HEFFINGTON & ASSOCIATES

911 BEVILLE ROAD, STE. 8 / DAYTONA BEACH, FL 32119 / (386) 760-7601 / FAX (386) 760-5161

APPRAISAL REPORT

A 75.42 ACRE VACANT PARCEL

LOCATED AT THE SOUTHWEST CORNER OF SR 44 AND CR 4139

DELAND, FL 32721

PREPARED FOR

MS. MARIAN J. RIDGEWAY VOLUSIA COUNTY SCHOOLS

3750 OLSON DRIVE DAYTONA BEACH, FL 32124

AS OF

SEPTEMBER 26, 2018

HEFFINGTON & ASSOCIATES

911 BEVILLE ROAD, STE. 8 / DAYTONA BEACH, FL 32119 / (386) 760-7601 / FAX (386) 760-5161

RAYMOND H. HEFFINGTON R. TODD HEFFINGTON, MAI CERT GEN RZ100 CERT GEN RZ2368

September 27, 2018 Ms. Marian J. Ridgeway VOLUSIA COUNTY SCHOOLS 3750 Olson Drive Daytona Beach, FL 32124 Dear Ms. Ridgeway:

In accordance with your request, I hereby submit an Appraisal Report of:

A 75.42 ACRE VACANT PARCEL LOCATED AT

THE SOUTHWEST CORNER OF SR 44 AND CR 4139 DELAND, FL 32721

The purpose of the appraisal is to estimate the “As Is” Market Value of the above referenced property, to a single purchaser on a cash equivalent basis, assuming a reasonable marketing period. The appraisal assignment is to estimate the value of the subject property as a whole, and the value of an undefined four acre outparcel from the northeast corner of the site. The property is appraised as a fee simple estate, subject to typical mortgage loan encumbrances and utility easements. The intended use of the report is for potential sale negotiations. The intended user of the report is the Volusia County Schools, c/o Ms. Marian J. Ridgeway.

It should be noted that "this appraisal assignment was not made, nor was the appraisal rendered, on the basis of a requested minimum valuation, specific valuation, or an amount which would result in approval of a loan".

The valuation analysis contained herein is intended to adhere to the Uniform Standards

of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation in effect as of the date of this report. Furthermore, the appraiser has complied with the competency provision under the Uniform Standards of Professional Appraisal Practice.

After careful investigation, it is my opinion that the estimated Market Value for the

overall subject parcel, "As Is", as of September 26, 2018, was:

OVERALL PARCEL

FOUR MILLION FIVE HUNDRED TWENTY-FIVE THOUSAND DOLLARS

($4,525,000)

Ms. Marian J. Ridgeway September 27, 2018 Page Two

After careful investigation, it is my opinion that the estimated Market Value for the four

acre outparcel, "As Is", as of September 26, 2018, was:

4.0 ACRE OURPARCEL

EIGHT HUNDRED EIGHTY THOUSAND DOLLARS

($880,000) The values contained within this letter are not valid unless attached to the accompanying Report. The value estimates are predicated on the assumption that there are no materials on, or in, the properties 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 Appraisal Institute conducts a program of continuing education for its designated members. Those members who meet the minimum standards of this program are awarded periodic educational certification. I am currently certified under the program.

Should you have any questions concerning this report, please do not hesitate to contact

this office.

Respectfully submitted,

HEFFINGTON & ASSOCIATES

*R. Todd Heffington, MAI Cert.Gen. RZ2368 RTH/djs Enclosures

TABLE OF CONTENTS

CERTIFICATION ............................................................................................................. 1 ASSUMPTIONS AND LIMITING CONDITIONS .............................................................. 2 PHOTOGRAPHS OF THE SUBJECT PROPERTY ........................................................ 5 SUMMARY OF SALIENT FACTS AND CONCLUSIONS ................................................ 7 IDENTIFICATION OF THE SUBJECT PROPERTY ........................................................ 8 PURPOSE ....................................................................................................................... 8 INTENDED USE AND USER .......................................................................................... 8 MARKET VALUE DEFINITION ........................................................................................ 8 PROPERTY INTEREST APPRAISED ............................................................................. 8 SCOPE OF WORK .......................................................................................................... 9 MARKET AREA MAP .................................................................................................... 11 MARKET AREA ANALYSIS .......................................................................................... 12 SURVEY ....................................................................................................................... 16 DESCRIPTION OF THE PROPERTY ........................................................................... 17 HIGHEST AND BEST USE ANALYSIS ......................................................................... 21 ESTIMATED EXPOSURE TIME ................................................................................... 24 THE APPRAISAL PROCESS ........................................................................................ 25 SALES COMPARISON APPROACH ............................................................................ 26 RECONCILIATION OF APPROACHES ........................................................................ 37 ADDENDUM PURCHASE ORDER LEGAL DESCRIPTION FLOOD ZONE MAP ELEVATION MAP ZONING MAP FUTURE LAND USE MAP QUALIFICATIONS OF THE APPRAISER

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CERTIFICATION The undersigned do hereby certify that, except as otherwise noted in this appraisal report: To the best of my knowledge and belief: 1. The statements of fact contained in this appraisal report, upon which the analyses, opinions, and

conclusions expressed herein are based, are true and correct. 2. The reported analysis, opinions and conclusions are limited only by the assumptions and limiting

conditions and are my personal, impartial, and unbiased professional analysis, opinions, and conclusions.

3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

4. I have no personal interest or bias with respect to the subject matter of this appraisal report nor the parties involved. My employment is not contingent on the amount reported.

5. My engagement in this assignment was not contingent upon developing or reporting predetermined results.

6. 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.

7. The reported analyses, opinions and conclusion were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Uniform Standards of Professional Appraisal Practice.

8. I have made a thorough inspection and careful investigation of the property herein described. 9. Unless stated herein, no one provided significant real property appraisal assistance to the person

signing this certification. 10. This appraisal report sets forth all of the limiting conditions (imposed by the terms of my

assignment or by the undersigned) affecting the analyses, opinions, and conclusions contained in this report.

11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

12. That, as of the date of this report, the undersigned has completed the requirements of the continuing education of the Appraisal Institute and is currently certified as a General Real Estate Appraiser by the State of Florida.

13. I certify that, to the best of my knowledge and belief, the reported analyses, opinions, or conclusions were developed and this report has been prepared in conformity with the requirements of the State of Florida for state-certified appraisals (Florida Statutes, Chapter 475, Part II). The use of this report is subject to the requirements of the State of Florida related to review by the Florida Appraisal Board.

14. The Appraisal Institute conducts a program of continuing education for its designated members. Designated members who meet the minimum standards of this program are awarded periodic educational certification. I, R. Todd Heffington, MAI, am currently certified under this program.

15. Heffington & Associates has not performed services as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period preceding acceptance of this assignment.

R. Todd Heffington, MAI Cert Gen RZ2368 X Did □ Did Not Inspect Property

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HYPOTHETICAL CONDITIONS None

EXTRAORDINARY ASSUMPTIONS/HYPOTHETICAL CONDITIONS The appraisal assignment as defined by the client is to estimate the market value of the overall subject parcel, and to estimate the value of an undefined 4 acre outparcel situated at the corner of SR 44 and County Road 4139. It is reasonable to believe that the 4 acre parcel could be created. This appraisal is based on the extraordinary assumption that the four acre parcel has been created and is a legal lot of record.

ASSUMPTIONS AND LIMITING CONDITIONS

1. This appraisal is intended to comply with the Scope of Work requirements enacted July 1,

2006 by the Uniform Standards of Professional Appraisal Practice. 2. No responsibility is assumed for legal or title considerations. Title to the property is

assumed to be good and marketable unless otherwise stated in this report. 3. The property is appraised free and clear of any or all liens and encumbrances unless

otherwise stated in this report. 4. Responsible ownership and competent property management are assumed unless

otherwise stated in this report. 5. The information furnished by others is believed to be reliable. However, no warranty is

given for its accuracy. 6. All engineering is assumed to be correct. Any plot plans and illustrative material in this

report are included only to assist the reader in visualizing the property. The appraisers are not experts in engineering or construction and are not licensed constructions contractors.

7. It is assumed that there are no hidden or unapparent conditions on the property, subsoil,

or structures that render it more or less valuable but are not apparent. This appraiser can assume no responsibility for such conditions or for arranging for engineering studies that may be required to discover them.

8. It is assumed that there is full compliance with all federal, state and local environmental

regulations and laws unless otherwise stated in this report. 9. It is assumed that all applicable zoning and use regulations and restrictions have been

complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.

10. It is assumed that all required licenses, certificates of occupancy, or other legislative or

administrative authority from any local, state, or national governmental, or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.

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11. Any sketch in this report may show approximate dimensions and is included to assist the

reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report.

12. It is assumed that the utilization of the land and improvements is within the boundaries or

property liens of the property described and that there is no encroachment or trespass unless otherwise stated in this report.

13. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any

comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The appraiser's value estimate is predicated on the assumptions that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser's descriptions and resulting comments are the result of the routine observations made during the appraisal process.

14. Unless otherwise stated in this report, the subject property is appraised without a specific

compliance survey having been conducted to determine if the property is or is not in conformance with requirements of the Americans with Disabilities Act ("ADA") which became effective January 26, 1992. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property's value, marketability, or utility.

15. Any proposed improvements are assumed to be completed in a good workmanlike

manner in accordance with the submitted plans and specifications. 16. The distribution, if any, of the total valuation in this report between land and

improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

17. Possession of this report, or a copy thereof, does not carry with it the right of publication.

It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety.

18. Neither all nor any part of the contents of this report (especially any conclusions as to

value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.

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19. The appraiser, by reason of this report, is not required to give testimony or attend court or any governmental hearing with reference to the property in question, unless arrangements have been previously made therefore.

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SUBJECT PHOTOGRAPHS Photos taken by R. Todd Heffington, MAI

AERIAL VIEW OF SUBJECT PROPERTY

COPIED FROM VOLUSIA COUNTY PROPERTY APPRAISERS WEB SITE

OVERALL VIEW OF SUBJECT PROPERTY FROM SR 44

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SUBJECT PHOTOGRAPHS Photos taken by R. Todd Heffington, MAI

VIEW OF SUBJECT FRONTING CR4139

VIEW OF SUBJECT PROPERTY FRONTING SR 44

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SUMMARY OF SALIENT FACTS AND CONCLUSIONS

EFFECTIVE DATE OF THE APPRAISAL September 26, 2018 DATE OF REPORT September 27, 2018

PROPERTY OWNERS NAME(S)

& ADDRESS School Board of Volusia County P.O. Box 2118 DeLand, FL 32721-2118

STREET ADDRESS OR LOCATION Southwest corner of SR 44 and CR 4139,

DeLand, Volusia County, FL BRIEF LEGAL DESCRIPTION Length legal description. Please see addendum to

this report. PROPERTY INSPECTION

Dates of Inspection: September 14, 2018 Parties Present At Inspection: R. Todd Heffington, MAI Extent of Inspection: Personal inspection of overall site

SITE SIZE 75.42 Acres per supplied documents ZONING E-1, Education by the City of DeLand FUTURE LAND USE Educational - “Activity Center”- Lake

Winnemissett Gateway Corridor Plan Overlay ESTIMATED MARKET VALUE Overall Parcel $4,525,000 4.0 Acre Outparcel $880,000

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SUMMARY APPRAISAL REPORT ____________________________________________________________

IDENTIFICATION OF THE SUBJECT PROPERTY The subject a vacant parcel situated at the southwest corner of SR 44 and CR 4139, in DeLand, Volusia County, Florida.

PURPOSE The Purpose of the appraisal is to develop and report an opinion of Market Value of the subject property “as is”, as a vacant parcel of land.

INTENDED USE AND USER

The intended use of the report is for potential sale negotiations. The intended user of the report is the Volusia County Schools, c/o Ms. Marian J. Ridgeway.

MARKET VALUE DEFINITION

A current definition of Market Value is: "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 each 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 the normal consideration for the property sold

unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."1

PROPERTY INTEREST APPRAISED

The subject is appraised as a Fee Simple Estate subject to typical mortgage loan encumbrances and utility easements. As defined in the Dictionary of Real Estate Appraisal published by the American Institute of Real Estate Appraisers, a fee simple estate is the "Absolute ownership unencumbered by any other interest or estate; subject only to the limitations of eminent domain, escheat, police power, and taxation."

1FDIC Interagency Appraisal and Evaluation Guidelines, December 2, 2010

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SCOPE OF WORK, APPRAISAL DEVELOPMENT & REPORTING PROCESS “Scope of Work” is defined in the Uniform Standards of Professional Appraisal Practice (USPAP), as promulgated by the Appraisal Foundation, as follows:

“The amount and type of information researched and the analysis applied in an assignment. Scope of work includes, but is not limited to, the following:

- the degree to which the property is inspected or identified;

- the extent of research into physical or economic factors that could affect the property; - the extent of data research; and - the type and extent of analysis applied to arrive at opinions or conclusions.” Appraisal Assignment: The appraisal assignment as defined by the client is to estimate the market value of the overall subject parcel, and to estimate the value of an undefined 4 acre outparcel situated at the corner of SR 44 and County Road 4139. Inspection: Please note that an on-site inspection was conducted on September 14, 2018 to ascertain the physical and economic characteristics of the real estate appraised and to determine the appraisal problem at hand. The property was also identified with the use of Public Records including prior deeds and tax roll information. The legal description as depicted by the public records was relied upon for this report. Data Researched: The appraiser(s) maintains a current and comprehensive database of sales and listings for the market area. In addition, market data acquired in the course of previous appraisal work is retained in the appraiser(s) work files. Other sources include but are not limited to the following: 1. Multiple Listing Services 2. Public Records 3. Interviews with brokers, buyers and sellers 4. Appraisal Files 5. Marshall & Swift building cost services 6. Published articles and surveys 7. Loopnet 8. Costar Type & Extent of Analysis Applied: Typically, three general valuation methodologies are employed, which reflect the various aspects of the economics of real estate such as supply and demand, scarcity, substitution, etc. These approaches are the Cost Approach, the Direct Sales Comparison Approach, and the Income Capitalization Approach. Careful consideration was given to the applicability of each

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of the approaches processed in this report. In this case, the subject is valued as vacant land. Therefore, the appraisal problem involves estimating the market value of a vacant parcel. Because it is appraised as vacant land, the best method of valuing the subject is via a Direct Sales Comparison Approach. For the Direct Sales Comparison Approach, sales of sites deemed similar were analyzed and compared to the subject to arrive at a value conclusion. Comparable data used in this report has been personally confirmed by the appraiser, or by other appraisers believed to be reliable. The Cost Approach and Income Approaches to value are not typically considered applicable to vacant land valuations. Reporting Option: This appraisal is presented in an “Appraisal Report” format in accordance with standards rule 2-2(a) of the uniform standards of professional appraisal practice. This reporting format is consistent with the intended use of the appraisal. It is the intent of this appraisal report to comply with contemporary report writing standards as well as the standards and report writing requirements of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice.

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MARKET AREA/NEIGHBORHOOD MAP

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BRIEF AREA/MARKET AREA ANALYSIS BRIEF OVERVIEW OF VOLUSIA COUNTY The subject property is located in East Volusia County. Volusia County is situated on the east central coast of Florida, consists of 16 incorporated cities and comprises an area of approximately 1,207 square miles. The area is located approximately 50 miles northeast of Orlando, 140 miles northeast of Tampa/St. Petersburg, 260 miles north of Miami, and 90 miles south of Jacksonville. The county is convenient to all portions of the state via the excellent interstate highway system including Interstate 95 and Interstate 4. Volusia County is part of the Deltona-Daytona Beach-Ormond Beach metropolitan statistical area which now includes neighboring Flagler County. This newly combined MSA has a combined population of approximately 609,939, ranking it the 90th largest metropolitan area in the United States. Volusia County’s population has recently surpassed the 500,000 mark, according to figures released by the U.S. Census Bureau. The Census Bureau’s annual population estimates show Volusia County had 517,887 residents as of July 1, 2015, an increase of approximately 2 percent from 2014. Flagler County’s population has recently surpassed the 100,000 mark. The Census Bureau’s annual population estimates show Flagler County had 105,329 residents as of July 1, 2015, an increase of 2.76 percent compared with 2014's estimated population of 102,561. At the same time, a redefinition of metropolitan areas by the Office of Management and Budget resulted in the absorption of the Palm Coast metropolitan statistical area into Volusia County. The fastest-growing city in the two-county metro area over the past year was DeLand, which grew by a remarkable 2.9 percent. It was the 32nd fastest growing city out of 409 incorporated Florida towns and cities. Palm Coast’s 2.47 percent growth ranked 52nd in the state, and Port Orange’s 2.45 percent growth was in next place at 53rd. Despite Daytona Beach’s modest one percent growth rate over the past year, it was the best year-to-year population gain the city has enjoyed since the 1990s. Deltona remains the largest city in the metro area with a population of 86,890 people. The Volusia/Flagler area is best known for its tourism industry, which attracts millions of visitors each year. Motorsports dominate the area, with several race track venues as magnets. The best known is Daytona International Speedway, where the headquarters of NASCAR is located. Other racing venues include New Smyrna Speedway and Volusia Speedway Park. Other motorsports events include Daytona Beach Bike Week, a massive biker rally that occurs each March with a smaller rally in October, along with several classic car shows throughout the year. The main natural attraction for tourists are the beaches of Volusia and Flagler Counties, with Daytona Beach, Flagler Beach, New Smyrna Beach, and Ormond Beach being the largest draws. Summer is usually the High Season for beach tourism in this area. Limited-access highways in the Volusia/Flagler area include Interstate 95, the main highway through the area, which connects with Jacksonville to the north and Miami to the south; and Interstate 4, which has its eastern terminus at I-95 in Daytona Beach, and which travels west

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to connect with Orlando and eventually to Tampa on the west coast of Florida. Major surface highways include US 1, US 17 and US 92. Public bus transportation in Volusia County is provided by VOTRAN, which connects all the major cities. Commuter rail service is provided by SunRail, and the northern terminus is located in DeBary, in Volusia County. BREIF WEST VOLUSIA COUNTY DISCUSSION Brief Regional Overview The subject property is located in the City of DeLand in Volusia County, Florida. More particularly, DeLand is located in the west portion of Volusia County. DeLand is also part of the Deltona-Daytona Beach-Ormond Beach Metropolitan Statistical Area (MSA). The Deltona-Daytona Beach-Ormond Beach MSA is comprised of the entire County of Volusia and contains approximately 1,207 square miles lying in the eastern coastal area of Central Florida. The area is located approximately 50 miles northeast of Orlando, 140 miles northeast of Tampa/St. Petersburg, 260 miles north of Miami, and 90 miles south of Jacksonville. The county is convenient to all portions of the state via an excellent interstate highway system including Interstate 95 and Interstate 4. Volusia County is bordered by Flagler County to the north, by Brevard and Seminole Counties to the south, by the Atlantic Ocean to the east, and by the St. Johns River to the west. DeLand is located within a relative proximity of the confluence of two major interstate highways (Interstate 95 and Interstate 4) that provide quick, easy access to the third largest consumer region in the United States with a population of over 17 million. International airports in Daytona Beach and Orlando, railroad, and also port facilities in Jacksonville and Canaveral enhance the metropolitan area’s efforts to provide a cost-effective and logistically important location to do business while providing an exceptional quality of life. Brief City Description The subject property can be described as being located on the east side of the City of DeLand. The City of DeLand contains a total area of approximately 18.43 square miles. DeLand had an estimated population of 27,059 as recorded in the 2010 US Census report. The estimated population for 2018 was 32,619. DeLand represents the county seat of Volusia County since 1854. The County Courthouse, the Volusia County Administrative Center, the DeLand Public Safety Complex, and the Volusia County Justice Center are located within the downtown area. There is a high concentration of government offices within the central business district. The City of DeLand is occupied by historic neighborhoods, commercial and industrial districts, a center for government and Stetson University. Business, government and civic organizations cooperated to restore the Central DeLand Business Section through the creation of a redevelopment district, participation in the national Main Street program and designation of a downtown shopping district. Stetson University’s campus and the northwest residential area are registered as Historic Districts. Woodland Boulevard is designated as U.S. Highway 17-92 and represents the major north/south traffic artery extending through DeLand.

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New York Avenue is designated as State Road 44 and represents the primary east/west traffic artery extending through the city connecting with Interstate Route I-4 approximately 5 miles east of downtown DeLand. Spring Garden Avenue is designated as State Road 15-A and represents a north/south bypass traffic artery through the City of DeLand. Neighborhood commercial uses extend along Woodland Boulevard (US Hwy. 17/92) through DeLand with intensified regional shopping facilities located at the northern southern portion of DeLand proximate to U.S. 92. NEIGHBORHOOD The subject’s neighborhood is considered to be the area surrounding the Interstate 4 and State Road 44 Interchange in DeLand. This location is on the outlying eastern fringes of the City of DeLand and for the purposes of this appraisal is loosely defined as the area lying between CR4139 to the west and Prevatt Avenue to the east. Interstate 4 is the main east-west highway in Central Florida, connecting Daytona Beach on the east, to Orlando on the west, and continuing west to Tampa on Florida’s west coast. State Road 44 is the major connector from Interstate 4 to New Smyrna Beach. State Road 44 extends through DeLand to the west coast of Florida. The subject’s defined neighborhood has been slow to develop and has a large inventory of vacant sites. Due to environmental constraints, not all of the vacant sites are available for development. Land uses in the neighborhood have been relatively static, and no major transitions are currently underway. To the east of the State Road 44 interchange are several Volusia County-owned properties, including the Volusia County Fairgrounds, the Volusia County Farm Bureau, the Volusia County Solid Waste Transfer Station, and the 6 lot DeLand Crossings Industrial Park. The remaining land on either side of State Road 44 heading eastward toward New Smyrna Beach is mostly vacant forest and timberland. The eastern portion of the neighborhood is dominated by the University Highlands subdivision. This subdivision encompasses several square miles of area and was created in the 1960s. The subdivision layout consisted of a grid network of access easements intended for future roadways and offered thousands of 1.25 acre lots. Currently, most of the subdivision’s internal roadway easements remain undeveloped and corridors that have been improved contain narrow, unpaved streets that are not publicly maintained. There has been virtually no development on lots located within the core portions of University Highlands, that is, off major corridors such as State Road 44 and U.S. Highway 92. Just west of the interchange along State Road 44 is a gas/convenience store (circa 1967) and a 117-room motel with restaurant/bar (circa 1973). There is also a large mixed used development planned for this area, but it has never broken ground. A satellite campus of Daytona State College is located just off the south side of State Road 44 along County Road 4139/Summit Avenue, west of the interchange. An older established residential area is situated around Lake Winnemissett west of the interchange and County Road 4139 within the DeLand city limits. The remainder of the surrounding area is vacant land. In summary, while the subject’s area is centrally located with immediate access to Interstate 4 which offers excellent access to most points in Florida, the surrounding neighborhood is mostly rural and undeveloped. The defined area is outside of the primary DeLand development, and

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the area to the east of the interstate has limited development potential due to physical and environmental constraints. These factors have had an impact on the areas slow development. However, it is reasonable to believe that, considering the interchange access and proximity to the Daytona Beach and Orlando Areas that development will eventually come to the area.

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SURVEY

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DESCRIPTION OF THE PROPERTY

OVERALL PARCEL STREET ADDRESS OR LOCATION The subject of this appraisal is located at the southwest corner of SR 44 and CR4139, in DeLand, Volusia County, FL. LEGAL DESCRIPTION Lengthy legal description. Please see documentation provided by the client and presented in the addendum to this report. PROPERTY TYPE Vacant Educational/Public Use Land EXISTING USE Vacant Land LAND

Area: 75.42 Acres per supplied information Shape: Irregular Dimensions: The parent tract is irregular with numerous dimensions. Please reference a copy of the supplied survey on the previous page. In general, the site has approximately 1,236.20 feet of frontage along the south side of SR 44, and 1,334.63 feet of frontage along the west side of CR 4139. Ingress/Egress: The subject has frontage along both SR 44 and CR 4139. SR 44 is a two lane, asphalt paved, public right-of-way fronting the subject and to the west. It is a four lane public right-of-way to the east of the subject. CR 4139 is a two lane, asphalt paved public right-of-way. Topography: Based on my inspection and on aerial photographs, the site is mostly wooded with native trees, shrubs and ground cover. Based on the available topographical maps, the site appears to have its highest point in the south/central portion of the site, sloping gently downward in all directions. The total elevation change of the site approximates 9 feet. Based on the available soils maps, there do not appear to be any significant hydric or wetland soils on the site. A small area at the southwest corner of the site may contain hydric soils, but the area appears to be less than one acre in size. Flood Plain Data: Based on the FEMA Flood Insurance Rate Maps, the majority of the site is located within a Flood Zone X within Community Flood Map No. 12127C0500H, Volusia County, revised February 19, 2014. Zone X is designated as areas outside of the 0.2% annual

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chance flood plain. Flood Insurance would not typically be required within this area. Drainage: At the time of inspection(s), drainage to the site appeared adequate. Utilities Available: Based on correspondence with the City of DeLand, the site has a 12” water main and an 8” force main either fronting or running through the property. . Site Improvements: No significant improvements Easements, Encroachments, Or Restrictions: Based on the available maps, there do not appear to be any adverse easements other than typical utility and right-of-way easements, if any.

4 ACRE APPROXIMATE OUTPARCEL STREET ADDRESS OR LOCATION The southwest corner of SR 44 and CR4139, in DeLand, Volusia County, FL. LEGAL DESCRIPTION A legal description for the potential four acre outparcel has not been determined. PROPERTY TYPE Vacant Educational/Public Use Land EXISTING USE Vacant Land LAND

Area: 4.02 Acre Estimated Outparcel per client Shape: Assumed Rectangular Dimensions: The dimensions have not yet been determined. In general, the site would have frontage along both SR 44, and CR 4139. Ingress/Egress: The subject has frontage along both SR 44 and CR 4139. SR 44 is a two lane, asphalt paved, public right-of-way fronting the subject and to the west. It is a four lane public right-of-way to the east of the subject. CR 4139 is a two lane, asphalt paved public right-of-way. Topography: Based on my inspection and on aerial photographs, the site is mostly wooded with native trees, shrubs and ground cover. Based on the available topographical maps, this portion of the overall parent tract appears to be generally level, at or near road grade. Based on the available soils maps, there do not appear to be any significant hydric or wetland soils on

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the site. Flood Plain Data: Based on the FEMA Flood Insurance Rate Maps, the majority of the site is located within a Flood Zone X within Community Flood Map No. 12127C0500H, Volusia County, revised February 19, 2014. Zone X is designated as areas outside of the 0.2% annual chance flood plain. Flood Insurance would not typically be required within this area. Drainage: At the time of inspection(s), drainage to the site appeared adequate. Utilities Available: Based on correspondence with the City of DeLand, the site has a 12” water main and an 8” force main either fronting or running through the property. Site Improvements: No significant improvements Easements, Encroachments, Or Restrictions: Based on the available maps, there do not appear to be any adverse easements other than typical utility and right-of-way easements, if any. LAND USE PLANNING, ZONING, CONCURRENCY

The subject site is currently zoned E-1, Educational, with an Education Future Land Use, by the City of DeLand. However, communication with the City of DeLand planning department indicated that the subject is also in an Activity Center Overlay – Lake Winnemissett Gateway Corridor Local Plan. This means that any use other than those within the Education zoning and Future Land Use will have to be rezoned to a PD within the Activity Center overlay. Activity Center Designation is “designed for high-intensity, design-unified areas in which development may contain a variety of land uses, including office, commercial, recreational, industrial, and housing. Residential land uses, including both single-family and multiple-family dwellings, may not exceed 16 dwelling units per acre…” The suggested land uses within the Lake Winnemissett Gateway Corridor, as defined by the City of DeLand, include Business Park; Office/Office Park; Commercial – Neighborhood and Interchange Retail; Commercial – Support/Ancillary Uses; Public/Semi Public; Residential; District-Mixed Use. In general, based on the suggested uses, permitted uses would include, but not be limited to, Research and development, flex space, business headquarters, general/professional office, wholesale/retail showrooms, truck stops, travel centers, neighborhood and convenience shopping, restaurants, financial centers, hotel/motel, single and multi-family, etc. IMPROVEMENTS No significant improvements are on site. ASSESSED VALUES, TAXES, & SPECIAL ASSESSMENTS The parent tract consists of two parcel numbers. The current assessed values and taxes are as follows:

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Parcel No. 7013-00-00-0090 Land Value - $416,000.00 Improvements Value - $ 0.00 Miscellaneous - $ 0.00 Total Just Assessment - $416,000.00 Total Taxable - $ 0.00 2017 Taxes $ 0.00 Parcel No. 7024-00-00-0022 Land Value - $800,000.00 Improvements Value - $ 0.00 Miscellaneous - $ 0.00 Total Just Assessment - $800,000.00 Total Taxable - $ 0.00 2017 Taxes $ 0.00 The subject is owned by the Volusia County School Board and is not taxed. The assessed value appears to be below that of its market value. PROPERTY HISTORY Based on the available public records, there have been no transfers of the subject property within the last three years. The subject is currently available for purchase for $10,000. It does not appear to be listed with a broker at this time.

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HIGHEST AND BEST USE ANALYSIS

The Highest and Best Use of the subject property will be analyzed both in terms of its existing use as improved and as if it were vacant and ready to be put to use. Highest and Best Use can be defined as: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability."1 A site is valued as though vacant in terms of its Highest and Best Use which may be defined as: "The use of a property based on the assumption that a parcel of land is vacant or can be made vacant through demolition of any improvements."2 The following narration highlights the process utilized in formulating a conclusion of appropriate Highest and Best Use. 1. Legally Permissible: Legal permissibility considers the effect of private restrictions,

zoning ordinances, building codes, historic district controls, land use regulations or any additional governing authority.

2. Physically Possible: The test for physical possibility considers those uses from among

legally permissible uses which could satisfactorily be accommodated on the subject property.

3. Financially Feasible: Is there economic or financial logic in pursuing any of the legally

permissible and physically possible uses which remain? 4. Maximally Productive: Of the legally permissible, physically possible and financially

feasible uses, which produces the highest land value or economic return to the land. The foregoing process applies specifically to the Highest and Best Use of land. "It is to be recognized that in cases where a site has existing improvements on it, the Highest and Best Use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its Highest and Best Use exceeds the total value of the property in its existing use."3

1 The Dictionary of Real Estate Appraisal, Second Addition, Appraisal Institute, (Chicago, IL, 1993), Page 149.

2Ibid., Page 149.

3 Real Estate Appraisal Terminology, Revised Edition, Byrl N. Boyce, Ballinger Publishing Company, (Cambridge, MA, 1981), Page 127.

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As If Vacant Legally Permissible The category of legally permissible uses is the initial consideration in the analysis of Highest and Best use for the subject property as if vacant. This category of legally permissible uses should include an analysis of public development regulations including current and possible future changes in zoning regulations and procedures, as well as private constraints including deed restrictions, liens, easements, leases, or known encumbrances on the title of the property. As previously summarized, the subject's current zoning is "E-1, Educational" by the City of DeLand. However, it is located within an Activity Center within the Lake Winnemissett Gateway Corridor Local Plan. The local plan would require the site to be rezoned to a PD, Planned Development, and would permit a wide variety of uses including residential, industrial and commercial. Other legal limitations that may affect the subject property including density, lot sizes, etc. would have to be determined and included in the Planned Development Agreement. Physically Possible Uses that are not physically possible must be eliminated from my analysis of the potential Highest and Best Uses for the subject site. The overall subject site contains a total of 75.42 acres. It is considered sufficient in size and shape to accommodate most, if not all, of the uses permitted by the applicable local plan Municipal utilities are available at the site. Support facilities such as shopping, employment, entertainment, and medical care are reasonably close by to the west in DeLand. However, the subject is located outside of the primary development, and potential development to the east is limited by environmental and physical constraints. These factors are likely the reason for the slow development in this area. Financially Feasible/Maximally Productive In considering the feasible and maximally productive uses for the subject property, surrounding property uses have to be considered. As previously discussed, the subject is located in a mostly undeveloped area. However, it is directly across from the Daytona State College satellite campus and is within ¾ of a mile of the SR 44, Interstate 4 interchange. The sites location outside of the primary commercial development may have some impact on its desirability, but its proximity to Daytona State and Interstate 4 should influence development in the foreseeable future. The subject zoning allows a variety of uses including commercial and residential/multi-family. Considering the sites proximity to both Daytona State and Interstate 4 (access to Daytona and Orlando), it is the appraiser’s opinion that a mixed use development consisting of both multi-family and commercial uses would be appropriate. The sites corner location at a traffic controlled intersection is also appealing for retail commercial uses. Demand for both residential and commercial uses has been good over the past few years and should remain

23

steady into the near future. Considering this discussion, the appraisers feel that the subject site has good potential for a mixed use development, with commercial uses at the corner, at such time a demand warrants. Conclusion Based on the previous discussion, it is my opinion that the subject site's highest and best use is for a mixed use development at such time as demand warrants. As Improved The subject is vacant.

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ESTIMATED EXPOSURE TIME Exposure Time may be defined as, “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; a retrospective estimate based upon an analysis of past events assuming a competitive and open market.”4 The estimated exposure time for the subject on the open market is greatly dependent upon the following: 1) the market conditions in effect at the time of marketing; 2) the effort, influence and exposure applied to this marketing program; and 3) the availability of financing for this type of property. Exposure time is different for various types of real estate and value ranges and under various market conditions. In this case, due to the limited sales information, I was unable to accurately estimate exposure time. In this case, we were unable to accurately estimate exposure time from the available sales. The subject’s location is outside of the primary commercial development in the area and has been slow to develop. However, considering the current market conditions and demand for new residential housing and commercial property, it would appear that this area could begin to see some interest in development. Based on this information, it is my opinion that the subject could have taken 24 months or longer to sell if marketed at the indicated appraised value. But, consideration must also be given to the fact that most sales of this type of property have long contract periods allowing the developer to do due diligence, apply for zoning changes, etc. This factor could extend the amount of time to close.

4 Standards Of Professional Appraisal Practice Of The Appraisal Institute, 1998 Edition, The Appraisal Foundation, 1998, Page 77.

25

THE APPRAISAL PROCESS

There are normally three approaches to value available for use in the estimation of Market Value. The three widely recognized approaches include the Cost Approach, the Income Approach, and the Direct Sales Comparison (Market Data) Approach. These three approaches to value result in preliminary indications of value which may be somewhat at a variance with each other. When this is the case, the relative significance, applicability and defensibility of the indications of value derived from each approach are weighed. This analysis leads to the selection of a final value estimate that, in the appraisers' professional judgment, best reflects the attitudes, responses, and behavior of the typically informed, rational purchaser in the market in question. In this case, as discussed in the scope of work, the Direct Sales Comparison Approach is considered the most applicable approach to value.

26

SALES COMPARISON APPROACH (BEFORE) The Direct Sales Comparison Approach, or Market Data Approach as it is sometimes referred to, is an appraisal technique which utilizes recent transactions of similar comparable properties to derive an indication of value for the subject. These comparable properties are adjusted for variables to enhance their degree of comparability to the subject. Based upon those adjustments, supported by market evidence, the appraisers are then able to develop a clear indication of value for the subject. This technique is particularly accurate when there is an active and normal sales market of similar properties and when the details of the transactions can be verified by reliable sources involved in the sale. The Direct Sales Comparison Approach is based upon the principle of substitution in that a knowledgeable buyer will not pay any more for a particular property than what it would cost to purchase a duplicate property with equal utility. As previously discussed, the appraisal assignment is to value the overall subject parcel, and an undefined 4 acre outparcel at the northeast corner of the site. Therefore two valuations will be completed. VALUATION OF THE OVERALL PARCEL In estimating the value of a vacant parcel of land with a highest and best use of Mixed Use, the most widely used units of comparison are the selling price per gross acre. In this case, the subject has no entitlements. For this reason, we have attempted to analyzed sales without entitlements, and compared them to the subject on a price per acre basis. I have chosen to compare the sales based on their upland acre sizes. While wetlands can be used in the calculation of density, they do limit the area for development and can create additional costs and development issues. The amount of wetlands, location of wetlands and quality of wetlands all play a part in the development process. Without the specific knowledge of the wetland impacts on the comparable sales, I feel the most reliable comparison is based on the useable uplands. The most appropriate sales for utilization in the Direct Sales Comparison Approach are considered to be properties that share similar size, location, zoning and highest and best use. A diligent search of Market Area revealed a limited number of comparable sales of similar size for comparison to the subject. For this reason, I have relied on sales throughout Volusia County and surround areas, some of which are smaller than the subject. However, they are the best and most similar sales available for comparison to the subject and represent valid indications of market activity and demand for this type of property in this locale. Percentage adjustments to the comparables were applied to reflect the differing characteristics and are shown on the grid sheet analysis chart. These adjustments are not supported by an exact quantitative analysis, but are based on what we believe would be the market's perception of the inferior, or superior qualities of the comparables as they relate to the subject. A location map and chart summarizing the comparables and their comparison to the subject may be found on the following pages. A descriptive write up of each sale is located in the addendum to this report.

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COMPARABLE LAND SALES MAP

28

DESCRIPTION SUBJECT SALE NO. 1 SALE NO. 2 SALE NO. 3 LISTING NO. 1 LISTING NO. 2

O.R. BOOK/PAGE N/A 7453/2558+ 7522/2967 CURRENT CONTRACT CURRENT LISTING EXPIRED LISTING

TAX ID# 7024-00-00-0022 6306-01-00-0010+ 3137-01-01-0012 15-11-30-0000-01010-0000 8109-00-00-0064 8012-00-00-0010

SALE PRICE N/A $3,255,000 $2,800,000 $1,200,000 $3,500,000 $2,720,000

PRICE/ACRE N/A $77,500 $67,829 $41,379 $95,628 $72,129

PROPERTY RIGHTS FEE SIMPLE FEE SIMPLE FEE SIMPLE FEE SIMPLE FEE SIMPLE FEE SIMPLE

0% 0% 0% 0% 0%

FINANCING N/A NORMAL NORMAL NORMAL N/A N/A

0% 0% 0% 0% 0%

CONDITIONS OF SALE N/A NORMAL MOTIVATED SELLER NORMAL N/A N/A

0% 50% 0% 0% 0%

SALE DATE N/A 08/2017 03/2018 CURRENT CONTRACT CURRENT LISTING EXPIRED LISTING

0% 0% 0% -15% -15%

ADJUSTED PRICE/ACRE N/A $77,500 $101,744 $41,379 $81,284 $61,310

LOCATION/ACCESS SR 44 & CR 4139 CLYDE MORRIS BLVD./REED CANAL ROSCOMMON DR. US 1 HOWLAND BLVD. GRAVES AVE.

DELAND PORT ORANGE ORMOND BEACH PALM COAST DELTONA ORANGE CITY

COMPARISON -10% -10% 10% -10% 10%

SIZE (USEABLE ACRE) 75.42 42.00 41.28 29.00 36.60 37.71

COMPARISON -10% -10% -15% -10% -10%

SHAPE IRREGULAR IRREGULAR IRREGULAR IRREGULAR IRREGULAR IRREGULAR

COMPARISON 0% 0% 0% 0% 0%

TOPOGRAPHY ALL UPLANDS ALL UPLANDS ALL UPLANDS ALL UPLANDS ALL UPLANDS ALL UPLANDS

AVERAGE FILL REQUIRED

COMPARISON 0% 0% 25% 0% 0%

UTILITIES ALL AVAILABLE ALL AVAILABLE ALL AVAILABLE MUST BE EXTENDED ALL AVAILABLE ALL AVAILABLE

COMPARISON 0% 0% 25% 0% 0%

ZONING/DENSITY MIXED USE COMMERCIAL/RESIDENTIAL MIXED USE MULTIFAMILY MIXED USE MULTI-FAMILY & COMMERCIAL BPUD MIXED USE FUTURE LAND USE

COMPARISON 0% 0% 0% -5% 0%

ENTITLEMENTS NONE ENTITLED FOR 305 APARTMENTS NONE NONE NONE NONE

COMPARISON -5% 0% 0% 0% 0%

OTHER NONE NONE RETENTION, ROADS, ETC. NONE NONE NONE

COMPARISON 0% -20% 0% 0% 0%

ADJUSTED PRICE/UNIT SUBJECT $58,125 $61,047 $60,000 $60,963 $61,310

COMPARABLE LAND SALES CHART

29

Discussion of Comparable Land Sales As previously discussed, the appraisal assignment includes a value of the subject site as is. In order to estimate the value of the subject site, I have analyzed sales and listings of vacant parcels having similar highest and best uses. I have attempted to uses sales and listings of properties situated outside of the major commercial hubs. There have been few recent sales of similar properties to use for comparison to the subject. However, I was able to find two recent sales. I have also analyzed a current listing, an expired contract and an expired listing for comparison to the subject. Market Conditions Adjustment The three sales occurred between August 2017 and a current contract. While market conditions have improved over the past few years, there is insufficient information to estimate or justify a time adjustment from these sales over this time period. Therefore, none has been applied, but this factor has been considered in the final reconciliation of value. Sale No. 1 is the transfer of a vacant property in Port Orange. This site was sold for multi-family uses, but was also permitted to have commercial uses. The site sold with entitlements for 305 apartment units. While varying in several respects, the only adjustments applied were for its location, smaller size and entitlements. The subject is located on SR 44 with good access to Interstate 4. However, its location is outside of the areas commercial corridor and has been slow to develop. This sale is situated in a rapidly developing area with significant commercial development and significant residential development surrounding. It is also located in desirable Port Orange, abutting a high school. Its location is considered superior to the subject and a negative adjustment was applied. This subject contains approximately 75.42 acres of useable land area. This sale contains approximately 42 acres and was given a negative adjustment based on the premise that the smaller a parcel the greater it’s per unit value, and vice versa. This sale was nearly fully entitled for apartment units. Entitlements can be costly, take time, and generally contribute value to the overall parcel. For this reason, this sale was considered superior to the subject and a negative adjustment was applied. No other adjustments have been applied. After adjustments, this sale reflects a value for the subject of $58,125 per upland acre. Sale No. 2 is the sale of a mixed use development consisting of both commercial and multi-family uses. The site was cleared and generally ready to be developed. It was given adjustments for its location, smaller size and infrastructure. It was also considered to be a motivated seller and an adjustment was applied. Based on information provided by the listing broker. The property involved a corporate seller that needed to move the property quickly, and sold it for well below their estimated market value. For this reason, the sale was considered to be motivated, and a significant positive adjustment was applied.

30

This site is situated in a less developed commercial area proximate to Interstate 95, but is abutting the interstate and a Publix shopping center. It also has a larger residential base in the surrounding area. For this reason, it was considered superior to the subject and a negative adjustment was applied. As with Sale No. 1, this sale was much smaller than the subject and a negative adjustment was applied. This sale was nearly ready to be developed with retention in place, and much of the road and utilities infrastructure was completed. For these reasons, this sale is considered superior to the subject and a negative adjustment was applied. No other adjustments have been applied. After adjustments, this sale reflects a value for the subject of $61,047 per upland acre. Sale No. 3 is the current contract of a mixed use property situated along US Highway 1 in Palm Coast. This property was given adjustments for its inferior location, smaller size, inferior topography and inferior utilities. This site is located in a relatively undeveloped area outside of the primary commercial development in Palm Coast. The location and access are considered to be inferior to the subject and a positive adjustment was applied. As with Sale Nos. 1 and 2, this sale is significantly smaller and a negative adjustment was applied. This site required a significant amount of fill and a long extension of utilities to be developed. These development costs were reported to be quite extensive by the listing broker. For this reason, positive adjustments were applied. No other adjustments were applied. After adjustments, this sale reflects a value for the subject of $60,000 per upland acre. Listing No. 1 is the current listing of a 36.6 acre commercial parcel on Howland Boulevard in Deltona. The site has been on the market for an extended period of time and was given an adjustment for being only a listing. Adjustments for location, size and zoning were also applied. This site is located on Howland Boulevard and Catalina Boulevard in Deltona. While the site is not as close to the Interstate as the subject, it is in a much more heavily developed area and was considered to have a superior location. For this reason, a negative adjustment was applied. This site is smaller than the subject and a negative adjustment was applied This site enjoyed all commercial zoning with no residential. This site could easily be rezoned to a mixed use zoning, however, commercial zoned properties typically have higher values than mixed use properties. Therefore a minor negative adjustment was applied.

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No other adjustments were applied. After adjustments, this sale reflects a value for the subject of $60,963 per upland acre. Listing No. 2 is an expired listing of a mixed use parcel situated along Graves Avenue in Orange City. This property was listed for some time and was put under contract in 2017, but the contract fell through. The site contains approximately 37.71 acres and is situated at a traffic controlled corner, similar to the subject. This listing was given adjustments for its being only a listing, for its inferior location/access, and its smaller size. This site was located proximate to Interstate 4 and at a traffic controlled corner, similar to the subject. However, its fronting roads are inferior to the subject and its access to the interstate system is also inferior. For this reason, it was considered to be an inferior location and a positive adjustment was applied. As with the other comparables, this property was significantly smaller than the subject and a negative adjustment was applied. No other adjustments were applied. After adjustments, this sale reflects a value for the subject of $61,310 per upland acre Conclusion The three sales indicate an adjusted range of values of $58,125 to $61,310 per acre. The upper limit of value is set by an expired listing. No one sale is considered to be the best indicator of value. However, the listings are considered to set the upper limit of value. Therefore, based on these indicators, it is my opinion the subject has an estimated value of $60,000 per acre or: 75.42 Upland Acres x $60,000/Upland Acre = $4,525,200 Rounded To $4,525,000

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VALUATION OF THE 4 ACRE OUTPARCEL

In estimating the value of a vacant parcel of land with a highest and best use of commercial development, the most widely used unit of comparison is the price per square foot. The most appropriate sales for utilization in the Direct Sales Comparison Approach are considered to be properties that share similar size, location, zoning and highest and best use. A diligent search of Market Area revealed a limited number of comparable sales of similar size for comparison to the subject. For this reason, I have relied on sales throughout Volusia County and surround areas, as well as listings and offers. Percentage adjustments to the comparables were applied to reflect the differing characteristics and are shown on the grid sheet analysis chart. These adjustments are not supported by an exact quantitative analysis, but are based on what we believe would be the market's perception of the inferior, or superior, qualities of the comparables as they relate to the subject. A location map and chart summarizing the comparables and their comparison to the subject may be found on the following pages. A descriptive write up of each sale is located in the addendum to this report.

33

COMPARABLE LAND SALES MAP

34

DESCRIPTION SUBJECT SALE NO. 1 SALE NO. 2 SALE NO. 3 OFFER NO. 1

O.R. BOOK/PAGE N/A 7472-4193 7460/0198 7595/3190 CURRENT OFFER

TAX ID# 7024-00-00-0022 8136-06-00-0010+ 4125-00-00-0129+ 6332-00-00-0011 CONFIDENTIAL

SALE PRICE N/A $585,000 $885,000 $750,000 $1,475,000

PRICE/ACRE N/A $4.57 $6.73 $2.94 $6.06

PROPERTY RIGHTS FEE SIMPLE FEE SIMPLE FEE SIMPLE FEE SIMPLE FEE SIMPLE

0% 0% 0% 0%

FINANCING N/A NORMAL NORMAL NORMAL N/A

0% 0% 0% 0%

CONDITIONS OF SALE N/A NORMAL NORMAL QUICK SALE N/A

0% 0% 50% 0%

SALE DATE N/A 11/2017 10/2017 08/2018 CURRENT OFFER

0% 0% 0% 0%

ADJUSTED PRICE/ACRE N/A $4.57 $6.73 $4.41 $6.06

LOCATION SR 44 & CR 4139 HOWLAND BLVD. & FT. SMITH BLVD. W. GRANADA BLVD & TYMBER CREEK RD. WILLIAMSON BLVD. TRAFFIC CONT. CORNER

DELAND DELTONA ORMOND BEACH PORT ORANGE ORMOND BEACH, FL

COMPARISON 10% -20.00% 0% -20.00%

ACCESS TRAFFIC CONT. CORNER TRAFFIC CONTROLLED CORNER TRAFFIC CONT. CORNER/GOOD TRAFFIC LIGHT/INFERIOR TRAFFIC CONT. CORNER/GOOD

0.00% 0.00% 0.00% 0.00%

SIZE (USEABLE ACRE) 174,240 128,066 131,551 254,826 243,500

COMPARISON -5% -5.00% 5% 5%

SHAPE RECTANGULAR (ASSUMED) IRREGULAR/AVERAGE RECTANGULAR/AVERAGE IRREGULAR/AVERAGE IRREGULAR TRIANGLE

COMPARISON 0% 0.00% 0% 5%

TOPOGRAPHY AVERAGE/WOODED AVERAGE/WOODED AVERAGE/WOODED AVERAGE/WOODED PARTIALLY CLEARED

COMPARISON 0% 0.00% 0% 0%

UTILITIES ALL AVAILABLE ALL AVAILABLE ALL AVAILABLE ALL AVAILABLE ALL AVAILABLE

COMPARISON 0% 0% 0% 0%

ZONING/DENSITY MIXED USE COMMERCIAL FLU C-1, COMMERCIAL B-8, COMMERCIAL ZONING DIST. COMMUNITY COMMERCIAL MUST BE REZONED TO B-8

MUST BE REZONED DELTONA ORMOND BEACH PORT ORANGE ORMOND BEACH

COMPARISON 0% 0% 0% 0%

ENTITLEMENTS NONE NONE NONE NONE NONE

COMPARISON 0% 0% 0% 0%

OTHER NONE NONE NONE DENSITY LIMITATIONS NONE

COMPARISON 0% 0% 10% 0%

ADJUSTED PRICE/UNIT SUBJECT $4.80 $5.05 $5.08 $5.45

COMPARABLE LAND SALES CHART

35

Discussion of Comparable Land Sales As previously discussed, the appraisal assignment also includes the valuation of an undefined outparcel to the overall site, situated at the corner of SR 44 and CR4139. The area to be appraised is estimated to be 4.0 acres in size. In order to estimate the value of this parcel, I have analyzed sales and listings of vacant parcels having similar highest and best uses. I have attempted to uses sales and listings of sites at traffic controlled corners situated outside of the major commercial hubs. There have been few recent sales of similar properties to use for comparison to the subject. However, I was able to find three recent sales. I have also analyzed a current offer to purchase. Market Conditions Adjustment The three sales occurred between November 2017 and August 3018. While market conditions have improved over the past few years, there is insufficient information to estimate or justify a time adjustment from these sales over this time period. Therefore, none has been applied, but this factor has been considered in the final reconciliation of value. Sale No. 1 is the transfer of a vacant site situated at a traffic controlled corner in Deltona. This site sold in November 2011. It was given adjustments for its inferior location and smaller size. While this site is situated in a more heavily developed residential area, the Deltona market has been slow and is generally inferior to the DeLand or other surrounding areas. In addition, this site is situated well away from the interstate system, and does not enjoy the interstate influence of the subject property. For these reasons, this sale was considered inferior to the subject and a positive adjustment was applied. This site is over 1 acre smaller than the subject, and was given a negative adjustment based on the premise that the smaller a parcel the greater it’s per unit value, and vice versa. No other adjustments have been applied. After adjustments, this sale reflects a value for the subject of $4.80 per square foot. Sale No. 2 is the recent sale of a 3.02 acre site situated at a traffic controlled corner in Ormond Beach. It was given adjustments for its superior and smaller size. This site is located a similar distance from Interstate 95 as the subject is from I-4, but this location is much more developed and has a much larger residential base surrounding it. This site abuts a 7-11 to the east, and a CVS to the north, and has several retail and restaurant users between it and Interstate 95. For these reasons, this sale is considered to have a superior location when compared to the subject and a negative adjustment was applied. As with Sale No. 1, this sale was nearly an acre smaller than the subject, and a minor negative adjustment was applied for this factor. No other adjustments have been applied. After adjustments, this sale reflects a value for the subject of $5.05 per square foot.

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Sale No. 3 is the very recent sale of a large corner commercial parcel. The property was given adjustments for its condition of sale, larger size and potential density limitations. This site was listed for sale for $1,800,000 but sold for $750,000. The listing broker indicated that the sale was not distressed, but the seller was motivated and required a quick sale with no grace period for rezoning, permitting, etc. While an estimated discount for these factors was not given, I have applied a significant positive adjustment based on surrounding and similar sales. This site was almost two acres larger than the subject, and given a positive adjustment for this factor. While I was unable to verify any density limitations or added development costs for the site, I was able to determine that the previously approved development on the site was limited to approximately 13 percent building coverage with over 50 percent buffer and green area. While these limitations may not apply to a newly proposed development, they should be considered. In addition, development of the site will require some fair-share development costs paid to the City for roads and utilities. These costs could not be calculated but are often greater in this area than in others. For these reasons, I believe this sale to be inferior to the subject and a positive adjustment was applied. No other adjustments have been applied. After adjustments, this sale reflects a value for the subject of $5.08 per square foot. Offer No. 1 is the current offer for a similar sized site situated at a traffic controlled corner. Because this is not a closed sale, the information has been kept confidential. While this is not an agreed upon price, the offer has been made, and the sellers are considering it. Because this is confidential, details have been eliminated from the chart. However, in general, the site has similar attributes and location to Sale No. 2. Adjustments were applied for its superior location, larger size, and irregular shape. No other adjustments have been applied. After adjustments, this sale reflects a value for the subject of $5.45 per square foot. Conclusion The four comparables indicate an adjusted range of values of $4.80 to $5.45 per square foot. The lower limit of value is set by a property in an inferior location, while the upper limit of value is set by an offer that has not closed, and is in a superior location. Sale No. 3 required a significant and subjective adjustment for conditions of sale and has been given least consideration. Sale Nos. 2 and 4 are considered the best indicators of the subject’s value due to their similar proximity to the Interstate System. Therefore, based on these indicators, it is my opinion the subject has an estimated value of $5.05 per square foot, or: 174,240 Square Feet x $5.05/Square Foot = $879,912 Rounded To $880,000

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RECONCILIATION OF APPROACHES

The reconciliation analysis is the process of correlating and integrating related factors contained within this report in order to form a cohesive and logical conclusion of the value of the subject property. An orderly connection of the independent elements previously introduced within this report is a prerequisite for a satisfactory reconciliation. A reevaluation of the specific data, procedures, and techniques utilized in estimating each separate value conclusion must be scrutinized. Each approach to value will be examined to ascertain its relevancy, adequacy, and reliability. During the reconciliation process "the appraiser weighs the relative significance, applicability, and defensibility of the indicator of value derived from each approach, and places most weight and reliance on the one which, in his professional judgment, best approximates the value being sought in the appraisal."1 Theoretically, each of these estimates of value should equate if the appraiser had unlimited data at his disposal, a perfect market, and was thus able to process the three approaches to value with exacting precision. However, appraising is not an exact science, and unlimited data is not available. The result is that the three approaches generally will not be identical, but should suffice to establish a reasonably close range of values. Once the value estimates by each of these approaches is derived, the appraiser must then consider the scope of the appraisal assignment, and the reasonableness, quantity, and quality of all the information obtained. The purpose of this final review and analysis is to evaluate each of the approaches to value and determine which of the approaches merits the greatest consideration, and solve the appraisal problem by arriving at a final value estimate for the subject property. In this case, only the Direct Sales Comparison Approach was completed. After considering all of the relevant factors involved, it is my opinion the estimated Market Values of the subject property, as of September 26, 2018, the effective date, was:

OVERALL PARCEL

FOUR MILLION FIVE HUNDRED TWENTY-FIVE THOUSAND DOLLARS

($4,525,000)

AND

4.0 ACRE OURPARCEL

EIGHT HUNDRED EIGHTY THOUSAND DOLLARS

($880,000)

1 Real Estate Appraisal Terminology, Byrl N. Boyce, Ballinger Publishing Company, Cambridge, MA, 1975, Page 112.

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A D D E N D U M

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PURCHASE ORDER LEGAL DESCRIPTION

FLOOD ZONE MAP ELEVATION MAP

ZONING MAP FUTURE LAND USE MAP

QUALIFICATIONS OF THE APPRAISER

LEGAL DESCRIPTION

FLOOD ZONE MAP

ELEVATION MAP

ZONING MAP

FUTURE LAND USE MAP

QUALIFICATIONS OF THE APPRAISER

R. TODD HEFFINGTON, MAI 911 BEVILLE ROAD, STE. 8

DAYTONA BEACH, FL 32119 TODD@HEFFINGTONANDASSOCIATES.COM

BUSINESS AND PROFESSIONAL AFFILIATIONS Member, Appraisal Institute

State Certified General Real Estate Appraiser - State of Florida, License 2368 Florida Real Estate Salesman, License SL 0589200 Member DeLand-West Volusia Board of Realtors

EDUCATION

B.S. Degree Real Estate, University of Florida, 1992 Master Of The Arts Degree in Real Estate, University of Florida, 1994 Numerous continuing education courses and seminars

APPRAISAL EXPERIENCE

Clayton, Roper, and Marshall, May 1993 through August 1993 Heffington & Associates, September 1, 1993 to Present

Completed appraisals on Single Family Residences, Vacant Residential Land, Agricultural Land, Producing Agricultural Properties, Vacant Commercial Properties, Apartment Developments, Industrial Properties, Golf Courses, and Office Buildings

COURT QUALIFICATIONS Qualified as expert witness for Real Estate Valuation Provided testimony in court hearings for condemnation, deficiency judgments, etc.

PARTIAL LIST OF CLIENTS

BB&T City of Daytona Beach

Fairwinds Credit Union City of DeLand Farm Credit City of New Smyrna Beach Florida Capital Bank City of Ormond Beach Florida Community Bank City of Port Orange Friends Bank City of South Daytona Main Street Community Bank County of Volusia PNC Bank Florida Department of Transportation Regions Bank School Board of Volusia County Seacoast Bank TD Bank Wells Fargo