliance report, engineering report, flood zone analysis, hazardous substance determination, or analysis of these unfavorable attributes was made, or ordered in conjunction with this appraisal report. The client is strongly urged to retain experts in these fields, if so desired. 15. If this report involves an appraisal that values an interest, which is less than the whole fee simple estate, then the following disclosure applies. The value for any fractional interest appraised + the value of all other complementary fractional interests may or may not equal the value of the entire fee simple estate. 16. If this appraisal values the subject as though construction, repairs, alterations, remodeling, renovation, or rehabilitation will be completed in the future, then it is assumed such work will be completed in a timely fashion, using non-defective materials, and proper workmanship. All previously completed work is assumed completed in substantial conformance with plans, specifications, descriptions, or attachments made or referred to herein. It is also assumed all planned, in-progress, or recently completed construction complies with the zoning ordinance, and all applicable building codes. A prospective value opinion has an effective value date that is beyond or in the future relative to this report's preparation date. If this appraisal includes a prospective valuation, it is understood and agreed the Appraiser is not responsible for an unfavorable value effect caused by unforeseeable events that occur before completion of the project. 202110-21A Nelsen Appraisal Associates, Inc. Page 19 Contingent and Limiting Conditions 17. This valuation may or may not include an observation of the appraised property by an Appraiser. The extent of any observation is disclosed in the Scope of Work section of this report. Any observation by an Appraiser is not a professional property inspection. Viewing of the subject was limited to components that were not concealed, clearly observable, and readily accessible without a ladder on the property observation date. As used herein, readily accessible means within the Appraiser's normal reach without the movement of any man made or natural object. Comments or descriptions about physical condition of the improvements are based solely on a superficial visual observation. These comments are intended to familiarize the reader with the property in a very general fashion. 18. The allocation of value between the subject's land and improvements, if any, represents our judgment only under the existing use of the property. A re-evaluation should be made if the improvements are removed, substantially altered, or the land is utilized for another purpose. 19. The Client and all intended users agree to all the following. (A) This appraisal does not serve as a warranty on the physical condition or operability of the property appraised. (B) All users of this report should take all necessary precautions before making any significant financial commitments to or for the subject. (C) Any estimate for repair or alternations is a non-warranted opinion of the Appraiser. 20. Electric, heating, cooling, plumbing, water supply, sewer or septic, mechanical equipment, and other property systems were not tested. No determination was made regarding the operability, capacity, or remaining physical life of any component in, on, or under the real estate appraised. All building components are assumed adequate and in good working order unless stated otherwise. Private water wells and private septic systems are assumed sufficient to comply with federal, state, or local health safety standards. No liability is assumed for the soundness of structural members since structural elements were not tested or studied to determine their structural integrity. The roof cover for all structures is assumed water tight unless otherwise noted. This document is not an inspection, engineering or architectural report. If the client has any concern regarding structural, mechanical, or protective components of the improvements, or the adequacy or quality of sewer, water or other utilities, the client should hire an expert in the appropriate discipline before relying upon this report. No warranties or guarantees of any kind are expressed or implied regarding the current or future physical condition or operability of any property component. 21. Any exhibits in the report are intended to assist the reader in visualizing the subject property and its surroundings. The drawings are not surveys unless specifically identified as such. No responsibility is assumed for cartographic accuracy. Drawings are not intended to be exact in size, scale, or detail. 22. Value opinions involve only real estate, and inconsequential personal property. Unless explicitly stated otherwise, value conclusions do not include personal property, unaffixed equipment, trade fixtures, business-good will, chattel, or franchise items of material worth. 202110-21A Nelsen Appraisal Associates, Inc. Page 20 Contingent and Limiting Conditions 23. No liability is assumed for matters of legal nature that affect the value of the subject property. Unless a clear statement to the contrary is made in this report, value opinion(s) formed herein are predicated upon the following assumptions. (A) The real property is appraised as though, and assumed free from all value impairments including yet not limited to title defects, liens, encumbrances, title claims, boundary discrepancies, encroachments, adverse easements, environmental hazards, pest infestation, leases, and atypical physical deficiencies. (B) All real estate taxes and assessments, of any type, are assumed fully paid. (C) It is assumed ownership of the property appraised is lawful. (D) It is also assumed the subject property is operated under competent and prudent management. (E) The subject property was appraised as though, and assumed free of indebtedness. (F) The subject real estate is assumed fully compliant with all applicable federal, state, and local environmental regulations and laws. (G) The subject is assumed fully compliant with all applicable zoning ordinances, building codes, use regulations, and restrictions of all types. (H) All licenses, consents, permits, or other documentation required by any relevant legislative or governmental authority, private entity, or organization have been obtained, or can be easily be obtained or renewed for a nominal fee. 24. Conversion of the subject's income into a market value opinion is based upon typical financing terms that were readily available from a disinterested, third party lender on this report’s effective date. Atypical financing terms and conditions do not influence market value, but may affect investment value. 25. All information and comments concerning the location, market area, trends, construction quality, construction costs, value loss, physical condition, rents, or any other data for the subject represent estimates and opinions of the Appraiser. Expenses shown in the Income Approach, if used, are only estimates. They are based on past operating history, if available, and are stabilized as generally typical over a reasonable ownership period. 26. This appraisal was prepared by Nelsen Appraisal Associates, Inc. and consists of trade secrets and commercial or financial information, which is privileged, confidential, and exempt from disclosure under 5 U.S.C. 522 (b) (4). 27. The Appraiser is not required to give testimony or produce documents because of having prepared this report unless arrangements are agreed to in advance. If the Appraiser is subpoenaed pursuant to court order or required to produce documents by judicial command, the client agrees to compensate the Appraiser for his appearance time, preparation time, travel time, and document preparation time at the regular hourly rate then in effect plus expenses and attorney fees. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. 202110-21A Nelsen Appraisal Associates, Inc. Page 21 Contingent and Limiting Conditions 28. Effective January 26, 1992, the Americans with Disabilities Act (ADA) - a national law, affects all non-residential real estate or the portion of any property, which is non-residential. The Appraiser has not observed the subject property to determine whether the subject conforms to the requirements of the ADA. It is possible a compliance survey, together with a detailed analysis of ADA requirements, could reveal the subject is not fully compliant. If such a determination was made, the subject's value may or may not be adversely affected. Since the Appraiser has no direct evidence, or knowledge pertaining to the subject's compliance or lack of compliance, this appraisal does not consider possible noncompliance or its effect on the subject's value. 29. Nelsen Appraisal Associates, Inc. and the Appraiser have no expertise in the field of insect, termite, or pest infestation. We are not qualified to detect the presence of these or any other unfavorable infestation. The Appraiser has no knowledge of the existence of any infestation on, under, above, or within the subject real estate. No overt evidence of infestation is apparent to the untrained eye. However, we have not specifically inspected or tested the subject property to determine the presence of any infestation. No effort was made to dismantle or probe the structure. No effort was exerted to observe enclosed, encased, or otherwise concealed evidence of infestation. The presence of any infestation would likely diminish the property's value. All value opinions in this communication assume there is no infestation of any type affecting the subject real estate or the Appraiser is not responsible for any infestation or for any expertise required to discover any infestation. Our client is urged to retain an expert in this field, if desired. 30. All opinions are those of the signatory Appraiser based on the information in this report. No responsibility is assumed by the Appraiser for changes in market conditions, or for the inability of the client, or any other party to achieve their desired results based upon the appraised value. Some of the assumptions or projections made herein can vary depending upon evolving events. We realize some assumptions may never occur and unexpected events or circumstances may occur. Therefore, actual results achieved during the projection period may differ from those set forth in this report. Compensation for appraisal services is dependent solely on the delivery of this report, and no other event or occurrence 31. No warrantees are made by the Appraiser concerning the property's conformance with any applicable government code or property covenant including but not limited to all laws, ordinances, regulations, agreements, declarations, easements, condominium regulations, restrictions, either recorded or unrecorded. The client is urged to engage the services of a licensed attorney to confirm any legal issue affecting the property appraised. No liability or responsibility is assumed by the Appraiser to determine the cost of replacing or curing any supposedly defective physical component. 32. In the event of an alleged claim due to some defective physical component, the client must notify Nelsen Appraisal Associates, Inc. and allow its representatives and experts to examine and test the alleged defective component before any repairs or modifications are made. If any type of repair or modification is made without the knowledge of the Appraisers, the Appraiser is released from all liability, real or alleged. 202110-21A Nelsen Appraisal Associates, Inc. Page 22 Contingent and Limiting Conditions 33. The client and all explicitly identified intended users agree to notify in writing Nelsen Appraisal Associates, Inc., within one year of this report's preparation date, of any claim relating to or arising from this report regardless of any statute of limitations. If Nelsen Appraisal Associates, Inc. does not receive this written notification within the year period defined in the paragraph, then the claimant releases the Appraiser from all claims arising from or related to this report. 34. The client and all explicitly identified intended users acknowledge that any claim relating to this report shall be settled in accordance with the commercial arbitration rules of the American Arbitration Association with the Parties each paying an equal share of all associated costs. 35. Any alleged claim must be filed in the Circuit Court for the County that encompasses most of or all of Urbandale, Iowa 50322 where the Appraiser's business office is located. If a court of law voids any portion of these Contingent and Limiting Conditions, then the remainder remains in full force and effect. The claimants(s) agree not to contest the venue set forth herein and to submit to, and not contest, the exercise of personal jurisdiction over them by the foregoing court. The claimant(s) waive all rights concerning the exercise of personal jurisdiction of them by the foregoing courts and all claims of or concerning forum non-conveniences in the foregoing forum. 36. Superseding all comments to the contrary regardless of the date, this report may not be transferred or assigned without the prior written consent of Nelsen Appraisal Associates, Inc., the copyright holder. 37. No part of this report shall be published or disseminated to the public by the use of advertising media, public relations media, news media, sales media, electronic devices, or other media without the prior written consent of Nelsen Appraisal Associates, Inc.. This restriction applies particularly as to analyses, opinions, and conclusions; the identity of the Appraiser; and any reference to the Appraisal Institute or its MAI, SRPA, or SRA designations. Furthermore, no part of this report may be reproduced or incorporated into any information retrieval system without prior written permission from Nelsen Appraisal Associates, Inc., the copyright holder. 202110-21A Nelsen Appraisal Associates, Inc. Page 23 Disclosures Professional Standards All leading professional appraisal organizations, the U.S. Congress, all state legislatures, and numerous legal jurisdictions recognize the Uniform Standards of Professional Appraisal Practice (USPAP), promulgated by the Appraisal Foundation. Revised biennially to keep it contemporary, these standards set forth ethical practices and proper procedures for a competent appraisal. This appraisal fully complies with all relevant portions of the USPAP version in effect on the date this report was prepared. It also complies with the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), a federal law. Competency The persons signing this report are licensed to appraise real property in the state the subject is located. They affirm they have the experience, knowledge, and education to value this type property. They have previously appraised similar real estate. 202110-21A Nelsen Appraisal Associates, Inc. Page 24 Area Data Regional Map 202110-21A Nelsen Appraisal Associates, Inc. Page 25 Proximity Map 202110-21A Nelsen Appraisal Associates, Inc. Page 26 Vicinity Map 202110-21A Nelsen Appraisal Associates, Inc. Page 27 Regional Data Des Moines – West Des Moines [DSM-WDM], IA is the largest Core-Based Statistical Area [CBSA] in the State of Iowa and comprises Polk, Dallas, Warren, Jasper, Madison and Guthrie counties. Des Moines, Iowa is the state capital and is also the largest city within the Des Moines – West Des Moines CBSA. The local economy is service-based versus manufacturing as the area is viewed as a national center for agribusiness, insurance and finance. Two major Interstate arteries (I-35 and I-80) meet in Polk County and the Des Moines International Airport recently has undergone an expansion that increased its capacity for passenger and freight traffic. 2020 annual passenger traffic was drastically affected by the COVID-19 Pandemic numbering approximately 1.295 million annual passenger arrivals and departures. 2019 annual passenger arrivals and departures numbered more than 2.920 million – an increase of 5.3% over 2018. 202110-21A Nelsen Appraisal Associates, Inc. Page 28 Regional Data Population – Des Moines–West Des Moines CBSA The Des Moines –West Des Moines CBSA had an estimated population of 699,292 as reported by the United States Census Bureau (as of July 2019). Estimates project the current population to continue to grow through 2023. The following chart shows the metro population change from July 2014 to July 2019: Population – Principal Cities Most of the growth in population between the two most recent census counts occurred in many of the suburban communities surrounding the City of Des Moines. The main suburban areas include West Des Moines, Urbandale and Ankeny. Bondurant, Grimes, and Waukee were faster growing areas from 2010 to 2019. This list shows the population growth (based off census population estimates) of Des Moines area cities for the 12-month period ending July 1, 2019. City Name 2019 Population % Change City Name 2019 Population % Change Des Moines 214,237 -0.8% Clive 17,242 1.3% West Des Moines 67,899 1.9% Grimes 14,804 9.4% Ankeny 67,355 3.2% Norwalk 11,938 3.7% Urbandale 44,379 1.0% Pleasant Hill 10,019 -0.1% Waukee 24,089 6.0% Bondurant 6,958 4.7% Johnston 22,582 2.5% Polk City 4,961 3.7% Altoona 19,221 2.3% Windsor Heights 4,809 -1.5% Source: State Data Center of Iowa; US Census Bureau 202110-21A Nelsen Appraisal Associates, Inc. Page 29 Regional Data Households and Demographics The chart below shows 2020 estimates and 2025 forecast of population distributions and households. Households are a basic unit of demand for many retail goods and services as well as housing. The estimated number of households in the Des Moines-West Des Moines CBSA in 2020 was 283,811, and are forecasted to grow to 307,243 by 2025. As of 2020 the average household size for the CBSA was 2.50 persons. Source: Greater Des Moines Partnership; Esri Forecast 202110-21A Nelsen Appraisal Associates, Inc. Page 30 Regional Data Household Incomes The level of household income often serves as a benchmark for retailers in estimating the potential demand for retail goods and services. Net worth is an indicator of established, affluent neighborhoods that anchor retail and residential real estate activity. The chart below shows 2020 estimates and 2025 forecast of household and per capita incomes for the Des Moines-West Des Moines CBSA. The estimated 2020 median household income, average household income, and per capita income for the CBSA are $70,461, $91,838, and $36,103 respectively. All of these income metrics for the metro are higher than those of the state of Iowa for the same period ($59,343, $79,248, and $31,912 respectively, not shown below). Source: Greater Des Moines Partnership; Esri Forecast 202110-21A Nelsen Appraisal Associates, Inc. Page 31 Regional Data Labor Force, Employment & Unemployment Rate The Des Moines Metro showed a steady path of employment growth leading up to the onset of the COVID- 19 Pandemic in the beginning of 2020 (indicated in yellow on the below graph). Total non-farm employment grew from approximately 317,000 persons in January of 2011 to a peak level of 377,000 persons in February of 2020. Following the onset of the COVID-19 pandemic. Total non-farm employment dropped to a low of 332,000 persons in April of 2020, but employment has rebounded to 362,000 persons as of January 2021. As shown below Des Moines Metro unemployment steadily declined from 2011 until reaching a low of 2.4% in 2018, remaining mainly static throughout 2019. Unemployment peaked at 12% in April of 2020 following the onset of the COVID-19 pandemic. Since April 2020 unemployment levels have steadily declined. As of January 2021, unemployment in the metro is 3.8%, lower than the U.S. average of 6.2%. 202110-21A Nelsen Appraisal Associates, Inc. Page 32 Regional Data Major Employers The Greater Des Moines Partnership identified the following list of major private employers located in the Des Moines region. This list includes financial service, retail, health care, agribusiness and manufacturing firms. In addition, there are 41,600 government employees. 202110-21A Nelsen Appraisal Associates, Inc. Page 33 Regional Data Residential Development The communities in CBSA and surrounding areas showed stable growth in a post-recession market. In 2012- 13, the local housing market showed a strong recovery with a substantial increase in permits that continued through 2017. Permits decreased in 2018 and 2019, but spiked back up to record levels in 2020 The strongest areas of single-family residential development continue to be: Ankeny and Waukee and West Des Moines. Smaller markets such as Altoona, Norwalk, and Grimes are beginning to rival the annual levels of building associated with older more mature suburban areas. DSM- WDM CBSA - Single Family Building Permits 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* Adel 26 30 47 43 119 138 274 174 20 48 Altoona 170 90 98 95 131 132 137 180 152 234 Ames 58 70 127 91 89 105 125 96 63 88 Ankeny 570 937 849 974 614 898 742 592 544 1,120 Bondurant 47 140 80 64 116 123 160 111 83 122 Carlisle 11 7 60 13 16 13 19 18 14 22 Clive 111 111 155 125 62 46 60 89 111 127 Dallas Center 8 6 10 6 5 15 13 7 0 5 Des Moines 115 128 184 116 192 212 173 180 258 219 Granger 9 5 12 6 12 16 14 22 34 68 Grimes 124 129 155 243 197 271 224 183 129 168 Huxley 13 32 45 23 39 53 0 0 0 0 Indianola 21 13 47 29 48 40 39 36 50 81 Johnston 156 131 103 120 169 123 84 87 55 73 Newton 0 4 2 3 2 6 3 0 0 0 Norwalk 64 70 107 85 145 134 240 204 144 249 Pleasant Hill 31 33 41 29 39 46 139 48 73 193 Polk City 40 84 83 50 42 86 90 93 72 77 Runnells 0 0 0 0 0 2 0 0 0 1 Urbandale 182 231 300 156 196 158 168 177 122 246 Van Meter 0 0 0 0 0 0 0 31 14 12 Waukee 139 143 208 294 461 549 376 261 190 637 West Des Moines 249 298 495 241 213 218 339 293 141 438 Winterset 8 13 17 12 10 18 16 21 21 23 Totals 2,152 2,705 3,225 2,818 2,917 3,402 3,435 2,903 2,290 4,251 Source: U.S. Census Bureau (SOCDS) *Preliminary Data 202110-21A Nelsen Appraisal Associates, Inc. Page 34 Regional Data Residential Real Estate The tables below show the Des Moines Area Single-Family and Townhome-Condo sales statistics for the both February and Year-to-Date for the years 2020 and 2021. The graphs below represent the rolling 12- month calculation for median sales prices since 2012. 202110-21A Nelsen Appraisal Associates, Inc. Page 35 Regional Data Gross Domestic Product Gross Domestic Product at the national level is used to establish patterns of economic expansion and contraction. Declines in GDP define a national recession. The below graph shows total a steady increase in annual GDP for the Des Moines Metro since 2009. Total GDP for the metro in 2019 was $52.24 billion, as compared to only $32.80 billion in 2009. GDP can be important for a variety of real estate sectors including office, industrial and hotel activity by providing an indicator of current activity in real estate [both commercial and residential] and capital markets [finance and insurance] as well as construction. 202110-21A Nelsen Appraisal Associates, Inc. Page 36 Regional Data Retail Sales The total volume of retail sales provides a useful tool for evaluating the current state of the retail real estate market. Increasing sales is generally related to the total demand for retail space. Per capita sale figures can indicate whether an area is a center of retail trade that serves customers living in other geographic areas. The table below shows both total sales and per capita sales for each of the metro’s counties for both fiscal year 2018 and fiscal year 2019. Notable patterns include the dominance of Polk County as the center of shopping center development and the emergence of Dallas County as a sizeable rival with sales over $1.0 billion per year. DSM-WDM Retail Sales By County Total (in Thousands) Per Capita County FY 2018 FY 2019 FY 2018 FY 2019 Dallas 1,264,667 1,302,383 14,277 14,202 Jasper 332,601 327,033 8,967 8,794 Guthrie 64,430 62,789 6,031 5,865 Madison 101,892 110,681 6,328 6,802 Polk 8,703,555 8,762,759 18,014 17,957 Warren 336,444 345,106 6,656 6,735 Total 10,803,589 10,910,751 60,273 60,355 Source: ISU Retail Trade Analysis Report 2019 202110-21A Nelsen Appraisal Associates, Inc. Page 37 Regional Data Summary – Cyclical Pattern The Des Moines Area has experienced growing levels of employment and population, especially during the last twenty years. The area’s economy proved resilient during the great recession and is recovering well economically for the COVID-19 pandemic with strong prospects for future economic growth. Real estate generally has four market cycles. "Understanding where the market is and forecasting the extent of duration of the cycle are important in projecting the pattern of future income."1 These cycles are depicted below. The Des Moines area economy has moved into the Expansion stage with many indicators exceeding all-time record levels. 1 Advanced Concepts & Case Studies, pg 253, Appraisal Institute, copyright 2010 202110-21A Nelsen Appraisal Associates, Inc. Page 38 Proximity Features Expected Changes in Economic Base Protection From Adverse Conditions Demand for Real Estate Like Subject Potential Additional Supply Like Subject Building Age Range {excluding extremes} Oversupply of Property Like Subject General Appearance of Properties Location Land Use Change Police & Fire Protection Expressway Access Employment Centers Property Compatibility Appeal to Market None Average Adequate Substantial Potential 2 to 10 Years None Average Urban Not Likely Average 1-2 miles Under a mile Average Average Nearby Land Uses Single-Family Multifamily Condominiums Retail Office Industrial Institutional Public Use Other – Vacant Land ---------------- Total 40% 05% 05% 15% 05% 00% 00% 00% 30% ------ 100% 202110-21A Nelsen Appraisal Associates, Inc. Page 39 Aerial View 202110-21A Nelsen Appraisal Associates, Inc. Page 40 Identification of the Subject The real estate appraised consists of three parcels of land totaling approximately 64.4 acres, which are part of the Kettlestone Master Planned Community, a 1,700-acre development generally bordered by Hickman Road to the north and I-80 to the south. The subject parcels are located along the east side of Grand Prairie Parkway, between SE Tallgrass Lane and SE Ashworth Road, within Waukee. Since the parcels consist of vacant land, they do not yet have common addresses. Legal Descriptions A professional surveyor and/or legal counsel should verify the following legal descriptions before relying upon, or using them as part of any conveyance, or any other document. These abbreviated legal descriptions were obtained from public records and are assumed accurate. Parcel 16-04-427-001 ASHWORTH NORTH PLAT 1 OUTLOT Z, Waukee, Dallas County, Iowa Parcel 16-03-300-016 PARCEL 19-12 NW SW, Waukee, Dallas County, Iowa Parcel 16-03-300-018 PARCEL 19-13 NW SW, Waukee, Dallas County, Iowa 202110-21A Nelsen Appraisal Associates, Inc. Page 41 Plat Map 202110-21A Nelsen Appraisal Associates, Inc. Page 42 Photographs Northern portion of the subject land looking southeast Northern portion of the subject land looking east 202110-21A Nelsen Appraisal Associates, Inc. Page 43 Looking south from the north end of the subject land Southern portion of the subject land looking east 202110-21A Nelsen Appraisal Associates, Inc. Page 44 Looking north from around the middle of the subject land Southern portion of the subject land looking southwest 202110-21A Nelsen Appraisal Associates, Inc. Page 45 Looking north along Grand Prairie Parkway Looking south along Grand Prairie Parkway 202110-21A Nelsen Appraisal Associates, Inc. Page 46 Sale History On-line public records and / or a private data-reporting service were used to search for prior sales of the subject real estate. This research discovered the following conveyances of the subject during the three-years preceding this report's effective value date. Parcel 16-03-300-016 Parcel 16-03-300-018 No sale or option agreements are now pending. Subject’s Current Ownership Owner Information Source Ashworth Properties Inc. Dallas County Assessor Flood Hazard According to the appropriate Federal Emergency Management Agency (FEMA) flood map, which is identified below, the subject property is not located in a zone "A" special flood hazard. Flood Map Number 19049C0355F Flood Map Date December 7, 2018 Flood Zone Out Flood Maps published by FEMA are not precise. If anyone desires a precise determination of the subject's flood hazard classification, a professional engineer, licensed surveyor, or local governmental authority should make an exact determination. 202110-21A Nelsen Appraisal Associates, Inc. Page 47 Flood Map 202110-21A Nelsen Appraisal Associates, Inc. Page 48 Environmental Risks Disclosure During the course of this appraisal, the appraiser(s) did not detect or attempt to discover any environmental hazard on, under, above, or within the subject real estate. No overt evidence of any environmental hazard is apparent to the untrained eye. It should be known the appraiser(s) did not view the subject property with the intent of detecting any environmental hazard. It is beyond the expertise of the appraiser(s) to detect or determine the chemical nature of any substance or gas. No effort was made to dismantle or probe any part of the property to discover enclosed, encased, or concealed hazards. No effort was exerted to ascertain the presence of any environmental hazard including but not limited to the following. Asbestos Urea-formaldehyde insulation Underground storage tanks Soil contamination or deficiencies Lead-based paint Toxic mold Radon PCB Chemical spills Fire resistant treated plywood (FRTP) Flood hazards are detailed elsewhere in this report. Except as enumerated herein, the appraiser(s) were not given the results of any environmental testing on or near the property being appraised. Neither observation of the subject property, or research conducted as part of a typical real estate appraisal suggest the presence of any hazardous substance or detrimental environmental condition affecting the subject. Nearby sites were not investigated to determine whether they are contaminated. Public information and other Internet sources were not researched to determine the presence of hazardous substances or detrimental environmental conditions in the subject's vicinity. Federal, State, and local laws concerning any hazardous substance or gas are sometimes contradictory. Therefore, any needed clean up should comply with the most stringent laws. The appraiser(s) are not informed or trained in environmental legalities. It is assumed no hazardous substance or gas adversely affects the subject real estate. If the subject is adversely influenced by a hazardous condition, then the subject's market value would be impaired. Recommendation The presence of any hazardous condition usually diminishes market value. The value opinion formed in this report assumes there is no environmental hazard affecting the subject real estate. No responsibility is assumed by the appraiser(s) or Nelsen Appraisal Associates, Inc. for any hazard, or for any expertise required to discover any environmentally hazardous condition. Our client is urged to retain an expert in this field, if desired. 202110-21A Nelsen Appraisal Associates, Inc. Page 49 Size Calculations Subject Site Address East side of Grand Prairie Parkway, between SE Tallgrass Lane and SE Ashworth Road Waukee, Iowa Dimensions Various Size 64.39 Acres Easements None known or assumed beyond typical utility/drainage type Alley None Encroachments None known; none assumed Access Typical Shape Irregular Street Paving Concrete paved Curbs & Gutters Concrete curbs, concrete gutters Sidewalks Concrete Topography Gently rolling Gas Public Water & Sewer Public sewer and water Parcel Size (SF) Size (Acres)Zoning 16-04-427-001 2,385,781 54.77 K-OF, K-MF-MED, K-RC 16-03-300-016 144,619 3.320 A-1 16-03-300-018 274,428 6.300 K-MF-ROW (Planned Development District Overlay) Total 2,804,828 64.39 202110-21A Nelsen Appraisal Associates, Inc. Page 50 Real Estate Taxes Throughout Dallas County, the Total Assessed Value is supposed to represent 100% of market value for all property types. Hence, the assessor’s implied market value can be calculated by dividing 100% into the Total Assessed Value. County Dallas Parcel ID # 16-04-427-001 Assessment Year 2021 Total Assessed Value $74,790 Total Tax Dollars $1,550 County Dallas Parcel ID # 16-03-300-016 Assessment Year 2021 Total Assessed Value $4,330 Total Tax Dollars $94 County Dallas Parcel ID # 16-03-300-018 Assessment Year 2021 Total Assessed Value $7,720 Total Tax Dollars $168 Real estate taxes are a primary mechanism used by local government to gather the monies needed to fund operations. Too little funds can limit governmental services. Excessive tax burden can hinder real estate values. For the subject, taxes are not unduly burdensome. All three parcels are currently taxed as Agricultural land. 202110-21A Nelsen Appraisal Associates, Inc. Page 51 Zoning The land is currently zoned “K-OF” Kettlestone Office District, “A-1” Agricultural District, “K-MF-MED” Kettlestone Multi-Family Stacked Medium District, “K-MF-ROW” Kettlestone Multi-Family Rowhouse District, and “K-RC” Kettlestone Retail Community District. 169.26 K-OF KETTLESTONE OFFICE DISTRICT The K-OF District is intended and designed to provide certain areas of the Kettlestone development with professional office uses consisting of single or multi-tenant buildings that are one or more stories tall. Sites should be well landscaped and buildings should have a high level of exterior finish to promote a professional image. The K-OF zoning designation is reserved for those properties located within the adopted Kettlestone District Boundary Map of the Kettlestone Design Guidelines document identifying areas for residential, commercial, office and mixed uses. 1. Principal Permitted Uses. Only the uses of structures or land listed in this section shall be permitted in the K-OF District. A. Office uses such as: (1) Business and professional offices including the following: law, engineering, real estate, insurance, accounting, bookkeeping, finance, banking (including retail banks with drive-throughs), stock brokerage, and uses of a like or similar nature. (2) The office of a doctor, dentist, osteopath, chiropractor, optometrist, chiropodist, or similar profession. (3) Clinics or group medical centers, including dental clinics, but not including animal clinics or animal hospitals. (4) Hospitals, libraries, funeral homes, and mortuaries. (5) Office buildings serving the management, research, design, marketing and production needs of the general business community. B. The low-intensity commercial service uses, intended primarily to serve the occupants and patrons of the Kettlestone Office District, shall be permitted within a building, housing a use permitted above: (1) Office supply stores. (2) Computer and electronic equipment sales and service stores. (3) Drug stores. (4) Gift shops. (5) Restaurants and coffee shops (not including drive-through restaurants and coffee shops). (6) Travel agencies. C. Places of assembly such as churches, other places of worship, public and private schools, civic uses, and fraternal lodges. 2. Permitted Accessory Uses. A. Private garage or carport. B. Accessory uses and structures customarily incidental to any principal permitted use. C. Temporary buildings for uses incidental to construction work, which buildings shall be removed upon the completion or abandonment of the construction work. 202110-21A Nelsen Appraisal Associates, Inc. Page 52 3. Bulk Regulations. The following minimum requirements shall be observed subject to the modifications contained in Section 165.19. Lot Area No minimum requirement Lot Width No minimum requirement Front Yard No minimum for principal permitted uses. 20 feet minimum for accessory structures Side Yards No minimum for principal permitted uses unless adjacent to adjoining single-family, in which case the minimum setback shall be 50 feet. 5 feet for accessory structures. Rear Yard No minimum for principal permitted uses unless adjacent to adjoining single-family, in which case the minimum setback shall be 50 feet. 5 feet for accessory structures. Principal Building Separation 25 feet Accessory Building Separation 25 feet between principal building and accessory building Minimum Height Principal building under 15,000 square feet – 1 story Principal building over 15,000 square feet – 2 stories Maximum Height Principal building – 8 stories Accessory building – 1 story Floor Area Ratio 0.35 4. Off-Street Parking and Loading. One space per 250 square feet of retail and office uses. Spaces for all other uses shall be provided in accordance with the provisions of Chapter 168 of these zoning regulations. 5. Minimum Open Space. The total land area devoted to open space and landscaping shall not be less than 25 percent of the gross land area included in the building lot. Such open space shall be maintained as grassed and landscaped area and shall not include access drives, parking areas, structure, or buildings, except ornamental structures included as part of the landscaping theme. 6. Site Plan Requirements. See Chapter 160 of this Code of Ordinances and the adopted Kettlestone Design Guidelines. 202110-21A Nelsen Appraisal Associates, Inc. Page 53 169.24 K-RC KETTLESTONE RETAIL COMMUNITY DISTRICT The K-RC District is intended and designed to provide certain areas of the Kettlestone development with retail areas that are larger scale than retail neighborhood and are located within closer proximity to employment centers to provide a greater range of retail services for a wider population area. The K-RC zoning designation is reserved for those properties located within the adopted Kettlestone District Boundary Map of the Kettlestone Design Guidelines document identifying areas for residential, commercial, office, and mixed uses. 1. Principal Permitted Uses. Only the uses of structures or land listed in this section shall be permitted in the K-RC District. A. Retail businesses and service establishments, contained within single-or multi-tenant building that is no larger than 50,000 square feet of total gross floor area, such as: (1) Retail sales stores including drug stores, bakeries, and grocery stores (outdoor storage is prohibited but limited outdoor display may be permitted as part of the site plan approval process). (2) Personal service businesses such as hair and beauty salons, dry-cleaners and launderettes, shoe and watch repair shops. (3) Restaurants and Coffee Shops: dine-in, carry-out and drive-through. Outdoor seating areas may be permitted as part of the site plan approval process. (4) Bars, cocktail lounges, taverns, or saloons. Outdoor seating areas may be permitted as part of the site plan approval process. (5) Convenience stores, gas stations, car washes, automobile repair and service businesses, excluding body repair and painting. (6) Places of assembly such as churches, other places of worship, public and private schools, civic uses, and fraternal lodges. (7) Child care centers and nursery schools. (8) Commercial swimming pools, skating rinks, golf driving ranges, miniature golf courses, drive-in theaters, and similar recreational uses and facilities. (9) Animal hospitals and veterinaries. (10) Hotels and motels. B. Office uses such as: (1) Medical clinics, group medical centers, or the office of a doctor, dentist, osteopath, or similar profession. (2) Business and professional offices including the following: law, engineering, real estate, insurance, banks, financial services, and similar uses. 2. Permitted Accessory Uses. A. Private garage or carport. B. Accessory uses and structures customarily incidental to any principal permitted use. C. Temporary buildings for uses incidental to construction work, which buildings shall be removed upon the completion or abandonment of the construction work. 3. Bulk Regulations. The following minimum requirements shall be observed subject to the modifications contained in Section 165.19. 202110-21A Nelsen Appraisal Associates, Inc. Page 54 Lot Area No minimum requirement Lot Width No minimum requirement Front Yard No minimum for principal permitted uses. 20 feet minimum for accessory structures Side Yards No minimum for principal permitted uses unless adjacent to adjoining single-family, in which case the minimum setback shall be 50 feet. 5 feet for accessory structures. Rear Yard No minimum for principal permitted uses unless adjacent to adjoining single-family, in which case the minimum setback shall be 50 feet. 5 feet for accessory structures. Principal Building Separation 25 feet Accessory Building Separation 25 feet between principal building and accessory building Maximum Height Principal building – 4 stories Accessory building – 1 story Floor Area Ratio 0.35 4. Off-Street Parking and Loading. One space per 250 square feet of retail and office uses. Spaces for all other uses shall be provided in accordance with the provisions of Chapter 168 of these zoning regulations. 5. Minimum Open Space. The total land area devoted to open space and landscaping shall not be less than 20 percent of the gross land area included in the building lot. Such open space shall be maintained as grassed and landscaped area and shall not include access drives, parking areas, structure, or buildings, except ornamental structures included as part of the landscaping theme. 6. Site Plan Requirements. See Chapter 160 of this Code of Ordinances and the adopted Kettlestone Design Guidelines. 202110-21A Nelsen Appraisal Associates, Inc. Page 55 169.20 K-MF-STACKED MED KETTLESTONE MULTI-FAMILY STACKED MEDIUM DISTRICT The K-MF-Stacked Med District is intended and designed to provide certain areas of the Kettlestone development with medium density residential units in a row house or condominium type setting. Units may be located on individual lots (for horizontally attached buildings) or on a common association lot under a condominium regime. Buildings should be two to three stories in height, placed close to the street and include front porches. Garages should be located in a manner to reduce their public visibility and impact. The K-MF-Stacked Med zoning designation is reserved for those properties located within the adopted Kettlestone District Boundary Map of the Kettlestone Design Guidelines document identifying areas for residential, commercial, office, and mixed uses. 1. Principal Permitted Uses. Only the uses of structures or land listed in this section shall be permitted in the K-MF-Stacked Med District. A. Row dwellings or townhomes consisting of no less than three dwelling units in one building or attached structure. B. Multiple-family dwellings intended for rental (apartments) or owner occupancy (condominiums) of no fewer than three dwelling units in one building or attached structure. C. Nursing, convalescent, and retirement homes. 2. Permitted Accessory Uses. A. Private garage or carport. B. Accessory uses and structures customarily incidental to any principal permitted use. C. Home occupations as permitted in and as limited by Section 165.11. D. Temporary buildings for uses incidental to construction work, which buildings shall be removed upon the completion or abandonment of the construction work. 202110-21A Nelsen Appraisal Associates, Inc. Page 56 3. Bulk Regulations. The following minimum requirements shall be observed, subject to the modifications contained in Section 165.19. Lot Area No minimum requirement Lot Width No minimum requirement Front Yard No minimum for principal permitted uses. 20 feet minimum for accessory structures Side Yards No minimum for principal permitted uses unless adjacent to adjoining single-family, in which case the minimum setback shall be 30 feet. 5 feet for accessory structures. Rear Yard No minimum for principal permitted uses unless adjacent to adjoining single-family, in which case the minimum setback shall be 30 feet. 5 feet for accessory structures. Principal Building Separation 10 feet Accessory Building Separation 30 feet between principal building and accessory building Minimum Height Principal building – 2 stories Maximum Height Principal building – 3 stories Accessory building – 1 story Maximum Density 14 dwelling units per acre Minimum Floor Area 600 square feet per unit 4. Off-Street Parking and Loading. A minimum of two parking spaces per unit is required plus one visitor space per five units. One parking space per unit shall be enclosed. 5. Minimum Open Space. The total land area devoted to open space and landscaping shall not be less than 20 percent of the gross land area included in the building lot. Such open space shall be maintained as grassed and landscaped area and shall not include access drives, parking areas, structure, or buildings, except ornamental structures included as part of the landscaping theme. 6. Site Plan Requirements. See Chapter 160 of this Code of Ordinances and the adopted Kettlestone Design Guidelines. 202110-21A Nelsen Appraisal Associates, Inc. Page 57 169.19 K-MF-ROW HOUSE KETTLESTONE MULTI-FAMILY ROW HOUSE DISTRICT The K-MF-Row House District is intended and designed to provide certain areas of the Kettlestone development with medium density residential units in a row house or townhome setting. Units may be located on individual lots or on a common association lot under a condominium regime. Row houses should be two to three stories in height, placed close to the street and include front porches. Garages should be encouraged to be rear loaded. The K-MF-Row House zoning designation is reserved for those properties located within the adopted Kettlestone District Boundary Map of the Kettlestone Design Guidelines document identifying areas for residential, commercial, office, and mixed uses. 1. Principal Permitted Uses. Only the uses of structures or land listed in this section shall be permitted in the K-MF-Row House District. A. Row dwellings or townhomes consisting of no fewer than three dwelling units and no more than eight dwelling units in one building or attached structure. 2. Permitted Accessory Uses. A. Private garage or carport. B. Accessory uses and structures customarily incidental to any principal permitted use. C. Home occupations as permitted in and as limited by Section 165.11. D. Temporary buildings for uses incidental to construction work, which buildings shall be removed upon the completion or abandonment of the construction work. 3. Bulk Regulations. The following minimum requirements shall be observed, subject to the modifications contained in Section 165.19. Lot Area No minimum requirement Lot Width No minimum requirement Front Yard 15 feet maximum when fronting on a public right-of-way or private street frontage. 20 feet minimum for accessory structures Side Yards 5 feet for both principal and accessory structures. For the purpose of determining side yard requirements in row dwellings, the entire row dwelling structure shall be considered one building Rear Yard 30 feet Accessory Building Separation 30 feet between principal building and accessory building Minimum Height Principal building – 2 stories Maximum Height Principal building – 3 stories Accessory building – 1 story Maximum Density 12 dwelling units per acre Minimum Floor Area 800 square feet per unit 4. Off-Street Parking and Loading. A minimum of two parking spaces per unit is required. One parking space per unit shall be enclosed. 202110-21A Nelsen Appraisal Associates, Inc. Page 58 5. Minimum Open Space. The total land area devoted to open space and landscaping shall not be less than 20 percent of the gross land area included in the building lot. Such open space shall be maintained as grassed and landscaped area and shall not include access drives, parking areas, structure, or buildings, except ornamental structures included as part of the landscaping theme. 6. Site Plan Requirements. See Chapter 160 of this Code of Ordinances and the adopted Kettlestone Design Guidelines. 202110-21A Nelsen Appraisal Associates, Inc. Page 59 Zoning Map 202110-21A Nelsen Appraisal Associates, Inc. Page 60 The owner indicated Areas A & C would likely be developed with office and Areas B, D and E would most likely be developed with Multi-Family. This is reasonable, based on location and surrounding land use. As such, we have estimated the zoning/usage breakdown as follows: Zoning % Acres SF K-OF 30%19.32 841,449 K-RC (Re-zoned to Med Density Residential)30%19.32 841,449 A-1 (Most likely Med Density Residential)5%3.32 144,619 K-MF-MED & K-MF-ROW 35%22.44 977,312 Total 100%64.39 2,804,828 202110-21A Nelsen Appraisal Associates, Inc. Page 61 Analyses & Conclusions Value Introduction For real estate consisting of land and building(s), there are three primary valuation methods - the cost approach, sales comparison approach, and income approach. Unless stated otherwise, only those considered applicable and necessary to produce credible results are developed in this report. Highest and Best Use Introduction A highest and best use identifies the most reasonably probable and appropriately supported use of the property appraised. Since market conditions change, a property's highest and best use may change as well. This analysis is an essential step in the determination of market value. Market dynamics determines a property's use and an appraisal values that use. Practically speaking, a highest and best use analysis forms a framework for the proper selection of comparables. There are two types of highest and best use. The first is highest and best use of land as though vacant. If a building already exists, the second variety is highest and best use as though now improved. The later considers whether the existing building should be retained as is, demolished, remodeled, renovated, repaired, enlarged, or converted to an alternate use. Both types require separate analyses. Current usage may or may not be different from the near future highest and best use. There are four main tests in a highest and best use analysis, which are summarized below. ➢ Legal permissibility - governmental requirements and limitations like zoning are considered as well as other legal issues like deed restrictions, easements, and leases. ➢ Physical attributes like size, design, and physical condition are weighed ➢ Financial feasibility is ascertained via either an implied or calculated method ➢ Maximum productivity is determined If more than one use survives the first three tests, the use that produces the highest, appropriately supported, positive value with the least risk is the highest and best use. 202110-21A Nelsen Appraisal Associates, Inc. Page 62 Demand analyses can be categorized into two different levels of detail - Inferred and Fundamental. A fundamental analysis forecasts future demand from projections of broad demographic and economic data like population, income, and employment. Existing supply is inventoried. Then, the relationship of supply and demand is weighed to determine residual demand. If residual demand is positive, more of that property type is needed. Of course, the opposite is also true. An inferred analysis is based on local trends and patterns from which inferences are made. This type analysis presumes that recent past trends will continue for the near future. Sale prices, number of competitive listings, marketing intervals, and / or price changes for other similar properties infer there is adequate demand for the subject at a price level congruous with the available data. An inferred analysis emphasizes historical data while a fundamental analysis is based on expected future occurrences. There are two types of highest and best use - “as though now vacant” and “as though now improved”. The former presumes the land is vacant and available for development. The latter considers whether the building should be retained as is, renovated, remodeled, repaired, enlarged, demolished, or converted to an alternate use. This appraisal only considers the first type. Buyer Types The most likely buyer type is crucial to highest and best use. Different buyer types have different motivations and different perceptions of risk. The buyer type must be identified to better understand applicable approaches and the selection of cap rates and yield rates. Different buyer types are defined below. 1 Owner-User Acquires real estate mostly for its use or control. Vacancy & investment yield are not primary criteria. Property suitability is the major objective. Typically, a medium to long-term owner. 2 Secure Income Investor Seeks an established, secure income stream; normally does not change the property in any meaningful way. Usually favors a long-term ownership. 3 Developer Acquires real estate to physically or legally change it in some significant fashion; accepts substantial risk so expects major reward over a short-to-medium holding period. 4 Speculator Buys real estate solely as an investment with most of the reward at termination. Property use is not a primary consideration; medium-to-long-term holding period; Usually buys during very weak market conditions, so accepts huge risk. Mantra: buy low, sell high. 5 Value Growth Investor Buys real estate mostly for price appreciation. Property use is usually not a major consideration. Typically buys during conditions of rapidly increasing prices; prefers a short-to-medium ownership period. 202110-21A Nelsen Appraisal Associates, Inc. Page 63 Ideal Improvement Identification of the "ideal improvement" is an essential element of highest and best use. If the property appraised is vacant land, the ideal describes what should be built. If the existing improvements (one or more buildings and site improvements) have the same or similar attributes as the ideal, then the existing improvements have no or minimal depreciation. Obviously, the opposite also applies. The described ideal improvement is as specific as market data will allow. The ideal improvement is the physical use of the land as though vacant. This appraisal's highest and best use was based, in part, on an inferred demand analysis. Following below are summary considerations used to form a highest and best use determination for the property appraised. ➢ Zoning permits a range of uses or related accessory uses ranging from medium density residential to commercial. o The K-OF zoned land is located along Grand Prairie Parkway, a major north/south arterial providing access to I-80 to the south. Multiple office and retail buildings area located along this arterial with additional commercial development planned in the future, including Holmes Murphy corporate campus (adjacent to the south), Kum & Go, and Mills Fleet Farm. o The K-RC zoned land does not have frontage along Grand Prairie Parkway, but is located adjacent to land with similar zoning. It will most likely be developed with a retail/service- retail use. o The K-MF-MED and K-MF-ROW land lacks frontage along a major arterial and, based on its location and surrounding development, it will most likely be developed into a medium density use. o The A-1 zoned land is a smaller piece of land lacking frontage along a major arterial. Based on its location and surrounding development, it will most likely be developed into a medium density use. ➢ Nearby lands are compatibly zoned. There are no known deed restrictions, leases, or other legal issues, which preclude or delay the highest and best use. There is no substantial potential for rezoning to a significantly different use. ➢ Physical attributes of the property appraised are well suited to serve the use identified below. Usage of the property in this fashion produces a positive reward with acceptable risk. Timing of Use A crucial component of a highest and best use is timing. If the timing of a use is not now, when is it? When timing for a specific use cannot be identified, then that use is not the best. If the highest use is not within a decade, then the time-value of money usually precludes that use. When the timing of a use is within a few years, what is the interim use? Remaining dormant is a legitimate interim use. 202110-21A Nelsen Appraisal Associates, Inc. Page 64 Most Likely User The most likely user is another key issue. Users of an age-restricted multiunit residential structure have needs and preferences that are much different from young married couples with small children. These preferences and needs affect value, so the most likely user should be identified to judge the extent that existing or proposed improvements fulfill those needs. Nationally-recognized users typically pay higher prices and rents as compared to local users. Highest & Best As Though Now Vacant Land – Commercial Land Physical Use Office Timing of Physical Use Interim Use Immediate Not Applicable Market Participants Most Likely Buyer Most Likely User A developer As a vacant site, the developer Highest & Best As Though Now Vacant Land – Multi-Family Land Physical Use Medium Density Residential Timing of Physical Use Interim Use Immediate Not Applicable Market Participants Most Likely Buyer Most Likely User A developer As a vacant site, the developer Considering the foregoing highest and best use determinations, comparables were selected with the same or similar highest and best use. This data is very influential while forming a value opinion for the property appraised. 202110-21A Nelsen Appraisal Associates, Inc. Page 65 Land Value “As Is” Land Value The best method of valuing vacant land is the sales comparison approach. Sales of similar sites are gathered and compared to the parcel being appraised. Differences affecting value are noted. Adjustments to compensate for dissimilarities are applied applicable transactions. Adjusted comparables produce an indication of value for the subject parcel. Any factor can affect value. Those considered during this appraisal’s land valuation process included yet are not limited to prominence of location, date of sale, size, shape, availability of utilities, zoning, topography, and access. Numerous sales were reviewed; however, only those deemed most comparable were selected for detailed analysis. All conveyed on an “arm’s length” basis except if specifically noted otherwise. Land sales shown herein are presented on a dollar per square foot as a common denominator. To estimate the value of the land “as is,” we analyzed current listings and recent sales of parcels of multi-family and commercially zoned land. Information pertaining to each of the comparable sales is included on the following pages. 202110-21A Nelsen Appraisal Associates, Inc. Page 66 Listings Listing 1 202110-21A Nelsen Appraisal Associates, Inc. Page 67 Listing 2 202110-21A Nelsen Appraisal Associates, Inc. Page 68 202110-21A Nelsen Appraisal Associates, Inc. Page 69 Listing 3 202110-21A Nelsen Appraisal Associates, Inc. Page 70 202110-21A Nelsen Appraisal Associates, Inc. Page 71 202110-21A Nelsen Appraisal Associates, Inc. Page 72 Commercial (Office) Land Information pertaining to each of the comparable sales is included on the following pages. Land Sale No. 1 Property Identification Property Type Vacant Land Address/Legal Description THE SHOPS AT KETTLESTONE NORTH PLAT 4 OUTLOT X, Waukee, Dallas County, Iowa Tax ID 16-04-332-001 Sale Data Grantor ARAC, LLC Grantee E & J LLC Sale Date August 12, 2021 Deed Book/Page 2021-24441 Sale Price $3,364,718 Land Data Zoning Utilities Shape K-OF, Kettlestone Office District All Public Irregular Land Size Information Gross Land Size 10.92 Acres or 475,675 SF Indicators Sale Price/Usable Acre $308,124 Sale Price/Usable SF $7.07 Remarks: The listing brochure indicates this land was marketed at a price of $8.00 per square foot. 202110-21A Nelsen Appraisal Associates, Inc. Page 73 Land Sale No. 2 Property Identification Property Type Vacant Land Address Tax ID NEC Grand Prairie Parkway & I-80, Waukee, Dallas County, Iowa 16-09-200-004, 16-09-200-008 & 16-09-200-009 Sale Data Grantor FAK, LLC & TELBY, LLC Grantee HURD BTS, LLC Sale Date January 11, 2019 Deed Book/Page 2019-602, 2019-606, 2019-608, 2019-610 Sale Price $8,000,000 Land Data Zoning Utilities Shape K-RR, Kettlestone Retail Regional District All Public Irregular Land Size Information Gross Land Size 36.92 Acres or 1,608,236 SF Usable Land Size 36.36 Acres or 1,583,842 SF Indicators Sale Price/Usable Acre $218,162 Sale Price/Usable SF $5.05 Remarks: Approximately 24,394 square feet (Parcel 16-09-200-009) was ROW and not considered usable. 202110-21A Nelsen Appraisal Associates, Inc. Page 74 Land Sale No. 3 Property Identification Property Type Vacant Land Address Tax ID NEC Hickman Road & Alices Road, Waukee, Dallas County, Iowa 12-26-300-004 & 12-26-300-005 Sale Data Grantor WRIGHT TREE SERVICE INC Grantee HURD LAND COMPANY Sale Date July 23, 2019 Deed Book/Page 2019-13912 Sale Price $6,000,000 Land Data Zoning Utilities Shape A-1 All Public Irregular Land Size Information Gross Land Size 31.64 Acres or 1,378,239 SF Indicators Sale Price/Usable Acre $189,633 Sale Price/Usable SF $4.35 Remarks: Approximately 24,394 square feet (Parcel 16-09-200-009) was ROW and not considered usable. 202110-21A Nelsen Appraisal Associates, Inc. Page 75 Land Sale No. 4 Property Identification Property Type Vacant Land Address 8300 Mills Civic Parkway, West Des Moines, Dallas, County, Iowa Tax ID 16-14-300-018 Sale Data Grantor Etzel, Clara Belle, etal Grantee Midland National Life Insurance Company Sale Date 3/27/2019 Deed Book/Page Verification Sales broker Sale Price $5,575,680 Cash Equivalent $5,575,680 Land Data Zoning PUD Land Size Information Size 25.00 Acres or 1,088,960 SF Indicators Sale Price/Acre $223,027 Sale Price/SF $5.12 Remarks Sammons Financial Group purchased this site, along with the southwest corner of Mills Civic Parkway and S. 81st Street, for a new corporate campus which will start with a 200,000 square foot office building. This site is immediately west of the Athene USA corporate campus. IMT Corporate Headquarters is located at the northeast corner of Mills Civic Parkway and S. 81st Street. IMT Athene 202110-21A Nelsen Appraisal Associates, Inc. Page 76 Quantitative Adjustment Grid – Office Land Sale Subject Address Office Land City Waukee Sale Price (SP)N/A Area (Sq Ft)841,449 SP/$SF N/A Attribute Adj Attribute Adj Attribute Adj Attribute Adj Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Cash Equivalency Typical Typical Typical Typical Typical Typical Conditions of Sale Typical Typical Typical Typical Typical Typical Market Conditions 11/22/2021 8/12/2021 0%1/11/2019 15%7/23/2019 12%3/27/2019 15% Adjusted Sale Price N/A Adjusted Price / Sq. Ft.N/A Other Considerations 1 1 1 1 Location Good Similar 0%Superior -10%Superior -10%Similar 0% Size 841,449 475,675 -20%1,583,842 20%1,378,239 20%1,088,960 0% Shape Average Similar 0%Similar 0%Siimlar 0%Similar 0% Zoning K-OF K-OF 0%C-1 -25%A-1 0%PUD 0% -20%-15%10%0% $5.66 $4.94 $5.36 $5.89 $5.89 $5.12 $4.88 3 NEC Hickman Rd & Alices Rd Waukee $6,412,032 Total Adjustment (Rounded) Ind. Value Subject Per Sq Ft $3,364,718 $7.07 $9,200,000 $5.81 $6,720,000 $7.07 1,583,842 $5.05 Waukee 1,088,960 $8,000,000 $6,000,000 1,378,239 1 South of SE Tallgrass Ln, west of Grand Prairie Parkway Waukee $3,364,718 475,675 NEC Grand Prairie Pkwy & I-80 2 4 8300 Mills Civic Pkwy West Des Moines $5,575,680 $4.35 Analysis & Conclusions The subject and comparable sales consist of vacant development land in the Western suburbs, with similar zoning as the subject. These commonalities justify inclusion of these transactions in this analysis. Often there are differences between the property appraised ("the subject") and a comparable sale. When the dissimilarity affects value, an adjustment to the sale price of the comparable is necessary. Property Rights Agreements or laws create partial interests in real estate. A deed restriction or life estate usually reduces rights and value. If the subject is not affected by these limitations and a comparable is, then the comparable's sale price needs an upward property rights adjustment. In another situation, unfavorable leases eliminate a landlord's right to collect market rent, so the real estate sells for a below- market price. If the property appraised has no lease adversities and a comparable does have unfavorable leases, then the comparable requires upward adjustment. Unless stated otherwise, property rights are virtually the same for the subject and all cited conveyances. Hence, no adjustments are necessary for this element of comparison. Financing Sub-market financing is a common technique used to finance the acquisition of real estate during periods of high interest rates. When non-market financing is used, the financing may be favorable to the buyer so the sale price is inflated. The escalated price can be envisioned as a composite of the worth of real estate plus the value of advantageous financing. Since value created by financing is not real property, the contribution of the advantageous financing must be deducted from total sale price to derive market value for just the realty. On the opposite hand, there are instances where the buyer assumes unfavorable financing, so the sale price is diminished. In the latter case, an upward adjustment must be applied to the sale price of the comparable thusly deriving the market value of the real estate. Unless a statement is made to the contrary, non-market financing was not used to acquire any comparable sale cited in this report. Therefore, no compensations are needed for financing. 202110-21A Nelsen Appraisal Associates, Inc. Page 77 Conditions of Sale An adjustment for conditions of sale is necessary when a criterion of market value is violated. It could compensate for unusual buyer or seller motivations. For instance, when a seller gives a buyer an atypical rebate, discount, credit, or something of value to induce a conveyance, the sale price is usually inflated. In this case, it is logical to deduct the worth of the giveback from the sale price. Residual sums represent the property's market value. In another scenario, a buyer may pay a premium to facilitate an assemblage. In this instance, the premium must be deducted from the sale price to derive market value for that conveyance. Unless stated otherwise, no adjustments are necessary for conditions of sale. Expenditure Post Sale This is a situation when a buyer is compelled to invest additional money into a property immediately after acquisition for some atypical reason. Post-sale invested sums are appropriately added to a comparable’s sale price thereby producing an adjusted sale price. Examples are demolition costs or building-code compliance costs. Unless a contrary statement is made, no adjustments are necessary for post sale expenditures. Market Conditions Adjustments for market conditions are commonly referred to as time adjustments, but this is misleading. Value does not change due to the passage of time; sometimes it remains stable. Often real estate values fluctuate due to changes in supply and demand, interest rates, employment, or inflation. This type adjustment compensates for change in market conditions between a sale’s transaction date and a later point in time. All cited comparables conveyed between January 2019 and this report’s effective value date. Values rose modestly between these two dates, therefore, upward adjustments were applied to Sales 2, 3 and 4. Location Each property was rated to the subject for locational aspects such as value growth potential, access, and general desirability. Those transactions with superior locations were adjusted downward and vice versa. Sales 2 and 3 have superior freeway access/visibility and/or are located on corners of heavily trafficked arterials. As such, downward adjustments were applied. Physical Attributes A myriad of physical characteristics can affect land value. Some examples are lot size, shape, site orientation, availability of utilities, and soil conditions. Those sales with superior physical qualities warrant downward adjustment and vice versa. Property size is an influential variable. Often an inverse relationship exists between price and size. That is, the larger the parcel, the lower the price per square foot selling price. Sale 1 was adjusted downward for a smaller size and Sales 2 and 3 were adjusted upward for larger sizes. The subject land is currently zoned primarily, for office development. Sale 2 also allows for retail development, which may enhance the income producing ability. As such, it received a downward adjustment. Value Indication This adjusted data varies from $4.94 to $5.89 per sq. ft. Most emphasis was placed on Sales 1 and 4, as they received the least amount of adjustment. After consideration of all factors pertaining to and influencing land values, the following is selected as the most fitting value indication for the subject parcel. Office Land 841,449 Sq. Ft. @ $5.60 Per Sq. Ft. = $4,712,114 Contributory Value – Office Land “As Is” Via Sales Comparison, Say $4,710,000 202110-21A Nelsen Appraisal Associates, Inc. Page 78 Multi Family Land Information pertaining to each of the comparable sales is included on the following pages. Land Sale No. 1 Property Identification Address SEC 142nd Street & Douglas Parkway, Urbandale, Polk County, Iowa Tax ID 312/03201-960-004 MSA Des Moines Sale Data Grantor Knapp & Associates LC Grantee Rock Equity Holdings II LLC Sale Date July 31, 2020 Deed Book/Page 18009/835 Verification Polk County Assessor/Seller Sale Price $650,000 Land Data Zoning PUD Land Size Information Gross Land Size 5.856 Acres or 255,105 SF Indicators Sale Price/Gross Acre $110,997 Sale Price/Gross SF $2.55 Remarks 202110-21A Nelsen Appraisal Associates, Inc. Page 79 Land Sale No. 2 Property Identification Address/Legal Description Parcel 19-12 NW SW, Waukee, Dallas County, Iowa Tax ID 16-03-300-016 Sale Data Grantor Stephen & Barbara Lombardi Grantee Ashworth Properties Development, Inc. Sale Date April 2, 2019 Deed Book/Page 2019-4400 Verification Dallas County Assessor/Buyer Sale Price $326,731 Adjustments $0 Adjusted Price $326,731 Land Data Zoning A-1 Land Size Information Gross Land Size 3.32 Acres or 144,619 SF Indicators Sale Price/Gross Acre $98,413 Sale Price/Gross SF $2.26 202110-21A Nelsen Appraisal Associates, Inc. Page 80 Land Sale No. 3 Property Identification Address Parcel 19-13 NW SW, Waukee, Dallas County, Iowa Tax ID 16-03-300-018 Sale Data Grantor Maple Grove Place LLC Grantee Ashworth Properties Development, Inc. Sale Date March 13, 2019 Deed Book/Page 2019-3428 Verification Dallas County Assessor/Buyer Sale Price $620,000 Adjustments $0 Adjusted Price $620,000 Land Data Zoning K-MF-ROW, KETTLESTONE MULTI-FAMILY ROW HOUSE DISTRICT with Planned Development District Overlay Land Size Information Gross Land Size 6.30 Acres or 274,428 SF Indicators Sale Price/Gross Acre $98,413 Sale Price/Gross SF $2.26 202110-21A Nelsen Appraisal Associates, Inc. Page 81 Land Sale No. 4 Property Identification Address Stratford Crossing Plat 4 Outlot Z, Waukee, Dallas, County, Iowa Tax ID 12-29-430-001 Sale Data Grantor Stratford Crossing, LLC Grantee IRHC, LLC Sale Date March 25, 2021 Deed Book/Page 2021-10288 Verification Dallas County Assessor/Seller Sale Price $999,600 Cash Equivalent $999,600 Land Data Zoning R-3 (high density) Land Size Information Size 8.33 Acres or 362,789 SF Indicators Sale Price/Acre $120,000 Sale Price/SF $2.76 Remarks: The seller indicated the price was agreed upon in August 2020. 202110-21A Nelsen Appraisal Associates, Inc. Page 82 Land Sale No. 5 Property Identification Address Stratford Crossing Plat 1 Outlot Z, Waukee, Dallas, County, Iowa Tax ID 12-29-276-004 Sale Data Grantor Stratford Crossing, LLC Grantee Stratford Crossing Flats LLC Sale Date October 18, 2019 Deed Book/Page 2019-21001 Verification Dallas County Assessor/Seller Sale Price $1,064,400 Cash Equivalent $1,064,400 Land Data Zoning R-3 (high density) Land Size Information Size 8.87 Acres or 386,487 SF Indicators Sale Price/Acre $120,000 Sale Price/SF $2.75 202110-21A Nelsen Appraisal Associates, Inc. Page 83 Quantitative Adjustment Grid - Multi Family Land Sale Subject Address Multi Family Land City Waukee Sale Price (SP)N/A Area (Acres)45.07 SP/$Acre N/A Attribute Adj Attribute Adj Attribute Adj Attribute Adj Attribute Adj Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Cash Equivalency Typical Typical Typical Typical Typical Typical Conditions of Sale Typical Typical Typical Typical Typical Typical Market Conditions 11/22/2021 7/31/2020 7%4/2/2019 12%3/13/2019 12%3/25/2021 7%10/18/2019 10% Adjusted Sale Price N/A Adjusted Price / Sq. Ft.N/A Other Considerations 1 1 1 1 1 Location Average Similar 0%Similar 0%Similar 0%Inferior 20%Inferior 20% Size 45.07 5.86 -10%3.32 -10%6.30 -10%8.33 -10%8.87 -10% Shape Sl. Irregular Similar 0%Similar 0%Similar 0%Similar 0%Similar 0% Utilities All Public Similar 0%Similar 0%Similar 0%Similar 0%Similar 0% Topography Level Similar 0%Similar 0%Similar 0%Similar 0%Similar 0% Zoning MDR Similar 0%A-1 0%Similar 0%R-3 -25%R-3 -25% -10%-10%-10%-15%-15% $106,890 $99,200 $99,200 $109,140 $112,200 $120,000 8.87 $120,000 5 Parcel 19-13 NW SW Waukee $1,064,400 2 4 Stratford Crossing Plat 4 Outlot Z Waukee $999,600 8.33 3 Parcel 19-13 NW SW Waukee $620,000 6.30 $98,413 $650,000 5.86 Parcel 19-12 NW SW Waukee $326,731 3.32 $98,413$110,997 1 Douglas/142nd St Urbandale Ind. Value Subject Per Acre Total Adjustment (Rounded) $695,500 $118,767 $1,170,840 $132,000 $365,939 $110,223 $694,400 $110,222 $1,069,572 $128,400 Analysis & Conclusions Selected transactions were chosen for analysis because they are smaller multifamily parcels like the subject, located in the Western Suburbs. These commonalities justify inclusion of these transactions in this analysis. Often there are differences between the property appraised ("the subject") and a comparable sale. When the dissimilarity affects value, an adjustment to the sale price of the comparable is necessary. Property Rights Agreements or laws create partial interests in real estate. A deed restriction or life estate usually reduces rights and value. If the subject is not affected by these limitations and a comparable is, then the comparable's sale price needs an upward property rights adjustment. In another situation, unfavorable leases eliminate a landlord's right to collect market rent, so the real estate sells for a below- market price. If the property appraised has no lease adversities and a comparable does have unfavorable leases, then the comparable requires upward adjustment. Unless stated otherwise, property rights are virtually the same for the subject and all cited conveyances. Hence, no adjustments are necessary for this element of comparison. Financing Sub-market financing is a common technique used to finance the acquisition of real estate during periods of high interest rates. When non-market financing is used, the financing may be favorable to the buyer so the sale price is inflated. The escalated price can be envisioned as a composite of the worth of real estate plus the value of advantageous financing. Since value created by financing is not real property, the contribution of the advantageous financing must be deducted from total sale price to derive market value for just the realty. On the opposite hand, there are instances where the buyer assumes unfavorable financing, so the sale price is diminished. In the latter case, an upward adjustment must be applied to the sale price of the comparable thusly deriving the market value of the real estate. Unless a statement is made to the contrary, non-market financing was not used to acquire any comparable sale cited in this report. Therefore, no compensations are needed for financing. 202110-21A Nelsen Appraisal Associates, Inc. Page 84 Conditions of Sale An adjustment for conditions of sale is necessary when a criterion of market value is violated. It could compensate for unusual buyer or seller motivations. For instance, when a seller gives a buyer an atypical rebate, discount, credit, or something of value to induce a conveyance, the sale price is usually inflated. In this case, it is logical to deduct the worth of the giveback from the sale price. Residual sums represent the property's market value. In another scenario, a buyer may pay a premium to facilitate an assemblage. In this instance, the premium must be deducted from the sale price to derive market value for that conveyance. Unless stated otherwise, no adjustments are necessary for conditions of sale. Expenditure Post Sale This is a situation when a buyer is compelled to invest additional money into a property immediately after acquisition for some atypical reason. Post-sale invested sums are appropriately added to a comparable’s sale price thereby producing an adjusted sale price. Examples are demolition costs or building-code compliance costs. Unless a contrary statement is made, no adjustments are necessary for post sale expenditures. Market Conditions Adjustments for market conditions are commonly referred to as time adjustments, but this is misleading. Value does not change due to the passage of time; sometimes it remains stable. Often real estate values fluctuate due to changes in supply and demand, interest rates, employment, or inflation. This type adjustment compensates for change in market conditions between a sale’s transaction date and a later point in time. All cited comparables conveyed between April 2019 and this report’s effective value date. Values rose modestly between these two dates, therefore upward adjustments were applied to all sales. Location Each property was rated to the subject for geographical aspects such as value growth potential, access, and general desirability. Those transactions with superior locations were adjusted downward and vice versa. Sales 4 and 5 were adjusted upward for inferior proximity to amenities and/or the freeway. Physical Attributes A myriad of physical characteristics can affect land value. Some examples are lot size, shape, site orientation, availability of utilities, and soil conditions. Those sales with superior physical qualities warrant downward adjustment and vice versa. Property size is an influential variable. Often an inverse relationship exists between price and size. That is, the larger the parcel, the lower the price per square foot selling price. All five sales were adjusted downward for smaller sizes. Sales 4 and 5 were adjusted downward for their high-density zoning, which allows more units to be constructed per acre. 202110-21A Nelsen Appraisal Associates, Inc. Page 85 Value Indication The comparables indicate a range of $99,200 to $112,200 per acre. After consideration of all factors pertaining to and influencing land values, the following is selected as the most fitting value indication for the subject parcel. Multi Family Land 45.07 Acres @ $110,000 Per Acre = $4,957,700 Contributory Value – Multi Family Land “As Is” Via Sales Comparison, Say $4,960,000 Plus Contributory Value – Office Land “As Is” Via Sales Comparison, Say $4,710,000 Equals Indicated Market Value Of Subject Property “As Is” Via Sales Comparison, Say $9,670,000 202110-21A Nelsen Appraisal Associates, Inc. Page 86 Exposure Time Terminology abounds in the real estate appraisal profession. Two related but different concepts that are often confused are Exposure Time and Marketing Time. USPAP specifically addresses the confusion. Term Definition Explanation Exposure Time (Statement 6) “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". Backward looking, ends on the effective value date. Based on factual, past events Marketing Time (Advisory Opinion 7) "An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value during the period immediately after the effective date of the appraisal". Forward looking, starts on the effective value date. A forecast based on expectancies of future occurrences. Marketing time and exposure time are both influenced by price. That is, a prudent buyer could be enticed to acquire the property in less time if the price were less. Hence, the time span cited below coincides with the value opinion(s) formed herein. USPAP Standard rule 1-2(c)(iv) requires an opinion of exposure time, not marketing time, when the purpose of the appraisal is to estimate market value. In the recent past, the volume of competitive properties offered for sale, sale prices, and vacancy rates have fluctuated little. Sale concessions have not been prevalent. In light thereof, an estimated exposure time for the subject is up to two years assuming competitive pricing and prudent marketing efforts. 202110-21A Nelsen Appraisal Associates, Inc. Page 87 Certification The appraisers signing this report make the following certifications to the best of their knowledge and belief. ➢ The statements of fact contained in this report are true and correct. ➢ Reported analyses, opinions, and conclusions are limited only by the assumptions and limiting conditions contained within this report, and are the appraisers' personal, impartial, and unbiased professional analyses, opinions, and conclusions. ➢ The appraisers have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. ➢ The appraisers have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. ➢ This engagement is not contingent upon developing or reporting predetermined results. ➢ Compensation paid to the appraisers is not contingent upon the development or reporting of a predetermined value, or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal. ➢ Reported analyses, opinions, and conclusions were developed, and this report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) ➢ A statement regarding observation of the subject property by each appraiser is listed below. None of the appraisers is a professional property inspector. Furthermore, none of the appraisers has formal training in the use of tools or instruments as part of a professional property inspection. Observation by one or more of the appraisers was limited to just those physical features and attributes that are not hidden or obscure in any fashion by any object or weather condition. None of the appraisers used any tools or instruments, beyond those typically used by appraisers, to probe, study, investigate, detect, or discover any physical feature or attribute that was not clearly visible on the date the property was observed. Appraisers Observations Gene F. Nelsen, MAI, CCIM Amy J. Kintzle, MAI Moderate Land Viewing Moderate Land Viewing ➢ No one provided significant real property appraisal assistance to the appraiser(s) signing this certification. ➢ The appraisers have not performed services, as an appraiser or in any other capacity, regarding the property that is the subject of this report during the three-year period immediately preceding acceptance of this assignment. 202110-21A Nelsen Appraisal Associates, Inc. Page 88 Certification ➢ Reported analyses, opinions, and conclusions were developed, and this report was prepared, in conformity with the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute ➢ Use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. ➢ As of the date of this report, Gene Nelsen has completed the continuing education program of the Appraisal Institute. ➢ As of the date of this report, Amy Kintzle has completed the continuing education program of the Appraisal Institute. ➢ As of the date of this report, Amy Kintzle has completed the Standards and Ethics Education Requirement of the Appraisal Institute. Gene F. Nelsen, MAI, CCIM Certified General Real Property Appraiser Iowa License CG01034 License Expiration Date: 6/30/2023 Amy J. Kintzle, MAI Certified General Real Property Appraiser Iowa License CG03204 Expiration Date: 6/30/2022 202110-21A Nelsen Appraisal Associates, Inc. Page 89 Marketing Brochure 202110-21A Nelsen Appraisal Associates, Inc. Page 90 Qualifications Gene F. Nelsen, MAI CCIM President Nelsen Appraisal Associates, Inc. 10580 Justin Drive Urbandale, IA 50322 515-276-0021 Phone 515-276-9303 Fax gene@nelsenappraisal.com Since 1985 Gene has analyzed nearly all real estate types. He is a member of the Appraisal Institute and CCIM Institute and is qualified and experienced in commercial, industrial and residential real estate appraising. His experience includes valuation and consulting for these property types and purposes. • Office, Industrial, Retail, and Multi-Family Properties. • Senior Assisted/Independent Living and Nursing Facilities. • Real estate consulting in valuation, rent analysis, land development and land use evaluation. • Eminent Domain valuation. • Appraisal review. • Expert witness testimony. Education University of Northern Iowa B.A., Science - Environmental Planning, Urban Planning Emphasis, 1983 Appraisal Institute Designated MAI, 1991 MAI Continuing Education includes the successful completion of courses covering a wide range of appraisal skills and practices. Credit hours earned meet or exceed the Appraisal Institute's requirement of 100 credit hours during each five-year period. CCIM Institute Designated CCIM, 2003 Professional Affiliations • MAI Designated Member of Appraisal Institute, 1991 • CCIM Designated Member of the CCIM Institute, 2003 • President, Appraisal Institute, Iowa Chapter, 1998 • Regional Representative Appraisal Institute, Iowa Chapter 1999-2001 • Public Relations Chair, Appraisal Institute, Iowa Chapter, 2001-2014 • Chair, University of Northern Iowa Real Estate Education Program Advisory Council – 2004-2005 Scholarship Committee Chair – 2017 to Present. Currently serving on its Board of Directors • President, CCIM Institute, Iowa Chapter 2010-2011. Board Member 2004-2012 • Iowa Commercial Real Estate Expo, Committee Member since 1996 - Co-Chair 2010 • Iowa Commercial Real Estate Association, Board Member 2008-2012, Current Member • Iowa Real Estate Appraiser Examining Board – Board Member 2011-Present – Chair 2014 - 2016 State Certification State of Iowa, Certified General Real Property Appraiser Sphere of Influence At the request of his clients Gene has appraised real property in Arizona, Illinois, Iowa, Colorado, Kansas, Minnesota, Missouri, Nebraska, Oklahoma, South Dakota, Utah, New Mexico and Wisconsin. 202110-21A Nelsen Appraisal Associates, Inc. Page 91 Amy J. Kintzle, MAI Nelsen Appraisal Associates, Inc. 10580 Justin Drive Urbandale, IA 50322 515-276-0021 Phone 515-276-9303 Fax amyk@nelsenappraisal.com Amy brings a 20-year background in institutional commercial real estate mortgage lending and community banking and, since 2012, she has analyzed a variety of real estate types. She is a member of the Appraisal Institute and her experience includes valuation for these property types: • Industrial and Retail property appraisals with experience in leasehold estates and leased fee estates. • Office appraisals • Multi-family Residential real estate appraisals • Hotel appraisals Education University of Northern Iowa – Bachelor of Arts – Finance with Real Estate Emphasis Continuing Education includes the successful completion of courses covering a wide range of appraisal skills and practices. Credit hours earned meet or exceed the Appraisal Institute's requirement of 100 credit hours during each five-year period. • Review Theory – General • Real Estate Damages • Introduction to Green Buildings: Principles & Concepts • Residential and Commercial Valuation of Solar • The Discounted Cash Flow Model: Concepts, Issues and Applications • Raising the Appraiser IQ • Small Hotel/Motel Valuation • Practical Highest and Best Use • Intro to Land Valuation/Tightening the Appraisal • Subdivision Valuation Work Experience Principal Real Estate Investors, Des Moines, IA Prepared internal and reviewed external appraisals in conjunction with the procurement of over $1 billion in mortgage loans in core property groups: industrial, retail, multi-family residential, and office MetaBank, Des Moines, IA Managed a $30 million portfolio of commercial and commercial real estate loans in the Des Moines area, and procured new loans, which involved tenant/business financial analysis, lease reviews, and demographic studies. Professional Affiliations • MAI Designated Member of Appraisal Institute, 2017 State Certification State of Iowa, Certified General Real Property Appraiser 202110-21A Nelsen Appraisal Associates, Inc. Page 92 State Licenses 202110-21A Nelsen Appraisal Associates, Inc. Page 93 Qualifications Gene F. Nelsen, MAI CCIM President Nelsen Appraisal Associates, Inc. 10580 Justin Drive Urbandale, IA 50322 515-276-0021 Phone 515-276-9303 Fax gene@nelsenappraisal.com Since 1985 Gene has analyzed nearly all real estate types. He is a member of the Appraisal Institute and CCIM Institute and is qualified and experienced in commercial, industrial and residential real estate appraising. His experience includes valuation and consulting for these property types and purposes. • Office, Industrial, Retail, and Multi-Family Properties. • Senior Assisted/Independent Living and Nursing Facilities. • Real estate consulting in valuation, rent analysis, land development and land use evaluation. • Eminent Domain valuation. • Appraisal review. • Expert witness testimony. Education University of Northern Iowa B.A., Science - Environmental Planning, Urban Planning Emphasis Appraisal Institute Designated MAI, 1991 MAI Continuing Education includes the successful completion of courses covering a wide range of appraisal skills and practices. Credit hours earned meet or exceed the Appraisal Institute's requirement of 100 credit hours during each five-year period. CCIM Institute Designated CCIM, 2003 Professional Affiliations • MAI Designated Member of Appraisal Institute, 1991 • CCIM Designated Member of the CCIM Institute, 2003 • President, Appraisal Institute, Iowa Chapter, 1998 • Regional Representative Appraisal Institute, Iowa Chapter 1999-2001 • Public Relations Chair, Appraisal Institute, Iowa Chapter, 2001-present • Chair, University of Northern Iowa Real Estate Education Program Advisory Council – 2004-2005. Currently serving on its Board of Directors. • President, CCIM Institute, Iowa Chapter 2010-2011. Board Member since 2004 • Iowa Commercial Real Estate Expo, Committee Member since 1996 - Co-Chair 2010 • Iowa Commercial Real Estate Association, Board Member • Iowa Real Estate Appraiser Examining Board – Board Member 2011-2014 State Certification State of Iowa, Certified General Real Property Appraiser State of Nebraska, Certified General Real Property Appraiser Sphere of Influence At the request of his clients Gene has appraised real property in Arizona, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, Oklahoma, South Dakota, Utah, New Mexico and Wisconsin. 202110-21A Nelsen Appraisal Associates, Inc. Page 94 Amy J. Kintzle, MAI Nelsen Appraisal Associates, Inc. 10580 Justin Drive Urbandale, IA 50322 515-276-0021 Phone 515-276-9303 Fax amyk@nelsenappraisal.com Amy brings a 20-year background in institutional commercial real estate mortgage lending and community banking and, since 2012, she has analyzed a variety of real estate types. She is a member of the Appraisal Institute and her experience includes valuation for these property types: • Industrial and Retail property appraisals with experience in leasehold estates and leased fee estates. • Office appraisals • Multi-family Residential real estate appraisals • Hotel appraisals Education University of Northern Iowa – Bachelor of Arts – Finance with Real Estate Emphasis Continuing Education includes the successful completion of courses covering a wide range of appraisal skills and practices. Credit hours earned meet or exceed the Appraisal Institute's requirement of 100 credit hours during each five-year period. Work Experience Principal Real Estate Investors, Des Moines, IA Prepared internal and reviewed external appraisals in conjunction with the procurement of over $1 billion in mortgage loans in core property groups: industrial, retail, multi-family residential, and office MetaBank, Des Moines, IA Managed a $30 million portfolio of commercial and commercial real estate loans in the Des Moines area, and procured new loans, which involved tenant/business financial analysis, lease reviews, and demographic studies. Professional Affiliations • MAI Designated Member of Appraisal Institute, 2017 State Certification State of Iowa, Certified General Real Property Appraiser 202110-21A Nelsen Appraisal Associates, Inc. Page 95 State Licenses 202110-21A Nelsen Appraisal Associates, Inc. Page 96 Copyright Protection © Copyright 2022 Nelsen Appraisal Associates, Inc. Urbandale, Iowa 50322 All Rights Reserved. No part of this document may be reproduced, nor may any portion be incorporated into any information retrieval system without written permission from Nelsen Appraisal Associates, Inc., the copyright holder. The descriptions, analyses, and conclusions stated herein are intended for the exclusive use of our client, Knapp Properties, and other explicitly identified intended users, solely for the intended use stated in this document. Nelsen Appraisal Associates, Inc. retains all rights, title, and interests in all trademarks, trade names, trade secrets, data, conclusions, opinions, valuations, and other information included in, arising out of, or in any way related to this appraisal. No person or entity shall be entitled to break down, strip out, mine, or disseminate any component or portion of this report, including, but not limited to any valuations, opinions, data compilations, or conclusions. This report and all its contents is a culmination of intellectual and professional experiences, education, personal investigations, and know- how, which shall at all times remain the property of Nelsen Appraisal Associates, Inc., its sole owner.