Former Supermarket / Furniture — 37,612 sf Liberal, Kansas • 703 North Kansas Avenue • Seward County

Building Area (GLA) 37,612 sf Former Tenant Grocer / Furniture Status Vacant Year Built 1979 Parcel Area 3.08 acre APN #088-149-32-0-40-01-001.00-0 Building Condition Fair Construction Type Concrete Block Walls Concrete Block, Sheet Rock Zoning C-2 Commercial HVAC Central Gas, Central Electric Ceiling Height 16 to 20 feet Floors Concrete Slab, Carpet, Tile Co-tenants Wendy's Annual Taxes $27,297.26 (2016)

Liberal is the county seat of Seward County. Energy and agriculture are the main economic drivers of the area. The beef industry (ranches, feed lots and packing plants) is Liberal's largest source of employment. Hard winter wheat, corn, milo, alfalfa and cotton are common crops. Dairies and pork processors are growing businesses in Seward County

Joe Bonifatto • 702-491-0472 • joeb@bphold.com

BP Holdings, Inc. • 3960 Howard Hughes Pkwy, #150 • Las Vegas, NV 89169

Trade Area Population Avg HH Income 1 mile radius 2,325 $58,961 3 mile radius 5,876 $56,956 5 mile radius 6,389 $57,825

Former Supermarket / Furniture — 37,612 sf Liberal, Kansas • 703 North Kansas Avenue • Seward County

Former Supermarket / Furniture — 37,612 sf Liberal, Kansas • 703 North Kansas Avenue • Seward County

Former Supermarket / Furniture — 37,612 sf Liberal, Kansas • 703 North Kansas Avenue • Seward County

Former Supermarket / Furniture — 37,612 sf Liberal, Kansas • 703 North Kansas Avenue • Seward County

Seward County and Liberal, Kansas

Page 1

State of Kansas

Kansas has a strong agricultural tradition that predates its statehood, and agriculture continues to be a significant contributor to the state’s economic well-being. Today, Kansas is a leader in wheat, grain sorghum and beef production. The dairy sector is rapidly expanding in Kansas, and other sectors of animal agriculture are growing as well. Farmers and ranchers across the state are responding to demand from consumers to raise healthy, wholesome food and are also continuously striving to do better ... raising more food and using fewer resources. Agriculture is a critical part of Kansas’ past, and it is a key economic driver in the present, but it also holds great potential for the state's future. Increasingly, agricultural resources provide raw materials for a broad range of nonfood products, such as chemicals, fibers, construction materials, lubricants and fuels. Developing and commercializing biobased and bioenergy products provides new and expanded markets for agricultural feedstock. It reduces our nation’s dependence on petroleum and other imported materials, and it helps diversify agriculture. As the world population grows and as demand for animal protein increases, Kansas farmers and ranchers will play a critical role in feeding Kansas families and families around the world.

Kansas Economy

Agriculture. Kansas is an important agricultural state, ranking 7th among the states for total agricultural production. In terms of revenue generated, Kansas' top five agricultural products are cattle and calves, wheat, corn for grain, soybeans, and hogs.

Crops. Kansas' largest crop is wheat. It accounts for about 12% of the state's total agricultural production. In fact, Kansas is the #1 wheat-producing state, generating about 15% of the nation's total crop. North Dakota follows closely on Kansas' heels. Corn for grain is another valuable Kansas crop, contributing about 9% to the state' s total agricultural revenue ... and soybeans are another valuable crop in Kansas, followed by sorghum grain and hay.

Seward County and Liberal, Kansas

Page 2

Livestock. Far and away the highest agricultural revenue in Kansas is generated by raising cattle and calves. The revenues produced by this activity account for about 60% of the state's total agricultural production. Hogs and dairy products are also important in the state. Some revenue is generated by chicken eggs and sheep and lambs.

Seward County, Kansas

Seward County was organized on June 17, 1886. Containing the towns of Kismet and Liberal, the county was named for William H. Seward, Secretary of State under Abraham Lincoln.

Each year for more than 60 years on Shrove Tuesday (which falls somewhere between mid-March and early April, depending upon the Easter dates) women of Liberal compete in a timed pancake race between them and their sister city of Olney, England. Contestants must run a course flipping the pancakes along the route.

The first church in Seward County was the Liberal Presbyterian, founded in 1888. The first school district was formed in Liberal in 1888.

Seward County and Liberal, Kansas

Page 3

John W. Baughman settled in the county in 1872 and began to amass large landholdings in both Kansas and Colorado. When he died in 1954 he had accumulated over 300,000 acres in the two states ... in addition to other interests in oil, cattle and feedlot operations. His son, Robert W., was president of Baughman Farms until his death in 1970. Long interested in history, Robert was the author of Kansas in Maps, 1961, Early Day Post offices, 1961, and in 1963 he published the book Kansas in Newspapers

History of Seward County

for the Kansas Historical Society.

The county was first settled by ranchers in about 1883, being formally organized in 1886 and named for W. H. Seward, the Secretary of State under President Lincoln. For many years, cattle raising remained the major industry in the county. Most of the ranches were located along Cimarron River, as they are at the present time. The upland was cultivated then only for winter feed. In recent years there has been a slow trend back toward the cattle industry.

In the area northeast of the river, the grass and row-crop agriculture gave way to the raising of wheat in about 1922 to 1924. Several years later, the same change affected the section around Liberal, and wheat continues to be the most important agricultural product of the county. In the five-year period, 1930-1934, the acreage of wheat harvested averaged 94,379 a year, but during the same period an average of 39,682 acres of wheat was abandoned each year. During the same period the county produced each year an average of about 21,000 acres of corn, nearly 2,000 acres of barley, 25,000 to 45,000 acres of grain sorghums, and about 3,400 acres of broomcorn. At one time Liberal was reputed to be the largest grain-sorghum center in the world. The average individual crop yields, from 1922 to 1932, were: wheat, 10.6 bushels to the acre; corn, 13.2 bushels; barley, 13.4 bushels; kafir, 15.9 bushels; and milo, 17.1 bushels. During the same period, the fluctuations in yield for all crops were 31 percent greater than the average for the state.

Drought and wind erosion have had a considerable influence on the agricultural practices within the county. Many farmers lost their farms as a result of the drought and left the county or remained as tenants, generally operating the farms under a cash-crop lease from an

Seward County and Liberal, Kansas

Page 4

absentee owner. The average size of the farm has been increased in the last several years by the practice of one person farming several properties previously operated by several individuals.

The type of soil determines the crops that are raised. Loam and silt soils are seeded primarily to wheat ... grain being a secondary cash crop. Fine sandy barns are devoted, about half and half, to the cultivation of wheat and row crops. Sandy barns are utilized for the same crops as the fine sandy barns, but are subject to blowing and probably should be reserved for cover crops and pasture. The dune phase of the sandy loam soils generally is in pasture, but row crops and wheat are grown on some of it. These areas were once covered by bluestem, but are now covered largely by sagebrush and other desert plants. The clayey lake bottoms, known also as buffalo wallows, can be farmed, but are subject to drowning-out because of poor subsurface drainage. The alluvial sandy soils in Cimarron River Valley formerly were covered by excellent hay meadows, but the widening channel of the Cimarron has destroyed most of them.

Early Ranching and Agriculture in Seward County

Seward County is primarily an agriculture and livestock county. Cattlemen were the first white settlers of this region, and while they were few in number, their cattle grazed over a vast area. Farmers tried raising Sorghum and cane when a sugar mill was being promoted. After the mill filed, they tried a watermelon seed project. Two carloads of seeds were shipped to area farmers, and while the project was a success in terms of the crop, the project failed because of a lack of a market.

Maize and kafir corn was raised with some success in the early 1900's. Other crops that were tried were castor beans and broom corn. The beans grew well and brought good prices, but proved to be poisonous to cattle. Broom-corn proved to be very successful, with many hundreds of acres being raised. Liberal was known as the "broom corn capital of the world." More broom corn was grown, marketed and handled here than in any other place known.

Hard winter wheat came to Seward County from the eastern counties, and by 1910 had replaced broom corn as the major crop. Hard winter wheat could withstand the hot dry weather and proved to be the best variety to mill into flour.

Seward County and Liberal, Kansas

Page 5

With improvements from horse drawn to mechanization of machinery, farms became larger. The Angell one-way plow revolutionized wheat growing in dry-land, Seward County. The discovery of deep well irrigation, and the use of natural gas as a fuel, made it possible to grow many kinds of crops. These include corn, milo, alfalfa, sugar beets, and wheat. Farmers are now able to produce all feeds necessary for the production of hogs and cattle.

Liberal, Kansas

Agriculture was the first industry in Liberal, Kansas. Deep well irrigation, moderate weather, good soil and uninterrupted plains create an ideal environment for raising livestock and producing crops. Today, more than 4,000 residents of Seward County are employed in agriculture. More than 3,500 of those jobs are in beef packing.

The beef industry, including the feeding, processing and transporting of cattle, is the largest in the region. National Beef Packing Company processes 4,800 head of cattle a day. Pork and dairy production are also thriving area industries, due in part to plentiful crops for feed. Corn and wheat are the major regional crops. Other staple crops include sorghum, hay, cotton and sunflowers.

Liberal has the land, labor and support services needed to expand the agricultural community. Raw products are abundant; the workforce is appropriately skilled; and local infrastructure includes easy highway, railroad and air access along with two municipal industrial parks. Seward County Community College is expanding its agricultural programs to include Sustainable Agriculture Resources and Food Science and Safety

Scientific research, food processing and by-product manufacturing are just some of the possibilities for growth. The City of Liberal, Kansas welcomes agricultural industry and encourages inquiries into the city's industrial parks and possible incentives.

. New construction for these programs will include greenhouses and a food science lab.

Location and Accessibility. Liberal, the county seat of Seward County, is located in southwestern Kansas at the intersection of U.S. Highway 83 and U.S. Highway 54, just a few miles north of the Oklahoma state border. Highway 54 is a north-south highway that runs southwest 1,197 miles from western Illinois to El Paso, Texas, while Highway 83 is one of the longest north-south highways in the United States. Liberal lies approximately 10 miles southwest of the Cimarron River in the High Plains region of the Great Plains and is 140 miles

Seward County and Liberal, Kansas

Page 6

northeast of Amarillo, Texas, 202 miles southwest of Wichita, Kansas and 288 miles southeast of Denver, Colorado.

Things to Do. Liberal is home to both Dorothy’s House and the Mid-America Air Museum, the nation’s 5th largest air museum, drawing visitors from all parts of the United States. Local entertainment includes movies, bowling, the area’s largest water park, golf courses and parks that feature outdoor workout equipment, fishing and nature trails, and two skating facilities. The City of Liberal was named a 2013 Playful City USA community by non-profit KaBOOM. The Liberal Bee Jays are a five-time, national-champion semi-pro baseball team, and SCCC

Business Environment. The City of Liberal is pro-growth and pro-business. There is an environment where public-private partnerships expedite both the timing and profitability of investments in the community. The city is actively seeking additional retail development to fill identified product and service gaps and offer retail incentives.

/ATS teams are nationally ranked in their division. The Seward County Activity Center accommodates meetings, conventions, trade shows and exhibitions for 10 to 2,000 people.

History — Over One Hundred Years of Being "Liberal"

The year was 1872 and western Kansas consisted of mile-after-mile of waving prairie grasslands and one large flowering river. Settlers traveling west on the Santa Fe, Jones and Plummer, and western cattle trails simply passed through thinking this area "uninhabitable." But one undaunted man, making his way west, did stop and settle. Mr. S.S. Rogers was the first homesteader in what would later become Liberal.

Outside of the Cimarron River, water was very scarce in Southwestern Kansas, and there was usually a charge for even a small amount; however, Mr. Rogers always gave his water free to passing travelers. Often, he would hear a reply of ... "that's mighty liberal of you" from the grateful recipients. By 1885 Mr. Rogers had opened a general store and the government established an official Post Office. It seemed only natural to call the new town "Liberal."

As the Railroad extended its line through Seward County, people became interested in the area, and Liberal's growth began. In April of 1888 the plat for the present town site was

Seward County and Liberal, Kansas

Page 7

created. In eight days, 83 plank constructed houses were built. Within a year the population grew to 800. Drought and the opening of the Oklahoma Strip did much to decrease the population in a town whose economy was entirely dependent on crops and cattle. Although the population was low, the spirits of the remaining settlers were not. Always optimistic that something wonderful would come in the future, these hardy souls remained and made it through some of the worst years the state would see.

Because of county seat difficulties between Springfield and Fargo Springs, the Rock Island Railroad deflected its route southward and really created the town of Liberal. Originally the survey called for the railroad to leave Plains in Meade County and go through the center of Springfield, in central Seward County, and then cross at the more accessible crossing of the Cimarron River. But the townspeople of Springfield offended the construction crew, and the road was changed to cross the Cimarron River at Arkalon. Upon reaching the end-of-the-line, Mr. M.A. Low ordered the surveying of a new town site a mile east of the Rogers place ... having previously purchased part of four sections of land there for that purpose in the center of the present day Liberal, Kansas.

The plot of the town site of Liberal was opened April 13, 1888. During the following twenty-four hours, the sale of lots totaled $180,000.00 of which some $60,000 was paid in cash. Within a week there were 83 wooden constructed houses in Liberal, and within a year the boom was on, and Liberal was incorporated as a third class city. In the following years citizens moved their homes and businesses from Fargo Springs, Arkalon and Springfield to Liberal, which became the new county seat.

In 1920, gas was discovered west of Liberal on what was to become the vast Hugoton Gas Field — the largest gas reserve in the world. In early 1951, oil was discovered southwest of Liberal. During exploration, two layers of gas production below the Hugoton Gas field were discovered, extending life expectancy of gas in this area into the next century.

Those early settlers were right. Something wonderful was in the future, and still is. That optimistic, "can-do" attitude still exists, and it is this attitude that will carry Liberal into the twenty-first century preparing for and embracing new opportunities along the way.

Seward County and Liberal, Kansas

Page 8

Liberal goes from 3,000 population down to 400!

In 1890, the first city-owned wells were dug along Kansas Avenue, and a small storage tank was all the town had. Pipes supplied the business section, but homes kept large barrels in front of the house, which were filled twice a week for a fee of 50 cents per barrel. As a result of becoming the broom corn capital of the world and other successful farm ventures, some 500 buildings were erect in the years 1907 and 1908 alone. Consequently, in 1909 a successful $45,000 waterworks bond was voted in, and in 1911 a huge tank was erected along with a pipe system for the rest of the city. In 1917, three more wells and another huge standby pipe were added to the water system.

In 1899, Liberal installed its first city lights. They consisted of coal-oil lamps placed on street corners on eight-foot poles and were the pride of the city. Local people bragged about being able to read their mail under the street lights. In 1908 a few electric street lights were added into the business district, but homes continued to use coal-oil or kerosene lamps at that time.

The railroad is actually credited with keeping Liberal alive in the early years before 1900. Liberal started out as a boom town, but like many places it lasted only a short time as hard cash was practically nonexistent, and many people became discouraged and left ... with many returning home or moving on to try their luck in the Oklahoma Panhandle. Those who stayed, however, achieved comfortable homes and many of them became moderately wealthy. The 400 hardy souls in Liberal in 1900 were the only ones standing between this city and the fate of half a dozen or so ghost towns that surrounded Liberal. Those 400 residents are the core of the prominent city of today. Except for their faith in the future of Liberal and the railroad, the town could have experienced the same fate as those surrounding ghost towns.

United States Department of Agriculture National Agricultural Statistics Service

News Release PO Box 3534, Topeka, KS 55501-3534

Media Contact: Dean C. Groskurth (402) 437-5541

Kansas Rank in U.S. Agriculture U.S. Rank Commodity and Date Number Unit Percent of

U.S. Total 1 Sorghum for Grain, production, 2014 ................................... 199,800,000 bushels 46.2 2 Sorghum for Silage, production, 2014 .................................. 770,000 tons 18.7 2 Cropland, total, acres, Census of Agriculture, 2012 .............. 28,503,265 acres 7.3

2 Wheat, All, production, 2014 .................................................. 246,400,000 bushels 12.2 3 Cattle and Calves, All, inventory, January 1, 2015 ............... 6,000,000 head 6.7 3 Cattle on Feed, inventory, January 1, 2015 ........................... 2,180,000 head 16.7 3 Land in Farms, 2014 ............................................................. 46,000,000 acres 5.0 3 Off Farm Grain Storage Capacity, December 1, 2014 ........ 1,025,000,000 bushels 9.6 3 Red Meat Production, Commercial, 2014 ........................... 5,074,600,000 pounds 10.7 4 Potatoes, Summer, production, 2014 .................................... 1,394,000 cwt 8.8 4 Principal Crops Harvested, 2014 ......................................... 21,904,000 acres 7.1 4 Sunflower, All, production, 2014 ........................................... 91,540,000 pounds 4.1 4 Sunflower, Non-oil Type, production, 2014 .......................... 34,000,000 pounds 6.2 4 Sunflower, Oil Type, production, 2014 .................................. 57,540,000 pounds 3.5 6 Canola, production, Census of Agriculture, 2012 ................... 30,719,262 pounds 1.3 6 Cropland, Irrigated, Census of Agriculture, 2012 ................. 2,881,292 acres 5.2 6 Hay, Other, production, 2014 ................................................. 2,720,000 tons 3.5 7 Beef Cows, All, inventory, January 1, 2015 .......................... 1,477,000 head 5.0 7 Cash Receipts from Farm Marketings, 2013 ...................... 15,796,686,000 dollars 3.9 8 Bison, inventory, Census of Agriculture, 2012 ....................... 6,638 head 4.1 9 Calf Crop, inventory, 2014 ..................................................... 1,320,000 head 3.9 9 Corn for Grain, production, 2014 ........................................... 566,200,000 bushels 4.0 9 Hay, All, production, 2014 ...................................................... 5,000,000 tons 3.6

10 Beans, Dry Edible, Pinto, production, 2014 ......................... 92,000 cwt 0.9 10 Hogs and Pigs, All, inventory, December 1, 2014 ................ 1,800,000 head 2.7 10 On Farm Grain Storage Capacity, December 1, 2014 ......... 380,000,000 bushels 2.9 11 Hay, Alfalfa, production, 2014 ................................................ 2,280,000 tons 3.7 11 Pig Crop, December 1, 2014 ................................................. 3,199,000 head 2.8 11 Soybeans, production, 2014 .................................................. 142,560,000 bushels 3.6 12 Number of Farms, 2014 ........................................................ 61,000 number 2.9 12 Sheep and Lambs, Market, inventory, January 1, 2015 ....... 22,000 head 1.6 13 Goats, Meat, inventory, January 1, 2015 ............................... 40,000 head 1.9 16 Milk Cows, All, inventory, January 1, 2015 ........................... 143,000 head 1.5

Seward County Kansas

2012 2007 % change

Number of Farms 363 342 + 6

Land in Farms 401,816 acres 395,981 acres + 1

Average Size of Farm 1,107 acres 1,158 acres - 4

Market Value of Products Sold $465,307,000 $361,654,000 + 29

Crop Sales $96,079,000 (21 percent) Livestock Sales $369,229,000 (79 percent) Average Per Farm $1,281,838 $1,057,467 + 21

Government Payments $4,481,000 $4,570,000 - 2

Average Per Farm Receiving Payments $15,945 $16,620 - 4

Farms by Size, 2012

0

10

20

30

40

50

60

70

80

90

100

110

Acres

1-9 10-49 50-179 180-499 500-999 1,000+

Land in Farms, 2012by Land Use

Cropland76.6%

Pastureland20.6%

Other uses2.8%

Seward County – KansasRanked items among the 105 state counties and 3,079 U.S. counties, 2012

Item Quantity State Rank Universe 1 U.S. Rank Universe 1

MARKET VALUE OF AGRICULTURAL PRODUCTS SOLD ($1,000)

Total value of agricultural products sold Value of crops including nursery and greenhouse Value of livestock, poultry, and their products

VALUE OF SALES BY COMMODITY GROUP ($1,000)

Grains, oilseeds, dry beans, and dry peas Tobacco Cotton and cottonseed Vegetables, melons, potatoes, and sweet potatoes Fruits, tree nuts, and berries Nursery, greenhouse, floriculture, and sod Cut Christmas trees and short rotation woody crops Other crops and hay Poultry and eggs Cattle and calves Milk from cows Hogs and pigs Sheep, goats, wool, mohair, and milk Horses, ponies, mules, burros, and donkeys Aquaculture Other animals and other animal products

TOP CROP ITEMS (acres)

Wheat for grain, all Winter wheat for grain Corn for grain Sorghum for grain Forage-land used for all hay and haylage, grass silage, and greenchop

TOP LIVESTOCK INVENTORY ITEMS (number)

Cattle and calves Chukars Layers Horses and ponies Sheep and lambs

465,307 96,079

369,229

91,193 -

(D)--

(D)-

(D)24(D)(D)(D)44

132 -

(D)

71,742 71,742 50,062 30,197 8,689

123,422 (D)366 307 (D)

7257

24-

(D)--

(D)-

(D)3878

947037

-(D)

6161332991

94

6570(D)

105 105 105

105 -

2373597225

105 100 105

75101 102 104

1484

105 105 105 102 105

105 16

103 105 101

122 677 68

523 -

(D)--

(D)-

(D)1,971

32(D)(D)

2,013 1,604

-(D)

208 136 616 45

1,766

79(D)

2,533 2,518

(D)

3,077 3,072 3,076

2,926 436 635

2,802 2,724 2,678 1,530 3,049 3,013 3,056 2,038 2,827 2,988 3,011 1,366 2,924

2,537 2,480 2,638 1,220 3,057

3,063 338

3,040 3,072 2,897

Other County Highlights, 2012

Economic Characteristics QuantityFarms by value of sales: Less than $1,000 $1,000 to $2,499 $2,500 to $4,999 $5,000 to $9,999 $10,000 to $19,999 $20,000 to $24,999 $25,000 to $39,999 $40,000 to $49,999 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 or more

Total farm production expenses ($1,000) Average per farm ($)

Net cash farm income of operation ($1,000) Average per farm ($)

164 37

211716146

19252744

435,166 1,198,805

44,295 122,024

Operator Characteristics QuantityPrincipal operators by primary occupation: Farming Other

Principal operators by sex: Male Female

Average age of principal operator (years)

All operators by race 2: American Indian or Alaska Native Asian Black or African American Native Hawaiian or Other Pacific Islander White More than one race

All operators of Spanish, Hispanic, or Latino Origin 2

162 201

278 85

62.6

36--

544 -

9

See “Census of Agriculture, Volume 1, Geographic Area Series” for complete footnotes, explanations, definitions, and methodology. - Represents zero. (D) Withheld to avoid disclosing data for individual operations. 1 Universe is number of counties in state or U.S. with item. 2 Data were collected for a maximum of three operators per farm.