2017 - Prepared by: Eric Sc

2017 - Prepared by: Eric Sc

City Commission Agenda Cover Memorandum Originating Department: Meeting Type: Advertised: Planning & Zoning (PZ) Regular Required?: ACM#: Yes N...

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City Commission Agenda Cover Memorandum Originating Department:

Meeting Type:

Advertised:

Planning & Zoning (PZ)

Regular

Required?:

ACM#: Yes

No

21368

Agenda Date: 04/24/2017

Subject: Public Hearing of Resolution No. 130-17 regarding a request by Michael Sanchez of Managed Land Entitlements, LLC, on behalf of 417-431 Bunker Road, LLC, for the abandonment of the alley located to the north of 417 and 431 Bunker Road. Ordinance/Resolution: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WEST PALM BEACH, FLORIDA, VACATING AND ABANDONING AN ALLEY LOCATED NORTH OF 417 AND 431 BUNKER ROAD; AUTHORIZING EXECUTION OF A DISCLAIMER OF INTEREST IN THE AFORESAID ALLEY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. Staff Recommended Motion: APPROVE Resolution No. 130-17, abandoning the alley located to the north of 417 and 431 Bunker Road. This motion is based upon the factual testimony presented, the application submitted, and the findings that the criteria for abandonment in Section 78-217 of the City Code have been met. Background: The subject alley contains approximately 2,493 square feet (roughly 14 feet by 175 feet). It is located to the east of Webster Avenue, directly behind 417 and 431 Bunker Road. The eastern portion of the alley was abandoned in 1991, resulting in the current alley being a dead end alley. A location map of the subject alley is included as Attachment 1. The alley is currently unimproved, consisting of sod. The owner of 417 and 431 Bunker Road would like to acquire the alley so that he can enclose a covered outdoor storage area on his property. The 417 and 431 Bunker Road site currently exceeds the maximum allowable floor area ratio, so the additional land area of the alley is needed to increase the building area of the existing buildings. Subsequent to recordation of the disclaimer for the alley, 417-431 Bunker Road, LLC, shall recorded a Unity of Title to combine all of the properties. The abandoned alley would become the landscape buffer and the existing site would be improved to comply with the City's landscape regulations as part of the construction to enclose the storage area.

AGENDA COVER MEMORANDUM C.M. #________

Page 2 Date:__________

The alley contains a Florida Power and Light power pole, so the alley abandonment includes the reservation of a 10 foot wide utility easement on the north side of the alley. The utility easement is required to be recorded. An appraisal for the abandonment of the subject alley was conducted by Anderson & Carr Inc. on January 20, 2017 (ATTACHMENT II). Anderson & Carr concluded the alley, with the required utility easement, has a market value of $39,000. The Mayor recommends accepting $10,000 to disclaim the alley. CRITERIA: Pursuant to Code Section 78-217, the City Commission shall consider the following criteria in determining whether the general public welfare would be best served by the proposed action: 1) Whether the public benefits from the use of the subject right-of-way as part of the city street system. 2) Whether the proposed action is consistent with the city's comprehensive plan. 3) Whether the proposed action would violate individual private property rights. 4) The availability of alternative action to alleviate the identified problems. 5) The effect of the proposed action upon traffic circulation. 6) The effect of the proposed action upon crime. 7) The effect of the proposed action upon the safety of pedestrians and vehicular traffic. 8) The effect of the proposed action upon the provision of municipal services, including, but not limited to, emergency services and waste removal services. 9) The necessity to relocate utilities, both public and private. 10) The effect the proposed action will have upon property values in the immediate and surrounding areas. The abandonment of the subject property will not result in any negative impacts to the surrounding area, since the alley right-of-way is not functional for any sidewalk or vehicular access. Additionally, due to the small size and narrow shape of the area proposed for abandonment, the subject property has little or no development potential to anyone other than the adjoining property owner. Staff has found the requested abandonment complies with all abandonment criteria. NOTICE: Signs for the right-of-way abandonment were posted on March 24, 2017 and individual notices were mailed to all property owners within 400 feet of the alley on April 7, 2017. COMMISSION DISTRICT; The subject property is located within Commission District No. 5 – Commissioner Shanon Materio. Fiscal Note Current Year:

Annualized:

Budgeted:

Unbudgeted:

Funding Source:

AGENDA COVER MEMORANDUM C.M. #________

Page 3 Date:__________

Comment: The appraied value of the alley is $39,000. The Mayor recommends accepting $10,000 to disclaim the alley. Electronic Attachments:

Click here for assistance with naming convention.

Is this ACM related to a Grant?

Yes

No

Is this ACM related to Housing?

Yes

No

Originating Department - Approved by: Richard Greene on 03/28/2017

04/09/2017 City Attorney's Department

04/11/2017 Asst. City Administrator

Return to Agenda

RESOLUTION NO. 130-17 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WEST PALM BEACH, FLORIDA, VACATING AND ABANDONING AN ALLEY LOCATED NORTH OF 417 AND 431 BUNKER ROAD; AUTHORIZING EXECUTION OF A DISCLAIMER OF INTEREST IN THE AFORESAID ALLEY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. * * * * * * * WHEREAS, the City Commission of the City of West Palm Beach, Florida, is the governing body of the City and has plenary authority of the roads, alleys and rights-of-way within the City street system; and WHEREAS, the City has jurisdiction over a 175-foot alley located north of 417 and 431 Bunker Road, containing 2,493 square feet, more or less, as shown on the Industrial Center Plat, recorded in Plat Book 10, Page 44, of the Public Records of Palm Beach County, Florida; and WHEREAS, Michael Sanchez of Managed Land Entitlements, LLC, on behalf of 417431 Bunker Road, LLC, has applied for abandonment of this alley, pursuant to Article VII of Chapter 78 of the Code of Ordinances of the City of West Palm Beach, Florida; and WHEREAS, the existing alley is unimproved, dead ends where the City previously abandoned a portion of the alley, and is not functional for vehicular circulation; and WHEREAS, the Petitioner is the owner of 417 and 431 Bunker Road, and desires to abandon the subject alley in order to provide the necessary land to expand his existing building located at 417 and 431 Bunker Road; and WHEREAS, public utilities exist within the subject alley requiring reservation of a 10 foot wide utility easement along the entire alley; and WHEREAS, the appraisal conducted by Anderson & Carr, Inc. on January 20, 2017, set the market value for the alley to be abandoned, with the reservation of the utility easement, at $39,000; and WHEREAS, the Mayor recommends accepting $10,000 to disclaim the alley; and WHEREAS, the Planning Division staff has evaluated the proposed alley abandonment pursuant to the criteria contained in Section 78-217 of the City Code and recommends approval of the abandonment.

1

RESOLUTION NO. 130-17 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WEST PALM BEACH, FLORIDA, that: SECTION 1:

The City Commission has evaluated the subject petition for alley abandonment pursuant to the criteria established in Section 78-217 of the City Code, attached as EXHIBIT A, and hereby makes the following determinations and findings:

1. Said alley is no longer needed by the public for any public purpose. The alley does not provide for vehicular or pedestrian passage. Therefore, there is no negative impact to the general public by the abandonment of the alley. 2. The abandonment is consistent with the City’s Comprehensive Plan. 3. The abandonment will not violate individual property rights. 4. Maintaining the alley will not provide a valued benefit to the public. 5. The abandonment will not affect traffic circulation. 6. The abandonment will have no effect on crime, either positively or negatively. 7. Therefore, the abandonment should not have an effect on the safety of pedestrians or vehicular traffic. 8. The abandonment will not affect the provision of municipal services. 9. The abandonment will not require the relocation of utilities. A utility easement will be reserved. 10. The abandonment will provide additional land to the adjoining property owner to expand his building square footage, likely resulting in higher property value. SECTION 2:

The City Commission, subject to: 1) the reservation of the utility easement, and 2) receipt of an executed Unity of Title, hereby vacates and abandons its interest in the publically dedicated alley located north of 417 and 431 Bunker Road, as shown in the sketch attached hereto as EXHIBIT B and legally described as follows:

A PORTION OF THAT CERTAIN ALLEY LYING NORTH OF, AND ADJACENT TO, LOTS 7, 9, 11 AND 13, INDUSTRIAL CENTER, ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK 10, PAGE 44, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 13, THENCE N88°12’48’’E ALONG THE NORTH LINE OF SAID LOTS 7, 9, 11 AND 13, FOR A DISTANCE OF 175.00 FEET; THENCE N00°00’00’’E FOR A DISTANCE OF 14.11 FEET; THENCE S88°18’32’’W ALONG THE SOUTH LINE OF THE 1 FOOT 2

RESOLUTION NO. 130-17 RESERVED AREA, AS SHOWN ON SAID PLAT OF INDUSTRIAL CENTER, FOR A DISTANCE OF 174.99 FEET; THENCE S00°00’00’’W FOR A DISTANCE OF 14.40 FEET TO THE POINT OF BEGINNING. CONTAINING 2493 SQUARE FEET, MORE OR LESS. BEARINGS ARE BASED ON THE ASSUMPTION THAT THE CENTERLINE OF WEBSTER AVENUE BEARS S00°00’00’’W. SECTION 3:

The Mayor is hereby authorized to execute a Utility Easement, in form and substance similar to that attached hereto as EXHIBIT C, to reserve a 10 foot wide utility easement over the abandoned alley.

SECTION 4:

Upon receipt from Petitioner of: 1) $10,000 compensation; and 2) Executed Utility Easement; and 3) a complete Unity of Title application along with a complete and executed Unity of Title in recordable form and substance similar to that attached hereto as EXHIBIT E, covering the abandoned alley and the properties located at 417 and 431 Bunker Road, the Mayor is hereby authorized to execute a Disclaimer, in form and substance similar to that attached hereto as EXHIBIT D, to disclaim the City’s interest in the alley located north of 417 and 431 Bunker Road.

SECTION 5:

After execution by the Mayor, the City Clerk shall record the Disclaimer in the Public Records of Palm Beach County, Florida.

SECTION 6:

After the recordation of the Disclaimer, the City Clerk shall record the Utility Easement in the Public Records of Palm Beach County, Florida.

SECTION 7:

After the recordation of the Disclaimer and Utility Easement, the City Clerk shall record the Unity of Title in the Public Records of Palm Beach County, Florida.

SECTION 8:

This Resolution shall take effect in accordance with law. The Disclaimer and Abandonment approved hereby shall not take effect until said Disclaimer has been recorded in the Public Records. If the conditions set forth in in Section 4 of this Resolution are not satisfied within one year of the date of this Resolution, the authorization of the abandonment, and execution of the requisite documents, shall expire.

3

RESOLUTION NO. 130-17 EXHIBIT A Section 78-217 Abandonment Criteria (1) Whether the public benefits from the use of the subject rights-of-way as part of the City street system. Findings

COMPLIES

The alley is currently unimproved and does not serve the City’s street system. (2) Whether the proposed action is consistent with the City's Comprehensive Plan. Findings

COMPLIES

The abandonment is consistent with the Comprehensive Plan. (3) Whether the proposed action would violate individual private property rights. Findings

COMPLIES

The abandonment will not violate individual private property rights. (4) The availability of alternative action to alleviate the identified problems. Findings

DOES NOT APPLY

There are no identified problems. (5) The effect of the proposed action upon traffic circulation. Findings

COMPLIES

As previously stated, the alley is currently unimproved. Additionally, the eastern end of the alley was previously abandoned, so the existing alley dead ends after 175 feet. The abandonment of the alley will have no impact on traffic circulation in the area. (6) The effect of the proposed action upon crime. Findings

COMPLIES

The proposed abandonment will have no effect on crime, either positively or negatively.

4

RESOLUTION NO. 130-17 (7) The effect of the proposed action upon the safety of pedestrians and vehicular traffic. Findings

COMPLIES

The alley is unimproved and unused, so there will be no effect upon pedestrian or vehicular traffic. (8) The effect of the proposed action upon the provision of municipal services, including, but not limited to, emergency services and waste removal services. Findings

COMPLIES

This is an unimproved, dead end alley, so the abandonment will not impact the provision of municipal services. (9) The necessity to relocate utilities, both public and private. Findings

COMPLIES

The abandonment will not require the relocation of utilities. A utility easement will be reserved. (10) The effect the proposed action will have upon property values in the immediate and surrounding areas. Findings

COMPLIES

The abandonment will provide additional land to the adjoining property owner to expand his building square footage, likely resulting in higher property value.

5

RESOLUTION NO. 130-17 EXHIBIT B Sketch of Right-of-Way to be abandoned

6

RESOLUTION NO. 130-17 EXHIBIT C Utility Easement Prepared by and Record & Return to: Engineering Services Vincent J. Noel, PSM CITY OF WEST PALM BEACH PO Box 3366 West Palm Beach, FL 33402-3366 Will Call Box 186 PCN# 74-43-44-04-05-000-0070

UTILITY EASEMENT THIS UTILITY EASEMENT is made this __ day of _________________, 20_____, between 417-431 Bunker Road., LLC , (“Grantor”) and the City of West Palm Beach, a municipal corporation organized and existing under the laws of the State of Florida, whose address P.O. Box 3366, West Palm Beach, Florida 33402 (“Grantee”). W I T N E S S E T H: The Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration paid by the Grantee, the receipt and sufficiency of which is hereby acknowledged, does hereby grant to the Grantee, its agents, successors and assigns, subject to the terms and conditions hereinafter provided, a perpetual easement for utility purposes, including, but not limited to water, sewer, cable, electric transmission and gas, in, on, over, under and across that certain parcel of real property owned by the Grantor which is described in Exhibit “A” attached hereto (“Easement Property”). The Grantor represents and warrants to the Grantee that Grantor is in exclusive possession of the Easement Property and owns fee simple title to the Easement Property free and clear of all mortgages, liens, judgments and other encumbrances, except this easement, and that it has good and lawful right to grant this easement. The Grantor hereby grants this easement subject only to comprehensive land use plans, zoning, restrictions, prohibitions and other requirements imposed by governmental authority. This Easement shall permit the Grantee, its employees, agents, contractors, subcontractors, consultants and licensees and each of the aforementioned party’s successors and assigns, to enter upon and use the Easement Property at any time and from time to time to install, 7

RESOLUTION NO. 130-17 construct, reconstruct, operate, inspect, maintain, service, remove, relocate, repair, replace and improve such utilities. The Grantor shall not construct any structure or other improvement upon the Easement Property or engage in any use of the surface of the Easement Property which is inconsistent or interferes with the rights of the Grantee under this Easement. The Grantee shall restore the surface of the Easement Property after any excavation of the Easement Property and shall keep the Easement Property free from trash, debris and safety hazards following any repair or maintenance of the utilities; provided; however, that the foregoing shall not impose any obligation on Grantee to maintain the Easement Property. The Grantee shall have the right, but not the obligation, to clear the Easement Property and keep it cleared of all trees, undergrowth or other obstructions and the right to trim, cut or remove all trees located within or outside the Easement Property which might interfere with the Grantee’s use of the Easement Property as permitted hereby. The Grantee shall use the Easement Property in accordance with all applicable laws, rules and regulations of governmental authorities having jurisdiction over the Easement Property or use thereof as herein provided. This Easement shall continue unless or until Grantee terminates its rights herein provided by written notice to the Grantor, its successors or assigns. Neither the failure to use the Easement Property nor the abandonment of the Easement Property shall constitute or be construed as a termination of this Easement. This Easement grants to the Grantee, its successors and assigns the exclusive right to use the Easement Property below its surface. This Easement shall run with the land and shall be binding upon the Grantor, all parties entitled to use or possession of the Easement Property by or through the Grantor, including lessees, and the successors and assigns of each of the aforementioned parties unless or until this Easement is terminated as hereinabove provided. This Easement shall be binding upon the parties hereto and their respective successors and assigns.

[Signatures on following page.]

8

RESOLUTION NO. 130-17 IN WITNESS WHEREOF, the parties have executed this easement on the day and year first above written. GRANTOR: 417-431 Bunker Road., LLC __________________________________ WITNESSES: By: ________________________________ ________________________________

Print Name: ________________________

Witness Signature

Title: _____________________________

________________________________ Printed Name

________________________________ Witness Signature ________________________________ Printed Name

STATE OF _________________________} COUNTY OF _______________________} SS: The foregoing Utility Easement was acknowledged before me this _____ day of ________________________, 20_____ by ___________________________, the __________________ of _____________________________, who personally appeared before me and who did not take an oath.  Personally Known OR  Produced Identification Type of Identification Produced _______________________________________ __________________________________________ Signature of Notary Public (Print, type or stamp name) ____________________________________ [seal] Commission No.

____________________________________ 9

RESOLUTION NO. 130-17

Attest:

GRANTEE: CITY OF WEST PALM BEACH

_______________________________ Hazeline Carson, City Clerk

By: ________________________________ Geraldine Muoio, Mayor

Director of Public Utilities Approval By: _________________________ City Attorney’s Office Approved as to form and legality By: ______________________

STATE OF FLORIDA COUNTY OF PALM BEACH

} } SS:

This ____ day of ____________________________, 20____, the foregoing Utility Easement was acknowledged before me, by Geraldine Muoio, Mayor of the City of West Palm Beach, Florida, as an act of the City. She is personally known to me and did not take an oath. ____________________________________ Signature of Notary Public

(Print, type or stamp name) ____________________________________ [seal] Commission No.

____________________________________

10

RESOLUTION NO. 130-17 Exhibit A Easement Area

11

RESOLUTION NO. 130-17 Exhibit A (cont.) Easement Area

12

RESOLUTION NO. 130-17 EXHIBIT D Disclaimer for the Abandonment RECORD & RETURN TO: And this Instrument Prepared by: City Attorney’s Office CITY OF WEST PALM BEACH 401 Clematis St. West Palm Beach, FL 33401 Will Call Box 186

DISCLAIMER KNOW ALL MEN BY THESE PRESENTS: That the CITY OF WEST PALM BEACH, FLORIDA, a municipal corporation of the State of Florida, whose address is 401 Clematis Street, West Palm Beach, Florida 33401, does hereby abandon and disclaim any interest in and to that portion of the alley right-of-way situated and being in the City of West Palm Beach, Palm Beach County, Florida, shown on the sketch attached as Exhibit A, and described as follows: A PORTION OF THAT CERTAIN ALLEY LYING NORTH OF, AND ADJACENT TO, LOTS 7, 9, 11 AND 13, INDUSTRIAL CENTER, ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK 10, PAGE 44, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 13, THENCE N88°12’48’’E ALONG THE NORTH LINE OF SAID LOTS 7, 9, 11 AND 13, FOR A DISTANCE OF 175.00 FEET; THENCE N00°00’00’’E FOR A DISTANCE OF 14.11 FEET; THENCE S88°18’32’’W ALONG THE SOUTH LINE OF THE 1 FOOT RESERVED AREA, AS SHOWN ON SAID PLAT OF INDUSTRIAL CENTER, FOR A DISTANCE OF 174.99 FEET; THENCE S00°00’00’’W FOR A DISTANCE OF 14.40 FEET TO THE POINT OF BEGINNING. CONTAINING 2493 SQUARE FEET, MORE OR LESS. BEARINGS ARE BASED ON THE ASSUMPTION THAT THE CENTERLINE OF WEBSTER AVENUE BEARS S00°00’00’’W. PROVIDED THAT: 1. A utility easement is reserved for the City of West Palm Beach and utility providers for utility purposes, including, but not limited to water, sewer, cable, electric transmission 13

RESOLUTION NO. 130-17 and gas, in, on over, under and across the north 10 feet of the alley right-of-way herein described.

IN WITNESS WHEREOF, the execution of this Disclaimer by the City has been duly authorized by Resolution No. 130-17 of the City Commission. (Corporate Seal)

CITY OF WEST PALM BEACH, FLORIDA, A Florida municipal corporation

By: ________________________________ Geraldine Muoio, Mayor ATTEST: _________________________________ City Clerk CITY ATTORNEY’S OFFICE Approved as to form and legality By: ______________________

STATE OF FLORIDA COUNTY OF PALM BEACH

} } SS:

The foregoing Disclaimer was acknowledged before me this _____ day of _____________________, 2017, by GERALDINE MUOIO, Mayor of the City of West Palm Beach, as an act of the City. The Mayor is personally known to me.

Notary: [NOTARIAL SEAL]

Notary Public, State of Florida Print Name: Commission No: ___________________________ Commission expires:

14

RESOLUTION NO. 130-17 Exhibit A Sketch of Abandoned Alley

15

RESOLUTION NO. 130-17 EXHIBIT E Unity of Title PREPARED BY & RETURN TO: City of West Palm Beach Planning Division 401 Clematis Street West Palm Beach, FL 33407 Will Call Box 186 PCN # ______________________

UNITY OF TITLE

417-431 Bunker Road., LLC, hereby agrees to restrict the transfer or subdivision of the parcels of land described as follows which comprise 417-431 Bunker Road. See Exhibit A attached hereto and by this reference made a part hereof (the “Property”). Which Property shall be restricted in the following manner: 1. Said Property shall be considered as one lot and parcel of land, and that no portion of said lot and parcel of land shall be sold, transferred, devised or assigned separately, except in its entirety as one lot or parcel of land, except as permitted herein. 2. This condition, restriction and limitation shall be deemed a covenant running with the land, and shall remain in full force and effect, and be binding upon the undersigned, and its successors and assigns until such time as this instrument is released in writing by the Mayor of West Palm Beach, following a recommendation by the Planning Director. 3. The undersigned further agrees that this instrument shall be recorded in the Public Records of Palm Beach County. 4. ,SIGNED, SEALED, EXECUTED and acknowledged on this _____ day of __________, 20_____. Witnesses:

Property Owner:

417-431 Bunker Road, LLC. ______________________________ Print Name: ____________________

By: _____________________________________ Print Name: ______________________________

______________________________ Title: ________________________________ Print Name: ____________________

16

RESOLUTION NO. 130-17 STATE OF FLORIDA COUNTY OF ___________________________

} } SS: }

The foregoing Unity of Title was acknowledged before me this ____ day of __________________, 20_____, by _____________________________, as __________________________ of 417-431

Bunker Road, LLC, , a _______________ limited liability corporation, on behalf of the corporation, who is personally known to me OR who has produced _______________________________ as identification. [Notary Seal] ______________________________ Notary Public Print Name:

______________________________

Commission No. ____________________________

17

RESOLUTION NO. 130-17 Exhibit “A” Legal Description

UNITY OF TITLE LEGAL DESCRIPTION

18

ATTACHMENT I LOCATION MAP

Alley north of 417 and 431 Bunker Road in orange box.

APPRAISAL OF A 2,493 SQUARE FOOT ALLEY LOCATED AT 417/431 BUNKER ROAD WEST PALM BEACH, FLORIDA 33405

FOR VINCENT J. NOEL, P.S.M., SURVEY/REAL ESTATE SUPERVISOR CITY OF WEST PALM BEACH BY ROBERT B. BANTING, MAI, SRA CERT GEN RZ4 AND WAYNE B. LEWIS, MAI CERT GEN RZ2452 WITH ANDERSON & CARR, INC. 521 SOUTH OLIVE AVENUE WEST PALM BEACH, FLORIDA 33401 DATE OF INSPECTION: JANUARY 3, 2017 DATE OF REPORT: JANUARY 20, 2017 DATE OF VALUE: JANUARY 3, 2017 FILE NO.: 2160557.000 CLIENT REFERENCE: 417/431 BUNKER ROAD

January 20, 2017 Mr. Vincent J. Noel P.S.M., Survey/Real Estate Supervisor City of West Palm Beach 401 Clematis Street, 4th Floor West Palm Beach, FL 33401 Dear Mr. Noel: Pursuant to your request, we have personally appraised the real property being a 14 foot +/- by 175 foot +/- alley containing 2,493 square feet. The right of way lies to the north of a general commercial zoned parcel known by the street address 417 and 431 Bunker Road. The parcel has 14.4’ of frontage on the east side of Webster Avenue and extends to the east for 175 feet. The parcel to the south is zoned general commercial while the parcels to the north are zoned single family high density. For the purposes of this analysis we have assumed that the subject would have a zoning designation of general commercial if it were transferred to private ownership. The subject property is located on the east side of Webster Avenue, 105 feet north of Bunker Road. The subject is located within the block bound by South Dixie Highway to the east, Bunker Road to the south, Webster Avenue to the west and Oxford Street to the north. The larger neighborhood includes the South Dixie Highway and Georgia Avenue corridors bound by Southern Boulevard to the north and Forest Hill Boulevard to the south. The property address is 417/431 Bunker Road, West Palm Beach, FL, 33405. The purpose of this narrative appraisal is to estimate the market value of the fee simple estate of the subject property as of January 3, 2017. We have appraised this property assuming the city will retain a utility easement over the north 10 feet. The intended use of the report is to assist the client and intended user in disposition considerations. This report has been prepared for no other purpose and for use by no other person or entity than for use by the client for the purpose stated herein. Any other use of this appraisal is considered a misuse and thus the appraisers will not be held responsible for any outcome associated with use by another entity or for another purpose. We have utilized "across the fence" appraisal methodology which is a land valuation method often used in the appraisal of corridors. The across the fence method is used to develop a value opinion based on comparison to abutting land. The price or value of land adjacent to the corridor (i.e., across the fence) is considered for the valuation. (The Dictionary of Real Estate Appraisal, 5th ed., Chicago: Appraisal Institute, 2010).

Vincent J. Noel Page 2 January 20, 2017 We have utilized the sales comparison approach to value, the most common method used for valuing properties such as the subject property. As a result of our analysis, we have developed an opinion that the market value of the fee simple estate (as defined in the report), subject to the definitions, certifications, and limiting conditions set forth in the attached report, as of January 3, 2017 was: MARKET VALUE:

$39,000

The following presents our analysis and conclusions in a narrative appraisal report. This letter must remain attached to the report, which contains 50 pages plus related exhibits, in order for the value opinion set forth to be considered valid. Your attention is directed to the Assumptions and Limiting Conditions contained within this report. Respectfully submitted, ANDERSON & CARR, INC.

Robert B. Banting, MAI, SRA Cert Gen RZ4

Wayne B. Lewis, MAI Cert Gen RZ2452 RBB/WBL:cmp

2016-1461B / Royal Master Properties Inc.

A&C Job No.: 2160420.000

TABLE OF CONTENTS

Page No.

Summary Of Important Facts And Conclusions ....................................................................................................1 Certification ..............................................................................................................................................................3 Assumptions And Limiting Conditions ..................................................................................................................4 Area/Location Maps .................................................................................................................................................7 Parcel Map ................................................................................................................................................................9 Aerial Photograph ..................................................................................................................................................10 Survey Detail ...........................................................................................................................................................11 Subject Property Photos (Taken January 3, 2017)...............................................................................................12 Purpose And Date Of Value .................................................................................................................................15 Property Appraised ................................................................................................................................................15 Legal Description ...................................................................................................................................................15 Disclosure Of Competency ....................................................................................................................................16 Intended Use And User .........................................................................................................................................16 Client........................................................................................................................................................................16 Definitions ...............................................................................................................................................................16 Property Rights Appraised ....................................................................................................................................17 Typical Buyer Profile ..............................................................................................................................................17 Scope Of Assignment .............................................................................................................................................17 Palm Beach County Summary ...............................................................................................................................18 Conclusion ...........................................................................................................................................................23 Neighborhood Summary ........................................................................................................................................24 Property Data ..........................................................................................................................................................25 Taxpayer Of Record ...........................................................................................................................................25 Palm Beach County Property Control Number(S) ..........................................................................................25 Assessed Value And Taxes For 2016 ................................................................................................................25 Census Tract ........................................................................................................................................................25 Flood Zone Designation ....................................................................................................................................26 Zoning And Future Land Use ...........................................................................................................................26 Concurrency ........................................................................................................................................................28 Utilities ................................................................................................................................................................28 Subject Property Sales History ..........................................................................................................................28 Site Analysis ........................................................................................................................................................29 Highest And Best Use ............................................................................................................................................32 Exposure And Marketing Time.............................................................................................................................33 Sales Comparison Approach .................................................................................................................................34 Sales Summary And Discussion ........................................................................................................................47 Conclusion ...........................................................................................................................................................50 Qualifications for Robert B. Banting, MAI, SRA, Cert Gen RZ4 Qualifications for Wayne B. Lewis, MAI, Cert Gen RZ2452 Addendum:

2016-1461B / Royal Master Properties Inc.

A&C Job No.: 2160420.000

SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Client:

Vincent J. Noel, P.S.M., Survey/Real Estate Supervisor City of West Palm Beach

Intended User:

City of West Palm Beach

Taxpayer of Record:

NA Public Ownership

Property Rights Appraised:

Fee Simple Estate

Special Assumptions Reference:

None

Unusual Market Externality:

None

Location:

Site is located on the east side of Webster Avenue, 105 feet north of Bunker Road in the block bound by South Dixie Highway to the east, Bunker Road to the south, Webster Avenue to the west and Oxford Street to the north.

Site/Land Area:

The subject site contains 2,493 square feet or 0.06 acres.

Improvements:

None

Zoning:

GC/General Commercial by West Palm Beach

Land Use Plan:

C/Commercial by West Palm Beach

Flood Zone & Map Reference:

Zone C, Community Panel Number 120229 0020 B, effective date of March 1, 1979

Census Tract:

0036.00

Current Use:

Vacant

Highest and Best Use:

Commercial

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Exposure Time:

6 to 12 months

Marketing Time:

6 to 12 months

Estimated Property Values: Value via Cost Approach: Value via Income Capitalization Approach: Value via Sales Comparison Approach:

N/A N/A $39,000

MARKET VALUE:

$39,000

Date of Inspection: Date of Report: Date of Value:

January 3, 2017 January 20, 2017 January 3, 2017

Appraisers:

Robert B. Banting, MAI, SRA Cert Gen RZ4 Wayne B. Lewis, MAI Cert Gen RZ2452

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CERTIFICATION I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, conclusions, and recommendations. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three year period immediately preceding acceptance of this assignment. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest with respect to the parties involved. I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Wayne B. Lewis, MAI and Robert B. Banting, MAI, SRA have made a personal inspection of the property that is the subject of this report. As of the date of this report, Robert B. Banting, MAI, SRA and Wayne B. Lewis, MAI have completed the continuing education program of the Appraisal Institute. No one provided significant real property appraisal or appraisal consulting assistance to the person signing this certification.

Robert B. Banting, MAI, SRA Cert Gen RZ4

Wayne B. Lewis, MAI Cert Gen RZ2452

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ASSUMPTIONS AND LIMITING CONDITIONS 1. Unless otherwise stated, the value appearing in this appraisal represents our opinion of the market value or the value defined as of the date specified. Values of real estate are affected by national and local economic conditions and consequently will vary with future changes in such conditions. 2. Possession of this report or any copy thereof does not carry with it the right of publication nor may it be used for other than its intended use. The physical report(s) remains the property of the appraiser for the use of the client. The fee being for the analytical services only. The report may not be copied or used for any purpose by any person or corporation other than the client or the party to whom it is addressed, without the written consent of an officer of the appraisal firm of Anderson & Carr, Inc. and then only in its entirety. 3. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations efforts, news, sales or other media without written consent and approval of an officer of Anderson & Carr, Inc. nor may any reference be made in such public communication to the Appraisal Institute or the MAI, SRA or SRPA designations. 4. The appraiser may not divulge the material contents of the report, analytical findings or conclusions, or give a copy of the report to anyone other than the client or his designee, as specified in writing except as may be required by the Appraisal Institute, as they may request in confidence for ethics enforcement or by a court of law or body with the power of subpoena. 5. Liability of Anderson & Carr, Inc. and its employees is limited to the fee collected for the appraisal. There is no accountability or liability to any third party. 6. It is assumed that there are no hidden or unapparent conditions of the property, sub-soil, or structures which make it more or less valuable. The appraiser assumes no responsibility for such conditions or the engineering which might be required to discover these facts. 7. This appraisal is to be used only in its entirety. All conclusions and opinions concerning the analysis which are set forth in the report were prepared by the appraisers whose signatures appear on the appraisal report. No change of any item in the report shall be made by anyone other than the appraiser and the appraiser and firm shall have no responsibility if any such unauthorized change is made. 8. No responsibility is assumed for the legal description provided or other matters legal in character or nature, or matters of survey, nor of any architectural, structural, mechanical, or engineering in nature. No opinion is rendered as to the title which is presumed to be good and merchantable. The property is valued as if free and clear of any and all liens and encumbrances and under responsible ownership and competent property management unless otherwise stated in particular parts of the report. 9. No responsibility is assumed for accuracy of information furnished by or from others, the clients, their designee, or public records. We are not liable for such information or the work of subcontractors. The comparable data relied upon in this report has been confirmed with one or more parties familiar with the transaction or from affidavit when possible. All are considered appropriate for inclusion to the best of our knowledge and belief.

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10. The contract for appraisal, consultation or analytical service is fulfilled and the total fee payable upon completion of the report. The appraiser or those assisting the preparation of the report will not be asked or required to give testimony in court or hearing because of having made the appraisal in full or in part; nor engaged in post-appraisal consultation with client or third parties, except under separate and special arrangement and at an additional fee. 11. The sketches and maps in this report are included to assist the reader and are not necessarily to scale. Various photos, if any, are included for the same purpose and are not intended to represent the property in other than actual status as of the date of the photos. 12. Unless otherwise stated in this report, the appraisers have no reason to believe that there may be hazardous materials stored and used at the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 13. If applicable, the distribution of the total valuation of this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal, no matter how similar and are invalid if so used. 14. No environmental or impact studies, special market studies or analysis, highest and best use analysis study or feasibility study has been requested or made unless otherwise specified in an agreement for services or in the report. Anderson & Carr, Inc. reserves the unlimited right to alter, amend, revise or rescind any of the statements, findings, opinions, values, estimates or conclusions upon any previous or subsequent study or analysis becoming known to the appraiser. 15. It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in this appraisal report. 16. The value estimated in this appraisal report is gross without consideration given to any encumbrance, lien, restriction, or question of title, unless specifically defined. The estimate of value in the appraisal report is not based in whole or in part upon the race, color, or national origin of the present owners or occupants of the properties in the vicinity of the property appraised. 17. It is assumed that the property conforms to all applicable zoning, use regulations, and restrictions unless a nonconformity has been identified, described, and considered in this appraisal report. 18. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in this report is based.

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19. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 20. This appraisal report has been prepared for the exclusive benefit of the client and intended users, City of West Palm Beach. This report has been prepared for no other purpose and for use by no other person or entity than for use by the client for the purpose stated herein. Any other use of this appraisal is considered a misuse and thus the appraisers will not be held responsible for any outcome associated with use by another entity or for another purpose. 21. The subject site is in public ownership and as such is not zoned. For the purposes of this analysis we have assumed that if it were transferred into private ownership it would be zoned in a manner similar to the abutting parcel to the south which is zoned GC/General Commercial with a future land use designation of C/Commercial use. 22. ACCEPTANCE OF, AND/OR USE OF THIS APPRAISAL REPORT CONSTITUTES ACCEPTANCE OF THE PRECEDING CONDITIONS.

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AREA/LOCATION MAPS

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PARCEL MAP

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AERIAL PHOTOGRAPH

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SURVEY DETAIL

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SUBJECT PROPERTY PHOTOS (TAKEN JANUARY 3, 2017)

Viewing east across the subject

Viewing northeast toward the adjacent parcel on Bunker Road

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Viewing east along Bunker Road

Viewing west along Bunker Road at Webster Avenue

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Webster Road frontage viewing north

Viewing southwest from Oxford Street toward the residential properties abutting the subject to the north

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PURPOSE AND DATE OF VALUE The purpose of this appraisal is to estimate the market value, fee simple estate, of the subject property as of January 3, 2017. PROPERTY APPRAISED The subject property consists of 0.06 acres of vacant land located on the east side of Webster Avenue, 105 feet north of Bunker Road in the block bound by South Dixie Highway to the east, Bunker Road to the south, Webster Avenue to the west and Oxford Street to the north. The larger neighborhood includes the South Dixie Highway corridor bound by Southern Boulevard to the north and Forest Hill Boulevard to the south. The subject is zoned GC/General Commercial by West Palm Beach. LEGAL DESCRIPTION The legal description for the subject property was taken from a survey provided by the client that was prepared by Robert A Buggee dated October 5, 2015, a copy of which is provided in the addendum of this report.

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DISCLOSURE OF COMPETENCY Per the Competency Rule contained within the Uniform Standards of Professional Appraisal Practice, the appraisers hereby affirm that they are competent to complete the appraisal assignment for which they have been engaged by the client. INTENDED USE AND USER The intended use of this report is to assist the client and intended user in disposition considerations. The intended user of the report is City of West Palm Beach. This report has been prepared utilizing generally accepted appraisal guidelines, techniques, and methodologies as contained within the Uniform Standard of Professional Practice (USPAP), as promulgated by the Appraisal Foundation. CLIENT Mr. Vincent J. Noel P.S.M., Survey/Real Estate Supervisor City of West Palm Beach 401 Clematis Street, 4th Floor West Palm Beach, FL 33401 DEFINITIONS Market Value 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, 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: (1) Buyer and seller are typically motivated; (2) Both parties are well informed or well advised, and acting in what they consider their own best interests; (3) A reasonable time is allowed for exposure in the open market; (4) Payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) The price represents normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and the Interagency Appraisal and Evaluation Guidelines, Federal Register, Volume 75, No. 237, December 10, 2010). Across The Fence Method A land valuation method often used in the appraisal of corridors. The across the fence method is used to develop a value opinion based on comparison to abutting land. The price or value of land adjacent to the corridor (i.e., across the fence) is considered for the valuation. Other considerations include corridor factor and usage factor adjustments (The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015).

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PROPERTY RIGHTS APPRAISED The property rights appraised are those of the fee simple estate. Fee simple estate is defined as 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 (The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015). TYPICAL BUYER PROFILE The typical purchaser of the subject would be either a developer who would develop the site for lease or resale or an owner/user that would develop the site for his own use. The comparables utilized in the sales comparison approach to value reflect these trends. SCOPE OF ASSIGNMENT The traditional appraisal approaches include the cost approach, the sales comparison approach, and the income capitalization approach. We have considered all three approaches in this assignment, and determined the sales comparison approach to be applicable in this assignment. In the process of gathering data for the sales comparison approach to value, we conducted a search of our appraisal files and public information sources such as the Palm Beach County Property Appraiser’s public access system and the Palm Beach County Clerk’s Office, as well as subscription based information services such as CoStar.com and RealQuest.com for comparable sales in the relevant market area. We searched for the most similar sales to the subject property. The sales ultimately selected for further analysis were the best comparable sales we were able to find in this market. We obtained and verified additional information on the comparable properties with a party to the transaction, or a broker or agent of the parties when possible. We inspected the exterior of the subject property and the comparables. Physical data pertaining to the subject property was obtained from an inspection of the premises and public information sources such as the Palm Beach County Property Appraiser’s records. Other data pertaining to the subject property was obtained from the Palm Beach County Clerk’s and Tax Collector’s offices and local planning and zoning departments. The product of our research and analysis is formulated within this report for analysis of and direct comparison with the subject property being appraised. Additionally, we have used original research performed in preparation of other appraisals by this office, which is considered appropriate for the subject property. We make no warranty as to the authenticity and reliability of representations made by those with whom we verified sales, rental, and other information. We have taken due care in attempting to verify the data utilized in this analysis. We based our analysis and conclusions on overall patterns rather than on specific representations. Per USPAP Standard Rule 2-2 this analysis is an Appraisal Report presented in written format. The analysis and conclusions of this appraisal assignment are presented in a narrative appraisal report.

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PALM BEACH COUNTY SUMMARY

Geography Palm Beach County is located along Florida’s Southeast north, Hendry and Glades Counties to the west, Broward the east. The northwestern portion of the county is made lake in Florida. The county is located approximately 80 Jacksonville.

coast. It is bordered by Martin County to the County to the south and the Atlantic Ocean to up of Lake Okeechobee, the largest freshwater miles north of Miami and 260 miles south of

Palm Beach County encompasses approximately 2,203 square miles with roughly 1,974 square miles of land area, 229 square miles of water, and 47 miles of coastline. According to the U.S. Census Bureau’s 2015 estimate, Palm Beach County has a population of 1,422,789; an increase of 7.8 percent from the 2010 census statistics of 1,320,134. The vast majority of the county’s growth has been a result of in-migration from the northern states as well as from Miami-Dade and Broward Counties to the south. Palm Beach County ranks as the third most populous county in Florida behind Miami-Dade and Broward Counties. The county includes 38 incorporated municipalities; the largest of which is West Palm Beach, the county seat. Boca Raton, located at the south end of the county, is the second largest city and one of the highest income retail trade areas in the United States. Palm Beach County along with Broward and Miami-Dade Counties to the south are known as the Gold Coast. At 110 miles north-south, it is the second longest urbanized area in the United States behind the New York Metropolitan area.

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Transportation Interstate 95 is a major north/south thoroughfare that connects Palm Beach County to the southeastern and northeastern portions of the state, and then continues along the Eastern Seaboard to Maine. Florida’s Turnpike also passes through the county and provides connections to the north central area of the state and Miami to the south. Other north/south highways include A1A, U.S. Highway 1, Congress Avenue, Military Trail and U.S. 441. There are numerous local east/west roadways with Southern Boulevard providing access to the western portions of the county, as well as Florida’s West Coast. The expanded Palm Beach International Airport is conveniently located to provide air service to and from Palm Beach County. The airport’s growth necessitated a direct access overpass interchange with I-95 which significantly improved ingress and egress for PBIA. Other transportation services in Palm Beach County include the Florida East Coast Railway for rail service and The Port of Palm Beach for the shipping and cruise industries. Tri-Rail provides commuter service through Miami-Dade, Broward, and Palm Beach Counties. Palm Beach County provides a bus service for transportation throughout the county and several of the local municipalities have various forms of local downtown transportation including trolley service and electric cars. Economy The unemployment rate in Palm Beach County reached a peak of 12 percent in July 2010. As of September 2016, the unemployment rate was 5.1 percent according to the U.S. Bureau of Labor Statistics. Tourism is the county's leading industry, employing over 70,000 people and generating about two billion dollars annually. The other multi-billion dollar industries are construction and agriculture. All three industries experienced some decline due to economic conditions from 2007 until the middle of 2011. The economy began to stabilize in mid-2011 and these industries continued to experience signs of recovery through the first half of 2016. The largest employer in Palm Beach County is the Palm Beach County School Board, the fifth largest school district in Florida and the eleventh largest in the United States, with over 21,000 employees and a $2.3 billion dollar budget for the 2016-2017 school year. The five largest private sector service producing employers according to the Business Development Board of Palm Beach County are shown in the following table. Palm Beach County’s favorable economic profile is partially defined by its biotech sector; however, a growing educational sector has emerged to enhance the economic base. Colleges and universities in the county include Palm Beach State College, two Florida Atlantic University campuses, Palm Beach Atlantic University, and Lynn University. FIVE LARGEST PRIVATE SECTOR EMPLOYERS Employer Type of Business Tenet Healthcare Corporation Healthcare NextEra Energy, Inc. (FP&L parent co.) Utilities G4S Secure Solutions (USA) Inc. Security Services HCA, Inc. Healthcare Bethesda Hospital, Inc. Healthcare

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Employees 6,100 3,804 3,000 2,714 2,643

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Residential Real Estate

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Commercial Real Estate Economic and investment conditions in Palm Beach County are the healthiest they have been in years. “Today this market remains strong with increasing demand and some rent growth.” according to investors quoted in the PwC Real Estate Investor Survey 4th Quarter 2015.Southeast Florida; including Palm Beach, Miami-Dade and Broward Counties, has become a desirable ownership location for both domestic and foreign investors. Consistent job growth and a resumption of favorable demographic trends are converging to provide momentum in Palm Beach County growth. A growing population of office workers due to job growth, improving housing affordability, expanded options for renters and strengthening job prospects are sparking resurgence in relocations from outside the county. Palm Beach County has experienced a steady pace of employment in fields that serve the older segment of the population including healthcare, retail and wealth management. Hiring in these areas increased the sizable pool of prospective tenants and a consistent flow of new residents into the county. In all, the forecast for Palm Beach County in 2016 is positive. According to CoStar’s third quarter 2016 data, the Palm Beach County commercial real estate market has experienced slight improvement from the end of mid-year 2016 with specifics of each property class as follows. Industrial The Palm Beach County industrial market ended third quarter 2016 with a vacancy rate of 4.1 percent, down from the previous quarter. Rental rates ended the third quarter 2016 at $9.72 per square foot, an increase over the previous quarter. Net absorption was positive 437,900 square feet in the third quarter 2016. Vacant sublease space decreased ending the quarter at 13,468 square feet. A total of three buildings delivered to the market, totaling 232,651 square feet with 756,206 square feet still under construction at the end of the quarter.

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Office The total vacancy rate for the Palm Beach County office market third quarter 2016 decreased to 11.5 percent. Rental rates averaged $27.82 per square foot, an increase over the previous quarter. Net absorption for the third quarter 2016 was positive 483,362 square feet. Vacant sublease space decreased in the quarter ending at 115,819. A total of three buildings delivered to the market in the quarter totaling 39,224 square feet with 67,329 square feet still under construction.

Retail The Palm Beach County retail market experienced a slight improvement in market conditions in the third quarter 2016, with the vacancy rate going from 4.9 percent to 4.6 percent. Average quoted rental rates decreased from the previous quarter to $20.06 per square foot per year. Vacant sublease space decreased to (3,924) square feet. The third quarter 2016 net absorption rate was a positive 443,829 square feet. A total of11 retail buildings with 194,709 square feet were delivered, with 780,402 square feet still under construction at the end of the quarter.

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Rental Apartments

Marcus & Millichap 2016 U.S. Multifamily Investment states, “The Palm Beach County apartment sector enters 2016 holding strong prospects of attaining lower vacancy and higher rents for the sixth consecutive year.” The publication indicates “Tenants are absorbing apartments at a faster pace than developers can put them in service.” According to Marcus & Millichap’s Fourth Quarter 2015 Apartment Research Market Report, Palm Beach County rent gains for all of 2015 were strong with a lower vacancy rate maintained. The apartment sector was assisted by dwindling affordability in the single family home market. The median price for a single family home jumped more than 20 percent over the past five years. According to the publication, “The County’s positive balance of demand generators to supply growth will continue to appeal to investment groups with development capabilities.”

Conclusion Some of the factors that fed Palm Beach County’s past growth diminished in 2007 with a decline in the national economy which included reduced home prices and high unemployment. This trend continued until the middle of 2011 when signs of stabilization began to emerge. In the fourth quarter 2011, sales activity began to show signs of recovery. A slow but steady rebound in the economy continued through 2015, with stabilization occurring towards the end of 2015 and slight improvement over the past two quarters of 2016. Unemployment rates have steadily decreased and home prices are trending upward. The market is experiencing a steady climb from the depths of the recession which has spurred investors into action. The long-term outlook for Palm Beach County is considered positive due to the broad employment base and desirability as a winter tourist destination. As population grows, more supporting commercial, industrial, and service development will be required. These factors, combined with a finite quantity of developable land, create a positive real estate outlook for the future.

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NEIGHBORHOOD SUMMARY

The subject property is located in a mixed use strip widely defined as south of Belvedere Road, north of the Palm Beach Canal / city border, and along the South Dixie Highway strip westerly to along the Georgia Avenue strip. South Dixie Highway is the main commercial corridor in southern West Palm Beach. It is improved with a wide variety of primarily commercial uses with a few, newer multifamily projects. The strip contains mainly dated buildings but many have been updated or modernized in recent years and a number of new properties have been developed over the past 5 to 10 years. Users are a mix of almost exclusively local owners and tenants. Georgia Avenue is the main light industrial strip in southern West Palm Beach. The area north of Southern Boulevard is mostly residential in nature. The industrial area contains smaller, older warehouse type buildings with mainly local users. Buildings are a mix of single and multiple tenant in nature. The area between South Dixie Highway and Georgia Avenue is divided by the FEC Railroad tracks. The strip between South Dixie Highway and the rail road tracks is a mix of smaller, older single and multifamily properties with a few pockets of light industrial areas along the east side of the tracks. The subject property is located in a desirable mixed commercial / industrial setting but has practically no visibility from main or secondary roads. Even so, market and economic conditions have been improving with increasing demand and values with a limited supply of commercial / industrial land available. Improving market conditions are expected to continue into the foreseeable future.

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PROPERTY DATA Taxpayer of Record NA Public Ownership Palm Beach County Property Control Number(s) The subject is immediately adjacent to 74-43-44-04-05-000-0070 but since the subject is in public ownership it is no assigned a tax identification number. Assessed Value and Taxes for 2016 The subject is in public ownership and is not assessed for ad valorem tax purposes. A typical informed buyer would recognize the possibility of a reassessment following a sale of the property and the possibility that taxes could change as a result, if the assessed value is substantially different than the true market value. Census Tract The subject property is located in census tract 0036.00. Census Tract Map

Subject

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Flood Zone Designation The subject property is located on the National Flood Insurance Program Map on Community Panel Number 120229 0020 B, effective date of March 1, 1979. The subject appears to lie in an area designated as zone C. Flood Zone C is defined as is defined as “areas of minimal flooding." Flood Map

Subject

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Zoning and Future Land Use The subject property’s use is dictated by the West Palm Beach Zoning Code and Comprehensive Plan. The West Palm Beach zoning and future land use maps indicate the subject property has a zoning designation of GC/General Commercial with an underlying land use designation of C/Commercial. Permitted uses under this zoning category generally include, but are not limited to; a wide variety of retail, restaurant and office uses. The appraisers have not independently verified that the subject complies with current site development regulations (setbacks, site coverage, etc.). It has been assumed that by virtue of the subject’s on-going use, should there be any areas of non-compliance, a variance has been issued or some other form of special exception has been made. Zoning Map

Subject

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Concurrency The strongest growth control measure ever imposed was passed by the Florida Legislature and became effective on February 1, 1990. This was mandated by Chapter 163, Florida Statutes, otherwise known as the Growth Management Law. One provision of this law is referred to as Concurrency which dramatically limits the ability to develop real property. It is basically the requirement that adequate infrastructure be available to serve new development. Eight types of infrastructure are affected including traffic, potable water, sewer, drainage, solid waste, recreation and open space, mass transit, and fire rescue. In May of 2011, House Bill 7172 amended the Growth Management act in an effort to spur economic growth through streamlining and lessening growth management controls. Transportation concurrency requirements were exempted in dense urban land areas with populations of at least 1,000 people per square mile. Also, within dense urban land areas, the DRI process has been exempted. State review of local comprehensive plans was streamlined and zoning changes are now allowed to be considered concurrently with land use plan amendments. It is the appraisers’ understanding that the subject is not subject to any concurrency restrictions. Should the property be altered or redeveloped, the matter of concurrency would need to be revisited at that time. Utilities The following utilities are available to the subject property: Water, electricity, municipal sewer. Subject Property Sales History The appraisers have not been provided with a title abstract on the property appraised nor have they conducted a title search of their own. The Palm Beach County Property Appraiser’s records indicate that the subject property has been in public ownership for decades. To the appraisers' knowledge the subject property is not currently listed for sale or subject to a current purchase agreement.

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Site Analysis The following analysis is based upon a personal inspection of the site and Palm Beach County Public Records. Location The subject property is located on the east side of Webster Avenue, 105 feet north of Bunker Road in the block bound by South Dixie Highway to the east, Bunker Road to the south, Webster Avenue to the west and Oxford Street to the north. The larger neighborhood includes the South Dixie Highway corridor bound by Southern Boulevard to the north and Forest Hill Boulevard to the south. The property address is 417/431 Bunker Road, West Palm Beach, Florida 33405. Size and Shape We have relied on the site size for the property from the survey provided by the client prepared by Robert A. Buggee dated October 5, 2015. The site is a rectangular shaped parcel of land having roughly 14.4 feet of frontage on the east side of Webster Avenue. The subject site area is approximately 2,493 square feet or 0.057 acres. A detail of the survey is presented below. A detail of the sketch from legal description is presented on the following page.

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Topography and Drainage The site is level and above road grade. Drainage appears to be adequate for its current use. No apparent drainage problems were noted during the inspection. However, we have not had the opportunity to visit the site during a time of heavy rainfall. It is assumed that the subject does not suffer from any detrimental drainage problems. Access Access is via Webster Avenue.

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Easements or Encroachments We have been informed by the client that the city will retain a utility easement on the northern 10’ of the subject site. Soil/Environmental Conditions We have not been provided with nor have we commissioned a soil or sub-soil condition report. The subject’s land appears to be composed of typical loose South Florida sand. The appraisers have no reason to believe that there may be hazardous materials stored and used at the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

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HIGHEST AND BEST USE The Appraisal Institute defines highest and best use as follows: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Alternatively, the probable use of land or improved property—specific with respect to the user and timing of the use—that is adequately supported and results in the highest present value. (Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015). The analysis of highest and best use normally applies these considerations in a three step process, involving the analysis of the Highest and Best Use of the site as if vacant, determination of the ideal improvement, and a comparison of the existing improvement with the ideal improvement in order to estimate the highest and best use as improved. The subject is vacant land, therefore only the first two steps apply. The subject site contains roughly 0.057 acres and could physically support a number of uses. These physically possible uses must be legal, reasonable, probable, and a logical continuation of surrounding uses within the subject property's neighborhood. The subject site is in public ownership and as such is not zoned. For the purposes of this analysis we have assumed that if it were transferred into private ownership it would be zoned in a manner similar to the abutting parcel to the south which is zoned GC/General Commercial with a future land use designation of C/Commercial use. The surrounding area has been developed mainly with commercial uses in the past. Given the preceding discussion, it is the appraisers’ opinion that the highest and best use for the subject site would be development with a commercial use in accordance with the zoning and in keeping with the general development trends in the neighborhood. This parcel has little, if any, development potential to anyone other than the adjoining property owner. This type of property is almost exclusively purchased privately by the adjacent land owner for assemblage and almost never sold in the open market. Depending on the entities involved, the value of this type of property is sometimes discounted for size and width, configuration, and lack of development potential. In more and more cases, however, the selling parties demand full value with no discount based on an across the fence value. The highest and best use of the subject property is for assemblage with the adjoining properties. This would result in the most utility, development potential and highest value. It should be noted that an “across the fence” value ignores the highest and best use of the property on a stand-alone basis (which would include a discount for configuration and utility). The highest and best use of the subject property, as vacant, is for commercial development in keeping with current market trends.

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A&C Job No.: 2160420.000 32

EXPOSURE AND MARKETING TIME Exposure time is: 1) The time a property remains on the market; 2) 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; 3) A retrospective estimate based on an analysis of past events assuming a competitive and open market. Marketing time is an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions address the determination of reasonable exposure and marketing time. (Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015). Credit markets are now showing signs of easing and financing for commercial properties appears to be more readily available at this time. Most properties offered for sale have been exposed on the market for six to twelve months or longer. In their fourth quarter 2016 issue, PwC Real Estate Investor Survey published by PwC, indicates an average marketing time of approximately 3 to 36 months with an average of 16 months for properties in the national development land market. The CoStar Group reported the sale of 41 properties in Palm Beach County from January 1, 2016 through January 3, 2017 for which a marketing period was available. The marketing time ranged from two months to over two years, with an average of 6 to 12 months. We note that the Costar data is skewed by many properties that were significantly overpriced by unmotivated sellers and/or were not properly marketed and languished on the market for several years. We believe if appropriately priced and marketed the subject would sell in the lower portion of the time frame range exhibited by the CoStar data. Many of the properties in the CoStar research were overpriced and only sold after the asking prices were significantly reduced. A properly priced property would sell more quickly. Considering the preceding, as well as sales that have taken place in the local market, and assuming a prudent pricing strategy, we estimate an exposure time of 6 to 12 months. Looking forward, we feel this would be a reasonable estimate for marketing time as well.

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A&C Job No.: 2160420.000 33

SALES COMPARISON APPROACH The sales comparison approach is the process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised, identifying appropriate units of comparison, and making qualitative comparisons with or quantitative adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, marketderived elements of comparison. (Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015.) The sales comparison approach requires that the appraiser locate recent sales of similar properties and through an adjustment process arrive at an indication of what these properties would have sold for if they possessed all of the salient characteristics of the subject property. These adjusted sales prices are then correlated into an estimate of the market value of the property via the sales comparison approach to value. A search of the Palm Beach County official records, local multiple listing service records, discussions with local brokers and appraisers and a personal inspection of the subject area produced several sales of similar type properties. The sales used in the analysis were the best comparables that we were able to verify with public records and/or a party to the transaction. The following pages feature a detailed write up of each comparable used in the analysis, a location map and summary of the selected comparable sales data, which is followed by a discussion of the pertinent adjustments and conclusion of value.

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A&C Job No.: 2160420.000 34

SALE NO. 1 - South Dixie Highway, West Palm Beach, FL 33405 AC File No.: 2150546.000

OR Book/Page: 27226/1759 Sale Status: Sale

ID: 908405

Type: Land Sub-Type: Commercial

Date:

December 16, 2014

Grantor:

PNC Bank NA

Grantee:

AutoZone Stores, LLC

Legal:

Lots 1 and 2, Block 7, Homewood First Addition, Plat Book 23, Page 26, Palm Beach County, Florida

Folio No.:

74-43-44-10-07-007-0010

Location:

Southeast corner of South Dixie Highway and Desota Road roughly 0.2 miles south of Forest Hill Boulevard, West Palm Beach

Zoning:

NC - Neighborhood Commercial by West Palm Beach

Land Use:

Commercial

Utilities:

Municipal water and sewer, electricity, and telephone

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Site Size:

Square Feet: 22,200 Acres: 0.51 Shape: Rectangular Street Frontage (Ft.): 311 Topography/Elevation: Level, near road grade

Use:

Current Use: Vacant Intended Use: Commercial Highest and Best Use: Commercial

Verification:

Source: Listing flyer, public records Conditions of Sale: Arm's-length Verified By: B. Arnold Date: December 11, 2015

Sales History:

No arm' length transactions in the previous five years

Sales Price:

$400,000

Price/SF Land:

$18.02

Price/Acre:

$784,314

Financing:

None recorded

Comments: REO sale of a vacant corner lot to the adjacent property owner AutoZone who is developing the site with an expansion of their existing store at 7300 South Dixie Highway. In January 2015 the buyer filed a unity of title with the City of West Palm Beach to unify the properties under one parcel control number.

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SALE NO. 2 - 4510 Georgia Avenue, West Palm Beach, FL 33405 AC File No.: 2150157

OR Book/Page: 27382/0203 Sale Status: Sale

ID: 907956

Type: Land Sub-Type: Industrial

Date:

February 20, 2015

Grantor:

B & B Holding of Palm Beach, Inc.

Grantee:

General Land Acres, Inc.

Legal:

Lots 73 through 81, Southboro Park, Plat Book 9, Page 57, Palm Beach County, Florida

Folio No.:

74-43-44-04-13-000-0730

Location:

East side of Georgia Avenue about 1/3 mile south of Southern Boulevard, West Palm Beach

Zoning:

I - Industrial by City of West Palm Beach

Land Use:

I (Industrial)

Utilities:

Water, electricity, municipal sewer

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Site Size:

Square Feet: 21,700 Acres: 0.50 Shape: Rectangular Street Frontage (Ft.): 217 Topography/Elevation: Level, near road grade

Use:

Current Use: Vacant Intended Use: Future Build Highest and Best Use: Industrial

Verification:

Source: Dan Lewis, Lewis Realty Group Relationship: Listing Broker Conditions of Sale: Arm's-length Verified By: Gary Orr Date: May 13, 2105

Sales History:

$100, November 2003, 16266/1439; $250,000, March 2002, 13585/0407; both included building next door

Sales Price:

$303,000

Price/SF Land:

$13.96

Price/Acre:

$608,434

Financing:

Cash to seller

Comments: This is the sale of the south half a property that has a 6,950 square foot industrial building on the north half of the larger property. The sale property is a former side parking lot used for open storage. The property was listed for $389,000 and sold after 1,503 days on the market. It was purchased by a nearby owner for future construction of a building planned for storage. The deed was recorded at $300,000 but the buyer paid an additional $3,000 in sellers closing costs.

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A&C Job No.: 2160420.000 38

SALE NO. 3 - 2222 North Dixie Highway, West Palm Beach, FL 33407 AC File No.: 2150197.002

OR Book/Page: 27367/0429 Sale Status: Sale

ID: 908018

Type: Land Sub-Type: Commercial

Date:

February 26, 2015

Grantor:

Robert J Zammit Sr.

Grantee:

Parkland Corporation

Legal:

W 1/2 Lots 8 and 9 (except the W 12 feet) and S 1/2 of W 120 feet of Lot 10 (except the W 12 feet), Block 3, Bethesda Park, Plat Book 1, Page 136, Palm Beach County, FL

Folio No.:

74-43-43-10-19-003-0101, 74-43-43-10-19-003-0081

Location:

East side of North Dixie Highway, just north of 21st Street, West Palm Beach

Zoning:

CMUD Type II - Currie Mixed Use District Type II by Palm Beach

Land Use:

Mixed Use

Utilities:

Municipal water and sewer, electricity, and telephone

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Site Size:

Square Feet: 15,500 Acres: 0.36 Shape: Irregular Street Frontage (Ft.): 125 Topography/Elevation: Level, near road grade

Use:

Current Use: Used car sales Intended Use: hold for investment Highest and Best Use: Mixed use/commercial

Verification:

Source: Jon C. Schmid, Costar, loopnet.com, public records Relationship: listing broker Conditions of Sale: Arm's-length Verified By: B. Arnold Date: June 5, 2015

Sales History:

No transactions in the previous five years

Sales Price:

$330,000

Price/SF Land:

$21.29

Price/Acre:

$926,966

Financing:

None recorded

Comments: Property is being leased for use as a used car sales lot and has a single story 941 square foot CBS commercial building on it that serves as the office. The buyer purchased the property as an investment with expectation of eventual redevelopment as the area continues to gentrify. In the interim he has signed a new lease with the car lot operator. Details of the new lease were not disclosed

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SALE NO. 4 - Belvedere Road, West Palm Beach, FL 33405 AC File No.: 2160401

OR Book/Page: 28618/428 Sale Status: Sale

ID: 908905

Type: Land Sub-Type: Commercial

Date:

September 27, 2016

Grantor:

Christal, Inc.

Grantee:

IC Belvedere LLC

Legal:

Sunshine Park Add No 1 Lots 174 & 175 (Less S 15' Belvedere Rd R/W), Lots 152, 153, 154 and 155 in Plat Book 7, Page 75, Palm Beach County, Florida

Folio No.:

74-43-43-28-07-000-1740, 74-43-43-28-07-000-1520, 74-43-43-28-07-000-1540

Location:

North side of Belvedere Road, just west of South Dixie Highway in West Palm Beach, Florida

Zoning:

GC - General Commercial by West Palm Beach

Land Use:

Commercial

Utilities:

Municipal water and sewer, electricity, and telephone

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Site Size:

Square Feet: 14,280 Acres: 0.33 Shape: L Street Frontage (Ft.): 50 Topography/Elevation: Level, near road grade

Use:

Current Use: Vacant land Intended Use: Commercial Highest and Best Use: Commercial

Verification:

Source: Randy Goodman with Corporate Digs, Inc. Relationship: Listing agent Conditions of Sale: Arm's-length Verified By: K. Doran Date: September 29, 2016

Sales History:

No transactions in the previous five years

Sales Price:

$550,000

Price/SF Land:

$38.52

Price/Acre:

$1,676,829

Financing:

Cash to seller

Comments: This property was on the market for approximately 8 months prior to contract at a list price of $600,000. The site is "L" shaped with 50' of frontage on Belvedere Road and 100' on Avon Road. The listing agent did not know what the buyer planned to do with the property. Average Daily Traffic Counts 2015 Belvedere Rd: 17,328

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SALE NO. 5 - 500 Flamingo Drive, West Palm Beach, FL 33401 AC File No.: 2160557

OR Book/Page: 28783/207 Sale Status: Sale

ID: 909107

Type: Land Sub-Type: Commercial

Date:

December 19, 2016

Grantor:

JPJ Holdings, Inc. f.k.a. Carpenter's Realty, Inc.

Grantee:

Jeff Greene

Legal:

Parcel 1: Lots 5 to 10 inclusive, Block 12, Flamingo Park, according to the Plat thereof as recorded in Plat Book 8, Page 30, Public Records of Palm Beach County, Florida, Less that part of the North 62.5 feet of Lots 6 and 7 lying within 100 feet of the East line on Lot 7 (long legal).

Folio No.:

74-43-43-28-06-012-0050, 74-43-43-28-06-012-0061, 74-43-43-28-06-019-0060

Location:

South side of Flamingo Drive through to Biscayne Drive as well as a lot south of Biscayne Drive all located on the west side of the FEC railway line.

Zoning:

RTD - Railroad Transition District by West Palm Beach

Land Use:

MF/Multifamily

Utilities:

Water, electricity, municipal sewer

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Site Size:

Square Feet: 61,072 Acres: 1.40 Shape: Irregular Street Frontage (Ft.): 178 Topography/Elevation: Level, near road grade

Use:

Current Use: Industrial Intended Use: Hold for future development Highest and Best Use: Multifamily

Verification:

Source: Robert Banting Relationship: Broker Conditions of Sale: Arm's-length Verified By: W. Lewis Date: January 3, 2016

Sales History:

No transactions in the previous five years

Sales Price:

$1,190,000

Price/SF Land:

$19.49

Price/Acre:

$848,787

Financing:

Cash to seller

Comments: The property was purchased by Jeff Greene who owns the school located to the east. The property is improved with several older industrial buildings totaling 12,695 square feet that were constructed in the 1940's. The grantee has no immediate plans for the property and gave the seller use of the property rent free for a year. The seller will pay taxes and insurance during the free rent period. We have attributed all value to the underlying land due to age and condition of the existing improvements. The property was previously zoned SF14-C2 but was changed to Railroad Transition District so a variety of future uses would be allowable.

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Comparable Sales Location Map

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SALES SUMMARY TABLE Sale No. Date

OR Bk Page

1

27226

Dec-14

1759

2

27382

Feb-15

0203

3

27367

Feb-15

0429

4

28618

Sep-16

428

5

28783

Dec-16

207

Subj. Jan-17

N/A

Land Area SF Acres

Property Address South Dixie Highway

22,200

West Palm Beach

0.51

4510 Georgia Avenue

21,700

West Palm Beach

0.50

2222 North Dixie Highway

15,500

West Palm Beach

0.36

Belvedere Road

14,280

West Palm Beach

0.33

500 Flamingo Drive

61,072

West Palm Beach

1.40

417/431 Bunker Road

2,493

West Palm Beach

0.06

417/431 Bunker Road

Sale Price

Price/SF of Land

$400,000

$18.02

$303,000

$13.96

$330,000

$21.29

$550,000

$38.52

$1,190,000

$19.49

N/A

N/A

A&C Job No.: 2160557.000 46

Sales Summary and Discussion In this analysis, we considered differences between the sales and the subject in terms of property rights sold, conditions of sale, financing, market conditions (trend or time adjustment), location, building and lot size, and quality and condition of the improvements. The appraisers based the comparisons on a standardized unit of measure, the sale price per square foot of land. The sale price per square foot of land correlates well among the comparable sales and is commonly used by buyers in this type of analysis. We have utilized "across the fence" appraisal methodology which is a land valuation method often used in the appraisal of corridors. The across the fence method is used to develop a value opinion based on comparison to abutting land. The subject will likely be assembled with the commercial parcel to the south which is oriented toward Bunker Road. Bunker Road, in the vicinity of the subject is a commercial through street with a railway crossing which extends the commercial district of South Dixie Highway several blocks to the west to the intersection of Georgia Avenue. Property Rights The property rights transferred were believed to be those of the fee simple estate. No differences between the sales and the subject are reflected. Conditions of Sale The majority of the sales were reportedly market oriented. No adjustment consideration for conditions of sale was necessary. Only Sale 1 which was a sale out of foreclosure requires upward adjustment for condition of sale. Financing We considered any indication of favorable financing. All sales were either on a cash basis or had market oriented financing, therefore, no differences were noted nor were adjustments made. Market Conditions The sales occurred over the period from December 16, 2014 to December 19, 2016. The date of value is January 3, 2017. The market has shown improving market conditions over this time period. We have made upward adjustment to the three oldest sales to reflect improving market conditions. Location The subject property is located at 417/431 Bunker Road in West Palm Beach. Sale 1 has direct frontage on South Dixie Highway so downward adjustment is indicated. Sales 2 and 5 are located in traditionally industrial areas just west of the FEC railway line so upward adjustment is indicated. Sale 3 has a similar location in a gentrifying area of Dixie Highway north of the West Palm Beach CBD which requires no

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adjustment. Sale 4 has direct frontage on the main east-west arterial of Belvedere Road so downward adjustment is indicated. Size Generally, larger properties will sell for a somewhat lower price per square foot of land than smaller ones, and vice versa, when all else is equal. The sales in this data set do not appear to follow this pattern and no adjustment is warranted. Site Conditions Properties of all different shapes can typically be developed. Some properties, however, allow for a more efficient development of the site providing for the maximum development intensity. Neither the subject nor the comparables appear be impacted by their shape in such a manner as to limit their development. Another factor considered here is the existence of any physically detrimental site conditions such as contamination or muck. Neither the subject nor any of the comparables were known to suffer from any detrimental site conditions. Zoning/Land Use The subject property has a zoning designation of GC/General Commercial by West Palm Beach with an underlying future land use of C/Commercial by West Palm Beach. Though they may vary by municipality, the majority of the comparables have similar commercial oriented designations that allow for similar uses as the subject. Only Sale 2 which has an industrial zoning classification requires upward adjustment for inferior zoning.

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QUANTITATIVE SALES ADJUSTMENT CHART - PRICE/LAND SF Sale Date

1 Dec-14 2

Property Address

Land SF

Price/ Land SF

22,200

$18.02

South Dixie Highway West Palm Beach 4510 Georgia Avenue 21,700

Feb-15 3 Feb-15 4

2222 North Dixie Highway

Sep-16 5

Belvedere Road

Dec-16 Subj.

500 Flamingo Drive

25%

10%

$18.02

$22.52

$24.77

0%

0%

10%

$13.96

$13.96

$15.36

0%

0%

10%

$21.29

$21.29

$23.42

0%

0%

0%

$38.52

$38.52

$38.52

0%

0%

0%

$19.49

$19.49

$19.49

N/A

N/A

N/A

$19.49

West Palm Beach

Final Combined Adjustment

Overall Indication

0%

-10%

$22.30

0%

20%

40%

$21.50

0%

0%

0%

0%

$23.42

-20%

0%

0%

0%

-20%

$30.81

20%

0%

0%

0%

20%

$23.38

N/A

N/A

N/A

N/A

N/A

N/A

Location

Land Size

-10%

0%

0%

20%

0%

0%

Site Zoning/ Conditions Land Use

417/431 Bunker Road 2,493

Jan-17

0%

$38.52

West Palm Beach

61,072

Market Conditions/ Adj. Price/ Land SF

$21.29

West Palm Beach

14,280

Conditions of Sale/ Adj. Price/ Land SF

$13.96

West Palm Beach

15,500

Financing/ Adj. Price/ Land SF

N/A

West Palm Beach

417/431 Bunker Road

A&C Job No.: 2160557.000 49

Conclusion Considering all of these differences, we developed the preceding quantitative comparison chart listing the sales as they compare to the subject property, based on a price per square foot of land. Not all categories considered are depicted. Those omitted reflect no differences between the sales and the subject property. The unadjusted range of value indicated by the sales is roughly $13.96 to $38.52 per square foot of land area. The preceding quantitative comparison chart shows the value range for the subject property after adjustment based on a price per square foot of land area to be from $21.50 to $30.81 with a mean of $24.28. Considering all of the salient factors discussed previously and prevailing market conditions, the appraisers feel a conclusion in the middle portion of the indicated range is most appropriate. Given the preceding data and discussions, it is concluded that the market reflects a value per square foot of land area for the subject property of $24.00 as of January 3, 2017. Easement Conclusion According to the client, a utility easement will be reserved on the northern 10’ of the subject parcel. Based on a width of 10’ and a length of 175’ the portion of the subject which will be encumbered by the easement is 1,750 square feet. The remaining land area of 743 square feet will be unencumbered. The utility easement will restrict the use of the subject parcel by reducing the bundle of rights associated with fee simple ownership. Our experience with these types of easements is that they diminish value by 50% of the encumbered portion. Therefore, we have applied a fifty percent reduction of the fee simple value concluded above. Based on our value conclusion above, we have concluded the unencumbered subject parcel would be valued at $24.00 per square foot and the portion encumbered by the utility easement would be valued at 50% of that amount or $12.00 per square foot. The final value of the subject as encumbered by the proposed utility easement as of January 3, 2017 is calculated as follows: 1,750 SF of encumbered land @ $12.00 per Square Foot =

$21,000

743 SF of unencumbered land @ $24.00 per Square Foot =

$17,832

2,493 Square Feet =

$38,832

Rounded To: MARKET VALUE VIA SALES COMPARISON APPROACH:

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$39,000

A&C Job No.: 2160420.000 50

QUALIFICATIONS OF APPRAISER ROBERT B. BANTING, MAI, SRA PROFESSIONAL DESIGNATIONS - YEAR RECEIVED MAI - Member Appraisal Institute - 1984 SRA - Senior Residential Appraiser, Appraisal Institute - 1977 SRPA - Senior Real Property Appraiser, Appraisal Institute - 1980 State-Certified General Real Estate Appraiser, State of Florida, License No. RZ4 - 1991 EDUCATION AND SPECIAL TRAINING Licensed Real Estate Broker - #3748 - State of Florida Graduate, University of Florida, College of Business Administration, BSBA (Major - Real Estate & Urban Land Studies) 1973 Successfully completed and passed the following Society of Real Estate Appraisers (SREA) and American Institute of Real Estate Appraisers (AIREA) courses and/or exams: Note: the SREA & AIREA merged in 1991 to form the Appraisal Institute. SREA R2: SREA 201: SREA: SREA: AIREA 1B: SREA 101: AIREA: AIREA: AIREA: AIREA 2-2: AIREA: AIREA: AIREA:

Case Study of Single Family Residence Principles of Income Property Appraising Single Family Residence Demonstration Report Income Property Demonstration Report Capitalization Theory and Techniques Introduction to Appraising Real Property Case Studies in Real Estate Valuation Standards of Professional Practice Introduction to Real Estate Investment Analysis Valuation Analysis and Report Writing Comprehensive Examination Litigation Valuation Standards of Professional Practice Part C

ATTENDED VARIOUS APPRAISAL SEMINARS AND COURSES, INCLUDING: The Internet and Appraising Golf Course Valuation Discounting Condominiums & Subdivisions Narrative Report Writing Appraising for Condemnation Condemnation: Legal Rules & Appraisal Practices Condominium Appraisal Reviewing Appraisals Analyzing Commercial Lease Clauses Eminent Domain Trials Tax Considerations in Real Estate Testing Reasonableness/Discounted Cash Flow Mortgage Equity Analysis Partnerships & Syndications Hotel and Motel Valuation Advanced Appraisal Techniques Federal Appraisal Requirements Analytic Uses of Computer in the Appraisal Shop Valuation of Leases and Leaseholds Valuation Litigation Mock Trial Residential Construction From The Inside Out Rates, Ratios, and Reasonableness Analyzing Income Producing Properties Development of Major/Large Residential Projects Standards of Professional Practice Regression Analysis In Appraisal Practice Federal Appraisal Requirements Engaged in appraising and consulting assignments including market research, rental studies, feasibility analysis, expert witness testimony, cash flow analysis, settlement conferences, and brokerage covering all types of real estate since 1972. President of Anderson & Carr, Inc., Realtors and Appraisers, established 1947 Past President Palm Beach County Chapter, Society of Real Estate Appraisers (SREA) Realtor Member of Central Palm Beach County Association of Realtors Special Master for Palm Beach County Property Appraisal Adjustment Board Qualified as an Expert Witness providing testimony in matters of condemnation, property disputes, bankruptcy court, foreclosures, and other issues of real property valuation. Member of Admissions Committee, Appraisal Institute - South Florida Chapter Member of Review and Counseling Committee, Appraisal Institute - South Florida Chapter Approved appraiser for State of Florida, Department of Transportation and Department Natural Resources. Instructor of seminars, sponsored by the West Palm Beach Board of Realtors. Authored articles for The Palm Beach Post and Realtor newsletter. Real Estate Advisory Board Member, University of Florida. TYPES OF PROPERTY APPRAISED - PARTIAL LISTING Air Rights Medical Buildings Apartment Buildings Amusement Parks Department Stores Hotels - Motels Condominiums Industrial Buildings Office Buildings Mobile Home Parks Service Stations Special Purpose Buildings Auto Dealerships Vacant Lots - Acreage Residential Projects Shopping Centers Leasehold Interests Financial Institutions "I am currently certified under the continuing education progr am of the Appraisal Institute."

Churches Marinas Residences - All Types Restaurants Golf Courses Easements

QUALIFICATIONS OF APPRAISER WAYNE B. LEWIS, MAI GENERAL INFORMATION MAI - Member Appraisal Institute State-Certified General Real Estate Appraiser, State of Florida, License No. RZ2452 American Institute of Real Estate Appraisers exams 410, 420, 500, 510, 520, 540, 550 & Capstone Florida Licensed Real Estate Broker No. BK685197 EDUCATION AND SPECIAL TRAINING: Master of Science in Real Estate and Urban Affairs (M.S.R.E.) Georgia State University School of Business Administration; Appraisal major Bachelor of Business Administration (B.B.A) Emory University School of Business Administration; Economics major FREAB: How to Appraise a Business EXPERIENCE: Anderson & Carr, Inc., FL April 2000 Commercial and residential real estate valuation, highest and best use analysis, market studies and construction loan analysis. Real estate brokerage and leasing. The Appraisal Group Atlanta, GA October 1999 – March 2000 Commercial and residential real estate valuation, highest and best use analysis, market studies and construction loan analysis. PRIMIS, Inc. Atlanta, GA February 1998 – September 1999 Director of operations of the Atlanta office of PRIMIS, Inc. Successfully turned around an under performing office with annual run rate of $300,000 to a run rate of $1,000,000 in a twelve month period. Established capability to electronically deliver full appraisal reports via the internet resulting in 25% cost savings. Participated in the selection panel tasked with choosing a new computer appraisal software for the nationwide network of offices. Participated in the design of a partially automated residential appraisal software that is proprietary to PRIMIS, Inc. Regularly demonstrate proprietary appraisal ordering, tracking and delivery software for corporate targeted acquisition candidates. Recruited and trained the current staff of 25 appraisers and office assistants (original staff of seven). Engineered high growth while improving customer satisfaction in the appraisal, flood determination and limited title search industry. Served as marketing representative, senior review appraiser, reviewer of monthly income statements and performed all duties of the director of operations. The Atlanta office of PRIMIS, Inc. is currently servicing 400+ residential appraisals per month. The Appraisal Group Atlanta, GA July 1994 – January 1998 Partner/Senior Appraiser - Commercial and residential real estate valuation, highest and best use analysis, market studies and construction loan analysis. Primary activity focused on acquisition and development loan analysis associated with multi-phased single family residential community developments. Additional areas of concentration ranged from industrial products such as carpet manufacture; trucking and warehouse distribution buildings; to golf courses; horse facilities; fast food restaurants; office and rental buildings; apartments and single family residences. Long range budget planning with particular attention on cost savings. Served as marketing representative focusing on new client development and retention. Utilized a wide range of computer skills in report writing, discounted cash flow analysis, and development and renovation cost estimation designed to attain effective communication with clients.

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