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Bee Branch Creek Restoration Project_Acquisition of 430 Garfiled Ave.
Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Bee Branch Creek Restoration Project Purchase of 422 and 430 Garfield Avenue DATE: September 12, 2013 Dubuque band AI- America City IIIii! 2007 • 2012 • 2013 City Engineer Gus Psihoyos is recommending establishment of the fair market value of 430 Garfield Avenue and 422 Garfield Avenue and recommending authorization for the City to begin negotiations to acquire the property required for the Bee Branch Creek Restoration Project. Further authorization is sought to acquire the property through eminent domain proceedings should negotiations fail. The Bee Branch Creek restoration project will save 1,150 homes and businesses from flooding. In the last 12 years there have been multiple Presidential disaster declarations for this area. In December of 2004, the City Council adopted the alignment of the Bee Branch Creek Restoration Project based on the work and recommendation of the Bee Branch Citizen Advisory Committee. The alignment adopted in 2004 crossed a railroad yard at 506 Garfield Avenue. The City has been conversing with the various owners of the tracks and rail yard since 2007. In 2007, it was owned by Iowa, Chicago & Eastern Railroad (IC &E). In 2008, the tracks and yard were acquired by Dakota, Minnesota, & Eastern Railroad (DM &E). And finally, in 2010 the tracks and yard were acquired by Canadian Pacific (CP). The new alignment minimizes disruption to the railroad operations, reduces the City's overall project costs, and ensures that the next phase of the City's Bee Branch Creek Restoration Project can move into construction as planned in the spring of 2014. The first and most important aspect of changing the alignment and installing culverts under the railroad tracks versus the construction of a bridge is how the culverts would function in terms of flood control. The City's design engineer, Strand & Associates looked at the proposed culvert system using a comprehensive, dynamic computer model developed by the EPA and used by scientists, engineers, and managers for analysis and design of stormwater management systems. The models use over the last twenty five (25) years has made it one of the most reliable and well -used simulation software programs in the world. They also used Hydraulic Engineering Center -River Analysis System, a hydraulic computer model developed and used by the United States Army Corps of Engineers to affirm their findings. Strand & Associates determined that the proposed culvert system will perform slightly better than the proposed bridge. As outlined with the proposed FY2014 budget, "The cost estimates for the options currently being considered range from $10,279,000 to $19,406,000." The $10.3 million option represents the re- aligned culvert system as presented here. These costs include property acquisitions, engineering, and construction. The proposed culvert system alignment still requires an easement through CP property. The alignment shift will also require a small easement through 525 E. 19th Street and the acquisition of at least a portion of 430 Garfield Avenue (Dubuque Furniture & Flooring). More specifically, it requires the acquisition and removal of the northeast portion of the building at 430 Garfield which will impact the operation of the current business. City staff has visited with the owner of Dubuque Furniture & Flooring, Mr. Rob Klauer, about the impacts to his business. Based on those discussions, it may be possible for Mr. Rob Klauer to continue operation of his business at its current location following the City's partial acquisition. But it is also possible that the City's partial acquisition may require him to relocate his business which would necessitate that the City acquire the entire property. Because there are two possible outcomes, it is appropriate to establish the fair market value of both the partial acquisition and the fair market value of the total acquisition of 430 Garfield Avenue. Mr. Klauer also owns the adjacent property 422 Garfield Avenue. Based on the information gathered about the project and provided by Mr. Klauer, it does not appear to be utilized as part of his business operation. However, there is a scenario where Mr. Klauer requests that the City acquire 422 Garfield Avenue when the City acquires 430 Garfield Avenue. For this reason, establishing the fair market value of 422 Garfield is also recommended. There are three possible scenarios. 1. This City only acquires the portion of 430 Garfield required for the City's project. This acquisition is valued at $400,000.00; 2. The City acquires all of 430 Garfield. This acquisition is valued at $780,000.00; or 3. The City acquires all of 430 Garfield and all of 422 Garfield Avenue. This acquisition is valued at $1,008,000.00. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Gus Psihoyos, City Engineer 2 Prepared by: Deron Muehrinq, City Hall, 50 W 13th Street, Dubuque IA 52001 563 - 589 -4270 Return to: Deron Muehring, City Hall, 50 W 13th Street, Dubuque IA 52001 563 - 589 -4270 RESOLUTION NO. 292 -13 ESTABLISHING THE FAIR MARKET VALUE OF CERTAIN REAL PROPERTY FOR THE BEE BRANCH CREEK RESTORATION PROJECT, DIRECTING GOOD FAITH NEGOTIONS FOR THE ACQUISITION OF THE PROPERTY AND AUTHORIZING THE COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS, IF NECESSARY, TO ACQUIRE THE PROPERTY WHEREAS, the City of Dubuque (City) has identified a need to acquire certain real property owned by Robert F. Klauer (Owner), at 430 Garfield, shown as Parcel B on Exhibit A attached hereto, located in Parcel A; and WHEREAS, City intends to acquire Parcel B; and WHEREAS, the acquisition of Parcel B may result in an uneconomical remnant for the remainder of Parcel A necessitating City's acquisition of all of Parcel A; and WHEREAS, the acquisition of all of Parcel A may necessitate City's acquisition of the adjacent property also owned by Owner at 422 Garfield, Parcel C, shown as. Parcel C on Exhibit A ; and WHEREAS, City has caused to be made appraisals of the Property and Parcel A and B and the appraised values for the properties are listed below; Property Appraised Value Parcel A $780,000.00 Parcel B $400,000.00 Parcel C $228,000.00 and; WHEREAS, Iowa law requires that City make a good faith effort to negotiate with the owner for the purchase of property proceeding with condemnation; and WHEREAS, City may not make an offer to purchase a property which is less than the fair market value City has established for the property; and WHEREAS, the City Council now desires to establish the fair market value for Parcels A, B and C; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA AS FOLLOWS: Section 1. The fair market value of the Parcels A, B and C is hereby established to be the amount of their appraised value as listed above. Section 2. The City Manager is directed to enter into faith negotiations for the acquisition for Parcels A, B and C, and, if necessary, commence eminent domain proceedings to acquire Parcels A, B and C. Passed, approved and adopted this 16th day of September, 201 Attest: Kevin S irnstahl, C ty lerk 2 Roy D. Buol, Mayor EXHIBIT A / \ ( N. \N 44, t* sy1'l�,, \ \ N o i "`'F' \ `\ \� \\ \ \\ \� �FFThA ` \ \�� \ \ 1 * \ .._ \\ \\ \‘ \ \ N ice, \\ / \ / / \ /J / \ \ \ _ ` / 7 / Q O / FJ �C�,OP��\ gr �° Parcel B LOT 1 -1- +oe ParcelA • \ • \ • ■ Parcel C e LOT I �-0 / / / / / ill 1 / I. , / i*,8 qt`s FB Why $0 Hj N fk'E. N N I ��. ! NORTH Ig1g1K ; SWL '-I � u "Y: / / N II Masterpiece on the Mississippi Dubuque bitell All- America City 1 I 2007 • 2012 • 2013 TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer SUBJECT: Bee Branch Creek Restoration Project, Purchase of 422 & 430 Garfield Avenue DATE: September 9, 2013 INTRODUCTION The purpose of this memo is to establish the fair market value of 430 Garfield Avenue and 422 Garfield Avenue and seek authorization for the City Council to begin negotiations to acquire the property required for the Bee Branch Creek Restoration Project. Further authorization is sought to acquire the property through eminent domain proceedings should negotiations fail. BACKGROUND In December of 2004, the City Council adopted the alignment of the Bee Branch Creek Restoration Project based on the work and recommendation of the Bee Branch Citizen Advisory Committee. The adopted alignment crosses a railroad yard at 506 Garfield Avenue. The City has been conversing with the various owners of the tracks and rail yard since 2007. In 2007, it was owned by Iowa, Chicago & Eastern Railroad (IC &E). In 2008, the tracks and yard were acquired by Dakota, Minnesota, & Eastern Railroad (DM &E). And finally, in 2010 the tracks and yard was acquired by Canadian Pacific (CP). The City Council was presented with a recommendation to adjust the alignment. If approved by the City Council, the adjustment will result in the City's need to acquire at least a portion of both 430 Garfield Avenue and 525 E. 19th Street. DISCUSSION Per the adjusted alignment, the Bee Branch Creek Restoration Project is to cross 430 Garfield Avenue (Dubuque Furniture & Flooring). More specifically, it requires the acquisition and removal of the northeast portion of the building at 430 Garfield which will impact the operation of the current business. City staff has visited with the owner of Dubuque Furniture & Flooring, Mr. Rob Klauer, about the impacts to his business. Based on those discussions, it may be possible for Mr. Rob Klauer to continue operation of his business at its current location following the City's partial acquisition (see Attachment B). But it is also possible that the City's partial acquisition may require him to relocate his business which would necessitate that the City acquire the entire property (see Attachment C). Because there are two possible outcomes, it is appropriate to establish the fair market value of both the partial acquisition and the fair market value of the total acquisition of 430 Garfield Avenue. Mr. Klauer also owns the adjacent property 422 Garfield Avenue (see Attachment D). Based on the information gathered about the project and provided by Mr. Klauer, it does not appear to be utilized as part of his business operation. However, there is a scenario where Mr. Klauer requests that the City acquire 422 Garfield Avenue when the City acquires 430 Garfield Avenue. For this reason, establishing the fair market value of 422 Garfield is also recommended. For each acquisition, the City commissioned two appraisals. The findings with the highest valuation for each are as follows: Property to be Acquired Value of Property Partial Acquisition of 430 Garfield $400,000.001 Total Acquisition of 430 Garfield $780,000.001 Total Acquisition of 422 Garfield $228,000.002 Kane Appraisal Services 2Felderman Appraisals Dubuque To recap, there are three possible scenarios. 1. This City only acquires the portion of 430 Garfield required for the City's project. This acquisition is valued at $400,000.00; 2. The City acquires all of 430 Garfield. This acquisition is valued at $780,000.00; or 3. The City acquires all of 430 Garfield and all of 422 Garfield Avenue. This acquisition is valued at $1,008,000.00. RECOMMENDATION I recommend that the City establish the fair market value of 430 Garfield Avenue and 422 Garfield Avenue at the appraised value and that the City Manager begin negotiations with the property owner. ACTION TO BE TAKEN I respectfully request that the City Council adopt the attached resolution: (1) Establishing the fair market value of the partial acquisition of 430 Garfield Avenue; (2) Establishing the fair market value of the total acquisition of 430 Garfield Avenue; (3) Establishing the fair market value of 422 Garfield (4) Authorizing the City Manager to commence negotiations to acquire the properties; and (5) Authorizing the City Manager to acquire the properties through eminent domain if negotiations fail. Prepared by Deron Muehring, Civil Engineer Attach. cc: Barry Lindahl, City Attorney Deron Muehring, Civil Engineer Steve Brown, Project Manager ATTACHMENT A Legend •_•_• I I Parcels .-- — r — S I L – Existing Bee Branch/RR Bridge – 9.5-foot Diameter Pipes Transition Structure 12' x 10' Box Culverts Headwall Structures Proposed culvert system through 506 Garfield Ave. (Canadian Pacific), 430 Garfield Ave. (Dubuque Furniture & Flooring), and 525 E. 19th Street. ATTACHMENT B 430 Garfield AO Acquisition Area +1- 13,030 SF MAG ∎:AI LOT 1 -2- ML 106 CW - 0 I \F. 1k4,_F� 430 Garfield EAST C 3 ER LOT -2 -2 -2 AIL it !LEE N !.LA 5]ERT F MER OWNER: RO[FRT KL<UER Partial acquisition of 430 Garfield Avenue (Dubuque Furniture & Flooring) ATTACHMENT C Total acquisition of 430 Garfield Avenue (Dubuque Furniture & Flooring) ATTACHMENT D Total acquisition of 422 Garfield Avenue. APPRAISAL OF THE MARKET VALUE OF THE ROBERT F. KLAUER PROPERTY 430 GARFIELD AVENUE DUBUQUE, IOWA AS OF: FEBRUARY 4, 2013 PREPARED FOR: GUS PSIHOYOS, CITY ENGINEER CITY OF DUBUQUE 50 WEST 13TH STREET DUBUQUE, IA 52001 PREPARED BY: THOMAS F. HOWE KANE APPRAISAL SERVICES 14858 W RIDGE LANE, SUITE #8 DUBUQUE, IOWA 52003 563 -556 -2068 thoweAvousq.net 02/01/2013 <13 -114A> e+1 (Mai n 49 Appraisal Services Gus Psihoyos City Engineer City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 563.589.1470 engineer(d cityofdubuque.orq Dear Mr. Psihoyos: Certified Appraisals Environmental Assessments 14858 West Ridge Lane Suite 8 Dubuque, IA 52003 -9639 1563) 556 -2068 February 8, 2013 Re: The appraisal of Market Value of the Robert F. Klauer property, 430 Garfield Avenue, Dubuque, Iowa, 52001. You requested an appraisal of the Market Value of the above mentioned property. I have completed the appraisal, and its report follows. This report is a Summary Appraisal Report in conformance with the Uniform Standards of Professional Appraisal Practice 2012 -2013. This report explains and supports my opinion of the value of the subject, and was prepared after an inspection (viewing) of the site and improvements, and an analysis of Cost (land only) and Sales Comparison, as well as other pertinent factors. As a result of my investigation, and based upon the analysis of the following data, it is my opinion that the current Market Value of the Fee Simple Interest in the property as of February 4, 2013, is as follows: MARKET VALUE LAND $325,000 IMPROVEMENTS $455,000 TOTAL $780,000 SEVEN HUNDRED EIGHTY THOUSAND DOLLARS Respectfully submitted, KANE APPRAISAL SERVICES Thomas F. Howe General Real Property Appraiser - Iowa #CG01320 TABLE OF CONTENTS Letter of Transmittal Table of Contents Photographs of Subject Property 1. Statement of the Appraisal Problem 2. Salient Facts Summary, Legal Description 3. Regional and City Data 4. Neighborhood Data 5. Site Analysis 6. Description of Improvements 7. Highest and Best Use Analysis 8. Cost Approach to Value. 9. Sales Comparison Approach to Value 10. Income Approach to Value 11. Correlation and Final Value Estimate 12. Certification 13. Contingent and Limiting Conditions 14. Addenda SUBJECT PHOTOGRAPHS — PAGE 1. A front view of the building looking easterly from Garfield Avenue. A front view of the building looking southwesterly from Garfield Avenue. SUBJECT PHOTOGRAPHS — PAGE 1 -A. A rear view of the building looking northerly from a neighboring parcel. A rear view of the building looking westerly from a neighboring parcel. SUBJECT PHOTOGRAPHS — PAGE 1 -B. A rear view of the easternmost section of the building looking northeasterly from the rear parking and semi delivery and pickup area. A rear view of the building and office addition looking northwesterly from the rear parking and semi delivery and pickup area. SUBJECT PHOTOGRAPHS — PAGE 1 -C. An interior view of the retail/showroom area. Another interior view of the retail/showroom area. SUBJECT PHOTOGRAPHS — PAGE 1 -D. An interior view of the retail /showroom area. An interior view of the office area. SUBJECT PHOTOGRAPHS — PAGE 1 -E. An interior view of the stairs to the second floor storage area from the retail /showroom area. An interior view of the 2nd floor storage area. SUBJECT PHOTOGRAPHS — PAGE 1 -F. An interior view of the restroom. A view of the sprinkler riser. SUBJECT PHOTOGRAPHS — PAGE 1 -G. L ~ An interior view of electrical transformers in the mechanical room. r fir_ f An interior view of the electrical panels. SUBJECT PHOTOGRAPHS - PAGE 1 -H. WM fffg�� -� • r - - �, ` An interior view of the ceiling and heaters in the warehouse area. i I - ,r ate. An interior view of two of the overhead doors in the warehouse area. SUBJECT PHOTOGRAPHS - PAGE 1 -I. Another interior view of the warehouse area. An interior view of the addition for bedroom furniture display. SUBJECT PHOTOGRAPHS — PAGE 1 -J. An interior view of the freight elevator. A view of the tubing for the in floor heat system that could be completed. SUBJECT PHOTOGRAPHS — PAGE 1 -K. A street view looking northeasterly on Garfield Avenue. A street view looking southwesterly on Garfield Avenue. 2. STATEMENT OF THE APPRAISAL PROBLEM TYPE OF VALUE, INTENDED USE, AND INTENDED USER: The objective of this appraisal is to estimate the Market Value of the Fee Simple Interest in the Robert F. Klauer property located at 430 Garfield Avenue in Dubuque, Iowa. The City of Dubuque has requested the appraisal, is the client and the intended user in evaluating the property for potential acquisition, which is the intended use. Any other user or use is unintended, and requires post report dated prior written permission of the appraiser. DEFINITIONS: Market Value is defined by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 and in The Appraisal of Real Estate published by the Appraisal Institute (13th Edition, 2008, Page 24 -25), as "the most probable price which a property should bring in a competitive and open market under all conditions, requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is consummation of a sale as of a specific date and passing 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 he considers his own best interest; 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." Market Value is also defined as "the cash price which would be arrived at between a voluntary seller willing but not compelled to sell and a voluntary purchaser willing but not compelled to buy, both of whom are acting freely, intelligently and at arm's length, bargaining in the open market for the sale and purchase of the real estate in question. Such term does not mean the value under peculiar circumstances where greater than its fair price could be obtained, nor does it mean the price which the property would bring at a forced sale. It does not mean what the property is worth to the plaintiff nor what the defendant can afford to pay, but what it is fairly worth in cash on the open market, as stated above." (Iowa Uniform Jury Instruction No. 14.4) - Continued- 2 -A. STATEMENT OF THE APPRAISAL PROBLEM (CONTINUED) DEFINITIONS (CONTINUED): Fee Simple Interest is defined in The Appraisal of Real Estate published by the Appraisal Institute (13th Edition, 2008, Page 114), as: "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." ANALYSIS OF THE SUBJECT: The subject property consists of a 41,712 sq.ft. site (0.96± acres) as per the City of Dubuque Assessor's records). It is located southeast of the intersection of Garfield Avenue and Kniest Street, in northeast Dubuque. It is improved with a 20,009± sq.ft. (ground floor area), one -story and two -story, wood and steel frame, brick, and metal panel sided building. Total building area is reported to be 27,509± sq.ft. The building size is also based on City of Dubuque Assessor records. DATE OF APPRAISAL: Thomas F. Howe and Karl Dolter inspected the property on February 4, 2013, which is the effective date of valuation. The date of this report is February 8, 2013. SCOPE OF THE APPRAISAL: In preparing this appraisal, the Appraiser: 1. Viewed the site, and most of the interior and exterior of the building; 2. Researched public records to determine ownership and other pertinent information; 3. Identified and investigated appropriate comparable market data; 4. Developed the Cost (land only) and Sales Comparison Approaches to Value; and, 5. Reconciled the approaches into a final value conclusion. At the appraiser's direction, Karl Dolter has provided significant assistance to the appraiser. Mr. Dolter viewed and assisted in photographing the property with the appraiser, and prepared the initial draft of the description of improvements. In addition, Mr. Dolter helped in proofreading, downloaded the flood map, and copied the comparable land and improved sales sheets, and inserted these documents into the report. Mr. Dolter did not participate in the value analysis or preparation of the value conclusions in the appraisal process or as reported in the report. - Continued- 2 -B. STATEMENT OF THE APPRAISAL PROBLEM (CONTINUED) SALE HISTORY: According to public records, Robert F. Klauer holds title to the property. It was conveyed by Warranty Deed 2002 - 00006554 dated April 4, 2002 for $210,000 from Robert J. and Rebecca A. Walser. A copy of the deed is included in the Addenda. Since the purchase, the owner reported that roughly $540,000 has been spent on improvements which include: filling the basement and pouring a concrete floor, windows and doors, two additions (bedroom furniture showroom and office), new HVAC, new electrical (wiring in conduit), new plumbing, tuck - pointing, sheet metal lining of warehouse, new steel beams in part of the warehouse so some posts could be removed to create improved interior circulation, framing interior of exterior walls and adding spray foam insulation, sprinkler system, jack post gradual re- positioning of beams to re- level second floor, etc. AMERICANS WITH DISABILITIES ACT: No survey or analysis of the property has been completed to determine if it conforms to the detailed requirements of the ADA. There are no parking spaces reserved for handicapped use, and doorway access does not appear to have been modified. HAZARDOUS MATERIALS: The value estimate contained herein is based upon the assumption that there are no hazardous materials in the building or the site. The appraiser is not qualified to discern the presence or absence of such materials, but is aware that they can have a significant negative effect upon value. REASONABLE EXPOSURE AND MARKETING TIMES: The 2012 -2013 Uniform Standards of Professional Appraisal Practice requires the estimation of reasonable exposure and marketing times for a property, when appropriate. The subject property is in an average, modest valued mixed commercial -light industrial - residential use location. Considering its size and utility, it could be marketed within a period of 9 to 18 months, assuming reasonable pricing and typical market exposure of 9 to 18 months. 3. SALIENT FACTS SUMMARY DATE OF VALUATION: ADDRESS: TYPE OF PROPERTY: LAND AREA: IMPROVEMENTS: CURRENT OWNERSHIP: ZONING: ASSESSED VALUE AND TAXES: (Parcel 1024234003) RIGHTS APPRAISED: LEGAL DESCRIPTION: February 4, 2013. 430 Garfield Avenue, Dubuque, Iowa Retail- warehouse building. 41,712 sq.ft. (0.96± acres). A one -story and two -story, wood and steel frame, brick and metal panel sided building. Its reported ground floor area is 20,009± sq.ft. (27,509± sq.ft. total building area), There is also roughly 800± sq.ft. of asphalt paving and 20,000 ± sq.ft. of gravel surfaced parking areas and driveways. Robert J. Klauer CS (Commercial Service District). 2012 Assessed Value: Land $ 70,280 Improvements + 181,560 Total $ 251,840 Taxes: $ 8,644 The Market Value of the Fee Simple Interest. Lots 1 of 2 of 2 of 2; 2 of 2 of 2 of 2, and 3 of 2 of 2 of 2, of Mineral Lot 106. VALUE ESTIMATE: LAND IMPROVEMENTS TOTAL $325,000 $455,000 $780,000 SEVEN HUNDRED EIGHTY THOUSAND DOLLARS REGIONAL AND CITY DATA DUBUQUE, IOWA Potosi • CLAYTON Cetesburg • Edgewood • Greeley • Petersburg Delaware •Eaqv_ille • Delhi • DELAWARE .�i Hopkinton• Luxemburg • New Vienna • Dyersvill • Balttown 52 Durango Dubuque e Epworth Key Farley • Peostawest • Worthington DUBUQUE Monticello• ne Dickeyville GRANT E. Dubuque �µl • Benton Galena Fillmore Cascade /• j3ard • Zwingle JACKSON St. Donatus JONES •La Motte Bellevue The Dubuque metropolitan area is located geographically located on the most eastern most point of the State of Iowa, the southwestern most point of the State of Wisconsin and the northwestern most point of the State of Illinois. The metropolitan area is referred to as the Tri- State area. Dubuque, Iowa is located 176 miles west of Chicago, Illinois, 200 miles southwest of Milwaukee, Wisconsin, 261 miles south of Minneapolis, Minnesota and 185 rniies northeast of Des Moines, Iowa. With a population of roughly 60,000 people, Dubuque is Iowa's seventh largest city. The City of Dubuque is the county seat for Dubuque County, which has a population of nearly 90,000. Neighboring counties of Grant County, Wisconsin and Jo Daviess County, Illinois have populations of approximately 50,000 and 23,000 people, respectively. MAJOR HIGHWAYS: Major arterials into the area include: Highway 20 — a very modern, four -lane highway stretching from the Illinois border at Dubuque past Interstate 35 in central Iowa. Two- lane highway currently carries travelers into the Illinois cities of Galena, Rockford, Freeport and Chicago. Significant progress is being made to four -lane this section of the highway. - Continued- 4 -A REGIONAL AND CITY DATA (CONTINUED) Highway 61 — provides the Dubuque metropolitan area with a modern four -lane connection south to Interstate 80 and beyond to southern Iowa. To the north, Highway 61 provides a scenic drive on two -lane highway through Wisconsin's western cities and towns. Highway 151 — carries business and leisure travelers on modern four -lane Highway southwest to Cedar Rapids and Interstate 380 and northeast in Wisconsin to Madison and Milwaukee. Highway 52 - offers a well- maintained two -lane highway along the great Mississippi River from Iowa into Wisconsin and Illinois. This portion of the highway is part of the nationally designated "Great River Road" national scenic highway. MAJOR BUSINESS & INDUSTRY: Top Dubuque employers include: Employer John Deere Dubuque Works Dubuque Community School District Mercy Medical Center McCoy Group, Inc. Medical Associates Clinic, P.C. Eagle Window & Door The Finley Hospital Heartland Financial USA, Inc. Flexsteel Industries, Inc. City of Dubuque Prudential Retirement Woodward Communications, Inc. Holy Family Catholic Schools Greater Dubuque Riverboat Entertainment HEALTHCARE: Hospitals /Healthcare Centers Physicians Dentists Outpatient Clinics Nursing Homes Employees 2,000 1,410 1,324 1,200 998 950 920 760 750 716 620 600 600 Co. 540 - Continued- 11 171 55 21 22 4 -B. REGIONAL AND CITY DATA (CONTINUED) EDUCATION: Colleges /Universities /Seminaries High Schools Middle Schools /Junior High Schools Elementary Schools (* includes public and parochial) RECREATION: 8 4* 4* 17* Public Parks 38 Public Tennis Courts 19 Public Golf Courses (within a 15 -mile radius) 6 Public Swimming Pools 2 Public Boat Ramps 3 Other Activities: Biking, Hiking, Boating, Bowling, Canoeing /Kayaking, Hunting, Skate Park, Downhill Skiing /Snowboarding, Cross - Country Skiing, Horseback Riding, Martial Arts, Ice Skating, Hockey, Fishing, Volleyball, Basketball, Football, Baseball, Snowmobiling, Soccer CULTURAL: Art Museum Art Galleries Art Groups /Councils Arts /Crafts Shows Aquarium Ballet Dance WEATHER: Season Spring Summer Fall Winter Festivals Libraries Live Theater Historical Museum Historical Sites Opera Symphony Average High (F) Average Low (F) 56 80 59 28 Average Annual Rainfall: 33.7" Average Annual Snowfall: 35.1" 37 60 40 12 5. NEIGHBORHOOD DATA The subject property is located southeast of the intersection of Garfield Avenue and Kniest Street, in northeast Dubuque. Garfield Avenue and Kniest Street are two -way, two -lane, asphalt paved streets. Both serve the immediate neighborhood, and neighborhoods to the northeast and northwest respectively. U.S. Highway 52 (Central Avenue and White Street) are concrete and asphalt paved, one -way, two -lane roads which are 7 and 6 blocks west of the subject, and are the nearest federal highways. The defining neighborhood boundary to the east is a significant number of rail lines, with a mixed commercial - industrial neighborhood beyond the rail lines. To the north, west, and south are mixed residential - commercial neighborhoods. Immediate neighborhood uses are mixed retail, service, warehousing, and residential. The improvements are also mixed in age, quality, and appearance, dating from the late 1800's to very recent replacement structures resulting from additions, expansions, or a change in use. The subject neighborhood remains an important mixed use area, with potential for retail and other commercial redevelopment in the future. A period of minimal redevelopment of the older commercial and industrial properties in the neighborhood is anticipated, with more potential for that transition in the long term. The outlook for the area overall, is average. Immediately below is an aerial photograph of the subject neighborhood with the subject parcel outlined in red, downloaded from the Dubuque County website. 6. SITE ANALYSIS GENERAL: The subject is a trapezoid shaped parcel containing a reported land area of 41,712 sq.ft. (0.96± acres) net of the road right of way based on the City of Dubuque Assessor's records. There is roughly 217 feet of frontage along Garfield Avenue, and the depth ranges from approximately 211 feet to 142 feet along the easternmost and westernmost boundaries respectively. The land to building ratio is 2.08:1 based on the ground floor area of the building. A copy of the aerial photo with the subject parcel outlined in red obtained from the Dubuque County website is on the next page. TOPOGRAPHY: The site is roughly at grade with the street, and is minimally sloping downward generally away from the building to the southeast. The surface drainage appears to be adequate. The subject is located in a FEMA Zone X500 (shaded), ( "Area of moderate flood hazard, usually the area between the limits of the 100 -year and 500 -year floods. Are also used to designate base floodplains of lesser hazards, such as areas protected by levees from 100 -year flood, or shallow flooding areas with average depths of less than one foot or drainage areas less than 1 square mile. "). A copy of the flood map obtained from Interflood is included in the Addenda. ZONING: The subject is currently zoned Commercial Service District, by the City of Dubuque. This classification allows numerous commercial uses including the present use numerous types of commercial uses. The retail- warehouse use is a conforming use. ACCESS: There is access via a gravel surfaced drive from Garfield Avenue. This access point is adequate for the current and anticipated alternative uses. There is sufficient area for semi - trailer trucks to turn around on the gravel surfacing to the rear of the building. UTILITIES: The subject is located within the city limits of Dubuque, and is served by all public utilities. They include electricity, telephone, natural gas, city water, and city sewer. - Continued- 6 -A. SITE ANALYSIS (CONTINUED) EASEMENTS: Other than typical utility easements, no detrimental easements or encroachments were discovered. The aerial photo with the subject parcel outlined in red, and the building improvements outline below were downloaded from the Dubuque County website. 140 82 1sBR/SLAB [10480] 50 P9 Sketch by www.camavision.corn 20 90 25 1sFR/SLA [625] 25 2sBREFULL [7500] 7. DESCRIPTION OF IMPROVEMENTS GENERAL: The subject property is improved with a 2 -story, brick frame retail /warehouse building which contains a reported 27,509 sq.ft. of total building area. Warehouse space makes up a reported 1 0,480 sq.ft. which is in above average condition. There is 7,500 sq.ft of finished retail space in very good condition. There is 7,500 sq.ft. above the retail space being used as storage. There is also a newer 1,404 sq.ft. retail area on the rear of the property. The building was reportedly built in 1890. The roof has rubber surfacing which was installed 2 -3 years ago. The entire structure is on a slab, of which the 7,500 sq.ft under the retail area was poured approximately 10 years ago to fill in the former basement. The interior of the retail area was totally remodeled approximately ten years ago along with the addition of a 625 sq.ft. office area connected to the rear of the retail area which has a wood frame and metal clad exterior. The floors of this area consist of mostly carpet with some ceramic tile. There is wood framing inside of the brick exterior walls which have approximately one foot of spray foam insulation. The ceilings have exposed joists which are painted black and supported by 9' x 9' wood beams throughout the retail area. The owner indicated that they are making an effort to slowly raise parts of the ceiling to level the second level floors for future retail use. The warehouse has concrete floors, metal clad walls, and a metal clad ceiling which is supported by steel beams. MECHANICALS: The retail area is heated by 2 rooftop HVAC units and has tubing in place for an in floor heating system, but does not have a boiler installed currently. The warehouse area is heated by four Sterling QV2 hanging garage heaters. The entire building is serviced by a 250 amp electrical service. There are two 2- fixture restrooms, one for public use and one for employees. Both the retail and warehouse areas have adequate lighting. A new exposed dry sprinkler system was installed approximately ten years ago and serves the entire building. There is also a 2,500 capacity freight elevator which has access doors to both the warehouse and retail area. SITE IMPROVEMENTS: There is a reported 800± sq.ft. of asphalt paving and approximately 20,000 ± sq.ft. of gravel surfaced parking areas and driveways. 8. HIGHEST AND BEST USE ANALYSIS DEFINITION: Highest and Best Use is defined by the Appraisal Institute in The Appraisal of Real Estate, Thirteenth Addition, c. 2008, Page 278, as: "the reasonably probable and legal use of vacant land or improved property that is legally permissible, physically possible, appropriately supported, financially feasible, and that results in the highest value." Therefore, when estimating the highest and best use of a property, four basic questions must be addressed. Is the use physically possible, is it legal, is it financially feasible, and is it maximally productive? Physical Analysis: The subject site's size, shape and topography would support a number of uses. It has the necessary access for a variety of uses, and all public utilities are available. Legal Analysis: The subject is zoned CS (Commercial Service District) by the City of Dubuque. The improvements comply with the zoning ordinance, and are currently in a legal use of the site. Feasibility: The subject is located in a mixed -use (commercial, industrial, and residential) neighborhood in northeast Dubuque (which is experiencing slow redevelopment). The property is currently in a commercial use. A continued commercial use is feasible. Maximally Productive: The improvements contribute to the overall value of the property, and are considered to be the most productive use of the site as improved. CONCLUSIONS: Based upon the analysis above, the highest and best use of the site (as vacant) is a commercial use. As improved, a commercial use is also the highest and best use of the property. 9. COST APPROACH TO VALUE COMPARABLE LAND SALES SALE SALE SALE AREA/ PRICE/ NO. ADDRESS DATE PRICE SQ.FT. SQ.FT. 430 Garfield Avenue 41,712 Dubuque, IA SUBJECT PROPERTY 1. 2061 Holiday Drive 06/22/2012 $ 435,610 43,561 $ 10.00 Dubuque, IA (SJCG) 2. Bluff Street Dubuque, IA (Franklin) 06/15/2011 $ 70,000 7,190 $ 9.74 3. 1451 White Street 05/24/2011 $ 100,000 5,120 $ 19.53 Dubuque, IA (Dubuque Bank) 4. S. Main & Jones Streets Dubuque, IA (ALB) 5. Main Street Dubuque, IA (Dubuque West Hospitality) 6. 345 East 20th Street Dubuque, IA (E 20 WD) 03/29/2010 $ 150,000 09/21/2009 $ 157,583 03/10/2008 $1,298,125 [INDIVIDUAL SUMMARIES ARE IN THE ADDENDA] 13,280 $ 11.30 20,167 $ 7.81 50,771 $ 25.57 9 -A. COST APPROACH TO VALUE (CONTINUED) METHODOLOGY: The Cost Approach to Value presumes that no prudent buyer will pay more for the subject than an amount necessary to secure equally desirable land and build a substitute facility new. Generally, a buyer will pay somewhat less than cost new depending upon the estimated "accrued depreciation" as of the date of inspection (the date of the appraisal). The first step in the Cost Approach is to value the land as though it were vacant. Then the replacement cost new of the improvements is estimated, and accrued depreciation is deducted. The land value and the estimated depreciated cost are combined, resulting in the value estimate. LAND VALUE ESTIMATE: Six comparable land sales in the Dubuque market have been summarized on the previous page. They are the most recent sales of similar vacant or parking lot tracts in the subject area (and competitive neighborhoods), which were discovered. These sales should support a reasonable value estimate for the subject. The unit of value considered pertinent in this analysis is the price / sq.ft. of land area. It is the unit most often used in valuing vacant land of the subject type, and can readily be extracted from the sales. The comparables range in size from 5,120 sq.ft. to 50,771 sq.ft. with a range in overall price from $70,000 to $1,298,125 and on a square foot basis from $7.81 /sq.ft. to $25.57/sq.ft. All of the sales were cash or conventionally financed transactions, and no financing adjustments are required. Sale #1 is a slightly irregular shaped parcel located along the west side of Holliday Drive across the street from a McDonalds Restaurant and just north of Signature Fitness (part of a strip center) and just west of Northwest Arterial in west Dubuque. The immediate area is a commercial neighborhood. The parcel is nearly level along the front % of the property and the balance of the site is steeply sloping downward. The buyers own Sedona Staffing Services and purchased the property to build a single occupant office building for their business. The comparable's sale price is $10.00/sq.ft. However, its price per usable area is roughly $14.93 /sq.ft. Overall, $10.00 /sq.ft. is much higher than is reasonable for the subject due to the comparable's far superior location. Sale #2 is a nearly rectangular shaped parcel located along the west side of Bluff Street, just north of Dodge Street (US Highway 20). It is in a mixed -use (residential /commercial) neighborhood near the southwest corner of the Downtown Dubuque Business district. A neighboring owner who previously acquired an abutting improved property (Central School) purchased this parcel for additional access for the renovated Multi - Family housing re- development of the school. The $9.74 price / sq.ft. is much higher than is warranted for the subject due to the comparable's superior location and being purchased as part of an assemblage by an adjacent owner. - Continued- 9 -B. COST APPROACH TO VALUE (CONTINUED) LAND VALUE ESTIMATE (CONTINUED): Sale #3 is a 5,120± sq.ft. parcel located just north of 14th Street (Loras Boulevard), along the west side of White Street, roughly 9 blocks southwest of the subject. The buyer bought the site (an existing parking lot) to serve as parking for a building the buyer owns at the southwest corner of White and 14th Streets. The comparable's much smaller size, it parking lot finish, and its superior location support a significantly lower value for the subject than the $19.53/sq.ft. of the comparable. Sale #4 is a gravel surfaced parking lot parcel which is located at the northeast corner of the traffic control lighted intersection of South Main and Jones Streets. It includes frontage with visibility from 4 -lane divided U.S. Highway 151/61, but no direct highway access. The neighborhood has begun transition from industrial uses historically to commercial /residential redevelopment. In the immediately preceding recorded document 2010 - 00005010, the buyer also acquired a restaurant /convenience store with gas immediately across Jones Street to the south of this parcel. This comparable is smaller in size than the subject and has a superior location. Thus, a much lower value than its $11.30 /sq.ft. is reasonable for the subject. Sale #5 is comprised of (4) contiguous irregular shaped parcels located on the north, east and south sides of the improved property at 40 Main Street at the south end of Dubuque Downtown Business District. The property owner of 40 Main Street acquired the property from the City of Dubuque for on -site parking for tenants. The combined comparable parcel is much more irregular than the subject parcel, and significantly smaller than the parcel being appraised. Overall, these are partially offsetting factors which indicate its $7.81 price /sq.ft. is similar to the the subject parcel's value. Sale #6 is located approximately 2 blocks west of the subject, and is an assemblage of 11 parcels over many years, after removal of existing improvements. It is located at the northwest corner of East 20th and Elm Streets, and was purchased to build a new Walgreen's store. A much lower price than the comparable's price / sq.ft. ($25.57) is indicated for the subject. A lower price is indicated due to the superior traffic at the comparable location, assemblage being reflected in its price, and a history of Walgreen land purchases at prices higher than typical buyers will pay. CONCLUSION: Because of the limited sales of vacant land or improved parcels being purchased for demolishing the improvements for a change in use in already developed areas, the comparables have relatively broad ranges in price /sq.ft. and size. Therefore, specific adjustments were considered, but not completed. All of the sales are superior. Overall, due to the location, topography, and size of the subject, an estimated value in the range of $7.75 /sq.ft. to $8.00 / sq.ft. is reasonable. - Continued- 9 -B. COST APPROACH TO VALUE (CONTINUED) CONCLUSION (CONTINUED): $7.75 / sq.ft. x 41,712 sq.ft. = $323,268 $8.00 / sq.ft. x 41,712 sq.ft. = $333,696 The land value estimate is rounded to $325,000 MARKET VALUE ESTIMATE BY THE COST APPROACH TO VALUE (LAND ONLY) $ 325,000 10. SALES COMPARISON APPROACH TO VALUE IMPROVED COMPARABLE SALES SALE SALE SALE AREA/ PRICE/ NO. ADDRESS DATE PRICE SQ.FT. SQ.FT. 430 Gafield Avenue 20,009 Dubuque, IA 27,509 (Subject) 1. 245 West 1st Street 12/27/2012 $ 400,000 5,455 $ 73.33 Dubuque, IA 12,910 $ 30.98 (Platinum) 2. 4099 McDonald Drive 01/24/2012 $ 650,000 11,830 $ 54.95 Dubuque, IA (SRJ) 3. 2225 Kerper Boulevard 03/13/2011 $ 500,000 31,125 $ 16.06 Dubuque, IA (CRDS) 4. 299 Main Street 06/30/2010 $ 1,731,638 7,296 $237.34 Dubuque, IA 29,184 $ 59.34 (73 CHS) 5. 44 Main Street 12/29/2009 $ 600,000 7,500 $ 80.00 Dubuque, IA 22,500 $ 26.67 (Junnie & Rich's) [INDIVIDUAL SUMMARIES ARE IN THE ADDENDA] 10 -A. SALES COMPARISON APPROACH TO VALUE METHODOLOGY: The Sales Comparison Approach to Value presumes that no prudent buyer would pay more for the subject than an amount necessary to acquire an equal substitute, assuming no undue delay. Thus, sales of similar properties are pertinent in the valuation process. COMPARABLE SALES ANALYSIS: On the previous page is a summary of five of the most similar recent sales of commercial and warehouse properties discovered in the Dubuque market. The unit of value considered most applicable is the price / sq.ft. of ground floor building area, which is the common denominator most often used for these types of properties. The sales range in size from 5,455 to 31,125 sq.ft., with overall sale prices ranging from $400,000 to $1,731,638. On a per square foot basis, the indicated range is $16.06 to $237.34. All of the sales were cash or conventionally financed, and no adjustments for terms are needed except as described in the discussions below. There is also no basis for making time adjustments. Immediately below is a discussion of the comparable sales. Sale #1 is located at the northeast corner of West 1st and Locust Streets, in the south sector of Downtown Dubuque. The area immediately to the east of the property along Main Street has been undergoing significant re- development for more than a decade. The two -story and three - story sections of the building have most recently been used for retail purposes on the ground floor, the second and third floors are reported to be unfinished. The buyer owns other property in the immediate area and purchased the property to demolish it to create a parking lot. The comparable's $73.33/sq.ft. price is much higher than is warranted for the subject due to the comparable's superior location and smaller size, in spite of its far inferior condition. Considering price / sq.ft. of total building area above grade, the comparable's $30.98 / sq.ft. is modestly higher than is indicated for the total building area of the subject. Sales #2 is located along the northerly side of McDonald Drive in the northeast quadrant of the intersection of US Highway 20 and Northwest Arterial in extreme west Dubuque. Access from the highway and the arterial is indirect. The parcel is improved with an 11,830 sq.ft., 1 -story, steel frame, metal clad building. A survey was done in 2007 which indicates the land size at 38,473 sq.ft. The buyers have proposed renovations to the property that will consist of splitting the building into 3 suites. One suite is intended to be owner occupied with the two additional suites being available to rent to other tenants. An estimated $190,000 is planned by the buyers to be spent on renovations. With the planned improvements, the total investment by the buyer will be $840,000, or $71.01 / sq.ft. The comparable's superior location and smaller size warrant a lower value for the subject than the comparable's price / sq.ft. ($54.95). - Continued- 10 -B. SALES COMPARISON APPROACH TO VALUE (CONTINUED) COMPARABLE AND SALES ANALYSIS (CONTINUED): Sale #3 is located along the northwest side of Kerper Boulevard just north of its intersection with Fengler Street. It is improved with a 1- story, poured concrete building (30,000 sq.ft.) with a concrete block office section (1,125 sq.ft.). The building was last occupied by Unique Balance. Prior to its being sold, the building was vacant for approximately 3 years, and was in poor condition at the time of sale, with significant deferred maintenance. The lot has approximately 32' of frontage along Kerper Boulevard, has a very irregular, inefficient shape, and poor circulation. The building has limited visibility from the street due to improvements on adjacent parcels. The property was purchased to relocate Dubuque Window and Door Company, an existing local business. A rail line and a rail spur are immediately west and north of the property respectively. Its $16.06 / sq.ft. sale price is significantly lower than is reasonable for the subject due to the comparable's inferior location, far inferior condition, and its larger size. Sale #4 is located at the southwest corner of Main and 3rd Streets, in south downtown Dubuque, roughly 2 blocks west of the redeveloped north Ice Harbor area, a major tourist attraction in the city, with the Mississippi River farther to the east. It is also amid the redeveloped Main Street area which extends south several blocks and north to 17th Street. The buyer intends to re -open the restaurant and bar - micro - brewery on the ground floor and basement respectively, and renovate the upper floors into apartments. The basement includes area under the sidewalk, and is reported to be 7,700 sq.ft. Much of the historic preservation work required for historic tax credits had already been completed by a prior owner. Significant area on the upper floors was unfinished at the time of sale. The purchase price included personal property which contributed roughly $200,000 to the purchase price. This is the only sale of an older downtown building which had been partially significantly remodeled prior to the sale. It was purchased for $1,731,648, or $237.34/sq.ft. After adjusting for the personal property, the effective price / sq.ft. of ground floor area is $209.93. The comparable's price is far higher than is warranted for the subject due to the comparable's far superior location, its more significant remodeling for a higher intensity use on two levels, in spite of its lower land to building ratio. The comparable's price / sq.ft. of total building area above grade ($59.34) is significantly higher than is reasonable for the subject. Sale #5 is located just north of the northeast corner of Main and Jones Streets, in extreme south downtown Dubuque, immediately west of U.S. Highway 151, and 52, and immediately south of the highway link to U.S. Highway 20. Just to the northeast, across U.S. Highway 151, and 52 is the redeveloped north Ice Harbor area, a major tourist attraction in the city, with the Mississippi River farther to the east. There is a foot bridge over the highway link to the north which serves as a foot traffic link between the park across Main Street to the west of the comparable and the redeveloped Main Street area which extends north to 17th Street. There is an attached building to the south which is owned by a related party, and parking for the comparable is limited. The buyer intends to renovate the property into apartments on the top - Continued- 10 -C. SALES COMPARISON APPROACH TO VALUE (CONTINUED) COMPARABLE AND SALES ANALYSIS (CONTINUED): two floors with commercial uses on the ground floor. The comparable's price / sq.ft. of ground floor area ($80.00) is much higher than is warranted for the subject due to the comparable's superior location, in spite of its inferior condition, and lower land to building ratio. The comparable's $26.67 /sq.ft. of total building area above grade, is slightly lower than a good indicator of the value of the subject. CONCLUSIONS: A grid which summarizes adjustments based on the differences discussed above was considered, but required very large adjustments for large differences which are difficult to support. What is clear is that the significantly remodeled building (Sale #4) sold for a much higher price / sq.ft. than the other properties. Thus, Sale #4 supports an expectation that the significantly remodeled subject property's condition is a very important factor in estimating its value. However, Sale #4's far superior location and being more significantly remodeled for a higher intensity use on two levels are strong indicators which warrant a much lower value for the subject. Sale #2 is newer, smaller, and has exposure to the traffic along US Highway 20 (Dodge Street), which indicate a lower value is reasonable for the subject. Sale #3 is clearly inferior, and Sale #5 is given less weight because it was influenced by being part of an assemblage. Because the subject is significantly remodeled, its condition is an important factor to be included in its value estimate. The range of the comparables' price / sq.ft. is from $16.06 to $237.34/sq.ft. Considering the location, size, age, condition, and other characteristics of the subject, its value is estimated to be $39.00 / sq.ft. of ground floor area. $39.00 /sq.ft. x 20,009 sq.ft. = $780,351 The value estimate is rounded to $780,000. MARKET VALUE ESTIMATE BY THE SALES COMPARISON APPROACH TO VALUE $ 780,000 11. INCOME APPROACH TO VALUE METHODOLOGY: The Income Approach to Value presumes that no prudent buyer will pay more for the subject than the capitalized rental value of the property (net present value), based upon the buyer's analysis of the income and expenses as they should relate to the future benefits of ownership. The buyer would only be willing to pay the present value of what he or she perceives those benefits to be. DISCUSSION: Stand alone buildings like the subject are typically owner occupied, and not leased. There were not enough comparable leases available to estimate a credible rent for the subject. Therefore, this approach was considered, but was not fully developed. 12. CORRELATION AND FINAL VALUE ESTIMATE COST APPROACH TO VALUE $ 325,000 SALES COMPARISON APPROACH TO VALUE $ 780,000 INCOME APPROACH TO VALUE N/A Only one of the approaches was fully developed. The Cost Approach to Value is generally considered the least reliable, and the age of the property reduces its reliability. Therefore, this approach was developed through a land value only using five comparable land sales in the market. The Sales Comparison Approach to Value is generally a meaningful approach to use in estimating the value of most types of properties. Five comparable sales were analyzed. After considering the differences, a per square foot value was applied to the ground floor building area, and a value conclusion was supported. The Income Approach to Value is a useful method of estimating the value of income producing properties. However, this approach was not developed for the subject property due to inadequate comparable leases from which to develop a credible rent estimate. In the final analysis, the Sales Comparison Approach has been given all of the weight. Therefore, based upon the preceding analysis, it is my opinion that the Market Value of the Fee Simple Interest in the property, as of February 4, 2013 is: MARKET VALUE LAND $325,000 IMPROVEMENTS $455,000 TOTAL $780,000 SEVEN HUNDRED EIGHTY THOUSAND DOLLARS Respectfully submitted, KANE APPRAISAL SERVICES Thomas F. Howe General Real Property Appraiser - Iowa #CG01320 13. CERTIFICATION I certify that, to the best of my knowledge and belief .. . - The statements of fact contained in this report are true and correct. - The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial and unbiased professional analyses, opinions, and conclusions. - I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest with respect to the parties involved. - I have performed no services as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three -year period immediately preceding acceptance of this assignment. - I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. - My engagement in this assignment was not contingent upon developing or reporting predetermined results. - 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. - My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (2012- 2013). - I have made a personal inspection of the property that is the subject of this report. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. - As of the date of this report, I have completed the requirements under the continuing education program of the State of IOWA and the Standards and Ethics Education Requirement of the Appraisal Institute for Associate Members. - No one other than Karl Dolter provided significant real property appraisal assistance to the person signing this certification. At the appraiser's direction, Karl Dolter has provided significant assistance to the appraiser. Mr. Dolter viewed and assisted in photographing the property with the appraiser, and prepared the initial draft of the description of improvements. In addition, Mr. Dolter helped in proofreading, downloaded the flood map, and copied the comparable land and improved sales sheets, and inserted these documents into the report. Mr. Dolter did not participate in the value analysis or preparation of the value conclusions in the appraisal process or as reported in the report - The report analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. February 8, 2013, Respectfully submitted, KANE APPRAISAL SERVICES Thomas F. Howe General Real Property Appraiser - Iowa #CG01320 14. CONTINGENT AND LIMITING CONDITIONS The legal description, which has been furnished by others, is assumed to be accurate, but no responsibility is assumed for its correctness. The report rendered herein is based on the premise that the property is free and clear of mortgage indebtedness unless specifically stated otherwise, and that there are no special assessments against the property. No report of title is rendered herewith, and it is considered good for purposes of this report. It is further assumed by the appraiser that all leases and lease amendments which have been furnished the appraiser are correct and accurate. If this is not the case, all values contained herein are voided. Any sketches in this report are included to assist the reader in visualizing the property. No survey of the property has been made by the appraiser and no responsibility for its accuracy is assumed. Lacking any contrary evidence, subsurface soil conditions are assumed to be adequate to support the existing or proposed improvements. The commercial retail- warehouse improvements are assumed to be within the lot lines and in accordance with all local zoning and building ordinances. It is also assumed that no asbestos, or any other hazardous materials are located in the structure, or the site. Possession of this report does not carry with it the right of publication, nor may it, or any part thereof, be used by anyone but the client without the previous express written consent of the appraiser. The appraiser shall not be required to give testimony or appear in court with reference to the appraisal of the property described herein, unless prior arrangements have been made. Although reasonable attempts have been made to obtain corroborative evidence, information supplied to the appraiser by the client is assumed to be basically correct and heavy reliance has been placed upon this information. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, or other media, without the written consent and approval of the author, particularly as to the valuation conclusions, the identity of the appraiser or firm for which he is connected, or any reference to the APPRAISAL INSTITUTE. This appraisal report has been made in conformity with, and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute. This is an Appraisal in Summary Report format, and is intended to comply with the reporting requirements set forth under Standards Rule 2 -2 (b) of the Uniform Standards of Professional Appraisal Practice 2012 -2013. ADDENDA 11(Kmn certnEdAppraNals Envircinirimulliwomneiss Appra Servioes LOSE. Ykit Freddt Ihm! iuIQfl mimeo.% FA VMS am 0E) ME. 211E11 G JS Psihoyos City Engineer City of Dubuque SD West13111 Street Dubuq Iowa 520101 Telephone: 563.589.4270 amolneara,:livordubuque.orl cc rtirnerAcitifofelubucue.orcl F-ebruary 1, 24Y.3 Re: Engagement Ielter for the AppreieeI ef the Market Value uf the kleuer properties (422 end 430 Garfield Avenue, Dubuque)., Dear Mr. R'RihoyDR: You nme requested a hid for prrair.HIR rand rE113041A tf II 'a above, refergitoad ProPerfies to be in oanfomianoe witi the Uniform Standards nt P-ct essicril Apprai1 Pod/ice (USPAP 2012-2013) The City of Dubuque is the intenders ttser of the Summary AporelEal Repuri.s, Tha r.aports will be prepared for use as documentation for decisions related t3 the puleal. al auquisiliori Di the too properties. am providing this engagement letter for your signatire. The oost to ra iriP pte__ ....urrirnary Aptruisul Reports written to LISPAP 2012-2013 standards will be $8,500.010. Engece.ment is to he vie ignaci WO' Of ihI aw, 'The appraisal reports can be completed by Friday. Febnuary 8, 2013, witi the receipt a the signed c.ppy t#f this eritiasOrnent letter today, February 1, 201 a . Please email me er.jmigtaullasam, or call me et (51n) 5-50-20313 if you have any questions. I ogloo to LIi. above and„.authprize you to promed as indented. () I 1 CAA hops, Cliy eng Respectfully submitted: KANE APPRAISAL SERVICES = „,e/ deemetA, v • Thwas F. Howe GetiEre Re31 Property Appraleer - ba NCGD 1320 • Date REAL ESTATE XAR ER 335.2o YW thy Pynn 'Sydow pi .:coaocn q -5-02 $1.pubu .* PAT (=NTT KLIVa 6554-02 2002 APR -5 AM 8: 30 NA ry iLYWci COUNTY riEC08DE DUBUQUE CO., IRA FEES Prepared by Brian J. Kane, KANE, NORBY & REDDICK, P.C., 2100 Asbury Road, Suite 2, Dubuque, IA 52002 563/582 -7980 Address Tax Statement: Mr. Robert F. Klauer, 481 W. Locust Street, Dubuque, IA 52001 00 Space Above This Line for Recorder WARRANTY DEED For the consideration of One Dollar ($1.00) and other valuable consideration, ROBERTJ WALSER and REBECCA A. WALSER, husband and wife, do hereby Cutivey to ROBERT F. KLAUER, the following described real estate in Dubuque County, Iowa: Lot 1 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106, Lot 2 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106, Lot 3 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106. Grantors do Hereby Covenant with Grantees and successors in interest that Grantors hold the real estate by title in fee simple; that they have good and lawful authority to sell and convey the real estate; that the real estate is Free and Clear of all Liens and Encumbrances except as may be above stated; and Grantors covenant to Warrant and Defend the real estate against the lawful claims of all persons except as may be above stated. Each of the undersigned hereby relinquishes all rights of dower, homestead and distributive share in and to the real estate. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and as masculine or feminine gender, according to the context. Dated: 4 , 2002. ROBERT J. ALSER REBECCA A. WALSER STATE OF IOWA ) COUNTY OF DUBUQUE ) ss: On this 1%k day of /trip! L , 2002, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared ROBERT J. WALSER and REBECCA A. WALSER, husband and wife, to me known to be the persons named in and who executed the foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed. = JAMES E. GROSS Commission Numb 7 1171 �My Comm. Exp. l//�fp3 ary Public in or State of Iowa File Number: 2002 - 00006554 Seri: 1 2/6/13 InterFlood - List Flood Maps InterFlood Instant flood maps and data Flood data Real Stories Buy Get Maps My Account Questions a la moue USPS Address: 430 Garfield Ave Dubuque IA 52001 -3552 Community Name: DUBUQUE CITY OF Community #: 5180 County: Dubuque Census Tract: 19061 - 0005.00 Flood Zone: X500 Here's your flood map(s) Flood map color options InterFlood has access to over 111,000 current FEMA flood maps. And with most (not all), you can customize their color, which makes them more appealing and highlights their zones. Current Color: ,a4 ZONE ,--;\(/ CHANGE COLOR Since its possible for a property to be located on more than one flood map (tell me why), you may see more than one link below. In most cases, the first link will be the best map. When you click a link, the corresponding flood map will be displayed. Flood Map #1 for 430 Garfield Ave Map Panel: 19061CO243E - Map Date: 10/18/2011 a: a la mode, inc. jh. :.'90-2f a la mode on Twitter a la mode fan on Facebook Terms of Use https: //www. i nterfl ood.comil i stmaps.aspalon =- 90.6644058227539 &I at= 42.5127105712891 &address = 430+ Garfield +A,e&C i ty= D ubuq ue&state= IA&zi p= 52001 -35... 1/1 Address: 2061 Holliday Drive City: Dubuque State: IA County: Dubuque Township: Dubuque Comparable Land Sale 1 Record Number: 869 Type of Property: Vacant Land Legal Description: Lot 1 of Lot 6 of Holliday 3rd Addition Sale Price: $435,610 Instrument: Warranty Deed Sale Date: June 22, 2012 Deed Book: 2012 - 00010763 Land Area: 1.000 AC or 43,561 SF Grantee: SJCG Properties, L.L.C. Grantor: WBBW Holliday Development, L.L.C. Verified: Public Record, Diane (Sedona staff) Development Potential: Average Road Surface: 2- Lane, 2 Way Asphalt Zoning: C -3 Topography: Minimally to Steeply Sloping Utilities: All Public Assessor Parcel: 1020279011 Date Inspected: 07/11/2012 Prices /SF $ 10.00 Price Per Acre: $ $435,610 Remarks: This is a slightly irregular shaped parcel located along the west side of Holliday Drive across the street from a McDonalds Restaurant and just north of Signature Fitness (part of a strip center) and just west of Northwest Arterial in west Dubuque. The immediate area is a commercial neighborhood. The parcel is nearly level along the front % of the property and the balance of the site is steeply sloping downward. The buyers own Sedona Staffing Services and purchased the property to build a single occupant office building for their business. Comparable Land Sale 2 Record Number: 768 Address: Bluff Street City: Dubuque State: IA County: Dubuque Township: Dubuque Sale Price: $70,000 Sale Date: June 15, 2011 Land Area: 0.165 AC or 7,190 SF Grantee: Franklin Investments, LLC Grantor: Michael J. Coty Verified: Grantee, Public Record, Attorney Development Potential: Average Road Surface: 2 -Lane Asphalt Zoning: OR Topography: Slightly Sloping Utilities: Public Water /Sewer Type of Property: Residential /Commercial Legal Description: Lengthy Instrument: Warranty Deed Deed Book: 11- 00008438 Assessor Parcel: 1025260021 Photographed: 01/31/2013 Date Inspected: 01/31/2013 Prices /SF: $ 9.74 Price Per Acre: $ 424,089 Remarks: This is a nearly rectangular shaped parcel located along the west side of Bluff Street at its intersection with West 1st Street, just north of Dodge Street (US Highway 20). It is in a mixed -use (residential /commercial) neighborhood near the southwest corner of the Downtown Dubuque Business district. The abutting improved former school property (Central School) had previously been acquired for re- development as multi - family housing. The owner of the school also purchased this parcel. The buyer indicated that he wanted to control this parcel for additional access and for the potential it added to what he already owned, which includes excess land beyond what is needed for the redevelopment of the school. The buyer had no specific redevelopment plans for the excess land at the time of the purchase of this parcel. Comparable Land Sale 3 Listing ID Address: 1451 White Street City: Dubuque State: Iowa County: Dubuque Township: Dubuque Sale Price: $100,000 Sale Date: 05/24/2011 Land Area: 5,120± sq.ft. (0.118 acres) Grantee: K & L Properties of Iowa, LLC Grantor: Dubuque Bank & Trust Company Development Potential: Average Street: Asphalt paved Zoning: C -4 Topography: Nearly Level Verified: Grantee (Nelson Klavitter) Utilities: All Public Type of Property Land improved with a parking lot Legal Description: Middle 1/5 of City Lot 432 Instrument: Warranty Deed Record: 2011-00007475 Assessor Parcel: 1024408013 Terms: Cash Date Inspected: 06/24/2011 Price /SF: $ 19.53 Price Per Acre: $ 847,458 Remarks: This is a rectangular parcel which is located along the west side of White Street between East 14th and East 15th Streets, in east central Dubuque. It is improved with an 18 stall asphalt paved parking lot which was in good condition at the time of sale. The buyer, an adjacent property owner, had been renting the parcel for many years, and was paying $18 /stall /month for roughly 2 years. The property was purchased for a continued parking lot use. The price per stall is $5,556. Address: S. Main & Jones St. City: Dubuque State: IA County: Dubuque Township: Dubuque Sale Price: $150,000 Sale Date: April 29, 2010 Land Area: 13,280 SF or 0.305 AC Grantee: ALB, LLC Grantor: Arcon Inc. Verified: Public Record Development Potential: Good Road Surface: Paved Concrete Zoning: C -3 Topography: Level Utilities: Public /Private Comparable Land Sale 4 Record Number: 137 Type of Property: Commercial Development Legal Description: W 93' Lt 2, Bal W 93' Lt 3 & E 20' Lts 2 & 3& Lt2B All InW1 /2 Blk 10 DBQ H Instrument: Warranty Deed Document: 2010- 00005011 Assessor Parcel: 1025429014 Terms: Cash Date Inspected: 12/10/2010 Prices /SF $ 11.30 Price Per Acre: $ 492,228 Remarks: This parcel a vacant parcel which is located at the northeast corner of the traffic control lighted intersection of South Main and Jones Streets. It includes frontage with visibility from 4 lane divided U.S. Highway 151/61, but no direct highway access. The neighborhood has begun transition from industrial uses historically to commercial /residential redevelopment. In the immediately preceding recorded document 2010 - 00005010, the buyer also acquired a restaurant/convenience store with gas immediately across Jones Street to the south of this parcel. Address: 40 -48 Main Street City: Dubuque State: IA County: Dubuque Township: Sale Price: $157,583 Sale Date: September 21, 2009 Land Area: 0.463 AC or 20,167 SF Comparable Land Sale 5 Record Number: 150 Type of Property: Commercial Legal Description: Lengthy Grantee: 40 Main, LLC Grantor: City of Dubuque Verified: Grantee (Chris Miller), Public Record Development Potential: Average Road Surface: Paved Concrete Zoning: C -4 Topography: Nearly Level Utilities: All Public Instrument: Contract * $1.00 down Assessor Parcel: 1025290019,1025290020, 1025290022,1025290023 Terms: * balance by 11/01/2015 Date Inspected: 11/11 Prices /SF: $ 7.81 Price Per Acre: $ 340,372 Remarks: This is four irregular shaped parcels which surround three sides of an existing structure which is located along the east side of Main Street, in extreme southeast Dubuque. It was purchased by the adjoining land owner to be developed as additional parking for the commercial and residential use of the building which is being rehabilitated. The buyer cannot "... construct improvements on or over any easement area without an approved site plan and the prior written approval of the City Engineer." Comparable Land Sale 6 Record Number: 1337 Address: 345 East 20th Street City: Dubuque State: Iowa County: Dubuque Township: Dubuque Sale Price: $1,298,125 Sale Date: 3/10/2008 Land Area. 50,771 sq.ft. or 1.166 acres Grantee: E20 WD, L.L.C. Grantor: Gronen Properties, L.L.C. Development Potential: Good Street Paved Asphalt Zoning: C -2 Neighborhood Shopping Topography: Nearly Level Verified: Grantor (John Gronen), Public Records Utilities: Public Type of Property Commercial Legal Description: Lengthy Instrument: Warranty Deed Record: 2008 -3293 Assessor Parcel: 10-24-215-010, 011, 012,013,018, 019,020,021,022,023,027 Terms: Cash/Conventional Price/SF: $ 25.57 Price Per Acre: $ 1,089,743 Date inspected: 03/05/2010 Remarks: This vacant parcel consists of 11 parcels assembled over many years, and sold after the existing improvements were removed. It is located at the northwest corner of East 20th and Elm Streets at an intersection referred to a 5- Points. This property was purchased to build a new Walgreens store. Improved Comparable Sale 1 Address: 245 W. 1st Street City: Dubuque State: IA County: Dubuque Township: Assessor Parcel: 10 -25- 281 -017 Legal Description: City Lot 81 245 -265 W. 1st Street Instrument: Warranty Deed Deed Book: 2012 -23639 Grantor: Wells, William M. Grantee: Platinum Supplemental Insurance Inc. Verified: Public Record Land Area: 0.170 AC or [BDUserField2l] SF Record Number: 990 Type of Property: Retail / Under 10,000 SF Sale Price: $400,000 Sale Date: December 27, 2012 LIB Ratio: Price /SF /Land : Price /SF /Ground Floor Area : $30.98 Price /SF /Total Building Area : $73.33 Building Type: 3 -Stroy Building Condition: Ground Floor /SF: Building Area/SF: [BDUserFieldll] Building Age: Basement: Full Unfinished Utilities: Public Water /Sewer Access: Average Zoning: C -4 Remarks: Store /Retail. Subject upper floors approximately 4,000 /SFis unfinished . Main Floor operating at retail. Improved Comparable Sale 2 Record Number: 633 Address: 4099 McDonald Drive City: Dubuque State: IA County: Dubuque Township: Dubuque Assessor Parcel: 1028302005 Legal Description: Lot 1 Ward West Plaza Instrument: Special Warranty Deed Deed Book: 2012- 00003109 Grantor: Klac Rex, LLC Grantee: SRJ Properties, LLC Verified: Grantee, Public Record, Appraiser Land Area: 0.883 AC or 38,473 SF Type of Property: Retail / More Than 10,000 SF Sale Price: $650,000 Sale Date: January 24, 2012 LIB Ratio: 3.2:1 Price /SF /Land: $16.89 Price /SF /Ground Floor Area : $54.95 Price /SF /Total Building Area : $54.95 Building Type: 1 Story Steel Building Condition: Average Ground Floor /SF: 11,830 Building Area /SF: 11,830 SF Building Age: 1995 Basement: None Utilities: Public Water /Sewer Access: Direct At Grade Zoning: C -3 Remarks: The subject property is located along the northerly side of McDonald Drive in the northeast quadrant of the intersection of US Highway 20 and Northwest Arterial in extreme west Dubuque. Access from the highway and the arterial is indirect. The parcel is improved with a 11,830 sq.ft., 1 -story, steel frame, metal clad building. A survey was done in 2007 which indicates the land size at 38,473 sq.ft. The buyers have proposed renovations to the property that will consist of splitting the building into 3 suites. One suite is intended to be wner occupied with the two additional suited being available to rent to other tenants. An estimated $190,000 is planned by the buyers to be spent on renovations. VENIRE'S lir Improved Comparable Sale 3 Address: 2225 Kerper Boulevard City: Dubuque State: IA County: Dubuque Township: Assessor Parcel: 11 -18- 313 -001 Legal Description: Lengthy Instrument: Warranty Deed Deed Book: Grantor: So. Fourth Pacific Rim Finance Limited Grantee: CRDS Development LLC Verified: Public Record Land Area: 1.320 AC or 57,499 SF SF Remarks: This building was last occupied approximietly 3 years. The building was in building was purchased to be occupied by Record Number: 501 Type of Property: Industrial / Manufacturing Sale Price: $500,000 Sale Date: April 13, 2011 LIB Ratio: 1.85 :1 PriceISF /Land : Price /SF /Ground Floor Area : $16.06 Price /SF /Total Building Area : $16.06 Building Type: Industrial Building Condition: Poor Ground Floor /SF: 31.125 SF Building Area/SF: 31,125 SF Building Age: 1968 Basement: None Utilities: All Public Access: Good Zoning: H -I by Unique Balance. Prior to this sale, the building was vacant for poor condition at the time of sale, with signifcant differed maintenance. The Dubuque Sash and Door. h;ll'i; / tii l�l,'I)NI� Improved Comparable Sale 4 Record Number: Address: 299 Main Street City: Dubuque State: Iowa County: Dubuque Grantee: 73 CHS Forwards, L.L.C. Grantor: Dubuque Bank & Trust Company Legal Description: Lot 73 except the southerly 3 inches. Building Type: 4 -Story Brick Building Condition: Good to Average Land Area: 7,330 sq.ft. or 0.168 Acres Ground Floor: 7,296 sq.ft. Building Area: 29,184 sq.ft. Building Age: 1900 Basement: Full plus under sidewalk Utilities: All Public Access: Average Verified: Grantee, building drawings, Public Records Zoning: C -4 Type of Property Restaurant /Bar /Reception Sale Price: $1,731,648 Sale Date: 06/30/2010 Instrument: Warranty Deed Record: 2010- 00009411 Assessor Parcel: 1025276007 L/B Ratio: 1.00:1 Price /SF /Land: $ 236.24 Price /SF /Ground Floor Area: $ 237.34 Price /SF /Total Building Area: $ 59.34 Remarks: The property is located at the southwest corner of Main and 3rd Streets, in south downtown Dubuque, roughly 2 blocks west of the redeveloped north Ice Harbor area, a major tourist attraction in the city, with the Mississippi River farther to the east. It is also amid the redeveloped Main Street area which extends south several blocks and north to 17th Street. The buyer intends to re -open the restaurant and bar - micro - brewery on the ground floor and basement respectively, and renovate the upper floors into apartments. The basement includes area under the sidewalk, and is reported to be 7,700 sq.ft. Much of the historic preservation work required for historic tax credits had already been completed by a prior owner. Significant area on the upper floors was unfinished at the time of sale. The purchase price included personal property which contributed roughly $200,000 to the purchase price. • Improved Comparable Sale 5 Record Number: 862 Address: 44 Main St City: Dubuque State: IA County: Dubuque Township: Assessor Parcel: 1025290009 Legal Description: Lots 12, 13, 14, and 15, W1/2 Block 1, Dubuque Harbor's Company Addition Instrument: Warranty Deed Deed Book: Grantor: Flat Iron Development, L.L.C. Grantee: 44 Main, LLC Verified: Grantee, Public Record Land Area: 0.291 AC or 12,661 SF Type of Property: Warehouse / Under 30,000 SF Sale Price: $600,000 Sale Date: December 29, 2009 LIB Ratio: 1.69:1 Price/SF /Land : $47 Price/SF /Ground Floor Area : $80.00 of Price/SF /Total Building Area : $26.67 Building Type: 3 -Story Brick Building Condition: Ground Floor /SF: Building Area /SF: 22,500 Building Age: 1900 Basement: Full Utilities: All Public Access: Average Zoning: Remarks: The property is located just north of the northeast corner of Main and Jones Streets, in extreme south downtown Dubuque, immediately west of U.S. Highway 151, and 52, and immediately south of the highway link to U.S. Highway 20. Just to the northeast, across U.S. Highway 151, and 52 is the redeveloped north Ice Harbor area, a major tourist attraction in the city, with the Mississippi River farther to the east. There is a foot bridge over the highway link to the north which serves as a foot traffic link between the park across Main Street to the west of the comparable and the redeveloped Main Street area which extends north to 17th Street. There is an attached building to the south which is owned by a related party, and parking for the comparable is limited. The buyer intends to renovate the property into apartments on the top 2 floors with commercial uses on the ground floor. THOMAS F. HOWE EDUCATION: Loras College, Dubuque, IA; BA Sociology, 1968. USMC, Viet Nam, 1968 -1970 University of Iowa, Iowa City, Iowa, undergraduate and graduate studies, 1970 -71. Illinois State University, Bloomington, IL; Graduate Assistant, Sociology, 1971 -72. APPRAISAL EDUCATION: Society of Real Estate Appraisers: 101: An Introduction to Appraising Real Property /Principals, 1977 R2: Narrative Report Writing and Applications of Principles, 1978 4. Principles of Income Property Appraising, 1981 Appraisal Institute: Standards of Professional Practice Part A, 1991 Parts A & B, 1994 Part C, 2001 Updates (as required - most recent in 2012) Numerous courses and seminars, including 28 to 56 classroom credit hours bi- annually since 1991. CERTIFICATIONS, OFFICES HELD: General Real Property Appraiser, Iowa, #CG01320, since 1992 Certified General Real Estate Appraiser, Illinois, #533.002192, since 2012 Associate, Appraisal Institute Iowa Real Estate Broker, 1986 REALTOR - Broker, Dubuque Board of Realtors, 1986- Present. REALTOR - Salesperson, Dubuque Board of Realtors, 1976 -77 Iowa Real Estate Salesperson, 1976 Secretary, Cedar Valley Chapter, Society of Real Estate Appraisers, 1979 -1986 EXPERIENCE: Chief Appraiser, Kane Appraisal Services 2006 - Present Significant litigation related work (acquisitions, easements), estate related, asset distribution Associate Appraiser, Roy R. Fisher, Inc. 1998 - 2006 Industrial, Retail, Office, Medical Office, Road Improvement Acquisition, Restaurant, Land, Subdivision Development, Bank, Church, Auto Service, Auto Dealership, Farm Implement Dealership, Post Office, Nursing Home, YMCA -YWCA, School, Library, Weather Service Station, River frontage property, Life Estate, Compensation Commission Testimony, District Court Testimony Howe Appraisal, 1989 - 1998 Residential and Commercial Appraisal, Court Testimony Harvest Savings Bank (formerly Dubuque Savings & Loan Association), 1977 — 1989 Created, developed, and managed appraisal services for the bank, serving eastern Iowa, northwest Illinois, and southwest Wisconsin. Real Estate Sales, 1976 -1977 Fields of Opportunities STATE OF IOWA IOWA DEPARTMENT OF COMMERCE PROFESSIONAL LICENSING AND REGULATION THIS IS TO CERTIFY THAT THE BELOW NAMED HAS BEEN GRANTED A CERTIFICATE AS A GENERAL REAL PROPERTY APPRAISER CERTIFICATE NO. CG01320 EXPIRES: 6/30/2014 HOWE, THOMAS F KANE APPRAISAL SERVICES 14858 W RIDGE LANE, #8 DUBUQUE, IA 52003 APPRAISAL OF THE MARKET VALUE OF THE ROBERT F. KLAUER PROPERTY 430 GARFIELD AVENUE DUBUQUE, IOWA AS OF: FEBRUARY 4, 2013 PREPARED FOR: GUS PSIHOYOS, CITY ENGINEER CITY OF DUBUQUE 50 WEST 13TH STREET DUBUQUE, IA 52001 PREPARED BY: THOMAS F. HOWE KANE APPRAISAL SERVICES 14858 W RIDGE LANE, SUITE #8 DUBUQUE, IOWA 52003 563 -556 -2068 thowe(c�vousq.net 02/01/2013 <13 -114B> e+1 (Mai n 49 Appraisal Services Gus Psihoyos City Engineer City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 563.589.1470 enqineer @cityofdubuque.org Dear Mr. Psihoyos: Certified Appraisals Environmental Assessments 14858 West Ridge Lane Suite 8 Dubuque, IA 52003 -9639 1563) 556 -2068 February 8, 2013 Re: The appraisal of Market Value of the Robert F. Klauer property, 430 Garfield Avenue, Dubuque, Iowa, 52001. File 13-114B You requested an appraisal of the Market Value of the above mentioned property after the acquisition of a portion of the land and elimination of part of the existing improvements. I have completed the appraisal, and its report follows. This report is a Summary Appraisal Report in conformance with the Uniform Standards of Professional Appraisal Practice 2012 -2013. This report explains and supports my opinion of the value of the subject, and was prepared after an inspection (viewing) of the site and improvements, and an analysis of Cost (land only) and sales comparison, as well as other pertinent factors. As a result of my investigation, and based upon the analysis of the following data, it is my opinion that the current Market Value of the Fee Simple Interest in the property as of February 4, 2013, is as follows: MARKET VALUE LAND $240,000 IMPROVEMENTS $140,000 TOTAL $380,000 THREE HUNDRED EIGHTY THOUSAND DOLLARS The value estimate is hypothetical, as if the proposed modifications were completed as of February 4, 2013. Respectfully submitted, KANE APPRAISAL SERVICES Thomas F. Howe General Real Property Appraiser - Iowa #CG01320 TABLE OF CONTENTS Letter of Transmittal Table of Contents Photographs of Subject Property 1. Statement of the Appraisal Problem 2. Salient Facts Summary, Legal Description 3. Regional and City Data 4. Neighborhood Data 5. Site Analysis 6. Description of Improvements 7. Highest and Best Use Analysis 8. Cost Approach to Value. 9. Sales Comparison Approach to Value 10. Income Approach to Value 11. Correlation and Final Value Estimate 12. Certification 13. Contingent and Limiting Conditions 14. Addenda SUBJECT PHOTOGRAPHS — PAGE 1. A front view of the building looking easterly from Garfield Avenue. A front view of the building looking southwesterly from Garfield Avenue (includes warehouse area to be eliminated). SUBJECT PHOTOGRAPHS — PAGE 1 -A. A rear view of the building looking northerly from a neighboring parcel. A rear view of the building looking westerly from a neighboring parcel (includes warehouse area to be eliminated). SUBJECT PHOTOGRAPHS — PAGE 1 -B. A rear view of the easternmost section of the building looking northeasterly from the rear parking and semi delivery and pickup area. (Includes warehouse area to be eliminated) A rear view of the building and office addition looking northwesterly from the rear parking and semi delivery and pickup area. SUBJECT PHOTOGRAPHS — PAGE 1 -C. An interior view of the retail/showroom area. Another interior view of the retail/showroom area. SUBJECT PHOTOGRAPHS — PAGE 1 -D. An interior view of the retail /showroom area. (part of former warehouse area which is to be eliminated) An interior view of the office area. SUBJECT PHOTOGRAPHS — PAGE 1 -E. An interior view of the stairs to the second floor storage area from the retail /showroom area. An interior view of the 2nd floor storage area. SUBJECT PHOTOGRAPHS — PAGE 1 -F. An interior view of the restroom. A view of the sprinkler riser. SUBJECT PHOTOGRAPHS — PAGE 1 -G. r - � y -1-4 An interior view of electrical transformers in the mechanical room. 4 An interior view of the electrical panels. SUBJECT PHOTOGRAPHS — PAGE 1 -H. An interior view of the ceiling and heaters in the warehouse area. (To be eliminated) An interior view of two of the overhead doors in the warehouse area. (To be eliminated) SUBJECT PHOTOGRAPHS — PAGE 1 -I. Another interior view of the warehouse area. (To be eliminated) An interior view of the addition for bedroom furniture display. SUBJECT PHOTOGRAPHS — PAGE 1 -J. An interior view of the freight elevator. A view of the tubing for the in floor heat system that could be completed. SUBJECT PHOTOGRAPHS — PAGE 1 -K. A street view looking northeasterly on Garfield Avenue. A street view looking southwesterly on Garfield Avenue. 2. STATEMENT OF THE APPRAISAL PROBLEM TYPE OF VALUE, INTENDED USE, AND INTENDED USER: The objective of this appraisal is to estimate the Market Value of the Fee Simple Interest in the Robert F. Klauer property located at 430 Garfield Avenue in Dubuque. The value is estimated inclusive of a hypothetical condition that roughly 11,375 sq.ft. along the northeasternmost boundary of the parcel is acquired by the City of Dubuque. As part of that acquisition, the warehouse improvements on that portion of land will be demolished. More detailed exhibits and descriptions of these modifications to the subject property will be described within other sections in this report. The City of Dubuque has requested the appraisal, is the client and the intended user in evaluating the property for potential acquisition, which is the intended use. Any other user or use is unintended, and requires post report dated prior written permission of the appraiser. DEFINITIONS: Market Value is defined by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 and in The Appraisal of Real Estate published by the Appraisal Institute (13th Edition, 2008, Page 24 -25), as "the most probable price which a property should bring in a competitive and open market under all conditions, requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is consummation of a sale as of a specific date and passing 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 he considers his own best interest; 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." - Continued- 2 -A. STATEMENT OF THE APPRAISAL PROBLEM (CONTINUED) DEFINITIONS (CONTINUED): Market Value is also defined as "the cash price which would be arrived at between a voluntary seller willing but not compelled to sell and a voluntary purchaser willing but not compelled to buy, both of whom are acting freely, intelligently and at arm's length, bargaining in the open market for the sale and purchase of the real estate in question. Such term does not mean the value under peculiar circumstances where greater than its fair price could be obtained, nor does it mean the price which the property would bring at a forced sale. It does not mean what the property is worth to the plaintiff nor what the defendant can afford to pay, but what it is fairly worth in cash on the open market, as stated above." (Iowa Uniform Jury Instruction No. 14.4) Fee Simple Interest is defined in The Appraisal of Real Estate published by the Appraisal Institute (13th Edition, 2008, Page 114), as: "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." Hypothetical Condition is defined in 2012 -2013 USPAP (Page U -3), as: "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. ANALYSIS OF THE SUBJECT: The property is located southeast of the intersection of Garfield Avenue and Kniest Street, in northeast Dubuque. After the proposed changes, the remaining subject parcel contains an estimated 30,337 sq.ft. (0.696± acres) (based on City of Dubuque Assessor's records and the proposed elimination of 11,375 sq.ft. the existing subject parcel. After demolition of 10,480 sq.ft of warehouse space, the remaining parcel is improved with a 9,529± sq.ft. (ground floor area), two and one -story, wood and brick frame, brick, and metal panel sided building. Total building area is approximately 17,029± sq.ft. The remaining building size is also based on City of Dubuque Assessor records, plus the estimated area of the newest addition which is not included on the City of Dubuque Assessor website sketch. DATE OF APPRAISAL: Thomas F. Howe and Karl Dolter inspected the property on February 4, 2013, which is the effective date of valuation. The date of this report is February 8, 2013. - Continued- 2 -B. STATEMENT OF THE APPRAISAL PROBLEM (CONTINUED) SCOPE OF THE APPRAISAL: In preparing this appraisal, the Appraiser: 1. Viewed the site, and most of the interior and exterior of the building; 2. Researched public records to determine ownership and other pertinent information; 3. Identified and investigated appropriate comparable market data; 4. Developed the Cost (Land Only) and Sales Comparison Approaches to Value; and, 5. Reconciled the approaches into a final value conclusion. At the appraiser's direction, Karl Dotter has provided significant assistance to the appraiser. Mr. Dotter viewed and assisted in photographing the property with the appraiser, and prepared the initial draft of the description of improvements. In addition, Mr. Dotter helped in proofreading, downloaded the flood map, copied the comparable land and improved sales sheets, and inserted these documents into the report. Mr. Dotter did not participate in the value analysis or preparation of the value conclusions in the appraisal process or as reported in the report. SALE HISTORY: According to public records, Robert F. Klauer holds title to the property. It was conveyed by Warranty Deed 2002 - 00006554 dated April 4, 2002 for $210,000 from Robert J. and Rebecca A. Walser. A copy of the deed is included in the Addenda. AMERICANS WITH DISABILITIES ACT: No survey or analysis of the property has been completed to determine if it conforms to the detailed requirements of the ADA. There are no parking spaces reserved for handicapped use, and doorway access does not appear to have been modified. HAZARDOUS MATERIALS: The value estimate contained herein is based upon the assumption that there are no hazardous materials in the building or the site. The appraiser is not qualified to discern the presence or absence of such materials, but is aware that they can have a significant negative effect upon value. - Continued- 2 -B. STATEMENT OF THE APPRAISAL PROBLEM (CONTINUED) REASONABLE EXPOSURE AND MARKETING TIMES: The 2012 -2013 Uniform Standards of Professional Appraisal Practice requires the estimation of reasonable exposure and marketing times for a property, when appropriate. The subject property is in an average, modest valued mixed commercial -light industrial - residential use location. Considering its size and utility, it could be marketed within a period of 9 to 18 months, assuming reasonable pricing and typical market exposure of 9 to 18 months. 3. SALIENT FACTS SUMMARY DATE OF VALUATION: ADDRESS: TYPE OF PROPERTY: LAND AREA: IMPROVEMENTS: CURRENT OWNERSHIP: ZONING: ASSESSED VALUE AND TAXES: (Parcel 1024234003) RIGHTS APPRAISED: LEGAL DESCRIPTION: February 4, 2013. 430 Garfield Avenue, Dubuque, Iowa Retail- Warehouse building. 30,337 sq.ft. (0. 696± acres). A one -story and two -story, wood frame, brick and metal panel sided building. Its estimated ground floor area is 9,529± sq.ft. (17,029± sq.ft. total building area), There is also roughly 18,000 ± sq.ft. of mostly gravel with approximately 800 sq.ft. of asphalt surfaced parking. Robert J. Klauer CS (Commercial Service District). 2012 Assessed Value *: Land Improvements Total Taxes: $ 70,280* + 181,560* $ 251,840* $ 8,644* The Market Value of the Fee Simple Interest. Lots 1 of2of2of2; 2 of 2 of 2 of 2, and 3 of 2 of 2 of 2, of Mineral Lot 106. * * Assessed value, taxes, and the legal description are prior to the proposed changes. VALUE ESTIMATE: LAND IMPROVEMENTS TOTAL $240,000 $140,000 $380,000 THREE HUNDRED EIGHTY THOUSAND DOLLARS The value estimate is hypothetical, as if the proposed modifications were completed as of February 4, 2013. REGIONAL AND CITY DATA DUBUQUE, IOWA Potosi • CLAYTON Cetesburg • Edgewood • Greeley • Petersburg Delaware •Eaqv_ille • Delhi • DELAWARE .�i Hopkinton• Luxemburg • New Vienna • Dyersvill • Balttown 52 Durango Dubuque e Epworth Key Farley • Peostawest • Worthington DUBUQUE Monticello• ne Dickeyville GRANT E. Dubuque �µl • Benton Galena Fillmore Cascade /• j3ard • Zwingle JACKSON St. Donatus JONES •La Motte Bellevue The Dubuque metropolitan area is located geographically located on the most eastern most point of the State of Iowa, the southwestern most point of the State of Wisconsin and the northwestern most point of the State of Illinois. The metropolitan area is referred to as the Tri- State area. Dubuque, Iowa is located 176 miles west of Chicago, Illinois, 200 miles southwest of Milwaukee, Wisconsin, 261 miles south of Minneapolis, Minnesota and 185 rniies northeast of Des Moines, Iowa. With a population of roughly 60,000 people, Dubuque is Iowa's seventh largest city. The City of Dubuque is the county seat for Dubuque County, which has a population of nearly 90,000. Neighboring counties of Grant County, Wisconsin and Jo Daviess County, Illinois have populations of approximately 50,000 and 23,000 people, respectively. MAJOR HIGHWAYS: Major arterials into the area include: Highway 20 — a very modern, four -lane highway stretching from the Illinois border at Dubuque past Interstate 35 in central Iowa. Two- lane highway currently carries travelers into the Illinois cities of Galena, Rockford, Freeport and Chicago. Significant progress is being made to four -lane this section of the highway. - Continued- 4 —A REGIONAL AND CITY DATA (CONTINUED) Highway 61 – provides the Dubuque metropolitan area with a modern four -lane connection south to Interstate 80 and beyond to southern Iowa. To the north, Highway 61 provides a scenic drive on two -lane highway through Wisconsin's western cities and towns. Highway 151 – carries business and leisure travelers on modern four -lane Highway southwest to Cedar Rapids and Interstate 380 and northeast in Wisconsin to Madison and Milwaukee. Highway 52 - offers a well- maintained two -lane highway along the great Mississippi River from Iowa into Wisconsin and Illinois. This portion of the highway is part of the nationally designated "Great River Road" national scenic highway. MAJOR BUSINESS & INDUSTRY: Top Dubuque employers include: Employer John Deere Dubuque Works Dubuque Community School District Mercy Medical Center McCoy Group, Inc. Medical Associates Clinic, P.C. Eagle Window & Door The Finley Hospital Heartland Financial USA, Inc. Flexsteel Industries, Inc. City of Dubuque Prudential Retirement Woodward Communications, Inc. Holy Family Catholic Schools Greater Dubuque Riverboat Entertainment HEALTHCARE: Hospitals /Healthcare Centers Physicians Dentists Outpatient Clinics Nursing Homes Employees 2,000 1,410 1,324 1,200 998 950 920 760 750 716 620 600 600 Co. 540 - Continued- 11 171 55 21 22 4 -B. REGIONAL AND CITY DATA (CONTINUED) EDUCATION: Colleges /Universities /Seminaries High Schools Middle Schools /Junior High Schools Elementary Schools (* includes public and parochial) RECREATION: 8 4* 4* 17* Public Parks 38 Public Tennis Courts 19 Public Golf Courses (within a 15 -mile radius) 6 Public Swimming Pools 2 Public Boat Ramps 3 Other Activities: Biking, Hiking, Boating, Bowling, Canoeing /Kayaking, Hunting, Skate Park, Downhill Skiing /Snowboarding, Cross - Country Skiing, Horseback Riding, Martial Arts, Ice Skating, Hockey, Fishing, Volleyball, Basketball, Football, Baseball, Snowmobiling, Soccer CULTURAL: Art Museum Art Galleries Art Groups /Councils Arts /Crafts Shows Aquarium Ballet Dance WEATHER: Season Spring Summer Fall Winter Festivals Libraries Live Theater Historical Museum Historical Sites Opera Symphony Average High (F) Average Low (F) 56 80 59 28 Average Annual Rainfall: 33.7" Average Annual Snowfall: 35.1" 37 60 40 12 5. NEIGHBORHOOD DATA The subject property is located southeast of the intersection of Garfield Avenue and Kniest Street, in northeast Dubuque. Garfield Avenue and Kniest Street are two -way, two -lane, asphalt paved streets. Both serve the immediate neighborhood, and neighborhoods to the northeast and northwest respectively. U.S. Highway 52 (Central Avenue and White Street) are concrete and asphalt paved, one -way, two -lane roads which are 7 and 6 blocks west of the subject, and are the nearest federal highways. The defining neighborhood boundary to the east is a significant number of rail lines, with a mixed commercial - industrial neighborhood beyond the rail lines. To the north, west, and south are mixed residential - commercial neighborhoods. Immediate neighborhood uses are mixed retail, service, warehousing, and residential. The improvements are also mixed in age, quality, and appearance, dating from the late 1800's to very recent replacement structures resulting from additions, expansions, or a change in use. The subject neighborhood remains an important mixed use area, with potential for retail and other commercial redevelopment in the future. A period of minimal redevelopment of the older commercial and industrial properties in the neighborhood is anticipated, with more potential for that transition in the long term. The outlook for the area overall, is average. Part of hypothetical condition includes a proposed extension of the Bee Branch Creek Restoration project. This also includes a bike path with a bridge over the nearby train tracks and possibly over Garfield Avenue. Immediately below is an aerial photograph of the subject neighborhood with the subject parcel outlined in red (prior to proposed changes), downloaded from the Dubuque County website. at` �r • • 6. SITE ANALYSIS GENERAL: The hypothetical subject property is a trapezoid shaped parcel containing a reported land area of 30,337 sq.ft. (0.696± acres) net of the road right of way based on the City of Dubuque Assessor's records. There is roughly 159 feet of frontage along Garfield Avenue, and the depth ranges from approximately 198 feet to 142 feet along the easternmost and westernmost boundaries respectively. The frontage and easternmost boundary sizes are based on the measurement tool available on the Dubuque County website. The land to building ratio is 3.18:1 based on the remaining parcel and building size estimates. Copies of the aerial photos provided by the City of Dubuque which depict the proposed changes to the subject property are on the next two pages. TOPOGRAPHY: The site is roughly at grade with the street, and is minimally sloping downward generally away from the building to the southeast. The surface drainage appears to be adequate. The subject is located in a FEMA Zone X500 (shaded), ( "Area of moderate flood hazard, usually the area between the limits of the 100 -year and 500 -year floods. Are also used to designate base floodplains of lesser hazards, such as areas protected by levees from 100 -year flood, or shallow flooding areas with average depths of less than one foot or drainage areas less than 1 square mile. "). A copy of the flood map obtained from Interflood is included in the Addenda. ZONING: The subject is currently zoned CS (Commercial Service District), by the City of Dubuque. This classification allows numerous commercial uses including the present use numerous types of commercial uses. The retail- warehouse use is a conforming use. ACCESS: There is access via two points from Garfield Avenue. One is the currently existing drive along the southwesternmost boundary of the property which is composed of gravel. The proposed access will be via a proposed easement via a gravel surfaced driveway to the northeast of the subject property. It will extend from Garfield Avenue to provide access along the northeasternmost exterior wall and to the rear of the remaining building. These access points will provide good circulation around the building and will be adequate for anticipated uses of the property. - Continued- 6 -A. SITE ANALYSIS (CONTINUED) UTILITIES: The subject is located within the city limits of Dubuque, and is served by all public utilities. They include electricity, telephone, natural gas, city water, and city sewer. EASEMENTS: Other than typical utility easements and the proposed new access easement, no other easements are known to exist. No detrimental easements or encroachments were discovered. The aerial photo with the subject parcel outlined in red (not including the area to the left identified as 422), includes the building to be eliminated outlined in yellow. The dashed green line is the proposed northeast border for the remaining subject property. - Continued- 6 -B. SITE ANALYSIS (CONTINUED) The aerial photo below indicates the size of the land area of the proposed acquisition which will reduce the size of the remaining subject parcel. 7. DESCRIPTION OF IMPROVEMENTS GENERAL: The subject property is improved with a two -story and one -story, brick and wood frame retail - warehouse building which contains a reported 17,029 sq.ft. of total building area. There is 9,529 sq.ft of finished space on the ground floor, including a 625 sq.ft. office and the balance being in a retail use. It is in very good condition. There is also 7,500 sq.ft. of second floor space being used as storage, with some potential for additional retail use. The building was reportedly built in 1890. The owner reports that most of the roof has rubber membrane or another type of membrane which was reportedly installed 2 -3 years ago. The roof of the office addition is asphalt shingles. The floor is concrete and there is no basement. Roughly 7,500 sq.ft. previously had a basement which was filled and the concrete floor installed after the purchase in 2002. The owner reports that wood framing was added inside of the brick exterior walls, and approximately one foot of spray -foam insulation was added before drywall was installed. The ceilings are exposed wood joists and the underside of the floor of the second story, which are painted black. The second story is supported by roughly 9' x 9' wood beams and posts throughout the retail area. The owner indicated that they are making an effort to slowly raise parts of the ceiling to level the second level floors for future use. The interior of the retail area was significantly remodeled since the acquisition in 2002. The 625 sq.ft. office addition extends to the rear of the retail area, and is a wood frame and metal clad structure. The floors of this area consist of mostly carpet and some ceramic tile. MECHANICALS: The retail area is heated by 2 rooftop HVAC units and has tubing in place for an in floor heating system in the office and showroom, additions. The hot water heater or other source to complete the in floor system is not yet in place. The building is served by a 200 amp electrical service. There are two 2- fixture restrooms, one for public use and one for employees. The retail area has fluorescent and incandescent light fixtures which are adequate. There is a dry sprinkler system which serves the entire building. There is also a 2,500 pound capacity electrically operated freight elevator at the northeast corner of the two -story section of the building. SITE IMPROVEMENTS: There is approximately 18,000 sq.ft. of gravel surfacing to the rear and west of the building. There is also an 800 sq.ft. asphalt paved parking area directly to the rear of the office section of the building. 8. HIGHEST AND BEST USE ANALYSIS DEFINITION: Highest and Best Use is defined by the Appraisal Institute in The Appraisal of Real Estate, Thirteenth Addition, c. 2008, Page 278, as: "the reasonably probable and legal use of vacant land or improved property that is legally permissible, physically possible, appropriately supported, financially feasible, and that results in the highest value." Therefore, when estimating the highest and best use of a property, four basic questions must be addressed. Is the use physically possible, is it legal, is it financially feasible, and is it maximally productive? Physical Analysis: The subject site's size, shape and topography would support a number of uses. It has the necessary access for a variety of uses, and all public utilities are available. Legal Analysis: The subject is zoned CS (Commercial Service District) by the City of Dubuque. The improvements comply with the zoning ordinance, and are currently in a legal use of the site. Feasibility: The subject is located in a mixed -use (commercial, industrial, and residential) neighborhood in northeast Dubuque (which is experiencing slow redevelopment). The property is currently in a commercial use. A continued commercial use is feasible. Maximally Productive: The improvements contribute to the overall value of the property, and are considered to be the most productive use of the site as improved. CONCLUSIONS: Based upon the analysis above, the highest and best use of the site (as vacant) is a commercial use. As improved, a commercial use is also the highest and best use of the property. 9. COST APPROACH TO VALUE COMPARABLE LAND SALES SALE SALE SALE AREA/ PRICE/ NO. ADDRESS DATE PRICE SQ.FT. SQ.FT. 430 Garfield Avenue 30,337 Dubuque, IA SUBJECT PROPERTY 1. 2061 Holiday Drive 06/22/2012 $ 435,610 43,561 $ 10.00 Dubuque, IA (SJCG) 2. Bluff Street Dubuque, IA (Franklin) 06/15/2011 $ 70,000 7,190 $ 9.74 3. 1451 White Street 05/24/2011 $ 100,000 5,120 $ 19.53 Dubuque, IA (Dubuque Bank) 4. S. Main & Jones Streets Dubuque, IA (ALB) 5. Main Street Dubuque, IA (Dubuque West Hospitality) 6. 345 East 20th Street Dubuque, IA (E 20 WD) 03/29/2010 $ 150,000 09/21/2009 $ 157,583 03/10/2008 $1,298,125 [INDIVIDUAL SUMMARIES ARE IN THE ADDENDA] 13,280 $ 11.30 20,167 $ 7.81 50,771 $ 25.57 9 -A. COST APPROACH TO VALUE (CONTINUED) METHODOLOGY: The Cost Approach to Value presumes that no prudent buyer will pay more for the subject than an amount necessary to secure equally desirable land and build a substitute facility new. Generally, a buyer will pay somewhat less than cost new depending upon the estimated "accrued depreciation" as of the date of inspection (the date of the appraisal). The first step in the Cost Approach is to value the land as though it were vacant. Then the replacement cost new of the improvements is estimated, and accrued depreciation is deducted. The land value and the estimated depreciated cost are combined, resulting in the value estimate. LAND VALUE ESTIMATE: Six comparable land sales in the Dubuque market have been summarized on the previous page. They are the most recent sales of similar vacant or parking lot tracts in the subject area (and competitive neighborhoods), which were discovered. These sales should support a reasonable value estimate for the subject. The unit of value considered pertinent in this analysis is the price /sq.ft. of land area. It is the unit most often used in valuing vacant land of the subject type, and can readily be extracted from the sales. The comparables range in size from 5,120 sq.ft. to 50,771 sq.ft. with a range in overall price from $70,000 to $1,298,125 and on a square foot basis from $7.81 /sq.ft. to $25.57 / sq.ft. All of the sales were cash or conventionally financed transactions, and no financing adjustments are required. Sale #1 is a slightly irregular shaped parcel located along the west side of Holliday Drive across the street from a McDonalds Restaurant and just north of Signature Fitness (part of a strip center) and just west of Northwest Arterial in west Dubuque. The immediate area is a commercial neighborhood. The parcel is nearly level along the front % of the property and the balance of the site is steeply sloping downward. The buyers own Sedona Staffing Services and purchased the property to build a single occupant office building for their business. The comparable's sale price is $10.00/sq.ft. However, its price per usable area is roughly $14.93/sq.ft. Overall, $10.00 /sq.ft. is much higher than is reasonable for the subject due to the comparable's far superior location. Sale #2 is a nearly rectangular shaped parcel located along the west side of Bluff Street, just north of Dodge Street (US Highway 20). It is in a mixed -use (residential /commercial) neighborhood near the southwest corner of the Downtown Dubuque Business district. A neighboring owner who previously acquired an abutting improved property (Central School) purchased this parcel for additional access for the renovated Multi - Family housing re- development of the school. The $9.74 price /sq.ft. is much higher than is warranted for the subject due to the comparable's superior location and being purchased as part of an assemblage by an adjacent owner. - Continued- 9 -B. COST APPROACH TO VALUE (CONTINUED) LAND VALUE ESTIMATE (CONTINUED): Sale #3 is a 5,120± sq.ft. parcel located just north of 14th Street (Loras Boulevard), along the west side of White Street, roughly 9 blocks southwest of the subject. The buyer bought the site (an existing parking lot) to serve as parking for a building the buyer owns at the southwest corner of White and 14th Streets. The comparable's much smaller size, it parking lot finish, and its superior location support a significantly lower value for the subject than the $19.53/sq.ft. of the comparable. Sale #4 is a gravel surfaced parking lot parcel which is located at the northeast corner of the traffic control lighted intersection of South Main and Jones Streets. It includes frontage with visibility from 4 -lane divided U.S. Highway 151/61, but no direct highway access. The neighborhood has begun transition from industrial uses historically to commercial /residential redevelopment. In the immediately preceding recorded document 2010 - 00005010, the buyer also acquired a restaurant /convenience store with gas immediately across Jones Street to the south of this parcel. This comparable is smaller in size than the subject and has a superior location. Thus, a much lower value than its $11.30 /sq.ft. is reasonable for the subject. Sale #5 is comprised of (4) contiguous irregular shaped parcels located on the north, east and south sides of the improved property at 40 Main Street at the south end of Dubuque Downtown Business District. The property owner of 40 Main Street acquired the property from the City of Dubuque for on -site parking for tenants. The combined comparable parcel is much more irregular than the subject parcel, and significantly smaller than the parcel being appraised. Overall, these are partially offsetting factors which indicate its $7.81 price /sq.ft. is slightly lower than the subject parcel's value. Sale #6 is located approximately 2 blocks west of the subject, and is an assemblage of 11 parcels over many years, after removal of existing improvements. It is located at the northwest corner of East 20th and Elm Streets, and was purchased to build a new Walgreen's store. A much lower price than the comparable's price / sq.ft. ($25.57) is indicated for the subject. A lower price is indicated due to the superior traffic at the comparable location, assemblage being reflected in its price, and a history of Walgreen land purchases at prices higher than typical buyers will pay. CONCLUSION: Because of the limited sales of vacant land or improved parcels being purchased for demolishing the improvements for a change in use in already developed areas, the comparables have relatively broad ranges in price / sq.ft. and size. Therefore, specific adjustments were considered, but not completed. Most of the sales are superior. Overall, due to the location, topography, and size of the subject, an estimated value in the range of $7.75 / sq.ft. to $8.00 / sq.ft. is reasonable. - Continued- 9 -B. COST APPROACH TO VALUE (CONTINUED) CONCLUSION (CONTINUED): $7.75 / sq.ft. x 30,337 sq.ft. = $235,112 $8.00 / sq.ft. x 30,337 sq.ft. = $242,696 The land value estimate is rounded to $240,000 MARKET VALUE ESTIMATE BY THE COST APPROACH TO VALUE (LAND ONLY) $ 240,000 10. SALES COMPARISON APPROACH TO VALUE IMPROVED COMPARABLE SALES SALE SALE SALE SIZE- PRICE/ NO. LOCATION DATE PRICE SQ.FT. SQ.FT. 430 Garfield Avenue 9,329 Dubuque, IA 17,029 (Subject) 1. 245 West 1st Street 12/27/2012 $ 400,000 5,455 $ 73.33 Dubuque, IA 12,910 $ 30.98 (Platinum) 2. 4099 McDonald Drive 01/24/2012 $ 650,000 11,830 $ 54.95 Dubuque, IA (SRJ) 3. 2225 Kerper Boulevard 03/13/2011 $ 500,000 31,125 $ 16.06 Dubuque, IA (CRDS) 4. 299 Main Street 06/30/2010 $ 1,731,638 7,296 $237.34 Dubuque, IA 29,184 $ 59.34 (73 CHS) 5. 44 Main Street 12/29/2009 $ 600,000 7,500 $ 80.00 Dubuque, IA 22,500 $ 26.67 (Junnie & Rich's) [INDIVIDUAL SUMMARIES ARE IN THE ADDENDA] 10 -A. SALES COMPARISON APPROACH TO VALUE METHODOLOGY: The Sales Comparison Approach to Value presumes that no prudent buyer would pay more for the subject than an amount necessary to acquire an equal substitute, assuming no undue delay. Thus, sales of similar properties are pertinent in the valuation process. COMPARABLE SALES ANALYSIS: On the previous page is a summary of five of the most similar recent sales of commercial and warehouse properties discovered in the Dubuque market. The unit of value considered most applicable is the price / sq.ft. of ground floor building area, which is the common denominator most often used for these types of properties. The sales range in size from 5,455 to 31,125 sq.ft., with overall sale prices ranging from $400,000 to $1,731,638. On a per square foot basis, the indicated range is $16.06 to $237.34. All of the sales were cash or conventionally financed, and no adjustments for terms are needed except as described in the discussions below. There is also no basis for making time adjustments. Immediately below is a discussion of the comparable sales. Sale #1 is located at the northeast corner of West 1St and Locust Streets, in the south sector of Downtown Dubuque. The area immediately to the east of the property along Main Street has been undergoing significant re- development for more than a decade. The two -story and three -story sections of the building have most recently been used for retail purposes on the ground floor, the second and third floors are reported to be unfinished. The buyer owns other property in the immediate area and purchased the property to demolish it to create a parking lot. The comparable's $73.33/sq.ft. price is much higher than is warranted for the subject due to the comparable's superior location and smaller size, in spite of its far inferior condition. Considering price / sq.ft. of total building area above grade, the comparable's $30.98 / sq.ft. is also much higher than is indicated for the total building area of the subject due in part to the more limited functional utility of the remaining subject building. Sales #2 is located along the northerly side of McDonald Drive in the northeast quadrant of the intersection of US Highway 20 and Northwest Arterial in extreme west Dubuque. Access from the highway and the arterial is indirect. The parcel is improved with an 11,830 sq.ft., 1 -story, steel frame, metal clad building. A survey was done in 2007 which indicates the land size at 38,473 sq.ft. The buyers have proposed renovations to the property that will consist of splitting the building into 3 suites. One suite is intended to be owner occupied with the two additional suites being available to rent to other tenants. An estimated $190,000 is planned by the buyers to be spent on renovations. With the planned improvements, the total investment by the buyer will be $840,000, or $71.01 / sq.ft. The comparable's superior location and larger size warrant a lower value for the subject than the comparable's price / sq.ft. ($54.95). - Continued- 10 -B. SALES COMPARISON APPROACH TO VALUE (CONTINUED) COMPARABLE AND SALES ANALYSIS (CONTINUED): Sale #3 is located along the northwest side of Kerper Boulevard just north of its intersection with Fengler Street. It is improved with a 1- story, poured concrete building (30,000 sq.ft.) with a concrete block office section (1,125 sq.ft.). The building was last occupied by Unique Balance. Prior to its being sold, the building was vacant for approximately 3 years, and was in poor condition at the time of sale, with significant deferred maintenance. The lot has approximately 32' of frontage along Kerper Boulevard, has a very irregular, inefficient shape, and poor circulation. The building has limited visibility from the street due to improvements on adjacent parcels. The property was purchased to relocate Dubuque Window and Door Company, an existing local business. A rail line and a rail spur are immediately west and north of the property respectively. Its $16.06 / sq.ft. sale price is significantly lower than is reasonable for the subject due to the comparable's inferior location, far inferior condition, and its larger size. Sale #4 is located at the southwest corner of Main and 3rd Streets, in south downtown Dubuque, roughly 2 blocks west of the redeveloped north Ice Harbor area, a major tourist attraction in the city, with the Mississippi River farther to the east. It is also amid the redeveloped Main Street area which extends south several blocks and north to 17th Street. The buyer intends to re -open the restaurant and bar - micro - brewery on the ground floor and basement respectively, and renovate the upper floors into apartments. The basement includes area under the sidewalk, and is reported to be 7,700 sq.ft. Much of the historic preservation work required for historic tax credits had already been completed by a prior owner. Significant area on the upper floors was unfinished at the time of sale. The purchase price included personal property which contributed roughly $200,000 to the purchase price. This is the only sale of an older downtown building which had been partially significantly remodeled prior to the sale. It was purchased for $1,731,648, or $237.34/sq.ft. After adjusting for the personal property, the effective price / sq.ft. of ground floor area is $209.93. The comparable's price is far higher than is warranted for the subject due to the comparable's far superior location, its more significant remodeling for a higher intensity use on two levels, in spite of its lower land to building ratio. The comparable's price / sq.ft. of total building area above grade ($59.34) is significantly higher than is reasonable for the subject. Sale #5 is located just north of the northeast corner of Main and Jones Streets, in extreme south downtown Dubuque, immediately west of U.S. Highway 151, and 52, and immediately south of the highway link to U.S. Highway 20. Just to the northeast, across U.S. Highway 151, and 52 is the redeveloped north Ice Harbor area, a major tourist attraction in the city, with the Mississippi River farther to the east. There is a foot bridge over the highway link to the north which serves as a foot traffic link between the park across Main Street to the west of the comparable and the redeveloped Main Street area which extends north to 17th Street. There is an attached building to the south which is owned by a related party, and parking for the comparable is limited. The buyer intends to renovate the property into apartments on the top - Continued- 10 -C. SALES COMPARISON APPROACH TO VALUE (CONTINUED) COMPARABLE AND SALES ANALYSIS (CONTINUED): two floors with commercial uses on the ground floor. The comparable's price / sq.ft. of ground floor area ($80.00) is much higher than is warranted for the subject due to the comparable's superior location, in spite of its inferior condition, and lower land to building ratio. The comparable's $26.67 /sq.ft. of total building area above grade, is also much higher than is a reasonable indicator of the value of the subject. CONCLUSIONS: A grid which summarizes adjustments based on the differences discussed above was considered, but required very large adjustments for large differences which are difficult to support. What is clear is that the significantly remodeled building (Sale #4) sold for a much higher price / sq.ft. than the other properties. Thus, Sale #4 supports an expectation that the significantly remodeled subject property's condition is a very important factor in estimating its value. However, Sale #4's far superior location and being more significantly remodeled for a higher intensity use on two levels are strong indicators which warrant a much lower value for the subject. Sale #2 is newer, smaller, and has exposure to the traffic along US Highway 20 (Dodge Street), which indicate a lower value is reasonable for the subject. Sale #3 is clearly inferior, and Sale #5 is given less weight because it was influenced by being part of an assemblage. Because the subject is significantly remodeled, its condition is an important factor to be included in its value estimate. However, not have ground floor warehouse space is an important functional limitation which lowers the value of the remaining improvements. The range of the comparables' price / sq.ft. is from $16.06 to $237.34/sq.ft. Considering the location, size, age, condition, and other characteristics of the subject, its value is estimated to be $40.00 / sq.ft. of ground floor area. $40.00 /sq.ft. x 9,529 sq.ft. = $381,160 The value estimate is rounded to $380,000. MARKET VALUE ESTIMATE BY THE SALES COMPARISON APPROACH TO VALUE $ 380,000 11. INCOME APPROACH TO VALUE METHODOLOGY: The Income Approach to Value presumes that no prudent buyer will pay more for the subject than the capitalized rental value of the property (net present value), based upon the buyer's analysis of the income and expenses as they should relate to the future benefits of ownership. The buyer would only be willing to pay the present value of what he or she perceives those benefits to be. DISCUSSION: Stand alone buildings like the subject are typically owner occupied, and not leased. There were not enough comparable leases available to estimate a credible rent for the subject. Therefore, this approach was considered, but was not fully developed. 12. CORRELATION AND FINAL VALUE ESTIMATE COST APPROACH TO VALUE $ 240,000 SALES COMPARISON APPROACH TO VALUE $ 380,000 INCOME APPROACH TO VALUE N/A Only one of the approaches was fully developed. The Cost Approach to Value is generally considered the least reliable, and the age of the property reduces its reliability. Therefore, this approach was developed through a land value only using six comparable land sales in the market. The Sales Comparison Approach to Value is generally a meaningful approach to use in estimating the value of most types of properties. Five comparable sales were analyzed. After considering the differences, a per a square foot value was applied to the ground floor building area, and a value conclusion was supported. The Income Approach to Value is a useful method of estimating the value of income producing properties. However, this approach was not developed for the subject property due to inadequate comparable leases from which to develop a credible rent estimate. In the final analysis, the Sales Comparison Approach has been given all of the weight. Therefore, based upon the preceding analysis, it is my opinion that the Market Value of the Fee Simple Interest in the property, as of February 4, 2013 is: MARKET VALUE LAND $240,000 IMPROVEMENTS $140,000 TOTAL $380,000 THREE HUNDRED EIGHTY THOUSAND DOLLARS The value estimate is hypothetical, as if the proposed modifications were completed as of February 4, 2013. Respectfully submitted, KANE APPRAISAL SERVICES Thomas F. Howe General Real Property Appraiser - Iowa #CG01320 13. CERTIFICATION I certify that, to the best of my knowledge and belief .. . - The statements of fact contained in this report are true and correct. - The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial and unbiased professional analyses, opinions, and conclusions. - I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest with respect to the parties involved. - I have performed no services as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three -year period immediately preceding acceptance of this assignment. - I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. - My engagement in this assignment was not contingent upon developing or reporting predetermined results. - 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. - My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (2012- 2013). - I have made a personal inspection of the property that is the subject of this report. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. - As of the date of this report, I have completed the requirements under the continuing education program of the State of IOWA and the Standards and Ethics Education Requirement of the Appraisal Institute for Associate Members. - No one other than Karl Dotter provided significant real property appraisal assistance to the person signing this certification. At the appraiser's direction, Karl Dotter has provided significant assistance to the appraiser. Mr. Dotter viewed and assisted in photographing the property with the appraiser, and prepared the initial draft of the description of improvements. In addition, Mr. Dotter helped in proofreading, downloaded the flood map, and copied the comparable land and improved sales sheets, and inserted these documents into the report. Mr. Dotter did not participate in the value analysis or preparation of the value conclusions in the appraisal process or as reported in the report - The report analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. February 8, 2013, Respectfully submitted, KANE APPRAISAL SERVICES Thomas F. Howe General Real Property Appraiser - Iowa #CG01320 14. CONTINGENT AND LIMITING CONDITIONS The legal description, which has been furnished by others, is assumed to be accurate, but no responsibility is assumed for its correctness. The report rendered herein is based on the premise that the property is free and clear of mortgage indebtedness unless specifically stated otherwise, and that there are no special assessments against the property. No report of title is rendered herewith, and it is considered good for purposes of this report. It is further assumed by the appraiser that all leases and lease amendments which have been furnished the appraiser are correct and accurate. If this is not the case, all values contained herein are voided. Any sketches in this report are included to assist the reader in visualizing the property. No survey of the property has been made by the appraiser and no responsibility for its accuracy is assumed. Lacking any contrary evidence, subsurface soil conditions are assumed to be adequate to support the existing or proposed improvements. The commercial retail- warehouse improvements are assumed to be within the lot lines and in accordance with all local zoning and building ordinances. It is also assumed that no asbestos, or any other hazardous materials are located in the structure, or the site. Possession of this report does not carry with it the right of publication, nor may it, or any part thereof, be used by anyone but the client without the previous express written consent of the appraiser. The appraiser shall not be required to give testimony or appear in court with reference to the appraisal of the property described herein, unless prior arrangements have been made. Although reasonable attempts have been made to obtain corroborative evidence, information supplied to the appraiser by the client is assumed to be basically correct and heavy reliance has been placed upon this information. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, or other media, without the written consent and approval of the author, particularly as to the valuation conclusions, the identity of the appraiser or firm for which he is connected, or any reference to the APPRAISAL INSTITUTE. This appraisal report has been made in conformity with, and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute. This is an Appraisal in Summary Report format, and is intended to comply with the reporting requirements set forth under Standards Rule 2 -2 (b) of the Uniform Standards of Professional Appraisal Practice 2010 -2011. I have not appraised the subject property during the past 5 years. ADDENDA (KM.Iril ,AppraiSA SerVIO$ CertnedAppralmls Upprcintruni.AliihwIhmeigs uz,E. Wen Ridge Litr. iii n rhiluirw, A 16 OfiR9 06.3) LlF .7ofirt Gu Psihoyos City Engineer City of Dubuque 50 West 13in Street Dubuque, Ima 52001 Telepnone: 553$ 8.4270 ft nol neenas:11vofdubuoue. cc rtdirnerAcitycfclubue ue.orci Dear Mr. PEillOyDR: I-gibrmary 1, zirr 3 Re: Engagement letter for the ,A,ppraisal of the Market Value of the Klauer propertiee (422 antd 430 Garfield Avenue. Dubuque). You have rerlue'xted a hid tar ofirrnimls and repOilii if [ha above, reharenoad ProPerties to be in porrforman wit the Uniform Standardg 't ProtsEgicrlal APPrattal Practice (1.1SPAP 2012-2013) The City of Dubuq...ie is the intender t_kRer of the surn-nary Appreilial Reports. Th(d raports will be prepared for use act documentation for deolli:tionE, reloted to the putentel auquisiLiori of the IWO properties. lam providing this engagement letter for yo,Ar signature. The co9t to provide Summery Apir.eiskil Reports written to UPAF 2012-2013 tior III be $8,500.00. Engagement is to he via H Sinned 001:1 of 0)15. 1tir The aPPfalsal report n be completed by Friday. February 03. 2013, witi the reo.eipt a the signed oopytoitnis enaysiment letter today, February 1, 20 i Z. Please email me atti22adtaimaisam, or call rne et (51:rj) 5W-2060 If you have any questions. I lo llio abovo anclivattioize you to prome-n as indir.ateri. 11 - - - A GusI3gitiOyEiti City ErvIrkee! Date Respectfully submitted; KANE APF13AISAL SERVICES .?"-ai-..cmgatee[2:fh.c -5 F. He 'amen Real P.-oparty Appraleer - !mice NC601320 REAL �T� PAID 335.20 Y.athy Evan TM>fbw �It X.CORDER 4 -5.02 a1- nafaque PAVE cQUNW K .. Ida f 6554 --02 2802 APR -5 AM 8: 30 IATi..'frLYbiiH1 L' COUNTY R[CCRDER DUBUQUE CO.. IOWA FEES 00 Prepared by Btian J. Kane, KANE, NORBY & REDDICK, P.C., 2100 Asbury Road, Suite 2, Dubuque, IA 52002 563/582 -7980 Address Tax Statement: Mr. Robert F. Klauer, 481 W. Locust Street, Dubuque, IA 52001 Space Above This Line for Recorder WARRANTY DEED For the consideration of One Dollar ($1.00) and other valuable consideration, ROBERT J WALSER and REBECCA A. WALSER, husband and wife, do hereby Cutlyey co ROBERT F. KLAUER, the following described real estate in Dubuque County, Iowa: Lot 1 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106, Lot 2 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106, Lot 3 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106. Grantors do Hereby Covenant with Grantees and successors in interest that Grantors hold the real estate by title in fee simple; that they have good and lawful authority to sell and convey the real estate; that the real estate is Free and Clear of all Liens and Encumbrances except as may be above stated; and Grantors covenant to Warrant and Defend the real estate against the lawful claims of all persons except as may be above stated. Each of the undersigned hereby relinquishes all rights of dower, homestead and distributive share in and to the real estate. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and as masculine or feminine gender, according to the context. Dated: g_U , 2002. ROflERT J. A ALSER 1 REBECCA A. WALSER STATE OF IOWA ) COUNTY OF DUBUQUE ) ss: On this ¥{i-f( day of Aprgt 1.- , 2002, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared ROBERT J. WALSER and REBECCA A. WALSER, husband and wife, to me known to be the persons named in and who executed the foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed. JAMES E. GROSS Commission Numb 7 1171 My Comm. Exp. LrL/�AJ ary Public in • : or State of Iowa File Number: 2002 - 00006554 Seq: 1 2/6/13 InterFlood - List Flood Maps InterFlood Instant flood maps and data Flood data Real Stories Buy Get Maps My Account Questions a la moue USPS Address: 430 Garfield Ave Dubuque IA 52001 -3552 Community Name: DUBUQUE CITY OF Community #: 5180 County: Dubuque Census Tract: 19061 - 0005.00 Flood Zone: X500 Here's your flood map(s) Flood map color options InterFlood has access to over 111,000 current FEMA flood maps. And with most (not all), you can customize their color, which makes them more appealing and highlights their zones. Current Color: ,a4 ZONE ,--;\(/ CHANGE COLOR Since its possible for a property to be located on more than one flood map (tell me why), you may see more than one link below. In most cases, the first link will be the best map. When you click a link, the corresponding flood map will be displayed. Flood Map #1 for430 Garfield Ave Map Panel: 19061CO243E - Map Date: 10/18/2011 a la mode, inc. a la mode on Twitter a la mode fan on Facebook Terms of Use https: //www. i nterfl ood.comil i stmaps.aspalon =- 90.6644058227539 &I at= 42.5127105712891 &address = 430+ Garfield +A,e&C i ty= D ubuq ue&state= IA&zi p= 52001 -35... 1/1 Comparable Land Sale 1 Record Number: 869 Address: 2061 Holliday Drive City: Dubuque State: IA County: Dubuque Township: Dubuque Sale Price: $435,610 Sale Date: June 22, 2012 Land Area: 1.000 AC or 43,561 SF Grantee: SJCG Properties, L.L.C. Grantor: WBBW Holliday Development, L.L.C. Verified: Public Record, Diane (Sedona staff) Development Potential: Average Road Surface: 2- Lane, 2 Way Asphalt Zoning: C -3 Topography: Minimally to Steeply Sloping Utilities: All Public Type of Property: Vacant Land Legal Description: Lot 1 of Lot 6 of Holliday 3rd Addition Instrument: Warranty Deed Deed Book: 2012 - 00010763 Assessor Parcel: 1020279011 Date Inspected: 07/11/2012 Prices /SF $ 10.00 Price Per Acre: $ $435,610 Remarks: This is a slightly irregular shaped parcel located along the west side of Holliday Drive across the street from a McDonalds Restaurant and just north of Signature Fitness (part of a strip center) and just west of Northwest Arterial in west Dubuque. The immediate area is a commercial neighborhood. The parcel is nearly level along the front % of the property and the balance of the site is steeply sloping downward. The buyers own Sedona Staffing Services and purchased the property to build a single occupant office building for their business. Comparable Land Sale 2 Record Number: 768 Address: Bluff Street City: Dubuque State: IA County: Dubuque Township: Dubuque Sale Price: $70,000 Sale Date: June 15, 2011 Land Area: 0.165 AC or 7,190 SF Grantee: Franklin Investments, LLC Grantor: Michael J. Coty Verified: Grantee, Public Record, Attorney Development Potential: Average Road Surface: 2 -Lane Asphalt Zoning: OR Topography: Slightly Sloping Utilities: Public Water /Sewer Type of Property: Residential /Commercial Legal Description: Lengthy Instrument: Warranty Deed Deed Book: 11- 00008438 Assessor Parcel: 1025260021 Photographed: 01/31/2013 Date Inspected: 01/31/2013 Prices /SF: $ 9.74 Price Per Acre: $ 424,089 Remarks: This is a nearly rectangular shaped parcel located along the west side of Bluff Street at its intersection with West 1st Street, just north of Dodge Street (US Highway 20). It is in a mixed -use (residential /commercial) neighborhood near the southwest corner of the Downtown Dubuque Business district. The abutting improved former school property (Central School) had previously been acquired for re- development as multi - family housing. The owner of the school also purchased this parcel. The buyer indicated that he wanted to control this parcel for additional access and for the potential it added to what he already owned, which includes excess land beyond what is needed for the redevelopment of the school. The buyer had no specific redevelopment plans for the excess land at the time of the purchase of this parcel. Comparable Land Sale 3 Listing ID Address: 1451 White Street City: Dubuque State: Iowa County: Dubuque Township: Dubuque Sale Price: $100,000 Sale Date: 05/24/2011 Land Area: 5,120± sq.ft. (0.118 acres) Grantee: K & L Properties of Iowa, LLC Grantor: Dubuque Bank & Trust Company Development Potential: Average Street: Asphalt paved Zoning: C -4 Topography: Nearly Level Verified: Grantee (Nelson Klavitter) Utilities: All Public Type of Property Land improved with a parking lot Legal Description: Middle 1/5 of City Lot 432 Instrument: Warranty Deed Record: 2011-00007475 Assessor Parcel: 1024408013 Terms: Cash Date Inspected: 06/24/2011 Price /SF: $ 19.53 Price Per Acre: $ 847,458 Remarks: This is a rectangular parcel which is located along the west side of White Street between East 14th and East 15th Streets, in east central Dubuque. It is improved with an 18 stall asphalt paved parking lot which was in good condition at the time of sale. The buyer, an adjacent property owner, had been renting the parcel for many years, and was paying $18 /stall /month for roughly 2 years. The property was purchased for a continued parking lot use. The price per stall is $5,556. Address: S. Main & Jones St. City: Dubuque State: IA County: Dubuque Township: Dubuque Sale Price: $150,000 Sale Date: April 29, 2010 Land Area: 13,280 SF or 0.305 AC Grantee: ALB, LLC Grantor: Arcon Inc. Verified: Public Record Development Potential: Good Road Surface: Paved Concrete Zoning: C -3 Topography: Level Utilities: Public /Private Comparable Land Sale 4 Record Number: 137 Type of Property: Commercial Development Legal Description: W 93' Lt 2, Bal W 93' Lt 3 & E 20' Lts 2 & 3& Lt2B All InW1 /2 Blk 10 DBQ H Instrument: Warranty Deed Document: 2010- 00005011 Assessor Parcel: 1025429014 Terms: Cash Date Inspected: 12/10/2010 Prices /SF $ 11.30 Price Per Acre: $ 492,228 Remarks: This parcel a vacant parcel which is located at the northeast corner of the traffic control lighted intersection of South Main and Jones Streets. It includes frontage with visibility from 4 lane divided U.S. Highway 151/61, but no direct highway access. The neighborhood has begun transition from industrial uses historically to commercial /residential redevelopment. In the immediately preceding recorded document 2010 - 00005010, the buyer also acquired a restaurant/convenience store with gas immediately across Jones Street to the south of this parcel. Address: 40 -48 Main Street City: Dubuque State: IA County: Dubuque Township: Sale Price: $157,583 Sale Date: September 21, 2009 Land Area: 0.463 AC or 20,167 SF Comparable Land Sale 5 Record Number: 150 Type of Property: Commercial Legal Description: Lengthy Grantee: 40 Main, LLC Grantor: City of Dubuque Verified: Grantee (Chris Miller), Public Record Development Potential: Average Road Surface: Paved Concrete Zoning: C -4 Topography: Nearly Level Utilities: All Public Instrument: Contract * $1.00 down Assessor Parcel: 1025290019,1025290020, 1025290022,1025290023 Terms: * balance by 11/01/2015 Date Inspected: 11/11 Prices /SF: $ 7.81 Price Per Acre: $ 340,372 Remarks: This is four irregular shaped parcels which surround three sides of an existing structure which is located along the east side of Main Street, in extreme southeast Dubuque. It was purchased by the adjoining land owner to be developed as additional parking for the commercial and residential use of the building which is being rehabilitated. The buyer cannot "... construct improvements on or over any easement area without an approved site plan and the prior written approval of the City Engineer." Comparable Land Sale 6 Record Number: 1337 Address: 345 East 20th Street City: Dubuque State: Iowa County: Dubuque Township: Dubuque Sale Price: $1 ,298,125 Sale Date: 3/10/2008 Land Area. 50,771 sq.ft. or 1.166 acres Grantee: E20 WD, L.L.C. Grantor: Gronen Properties, L.L.C. Development Potential: Good Street Paved Asphalt Zoning: C -2 Neighborhood Shopping Topography: Nearly Level Verified: Grantor (John Gronen), Public Records Utilities: Public Type of Property Commercial Legal Description: Lengthy Instrument: Warranty Deed Record: 2008 -3293 Assessor Parcel: 10-24-215-010, 011, 012,013,018, 019,020,021,022,023,027 Terms: Cash/Conventional Price/SF: $ 25.57 Price Per Acre: $ 1,089,743 Date inspected: 03/05/2010 Remarks: This vacant parcel consists of 11 parcels assembled over many years, and sold after the existing improvements were removed. It is located at the northwest corner of East20th and Elm Streets at an intersection referred to a 5- Points. This property was purchased to build a new Walgreens store. Improved Comparable Sale 1 Address: 245 W. 1st Street City: Dubuque State: IA County: Dubuque Township: Assessor Parcel: 10 -25- 281 -017 Legal Description: City Lot 81 245 -265 W. 1st Street Instrument: Warranty Deed Deed Book: 2012 -23639 Grantor: Wells, William M. Grantee: Platinum Supplemental Insurance Inc. Verified: Public Record Land Area: 0.170 AC or [BDUserField2l] SF Record Number: 990 Type of Property: Retail / Under 10,000 SF Sale Price: $400,000 Sale Date: December 27, 2012 LIB Ratio: Price /SF /Land : Price /SF /Ground Floor Area : $30.98 Price /SF /Total Building Area : $73.33 Building Type: 3 -Stroy Building Condition: Ground Floor /SF: Building Area/SF: [BDUserFieldll] Building Age: Basement: Full Unfinished Utilities: Public Water /Sewer Access: Average Zoning: C -4 Remarks: Store /Retail. Subject upper floors approximately 4,000 /SFis unfinished . Main Floor operating at retail. Improved Comparable Sale 2 Record Number: 633 Address: 4099 McDonald Drive City: Dubuque State: IA County: Dubuque Township: Dubuque Assessor Parcel: 1028302005 Legal Description: Lot 1 Ward West Plaza Instrument: Special Warranty Deed Deed Book: 2012 - 00003109 Grantor: Klac Rex, LLC Grantee: SRJ Properties, LLC Verified: Grantee, Public Record, Appraiser Land Area: 0.883 AC or 38,473 SF Type of Property: Retail / More Than 10,000 SF Sale Price: $650,000 Sale Date: January 24, 2012 LIB Ratio: 3.2:1 Price /SF /Land: $16.89 Price /SF /Ground Floor Area : $54.95 Price /SF /Total Building Area : $54.95 Building Type: 1 Story Steel Building Condition: Average Ground Floor /SF: 11,830 Building Area /SF: 11,830 SF Building Age: 1995 Basement: None Utilities: Public Water /Sewer Access: Direct At Grade Zoning: C -3 Remarks: The subject property is located along the northerly side of McDonald Drive in the northeast quadrant of the intersection of US Highway 20 and Northwest Arterial in extreme west Dubuque. Access from the highway and the arterial is indirect. The parcel is improved with a 11,830 sq.ft., 1 -story, steel frame, metal clad building. A survey was done in 2007 which indicates the land size at 38,473 sq.ft. The buyers have proposed renovations to the property that will consist of splitting the building into 3 suites. One suite is intended to be wner occupied with the two additional suited being available to rent to other tenants. An estimated $190,000 is planned by the buyers to be spent on renovations. VENIRE'S lir 1 Improved Comparable Sale 3 Address: 2225 Kerper Boulevard City: Dubuque State: IA County: Dubuque Township: Assessor Parcel: 11 -18- 313 -001 Legal Description: Lengthy Instrument: Warranty Deed Deed Book: Grantor: So. Fourth Pacific Rim Finance Limited Grantee: CRDS Development LLC Verified: Public Record Land Area: 1.320 AC or 57,499 SF SF Remarks: This building was last occupied approximietly 3 years. The building was in building was purchased to be occupied by Record Number: 501 Type of Property: Industrial / Manufacturing Sale Price: $500,000 Sale Date: April 13, 2011 LIB Ratio: 1.85 :1 PriceISF /Land : Price /SF /Ground Floor Area : $16.06 Price /SF /Total Building Area : $16.06 Building Type: Industrial Building Condition: Poor Ground Floor /SF: 31.125 SF Building Area/SF: 31,125 SF Building Age: 1968 Basement: None Utilities: All Public Access: Good Zoning: H -I by Unique Balance. Prior to this sale, the building was vacant for poor condition at the time of sale, with signifcant differed maintenance. The Dubuque Sash and Door. loirt )!I,'I1� AI'11 Improved Comparable Sale 4 Record Number: Address: 299 Main Street City: Dubuque State: Iowa County: Dubuque Grantee: 73 CHS Forwards, L.L.C. Grantor: Dubuque Bank & Trust Company Legal Description: Lot 73 except the southerly 3 inches. Building Type: 4 -Story Brick Building Condition: Good to Average Land Area: 7,330 sq.ft. or 0.168 Acres Ground Floor: 7,296 sq.ft. Building Area: 29,184 sq.ft. Building Age: 1900 Basement: Full plus under sidewalk Utilities: All Public Access: Average Verified: Grantee, building drawings, Public Records Zoning: C -4 Type of Property Restaurant /Bar /Reception Sale Price: $1,731,648 Sale Date: 06/30/2010 Instrument: Warranty Deed Record: 2010- 00009411 Assessor Parcel: 1025276007 L/B Ratio: 1.00:1 Price /SF /Land: $ 236.24 Price /SF /Ground Floor Area: $ 237.34 Price /SF /Total Building Area: $ 59.34 Remarks: The property is located at the southwest corner of Main and 3rd Streets, in south downtown Dubuque, roughly 2 blocks west of the redeveloped north Ice Harbor area, a major tourist attraction in the city, with the Mississippi River farther to the east. It is also amid the redeveloped Main Street area which extends south several blocks and north to 17th Street. The buyer intends to re -open the restaurant and bar - micro - brewery on the ground floor and basement respectively, and renovate the upper floors into apartments. The basement includes area under the sidewalk, and is reported to be 7,700 sq.ft. Much of the historic preservation work required for historic tax credits had already been completed by a prior owner. Significant area on the upper floors was unfinished at the time of sale. The purchase price included personal property which contributed roughly $200,000 to the purchase price. • Improved Comparable Sale 5 Record Number: 862 Address: 44 Main St City: Dubuque State: IA County: Dubuque Township: Assessor Parcel: 1025290009 Legal Description: Lots 12, 13, 14, and 15, W1/2 Block 1, Dubuque Harbor's Company Addition Instrument: Warranty Deed Deed Book: Grantor: Flat Iron Development, L.L.C. Grantee: 44 Main, LLC Verified: Grantee, Public Record Land Area: 0.291 AC or 12,661 SF Type of Property: Warehouse / Under 30,000 SF Sale Price: $600,000 Sale Date: December 29, 2009 LIB Ratio: 1.69:1 Price/SF /Land : $47 Price/SF /Ground Floor Area : $80.00 of Price/SF /Total Building Area : $26.67 Building Type: 3 -Story Brick Building Condition: Ground Floor /SF: Building Area /SF: 22,500 Building Age: 1900 Basement: Full Utilities: All Public Access: Average Zoning: Remarks: The property is located just north of the northeast corner of Main and Jones Streets, in extreme south downtown Dubuque, immediately west of U.S. Highway 151, and 52, and immediately south of the highway link to U.S. Highway 20. Just to the northeast, across U.S. Highway 151, and 52 is the redeveloped north Ice Harbor area, a major tourist attraction in the city, with the Mississippi River farther to the east. There is a foot bridge over the highway link to the north which serves as a foot traffic link between the park across Main Street to the west of the comparable and the redeveloped Main Street area which extends north to 17th Street. There is an attached building to the south which is owned by a related party, and parking for the comparable is limited. The buyer intends to renovate the property into apartments on the top 2 floors with commercial uses on the ground floor. THOMAS F. HOWE EDUCATION: Loras College, Dubuque, IA; BA Sociology, 1968. USMC, Viet Nam, 1968 -1970 University of Iowa, Iowa City, Iowa, undergraduate and graduate studies, 1970 -71. Illinois State University, Bloomington, IL; Graduate Assistant, Sociology, 1971 -72. APPRAISAL EDUCATION: Society of Real Estate Appraisers: 101: An Introduction to Appraising Real Property /Principals, 1977 R2: Narrative Report Writing and Applications of Principles, 1978 4. Principles of Income Property Appraising, 1981 Appraisal Institute: Standards of Professional Practice Part A, 1991 Parts A & B, 1994 Part C, 2001 Updates (as required - most recent in 2012) Numerous courses and seminars, including 28 to 56 classroom credit hours bi- annually since 1991. CERTIFICATIONS, OFFICES HELD: General Real Property Appraiser, Iowa, #CG01320, since 1992 Certified General Real Estate Appraiser, Illinois, #533.002192, since 2012 Associate, Appraisal Institute Iowa Real Estate Broker, 1986 REALTOR - Broker, Dubuque Board of Realtors, 1986- Present. REALTOR - Salesperson, Dubuque Board of Realtors, 1976 -77 Iowa Real Estate Salesperson, 1976 Secretary, Cedar Valley Chapter, Society of Real Estate Appraisers, 1979 -1986 EXPERIENCE: Chief Appraiser, Kane Appraisal Services 2006 - Present Significant litigation related work (acquisitions, easements), estate related, asset distribution Associate Appraiser, Roy R. Fisher, Inc. 1998 - 2006 Industrial, Retail, Office, Medical Office, Road Improvement Acquisition, Restaurant, Land, Subdivision Development, Bank, Church, Auto Service, Auto Dealership, Farm Implement Dealership, Post Office, Nursing Home, YMCA -YWCA, School, Library, Weather Service Station, River frontage property, Life Estate, Compensation Commission Testimony, District Court Testimony Howe Appraisal, 1989 - 1998 Residential and Commercial Appraisal, Court Testimony Harvest Savings Bank (formerly Dubuque Savings & Loan Association), 1977 — 1989 Created, developed, and managed appraisal services for the bank, serving eastern Iowa, northwest Illinois, and southwest Wisconsin. Real Estate Sales, 1976 -1977 Fields of Opportunities STATE OF IOWA IOWA DEPARTMENT OF COMMERCE PROFESSIONAL LICENSING AND REGULATION THIS IS TO CERTIFY THAT THE BELOW NAMED HAS BEEN GRANTED A CERTIFICATE AS A GENERAL REAL PROPERTY APPRAISER CERTIFICATE NO. CG01320 EXPIRES: 6/30/2014 HOWE, THOMAS F KANE APPRAISAL SERVICES 14858 W RIDGE LANE, #8 DUBUQUE, IA 52003 422 Garfield Avenue 430 Garfield Avenue Appraisal Repoli of 422 and 430 GaiflelydAvenue, Dubuque, Iowa 52001 -3552 A SUMMARY APPRAISAL REPORT OF AN INDUSTRIAL TYPE PROPERTY AND A COMMERCIAL SERVICE TYPE PROPERTY DUBUQUE FURNITURE & FLOORING LOCATED AT 422 Garfield Avenue Dubuque, Iowa 52001 -3552 tai 430 Garfield Avenue Dubuque, Iowa 52001 -3552 EFFECTIVE DATE OF VALUE 20 July 2013 DATE OF REPORT 10 August 2013 PREPARED FOR CLIENT City of Dubuque Engineering Department Attn: Deron Muehring 50 W. 13th Street Dubuque, Iowa 52001 Felderman File ID: 20130720 Klauer Client Reference: Robert F. Klauer Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Felderman Appraisals Dubuque 55 Bluff Street, Dubuque, Iowa 52001 -7608 10 August 2013 Client & Intended User: City of Dubuque Engineering Department Attn: Deron Muehring 50 W. 13t' Street Dubuque, Iowa 52001 -3552 SUBJECT: Market Value Appraisal of 422 & 430 Garfield Avenue, Dubuque, Iowa (Appraiser File #20130720 Klauer) In fulfillment of our agreement, as outlined in the engagement order or agreement, we are pleased to transmit our narrative appraisal report on the above referenced real estate property. The tangible subject real estate includes a two -level structure located on a 10,421 square foot industrially zoned parcel and a two -level (one usable) structure located on a 41,712 square foot commercial service zoned parcel in Dubuque, Iowa. The property is 100% occupied by the owner or his relatives and friends. The subject is more fully described, legally and physically, within this 148 page appraisal report. This is a Summary Appraisal Report with the market value opinion listed within the appraisal report qualified by certain assumptions, limiting conditions, certifications, definitions and scope, essential data and detailed reasoning employed in reaching the opinion of value, which are set forth in the report. We particularly call your attention to any extraordinary assumptions and/or hypothetical conditions and the determined marketing and exposure times. The report in its entirety is an integral part of, and inseparable from, this letter. Data, information, definitions, method of appraisal and calculations are included in this report. It was prepared for the listed client and intended user, its successors and assigns, and sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value to meet those specific needs for the intended use stated within this report. The appraiser is not responsible for the unauthorized use of this report. The analyses, opinions and conclusions are prepared for the sole use and benefit of the client and intended user and were developed based on the entire appraisal report that follows, in conformance with Title XI Regulations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C. 3331 et seq.) and the 2010 Interagency - appraisal and evaluation guidelines; regulations adopted by the Office of the Comptroller of the Currency (OCC) pursuant to Title XI, including without limitation, interpretation of guidelines and recommendations of the Uniform Standards of Professional Appraisal Practice (USPAP) Standard 1 and 2 as promulgated by the Appraisal Standards Board of the Appraisal Foundation, and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Felderman Appraisals, Dubuque, Iowa 1 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Disclosure the contents firm communication Based property It the further of the contents of this appraisal report is governed by the By -laws and Regulations of Appraisal Institute, and state appraiser licensing entities. Neither all nor any part of the of this report (especially any conclusions as to value, identity of the appraiser, or the with which they are connected) shall be disseminated to the public by any means of without our explicit written permission. upon the analysis contained in this report, the market value of the subject real estate is concluded as follows: Market Value Conclusion Appraisal Premise As Is 422 As Is 430 (Before) As If 430 (after) AssumptionslConditions None significant None significant Hypothetical Condition Interest Appraised Fee Simple Fee Simple Fee Simple Effective Date of Value 20JuI.13 20JuI.13 20JuI.13 Marketing Time 12 months 12 months 12 months Land Market Value $120,000 $417,000 Improvement Value $108,000 $242,000 FF &E Value $0 $0 Value Before Damages $ 659,000 Business Value $0 $0 Damages Estimated $ 359,000 Total Value Conclusion $228,000 $659,000 Value After Damages $ 300,000 Compiled by Felderman Appraisals has been a pleasure to assist you in this assignment. We look future. If there are any questions or comments concerning the assistance, please contact the undersigned. I:), i forward to working analysis, or if we may 2013 with you in be of 9/30/13 2 i(i)\(. p i r - - - 10 August ROBERT J. FELDERMAN Date IA CG01134 Expires 6/30/14; WI 766 -010 Expires 12/14/13; IL 553.002107 Expires RobertFeldennanyahoo.com; Work (563) 557 -1465 Felderman Appraisals, Dubuque, Iowa Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 TABLE OF CONTENTS INVOICE COVER PAGE LETTER OF TRANSMITTAL 1 TABLE OF CONTENTS AND ADDENDA 3 CERTIFICATION 5 SUMMARY OF SALIENT FACTS 6 CONTINGENT AND LIMITING CONDITIONS AND ASSUMPTIONS 11 SCOPE OF WORK AND APPRAISAL PROBLEM 17 Market Value Definition 20 Property Interests 22 Extraordinary Assumptions 23 Hypothetical Conditions 24 Americans with Disability Act 25 Environmental Hazards 27 Report Type, Identification of the Problem 28 The Uniform Act and USPAP, Jurisdictional Exception 31 MARKET ANALYSIS AND DEMOGRAPHICS 33 Region and General Area 34 Neighborhood & Local 36 Transportation, Utilities, Government, Education 38 Employment and Economic Data 43 Industrial, Tourism and TriState Region 44 Downtown Dubuque and Westside Dubuque 51 Rankings 54 Population Trends 57 Education Trends 58 Expansion and Continuing Trends 59 Marketing Time and Exposure Time 63 Vacancy Rates 66 Market Overview 68 IDENTIFICATION OF THE PROPERTY 70 Property Ownership and Recent History 71 Physical Characteristics: Site Analysis, Legal 72 Zoning Analysis 75 Physical Characteristics: Improvements Analysis 75 Tax and Assessment Data and Analysis 83 APPRAISAL VALUATION PROCESS 84 HIGHEST AND BEST USE ANALYSIS 89 MARKET VALUE AND APPROACHES TO VALUE ANALYSIS 92 Opinion of Land Market Value 94 Cost Approach 104 Income Approach 112 Sales Comparison Approach to Value 126 RECONCILIATION OF MARKET VALUE Felderman Appraisals, Dubuque, Iowa 3 144 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Building Sketch Site Plan Area Map Aerial Map Plat Map Census Map Flood Map Zoning Map Zoning Data Traffic Count Map Historic District Map Wetlands Map Topography Map Subject Photographs Land Comparable Sales Improved Comparable Sales Listing Comparable Sales Income Comparable Rentals Comparable Sales Photographs Location Map (Subject & Comparables) Appraiser Qualifications and Errors & Omissions Bibliography Community Information and Census Data Privacy Statement Glossary of Terms Appraisal Order or Engagement Letter Assessor Description Sheet (Subject) Documentation ADDENDA Al A2 B1 B2 B3 B4 B5 B6 B7 B8 B9 B10 B11 C1 DI D2 D3 D4 D5 D6 E1 -5 F1 G1 -13 HI I1 J1 K1 L Owner Property Disclosures L1 Survey Photographs provided by owner L2 Scope of Bee Branch Project L3 Easement Map and Agreement (430 Garfield) L4 Warranty Deed 2002 (430 Garfield) L5 Warranty Deed 2009 (422 Garfield) L6 City offer to purchase 430 Garfield (6/27/13) L7 Iowa DNR UST LUST Property List L8 Feldennan Appraisals, Dubuque, Iowa 4 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 CERTIFICATION I certify that to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and my personal, impartial, and unbiased professional analyses, 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 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 immediately preceding acceptance of this assignment. 5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. 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. 8. My reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. 9. The appraiser, Robert J. Felderman, has made a personal inspection of the interior and exterior of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the person signing this certification. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 12. As of the date of this report, I (Robert J. Felderman, Candidate Member for Designation) have completed the continuing education program of the Appraisal Institute for Candidate Members. 13. As of the date of this report, I (Robert J. Felderman, Candidate Member for Designation) have completed the Standards and Ethics Education Requirement of the Appraisal Institute for Candidate Members. 14. Furthermore, the report has been prepared in conformity with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). 10 August 2013 ROBERT J. FELDERMAN Date IA CG01134 Expires 6/30/14; WI 766 -010 Expires 12/14/13; IL 553.002107 Expires 9/30/13 Felderman Appraisals, Dubuque, Iowa 5 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 SUMMARY77 OF SALIENT FACTS Type of Property Industrial Building and Commercial Service Building Property Name Dubuque Furniture and Flooring Location Address Assessor Parcel Identification78 Legal Description79 422 Garfield Avenue, Dubuque, Iowa 52001 -3552 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 10 -24- 234 -002 (422) 10 -24- 234 -003 (430) Lengthy see report Client City of Dubuque Engineering Department, Deron Muehring Intended Users of the report Client listed above Intended Use of the report Determine an Opinion of Market Value80 (as defined) for Purchase or future condemnation proceedings (no other use is permitted) Property Interest Appraised Fee Simple81 Assignment Conditions Refer to engagement order Report Option82 Summary Appraisal Report 77 The values and summary of information is subject to the definitions, assumptions and limiting conditions set forth in the accompanying report of which this summary is a part. No party other than the client may use or reply on the information opinions and conclusions in the report. The summary is for the convenience of the client and assumes that the readers and intended users of the report have read the entire report. 78 A copy of the assessor description sheet is included in the addendum area. 79 Not to be used for deed purposes, refer to the abstract of the subject for full detailed legal description. 80 See definition of Market Value later in the report. 81 Fee Simple interest is defined as, "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat;" excerpt from The Appraisal ofReal Estate. 82 In accordance with Standard Rule 2 -2 (b) of the Uniform Standards of Professional Appraisal Practice (USPAP), and as such, it presents sufficient information to enable the client and other intended users, as identified, to understand it properly. Feldennan Appraisals, Dubuque, Iowa 6 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Effective Date83 7/20/2013 Date of the Subject Property Observation 7/20/2013 Date of the Report 8/7/2013 Current Owner of Record Robert Fitzgerald Klauer Current Occupant / % of use Owner business (Dubuque Furniture and Flooring / 100% Sale Price /Sale Date Not applicable /Not Applicable Personal Property84 None included in the market value Land Area (approximate size)85 10,421 square feet (422) 41,712 square feet (430) Improvements (approximate size)86 Number of buildings 1 (one) for (422); 4 (four) for (430) Number of stories /levels Gross Building Area Year(s) Constructed / Actual Age Effective Age / Remaining Age 2 (two) in each building, but only one usable level in each, with a lower level basement for (422), and an upper level (basement -like) in (430) 8,788 square feet total with 6,008 square feet usable level (422) 27,517 square feet total with 19,667 square feet usable level (430) 1920 / 93 years old (422) 1890 / 123 years old (430) 30 years / 15 years (422, 430) 83 Effective date is established for the intended use and intended user, which may or may not be the same as the date the property was observed. Retrospective is as of a specified historical date. Prospective is as of a future date, such as completed construction or income property fully rented. 84 For most commercial or industrial buildings, personal property is considered furnishings and equipment (referred to as FF &E). 85 Obtained from sources considered accurate (i.e. City of Dubuque Assessor, City of Dubuque Auditor GIS). 86 Obtained from source considered accurate (i.e. City of Dubuque Assessor). Felderman Appraisals, Dubuque, Iowa 7 Appraisal Report of 422 and 430 GarfaeldAvenue, Dubuque, Iowa 52001 -3552 Property Assessment Data (as of 2013)87 $ 17,540 Land $136,880 Improvements $154,420 Total (422) $ 70,280 Land $181,560 Improvements $251,840 Total (430) Taxes Gross / Net (2011)88 $5,299.77 / $5,300.00 (422) $8,643.27 / $8,644.00 (430) Census Tract Map Number / Census Area89 Map 19 -061 / Area 0005.00 Special Flood Hazard Area90 No, Moderate Risk, X shaded Zoning Classification91 LI, Light Industrial (422) CS, Commercial Service (430) Historic District92 Not located in historic district Highest and Best Use As If Vacant Commercial or Industrial As Improved Commercial or Industrial Existing Use Storage for owner & family members (422) Showroom with warehouse (430) Easements /Encroachments93 No detrimental issues identified or known 87 Appraiser will list any known Special Assessments, but Client is recommended to confirm any Special Assessments with the appropriate authority 88 Iowa Tax year is from July 1 to June 30, which is based on the real property assessed value for the previous year (or last year the assessed value was updated). One -half of year's taxes are due twice each year, with payments in September and March. Taxable values are maintained on the Dubuque City and County Assessor /Treasurer web pages. This is based on the current 2011 Levy Rate of 34.32049 per $1,000 of value. 89 Refer to the addendum area for a map showing the Census Map /Area. 90 Refer to the addendum area for a map showing the Flood map and information. 91 Refer to summary or description of the zoning ordinance excerpt in Addenda. 92 Refer to the addendum area for a map showing the Historic District. 93 Obtained from sources considered reliable and accurate, but intended user must perform their own confirmation since the appraiser does not warrant this information. Feldennan Appraisals, Dubuque, Iowa 8 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 3 Year History of Options or Listings and Last Sale Date94 Estimated Marketing Time95 Estimated Exposure Time96 Hypothetical Conditions Extraordinary Assumptions Services in the past three years Privacy Statement Limiting Conditions and Assumptions Certification Jurisdictional Exception (per USPAP) As of the effective date of this appraisal, the subjects are not listed for sale, have not sold in past 60 months and there are no known contracts, agreements of sale or options to buy in effect. This is based on information obtained from the client, the owner, and local or national multiple listing services. No title search has been provided to the appraiser. 12 months 6 to 24 months None, refer to separate section of report Yes, refer to separate section of report None, refer to certification Refer to separate section of report Refer to separate section of report Refer to separate section of report The appraisal will determine an estimated opinion of market value (Fee Simple Estate), for use in ACQUISITION or EMINENT DOMAIN PROCEEDINGS of the property. The property will be valued as of the most recent observation date of the subject property. 94 Effective 01 January 2003, USPAP requires that the subject be checked for current listing information, and the history of previous sales in the past three (3) years and comparables in the past one (1) year of the effective date. To the best of the appraiser knowledge, no other sale or transfer of subject ownership has occurred within the past three years and unless stated no comparable sales in the past year from the effective date of this appraisal report. 95 Marketing time is defined as "An estimate of the amount of time it might take to sell a property interest in real estate at the estimated market value level during the period immediate after the effective date of the appraisal." This is per the Advisory Opinion from the Appraisal Standards Board of the Appraisal Foundation definition. The appraiser used research of statistical information about days on the market (area Multiple Listing Services), sale verifications and interviews of market participants. 96 Marketing period is distinguished from exposure time, "the length of time the property interest being appraiser 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." This is per the Advisory Opinion from the Appraisal Standards Board of the Appraisal Foundation definition. The appraiser used research of statistical information about days on the market (area Multiple Listing Services), sale verifications and interviews of market participants. Feldennan Appraisals, Dubuque, Iowa 9 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Financial Indicators9- Indicators for Industrial Uses Low High Average Capitalization Rates (all) 4.89% 13.69% 9.92% Warehouse Cap Rates 4.89% 11.78% 8.55% Rex R &D Cap Rates 6.57% 13.69% 10.34% Climate Controlled Cap Rates 5.81% 13.00% 9.35% Discount Rate (all, Acquisitions) 4.86% 18.33% 10.45% Indicators for Commercial Uses Low High Average Capitalization Rates (all) 4.95% 14.38% 9.79% Anchored Centers 4.95% 12.84% 9.88% Un- anchored Centers 6.02% 14.38% 10.81% Free Standing 5.48% 13.61% 10.34% Developer Survey Indicators for Midwest Minimum Maximum Average Commercial/lndustrial 10.06% 23.00% 15.49% Urban Office 10.62% 21.23% 15.60% Suburban Office 10.18% 20.85% 14.89% Retail 11.22% 23.00% 16.43% Industrial 10.06% 21.30% 15.05% Market Survey 2nd Quarter 2013 Midwest Warehouse Flexible R&D Anchored Comm Unanchored Asking Rents $ 3.91 $ 7.78 $ 14.53 $ 14.41 Reimbursable Expenses $ 1.88 $ 3.43 Vacancy Rates 7.80% 9.60% 9.10% 8.80% Effective Gross Income $ 5.17 $ 9.81 $ 11.94 $ 11.88 Expenses, Total $ 1.99 $ 3.63 $ 7.68 $ 6.92 Expense Ratio 38.48% 37.03% 64.34% 58.29% Net Operating Income $ 3.18 $ 6.18 $ 4.26 $ 4.95 OAR Capitalization Rate 9.40% 9.10% 7.10% 7.60% Gross Rent Multiplier 9.06 9.10 4.77 5.25 Effective Gross Income Multiplier 6.53 6.88 5.00 5.48 97 Not all of the indicators are needed or used in the report valuation, but provided as part of the research completed in the analysis of the subject property. Data obtained from Realty Rates Investor Survey, Developer Survey and Market Survey for most current quarter of year, based on the type of property. Feldennan Appraisals, Dubuque, Iowa 10 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 CONTINGENT AND LIMITING CONDITIONS AND ASSUMPTIONS The certification of the appraiser(s) appearing in this appraisal report is subject to the following Contingent and Limiting Conditions and Assumptions: 1. This report is intended to comply with the reporting requirements set forth under Standard Rule 2 -2(b) of the Uniform Standards ofProfessional Appraisal Practice. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraisers' opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraisers' file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for unauthorized use of this report. 2. Be advised that the people and appraisers associated with Felderman Appraisals are independent contractors. 3. Limits ofLiability: The liability of Felderman Appraisals and/or Independent Contractor(s) is limited to the client only and to the fee actually received by them. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limited conditions and assumptions of the assignment and related discussions. The appraiser is in no way to be responsible for any costs incurred to discover or correct any deficiency of any type present in the property; physically, financially, and /or legally. In the case of limited partnerships or syndication offering or stock offerings in real estate, the client agrees that in case of lawsuit (brought by lender, partner or part -owner in any form of ownership, tenant or any other party), any and all awards, settlements of any type in such suite, regardless of outcome, the client will hold the appraiser completely harmless in any action. 4. The appraiser must provide prior written consent before the client or intended user specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identify and professional designations, and references to any professional appraisal organizations of the firm with which the appraiser is associated) to anyone other than the borrower, the mortgage of its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department agency, or instrumentality of the United States or any state of the District Of Columbia; except that the client or intended user may distribute the property description section of the report only to data collection or reporting service (s) without having to obtain the appraiser's prior written consent. 5. Possession of this report, or a copy thereof, does not carry with it the right of publication. It is a privilege communication. It may not be used for other than its intended use; the physical report(s) remain the property of the appraiser for the use of the client, the fee being paid is for the analytical services only. 6. All furnishings, equipment and business operations, except as specifically stated and typically considered as part of real property, have been disregarded with only real property being considered in the report unless otherwise stated. Felderman Appraisals, Dubuque, Iowa 11 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 7. It is assumed there is an adequate supply of energy and there will be adequate available energy in the future. 8. It is assumed that any mechanicals are in working condition, that the appraiser observation is not construed as an engineering inspection for structural soundness or physical condition, that information provided by others is accurate (such as land and building measurements from assessor, documents [deeds, easements, etc.] and values from recorder, maps from auditor, zoning from the zoning department, etc.) and that any new or updated improvements summarized will be completed by a specified future date. 9. Any existing or proposed improvements, on or off -site, as well as any alterations or repairs considered, are assumed to be completed in a workmanlike manner according to standard practices based upon the information submitted to the appraiser. This report may be subject to amendment upon re- inspection of the subject subsequent to repairs, modifications, alterations and completed new construction. 10. Unless otherwise specifically noted in the report, it is assumed that title to the property or properties appraiser is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. The appraiser is not aware of title defects nor have they been advised of any unless specifically noted in the report. The appraiser has not examined the title and makes no representations relative to the condition thereof. No responsibility is assumed for matters of legal nature affecting title to the property nor is an opinion of title rendered. The title is considered to be good and marketable. The value estimated is given without regard to title, boundaries, encumbrances, or encroachments. 11. Unless otherwise specifically noted, the property is appraised free and clear of any or all liens or encumbrances. The appraiser assumes no private deed restrictions limiting the use of the subject in any way. 12. The appraiser assumes that the subject will be operated under responsible ownership and competent property management and ownership; neither inefficient nor super - efficient. The appraiser has no control over management; however, the appraiser considers the management of this investment of prime importance. Reasonable and prudent (not exceptional) management practices and expertise is assumed (anticipated) in the appraisal. Should the present or prospective owner be unable and or unwilling to take those action required by reasonable and prudent management practices to meet financial goals and or reasonable expectations, we recommend a careful reconsideration of the investment risk. 13. All data which was furnished by others and contained herein is believed reliable and the appraiser reserves the right to adjust the determined values should any data provided by others be found different or in error. However, no warranty is given for its accuracy. The comparable data relied upon in this report has been confirmed by one or more parties familiar with the transaction or from affidavit or other source thought reliable; all are considered appropriate for inclusion to the best of our factual judgment and knowledge. An impractical and uneconomic expenditure of time would be required in attempting to furnish unimpeachable verification in all instances, particularly as to engineering and market - related information. It is suggested that the client consider independent verification as a prerequisite to any transaction involving the sale, lease, or other significant commitment of funds or property. Felderman Appraisals, Dubuque, Iowa 12 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 14. Unless otherwise specifically noted, all engineering is assumed to be correct and shall not be considered a report on the physical items that are a part of this property. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 15. The appraiser has inspected, as thoroughly as possible by observation, the land; however, it is impossible to personally inspect beneath the soil. Therefore, it is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 16. Unless specifically noted elsewhere, it is assumed there are no mineral deposits or subsurface rights of value involved in this appraisal, whether they are gas, liquid or solid. Nor are the rights associated with the extraction or exploration of such elements considered unless otherwise stated in the appraisal report. 17. Unless specifically stated elsewhere, it is assumed there are no air rights or development rights or navigational rights of value that may be transferred. 18. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 19. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined, and considered in the report. 20. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 21. It is assumed that the utilization of the site and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless specifically noted in the report. 22. The forecasts, projections, or operating estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions. 23. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraisers. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea - formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 24. The appraiser may have provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. Felderman Appraisals, Dubuque, Iowa 13 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 25. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. The appraiser is not a surveyor, and makes no guarantees, express or implied, regarding this determination of flood area. 26. Any maps, plats, sketches, graphs, photographs and exhibits included in this report are for illustration purposes only and are to be utilized only to assist in visualizing matters discussed within this report. Unless specifically stated, data relative to size or area of the subject and comparable properties has been obtained from sources deemed accurate and reliable. None of the exhibits or addendums is to be removed, reproduced, or used apart from this report. 27. The appraiser has researched the subject market area and selected recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and has made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, the appraiser made a NEGATIVE adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, the appraiser made a POSITIVE adjustment to increase the adjusted sales price of the comparable. 28. When the invoice for appraisal, consultation or analytical service is fulfilled, the total fee is payable upon completion. Unless specific arrangements beforehand, the appraiser will not give testimony or appear in court because he made an appraisal of the property in questions. The appraiser prepares all assignments ready to testify regarding the subject property, but only based upon an agreement of fees for that service. The appraiser shall not be required to give testimony in any court or administrative proceeding relating to the subject property or the appraisal. Any post appraisal consultation with the client or third parties will be at an additional fee. If testimony or deposition is required because of any subpoena, the client shall be responsible for any additional time, fees, and charges regardless of issuing party. 29. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or the firm with which the appraisers are connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without prior written consent and approval of the appraisers. The appraiser's written consent and approval must be obtained before the appraisal can be conveyed by anyone. 30. The appraiser may have provided an Opinion of Land Value in the Cost Approach to Value using the lands highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 31. Unless otherwise stated in the appraisal, compliance with the requirements of the Americans with Disabilities Act of 1990 (ADA became effective January 26, 1992) has not been considered in arriving at the opinion of value. Failure to comply with the requirements of ADA may adversely affect the value of the property. The appraiser recommends that an expert in this field be employed, and it is assumed any improvements meet ADA requirements or are not required to be met. Feldennan Appraisals, Dubuque, Iowa 14 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 32. It is improper to base a conclusion or opinion of value upon the premise that the racial, ethnic or religious homogeneity of the inhabitants of an area or of a property is necessary for maximum value. Racial, religion and ethnic factors are deemed unreliable predictors of value trends or price variance. It is improper to base a conclusion or opinion of value, or a conclusion with respect to neighborhood trends, upon stereotyped or biased presumptions relating to race, color, religion, sex or national origin or upon unsupported presumptions relating to the effective age or remaining life of the property or the life expectancy of the neighborhood in which it is located. The appraisers did not base, either partially or completely, any analysis and /or opinion of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 33. Any estimate ofMarket Value is as of the date indicated; based upon the information, conditions and projected levels of operation; is subject to change with market fluctuations over time. Market value is highly related to exposure, time promotion effort, terms, motivation and conclusions surrounding the offering. Value estimates consider the productivity and relative attractiveness of the property, both physically and economically, on the open market. 34. All valuations in the report are applicable only under the determined Highest and Best Use and are not necessarily applicable under other programs of use. 35. The distribution of the total valuation in this report between land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The valuation of a component part of the property is applicable only as part of the whole property and are invalid if so used. 36. The opinion of value is only as of the date stated in the appraisal. Changes since that date in external or market factors or in the property itself can significantly affect property value. The appraisal is based on market conditions that exist as of the date of the appraisal. Under the terms of engagement, we will have no obligation to revise this report to reflect events or conditions which occur subsequent to the date of the appraisal. However, the appraiser will be available to discuss the necessity for revision resulting from changes in economic or market factors affecting the subject. 37. As part of the scope of work, an estimate of insurable value or a cost approach may be provided in the appraisal report. The appraiser has followed traditional appraisal standards to develop reasonable calculations based upon industry practices and industry accepted publications such as the Marshall Valuation Service handbook. The methodology employed is a derivation of the cost approach which is primarily used as an academic exercise to help support the market value estimate and there is not reliable for Insurable Value estimates. Actual construction costs and related estimates can vary greatly from this estimate. The analysis should not be relied upon to determine proper insurance coverage and is provided to aid the intended user as part of their overall decision - making process and no representations or warranties are made by the appraiser regarding the accuracy of this estimate and it is strongly recommended that other sources be utilized to develop any estimate of insurable value. 38. Any value estimate provided in the report applies to the entire property, and any pro ration or division of the title into fractional interests will invalidate the value estimate, unless such pro ration or division of interests has been set forth in this appraisal report. Felderman Appraisals, Dubuque, Iowa 15 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 39. Client shall indemnify or hold Appraiser harmless, to the extent that the Client misrepresents, distorts, or provides incomplete or inaccurate appraisal results to others, which acts of the Client approximately result in damage to the Appraiser. Notwithstanding the foregoing, the Appraiser shall have no obligation under this section with respect to any loss that is caused solely by the active negligence or willful misconduct of a Client and is not contributed to by any act or omission (included any failure to perform any duty imposed by law) by Appraiser. Client shall indemnify and hold Appraiser harmless from any claims, expenses, judgments or other items or costs arising as a result of the Client's failure or the failure of any of the Client's agents to provide a complete copy of the appraisal report to any third party. In the event of any litigation between the parties, the prevailing party to such litigation shall be entitled to recover, from the other, reasonable attorney fees and costs. 40. Unless specifically noted elsewhere, nothing contained in the appraisal report shall be construed to represent any direct or indirect recommendation by the appraiser to buy, sell or hold the properties at the value stated. Such decisions involve substantial investment strategy questions and must be specifically addressed in consultation form. 41. Unless specifically noted elsewhere, the appraiser is not aware of any contemplated public initiatives, governmental development controls, or rent controls that would significantly affect the value of the subject. 42. Unless specifically noted elsewhere, it is assumed that no changes in the present zoning ordinances or regulations governing use, density or shape are being considered. 43. The appraiser(s) reserves the right to alter statements, analysis, conclusion or value estimated contained in the appraisal if a fact(s) pertinent to the appraisal process unknown prior to the completion of the appraisal is /are discovered. 44. The fee for this appraisal or study is for the service rendered and not for the time spent on the physical report or the physical report itself. Compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 45. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 46. Acceptance and or use of this report constitutes full acceptance of the Contingent and Limiting Conditions and Assumptions set forth in this report. It is the responsibility of the Client, or client's designees, to read in full, comprehend and thus become aware of the aforementioned contingencies and limiting conditions. Neither the Appraiser nor Felderman Appraisals assumes responsibility for any situation arising out of the Client's failure to become familiar with and understand the same. The Client is advised to retain experts in areas that fall outside the scope of the real estate appraisal or consulting profession if so desired. Felderman Appraisals, Dubuque, Iowa 16 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 SCOPE OF WORK AND APPRAISAL PROBLEM The USPAP provides guidelines for the process to be undertaken by the Scope of Work Rule, to which all appraisal professionals must adhere, and the scope of work for this appraisal assignment involved the following: 1. Identified the problem to be solved; determine and perform the scope of work necessary to develop credible assignment results; and disclose the scope of work in the report; 2. Physical observation of the subject property and its environs, as is, to analyze social, economic, governmental and environmental forces, which create and affect value; 3. Researched public records to determine ownership and other pertinent information; 4. Analyzed data concerning the subject including site, utilities and municipal services, zoning, taxes, easements and restrictions both governmental and non - governmental. It is the clients responsibility to determine information regarding restrictions such as zoning and flood plain districts; 5. Analyzed and opined a Market Analysis that describes the overall supply and demand for like property in the identified market area; 6. Analyzed and opined the Highest and Best Use of the site as vacant and the property as improved (or as if improved or remodeled) with regard to uses that would be physically possible, legally permissible, financially feasible and maximally productive; 7. Researched various incentives made available to ownership; 8. Researched demographic and regional economic conditions; 9. Analyzed market regional, local and neighborhood data (supply and demand); 10. Analyzed pertinent market conditions, marketing time, exposure time and market trends for the property type, as required by USPAP; 11. Identified and investigated appropriate cost, income and sales data (land & improved); 12. Developed a valuation analysis of the land using the sales comparison approach method; 13. Developed a Cost Approach, using analysis of appropriate cost information; 14. Developed an Income Approach, using analysis of potential income & expenses; 15. Developed a Sales Comparison Approach, using analysis of similar property sales; and 16. Reconciled the applicable value indications into a final opinion of Market Value (as is) as of the effective date and determined property rights. Data and information which was furnished by others and contained herein is believed reliable and the appraiser reserves the right to adjust any and all values should any data provided by others be found different or in error. Felderman Appraisals, Dubuque, Iowa 17 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Identification of the Client and Intended User98 City of Dubuque Engineering Department (Deron Muehring) is identified as the client and intended user. Identification of the Intended Use The intended use is of this report is to assist the client and intended user in determining the market value of the real estate property identified in this report. The client and intended users, intended use of the appraiser's opinions and conclusions, type and definition of value, effective date of the appraiser's opinions and conclusions, and assignment conditions are listed in the report. The appraisal will result in an AS IS opinion of Market Value of both properties, and a hypothetical condition opinion of Market Value of 430 Garfield Avenue AS IF the 10,640 square northern warehouse /showroom and 13,030 square feet part of the land are taken, using the Scope of Work to develop credible results. Observation Date of Appraisal The appraiser, R. J. Felderman observed the subject property on 20 July 2013 with Robert Klauer (owner) present for the subject property observation. The observation included an interior and exterior view of the improvements, the site and the area. All of the comparables used in this report have been observed or verified with reliable sources, unless otherwise indicated, and information provided by others is deemed accurate. They have been checked for previous sales, and if any in the past year will be noted on the data sheets in the addendum area of the report. Should any data or information from other sources (public or private) that are relied upon in this appraisal report be found to be in error, we reserve the right to adjust the determined opinion of value in any of the three approaches to value and the final opinion of market value. 98 The intended user is the person or entity who the appraiser intends will use the results of the appraisal. Appraisal Institute, The Appraisal of Real Estate 13`h Edition, Chicago 2010 Feldennan Appraisals, Dubuque, Iowa 18 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Specific Considerations In the preparation of this appraisal report, the type and extent of data researched will include the investigation of numerous vacant land and improved sales in the subject's market, analyzed rental and cost data, with considered input of buyers, sellers, brokers, property developers and city officials. The appraiser may have collected, researched and analyzed information about the subject from the owner or representative, public records and an observation of the property and other sources (public and private)99 necessary to gather data in the course of completing the appraisal assignment, such as; • U.S. Postal Service • U.S. Department of Agriculture (ASCS) • City and County or Township Assessors, Recorders, Auditors and /or Treasurers • City and County or Township Zoning Departments, Township Engineers • City and County or Township Community Development Organizations or Departments • Local state or national chamber of commerce or economic development organizations • Local and national cost sources such as Marshall Valuation Service • Local and national multiple listings services • Appraiser files of previous observations or appraisals, and market information • Discussions with real estate investors and owners, brokers, managers and/or appraisers • U. S. Census Bureau; or Federal Emergency Management Agency Flood Insurance Maps There are certain limits imposed upon the development of this appraisal assignment by my expertise and by my client. I may have been unable to investigate all aspects of the property appraised. Therefore, it was necessary to make certain assumptions and limiting conditions in the development of the opinion of value, generally concerning the title of the property, and the physical and functional characteristics of the property. Therefore, the appraisal is subject to the certification, assumptions and limiting conditions included in this report. USPAP Compliance This appraisal report is being prepared for the addressee, the client and intended user, and has been written in conformance with my understanding of the Uniform Standards of Professional Appraisal Practice as promulgated by The Appraisal Foundation and the Appraisal Institute. 99 Often information is obtained from web pages provided by those entities listed above. The appraiser considers such information accurate and correct. As deemed appropriate, the appraiser may include some information in the addenda. Felderman Appraisals, Dubuque, Iowa 19 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 FIRREA Compliance A specific set of guidelines applicable to regulated banking institutions identify the components of a safe and sound program for performing appraisals and evaluations for real estate - related financing transactions. Those guidelines provide guidance on implementing the appraisal regulations promulgated in accordance with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The original guidelines were jointly issued in October 1994 by the OCC, FRB, FDIC and OTS. They were revised in December 2010 by the OCC, FRB, FDIC, OTS and NCUA, and became effective December 10, 2010 when they were published in the Federal Register, Vol. 75, No. 237, December 10, 2010. This appraisal is prepared in accordance with those guidelines. This appraisal is prepared in accordance with those guidelines listed above, even though the client and intended user of this report does not plan to use the appraisal for financing purposes, and the report meets those established standards and requirements. Market Value Definition'°° Market Value is a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights101), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. The definition of Value used by agencies that regulate federally insured financial institutions in the United States102: 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 and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms offinancial 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. 100 The Uniform Standard of Professional Appraisal Practice, The Appraisal Foundation 101 The bundle of rights consist of the right to sell a property or its components (oil, water, sand, gravel), the right to occupy real estate, the right to lease a property, the right to mortgage a property and the right to create a life estate. 102 Definition was obtained from 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994. Feldennan Appraisals, Dubuque, Iowa 20 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The International Valuation Standards includes the following definition ofMarket Value: the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's - length transaction after proper marketing where in the parties had each acted knowledgeable, prudently and without compulsion. Disposition Valuelo3 is defined as (but not used in this report): 1. Consummation of a sale within a future exposure time specified by the client. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. An adequate marketing effort will be made during the exposure time specified by the client. 8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. 9. 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. This definition can also be modified to provide for valuation with specified financing terms. Liquidation Value104 is defined as (but not used in this report): 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing time is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. 9. 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. This definition can also be modified to provide for valuation with specified financing terms. 103 The Dictionary ofReal Estate Appraisal, The Appraisal Institute, Chicago Illinois 104 The Dictionary ofReal Estate Appraisal, The Appraisal Institute, Chicago Illinois Feldennan Appraisals, Dubuque, Iowa 21 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Property Interests) os Regardless of the type of ownership, the owner of real property is said to have an interest in that property. For this appraisal, the value of Fee Simple Interesti°6 will be presented. Fee Simple interest is defined as, "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat." Other interests considered, but not selected in this report, are: Leased Fee interest is an ownership interest held by the owner /landlord with the rights of use and occupancy conveyed by a lease to others by specified contract terms contained within the lease. A leased fee generally provides the lessor with the right to be paid by the lessee under stipulated terms, the right of repossession at the termination of the lease, default provisions, and the right of disposition (including the rights to sell, mortgage, or bequeath the property) subject to the lessee's rights, during the lease period. Leasehold interest is held by the lessee (tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions. It involves the right to possess the property for the lease period, or to sublease and to improve the property under certain lease restrictions, for the obligation to pay rent, surrender possession at the termination of the lease, to remove any improvements the lessee modified or constructed, and abide by the lease provisions. When an assignment involves the valuation of a leased fee interest, the appraiser often must also appraise the fee simple interest. If the rent and/or terms of the lease are favorable to the landlord (lessor), the value of the leased fee interest will usually be great than the value of the fee simple interest, resulting in a negative leasehold interest. If the rent and /or terms of the lease are favorable to the tenant (or lessee), the value of the leased fee interest will usually be less than the value of the fee simple interest, resulting in a positive leasehold interest. 105 The Appraisal of Real Estate, The Appraisal Institute, Chicago, Illinois 106 Fee Simple interest which can be broken into groups of property interests, including the economic interests of Leased Fee and Leasehold interests, legal interests such as life estates and easements, physical interests such as air and subsurface rights, and financial interests such as debt and equity. Feldennan Appraisals, Dubuque, Iowa 22 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Extraordinary Assumptions An extraordinary assumption is defined by the Uniform Standard ofProfessional Appraisal Practice as "an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis." These assumptions include items such as future rentals of a new construction provided with prospective value, or an assumption that if incorrect may change the determined current value or the problem. If any, the appraiser will disclose them, and summarize how their use may have affected the assignment results. * * See the extraordinary assumption listed for American with Disabilities Act (ADA), unknown environmental conditions and other limiting assumptions. * * The appraiser makes the extraordinary assumptions that the information provided by the owner (square footages, property condition, improvements cost and quality) and the client, or others, is true and correct since it is relied upon for value estimates. Felderman Appraisals, Dubuque, Iowa 23 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Hypothetical Conditions A hypothetical condition is defined by the Uniform Standard of Professional Appraisal Practice (USPAP) as "that which is contrary to what exists but is supposed for the purpose of analysis defines a hypothetical condition. Hypothetical conditions are conditions contrary to known facts about physical, legal or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis." USPAP considers the following language, "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis." These could include items such as new construction or remodeling additions that would be part of the current value, but are subject to completion. If any are found, the appraiser will summarize them; label them as hypothetical and summarize how their use may have affected the assignment results. * * No hypothetical conditions are identified for this appraisal report for the AS IS value of both property. ***The property that has the proposed taking of the northern showroom and warehouse section (10,640 square feet of building and 13,030 square feet of land) is the hypothetical condition to determine the estimate of market value. Feldennan Appraisals, Dubuque, Iowa 24 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Americans with Disability Act The following information is provided for the clients' knowledge and is not a certification of acceptability and it remains the client or owner responsibility to determine that a property does meet Americans with Disabilities Act (ADA) requirements. If the subject is vacant land, this information does not apply but provides the basis for possible future construction. The ADA became effective in 1992 for firms with more than 25 employees, 1994 with more than 15 employees and businesses such as restaurants, hotels and retail stores. New construction is required to comply after January 26, 1992; and the most recent updates were in 2008. Alterations to a place of public accommodation or commercial facility covered by Title III of the ADA that are undertaken after January 26, 1992 are required to be done in a manner so as to ensure that, to the maximum extent feasible, the altered portions of the facility comply with ADA. There is a checklist available on a government webpage for further determination of requirements.107 ADA applies to new construction and alterations of "places of public accommodation and commercial facilities." A "place of public accommodation" is a facility, operated by a private entity, whose operations affect commerce and which falls within at least one of the twelve categories listed below: 1.An inn, hotel, motel, or other place of lodging, except for an establishment located within a building that contains not more than five rooms for rent or hire and that is actually occupied by the proprietor of the establishment as the residence of the proprietor; 2. A restaurant, bar or other establishment serving food or drink; 3. A motion picture house, theater, concert hall, stadium, or other place of exhibition or entertainment; 4. An auditorium, convention center, lecture hall, or other place of public gathering; 5. A bakery, grocery store, clothing store, hardware store, shopping center, or other sales or rental establishment; 6. A Laundromat, dry cleaner, bank, barber shop, beauty shop, travel service, shoe repair service, funeral parlor, gas station, office of an accountant or lawyer, pharmacy, insurance office, professional office of a health care provider, hospital, or other service establishment; 7. A terminal, depot, or other station used for specified public transportation; 8. A museum, library, gallery, or other place of public display or collection; 9. A park, zoo, amusement park, or other place of recreation; 10. A nursery, elementary, secondary, undergraduate, or postgraduate private school, or other place of education; 11. A day care center, senior citizen center, homeless shelter, food bank, adoption agency, or other social service center establishment; 12. A gymnasium, health spa, bowling alley, golf course, or other place of exercise or recreation. 107 Refer to http: / /www. access - board .gov /adaag /checklist /a16.html for specific guidelines and checklist for ADA requirements. Felderman Appraisals, Dubuque, Iowa 25 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 "Commercial facilities" are facilities whose operations will affect commerce and that are intended for nonresidential use by a private entity (e.g., factories and warehouses). As a place of employment, if there are less than 15 employees the building may be exempt (except for restaurants, hotels and retail stores), and if 15 or more employees the owner does not need to install improvements for employees if it would impose "undue hardship ". An employer does not have to provide a reasonable accommodation if it imposes an "undue hardship." Undue hardship is defined as an action requiring significant difficulty or expense when considered in light of factors such as an employer's size, financial resources, and the nature and structure of its operation. The information is provided to assist the owner, client and any user of this report to understand ADA requirements. Public accommodations that make alterations that affect or could affect the usability of or access to an area of a facility used by the public are required to ensure that, to the maximum extent feasible, the path of travel to the altered area and the restrooms, telephones, and drinking fountains serving the altered area and readily accessible to and usable by individuals with disabilities, including wheelchairs, unless the cost and scope of such alterations is disproportionate to the cost of the overall alteration. Alterations made to provide an accessible path of travel to the altered area are deemed disproportionate to the overall alteration when the cost exceeds 20% of the cost of the alteration to the area of the facility used by the public. When the cost of alterations necessary to make the path of travel to the altered area fully accessible is disproportionate to the cost of the overall alteration the path of travel shall be made accessible to the extent that it can be made accessible without incurring disproportionate costs. Alterations to a qualified historic building or facility must comply with ADA unless it is determined in accordance with procedures described in ADA that compliance with certain requirements would threaten or destroy the historic significance of the building or facility. The appraiser has not made a specific compliance survey analysis of the subject property to determine whether it is in conformity with the ADA. For some users it may have an effect on the value and the appraiser reserves the right to review and make any adjustments (if necessary) to the value determined in this report. The subject building DOES appear to meet the ADA requirements (or may not have to meet them due to the excessive costs to comply, or are not required), and the appraiser is making the extraordinary assumption that the improvements meet the ADA. If this is found to the contrary, we reserve the right to adjust the determined opinion of value in any of the three approaches to value and the final market value if information used from other sources is found to be in error. Felderman Appraisals, Dubuque, Iowa 26 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Environmental Hazards There are no known indications of potential adverse environmental conditions or materials in the subject or on the site, based on the appraiser review of the Iowa Department of Natural Resources (DNR) Underground Storage Tank (UST and Leaking UST (LUST) Reports.los While there are indications of known underground tanks in the area, the appraiser has not identified any known to affect the subject property. There is no indication of any known contamination to the subject. However, only a Phase II Environmental Assessment would be able to determine if the subject site has any underground contamination, radon, lead paint, or if asbestos materials are present. The appraiser always recommends that such an assessment be completed before transfer of any property that may be suspected of contamination. The TriState Region has a history of lead mining, with old mines and mineshafts located throughout. The appraiser has no knowledge of such mines or shafts problematic to the subject real property. The appraiser has NOT performed any tests for UNDERGROUND CONTAMINATION, RADON, ASBESTOS or LEAD PAINT. The value determined in this appraisal report takes the assumption that there are no contaminated items having a negative effect of the property. If an environmental condition is identified that was not previously known or provided to the appraiser, with a cost to cure, the appraiser reserves the right to adjust the determined opinion of value in any of the three approaches to value and the final market value. 108 Information available on IOWA DNR website, https: // programs .iowadnr.gov /tanks /pages /advanced.aspx is included in the addendum area (L8) for property in Dubuque and the property within a block of the subject (501 Garfield Avenue). Felderman Appraisals, Dubuque, Iowa 27 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Report Type A Scope of Work in an appraisal is acceptable when it meets or exceeds the expectations of the parties who are regularly intended user and uses for similar assignments, and what an appraiser peers' actions would be in performing the same or a similar assignment. The Scope of Work identifies a problem that requires a solution, then determines and performs the Scope of Work necessary to develop credible assignment results, and discloses the Scope of Work in the report. The problem and scope of work process is included throughout the report. The appraiser, at the beginning of an assignment, will communicate with the client to gather information for problem identification and from there determine a scope of work based on their training, experience and judgment to determine a scope of work that produces credible assignment results. The Scope of Work may change during the course of an assignment. Say the assignment starts out to develop only the sales approach, but the appraiser determines the property has rental income, thus the income approach would also apply. There are three acceptable types of appraisal reports (Self - Contained, Summary or Restricted Use). The primary difference between the Self - Contained Appraisal Report, Summary Appraisal Report and Restricted Use Appraisal Reporti°9 are the words "describe ", "summarize," and "state" as they are used in the report. All of the report types must state the identity of the client, the intended use of the appraisal, the real property interest, the purpose, the effective date of the appraisal, the date of the report, extraordinary assumptions or hypothetical conditions must be clear and conspicuous (and indicate how they affect the assignment results), limiting conditions and use of the real property. This appraisal is presented in a Summary Appraisal Report format (the most commonly used), intending to comply with the current reporting requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), adopted by the Appraisal Foundation. In addition, the report was prepared to conform to the requirements of the Code of Professional Ethics of the Appraisal Institute and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Title XI Regulations. This appraisal will present a final reconciliation (conclusion). 109 A Restricted Use Appraisal Report assumes that there is only one client and that they are knowledgeable in matters of real estate, since the report is limited in context. There are a limited number of circumstances that would allow use of a restricted report, especially not if there is any financing, sale, or purchase, since it has restricted utility. The use of this report MUST include a statement of information significant to the solution of the appraisal problem, the extent of the process, and that the information is maintained in a work file for the client to review. The restricted use report must make specific reference to the existence of information in the work file and must be available upon request (work file must contain enough information to complete a Summary Appraisal Report, such as adjustments made). If this type of report is used, it will be noted conspicuously in the report. Felderman Appraisals, Dubuque, Iowa 28 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 This report will appropriately describe, summarize or state information to identify the real property and /or personal property involved in the appraisal including the physical and economic property characteristics relevant to the assignment, the Scope of Work to develop the appraisal, the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions including the exclusion of the sales comparison approach, cost approach, or income approach will be explained, and it will include a signed certification. The Cost Approach to Value, Income Approach to Value and Sales Comparison Approach to Value are considered, and if not used in the determination of Market Value the appraiser will explain why in the reconciliation. A final opinion of Market Value will be reconciled from these approaches and any approach not developed or not deemed credible in determining the opinion of Market Value will have an explanation within the report. The Market Value determined in the report is based on using the appraiser explanation of highest and best use, unless otherwise stated. The valuation process is a systematic procedure developed to produce well - researched and well- supported opinions of real property value. The appraisal process consists of a progressive series of steps, beginning with the definition of the valuation problem. This process includes defining the highest and best use (as or as if vacant and as or as if improved). The process proceeds through the collection of data (property, regional, city, county and neighborhood) pertinent to the scope and market analysis, which includes the selection and application of appropriate analytical approaches, the reconciliation of value indications, and the final opinion of value. The process is complete with the value conclusion placed in the report. The steps in the process and the methods of analysis are adaptable to many appraisal situations. The valuation process is primarily for Market Value appraisals, but it provides a general framework for most valuation assignments. To understand the opinions presented in this report, the addendums, assumptions & limiting conditions and other data must be read in their entirety. If any data or information from other sources (public or private) relied upon in this appraisal report are found to be different than presented or in error, the appraiser reserves the right to adjust the determined opinion of value in any of the three approaches to value and /or the final opinion of market value, if applicable. Felderman Appraisals, Dubuque, Iowa 29 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Identification of the Problem The client indicated there were no special forms to be completed. The appraiser has considered appropriate jurisdictional rules or laws and none were identified that would impact the ability to comply with USPAP. The problem includes providing a valuation of the two parcels AS IS and the hypothetical condition that part of the building and land from 430 Garfield Avenue will be taken for utility use. The AS IS property values may be used for a total taking of the two parcels, and the appraiser researched the valuation of the two parcels as one complex. However, the appraiser research determined that the two different zonings, two different lots and two different buildings would not be supportive of the highest and best use of each property, so a complex value is not provided in this report.l io The Iowa Constitution requires the payment of just compensation when private property is acquired for public use. The amount the acquisition agent offers as just compensation for the property will not be less than the amount of the approved appraisal. Any fencing that is removed for the proposed taking is considered in the valuation and there are no outdoor advertising devices in the proposed taking. Competency Statement The appraiser qualifications are included in this report, and serve as evidence of competence for the completion of this appraisal assignment in compliance with USPAP as promulgated by the Appraisal Standards Board of the Appraisal Foundation and professional organization membership such as The Appraisal Institute. The appraiser has full knowledge and pervious experience with this property type; combined with the professional qualifications, business, professional and academic affiliations, are commensurate with the complexity of this assignment; and there is no lack of knowledge or experience that would prohibit this assignment to be completed. The appraiser has appraised real estate since 1984 and has the competency to complete the assignment associated with this report. Refer to the addenda for the appraiser qualifications, previous clients and types of appraisals previously completed. Value Rounding Statement The appraiser will perform math calculations throughout the report using Excel Computer Program. As a point of clarification, these Excel spreadsheets often use automatic rounding of calculations. However, when applicable, the appraisal will round values to the nearest thousand dollars (or if different will so state) and these features might account for slight discrepancies in rounding. However, the spreadsheet internally calculates for decimal points therefore, the net adjustments are considered accurate for the purposes of the report calculations. 110 The appraiser has the information on the valuation of the complex in work files. Feldennan Appraisals, Dubuque, Iowa 30 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The Uniform Act and USPAP111 In Iowa, Certified and Associate Real Property Appraisers (General and Residential) who provide eminent domain appraisal services, are required to comply with the Uniform Standards of Professional Appraisal Practice (USPAP), the Uniform Relocation Assistance and Real Property Acquisition Regulations for Federal and Federally Assisted Programs (Uniform Act), the Iowa Constitution, statutory and case law and state administrative law and policy. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Uniform Act) 42 U.S.C. 4601 -4655, implemented at 49 CFR 24.302. The Federal Uniform Act applies to all programs or projects that are undertaken by Federal Agencies or with Federal financial assistance, and, which require the acquisition of real property or which cause the displacement of any person. The State of Iowa has codified the Federal Uniform Act so that in Iowa the Federal Uniform Act procedural standards for eminent domain appraisals are also the State of Iowa's procedural standards. It references the Federal Uniform Act of 1970, as amended, which is also known as Public Law 91 -646 as implemented in 49 CFR 24.102, 24.103(3) and 24.105. Chapter 543D of the Iowa Code, Real Estate Appraisals and Appraisers, applies to general commercial market USPAP appraisals and to Iowa eminent domain appraisals, all of which must comply with the appraisal standards contained in the Iowa Constitution, statutes, judicial (case) law and this manual. • Only those eminent domain appraisals which comply with Iowa eminent domain law and this manual may be approved by a Certified General Real Property Appraiser. • Certified General Real Property Appraisers are responsible to identify and comply with required Iowa eminent domain appraisal standards in the performance of an eminent domain appraisal. For all Iowa eminent domain Appraisals the mandatory appraisal requirements are the: • Iowa Constitution, Article I, Section 18 • Code of Iowa, Chapters 6A, 6B and 316 and other eminent domain statutes • Iowa Supreme Court interpretations of Iowa Constitution and eminent domain statutes • Regulations 761, IAC 111 • Federal Uniform Act and Regulations, 49CFR, part 24 111 Excerpts from the Iowa Appraisal Manual Felderman Appraisals, Dubuque, Iowa 31 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Jurisdictional Exception Rule (per USPAP)112 An assignment condition that voids the force of a part or parts of USPAP, when compliance with part or parts of USPAP is contrary to law or public policy applicable to the assignment." Standards Rule 1 -4(f) requires appraisers to analyze the effect, if any, of anticipated public improvements, located on or off site, to the extent that market actions reflect such anticipated improvements as of the effective appraisal date. Article 1, section 18 of the Iowa Constitution prohibits consideration of increases or decreases in a property's value caused by the project. It specifically states "shall not take into consideration any advantages that may result to said owner on account of the improvement for which it is taken. Within the appraisal report, in an assignment involving a jurisdictional exception, an appraiser must: 1. Identify the law or regulation that precludes compliance with USPAP; 2. Comply with that law or regulation; 3. Clearly and conspicuously disclose in the report the part of USPAP that is voided by that law or regulation; and 4. Cite in the report the law or regulation requiring this exception to USPAP compliance. Law includes constitutions, legislative and court -made law, and administrative rules and ordinances; regulations include rules or orders having legal force, issued by an administrative agent; and instructions from a client or attorney to not establish a jurisdictional exception. In the case of this problem, additional consideration is given to the Jurisdictional Exception Rule, a body of rules with binding legal force established by a controlling governmental authority (in this case a government entity having the appraisal completed for condemnation purposes), and the Supplement Standards Rule stating that the USPAP requirements can add more requirements but not diminish the requirements (in this case, it is providing a before and after the taking value of one parcel and a total taking value for both property). It is this appraiser opinion that USPAP requirements and the Jurisdictional Exception Rules (Iowa DOT ROW Acquisition Manual) are able to be met in this appraisal report. However, since the City of Dubuque is the entity completing the proposed taking and the client, none of the forms typically provided for an Iowa DOT taking are completed in this report. In accordance with The Appraisal Operational Manual, Office of Right of Way, Iowa DOT, listings do not qualify as comparable sales, in as much as they are not arms - length transactions. It has become typical appraisal practice to include listings since they provide some indications of declining or expanding markets. For the purposes of this repost, the listings provided will be for informational purposes only and will be given no weight in your final estimate since they are not closed transactions. 112 Excerpted from USPAP Felderman Appraisals, Dubuque, Iowa 32 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 MARKET ANALYSIS AND DEMOGRAPHICS113 The market analysis process is designed to answer the following questions: • What attributes does the subject property offer the market? • Who are the most likely users of these attributes? • Is the property use needed? (demand analysis) • What is the competition? (supply analysis) • What is the condition of the market? (comparing supply and demand) • How much of this market can the subject capture? It is impossible to estimate the market value of a property without considering the supply of and demand for the property within a specific time frame. This is especially critical for proposed subdivision projects. Market analysis links value theory and valuation techniques, and documents the supply and demand relationship on which the value estimate is based. Market analysis is also used to identify which use among alternative uses the market supports, and thus helps determine the highest and best use of a property. Inferred analysis is simply the use of historical market evidence or trends in the application of the six -step process. These analysis methods identify trends and patterns and infer expected market behavior. This analysis includes the study of comparable sales for retail value estimates as well as the use of historical absorption trends as a basis for concluding market absorption. Essentially, inferred analysis describes most of the primary data collection and analysis efforts performed by the appraiser in a typical appraisal assignment. As applied in any subdivision analysis and specifically an absorption estimate, the inferred analysis usually involves the direct analysis of real estate sales, days on the market, the percentages of sales price by listing price, and date of sale. 113 See the appraisal addendum area for more current community information obtained from several sources, including the city, chamber and other development entities in the Dubuque and TriState Area. Felderman Appraisals, Dubuque, Iowa 33 Apr roisd A•pwn gf422 cod 450 Ciarfidd Avenw, atJqu6 Iva 52001 -5552 Region and Gene>rdAreall4 This region of the Midwest United States is identified as the TriState Region of Iowa, Illinois and Wisconsin. Most consider the City of Dubuque as the Hub City in the TriState Region. Dubuque is easily accessible from Illinois and Wisconsin by way of two bridges across the Mississippi River. The TriState Region is considered a trade area that covers three states and five different counties: Dubuque County, Delaware County, and Jackson County (all in Iowa); Jo Daviess County, Illinois; and Grant County, Wisconsin. This area has an approximate radius of 50 miles around the City of Dubuque with a population of over 300,000.11 The appraiser has downloaded information from the U. S. Census Bureau for the United States of America, Iowa, the City of Dubuque and Dubuque County to provide more depth of information on population, housing, education and economic status. The current population and demographics information for the City of Dubuque, Dubuque County and the State of Iowa is listed on the U.S. Census Bureau Statistics chart in the addendum. Previous population counts indicate the county had 86,403 in 1990; 89,143 in 2000; 91,631 in 2006; 92,724 in 2008 and 93,653 in 2010.116 The City of Dubuque occupies approximately 24 square miles and is 675 feet above sea level. The previous City of Dubuque's population was listed in 1990 as 57,546; in 2000 as 57,686; in 2008 as 57,250 (an increase) and in 2010 at 57,637.117 114 Refer to the United States and Midwest characteristics and indicators on the identified handouts in the addendum. 115 Dubuque 365 completed a marketing study of the Julien Dubuque Region that included portions of Iowa, Illinois and Wisconsin along the Mississippi River near Dubuque. 116 U. S Census Bureau is public data that is updated annually, and there is other data provided in the addendum area of the community information that has been obtained from this and several other sources. Iowa lost a seat in the House of Representatives based on2010 Census determined population. 117 U.S. Census Bureau statistics web page. Fe:dermal Appraisals, Dudaegaea bwa 34 Appraisal Report of422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The Greater Dubuque Development Corporation (GDDC) projected Dubuque County population growth will be 94,500 by 2012, with a goal of 96,000 by 2015. The appraiser considers Dubuque County to be less than 50% developed, and the approximate land uses (outside urban areas) include; 15% single family residential, 1% multi - family, 2% commercial, 5% industrial, and the remaining is institutional, agricultural or vacant land. Rural Dubuque County is predominantly a farming region with level to hilly, but mostly rolling terrain. It is well suited to the production of corn, soybeans, livestock and dairy products. Grains are usually sold at local elevators or trucked to Mississippi River ports such as Dubuque. Dairy products are usually sold to local co -ops for further marketing in Minneapolis, Chicago and other Midwest population centers. Most farmsteads are on all- weather roads, county and state roads, and highways providing good access to all parts of the state and county. Region average daily temperature range is 8 degrees Fahrenheit to 28 degrees Fahrenheit in January, and 61 degrees Fahrenheit to 85 degrees Fahrenheit in July, although there have been extreme temperatures of -35 degrees Fahrenheit and +114 degrees Fahrenheit recorded. The average date of the last freeze date in spring is May 10, and the average date of the first freeze date is September 29. The growing season averages 142 days. Average annual precipitation is 32.2" with showers most frequent in May and June. The average snowfall is 40" per year. According to the annual Iowa State University Extension survey (January 2013), Iowa farmland values in 2012 land values increased as they have for the past several years. Farmland value averages reach an all -time high of $8,296 per acre, up $1,588 per acre from values in 2011, for an overall 23.7% increase from the previous year. Figure 1. Average value per acre of Iowa farmland. 318.500 38.000 37.500 37.000 35.500 38.000 35.500 35.000 *4.000 33.500 6295 12.500 2147 32.000 31.500 121. 1851 11.000 419 *500 251 w 105) 1950 1070 1961 1990 2000 2011 Source: oxa State University Extension and Outreach Land Values Survey 21112 Ere Lars Yaws by Crop Rewriting oisfslet HyM- 11}11 - 3162' 16765 -5691 -6303 i 1,709 - 751S - {2Y $11,404 $9,560 $8,523 1403.s F LO 24.414 115a.119 f 3 ✓ ▪ wne6o3r.w. r. 10.wc�s+.4wr rrrr�6rar.yn6....�ora IL01®R +w4666640•615336 The Realtor Land Institute Iowa Chapter reports that farm land values as of September 2012 rose an average of 7.7% in Iowa over the previous year for an average of $10,445 per acre for high quality, $7,877 for medium quality, $5,314 for low quality, $2,518 for non - tillable pasture, and $2,089 for timber.118 1)8 See the most current rental survey information at http:llwww. extension. instate .edulagdm /wholefarm/htmllc2- 09.html and http://www.extensioniastate.edufPublications/FM1851.pdf/ Felderm an Appraisals, Dubuque, Iowa 35 Appraisal Payne 1422 and 430 Garfield Avenue, Duliaequa bwa 52001 -3552 Neighborhood and LocaI119 The subject real estate property is located in the City of Dubuque. The City of Dubuque and Dubuque County are located along the Mississippi River in Eastern Iowa. Illinois and Wisconsin are located directly across the river from Dubuque. The city is approximately 75 miles from Davenport, 281 miles to the Twin Cities, 178 miles to Chicago, 200 miles to Des Moines, 393 miles to Kansas City, 335 miles to Omaha and 337 miles to St. Louis.12o The TriState Region is an agricultural marketing center and river port, with many manufacturing and industrial operations. In addition, it provides full financial, commercial and educational facilities. The City of Dubuque is considered more than 75% developed, and the approximate land uses include; 44% single family residential, 10% duplex, 3% multi - family, 1% condominium, 10% commercial, 10% industrial, 2% institutional, and 20% as agricultural or vacant land.121 The neighborhood boundaries for the subject property are locatedin Census Area 0005.00 in the City of Dubuque. This neighborhood is considered over 75% developed, with land uses of 80% residential, 10% commercial, 5% industrial, and 5% institutional land. 119A neighborhood is defined as a group of complimentary land uses. To provide an understanding of the forces affecting a neighborhood, the boundaries must be set forth >as Greater Dubuque D evelopment C orporati on web site www.greaterdubuque.org 121 This is the appraiser interpretation of data based on the Census Area Maps and Zoning Maps for the City of Dubuque, Iowa. Feder a l Appraisals, Duliaequa bwa 36 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The following features identify the neighborhood boundaries; To the North: W. 32nd Street To the East: Property along Garfield Avenue To the South: W. l7d' Street To the West: Central Avenue Neighborhoods tend to run a four -stage life cycle, as follows; • Growth: Typically, growth is a period of development during which the neighborhood tends to attract a positive response referencing the public. • Stability: Typically, stability is a period that evidences general equilibrium with stable pricing noted. • Decline: Typically, decline is a period that evidences aging with prices tending to soften. • Renewal/Revitalization: Typically, renewal /revitalization is a period that evidences renewal, new growth, modemizationlrehabilitation of existing properties and most often increasing price levels. In conclusion, the subject neighborhood has transitioned from a decline period (mostly based on the national Great Recession, but with some local impact from residential foreclosures) and moved towards stability (partly due to the taking of property for the Bee Branch Watershed), with some pockets of the identified neighborhoods seeing renewal and revitalization (Port of Dubuque and Millwork District). Items such as transportation, utilities, government, amenities, education, employment and economic data (by property type) will be discussed in the following sections. Felderman Appraisals, Dubuque, Iowa 37 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Transportation) 22 The TriState Region now has multiple (5) four -lane highway connections to the outside world, after having been left out the transportation surges in the 1950's and 1960's. Highway 20 is currently four -lane from Galena, Illinois through Dubuque and Waterloo connecting to Iowa Highway 218 & Interstate 380, then onto Ft. Dodge, Iowa and Interstate 35, with eventual plans for its completion westward across the entire State of Iowa. Illinois continues planning for the eastbound expansion of Highway 20 to a four -lane highway between Dubuque and Rockford connecting to Interstate 39 and 90, and into Chicago. Highway 151 provides a southwest four -lane highway from Dubuque to Cedar Rapids, and north into Wisconsin connecting to Interstate 90 and 94 with access to Madison. Highway 61 south of Dubuque has four lanes to Davenport that connects to Interstate 80 and Interstate 74, approximately 55 miles south of Dubuque. Highway 61 expansion included new access roads into and out of the Dubuque Regional Airport. Highway 52 is a north -south two -lane state highway that follows near the Mississippi River towns of Iowa and into Minnesota. There are several bridges that cross the Mississippi River including the Julien Dubuque Bridge (Highway 20) and the Dubuque Rail Bridge to East Dubuque, Illinois; the Dubuque Wisconsin Bridge (Highway 151) to Kieler, Wisconsin; the Black Hawk Bridge in Lansing, Iowa; the Savanna - Sabula bridge between Sabula, Iowa and Savannah, Illinois; the Sabula Rail Bridge; the Lyons - Fulton Bridge and Chicago & Northwestern Railroad Bridge from Clinton, Iowa to Fulton, Illinois; the Marquette- Joliet Bridge from Marquette, Iowa to Prairie du Chien, Wisconsin; the Fred Schwengel Memorial Bridge (I -80) from LeClaire, Iowa to Rapids City, Illinois. The Dubuque Regional Airport serves the TriState Region. In recent years, the airport has seen continued expansion of the runway, several new maintenance buildings and the terminal received upgrades (jet - bridge). The airport has two hard surface runways, including an improved Instrument Landing System (ILS) for flight landing and take -off capabilities during inclement weather. The University of Dubuque offers aviation degrees and flight instruction operations at the airport. The Kennedy Road Corridor and the west side of Dubuque remains a major commercial, office and retail- shopping district for the City of Dubuque. The Northwest Arterial expansion in the past decade increased commercial construction expanding it into a major commercial district and is expected to be the major corridor on the west side of the city. 122 Based on multiple sources and observations over the past few decades, including community information available from the city, county, state and federal entities Felderman Appraisals, Dubuque, Iowa 38 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Rail, trucks, and barges serve the three state regions and the area has jet service available at the municipally owned Dubuque Regional Airport, 6.5 miles southwest of the City of Dubuque. The flights provide regional connection service to Chicago. American Airlines (American - Eagle) has served the airport as the sole commercial airline since 2004, and it continues to set or maintain record enplanements. Within a one and one -half hour drive of Dubuque, there are airports at Moline, Illinois; Cedar Rapids and Waterloo, Iowa; which offer flights on most of the major airlines through regional carriers. There continues to be discussion and efforts are underway to resurrect rail passenger service from Chicago to Dubuque and further into Iowa. The City of Dubuque provides public transportation for parts of the city.123 123 Current routes available on the cities webpage, www.cityofdubuque.org Felderman Appraisals, Dubuque, Iowa 39 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Utilities The City of Dubuque provides municipal water and sewer service to most properties within the city limits, and there are private wells for owners in the county. The multiple well systems have an elevated storage capacity of 18,500,000 gallons per day, and 20,000,000 gallons per day of capacity for the water plant. The average water consumption is 7,500,000 gallons per day, with a peak of 13,000,000 gallons per day. The secondary type of sewage treatment plant serves over 99% of the community, with an average load of 9,200,000 gallons per day, a peak capacity of 32,000,000 gallons per day, and a design feature for 15,000,000 gallons per day. Alliant Energy Company, Maquoketa Valley Electric Company and local municipal electric companies serve the general area with electricity. Alliant Energy is the major Dubuque City and County provider. Century Link Telephone Company provides local telephone service. Dubuque has fiber optics cable, SS7 service, ISDN lines, T1 -DS1 lines, through local cellular service companies and local internet service providers. Black Hills Corporation provides natural gas for the area, with Northern Natural Gas Company as the major pipeline server. Felderman Appraisals, Dubuque, Iowa 40 Appraisal Report of 422 and 430 GarfaeldAvenue, Dubuque, Iowa 52001 -3552 Government The City of Dubuque has a Council /Manager/Ward form of government (4 wards, 21 precincts) with a full -time city manager and part-time city council (mayor and 6 council members). Dubuque County has a full -time supervisor (3) and clerk form of government. There are city and county zoning ordinances. City of Dubuque Precinct Bounded tepee .,....... c...+ ......•dwe..... DMA witig Dubuque City Council Wards 4mit Ww 1 The fire class code is three in the City of Dubuque and 10 outside of the city, and more than 95% of streets in the City of Dubuque are paved. Property tax assessments on city residential uses are 48 %, agricultural at 69% and others at 1 00% of assessment. The assessed value of real estate property in the city was $3,633,462,506 for 2011, $3,553,386,961 in 2010, $3,486,704,735 in 2009, $3,344,904,153 for 2008, $3,272,443,439 in 2007 and $2,978,369,268 in 2006.124 There are no personal income taxes for the city or county of Dubuque. The city had a bond rating of "AA" for over 15 years, which was increased to Aa2 in 2003 (second highest rating in the state) and was adjusted to Aal in 2010. Total sales tax in Dubuque County is 7% (Iowa increased state sales tax to 6% in 2008). Of the nine largest cities in Iowa, Dubuque historically has some of the lowest percentages of legal debt margin. iza City of Dubuque Assessor provided the assessed values. For 2011 -2012 the City's property tax levy or millage rate is $10.45111 per $1,000 as of July 1, 2010 taxable valuation (see City of Dubuque Webpage Taxes). Additional levies include School District, Area School and County for a total levy of $35.57108. Feldemaan Appraisals, Dubuque, Iowa 41 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Education The Dubuque Community School District125 has elementary schools, junior /middle and senior high schools in the public school system; and the parochial school system includes elementary schools and one high school in Dubuque. The West Dubuque Community School District126 covers the remaining portion of Dubuque County outside City of Dubuque. The county public system has six elementary schools (including pre - school), one middle school, two high schools and one alternative education program. The parochial Catholic school system has seven elementary schools, and one high school in the city; and several elementary schools and one high school. The Lutheran community has an elementary school. Advanced education includes the University of Dubuque, Loras College, Clarke University, University of Dubuque Theological Seminary, Wartburg Theological Seminary, St. Pius X Seminary, Emmaus Bible College & Capri Cosmetology College; all located in Dubuque, Iowa. Others include Northeast Iowa Community College with a Peosta & Calmar Iowa campus, Capri Cosmetology College, Southwest Wisconsin Technical College in Fennimore, Wisconsin; Divine Word Seminary in Epworth, Iowa; and the University of Wisconsin in Platteville. All major state (Iowa) universities are within approximately four - hour's drive of Dubuque127. Amenities Dubuque County has three accredited general hospitals (Mercy Medical Center Dubuque with 272 beds, Finley Hospital with 117 beds, and Mercy Medical Center Dyersville with 25 beds), two medical practitioner centers, several financial institutions (over 30 facilities with 14 different institutions), more than 52 different religious facilities, three theological seminaries, one daily newspaper, several weekly & monthly newspapers and magazines, area television coverage through two Eastern Iowa stations, a cable company with over 92% urban coverage, and more than 30 area radio stations. 125 Public schools include Audubon Elementary School, Bryant Elementary School, Eisenhower Elementary School, Fulton Elementary School, George Washington Carver School , Hand -in -Hand Early Childhood Center , Hoover Elementary School, Irving Elementary School, John F. Kennedy Elementary School, Lincoln Elementary School, Marshall Elementary School, Prescott Elementary School, Sageville Elementary School and Table Mound Elementary School; Thomas Jefferson, Washington and Roosevelt Middle High Schools; Dubuque Senior and Hempstead Senior High Schools; Catholic schools include Holy Ghost, Resurrection, St. Anthony, St. Columbkilles, and Our Lady of Guadalupe Elementary Schools; Mazzuchelli Middle School and Wahlert Catholic High School. 126 West Dubuque schools include Bernard Elementary, Cascade Elementary, Dyersville Elementary, Epworth Elementary, Drexler Elementary, Epworth Early Childhood Center, Drexler Middle School, Western Dubuque High and Cascade High. County parochial schools include Aquin (Cascade), Balltown/Sherrill Consolidated, Xavier (Dyersville), Seton (Epworth, Farley and Peosta), RHCL (Rickardsville, Holy Cross and Luxemburg), Hennessy (New Vienna, Petersburg), St. Paul (Worthington) and Beckman High (Dyersville). 127 Public universities include University of Iowa, Iowa State University, Drake University and University of Northern Iowa. Feldennan Appraisals, Dubuque, Iowa 42 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Employment and Economic Data128 The economy in the TriState Region of Iowa, Illinois and Wisconsin has steadily improved over the past twenty years, though there has been some stabilization in the past few years based on national impacts, with some increases returning over the past two years. The area has not typically seen the large economic increases in values or the decreases that often follow, as in 2006 -2012, in the national economy. Total taxable sales continue to rise, while inflation has remained lower than national levels during the past six years. There has been strong and continued growth over the past ten to fifteen years, with emphasis in retail sales, home furnishings, service oriented businesses and tourism. The TriState Region has seen an unprecedented building boom in the past twenty years with others expected, underway or completed in the past few years include; ethanol or biodiesel plants (Dyersville, Manchester, Farley), numerous residential development projects in and out of the city limits, regional shopping center on 38 acres of the old Farmland Foods meatpacking plant, multiple development in the Port of Dubuque (Portside Plaza 400,000 square foot $63 million project, $55 million for 35,000 square foot casino expansion, $38 million expansion of the National Great Rivers Center, $25 million parking ramp with 1,130 stalls, $6.5 million redevelopment of the old Star Brewery, $3 million corporate headquarters for Dun-ant Group Architectural and Engineers in the old Adams Company (which has since closed its doors locally and the building is for sale /lease), $5 million distribution center with 160,000 square foot operation for Kendall /Hunt Publishing, an 11,000 square foot financial services building for Kunkel Bounds & Associates, a $900,000 building with 11,255 square feet of office lease space for Entegee Technical Group, the completed $43 million dollar rehabilitation of the downtown Roshek Building, the new Flexsteel Industries headquarters building in Port of Dubuque, the new IIW Auto Parts Distribution Center and the new FedEx Distribution Center both in the industrial park on the west side of the city, and the renovation that continues in the Millwork District and Lower Main. 128 Information in this section is based on the appraiser knowledge of the area, discussions with area residents (including owners, developers, contractors, real estate brokers and appraisers), and from local /area newspapers, City of Dubuque, Community Quick Reference, Chamber of Commerce and Tourism Bureau.. Felderman Appraisals, Dubuque, Iowa 43 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Industrial Manufacturing in Iowa had continuous growth from 2001 to 2006, dipped in 2007 -2008, and plummeted in 2009 (24 %) and 2010 (1 %) before stabilizing and seeing recovery in 2011 with 200,773 jobs (16.6% of all jobs in Iowa), and that stabilization has moved toward expansion with increases continuing into 2012/2013 and expected to continue into this decade. Industrial expansions throughout the TriState Region included Kendall -Hunt Publishing Company, Art's Way Vessels, Medline Industries, Vanguard Countertops, ITC Transmission, Hormel Foods, American Tank and Fabrication, Spiegel Family Realty Company, Deere & Company added a skid -steer loader production line to John Deere Dubuque Works, and Quebecor World Dubuque. Important manufacturing industries include John Deere Tractor Works (Dubuque), Mi -T -M Corporation (Peosta), Captive Plastics (Peosta), American Freezer (East Dubuque, IL), Eagle Window & Doors Manufacturing , A.Y. McDonalds Manufacturing, Hormel, Rite Hite Industries, Times Mirror Publishing, Flexsteel Industries, Nordstrom Distributing, Morrison Brothers, and other companies in Dubuque. While the Tri -State Region shows growth and expansion in many areas, manufacturing is one area that has seen decreases in the past decade, along with the national economic impact, even though the above report shows favorable future expected for the area. The TriState Region also includes industrial parks throughout Dubuque County. The Peosta Industrial Park tenants include Swiss Colony, Peosta Warehousing and Logistics, Bodine Electric, Mi -T -M Cleaning Systems, Premier Tool and Manufacturing, Decker Precision Machining, Roadway Express, Myers -Cox, Camoplast, Captive Plastics, Die -Cast Promotions, Farber Bag, First Gear, Fed -Ex Freight and Schieffer International. Dyersville, Cascade and Farley have industrial parks with a few tenants in each. The Westside Industrial Park in Dubuque, has continuously developed and expanded since 1990, with expansions into what is now called the Dubuque Industrial Center West, Dubuque Industrial Center North, and the Dubuque Industrial Center. Some of the businesses now include Nordstrom Distribution Center, Westmark Corporate Center, Hodge Company, Hormel Food, Medline Industries, Vanguard, Alliant Energy, Giese Manufacturing, McGraw -Hill, American Tank and Vessel, Oral Arts Dental Laboratory, Dubuque Screw Products, Art's Way Vessels, Theisen Supply, 7G Kirchoff Distribution Center, Qwest, Uelner Tool and Die, First Supply, A. Y. McDonald, Weber Paper Company, S4 Carlisle Communications, Ainley Kennels and Fabrication, Horsfield Construction, United State Postal Service, Metrix Company, Central Transport, IWI Auto, Green Auto Parts, Fed Ex, and the Dubuque Humane Society. There are several hundred acres available for expansion with new construction occurring every year. Felderman Appraisals, Dubuque, Iowa 44 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The Iowa Workforce Development announced 53,600 non -farm employments in the metropolitan statistical area (which includes Dubuque County) for August 2009 and 57,000 non- farm employees in October 2011.129 The Department of Labor Cost of Living Composite Index (Midwest Urban, Table 10) was 144 in 1994 and 182.6 in 2004 (a 38.6 point increase or 26.8 %)130, 213 in September 2010, 219 in June 2012 (with All Cities at 229), and 223.049 for May of 2013 (an increase of 1.8% over the previous year).131 Dubuque County employment was 57,900 in October 2012; 57,000 in 2011; 53,900 in 2009; 52,600 in 2004 and 50,800 in 2002. Dubuque County population has remained over 90,000, and the unemployment rate has a 9 -year average of 3.5% (lowest was 1.7% during October 1999 and previous highest was 6.5% in March 1996, with national trends stabilizing between 6% and 10 %). As a comparison over the last few years, the appraiser is providing U.S. Bureau of Labor Statistics reports for several Iowa county unemployment rates for October 2010, June 2011, and December 2012 (with seasonal adjustments), including the following; October 2010: United States at 9.5 %; Counties - Dubuque 6.1 %, Jackson 7.1 %, Jones 6.1 %, Linn 6.1 %, Delaware 5.3 %, Buchanan 6.5 %, Clayton 7.2 %, Fayette 7.2 %, Allamakee 8.1% and Winneshiek 5.1 %. 132 June 2011: United States at 9.1 %; State of Iowa 6.1 %; Counties - Dubuque 5.6 %, Jackson 7.1 %, Jones 5.8 %, Linn 6.1 %, Delaware 5.3 %, Buchanan 6.1 %, Clayton 6.5 %, Fayette 6.5 %, Allamakee 7.0% and Winneshiek 4.8 %.133 December 2012: United States at 7.8 %; State of Iowa 5.6 %; Counties - Dubuque 4.8 %, Jackson 5.2 %, Jones 6.0 %, Delaware 4.5 %, Clayton 6.3 %, Fayette at 5.9 %, Buchanan at 5.3 %, Allamakee 7.3 %, Winneshiek 5.2 %, and Linn at 5.3 %.134 - April 2013: United States at 7.6 %; Counties - Dubuque 4.2 %, Jackson 4.6 %, Jones 4.7 %, Delaware 3.4 %, Clayton 4.6 %, Fayette at 4.4 %, Buchanan at 4.2 %, Allamakee 5.6 %, Winneshiek 3.4 %, and Linn at 4.7 %.135 129 Telegraph Herald Newspaper, 23 September 2009 and 23 November 2011 130 Obtained from the Dubuque Area Chamber of Commerce web page, Midwest Urban, All items, www.data.b1s.gov 131 Obtained from the Bureau of Labor Statistics; http :Ilwww.bls.govlro5lcpimid.htm #chartl 132 U.S. Bureau of Labor Statistics report October 2010 133 Telegraph Herald Newspaper, 25 May 2011, from the Iowa Workforce Development 134 Telegraph Herald, 24 January 2013 135 Telegraph Herald, 24 January 2013 Felderman Appraisals, Dubuque, Iowa 45 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The US employment to population ratio and participation rate is presented in the following chart, obtained from the Calculated Risk Blog web page. 69% z i 65% O.61 63% c 61% re `o M n 59% 0 E57% a 0 E w 55% 53% Employment Population Ratio and Participation Rate Recession — Employment - Population Ratio — Participation Rate ■ E 9w $ M R Kpmmmmmmmmmmftmmmxmmm &moBoo S00000°:::: ............................... ...................... <<<<<<<<<<<<<<<<<<<<<<<< <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< http : / /www.calculatednskblog.com/ Felderman Appraisals, Dubuque, Iowa 46 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Tourism Iowa Division of Tourism reported that Dubuque County annual tourism continues to climb with over 1.6 million visitors and more than $253.2 million spent in 2007, a significant increase even with the national economic trends.136 This regional trend continued into the first decade of this century.137 According to the 2011 Iowa Tourism report, domestic travel generated 63,400 jobs in Iowa during 2011, a 2.2% increase over 2010. Dubuque County ranked 6th out of 99 Iowa Counties for domestic travel impact in 2011 (behind the larger population counties of Polk, Link, Scott, Johnson and Black Hawk). The report states that domestic travel numbers are expected to continue increasing in this decade. The Dubuque area received six awards at the 2010 Iowa Tourism Conference. In the Dubuque area the Dubuque Convention & Visitors Bureau was awarded the 2010 Tourism Community of the Year Award (population more than 10,000), the 2010 Tourism Consumer Publication of the Year (population more than 10,000) for the Visitors Guide and the 2010 Tourism Website of the Year for www.traveldubuque.com; and the National Mississippi River Museum & Aquarium received the 2010 Green /Sustainable Award.138 The 2009 Economic Impact of Travel on Iowa Counties Report, a study prepared for the Iowa Department of Economic Development's Iowa Tourism Office by the Research Department of the U.S. Travel Association in Washington, D.C., was released in October of 2010. "This report is a key barometer for us. We are delighted that annual tourism expenditures continue to rise. It is a key statistic that is validation of the tremendous efforts of the Dubuque area to welcome tourists." stated Kelley Schiesl, Vice President of Marketing at the Dubuque Area Chamber of Commerce and Tourism. In 2008, expenditures of $253.66 million were spent in tourism in Dubuque County. In 2009, the expenditures increased to $254.03 million. Tourism is a $6.1 billion industry in Iowa, employing more than 63,000 people statewide and generating more than $312 million in state taxes. Dubuque's downtown has seen the renovation of historical inns and numerous bed and breakfast inns. Tourism continues to be strong in the overall TriState Region, though some weakening was noted in late 2001 (the attacks on America on 9 -11 -01 had some impact) through early 2008 with the national recession, with stabilization and recovery with to small increases in the past few years. In recent years, there have been several new lodging establishments constructed, and several had seen downward trends in bookings (especially since the 9 /11 attack) due to changes in tourism, but current trends show resurgence in occupancy rates. With the construction of America's River Project and other tourist destinations in the region, the lodging market has had a positive long -term projection for increased tourism.139 136 Telegraph Herald, 27 October 2008, "County tourism tops $253 million dollars" 137 Refer to most current trends information, as well as the community information located in the addenda area, for additional data. 138 http : / /www.missioncreative.biz/blog /post. cfm /the - dubuque- area - named - winner -of -six- tourism- awards - today- and- statistics - released- show - tourism -expenditure-growth-in- dubuque- county 139 A lodging demand study for Dubuque County showed demand for 293,305 nights with a supply of 536,099 or 55% occupancy. The study determined an excess of 321 rooms based on 70% occupancy rate. For the period of Felderman Appraisals, Dubuque, Iowa 47 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 A number of bed and breakfast inns in the region ceased operations due to changes in the tourism market, management or location; and recently there has been increased interest in reestablishing some as other lodging occupancy rates increase. Many of the major hotels /motels in the TriState Region have completed renovations and/or major upgrades in past ten years, with newer construction since the mid- 1990's including the Grand Harbor Hotel & Water Park in the Port of Dubuque, Country Inn & Suites, Hampton Inn, MainStay Suites, Dyersville Comfort Inn), Peosta Americinn, Super 8 Hotel in Boscobel, Country Inn & Suites in Platteville, and many in Galena, Illinois - Irish Cottage Inn & O'Dowd Tavern, Victorian Pines, Greenbriar Country Inn & Suites, Stoney Creek Inn, Country Inn & Suites. According to the Dubuque Convention and Visitors Bureau, there are over 2,885 rooms in the TriState Region (including bed breakfast inns). Some regional tourist attractions include the Diamond Jo Gambling Casino, Mystique Dubuque Gambling Casino and Greyhound Park, Grand River Education & Conference Center, Five Flags Civic Center, Old Shot Tower, Mathias Ham House Museum, Julien Dubuque Monument, Port of Dubuque, Mines of Spain, Fourth Street /Fenelon Place Elevator, Heritage Trails, Cable Car Square, Mississippi River Museum and Aquarium, Mines of Spain, Crystal Lake Cave, Sundown Ski Area, Chestnut Mountain Ski Resort, Dubuque Arboretum & Botanical Gardens, Downtown Open Air Farmer's Market, Town Clock Plaza, Dubuque Museum of Art, Mystique Ice Arena and others. Within one -half hour of Dubuque, there are many public parks, picnic and playground areas, tennis courts, public and private golf courses, boating, swimming pools & water parks, Mississippi River access for swimming, fishing, water skiing, and motor boating. The TriState Region has benefited from continued growth and support of tourism. This growth includes the Diamond Jo Gambling Casino, Mystic Gambling Casino and Dog Track, and the continuing development of the Port of Dubuque as a tourist center and commercial recreation development; including the convention center, hotels, office complexes and other commercial ventures; plus the growth of shops and restaurants in the surrounding urban and downtown areas. The TriState Region tourism boom, specifically noted in Dubuque County, has continued over the past decade. The Diamond Jo Casino and Dubuque Greyhound Race Track continue to report a combined visitor count of more than 2 million per year. 2002 to 2007, the study showed a room demand of 686 rooms (less the 321 existing rooms, and the 194 rooms with the Grand Harbor Hotel) and a shortage of 171 rooms were needed. The primary impetus is the opening of America's River and continued expansion within the Port of Dubuque and the entire downtown/Tri -State Area, with increases into 2011. Feldennan Appraisals, Dubuque, Iowa 48 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Tristate Region The overall TriState Region continues to see new residential, commercial and industrial interest, and there are plans for new businesses and subdivisions throughout the city and county. From the 2002 to the current year, Dubuque has had stronger commercial and residential development, and trends indicate continuing strength in the real property market especially as the national level Great Recession is receding since 2009. Envision, a community development group that is part of the Dubuque Area Chamber of Commerce, announced 10 long term goals in 2010 for the upcoming decade; • Expand the National Mississippi River Museum and Aquarium campus • Develop bilingual curricula, provide communitywide wireless internet accessibility, • Build a community health center, • Build a state -of -the -are performing arts center • Create an integrated trail system throughout Dubuque and Asbury to encourage recreation and wellness • Expand city library services • Strengthen mental health and substance abuse services • Develop passenger rail service, and • Develop the warehouse district by converting buildings into multi -use structures that contain businesses — offices — shops — and restaurants. In late 2011, the Resilience Capacity Index, or RCI, showed that Rochester, Minn., topped the list and College Station, Texas, carne in last. Overall, cities in the Northeast and Midwest fared better than those in the South and West. Several Midwestern cities were among the Top 15 of the index, including: Minneapolis and St. Paul; Cedar Rapids, Iowa; Appleton, Wis.; Bismarck, N.D.; Des Moines; and Sheboygan, Wis. Cities were measured based on 12 factors: income equality, economic diversification, regional affordability, business environment, educational attainment, civic infrastructure, metropolitan stability, home ownership, voter participation, and the rates of residents without disability assistance, out of poverty and with health insurance. The index evaluates a community's economic capacity to bounce back from adversity, strength of demographics and community connectivity. Felderman Appraisals, Dubuque, Iowa 49 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 In July 2011, as reported by the Telegraph Herald, the City of Dubuque was named one of the most resilient cities in the nation in a recent study. The research found that in the case of another recession, a natural disaster, or some other unforeseen difficulty, Dubuque is well - poised to bounce back. The city was ranked fifth out of 361 cities nationwide in a study of resilience capacity in an index developed by Kathryn A. Foster, director of the University at Buffalo Regional Institute, State University of New York. In an interview on KWWL.corn television station, Realtor Rob Cook, discussed information he obtained from the Federal Housing Finance Agency (FHFA) stating that "Dubuque is number two in the nation when it comes to high rates of house appreciation," showing the average home in Dubuque appreciated 2.46 percent in one year, through Sept. 2011, and 8.06 percent over the course of five years. A map showed each state's average home value appreciation from the 3rd quarter of 2010 to the 2nd quarter of 2012. "The whole state's doing relatively well compared to the rest of the country," Cook said. Iowa is only one of four states that didn't experience depreciating home values. The average Iowa home over the course of that period went up 1.3 percent in value, according to the FHFA. The Dubuque Board of REALTORS® reports the number of homes sold in January 2013 were down slightly over those sold in January 2012. According to the Dubuque Multiple Listing Service (DMLS) 2013 Residential Housing Report, 57 homes were sold in the Tri State area in January 2013 compared to 59 in January 2012. January average sales price of homes sold increased 14 percent and median sales prices up 12 percent over January 2012. The average sale price of homes sold in January 2013 is $142,742 compared to $125,071 in 2012. The median sales price of homes sold in January 2013 is $134,100 compared to $120,000 in 2012. "January sales of residential properties in the Greater Dubuque Area continue to remain steady ", says Dubuque Board of REALTORS® President Harry Blewett. "It's too early to comment on the increase in Average and Median Sales price comparisons year over year because of the size of the sampling. We'll have a better sense after we've had a few more months to compare. Interest rates remain low and it continues to be a great time to buy or sell your home." On April 13th 2013, the Dubuque Board of REALTORS® reports the number of home sales in the 1st Quarter of 2013 dipped compared to same time 2012. According to the Dubuque Multiple Listing Service (DMLS) 2013 Residential Housing Report, 207 homes were sold in the Tri State area in the 1st Quarter 2013, down from 221 in 1st Quarter 2012. "Weather was certainly a contributing factor to the dip in sales through the end of the 1st quarter," says Dubuque Board of REALTORS® President Harry Blewett. "In 2012 we experienced a mild winter, and sales in the 1st quarter were up 29% over same time 2011. Spring has officially arrived and we're seeing an increase in listing inventory." The Dubuque Multiple Listing Service's Residential Housing Report for the 1st Quarter Horne Sales in 2012 was reported at 221 and for 2013 at 207. Felderman Appraisals, Dubuque, Iowa 50 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Downtown Dubuque With an expected stronger tourism market, the downtown area continues a logical expansion area for restaurants and supporting commercial businesses, plus the ongoing interest in residential unit restoration (both market and subsidized). The Port of Dubuque has focused on the tourism benefit from the America's River Project that included a large hotel with water sports -park, a convention & education center and the National Mississippi River Museum & Aquarium Complex which continues to grow with new construction projects completed in 2010, 2011 and 2012. The "Port of Dubuque" is part an overlay district that allows the successful use of federal money to develop the area for planned commercial and commercial recreation uses. Improvement & renovations in the Port included the Mississippi River Floodwall (amphitheater, riverboat docks and ramps, and tourist viewing stations), the harbor port and the museum expansion. The City of Dubuque expanded the Commercial Recreation Overlay District to the South Port of Dubuque, which expects to see property convert to uses other than industrial as value and uses support that transition. Downtown Dubuque has seen continued new construction over the past two decades, with continuing improvement from 2010 to today, including a 193 -room hotel, several city parking ramps and several office buildings, renovation of many older properties (several using state and federal tax incremental financing), and repurposing use of the current city hall (known as the Federal Building). The Town Clock Plaza was reopened for traffic in 2002 and continues to provide use as a closed plaza area for concerts and other cultural events. The opening of this major downtown thoroughfare has maintained interest in the immediate area, with several new establishments relocating in the past few years (such as IBM and NICC relocation to the city), and has provided linkage to the expanding Port of Dubuque. In 1985, Dubuque was 1 of 7 cities selected as a pilot city for the Urban Main Street Program. In 1995, Dubuque was awarded 1 of 5 Great American Main Street Program, in 2006 Dubuque was awarded one of three Urban Pioneer Awards, and in 2007 Dubuque was one of 10 National Civic League All- America City selections. Dubuque Main Street reports new annual successes completed during its 25 -year history at their annual fall awards ceremony in 2011. Dubuque Main Street (a downtown economic development entity) includes eight downtown districts; Cable Car Square, Historic Old Main, Port of Dubuque /Ice Harbor, Town Clock, Jackson Park, Couler Valley, Millwork (formerly Warehouse) and Upper Main /Farmers Market. Continued financial incentives should assist in the revitalization of these Dubuque Main Street downtown areas for re- development and reuse. Felderman Appraisals, Dubuque, Iowa 51 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Dubuque's downtown had many buildings rehabilitated in the past two decades along lower (historic) Main Street Area (between the new highway and 4th Street), and since 2010 several other areas (Millwork, formerly the Warehouse District, Lower Main and Historic Main) offer the same opportunity. Examples of such renovations include the Cooper Group renovated the Cooper Wagon Works building at 3`d and Main Streets (apartments, restaurant, pub, offices, and a retail center); the Platinum Group renovated the old Weber Paper Company and uses the building for corporation offices and some tenant space; Northeast Iowa Community College renovated an old office building into a business center with admin offices and classrooms; the Hartig Building (corner of 7th Street) and the Cottingham & Butler buildings (between 8th and 9th Street) were renovated for office use; Steele Management Group renovated a building at 7th and Main Street for office use, almost the entire 1100 block of Main Street was renovated with multiple uses (commercial, restaurant, office and residential - including subsidized housing units), the CIGNA Retirement and Investment Services added workers to its newest downtown complex (approximately 650 total employees); and the $188 million America's River project (including a Mississippi River museum with aquarium, a conference center, and the Grand Harbor Hotel and Indoor Water Park). Other more recent projects included the new IBM offices that now occupy the $43 million dollar upgrade and rehabilitation of former "Roshek" Building using State of Iowa incentives money for 1,300 new IBM jobs, the relocation and expansion of Heartland Financial USA (a $4.4 billion dollar financial holding company headquartered in Dubuque) of approximately 100 workers into the Roshek Building; and Flexsteel Industries constructing a new headquarters building in the Port of Dubuque. In 2011 -2013, the new historic Millwork District14° (formerly the Warehouse District) received funding and rehabilitated the streets and underground utilities for a several block area. The Historic Millwork District is saturated with history. At the start of the 20th century, the District was the innovative and entrepreneurial center of the region and was the backbone of the regional economy. The revitalization of the Historic Millwork District will resurrect the forgotten strategy that connects people, planet, and profit in a mixed -use neighborhood. It offers a vision for a community reconnected with surrounding neighborhoods, reenergized with housing, retail, offices, galleries, entertainment, and employment, and re- imagined as a laboratory for sustainable practices and technologies. 140 City of Dubuque webpage for the Millwork District, http: /Iwww. cityofdubuque .org /index.aspx ?NID =116 Felderman Appraisals, Dubuque, Iowa 52 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Westside Dubuque Construction on the west side of Dubuque has been steadily increasing in the past ten to twenty years; including remodeling of the enclosed shopping mall (Kennedy Mall, 690,000+ square feet with 40+ stores). Asbury Plaza was developed as a major retail center and has many restaurants, regional grocery store, and numerous retail stores (and more expected in next ten years). Westfield Square with many new retail and office uses, an automatic car wash, an automotive shop, an auto parts store, a grocery store, bank, sports complex, several fast food restaurants and other retail service buildings. McGraw -Hill constructed a $7 million plus complex with 330,000- square -foot distribution center at Dubuque Industrial Center West. As well, this planned industrial area has had FedEx Distribution Center, IIW Auto Parts, Green Distribution, and Giese Construction construct new facilities in the past few years. Feldennan Appraisals, Dubuque, Iowa 53 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Rankings The TriState Region continues to see the benefit of several national and state level rankings or awards in the past decade. National rankings over the past decade include; • Milken Institute's 2004 Best Performing Cities Index ranks Dubuque 34th out of 118 small U.S. metropolitan areas (increase from 52nd place in 2003); • Expansion Management Magazine's "Quality of Life Quotient" (overall housing affordability, including owning a home, good schools, low crime, and reasonable cost of living) ranked Dubuque 6th out of 331 metropolitan areas in the nation in 2005 (in 2003 Dubuque was listed as 25th); • Inc. Magazine rated Dubuque #62 of the "Best Cities to Do Business in America for 2005" (up from 239 in 2004, showing Dubuque's economy is up by 35 percent); • ABC "Good Morning America" announced Dubuque as the top 100 of best places for children to live in 2006; • Sperling's Best Places, a west coast firm known for its best and worst lists, rated Dubuque 6th on its list of "Low Cost Locales Where Jobs Are Plenty "; • Forbes Magazine ranks Dubuque #15 on its list rating for "Best Small Places for Business and Careers" and continued as 18th in 2008; • Inc. Magazine's labeled Dubuque in the Top 25 list of hot cities for economy (increasing 178 spots from 2006 to #22, it joins other cities such as Las Vegas, Phoenix and Orlando); • Milken Institute /Greenstreet Partners 2007 Best Performing Cities Index ranked Dubuque metropolitan areas (which includes all of Dubuque County) 39th out of 179 U.S. small cities (increase of 37 spots, Dubuque bested all other Iowa small cities except for Iowa City which ranked # 25); • America's Promise Alliance (dedicated to children and youths) listed Dubuque County (2nd year in a row), Iowa and Crawford County, Wisconsin; among the best 100 communities in the United States for young people; • Dubuque was named "Most Livable Small City" by the US Conference of Mayors in 2008; • In 2010 the City of Dubuque was named Forbes Best Small City to Raise a Family and the 3rd most livable city in the world; Feldennan Appraisals, Dubuque, Iowa 54 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 • July 2011, 9th out of 392 largest U.S. Cities for Employment Growth — Moody's Economy.com; • #1 for private sector job growth in 2011 by the Iowa Workforce Development; • August 2011, 7th in nation in Forbes Annual Best Small Places; • In 2012, the Iowa Great Places Citizen Advisory Board named Dubuque one of its "Iowa Great Places "; • January 2012, one of 26 out of 363 metropolitan areas that have completely recovered from the jobs lost during the Great Recession, by the U.S. Conference of Mayors; • June 2012, ranked #16 in the Top 100 Overall Cities and #3 in the Top 20 Midwest Cities in the 2012 Leading Location Report of Area Development magazine; • June 2012, 6th "Brainiest Metro" in the country, by The Atlantic; • July 2012, was named a 2012 All- America City by the National Civic League; • #5 for resiliency of 361 cities by the Institute of Governmental Studies. • February 2013, Camoplast Solideal announced a major job growth and facility expansion project costing almost $3.4 million, an additional 30,000 square feet and 23 new jobs in a news release from the Greater Dubuque Development Corporation. • According to the City Manager of Dubuque news release, Dubuque was ranked among best for economic development; #16 of Top 100 Overall Cities, #3 in Top 20 Midwest Cities, #7 in Top 50 Small Cities, #6 in Top 25 Small Cities for Economic Strength and #8 for Recession Busting. • May 2013, Area Development Magazine recognized the Greater Dubuque region for excellence in economic performance and a strong, healthy business climate. Dubuque ranked in the Top 100 Overall Cities climbing to 12th best in the United States, up from 16th in 2012, and as the only city in Iowa to place in top 20. Dubuque also ranked 3`d in Top 20 Midwest Cities, 6th in Top 20 Now Midwest cities, 5th in Top 30 Small Cities, 5th in Top 20 Cities in Economic Strength, 4th in Top 20 Cities in Recovery Cities and 6th in Top 20 Now Cities141 141 Press released May 23, 2013 from GDDC Dubuque, stating the rankings were comprised by comparing 380 Metropolitan Statistical Areas across 21 economic and workforce indicators. Feldennan Appraisals, Dubuque, Iowa 55 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 • July 2013, Dubuque scored 5th in Site Selection Magazine's annual "Top Metropolitan Areas" in the U.S. for Metro areas under 200,000 people. • July 2013, Kiplinger Personal Finance's list of 10 Great Places to Live has named Dubuque, Iowa, to the list along with Ithaca NY, Anchorage AK, Billings MT, Santa Fe NM and number one Little Rock, Arkansas. Emphasis is placed on small and mid -size cities with population of 1 million or less that have good jobs, reasonably priced homes, decent schools and access to great health care, according to the Associated Press publication of the Kiplinger news release that the rankings will appear in the September 2013 issue of Kiplinger's (due on the stands August 601). The improvements and awards to the City of Dubuque, County of Dubuque and the entire TriState Region have continued into the twenty -first century. The appraiser has included some additional and more current information in the community information for the city, county and TriState Region in the addenda. The City of Dubuque Manager reports that the city ranks high among the top ten largest cities in Iowa (those with over 50,000 populations), including job growth, lowest property tax rate, lowest solid waste collection base fee, lowest bonded indebtedness, lowest water rate, third lowest sewer rate, lowest refuse rate, fewest governmental employees, one of the lowest unemployment rates, 4th lowest legal debt rate, and one of the highest Best Bond Ratings. In the September 2012 City Focus, the city manager message presented the Top 10 capital projects (1997 to 2017), including streets, Southwest Arterial, America's River project, Water & Resource Recovery Center, parking ramps, Bee Branch Creek project, sanitary sewer projects, airport terminal project, industrial parks and storm -water projects for a total of over $639 million. The City of Dubuque earned the title of "All America City" from the National Civic League of America in June of 2007 and the city earned the designation again in June of 2013. This award is the oldest and most prestigious civic recognition competition in the United States. Dubuque focused on riverfront redevelopment, downtown revitalization and the Crescent Community Health Center, with the League gauging issues from health care to economic development to youth. Trends have indicated that the local region is stabilizing or improving, and recent reports from community leaders and financial institutions suggest that economic indicators at the state, regional and national levels also expect to see improvement and increases, and this region has historically bucked the steep increases and declines seen at the national level. Felderman Appraisals, Dubuque, Iowa 56 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Population Trends Census figures show "Dubuque Population Dips" prior to 2006, yet bedroom communities like Asbury and Peosta continued to see expansion. Dubuque County had a 91,631 population in July 2005, making it the 7th largest in the state. The current population information is provided in the US Census Bureau Statistical Information for City of Dubuque, Dubuque County and the State of Iowa that is located in the addendum. The U.S. Census Bureau reported the following 2004 population estimates; (Iowa) Asbury at 3,194, Dubuque at 57,504, Dyersville at 4,043, Maquoketa at 6,048, Manchester at 5,085, Farley at 1,372, Guttenberg at 1,917 and Peosta at 854. In the Tri -State Region, Wisconsin Counties show Crawford with 17,134, Grant at 49,671, Iowa at 23,569, and Lafayette at 16,310; and Illinois' Jo Daviess County at 22,580 (all increased since 2000 except for Crawford County). The U.S. Census Bureau reported in July 2007 with the following estimated city populations for 2006; (Iowa) Asbury 3,651; Bellevue 2,361; Cascade 2,122; Dubuque 57,696; Dyersville 4,167; Farley 1,415; Guttenberg 1,943; Manchester 4,996; Maquoketa 6,021; and Peosta 1,043; (Wisconsin) Boscobel 3,168; Darlington 2,339; Dodgeville 4,536; Fennimore 2,271; Lancaster 3,893; Mineral Point 2,569; Platteville 9,748; and Shullsburg 1,187; (Illinois) East Dubuque 1,982 and Galena at 3,396. The U.S. Census Bureau published report on the 2010 Census released in February 2011 reveals the following current city populations; (Iowa) Asbury 4,170; Bellevue 2,191; Cascade 2,159; Dubuque 57,637; Dyersville 4,058; Elkader 1,273; Farley 1,537; Guttenberg 1,919; Manchester 5,179; Maquoketa 6,141; and Peosta 1,377; while the December 2010 U.S. Census Bureau reported the following populations in adjoining states; (Wisconsin) Boscobel 3,164; Darlington 2,160; Dodgeville 4,484; Fennimore 2,432; Lancaster 3,837; Mineral Point 2,652; Platteville 9,931; and Shullsburg 1,152; (Illinois) East Dubuque 1,995 and Galena at 3,460. Refer to the more current U.S. Census Bureau published report data in the addendum area of this report. Felderman Appraisals, Dubuque, Iowa Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Education Trends142 TriState Region Colleges and Universities ranked in categories based on types of degrees and location. National Universities; University of Wisconsin Madison #41, University of Iowa #72, and Iowa State University #101. Universities, Master's (Midwest): Drake University #3, University of Northern Iowa #22, University of Wisconsin La Crosse #24, St. Ambrose #40, University of Wisconsin Stevens Point #46 and Platteville #70, Rockford College #107, and University of Dubuque #107. Regional Colleges, Bachelors (Midwest): Buena Vista University #9, Loras College #14, Clarke University #17 and for National Liberal Arts Colleges Wartburg College at #151.143 TriState Region public and private schools official headcount has stabilized since the 2006 -07 school years. According to Dubuque Community School District website enrollment was 10,745 for the 2007 -08 year; 11,279 for the 2010 -11 year and 10,469 for 2012/2013 school year. The Holy Family Catholic School website listed total enrollment at 1,976 for 2007/2008 and 1,837 for 2011/2012 school year. Western Dubuque County School District lists enrollment at 3,375 in 2012/2013, a substantial rise in from 2008 with an enrollment of 2,816. East Dubuque, Illinois, High School website indicated 202 students for 2012/2013 school year; and the Platteville, Wisconsin, Community School District reported enrollment of 1,369 in 2007 and no reports of change since. All current indications are that the region educational systems are continuing to see increases in enrollment and substantial donations to the universities and colleges. 142 See the appraisal addendum area for more current community information obtained from several sources, including the city, chamber and other development entities in the Dubuque and Tri -State Area. 143 US News & World Report, as reported in Telegraph Herald Newspaper, 12 September 2012 Feldennan Appraisals, Dubuque, Iowa 58 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Expansion and Continuing Trends Dubuque County foreclosures increased in 2006 through 2009, though not as much as national trends and have showed a continued increase most quarters since. Since then, trends since 2010 show reduced numbers to stabilized levels with continued low interest rates expected to maintain less than national levels, and an actual single family rental housing shortage in some quality price ranges has become evident since 2011. The Dubuque City Council approved the rezoning of 318.25 acres owned by the Dubuque Metropolitan Area Solid Waste Agency from county agricultural and residential to heavy industrial and annexed 178.29 acres in the city limits in 2010, with continued growth expected in this area. The City of Dubuque was awarded a $5.6 million Transportation Investment Generating Economic Recovery (TIGER) grant from the U.S. D. O. T. to help spur development in the Millwork District in 2011, working towards a more user - friendly environment of streets design and green space in 2012 and 2013.144 The street work was completed in 2012 and the buildings renovation and redevelopment continue through the decade. Dubuque Main Street provides information on downtown business expansion, which has shown that typically for each year over the past 10 — 15 years, the downtown has seen 30+ new businesses, 10+ relocated businesses, 5+ space expansions, 10+ businesses move out of the area and 5+ businesses close. As well, the investments (facade renovations, building rehabilitations, new construction, real property sales and public improvement projects), have been in the tens of millions of dollars each year. From 2010 into 2013, notable items included IBM filling of the promised 1,300 jobs as part of the Iowa Department of Economic Development $52 million dollars of incentives, and they have maintained that approximate level since 2012 with almost all jobs paid a qualifying wage. Of the $24.5 million dollars of the state incentives that went to the Dubuque Initiatives for the Roshek building renovation, the construction project was completed for IBM in early 2012, the tenants included Heartland Financial USA (ranked as the 39th best out of top 100 banks in America by Forbes in 2013) leasing the entire third floor in late 2012. There continues to be several levels of vacancy in the Roshek Building, but interior renovations included a community board room constructed in 2013. In January 2010, Hormel Compleats and Progressive Processing LLC began operation of a new 348,000 square foot Dubuque facility at an estimated cost of $89 million dollars and a projection for 180 new jobs. Sedgwick Claims Management Services, a financial services company, stated that 150 new jobs were created in their Dubuque and Bellevue satellite offices in 2011. According to a study commissioned by the US Conference of Mayors, the City of Dubuque is reported to have the local economy identified as one of 26 metro areas (out of 363) that has completely recovered recession job losses. 144 Telegraph Herald, Dubuque, Iowa, Millwork streets to gain $5.6 million makeover, February 18, 2010. Felderman Appraisals, Dubuque, Iowa 59 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The federal government announced that funding to complete Highway 20 from Freeport to Galena is committed, but no schedule for completion date available. A negative impact carried over from 2009 was Thermo Fischer Scientific Company closure of its Dubuque industrial plant in 2010 with the loss over 350 jobs despite an $18 million dollar incentive package.145 However, the building sold in 2011 and the owners have converted the building into several tenant leases with plans for the addition of new jobs back to the local economy over the next few years. In 2011, the U.S. Census Bureau published its 2010 population figures with indications that Dubuque County is now the seventh largest county by population in Iowa with 93,653, an increase of 5.1% after seeing significant declines in the 1980's. At that time, the City of Dubuque was the ninth largest in the state by population. Some of the smaller communities in Dubuque County had significant increases from 2000 to 2010, including Asbury from 2,450 to 4,170, Cascade from 1,958 to 2,159, Epworth from 1,428 to 1,860, Farley from 1,334 to 1,537, Maquoketa from 6,112 to 6,141 and Peosta had one of the largest percentage increases in the state with 111.5 percent growth from 651 to 1,377 residents. More current U.S. Census Bureau statistics information is located in the addendum area. The Iowa Workforce Development named Dubuque number one in the State of Iowa for private sector job growth in 2011. With only 3% of the State population, the City accounted for 11 -12% job growth (over 1,000 jobs) in 2010 and 2011. The Dubuque Industrial Center West Urban Renewal area expanded with an additional 175 - acres, that is now home to an $89 million 327,000 square feet facility that created 180 jobs. Some of these new and renovation construction projects included Asbury American Trust, Star Brewery, Kendal Hunt, Dun-ant Architects, Liberty Bank (sold to Dubuque Bank and Trust in 2012), Ace Hardware, Diamond Jo Casino, Powers Building, Apex Concrete, Doppco Development, Walgreens, Expansion of Dubuque Industrial Center West (North Siegert Farm), Applewood Senior Apartments, Meinen Court Business Center, Holiday Inn Express, Callahan 12- plexes (2), The Crust (former Bricktown), Sedgwick Phase II, Cathedral Lofts, 44 Main, Central Avenue Parking Ramp, IWI, TM Logistics, 3200 -seat Mystique Community Ice Center, Fareway grocery store, University of Dubuque Apartment Complex, 356 Main Bonson Block Building, Flexsteel Headquarters, Nottingham Properties and the previously mentioned Heartland Financial USA expansion. Other area under development include several residential developments (Arbor Oaks, North Fork Trails Pebble Cover, Westbrook, Eagle Valley, Harvest View, Timber Hyrst, Wynstone, English Ridge), Betty Jane Buildings on Main Street, Franklin Investments (old Central School), Engine House #1, CARADCO rehab (named the Schmitt Center in 2013), Clarke University Technology Commons, University of Dubuque Performing Arts Complex and the Millwork District.146 145 Telegraph Herald, Growth, Struggles Shape Business News, dated December 27, 2010 with quotes from Greater Dubuque Development Corporation (GDDC) and the businesses mentioned above. 146 City of Dubuque Credit Rating Presentation, September 2012. Felderman Appraisals, Dubuque, Iowa 60 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The second construction phase of the Southwest Arterial, a $5.1 million English Mill Road reconstruction project, is scheduled for bid letting in the winter of 2013, after the first phase for the reconstruction of North Cascade Road is completed in the fall of 2012. The Southwest Arterial continues to work funding for the project, preliminary cost project of $125 million with hopes for completion by the end of 2016.147 The Bee Branch Creek Restoration Project is a flood mitigation project to reduce the risk of storm water flood damage to 1,155 properties. Phase I was complete by the fall of 2011, Phase II is underway, and the final phases are projected for completion by the end of 2014.148 Dubuque continuing expansion and development has contributed to a positive trend in valuation growth, with Fiscal Year 2012 valuation indicating a 2.3% increase in the 100% actual valuation, a 3.7% increase in net taxable valuation and a 7.1% increase in taxable increment valuation. The Dubuque Regional Airport Terminal Complex Project is in the process of construction of a new passenger terminal complex to meet the needs of approximately 80,000 to 100,000 travelers on an annual basis. The project includes U.S. highway 61 improvements (2012), utility improvements (2012- 2014), new aircraft parking apron and access taxiways (2013- 2015), new parallel taxiway to runway 13 -31 (2013 -2015, new airport perimeter road (201 %), new passenger terminal building (2013- 2014), new vehicle parking (2015- 2016), and a new entrance road and circulation road (2015 - 2016).149 The Dubuque Intermodal Transportation Center is planned for the Historic Millwork District, with an Amtrak station nearby in the Port of Dubuque. Accessibility in the district was improved with the streets project that will provide vital transportation connections for the success of existing investments and will leverage additional investments in the district, the downtown and the Port of Dubuque. The terminal will provide accommodations for passengers waiting to board or who are deboarding busses and passenger rail services. Funding has included several multi- million dollar grants and local matching funds, with several phases planned for completion.15° The City of Dubuque Engineering Department has worked with consultants to complete a comprehensive East /West Corridor Connectivity Study analyzing alternate east -west corridors that need to be improved to provide connectivity between the western growth areas and the downtown. The report presented improvements and modifications to improve traffic flow, including the construction of several roundabout intersections. Funding is not available in the current City Five Year Capital Improvement Program.151 147 City of Dubuque City Focus, 148 City of Dubuque City Focus, 149 City of Dubuque City Focus, 150 City of Dubuque City Focus, 151 City of Dubuque City Focus, Feldennan Appraisals, Dubuque, Iowa September 2012. September 2012. September 2012. September 2012. September 2012. 61 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 A 100 -acre Urban Renewal District will become the Dubuque Industrial Center South with the first phase of construction beginning in early August 2012. The project will include a trail connecting to the Dubuque Industrial Center West (550- acres, with over 24 businesses and over 233 acres sold) that is located west of the Northwest Arterial on Chavenelle Drive.152 The Port of Dubuque Marina became fully operational for the 2013 boating season. Located adjacent to the National Mississippi River Museum and Aquarium, the facility houses 70 transient slips with full amenities, a marina store and facilities (showers, laundry). The TriState Region continues to see industrial, commercial and residential development with stable to increasing property values that are working back from the Great Recession toward recovery and expansion and overall demand has been stable to increasing with the predominant occupancy is owner or owner business. 152 City of Dubuque City Focus, September 2012. Felderman Appraisals, Dubuque, Iowa 62 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Marketing Time and Exposure Time USPAP requires that "the appraiser must report on the primary indicators of market condition for properties in the subject neighborhood by noting the trend of property values (such as "increasing," "stable," or "declining "), the supply of properties in the subject neighborhood (such as "shortage," "in- balance," or "over- supply "), and the marketing time for properties (such as "under three months," "three to six months," or "over six months ") as of the effective date of the appraisal. The appraiser is expected to describe the reasons when the trend of property values is declining, supply is an over - supply, or marketing time is over six months." Marketing Time opinion is the amount of time it might take to sell real property interest at the concluded market value during the period immediately after (prospective) the effective date of an appraisal. Reasonable Exposure Time is the estimated length of time the property interest being appraised would have been offered on the market prior to (retrospective) the hypothetical consummation of a sale at market value on the effective date of the appraisal. The appraiser completed a retrospective opinion based on the analysis of past events assuming a competitive and open market. In consideration of these factors, the appraiser has analyzed the following; • Exposure periods for comparable sales • Marketing time information from PwC Real Estate Investor Survey • Local market information (Multiple Listing Services, market participants) The developed reasonable exposure time (a retrospective opinion) uses local multiple listings service statistical information about days on the market, information gathered through sales verification and interview of market participants. Marketing Time (a prospective opinion) occurs after the effective date of the market value opinion and is related to, but apart from, the appraisal process. The Dubuque and TriState Area housing market has not suffered the severe declines seen nationally and the city is seeing a more robust recovery. According to Ruhl and Ruhl Realtors October 2012 Real Estate Facts and Trends, sales volume in Dubuque was up 17% from the same quarter in 2011 and 40% in the first quarter of 2012 over the same time in 2011. According to the Federal Housing Finance Authority, Dubuque housing pricing increased an average of 7.8% over the last five years, while national prices decreased 19.16% over the same period. Feldennan Appraisals, Dubuque, Iowa 63 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 This reflects current economic conditions, current real estate investment market conditions, the terms and availability of financing for real estate, and property and market specific factors. The exposure time and marketing time would apply to all valuation premises included in this report. Multiple Listings Service Statistics (Supply and Demand) Type Low Value High Value Median List$ MLS Sales SFR Range $ 375,000 $ 2,000,000 $ 449,900 19 SFR Range $ 200,000 $ 375,000 $ 269,500 187 SFR Range $ 10,000 $ 200,000 $ 126,900 569 Multi - Family Residential $ 30,000 $ 200,000 $ 128,800 35 Agricultural $ 50,000 $ 2,000,000 $ 346,200 5 Coninercial /Industrial $ 1,000 $ 500,000 $ 175,000 9 Coninercial /Industrial $ 500,000 $ 5,000,000 $ 1,095,000 3 Industrial Only $ 100,000 $ 5,000,000 $ 175,000 0 Residential Lots 2012 $ 14,000 $ 55,000 $ 34,500 133 Residential Lots 2011 $ 12,000 $ 75,000 $ 43,500 76 Residential Lots 2010 $ 10,000 $ 75,000 $ 43,500 107 Commercial /Industrial Land $ 4.00 $ 5,000,000 $ 850,000 0 Source: Dubuque Multiple Listing Service, as of Jun -13 Felderman Appraisals, Dubuque, Iowa 64 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 In support of the appraiser opinion for the marketing time and exposure time, information in the following chart was researched from the local multiple listing service of current data and from the past few years. Exposure Time and Marketing Time Information Investment Type Months Source: PwC Real Estate Investment Survey Range (from, to) Rounded Avg. Office CBD, Suburban 5 15 10 Shopping Center 1 10 8 Net Lease 3 20 9 Medical Office 1 11 7 Warehouse 5 10 9 Apartments 1 10 8 Source: Local Market Professionals Office 2 18 9 Industrial 2 24 12 Residential 1 6 3 Multifamily, Apartments 2 12 6 Agricultural 1 18 9 Felderman Estimate for Subject 6 24 12 The overall market in the city for industrial properties has stable values, in- balance supply and the marketing time for properties is approximately 12 months, with commercial properties having a marketing time of approximately 9 to 10 months. Based on marketing the subject property with a professional real estate broker, it is the appraisers' opinion that an exposure time of approximately 6 to 24 months would be considered reasonable, and a marketing time of approximately 12 months is appropriate for the subject property. Felderman Appraisals, Dubuque, Iowa 65 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Vacancy Rates The TriState Region housing vacancy rates overall have increased since the attacks on our nation in 2001 (after most of the 1990's saw typical vacancies at less than 2 %), though the area has seen continued decreases since the end of the Great Recession in 2009. Market participant discussions with local brokers and property owners indicate that rents have stabilized as it moves into recovery, with expectations that the economy is moving towards expansion. A survey of other non - professionals showed that low -to- moderate residential rents in the area increased and occupancy rates declined in the downtown area due to renovations that made more space available to rent. The TriState Region has seen the renovation of many older downtown properties for low -to- moderate - income housing. The downtown multiple family residential vacancy rates have increased to a range that appears to have stabilized between 5% and 20% (less in some areas and for some types of property), with the upper floor apartments typically having the higher vacancy rates unless rehabbed and renting at market rates. Since 2009 and into 2013, modern multi - family property has seen continued low vacancies and rent increases based on higher demand. It is noted that most commercial renovation and construction has taken place in the downtown, while the west side has seen more new construction that saw some higher vacancy rates caused by the Great Recession, but those rates have been steadily decreasing since 2010. The Dubuque housing market has bucked the national declining occupancy trends. The opening of the new IBM office building with an estimate of adding approximately 1,300 new jobs since 2009, and an overall improving economic outlook since 2010, has had a positive effect on the residential market with continued lower vacancy rates expected. Single family residential dwelling vacancies tend to range between 0% and 15 %, with lower rates for west and south end property (typically below 5 %) and higher for downtown and north - end property (typically above 10 %), though this rate has decreased with numerous dwellings taken as part of the Bee Branch project. Multi- family residential and apartments tend to range from 0% to 10% historically over the past several decades, and the influx of workers since 2010 has seen these rates remain at the lower end for all parts of the TriState Region. Commercial property vacancies range from 0% to 30% for downtown property (higher end for upper - levels units), and 0% to 10% for areas other than the downtown, though some of the newer west -side businesses saw vacancies in the range of 50% to 65% for a few seasons due to national economy impact, but they appear to have recovered and the economic outlook indicates expansion for the rest of this decade. Second and third generation uses of property has been popular when they included economic support for renovation or remodeling. Felderman Appraisals, Dubuque, Iowa 66 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Industrial vacancies have typically ranged from 4% to 20% throughout the TriState Region for the past two decades, but there were some areas that had increases in vacancies to as high as 40% for older and outdated property as the national economy surge affects the region. As the national economy recovers, and the city has expanded its available industrial supply, there has been a steady but continuous demand for industrial land and buildings. There have been steady increases in total annual employment, population, and yearly building permits over the past five to fifteen years to support similar strong trends in the future. The TriState Region market expects continued growth, subject to favorable interest rates, and a continued stability or increasing national and international economic market. Local and regional business leaders and economic development officials indicate that Dubuque and the TriState Region economy is working successfully. The TriState Region has done well in the 21st Century, despite troubles in the financial market and a weaker national economy, and discussions throughout the area indicate the recovery of the past few years is moving towards slow and steady expansion. Feldennan Appraisals, Dubuque, Iowa 67 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Market Overview The market overview (analysis) considers both national trends impacting property values, as well as conditions of the local market. The Appraisal of Real Estate defines market analysis as "a process for examining demand for and supply of a property type in the geographic market area for that property type." The following is a summary of various findings researched to obtain data regarding current trends impacting property values. The RERC Real Estate Report, Spring 2013, indicates that GDP increased at an annualized rate of 2.5% in the 14 quarter of 2013, noting that "although the recovery is weak by historical standards, the US economy has no grown for 15 consecutive quarters." The increase was primarily attribute to increased private inventory investment, increased personal consumption, and an increase in exports. Local, state and national unemployment rates were previously discussed in this analysis. While the percentage of unemployment has reduced from the Great Recession, there are still 2.8 million fewer jobs than when the recession began. For the real estate market, the report stated that the housing market continues to see increased home prices and low interest rates. Additionally, the apartment sector continues to receive top investment conditions ratings. The commercial market has generally seen declines in vacancy levels and some rental rate growth. With the exception of the hotel sector, all of the property type condition ratings increased or remained stable. The report concludes that "although the uncertainty that had pervaded the economy and investment environment over the past 2 years continues, investors are getting used to dealing with the various risks and are more closely examining the specific opportunities and pitfalls before them." The national industrial market showed gradual declines in vacancy rates and slight increases in rental rates. Local commercial and industrial real estate data was obtained from several multiple listing services (MLS) and that information has been previously presented and analyzed. Commercial Supply and Demand Summary The local MLS and market studies indicate that inventory was steady for several years, but the commercial supply of leased property has significantly increased in 2013. As of July 2013, there is over 202,000 square feet of commercial space available for lease, at an average rate of $10 per square foot gross. Over the past three years, the MLS indicated the area has absorbed an average of 76,000 square feet per year, projecting future demand has been stable to slower in the past few years, vacancies have increased and there is approximately a three year supply based on recent demand. Felderman Appraisals, Dubuque, Iowa 68 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Industrial Supply and Demand Summary The local MLS and market studies indicate that industrial inventory was steady for several years before the Great Recession, and then increased significantly until 2010. As of July 2013, there is almost 100,000 square feet of industrial space available for lease. Recent demand shows less than 30,000 square feet has been absorbed in the past two years, indicating 3 to 6 years of industrial supply for lease. However, historically, industrial property tends to be owner occupied and several of the spaces for lease are also for sale. Summary and Conclusion On a national basis, current expectations are for continued modest improvements in economic conditions. The commercial real estate markets appear to have reached their low point and are improving. Vacancy levels are declining and have shown modest increases. The region and local area has experienced growth the past decade, but vacancies increased after the Great Recession, and only now is the market starting to slowly seeing decreasing vacancies and rental rates stabilizing. With new construction corning on -line in owner occupied property, market participants forecast stable rents and sale prices for inventory in the market. This forecast is viewed with some caution as the local market faces headwinds in employment and financing, as well as the needed absorption of existing inventory. Projections would be for a gradual resumption of development activity, in conjunction with the modest pace of improvement anticipated in national and local economic conditions. Feldennan Appraisals, Dubuque, Iowa 69 Appraisal Repot of 422 and 430 GarfaeldAvenue, Dubuque, Iowa 52001 -3552 IDENTIFICATION OF THE PROPERTY Property Type Commercial Service /Industrial Address 422 Garfield Avenue, Dubuque, Iowa 52001 -3552 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Legal Description (422) 2 -1 -11 E DUB ADD; LOT 1 -1 -2 -2 & 4 -2 -2 -2 MIN LOT 106; 1 -1 -A & 2 -1 -B MINERAL LOT 100 106; LOT 1 -1 -A- MINERAL LOT 100; LOT 2- 1- B- MINERAL LOT 100 (430) LOT 1- 2 -2 -2, 2- 2 -2 -2, & 3 -2 -2 -2 OF MINERAL LOT 106 Type of Ownership Fee Simple Interest Owner Robert F. Klauer Occupant Dubuque Furniture and Flooring (430) Robert F. Klauer, owner, family and friends storage spaces 422 Garfield Avenue Feldennan Appraisals, Dubuque, Iowa 430 Garfield Avenue 70 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Property Ownership and Recent History Sales History As of the effective date of this appraisal, the subject property has not sold in past 60 months (five years), based on information obtained from the client, owner, and local and national multiple listing services. Rental History 422 Garfield Avenue is part owner occupied and part leased or given free occupancy to family members and friends. Owner did not provide any income or rental data to the appraiser. 430 Garfield Avenue is owner occupied and no historical lease or rental history was provided. Prior or Current Listing Agreements or Offerings History As of the effective date of this appraisal, the subject building is not listed for sale or openly marketed, has not been listed for sale in past 60 months (five years) and there are no known relevant contracts, agreements of sale or options to buy in effect, based on information obtained from the client, owner, and local and national multiple listing services. Previous Uses According to the owner, 422 Garfield Avenue has had the following uses; 1920 to 1970; unknown or not provided 1970 to 2002; Dubuque Flooring, offices, showroom and warehouse 2002 to present; Storage and warehouse for family, friends and owner According to the owner, 430 Garfield has had the following uses since constructed in 1890 1890 to 1911; Dubuque Casket Company for showroom, offices and warehouse. 1911 to 1991; Galena Glove and Mitten manufacturing office and warehouse, 1991 to 2002; Walser Trucking owned the building, and rented to Metz Bakery 2002 to present; Dubuque Furniture and Flooring Felderman Appraisals, Dubuque, Iowa 71 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Physical Characteristics — Site Analysis153 Gross Site Area Road Frontage Site Shape Topography Land Use Restrictions Adjacent Land Uses Traffic Count Census Map Number Census Tract: Flood Zone Historic District Access Visibility /View Functional Utility Adequacy of utilities Drainage 10,421 square feet (422 Garfield Avenue) 41,712 square feet (430 Garfield Avenue, Before Taking) 28,682 square feet (430 Garfield Avenue, After Taking) Garfield Avenue Rectangular Rolling to level None, except by ordinance Northeast: Industrial - Railroad Maintenance Building and tracks East /Southeast: Industrial - Walser Crane Southwest: Industrial - Dubuque Fire Extinguisher West/Northwest: commercial - Hardee's Fast Food; vacant - Bee Branch grass strip (owned by City of Dubuque) Estimated at 5,800 to 5,900 vehicles per day, per 2009 count 19 -061 0005.00 (refer to the demographics info in the addendum) Not in a special flood area, located on FEMA Map # 19061CO2343E, dated 10/18/2011 Subject is not located in a historic district Garfield Avenue to 20th Street to Central Avenue (major arterial) Commercial /Industrial /Railroad tracks Adequate Public (water, sewer, electrical); Available Adequate to property lines 153 Information obtained from appraiser observation and public records, including measurements of the land. Feldennan Appraisals, Dubuque, Iowa 72 Appraisal Repot of 422 and 430 GarfaeldAvenue, Dubuque, Iowa 52001 -3552 Parcel Size Road Improvements Alley Parking Lot Cornet Lot Ingress/Egress Excess /Surplus Land Covenants, Conditions & Restrictions Easements Easement ARreement Feldennan Appraisals, Dubuque, Iowa Typical for commercial service use, small for industrial use Paved with concrete, has concrete curbs and concrete sidewalks, and has public street lights; Average maintenance Owner indicated there may be an alley to south side of 422 and to rear of 422/430, but the plat does not indicate any alleys No marked spaces on approximately 22,000 square feet of partially paved asphalt/concrete and gravel parking and driveways; Adequate Not a corner lot To /From Garfield Avenue None identified None known Typical public utility, without negative affect on usability or marketability of the subject property 545 E. 19th Street benefits from a 25' access driveway easement for ingress and egress across and along the driveway located on 430 Garfield Avenue. The driveway is not allowed to be blocked by either party and is maintained by both parties. See addendum for full copy of the easements and termination date. GRMFNExi qUt. vso r�koe.f a aces 1ws s �.ytd 73 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Utilities Provider Available for the site Water (or well) City Water Yes Sewer (or septic) City Sewer Yes Storm Sewer City Yes Natural Gas Black Hills Yes Electricity Alliant Energy Yes Cable Mediacom Yes Telephone Century Link Yes Mass Transit (Bus) City of Dubuque by Route No known adverse site conditions or external factors exist unless specifically mentioned. Development Potential Not likely Compatibility Adequate for area Reciprocal Parking None Known Deed Restrictions None Known Wetlands None Known Seismic Hazard None Known Rail Access Railroad right -of -way is adjoining, but subject does not have access to any spur, nor any known rights to access the railway Soils In the absence of a soils report, it is a specific assumption that the subject property has adequate soil conditions to support the subject improvements at present and in the future, as evidenced in the immediate area. Site Improvements The site is improved with the previously noted parking lot and concrete driveway and is sufficient for the current uses. There is a 6' to 8' high chain link fence around the perimeter and an 8' to 10' gate between 422 and 430 Garfield Avenue buildings (see photos). Conclusions: The site appears adequate in terms of size and utility to support the improvements and current use, though it has some limitations for any expansion (owner indicated that if expansion was ever needed it would require the demolition of an existing structure and they are functional for the current uses. Overall, there no other factors are known to exist that would negatively impact the usability or marketability of the site. Feldennan Appraisals, Dubuque, Iowa 74 Apprasa1 Report of 422 and 430 Gafield iiVen2 :, Duazau, Iowa 52001 -3552 Zoning Analyser The property at 422 Garfield is zoned is LI Light Industrial District and the property at 430 Garfield is zoned CS Commercial Service per the City of Dubuque Zoning Ordinance (refer to the addenda for an excerpt). The LI District is intended to provide locations for a variety of uses associated primarily in the conduct of light manufacturing, assembling and fabrication, warehousing, wholesaling and commercial service operations that require adequate accessibility to transportation facilities. The district is also intended to provide locations fora limited amount of commercial development that will serve employees of surrounding industrial uses. The CS District is intended to provide locations for avariety of business services, office uses, limited industrial activity and major wholesale operations. The CS uses are primarily characterized by large storage space requirements, high volume truck traffic and low volume customer traffic. It is intended that the CS District is one that provides atransitional zone that can be used between industrial and commercial uses and in cases where topography establishes a transitional area due to physical limitations between industrial and higher density residential development. Zoning Change Not Likely FeldermanAppraisais, Dubuque, Iowa 75 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Uses Permitted Light Industrial uses include Agricultural supply sales, Animal hospital or clinic, Appliance sales or service, Auto part sales, Auto part sales or supply, Automated gas station, Bakery (wholesale /commercial), Bank, savings and loan, or credit union, Bar or tavern, Business services, Carwash, full service, Carwash, self - service, Cold storage or locker plant, Construction supply sales or service, Contractors shop or yard, Drive up automated bank teller, Farm implement sales, service or repair, Freight transfer facility, Fuel or ice dealer, Furniture upholstery or repair, Furniture or home furnishing sales, Gas station, General office, Grocery store, Indoor recreation facility, Indoor restaurant, Kennel, Laboratory for research or engineering, Lumberyard or building materials sales, Mail order house, Manufacturing secondary, Dental or medical lab, Mini - warehousing, Mobile home sales, Moving or storage facility, Office supply, Off street parking lot, Outdoor recreation facility, Parking structure, Passenger transfer facility, Pet daycare or grooming, Printing or publishing, Processing or assembly, Processing, packaging, or storing meat, dairy or food products, but not including slaughterhouses or stockyards, Railroad or public or quasi - public utility, including substation, Refrigeration equipment sales or service, Restaurant, drive in or carryout, Service station, Tool, die, or pattern making, Resource recovery /recycling center (indoor only), Upholstery shop, Vehicle body shop, Vehicle sales or rental, Vehicle service or repair, Vending or game machine sales or service, Warehousing or storage facility, Welding services and Wholesale sales or distributor. Those in italics apply only to the LI use, and those underlined apply only to the CS use. All others are allowed uses in both zoning. Based on the appraiser analysis of the zoning ordinance and the property observation, the subject lot size, current use and present improvements appear to be a legally conforming land uses under the zoning classification. A title opinion has not been provided for analysis, so it is assumed there are no legal considerations. A survey of the property was not provided for analysis, so it is assumed there are no easements or encroachment that would be considered adverse to the subject. Felderman Appraisals, Dubuque, Iowa 76 Buildi Showroc Unfinishec rpraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 ng Sketch Warenouse Bedrooms Restroom Elevator Restroom Showroom Stairs Office Main Hoar 930 Garfield Ave 199 137' Elevator Stairs Second Floor 137 422 Garfield Avenue Main Level — 6,008 square feet Second Level —2,780 square feet 430 Garfield Avenue Main Level — 25,675 square feet Second Level - 7,850 square feet m Storage u z E Showroom 8' 48' Main Floor Second Floor 422 Garfield Ave Felderman Appraisals, Dubuque, Iowa 77 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Physical Characteristics Type of Property/Use Number of Buildings Number of Levels Basement Gross Building Area Ceiling Height Site Coverage Land to Building Ratio — Improvements Analysis154 Existing Industrial (422) and Commercial Service (430) 422 has two (2) attached, 430 has four (4) attached 422 has two (2) levels (no basement, but functions like a basement) 430 has two (2) levels (basement was filled in 2002) Lower level of 422 is effectively used as a basement 2nd level of 430 is effectively used as most use a basement (original basement was filled with dirt in 2002 renovation) 422 Garfield Avenue Main Level — 6,008 square feet Second Level — 2,780 square feet 430 Garfield Avenue (before) Main Level — 25,675 square feet Second Level - 7,850 square feet 430 Garfield Avenue (after taking of 10,640 square feet) Main Level — 9,027 square feet Second Level - 7,850 square feet 422 Garfield Avenue 7' to 8' in office and showroom areas 7' to 16' in the garage /warehouse areas 430 Garfield Avenue 8' in the office area 10' to 15' in the warehouse area 10' to 15' in the showroom area 58% based on the site area of 10,421 square feet (422) 62% based on site area of 41,712 square feet (430 before) 32% based on site area of 28,682 square feet (430 after) 1.73 to 1 (422) 2.12 to 1 (430 before) 3.18 to 1 (430 after) 154 See photograph addendum. Information compiled by Felderman Appraisals was obtained from sources such as appraiser observation and public records, including measurements and layout of the building. Felderman Appraisals, Dubuque, Iowa 78 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Site Improvements Site for 430 is improved with the noted parking lot and concrete drives and is sufficient for the current uses. There are a 6' to 8' high chain link fence around the perimeter and an 8' to 10' gate (32' wide) between 422 and 430 Garfield Avenue buildings (see photos). Year Built 1920 (422), 1890 (430) Actual Age 93 years (422), 123 years (430) Estimated Effective Age 30 years Estimated Economic Life 45 years Estimated Remaining Age 15 years Age /Life Depreciation 67% Functional Obsolescence See cost approach comments External Obsolescence See cost approach comments Building Components (422) Foundation, footings Concrete with reinforced concrete slab Construction type Masonry load bearing walls, and prefabricated metal Floor structure Reinforced concrete slab Exterior walls Concrete Block, Steel panels Roof Structure Silver or Aluminum UV Coating, sloping roof Interior Offices are carpeted, panel and display walls, suspended and tile ceilings with fluorescent lights, and storefront windows. Warehouse is sealed concrete, unfinished concrete walls and ceilings with fluorescent lights. Doors, exterior Steel frame with glass and insulation Electrical Service Appears adequate, with multiple panels HVAC system Heating and cooling system for entire building (3 units) Elevators, stairways No elevator or exterior stairways, and there are interior stairs Felderman Appraisals, Dubuque, Iowa 79 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Mechanicals, security Plumbing Fire Protection FF &E Site Signage Quality Condition Short Lived Condition Long Lived Deferred Maintenance Building Components (430) Foundation, footings Construction type Floor structure Interior Feldennan Appraisals, Dubuque, Iowa One loading dock and two 8' x 8' overhead doors, burglar alarm, and outside flood lights One common restroom on main level Fire exits, fire extinguishers, smoke alarms, no sprinkler system, and a fire hydrant located within one block No personal property or signage included Unfinished area along south side has shared privacy fence with next property owner None with real estate, considered personal property The construction is considered to be average overall quality materials and workmanship. Floor coverings — Average to below average Walls — Average to below average Ceilings — Average to below average Roof — 15 +/- years Exterior — Original The building does not appear to suffer from any significant deferred maintenance Concrete with reinforced concrete slab (original stone basement was filled and covered with concrete flooring in 2002) Heavy steel and wood frame Reinforced concrete slab (with radiant heat tubing installed, but not connected to a heating system) added in 2002, 4 to 6 inches deep Floors are carpeted, vinyl, wood or ceramic; main showroom is unfinished wood and suspended ceiling tiles, and office & rear showroom is drywall or suspended ceiling tiles with fluorescent lights. Restrooms are ceramic tile. Warehouse is sealed concrete floors, insulated walls and ceilings with steel or wood, and fluorescent lights. Upper level has wood floors, old plaster walls and ceilings (finish is similar to a basement), and no working plumbing or electrical 80 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Exterior walls Roof Structure Lights, exterior Doors Electrical Service Lighting, interior HVAC system Windows Elevators, stairways Mechanicals, security Plumbing Fire Protection FF &E Site, parking lot Signage Quality Feldennan Appraisals, Dubuque, Iowa Brick, block and steel (insulated blown cellulose and foam on interior walls) Wood joists, sloping (4' high to 1' high) roof, with fiberglass membrane cover (patched in several areas, with previous leaks evident) over main and steel on one addition and asphalt shingles on the other. Flood lights Steel frame with glass, wood frame, and metal frame Three -phase service, adequate with multiple panels Fluorescent Roof mounted package (3 units) for showroom and office, with gas space heat only in shop Glass block (new in 2002) with wrought over windows Freight elevator (2,500 pounds rated), interior stairway (16' by 16' added in 2002 to second floor) One loading dock with 8' x 10' door, two 14' x 14' overhead doors, and a security alarm, Men's and women's restrooms, and one handicap restroom Fire exits, fire extinguishers, smoke alarms, sprinkler system, with fire hydrant located within one block No personal property included Site for 430 is improved with the noted parking lot and concrete drives and is sufficient for the current uses. There is a 6' to 8' high chain link fence around the perimeter and an 8' to 10' gate (32' wide) between 422 and 430 Garfield Avenue buildings (see photos). None with real estate, considered personal property The construction is considered to be average to good overall quality materials and workmanship. 81 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Condition Short Lived Condition Long Lived Deferred Maintenance Conclusions Felderman Appraisals, Dubuque, Iowa Floor coverings — Average to good Walls — Average to good Ceilings — Average to good Roof — 15 +/- years Exterior — 20 +1- years The building does not appear to suffer from any significant deferred maintenance The curb appeal is average, with functional utility, consistent with neighbor and comparable type properties. Signage is adequate. No maintenance problems were identified. The layout is typical for existing use. 82 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Tax and Assessment Data Analysis (Real Property) The following summarizes the subject's assessed value and taxes, not including any personal property or any furniture, fixtures and equipment. Assessed Value Informat on (422 Garfield Avenue) Assessor Taxable Value 2013 2012 2011 Land 10 -24- 234 -002 $ 17,540 $ 17,540 $ 17,540 Improvements $ 136,880 $ 136,880 $ 136,880 Total $ 154,420 $ 154,420 $ 154,420 Taxable Value 100.0% $ 154,420 Combined Tax Rate per $1000 34.32049 Total Taxes Gross $ 5,299.77 Total Taxes Net $ 5,300.00 Assessed Value Information (430 Garfield Avenue) Assessor Taxable Value 2013 2012 2011 Land 10 -24- 234 -003 $ 70,280 $ 70,280 $ 70,280 Improvements $ 181,560 $ 181,560 $ 181,560 Total $ 251,840 $ 251,840 $ 251,840 Taxable Value 100.0% $ 251,840 Combined Tax Rate per $1000 34.32049 Total Taxes Gross $ 8,643.27 Total Taxes Net $ 8,644.00 Source: Assessor Office Current commercial real estate is assessed at 100 %, but the Governor of Iowa is seeking legislation to repeal the rate to 60% over a period of years. The effort failed in 2012 but is expected to be presented for future consideration. The City of Dubuque's 1/1/2011 represented a 22% increase over 1/1/2006 and 6.65% over 1/1/2010. 2011 Assessment for the city is $3,633,462,506 (100% value). Conclusion Based on the foregoing, the total assessed value and taxes appear reasonable for the subject (based on value in the area). According to the Dubuque County Treasurer records, current property taxes are paid to date (3/28/2013). Felderman Appraisals, Dubuque, Iowa 83 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 APPRAISAL VALUATION PROCESS The appraisal valuation process is the gathering and analyzing of social, economic, governmental and environmental factual data for use in estimating a logical conclusion of a defined market value as of a given effective date. This began with the identification of a problem, and ends with the solution reported to the client. The steps involved are; Identification of the real property, Identification of the intended use & user of the appraisal, Identification of the intended use of the appraisal, Identification of the property rights to be appraised, Effective Date of the opinion of value, Definition of value, estimated reasonable exposure & marketing time, extraordinary assumptions & hypothetical conditions, and other limiting conditions. Data is collected and analyzed based on its affect on the Opinion of Market Value for the subject property. This includes general data of the region, community, and neighborhood in which the subject is located, with consideration of social, economic, governmental and environmental data. Specific data considered will include site and improvement information, sales and listings, costs and depreciation, income & expense, and capitalization rate information. Specific data within close proximity is typically more desirable, but sometimes it is necessary to search beyond a neighborhood or community to find sufficient and reliable data. The next step in the process entails analyzing and estimating the highest and best use for the subject site (as vacant) and as improved (if applicable). The analysis includes the use of one of more of three approaches to value (Cost Approach, Income Approach and Sales Comparison Approach). Finally, these approaches to value are reconciled into a range of value with a specific selected single dollar figure within those ranges. The appraiser considers the reliability and applicability of each approach to value. This final range of value and single figure is presented to the client in the reconciliation section of this report. The final step in the valuation process is the communication of the appraisal to the client. This appraisal is presented to the client and intended user in a Summary Appraisal Report that conforms to the reporting standards of USPAP Standards Rule 2 -2(b) and the requirement of the Appraisal Institute. Clients and users of this report should pay particular attention to the appraisal indication of how data was obtained (i.e. provided by owner /borrower, public records, contractor construction estimates, management firm or individual proforma, property inspection reports, etc.). The method identified will provide an indication of the validity of the data (i.e. actual market data or owners information). The data source must be considered in the final valuation and in the client's final decision in whatever process is being used. Feldennan Appraisals, Dubuque, Iowa 84 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 It is imperative that the client or intended user of this report read any disclaimers, assumptions and conditions presented throughout the appraisal. These items may include repairs or construction required; but it always includes the assumption of quality management and no negligent or illegal activities by the owner /borrower or management of the real property.155 When the client or intended user is relying on the appraisal, it is critical they verify the owner and /or borrower's ability to manage said real property or business property before extending any credit. Should credit be identified for repairs or construction, it is important for the client or intended user to require the appraiser to complete inspections of the completed work before allowing any withdrawals to the owner and /or borrower. The appraiser does not assume any liability for natural disasters or national impacts or changes that occur after the appraisal report date (such as 9 -11 attacks on America, Hurricane Katrina in Louisiana, or the failure and /or recession of an entire economy such as the Great Recession of 2007 -2009) and that have any impact on the income production or property value. Additionally, the appraiser does not assume any liability for the owner and /or borrower ability to pay or default of loan payments. 155 Specifically, this relates to the income production and ability to repay any financial commitments. Felderman Appraisals, Dubuque, Iowa 85 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Identifying Comparable Properties156 Real property valuation considers three approaches to value which are distinctly different given their underlying foundational premises. However, all three approaches rely on a comparability analysis in developing credible results under each approach. The Sales Comparison Approach provides an indication of value based on units of comparison derived from sales of similar or comparable properties. The Cost Approach requires land value comparability analysis, cost comparability analysis, and market extracted depreciation comparability. The Income Approach requires income /lease comparability, expense comparability, income potential comparability, capitalization rate, and minimum acceptable rate of return on investment comparability. All of the above approaches rely on the same fundamental underpinnings of determining comparability, and the identification of what constitutes a similar, or comparable property is critical to the property application of the three approaches to value. The principle of substitution is the foundation of comparability. It states that a rational buyer will not pay more for an item than the cost of an acceptable substitute.157 The appraiser must analyze transactions of closed sales, pending sales, and listings of properties and determine which acceptable substitutes are by weighing the elements of comparison. In developing an opinion of value for the subject property, the appraiser attempts to answer the question "What would a buyer of the comparable property have paid for the subject property given the observed sale price (or asking price, in the case of a listing) for the comparable property ?" Generally speaking, the more similar a competing property is to the subject property, the better. A high degree of similarity in property characteristics between the subject property and the available properties improves comparability. Many courts recognize "...that `similar' does not mean `identical,' but means having a resemblance, and that property may be similar in the sense in which the word is here used though each possesses various points of difference. "158 The appraiser weighs the relevance of the property characteristics (including, but not limited to: location, economic, legal and physical factors) based on the importance assigned by market participants. The most relevant property characteristic(s) are then examined on each available property. By examining and weighing the relevant property characteristics, the appraiser is better prepared to select the most appropriate comparable properties available. Another court has defined a comparable property as one that "Has similar use, function, and utility; is influenced by the same set of economic trends and physical, governmental, and social factors; and has the potential of a similar highest and best use. "159 156 The Appraisal Foundation, USPAP Second Exposure Draft — Identifying Comparable Properties, 17 June 2013. 157 Adapted by the Appraisal Foundation from The Appraisal of Real Estate, 13t1' Edition, pages 38 -39. 158 Referred to by the Appraisal Foundation, City of Chicago V. Vaccaro; 97 NE.2d 766 Illinois 1951. 159 Referred to by the Appraisal Foundation, Montana Code Annotated 2011, 15 -1 -101, retrieved from htf: / /data.opi.rLgob /bills /mca /15 /1 /15- 1- 101.html (8/26/2012). Felderman Appraisals, Dubuque, Iowa 86 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Because real property is truly unique, there are always differences between the property under analysis and the selected competing properties used for comparative purposes. When considering a property as a comparable, the appraiser should first ask "Is the property sufficiently similar, in all fundamental aspects to the subject property ?" This leads to the critical analysis of evaluating the property characteristics that make a property sufficiently similar. The following chart summarizes the primary elements of comparison; Location (Market Area ) Aspects Other than market conditions at the time of sale, location is the most distinctive element of property analysis. Would a potential buyer of the subject consider the comparable property as a potential substitute given its location within the market area? Economic Aspects Economic aspects include seller concessions, buyer's expected expenditures after sale, financing considerations to reflect "cash equivalent" pricing. In lease comparability, economic aspects might include reimbursement terms, landlord amortization of tenant improvements, etc. Also, includes market conditions: especially time, which is an element of all property analysis. Did the comparable transaction occur under similar market conditions as the subject property's date of analysis? What are the driving elements which differ and contribute to the adjustments necessaryto infer pricing within the current market? Legal Aspects Comparability of propertytitle and occupancytenure, generally expressed as "interest appraised" Highest and Best Use: significant effort should be given to compare similar transactions based on the subject property's highest and best use. Physical Aspects Each type of real estate (residential and non - residential) has physical characteristics which are desired or required by buyers. Different market areas demonstrate different buyer preferences with respect to cost/value of physical propertycharacteristics. An exhaustive list could be compiled considering all of the various physical elements by asset class which might be measured and compared. What is significant to the analysis are those elements that contribute to measurable price differences in the market. A summary listing of typical major physical elements of comparison by asset class is provided as a supplement to this table. The appraiser must confirm the type of sale transaction and using experience and skill in consistently observing the market sales, listings and pending properties, determine which factors drive credible value indications by comparison. In markets were competing properties are highly similar, the size and number of adjustments will be less and smaller. When a comparative analysis requires large and numerous adjustments, the true comparability of the property is questionable. While Fannie Mae provides specific guidelines (Government Sponsored Enterprises) for residential property, they do not apply across all property types. The key is the appraiser will explain and support the rationale for which comparables to use and the adjustments made regardless the amount of an adjustment as part of the required reconciliation within the approach. A necessary consideration for determining whether a property is comparable is whether the highest and best use of the subject and the competing property is the same. In fact, USPAP specifically refers to fully understanding the concept of comparability to avoid comparing property with different highest and best uses or with inappropriate factors for comparison. Feldennan Appraisals, Dubuque, Iowa 87 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Factors for consideration in selecting comparable properties include; • Market area and neighborhood; location is primary consideration, but a geographic area should be competitive, which may include a few blocks, an entire city, metropolitan area, a region or the entire nation; typically through analysis of the user market or the buyer /seller market • Demographic, socio- economic, lifestyle, geographic and economic; type of structure, architectural style, land use, site size, occupancy and vacancy rates, income levels, climate, natural resources, population trends and rate of growth, median prices and price range distribution, economy (jobs, industries, diversification, growth, tax district), cultural and entertainment opportunities, educational resources (including school districts), infrastructure, affordability, availability of necessary services (hospital, public transportation, utilities), exposure to nearby properties, absorption rates, demand and market times, condition and quality of property, sustainability features or characteristics, rental rates, historical renovations or newly building properties, typical building size, or demographic components • Bracketing; a probable range of values superior, similar or inferior to the subject • Comparable versus competitive property; and • Highest and Best Use Examples of physical comparability factors include the following major asset classes; • Residential Homes; Horne Size; Lot Size; Bedrooms /Baths; View, Amenities, Water - frontage, Neighborhood (Schools, Police, Fire, Safety); Garage; Basement, Architectural Style, Construction Quality\Finishes, Age, Type (Attached, Condo, Townhome, Detached), Special Features • Office; Owner v. Tenant Occupied; Single /Multi- Tenant; Medical /Professional; Ownership Type (Condo, Fee, etc.); Date of Construction; Mechanical; Architectural Style /Age; Construction Quality; Amenities, Tenancy Mix; Functionality; Floor plate Size; Land Size; Parking Suitability for Use • Retail; Single /Multi- Tenant; Class of Retail (Grocery Anchor, Neighborhood Strip, etc.); Tenant Quality; Tenant Tenure, Visibility, Proximity to Residential, Parking Suitability; Age, Construction Quality, Amenities, Support Uses driving demand for retail use, Floor plan/Layout, Land Size, Signage • Industrial; Single /Multi- Tenant, Tenant Profile, Suitability to meet industrial user demand, ceiling heights, dock and loading door sufficiency, power sufficiency, Proximity to industrial demand generators, age, construction quality, land size, parking and loading circulation, floor loads, access to water /rail • Apartments: Unit Mix, Average Unit Size, Utility Metering and costs, proximity to demand drivers for rental demand, access and visibility, amenities Age; Architectural Style, Construction Quality, Tenant Mix, Rent Control, Parking, Storage, On -Site Amenities • Agricultural; Site Size, Topography, Soil Suitability, Crop Yield, Irrigation /Water Availability, Utility Availability, Age of farm buildings, Environmental regulations, Availability of subsidies, Plottage, Access to Storage, Farm House Divisible, Proximity to applicable markets Felderman Appraisals, Dubuque, Iowa 88 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 HIGHEST AND BEST USE ANALYSIS In appraisal practice, the concept of highest and best use represents the premise upon which value is based. Highest and Best Use16° is defined as: "the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, and financially feasible and results in the highest value." Highest and Best Use analysis involves assessing the subject both as or as if vacant and as or as if improved (or the hypothetical condition that it is proposed to be improved). As if Vacant; the definition immediately applies specifically to the highest and best use of land. Land is said to have value, while improvements contribute to the value of the property as a whole. When vacant the appraiser values as it exists. When not vacant land, its contribution to the value of the property as improved depends on how it can be put to use. As Improved; the appraiser recognizes that in cases where a site has existing improvements on it, the highest and best use may very well be determined different from the existing use. The existing improved use will continue, however, unless and until the land value in its highest and best use exceeds the total value of the property in its existing use including the cost to remove the improvements. The determination of the highest and best use results from the appraiser's judgment and analytical skill. The highest and best use determined from this analysis will represent an opinion, not a fact found. The highest and best use of the land and improvements becomes the basis for estimating value in each valuation section of this report. The decision as to what is highest and best use involves the consideration of the type of use (residential, commercial, agricultural, industrial, etc.), the intensity of the use (density, land to building ratio, etc.) and the period or timing of the use that will allow greatest net return to the land as vacant and as improved. 160 The Appraisal of Real Estate, The Appraisal Institute, Chicago, Illinois Felderman Appraisals, Dubuque, Iowa 89 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 As If Vacant Highest and best use of the land or the site as if vacant is analyzed using the four tests or criteria the highest and best use must meet; physically possible, legally permissible, financially feasible and maximally productive. Physical Possibility is the analysis of the physical features and location of the site and structures. The site analysis includes the size, shape, topography, etc. The physical analysis of the improvements considers building type, design, quality of construction, condition and functional utility of the improvements.161 The subject lot size, shape and topography would support several uses, including the current improved use. 422 is zoned light industrial and 430 zoned commercial service, both of which have many similarly allowed uses. Legal Permissibility is the analysis of the uses permitted on the site by zoning, deed restrictions, leases, easements and others.162 The two sites zonings are appropriate for the current uses, no detrimental easements or encroachments were found, and it is assumed the current zoning does not preclude the current use. Financial feasibility is the economic feasibility test in the highest and best uses analysis. It includes the analysis of demand, supply, and the absorption rate or opinion of marketing time of that use or uses which are economically feasible.163 The financial feasibility is market driven and is influenced by surrounding land uses and location (with consideration of the neighborhood life cycle - development, stabilization, disintegration, or revitalization). The appraiser has determined that the subject properties fit current economic demand, based on financial incentives and financing available, which would support commercial service or industrial uses. Maximum Profitability is the use which results in the maximum profitability of the site, which may be beyond the scope of this assignment. The recipient of the property's productivity greatly determines what the use should be. Regardless, the use for the subject should conform to neighborhood trends and be consistent with existing land uses. The maximum profitability for the subject, AS IF VACANT, at this time is likely for Commercial Service or Industrial development uses. 161 Refer to the Improvements Description and Analysis Section of this report. 162 Refer to the applicable addendum and discussion throughout the report. 163 Refer to the Market Analysis Section of this report. Felderman Appraisals, Dubuque, Iowa 90 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 As Improved Highest and best use of the property as improved is analyzed using the four tests or criteria the highest and best use must meet; physically possible, legally permissible, financially feasible and maximally productive. Physical Possibility is the analysis of the physical features and location of the site and structures. The site analysis includes the size, shape, topography, etc. The physical analysis of the improvements considers building type, design, quality of construction, condition and functional utility of the improvements.164 The subject current improved uses allows for onsite parking for 430 and adequate ingress and egress to the site. A survey has not been provided. 422 has no identified off - street parking, but has access to the loading dock and personnel across 430 (since it has same ownership there is no restriction for access, and with the easement in -place for the property to the rear of both 422 and 430 that access is considered adequate, but should there be a different owner it would be necessary to put an written easement for access in- place). Legal Permissibility is the analysis of the uses permitted on the site by zoning, deed restrictions, leases, easements and others.165 The two properties as improved appear to be legal conforming uses. There are no known violations of the zoning requirement, and there are no known private deed restrictions, which adversely affect the value or marketability of the property. A title opinion has not been provided for this analysis. Financial feasibility is the economic feasibility test in the highest and best uses analysis. It includes the analysis of demand, supply, and the absorption rate or opinion of marketing time of that use or uses which are economically feasible.166 The financial feasibility is market driven and is influenced by surrounding land uses and location (with consideration of the neighborhood life cycle - development, stabilization, disintegration, or revitalization). The appraiser has determined that the subject existing use fits current economic demand, based on financial incentives and financing available. The subject properties appear financially feasible as improved. Maximum Profitability is the use which results in the maximum profitability of the site, which may be beyond the scope of this assignment. The recipient of the property's productivity greatly determines what the use should be. The improvements appear to conform to the highest and best use of the site as vacant and it is the appraiser opinion that the continued, AS IMPROVED, use appears to represent the maximum profitability for commercial service and light industrial uses. 164 Refer to the Improvements Description and Analysis Section of this report. 165 Refer to the applicable addendum and discussion throughout the report. 166 Refer to the Market Analysis Section of this report. Felderman Appraisals, Dubuque, Iowa 91 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 MARKET VALUE AND APPROACHES TO VALUE ANALYSIS The appraisal process is designed to evaluate all factors that influence value. General, regional and local area information has been presented to inform the intended user of general outside influences, which may affect value. In addition, the site and existing improvements have been summarized in detail. An analysis of the subject's highest and best use has been presented to evaluate the influences of legal, location, physical, and market conditions that impact the subject property. The next part of the appraisal process deal directly with the valuation of the property. The Opinion of Market Value is typically based on a correlation of values obtained from the three approaches to value. These three values are the Cost Approach, Income Approach and Sales Comparison Approach. The Market Value is defined as a type of value, stated as an opinion, that presumes the transfer of property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term. The appraiser will perform duties in accordance with USPAP, within acceptable appraisal standards, based on realistic projections (if any are provided) and property rights previously identified. The appraiser will use appropriate comparable properties if and when available, or identify when not available in the current real estate property market for the subject property. In appraisal practice, an approach to value is included or may be omitted on its applicability to the property type being valued and the quality and quantity of information available. The Cost Approach to Value is based upon the theory of substitution that a well - informed buyer will pay no more for a property than the cost to replace it in a reasonable time, plus the cost of similar land. Typically, the buyer will pay something less for existing property than its cost new (attributable to factors of age and changing standards of layout and construction), which is reduced by three categories of depreciation (physical, functional or economic, if applicable) to arrive at a discounted improvement value. Replacement Cost New (RCN) is derived from the Marshall Valuation Service, as well as local builders when available. The remaining economic life is the appraiser's opinion based on the quality and condition of the buildings. The rates of depreciation are estimated from sales of improved properties or from guidelines estimated by "visual observation ". In the Cost Approach, the Opinion of Land Market Value is based on market research and general knowledge with the assumption that is can be put to its highest and best use using a Sales Comparison Approach to Value method. For existing property, this approach may or may not be developed and used in the report, since it is particularly applicable when it involves new improvements and less applicable for older existing improvements. For vacant land, this may be the only portion of this approach that is completed. Felderman Appraisals, Dubuque, Iowa 92 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The Income Approach to Value considers the stream of income that the property is likely to produce during its economic life. The two common valuation techniques include direct capitalization and the discounted cash flow (DCF). Direct Capitalization converts income to a value using a Capitalization Rate derived from market extrapolation of sales, surveys or a determined band of investment. DCF is a valuation method used to estimate the attractiveness of an investment opportunity, using future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. This approach considers the current and historical income or the potential income based on the property potential to earn a future income stream. This value is based on the principle of anticipation, as the owner is trading current assets for the right to a future income stream. Income production may be impacted based on the management and marketing of the subject property. If the property is owner occupied, or occupied by a business of the owner, this approach may not be developed or may have less weight in the Opinion of Market Value. The Sales Comparison Approach to Value is based upon the Principle of Substitution that states that a prudent purchaser would pay no more for real property than the cost of acquiring an equally desirable substitute on the open market. It presumes the sale of similar or nearly similar properties from which units of comparison may be extracted and applied to the property being appraised for an indication of property value. Using this approach, an appraiser produces a value indication by comparing the subject property with similar (i.e. comparable) properties. The sale prices of the properties that are judged to be most comparable tend to indicate a range in which the value indication for the subject property will fa11.167 The appraiser develops indications of the degree of similarity or difference between the subject property and the comparable sales by considering various elements of comparison; real property rights conveyed, financing terms, condition of sale, expenditures made immediately after purchase, market conditions, location, physical characteristics, economic characteristics, use /zoning, non - realty components of value.168 Applicable approaches: Typically, real estate may be valued by applying three approaches discussed above. For this appraisal, each of the three approaches to value was considered, and all three approaches were developed and are analyzed in this appraisal. Reconciliation and Opinion of Value is the final analytical step in the valuation process is the reconciliation of the value indications derived into a value conclusion. Reconciliation occurs within each approach to value, but the final reconciliation occurs at the end of the valuation process. The value conclusion can be expressed as a single number, as a range of numbers, or as a relation to some benchmark amount. The nature of the reconciliation depends on the appraisal problem, the approaches that have been used, and the reliability and adequacy of the data used.169 167 The Appraisal of Real Estate, Appraisal Institute, Chicago, Illinois 168 The Appraisal of Real Estate, Appraisal Institute, Chicago, Illinois 169 The Appraisal of Real Estate, Appraisal Institute, Chicago, Illinois Felderman Appraisals, Dubuque, Iowa 93 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Opinion of Land Market Value The appraiser has determined that the highest and best use for the property, As If Vacant, would be for Commercial Service or Industrial Development uses. In order to determine the value of the site as if vacant, the appraiser has used competitive land sales in the area. Consideration is often given to lot size, location, traffic, zoning ordinance, date of sale, access and allowable use. Sales were researched throughout the Dubuque area over the previous few years as indicated, including others not used in the Land Sales Chart on the next page. The Greater Dubuque Development Corporation web page lists land available for purchase or for lease (several are for lease in the subject area). A brief synopsis of those with asking prices identified is provided here, with the specific data maintained in the appraiser work file. Land Listed For Sale Address City Size (acres) Price Per Acre $ Per Sq. Ft. Chavenelle Drive Dubuque 89.10 $ 120,000 $ 2.75 Highway20 Dyersville 180.00 $ 35,000 $ 0.80 11th Street Farley 80.00 $ 25,000 $ 0.57 Old Highway Road Dubuque 48.00 $ 92,000 $ 2.11 Royal Wood Peosta 45.00 $ 89,000 $ 2.04 First Avenue Cascade 58.00 $ 40,000 $ 0.92 However, those are all in newer developed area, many with restrictions on the site and building, whereas the subject is located in an area that typically sees the purchase and demolition of an existing building to obtain the land, and has few limitations on percentage or green areas or building materials and exterior land use. Some current Dubuque Multiple Listings Service listings of vacant land include; Land Listed For Sale Address City Size (acres) Price Per Acre $ Per Sq. Ft. JFK at NWArterial (C3) Dubuque 7.73 $ 302,742 $ 6.95 Chavenelle (PI), 35.18 & 24.26 Dubuque 35.18 $ 68,100 $ 1.56 Cedar Cross Court (LI) Dubuque 1.00 $ 131,000 $ 3.01 Cedar Cross Court (CS) Dubuque 1.00 $ 218,000 $ 5.00 Lake Ridge (PC) Dubuque 1.00 $ 238,000 $ 5.46 Holliday Dr (C2c) Dubuque 0.87 $ 609,770 $ 14.00 10945 KeyWest Dr (C2) Dubuque 1.30 $ 637,692 $ 14.64 Cedar Cross Rd (CS) Dubuque 4.47 $ 217,897 $ 5.00 Kerper Ct & Kerper Blvd (C3) Dubuque 6.00 $ 333,333 $ 7.65 Holliday Dr (C2c) Dubuque 0.87 $ 609,770 $ 14.00 Holliday Dr (C2c) Dubuque 0.87 $ 609,770 $ 14.00 Felderman Appraisals, Dubuque, Iowa 94 Appraisal Repot of 422 and 430 GarfaeldAvenue, Dubuque, Iowa 52001 -3552 As previously noted, Iowa does not allow the use of listing when valuing takings, so these are provided only for information of market asking rates. While there are many vacant land parcels available for sale in the area, the majority are usually marketed by the owner developers. Competitive land is usually not available in the downtown, except by purchasing with improvements and then demolishing for the land; and the location in a more commercial area supports the use of land sales with more commercial uses. Comparables older than a year have upward adjustments for date of sale, with increasing values of approximately 1% to 5% per year (3% average) over the past 10 to 15 years.10 Of the sales identified in this report, they support overall increases in value in the past five years and an adjustment for those sales uses older than one year will be adjusted 3% per year. $25.00 $20.00 0 0 LL $15.00 v 9 $10.00 w $5.00 • • • • • • 4 J -08 D -08 J -09 J -10 A -10 F -11 S -11 A -12 0 -12 M -13 DATE OF SALE Of the sales identified in this report, some have commercial zoning and some have industrial zoning. For those with commercial zoning (several with downtown locations), the primary value range of $5.39 per square foot to $19.53 per square foot is supported. Of the industrial sales, the primary value range is $2.00 per square foot to $5.75 per square foot (with those with more commercial locations in the upper range). Based on the market acceptance that property in the more dense older and sometimes historic districts of the downtown, the subject lots would meet that market and may support values in the overall upper range. However, the subject immediate area also had an older sale nearby (345 East 20th Street) that was the culminating purchase of multiple improved parcels over a number of years, and it was finally sold as ne parcel of 49,984 square feet in 2008 for $25.51 per square foot. The site was a shopping center zoning at the intersection of two medium traffic streets . " The appraiser has significant sales data to support these conservative increases in value, included sales that took place in the past few years. FeldemaanAppraisals, Dubuque, Iowa 95 Appraisal Repoli of 422 and 430 GaifielydAvenue, Dubuque, Iowa 52001 -3552 As well, the sales identified in this report support an overall adjustment downward for smaller lots versus larger lots, and vice versus an upward adjustment for larger lots versus smaller lots. The following regression analysis chart supports these adjustments and the appraiser will make the appropriate adjustments in the quantitative analysis adjustment grid. $ PER SQUARE FOOT $25.00 $20.00 $15.00 $10.00 $5.00 • • • • • • • • • • • • 0 20,000 40,000 60,000 80,000 100,000 120 000 LOT SIZE Conclusion With weight given to the following land sales summary adjustment chart (other sales may be listed in the addendum area and use for research, but only those listed in the chart are given weight in determining value), it is the appraiser opinion that the subject land market value (as if vacant and ready for development) offers a range and specific point of value of: Opinion of Land Market Value (422 Garfield Avenue) Square Feet times $ Per Sq. Ft. equals Indicated Value (rounded) 10,421 times $ 11.00 equals $ 115,000 10,421 times $ 12.00 equals $ 125,000 Specific Market Value (422) $ 120,000 Opinion of Land Market Value (430 Garfield Avenue - Before) Square Feet times $ Per Sq. Ft. equals Indicated Value (rounded) 41,712 times $ 9.50 equals $ 396,000 41,712 times $ 10.50 equals $ 438,000 Specific Market Value (430) $ 417,000 Opinion of Land Market Value (430 Garfield Avenue - after) Square Feet times $ Per Sq. Ft. equals Indicated Value (rounded) 28,682 times $ 9.50 equals $ 272,000 28,682 times $ 10.50 equals $ 301,000 Specific Market Value (430 - after) $ 286,500 Felydennan Appraisals, Dubuque, Iowa 96 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Land Sales Sutnrnary Chart — Industrial use only SALES INFORMATION Subject Land Sale #1 Land Sale #17 Land Sale #23 Address 422 Garfield Ave Maple /Cedar at 15th Salina at Charter 2225 Kerper Blvd City, State Dubuque, IA Dubuque, IA Dubuque, IA Dubuque, IA Actual Sale Price nla 102,500 285,000 22,812 Adjusted Price (CEV) nla $ 102,500 285,000 22,812 Sale Date nla 12/22/2008 913012011 9128/2012 Price Per Square Foot n/a $ 5.75 5.50 $ 2.40 Price Per Acre Proximity(miles) Verification Source nla Public /Inspect $ 250,485 239,664 $ 104,544 0.5 1.8 1.2 Public Record Public Record Public Record Financing As Cash Deed Deed Deed G rantorlSe Ile r nla Junie & Rich's Coin PM Salinas R.E. CRDS Dev. Grantee /Buyer nla City of Dubuque CW Wolff LLC Giese CO LLP Document # nla 2009 -10 & 11 2011 -14202 2012 -18681 Assessor # 10 -24- 234 -002 10 -24 -285 -012 + 3 10- 25- 422 -002 & 003 11 -18- 313 -004 Actual Use Ind /Comm Svc Commercial Industrial Industrial COMPARISON ITEMS ITEM ITEM ITEM ITEM Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Financing /Concessions n/a Cas h Cash Cash Conditions of Sale n/a nla nla n/a Market Conditions Stable Stable Stable Stable CHARACTERISTICS ITEM ITEM ITEM ITEM LOCATION PHYSICAL Size (square feet) Urban Urban Urban Urban 10,421 17,825 51,800 9,505 Traffic Counts Low - Medium Low - Medium Low Low Shape ECONOMIC Access /Corner Lot Irregular Rectangular Rectangular Irregular Public Road Public Road Public Road Public Road View Ind /Commercial Ind /Res /Comm Ind/Commercial Industrial Visibility /Frontage Typical Comm Svc Typical CommSvcllnd Typical CommSvc /Ind Minimal, Rail, Ind. ZONING and USE Zoning /Density Light Industrial Heavy Industrial Light Industrial Heavy Industrial Utilities Available To Lot Available Available Available Highest and Best Use Ind /Comm Svc Ind /Comm Svc Commercial Industrial Improvements As if Vacant None Known None Known None Known Fela'erman Appraisals, Dubuque, Iowa 97 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Land Sales Summary Chart — Commercial and Downtown uses SALES INFORMATION Subject Land Sale #11 Land Sale #13 Land Sale #16 Address 430 Garfield Ave 375 E. 9th St Bluff St at 1st St 385 Bell St City, State Dubuque, IA Dubuque, IA Dubuque, IA Dubuque, IA Actual Sale Price nla 697,713 70,000 325,644 Adjusted Price (CEV) nla $ 697,713 70,000 $ 325,644 Sale Date nla 412612011 5/29/2011 81312011 Price Per Square Foot nla $ 9.08 9.43 $ 12.00 Price Per Acre Proximity(miles) Verification Source nla Publicllnspect $ 395,528 410,667 $ 522,701 0.9 1.7 1.8 Public Record Public Record Public Record Financing As Cash Deed Deed Deed G rantorlSe Ile r nla Rouse & Dean Foun. Michael Coty City of Dubuque Grantee/Buyer nla City of Dubuque Franklin Investments Flexsteel Ind. Document # nla 2011 -6496 2011 -8438 2011 -10871 Assessor # 10 -24- 234 -003 10- 24-480 -028 10 -25- 260 -021 11 -30- 110 -023 Actual Use Commercial Svc As vacant Vacant Vacant COMPARISON ITEMS ITEM ITEM ITEM ITEM Property Rights Fee Simple Fee Simple Fee Simple Fee Simple FinancinglConcessions nla Cas h Cash Cash Conditions of Sale nla nla nla nla Market Conditions Stable Stable Stable Stable CHARACTERISTICS ITEM ITEM ITEM ITEM LOCATION PHYSICAL Size (square feet) Urban Urban Urban Urban 41,712 76,840 7,425 27,138 Traffic Counts Low - Medium Low - Medium Medium Low - Medium Shape ECONOMIC Access /Corner Lot Irregular Rectangular Rectangular Irregular Public Road Public Road Public Road Public Road View Commllnd Ind ustrial /Highway Comm!Res Commercial Visibility /Frontage ZONING and USE Zoning /Density Typical Comm Svc Downtown Ind. Typical Downtown Typical Downtown Commercial Svc Planned Commercial Office Res. Planned Commercial Utilities Available To Lot Available Available Available Highest and Best Use Commercial Svc Commercial Office Res. Commercial Improvements As If Vacant As if Vacant None Known None Known Fela'erman Appraisals, Dubuque, Iowa 98 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Property Rights Conveyed Adjustments for property rights must be made when the property rights conveyed in a sale transaction are different from those being appraised particularly when they have an impact on the sale price. As related earlier in this report, the fee simple estate is defined as "Absolute ownership unencumbered by any other interest or estate, subject to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." An example of a comparable sale that would require adjustment is a property that is encumbered by a lease where the tenant pays a rent lower than currently achievable in the open market, or a below market rental rate. The below market lease would have a negative impact on the sale price because the purchaser would need to pay less to achieve the same return as a property currently rented at market rent levels. In this case, as the below- market lease have a negative impact on the sale price; the comparable would need to be adjusted upward to be considered similar to the subject property. Conversely, a sale property achieving above - market rental rates would be considered superior to a fee simple estate. Financing The transaction price of one property may differ from that of an identical property due to different financing arrangements. For example, the purchaser of a comparable property may have assumed an existing mortgage at a favorable interest rate. In another case, a developer or seller may have arranged a buy down, paying cash to the lender so that a mortgage with a below - market interest rate could be offered. In both of these examples, the buyers probably paid higher prices for the properties to obtain below- market financing. Conversely, interest rates at above - market levels may result in lower sales prices. Sales Concessions If it is known that the comparable or subject seller pays part of the buyer closing or inspection costs, or money towards repairs of the property, it would be adjusted. Conditions of Sale Adjustments for conditions of sale usually reflect the motivations of the buyer and the seller. In many situations, the conditions of sale significantly affect transaction prices. For example, a developer may pay more than market value for lots needed in a site assemblage because of the plottage value expected to result from the greater utility of the larger site. Conversely, a sale may be transacted at a below- market price if the seller needs cash in a hurry. A financial, business or family relationship between the parties to a sale may affect the price of the property. Interlocking corporate entities may record a sale at a non - market price to serve their business interests. One member of a family may sell a property to another at a reduced price, or a buyer may pay a higher price for a property built by his ancestors. Further, listings, which have not been affected by typical negotiation, generally indicate a higher value than a completed sale. Felderman Appraisals, Dubuque, Iowa 99 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Market Conditions (Date of Sale) Comparable sales that occurred under market conditions different from those applicable to the subject on the effective date of value require adjustment for any differences that affect value. Changes in market conditions generally relate to supply and demand. National, regional and local economic trends or events may impact the value of a property over time. For example, the announcement of a major employer's entry into a market area may have a significant positive impact on values due to demand created for support uses in the area. Conversely, exodus of a major employer often has a negative impact on values. Location A property's location is analyzed in relation to the location of the comparable sale properties. An industrial location may be superior to another due to proximity to transportation facilities, including highways, railways, airports, etc. A commercial location may be superior to another due to proximity to a major retail development; access to traffic counts along major arteries, etc. A residential use may be superior to another due to location within a specific school district, economic makeup of residents within the neighborhood, taxation policies, etc. Size Typically, larger sites sell for a lower per unit price due to economies of scale and greater capital outlay requirements. Conversely, smaller sites sell for higher per unit values due to economies of scale. See previous comments and charts supporting these adjustments. Zoning In the valuation of vacant land, zoning is often one of the primary determinants of the highest and best use of the property because it serves as the test for legal permissibility. Thus, zoning or the reasonable probability of a zoning change is typically a primary criterion in the selection of market data. The value of a site can be impacted based upon the type and density of development allowed on the site. Topography /Elevation or Grade Topography refers to the site's relief features or surface configurations. These can include hills, valleys, slopes, lakes and rivers. Other factors include land that is heavily wooded or overgrown with scrub and vegetation. All of these factors affect the development cost of the site. Sites that are heavily wooded or overgrown with extreme changes in topography would be more expensive to develop as opposed to a site that is clear of trees or vegetation and is level. Elevation or grade refers to the level or elevation of a lot. Sites that are well below road grade may require fill prior to development and would be more expensive to develop as opposed to a site that is at or above - grade and requires no fill. Felderman Appraisals, Dubuque, Iowa 100 Apprdsol Report of 422 01d430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Utilities Sites must be adjusted for the availability of utilities. In rural areas, public water, sewer, telephone and electric may not be immediately available to the site. The lack of utilities will have a negative impact on the value of this type of site versus a site that has been improved with utilities. The cost of bringing utilities to the site must be considered in the adjustment process. Shape Extreme shape irregularities impede development potential or result is abnormally high planning or development costs. Land Sales Comparable Map While comparables have been provided covering land sales from 2008 to 2013, see all identified in the addendum area, the appraiser has researched industrial land sales and commercial or downtown land sales that support the highest and best use for commercial service at the subject sites. Many of the uses allowed in Light Industrial (422) and Commercial Service (430) are the same, but the subject two sites location in a more commercial area support the use of the commercial downtown sales previously identified and used in the following quantitative analysis. Feldennan Appraisals, Dubuque, bwa 101 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Analysis ofLand Sales Land Sales Comparable #11 is the sale of a 76,480 square foot parcel located 375 E. 9th Street in Dubuque for $9.08 per square foot. This site was previously zoned industrial, but was rezoned to panned commercial in 2011. The price includes demolition costs and the purchaser plans to use for future intermodal transportation facility in support of the major rehabilitation of property within a few blocks. The parcel is adjusted upward for date of sale (using 3% per year as previously supported) and for lot size (as selected by the appraiser, but previously supported), and downward for superior location (along highway, in area identified for increased uses and federal funding to renovate streets and buildings) for an adjusted value of $9.08 per square foot. Land Sales Comparable #13 is the sale of a 7,425 square foot parcel located Bluff Street in downtown Dubuque for $9.43 per square foot. This office residential zoned parcel was vacant and purchased in 2004 as an investment of increasing values (which actually supports a 3.7% per year increase in values from 2004 to 2011). The purchaser was an adjoining property owner that wanted the land for future access (for a second access the renovated multi - family property). It was adjusted upward for date of sale and inferior location (subject is in more commercial area versus sale in more residential area), and downward adjustments for size and conditions of sale (adjoining owner) for an adjusted value of $9.05 per square foot. Land Sales Comparable #9 is the sale of a 27,138 square foot parcel in the newer developed area of the Port of Dubuque for $12.00 per square foot. This planned commercial site was purchased for construction of an office building in an area deemed more desirable (next to more tourism focused businesses). In comparison to the subject property, an upward adjustment is made for date of sale, and a downward adjustment for location for an adjusted value of $9.54 per square foot. Based on the appraiser comparative analysis, the following chart summarizes the adjustments warranted for each comparable given weight in valuing the subject property. There may be other land sales in the addenda area, but the appraiser determined they were not appropriate for one reason of another (older sale, size, location, desirability, traffic counts or other important feature). The adjusted average price is $9.73 per square foot and the adjusted sales support an appraiser selected range of value from $9.50 to $10.50 per square foot for the larger site (430, before and after) and $11.00 to $12.00 per square foot for the smaller site (422). Felderman Appraisals, Dubuque, Iowa 102 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Land Sales Adjustment Chart171 Comparable Sale #11 Sale #13 Sale #16 PropertyAddress 375 E. 9th St Bluff St at 1st St 385 Bell St Property City Dubuque Dubuque Dubuque Assessor Parcel # 10 -24480 -028 10- 24480 -028 11 -30- 110 -023 Property Type Land Land Land Conditions of Sale None known None known None known Financing Cash Cash Cash Property Rights Fee Simple Fee Simple Fee Simple Sale Date 412612011 5/29/2011 8/3/2011 Sale Price $ 697,713 $ 70,000 $ 325,644 Land Acres 1.76 0.17 0.62 Land Square Feet 76,840 7,425 27,138 Price Per Acre $ 395,528 $ 410,667 $ 522,701 Price Per Sq Ft $ 9.08 $ 9.43 $ 12.00 PRE - ADJUSTED UNIT VALUE $ 9.08 $ 9.43 $ 12.00 INDIVIDUAL ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS PROPERTY RIGHTS 0.00% 0.00% 0.00% Adjusted Price /Unit- Individual $ 9.08 $ 9.43 $ 12.00 FINANCING /CONCESSIONS 0.00% 0.00% 0.00% Adjusted Price /Unit- Individual $ 9.08 $ 9.43 $ 12.00 CONDITIONS OF SALE 0.00% - 10.00% 0.00% Adjusted Price /Unit- Individual $ 9.08 $ 8.48 $ 12.00 MARKET CONDITIONS (TIME) 6.00% 6.00% 6.00% Adjusted Price /Unit- Individual $ 9.62 $ 9.05 $ 12.72 Net %Adjustment - Individual 6.00% 4.00% 6.00% GROUPED ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS LOCATION - 10.00% 20.00% - 25.00% PHYSICAL CHARACTERISTICS 20.00% - 20.00% 0.00% ECONOMIC CHARACTERISTICS 0.00% 0.00% 0.00% ZONING AND USE 0.00% 0.00% 0.00% NON - REALTY ITEMS 0.00% 0.00% 0.00% Net %Adjustment - Grouped 10.00% 0.00% - 25.00% Adjusted Price /Per Sq. Ft. $ 10.59 $ 9.05 $ 9.54 Net % adjustment - Overall 16.00% -4.00% - 19.00% Average (Mean) Price $ 9.73 Estimated Price Range $ 9.50 to $ 10.50 considered inferior to the subject, and conversely, the subject. These adjustments assist to arrive at the final to determine the approach to value for the subject land. appraiser records. Unless otherwise indicate the sale price 103 171 Adjustment grid explanation; upward adjustments are made to comparables a downward adjustment is made to comparables considered superior to adjusted rate (i.e. price per square foot of improved area), which is used Information obtained from public records, multiple listings service and is a cash equivalent value. Felderrnan Appraisals, Dubuque, Iowa Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Cost Approach to Value The Cost Approach is based upon the theory that a well- informed buyer will pay no more for a property than the cost to replace it in a reasonable time, plus the cost of similar land. Typically, the buyer will pay something less for existing property than its cost new, and this is attributable to factors of age and changing standards of layout and construction. The cost new then is reduced by these factors in three categories of depreciation to arrive at a discounted improvement value. These categories of depreciation are physical, functional, and economic. Physical depreciation is caused by the physical wear of the improvements and their age. Functional obsolescence is due to either inadequacies or superadequacies in building design. Forces outside of the property cause economic obsolescence, which decrease the utility of value of the improvements. This approach is best when used for a newer property. It is considered less reliable, and given less weight, when valuing existing buildings. The Cost Approach to Value for vacant land uses the Sales Comparison Approach format to determine an Opinion of Land Market Value for this approach. When valuing vacant land, the Opinion of Land Market Value is used for the Cost Approach to Value. The primary reason for developing the Cost Approach to Value (Land Market Value) is to assist the appraiser in determining if the property value is worth more as improved or as if vacant. Felderman Appraisals, Dubuque, Iowa 104 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Marshall Valuation Service (MVS) Salient details regarding the direct costs are summarized in this section. The MVS cost estimates include the following; 1. Average architect's and engineer's fees for plans, plan check, building permits and survey(s) to establish a building line; 2. Normal interest in building funds during the period of construction plus a process fee or service charge; 3. Materials, sales taxes on materials, and labor costs; 4. Normal site preparation including finish grading and excavation for foundation and backfill; 5. Utilities from structure to lot line figured for typical setback; 6. Contractors overhead and profit, including job supervision, workmen's compensation, fire and liability insurance, unemployment insurance, equipment, temporary facilities, security, etc., and 7. Site improvements (included as lump sum additions). Base building costs (direct costs) are adjusted to reflect the physical characteristics of the subject. Making these adjustments, including the appropriate local and current cost multipliers, the direct building cost is indicated. Items not included in the direct building cost estimate include parking and walks, signage, landscaping and miscellaneous site improvements. The cost of these items is estimated separately using the segregated cost sections of the MVS cost guide. Several indirect cost items are not included in the direct building cost figures derived through the MVS cost guide. These items include the developer overhead (general and administrative costs), property taxes, legal and insurance costs, local development fees and contingencies, lease -up and marketing costs and miscellaneous cots. Research into these cost items indicates that an average property requires an allowance of about 5% to 15% of the total direct costs. The appraiser has valued the buildings and site improvements using MVS replacement172 cost new. In the past few years, the appraiser has noted that national cost services have not been able to provide exact estimate of costs for existing buildings constructed in the TriState Region. Unless identified, NO uninstalled business equipment or furnishings are included in the building value determined in this appraisal report. 172 The cost of an alternative that has the same function and not reproduction exactly as it exists. Felderman Appraisals, Dubuque, Iowa 105 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Replacement Cost Summary Chart (422 Garfield Ave) The cost of building is the total cost of construction required to replace the subject building with a substitute of like utility and quality (not necessarily the original materials). Occupancy (422 Garfield) Industrial MVS Section, Bldg Class and quality Section 14, Class D, Average Exterior Walls Concrete Block #of levels and height per level 1 I 14' Usable Above Ground Square Footage 6,008 Perimeter Average 366 Condition and Effective Age AvglAvg 30 Region and Climate Central Moderate Base square foot Cost $ 29.09 Square Foot Refinement Finished Areas $ 47.00 No elevator, no sprinklers $ _ Basement Finish $ 13.46 Total Square Foot Refinements $ 60.46 Adjusted square foot cost with refinements $ 89.55 Number of levels multiplier 1.000 Height per story multiplier 1.000 Floor area & perimeter multiplier 1.077 Combined multiplier 1.077 Adjusted square foot cost with Height& Size refinements $ 96.45 Current Cost multiplier 1.070 Local Cost multiplier 1.030 Combined multiplier 1.1021 Final Square foot cost $ 106.29 Square footage (gross) 6,008 Base Building Costs (via MVS cost data) $ 638,605 Additions $ - $ - $ - Direct Building Costs $ 638,605 Indirect Costs ( % of Direct Building Cost) 1 5% $ 31,930 Direct and Indirect Building Costs $ 671,000 Felderman Appraisals, Dubuque, Iowa 106 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Replacement Cost Summary Chart (430 Garfield Ave) Occupancy(430 Garfield) Industrial MVS Section, Bldg Class and quality Section 14, Class C, Average Exterior Walls Brick, Steel # of levels and height per level 1 14' Usable Above Ground Square Footage 19,667 Perimeter Average 692 Condition and Effective Age AvglAvg 30 Region and Climate Central Moderate Base square foot Cost $ 64.21 Square Foot Refinement Freight elevator, 100% sprinklers $ 3.95 Total Square Foot Refinements $ 3.95 Adjusted square foot cost with refinements $ 68.16 Number of levels multiplier 1.000 Height per story multiplier 1.000 Floor area& perimeter multiplier 0.972 Combined multiplier 0.972 Adjusted square foot cost with Height & Size refinements $ 66.25 Current Cost multiplier 1.050 Local Cost multiplier 1.020 Combined multiplier 1.071 Final Square foot cost $ 70.96 Square footage (gross) 19,667 Base Building Costs (via MVS cost data) $ 1,395,479 Additions Parking Lot $ 27,500 Gate $ 1,400 Fencing (approximately 284') $ 4,978 Direct Building Costs $ 1,429 357 Indirect Costs (% of Direct Building Cost) 1 5% $ 71,468 Direct and Indirect Building Costs $ 1,501 000 Felderman Appraisals, Dubuque, Iowa 107 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Direct and Indirect Cost Conclusion The indicated direct and indirect building costs for the subject are illustrated as follow: SOURCE VALUE SIZE $ Per Sq. Ft. MVS Cost Guide (422) $ 671,000 6,008 $ 111.68 MVS Cost Guide (430) $ 1,501,000 $ 19,667 $ 76.32 Felderman Appraisal Estimated (422) $ 671,000 $ 6,008 $ 111.68 Felderman Appraisal Estimated (430) $ 1,501,000 $ 19,667 $ 76.32 The estimates derived by MVS represent replacement costs are given weight for the subject. Entrepreneurial Profit Entrepreneurial profit represents the return to the developer, and is separate from the contractor's overhead and profit. This line item, which is a subjective figure, tends to range from 5% to 15% of the total direct and indirect costs for this property type, based on discussions with developers active in this market. Furniture, Fixtures, and Equipment (FF &E) No furniture, fixtures and equipment appraisal was contracted as part of this assignment. In order to estimate the value of FF &E, we would rely on information contained in the Marshall and Swift Valuation Cost Manual or the subject owner's estimate of cost for FF &E. For this appraisal, there is no personal property or FF &E included in the determined value. Felderman Appraisals, Dubuque, Iowa 108 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Accrued Deprecation There are essentially three sources of accrued depreciation; physical (curable and incurable), functional obsolescence (curable and incurable) and external obsolescence. Depreciation is loss in value to any cause. Physical depreciation is caused by the physical wear of the improvements and their age. The following chart provides a summary of the property's economic life. ECONOMIC AGE AND LIFE 422 430 Actual Age 93 123 years Effective Age 30 30 years MVS Effective Life 45 45 years Remaining Economic Life 15 15 years Accrued Physical Incurable Depreciation 67% 67% rounded Functional obsolescence is due to either inadequacies or super- adequacies in building design, both buildings are considered to have functional uses based on the one level usable and the basement -like second levels. External or economic obsolescence is caused by negative influences outside of the property, and based on market conditions for the area and demand for the subject type of property, can be caused by neighborhood decline, the property's location or market conditions. The downward trends of the national and regional economy since early 2008 negatively impacted some property types. Conversations with local real estate professional indicate that as consumer spending has not fully recovered since the Great Recession, demand has improved, but not to pre- recession rents and values in all market types. The Dubuque market includes buildings with similar uses, many of which have been completely renovated (or are of newer construction), and there has been continued new development of commercial office and retail space along the west and south sides of Dubuque (along higher traffic locations). With growing competition from the west side and downtown renovated properties, it is the appraiser opinion that external obsolescence could vary from 10% to 50% and a rate of 30% has been selected for each. Felderman Appraisals, Dubuque, Iowa 109 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Cost Approach Conclusion The value estimate is calculated as follows for 422 Garfield Avenue: COST APPROACH TO VALUE SUMMARY CHART (422 Garfield) Direct and Indirect Building Costs $ 671,000 Plus Entrepreneurial Profit 10 %loftotal building cost $ 67,100 Replacement Cost New $ 738,100 Accrued Depreciation Less Incurable Physical Depreciation 67 %lof Replacement Cost New $ 494,527 Physically Depreciated Cost $ 243,573 Less Functional Obsolescence 0 %lof Replacement Cost New $ - Functionally& Physically Depreciated Cost $ 243,573 Less EconomiclExternal Obsolescence 30 %lof Physically Depreciated Cost $ 73,072 Depreciated Replacement Cost Functionally, Physically& Externally Depreciation Cost $ 170,501 Plus Land Market Value $ 120,000 Plus Depreciated Cost of FF &E $ - AS IS Cost Approach to Value $ 290,501 Value per Square Feet 6,008 $ 48.35 The value estimate is calculated as follows for 430 Garfield Avenue: COST APPROACH TO VALUE SUMMARY CHART (430 Garfield) Direct and Indirect Building Costs $ 1,501,000 Plus Entrepreneurial Profit 10 %loftotal building cost $ 150,100 Replacement Cost New $ 1,651,100 Accrued Depreciation Less Incurable Physical Depreciation 67 %lof Replacement Cost New $ 1,106,237 Physically Depreciated Cost $ 544,863 Less Functional Obsolescence 0 %1of Replacement Cost New $ - Functionally& Physically Depreciated Cost $ 544,863 Less Economic/External Obsolescence 30 %lof Physically Depreciated Cost $ 163,459 Depreciated Replacement Cost Functionally, Physically& Externally Depreciation Cost $ 381,404 Plus Land Market Value $ 417,000 Plus Depreciated Cost of FF &E $ - AS IS Cost Approach to Value $ 798,404 Value per Square Feet 19,667 $ 40.60 Felderman Appraisals, Dubuque, Iowa 110 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 *A building sketch is presented in the improvements analysis section and the addendum. The Cost Approach typically gives a reliable value indication when there is strong support for the replacement cost estimate and when there is minimal depreciation. This approach is most reliable for a newer property or when there are no sales available in the existing market. It is considered less reliable and given less weight when valuing existing buildings. The Cost Approach is considered a test of reasonableness against the other valuation techniques and offers general support for the other approaches, but is not given weight in determining the final estimate of value. Information from the Cost Approach may assist in the Income Approach, the Sales Comparison Approach and the Highest and Best Use analysis. If the costs include everything (hard, soft, profit, etc.), this approach typically sets the upper limit of value. As well, when there is a partial taking of some of the site improvements (such as a fence), it will assist in determining loss of value for such items. In this case, 430 Garfield will lose part of its existing fence line that current has approximately 284'. That loss of fencing will be approximately 75' along the north side and 50" along the rear for a total of 125' at an estimated cost of $19.60 per linear foot to replace the fencing, or damages of $2,450 per square foot. In discussions with the owner during the site visit, he indicated his costs to replace the building are significantly more than what had been offered by the City of Dubuque. The cost approach partially supports that premise. However, the costs to replace a building today would not have considered the current physical condition and the estimated economic obsolescence determined by the appraiser for the subject property. As well, the cost approach is not typically given weight in the decision - making process for older existing property. They do consider what costs may be needed for them to renovate or convert an existing property to meet their needs. In the subject case, that was completed by the owner in 2002 for the property at 430 Garfield Avenue. With the analysis in the Sales Comparison Approach, the appraiser will identify an estimated opinion of market value based on sales in the current market. It is not unusual for owner users of real estate to determine that the purchase of an existing building in the downtown, even when improvements or renovations are needed, will often cost more than those in new developments due to the cost of the land values in the downtown (based on purchasing existing buildings and then demolishing for the bare land). In this Cost Approach, the estimate of land value used downtown competition. However, it is obvious from industrial and commercial service land values in other areas of Dubuque, that while it may cost less for newly developed land (even with larger parcel needed to meet current zoning requirements), that it will likely incur higher improvement costs with a modern building. The owner mentioned the impact on his business, however, that is not part of the valuation problem and has not been considered in this appraisal. Felderman Appraisals, Dubuque, Iowa 111 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Income Approach to Value The Income Approach is the method of converting the anticipated economic benefits of owning property into a value through the capitalization process. The principle of anticipation underlies this approach in that investors recognize the relationship between an asset's income and its value. The steps taken to apply the income capitalization approach are: • Analyze the revenue potential of the property • Consider appropriate allowances for vacancy, collection loss, and operating expenses • Calculate net operating income by deducting vacancy, collection loss, and operating expenses from potential income • Apply the most appropriate capitalization methods to convert anticipated net income to an indication of value. This conversion can be accomplished in two ways. In direct capitalization, one year's expected income or an annual average of several year's income expectancies may be capitalized at a market - derived capitalization rate or a capitalization rate that reflects a specific income pater, return on investment, and change in value of the investment. In discounted cash flow analysis, the annual cash flows or anticipated future net income streams and a future resale are discounted to a present value at an appropriate yield rate. When applicable, the appropriate method will be determined in this report. The appraiser has researched competing income properties to analyze the subject viability as investment property. Felderman Appraisals, Dubuque, Iowa 112 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Subject Current Rent Roll Subject Rent Roll by Tenant Address Size $ PSF Expenses TI's Start Date End Date 422 Garfield Avenue (main) 6,008 $ - nla nla Owern Family 422 Garfield Avenue (2nd) 2,580 $ - nla nla Owner Family Total Square Feet (Average $ PSF) 8,588 $ - NNN 430 Garfield Avenue (main) 19,667 $ - nla nla Owner Owner 430 Garfield Avenue (2nd) 7,850 $ - nla nla Owner Owner Total Square Feet (Average $ PSF) 44,693 $ - 1030 Main St (available) As of the effective date of the report, 422 Garfield Avenue is rented on a month -to -month basis to the owner family and friends (based on the purchase of the property from his father) and 430 Garfield Avenue is occupied by the owners business, Dubuque Furniture and Flooring, and the owner did not provide and Historical Financial Performance for either property, so the appraiser must estimate and determine potential income. Current competition for the subject property Contract rates typically establish income for the leased spaces, while market rent is the basis for estimating income for the current vacant space and future speculative leased of space due to expiring leases. This calls for the comparison of current rent levels with market rent levels. To estimate the market rent for the subject, the appraiser searched the following comparable rentals in the subject market. Rental Comparables Address Size $ PSF Expenses Type Zoning Info 2455 Kerper Blvd (available) 4,424 $ 2.00 NNN Industrial Ind. Broker 3182 Hughes (available) 3,600 $ 6.00 Gross Comm Svc Ind. Broker 1170 Roosevelt Ext (available) 8,880 $ 7.00 NNN Comm Svc Ind. Broker 962 Main St(available) 6,700 $ 6.95 NNN Commercial Comm Broker 4496 Dodge (available) 6,700 $ 9.00 Gross Commercial Comm Broker 1030 Main St (available) 15,000 $ 10.00 Gross Commercial Comm Broker 400 Ice Harbor (available) 18,873 $ 18.00 NNN Offices Comm Broker 2811 Jackson St (available) 20,761 $ 0.87 NNN Greenhouse Comm Broker 3135 Cedar Cross Ct (available) 16,000 $ 4.00 NNN Comm Svc Comm Broker 367 Cedar Cross (leased) 3,600 $ 7.67 Net Comm Svc Comm Broker Felderman Appraisals, Dubuque, Iowa 113 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Economic Rent Analysis When searching for rentals offering competition to the subject, the appraiser has identified a few lease properties similar to the subject property in Dubuque and the TriState Region. The appraiser analyzed recent leases in competitive buildings in the marketplace. After analysis, the overall range is $2.30 to $4.55 per square foot triple net before adjustments and $5.00 to $10.00 per square foot gross before adjustments for commercial warehouse space (with estimates of $1.00 to $2.00 per square foot for the 2nd level storage spaces in each building. Triple net leases had common area maintenance (CAM) amounts added to the triple net rate to determine the total estimated gross rental rate. Lease terms are typically from one to five years, and many spaces have options to renew that would set increases or based on adjustments to the cost of living for the region. The subject's volume of traffic, parking, access, location and finish offer some desirability in the market. The appraiser has identified location, size, age /condition, quality, access, and visibility as typical rental motivators for use in the quantitative analysis below. Rental Comparables Analysis Grid Rental Comparables Quantitative Adjustment Grid Comparable Subject Property Address 422 &430 Garfield 2455 Kerper Blvd 3135 Cedar Cross 1170 Roosevelt Property City Dubuque, Iowa Dubuque, IA Dubuque, IA Dubuque, IA Leased / Available space -422 6,008 44,424 16,000 8,880 Leased / Available space -430 19,667 Lease Type Triple Net Triple Net Net Triple Net Price Per Sq Ft (Net) $ - $ 2.00 $ 4.00 $ 7.00 CAM (estimated) $ - $ 3.00 $ 1.00 $ 3.00 Price Per Sq Ft (Gross) $ - $ 5.00 $ 5.00 $ 10.00 Location Dubuque Dubuque / Similar Dubuque / Similar Dubuque / Similar Adjustment 0.0% 0.0% 0.0% 0.0% Size 6008 & 19667 Larger Similar Similar Adjustment 5.0% 0.0% 0.0% Age /Condition 1890 & 19201 Avg Similar Modern Similar Adjustment 0.0% -20.0% 0.0% Quality of Construction Average Similar Similar Similar Adjustment 0.0% 0.0% 0.0% Access/Visibility Average Similar Similar Similar Adjustment 0.0% 0.0% 0.0% Use Commercial Svc Warehouse Comm Svc Offices Adjustment 10.0% 15.0% -35.0% Total Net Adjustment 15.00% -5.00% -35.00% Adjusted $ Per Sq Ft (Gross) $ 5.75 $ 4.75 $ 6.50 Average $ Per Sq Ft (Gross) $ 5.67 Adjusted $ Per Sq Ft (Net) $ 2.30 I $ 3.80 I $ 4.55 Average $ Per Sq Ft (Net) $ 3.55 Felderman Appraisals, Dubuque, Iowa 114 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Market Rent Conclusion (Effective Potential Income — EGI) It is the appraiser opinion that the subject should be able to command a triple net lease value of $4.00 per square foot per year for the smaller commercial space and $2.00 per square foot for the warehouse storage space, while the larger building commercial and warehouse space should be able to command a triple net lease of $4.00 per square foot per year and $1.00 per square foot for the upper level storage area; with increases estimated at up to 3% per year (most typical is 2 %) often based on Cost of Living Index (CPI) plus anticipated increases in CAM expenses, with a typical lease term of three to five years consistent with the market. After analysis of the current rents and using the rental comparables, it is the appraiser opinion that the rent is appropriate for the potential market rent for the subject in the following table. Subject Estimated Rent Roll by Tenant Address Size $ PSF Type NNN 422 Garfield Avenue (main) 6,008 $ 4.00 NNN $ 24,032 422 Garfield Avenue (2nd) 2,580 $ 2.00 NNN $ 5,160 Total Square Feet (Average $ PSF) 8,588 $ 29,192 430 Garfield Avenue (main) 19,667 $ 4.00 NNN $ 78,668 430 Garfield Avenue (2nd) 7,850 $ 1.00 NNN $ 7,850 Total Square Feet (Average $ PSF) 27,517 $ 86,518 Other Income The subject does not generate amounts of recurring income from sources other than rent, and for the purposes of this appraisal, there is no other applicable income stream considered. Vacancy and Collection Loss Allowance A vacancy and credit loss allowance is deducted at an expected stabilized rate. According to RealtyRates.com Market Survey for the 2nd Quarer of 2013, vacancy rates for similar property ranged from 7.8% to 9.1%. The appraiser provided market vacancy rates previously in the market analysis, which considers the credit risk. The appraiser has concluded a stabilized vacancy and collection loss allowance for the subject at 15% of the usable space. Expense Reimbursement The appraiser requested copies of historical operating data and current rental information for the subject, and they were not provided. The lack of that data may affect the analysis and the value opinion determined in this approach, but since the property is owner occupied the Income Approach will be given little, if any, weight. Felderman Appraisals, Dubuque, Iowa 115 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 To develop projects of stabilized operating expenses, the appraiser typically reviews the subject expenses, comparable data and industry benchmarks. The analysis of expenses appears to support the typical informed investor may not provide an expense for their own management and reserves for replacement. Fixed & variable expenses, if included in the rent, may include items such as property taxes, property insurance, utilities, maintenance and repairs, management, janitorial and landscaping and long term future capital expenditures adjusted annually as reserve for replacements. For the purposes of this appraisal, the appraiser has determined that the subject would likely be leased in a Triple Net Lease where the tenant(s) would pay their share of the real estate property taxes, property insurance, property repairs and maintenance, utilities, administration and miscellaneous, janitorial and landscaping, even though some may be part of their own operating expenses. Operating Expense Analysis The real estate property taxes were previously described in the report, and the subject's expense is listed in the following table. The property insurance expense includes fire and property coverage, as well the owners' liability expenses that are estimated from the market in the following table. Real Estate Property Taxes Property Insurance Property Property Total Total Main Level Square Feet Square Feet $ PSF $ PSF 422 Garfield Ave $ $ 5,300 6,008 $ $ 0.88 430 Garfield Ave $ $ 8,644 19,667 $ $ 0.44 The property insurance expense includes fire and property coverage, as well the owners' liability expenses that are estimated from the market in the following table. Repairs and maintenance include payroll and related items for the directly employed maintenance personnel, and any outside service contracts for maintenance or repairs. The expense is estimated from the market in the following table. Repairs and Maintenance Property Insurance Property Property Total Total Square Feet Square Feet $ PSF $ PSF 422 Garfield Ave 422 Garfield Ave $ 1,202 601 6,008 $ 0.20 0.10 430 Garfield Ave $ 3,933 1,967 19,667 $ 0.20 0.10 Repairs and maintenance include payroll and related items for the directly employed maintenance personnel, and any outside service contracts for maintenance or repairs. The expense is estimated from the market in the following table. Felderman Appraisals, Dubuque, Iowa 116 Repairs and Maintenance Property Total Square Feet $ PSF 422 Garfield Ave $ 1,202 6,008 $ 0.20 430 Garfield Ave $ 3,933 19,667 $ 0.20 Felderman Appraisals, Dubuque, Iowa 116 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Janitorial, Landscaping and Security expenses would include those directly employed or any outside service contracts. The expense is estimated from the market in the following table. Janitorial, Landscaping and Security Property Total Square Feet $ PSF 422 Garfield Ave $ 300 6,008 $ 0.05 430 Garfield Ave $ 983 19,667 $ 0.05 The subject utilities for the tenant spaces would include electrical, natural gas, water, sewer and trash removal. The expense is estimated from the market in the following table. Utilities Property Total Square Feet $ PSF 422 Garfield Ave $ 4,506 6,008 $ 0.75 430 Garfield Ave $ 14,750 19,667 $ 0.75 The appraiser survey of professional management firms, financial managers, appraisers, and real property brokers for the area indicate fees in this market average between 2% and 10% of Effective Gross Income. The appraiser has selected the rate of 5% of Effective Gross Income for the subject as an appropriate potential management expense Management expenses are often negotiated as a percentage of the actual income (effective gross income). The subject's expense is listed in the following table. Management Property EGI Percentage Amount 422 Garfield Ave $ 34,936 5% $ 1,747 430 Garfield Ave $ 99,276 5% $ 4,964 Administration and miscellaneous general operating expenses typically include payroll and related items for the employees such as manager, secretary and accounting. This expense includes miscellaneous expenses such as legal or general contract. The subject's expenses are estimated at 2% of EGI and are listed in the following table. Administration and miscellaneous Property EGI Percentage Anjou nt 422 Garfield Ave $ 34,936 2% $ 699 430 Garfield Ave $ 99,276 2% $ 1,986 Felderman Appraisals, Dubuque, Iowa 11? Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Reserves for Replacement capture future capital expenditures for items such as roof, HVAC or other mechanical systems, parking, and site improvements, etc. over the life of the lease. For the purposes of this analysis, the appraiser has selected the rate of $0.40 per square foot. This is supported by the Realty Rates 2nd Quarter 2013 survey report for average reserve requirements that indicates an average of $0.22 to $0.50 per square foot. Total Operating Expenses Realty Rates 2114 Quarter of 2013 market survey report for total expenses indicate an overall ratio of 37.03% to 38.48% for similar property. The subject's estimated reimbursed and non - reimbursed expenses are listed in the following table. Reserves for Replacement Property Total Square Feet Square Feet $ PSF $ PSF Percentage 422 Garfield Ave $ 16,758 2,403 6,008 $ 2.79 0.40 430 Garfield Ave $ 45,094 7,867 19,667 $ 2.29 0.40 Total Operating Expenses Realty Rates 2114 Quarter of 2013 market survey report for total expenses indicate an overall ratio of 37.03% to 38.48% for similar property. The subject's estimated reimbursed and non - reimbursed expenses are listed in the following table. Refer to the summary of income and expenses in the following chart. Felderman Appraisals, Dubuque, Iowa 118 Total Operating Expenses Property Total Square Feet $ PSF Percentage 422 Garfield Ave $ 16,758 6,008 $ 2.79 41.9% 430 Garfield Ave $ 45,094 19,667 $ 2.29 38.9% Refer to the summary of income and expenses in the following chart. Felderman Appraisals, Dubuque, Iowa 118 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Net Operating Income Summary — 422 Garfield Avenue Potential Operating Income Recap Item Square Feet Total times $ PSF Amount Potential Gross Income (422 Garfield Ave) 6,008 times $ 4.86 $ 29,192 Other Income 0 times $ - $ - Total Potential Gross Income $ 29,192 Reimbursable Expenses Real Estate Property Taxes Tenant(actual) Actual $ 5,300 Property Insurance Tenant (estimated) - $ 601 Repairs and Maintenance Tenant (estimated) - $ 1,202 Janitorial, landscaping, security Tenant (estimated) - $ 300 Utilities (gas, water, electrical, trash) Tenant (estimated) - $ 4,506 Total Reimbursable Expenses $ 11,909 Total Common Area Maint $ PSF $ 1.98 Total Potential Gross Income and Reimbursable Expenses $ 41,101 Less vacancy& credit loss I 15.0% $ 6,165 Effective Gross Income $ 34,936 Less Tenant Reimbursements $ 11,909 Effective Gross Income (Adjusted) $ 23,027 Non - Reimbursable Expenses Management Owner (5% estimated) 5% $ 1,747 Admin, Miscellaneous Owner (2% estimated) 2% $ 699 Reserves for Replacement Owner ($0.40 x Sq Ft) 3% $ 2,403 Total Non - Reimbursable Expenses $ 4,849 Potential Net Operating Income As Is $ 18,178 Felderman Appraisals, Dubuque, Iowa 119 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Net Operating Income Summary — 430 Garfield Avenue Potential Operating Income Recap Item Square Feet Total times $ PSF Amount Potential Gross Income (430 Garfield Ave) 19,667 times $ 4.40 $ 86,518 Other Income 0 times $ - $ - Total Potential Gross Income $ 86,518 Reimbursable Expenses Real Estate Property Taxes Tenant(actual) Actual $ 8,644 Property Insurance Tenant (estimated) - $ 1,967 Repairs and Maintenance Tenant (estimated) - $ 3,933 Janitorial, landscaping, security Tenant (estimated) - $ 983 Utilities (gas, water, electrical, trash) Tenant (estimated) - $ 14,750 Total Reimbursable Expenses $ 30,278 Total Common Area Maint $ PSF $ 1.54 Total Potential Gross Income and Reimbursable Expenses $ 116,796 Less vacancy& credit loss I 15.0% $ 17,519 Effective Gross Income $ 99,276 Less Tenant Reimbursements $ 30,278 Effective Gross Income (Adjusted) $ 68,999 Non - Reimbursable Expenses Management Owner (5% estimated) 5% $ 4,964 Admin, Miscellaneous Owner (2% estimated) 2% $ 1,986 Reserves for Replacement Owner ($0.40 x Sq Ft) 3% $ 7,867 Total Non - Reimbursable Expenses $ 14,816 Potential Net Operating Income As Is $ 54,183 The Estimated Potential Net Operating Income must now be converted into a value using a Direct Capitalization Method. There are several methods analyzed in determining a Capitalization Rate, which may include a Band of Investment, a review of national investor surveys and or extraction from market sales. The following Capitalization Rate Analysis will provide a supported rate to use in this approach. Felderman Appraisals, Dubuque, Iowa 120 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Capitalization Rate Analysis Capitalization is the process of converting a series of anticipated installments of net income into a present value. In order to develop a capitalization rate appropriate to this area, the appraiser has considered several methods, which may include a derived band of investment mortgage equity rate, a debt coverage ratio method, national level investor surveys or market extracted rates and the likely demands of the local equity investor. The term Capitalization Rate as used in real property includes a return on and a return of investment. Return on investment is the compensation necessary to pay an investor for the time value of money, risk, and other factors associated with an investment (referred to as yield). Return of investment deals with repayment of the original Principle (referred to as capital recovery). Band oflnvestrnent Real estate is frequently purchased with a combination of debt financing and equity capital, the return on investment component of the overall capitalization rate must satisfy the market return requirements of each investment position. A method of determining a Capitalization Rate is to build a rate based on the Band of Investment Mortgage Equity Yield Component Method173, using mortgage rates from area lending institutions. This recognizes that typical investors will seek the best mortgage financing available in order to get a maximum yield on a minimum down payment. This method may be given less weight when there are extraction rates available from the comparable sales in the market. The mortgage constant is the capitalization rate for debt, and it is the ratio of the annual debt service to the principal amount of the mortgage loan. The equity investor seeks a rate of return on their capital investment and an eventual return of the amount invested. The rate used to capitalize equity income is referred to as the equity dividend rate. This is the ratio of equity dividend to the amount of equity. The overall rate must satisfy both the mortgage constant requirements of the lender and the equity dividend requirements of the equity investor. This rate is thereby a composite rate weighted by the proportion of the total property investment represented by the debt and the equity. According to local lending institutions174, typical interest rates for a commercial real estate mortgage rate of 3.0% to 8.0 %; amortization schedules range from 15 to 20 years; loan to value ratios range from 50% to 80 %; with five to ten year calls; and debt coverage ratios range from 1.2 to 1.3. 173 Loan -to -Value Ratio, Mortgage Interest Rate, Loan Term and Equity Dividend Rate used to develop a capitalization rate. 174 Data obtained from discussions with local financial institutions, Bankrate.com and subscription to RealtyRates.com; plus use of Compound Interest Tables (sometimes referred to as Elwood Tables for Real Estate Appraising and Financing) from The Appraisal ofReal Estate, American Institute of Appraisers in Chicago, Illinois. Feldennan Appraisals, Dubuque, Iowa 121 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The appraiser has reviewed Realty Rates 2nd Quarter of 2013 National Investor Survey for similar type property in the Central Business District, that supports interest rates of 2.7% to 8.5% with an average of 4.77 %, loan to value ratios of 50% to 90% with an average of 70 %, amortization periods of 15 to 30 years with an average of 24 years, terms of 3 to 30 years with an average of 11.46 years and debt coverage rate of 1.15 to 2.15 with an average of 1.49. The real estate market must compete with other financial markets to attract capital, including bonds, treasury bills, certificates of deposit, and the stock market. The overall rate must provide a return "on" as well the return "of' the investment. The return "on" the investment must include a compensating factor for the risk involved. Bond yields are often used as a benchmark for interest rates on real estate investments. As of the date of this appraisal, the annual mortgage constant is 0.101263 (Annual Compound Interest Tables, Column 6), determined from the Ellwood Tables based on the appraiser estimate of 6.0% interest rate at 15 years amortization for a typical borrower. The calculations use a selected equity dividend rate of 2.0% based on a long -term certificate of deposit yield (5 years), considered to be a "safe" risk. The factors used represent the overall yield from the real property investment, assuming the property will have some remaining value at the end of a holding period. Mortgage funds are typically available for 75% of the value, with a 25% equity- dividend rate sufficient to attract an investor. Many lending institutions have lower lending rates, but these are based on 3 to 5 years balloons. In order to attract a fixed rate for the anticipated holding period, a slightly higher interest rate must be paid. BAND OF INVESTMENT METHOD INTEREST RATE 6% AMORTIZATION PERIOD 15 YEARS 1.25 Loan Ratio 0.101263 Mortgage Constant 75% Rate MORTGAGE YIELD 0.75 times 0.101263 equals 7.59% Equity Ratio Equity Dividend Rate EQUITY YIELD 0.25 times 0.020000 equals 0.50% BAND OF INVESTMENT MORTGAGE EQUITY RATE (rounded) equals 8.10% Using the same criteria, and considering a debt coverage ratio of 1.25, the Debt Coverage Ratio method indicates the following rate. DEBT COVERAGE RATIO Interest Rate 6.0% Terms (Years) 15 Debt Coverage Ratio (LOCAL) 1.25 Mortgage Constant 0.101263 Loan to Value Ratio 75% Overall Capitalization Rate 9.5% Felderman Appraisals, Dubuque, Iowa 122 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 National Investor Survey The appraiser has reviewed published national surveys of economic indicators from the Appraisal Institute Valuation magazine for the most current quarterly indicators reported by Korpaz are in the table below. Economic Indicators Range and Averages Period 1st Quarter 2013 PwC Real Estate Survey Type Regional Malls CBD Offices Warehouses Apartments Average Discount Rate 5.75% to 14.00% 5.25% to 11.0% 5.75% to 11.00% 5.00% to 14.00% Discount Rate Avg. 9.25% 8.16% 7.62% 8.06% 8.27% OAR Range 4.50% to 10.50% 4.25% to 10.00% 5.00% to 10.00% 3.50% to 10.00% OM Avg. 6.92% 6.63% 6.63% 5.73% 6.48% Date Apr -13 Jan -13 Jan -12 Jan -11 Jan -10 Prime Rate 3.25% 3.25% 3.25% 3.25% 3.25% RealtyRates.com Period 2nd Quarter 2013 Average Commercial Mortgage Interest Rates Apartment Golf Senior Housing Indus. Lodging RV Camp, Mfg Housing, MH Park Office Restaurant Retail Self Store Special Purp. 8.20% 12.03% 8.78% 9.05% 10.56% 9.11% 9.44% 11.86% 9.02% 10.15% 11.15% RealtyRates.com Period 2nd Quarter 2013 2nd Quarter 2013 1st Quarter 2013 1st Quarter 2013 Type of Property Industrial WH Flex R&D Comm. Anchor Unachored OAR Avg. 9.40% 9.10% 7.10% 7.60% Bank Rate.com Jan -13 Jan -12 Jan -11 Jul -10 Jan -10 New House Loans 3.66% 4.15% 4.55% 4.75% 4.87% Used House Loans 3.75% 4.37% 4.70% 4.82% 4.90% RealtyRates.com Prime CD 1 mo CD 3 mo CD 6 mo T -Bill 1 -yr T -Yield 1yr 10 yr Conv Fixed Feb -13 3.25% 0.18% 0.22% 0.28% 0.14% 0.16% 1.98% 3.35% The PwC Real Estate Survey indicates an average OAR of 6.63% for Commercial Service or Industrial type uses. Realty Rates Survey indicates an average of OAR of 7.6% for Central Business Districts Commercial uses. Felderman Appraisals, Dubuque, Iowa 123 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Direct Capitalization Extraction Rate The Mortgage Equity Rate does not take into consideration additional risk that may apply for specific uses, locations, condition, or quality. Using actual Overall Capitalization Rates (OAR) from sales allows the appraiser to determine a capitalization rate that will include risk. When the sale of properties exhibit qualities similar to the subject, and where a Capitalization Rate (Net Income divided by the sale price) is able to be determined from sale and income data, that information is typically given greater consideration. There have been a few similar non -owner occupied sales in competing area. A capitalization rate summary includes the following property, though only those similar to the subject are considered in the table below, which reflects real estate market sales used to extract an OAR from the subj ect marketplace. OAR Extraction from Real Estate Sales Comparables Address Sales Price Sales Date NOI OAR USE 1501 Cental Dubuque $ 154,500 Jul -09 $ 14,761 9.55% COMM + APTS 1665 EmbassyWest, Dubuque $ 1,399,000 Oct -09 $ 128,288 9.17% OFFICES 3388 KennedyCircle, Dubuque $ 620,000 Mar -10 $ 49,600 8.00% OFFICES 3390 Asbury Rd, Dubuque $ 675,000 May -10 $ 46,575 6.90% OFFICES 252 Main St, Dubuque $ 245,000 Aug -11 $ 32,500 13.27% COMM + APTS 1172 Main St, Dubuque $ 173,500 May -12 $ 7,322 4.22% COMM + APTS Range Low High Average OAR approximate range 7.0% 13.0% 8.5% Felderman Appraisals Estimated OAR from Market 8.5% Based on the location and physical characteristics of the appraised property, along with all the previous information and conclusions found, it is this appraiser opinion, with weight given to the O.A.R. determined in the extraction from sales summary, the estimates from Investor Surveys, the Band of Investment and the Debt Coverage Ratio, that a Capitalization Rate range of 7.0% to 9.5% is supported for the subject property AS IS and AS IF Stabilized (using the higher than actual rent projections and discounted to a present value), with a selected rate of 8.0% for the purposes of this estimated approach. Felderman Appraisals, Dubuque, Iowa 124 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Net Operating Income Conversion To convert the Estimated Potential Net Operating Income to a value, it is divided by the determined Capitalization Rate. Direct Capitalization Method for 422 Garfield Ave Range Potential NOI Stabilized divided by OAR equals Indicated Value Low range $ 18,178 divided by 9.5% equals $ 191,347 Most Probable Range AS IS $ 18,178 divided by 8.0% equals $ 227,225 High Range $ 18,178 divided by 7.0% equals $ 259,686 Selected Income Approach Value for422 Garfield Ave (rounded) $ 227,000 Direct Capitalization Method for 430 Garfield Ave Range Potential NOI Stabilized divided by OAR equals Indicated Value Low range $ 54,183 divided by 9.5% equals $ 570,347 Most Probable Range AS IS $ 54,183 divided by 8.0% equals $ 677,288 High Range $ 54,183 divided by 7.0% equals $ 774,043 Selected Income Approach Value for430 Garfield Ave (rounded) $ 677,000 Income Approach Reconciliation In this approach, the appraiser has estimated income and expenses, and determined the potential income and expenses based on information determined from the real estate rental market. The appraiser was not provided any financial information from the owner. Thus, the appraisal determined the AS IF Stabilized value using potential net operating income and determined capitalization rate. This potential stabilized value would be utilized by an investor purchaser for the subject property and is considered to support the Market Value in Leased Fee Interest. The AS IS value would typically use actual income and expenses, a determined capitalization rate and such a value would be used by the appraiser to support the Market Value in Fee Simple Interest. In this case, the AS IS And AS IF Stabilized values are estimated to be the same for the purposes of this appraisal. Strengths and Weaknesses The strength of this approach is a stable, but limited, actual rental market as the national and regional economies recover from the Great Recession a few years ago. The weakness of this approach is the numerous estimates of income, expenses and capitalization rates since the subject is currently owner business occupied and is this approach is typically given weight for investor owned property. Felderman Appraisals, Dubuque, Iowa 125 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Sales Comparison Approach to Value In the Sales Comparison Approach, the appraiser developed an opinion of value by comparing the subject property with similar, recently sold properties in the surrounding or competing area. Inherent in this approach is the "Principle of Substitution ", which states that a prudent purchaser would pay no more for real property than the cost of acquiring an equally desirable substitute on the open market. It presumes the sale of similar or nearly similar properties from which units of comparison may be extracted and applied to the property being appraised for an indication of property value. The appraiser has reviewed similar sales in the subjects competing area (refer to the addendum area for all researched, but only those in the adjustment grid of this section are given weight). The appraiser uses a traditional adjustment grid175 utilizing percentage adjustments, for items that may include date of sale176, building size177, land to building ratio, financing178, location179, traffic counts, condition or finish180, or amenities such as personal property or equipment (if applicable). The final step of the sales comparison approach involves interpreting the resulting comparative data and drawing value conclusion(s). 175 Adjustment grid explanation; upward adjustments are made to comparables considered inferior to the subject, and conversely, a downward adjustment is made to comparables considered superior to the subject. These adjustments assist to arrive at the final adjusted rate (i.e. price per square foot of improved area), which is used to determine the approach to value for the subject land. Information obtained from public records, multiple listings service and appraiser records. 176 The market changes over period -of -time, and evidence supports an annual increase in value of 1% to 5% over the past few decades. 177 Typically, in the subject market, smaller buildings sell for more per square foot than similar larger buildings. 178 Unless specifically noted, all sales are considered cash or market - oriented financing. 179 Location adjustments are required when locational characteristics of a comparable property are different, such as access or visibility, based on the appraiser interpretation of the market impact. 180 Various physical traits are analyzed including condition and/or quality of finish. Feldennan Appraisals, Dubuque, Iowa 126 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Analysis of Sales Comparables The appraiser has interviewed brokers active in the marketplace to identify listings and sales. The charts below present similar current listings and the comparables selected for use in this approach. Listing Comparable Prope rty Address Subject Listing #1 Listing #2 Listing #3 4221430 Garfield 2455 Kerper Blvd 175 N. Crescent 1170 Roosevelt Prope rty City Dubuque, Iowa Dubuque, IA Dubuque, IA Dubuque, IA List Price nla $ 810,000 $ 550,000 $ 560,000 Date of Listing nla 6/17/2013 6/10/2013 6/17/2013 DOM (7/25/13) nla 37 44 37 Broker Office nla Broker Broker Broker Building Size 6008 /19667 42,424 13,464 8,880 Land Size 10421 141712 91,021 118,919 51,180 Land to Building Ratio 1.7312.12 2.15 8.83 5.76 $ per Square Foot (Bldg) $ per Square Foot (Land) $ 19.09 $ 40.85 $ 63.06 $ 8.90 $ 4.62 $ 10.94 While there are other sales comparables presented in the report, the following sales are used to determine the estimated value in this approach. There are a limited number of arms- length sales in usable condition (several sales not used were prior to renovation for use by the owner), an even more limited number of any sales in the area of similar size in the central business district, and limited number of buildings that sold as income property (not owner or majority owner occupied). There were two additional recent purchases of property along or just off of the Main Street corridor. 245 West 1st Street and 156 Main Street were both sold in the past year to an adjoining property owner with plans to demolish the buildings and renovate for additional parking. The owner paid more than market rates due to perceived need to expand and have enough parking to use all of his primary building as the business expands. These sales were reviewed and deemed inadequate to use in this market valuation. Felderman Appraisals, Dubuque, Iowa 127 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 For the purposes of this report, the appraiser is giving weight to the sales in the following chart(s). Comparable Sale #7 Sale #19 Sale #20 Property Address 1800 Elm St 1095 Cedar Cross Rd 2530 Kerper Blvd Property City Dubuque, IA Dubuque, IA Dubuque, IA Sale Price $1,200,000 $533,000 $560,000 Date of Sale 5/24/2011 4/2/2013 2/12/2010 List Price n/a n/a n/a Sale % of List $ n/a n/a n/a DOM n/a n/a n/a Building Size 26,902 14,400 15,423 Land Size 78,100 105,581 43,560 Land to Building Ratio 2.9 7.3 2.8 $ PSF (Building) $44.61 $37.01 $36.31 Comparable Sale #26 Sale #28 Sale #34 Property Address 1180 Roosevelt Ext 1160 E. 12th St 575 Huff St Property City Dubuque, IA Dubuque, IA Dubuque, IA Sale Price $300,000 $500,000 $750,000 Date of Sale 12/30/2011 4/2/2012 1/1/2013 List Price n/a n/a n/a Sale % of List $ n/a n/a n/a DOM n/a n/a n/a Building Size 13,149 18,000 28,790 Land Size 78,844 37,120 111,642 Land to Building Ratio 6.0 2.1 3.9 $ PSF (Building) $22.82 $27.78 $26.05 In accordance with The Appraisal Operational Manual, Office of Right of Way, Iowa DOT, listings do not qualify as comparable sales, in as much as they are not arms - length transactions. It has become typical appraisal practice to include listings since they provide some indications of declining or expanding markets. For the purposes of this repost, no listings are provided thought they have been researched and maintained in the appraisal files. Felderman Appraisals, Dubuque, Iowa 128 Appraisal Report of 422 and 430 Garfield Aveive, Dthuque, Iowa 52001 -3552 Sales and Listings Comparables Location Map Feldennan Appraisals, Dtbuque, Iowa 129 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Sales Comparison Chart for Comparables used to value 422 Garfield Avenue Comparable Subject Sale 7 Sale 19 Sale 20 Property Address 422 Garfield Ave 1800 Elm Street 1095 Cedar Cross Rd 2530 Kerper Blvd Property City Dubuque, Iowa Dubuque, IA52001 Dubuque, IA52003 Dubuque, IA52001 Sale Price nla $ 1,200,000 $ 533,000 $ 560,000 Date of Sale nla 5/24/2011 4/2/2013 2112/2010 Building Size (Main Floor) 6,008 26,902 14,400 15,423 Land Size 10,421 78,100 105,581 43,560 Land to Building Ratio 1.73 2.90 7.33 2.82 $ per Square Foot (Building) $ 44.61 $ 37.01 $ 36.31 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Adjustment 0.0% 0.0% 0.0% Financing/Conditions of Sale As If Cash As If Cash As If Cash As If Cash Adjustment 0.0% 0.0% 0.0% Market Conditions Ave rage Average Average Average Adjustment 0.0% 0.0% 0.0% Adjusted Price Per Sq Ft (CEV) $ 44.61 $ 37.01 $ 36.31 Location Dubuque Dubuque / Similar Dubuque / Similar Dubuque /Similar Adjustment 0.0% 0.0% 0.0% Size 6,008 Larger Larger Larger Adjustment 17.4% 15.7% 24.4% Land to Building Ratio /Lot Size 1.73 2.90 7.33 2.82 Adjustment -3.6% -4.4% -6.0% Age /Condition 1920 /BelowAvg 1955 upgraded /Avg + 1995 /Avg+ 1975 /Avg Adjustment - 20.0% - 20.0% - 10.0% Quality of Construction Block/Average Block/Average Steel/Average Brick/Block/Average Adjustment 0.0% 0.0% 0.0% Functional Utility(Height) 1 storyusablel10' I story/ 15'+ 1 story/18' 1 story416' Adjustment 0.0% 0.0% 0.0% Traffic CountlVisibility Low Low - Medium Medium Medium Adjustment -5.0% - 10.0% - 10.0% Amenities (Build -out, Parking) 55 %/Minimal 20 „0001Adequate 1400IAdequate 7000IMinimal Adjustment 6.5% 18.4% 5.8% Use, Zoning ShowroomlWarehouse Retail/Superior Recreation /Minimal Office/Warehouse Adjustment - 20.0% 20.0% 0.0% FF&E None None None None Adjustment 0.0% 0.0% 0.0% Total Gross Adjustment 72.5% 88.5% 56.2% Total Net Adjustment - 1.10% 4.10% 10.20% Adjusted Price Per Sq Ft $ 44.12 $ 38.53 $ 40.01 Felderman Appraisals, Dubuque, Iowa 130 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Sales Comparison Chart for Coinparables used to value 422 Garfielkl Avenue Comparable Subject Sale 26 Sale 28 Sale 34 PropertyAddress 422 Garfield Ave 1180 Roosevelt Ext 1160 E. 12th St 575 Huff St Property City Dubuque, Iowa Dubuque, IA52001 Dubuque, IA52001 Dubuque, IA52001 Sale Price n/a $ 300,000 $ 500,000 $ 750,000 Date of Sale n/a 12/30/2011 412/2012 1/1/2013 Building Size 6,008 13,149 18,000 28,790 Land Size 10,421 78,844 37,120 111,642 Land to Building Ratio 1.73 6.00 2.06 3.88 $ per Square Foot (Building) $ 22.82 $ 27.78 $ 26.05 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Adjustment 0.0% 0.0% 0.0% Financing / Conditions of Sale As If Cash As If Cash As If Cash As if Cash Adjustment 0.0% 0.0% 0.0% Market Conditions Average Average Average Average Adjustment 0.0% 0.0% 0.0% Adjusted Price Per Sq Ft (CEV) $ 22.82 $ 27.78 $ 26.05 Location Dubuque Dubuque 1 Similar Dubuque / Similar Dubuque / Similar Adjustment 0.0% 0.0% 0.0% Size 6,008 Larger Larger Larger Adjustment 23.8% 24.0% 30.4% Land to Building Ratio /Lot Size 1.73 6.00 2.06 3.88 Adjustment -7.0% -5.2% -6.3% Age /Condition 19201BelowAvg 1974 /Below Avg 1970 /Below Ave rage 19871Average+ Adjustment 0.0% 0.0% -20.0% Quality of Construction BlocklAverage BlocklAverage BricklAverage Metal /Average Adjustment 0.0% 0.0% 0.0% Functional Utility(Height) 1 storyusablell0' 1 story/16' 1 story115'+ 1 tory114'+ Adjustment 0.0% 0.0% 0.0% Traffic CountNisibility Low Low Low Low Adjustment 0.0% 0.0% 0.0% Amenities (Build -out, Parking) 55%/Minimal 1728 /Adequate 4500 /Minimal 2850 /Minimal Adjustment 27.5% 16.2% 26.0% Use, Zoning Showroom/Ware house Distribution /Office Warehouse /Office Industrial /Office Adjustment 20.0% 20.0% 20.0% FF &E None None None None Adjustment 0.0% 0.0% 0.0% Total Gross Adjustment 78.3% 65.4% 102.7% Total Net Adjustment 51.30% 40.20% 36.40% Adjusted Price Per Sq Ft $ 34.52 $ 38.94 $ 35.53 Felderman Appraisals, Dubuque, Iowa 131 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Discussion of the Sales Comparison Adjustment Process Prior to any adjustments, the sales comparables will indicate a unit -price range of values. Material differences between the subject property and the respective comparables may include transactional characteristics, location attributes, and or physical property characteristics. This method is outlined as followed by the Appraisal Institute. First, consideration is given to the appropriateness of dollar and /or percentage adjustments for the following transaction characteristics: • Property Rights Conveyed • Financing Terms / Conditions of Sale • Market Conditions (Time) The selected transactions all reflect the transfer of fee simple interests. Thus, no adjustments for property rights conveyed are indicated as part of this comparative process. All comparable sales reflect market typical or "normal" conditions of sale with no unusual circumstances that materially influence the negotiated purchase price. Therefore, no adjustments were applied for conditions of sale within this analysis. All comparable sales reflect normal financing terms of sale. More specifically, these transactions were purchased with all cash or financed through institutional lenders, private loan or seller -carry with a significant down payment. Therefore, no adjustment for financing terms of sale is applied within this analysis. The appraiser research of market conditions (time) show that values have been relatively stable over the past three to five years and even some slight decreases over the past two years in some older properties that have not been maintained. It is the appraiser opinion that no time adjustment is warranted or applied within this analysis. Secondly, consideration is given as the appropriateness of dollar and /or percentage adjustments for the following locational and/or property characteristics: • Locational attributes, including access proximity to freeways • Building Size • Building age /condition • Building quality of construction • Functional utility (height) • Traffic count /visibility • Amenities (interior build -out, available parking) • Use and Zoning Felderman Appraisals, Dubuque, Iowa 132 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Locational Attributes The subject property and all comparable sales are located within the subject competitive market area and no adjustments are applied for location within this analysis. Building Size181 The subject building area used for comparison is 6,008 square feet in size. The comparable sales range from ± 13,149 square feet to ±28,790 square feet. In analyzing the dynamics of the competitive market area, value indications are evident for buildings smaller than 30,000 square feet and larger than 100,000 square feet. The difference in size between the subject and the sale is multiplied by the determined adjustment factor $ per square foot, based on appraiser selected difference from market interpretation, and that percentage difference of the price per square foot is the adjustment percentage used in the grid. Difference Bldg Sale Sale $ PSF Bldg Size Subject Bldg. Area Subject from Sale Adjustment Factor Difference $ PSF Difference % Different 7 $ 44.61 26,902 6,008 20,894 $ 10.00 $ 208,940 $ 7.77 17.4% 19 $ 37.01 14,400 6008 8,392 $ 10.00 $ 83,920 $ 5.83 15.7% 20 $ 24.97 15,423 6008 9,415 $ 10.00 $ 94,150 $ 6.10 24.4% 26 $ 22.82 13,149 6008 7,141 $ 10.00 $ 71,410 $ 5.43 23.8% 28 $ 27.78 18,000 6008 11,992 $ 10.00 $ 119,920 $ 6.66 24.0% 34 $ 26.05 28,790 6008 22,782 $ 10.00 $ 227,820 $ 7.91 30.4% 34 $ 40.00 26,880 6008 20,872 $ 10.00 $ 208,720 $ 7.76 19.4% Age / Condition Adjustments were applied for property age or condition based on the use of regression analysis of numerous types of comparable sales, which supports a downward adjustment to Sales #7, #19, #20 and #34. Quality of Construction This adjustment is subjective based on the appraiser knowledge of the quality. The subject property and all comparable sales appear of similar comparable quality of construction, more specifically, all sales are constructed by concrete tilt construction. Therefore, no adjustments were applied for quality of construction within this analysis. 181 Formula used in the adjustment chart, with the building adjustment factor the price per square foot of the subject land. The subject square footage is subtracted from the sales comparable square footage, which is then multiplied by the subject building adjustment factor to determine a value difference, that is then divided by the sales comparable building size for a price per square foot difference, which is then divided by the sales comparable price per square footage to determine the percentage of difference to the subject. Felderman Appraisals, Dubuque, Iowa 133 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Land to Building Ratio (LTBR)I82 The subject property has a land to building ratio of 1.73:1. An appropriate adjustment was applied to the comparable sales based on the mathematic process below in order to effectively quantify an appropriate adjustment for this factor. Sale $ Subject Effective Subject Difference Land $ PS Sale PSF Lot Size LTBR Land Area Land Area Subject from Sale Adjustment Factor Difference Difference Different 7 $ 44.61 78,100 1.73 135,113 10,421 - 124,692 $ 1.00 $ (124,692) $ (1.60) -3.6% 19 $ 37.01 105,851 1.73 183,122 10,421 - 172,701 $ 1.00 $ (172,701) $ (1.63) -4.4% 20 $ 24.97 43,560 1.73 75,359 10,421 - 64,938 $ 1.00 $ (64,938) $ (1.49) -6.0% 26 $ 22.82 78,844 1.73 136,400 10,421 - 125,979 $ 1.00 $ (125,979) $ (1.60) -7.0% 28 $ 27.78 37,120 1.73 64,218 10,421 - 53,797 $ 1.00 $ (53,797) $ (1.45) -5.2% 34 $ 26.05 110,642 1.73 191,411 10,421 - 180,990 $ 1.00 $ (180,990) $ (1.64) -6.3% Amenities - Interior Build Out'83 The subject property has an interior build out the main usable level. All comparable sales reflect different interior finished build outs. Therefore, appropriate adjustments were applied for each comparable sale. A mathematic process was completed in order to effectively quantify an appropriate adjustment for this factor in the chart below. Sale $ Building % Effective Sale Difference Build -out $ PSF % Sale Subject Finish Finish Subject Adjustment Difference PSF Size Finish Area Area from Sale Factor Difference Different 7 $ 44.61 26,902 55.00% 14,796 20000 -5,204 $ 15.00 $ (78,059) $ (2.90) -6.5% 19 $ 37.01 14,400 55.00% 7,920 1400 6,520 $ 15.00 $ 97,800 $ 6.79 18.4% 20 $ 24.97 15,423 55.00% 8,483 7000 1,483 $ 15.00 $ 22,240 $ 1.44 5.8% 26 $ 22.82 13,149 55.00% 7,232 1728 5,504 $ 15.00 $ 82,559 $ 6.28 27.5% 28 $ 27.78 18,000 55.00% 9,900 4500 5,400 $ 15.00 $ 81,000 $ 4.50 16.2% 34 $ 26.05 28,790 55.00% 15,835 2850 12,985 $ 15.00 $ 194,768 $ 6.77 26.0% the land adjustment factor the price per square foot of the subject 182 Formula used in the adjustment chart, with land. The sales comparable square footage is multiplied by the subject LTBR for an effective comparable land area; then the sale actual land area is subtracted to obtain the difference from the subject, which is then multiplied by an appraiser determined land adjustment factor to obtain the dollar amount difference to the subject; which is then divided by the sales comparable square footage for a price per square foot difference to the subject, which is then divided by the sale price per square foot to determine the percentage of difference to the subject. 183 Formula used in the adjustment chart, with the land adjustment factor the price per square foot of the subject land. Sale square footage, time subject % of office /finish equals effective comparable office /finish area) less the comparable actual office area equals the amount different to subject), is then multiplied by the build out adjustment factor determined by the appraiser for the dollar amount inferior to subject; that is divided by the sale comparable square footage to obtain the price per square foot difference to subject); which is then divided by the sale price per square foot for a determined percentage to adjust the sale as inferior or superior to the subject. Feldennan Appraisals, Dubuque, Iowa 134 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Functional Utility (Height) The subject property and all comparables are of comparable usable height. Therefore, no adjustments were applied for functional utility within this analysis. Traffic Count/Visibility The subject property and all sales comparables reflect similar traffic counts, based on typical market desirability. They are all located along secondary roadways or interior streets with similar visibility when compared to the subject property. As such, adjustments for traffic count or visibility are applied within this analysis for Sale #7, #19 and #20, based on superior traffic counts. Amenities - Parking The subject property and all sales comparables reflect similar available parking areas, based on typical market standards for general industrial space. Furthermore, this feature is addressed with the following land to building ratio formula. In order to prevent a "double adjustment ", only a land to building ratio adjustment will be analyzed. Use and Zoning Adjustments for use or zoning were applied within this analysis based on the appraiser determination from the market. Comparable #7 was deemed superior, #20 was similar, and Comparables #19, #26, #28, and #34 were inferior and adjusted upward. Conclusion to the Sales Comparison Approach Prior to the application of the adjustment process, the chosen sales comparables exhibited a sales price range between $22.82 per square foot and $44.61 per square foot. After an analysis of relevant transaction and physical characteristics, an adjusted sales price range between $34.52 per square foot and $44.12 per square foot with an average of $38.61 per square foot was determined as representative of the subject property. Finally, the comparable sales chosen are the most representative indication for the subject property and deemed to be the best data available to develop an indication of market value. This range is considered a stable indication of potential sales prices of the freestanding industrial warehouse product within the subject market area. While the sales are generally similar in characteristics, there were no truly similar sales for this specific property. A qualitative and quantitative analysis was completed for the various differences between the subject and the comparables, to reflect the market perceived differences, and determined from the appraiser years of experience in the real estate and appraisal market, matched pair data, and or regression analysis of a number of comparables. Felderman Appraisals, Dubuque, Iowa 135 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Therefore, an indication of market value for the subject property based on the preceding analysis is $37.00 per square foot to $39.00 per square foot. As such, the final value indicator for the subject property is as follows: SALES COMPARISON APPROACH TO VALUE - 422 GARFIELD AVENUE Subject Square Footage $ Per Square Foot Indicated Value 6,008 times $ 37.00 equals $ 222,000 6,008 times $ 38.00 equals $ 228,000 6,008 times $ 39.00 equals $ 234,000 Selected Sales Comparison Approach Value, rounded to nearest $1,000, of say, $ 228,000 The preceding indication of market value is based upon an estimated marketing period and exposure time of 12 months or less. Additionally, this indication of market value does not include any amount of personal property, FF &E or going concern. The analysis for 430 Garfield Avenue follows on the next several pages. Felderman Appraisals, Dubuque, Iowa 136 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Sales Comparison Chart for Comparables used to value 430 Garfield Avenue BEFORE Subject Sale 7 Sale 19 Sale 20 PropertyAddress 430 Garfield Ave 1800 Elm Street 1095 Cedar Cross Rd 2530 Kerper Blvd Property City Dubuque, Iowa Dubuque, IA52001 Dubuque, IA52003 Dubuque, IA52001 Sale Price n/a $ 1,200,000 $ 533,000 $ 560,000 Date of Sale n/a 5/24/2011 4/2/2013 2/12/2010 Building Size (Main Floor) 19,667 26,902 14,400 15,423 Land Size 41,712 78,100 105,581 43,560 Land to Building Ratio 2.12 2.90 7.33 2.82 $ per Square Foot (Building) $ 44.61 $ 37.01 $ 36.31 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Adjustment 0.0% 0.0% 0.0% Financing / Conditions of Sale Ps If Cash Ps If Cash As If Cash Ps If Cash Adjustment 0.0% 0.0% 0.0% Market Conditions Average Average Average Average Adjustment 0.0% 0.0% 0.0% Adjusted Price Per Sq Ft (CEV) $ 44.61 $ 37.01 $ 36.31 Location Dubuque Dubuque / Similar Dubuque / Similar Dubuque 1 Similar Adjustment 0.0% 0.0% 0.0% Size 19,667 Larger Smaller Smaller Adjustment 6.0% -9.9% -11.0% Land to Building Ratio /Lot Size 2.12 2.90 7.33 2.82 Adjustment -0.5% -0.6% -4.7% Age /Condition 1890 /Average+ 1955 upgraded /Avg + 1995 /Average+ 1975 /Average Adjustment 0.0% 0.0% 10.0% Quality of Construction BricklAverage+ Block/Average Steel /Average BricklBlocklAverage Adjustment 0.0% 0.0% 0.0% Functional Utility(Height) 1 story usable /15' I story/ 15'+ 1 storyl18' 1 storyl16' Adjustment 0.0% 0.0% 0.0% Traffic CountNisibility Low Low - Medium Medium Medium Adjustment -5.0% -10.0% -10.0% Amenities (Build -out, Parking) 62 %!Minimal 20,000 /Adequate 1400 /Adequate 7000 /Minimal Adjustment -4.2% 21.2% 10.0% Use, Zoning Showroom/Warehouse Retail /Superior Recreation /Minimal Office/Warehouse Adjustment -20.0% 20.0% 0.0% FF &E None None None None Adjustment 0.0% 0.0% 0.0% Total Gross Adjustment 35.7% 61.7% 45.7% Total Net Adjustment -3.20% 1.30% -1.00% Adjusted Price Per Sq Ft $ 43.18 $ 37.50 $ 35.95 FeldermanAppraisals, Dubuque, Iowa 13- Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Sales Comparison Chart for Coinparables used to value 430 Garfield Avenue Comparable Subject Sale 26 Listing 28 Listing 34 PropertyAddress 422 Garfield Ave 1180 Roosevelt Ext 1160 E. 12th St 575 Huff St Property City Dubuque, Iowa Dubuque, IA52001 Dubuque, IA52001 Dubuque, IA52001 Sale Price n/a $ 300,000 $ 500,000 $ 750,000 Date of Sale n/a 12/30/2011 412/2012 1/1/2013 Building Size 19,667 13,149 18,000 28,790 Land Size 41,712 78,844 37,120 111,642 Land to Building Ratio 2.12 6.00 2.06 3.88 $ per Square Foot (Building) $ 22.82 $ 27.78 $ 26.05 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Adjustment 0.0% 0.0% 0.0% Financing / Conditions of Sale As If Cash As If Cash As If Cash As if Cash Adjustment 0.0% 0.0% 0.0% Market Conditions Average Average Average Average Adjustment 0.0% 0.0% 0.0% Adjusted Price Per Sq Ft (CEV) $ 22.82 $ 27.78 $ 26.05 Location Dubuque Dubuque 1 Similar Dubuque / Similar Dubuque / Similar Adjustment 0.0% 0.0% 0.0% Size 19,667 Smaller Smaller Larger Adjustment -21.7% -3.3% 12.2% Land to Building Ratio /Lot Size 2.12 6.00 2.06 3.88 Adjustment -7.0% -3.6% -6.7% Age /Condition 1890 /Average+ 1974 /Below Avg 1970 /Below Ave rage 19871Average+ Adjustment -20.0% -20.0% 0.0% Quality of Construction BricklAverage+ BlocklAverage BricklAverage Metal /Average Adjustment 0.0% 0.0% 0.0% Functional Utility(Height) 1 storyusablell5' 1 story/16' 1 story115'+ 1 tory114'+ Adjustment 0.0% 0.0% 0.0% Traffic CountNisibility Low Low Low Low Adjustment 0.0% 0.0% 0.0% Amenities (Build -out, Parking) 62%/Minimal 1728 /Adequate 4500 /Minimal 2850 /Minimal Adjustment 32.1% 20.0% 30.0% Use, Zoning Showroom/Ware house Distribution /Office Warehouse /Office Industrial /Office Adjustment 20.0% 20.0% 20.0% FF &E None None None None Adjustment 0.0% 0.0% 0.0% Total Gross Adjustment 100.8% 66.9% 68.9% Total Net Adjustment -9.60% -3.30% 42.20% Adjusted Price Per Sq Ft $ 20.63 $ 26.86 $ 37.04 Felderman Appraisals, Dubuque, Iowa 138 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Discussion of the Sales Comparison Adjustment Process Prior to any adjustments, the sales comparables will indicate a unit -price range of values. Material differences between the subject property and the respective comparables may include transactional characteristics, location attributes, and or physical property characteristics. This method is outlined as followed by the Appraisal Institute. First, consideration is given to the appropriateness of dollar and /or percentage adjustments for the following transaction characteristics: • Property Rights Conveyed • Financing Terms / Conditions of Sale • Market Conditions (Time) The selected transactions all reflect the transfer of fee simple interests. Thus, no adjustments for property rights conveyed are indicated as part of this comparative process. All comparable sales reflect market typical or "normal" conditions of sale with no unusual circumstances that materially influence the negotiated purchase price. Therefore, no adjustments were applied for conditions of sale within this analysis. All comparable sales reflect normal financing terms of sale. More specifically, these transactions were purchased with all cash or financed through institutional lenders, private loan or seller -carry with a significant down payment. Therefore, no adjustment for financing terms of sale is applied within this analysis. The appraiser research of market conditions (time) show that values have been relatively stable over the past three to five years and even some slight decreases over the past two years in some older properties that have not been maintained. It is the appraiser opinion that no time adjustment is warranted or applied within this analysis. Secondly, consideration is given as the appropriateness of dollar and /or percentage adjustments for the following locational and/or property characteristics: • Locational attributes, including access proximity to freeways • Building Size • Building age /condition • Building quality of construction • Functional utility (height) • Traffic count /visibility • Amenities (interior build -out, available parking) • Use and Zoning Felderman Appraisals, Dubuque, Iowa 139 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Locational Attributes The subject property and all comparable sales are located within the subject competitive market area and no adjustments are applied for location within this analysis. Building Size184 The subject building area used for comparison is 19,667 square feet in size. The comparable sales range from ±13,149 square feet to ±28,790 square feet. In analyzing the dynamics of the competitive market area, value indications are evident for buildings smaller than 30,000 square feet and larger than 100,000 square feet. The difference in size between the subject and the sale is multiplied by the determined adjustment factor $ per square foot, based on appraiser selected difference from market interpretation, and that percentage difference of the price per square foot is the adjustment percentage used in the grid. Subject Difference Bldg $ PS Sale Sale $ PSF Bldg Size Bldg. Area Subject from Sale m Adjustent Factor Difference Difference % Different 7 $ 44.61 26,902 19,667 7,235 $ 10.00 $ 72,350 $ 2.69 6.0% 19 $ 37.01 14,400 19667 -5,267 $ 10.00 $ (52,670) $ (3.66) -9.9% 20 $ 24.97 15,423 19667 -4,244 $ 10.00 $ (42,440) $ (2.75) -11.0% 26 $ 22.82 13,149 19667 -6,518 $ 10.00 $ (65,180) $ (4.96) -21.7% 28 $ 27.78 18,000 19667 -1,667 $ 10.00 $ (16,670) $ (0.93) -3.3% 34 $ 26.05 28,790 19667 9,123 $ 10.00 $ 91,230 $ 3.17 12.2% 34 $ 40.00 26,880 19667 7,213 $ 10.00 $ 72,130 $ 2.68 6.7% Age / Condition Adjustments were applied for property age or condition based on the use of regression analysis of numerous types of comparable sales, which supports a downward adjustment to Sales #26 and #28, and an upward adjustment for #20. Quality of Construction This adjustment is subjective based on the appraiser knowledge of the quality. The subject property and all comparable sales appear of similar comparable quality of construction, more specifically, all sales are constructed by concrete tilt construction. Therefore, no adjustments were applied for quality of construction within this analysis. 184 Formula used in the adjustment chart, with the building adjustment factor the price per square foot of the subject land. The subject square footage is subtracted from the sales comparable square footage, which is then multiplied by the subject building adjustment factor to determine a value difference, that is then divided by the sales comparable building size for a price per square foot difference, which is then divided by the sales comparable price per square footage to determine the percentage of difference to the subject. Felderman Appraisals, Dubuque, Iowa 140 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Land to Building Ratio (LTBR)185 The subject property has a land to building ratio of 2.12:1. An appropriate adjustment was applied to the comparable sales based on the mathematic process below in order to effectively quantify an appropriate adjustment for this factor. Sale Sale $ PSF Lot Size Subject LT BR Effective Land Area Subject Land Area Difference I Subject from Sale Land Adjustment Factor Difference $ PSF Difference /o % Different 7 $ 44.61 78,100 2.12 165,572 41,712 - 123,860 $ 1.00 $ (123,860) $ (1.59) -3.6% 19 $ 37.01 105,851 2.12 224,404 41,712 - 182,692 $ 1.00 $ (182,692) $ (1.73) -4.7% 20 $ 24.97 43,560 2.12 92,347 41,712 - 50,635 $ 1.00 $ (50,635) $ (1.16) -4.7% 26 $ 22.82 78,844 2.12 167,149 41,712 - 125,437 $ 1.00 $ (125,437) $ (1.59) -7.0% 28 $ 27.78 37,120 2.12 78,694 41,712 - 36,982 $ 1.00 $ (36,982) $ (1.00) -3.6% 34 $ 26.05 110,642 2.12 234,561 41,712 - 192,849 $ 1.00 $ (192,849) $ (1.74) -6.7% Amenities - Interior Build Out186 The subject property has a partial interior build out the main usable level. All comparable sales reflect different interior finished build outs. Therefore, appropriate adjustments were applied for each comparable sale. A mathematic process was completed in order to effectively quantify an appropriate adjustment for this factor in the chart below. Sale Sale $ PSF Building Size clo Subject Finish Effective Finish Area Sale Finish Area Difference Subject from Sale Build -out Adjustment Factor Difference $ PSF Difference Different 7 $ 44.61 26,902 62.00% 16,679 20000 -3,321 $ 15.00 $ (49,811) $ (1.85) -4.2% 19 $ 37.01 14,400 62.00% 8,928 1400 7,528 $ 15.00 $ 112,920 $ 7.84 21.2% 20 $ 24.97 15,423 62.00% 9,562 7000 2,562 $ 15.00 $ 38,434 $ 2.49 10.0% 26 $ 22.82 13,149 62.00% 8,152 1728 6,424 $ 15.00 $ 96,366 $ 7.33 32.1% 28 $ 27.78 18,000 62.00% 11,160 4500 6,660 $ 15.00 $ 99,900 $ 5.55 20.0% 34 $ 26.05 28,790 62.00% 17,850 2850 15,000 $ 15.00 $ 224,997 $ 7.82 30.0% 185 Formula used in the adjustment chart, with the land adjustment factor the price per square foot of the subject land. The sales comparable square footage is multiplied by the subject LTBR for an effective comparable land area; then the sale actual land area is subtracted to obtain the difference from the subject, which is then multiplied by an appraiser determined land adjustment factor to obtain the dollar amount difference to the subject; which is then divided by the sales comparable square footage for a price per square foot difference to the subject, which is then divided by the sale price per square foot to determine the percentage of difference to the subject. 186 Formula used in the adjustment chart, with the land adjustment factor the price per square foot of the subject land. Sale square footage, time subject % of office /finish equals effective comparable office /finish area) less the comparable actual office area equals the amount different to subject), is then multiplied by the build out adjustment factor determined by the appraiser for the dollar amount inferior to subject; that is divided by the sale comparable square footage to obtain the price per square foot difference to subject); which is then divided by the sale price per square foot for a determined percentage to adjust the sale as inferior or superior to the subject. Feldennan Appraisals, Dubuque, Iowa 141 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Functional Utility (Height) The subject property and all comparables are of comparable usable height. Therefore, no adjustments were applied for functional utility within this analysis. Traffic Count/Visibility The subject property and all sales comparables reflect similar traffic counts, based on typical market desirability. They are all located along secondary roadways or interior streets with similar visibility when compared to the subject property. As such, adjustments for traffic count or visibility are applied within this analysis for Sale #7, #19 and #20, based on superior traffic counts. Amenities - Parking The subject property and all sales comparables reflect similar available parking areas, based on typical market standards for general industrial space. Furthermore, this feature is addressed with the following land to building ratio formula. In order to prevent a "double adjustment ", only a land to building ratio adjustment will be analyzed. Use and Zoning Adjustments for use or zoning were applied within this analysis based on the appraiser determination from the market. Comparable #7 was deemed superior, #20 was similar, and Comparables #19, #26, #28, and #34 were inferior and adjusted upward. Conclusion to the Sales Comparison Approach Prior to the application of the adjustment process, the chosen sales comparables exhibited a sales price range between $22.82 per square foot and $44.61 per square foot. After an analysis of relevant transaction and physical characteristics, an adjusted sales price range between $20.63 per square foot and $43.18 per square foot with an average of $33.53 per square foot was determined as representative of the subject property. Finally, the comparable sales chosen are the most representative indication for the subject property and deemed to be the best data available to develop an indication of market value. This range is considered a stable indication of potential sales prices of the freestanding industrial warehouse product within the subject market area. While the sales are generally similar in characteristics, there were no truly similar sales for this specific property. A qualitative and quantitative analysis was completed for the various differences between the subject and the comparables, to reflect the market perceived differences, and determined from the appraiser years of experience in the real estate and appraisal market, matched pair data, and or regression analysis of a number of comparables. Felderman Appraisals, Dubuque, Iowa 142 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Therefore, an indication of market value for the subject property based on the preceding analysis is $33 per square foot to $34 per square foot. As such, the final value indicator for the subject property is as follows: SALES COMPARISON APPROACH TO VALUE - 422 GARFIELD AVENUE Subject Square Footage times $ Per Square Foot equals Indicated Value 19,667 times $ 33.00 equals $ 649,000 19,667 times $ 33.50 equals $ 659,000 19,667 times $ 34.00 equals $ 669,000 Selected Sales Comparison Approach Value, rounded to nearest $1,000, of say, $ 659,000 The preceding indication of market value is based upon an estimated marketing period and exposure time of 12 months or less. Additionally, this indication of market value does not include any amount of personal property, FF &E or going concern. Value ofDamages for proposed taking of 430 Garfield Avenue The value previously listed for 430 Garfield Avenue is based on a before the taking value, and would be used if the entire property were going to be taken. In the case of the subject, the client has identified the taking of the north warehouse and showroom that has approximately 10,640 square feet of building and 13,030 square feet of land to be taken. Based on the $33.50 per square foot determined above, that would produce a value for the taking of the building, plus the value for the 125 linear feet of fencing previously discussed in the cost approach. Damages for taking from 430 Garfield Avenue Square Footage times $ per Square Foot equals Damages 10,640 times $ 33.50 equals $ 356,440 Plus 125' of Fence times $ 19.60 equals $ 2,450 Total Damages $ 358,890 Value of 430 Garfield Avenue Before the Taking $ 659,000 Less the value of the damages (rounded) $ 359,000 Value of 430 Garfield Avenue After the Taking (rounded) $ 300,000 Felderman Appraisals, Dubuque, Iowa 143 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 RECONCILIATION OF MARKET VALUE Clients and users of this report should pay particular attention to the appraisal indication of how data was obtained (i.e. provided by owner /borrower, public records, contractor construction estimates, management firm or individual proforma, property inspection reports, etc.). The method identified will provide an indication of the validity of the data (i.e. actual market data or owners information). It is also imperative that the client or user of this report read any disclaimers, assumptions and conditions presented throughout the appraisal. If any of the conditions previously mentioned occur the appraiser will not be held accountable for those items or values placed within the discussion portion of this appraisal report, without being given a chance to adjust the value or provide rebuttal. When the client or user is relying on the appraisal, it is critical to verify the owner and/or borrower's ability to manage said real property or business property before extending any credit. Additionally, should the credit be identified for repairs or construction, the client or user must allow the appraiser to complete inspections of the work before making any withdrawals to the owner /borrower. The appraisal is performed in accordance with USPAP, within acceptable appraisal standards, and based on realistic projections if provided within the scope of the appraisal. However, should a significant external impact occur after the date of the appraisal report (such as 9 -11 attacks on America or Hurricane Katrina in Louisiana or the Great Recession of 2008 -2009) the values presented could change and we reserve the right to make adjustments to the subject value reported in this appraisal report. The intended use of this appraisal was to develop an opinion of market value (using the definition previously stated in this appraisal report) of the two separate real property. The appraiser identified the requirement to provide a value of 422 Garfield Avenue as one entity that may or may not be purchased by the client, and then the value of 430 Garfield Avenue before the proposed taking and the value after the proposed taking based on damages to the property. No value is included for FF &E, personal property or business value. The reconciliation involves the weighting of alternative value indications, based on the appraiser judged reliability and applicability of each approach to value, to arrive at a final market value conclusion. Reconciliation is required because different value indications result from the use of multiple approaches based on the quality of data in each approach. The reconciliation evaluates the strengths and weaknesses of the various approaches determined in this appraisal. To value the subject property, three approaches were researched and the determined values of those deemed appropriate to develop the market value are listed in the following chart, Felderman Appraisals, Dubuque, Iowa 144 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 The value is not the assemblage of individual values, though it does include the value of the land and the improvements. SUMMARY OF VALUE CONCLUSIONS Appraisal Premise 422 Garfield Avenue 430 Garfield Avenue Estimated Land Value (as if vacant) $ 120,000 $ 417,000 As Is AsIs(Before) By Cost Approach $ 290,500 $ 826,000 By Income Approach $ 227,000 $ 677,000 By Sales Comparison Approach $ 228,000 $ 659,000 *Value indications expressed in current dollars Ranges of value indicate a; Low $ 227,000 $ 659,000 High $ 290,500 $ 826,000 Difference 27.97% 25.34% Reconciled Value $ 228,000 $ 659,000 Compiled by Felderman Appraisals The Cost Approach typically gives a reliable value indication when there is strong support for the replacement cost estimate and when there is minimal depreciation. This approach uses estimates from a national cost service (that may not be to the exact specifications of the subject), with accrued depreciation estimated, and is then added to the determined Land Market Value as if vacant. This approach is most reliable for a newer property that has no significant amount of accrued depreciation or when there are no sales available in the existing market. It is considered less reliable, and given less weight, when valuing existing buildings. The Cost Approach is considered a test of reasonableness against the other valuation techniques and offers general support for the other approaches, but is not given weight in determining the final estimate of value. The Income Approach is typically given greatest weight when evaluating investor owned property. This approach is based on what a real property does produce and/or can most likely produce as an income earning property. The property is occupied by the owner or relatives and friends of the owner, and this appraiser was not provided any historical financial information or any lease terms. Thus, the appraiser evaluated the subject property to determine an estimated potential market rent using several lease comparables. Then, the Effective Potential Gross Income was determined based on estimated and actual expenses subtracted, determined from past appraisals and estimates from the market, to calculate a Potential Net Operating Income and then converted to an opinion of value using an estimated Capitalization Rate. Market participants are primarily analyzing properties based on their income generating capability. Felderman Appraisals, Dubuque, Iowa 145 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 An investor is the most likely purchaser of leased property, and a typical investor would place greatest reliance on the Income Approach, but not an owner occupied user. Therefore, the income approach is given minimal weight in the final opinion of market value estimate. The Sales Comparison Approach is more reliable in an active market when an adequate quantity and quality of comparable sales date are available and for owner occupied property. It provides a value based on comparing the subject to similar properties that have been sold recently or for which listing prices or offers are known. The sales used in this analysis are considered comparable to the subject properties, and the required adjustments were based on reasonable and well- supported rationale. Several sales were researched, but only those discussed in the main body of this report were given consideration in determining a value. This approach is typically the most relevant method for owner -user property, because it considers the prices of alternative property with similar utility for which potential owner occupied buyers would be competing. Therefore, the Sales Comparison Approach is considered a reliable value indicator, and is given substantial weight in the final opinion of value estimate, with support from the other approaches. The opinion (s) of market value includes the land and the improvements, but no FF &E, no personal property and no business or going concern value.187 The appraiser assumes that the subject real estate property will remain operational and is based on previously stated extraordinary assumptions and/or hypothetical conditions. The subject property has numerous attractive attributes such as the commercial business location, the adequate traffic and visibility, no cost along the street parking, the overall improving market conditions and the desirability of the area with many of the recent Bee Branch Project takings. While the proposed taking of part of 430 Garfield Avenue is in support of the Bee Branch Project, the original proposal was to take part of the adjoining railroad property, but those negotiations have not come to bear. The property has challenges, including the area has not yet seen the interest for more commercial and commercial service businesses, partly due to the federal, state and local monies being focused on the Millwork District (approximately ten blocks south of the subject). Additionally, the age, design and layout of the buildings may work adequately for the subject business use, but it may not be as desirable to other similar users. The subject property owner indicated that his business, Dubuque Furniture and Flooring, is known as the "carpet place on Garfield," and that any taking or relocation would impact his business. This appraisal is only dealing with the real estate and not the going concern, thus any impact on the business is not calculated or considered in the values presented here. 187 OCC Regulation 12 CFR Part 34, Subpart C, Section 34.44 (a)(13) requires that the appraisal "identify and separately value any personal property, fixtures, or intangible items that are not real property but are included in the appraisal, and discuss the impact of their inclusion or exclusion on the estimate of the market value." Felderman Appraisals, Dubuque, Iowa 146 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Exposure time is the length of time the properties would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Exposure time is always presumed to precede the effective date of the appraisal. Marketing time is an estimate of the amount of time it might take to sell a property at the estimated market value immediately following the effective date of value. Based on the appraiser review of recent sales transactions for similar properties and analysis of the supply and demand in the local market, presented earlier in this report, it is the appraiser opinion that a reasonable marketing period is likely the same as the exposure time. Accordingly, the appraiser estimate of the subject's marketing period is estimated at 12 months. This appraisal report determined an As Is Value for 422 Garfield Avenue and 430 Garfield Avenue as separate entities. The appraiser performed research on the value of the two properties as one complex, but the overall larger size would likely reduce the overall value (as discussed within the report, larger parcels warrant a lower price per square foot than similar smaller size parcels). While that analysis is not included in the report, since it was not part of the proposed request from the client and intended user, that research and calculations are maintained in the appraiser work file. As well, the subject assignment was to determine a value for 430 Garfield Avenue after the proposed taking, in accordance with the appropriate jurisdictional regulations. The value determined before the taking provided a price per square foot, which was multiplied by the square footage of the taking (approximately 10, 640 square feet) to determine that loss or damages to the complex, plus the damages for the loss of fencing to be taken (which is part of the damage estimate). One item that should be noted, that the rear showroom addition was constructed with three walls along the part of the building to be taken. It will be necessary to leave the most southern portion of that wall so that the showroom addition may continue to be usable. If that is not the expected course of action, the appraiser reserves the right to determine if any additional damages may be incurred. As of the effective date of this appraisal, based on the reconciled foregoing data and analysis of the data contained in this appraisal report, subject to the definitions, assumptions and limiting conditions, hypothetical conditions and extraordinary assumptions, appraiser certifications, degree of observation of the subject property, the identified appraisal problem and defined scope of work, the opinion of market value conclusion for the subject is presented in the following chart. Felderman Appraisals, Dubuque, Iowa 147 Appraisal Report of 422 and 430 Garfield Avenue, Dubuque, Iowa 52001 -3552 Market Value Conclusion Appraisal Premise As Is 422 As Is 430 (Before) As If 430 (after) AssumptionslConditions None significant None significant Hypothetical Condition Interest Appraised Fee Simple Fee Simple Fee Simple Effective Date of Value 20JuI.13 20JuI.13 20JuI.13 Marketing Time 12 months 12 months 12 months Land Market Value $120,000 $417,000 Improvement Value $108,000 $242,000 FF &E Value $0 $0 Value Before Damages $ 659,000 Business Value $0 $0 Damages Estimated $ 359,000 Total Value Conclusion $228,000 $659,000 Value After Damages $ 300,000 Compiled by Felderman Appraisals R9 ii) i 10 August 2013 9130113 148 f r - - - ROBERT J. FELDERMAN Date IA CG01134 Expires 6130114; WI 766 -010 Expires 12114113; IL 553.002107 Expires Felderman Appraisals, Dubuque, Iowa ADDENDUM A BUILDING SKETCH Al SITE PLAN A2 Felderman Appraisals, Dubuque, Iowa 430 Garfield Avenue Main Level — Second Level 422 Garfield Avenue Main Level Second Level SKETCH 25,675 square feet - 7,850 square feet — 6,008 square feet — 2,780 square feet Warehouse Restroom Showroom Bedrooms Showroom Elevato r Restroom Stairs Office 52' Showroom Main Floor 430 Garfield Ave 199' 137' Elevato r Stairs Unfinished Storage Second Floor 137' 44' Restroom Office 48' Main Floor 20' 24' 0 0 t Showroom 48' Second Floor 422 Garfield Ave Felderman Appraisals, Dubuque, Iowa SITE PLAN Feldam= Ay,rasaas, Dulwgaea Iowa ADDENDUM B AREA MAP B1 AERIAL MAP B2 PLAT MAP B3 CENSUS TRACT MAP B4 FLOOD HAZARD MAP B5 ZONING MAP B6 ZONING DATA CS 430 GARFIELD B7 ZONING DATA LI 422 GARFIELD B8 TRAFFIC COUNT MAP B9 Felderman Appraisals, Dubuque, Iowa AREA MAP DLLORPIE Data use suepe le Menu. 0 2007 Cttorr e. Street *Ms USS0 2000. www.dame cam • — to — MI • - 0 1 2 3 4 5 6 7 0 Oats 2oom90 m Debi use sueye m Menu. 02007 Detorre. ;creel Miss USSM42000. www. deters .cam 14N (0.7' 70 • • 0 C d d d 1» 110 Date Zoom S- Feldsrmme Appraisals, Dubuque, Iowa Aerial Plat Map y► SOT 1- 00 SEC. 24 -89Nt *Notice - These maps are compiled for assessment and tax information purposes from official county records. All map information shovin is for the forgoing purpose and does not represent a survey of land. PLAT MAP 422 Garfield Ave Lot is approximately 10,421 square feet SMEDLEY'S SUB. 024222002 PLACE ITS1&2 IN W. .3 DERBY _ PLACE 2 -1 22 2- -2- L 106 0'Wcp yo. .04 6 00 2P 44 45 SUB. OF LOT2 -ML ' 106 SEC. 24- 89N -2E 1 as roj422'onSUB. OF LOT 2- 2 -2-ML �s 106 SEC. 24- 89N -2E 3 co 105 �y EAST DUBUQUE, SUB. • F LOTS 1.11 & 1 -A-ML 9 0 & 1-2-2-ML 106 SEC. 24-89N- e5s (15 -1 -11 .,o (0242.04002 w 2 2 -A- 10. L 100 303 1 -1 -A- +224 L 100 q -1 -1 2 -11 5A 10 0 0 43 23f 00f tbO g0 Ymmi"EASTD• BUQ E, SU OF LOTS 11 & -ML 1 SEC. 244 N -2E 13 o, 1I Feklermme Appraisals, Dubuque, dowa 6.2 1024240001 12 1 222.5 SUB. OF LOT 1 -B -ML 100 SEC. 24- 89N -2E 5 S to 125 6 46 Neeb''5 Nojk- 47 lib 0 48 11%°. aj 49 50 • 4 10240 OIf 1 f7N5°• RAILROAD AD 0 10 5.> 1024216010 `OT uGQ 9 , .9024216011 PLAT MAP 430 Garfield Ave Lot is approximately 41,712 square feet �C L. 0. 1024230092/ 1024230021 0 4' 71' �j DAVIS PLACE Ii/ 9024230025 16.21 A -1 INDUSTRIAL BLOCK, SUB. OF 9024230022 1 s, su OF,OT1 -9 /9024216. 94 ON SMEDLEY'S SUB. 9024232003 PLACE OF •TS1 &2 IU' ON W. NO. 3 DERBY PLACE 2 -1 62, BY P 9ti 22 -2- L10 id Oa %-4 1024234002 'P° 1 -11 92 2 -A- 10.9 L 100 03 w 2 1 -1 -A- 1024234001 10 `1 9.44 4N1: -1'� 1024233001 /4233002 59 10 EAST 0 BUQ OF LOTS 11 & SEC. 24-8 -2E 13 • <1 2 SUB. OF LOT2 -ML 106 SEC. 24-89N-2E 1 C-, 1024234003 tS r SUB. OF LOT2- 2 -2 -ML% rr 106 SEC. 24.89N -2E d 1 .�o 45 0142 �0 43 44 EAST DUBUQUE, SUB. - F LOTS 1 -11 & 1-A -ML & 1.2 -2 -M 106 SEC_ 24-89 7 L 100 -1 -1 2 -11 '9, E, SU -ML 1 4' I FelcdermanApplaisals, Dubuque, Iowa 6.2 12 3 1 222.5 SUB. OF LOT 1-B -ML 100 SEC. 24- 89N -2E `JO 30 700 ti'32 r0O c,33 4 34 && ti`' tih stih 3 Ns 1024231001 30 ^3N3 46 3A`' 47 N3' 48 4 5 or 9024234008 128 6 36 ?O? 24 25 2E 2y 3. 37 C,6. 38 a �s 39 40 2 s 41 ,\o1- N-3S 6' 1024502011 1.b see �s 4 NI°. a V a'S 3 14' 102 a ' 50 41ooRAILROAD ADD. 3 aw 6tk 12 aw 100 1 RAILROAD ADD. 1024502004 1024235004 1oc 4 0 RA o LC <=." EA oo 1119101025 CENSUS MAP Census Tract Map 19 -061, Area 0005.00 Sage %ilke 11.02 Felderusan Appraisals, Dubuque, Iowa InterFlood 0 W • Ie mode www.interflood.com • 1- 800 - 252 -6633 Prepared for: Felderman Appraisals 430 Garfield Ave Dubuque, IA 52001 -3552 1 v. • 300',.1 c‘ co' : 9ocY rat 12C°'E -.ZONE FLOODSCAPE Flood Hazards Map Map Number 19061CO243E Effective Date October 18, 2011 Powered by FloodSource 877.77.FLOOD www.fbodsource .com 1 A 0 1578-2012 SourceProse and /or FksdSnnrce Corporations. Alt rights reserved. Patents 8.831.326 and 8.878.815. Otter patents pending. For Info: info @tbodsource.com. Zoning Map CS (430) and LI (422) *Notice - These maps are compiled for asses= ent and tax information purposes from official county records. All map information :hovui is for the forgoing purpose and does not represent a survey of land. 5 -16 CS Commercial Service and Wholesale The CS District is intended to provide locations for a variety of business services, office uses, limited industrial activity and major wholesale operations. The CS uses are primarily characterized by large storage space requirements, high volume truck traffic and low volume customer traffic. It is intended that the CS District is one that provides a transitional zone that can be used between industrial and commercial uses and in cases where topography establishes a transitional area due to physical limitations between industrial and higher density residential development. 5 -16.1 Principal Permitted Uses The following uses are permitted in the CS District: 1. Agricultural supply sales 2. Animal hospital or clinic 3. Appliance sales or service 4. Auto part sales or supply 5. Business services 6. Construction supply sales or service 7. Contractor shop or yard 8. Farm implement sales or service 9. Freight transfer facility 10. Fuel or ice dealer 11. Furniture upholstery or repair 12. Furniture or home furnishing sales 13. General office 14. Kennel 15. Landscaping services (not including retail sales as primary use) 16. Lumberyard or building material sales 17. Mail order house 18. Dental or medical lab 19. Mini warehousing 20. Moving or storage facility 21. Off street parking lot 22. Office supply 23. Pet daycare or grooming 24. Printing or publishing 25. Processing or assembly 26. Passenger transfer facility 27. Resource recovery /recycling center (indoor only) 28. Railroad or public or quasi - public utility, including substation 29. Refrigeration equipment sales or service 30. Upholstery shop 31. Vehicle body shop 32. Vehicle sales or rental 33. Vehicle service or repair 34. Vending or game machine sales or service 35. Wholesale sales or distributor 5 -16.2 Conditional Uses The following conditional uses may be permitted in the CS district, subject to the provisions of Section 8 -5: 1. Licensed adult day services 2. Licensed child care center 3. Wind energy conversion system. 5 -16.3 Accessory Uses The following uses are permitted as accessory uses as provided in Section 3 -7: 1. Any use customarily incidental and subordinate to the principal use it serves. 2. Wind energy turbine (building- mounted). 5 -16.4 Temporary Uses The following uses shall be permitted as temporary uses in the CS district in conformance with the provisions of Section 3 -19: 1. Any use listed as a permitted use within the district. 5 -16.5 Parking Minimum parking requirements shall be regulated in conformance with the provisions of Article 14. 5 -16.6 Signs Signs shall be regulated in conformance with the provisions of Article 15. 5-16.7 Bulk Regulations CS Commercial Service and Wholesale Min Lot Min Lot Area Frontage (square feet) (feet) Max Lot Coverage (% lot area) Setbacks Min Side' Front (feet) Min Max (feet) Min Rear- Height (feet) (feet) Vehicle Sales 20,000 All Other Uses I 2200 I ___ I ___ I 40 1 40 1 When abutting a residential or office- residential district, a 20 foot side setback is required. 2 When abutting a residential or office- residential district, a 20 foot rear setback is required. 5 -18 LI Light Industrial The LI District is intended to provide locations for a variety of uses associated primarily in the conduct of light manufacturing, assembling and fabrication, warehousing, wholesaling and commercial service operations that require adequate accessibility to transportation facilities. The district is also intended to provide locations for a limited amount of commercial development that will serve employees of surrounding industrial uses. 5 -18.1 Principal Permitted Uses The following uses are permitted in the LI district: 1. Agricultural supply sales 2. Animal hospital or clinic 3. Auto part sales 4. Automated gas station 5. Bakery (wholesale /commercial) 6. Bank, savings and loan, or credit union 7. Bar or tavern 8. Business services 9. Carwash, full service 10. Carwash, self service 11. Cold storage or locker plant 12. Construction supply sales or service 13. Contractors shop or yard 14. Drive up automated bank teller 15. Farm implement sales, service or repair 16. Freight transfer facility 17. Fuel or ice dealer 18. Furniture upholstery or repair 19. Gas station 20. General office 21. Grocery store 22. Indoor recreation facility 23. Indoor restaurant 24. Kennel 25. Laboratory for research or engineering 26. Lumberyard or building materials sales 27. Mail order house 28. Manufacturing, secondary 29. Dental or medical lab 30. Mini - warehousing 31. Mobile home sales 32. Moving or storage facility 33. Off street parking lot 34. Outdoor recreation facility 35. Parking structure 36. Passenger transfer facility 37. Pet daycare or grooming 38. Printing or publishing 39. Processing, packaging, or storing meat, dairy or food products, but not including slaughterhouses or stockyards 40. Railroad or public or quasi - public utility, including substation 41. Restaurant, drive in or carryout 42. Service station 43. Tool, die, or pattern making 44. Resource recovery /recycling center (indoor only) 45. Upholstery shop 46. Vehicle body shop 47. Vehicle sales or rental 48. Vehicle service or repair 49. Vending or game machine sales or service 50. Warehousing or storage facility 51. Welding services 52. Wholesale sales or distributor 5 -18.2 Conditional Uses The following conditional uses may be permitted in the LI district, subject to the provisions of Section 8 -5: 1. Licensed adult day services 2. Licensed child care center 3. Wind energy conversion systems 5 -18.3 Accessory Uses The following uses are permitted as accessory uses as provided in Section 3 -7: 1. Any use customarily incidental and subordinate to the principal use it serves. 2. Wind turbine (building- mounted). 3. Drive -up automated bank teller. 5 -18.4 Temporary Uses The following uses may be permitted as temporary uses in the LI district in conformance with the provisions of Section 3 -19: 1. Any use listed as a permitted use within the district. 5 -18.5 Parking Minimum parking requirements shall be regulated in conformance with the provisions of Article 14. 5 -18.6 Signs Signs shall be regulated in conformance with the provisions of Article 15. 5 -18.7 Bulk Regulations LI Light Industrial Min Lot Min Lot Max Lot Area Frontage Coverage (square (% lot feet) (feet) area) Setbacks Min Side' Front (feet) Max Min Rear` Max Height (feet) (feet) (feet) Vehicle Sales I 20,000 All Other Uses 50 50 When abutting a residential or office- residential district, a 20 -foot side setback is required. 2 When abutting a residential or office - residentail district, a 20 -foot side setback is required. DUBUQUE 2009 TRANSPORTATION COUNT MAP (EXCERPT) Approximately 5,800 to 5,900 traffic count per day along Garfield Avenue Fe/dermal Appraisals, Dubuque, bwa ADDENDUM C SUBJECT PHOTOGRAPHS Felderman Appraisals, Dubuque, Iowa PHOTOGRAPHS OF SUBJECT i FRONT OF 430 GARFIELD AVENUE MIDDLE FRONT OF 430 Fe/dermal Appraisals, Dubuque, bwa PHOTOGRAPHS OF SUBJECT LEFT FRONT OF 430- NORTH SIDE OF 430 Fe/dermal Appraisals, Dubuque, bwa PHOTOGRAPHS OF SUBJECT SOUTHS IDE OF 430 REAR OF 430 Fe/dermal Appraisals, Dubuque, bwa PHOTOGRAPHS OF SUBJECT Fe/dermal AyyrasaIs, Dubuque, bwa PHOTOGRAPHS OF SUBJECT STREET VIEW 4301 - EXTERIOR DOORWAY 430x, Fe/dermal AyyrasaIs, Dubuque, bwa PHOTOGRAPHS OF SUBJECT ACCESS DRIVE 430 4.,INTERIOR SHOWROOM 4� Fe/dermal AyyrasaIs, Dubuque, bwa PHOTOGRAPHS OF SUBJECT FREIGHT ELEVATOR 430 VEHICLE DOOR 430 11 - WAREHOUSE 430 Fe/dermal AyyrasaIs, Dubuque, bwa PHOTOGRAPHS OF SUBJECT TRUCK DOCK 430 SHOWROOM BEDROOMS 430 Fe/dermal AyyrasaIs, Dubuque, bwa PHOTOGRAPHS OF SUBJECT c* Fe/dermal Appraisals, Dubuque, bwa t2ND FLOOR STORAGE 430 PHOTOGRAPHS OF SUBJECT 2ND LEVEL CEILINGS 430 SHOWROOM SPRINKLER 930 -F Fe/dermal AyyrasaIs, Dubuque, bwa PHOTOGRAPHS OF SUBJECT ELECTRICAL PANELS 430 INSULATION WALLS 430 UTILITY ROOM 430 \ SPRINKLER PIPES 430 ■n* Fe/dermal AyyrasaIs, Dubuque, bwa PHOTOGRAPHS OF SUBJECT Fe/dermal AyyrasaIs, Dubuque, Iowa PHOTOGRAPHS OF SUBJECT • FRONT OF 422 GARFIELD AVENUE com n..w.rnN' Pesunil (1377) GARFIELD AVENUE Fe/dermal AyyrasaIs, Dubuque, Iowa PHOTOGRAPHS OF SUBJECT REAR AND SIDE 422WSF JcK- "TRUCK RAMP ACCESS DOOR 42Z - —t GUTTERS AND WALL 422 STEEL SIDING 422 SIDEr UPPER LEVEL 422 SHOWROOM Fe/dermal Appraisals, Dubuque, Iowa PHOTOGRAPHS OF SUBJECT MAIN LEVEL 422 GARAGE DOOR FRONT 422 —C- ISHOWROOM 422 a RESTROOM MAIN LEVEL 422 Fe/dermal AyyrasaIs, Dubuque, Iowa PHOTOGRAPHS OF SUBJECT Fe/dermal AyyrasaIs, Dubuque, Iowa PHOTOGRAPHS OF SUBJECT KINEST STREET -CURB AND DRAIN 430 'ter" — r —: GARFIELD AVENUE LOOKING NORTHERLY 430 AND 422 Fe/dermal Appraisals, Dubuque, Iowa ADDENDUM D COMPARABLE SALES DATA INFORMATION LAND D1 COMPARABLE SALES DATA INFORMATION IMPROVED D2 COMPARABLE SALES PHOTOGRAPHS IMPROVED D3 SUBJECT AND COMPARABLES MAPS D4 Felderman Appraisals, Dubuque, Iowa LAND SALE # 1 ADDRESS MAPLE AND CEDAR STREETS, BETWEEN EAST 15TH AND EAST 16111 STREET, DUBUQUE, IA SALE PRICE $102,500 SALE DATE 12/22/2008 LEGAL 10 -24- 285 -012 (LOT 353) 10 -24- 285 -015 (E'1 LOT 352), 10 -24- 285 -006 (LOT 319) AND 10 -24- 285 -013 (W. 'h LOT 352), ALL IN EAST DUBUQUE ADDITION, DUBUQUE, IOWA DOCUMENT 09 -11 AND 09 -10 SELLER 7UNNIE AND RICH'S COIN PARTNERSHIP BUYER CITY OF DUBUQUE LOT SIZE 17,825 SQUARE FEET (0.409 ACRES) ZONING HEAVY INDUSTRIAL $ PER SQ FT $5.75 PER SQUARE FOOT VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER ASSESSORS 10 -24- 285 -012, 10 -24- 285 -015, 10 -24- 285 -013, 10 -24- 285 -006 COMMENTS SOLD TO CITY FOR USE IN EXTENDING BEE BRANCH DETENTION BASIN IN THE AREA. SALE WAS BASED ON APPRAISAL OF THE LAND WITH AGREEMENT ON THE PRICE BY BOTH PARTIES. Felder »am: Appraisals, Dubuque, dowa LAND SALE # 2 ADDRES S SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE/BUYER LOT SIZE ZONING $ PER SQ. FT. VERIFICATION ASSESSORS COMMENTS Felder »am: Appraisals, Dubuque, dowa LOWER 40 MAIN STREET, DUBUQUE, IOWA $157,583 9/21/2009 09 -21857 CITY OF DUBUQUE 40 MAIN LLC 23,418 SQUARE FEET C4 DOWNTOWN COMMERCIAL & OC OFFICE COMMERCIAL $6.73 PUBLIC RECORDS ASSESSOR & RECORDER, BUYER 10 -25- 290 - 019, -20, -022, AND -023. PURCHASED FROM CITY BY ADJOINING PROPERTY OWNER FOR USE AS PARKING WITH NEW COMMERCIAL AND RESIDENTIAL DEVELOPMENT AT 40 AND 42 MAIN STREET. -022 AND - 023 WERE PART OF STREET THAT WAS VACATED. INTERVIEW BUYER AS PART OF NEWSPAPER ARTICLE WRITTEN FOR DUBUQUE 365 MAGAZINE. ADDRESS SALE PRICE SALE DATE LAND SALE # 3 LOWER MAIN STREET, DUBUQUE, IA $150,000 4/16/2010 LEGAL W 93' OF LOT 2, BALANCE OF W. 93' LOT 3 AND E. 20' OF LOTS 2 & 3 & LOT 2B ALL IN W. 'h BLOCK 10, DUBUQUE HARBOR C O' S ADDITION DOCUMENT 10 -5011 GRANTOR/SELLER ARCON INC., 3514 NORTH POWER RD GRANTEE /E:UYER ALB, LLC LOT SIZE 13,280 SQUARE FEET ZONING C3 GENERAL COMMERCIAL DISTRICT $PERSQ.FT. $11.30 VERIFICATION PUBLIC RECORDS ASSESSOR & RECORDER ASSESSORS 10 -25- 429 -014 COMMENTS ASSESSED VALUE OF $46,400 (TIME OF SALE). GRAVEL PAVED LOT, AT INTERSECTION WITH TRAFFIC LIGHT ON RAMP TO HIGHWAY. ADJOINS C4 DOWNTOWN AREA. ADJOINING PROPERTY OWNER HAD PURCHASED WITH GAS STATION, CONVENIENCE STORE, FAST FOOD RESTAURANT AND SPLIT OFF (PREVIOUSLY APPRAISER ENTIRE PARCEL FOR ARCON). Fe:dermae Appraisals, Duluequa, bwa LAND SALE #4 ADDRESS INLAND MOLASSES DRIVE, DUBUQUE, IA SALE PRICE $88,518 SALE DATE 5/24/2010 LEGAL LOT 2INLAND MOLASSES PLACE #2 DOCUMENT 10 -8435 SELLER INLAND PROTEIN CORPORATION BUYER CITY OF DUBUQUE LOT SIZE 44,257 SQUARE FEET (1.02 ACRES) ZONING HEAVY INDUSTRIAL $ PER SQ.FT $2.00 PER SQUARE FOOT VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER, BUYER ASSESSORS 16 -06- 103 -003 COMMENTS SOLD TO ADJOINING PROPERTY OWNER FOR USE IN EXTENDING UTILITIES IN THE AREA. SALE WAS BASED ON APPRAISAL OF THE LAND WITH AGREEMENT ON THE PRICE BY BOTH PARTIES. Fe/dermal Appraisals, Dubuque, Iowa ADDRES S SALE PRICE SALE DATE LAND SALE # 5 EAST 16111 STREET, DUBUQUE, IA $1,636,728 LEGAL IvITJLTIPLE PARCELS (6) DOCUMENT 10 -11132 SELLER HWY 151 & 61 DEVELOPMENT LLC BUYER CITY OF DUBUQUE LOT SIZE 4.412 ACRES (192,356 SQUARE FEET) ZONING PC PLANNED COMMERCIAL $ PER SQ. FT $5.39 VERIFICATION PUBLIC RECORDS ASSESSOR & RECORDER ASSESSORS 11 -19- 101 -025, 10 -24- 285 -001, -002, -008, -009, AND -011 COMMENTS PURCHASED AS PART OF THE BEE BRANCH STORMWATER MANAGEMENT EFFORT. WAS PART OF THE FORMER MEAT PACKING COMPANY THAT WAS PURCHASED AND RAZED. REZONED TO PC FOR FUTURE DEVELOPMENT. SITE WAS VACANT AND UNUSED AT TIME OF SALE. RESTRICTIONS FOR USE FROM GAS STATION, CONVENIENCE STORE, PHARMACY OR FAST FOOD RESTAURANT. Fe:dermae Appraisals, Du&qua, bwa ADDRES S SALE PRICE SALE DATE DOCUMENT LEGAL SELLER BUYER LOT SIZE ZONING $ PER SQ. FT. VERIFICATION ASSESSOR LAND SALE # 6 MEINEN COURT, DUBUQUE $160,000.00 8/10/2010 10 -11985 LOT 1 MEINEN PLACE BUSINESS CENTER TOMMY PROPERTIES LLC -TSI TIMOTHY STACKIS 108,644 SQUARE FEET C2 NEIGHBORHOOD COMMERCIAL $1.47 PUBLIC RECORDS ASSESSOR & RECORDER, BROKER 10 -16- 377 -044 COMMENTS SALE OF VACANT LAND AT END OF CUL -DE -SAC. LEVEL TO ROLLING LOT, LAND ASSESSED AT $13,410 IN 2010. BUYER BUILT WALKOUT LEVEL COMMERCIAL OFFICE BUILDING. PROPERTY RESTRICTED FROM FINANCIAL INSTITUTION USE (BANK, CREDIT UNION, ACCOUNTING, AND OTHER SIMILAR USES). Felder »am: Appraisals, Dubuque, dowa LAND SALE #7 ADDRESS 897 CENTRAL AVENUE, DUBUQUE SALE PRICE $155,000 SALE DATE 10/22/2010 DOCUMENT 10-1 835 6 LEGAL CITY LOTS 257 & 258, DUBUQUE, IA GRANTOR/SELLER ASPERMONT COMPANY GRANTEE/BUYER MOLO OIL COMPANY, MARK MOLO LOT SIZE 10,240 SQUARE FEET ZONING C3 GENERAL COMMERCIAL AT TIME OF SALE, NOW C4 DOWNTOWN COMMERCIAL $ PER SQ.FT. VERIFICATION ASSESSOR COMMENTS Fe:dermae Appraisals, Duluequa, bwa $15.14 PUBLIC RECORDS ASSESSOR & RECORDER, BUYER 10 -24- 481 -003 SALE OF LAND ONLY WITHOUT THE LEASED BUILDING. LOCATION IS IN AREA THAT IS ZONED MOSTLY DOWNTOWN COMMERCIAL USE. LAND SALE # 8 ADDRESS MAPLE AND EAST 16Th STREET, DUBUQUE, IA SALE PRICE $54,159 SALE DATE 12/22/201 0 LEGAL LOTS 285 & 286 IN EAST DUBUQUE ADDITION, DUBUQUE, IOWA DOCUMENT 2012-21 852 SELLER JUNKIE AND RICH'S COIN PARTNERSHIP BUYER ANTHONY ZENNER LOT SIZE 10,300 SQUARE FEET (0. 24ACRES) ZONING HEAVY INDUSTRIAL $ PER SQ.FT $5.26 PER SQUARE FOOT VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER ASSESSORS 10 -24- 289 -010 COMMENTS FORMERLY SITE OF HOUSES DEMOLISHED FOR FUTURE DEVELOPMENT PRIOR TO SALE. Fe:dermae Appraisals, Duluequa, bwa LAND SALE # 9 ADDRESS DIGITAL DRIVE, DUBUQUE, IA SALE PRICE $251,000 SALE DATE 1/7/2011 LEGAL LOT 2 -1 DUBUQUE TECHNOLOGY PARK #3 DOCUMENT 11 -1 296 SELLER CITY OF DUBUQUE BUYER CONLON JOHNSON DEVELOPMENT, LLC LOT SIZE 109,336 SQUARE FEET (2.51 ACRES) ZONING PLANNED INDUSTRIAL $ PER SQ. FT $2.30 PER SQUARE FOOT VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER ASSESSORS 15 -12- 376 -012 COMMENTS LAND IS PART OF CITY DEVELOPED PLANNED INDUSTRIAL PARK. PURCHASED BY ADJOINING (ACROSS THE STREET) OWNER FOR NEW CONSTRUCTION OR PARKING. Fe:dermae Appraisals, Du&qua, bwa LAND SALE # 10 ADDRESS 1550 INNOVATION DRIVE, DUBUQUE, IA SALE PRICE $1,004,280 SALE DATE 3/24/2011 LEGAL LOT 2 DUBUQUE INDUSTRIAL CENTER NORTH 1ST ADD DUBUQUE DOCUMENT 11 -4735 SELLER CITY OF DUBUQUE BUYER FALEY PROPERTIES LOT SIZE 364,554 SQUARE FEET (8.37 ACRES) ZONING PLANNED INDUSTRIAL $ PER SQ.FT $2.75 PER SQUARE FOOT VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER, BUYER ASSESSORS 10 -30- 251 -002 COMMENTS PURCHASED FOR CONSTRUCTION OF NEW INDUSTRIAL BUILDING AND THEN RELOCATION OF EXISTING BUSINESS (IWI AUTO PARTS) FROM WITHIN DUBUQUE. ASSESSED AT $14,180 IN 2011. Felderman Appraisals, Dubuque, Iowa ADDRES S SALE PRICE SALE DATE LEGAL DOCUMENT SELLER BUYER LOT SIZE ZONING $ PER SQ FT VERIFICATION ASSESSORS COMMENTS LAND SALE # 11 375 E. 9111 STREET, DUBUQUE, IA $697,713 4/26/2011 $144,587 1/18/2011 LOT 2 -1 CENTER CIT Y PLACE #3, DUBUQUE, IOWA 11 -6496 ROUSE & DEAN FOUNDRY BLDG LLC CITY OF DUBUQUE 11 -3410 WAREHOUSE REDEVELOPMENT LLC ROUSE & DEAN FOUNDRY BLDG, LLC 76,840 SQUARE FEET (1.76 - ACRES) PLANNED COMMERCIAL 2011, WAS HEAVY INDUSTRIAL PREVIOUSLY $9.08 PER SQUARE FOOT (INCLUDED DEMOLITION COSTS) PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER GRONEN 10 -24- 480 -028 WAREHOUSE DEVELOPMENT LLC HAD A PURCHASE AGREEMENT TO SELL THE PROPERTY TO CITY OF DUBUQUE, SUBJECT TO IMPROVEMENTS BEING DEMOLISHED. THEY SOLD THOSE RIGHTS TO ROUSE AND DEAN FOUNDRY TO COMPLETE THE DEMOLITION. BOTH COMPANIES HAVE SAME INDIVIDUALS INVOLVED (JOHN AND MARY GRONEN). THE SALE IN APRIL TO THE CIT Y WAS SUBJECT TO THE DEMOLITION BEING COMPLETED (WHICH WAS STILL UNDERWAY IN JULY). PARCEL SOLD IN 2006 AS PART OF LARGER PARCEL AND THEN WAS SPLIT INTO LOT 1 AND LOT 2 OF LOT 1 CENTER PLACE #3. APPRAISER PREVIOUSLY APPRAISED THE COMBINED PARCEL FOR PREVIOUS OWNER YEARS BEFORE THE 2006 TRANSACTION. Fe/dermal Appraisals, Dubuque, Iowa LAND SALE # 12 ADDRESS 1451 WHITE STREET, DUBUQUE SALE PRICE $100,000 SALE DATE 5/24/2011 DOCUMENT 11 -7475 LEGAL MIDDLE 1/5 CITY LOT 432, DUBUQUE, IA GRANTOR/SELLER K & L PROPERTIES OF IOWA, LLC GRANTEE/BUYER DUBUQUE BANK AND TRUST COMPANY LOT SIZE 5,120 SQUARE FEET ZONING C4 DOWNTOWN GENERAL COMMERCIAL $ PER SQ.FT. $19.53; PRICE PER STALL $5,555.56 VERIFICATION PUBLIC RECORDS ASSESSOR & RECORDER, SELLER (KLAVITTER) ASSESSOR 10 -24- 408 -013 AT TIME OF SALE, MERGED INTO 10 -24- 408 -020 COMMENTS LAND WITH PARKING SPACES (18) LEASED TO BUYER FOR $18 PER STALL FOR APPROXIMATELY TWO YEARS. BUYER WAS ADJOINING OWNER. ANNUAL INCOME $3,888 FOR GIM OF 25.7 Fe:dermae Appraisals, Duluequa, bwa LAND SALE # 13 ADDRESS BLUFF STREET AT 1ST STREET, DUBUQUE SALE PRICE $70,000 SALE DATE 5/29/2011, CLOSED 6/15/2011 DOCUMENT 11 -8438 LEGAL N. 'h AND S. 1/2 LOT 1 -1 OF CIT Y LOT 600, DUBUQUE GRANTOR/SELLER COTY, MICHAEL J. GRANTEE/BUYER FRANKLIN INVESTMENTS (CARNER, GARY) LOT SIZE 7,425 SQUARE FEET ZONING OR OFFICE RESIDENTIAL DISTRICT $ PER SQ. FT. $9.43 VERIFICATION PUBLIC RECORDS ASSESSOR & RECORDER, BUYER/SELLER ASSESSOR 10 -25- 260 -021 COMMENTS ASSESSORS VALUE $8,900 (2011). LAST VACANT LOT IN OLD MAIN HISTORIC DISTRICT DOWNTOWN. ADJOINING OWNER PURCHASED AS DRIVEWAY TO HIS LARGE PARCEL (PURCHASED OLD SCHOOL IN 2010) AND NEEDS FOR ACCESS WITH HIS FUTURE DEVELOPMENT. PAST SALE WAS 2004 ON LAND CONTRACT (DUGGANTO COTY, 04 -1483, $55,000 OR $7.41 PER SQUARE FOOT). 2011 SALE IS 27% ABOVE 2004 SALE OVER 88 MONTH PERIOD IS 3.7% PER YEAR AVERAGE. SELLER PURCHASE IN 2004 WAS FOR HOLD AND SELL AT PROFIT. Fe:dermae Appraisals, Duluequa, bwa LAND SALE # 14 ADDRESS SALE PRICE SALE DATE DOCUMENT LEGAL SELLER BUYER LOT SIZE ZONING $ PER SQ. FT. VERIFICATION ASSESSOR RADFORD COURT, DUBUQUE $200, 000.00 6/10/2011 11 -8178 LOT 2 BLOCK 11, SUNNYSLOPE ESTATES RADFORD DEVELOPMENT LLC, C/O D. FLINT DRAKE TRI -STATE ISLAMIC CENTER 77,792 SQUARE FEET C2 NEIGHBORHOOD COMMERCIAL $2.57 PUBLIC RECORDS ASSESSOR & RECORDER 10 -20- 406 -036 COMMENTS SALE OF VACANT LAND AT END OF CUL -DE -SAC. PREVIOUS SALE 9/28/2007 FOR $180,000 07- 15756, 10/21/2005 FOR $106,000 05 -17643 & 05- 8595. LEVEL TO ROLLING LOT, ASSESSED AT $165,340 IN 2011 ($162,100 IN 2009/201 0) Felder »am: Appraisals, Dubuque, dowa LAND SALE # 15 ADDRESS 7495 CHAVENELLE ROAD, DUBUQUE, IA SALE PRICE $261,600 SALE DATE 6/30/2011 LEGAL LOT 24 DUBUQUE INDUSTRIAL CENTER WEST 4TH ADD DUBUQUE DOCUMENT 2011 -19776 SELLER CITY OF DUBUQUE BUYER EPIC CONSTRUCTION LOT SIZE 113,692 SQUARE FEET (2.61 ACRES) ZONING PLANNED INDUSTRIAL $ PER SQ. FT $2.30 PER SQUARE FOOT VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER ASSESSORS 10 -30- 301 -010 COMMENTS PURCHASED FOR CONSTRUCTION OF NEW INDUSTRIAL OFFICE BUILDING FOR RELOCATION OF EXISTING BUSINESS FROM WITHIN DUBUQUE. ASSESSED AT $102,840 IN 2011. CONSTRUCTED ONE STORY OFFICE IN 2011 AND SOLD TO WALTER DEVELOPMENT (HODGE) FOR $1,020,976 ($95.42 PER SQUARE FOOT). Feldar »am: Appraisals, Du&qua, bwa ADDRESS SALE PRICE SALE DATE DOCUMENT LEGAL SELLER BUYER LOT SIZE ZONING $ PER SQ. FT. VERIFICATION ASSESSOR LAND SALE # 16 385 BELL STREET, DUBUQUE $325,644 8/3/2011 11 -10871 LOT 1 -1 ADAMS COMPANY'S 4111 ADD (ICE HARB OR "B") CITY OF DUBUQUE FLEXSTEEL INDUSTRIES, INC. 27,138 SQUARE FEET PC PLANNED COMMERCIAL $12.00 PUBLIC RECORDS ASSESSOR & RECORDER 11 -30- 110 -023 COMMENTS SALE OF VACANT LAND NEXT TO CITY PARKING RAMP. AT TIME OF SALE WAS TAX EXEMPT, THOUGH ASSESSED AT $271,380. SALE WAS PUBLISHED IN LOCAL NEWSPAPER AND COUNCIL MINUTES. NO FINANCIAL INCENTIVES IN THE PRICE, BUT REFLECTS BENEFIT TO USE THE PARKING RAMP THAT NEW CORPORATE HEADQUARTERS WILL BE CONSTRUCTED. Felder »am: Appraisals, Dubuque, dowa ADDRES S SALE PRICE $285,000 SALE DATE 9/30/2011 LAND SALE # 17 SAUNA STREET AT CHARTER STREET, DUBUQUE, IOWA $200,000 3/28/2011 LEGAL LOT 24 DUBUQUE INDUSTRIAL CENTER WEST 4111 ADD, DUBUQUE DOCUMENT 2011 -14202 2011 -4952 SELLER PM SALINAS REAL ESTATE LLC OLD HIGHWAY ROAD COMPANY BUYER CW WOLFF LLC PM SALINAS REAL ESTATE LLC LOT SIZE 51,800 SQUARE FEET (1.19 ACRES) ZONING LIGHT INDUSTRIAL $ PER SQ. FT $5.50 PER SQUARE FOOT $3.85 PER SQUARE FOOT LAND VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER MIHALAKIS ASSESSORS 10 -25433 -002 AND 003 COMMENTS PURCHASED BY ADJOINING OWNER IN 3/2011 FOR FUTURE DEVELOPMENT OF HIS COMMERCIAL USES, BUT RESOLD TO ADJOINING INDUSTRIAL USER. WAS FORMER CELOTEX MANUFACTURING AND ALTAR RECYCLE CENTER. Fe:dermae Appraisals, Duluequa, bwa LAND SALE # 18 ADDRESS 1525 INNOVATION DRIVE, DUBUQUE, IA SALE PRICE $2,633,880 SALE DATE 10/25/2011 LEGAL LOT 3 DUBUQUE INDUSTRIAL CENTER NORTH 1ST ADD DUBUQUE DOCUMENT 2011 -15853 SELLER CITY OF DUBUQUE BUYER GREEN INDUSTRIAL PROP LLC LOT SIZE 1,067,481 SQUARE FEET (24.51 ACRES) ZONING PLANNED INDUSTRIAL $ PER SQ. FT $2.75 PER SQUARE FOOT VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER ASSESSORS 10 -30- 176 -005 COMMENTS PURCHASED FOR CONSTRUCTION OF NEW INDUSTRIAL BUILDING THAT INCLUDES RELOCATION OF EXISTING BUSINESS FROM WITHIN DUBUQUE. ASSESSED AT $42,553 IN 2011. Fe:dermae Appraisals, Duluequa, bwa ADDRES S SALE PRICE LAND SALE # 19 2126 HOLLIDAY DRIVE AT PAYTON DRIVE, DUBUQUE, IOWA $908,000 SALE DATE 5/31/2012 DOCUMENT 2012 -9169 LEGAL LOT 3 HOLLIDAY ADDITION AND LOT 1 HOLLIDAY 3RD ADDITION, DUBUQUE, IOWA SELLER GOMER HOLLIDAY DEVELOPMENT, LLC BUYER GREEN ACRES STORAGE, LLC LOT SIZE 75,184 SQUARE FEET ZONING C3 GENERAL COMMERCIAL DISTRICT (WIRESTRICTIONS) $ PER SQ. FT. $12.08 VERIFICATION PUBLIC RECORDS ASSESSOR & RECORDER, SELLER (SMITH) ASSESSORS 10 -20- 227 -005 COMMENTS ASSESSED $663,420 FOR 2011 AND $574,610 FOR 2012. BUYER PLANS TO BUILD THREE -LEVEL SELF - STORAGE UNIT FACILITY. SITE IS AT RIGHT TURN IN RIGHT TURN OUT ALONG THE NORTHWEST ARTERIAL. Fe/dermal Appraisals, Dubuque, Iowa ADDRES S SALE PRICE SALE DATE DOCUMENT LEGAL SELLER BUYER LOT SIZE ZONING $ PER SQ. FT. VERIFICATION ASSESSORS LAND SALE # 20 2065 HOLLIDAY DRIVE, DUBUQUE, IOWA $435,610 6/21/2012 2012 -10763 LOT 1 -6 OF 3RD ADDITION, DUBUQUE, IOWA WBBW HOLLIDAY DEVELOPMENT LLC SJCG PROPERTIES, LLC 43,560 SQUARE FEET C3 GENERAL COMMERCIAL DISTRICT (WIRESTRICTIONS) $10.00 PUBLIC RECORDS ASSESSOR & RECORDER 10 -20- 279 -011 COMMENTS ASSESSED $45,900 FOR 2012 AND PART OF LARGER PARCEL IN 2011. BUYER PLANS TO BUILDING OFFICE (SEDONA STAFFING). SITE IS ACROSS FROM FAST FOOD RESTAURANT AND NEXT TO RETAIL AND BANK USES. VISIBILITY FROM THE NORTHWEST ARTERIAL BUT ACCESS IS FRONTAGE ROAD. Fe:dermae Appraisals, Duluequa, bwa LAND SALE # 21 ADDRESS 506 E. 16Th STREET, DUBUQUE, IA SALE PRICE $300,000 SALE DATE 6/29/2012 DOCUMENT # 2012-11 234 GRANTOR/SELLER W P INVESTMENTS, LLC GRANTEE/BUYER CITY OF DUBUQUE LOT SIZE 13,360 SQUARE FEET (0.3067- ACRES) ZONING HEAVY INDUSTRIAL $ PER SQ FT $2146 PER SQUARE FOOT OF LAND VERIFICATION PUBLIC RECORDS, BUYER ASSESSORS 1024284015 COMMENTS ASSESSED VALUE OF $166,160 FOR 2012; PURCHASED BY CITY AS PART OF FEDERAL PROJECT T O RELOCATE AND EXPAND THE BEE BRANCH WATERSHED PROJECT. PRICE APPEARS WELL ABOVE TYPICAL MARKET VALUES, FOR BUILDING AND FOR LAND. Fe:dermae Appraisals, Duluequa, bwa ADDRESS SALE PRICE SALE DATE LAND SALE # 22 1590 INNOVATION DRIVE, DUBUQUE, IA $1,488,000 7/13/2012 (RECORDED 1/9/2013) LEGAL LOT 1 DUBUQUE INDUSTRIAL CENTER NORTH SECOND ADDITION LOCATED IN DUBT6 DOCUMENT 2012-13 067 SELLER CITY OF DUBUQUE BUYER 2013 DUBUQUE LLC LOT SIZE 540,144 SQUARE FEET (12.4 ACRES) ZONING PLANNED INDUSTRIAL $ PER SQ. FT $2.75 PER SQUARE FOOT VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER ASSESSORS 10 -30- 201 -005 COMMENTS PURCHASED FOR CONSTRUCTION OF NEW INDUSTRIAL FEDEX DISTRIBUTION BUILDING THAT INCLUDES RELOCATION OF EXISTING BUSINESS FROM WITHIN DUBUQUE. LAND NOT ASSESSED TIME OF SALE, $806,000 IN 2013. Felder »am: Appraisals, Dubuque, dowa LAND SALE # 23 ADDRESS 2225 KERPER BLVD (BACK LOT), DUBUQUE, IA SALE PRICE $22,812 SALE DATE 9/28/2012 LEGAL LOT 2 GIESE SUB. DOCUMENT 2012 -18681 SELLER CRDS DEVELOPMENT BUYER GIESE COLLP LOT SIZE 9,505 SQUARE FEET (0.22 ACRES) ZONING HEAVY INDUSTRIAL $ PER SQ. FT $2.40 PER SQUARE FOOT VERIFICATION PUBLIC RECORDS, ASSESSOR AND RECORDER, BUYER ASSESSORS 11 -18- 313 -004 COMMENTS PURCHASED BY ADJOINING OWNER THAT WAS USING FOR OUTDOOR STORAGE. PREVIOUSLY SOLD IN 2011 WITH 2225 KERPER BLVD BUILDING. APPRAISER FELDERMAN WAS INVOLVED IN THE SALE. Fed derman Appraisals, Dubuque, Iowa PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 1 COMMERCIAL SERVICE 3191 CEDAR CROSS CT, DUBUQUE, IOWA 52003 DUBUQUE $190,000 8/5/2011 2012 -11234 BEINING, JAMES LLOYD ZENNER, ANTHONY C. 6,250 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT, 12' CEILING 1979 STEEL FRAME, METAL SIDING AND ROOF, INSULATED MINIMAL, 2500 SQ. FT. OFFICE HVAC, 3 OVERHEAD DOORS 16,000 SQUARE FEET 2.56 TO 1 (MAIN LEVEL) PAVED CONCRETE APPROXIMATELY 3,840 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN CS COMMERCIAL SERVICE SHOP AND SALES MINIMAL, NOT COUNTED, BUT JUST OFF CEDAR CROSS ROAD WITH 9,000 TO 10,500 DAILY USING MOST CURRENT COUNTS $30.40 OWNER BUSINESS OCCUPIED N/A PUBLIC RECORDS 10 -34- 176 -004, $198,500 (2010), $7060 (2010) PURCHASED FOR OWNER OCCUPIED BUSINESS USE. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR/ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 2 COMMERCIAL SERVICE 1074 CEDAR CROSS ROAD, DUBUQUE, IOWA 52003 DUBUQUE $547,500 (LEASED FEE INTEREST) 4/12/2013 CLOSED, SOLD 2/28/13 (21 DAYS ON MARKET) 2013 -6446, DMLS 122876 DOWNING RENTALS LLC DEAN RYAN INVESTMENTS, LLC 8,400 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT, 14'+ CEILING 2008 WOOD FRAME, METAL AND PERMA -STONE SIDING AND ROOF, INSULATED MINIMAL SQ. FT. OFFICE, RESTROOMS HVAC 100 %, LOAD DOCK, THREE OVERHEAD DOORS 28,314 SQUARE FEET 3.37 TO 1 (MAIN LEVEL) PAVED CONCRETE, APPROXIMATELY 9,885 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN CS COMMERCIAL SERVICE TENANT IN 6,300 SQ.FT. AT $4,600 PER MONTH, 6 YEARS 9,000 TO 10,500 DAILY USING MOST CURRENT COUNTS $65.18 9.6% ($52,578 NET, OWNER PAID TAXES, INSURANCE) FASTENAL, WITH 2,100 SQ.FT. AVAILABLE AT $1,000 PER MONTH PUBLIC RECORDS, BROKER 10 -34- 251 -025, $389,900 (2012), $13,824 (2011) PURCHASED FOR INVESTMENT. ORIGINALLY LISTED FOR $579,000 OR 95% SALE OF LIST PRICE. TENANT HAD 6 YEARS REMAINING ON LEASE. SIMILAR TO MAJORITY OF BUILDINGS IN THE IMMEDIATE AREA. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT EXTERIOR FINISH /CONDITION MECHANICALS LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 3 COMMERCIAL 1665 EMBASSY WEST, DUBUQUE, IOWA 52002 $1,399,000 10/30/2009 0920126 WOLFF, LARRY FINLEY HOSPITAL 14,210 SQUARE FOOT TWO LEVELS, BOTH WITH WALKOUT TO PARKING 1995 BRICK ON FRAME, ASPHALT SHINGLE ROOF 100% OFFICE, AVERAGE CONDITION HVAC 100 %, SPRINKLERS, NO ELEVATOR 77,101 SQUARE FEET 5.43 TO 1 LAND TO BUILDING RATIO PC PLANNED COMMERCIAL OFFICES MINIMAL ALONG STREET, NOT COUNTED, BUT JUST OFF PENNSYLVANIA AVENUE WITH 9,000 TO 10,500 DAILY USING MOST CURRENT COUNTS $98.45 9.17% (BASED ON $128,288 NET INCOME) OWNER (WOLFF), APPRAISER, PUBLIC RECORDS, ASSESSOR & RECORDER 1029227001 ASSESSED VALUE IN 2009 WAS $987,400. APPROXIMATELY 24,400 SQUARE FEET OF PARKING SPACE, SOLD ON CONTRACT WITH $5,000 DOWN, PAYMENT 1/4/2010 OF $345,000, BALANCE PAID MONTHLY AT $20,286.55 (BASED ON 5.5% INTEREST) UNTIL 1/1/2015. BUILDING SALE # 4 PROPERTY TYPE COMMERCIAL ADDRESS 3390 ASBURY ROAD, DUBUQUE, IOWA SALE PRICE $675,000 SALE DATE 5/5/2010 DOCUMENT # 10 -6287 GRANTOR/SELLER WILLIAM HEITZMAN GRANTEE /BUYER LAW BUILDING COMPANY GROSS BLDG. SIZE 7,680 SQUARE FOOT # OF STORIES TWO LEVELS, EACH WALKOUT ACCESS TO PARKING DATE BUILT 1978 FINISH /CONDITION BRICK EXTERIOR, FLAT RUBBER MEMBRANE ROOF MECHANICALS NO SPRINKLER SYSTEM LOT SIZE 40,635 SQUARE FEET LAND TO BUILDING: 5.29 TO 1 LAND TO BUILDING RATIO ZONING OS OFFICE SERVICE USE AT SALE OFFICES TRAFFIC COUNTS 9,000 TO 10,500 DAILY USING MOST CURRENT COUNTS $ PER SQUARE FOOT $87.84 O. A. R. 6.9% (BASED ON $46,575 NET INCOME) VERIFIED APPRAISER (HOWE), PUBLIC RECORDS, ASSESSOR & RECORDER ASSESSOR # 10 -21 -227 -023 COMMENTS Felderman Appraisals, Dubuque, Iowa ASSESSED VALUE IN 2010 WAS $459,100. APPROXIMATELY 10,900 SQUARE FEET OF PARKING SPACE PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 5 COMMERCIAL 3355 KENNEDY CIRCLE, DUBUQUE, IOWA $3,399,999 5/25/2010 2010 -7963 AND 7962 G AND A LLC, AND WCM LLC AREA RESIDENTIAL CARE 65,987 SQUARE FOOT ONE STORY NO BASEMENT 1985 VACANT AT TIME OF SALE, BELOW AVERAGE OVERALL CONDITION, WAS CONVERTED INTO OFFICE AND DEVELOPMENT CLASSROOMS, FLAT RUBBER MEMBRANE ROOF HVAC 100 %, NO SPRINKLER SYSTEM 196,984 SQUARE FEET 2.99 TO 1 LAND TO BUILDING RATIO C3 GENERAL COMMERCIAL VACANT GROCERY STORE MINIMAL ALONG STREET, NOT COUNTED, BUT JUST OFF KENNEDY ROAD WITH 9,000 TO 25,000 DAILY USING MOST CURRENT COUNTS $51.53 VACANT PUBLIC RECORDS, ASSESSOR & RECORDER, BUYER 10 -21- 427 -007 ASSESSED VALUE $2,772,500. APPROXIMATELY 155,400 SQUARE FEET OF PARKING SPACE. SOLD AT 41.3043% ($1,404,346; WCM LLC) AND 58.6957% ($1,995,653, G &A LLC) FOR THE COMBINED SALE PRICE. BUYER CONVERTED BUILDING TO RESIDENTIAL CARE HEADQUARTERS WITH OFFICES, WORK SHOPS AND CARE FACILITIES. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER O. A. R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 6 COMMERCIAL 299 MAIN STREET, DUBUQUE, IOWA $1,731,648 6/30/2010 10 -9411 DUBUQUE BANK AND TRUST FOR COOPER DEVELOPMENT COMPANY LLC 73 CHS FORWARDS, LLC (MARK KLUESNER) 26,996 SQUARE FOOT FOUR ABOVE GROUND LEVELS, FULL BASEMENT THAT IS PART FINISHED (7,296 SQ. FT) 1900 7,296 SQUARE FEET 1.05 TO 1 LAND TO BUILDING RATIO C4 DOWNTOWN GENERAL COMMERCIAL RETAIL (33,500 SQUARE FEET) ON MAIN, BASEMENT AND 2ND, WITH OPEN FINISH 3RD AND 4TH MINIMAL ALONG STREET, NOT COUNTED, BUT JUST OFF LOCUST STREET WITH 4,000 TO 6,000 DAILY AND CENTRAL AVENUE WITH 6,000 TO 14,000 DAILY USING MOST CURRENT COUNTS $64.15 OWNER OCCUPIED RESTAURANT /BAR, FORECLOSURE PUBLIC RECORDS, ASSESSOR & RECORDER; BUYER 10 -25- 276 -007 ASSESSED VALUE TIME OF SALE $852,900 (SALE WAS 203% OF ASSESSED VALUE). INSPECTED MAIN, BASEMENT AND 2ND FLOOR AS CUSTOMER IN 2010. LISTED FOR $2,500,000 AT TIME OF FORECLOSURE (DMLS 115167, 217 DAYS). PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 7 COMMERCIAL 1800 ELM STREET, DUBUQUE, IOWA $1,200,000 CONVENTIONAL LOAN WITH 50% DOWN 5/24/2011 11 -9010 JACOBSON'S INC. (JOHN SHULAN) PTC LLC (PETER T. CLARKE) 26,902 SQUARE FOOT ONE STORY, BLOCK 1955, UPDATED 1986 20,000 SQUARE FEET OF FINISH SHOWROOM AREA, FLAT RUBBER MEMBRANE ROOF, AVERAGE CONDITION HVAC 100% 78,100 SQUARE FEET 2.9 TO 1 C2 NEIGHBORHOOD COMMERCIAL DISTRICT GROCERY STORE APPROXIMATELY 3,000 TO 7,500 DAILY USING MOST CURRENT COUNTS $44.61 CONFIDENTIAL PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER ASSESSOR 10 -24- 277 -001, 001 AND 003 ($983,900 ASSESSED VALUE 2011). ONE OVERHEAD DOOR, TWO CANOPIES, APPROXIMATELY 40,000 SQUARE FEET OF PAVING, LONG -TERM TENANT BUT LEASE INFO NOT SHARED. CITY HAD EASEMENT FOR OWNER USE OF LOADING DOCK AND GAS METER. FELDERMAN APPRAISED PREVIOUSLY. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 8 COMMERCIAL 3049 ASBURY ROAD, DUBUQUE, IOWA $600,000 6/30/2011 11 -9327 HEINZ HOLDINGS LLC LYNN SIEGERT BUILDING LLC 10,433 SQUARE FOOT ONE STORY, BLOCK 1969 APPROXIMATELY 25% RETAIL SPACE, REMAINDER USED FOR MAKING OF CANDY AND ICE CREAM AND DISTRIBUTION LOADING DOCK, FRONT PATIO, HVAC 100 %, SPRINKLER SYSTEM ENTIRE BUILDING 37,462 SQUARE FEET 3.59 TO 1 C2 NEIGHBORHOOD COMMERCIAL DISTRICT CANDY AND ICE CREAM RETAIL STORE 9,000 TO 10,500 DAILY USING MOST CURRENT COUNTS $57.51 N/A PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER ASSESSOR 10 -22- 180 -001, 2011 ASSESSED VALUES $558,240. APPROXIMATELY 10,000 SQUARE FEET OF ASPHALT PARKING. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 9 COMMERCIAL 345 E. 20TH STREET, DUBUQUE, IOWA $4,620,000 8/1/2011 11 -11750 E20 WD LLC COLE WG DUBUQUE IA LLC 13,936 SQUARE FOOT ONE STORY, BLOCK /BRICK 2008 RETAIL SHOWROOM DISPLAY, BANK WINDOW DRIVE UP, ABOVE AVERAGE HVAC 100 %, SPRINKLER SYSTEM 100% 49,984 SQUARE FEET 3.59 TO 1 C2 NEIGHBORHOOD COMMERCIAL DISTRICT WALGREENS DRUG STORE 6,000 ALONG 20TH AND 7,500 ALONG ELM STREET DAILY USING MOST CURRENT COUNTS $331.52 PART OF LARGE CORPORATION PURCHASE PUBLIC RECORDS, ASSESSOR AND RECORDER ASSESSOR 10 -24- 215 -028, ASSESSED $1,119,100. 27,170 SQUARE FEET OF PAVING, YARD LIGHTS AND LANDSCAPING. SOLD WITH LIMITED WARRANTY DEED, DETERMINED BY ASSESSOR TO BE ARMS LENGTH TRANSACTION, WITH WALGREENS LEASE DATED 29 OCTOBER 2007 IN EFFECT FOR THE PURCHASER. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 10 COMMERCIAL 356 MAIN STREET, DUBUQUE, IOWA $500,000 8/2/2011 11- 10901, CONTRACT ONE MONTH UNTIL FINANCED GARD, GUY AND KELLY BONSON BLOCK LLC, JAMES HOBART 14,577 SQUARE FOOT THREE ABOVE GROUND LEVELS, FULL BASEMENT AND PARTIAL SUB - BASEMENT 1900 4,859 SQUARE FEET 1 TO 1 LAND TO BUILDING RATIO C4 DOWNTOWN GENERAL COMMERCIAL RETAIL ON MAIN AND 2ND, VACANT AND UNFINISHED 3RD, UNFINISHED LOWER LEVELS, WITH FREIGHT ELEVATOR (4- STOP). MINIMAL ALONG STREET, NOT COUNTED, BUT JUST OFF LOCUST STREET WITH 4,000 TO 6,000 DAILY AND CENTRAL AVENUE WITH 6,000 TO 14,000 DAILY USING MOST CURRENT COUNTS $34.30 OCCUPIED BY OWNERS BUSINESS AT TIME OF SALE, BUT NOT ACTIVELY USE; MLS 118424, 2375 DAYS ON MARKET CUMULATIVE PUBLIC RECORDS, ASSESSOR & RECORDER; SELLER 10 -25- 241 -004 ASSESSED VALUE TIME OF SALE $265,610 (SALE WAS 188% OF ASSESSED VALUE). INSPECTED AS LISTING BROKER, SOLD TO RESERVE PROSPECT WITHOUT REALTOR COMMISSION. PREVIOUS FIRE NEXT DOOR AND PARKING RAMP AT REAR HAD CAUSED STRUCTURAL CRACKS BUT NO EXTENDED DAMAGE. EXTERIOR RENOVATED IN 1990'S, PURCHASER RENOVATED WITH TWO COMMERCIAL ON MAIN, SIX APARTMENTS ON UPPER AND STORAGE ON LOWER. BASEMENT HAD GARAGE DOOR ACCESS TO ALLEY. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 11 COMMERCIAL 253 MAIN STREET, DUBUQUE, IOWA $245,000 8/31/2011 11 -12351 MIHALAKIS, LOUIS AND MARGARET OBERBROECKLING, KENNETH 8,550 SQUARE FOOT THREE ABOVE GROUND LEVELS, FULL BASEMENT 1900 MAIN FLOOR RETAIL, UPPER LEVELS BELOW AVERAGE FINISH AND CONDITION APARTMENTS HVAC 100% MAIN, UNIT AC UPPER LEVELS 2,850 SQUARE FEET 1 TO 1 LAND TO BUILDING RATIO C4 DOWNTOWN GENERAL COMMERCIAL RETAIL ON MAIN, UNFINISHED LOWER, APARTMENTS ON UPPER (2ND FLOOR HABITABLE, 3RD FLOOR NOT HABITABLE) MINIMAL ALONG STREET, NOT COUNTED, BUT JUST OFF LOCUST STREET WITH 4,000 TO 6,000 DAILY AND CENTRAL AVENUE WITH 6,000 TO 14,000 DAILY USING MOST CURRENT COUNTS $28.65 TENANT WAS BAR, $3,000 MONTH GROSS, NET INCOME OF $32,500 TIME OF SALE 13.3% CAP RATE PUBLIC RECORDS, ASSESSOR & RECORDER; SELLER 10 -25- 276 -009 ASSESSED VALUE TIME OF SALE $204,000 (SALE WAS 120% OF ASSESSED VALUE). INSPECTED AS LISTING BROKERAGE, LEASE BEGAN 5/2011 FOR ONE YEAR AND THEN RENEGOTIATE WITH PURCHASER. PRIOR SALE ON 5/29/2003 WAS FOR $180,000. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICAL LOT SIZE LAND /BLDG. RATIO ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 12 COMMERCIAL 2254 FLINT HILL DRIVE, DUBUQUE, IOWA $281,000 9/22/2011 11 -13968 BIG RIVER INC. KEY WEST HOLDINGS LLC 3,106 SQUARE FOOT ONE STORY, BRICK 1997 MAIN FLOOR OFFICE, AVERAGE CONDITION HVAC 100 %, SHARED RESTROOMS, NO SPRINKLERS 22,651 SQUARE FEET 7.3 TO 1 C3 GENERAL COMMERCIAL OFFICE, RETAIL ALLOWED MINIMAL ALONG STREET, NOT COUNTED, BUT JUST OFF HIGHWAY 61/151/52 WITH 15,000 TO 20,000 DAILY USING MOST CURRENT COUNTS $90.47 8.7% PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER/BUYER ASSESSOR 15 -01- 451 -003 ($292,530 ASSESSED VALUE 2011). ONLY 1/3 OCCUPIED, RENTED AT $10 PER SQUARE FOOT NET, AND THEY WERE THE PURCHASERS. OTHER SPACE HAD BEEN VACANT FOR A YEAR AND WAS ASKING $9 PER SQUARE FOOT, WITH OFFERS OF $8 PER SQUARE FOOT OR TO PURCHASE, WHICH GENERATED THE TENANTS FIRST RIGHT OF REFUSAL TO PURCHASE. EXPENSES ESTIMATED. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 13 COMMERCIAL 345 MAIN STREET, DUBUQUE, IOWA $260,000 11/10/2011 11 -17146 LEIBCUL INC. (TROY LEIBOLD) BOGLER, JEFFREY AND DRISCOLL, MICHELLE $200,000 6/23/2010 10 -9024 EAST DUBUQUE SAVINGS BANK LEIBCUL, INC. 4,256 SQUARE FOOT THREE ABOVE GROUND LEVELS, FULL BASEMENT 1900 RETAIL, APARTMENTS UPPER, ABOVE AVERAGE OVERALL CONDITION, SLOPING ROOF RUBBER MEMBRANE HVAC 100% MAIN, UPPER LEVELS AC UNITS, NO SPRINKLER SYSTEM 2,165 SQUARE FEET 1.3 TO 1 LAND TO BUILDING RATIO C4 DOWNTOWN GENERAL COMMERCIAL RETAIL ON MAIN, WITH APARTMENTS ON 2ND & 3RD MINIMAL ALONG STREET, NOT COUNTED, BUT JUST OFF LOCUST STREET WITH 4,000 TO 6,000 DAILY AND CENTRAL AVENUE WITH 6,000 TO 14,000 DAILY USING MOST CURRENT COUNTS $61.09 (2011), $46.99 (2010) $2,250 MONTHLY GROSS RENT (9.63 GIM) PUBLIC RECORDS, ASSESSOR & RECORDER; BROKER 10 -25- 240 -009 ASSESSED VALUE TIME OF SALE $139,740(SALE WAS 186% OF ASSESSED VALUE). INSPECTED MAIN FLOOR AS CUSTOMER IN 2011. 2009 SALE WAS FORECLOSURE FROM KENNETH AND CHARLOTTE HAYES TO EAST DUBUQUE SAVINGS BANK ($150,000) AFTER 5/31/2005 SALE OF $239,900. LISTED 117845 FOR $275,500, 279 DAYS ON THE MARKET, BROKER COMMENTS NEW ROOF 2010. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 14 COMMERCIAL 2175 HOLLIDAY DRIVE, DUBUQUE, IOWA $1,150,000 3/6/2012 12 -3939 $800,000 6/17/2011 11 -8561 $1,680,000 12/27/2006 06 -19818 A. J. SPIEGEL UNITED RENTAL A. J. SPIEGEL KRESS PROPERTY A. J. SPIEGEL UNITED RENTALS 12,284 SQUARE FOOT ONE STORY NO BASEMENT 2002 CONCRETE TILT -UP WALLS, FLAT ROOF, SMALL RETAIL AND OFFICE AREA APPROXIMATELY 25 %, FOUR DRIVE IN VEHICLE DOORS. HVAC 100% RETAIL, HEATED SHOP AREA 152,896 SQUARE FEET 12.5 TO 1 LAND TO BUILDING RATIO COMMERCIAL RENTAL EQUIPMENT (2006), VACANT 2011/2012 MINIMAL ALONG STREET, NOT COUNTED, BUT JUST OFF THE NORTHWEST ARTERIAL WITH 20,000 TO 24,000 DAILY USING MOST CURRENT COUNTS $93.62 $65.13 $136.76 VACANT (2012) VACANT (2011) 6.7% (2006) PUBLIC RECORDS, ASSESSOR & RECORDER SELLER (06), BUYER (11), SELLER (12) 10 -20- 226 -018 CONCRETE PAVED PARKING AREA OF APPROXIMATELY 15,540 SQUARE FEET, FENCED AREA, LOT LIGHTING, ORIGINAL CONSTRUCTION IN 2002 WAS $1,730,022. NNN LEASE OF $9.20 PER SQUARE FOOT IN 2006. VARIANCE TO ZONING IN 2012 FOR INDUSTRIAL TYPE USE. NO WORK DONE TO BUILDING BETWEEN 2011 AND 2012 SALE. FELDERMAN PREVIOUSLY APPRAISED. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 15 COMMERCIAL 2775 UNIVERSITY AVENUE, DUBUQUE, IOWA $405,000 5/31/2012 12 -9164 DMLS 117575 MID - CONTINENT BOTTLERS, INC. FREEDOM GROUP LLC. 21,694 SQUARE FOOT ONE STORY NO BASEMENT, 2,000 SQ.FT. OFFICE AREA 1962, 1974 BRICK, BLOCK AND METAL SIDING, SMALL OFFICE AREA (LESS THAN 10 %), BELOW AVERAGE HVAC FRONT OFFICE AREA, 2 OVERHEAD DOORS AND 1 TRUCK DOCK, METAL AND RUBBER ROOF, 3 PHASE 200 AMPERE ELECTRICAL, 65,305 SQUARE FEET 3 TO 1 LAND TO BUILDING RATIO COMMERCIAL, C3 DISTRIBUTION AND WAREHOUSE, VACANT AT SALE 3,000 TO 10,000 DAILY USING MOST CURRENT COUNTS $18.67 OWNER BUSINESS OCCUPIED PUBLIC RECORDS, ASSESSOR & RECORDER, BROKER 10 -27- 254 -002, $466,240 (2011), $16,818 (2011) ORIGINAL LIST PRICE $850,000, 476 DAYS ON MARKET, MOSTLY A GRAVEL PARKING LOT WITH 2,800 SQ.FT. ASPHALT PAVED, AND SOLD AS IS (POOR CONDITION). PURCHASER HAS GRADED SITE, GUTTED THE INTERIOR AND WORKING ON RENOVATION. CONSTRUCTION IS MORE WAREHOUSE OR COMMERCIAL SERVICE THAN COMMERCIAL. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 16 COMMERCIAL 331 W. 4TH STREET, DUBUQUE, IOWA $375,000 8/31/2012 12- 153778 WALLIS, JANE C (F /K /A JANE WALLIS PRICE ETAL) BERGMANN, MICHAEL AND SALLY 7,581 SQUARE FOOT (MAIN OF 2,919 SQUARE FEET) THREE & TWO ABOVE GROUND LEVELS, FULL BASEMENT 1860 100% FINISHED FOR RETAIL AND RESIDENTIAL USE, USED FOR SHOWROOM ON MAIN AND LOWER HVAC 100% 7,296 SQUARE FEET 2.5 TO 1 LAND TO BUILDING RATIO (PAVED LOT 3,420 SQUARE FEET) OC OFFICE COMMERCIAL RETAIL STORE MAIN, APARTMENTS UP 3,000 TO 6,000 DAILY USING MOST CURRENT COUNTS $49.47 N/A PUBLIC RECORDS, ASSESSOR & RECORDER; SELLER 10 -25 -241 -005 ASSESSED VALUE TIME OF SALE $224,910 (SALE WAS 167% OF ASSESSED VALUE). INSPECTED AS CUSTOMER IN 2011. NO REALTOR INVOLVED WITH SALE. PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 17 COMMERCIAL 401 CENTRAL AVENUE, DUBUQUE, IOWA $415,000 12/14/2012 12 -23462 KLAUER, ROBERT AND LIVIJA SALIU, ZEMRIJA (AKA ZORO) 8,424 SQUARE FOOT TWO ABOVE GROUND LEVELS, FULL BASEMENT 1920 MAIN FLOOR RESTAURANT, UPPER LEVEL MINIMAL FINISH AND LOWER LEVEL UNFINISHED, BELOW AVERAGE CONDITION OVERALL HVAC 100% MAIN LEVEL 8,511 SQUARE FEET 2 TO 1 LAND TO BUILDING RATIO C4 DOWNTOWN GENERAL COMMERCIAL RESTAURANT ON MAIN, UNFINISHED LOWER, FINISHED BUT OUTDATED AND UNUSED UPPER LEVEL 6,000 TO 14,000 DAILY USING MOST CURRENT COUNTS $49.26 TENANT RENTED $4,000 PER MONTH (8.65 GIM) PUBLIC RECORDS, ASSESSOR & RECORDER; SELLER 10 -25 -237 -012 ASSESSED VALUE TIME OF SALE $232,710 (SALE WAS 178% OF ASSESSED VALUE). INSPECTED AS CUSTOMER AND BROKER YEARS EARLIER. NO REALTOR INVOLVED WITH SALE. SOLD BASED ON POTENTIAL AND TRAFFIC COUNT PROPERTY TYPE ADDRESS SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES DATE BUILT FINISH /CONDITION MECHANICALS LOT SIZE LAND TO BUILDING: ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 18 COMMERCIAL 342 MAIN STREET, DUBUQUE, IOWA $640,000 12/31/2012 13 -869 GERMAN BANK BUILDING LLP (JOHN GRONEN) JAMES MADISON LLC (MARK KLUESNER) 6,240 SQUARE FOOT (3 -STORY OF 1,680 SQUARE FEET, AND 1 -STORY IS 1,200 SQUARE FEET) THREE ABOVE GROUND LEVELS, FULL BASEMENT 1900 MAIN FLOOR AND LOWER RETAIL RESTAURANT, UPPER LEVEL APARTMENTS, GOOD TO EXCELLENT OVERALL CONDITION HVAC 100 %, BANK VAULT 3,390 SQUARE FEET 1.18 TO 1 LAND TO BUILDING RATIO C4 DOWNTOWN GENERAL COMMERCIAL RESTAURANT ON MAIN AND LOWER, APARTMENTS UP MINIMAL ALONG STREET, NOT COUNTED, BUT JUST OFF LOCUST STREET WITH 4,000 TO 6,000 DAILY AND CENTRAL AVENUE WITH 6,000 TO 14,000 DAILY USING MOST CURRENT COUNTS $102.56 TENANT RENTING THE RESTAURANT VACATED LEASE PUBLIC RECORDS, ASSESSOR & RECORDER; SELLER 10 -25- 241 -005 ASSESSED VALUE TIME OF SALE $392,670 (SALE WAS 163% OF ASSESSED VALUE). FELDERMAN INSPECTED AS CUSTOMER IN 2012 AND PREVIOUS APPRAISAL 2002 AFTER FIRE AND BEFORE RENOVATION. NO REALTOR INVOLVED WITH SALE. BAR WAS ATTACHED AND BUILT -IN, BUT ALL BUSINESS EQUIPMENT SOLD SEPARATELY. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 19 COMMERCIAL 1095 CEDAR CROSS ROAD, DUBUQUE, IOWA 52003 DUBUQUE $533,000 4/2/2013 CLOSED, SOLD 3/19/2013 (928 DAYS ON MARKET) 2013 -5768, DMLS 117161 (LISTED $799,000 ORIGINALLY) PAR FIVE CLARKE UNIVERSITY OF DUBUQUE INC. 14,400 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT, 18'+ CEILING 1995 STEEL FRAME, METAL SIDING AND ROOF, INSULATED MINIMAL OFFICE 1400 SQUARE FEET, WAS SPORTS CENTER MINIMAL INTERIOR FINISH, BELOW AVERAGE HVAC 100% 105,851 SQUARE FEET 7.35 TO 1 (MAIN LEVEL) PAVED ASPHALT, APPROXIMATELY 20,640 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN C3 COMMERCIAL VACANT 9,000 TO 10,500 DAILY USING CURRENT COUNTS $37.01 VACANT SEVERAL YEARS N/A PUBLIC RECORDS 10 -34- 401 -004, $537,570 (2012), $24,984 (2011) PURCHASED FOR OWNER OCCUPIED BUSINESS USE. ORIGINALLY LISTED FOR $799,000 WITH FINAL LIST PRICE AT $619,000 OR 86% SALE OF LIST PRICE. CONSTRUCTION MORE CONDUCIVE TO COMMERCIAL SERVICE USES AND IS SIMILAR TO MAJORITY OF BUILDINGS IN THE IMMEDIATE AREA. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 20 INDUSTRIAL 2530 KERPER BLVD, DUBUQUE, IOWA 52001 DUBUQUE $560,000 2/12/2010 2010 -3349 JMTG PROPERTIES LLC THE CREATIVE PIONEER LLC 22,323 SQUARE FOOT (15,423 SQ. FT. MAIN) TWO (2) STORY, WITH NO BASEMENT 1975 STEEL FRAME, GABLE ROOF, 16' HEIGHT OFFICE 30 %, 7,000 SQ. FT., AVERAGE CONDITION HVAC FOR OFFICE, SPACE HEATER FOR WAREHOUSES, THREE OVERHEAD DOORS, INSULATED 43,560 SQUARE FEET 2.82 TO 1 (BASED ON MAIN FLOOR) PAVED ASPHALT 20,000 SQUARE FEET ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN HEAVY INDUSTRIAL DISTRICT SHOP AND WAREHOUSE 3,000 TO 11,000 DAILY USING CURRENT COUNTS $24.97 VACANT ASKING $4 PER SQUARE FOOT FOR SHOP, $8 FOR OFFICE PUBLIC RECORDS 11 -18- 209 -002, $800,000 LISTED 9/2008 FOR $800,000 FOR 534 DAYS. INDICATED 16' CEILINGS, 7,000 SQUARE FOOT OFFICE AND RENT ASKING OF $8 PER SQUARE FOOT FOR OFFICES AND $4 PER SQUARE FOOT FOR SHOP AREA. BUILDING HAS 15,423 SQUARE FEET ON MAIN AND TOTAL OF 22,423 SQUARE FEET, WITH THREE OVERHEAD DOORS, AND APPROXIMATELY 20,000 SQUARE FEET OF PAVED PARKING AREA. PREVIOUS SALE 11/2004 FOR $730,000 PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. CLOSE 2008 TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 21 INDUSTRIAL 2555 KERPER BLVD, DUBUQUE, IOWA 52001 DUBUQUE $1,550,000 12/14/2010 2010 -21647 BARNS TEAD THERMOLYNE CORPORATION SGW KERPER DEVELOPMENT LLC (SMITH, BRIGGS) 173,828 SQUARE FOOT IN FOUR ATTACHED BUILDINGS ONE (1) STORY, WITH NO BASEMENT 1963, 1966, 1982, 1996 STEEL FRAME, GABLE ROOF, 14' TO 22' HEIGHT OFFICE 15,060 SQ. FT. 9 %, BELOW AVERAGE CONDITION HVAC FOR OFFICE, SPACE HEATER FOR WAREHOUSES, EIGHT OVERHEAD DOORS AND DOCKS, SPRINKLER SYSTEM 438,717 SQUARE FEET 2.52 TO 1 PAVED ASPHALT, 130,800 SQUARE FEET ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN HEAVY INDUSTRIAL DISTRICT MANUFACTURING WAREHOUSE 3,000 TO 11,000 DAILY USING CURRENT COUNTS $8.92 VACANT SINCE 2009, OWNER OCCUPIED PRIOR TO NONE BUYER, PUBLIC RECORDS 11 -18- 208 -005, 003, 004 & 006; 11 -18- 226 -001; 11 -07- 461 -001, 002, 003 & 006. $2,721,800 AFTER WINNING PROTEST 2011 SELLER CLOSED OPERATION IN 2007 DUE TO NATIONAL ECONOMIC IMPACT OF NATIONAL OPERATION, ELIMINATED 350 LOCAL AREA JOBS. PURCHASED FOR FUTURE DEVELOPMENT AND SPECULATION. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR/ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT/ # /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 22 INDUSTRIAL 2225 KERPER BLVD, DUBUQUE, IOWA 52001 DUBUQUE $500,000 4/13/2011 2011 -6556 SO. FOURTH PACIFIC RIM CRDS DEVELOPMENT LLC 31,125 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT 1968 STEEL FRAME, CONCRETE BLOCK AND STEEL, GABLE OFFICE APPROXIMATELY 1560 SQUARE FOOT, WELL BELOW AVERAGE TO POOR CONDITION HVAC FOR OFFICE, SPACE HEATER FOR WAREHOUSES, THREE OVERHEAD DOORS AND LOADING DOCKS, 57,499 SQUARE FEET 1.84 TO 1 PAVED ASPHALT ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN HEAVY INDUSTRIAL DISTRICT VACANT SEVERAL YEARS 3,000 TO 11,000 DAILY USING CURRENT COUNTS $16.06 VACANT VACANT SELLER, COURT RECORDS 11 -18- 313 -001 (SPLIT INTO 003 & 004 WITH LOT SOLD IN 2012), $711,000 AT TIME OF SALE LISTED 2009 AT $1,200,000 BASED ON INACCURATE APPRAISAL, LOWERED PRICE OCTOBER 2010, TOLD TO EXPECT OFFERS $400,000 TO $600,000, RECEIVED OFFER AT $300,000, BUT IT WAS DECLINED. BUYER COMPLETED $20,000 OF IMPROVEMENTS TO OCCUPY (MOSTLY ELECTRICAL), SELLER VERIFIED WATER AND SPRINKLER OPERATIONAL AS TERM OF SALE. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR/ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 23 INDUSTRIAL 1230 E. 12TH STREET, DUBUQUE, IOWA 52001 DUBUQUE $122,700 4/25/2011 2011 -6714 EAST DUBUQUE SAVINGS BANK TFM CO. 21,488 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT 1969 AND 1977 BRICK AND BLOCK, FLAT ROOF OFFICE 7 %, 1,460 SQ. FT. POOR CONDITION HVAC FOR OFFICE, SPACE HEATER FOR WAREHOUSE, FOUR OVERHEAD DOORS 51,180 SQUARE FEET 2.38 TO 1 PAVED ASPHALT 17,025 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN HEAVY INDUSTRIAL DISTRICT VACANT FEW YEARS MINIMAL, NOT COUNTED, BUT ALONG KERPER BLVD. WITH 3,000 TO 11,000 DAILY USING CURRENT COUNTS $5.71 VACANT VACANT BUYER, COURT RECORDS 11 -19- 326 -004, $689,910 TIME OF SALE, REDUCED 2011 FORECLOSURE SALE, POOR CONDITION, BUILDING REQUIRED COMPLETE GUT AT SIGNIFICANT COST TO BUYER. 12/26/2012 RECORDED NAME CORRECTION, NOT A SALE, TO MVT LLC. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 24 INDUSTRIAL 210 JONES ST, DUBUQUE, IOWA 52001 DUBUQUE $287,000 (PRIOR WAS FORECLOSURE $339,180 3/24/2011) 5/4/2011 2011 -6611 AMERICAN TRUST AND SAVINGS BANK 210 JONES LLC. 43,526 SQUARE FOOT TWO (2) AND ONE (1) STORY 22,240 SQUARE FOOT MAIN LEVEL, WITH NO BASEMENT 1900 BRICK /FLAT ROOF MINIMAL FINISH, FAIR WAREHOUSE CONDITION HVAC, TWO -TRUCK DOOR LISTED 40,158 SQUARE FEET 1.8 TO 1 (MAIN LEVEL) PAVED ASPHALT 1,500 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN C4 DOWNTOWN COMMERCIAL DISTRICT VACANT 500 TO 3300 DAILY ALONG JONES USING MOST CURRENT COUNTS, BUT NEAR HIGHWAY WITH 10,000 TO 32,000 DAILY $6.59 VACANT VACANT BUYER, PUBLIC RECORDS 1025428001 AND 1025428005, $515,400 (NOW COMBINED) PURCHASED AFTER FORECLOSURE, BUYER LISTED FOR LEASE AT $8 PSF, AND WILLING TO RENOVATE. EXPIRED 2/7/2013, DMLS 120523. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 25 INDUSTRIAL 5110 WOLFF ROAD, DUBUQUE, IOWA 52001 DUBUQUE $305,000 5/9/2011 2011 -6742 WILLIAM AND RITA MCDONOUGH, JMJ SCREEN PRINT GOOD DOG PROPERTIES 4,500 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT 1986 STEEL FRAME, STEEL SIDING, GABLE ROOF OFFICE APPROXIMATELY 1,125 SQUARE FOOT, AVERAGE CONDITION HVAC FOR OFFICE, SPACE HEATER FOR WAREHOUSES, ONE OVERHEAD DOORS, INSULATED 20,600 SQUARE FEET 4.58 TO 1 PAVED ASPHALT 3,500 SQUARE FEET ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN LIGHT INDUSTRIAL DISTRICT SHOP AND WAREHOUSE MINIMAL, NOT COUNTED, BUT JUST OFF RADFORD ROAD WITH 3,000 TO 6,200 DAILY USING MOST CURRENT COUNTS $42.14 OWNER NONE SELLER, PUBLIC RECORDS 10 -20- 378 -004, $147,600 TIME OF SALE OVERALL AVERAGE CONDITION, JUST OFF MORE COMMERCIAL DISTRICT AND TRAFFIC AREA. INSULATED BUILDING WITH METAL INTERIOR. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 26 INDUSTRIAL 1180 ROOSEVELT ST. EXTENSION, DUBUQUE, IOWA 52001 DUBUQUE $300,000 12/30/2011 2011 -114 THOMPSON TRUCK AND TRAILER INC. KEY CITY PROPERTIES LLC 13,149 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT 1974 CONCRETE BLOCK, 16' HEIGHT, FLAT RUBBER OFFICE 13 %, 1,728 SQ. FT., BELOW AVERAGE CONDITION HVAC FOR OFFICE, SPACE HEATER FOR SHOP, SEVEN OVERHEAD DOORS, NO LOADING DOCKS 78,844 SQUARE FEET 6 TO 1 PAVED ASPHALT 2,600 SQUARE FEET ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN HEAVY INDUSTRIAL DISTRICT SHOP AND OFFICES, TRUCKING COMPANY MINIMAL, NOT COUNTED, BUT JUST OFF KERPER BLVD WITH 3,000 TO 11,000 DAILY USING CURRENT COUNTS $22.82 OWNER OCCUPIED NONE PUBLIC RECORDS 11 -18- 251 -015, $508,110 TIME OF SALE (REDUCED 2012) PART OF A PURCHASE AND EXCHANGE, CONSIDERED ARMS LENGTH. APPRAISER PREVIOUSLY OBSERVED THE BUILDING SEVERAL YEARS PRIOR TO SALE. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR/ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 27 INDUSTRIAL OFFICE 7495 CHAVENELLE ROAD, DUBUQUE, IOWA 52002 DUBUQUE $1,020,976 (PRIOR 2011 SALE WAS LAND ONLY) 12/30/2011 2012 -305 EPIC CONSTRUCTION WALTER DEVELOPMENT LLC 10,700 SQUARE FOOT ONE (1) STORY OFFICE, NO BASEMENT 2011 METAL ON STEEL FRAME, FLAT ROOF RUBBER OFFICE, GOOD CONDITION AND QUALITY HVAC AND SPRINKLER SYSTEM 100% 113,692 SQUARE FEET 10.62 TO 1 PAVED ASPHALT 20,000 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN PLANNED INDUSTRIAL INDUSTRIAL OFFICES, NEW CONSTRUCTION 3,000 TO 5,000 DAILY USING MOST CURRENT COUNTS $95.42 NEW CONSTRUCTION NEW CONSTRUCTION BUYER, PUBLIC RECORDS 1030301010, LAND ONLY ASSESSED AT $102,840 LAND SALE $261,600 FROM CITY OF DUBUQUE AT $2.30 PER SQUARE FOOT. PURCHASER OF BUILDING OWNS INDUSTRIAL BUILDINGS IN SAME DEVELOPMENT AREA. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 28 INDUSTRIAL 1160 E. 12TH STREET, DUBUQUE, IOWA 52001 DUBUQUE $500,000 4/2/2012 2012 -5682 KEVIN AND LYNNE OYEN HELLHOLE CANYON REALTY, LLC 18,000 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT 1970 STEEL FRAME, BRICK SIDING, FLAT ROOF OFFICE 4,500 SQUARE FOOT, BELOW AVERAGE TO POOR CONDITION HVAC FOR OFFICE, SPACE HEATER FOR WAREHOUSE, THREE OVERHEAD DOORS, TWO LOADING DOCKS, 37,120 SQUARE FEET 2.06 TO 1 PAVED ASPHALT 10,000 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN HEAVY INDUSTRIAL DISTRICT VACANT FEW YEARS MINIMAL, NOT COUNTED, BUT ALONG KERPER BLVD. WITH 3,000 TO 11,000 DAILY USING CURRENT COUNTS $27.78 VACANT VACANT SELLER, COURT RECORDS 11 -19- 326 -003 ORIGINALLY LISTED 2007 FOR 4650,000 *760 DAYS), REDUCED TO $575,000; THEN LISTED 2009 AT $610,000 FOR 279 DAYS AND 2010 AT $610,000 FOR 32 DAYS. APPROXIMATELY 25% OFFICE AREA, SPRINKLER SYSTEM, THREE OVERHEAD DOORS, TWO LOADING DOCKS, 10,000 SQUARE FOOT PARKING, NEW HEAT UNITS AND ROOF IN PAST FEW YEARS BEFORE SALE. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR/ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 29 INDUSTRIAL 508 E. 16TH STREET, DUBUQUE, IOWA 52001 DUBUQUE $300,000 6/29/2012 2012 -11234 W P INVESTMENTS, LLC CITY OF DUBUQUE 4,000 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT, 10' -14' CEILING 2003 WOOD FRAME, METAL SIDING AND ROOF, INSULATED MINIMAL FINISH, 600 SQ. FT. OFFICE, AVERAGE CONDITION OVERALL HVAC, 3 OVERHEAD DOORS 13,360 SQUARE FEET 3.34 TO 1 (MAIN LEVEL) PAVED CONCRETE APPROXIMATELY 8,000 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN HI HEAVY INDUSTRIAL DISTRICT AUTO SHOP AND SALES 6800 TO 9600 DAILY USING MOST CURRENT COUNTS $75.00 BLDG. $22.46 LAND OWNER BUSINESS OCCUPIED N/A BUYER, PUBLIC RECORDS 1024284015; $166,160; $5,702 PURCHASED BY CITY AS PART OF FEDERAL PROJECT TO RELOCATE AND EXPAND THE BEE BRANCH WATERSHED PROJECT. PRICE APPEARS WELL ABOVE TYPICAL MARKET VALUES FOR BUILDING AND FOR LAND. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 30 INDUSTRIAL 19 NIGHTENGALE LANE, DUBUQUE, IOWA 52003 DUBUQUE $335,000 7/27/2012 12 -13110 ARTIC IOWA INC. ARTIC GLACIER USA INC. 10,460 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT 1973 STEEL FRAME, STEEL SIDING /GABLE MINIMAL OFFICE, OVERALL AVERAGE CONDITION HVAC FOR OFFICE, ONE TRUCK DOOR LISTED, INTERIOR REFRIGERATION PRODUCING EQUIPMENT COOLS WAREHOUSE AREAS 41,856 SQUARE FEET 4 TO 1 PAVED ASPHALT 1,500 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN CS COMMERCIAL SERVICE DISTRICT ICE MANUFACTURING AND DISTRIBUTION MINIMAL, NOT COUNTED, BUT JUST OFF CEDAR CROSS ROAD WITH 9,000 TO 10,500 DAILY USING MOST CURRENT COUNTS $32.03 OWNER OCCUPIED OWNER OCCUPIED SELLER, PUBLIC RECORDS 1034101008; 1034101012; 1034151005; $323,300/$11,094 OPERATION CONTINUED USE IN MERGER PURCHASE OF MULTIPLE PROPERTY AROUND NORTH AMERICA. NO PERSONAL PROPERTY LISTED. PREVIOUSLY OBSERVED IN APPRAISAL MORE THAN TEN YEARS PRIOR. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 31 INDUSTRIAL 3366 CENTER GROVE, DUBUQUE, IOWA 52003 DUBUQUE $685,000 (LEASED FEE INTEREST) 10/11/2012 2012 -18487 PFAB, GARY IRON MAN LEASING LLC. 6,900 SQUARE FOOT ONE (1) STORY, WITH FULL BASEMENT, 14'+ CEILING 2004 STEEL FRAME, METAL SIDING AND ROOF, INSULATED RETAIL ON MAIN LEVEL GARAGES ON LOWER LEVEL, OVERALL AVERAGE CONDITION HVAC OFFICE, FOUR OVERHEAD DOORS 30,164 SQUARE FEET 4.37 TO 1 (MAIN LEVEL) PAVED CONCRETE, APPROXIMATELY 8,000 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN PI PLANNED INDUSTRIAL & C3 COMMERCIAL MULTIPLE TENANTS MINIMAL, NOT COUNTED, BUT JUST OFF CEDAR CROSS ROAD WITH 9,000 TO 10,500 DAILY AND HIGHWAY 20 /DODGE STREET WITH 22,000 TO 37,000 DAILY USING MOST CURRENT COUNTS $99.28 (MAIN FLOOR), $49.64 (TOTAL, 2 LEVELS) 9.75 (ASSUMING SAME NET INCOME LISTED ON MLS ) 2012 FULLY RENTED, GROSS $89,472, LESS INSURANCE $3200, UTILITIES $600, TAXES $19,276 PUBLIC RECORDS, 10 -27- 303 -021, $559,530 (2012), NEW CARD SPLIT AT SALE BUILDING WAS LISTED FOR SALE AT $779,000 IN 2011 AND AGAIN IN 2012, EXPIRED AFTER 183 DAYS IN 2012, WITH NET INCOME OF $66,396. PURCHASED FOR INVESTMENT, VACANT IN 2013, LISTED FOR LEASE DMLS 122875 AT $12 PER SQUARE FOOT GROSS MAIN LEVEL (HAS 4 LEASE SPACES, 2 LEASED FOR HALF OF MAIN LEVEL) AND $7.50 PER SQUARE FOOT GROSS FOR LOWER LEVEL. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR/ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 32 INDUSTRIAL 245 RAILROAD AVENUE, DUBUQUE, IOWA 52001 DUBUQUE $2,285,540 12/17/2012 2012 -23773 WEBER INDUSTRIES LLC MEHTA, LLC $1,595,000 11/25/2008 2008 -16865 L & I BUILDING CO. WEBER INDUSTRIES, LLC 73,680 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT, 10' -14' CEILING 1912 BRICK /FLAT, SLOPING AND GABLE ROOF MINIMAL OFFICE AND RETAIL /SHOWROOM FINISH AREA, MOSTLY OLDER SHOP AND WAREHOUSE AREAS, AVERAGE OVERALL CONDITION HVAC, 18 TRUCK DOORS, LOADING DOCK SHARED, 118,483 SQUARE FEET 1.6 TO 1 PAVED ASPHALT 60,000 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY LIGHT INDUSTRIAL DISTRICT MULTIPLE INDUSTRIAL TENANTS MINIMAL, NOT COUNTED, BUT VISIBILITY FROM HIGHWAY 52,61,151 WITH 14,500 TO 31,000 DAILY USING MOST CURRENT COUNTS $31.02 CONFIDENTIAL MULTIPLE, APPROXIMATELY 10,000 SQUARE FEET VACANT AT SALE SELLER, PUBLIC RECORDS 1025480001, $1,306,340 / $44,834 2008 SALE WAS FAMILY MEMBER BUYING OUT OTHER FAMILY. APPRAISER WAS LISTING BROKER FOR LEASE 2011 -2012. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 33 INDUSTRIAL 5065 WOLFF ROAD, DUBUQUE, IOWA 52002 DUBUQUE $310,000 (LEASED FEE INTEREST) 12/31/2012 2013 -110 CARR CONSTRUCTION INC. BURBACH LIMITED PARTNERSHIP LLLP 6,800 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT, 15'+ CEILING 1997 STEEL FRAME, METAL SIDING AND ROOF, INSULATED MINIMAL OFFICE, RESTROOMS, AVERAGE CONDITION HVAC OFFICE, THREE OVERHEAD DOORS 18,800 SQUARE FEET 2.76 TO 1 (MAIN LEVEL) PAVED ASPHALT, APPROXIMATELY 3,500 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN LI LIGHT INDUSTRIAL OWNER BUSINESS MINIMAL, NOT COUNTED, BUT JUST OFF RADFORD ROAD WITH 3,000 TO 6,200 DAILY USING MOST CURRENT COUNTS $45.59 NA NA PUBLIC RECORDS, 10 -20- 377 -005, $242,350 (2011/12), $8,318 (2011) PURCHASED FOR INVESTMENT, VACANT IN 2013, SIGN FOR LEASE BY OWNER. PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ENVIRONMENTAL ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O.A.R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 34 INDUSTRIAL 575 HUFF STREET, DUBUQUE, IOWA 52003 DUBUQUE $750,000 1/1 /2013 2013 -11555 TIMMERMAN, ROSE E. TAILWIND, LLC 28,790 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT, 14'+ CEILING 1987, 1991 STEEL FRAME, METAL SIDING, FLAT ROOF, INSULATED MINIMAL FINISH, 2850 SQ. FT. OFFICE, RESTROOMS, OVERALL AVERAGE CONDITION HVAC OFFICE, LOAD DOCKS, SIX OVERHEAD DOORS 110,642 SQUARE FEET 3.84 TO 1 (MAIN LEVEL) PAVED ASPHALT, APPROXIMATELY 18,000 SQ. FT. ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY NONE KNOWN LI LIGHT INDUSTRIAL INDUSTRIAL MINIMAL, NOT COUNTED $26.05 N/A N/A PUBLIC RECORDS 10 -36- 229 -006, $725,730 (2012), $24,908 (2011) WAS NOT LISTED FOR SALE PROPERTY TYPE ADDRESS, CITY, ZIP COUNTY SALE PRICE SALE DATE DOCUMENT # GRANTOR/SELLER GRANTEE /BUYER GROSS BLDG. SIZE # OF STORIES YEAR BUILT EXTERIOR /ROOF FINISH /CONDITION MECHANICALS LOT SIZE LAND /BLDG. RATIO PARKING LOT /# /RATIO UTILITIES EASEMENTS ZONING USE AT SALE TRAFFIC COUNTS $ PER SQUARE FOOT O. A. R. TENANTS VERIFIED ASSESSOR # COMMENTS Felderman Appraisals, Dubuque, Iowa BUILDING SALE # 35 INDUSTRIAL 155 N. CRESCENT RIDGE, DUBUQUE, IOWA 52002 DUBUQUE $1,075,000 PENDING PENDING FALEY PROPERTIES INC. TERRY HARRIS $1,000,000 12/27/2010 10 -21870 FALEY FAMILY REALTY COMPANY, LLC FALEY PROPERTIES, INC. 26,880 SQUARE FOOT ONE (1) STORY, WITH NO BASEMENT 1992 STEEL FRAME, STEEL SIDING /GABLE ROOF APPROXIMATELY 25% (7,360 SQ. FT) OFFICE, ABOVE AVERAGE TO GOOD CONDITION OVERALL HVAC, 5 OVERHEAD DOORS, LOAD DOCKS, 22' CEILING 135,036 SQUARE FEET 5.02 TO 1 PAVED ASPHALT 24,000 SQ. FT. /50 VEHICLES ELECT, GAS, PUBLIC WATER & SEWER, PHONE, CABLE TYPICAL UTILITY COMMERCIAL SERVICE DISTRICT VACANT, FORMER USE WAS OWNER BUSINESS OCCUPIED AUTO PARTS DISTRIBUTION WAREHOUSE MINIMAL, NOT COUNTED, BUT BLOCK OFF HIGHWAY 20 /DODGE STREET WITH 22,000 TO 37,000 DAILY USING MORE CURRENT COUNTS $40.00 $37.20 VACANT OWNER OCCUPIED VACANT, ASKING OWNER OCCUPIED SELLER, PUBLIC RECORDS (WAS LISTED AT $1,525,000 FOR 168 DOM, THEN $1,295,000 FOR 299 DOM) 1028326001; $1,003,100 (2010) AND $1,023,160 (2013), $35,116 PREVIOUSLY OBSERVED DURING APPRAISAL MORE THAN 10 YEARS PRIOR. 2010 WAS FAMILY SALE, 2013 SALE FINALIZED NOT CLOSED AS OF 7/1/2013. PHOTOGRAPHS OF COMPARABLES COMPARABLE #1 COMPARABLE #2 Feldermm Appraisals, Du&uqua, dowa PHOTOGRAPHS OF COMPARABLES COMPARABLE #3 COMPARABLE #4 Felderman Appraisals, Dubuque, Iowa PHOTOGRAPHS OF COMPARABLES COMPARABLE #5 COMPARABLE #6 Felderman Appraisals, Dubuque, Iowa PHOTOGRAPHS OF COMPARABLES C(=)I;SF_ .F.LA BLE #7 COMPARABLE #8 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES COMPARABLE #9 C OIvIPARABLE #10 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES COMPARABLE #11 COMPARABLE #12 Feddennan Appraisals, Dubuque, Iowa PHOTOGRAPHS OF COMPARABLES COMPARABLE #13 COMPARABLE #14 Felderman Appraisals, Dubuque, Iowa PHOTOGRAPHS OF COMPARABLES C OMPARABLE #1 5 C OMPARABLE #1 6 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES C OIvIPARABLE #17 C OIAIPA.Rr.BLE # 18 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES COMPARABLE #19 C OMPARABLE #20 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES COMPARABLE #21 C OMPARABLE #22 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES C OMPARABLE #23 COMPARABLE #24 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES COMPARABLE #25 COMPARABLE #26 Fedderman Appra sals, Dubuque, Iowa PHOTOGRAPHS OF COMPARABLES C OMPARABLE #27 C OMPARABLE #28 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES COMPARABLE »29 COMPARABLE 030 FeidernwnAppraisrds, Dubuque, Iowa PHOTOGRAPHS OF COMPARABLES C OI;SF" FL 3LE #31 ' CDA,1P AF,LA3LE #32 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES COItIP S 3LE #33 COMPARABLE #34 Fa/dermal Appraisals, Dulwqua, kwa PHOTOGRAPHS OF COMPARABLES COI,1PAR 3LE #35 Fa/dermal Appraisals, Dulwqua, kwa LAND AND IMPROVED COMPARABLE SALES MAP Fe!derm l Appraisals, Dubuque, dowa ADDENDUM E QUALIFICATIONS OF APPRAISAL FIRM El QUALIFICATIONS OF APPRAISAL FIRM CLIENTS E2 QUALIFICATIONS OF APPRAISER E3 QUALIFICATIONS OF APPRAISER E4 COPY OF APPRAISER STATE LICENSES ES Felderman Appraisals, Dubuque, Iowa FELDERMAN APPRAISALS is currently engaged in real estate appraising and counseling, market feasibility studies, and review appraising. The appraisers of the organization have a comprehensive background in real estate, business, economics, finance, management, aviation, and construction. AU appraisers in the firm are State Certified Real Property Appraisers Current Appraisers of the firm (and States) are as follows: John L. Felderman, Iowa and Illinois Robert J. Felderman, Iowa, Wisconsin and Illinois A partial listing of FELDERMAN APPRAISALS activities are; Agricultural properties, including farmland for aviation uses (air and subsurface rights), Airport and hangars (Private), Apartments, condominiums and other residential projects, Bed and Breakfast Inns, Campgrounds, Dealership facilities of all types (Automobile, Motorcycle, Truck), Eminent domain takings and condemnations, Freight warehouse and shipping /distribution facilities, Gasoline /service station and convenience stores with car washes, Government buildings including Military Armories, Golf Courses of all types, Historical Restorations, Hotels and Motels of all types, Hospitals and Medical Office Clinics and similar facilities, Industrial, manufacturing, flex and warehousing, Lumber company and storage facilities, Marinas and similar properties, Mobile Home Parks, New construction appraisals from specifications and blueprints, Nursing Home, Senior Living and Assisted Living facilities, Office and Retail commercial buildings of all types, Recreational land and facilities, Renovated facility projects, Residential properties of all types, Restaurants and fast food facilities, River oriented industrial, wharf, leased land and recreational facilities, Religious and Education facilities including school, gymnasium, and dormitories, Shopping Centers and other retail facilities, Self- Storage and other Special purpose facilities, Subdivision including residential, industrial and commercial real estate, Supermarkets, discounts stores, and other retail uses, Taverns, lounges, and similar properties, Truck Stop facilities, Warehouse, garages, and office - warehouse properties, Expert Witness and court testimony Felderman Appraisals, Dubuque, Iowa CLIENT REFERENCE LIST Alcoa Credit Union, Bettendorf, Iowa American Trust and Savings Bank, Dubuque, Iowa Associates Intergroup Management Company, Dallas, Texas Brenton First National Bank, Davenport, Iowa Buchanon County, Independence, Iowa Carlisle Graphics, Dubuque, Iowa City of Dubuque, Independence, & Maquoketa, Iowa City of East Dubuque, Illinois Clinton County Assessor, Clinton, Iowa Coldwell Banker Mortgage Services, Inc., Overland Park, Kansas Crawford, Miller, & Taylor, Inc. Springfield, Illinois John Deere & Company, Dubuque, Iowa Design Center Associates (Historic Restoration), Dubuque, Iowa Dubuque Bank and Trust Company, Dubuque, Iowa Dubuque City Assessor, Dubuque, Iowa Dubuque Initiatives, Dubuque, Iowa Dupaco Community Credit Union, Dubuque, Iowa Dutrac Community Credit Union, Dubuque, Iowa East Central Inter - governmental Agency, State of Iowa East Dubuque Savings Bank, East Dubuque, Illinois Federal Deposit Insurance Corporation (FDIC), Des Moines, Iowa Fidelity Bank and Trust, Dubuque, Iowa Fischer Companies, Dubuque, Iowa Home Equity Relocation, Oakbrook, Illinois Iowa Department of Transportation, Ames, Iowa Jackson County Assessors Office, Maquoketa, Iowa Kretschmer - Tredway Company, Dubuque, Iowa Law Firm Clemens, Walters, Conlon, & Meyer, Dubuque, Iowa Law Firm Fuerste, Carew, Juergens, & Sudmeier, Dubuque, Iowa Law Firm Hughes, Trannel, and Jacobs, Dubuque, Iowa Law Firm, Tom Jenk, P.C. Dyersville, Iowa Law Firm Kintzinger, Van Etten, Setter, Pearce & Scott, Dubuque, IA Law Firm, O'Connor and Thomas, Dubuque, Iowa Liberty Bank (now owned by Dubuque Bank & Trust), Dubuque, Iowa Morrison Brothers, Dubuque, Iowa Mound City Bank, Platteville, Wisconsin Northeast Iowa Community College, Dubuque, Iowa Premier Bank, Dubuque, Iowa St. Lukes United Methodist Church, Dubuque, Iowa Spahn and Rose Lumber Company, Dubuque, Iowa State Central Bank, Dubuque, Iowa The National Bank, Davenport, Iowa White Truck Company of Iowa U.S. Bank, Iowa, Illinois and Wisconsin United States Postal Service, Kansas City, KS Wartburg Seminary, Dubuque, Iowa Felderman Appraisals, Dubuque, Iowa QUALIFICATIONS OF THE APPRAISER ROBERT J. FELDERMAN EDUCATION National Defense University, Master of Science Degree, National Security Strategy, 2001 Georgetown University, Government Affairs Institute Certificate Legislative Affairs, 2000 Graduate, University of Dubuque, B.S. Degree, Management, 1988 Appraisal and Real Estate Education Uniform Standards for Professional Appraisal Practice (USPAP National), Appraisal Institute Principles, Farm and Land Appraisals, Commercial Investment Appraisals, Industrial Appraisals, Appraisal Report Writing, Review Appraisals, Standards and Ethics, Environmental Site Assessments, Principles of Property Inspections, Principles of Business Appraisals, Standards of Professional Appraisal Practice, Market Analysis and Highest & Best Use, UAD Appraisals, Relocation Appraisals, FHA Appraisals, Appraising for Secondary Market, Appraisal Income Capitalization, Appraisal Institute Business Practices and Ethics, Manufactured and Factory -built Housing, Information Technology, Real Estate Math, Eminent Domain Appraisals, Property Inspections, Appraisal Institute Finance Statistics & Valuation Modeling, Appraisal Institute International Finance and Standards Reporting, PROFESSIONAL AND TRADE AFFILIATIONS AND DESIGNATIONS State of Iowa Certified General Real Property Appraiser, CG01134 State of Wisconsin Certified General Real Property Appraiser, 0766 -010 State of Illinois Certified General Real Estate Appraiser, 553.002107 Licensed Real Estate Broker, State of Iowa, B23987000 Certified Real Estate Appraiser since 1984 Certified General Real Property Appraiser since 1992 Realtor/Broker, Dubuque Board of Realtors, Dubuque, Iowa, since 1985 Appraisal Reviewer for financial institutions and government entities since 1988 Appraisal Reviewer IA Real Estate Appraisal Board since 2001 FHA Appraiser, approved since 1992 in Iowa and since 1996 in Wisconsin Appraiser, National Association of Realtors Appraiser Section since 1993 Environmental Site Assessor, Nat'l Assoc. Environmental Consultants, 1993 -1997 Real Property Inspector, 1995 -2005 General Associate Member, MAI Candidate, Appraisal Institute BUSINESS EXPERIENCE Residential, Farm, Land, Commercial, Industrial Appraiser since 1984 Real Estate Expert Witness for Court Testimony and Litigation since 1985 Key Note Speaker for Real Estate and Appraisal Organizations since 1987 Appraisal Reviewer since 1988 (financial institutions, city and state government) Real Estate & Appraisal Instructor, early 1990's to mid 2000's Environmental Stewardship Commission (first appointee), Dubuque, Iowa National Education Center for AG Safety Advisor, Peosta, Iowa 1990's & 2000's Thirty -six years U.S. Army & Air Force, Major General (Retired Army), 10 years active duty Desert Shield and Desert Storm Service for operations in Continental U.S., 1990 to 1991 Global War on Terrorism Service, Contingency Operations, Operation Noble Eagle, 2005 North American Aerospace Defense Command (NORAD) 2005 to 2010 United States Northern Command 2005 to 2010 Key Note Speaker at national and international level (terrorism, pandemic, space, military, appraisals) Adjunct Professor, Aviation, University of Dubuque, Iowa, 2011 to 2012 Feldermau Appraisals, Dubuque, Iowa QUALIFICATIONS OF THE APPRAISER JOHN L. FELDERMAN EDUCATION Graduate Loras College, B.A. Degree, Business and Economics, 1957 Graduate Armed Forces Staff College, 1970 Graduate Real Estate Institute, 1978 Appraisal and Real Estate Education Uniform Standards for Professional Appraisal Practice (USPAP National), Appraisal Institute Principles, Farm and Land Appraisals, Commercial Investment Appraisals, Appraisal Report Writing, Review Appraisals, Standards and Ethics, Environmental Site Assessments, Principles of Property Inspections, Principles of Business Appraisals, Standards of Professional Appraisal Practice, UAD Appraisals, FHA Appraisals, Appraising for Secondary Market, Appraisal Income Capitalization, Business Practices and Ethics, Marshall & Swift Residential Cost Seminar, Property Inspections PROFESSIONAL AND TRADE AFFILIATIONS AND DESIGNATIONS Appraisal Review, since 1985 (currently for Iowa Real Estate Appraiser Board) Former Board of Directors, Iowa Chapter of Master Appraisers Master Farm & Land Appraiser, Nat'l Association of Master Appraiser Real Estate Broker, Iowa (B04220000), Illinois (075- 083128) Senior Appraiser (384) and Accredited Review Appraiser (40), N.A.M.A. Former Chairman and Member, Iowa Real Estate Appraiser Examining Board Member, Real Estate Educators Association Iowa Certified General Real Property Appraiser, CG01154 State of Illinois General Real Property Appraiser, 153 - 000851 Former President, Dubuque Board of Realtors, member since 1975 FHA Approved since 1992 (current in Iowa and Illinois) Senior Property Inspector, Since 1995 BUSINESS EXPERIENCE Twenty -four years Naval Engineering, Operations and Administration Owner, Felderman Appraisals Owner, J & J Construction Company President, Continental Realty and Investment, Ltd. Twenty -four years Government Administration and Budget Management Senior Faculty, Appraisal Courses, Lincoln Graduate Center Guest Speaker for Real Estate and Appraisal Organizations. Expert Witness for Court Testimony and Litigation since 1980 Residential, Commercial, Industrial, Farm & Land Appraiser, Appraisal Reviewer Felderman Appraisals, Dubuque, Iowa APPRAISER LICENSES— ROBERT J. FELDERMAN STATE OF IOWA R AOf IMRIYLNTOI COWJfHC( PROCESSIONAL LIOSN$ONO AND REOUTADON THIS IS TO CERTIFY THAT THE BELOW NAMED HAS BEEN GRANTED A CERTIFICATE AS A GENERAL REAL PROPERTY APPRAISER CERTIFICATE NO. CO01134 EXPIRES: 0!90/2012 FELDERMAN. ROBERT J FELDERMAN APPRAISALS 5$ BLUFF STREET DUBUQUE. IA 52001 State of Wisconsin Department of Safety and Professional Services CERTIFIED GENERAL APPRAISER ROBERT J FELDERMAN DUBUQUE, IA 52001 al Ha e. oe•wAleweral t.CO:mW U. 766-10 lapumm Daer. 1211 6/2013 in II e a..v tut. .IM. .n S. Ia 9mq• Lamar* at � . t . * re. 10/21/2011 Illinois Division of Professional Regulation 4:58:30 PM SEARCH FOR LICENSEE BY PROFESSION; Appraise THERE ARE 1 RECORDS WHOSE NAME CONTAINS; elderman Licensee's Name DBA /AKA License Status City, State Original Date Current Esprtn Ever Discpined? ROBERTI FELDERMAN ACTIVE DUBUQUE, IA 04 /19/2011 09 /30/2013 N Felderm,n Appraisals, Du&uqua, dowa ADDENDUM F BIBLIOGRAPHY Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Aaron, Martin H., MAI, SRA, Wright Jr., John H., MAI, The Appraisal of Religious Facilities, Appraisal Institute, Chicago, IL 1997 Affirmative Marketing, Iowa Real Estate Seminar, Waterloo, IA Affirmative Marketing (Home Study Course), Iowa Association of Realtors, Des Monies, IA, August 1993 Akerson, Charles B., MAI, The Appraisers Workbook, The American Institute of Real Estate Appraisers. Chicago, IL 1985 Akerson, Charles B., MAI, Capitalization Theory and Techniques, Study Guide, The American Institute of Real Estate Appraisers, Chicago, IL 1984 (First Edition) and 2000 (Second Edition) Akerson, Charles B., MAI, Introduction to Meeting Equity Capitalization, The American Institute of Real Estate Appraisers. Chicago, IL 1975. Akerson, Charles B., MAI, The Internal Rate of Return in Real Estate Investments, The American Institute of Real Estate Appraisers, Chicago, IL, 1986 Alth, Max & Charlotte, Wells and Septic Systems, Second Edition, Blue Ridge Summit, PA, 1992 The American Institute of Real Estate Appraisers, The Appraisal of Dairy Farms, Chicago, IL 1985. The American Institute of Real Estate Appraisers, The Appraisal of Irrigated Property, Chicago, IL 1985. The American Institute of Real Estate Appraisers, The Appraisal of Livestock and Ranch's, Chicago, IL 1985 The American Institute of Real Estate Appraisers, The Appraisal of Permanent Planting Orchards and Vineyards, Chicago, IL 1985 The American Institute of Real Estate Appraisers, The Appraisal of Real Estate, Sixth Edition, Chicago, IL, 1973 The American Institute of Real Estate Appraisers, The Appraisal of Real Estate, Ninth Edition. Chicago, IL 1987 The American Institute of Real Estate Appraisers, The Appraisal of Timberland, Chicago, IL, 1983 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY The American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal. Chicago, IL 1987. The American Institute of Real Estate Appraisers, Forecasting: Marketing Determinants Affecting Cash Flows and Reservations, Research Report 4, , Chicago, IL, May 1989 American Institute of Real Estate Appraisals, Golf Courses and Valuation, Chicago, IL 1980. The American Institute of Real Estate Appraisers, Subdivision Analysis, An Educational Memorandum. Andrews, Clarence A., Growing Up in Iowa, Reminiscences of 14 Iowa Authors, Iowa State University Press, Ames, IA, 1978 Antitrust Laws and Real Estate, The Institute for Continuing Education Inc., 1994 Appraising Residential Properties, Third Edition, Appraisal Institute, Chicago, IL, 1999 Appraisal and Evaluation Guidelines, Lincoln Graduate Center, San Antonio, TX The Appraisal of Real Estate for Eminent Domain Acquisition, American Society of Appraisers, Ames, IA, 1985 Appraisal of Residential Property Course 512 (Classroom Math Supplement), Lincoln Graduate Center The Appraisal of Rural Property, Second Edition, Appraisal Institute, 2000 Architectural Guidelines for Historic Structures in the Historic Districts of the City of Dubuque, IA, City of Dubuque, 2002 Automated Valuation Models, An Appraisers Introduction to Automated Valuation Technology, McKissock Data Systems, Warren, PA, 1998 Axelvod, Jerold L., Dream Homes: 66 Plans to Make Your Dreams Come True, Blue Ridge Summit, PA, 1987 Bainbridge, Robert E., MAI, SRA, Convenience Stores and Retail Fuel Properties: Essential Appraisal Issues, Appraisal Institute, Chicago, IL, 2003 The Bed & Breakfast and Country Inn Industry Study of Operations, Marketing, and Finances (2000), produced by PKF Consulting, Research Department. Bell, Randall, MAI, Real Estate Damages, An Analysis of Detrimental Conditions, Appraisal Institute, Chicago, IL, 1999 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Bianchina, Paul, Add a Room, A Practical Guide to Expanding Your Home, Blue Ridge Summit, PA, 1987 Biggers Sr. & Jr., David P., Using the Small Residential Income Property Appraisal Report, 1990 Edition Blankenship, Alan, PhD, The Appraisal Writing Handbook, Appraisal Institute, Chicago, IL, 1998 BOECKH, Commercial Building Valuation System Cost Guide, New Berlin, WI, 1999 Edition BOECKH, Commercial Building Valuation System Cost Guide, New Berlin, WI, 1999 Bonanno, James, CSI, Principles of Property Inspection, Second Edition, Lincoln Graduate Center, San Antonio, TX, 1994 Boykin, James H., PhD, MAI, SREA, CRE, Land Valuation, Adjustments Procedures, and Assignments, Appraisal Institute, Chicago, IL, 2001 Brown, Ervin, Whitlow, Jesse W., Geology of the Dubuque South Quadrangle Iowa - Illinois, Geology of Parts of the Upper Mississippi Valley Zinc -Lead District, 1960 Clark, Louise and Treadway F. J. Jr., Impact of Electric Power Transmission Line, Easements on Real Estate Values. The American Institute of Real Estate Appraisal, Chicago, IL 1972. Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, Appraisal Institute, 2003 Edition Coleman, Stephanie, MAI, SRA, Minnich III, Joseph L., SRPA, SRA, Understanding Limited Appraisals and Appraisal Reporting Options, Appraisal Institute, Chicago, IL, 1996 Commercial Investment Appraisal, Real Estate Law Institute, Chicago, IL 1988 Conroy, Kathleen, Valuing the Timeshare Property, American Institute, of Real Estate Appraisers, Chicago, IL, 1981 Course 420 Business Practices and Ethics, Course Handbook, Appraisal Institute, 2003 Coyle, Gregg A., The Bluffs of Dubuque, A Study of Vegetation and Aesthetics, Ames, IA, 1977 Darvin- Spada, Marcia, The Home Inspection Book, A Guide for Professional, 2002 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Data Standards, Appraisal Institute Commercial Database, Propertyfirst.com, Version 1.2, May 2004 Department of Revenue and Finance, State of Iowa Real Estate Property Appraisal Manual, 2002 Dollars and Cents of Multifamily Housing: 2002, Urban Land Institute, Washington D.C. Dollars and Cents of Shopping Centers: 2002, Urban Land Institute, Washington D.0 Dombal, Robert W., MAI, Appraising Condominiums: Suggested Data Analysis Techniques The Appraisal Institute of Real Estate Appraisers, Chicago, IL 1981 Dubuque County, Iowa Comprehensive Land Use Development Plan, East Central Intergovernmental Association, Dubuque, IA, September 23, 2002 Dubuque County, Iowa, Land and Atlas Book, Latest year. Rockford Map Publishers, Inc. Dubuque County, Iowa, Soil Survey of United States Department of Agriculture, Soil Conservation Service. Dubuque County, Iowa, Soil Survey Report Supplement. Iowa State University and Soil Conservation Service Eaton, J. D., Real Estate Valuation in Litigation. American Institute of Real Estate Appraiser. Chicago, IL 1982 The Energetic House, The Institute for Continuing Education Inc., 1994 Estes, Jack C., Kokus Jr., John, PhD, Real Estate License Preparation Course for the Uniform Examinations for the Salespersons and Brokers, 1976 Etter, Wayne E., Evaluating an Income Property, Real Estate Center, Texas A &M University, College Station, TX, 1988 Factory -Built Housing Virtual Classroom Course Fannie Mae Guidelines for Property and Appraisal Analysis, Lincoln Graduate Center, San Antonio, TX, 1994 Farm and Land Appraisal, Real Estate Law Institute, Chicago, IL 1988 Featherson, Don, Special Techniques of Real Estate Appraisal, Featherson and Associates, Little Rock, AR Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Federal Aviation Administration, Land Acquisition and Relocation Assistance for Airport Development Projects, May 1981 Fenker, Richard M., PhD, The Site Book: A Field Guide to Commercial Real Estate Evaluation, Fort Worth, TX, 1996 Fisher Jr., Clifford E., MAI, Mathematics for Real Estate Appraisers, An Appraisal Institute Handbook, Chicago, IL, 1996 Fisher Jr., Clifford E., MAI, Rates and Ratios Used in the Income Capitalization Approach, Appraisal Institute, Chicago, IL, 1995 Fisher, Jeff D., Martin, Robert S., Income Property Appraisal, 1991 Floyd, Charles F., Outdoor Advertising Signs in Eminent Domain Proceedings, The Real Estate Appraiser & Analyst, Summer 1990. Floyd, Charles F., Why the Income Capitalization and Market Data Approaches Are Not Valid Techniques For The Valuation of Outdoor Advertising Signs. The Real Estate Appraiser & Analyst, Summer 1990. Frequently Asked Questions (USPAP), The Appraisal Foundation, 2004 Friedman, Edith J., General Editor, The Encyclopedia of Real Estate Appraising, Fourth Edition Prentice -Hall. Englewood Cliffs, N.J. 1987 Friedman, Jack P., Ordway Nicholas, Income Property Appraisal and Analysis, American Society of Appraisers, Englewood Cliffs, NJ, 1988 Galaty, Fillmore W., Allaway, Wellington J., Kyle, Robert C., Modern Real Estate Practice, Tenth Edition, Real Estate Education Company, Chicago, IL, 1985 Gibbons, James E. Meeting Equity Capitalization: Ellwood Method. American Institute of Real Estate Appraiser, Chicago, IL 1981. Gimmy, Arthur E., MAI, Baumbach, Charles R., The Analysis and Valuation of Health Care Enterprises, The Appraisal Institute, Chicago, IL, 1996 Gimmy, Arthur E., MAI, Gates, Mary G., MAI, The Business of Show Business, the Valuation of Movie Theaters, Appraisal Institute, 1999 Gimmy, Arthur E. and Boehm Michael G., Elderly Housing A Guide to Appraisal, Market Analysis, Development and Financing. Illinois, 1988 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Gimmy, Arthur E., MAI, Woodworth, Brian B., Fitness, Racquet Sports, and Spa Projects: A Guide to Appraisal, Market Analysis, Development, and Financing, American Institute of Real Estate Appraisers, Chicago, IL, 1989 Gimmy, Arthur E., MAI, Benson, Martin E., MAI, Golf Course and Country Clubs, A Guide to Appraisal, Market Analysis, Development, and Finance, Appraisal Institute, Chicago, IL, 1992 Gimmy, Arthur E., MAI, Brecht, Susan B., Dowd, Clifford J., Senior Housing: Looking Toward the Third Millennium: A Guide to Valuation, Market Analysis, Design, Development, and Financing, Appraisal Institute, Chicago, IL, 1998 Goddard, Murray C., Wolverton, Mike & Ruth, How to be Your Own Architect, Second Edition, Blue Ridge Summit, PA, 1985 Greene, Howard W., MSA, Real Estate Mathematics Made Simple, Phoenix, AZ, 1989 Hanes, Brad, Introduction to Abstracts, Title Opinions, and Abstract Title Defects, Second Edition, Iowa Practice, 1976 Hanes, Brad, Intro to Income Property Investment Analysis, Iowa Real Estate Seminar Hanes, Brad, Pre - License Seminar, Iowa Real Estate Seminar Hanes, Brad, Real Estate Appraisal and Valuation, California Department of Real Estate, Hanes Investment Co, Sherman Oaks, CA Hanes, Brad, Real Estate Ethics, Iowa Real Estate Seminars, Waterloo, IA Hanes, Brad, Residential Property Management, Iowa Real Estate Seminar Harrison, Frank E., MAI, SRA, Appraising the Tough Ones, Creative Ways to Value Complex Residential Properties, Appraisal Institute, Chicago, IL, 1996 Harrison, George R., NSA, AAR, Advanced Commercial Appraisal, Real Estate Law Institute Inc., San Antonio, TX Harrison, George R., AAR, MSA., Principles of Appraisal Review Course #663, Real Estate Law Institute, San Antonio, TX Harrison, George R., PhD, Standards of Professional Appraisal Practice, Lincoln Graduate Center, San Antonio, TX Harrison, Henry S., Advanced Appraisal Methods, 2000 Edition, New Haven, CT, 1995 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Harrison, Henry S., Appraising Residences and Income Properties, Millennium Edition, New Haven, CT, 1989 Harrison, Henry S., Appraising Residences and Income Property, Student Workbook, New Haven, CT, 1989 Harrison, Henry S., Martin, Stephen J., Battle, Thomas E., Harrison's Illustrated Guide How to Pass Any General or Residential Appraisal Examination Certification - Licensing Q & A, New Haven, CT, 1999 Harrison, Henry S., Harrison's Illustrated Guide How to Screen Any Property for Apparent Environmental Hazards, New Haven, CT, 1991 Harrison, Henry S., Harrison's Illustrated Guide to Uniform Residential URAR Appraisal Report, 1986 Edition. New Haven, CT. Forms and Worms. Chicago, IL 1986 Harrison, Henry S., Houses, National Marketing Institute, Chicago, IL 1976. Harrison, Henry S. Illustrated Dictionary of Real Estate and Appraising. Harrison, Henry S. Small Residential Income Property Appraisal Guide. Forms and Worms. 1986. Harvey, Eric, Lucia, Alexander, 144 Ways to Walk the Talk, Dallas, TX Harwood, Bruce M., Jacobus, Charles J., Real Estate Principles, Sixth Edition, Annotated Instructor's Edition, Englecliff, NJ,1993 Illinois License Law, The Institute for Continuing Education Inc., 1993 Iowa Department of Transportation, Eminent Domain in Iowa, 1980, 1962 (2) Iowa Department of Transportation, Iowa Primary Road Access Management Policy, July 1995 Iowa Department of Transportation, Office of Right of Way Relocation Assistance Manual, April 1991 Iowa Department of Transportation, Right to Way Condemnation Manual, December 1994 Iowa Department of Transportation, Supplement to Condemnation Manual for Cities and Counties Iowa Department of Transportation Office of Right of Way, Appraisal Policy and Procedures Manual, September 1993 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Iowa Land Sales Report, P.O. Box 127, Fort Dodge, Iowa. Iowa Real Property Appraisal Manual, Department of Revenue & Finance, State of Iowa Is Your Home Protected From Hail Damage ?, A Homeowners Guide to Roofing and Hail, Institute for Business and Home Safety, Tampa, FL, 1999 Jacobs, Diana T., MSA, Potter, Paul E., MFLA, Advanced Farm and Land Appraisal, San Antonio, TX, 1996 Jacob, Diana, MSA, Appraisal of Residential Property, Lincoln Graduate Center, San Antonio, TX, Fourth Edition, February 2001 Jacob, Diana T., MSA, Appraiser Liability, "Knowledge to Minimize Risk ", First Edition, Lincoln Graduate Center, San Antonio, TX, January 2002 Jacobs, Diana T., MSA, AAR, EAC, The Six Types of Appraisal Reports and the Evaluation, Lincoln Graduate Center, San Antonio, TX Jacob, Diana T., MSA, Using the Financial Calculator, Lincoln Graduate Center, January 1995, First Edition Jacob - Rouhoff, Diana T., MSA, Glossary of Appraisal Terms, National Association of Master Appraisers, Lincoln Graduate Center, San Antonio, TX Keating, David Michael, MAI, Appraising Partial Interests, Appraisal Institute, Chicago, IL, 1998 Keating, David Michael, MAI, The Valuation of Wetlands, Appraisal Institute, Chicago, IL, 1995 Kinnard, William N., Jr., Income Property Valuation, Lexington Books /D.C. Heath and Co., Lexington, MS., 1971. Know Dubuque, The League of Women Voters of Dubuque Lemhoff, David C., A Business Enterprise Value — Anthology, Appraisal Institute, Chicago, Illinois, 2000. Lukens, Reaves C., Jr., The Appraiser and Real Estate Feasibility Studies. American Institute of Real Estate Appraisers. Chicago, IL 1972. Market Analysis: Supply and Demand Factors, Appraisal Institute, 1993 Market Analysis: Supply and Demand Factors, Appraisal Institute, 1993 Marshall and Swift, Home Repair and Remodel 2007 Cost Guide, Los Angeles, CA 2007 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Marshall and Swift, Real Estate Repair and Remodel Cost Guide, 4t' Annual Edition, 1994 Marshall and Swift, Residential Cost Handbook. Los Angeles, CA 1983. McClintock, Mike, Alternate House Building, Popular Science Books, New York, NY, 1984 McKissock, Richard D., Fair Lending for Appraisers, McKissock Data Systems, Wan-en, PA, 1998 McKissock, Richard D., Uniform Standards of Professional Appraisal Practice (One -Day Module), McKissock Data Systems, Warren, PA, 1999 McMichael, Stanley L., McMichael's Appraising Manual, New York, 1951, 4t' Edition Millard, Scott, Deck Planner, Home Planners, Inc., Tucson, AZ, 1990 Mills, Arlen C., MAI, SRA, Mills, Dorothy Z., SRA, The Individual Condominium Unit Appraisal Report, Second Edition, Appraisal Institute, Chicago, IL, 1988 Mills, Arlen C., MAI, SRA, Reynolds, Anthony, MAI, The Valuation of Apartment Properties, Appraisal Institute, Chicago, IL, 1999 Murray, William G., Farm Appraisal and Valuation, Fourth Edition, Ames, IA, 1961 National Association of Realtors, Passwords and Prejudice, A Realtor Guide to Fair Housing Compliance, Chicago, IL, 1985 O'Brien, James P., Environmental Due Diligence for Real Estate Appraisers, Aegon USA Realty Advisors Inc., Cedar Rapids, IA, 1989 Palmer, Ralph A., Real Estate Principles and Practices, Scottsdale, AZ, 1993, Third Edition Peterson, William J., Mississippi River Panorama, Henry Lewis Great National Work, Iowa City, IA, 1979 Practice of Real Estate Appraising, Real Estate Law Institute, San Antonio, TX 1988. Presentations of Rural Appraisal, Lincoln Graduate Center, Des Monies, IA, 1991 Principles of Real Estate Appraisal, Real Estate Law Institute, San Antonio, TX 1988 Ramsey, Dan, Doors, Windows, & Skylights, Second Edition, Blue Ridge Summit, PA, 1990 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Ratterman, Mark, Residential Real Estate Valuation, Appraisal Institute, Chicago, IL Ratterman, Mark R. MAI, SRA, Residential Sales Comparison Approach, Deriving, Documenting, and Defending Your Value Opinion, Appraisal Institute, 2001 Readings in the Appraisal of Special Purpose Properties, American Institute of Real Estate Appraisers, Chicago, IL, 1981 Real Estate Appraisal Presentations, Lincoln Graduate Center, San Antonio, TX, June 1990 Real Estate Mathematics, The Institute for Continuing Education Inc., 1994 Real Estate License Law, Iowa Real Estate Seminar, Waterloo, IA Reece, Richard P., MSA, DREI, Fundamentals of Business Appraising, Lincoln Graduate Center, San Antonio, TX, 1996 The Relocation Appraisal Guide, Employee Relocation Council, Washington D.C., 2001 Reynolds, Judith, Historic Properties Preservation and Valuation Process, American Institute of Real Estate Appraisers. Chicago, IL Rodale's Home Design Series, Kitchen's, Emmaus, PA, 1986 Roddewig, Richard J., MAI, CRE, Valuing Contaminated Properties, An Appraisal Institute Anthology, Appraisal Institute, 2002 Rural Property in Transition: Non Agricultural Uses, American Institute of Real Estate Appraisers, Chicago, IL 1985. Rushmore, Stephen, MAI, The Computerized Income Approach to Hotel -Motel Market Studies and Valuations, Appraisal Institute, Chicago, IL, 1990 Rushmore, Stephen, MAI, Hotel and Motels, A Guide to Market Analysis, Investment, Analysis, and Valuations, Appraisal Institute, Chicago, IL, 1992 Rushmore, Stephen, MAI, Baum, Erich, Hotel & Motels Valuation and Market Studies, Appraisal Institute, 2001 Rushmore, Stephen, Hotels, Motels and Restaurants, Valuation and Market Studies, American Institute of Real Estate Appraisers, Chicago, IL 1985. Saia, Robert S., MAI, A Guide to Appraising Recreational Vehicle Parks, Appraisal Institute, Chicago, IL 1998 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Shaffer, James L., Tigges, John T., Images of America Dubuque the 20' Century, Chicago, IL, 2000 Shenkel, William M., A Guide to Appraising Industrial Property, Society of Real Estate Appraisers, Chicago, IL 1965 Simpson, John A., Property Inspection: An Appraisers Guide, Appraisal Institute, Chicago, IL, 1997 Simpson, John A., MAI, Valuation of Marinas, Appraisal Institute, Chicago, IL 1998 Sirota, David, PhD, Essentials of Real Estate Finance, 1977 Sirota, David, Essentials of Real Estate Financing Real Estate Education Company, Chicago, IL 1977. Snyder, Tim, Decks -How to Design and Build the Perfect Deck for Your Home, Emmaus, PA, 1991 Sorenson, Richard C., MAI, Appraising the Appraisal: The Art of Appraisal Review, The Definitive Guide for Reviews, The Appraisal Institute, 1998 State Certified Real Estate Appraisers, State Licensed Real Estate Appraisers, Education Program, American Institute of Real Estate Appraisers, Chicago, IL Streetscape and Landscape Guidelines for the Historic District of the City of Dubuque, IA, City of Dubuque, 2002 Subscription Service, The Appraisal Foundation Suttle, Donald T., Jr., The Appraisal of Roadside Advertising Signs, American Institute of Real Estate Appraisers, Chicago, IL. 1972. Thayer- Sword, Joyce, Real Estate Principles and Practices Instructors Manual, Scottsdale, AZ, 1993, Third Edition Tigges, John T., Shaffer, James L., Images of America Dubuque the 19' Century, Chicago, IL, 2000 Tosh, Dennis S., Rayburn, William B., Uniform Standards of Professional Appraisal Practice, Applying the Standards, Eighth Edition, 2001 Uniform Appraisal Standards for Federal Land Acquisitions, U.S. Department of Justice, Washington, D.C. 2000 (in conjunction with the Appraisal Institute, Chicago, IL). Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Uniform Code for Building Conservation, International Conference of Building Officials, 1994 Uniform Standards of Professional Appraisal Practice (USPAP), published by "The Appraisal Foundation," (current update). Uniform Standards of Professional Appraisal Practice, Lincoln Graduate Center, San Antonio, TX, 2001 & 2002 Editions Uniform Standards of Professional Appraisal Practice & Advisory Opinions, The Appraisal Foundation, 2004 Edition Uniform Standards of Professional Appraisal Practice & Advisory Opinions, The Appraisal Foundation, 2006 Edition Uniform Standards of Professional Practice Frequently Asked Questions, The Appraisal Foundation, 2006, 2003 (2), 2002, 2001, 2000 U.S. Department of Housing and Urban Development, Valuation Analysis for Horne Mortgage Insurance for Single Family One to Four Unit Dwellings, Handbook 4150.2, Lincoln Graduate Center, 1999 U.S. Department of Housing and Urban Development Real Estate Assessment Center, Appendix 2- Dictionary of Deficiency Definitions for Real Estate Assessment Center System, Physical Assessment Subsystems, December 1999 U.S. Department of Transportation Federal Aviation Administration, Advisory Circular: Land Acquisition and Relocation Assistance Under the Airport Development Aid Program, 1975 Urban Land Institute, Hotel/Motel Development, Laventhol and Horwarth, 1984 Vehmeier, Steven W., MSA, HUD Appraisal Standards Update Course #11.2, Lincoln Graduate Center, San Antonio, TX, First Edition, 1999 Vernor, James D., MAI, PhD, Rabianski, Joseph, PhD, Shopping Center Appraisal and Analysis, Appraisal Institute, Chicago, IL 1993 Weyrich, Paul M., Lind, William S., Bring Back the Streetcars!, A Conservative Vision of Tomorrows Urban Transportation, Washington D.C., June 2002 Whitlow, Jesse W., Brown, Ervin, Geology of the Dubuque North Quadrangle Iowa - Wisconsin- Illinois, Geology of Parts of the Upper Mississippi Valley Zinc -Lead District, 1963 Felderman Appraisals, Dubuque, Iowa APPRAISAL BIBLIOGRAPHY Writing The Narrative Appraisal Report, Real Estate Law Institute San Antonio, TX 1988. Your Community Guide to Resources for Galena and Jo Daviess County, Jo Daviess County and Galena Chamber of Commerce, 1995 Zahn, Laura, Room at the Inn Galena Area, Guide to Historic B & B's and Inns Close it Galena and Dubuque, St. Paul, MN, 1990 2003 Resources Catalog, A Complete Guide to Appraisal Institute Education Programs, Publications, and Services, Appraisal Institute 2004 Resources Catalog, A Complete Guide to Appraisal Institute Educational Programs, Publications, and Services, Appraisal Institute PERIODICALS Appraisal Journal, American Institute of Real Estate Appraisers, 430 North Michigan Ave., Chicago, IL 60611. Quarterly. Doanes Reference Volume, Doanes Agricultural Service, Kansas City, MO. Farm and Land Realtor, Farm and Land Institute, 430 North Michigan Avenue, Chicago, IL 60611. Monthly. Master Appraiser The, National Association of Master Appraisers, 303 W. Cypress Street, San Antonio, TX. Review Appraiser, Lincoln Graduate Center, P.O. Box 12528, San Antonio, TX 78212. Quarterly. Real Estate Today, National Association of REALTORS, 430 North Michigan Avenue, Chicago, IL 60611.Monthly REALTOR News, National Association of REALTORS, 35 East Wacker Drive, Chicago, IL 60601. Weekly. The Real Estate Appraiser & Analyst, Journal of the Society of Real Estate Appraisers, Quarterly. REGULATIONS/STANDARDS Applicable current Zoning Ordinances for cities and/or counties. Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 1029 Vermont Avenue NW, Suite 900, Washington D.C. 20005. Felderman Appraisals, Dubuque, Iowa ADDENDUM G COMMUNITY INFORMATION G1 DUBUQUE COUNTY WORKFORCE G2 NATIONAL RECOGNITION FOR DUBUQUE G3 MOODY'S USA SUMMARY G4 MOODY'S MIDWEST SUMMARY G5 DUBUQUE DOWNTOWN LARGEST EMPLOYER MAP 2012 G6 DUBUQUE DOWNTOWN RETAIL AND SERVICES MAP G7 CENSUS INFORMATION CITY, COUNTY & IOWA G8 CENSUS INFORMATION PROFILE G9 Felderman Appraisals, Dubuque, Iowa COMMUNITY INFORMATION SHEET —City of Dubuque and Dubuque County City of Dubuque, Dubuque County, State of Iowa, United States; Incorporated 1833 Nickname(s): "Dub ", "Dubz ", "Dub Town ", "Dub City ", "Gutta Town ", The 563 ", "The Key City ", "City of Five Flags ", "Masterpiece on the Mississippi ", "4217" Motto: "Showing the Spirit" Government Type - Council- Manager Area : City 277 sq mi (71.8 km2), Land 26.5 sq mi (68.6 km2) , Water 1.2 sq mi (3.2 km2), Elevation 617 ft (188 m) Population (2009) - City 57,222; Density 2,178.2/sq mi (841.1/km2); Metro 91,765 Information: Dubuque: /de'bju:k/ is a city in and the county seat of Dubuque County, Iowa, United States, located along the Mississippi River. In 2008, its population was estimated at 57,222, making it the eighth - largest city in the state and the county's population was estimated at 92,724. The city lies at the junction of three states: Iowa, Illinois, and Wisconsin, a region locally known as the Tri -State Area. It serves as the main commercial, industrial, educational, and cultural center for the area. Geographically, it is part of the Driftless Area, a portion of North America that escaped all three phases of the Wisconsinian Glaciation. It is one of the few large cities in Iowa with hills, and is home to a large tourist industry, driven by the city's unique architecture, and river location. Also, it is home to five institutions of higher education, making it a center for culture and learning. While Dubuque has long been a center of manufacturing, the economy has recently witnessed rapid growth and diversification in other areas. In 2005, it led the state and the Midwest in job growth, ranking as the 22nd fastest - growing economy nationally. Today, alongside industry, the city has large health care, education, tourism, publishing, and financial service sectors. Dubuque has received a number of special designations. In March 2007, the city was recognized as one of the "100 Best Communities for Young People" by the America's Promise Youth Foundation. In April 2007, the city was voted 15th in the "Best Small Places For Business and Careers" ranking by Forbes Magazine, climbing 60 spots from 2006. In 2006, Money Magazine named Dubuque as having the shortest commute time all U.S. cities at only 11.8 minutes. In June 2007, Dubuque won the All- America City Award, one of 10 cities nationally to do so. In June 2008, Dubuque was named as the "Most Livable" Small City by the United States Conference of Mayors (USCM). In 2009, Dubuque was named the 8th best small metro area to launch a small business by CNNMoney.com. History of Dubuque, Iowa: The City of Dubuque is among the oldest settlements west of the Mississippi River. The first Europeans to explore the area were Father Jacques Marquette and Louis Jolliet, who travelled along the river in 1673. They were commissioned by the colony of New France to map the unexplored region. The entire area was claimed for France in 1682 by Rene - Robert Cavelier, Sieur de La Salle, who named it " Louisiane" in honor of French King Louis XIV. Following the 1763 French defeat in the Seven Years' War, Spain gained control of Louisiana. The first permanent settler to what is now Dubuque was a Quebecois pioneer, Julien Dubuque, who arrived in 1785. In 1788, he received permission from the Spanish government and the local Fox tribe of American Indians to mine the area's rich lead deposits. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET —City of Dubuque and Dubuque County Control of Louisiana (and Dubuque's mines) shifted back to France in 1800, then to the United States in 1803, following the Louisiana Purchase. Dubuque died in 1810, but the wealth of minerals drew a number of new pioneers and settlers, mostly Frenchmen and other Europeans. The current City of Dubuque, named after Julien Dubuque, was settled at the southern end of a large, flat plain adjacent to the Mississippi River. The city was officially chartered in 1833, located in then - unorganized territory. The region was designated as the Iowa Territory in 1838, and was included in the newly created State of Iowa in 1846. After the lead resources were exhausted, the city became home to numerous industries. Because of its proximity to forests in Minnesota and Wisconsin, Dubuque became a center for the timber industry, and was later dominated by various millworking businesses. Between 1860 and 1880, Dubuque was one of the 100 largest urban areas in the United States. Also important were boat building, brewing, and later, the railroad industry. Iowa's first church was built by Methodists in 1834. Since then, Iowans have followed a variety of religious traditions. Throughout the 1800s, and into the early 1900s, thousands of poor German and Irish Catholic immigrants came to work in the manufacturing centers. The city's Roman Catholic presence became so predominant that it was designated as the seat of the newly established Archdiocese of Dubuque, and numerous convents, abbeys, and other religious institutions were built. Much of the population remains Catholic to this day. Early in the 20th Century, Dubuque was one of several places that saw a brass era automobile company, in this case Adams - Farwell; like most others, it folded. Subsequently, although Dubuque grew significantly, industrial activity remained the mainstay of the economy until the 1980s. During that time, a series of changes in manufacturing, and the onset of the "Farm Crisis" led to a large decline in the sector, and the city's economy as a whole. However, the economy diversified rapidly in the 1990s, shifting away from heavy industry. Today, tourism, high technology, and publishing are among the largest and fastest - growing businesses. Dubuque attracts well over 1,500,000 tourists annually, and this number continues to increase. Some of the more important changes include the ongoing construction of the America's River Project's tourist attractions in the Port of Dubuque, the expansion of the city's colleges, and the continued growth of shopping centers, like Asbury Plaza. Geography: According to the United States Census Bureau, the city has a total area of 27.7 square miles (71.8 km2), of which, 26.5 square miles (68.6 km2) of it is land and 1.2 square miles (3.2 km2) of it (4.44 %) is water. Downtown Dubuque is the location of the city's central business district and many of its government and cultural institutions. It is the center of Dubuque's transportation and commercial sectors, and functions as the hub to the various outlying districts and neighborhoods. It is located in the east - central portion of the city, along the Mississippi River, and includes all of the area north of Maus Park, south of 17th Street, east of the bluffline, and west of the river. The area is made up of several distinct neighborhoods, each of which has a unique history and character. These neighborhoods include Cable Car Square /Cathedral Square, the Central Business District, Jackson Park /Upper Main, Lower Main, and the Warehouse District. An area of special note within Downtown Dubuque is the Port of Dubuque, which has seen a massive amount of new investment and new construction. The downtown area includes a number of significant buildings, many of which are historic, reflecting Dubuque's early and continuing importance to the region. Important sites downtown include Red Stone Bed & Breakfast, Old Cable elevator, Mississippi River, and The Washington Park Gazebo. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET —City of Dubuque and Dubuque County Tourist Attractions include: National Mississippi River Museum & Aquarium, Diamond Jo Casino, Mystique Casino, Dubuque Symphony Orchestra, Dubuque Shot Tower, Five Flags Civic Center, Fourth Street Elevator, Grand Harbor Resort & Waterpark, Grand Opera House and the Grand River Center, Dubuque's North End area was first settled in the late 1800s by working -class German immigrants to the city. The German - American community in Dubuque sought to establish their own German Catholic churches, separate from the Irish Catholic churches in Dubuque's downtown and South End. Today, the area still retains its working -class roots, and is still home to some of the largest factories operating in Dubuque. The North End is roughly defined, but generally includes all of the territory north of 17th Street, and east of North Grandview Avenue and Kaufmann Avenue. The area is made up of two main hills (west of Central Avenue, and west of Lincoln Avenue), and two main valleys, the Couler Valley (between the two hills), and the "Point" neighborhood, adjacent to the Mississippi River. It is home to Dubuque's two main cemeteries, Linwood Cemetery (established for Protestants), and Mt. Calvary Cemetery (established for Catholics). Other important sites in the North End include Eagle Point Park, Holy Ghost Catholic Church, Linwood Cemetery, Lock & Dam #11, Mathias Ham House, Mt. Calvary Cemetery, and Sacred Heart Catholic Church. The South End has been the traditional neighborhood of Irish - Americans in the city, and became known as "Little Dublin," specifically centered on southern portions of Downtown Dubuque. Remnants of Irish culture still survive in the South End, with Irish pubs and stores still operating in the area. Irish culture in Dubuque also revolves around the city's Irish Catholic churches, namely: St. Columbkilles, St. Patrick's, and St. Raphael's Cathedral. Today, the South End is much larger, and includes all of the land south of Dodge Street, east of Fremont Avenue (but including areas of west of it), and north of the Key West area. The South End has many of the city's "old money" neighborhoods, especially along South Grandview and Fremont Avenues, and around the Dubuque Golf & Country Club. Many South End neighborhoods have a more spacious and park -like appearance, contrasting with the more urban North End. Other important sites in the South End include Archdiocese of Dubuque headquarters, Louis Murphy Park, Mines of Spain State Rec. Area, Mt. Carmel Convent, St. Raphael's Cathedral, Valentine Park, and Wartburg Theological Seminary. Dubuque's West End is a large, mostly suburban area settled almost entirely after the Second World War. Development was spurred by the onset of the massive baby boom generation, and sharply higher demand for new housing in the city. Expansion began with the construction of the "John Deere Homes" in the Hillcrest Park neighborhood, which were financed by Deere & Company for its workers. Soon after, many large shopping centers were built, including Plaza 20, and the then - largest enclosed shopping mall in Iowa, Kennedy Mall. Today, the area continues to expand at a rapid pace, with new subdivisions and shopping centers stretching out for miles from the city's downtown. The West End is not clearly defined, but is generally considered to include all of the suburban -style growth west of North Grandview Avenue, the University of Dubuque, and the Valentine Park neighborhood. The area is home to a wide variety of mostly middle -class neighborhoods and city parks, but also includes many of the city's largest schools, industrial parks, and all of its large shopping centers. The expansion of the area has also led to rapid growth in suburban Asbury and exurban Peosta, Iowa, both of which adjoin the West Side. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET —City of Dubuque and Dubuque County Other Important sites in the West End include Asbury Plaza, Asbury Square Shopping Center, Bunker Hill Golf Course, Dubuque Arboretum & Botanical Gardens, Emmaus Bible College, Flora Park, Hempstead High School, Kennedy Mall, Medical Associates Clinic- West Campus, Mt. Loretto Convent, Plaza 20, Resurrection Catholic Church, Veterans Memorial Park, Wacker Plaza, Wahlert High School, Warren Plaza, and Kennedy Mall Climate: Dubuque has a humid continental climate (Koppen Dfa), which gives it four distinct seasons. However, local weather is often not as extreme as that found in other parts of the Midwest, such as Minnesota or Wisconsin. Spring is usually wet and rainy, summers are sunny and warm, autumn is pleasant and mild, and winters are typically cloudy and snowy. Culture: Dubuque has several buildings on the National Register of Historic Places. The Fourth Street Elevator is located in Downtown Dubuque. This elevator, which is the shortest and steepest railroad in existence, takes passengers up and down one of the large bluffs that dominate the city. Also, the Dubuque County Courthouse, with its Beaux -Arts architecture, is on the register. The Julien Dubuque Bridge is a National Historic Landmark, as is the Shot Tower, which was used to produce lead shot and is one of the few such towers left in existence. Dubuque's Linwood Cemetery is noted for a number of famous people buried there, and the Dubuque Arboretum and Botanical Gardens have won a number of awards. There are a number of notable parks, particularly Eagle Point Park and the Mines of Spain State Recreation Area. The Grand River Center overlooks the Mississippi River in the Port of Dubuque. Dubuque's waterfront features the Ice Harbor, where the Diamond Jo Casino and William M. Black are based. Recently the National Mississippi River Museum and Aquarium, the Grand Harbor Resort and Waterpark, and the Grand River Event Center have been built just north of the Ice Harbor. Land for this project was acquired from several businesses through condemnation of their properties under eminent domain. Dubuque is also the home of the Colts Drum and Bugle Corps. The Colts are a Drum Corps International Division 1 ensemble and tour the country each summer to attend drum corps competitions. Each summer the Colts and Dubuque host "Music on the March," a Drum Corps International- sanctioned marching competition at Dubuque Senior High School. Dubuque is the second- smallest city in the nation to support a Division I drum corps. The movies F.I.S.T. and Take This Job and Shove It were filmed in Dubuque as well as various scenes from Field of Dreams. About 25 miles west of the city is the town of Dyersville, Iowa. Dyersville is the home of the Basilica of St. Francis Xavier and of the Field of Dreams movie site. Sports: The city is home of the Dubuque Fighting Saints, set to being play in the Tier 1 Junior A United States Hockey League in the Fall of 2010 at the new Mystique Ice Center. Dubuque was home to the original Fighting Saints team from 1980 -2001 when the team relocated to Tulsa, Oklahoma. From 2001 -2010 The Dubuque Thunderbirds replaced the Fighting Saints playing in the Tier 111 Junior A Central States Hockey League at the Five Flags Center. There is a USHL home team (Fighting Saints) that started during the 2010 -11 hockey season. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET —City of Dubuque and Dubuque County Print Media: Dubuque's daily newspaper is the Telegraph Herald, or the "TH ", as it is known locally, which has a daily circulation of nearly 31,000.[17] There are several other important papers and journals that operate in the city, including Tri -State Business Times (monthly business paper), 365ink (bi- weekly cultural publication), VUE (entertainment paper), Julien's Journal (monthly local magazine), the Dubuque Advertiser (advertisement paper) and the "Tri- States Sports Look" (local sports publication). Television Media: Dubuque and surrounding areas are in the Cedar Rapids /Waterloo /Dubuque broadcast media market that is monitored by the A.C. Nielsen Company for audience research data for advertisers. For years Dubuque had a local TV news station (KFXA /KFXB Fox 28/40) until 2004 when that station became an affiliate of CTN. Currently, the Dubuque - based TV news is covered by KWWL -TV7 (Waterloo, IA), and KCRG -TV9 (Cedar Rapids, IA); both operate news bureaus in the city, and most of the city's major stories are covered by those stations. Since the closing of KFXA /KFXB, KWWL -TV has captured a majority of the local news market in Dubuque. AM radio stations including: WMT 600 "Newsradio ", news /talk; WGLR 1280 "ESPN radio ", sports; KMAQ 1320, country; KDTH 1370 "Voice of the Tri - States ", news /talk; KADR 1400 "Today's Hits and Yesterday's Favorites ", adult contemporary; WDBQ 1490 "News, Talk, & Sports Leader ", news /talk /sports; and WPVL 1590 "ESPN radio ", sports. FM radio stations include: WJTY 88.1 "Joy 88 ", Christian; KIAD 88.5, Christian; WSSW 89.1, variety; KDUB 89.7 "U NI radio ", Iowa Public Radio; WJSO 89.7, Christian; WSUP 90.5 "The Evolution 91FM ", college /alternative; KUNI 90.9 "KUNI Radio ", Iowa Public Radio; WHHI 91.3 "Wisconsin Public Radio ", public radio; KATF 92.9 "Kat -FM ", adult contemporary; WQPC 94.3 "Great Country Q94 ", country; KMAQ 95.1, adult contemporary; WVIK 95.7 "Augustana Public Radio ", public radio; KGRR 97.3 "97.3 The Rock ", active rock; WGLR 97.7 "97.7 Country ", country; KDST 99.3 "Real Country 99.3 ", country; KCTN 100.1 "Today's Best Country ", country; WVRE 101.1 "The River ", country; KSUI 101.7 "Classical Music and More ", Iowa Public Radio; KXGE 102.3 "Eagle 102 ", classic rock; WJOD 103.3 "New Country 103 ", country; KLYV 105.3 "Today's Hit Music Y105 ", Top 40; KIYX 106.1 "Superhits 106 ", classic hits; WPVL 107.1 "Xtreme 107.1 ", Top 40; WDBQ -FM 107.5 "0107.5 ", classic hits; and KLCR "Loras College Radio ", college radio. Economy: For many years, Dubuque's economy was centered on manufacturing companies such as Deere and Company and Flexsteel Industries. While industry still plays a major role in the city, the economy has diversified a great deal in the last decade. Today, health care, education, tourism, publishing, and financial services are all important sectors of the city's expanding business climate. There are several major companies that either are headquartered in Dubuque, or have a significant presence in the city. Dubuque's ten largest non - government employers include: Hormel Opening in March 2010; Deere and Company (1,800); Mercy Medical Center - Dubuque (1,324); IBM(1300); Eagle Window & Door Co. (750); Medical Associates (743); Finley Hospital (920); Woodward Communications (600); Prudential Financial (550) and McKesson Corp (360). Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET —City of Dubuque and Dubuque County Some other companies with a large presence in the area include The McGraw -Hill Companies, Diamond Jo Casino (400), A.Y. McDonald Mfg. (375), Nordstrom (250), Alliant Energy, Swiss Valley, The Metrix Company, Tschiggfrie Excavating Co., and Cottingham & Butler. And recently IBM moved into the old Roshek Building in downtown Dubuque. In recent years, Dubuque's economy has grown very rapidly. In fact, in 2005, the city had the 22nd - highest job growth rate in the nation, far outpacing the rest of Iowa. This ranking placed the city in a level of growth similar to Austin, Texas, and Orlando, Florida, among others. The city created over 10% of the new jobs in Iowa in 2005. Also, the number of jobs in Dubuque County has reached new all -time highs, with over 57,000 people working in non - farming jobs. Many new and existing businesses have announced significant expansion plans, including Sedgwick CMS, McGraw - Hill Higher Education, Deere and Company, Cottingham & Butler, Quebecor World Inc., Namasco, and many others. Demographics: Historical Population Year Pop. %± Year Pop. %± 1850 3,108 — 1930 41,679 6.5% 1860 13,000 3183% 1940 43,892 5.3% 1870 18,434 4L8% 1950 49,671 13.2% 1880 25,254 37.0% 1960 56,606 14.0% 1890 30,311 20.0% 1970 62,309 10.1% 1900 36,297 19.7% 1980 62,374 0.1% 1910 38,494 6.1% 1990 57,538 -7.8% 1920 39,141 1.7% 2000 57,686 0.3% Source: "American FactFinder ". United States Census Bureau. http: / /factfinder.census.gov. Population: As of the census of 2000, there were 57,686 people, 22,560 households, and 14,303 families residing in the city. The population density was 2,1782 people per square mile (841.1/km2). There were 23,819 housing units at an average density of 899.4/sq mi (347.3/km2). The racial makeup of the city was 96.15% White, L21% Black or African American, 0.19% Native American, 0.68% Asian, 0.11% Pacific Islander, 0.69% from other races, and 0.96% from two or more races. 1.58% of the population was Hispanic or Latino of any race. There were 22,560 households out of which 30.0% had children under the age of 18 living with them, 503% were married couples living together, 10.0% had a female householder with no husband present, and 36.6% were non - families. 31.0% of all households were made up of individuals and 12.6% had someone living alone who was 65 years of age or older. The average household size was 2.37 and the average family size was 2.99. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET — Dubuque County, Iowa In the city the population was spread out with 23.6% under the age of 18, 11.8% from 18 to 24, 26.5% from 25 to 44, 21.6% from 45 to 64, and 16.5% who were 65 years of age or older. The median age was 37 years. For every 100 females, there were 90.0 males. For every 100 females age 18 and over, there were 86.2 males. The median income for a household in the city was $36,785, and the median income for a family was $46,564. Males had a median income of $31,543 versus $22,565 for females. The per capita income for the city was $19,616. About 5.5% of families and 9.5% of the population were below the poverty line, including 9.3% of those under age 18 and 12.5% of those that are age 65 or over. Religion: Since its founding, Dubuque has had, and continues to have, a strong religious tradition. Local settlers established what would become the first Christian church in Iowa, St. Luke's United Methodist Church in early 1833. [ref: History of St. Luke's United Methodist Church 150th anniversary 1833 -1983] St. Raphael's was established later in 1833. The city also played a key role in the expansion of the Roman Catholic Church into the Western United States, as it was the administrative center for Catholics in what are now Iowa, Minnesota, North Dakota, and South Dakota. Many important Catholic religious leaders have lived in Dubuque, including Father Samuel Mazzuchelli, Bishop Mathias Loras, Clement Smyth, and Mother Mary Frances Clarke. The modern religious character of the city is still dominated by the Roman Catholic Church. Although sources vary, Catholics make up between 65 -85% of city residents, with even higher percentages in the surrounding rural areas. This contrasts with the remainder of Iowa, which is only 23% Catholic. The city proper is home to 52 different churches (11 Catholic, 40 Protestant, 1 Orthodox), and 1 Jewish Synagogue (Reform). In addition to churches, 5 religious colleges, 4 area convents, and a nearby abbey and monastery add to the city's religious importance. Most of non - Catholic population in the city belongs to various Protestant denominations. Dubuque is home to three theological seminaries: St. Pius X seminary, pre - theology for Roman Catholic men discerning a call to ordained priesthood, the University of Dubuque, with the Presbyterian Church USA, and the Wartburg Theological Seminary, with the Evangelical Lutheran Church in America. These latter two institutions train both lay and ordained ministers for placements in churches nationwide. Dubuque is also the headquarters of the Roman Catholic Archdiocese of Dubuque, which directly administers 1/3 of Iowa's territory for the church, and is the head of the Ecclesiastical Province of Dubuque, the entire state of Iowa. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET — Dubuque County, Iowa Law and government: The City of Dubuque operates on the council- manager form of government, employing a full - time city manager and part -time city council. The city manager runs the day -to -day operations of the city, and serves as the city's executive leader. The assistant city manager is Cindy Steinhauser, and is largely credited in spearheading downtown and riverfront revitalization and is currently working on a "Greening Historic Buildings" project as an economic - development strategy and as a way to remember its manufacturing past. Policy and financial decisions are made by the city council, which serves as the city's legislative body. Education: Dubuque is served by the Dubuque Community School District, which covers roughly the eastern half of Dubuque County and enrolls 10,735 students in 20 school buildings as of 2006. The district has 13 elementary schools, 3 middle schools, 3 high schools, and 1 preschool complex. It is among the fastest - growing school districts in Iowa, adding over 1,000 students in the last five years. Public high schools in Dubuque include Dubuque Senior High School, Hempstead High School, and Central Alternative High School (closed in 2010). The city also has a large number of students who attend private schools. Most private schools are run by the Roman Catholic Archdiocese of Dubuque. The Archdiocese oversees the Holy Family Catholic Schools, which operates 11 schools in the city, including 9 early childhood programs, 4 elementary schools, 1 middle school, and 1 high school. As of 2006, Holy Family enrolled 1,954 students in grades K -12. Dubuque also has an elementary school serving the Lutheran community, Dubuque Lutheran School (LCMS affiliated). There is one private high school in Dubuque: Wahlert High School. Dubuque is also home to a large number of higher education institutions. Loras College and Clarke College are both 4 -year schools associated with the Roman Catholic Church. They are 2 of the 3 colleges operated by the Roman Catholic Archdiocese of Dubuque. Protestant colleges in the city include the University of Dubuque, which is associated with the Presbyterian Church (USA), and Emmaus Bible College, connected with the Plymouth Brethren movement. There are also 3 theological seminaries operating in the city, the St. Pius X Seminary (Roman Catholic, associated with Loras College), the University of Dubuque Theological Seminary (Presbyterian), and Wartburg Theological Seminary (Lutheran ELCA). Other schools in the area include Northeast Iowa Community College, which operates its largest campus in nearby Peosta, Iowa and has a satellite campus in Dubuque, and Capri Cosmetology College, in Dubuque. The University of Wisconsin- Platteville is another major university located in the region, about 20 miles northeast of Dubuque in Platteville, Wisconsin. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET — Dubuque County, Iowa Health and medicine: Dubuque is the health care center of a large region covering eastern Iowa, northwestern Illinois, and southwestern Wisconsin. The city is home to two major hospitals that, together, have 421 beds. Mercy Medical Center - Dubuque is the largest hospital in the city with 263 beds, and one of only three in Iowa to achieve "Magnet Hospital" status. Magnet Hospitals must meet and maintain strict standards, deeming them some of the best medical facilities in the country. Mercy specializes in various cardiac - related treatments, among other things. It is affiliated with the Roman Catholic Church. Dubuque's other hospital is The Finley Hospital, which is a member of the Iowa Health System's network of hospitals. Finley is JCAHO accredited, and currently has 158 beds. It is unofficially Dubuque's "cancer hospital," as it has significant oncology - related facilities, including the Wendt Regional Cancer Center. The hospital campus has expanded in recent years, with the construction of several new buildings. Among other health care facilities, the city is home to two major outpatient clinics. Medical Associates Clinic is the oldest multi - specialty group practice clinic in Iowa, and currently operates two major outpatient clinics in Dubuque, its "East" and "West" campuses. It is affiliated with Mercy Medical Center - Dubuque, and also operates its own HMO, Medical Associates Health Plans. Affiliated with the Finley Hospital is Dubuque Internal Medicine, which is Iowa's largest internal medicine group practice clinic. Highways: Dubuque is served by 4 U.S. Highways (20, 151, 61, and 52) and 2 state highways (3, 32). Highway 20, is the city's busiest east -west thoroughfare, connecting to Rockford (and I- 39/1 -90) and Chicago, Illinois to the east, over the Julien Dubuque Bridge. In the west, it connects to Waterloo, Iowa. Highways 151, 61, and 52 all run north -south through the city, with a shared expressway between the three for part of the route. Highways 61 and 52 both connect Dubuque with the Twin Cities (Minnesota) to the north, with 61 connecting to Davenport, Iowa (and 1- 74/1 -80), and 52 connecting to Clinton, Iowa to the south. Highway 151 connects Dubuque with Madison, Wisconsin (and 1- 39/1 - 90/1 -94) (via the Dubuque- Wisconsin Bridge) to the northeast and Cedar Rapids, Iowa to the southwest. Dubuque has 4- lane, divided highway connections with Cedar Rapids, Davenport, Madison, and Waterloo. Iowa State Highway 3 begins in Dubuque along a shared route with Highway 52, and connects the city with central and western Iowa. Iowa State Highway 32, locally known as the "Northwest Arterial," acts as a beltway for parts of the North End and West Side. Eventually, this 4 -lane highway will be extended southeast, to connect with highways 151 & 61 near Key West, Iowa and the Dubuque Regional Airport. This section will be called the "Southwest Arterial." Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET — Dubuque County, Iowa Airport: The Dubuque Regional Airport Dubuque and its region are served by the general- aviation Dubuque Regional Airport (IATA: DBQ, ICAO: KDBQ). The airport currently has one carrier, American Eagle Airlines, (a division of American Airlines) which operates 3 non -stop jet flights daily to Chicago O'Hare International Airport. Northwest Airlines regional partner Mesaba operating under Northwest Airlink used to have daily service to Dubuque. Northwest operated twice daily flights to and from Minneapolis -Saint Paul International Airport (IATA: MSP, ICAO: KMSP) using Saab 340 aircraft. These flights began June 2008 and ended on August 31, 2009. Northwest Airlines once offered service to Dubuque prior to 9/11. The airport's operator, the City of Dubuque, continues to court additional carriers to add service to the airport. This will likely happen, since the Dubuque Regional Airport has reported steadily increasing passenger numbers over the years, and, up until recently, had service from 3 different carriers (prior to 9/11). In early November 2007, it was announced that October 2007 was the best month ever for American Eagle airline at the Dubuque Regional Airport, according to Dubuque Regional Airport manager. "We had 4,510 total revenue passenger enplanements; that is a record for American Eagle in Dubuque," said the manager. "American Eagle averaged a 79.82 percent enplanement load factor. Load factors are determined by how many revenue passengers were on the plane versus how many seats are available." In the coming years, a $23 million new terminal will be built to modernize and expand the airport. Mass transit: In Dubuque, public transportation is provided by the city -owned KeyLine Transit System. KeyLine operates 4 bus lines, downtown trolleys, and on- demand paratransit service throughout the city. Most lines run in a general east -west direction, moving passengers between outlying neighborhoods and shopping centers and the downtown central business district. The system has 3 major transfer stations: Downtown Dubuque (West 9th & Main Streets), Midtown (North Grandview & University Avenues), and the West Side (Kennedy Circle /John F. Kennedy Road). Also of note are ongoing discussions about extending passenger rail service to Dubuque on a proposed Dubuque - Chicago rail line. The proposal was one of 10 major projects citizens identified in the "Envision 2010" community planning process. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET — Dubuque County, Iowa Dubuque County, State of Iowa, United States of America Founded 1834, County Seat located in City of Dubuque Area: Total: 617 sq mi (1,598 km2); Land: 608 sq mi (1,575 km2); Water: 8 sq mi (21 km2), 1.36% Population Estimate as of 2006: 92,359 Dubuque County is a county located in the U.S. state of Iowa. As of 2000, the population was 89,143, rising to 92,359 in 2007. Its county seat is the city of Dubuque. Dubuque County is coterminous with the Dubuque, Iowa Metropolitan Statistical Area, and is the seventh largest county by population in the state. It is named for Julien Dubuque, the first European settler of Iowa. History: Early history: Dubuque County is named for Julien Dubuque, the first European settler of Iowa, and an early lead mining pioneer in what is now Dubuque County. Dubuque was French Canadian, and had (by most accounts) a friendly relationship with the local Fox Tribe of Native Americans. He and other early pioneers established a lucrative mining and trading industry in the area. When lead deposits began becoming exhausted, the pioneers developed boat building, lumber yards, millworking, brewing, and machinery manufacturing to take its place. It is one of Iowa's two original counties along with Des Moines County; both were organized by the Michigan Territorial legislature in 1834. The city of Dubuque was chartered in 1833 as the first city in Iowa. Law and government: Dubuque County is governed by a 3- member Board of Supervisors elected at large. The County Sheriff's Department is responsible for law enforcement in all areas of the county, especially those without their own police departments. The Sheriff's Dept. is located at the Dubuque City /County Law Enforcement Center. Geographic features: The county seat is Dubuque, Iowa, which is located along the Mississippi River in the east - central portion of the county. Eastern Dubuque County is markedly different from the western portion in that its topography is very uneven. The city of Dubuque and surrounding areas adjacent to the Mississippi River have many steep hills, bluffs, and ravines. Also, the eastern portion is more heavily wooded than the west, which is mostly rolling farmland. Dubuque County is widely -known for its impressive bluffs along the Mississippi River, which run along the entire length of the county's riverbanks. These form part of Iowa's Coulee Region, otherwise known as the Driftless Area. During the last ice age, much of the Mississippi Valley near Dubuque County was bypassed by glacial flows, which flattened the surrounding land in eastern Illinois, Wisconsin, and western Iowa, leaving the Driftless Area unusually rugged. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET — Dubuque County, Iowa Townships: Dubuque County is divided into seventeen townships: Cascade, Center, Concord, Dodge, Dubuque, Iowa, Jefferson, Liberty, Mosalem, New Wine, Peru, Prairie Creek, Table Mound, Taylor, Vernon, Washington, and Whitewater. Major Parks: The Iowa Department of Natural Resources administers 3 parks and preserve areas in the county: Little Maquoketa River Mounds State Preserve, Mines of Spain State Recreation Area/E. B. Lyons Nature Center, and White Pine Hollow State Forest. The Dubuque County Conservation Board administers 11 park and recreation areas in the county: Bankston Park, Fillmore Recreation Area & Fairways, Finley's, Landing Park, Heritage Trail & Pond, Interstate Power Forest Preserve, Massey Marina Park, Mud Lake, Park, New Wine Park, Pohlman Prairie Preserve, Swiss Valley Nature Park & Preserve, and Whitewater Canyon Park. The City of Dubuque and other towns in the county also operate public park systems of their own. (See Parks in Dubuque, Iowa) Major highways: U.S. Highway 20, U.S. Highway 52, U.S. Highway 61, U.S. Highway 151, Iowa Highway 3, Iowa Highway 32, and Iowa Highway 136 Adjacent counties: Clayton County (north), Grant County, Wisconsin (northeast) across the Mississippi River, Jo Daviess County, Illinois (east) across the Mississippi River, Jackson County (southeast), Jones County (southwest), and Delaware County (west). National protected areas include the Driftless Area National Wildlife Refuge (part) and the Upper Mississippi River National Wildlife and Fish Refuge (part). Economy: Historically, Dubuque County's economy was driven by heavy industry, including, among others, Deere and Company, and the now - defunct Dubuque Packing Company. However, within the last 15 years, and especially within the last 5 years, the economy has diversified a great deal. Now, alongside manufacturing, that still employs thousands of workers, many county residents work in the tourism/gaming, health care, education, publishing, and financial service sectors. The county's economy is largely centered on business and industry within the City of Dubuque. With the exception of industrial areas in Cascade, Dyersville, and Peosta, almost all of the rest of the county is rural and agriculturally- driven. Some of the key industries in Dubuque County include Deere and Company, Eagle Window & Door Co., Flexsteel Industries, Thermo - Fischer Scientific, Mi -T -M Corp., A.Y. McDonald Mfg. Co., Klauer Mfg., Georgia- Pacific, and Swiss Valley Farms, among others. Besides industry, large numbers of people work for the Dubuque Community School District, Mercy Medical Center - Dubuque, Medical Associates, Finley Hospital, Prudential Financial, the City of Dubuque, and Cottingham & Butler. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET — Dubuque County, Iowa Growth: Dubuque County has, in recent years, enjoyed tremendous job growth, low unemployment, and the rapid expansion of business and commerce. Alongside these positives, the county is beginning to see a growing population, as well. Up from a recent low of 86,403 in 1990, the population is now about 92,000 and growing. This can be seen especially in the West Side of the City of Dubuque, and in nearby Asbury and Peosta. This fact is especially significant, considering that all of the counties surrounding Dubuque County have fewer people now than they did in 1900, with the exception of Grant County, Wisconsin. Historical populations: Census Pop. %± 1900 56,403 n/a 1910 57,450 1.9% 1920 58,262 1.4% 1930 61,214 5.1% 1940 63,768 4.2% 1950 71,337 11.9% Census Pop. %± 1960 80,048 12.2% 1970 90,609 13.2% 1980 93,745 3.5% 1990 86,403 —7.8% 2000 89,143 3.2% Est. 2007 92,359 3.6% Cities include Asbury, Balltown, Bankston, Bernard, Cascade, Centralia, Dubuque, Durango, Dyersville, Epworth, Farley, Graf, Holy Cross, Key West, Luxemburg, New Vienna, Peosta, Rickardsville, Sageville, Sherrill, Worthington, and Zwingle. Colleges and universities include Capri Cosmetology College, Clarke College, Divine Word College, Emmaus Bible College, Loras College, Northeast Iowa Community College, University of Dubuque, and Wartburg Theological Seminary. Felderman Appraisals, Dubuque, Iowa Information gathered from numerous sources 3e4 11,4. 12.9 -•-2o.16,46.11 111116;6137 -.-600.0.11 I AUGUST 2012 LMR MONTHLY NONFARM EMPLOYMENT/HOURS & EARNINGS addiriow? (,mart., tuuraer Jam. AdiwriiT (5 15-281,35 15) METROLPOLITAN STATISTICAL AREA SEASONALLY ADJUSTED NONFARM EMPLOYMENT (TOTAL NONFARM) USA Aua-11 Sep-11 Oct-11 N8011 Oac.11 Jan-12 Fab-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Au0-1213 AME S 47.2 47.5 47.7 47.5 47.9 47.4 48.0 48.1 48.6 48.1 48.6 48.6 49.8 CEDAR RAPIDS 138.7 138.2 1375 137.6 1358 136.1 1358 1355 136.7 137.3 136.8 136.8 136.7 DES MOINES/W. DES MOINES 3183 318.3 320.0 319.8 3195 318.8 320.0 320.6 321.9 322.4 321.9 321.9 320.9 DUBUQUE 56.4 56.1 559 56.2 56.2 56.9 57.3 57.2 57.2 56.9 57.5 57.5 57.6 IOWA CITY 90.9 90.0 90.4 91.4 90.7 90.8 91.3 91.8 91.4 92.5 91.9 91.9 91.4 SIOUX CITY 73.4 73.3 73.4 73.4 73.4 73.2 74.1 73.2 74.3 74.7 75.8 75.8 75.1 WATERLOOCE DAR FALLS 90.6 90.5 90.9 90.4 90.6 90.5 90.4 90.6 92.0 91.3 91.9 91.9 92.4 IOWA'S HOURS & EARNINGS 5760,00 5760,00 5740,00 5720,00 574100 5680,00 5660.00 5640.00 AVerate Moldy E31111r199 • 400113 PrOdlIGIV $761700 572400 9 :419.^0 516 70 51420 517.70 51120 516.70 Aioioryil$ 00u69 ERIMITIO • nood. Producing M7.08 8 =J I414,,,I2o -M- 3e,14.M.1,11 62.0 et, 0.0 340 30, AVerage Weekly kicurS 0.03.P.130.100 41.2 8 Goods-producing Hours & Earnings Average Weekly Earnings S758.00 Average Hourly Earnings S18.67 Average Weekly Hours 40.6 Production workers for Iowa's goods producing sectors averaged $758.00 in August, down $4.79 compared to last month but still $33.70 more than one year ago. Decreases in manufacturing workers average workweek more than offset the gains in hourly earnings in the construction sector. Nondurable goods workers shed 48 minutes from the average workweek leading to a drop of $17.02 in weekly earnings. Durable goods production workers experienced a slight gain in their weekly schedule but averaged 42 cents less per hour. Construction workers, on the other hand, are up $22.79 compared to last month, and $51.51 versus one year ago. Production workers in the retail sector dropped $12.20 per week in August due to a seasonal drop of 18 minutes in weekly scheduling and a loss of 29 cents per hour. Within the financial sector, production workers had almost a full hour curtailed from the average workweek coupled with a drop of 44 cents in hourly earnings leading to a drop of $36.62 in weekly earnings. LABOR MARKET REVIEW 2 wwwtowaworkforce.onOrends STATE OF IOWA NONFARM EMPLOYMENT WORKFORCE DEVELOPMENT AUGUST 2012 LMR MONTHLY SEASONAL INDUSTRIES CONTRIBUTE TO SMALL EMPLOYMENT DROP 1502 1497 1492 ,,, 1487 51402 8 f, 1477 1472 1467 1462 AlW1411111 '41111 t3 8 C2 2z C cc z i 4 g 1:4 -4.- Sap,11 to Awl 2t, -0-S101,1,5.01 -L2n14 (SW 1 62A14.124) Total nonfarm employment shed a slight 400 jobs in August, lowering employment down to 1,49Z500, Employment in seasonal industries was especially hampered this month, partially due to an early paring of temporary employment. Local government helped offset some of the decline as schools prepared for the upcoming school year by bolstering employment early. Even with the loss, total nonfarm employment remains up compared to last year (+11,600 jobs), yet the pace of annual growth has started to wane with jobs being shed in three of the last four months. Seasonal job losses drove Iowa's employment this month. This was most evident in leisure and hospitality (-2,100), with the majority of the drop in recreational activities (-1,600) although accommodations and food services also shed employment this month (-500). Construction also pared jobs this month (-1,700). Some of this drop could be considered seasonal; however, this month's loss is also the fourth consecutive decrease and provides emerging evidence that new projects are being curtailed until the current economic outlook improves. Manufacturing was down 900 jobs with losses in both durable and nondurable goods. This is the third loss in the last four months for the super sector that has led the economic recovery. Alternatively, private sector gains this month were slight and service- related. Trade and transportation added jobs (+600) due primarily to transportation hiring, and financial activities increased again this month (+500) and has enjoyed a recent resurgence in the wake of the recession. Despite the monthly drop, manufacturing continues to fuel the year-over-year growth in Iowa (+8,400). Durable goods alone has experienced more growth than any other sector (+6,600), al hough nondurable goods is also up compared to last year (+1,800). Financial activities now leads all service sectors in growth (+2,500), followed by other services (+900). Annual losses have been relatively small and concentrated in leisure and hospitality (-900) and trade and transportation (-500). Nationally, total nonfarm employment advanced by 96,000 in August. Leisure and hospitality led all super sectors in jobs added (+34,000) followed by trade and transportation (+29,000) and professional and business services (+28,000). Losses were seen in manufacturing (-17,000) and government (-7,000). Far addidow? hybmarim amwer fart.. Mow& (515 -28 /5) vwwiowsworkforce.orgilrends LABOR MARKET REVIEW 1 CLICK TABLE FOR DATA r AUGUST 2012 LMR MONTHLY METROPOLITAN STATISTICAL AREAS N &:4.0 :5,:.4.0 314,1 312,1 310.0 Des Molnes /West Des Moines - Nonfarm Employment 8 o - 600.11 10 Aug -120 - San-10 to Aug -11 CLICK TABLE FOR DATA Ames MSA August Employment Total Nonfarm 12p 47,600 Total Nonfarm 11 45,300 "6, Change 1 Yr 5.0B% Noteworthy Expar ding and Contracting Indus rich (1 yr) Goods Producing 3.45 Government 3,33% r AUGUST 2012 LMR MONTHLY METROPOLITAN STATISTICAL AREAS N &:4.0 :5,:.4.0 314,1 312,1 310.0 Des Molnes /West Des Moines - Nonfarm Employment 8 o - 600.11 10 Aug -120 - San-10 to Aug -11 CLICK TABLE FOR DATA p - renmrnary rnrn Total nonfarm employment in the Des Moines area added 700 jobs this month raising the total to 322,800. All of the increase this month stems from public sector gains at the local level and related to education; private sectors combined were unchanged. Trade and transportation added 400 to lead all private sectors. The increase was fueled by gains in retail trade. Smaller gains this month were in financial sectors which added 200 jobs. Finance is up 1,600 jobs year- over -year ( +3.1 percent). Gains in employment services ( +200) were offset by losses in professional, scientific, and technical services. The only super sector losses this month included leisure and hospitality (-400) and construction ( -200). Compared to last August, job gains have been highest in financial activities ( +1,600), construction ( +1,000), and leisure and hospitality ( +900). Alternatively. losses have been concentrated in professional and business services (- 1,500) as firms and individuals become increasingly apprehensive to utilize extraneous services and trade and transportation ( -400) due to a slumping retail sector. a 00.0 :W.0 .0 .0 .0 3.0 idirio);811,2.42.0liaril)li, r.!)Iir4 .11100A042.111'00' (111. 01.9111 Dubuque - Nonfarm Employment 0 n - Se,-)•11 to Aug-12p - 5e{ -10 to Aug-11 CLICK TABLE FOR DATA Des Moines MSA August Employment Total Nonfarm 12p 322,800 Total Nonfarm 11 315,000 Change 1 Yr 1.19% Noteworthy Expanding and Contracting Industries (1 yr) Nat Ran & Construct 7,09 Prof & Business -3,92 p - renmrnary rnrn Total nonfarm employment in the Des Moines area added 700 jobs this month raising the total to 322,800. All of the increase this month stems from public sector gains at the local level and related to education; private sectors combined were unchanged. Trade and transportation added 400 to lead all private sectors. The increase was fueled by gains in retail trade. Smaller gains this month were in financial sectors which added 200 jobs. Finance is up 1,600 jobs year- over -year ( +3.1 percent). Gains in employment services ( +200) were offset by losses in professional, scientific, and technical services. The only super sector losses this month included leisure and hospitality (-400) and construction ( -200). Compared to last August, job gains have been highest in financial activities ( +1,600), construction ( +1,000), and leisure and hospitality ( +900). Alternatively. losses have been concentrated in professional and business services (- 1,500) as firms and individuals become increasingly apprehensive to utilize extraneous services and trade and transportation ( -400) due to a slumping retail sector. a 00.0 :W.0 .0 .0 .0 3.0 idirio);811,2.42.0liaril)li, r.!)Iir4 .11100A042.111'00' (111. 01.9111 Dubuque - Nonfarm Employment 0 n - Se,-)•11 to Aug-12p - 5e{ -10 to Aug-11 CLICK TABLE FOR DATA - pre101440, 9414 Total nonfarm employment in the Dubuque metro dropped 400 jobs in August and now rests at 57,000. Employment drops are typical in August and this month's decline is average. Although this is the second straight month for employment decreases, the metro has fared well year -over -year by adding 1,000 jobs (or 1.8 percent). Private services were responsible for all of the monthly change this month, paring 400 jobs. Retail trade shed 100 jobs due to decreased summer traffic. This loss was expected as private service remains up 700 jobs versus this time last year. Goods producing industries remain up 300 jobs compared to last year although they were unchanged this month. Government has also been unchanged both for the month and compared to last August. Far o,;ariou, rxa;racr- ramr1Morris (515-201 .S.1 15 LABOR MARKET REVIEW www.iowaworkforee.ortelrcnds 4 1 METROPOLITAN STATISTICAL AREAS AUGUST 2012 LMR MONTHLY p - prerimerafy.1414 Total nonfarm employment in the Ames metro area increased by 1,000 in August and lifted the total to 47,600. The increase stems largely from the university resuming classes and was expected. Private services, on the other hand, did not fare as well this month, shedding 400 jobs in private services and 100 jobs in goods producing sectors. The drop in private services was slightly higher than expected. Compared W last year the Ames area is up 2,300 jobs ( +5.1 percent) due primarily to growth in the private services sector ( +1,500). Goods- producing sectors have added 200 jobs while government is up 600 due to hiring at the state government education level. 51.0 50.0 49.0 48.0 3 47.0 40.0 '- e 45.0 44,0 43,0 Ames - Nonfarm Employment S z -sep•1 Au4•125 - 600.101044.441 cErar TABLE FOR DATA Fi>r addiriuu0 F84110001100, an;ra8al 10000:111111 2. (515-2 5151 Dubuque MSA August Employment Total Nonfarm 12p 57,000 Total Nonfarm 11 56,000 Change 1 Yr -0.70 Noteworthy Expanding and Contracting Industries (1 yr) Trade & Transport 4,24 Government 0.00 - pre101440, 9414 Total nonfarm employment in the Dubuque metro dropped 400 jobs in August and now rests at 57,000. Employment drops are typical in August and this month's decline is average. Although this is the second straight month for employment decreases, the metro has fared well year -over -year by adding 1,000 jobs (or 1.8 percent). Private services were responsible for all of the monthly change this month, paring 400 jobs. Retail trade shed 100 jobs due to decreased summer traffic. This loss was expected as private service remains up 700 jobs versus this time last year. Goods producing industries remain up 300 jobs compared to last year although they were unchanged this month. Government has also been unchanged both for the month and compared to last August. Far o,;ariou, rxa;racr- ramr1Morris (515-201 .S.1 15 LABOR MARKET REVIEW www.iowaworkforee.ortelrcnds 4 1 METROPOLITAN STATISTICAL AREAS AUGUST 2012 LMR MONTHLY p - prerimerafy.1414 Total nonfarm employment in the Ames metro area increased by 1,000 in August and lifted the total to 47,600. The increase stems largely from the university resuming classes and was expected. Private services, on the other hand, did not fare as well this month, shedding 400 jobs in private services and 100 jobs in goods producing sectors. The drop in private services was slightly higher than expected. Compared W last year the Ames area is up 2,300 jobs ( +5.1 percent) due primarily to growth in the private services sector ( +1,500). Goods- producing sectors have added 200 jobs while government is up 600 due to hiring at the state government education level. 51.0 50.0 49.0 48.0 3 47.0 40.0 '- e 45.0 44,0 43,0 Ames - Nonfarm Employment S z -sep•1 Au4•125 - 600.101044.441 cErar TABLE FOR DATA Fi>r addiriuu0 F84110001100, an;ra8al 10000:111111 2. (515-2 5151 p - pre0iminnry rhea Total nonfarm employment in the Cedar Rapids metropolitan statistical area shed 1,000 jobs from July, and stands at 136,100 jobs. Manufacturing slipped 100 jobs from July, and remains down 800 from one year ago. A seasonal over - the -month loss of 400 in local government coupled with decreases in natural resources and construction, trade, transportation and warehousing and leisure and hospitality contributed to a 1,400 -job decline in employment from one year ago. Information, financial activities, professional and business services and educational and health services all held steady. In thousands 142.0 140.0 138.0 130.0 134.0 132.0 Cedar Rapids - Nonfarm Employment 8 - Sep -11 to Atg -120 -Sep-1 01to At9-1 For addirioual Oaixtuariou, r�a;ruv.:10)(,a;is:k:0'r'ara (515-281 .5 754) www.iewawerk oree.argitrcniis LABOR MARKET REVIEW 3 Cedar Rapids MSA August Employment Total Nonfarm 12p 136,100 Total Nonfarm 11 137,500 Change 1 Yr -1.02% Noteworthy Expanding and Contracting Indust cs (1 yr) Wholesale Trade 1.96% Nat Res &Construct -6.55% p - pre0iminnry rhea Total nonfarm employment in the Cedar Rapids metropolitan statistical area shed 1,000 jobs from July, and stands at 136,100 jobs. Manufacturing slipped 100 jobs from July, and remains down 800 from one year ago. A seasonal over - the -month loss of 400 in local government coupled with decreases in natural resources and construction, trade, transportation and warehousing and leisure and hospitality contributed to a 1,400 -job decline in employment from one year ago. Information, financial activities, professional and business services and educational and health services all held steady. In thousands 142.0 140.0 138.0 130.0 134.0 132.0 Cedar Rapids - Nonfarm Employment 8 - Sep -11 to Atg -120 -Sep-1 01to At9-1 For addirioual Oaixtuariou, r�a;ruv.:10)(,a;is:k:0'r'ara (515-281 .5 754) www.iewawerk oree.argitrcniis LABOR MARKET REVIEW 3 AUGUST 2012 LMR MONTHLY ML4ROPOLIIAN STATISTICALABEAS Vaatt4144C ttrFall, • Nonfarm Err;'llofaant •■iiM'.!! 1'4S'!xx !19!:! ••S•! 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The initiative was launched with the goal of upgrading workers' skills, creating non - credit to credit career pathways, and ultimately filling local employer demand for talent in high -wage advanced manufacturing careers. 100 Best Communities for Youth 2012 - Because of its commitment to provide healthy, safe and caring environments for young people, Dubuque was named as one of the 100 best communities for youth. Dubuque was one of 37 communities to win the award five times. "The 100 Best Communities for Young People are taking bold and effective steps to help their youth graduate and lead healthy, productive lives," said Alma J. Powell, Chair, America's Promise Alliance. "Each community has proven that they are developing programs and implementing initiatives to provide young people with the essential resources they need to graduate from high school and succeed in college and a 21st century career." Dubuque Named All- America City 2012- Dubuque was named an All- America City by the National Civic League. Dubuque received this award based on its ambitious plan to ensure that more children are reading at grade level criteria by the end of third grade. The community was one of 14 awardees selected from 32 finalists. This is the nation's most prestigious and oldest civic recognition program. In addition to being named an All- America City, Dubuque was also named a Community Solutions PaceSetter by the Campaign for Grade -Level Reading for its exemplary leadership and innovation in addressing the vexing challenges that keep many low- income students from learning to read proficiently. Dubuque Recognized for Outstanding Economic Development 2012 - The greater Dubuque area has once again been ranked among the best of the best in economic development by Area Development Magazine, a leading executive publication covering corporate site selection and facility planning. The 2012 Leading Locations report ranked Dubuque in five categories. Rankings include: Top 100 Overall Cities: Dubuque ranked 16th; the only city in Iowa ranking in the top 25, Top 20 Midwest Cities: Dubuque ranked 3`d, Top 50 Small Cities: Dubuque ranked 7th, Top 25 Small Cities — Economic Strength Factors: Dubuque ranked 6th, and Top 25 Small Cities — "Recession Busting" Factors: Dubuque ranked 8th Greater Dubuque Development Business Retention & Expansion Program Scores Top Honors 2012 - Greater Dubuque Development received first place honors in the category for "Best Overall Business Retention and Expansion Program" from the Professional Developers of Iowa (PDI). Greater Dubuque Development's business retention and expansion program, InfoAction, has been active for more than 10 years with staff conducting over 250 on -site visits per year. During this time, Greater Dubuque Development Corporation has had a direct role with 83 private- sector expansion projects, totaling more than $311.5 million in capital investment, 3,289,480 square feet of construction, and at least 2,546 direct new jobs. Additionally, Greater Dubuque staff has provided direct assistance, on issues from A to Z, on more than 1,450 occasions, including 474 instances last year alone. This latest recognition represents the 7th award given to Greater Dubuque's InfoAction program in the past 3 years. Obtained from the Greater Dubuque Development Corporation Web Page National Recognition Rankings for Dubuque, Iowa Dubuque Honored Nationally for Cultural Diversity Efforts 2012 - The National League of Cities' National Black Caucus of Local Elected Officials has awarded the City of Dubuque second -place honors in its 2012 City Cultural Diversity Awards. The City of Dubuque received second place honors specifically for a community engagement program that is a collaborative effort between City staff, leaders, and residents designed to ensure that: 1) City staff and programs are effectively meeting the needs of a growing multicultural community, 2) residents of diverse racial and ethnic backgrounds are acknowledged and engaged in community life, and 3) City policy decisions include the perspectives of the range of cultures represented in our community. Over the past three years in particular, the City has allocated staff and resources to expand cultural programming in the community, to bring people of various cultural backgrounds together to solve community problems, and to develop cultural community groups to enhance involvement and communication between residents and staff. "We appreciate this national recognition of the hard work we, as a community, have done toward creating a more inclusive city," said Dubuque Mayor Roy D. Buol. "We continue to see demographic changes and growth in our community, and we acknowledge that there is an ever- present need to continue in our efforts." The awards honor community leadership in developing creative and effective programs to improve cultural diversity through a collaborative process with city officials, community leaders, and residents. Dubuque Ranks Second in Nation for Health System Performance 2012 - The Commonwealth Fund has ranked Dubuque second in the nation for overall health system performance. The second place ranking was behind only St. Paul, Minnesota. This survey comparing 306 communities tracked 43 indicators spanning four dimensions of health system performance: access, prevention and treatment, costs and potentially avoidable hospital use, and health outcomes. Dubuque Named 15th `Best - Performing" Small Metro 2011- The Milken Institute's 2011 Best - Performing Cities Index ranks the Dubuque metropolitan area 15th out of 179 small U.S. metropolitan areas. Dubuque moved up 40 spots from 2010's 55th place ranking. Greater Dubuque Development Wins Top Honors 2011 - Greater Dubuque Development's Dubuque Works and AccessDubuqueJobs.com were awarded top honors by MAEDC, Mid- America Economic Development Council for their workforce development programs. Dubuque Works was awarded first place for the collaborative effects of its seven local partners; Greater Dubuque Development, Telegraph Herald, Chamber of Commerce, Iowa Workforce, Northeast Iowa Community College, Dubuque Area Labor Management Council, and Community Foundation of Greater Dubuque, in successfully addressing workforce challenges and developing solutions to overcome the challenges. Our cutting -edge website, AccessDubuqueJobs.com, received second place honors as it assists millions of job seekers nationwide search for local jobs while allowing local employers the ability to attract a qualified workforce. Existing Business Program Cited for Excellence and Innovation 2011 - Greater Dubuque Development was recognized by Blane, Canada, Ltd. for its business retention and expansion efforts and was recognized as one of the best in the industry being awarded the Critical Business Partner award. This top honor was awarded to Greater Dubuque Development for the key role it plays with the region' s existing business base. Obtained from the Greater Dubuque Development Corporation Web Page National Recognition Rankings for Dubuque, Iowa Dubuque in the U.S. Top 10 for Job Growth 2011 - Moody's/Economy.Com ranked Dubuque in the Top 10 for the period 2010 -2012. Dubuque's "employment growth rank" scored 9th best out of 392 cities in the U.S. 100 Best Communities for Youth 2011- Because of its commitment to provide healthy, safe and caring environments for young people, Dubuque was named as one of the 100 best communities for youth. "The 100 Best Communities for Young People are taking bold and effective steps to help their youth graduate and lead healthy, productive lives," said Alma J. Powell, Chair, America's Promise Alliance. "Each community has proven that they are developing programs and implementing initiatives to provide young people with the essential resources they need to graduate from high school and succeed in college and a 21st century career." Dubuque Ranks #5 for Resiliency 2011 - Dubuque was named one of the most resilient cities in the nation. The city was ranked fifth out of 361 cities nationwide in a study of resiliency capacity that evaluates a community's economic capacity to bounce back from adversity, strength of demographics, and community connectivity. Dubuque Named One of the Ten Smartest Cities on the Planet 2011- Fast Company, a business magazine, recently named Dubuque among their Top 10 Smartest Cities on the Planet. The magazine focused on IBM's impact on the city and the 2009 declaration that Dubuque would become the "first integrated, smart city" in America, with interlocking systems watching the interplay between water, electricity and transportation. Dubuque was the only city in America on the list, sitting at No. 8, behind Songdo, South Korea; Lavasa, India; PlanIT Valley, Portugal; Skolkovo, Russia; Masdar, United Arab Emirates; Wuxi, China; and King Abdullah Economic City, Saudi Arabia. Ho Chi Minh City, Vietnam, and Nano City, India, rounded out the list. Dubuque Named Best Small City to Raise a Family 2010 - Citing solid average incomes, good educational prospects, low costs, short commute times, and high rates of home ownership, Forbes.com named Dubuque, Iowa, as The Best Small City to Raise a Family. "Dubuque's size puts it in a kind of sweet spot: large enough to be a center of industry, small enough to not be overcrowded. An economy that successfully diversified after the collapse of the local manufacturing industry contributes to an unemployment rate that's nearly half the national average, at 6.5 %, and a median household income of $48,779. That means most families have the jobs they need. They also don't have to spend a lot of time getting there: Only 2.6% of the population spends an hour or more getting to work," according to the article issued by Forbes.com 100 Best Communities for Youth 2010 - Because of its commitment to provide healthy, safe and caring environments for young people, Dubuque was named as one of the 100 best communities for youth. "The 100 Best Communities for Young People are taking bold and effective steps to help their youth graduate and lead healthy, productive lives," said Alma J. Powell, Chair, America's Promise Alliance. "Each community has proven that they are developing programs and implementing initiatives to provide young people with the essential resources they need to graduate from high school and succeed in college and a 21st century career." Obtained from the Greater Dubuque Development Corporation Web Page National Recognition Rankings for Dubuque, Iowa Dubuque Honored as World's 3rd Most Livable Community 2010 - Dubuque, Iowa, was named a third -place finalist and gold - standard community at the International Awards for Livable Communities. The city competed against communities spanning the globe. The LivCom Awards is the world's only competition for local communities that focuses on environmental management and the creation of livable communities. The objective of the awards is to encourage best practice, innovation, and leadership in providing a vibrant, environmentally sustainable community that improves the quality of life. The LivCom Awards were launched internationally in 1997 and are endorsed by the United Nations Environment Programme and the scheme is run as a UK Registered Charity. A new country has been represented at the LivCom Awards in each of the past eleven years, and now more 50 countries are regularly represented. Dubuque Named All -Star Community 2010 - The Iowa League of Cities recognized Dubuque as a 2010 All -Star Community, one of the most prestigious honors presented by the League to cities. Innovative efforts in areas such as urban renewal, development, preservation, service sharing and quality of life improvements determine the annual award winners. Dubuque was recognized specifically for its ongoing programs and models for sustainability. Dubuque's Economic Growth Potential 7th Best in U.S. 2010 - Business Facilities magazine gave Dubuque the nod as a Top Metro for Economic Growth Potential (under 200,000 population) in their 2010 Rankings Report. The key metric for the 2010 Rankings Report was growth. Special emphasis was given to the growth potential of each location's economic development strategy. The Economic Growth Potential category rewards the most effective overall strategy and its successful execution, identifying those who not only have survived the economic downturn but are poised to dominate the emerging New Economy. Dubuque Ranks #1 in Projected Job Growth 2010 - Dubuque surged ahead 156 places in the 2010 Forbes.com rankings, garnering the top spot as the #1 Best Smaller Metro for Projected Job Growth. The ranking is based on three -year annualized figures and compares 184 smaller metro areas with populations ranging from 55,000 to 245,000. Only 15 communities making the grade have smaller populations than Dubuque. Dubuque also pushed ahead to a 15th place overall ranking on the Best Small Places for Business and Careers, moving up 25 places from its 2009 ranking of 40th. Dubuque 3rd Best in U.S. for Job Growth 2010 - Dubuque's job growth has been cited as among the best in the entire U.S. by Careerbuilder.com. In comparing the 281 largest metros in the U.S., Dubuque's job growth of 2.1% ranked as third best in the nation. Of the 77 metros that saw job gains, Dubuque was one of just three that saw growth of better than 2 %. Dubuque Named Top Ten Most Affordable Places to Live and Work 2009 - Dubuque was named one of the ten 'Most Affordable Places to Live and Work' by Sperling's Best Places based on having a good supply of jobs, low cost of living, affordable housing, and a great quality of life. Obtained from the Greater Dubuque Development Corporation Web Page National Recognition Rankings for Dubuque, Iowa Dubuque Wins Award for Excellence in Economic Development 2009 - U.S. Commerce Secretary Gary Locke awarded Dubuque the 2009 Excellence in Economic Development Award for Excellence in Historic Preservation -led Strategies. Locke said Dubuque received the award for its commitment to research - based, market driven economic development in helping grow the local economy. "The city of Dubuque represents the best and brightest in 21st century economic development," Locke said. "Excellence Award winners exemplify the importance of supporting regional strategies to ensure American communities succeed in the global marketplace and create higher - skill, higher -wage jobs." "Dubuque sets the gold standard for a community taking charge of its economic destiny by revitalizing its downtown historic district in order to attract new businesses and dramatically increase tourism," Senator Tom Harkin said. "These revitalized areas, along with the city' s business - friendly environment, have made Dubuque a magnet for new businesses and industries. The 2009 Excellence in Economic Development award will continue to make Dubuque a role model for cities around the country." Dubuque Named to 'America's Top 100 Places to Live' 2009 - RelocateAmerica.com, a website that provides relocating consumers and area residents with access to local community resources, has included Dubuque in its annual listing of 'America's Top 100 Places to Live for 2009.' "With the increasing concern on our nation's economy and recovering housing market, we approached this year's list with a different lens than in previous years. We concentrated on the outlook for future growth and ability to rebound in the communities that we selected," said Steve Nickerson, president and CEO. "We looked at the local government and the business leadership in each community as we considered this year's winners. We selected communities with visionary leaders, improving or thriving economies including housing & realization of "green" initiatives." Dubuque Named a 'Crown Community' 2009 - American City & County magazine named Dubuque a 'Crown Community' in recognition of outstanding leadership in local government. Dubuque's nomination featured the partnerships and collaboration among the City of Dubuque, Greater Dubuque Development Corp., State of Iowa, Iowa Department of Economic Development, Iowa Workforce Development, Dubuque Initiatives, area colleges and universities, and local financial institutions that resulted in IBM's decision to locate a new global technology service delivery center that will employ 1,300 in downtown Dubuque. Dubuque Named `Most Livable' Small City in U.S. 2008 - Dubuque was named as the `Most Livable' Small City by the United States Conference of Mayors (USCM) 2008 Livability Awards Program during the USCM Annual Meeting. Dubuque's application featured the America's River project and the public /private partnerships and community involvement that transformed the Port of Dubuque into a destination that captures the historical, environmental, educational and recreational majesty of the Mississippi River. Obtained from the Greater Dubuque Development Corporation Web Page UNITED STATES EMPLOYMENT GROWTH 1.11020161 2.O% M OO DY'S RATING Aaa RISK - ADJUSTED RETURN 2011 -20111.1 1.06% 125 120 115 110 105 100 95 RELATIVE EMPLOYMENT PERFORMANCE (1997 =100) 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12F 13F 14F 15F 16F U.S. 2005 2006 2007 2008 2009 2010 2011 12,623 3.1 133.7 1.7 5.1 5.5 295.5 1.72 0.35 3,032 2,039 3.1 4.3 12,958 2.7 136.1 1.8 4.6 7.5 298.4 1.47 0.34 2,724 598 4.7 4.8 13,206 1.9 137.6 1.1 4.6 5.7 301.2 1.04 0.31 2,313 823 4.4 4.6 13,162 -0.3 136.8 -0.6 5.8 4.6 304.1 0.62 0.28 1,518 1,074 1.4 3.7 12,758 -3.1 130.9 -4.4 9.3 -4.8 306.8 0.44 0.11 1,979 1,413 0.2 3.3 13,063 2.4 129.9 -0.7 9.6 3.8 309.3 0.47 0.11 1,707 1,537 0.1 3.2 13,299 1.8 131.5 1.2 8.9 5.1 311.6 0.43 0.18 1,427 1,363 0.1 2.8 INDICATORS Gross domestic product (C$B) % change Total employment (mil) % change Unemployment rate Personal income growth Population (mil) Single- family starts (mil) Multifamily starts (mit) Mortgage originations ($ bit) Personal bankruptcies (000) 91 -day Treasury bill ( %) 10 -year Treasury bond ( %) 2012 2013 2014 2015 2016 13,589 13,870 14,420 15,035 15,555 2.2 2.1 4.0 4.3 3.5 133.7 135.7 138.5 142.1 145.1 1.7 1.4 2.1 2.6 2.1 8.1 7.7 6.9 6.1 5.6 3.5 32 6.6 6.6 6.0 313.9 316.9 319.9 323.0 326.1 0.53 0.80 1.44 1.58 1.58 025 0.37 0.44 0.44 0.41 1,693 1,249 920 934 1,012 1,181 1,108 1,126 1,150 1,188 0.1 02 0.3 1.4 3.4 1.8 2.2 3.4 4.4 4.8 STRENGTHS & WEAKNESSES ANALYSIS STRENGTHS • Very productive workforce. • Culture that attracts both skilled and unskilled immigrants. • High innovation and entrepreneurship. • Mobile labor force, flexible labor arrangements. WEAKNESSES • Persistently high unemployment. • Large budget and current account deficits. • Skewed income and wealth distribution. • Polarized and fractured political system. CURRENT EMPLOYMENT TRENDS % CHANGE YR AGO, 3 -MO MA Total Construction Manufacturing Trade Trans/Utilities Information Financial Activities Prof & Business Svcs. Edu & Health Svcs. Leisure & Hospitality Other Services Government 1.8 2.3 1.9 1.7 2.3 0.2 1.1 3.5 2.4 3.2 1.5 -1.1 1.7 1.3 1.6 1.3 2.2 0.6 1.2 3.5 2.1 2.9 1.3 -0.5 1.6 1.7 1.2 1.7 2.7 0.4 1.3 3.0 2.1 2.5 1.2 -0.4 FORECAST RISKS SHORT TERM i LONG TERM UPSIDE • Measures to contain the Europe's sovereign debt crisis bolster U.S. business confidence. • Pent -up demand lifts spending more than expected. DOWNSIDE • Europe's recession and weakening growth in emerging economies hurt U.S. exports. • U.S. credit rating downgraded after Congress fails to pass long -term fiscal sustainability. • The sequester is implemented, shaving 0.5 percentage point off GDP growth this year. Recent Performance. Beneath the recent data's temporary ups and downs, the U.S. economy con- tinues to expand at a modest pace. Since the recov- ery began, real GDP has grown at just over a 2% annualized rate. It is set to maintain that pace in the first quarter of 2013. Most encouraging, the job market is hold- ing firm. The underlying trend averages close to 175,000 net new jobs per month, with only gov- ernment now shedding positions. Even the long - struggling construction industry is adding jobs at an increasing pace. At the current rate of job gains, the unemployment rate should slowly decline, even with healthy labor force growth. On a technical note, the Bureau of Labor Statis- tics' annual benchmark revisions leave the payroll numbers somewhat out of sync with GDP data. GDP appears to be increasing unusually slowly rel- ative to employment. This means that either labor productivity growth is atypically weak, or GDP growth will eventually be revised higher, or some combination of the two. We will know more when comprehensive revisions to the GDP accounts are released in the summer. Fiscal austerity. Measurement issues aside, the economy's resilience is comforting given the mounting weight on growth from fiscal austerity. This was made clear when defense spending fell sharply in the fourth quarter of 2012, cutting 1.3 percentage points from GDP growth. The Depart- ment of Defense appears to be preparing for se- questration -the $1.1 trillion in across- the - board, 10 -year spending cuts set to take effect March f- or cuts nearly as draconian. Half the sequestration currently comes out of the defense budget. If the full sequester takes effect, the bit to real GDP this year will be about half a percentage point (see Chart 1). This estimate takes into account the lag between changes in budget authority and out- lays, and the multiplier impact on the rest of the economy of lower government spending. While policymakers may still avoid the sequester's hap- hazard budget slicing, any agreement will likely in- dude about the same amount of deficit reduction. The economy is also digesting the tax increas- es agreed to in the fiscal cliff deal that Congress reached at the start of this year. These tax hikes will shave 0.8 percentage point from GDP growth in 2013, 0.6 percentage point due to the expiration of the payroll tax holiday, and the rest from higher tax rates on higher- income households Judging by the recent slide in consumer confidence, house- holds were surprised by their smaller paychecks. Retailers will feel the fallout soon. Altogether, lower federal government spending and higher taxes are expected to reduce 2013 real GDP gains by just over a percentage point. (This also accounts for federal aid for rebuilding after Hurricane Sandy, which should add almost a quar- ter percentage point to growth). With such a heavy fiscal weight on the economy, it is hard to see how expansion could accelerate, at least in the first half of 2013 (see Chart 2). But barring an external shock, the economy should be able to hold its own until the weight begins to lift later this year. In 2012 the fiscal drag from federal, state and local government was just under a percentage point, yet the economy still grew about 2 %. (State and local government policies will not have much impact on growth this year.) This is our baseline growth rate for 2013. Monetary stimulus. With fiscal austerity ap- proaching its most intensive point, the Federal Reserve Board continues to apply a massive mon- etary stimulus. The Fed's open -ended quantitative easing policy, under which it purchases $85 billion in Treasury and mortgage securities per month, is (Continued next page) MOODY'S ANALYTICS / Precis U.S. Metro / Midwest / February 2013 1 UNITED STATES Sequester Is a Significant Weight on Growth Real GDP growth impact of full sequester, ppts 0.0 - 0.1 - 02 - 0.4 - 0.8 ■ ■ ■ ■ ■ ■ . I 12Q4 13Q1 13Q2 13Q3 13Q4 14Q1 Source: Moody'sAnalytics in full swing. The Fed's asset holdings, which in normal times would be dose to $1 trillion, now near $3 trillion, and are set to rise rapidly in com- ing months (see Chart 3). Policymakers have not explicitly said what would end their open -ended QE policy, but it would probably take an unemployment rate dos- ing in on 7 %. Since unemployment is still closer to 8 %, such a change is not likely before this time next year. By then, the Fed will have close to $4 trillion in securities on its balance sheet. Quantitative easing has boosted the economy via lower long -term interest rates. The 10 -year Treasury yield is near 2% and fixed mortgage rates are near a record low 3.5 %. The stock and housing markets have been big beneficiaries. Stock prices approach all -time highs, and home sales, housing construction and house prices are rising strongly. Refinancing is also vigorous, even among underwater homeowners, thanks to gov- ernment programs promoting such activity. Lower interest rates and rising asset prices are helping improve credit quality. Delinquen- cies on bank loans to businesses and consumers for credit cards and autos are as low as they have ever been. Even early -stage delinquen- cies (those 30 to 60 days late) on first mort- gage loans could not be better. Banks and other creditors are easing standards and credit is flowing more freely. Commercial and industrial lending in particular has taken off, and loans outstanding are fast approaching their previous record highs (see Chart 4). 14Q2 14Q3 14Q4 From Fiscal Stimulus to Fiscal Drag Federal discretionary fiscal policy contrib. to real GDP growth, % 3 2 1 0 1 - 2 - 3 - 4 08 09 Source: Moody'sAnalytics The Fed's aggressive actions continue to gener- ate sharp criticism, and even some dissent within the Federal Open Market Committee. Critics ar- gue that open -ended QE could fuel runaway in- flation and asset bubbles or result in a global cur- rency war, and that prudent savers who bought CDs are suffering because of near -zero interest rates. Some even worry that the Fed will lose money on its asset holdings when interest rates finally begin to rise. These worries cannot be dismissed, but they seem overdone, at this point Inflation and infla- tion expectations remain contained, and stock and house prices have a long way to go before a bubble becomes a legitimate concern. The dol- lar's value on a broad trade - weighted basis has not changed since the recession hit five years ago. Anyone holding cash or short -term securities is receiving a paltry return, but that is by design: The Fed appropriately wants more risk - taking. And the Fed could conceivably see a paper loss on its asset holdings, but this means little because the central bank can hold risk -free Treasury and mortgage securities to maturity. What could go wrong ?. Fiscal austerity causes the economy to struggle in coming months, but monetary stimulus measures ensure that it will keep expanding. The economy is expected to muddle along with growth near 2% through mid - 2013. As the weight from fiscal austerity lifts later in the year, so too will the economy. Growth will accelerate to almost 3% during the second half and approach 4% in 2014 and 2015. Stronger growth Fed's Balance Sheet Is Set to Expand More Composition of Federal Reserve's balance sheet, $ bil 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Jan -08 Jan -09 Jan -10 Sources: Federal Reserve, Moody'sAnalytics • Short-term lending to financial firms and markets • Operations focused on longer -term credit conditions • Rescue operations • Traditional portfolio Jan -11 Jan -12 Jan -13 10 11 12 13 will mean more jobs and lower unemployment. The economy should return to full employment, meaning a jobless rate below 6 %, by summer 2016. Risks to this sanguine outlook seem less dire than at any time since the Great Recession hit, but they remain considerable. Most worrisome is the possibility that Washington will misstep again. Threats to shut down the government or not pay its bills have not worked politically and are thus less likely to be used in coming budget negotiations, but such tactics cannot be ruled out. Less likely but more dangerous is the chance law- makers would carry out such threats, even briefly. Politics could also undo an uneasy respite in the European debt crisis. The weakest big links in the euro zone, Spain and Italy, appear vulner- able to a political misfire. Spain's Prime Minister Mariano Rajoy is embroiled in a financial scan- dal, and Italy's respected Prime Minister Mario Monti will leave after the coming election. Efforts to pressure Iran to curtail its nuclear weapons program may go wrong. Oil prices, already edg- ing higher as a result of a better global economy, could spike if there is conflict with Iran. Nothing will do more damage to the U.S. economy faster. The next six months will determine the econo- my's prospects. The economy will grow slowly as it absorbs higher taxes and government spending cuts, and it will be vulnerable to anything that goes wrong. But if nothing major does, the U.S. will enjoy stronger growth by this time next year as the fiscal drag fades and the health of the pri- vate economy shines through. Credit Spigot Opens Commercial and industrial loans 1,600 1,500 - 1,400 - 1,300 - 1,200 - 1,100 - 1,000 Loans outstanding $ bil (L) Delinquency rate, % (R) 06 07 08 09 10 11 12 Sources: Federal Reserve, Moody'sAnalyttcs 5 4 3 2 1 2 MOODY'S ANALYIICS / Precis U.S. Metro / Midwest / February 2013 I I I I =Sandy - =Obamacare =Payroll tax & UI - =Other stimulus =Tax rebate checks =Sequester =Bush taxes over $400k =Recovery Act =Cash for clunkers —Total fiscal policy 08 09 Source: Moody'sAnalytics The Fed's aggressive actions continue to gener- ate sharp criticism, and even some dissent within the Federal Open Market Committee. Critics ar- gue that open -ended QE could fuel runaway in- flation and asset bubbles or result in a global cur- rency war, and that prudent savers who bought CDs are suffering because of near -zero interest rates. Some even worry that the Fed will lose money on its asset holdings when interest rates finally begin to rise. These worries cannot be dismissed, but they seem overdone, at this point Inflation and infla- tion expectations remain contained, and stock and house prices have a long way to go before a bubble becomes a legitimate concern. The dol- lar's value on a broad trade - weighted basis has not changed since the recession hit five years ago. Anyone holding cash or short -term securities is receiving a paltry return, but that is by design: The Fed appropriately wants more risk - taking. And the Fed could conceivably see a paper loss on its asset holdings, but this means little because the central bank can hold risk -free Treasury and mortgage securities to maturity. What could go wrong ?. Fiscal austerity causes the economy to struggle in coming months, but monetary stimulus measures ensure that it will keep expanding. The economy is expected to muddle along with growth near 2% through mid - 2013. As the weight from fiscal austerity lifts later in the year, so too will the economy. Growth will accelerate to almost 3% during the second half and approach 4% in 2014 and 2015. Stronger growth Fed's Balance Sheet Is Set to Expand More Composition of Federal Reserve's balance sheet, $ bil 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Jan -08 Jan -09 Jan -10 Sources: Federal Reserve, Moody'sAnalytics • Short-term lending to financial firms and markets • Operations focused on longer -term credit conditions • Rescue operations • Traditional portfolio Jan -11 Jan -12 Jan -13 10 11 12 13 will mean more jobs and lower unemployment. The economy should return to full employment, meaning a jobless rate below 6 %, by summer 2016. Risks to this sanguine outlook seem less dire than at any time since the Great Recession hit, but they remain considerable. Most worrisome is the possibility that Washington will misstep again. Threats to shut down the government or not pay its bills have not worked politically and are thus less likely to be used in coming budget negotiations, but such tactics cannot be ruled out. Less likely but more dangerous is the chance law- makers would carry out such threats, even briefly. Politics could also undo an uneasy respite in the European debt crisis. The weakest big links in the euro zone, Spain and Italy, appear vulner- able to a political misfire. Spain's Prime Minister Mariano Rajoy is embroiled in a financial scan- dal, and Italy's respected Prime Minister Mario Monti will leave after the coming election. Efforts to pressure Iran to curtail its nuclear weapons program may go wrong. Oil prices, already edg- ing higher as a result of a better global economy, could spike if there is conflict with Iran. Nothing will do more damage to the U.S. economy faster. The next six months will determine the econo- my's prospects. The economy will grow slowly as it absorbs higher taxes and government spending cuts, and it will be vulnerable to anything that goes wrong. But if nothing major does, the U.S. will enjoy stronger growth by this time next year as the fiscal drag fades and the health of the pri- vate economy shines through. Credit Spigot Opens Commercial and industrial loans 1,600 1,500 - 1,400 - 1,300 - 1,200 - 1,100 - 1,000 Loans outstanding $ bil (L) Delinquency rate, % (R) 06 07 08 09 10 11 12 Sources: Federal Reserve, Moody'sAnalyttcs 5 4 3 2 1 2 MOODY'S ANALYIICS / Precis U.S. Metro / Midwest / February 2013 EMPLOYMENT GROWTH MII02016 1.5% RELATIVE COST BUSINESS I 96% U.5..100% RISK - ADJUSTED RETURN 2011 -204.1 0.36% 125 120 115 110 105 100 RELATIVE EMPLOYMENT PERFORMANCE (1997 =100) 95 1 97 98 99 00 01 02 03 04 05 06 U.S. 2005 2006 2007 2008 2009 2010 2011 NDICATORSI 2,653.7 2,668.5 2,702.8 2,659.9 2,526.4 2,619.0 2,652.6 31,412 31,623 31,729 31,515 30,000 29,841 30,139 a8 0.7 0.3 -0.7 -4.8 -a5 1.0 5.4 5.0 5.1 6.0 9.6 9.4 8.4 3.1 5.6 4.8 4.7 -4.7 3.2 5.5 65,752 66,029 66,294 66,524 66,748 66,972 67,145 -93.5 -57.5 -94.6 -122.2 -103.6 -73.3 -84.1 278,668 209,318 153,760 93,225 74,881 75,371 70,524 75,228 70,058 57,975 44,507 25,463 28,145 32,206 295.1 302.6 303.5 295.4 284.6 274.9 267.0 439,849 380,147 346,481 273,169 379,067 298,198 219,397 3,356.0 3,354.5 3,250.6 2,801.0 2,227.9 2,381.7 2,669.5 475,890 353,245 215,301 268,748 338,395 379,175 345,242 07 08 09 10 11 12F 13F 14F 15F 16F NCR 2012 2013 2014 2015 2016 2,702.5 2,755.6 2,856.5 2,965.9 3,050.1 30,454 30,737 31,258 31,937 32,503 1.0 0.9 1.7 2.2 1.8 7.3 7.0 6.4 5.5 5.0 3.6 2.8 6.4 6.4 5.7 67,316 67,596 67,896 68,191 68,474 -73.8 22.9 312 13.0 7.7 89,821 131,045 213,461 242,877 245,347 51,777 59,564 62,213 61,362 59,832 265.8 267.1 279.2 296.7 311.7 297,330 212,125 137,357 138,375 153,796 2,881.1 3,109.2 3,384.6 3,544.5 3,237.9 302,553 256,131 232,174 238,780 242,900 Gross regional product (C$B) Total employment (000) °o change Unemployment rate Personal income growth Population (000) Net migration (000) Single- family permits Multifamily permits House price index (1980Q1 =100) Mortgage originations ($M) New vehicle registrations (000) Personal bankruptcies STRENGTHS & WEAKNESSES ANALYSIS STRENGTHS • Less income inequality than other regions. • Productive and skilled manufacturing workforce • Low business costs, especially for energy. • High housing affordability. WEAKNESSES • Poor population trends on account of persistent out- migration. • Relatively low share of high - growth industries. CURRENT EMPLOYMENT TRENDS % CHANGE YR AGO, 3 -MO MA Apr 12 Aug 12 Dec 12 0.9 1.1 1.2 0.9 -0.4 0.4 3.2 3.1 2.6 0.2 0.1 0.4 0.8 1.4 1.2 -0.5 -0.3 -1.4 -0.4 0.6 1.2 2.9 3.3 2.4 1.7 1.6 2.0 0.2 0.4 1.2 0.2 -0.1 -0.1 -1.3 -0.3 -0.2 Total Construction Manufacturing Trade Trans/Utilities Information Financial Activities Prof & Business Svcs. Edu & Health Svcs. Leisure & Hospitality Other Services Government FORECAST RISKS SHORT TERM i LONG TERM UPSIDE • Better income growth persists, resulting in more consumer industry jobs than expected. DOWNSIDE • Exports take longer to recover, hurting manufacturing and downstream industries. • Consumers respond to tax increases with a lag, and auto sales nose -dive. • Foreclosures take longer to dear, dampening construction rebound. Recent Performance. The Midwest's recovery is holding its own, despite the soft data in the fourth quarter. A sharp drop in defense spending and pullback in inventory accumulation weighed on output. Employment and manufacturing weakness was concentrated in the fall, as factory output and job growth accelerated into year's end. The region's businesses appear undeterred by the January tax hikes or probable large federal spend- ing cuts. Job separations are down since the spring, and the job openings rate is at a decade high. This indicates that there is still strong demand for work- ers in certain areas such as technology, engineering, energy and skilled manufacturing. Incomes. Below- average unemployment helps ex- plain why labor earnings have remained strong even as the mix of job creation has turned less favorable; the Midwest's two highest - paying industries, manufacturing and government, cut workers last quarter. Yet average hourly earnings were up dose to 3% on a year -ago basis, a full percentage point more than those nationwide. Accelerated bonuses and dividends also sup- ported income late last year as firms rushed pay- ments ahead of the jump in tax rates set to take effect in January. Although the ripple effects from slowing in manufacturing have hurt the region's service providers, office -using industries, not re- tail and leisure /hospitality, have borne the brunt, as temporary hiring has dropped off. Almost the entire weakening in professional /business services employment, which is faring worse than in other regions, can be traced to the administrative and support subsector, which includes temporary help. Manufacturing. How quickly office -using indus- tries bounce back depends on whether manufactur- ing strengthens. Factory output roared back late last year, and signs this quarter point toward further ac- celeration, with gains concentrated in the Great Lakes states. The ISM- Chicago index increased the most in a year and a half in January and posted another gain in February. The gauge is especially sensitive to auto output, which jumped in late 2012 as produc- ers responded to thinner stocks and strong demand. By no means is consumer spending out of the woods when it comes to the impact of higher taxes, but it is encouraging that auto sales have not declined. Compared with the other regions, the Midwest is more than twice as reliant on auto manufacturing for employment, and Indiana, Ohio and Michigan will benefit the most if the industry continues to impress. Housing. Though Midwest manufacturing is on the mend, the housing upturn is about to slow. Household formation is recovering more quickly in the Midwest, and the region has by far the most affordable housing. Though both are important determinants of housing demand, hurdles remain. Because most midwestern states require that foreclosures go through the courts, the process of Bearing deeply discounted distress sup- ply is less advanced. For the first time since before the recession, foreclosures in the Midwest, at 15 per 1,000 households, are the highest of any region. Con- sequently, the rebound in housing construction will be slower in Illinois, Michigan, Missouri and Ohio, where distress transactions account for one -third or more of sales. These states accounted for nearly two- thirds of the region's housing stock but just two -fifths of its housing starts in late 2012. The Midwest's outlook has changed little since the fall and it is expected to underpetform the nation in jobs, output and income this year Job growth ought to pick up as the year progresses, and the perfor- mance gap with other regions should nan'ow in 2014 as the housing recovery quickens. Longer term, low energy costs and deep pockets of specialized expertise will work in the region's favor, but middling popula- tion trends will constrain expansion. Aaron D. Smith February 2013 MOODY'S ANALYTICS / Precis U.S. Metro / Midwest / February 2013 3 It is estimated that more than 8,000 people work in downtown DUBUQUE. This illustrates the largest of those employers. IRoshek Building IBM -1,300 1 American Trust 2 Arcade Business Camplex (numeraus entities) 3 Cottingham & Butler 4 Diamond Ja /Peninsula Gaming 5 Dubuque Bank & Trust 6 Dubuque City Hall 7 Dubuque County Caurthause a 9 10 11 12 13 14 Dubuque Data Services Historic Federal Building (numerous entities) Holiday Inn Hotel Julien Dubuque Jeld -Wen McGraw -Hill Morrisan Bras. 15 Notional Mississippi River Museum & Aquarium /Dubuque County Historical Society 16 NICC /IWD 17 Platinum Hospitality /Grand Har- bor Resart/Grond River Center la Platinum Services 14 PrescattSchaal 20 Prudential Retirement 21 RSM McGladrey /Hartig Drug Corp. 22 Spahn & Rase 23 Steele Capital Management 24 US Bank 25 TriCar Insurance 26 WCI /Telegraph Herold 27 WS live Downtown DUBUQUE Retail and Service Directory ol - -.A L 1 q -; Gi I . N < Roshek Building IBM - 1,300 EU 39 -371 t 0 168' 69 • UL - _AMU A Sedated Due Cat used Boob Fendon Race Beata( Outside the Una Art Gallery Shamrock Imports Shamrock Jewelers Sweet Memories Yeruings BegingGl Body & Sod Manna lava Wbtl d Cat Marellds Cedes Beauty & Berber Shop Dance1234 Fischer tooling Lanes Reliable Technology Supreme Subs FloorCTarings Zen Stud's E liteaCat E Sdsas Retaurant E The Cotton Cabin Quit Shop F Dubuque Lana F Nimble Wits K Pepper Sprout 0 L'ien's Oriental American 12 F OTOde Businzs Supply K The Bank Bar &Gale Market 13 Company K The Mss ion Thrift Shop P Dubuque Farmers' Market 14 F Yam Soup L Chocdaterie Stem It Q Smith Cyde 14 G Freddie's Popcorn Corked Q Total Seven 15 G L May fatty L Crust & R R CarpetC cations 15 G Rker Lights toobton L H & 1 Fahion Emporium R Heritage Lighting &Fire- 15 H Cheryl -Anal Bridal & L McCc'dewdes place 17 Tuxedo Shop L The Hub R Locksmith &press 17 H D &B Engmad Gifts rd -, b-t 1 toys &Girls Oubof Greater 17 H Freds Barber Shop 1,1 [hiSn Dd uxe Berber Shop Dubuque 18 H ienhance 1.1 Foy vetJnamates 2 Carnegie -stout Pubic 19 H Kann Doaklain Street a1 Fringe Salon Library 20 Station M Gordon Toggery 3 Telegraph Herald 21 H Off Minor M Hammertime 4 Premier Linen &Dry 22 H Theloy of Photogmphy M Knippd's Rdigious Goods Oeanin4 23 H Yen Chingt M Meson Dbfon Saloon 5 PC)t'Ott ✓e &City Services 24 1 Afforded. Tax Service M Mystique Tattoo S The FrIt 11-1nn 1 Fdbo ambers Pbueria N Camas Products ' The .h� �FFp 25 1 Mode Barrel Subs N Calhy's Tressur6 1 *mirage Solon Day Spa N Dubuque Photography 9 HJttetgqus 25 1 Grahams Sttle Stop N The Lift 10 NI Think .ie t K Capri Reti Sbre N ✓nny +annuchit 11 E1&ck -:Mt Vu1t54- K Flowers on Main O Aragon Tap 11 Our .beet Li,-..e Hay; _1 K bnawelcome Center 0 Asian Gourmet Restaurant 11 The -:al. l Eran 12 K Jimmy John's 0 Farmers' Market Food Store 12 mon} S Otte Hour :1 unforgirable Record: Maggie Kelly's Gotta HEN! It Twisted RootYoga Ffohl Windom Cocerings A& W RaSteuraat O ky Doty Food &Ges G alahad Phobgnphy Pinnacle Cdlular & Satellite The Jewelry Box Atisticdeaners HSrtig Dag Store Paul's eigGsmeTap MiradeCar Wash K ennett Sports Shot Toner Inn Fke Flags Center - Anna &Theater Dubuque355Bulient Journal The Lounge Doha's Con noco US Bank Dubuque Museum of Art Knights of Columbus Hall teidgeChristian Chuch 32 FirstCOngegatbnd UCC 52 Hotel Julian Dubuque/Caro- 33 MaonicTem pie lint Rataurandrotosa Spa 34 St Marks Community 53 Lotone Center 54 DubuqueArtCenter 35 Murd Inspirations 54 Fido Fit 35 PreglerChiopractic 55 Old Main Market Et 37 Marion Restaurant Consignment 38 New Whitt Florist 55 Herbst upholstery 39 The Source 57 CanfieldJnn /Reinbon 40 Global Goods -a Per real Lounge mom 58 McDondds 41 American Trust & Ssvinty 59 Anytime Fitness Bank 50 Grand Opera House 42 Tonn Clacklnn 51 DubuqueAcade ray Ballet 43 Adobds t. ex ctin 52 Premier Bank Restaurant 53 Chuck &ids 44 Star Uniform 54 Sherwin Wiliams_/Mautx 45 Pkkermaa's Paint Store 45 Northemticnacommunity 55 The Sdvation Army College 55 Scott hinting 47 united WyMllaest Famiy 57 PetMed Services 51 uncommon Kitchens 48 Holiday Inn 59 Potpourri GA Shop 49 CapriCdlege Student Salon 70 eree2ys Cafe 50 Cesserda TOGO 71 bra Street Market 51 Needy New Boutique 72 DubuqueCity Nell 73 St Vincentde Pad Pktsi Store 74 Dubuque Beak &Trost 75 Dubuque Multkulturel Center 75 Colts Drum COrp/Vfrnr Farmers' Markel 77 Prescott Elementary Schod 78 Toys Done Right 79 Dubuque Fire Department 80 Cue Matert Biliards al common Cents resale 82 Hendricks Feed It Seed 83 The GrandTap 84 old Jai Dubuque HSbry Museum 85 Dubuque County Courthouse as Tri -Stet Dueprint & Framing 57 ereezrs Pub SS Ken'sAu KeflAuto Body 89 Caf atom( Marble 90 DottiCS Cafe 91 Sh aCredit 92 Sunshine Famiy Restaurant CENSUS STATISTICS for Iowa, Dubuque County and City of Dubuque (2012) People QuickFacts Dubuque Iowa Dubuque County Population, 2012 estimate NA 3,074,186 NA Population, 2011 estimate 58,234 3,064,097 94,648 Population, 2010 (April 1) estimates base 57,637 3,046,857 93,653 Population, percent change, April 1, 2010 to July 1, 2011 1.0% 0.6% 1.1% Population, 2010 57,637 3,046,355 93,653 Persons under 5 years, percent, 2010 6.2% 6.5% 6.3% Persons under 18 years, percent, 2010 21A% 23.9% 23.5% Persons 65 years and over, percent, 2010 16.5% 143% 153% Female persons, percent, 2010 51.6% 50.5% 50.6% White persons, percent, 2010 (a) 91.7% 93% 94.5% Black persons, percent, 2010 (a) 4.0% 2.9% 2.7% American Indian and Alaska Native persons, percent, 2010 (a) 0.3% 0.4% 0.2% Asian persons, percent, 2010 (a) 1.1% 1.7% 1.1% Native Hawaiian and Other Pacific Islander, percent, 2010 (a) 0.5% 0.1% 0.3% Persons reporting two or more races, percent, 2010 1.8% 1.8% 1.2% Persons of Hispanic or Latino origin, percent, 2010 (b) 2.4% 5.0% 2.0% White persons not Hispanic, percent, 2010 902°/ 88.7% 923% Living in same house 1 year & over, percent, 2007 -2011 813% 843% 853% Foreign born persons, percent, 2007 -2011 2.4% 4.2% 1.8% Language other than English spoken at home, percent age 5 +, 2007 -2011 3.9% 7.0% 3.3% High school graduate or higher, percent of persons age 25+, 2007 -2011 903% 903% 90.5% Bachelor's degree or higher, percent of persons age 25+, 2007 -2011 27.1% 243% 25.5% Veterans, 2007 -2011 4,268 239,229 7,069 Mean travel time to work (minutes), workers age 16+, 2007 -2011 143 18.6 16/ Housing units, 2010 25,029 1,336,417 39,273 Homeownership rate, 2007 -2011 673% 733% 74.4% Housing units in multi -unit structures, percent, 2007 -2011 29.6% 18.5% 21 8% Median value of owner - occupied housing units, 2007 -2011 $124,700 $121,300 $140,200 Households, 2007 -2011 23,719 1,219,137 36,984 Persons per household, 2007 -2011 2.27 2.41 2.41 Per capita money income in the past 12 months (2011 dollars), 2007 -2011 $24,147 $26,110 $25,525 Median household income, 2007 -2011 $43,362 $50,451 $49,663 Persons below poverty level, percent, 2007 -2011 113% 113% 9.3% Business QuickFacts Dubuque Iowa Dubuque County Private nonfarm establishments, 2010 NA 80,801 2,738 Private nonfarm employment, 2010 NA 1,253,095 50,579 Private nonfarm employment, percent change, 2000 -2010 NA -03 1.2 Nonemployer establishments, 2010 NA 201,448 5,952 Total number of firms, 2007 5,217 259,931 8,102 Black -owned firms, percent, 2007 S 0.8% 1.1% American Indian- and Alaska Native -owned firms, percent, 2007 F 0.2% F Asian -owned firms, percent, 2007 1.1% 1.1% 0.7% Native Hawaiian and Other Pacific Islander -owned firms, percent, 2007 F 0.1% F Hispanic -owned firms, percent, 2007 F 0.9% F Women -owned firms, percent, 2007 222°/ 25.5% 21 7% Manufacturers shipments, 2007 ($1000) 1,059,857 97,592,051 4,711,245 Merchant wholesaler sales, 2007 ($1000) 1,079,861 41,068,338 1,847,726 Retail sales, 2007 ($1000) 1,156,714 39,234,649 1,433,461 Retail sales per capita, 2007 $20,219 $13,172 $15,538 Accommodation and food services sales, 2007 ($1000) 125,194 4,737,719 145,685 Building Permits, 2011 NA 7526 410 Geography QuickFacts Dubuque Iowa Dubuque County Land area in square miles, 2010 29.97 55,857.13 608.31 Persons per square mile, 2010 1,923.3 54.5 154 FIPS Code 22395 19 61 Metropolitan or Microploitan Statistical Areas Dubuque, IA Metro Area (a) Includes persons reporting only one race. (b) Hispanics may be of any race, so also are included in applicable race categories. FN: Footnote on this item for this area in place of data NA: Not available D: Suppressed to avoid disclosure of confidential information X: Not applicable S: Suppressed; does not meet publication standards Z: Value greater than zero but less than half unit of measure shown F: Fewer than 100 firms Source: US Census Bureau State & County QuickFacts http:!lquickfacts. census .govlgfdlstatesl19 /1922395.html Site Map 430 Garfield Ave, Dubuque, IA, 52001 Ring: 1, 3, 5 Miles Prepared by Robert FeldermanRobert Latitude: 42.512949 I. onaitude: - 90.55472 June 28, 2013 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 1 mile radius Prepared by Robert FeldermanRobert Latitude: Longitude 2000 2010 2000 -2010 Annual Rate Population Households Housing Units Population by Race Total Population Reporting One Race White Black American Indian Asian Pacific Islander Some Other Race Population Reporting Two or More Races Total Hispanic Population Population by Sex Male Female 14,481 14,151 -0.23% 5,696 5,611 -0.15% 6,317 6,257 -0.10% Number Percent 14,150 100.0% 13,741 97.1% 11,765 83.1% 1,431 10.1% 76 0.596 129 0.9% 168 1.296 172 1.296 409 2.996 584 4.196 7,183 50.896 6,968 49.2% Population by Age Total 14,148 100.096 Age 0 - 4 1,132 8.0% Ages -9 932 6.696 Age 10 - 14 796 5.6% Age 15 -19 1,217 8.696 Age 20 - 24 1,813 12.8% Age 25 - 29 1,256 8.996 Age 30 - 34 934 6.6% Age35 -39 715 5.196 Age 40 - 44 776 5.5% Age 45 - 49 960 6.896 Age 50 - 54 929 6.6% Age 55 - 59 769 5.496 Age 60 - 64 582 4.1% Age 65 - 69 355 2.596 Age 70 - 74 292 2.1% Age 75 - 79 263 1.996 Age 80 - 84 197 1.4% Age 85+ 234 1.796 Age 18+ Age 65+ 10,791 1,341 Median Age by Sex and Race/Hispanic Origin Total Population 29.7 Male 29.3 Female 30.3 White Alone 32.7 Black Alone 20.5 American Indian Alone 31.6 Asian Alone 28.6 Pacific Islander Alone 21.8 Some Other Race Alone 24.4 Tw o or More Races 11.8 Hispanic Population 21.9 Data Note: Hispanic population can be of any race. Census 2010 medians are computed from reported data distributions. Source: U.S. Census Bureau, Census 2010 Summary File 1. Eri converted Census 2000 data into 2010 geography. 76.396 9.5% June 28, 2013 03313 Es:i Pagel of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 1 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: -90.66472028 Households by Type Total Households with 1 Person Households with 2+ People Family Households Husband -w ife Families With Ow n Children Other Family (No Spouse Present) With Ow n Children Nonfamily Households All Households with Children Multigenerational Households Unmarried Partner Households Male- female Same-sex Average Household Size Family Households by Size Total 2 People 3 People 4 People 5 People 6 People 7+ People Average Family Size 5,611 100.0% 2,155 38.4% 3,456 61.6% 2,914 51.9% 1,613 28.7% 626 11.2% 1,300 23.2% 865 15.4% 542 9.7% 1,634 29.1% 153 2.7% 592 10.6% 556 9.9% 36 0.6% 2.35 2,913 100.0% 1,210 41.5% 721 24.8% 506 17.4% 274 9.4% 109 3.7% 93 3.2% 3.11 Nonfamily Households by Size Total 2,697 100.0% 1 Person 2,155 79.9% 2 People 418 15.5% 3 People 61 2.3% 4 People 37 1.4% 5 People 16 0.6% 6 People 9 0.3% 7+ People 1 0.0% Average Nonfamily Size 1.33 Population by Relationship and Household Type Total 14,151 100.0% In Households 13,167 93.0% In Family Households 9,576 67.7% Householder 2,980 21.1% Spouse 1,653 11.7% Child 4,064 28.7% Other relative 369 2.6% Nonrelative 510 3.6% In Nonfamily Households 3,591 25.4% In Group Quarters 984 7.0% Institutionalized Population 204 1.4% Noninstitutionalized Population 780 5.5% Data Note:Households with children include any households with people under age 18, related or not Multigenerational households are families with 3 or more parent-child relationships. Unmarried patter households are usually classified as nonfamily households unless there is another member of the household related to the householder. Milugeneratonal and unmarried partner households are reported only to the tract level. Esri estimated block group data, which is used to estimate polygons or non-standard geography. Average family size excludes nonrelatves. Source: U.S. Census Bureau, Census 2010 Summary Ale 1. June 28, 2013 02313 Esri Page 2 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 1 mile radius Prepared by Robert FeldermanRobert Ib_ide: 42.512949138 de: -90.66472028 Family Households by Age of Householder Total Householder Age 15 - 44 Householder Age 45 - 54 Householder Age 55 - 64 Householder Age 65 - 74 Householder Age 75+ Nonfamily Households by Age of Householder Total Householder Age 15 - 44 Householder Age 45 - 54 Householder Age 55 - 64 Householder Age 65 - 74 Householder Age 75+ 2,913 100.0% 1,480 50.8% 636 21.8% 397 13.6% 208 7.1% 192 6.6% 2,698 100.0% 1,155 42.8% 548 20.3% 486 18.0% 223 8.3% 286 10.6% Households by Race of Householder Total 5,610 100.0% Householder is White Alone 4,919 87.7% Householder is Black Alone 459 8.2% Householder is American Indian Alone 30 0.5% Householder is Asian Alone 42 0.7% Householder is Pacific Islander Alone 26 0.5% Householder is Some Other Race Alone 52 0.9% Householder is Two or More Races 82 1.5% Households with Hispanic Householder 163 2.9% Husband -wife Families by Race of Householder Total 1,614 100.0% Householder is White Alone 1,512 93.7% Householder is Black Alone 44 2.7% Householder is American Indian Alone 7 0.4% Householder is Asian Alone 13 0.8% Householder is Pacific Islander Alone 15 0.9% Householder is Some Other Race Alone 14 0.9% Householder is Two or More Races 9 0.6% Husband -wife Families with Hispanic Householder 50 3.1% Other Families (No Spouse) by Race of Householder Total 1,300 100.0% Householder is White Alone 992 76.3% Householder is Black Alone 238 18.3% Householder is American Indian Alone 10 0.8% Householder is Asian Alone 5 0.4% Householder is Pacific Islander Alone 6 0.5% Householder is Some Other Race Alone 13 1.0% Householder is Two or More Races 36 2.8% Other Families with Hispanic Householder 43 3.3% Nonfamily Households by Race of Householder Total 2,697 100.0% Householder is White Alone 2,415 89.5% Householder is Black Alone 177 6.6% Householder is American Indian Alone 14 0.5% Householder is Asian Alone 24 0.9% Householder is Pacific Islander Alone 5 0.2% Householder is Some Other Race Alone 25 0.9% Householder is Two or More Races 37 1.4% Nonfamily Households with Hispanic Householder 70 2.6% Source: U.S. Census Bureau, Census 2010 Summary File 1. June 28, 2013 02313 Esii Page3 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 1 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: -90.66472028 Total Housing Units by Occupancy Total Occupied Housing Units Vacant Housing Units For Rent Rented, not Occupied For Sale Only Sold, not Occupied For Seasonal /RecreationaVOccasional Use For Migrant Workers Other Vacant Total Vacancy Rate Households by Tenure and Mortgage Status Total Ow ner Occupied Owned with a Mortgage/Loan Owned Free and Clear Average Household Size Renter Occupied Average Household Size 6,235 100.0% 5,611 90.0% 279 4.5% 9 0.1% 76 1.2% 15 0.2% 12 0.2% 0 0.0% 233 3.7% 10.3% 5,611 100.0% 2,544 45.3% 1,824 32.5% 720 12.8% 2.55 3,067 54.7% 2.18 Owner- occupied Housing Units by Race of Householder Total 2,544 100.0% Householder is White Alone 2,475 97.3% Householder is Black Alone 24 0.9% Householder is American Indian Alone 9 0.4% Householder is Asian Alone 6 0.2% Householder is Pacific Islander Alone 4 0.2% Householder is Some Other Race Alone 10 0.4% Householder is Two or More Races 16 0.6% Owner - occupied Housing Units with Hispanic Householder 32 1.3% Renter- occupied Housing Units by Race of Householder Total 3,067 100.0% Householder is White Alone 2,444 79.7% Householder is Black Alone 435 14.2% Householder is American Indian Alone 21 0.7% Householder is Asian Alone 37 1.2% Householder is Pacific Islander Alone 22 0.7% Householder is Some Other Race Alone 42 1.4% Householder is Two or More Races 66 2.2% Renter - occupied Housing Units with Hispanic Householder 132 4.3% Average Household Size by Race /Hispanic Origin of Householder Householder is White Alone Householder is Black Alone Householder is American Indian Alone Householder is Asian Alone Householder is Pacific Islander Alone Householder is Some Other Race Alone Householder is Two or More Races Householder is Hispanic Source: U.S. Census Bureau, Census 2010 Summary Ale 1. 2.27 2.87 2.90 2.31 6.31 2.98 2.52 2.77 June 28, 2013 02313 Esri Page 4 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 3 mile radius Prepared by Robert FeldermanRobert Latitude: Longitude 2000 2010 2000 -2010 Annual Rate Population Households Housing Units Population by Race Total Population Reporting One Race White Black American Indian Asian Pacific Islander Some Other Race Population Reporting Two or More Races Total Hispanic Population Population by Sex Male Female 51,615 50,691 -0.18% 20,355 20,645 0.14% 21,598 22,039 0.20% Number Percent 50,692 100.0% 49,752 98.1% 46,396 91.5% 2,188 4.3% 147 0.3% 424 0.8% 263 0.5% 334 0.7% 940 1.9% 1,245 2.5% 24,607 48.5% 26,084 51.5% Population by Age Total 50,689 100.0% Age 0 - 4 3,122 6.2% Age 5 - 9 2,949 5.8% Age SO - 14 2,888 5.7% Age 15 - 19 3,925 7.7% Age 20 - 24 4,832 9.5% Age 25 - 29 3,615 7.1% Age 30 - 34 2,918 5.8% Age 35 - 39 2,442 4.8% Age 40 - 44 2,757 5.4% Age 45 - 49 3,446 6.8% Age 50 - 54 3,509 6.9% Age 55 - 59 3,313 6.5% Age 60 - 64 2,649 5.2% Age 65 - 69 2,037 4.0% Age 70 - 74 1,738 3.4% Age 75 - 79 1,599 3.2% Age 80 - 84 1,414 2.8% Age 85+ 1,537 3.0% Age 18+ Age 65+ 39,947 8,325 Median Age by Sex and Race/Hispanic Origin Total Population 37.2 Male 34.7 Female 39.9 White Alone 40.0 Black Alone 21.4 American Indian Alone 28.8 Asian Alone 29.2 Pacific Islander Alone 21.7 Some Other Race Alone 24.3 Two or More Races 12.8 Hispanic Population 21.7 Data Note: Hispanic population can be of any race. Census 2010 medians are computed from reported data distributions. Source: U.S. Census Bureau, Census 2010 Summary File 1. Eri converted Census 2000 data into 2010 geography. 78.8% 16.4% June 28, 2013 03313 Es:i Page5 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 3 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: -90.66472028 Households by Type Total Households with 1 Person Households with 2+ People Family Households Husband -w ife Families With Ow n Children Other Family (No Spouse Present) With Ow n Children Nonfamily Households All Households with Children Multigenerational Households Unmarried Partner Households Male- female Same-sex Average Household Size Family Households by Size Total 2 People 3 People 4 People 5 People 6 People 7+ People Average Family Size 20,644 100.0% 7,044 34.1% 13,600 65.9% 12,049 58.4% 8,728 42.3% 3,162 15.3% 3,321 16.1% 2,060 10.0% 1,551 7.5% 5,606 27.2% 411 2.0% 1,544 7.5% 1,431 6.9% 113 0.5% 2.27 12,047 100.0% 5,858 48.6% 2,639 21.9% 2,012 16.7% 991 8.2% 357 3.0% 190 1.6% 2.91 Nonfamily Households by Size Total 8,596 100.0% 1 Person 7,044 81.9% 2 People 1,228 14.3% 3 People 178 2.1% 4 People 93 1.1% 5 People 38 0.4% 6 People 13 0.2% 7+ People 2 0.0% Average Nonfamily Size 1.24 Population by Relationship and Household Type Total 50,691 100.0% In Households 46,840 92.4% In Family Households 36,172 71.4% Householder 12,012 23.7% Spouse 8,696 17.2% Child 13,448 26.5% Other relative 902 1.8% Nonrelative 1,115 2.2% In Nonfamily Households 10,667 21.0% In Group Quarters 3,851 7.6% Institutionalized Population 1,045 2.1% Noninstitutionalized Population 2,806 5.5% Data Note:Households with children include any households with people under age 18, related or not Multigenerational households are families with 3 or more parent-child relationships. Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the householder. Milugeneratonal and unmarried partner households are reported only to the tract level. Esri estimated block group data, which is used to estimate polygons or non-standard geography. Average family size excludes nonrelatves. Source: U.S. Census Bureau, Census 2010 Summary File 1. June 28, 2013 02313 Esri Page 8 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 3 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: -90.66472028 Family Households by Age of Householder Total Householder Age 15 - 44 Householder Age 45 - 54 Householder Age 55 - 64 Householder Age 65 - 74 Householder Age 75+ Nonfamily Households by Age of Householder Total Householder Age 15 - 44 Householder Age 45 - 54 Householder Age 55 - 64 Householder Age 65 - 74 Householder Age 75+ 12,051 100.0% 4,661 38.7% 2,681 22.2% 2,187 18.1% 1,370 11.4% 1,152 9.6% 8,595 100.0% 3,045 35.4% 1,420 16.5% 1,449 16.9% 988 11.5% 1,693 19.7% Households by Race of Householder Total 20,646 100.0% Householder is White Alone 19,483 94.4% Householder is Black Alone 671 3.3% Householder is American Indian Alone 50 0.2% Householder is Asian Alone 121 0.6% Householder is Pacific Islander Alone 47 0.2% Householder is Some Other Race Alone 91 0.4% Householder is Two or More Races 183 0.9% Households with Hispanic Householder 304 1.5% Husband -wife Families by Race of Householder Total 8,727 100.0% Householder is White Alone 8,465 97.0% Householder is Black Alone 88 1.0% Householder is American Indian Alone 17 0.2% Householder is Asian Alone 50 0.6% Householder is Pacific Islander Alone 25 0.3% Householder is Some Other Race Alone 35 0.4% Householder is Two or More Races 47 0.5% Husband -wife Families with Hispanic Householder 127 1.5% Other Families (No Spouse) by Race of Householder Total 3,320 100.0% Householder is White Alone 2,880 86.7% Householder is Black Alone 318 9.6% Householder is American Indian Alone 14 0.4% Householder is Asian Alone 12 0.4% Householder is Pacific Islander Alone 14 0.4% Householder is Some Other Race Alone 20 0.6% Householder is Two or More Races 62 1.9% Other Families with Hispanic Householder 64 1.9% Nonfamily Households by Race of Householder Total 8,596 100.0% Householder is White Alone 8,137 94.7% Householder is Black Alone 264 3.1% Householder is American Indian Alone 19 0.2% Householder is Asian Alone 59 0.7% Householder is Pacific Islander Alone 8 0.1% Householder is Some Other Race Alone 36 0.4% Householder is Two or More Races 73 0.8% Nonfamily Households with Hispanic Householder 113 1.3% Source: U.S. Census Bureau, Census 2010 Summary File 1. June 28, 2013 02313 Esii Page 7 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 3 mile radius Prepared by Robert FeldermanRobert 4. 42.512949138 90.66472028 Total Housing Units by Occupancy Total Occupied Housing Units Vacant Housing Units For Rent Rented, not Occupied For Sale Only Sold, not Occupied For Seasonal /RecreationaVOccasional Use For Migrant Workers Other Vacant Total Vacancy Rate 22,055 100.0% 20,645 93.6% 557 2.5% 25 0.1% 192 0.9% 56 0.3% 117 0.5% 2 0.0% 461 2.1% 6.3% Households by Tenure and Mortgage Status Total 20,645 100.0% Ow ner Occupied 13,422 65.0% Owned with a Mortgage/Loan 8,745 42.4% Owned Free and Clear 4,677 22.7% Average Household Size 2.42 Renter Occupied 7,223 35.0% Average Household Size 2.00 Owner- occupied Housing Units by Race of Householder Total 13,422 100.0% Householder is White Alone 13,213 98.4% Householder is Black Alone 54 0.4% Householder is American Indian Alone 21 0.2% Householder is Asian Alone 37 0.3% Householder is Pacific Islander Alone 6 0.0% Householder is Some Other Race Alone 28 0.2% Householder is Two or More Races 63 0.5% Owner - occupied Housing Units with Hispanic Householder 108 0.8% Renter- occupied Housing Units by Race of Householder Total 7,223 100.0% Householder is White Alone 6,270 86.8% Householder is Black Alone 617 8.5% Householder is American Indian Alone 29 0.4% Householder is Asian Alone 84 1.2% Householder is Pacific Islander Alone 41 0.6% Householder is Some Other Race Alone 62 0.9% Householder is Two or More Races 120 1.7% Renter - occupied Housing Units with Hispanic Householder 196 2.7% Average Household Size by Race /Hispanic Origin of Householder Householder is White Alone Householder is Black Alone Householder is American Indian Alone Householder is Asian Alone Householder is Pacific Islander Alone Householder is Some Other Race Alone Householder is Two or More Races Householder is Hispanic Source: U.S. Census Bureau, Census 2010 Summary Ale 1. 2.24 2.74 2.92 2.31 5.55 3.12 2.52 2.86 June 28, 2013 02313 Esri Page8 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 5 mile radius Prepared by Robert FeldermanRobert Latitude: Longitude 2000 -2010 2000 2010 Annual Rate Population Households Housing Units Population by Race Total Population Reporting One Race White Black American Indian Asian Pacific Islander Some Other Race Population Reporting Two or More Races Total Hispanic Population Population by Sex Male Female 67,284 68,032 0.11% 26,257 27,648 0.52% 27,679 29,329 0.58% Number Percent 68,033 100.0% 66,939 98.4% 63,025 92.6% 2,361 3.5% 160 0.2% 724 1.1% 272 0.4% 397 0.6% 1,094 1.6% 1,501 2.2% 33,130 48.7% 34,902 51.3% Population by Age Total 68,032 100.0% Age 0 - 4 4,166 6.1% Age 5 - 9 4,154 6.1% Age 10 - 14 4,162 6.1% Age 15 - 19 5,043 7.4% Age 20 - 24 5,638 8.3% Age 25 - 29 4,575 6.7% Age 30 - 34 3,788 5.6% Age 35 - 39 3,435 5.0% Age 40 - 44 3,919 5.8% Age 45 - 49 4,795 7.0% Age 50 - 54 4,880 7.2% Age 55 - 59 4,616 6.8% Age 60 - 64 3,747 5.5% Age 65 - 69 2,867 4.2% Age 70 - 74 2,426 3.6% Age 75 - 79 2,125 3.1% Age 80 - 84 1,762 2.6% Age 85+ 1,932 2.8% Age 18+ Age 65+ 53,017 Median Age by Sex and Race/Hispanic Origin Total Population 38.6 Male 36.4 Female 40.8 White Alone 40.8 Black Alone 21.5 American Indian Alone 31.0 Asian Alone 29.0 Pacific Islander Alone 21.7 Some Other Race Alone 24.3 Two or More Races 12.9 Hispanic Population 22.1 Data Note: Hispanic population can be of any race. Census 2010 medians are computed from reported data distributions. Source: U.S. Census Bureau, Census 2010 Summary File 1. Eri converted Census 2000 data into 2010 geography. 77.9% 16.3% June 28, 2013 03313 Es:i Page9 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 5 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: -90.66472028 Households by Type Total Households with 1 Person Households with 2+ People Family Households Husband -w ife Families With Ow n Children Other Family (No Spouse Present) With Ow n Children Nonfamily Households All Households with Children Multigenerational Households Unmarried Partner Households Male- female Same-sex Average Household Size Family Households by Size Total 2 People 3 People 4 People 5 People 6 People 7+ People Average Family Size 27,648 100.0% 8,796 31.8% 18,852 68.2% 16,985 61.4% 12,878 46.6% 4,796 17.3% 4,107 14.9% 2,539 9.2% 1,867 6.8% 7,833 28.3% 521 1.9% 1,900 6.9% 1,755 6.3% 145 0.5% 2.32 16,985 100.0% 8,243 48.5% 3,660 21.5% 2,920 17.2% 1,422 8.4% 501 3.0% 239 1.4% 2.92 Nonfamily Households by Size Total 10,663 100.0% 1 Person 8,796 82.5% 2 People 1,507 14.1% 3 People 206 1.9% 4 People 96 0.9% 5 People 43 0.4% 6 People 13 0.1% 7+ People 2 0.0% Average Nonfamily Size 1.23 Population by Relationship and Household Type Total 68,032 100.0% In Households 64,066 94.2% In Family Households 50,965 74.9% Householder 16,934 24.9% Spouse 12,833 18.9% Child 18,726 27.5% Other relative 1,129 1.7% Nonrelative 1,343 2.0% In Nonfamily Households 13,101 19.3% In Group Quarters 3,966 5.8% Institutionalized Population 1,134 1.7% Noninstitutionalized Population 2,832 4.2% Data Note:Households with children include any households with people under age 18, related or not Multigenerational households are families with 3 or more parent-child relationships. Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the householder. Milugeneratonal and unmarried partner households are reported only to the tract level. Esri estimated block group data, which is used to estimate polygons or non-standard geography. Average family size excludes nonrelatves. Source: U.S. Census Bureau, Census 2010 Summary File 1. June 28, 2013 02313 Esri Page 10 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 5 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: -90.66472028 Family Households by Age of Householder Total Householder Age 15 - 44 Householder Age 45 - 54 Householder Age 55 - 64 Householder Age 65 - 74 Householder Age 75+ Nonfamily Households by Age of Householder Total Householder Age 15 - 44 Householder Age 45 - 54 Householder Age 55 - 64 Householder Age 65 - 74 Householder Age 75+ 16,986 100.0% 6,358 37.4% 3,863 22.7% 3,197 18.8% 2,010 11.8% 1,558 9.2% 10,663 100.0% 3,618 33.9% 1,752 16.4% 1,819 17.1% 1,276 12.0% 2,198 20.6% Households by Race of Householder Total 27,648 100.0% Householder is White Alone 26,276 95.0% Householder is Black Alone 730 2.6% Householder is American Indian Alone 55 0.2% Householder is Asian Alone 219 0.8% Householder is Pacific Islander Alone 49 0.2% Householder is Some Other Race Alone 108 0.4% Householder is Two or More Races 211 0.8% Households with Hispanic Householder 369 1.3% Husband -wife Families by Race of Householder Total 12,878 100.0% Householder is White Alone 12,499 97.1% Householder is Black Alone 106 0.8% Householder is American Indian Alone 19 0.1% Householder is Asian Alone 123 1.0% Householder is Pacific Islander Alone 27 0.2% Householder is Some Other Race Alone 39 0.3% Householder is Two or More Races 65 0.5% Husband -wife Families with Hispanic Householder 160 1.2% Other Families (No Spouse) by Race of Householder Total 4,107 100.0% Householder is White Alone 3,629 88.4% Householder is Black Alone 339 8.3% Householder is American Indian Alone 14 0.3% Householder is Asian Alone 18 0.4% Householder is Pacific Islander Alone 14 0.3% Householder is Some Other Race Alone 26 0.6% Householder is Two or More Races 67 1.6% Other Families with Hispanic Householder 75 1.8% Nonfamily Households by Race of Householder Total 10,664 100.0% Householder is White Alone 10,148 95.2% Householder is Black Alone 285 2.7% Householder is American Indian Alone 22 0.2% Householder is Asian Alone 79 0.7% Householder is Pacific Islander Alone 8 0.1% Householder is Some Other Race Alone 43 0.4% Householder is Two or More Races 79 0.7% Nonfamily Households with Hispanic Householder 134 1.3% Source: U.S. Census Bureau, Census 2010 Summary File 1. June 28, 2013 02313 Esii Page 11 of 12 Census 2010 Summary Profile 430 Garfield Ave, Dubuque, IA, 52001 Ring: 5 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: -90.66472028 Total Housing Units by Occupancy Total Occupied Housing Units Vacant Housing Units For Rent Rented, not Occupied For Sale Only Sold, not Occupied For Seasonal /RecreationaVOccasional Use For Migrant Workers Other Vacant Total Vacancy Rate 29,339 100.0% 27,648 94.2% 701 2.4% 31 0.1% 238 0.8% 66 0.2% 154 0.5% 2 0.0% 499 1.7% 5.7% Households by Tenure and Mortgage Status Total 27,648 100.0% Ow ner Occupied 19,015 68.8% Owned with a Mortgage/Loan 12,304 44.5% Owned Free and Clear 6,711 24.3% Average Household Size 2.47 Renter Occupied 8,633 31.2% Average Household Size 1.98 Owner- occupied Housing Units by Race of Householder Total 19,016 100.0% Householder is White Alone 18,730 98.5% Householder is Black Alone 65 0.3% Householder is American Indian Alone 23 0.1% Householder is Asian Alone 74 0.4% Householder is Pacific Islander Alone 6 0.0% Householder is Some Other Race Alone 34 0.2% Householder is Two or More Races 84 0.4% Owner - occupied Housing Units with Hispanic Householder 150 0.8% Renter- occupied Housing Units by Race of Householder Total 8,633 100.0% Householder is White Alone 7,546 87.4% Householder is Black Alone 665 7.7% Householder is American Indian Alone 32 0.4% Householder is Asian Alone 145 1.7% Householder is Pacific Islander Alone 43 0.5% Householder is Some Other Race Alone 74 0.9% Householder is Two or More Races 128 1.5% Renter - occupied Housing Units with Hispanic Householder 219 2.5% Average Household Size by Race /Hispanic Origin of Householder Householder is White Alone Householder is Black Alone Householder is American Indian Alone Householder is Asian Alone Householder is Pacific Islander Alone Householder is Some Other Race Alone Householder is Two or More Races Householder is Hispanic Source: U.S. Census Bureau, Census 2010 Summary Ale 1. 2.29 2.74 2.85 2.55 5.51 3.09 2.59 2.88 June 28, 2013 02313 Esri Page 12 of 12 Executive Summary 430 Garfield Ave, Dubuque, IA, 52001 Ring: 1 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 Population 2000 Population 2010 Population 2012 Population 2017 Population 2000 -2010 Annual Rate 2010 -2012 Annual Rate 2012 -2017 Annual Rate 2012 Male Population 2012 Female Population 2012 Median Age 1 mile 3 miles 1 5 miles 14,481 51,615 67,284 14,151 50,691 68,032 14,258 50,963 68,725 14,578 51,875 70,742 -0.23% -0.18% 0.11% 0.34% 0.24% 0.45% 0.44% 0.36% 0.58% 50.9% 48.7% 48.8% 49.1% 51.3% 51.2% 29.8 37.6 39.1 In the identified area, the current year population is 68,725. In 2010, the Census count in the area was 68,032. The rate of change since 2010 was 0.45% annually. The five -year projection for the population in the area is 70,742 representing a change of 0.58% annually from 2012 to 2017. Currently, the population is 48.8% male and 51.2% female. Median Age The median age in this area is 39.1, compared to U.S. median age of 37.3. Race and Ethnicity 2012 White Alone 82.7% 91.2% 2012 Black Alone 10.0% 4.3% 2012 American Indian /Alaska Native Alone 0.6% 0.3% 2012 Asian Alone 1.2% 1.1% 2012 Pacific Islander Alone 1.0% 0.4% 2012 Other Race 1.4% 0.8% 2012 Two or More Races 3.1% 2.0% 2012 Hispanic Origin (Any Race) 4.8% 2.8% a 92.2% 3.4% 0.3% 1.4% 0.3% 0.7% 1.7% 2.5% Persons of Hispanic origin represent 2.5% of the population in the identified area compared to 16.9% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race /ethnic groups, is 18.9 in the identified area, compared to 61.4 for the U.S. as a whole. Households 2000 Households 5,696 20,355 26,257 2010 Households 5,611 20,645 27,648 2012 Total Households 5,634 20,678 27,850 2017 Total Households 5,839 21,337 29,067 2000 -2010 Annual Rate -0.15% 0.14% 0.52% 2010 -2012 Annual Rate 0.18% 0.07% 0.32% 2012 -2017 Annual Rate 0.72% 0.63% 0.86% 2012 Average Household Size 2.36 2.28 2.33 The household count in this area has changed from 27,648 in 2010 to 27,850 in the current year, a change of 0.32% annually. The five -year projection of households is 29,067, a change of 0.86% annually from the current year total. Average household size is currently 2.33, compared to 2.32 in the year 2010. The number of families in the current year is 16,930 in the specified area. Data Nob: Income is expressed in arrent dollars Source: U.S. Census Bureau, Census 2010 Summary Ale 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 28, 2013 ©2013 Esri Page 1 of 2 Executive Summary 430 Garfield Ave, Dubuque, IA, 52001 Ring: 5 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 Median Household Income 2012 Median Household Income 2017 Median Household Income 2012 -2017 Annual Rate Average Household Income 2012 Average Household Income 1 mile 3 miles 1 5 miles $30,682 $39,720 $43,148 $34,649 $46,808 $51,713 2.46% 3.34% 3.69% $40,315 $53,921 $56,788 2017 Average Household Income $45,607 $61,958 $65,067 2012 -2017 Annual Rate 2.50% 2.82% 2.76% Per Capita Income 2012 Per Capita Income $17,102 $22,853 $23,725 2017 Per Capita Income $19,480 $26,467 $27,433 2012 -2017 Annual Rate 2.64% 2.98% 2.95% Households by Income Current median household income is $43,148 in the area, compared to $50,157 for all U.S. households. Median household income is projected to be $51,713 in five years, compared to $56,895 for all U.S. households Current average household income is $56,788 in this area, compared to $68,162 for all U.S households. Average household income is projected to be $65,067 in five years, compared to $77,137 for all U.S. households Current per capita income is $23,725 in the area, compared to the U.S. per capita income of $26,409. The per capita income is projected to be $27,433 in five years, compared to $29,882 for all U.S. households Housing 2000 Total Housing Units 6,317 21,598 27,679 2000 Owner Occupied Housing Units 2,772 13,612 18,411 2000 Owner Occupied Housing Units 2,924 6,743 7,846 2000 Vacant Housing Units 621 1,243 1,422 2010 Total Housing Units 6,257 22,039 29,329 2010 Owner Occupied Housing Units 2,544 13,422 19,015 2010 Renter Occupied Housing Units 3,067 7,223 8,633 2010 Vacant Housing Units 646 1,394 1,681 2012 Total Housing Units 6,285 22,173 29,667 2012 Owner Occupied Housing Units 2,482 13,247 18,903 2012 Renter Occupied Housing Units 3,152 7,431 8,947 2012 Vacant Housing Units 651 1,495 1,817 2017 Total Housing Units 6,384 22,635 30,669 2017 Owner Occupied Housing Units 2,545 13,645 19,719 2017 Renter Occupied Housing Units 3,295 7,692 9,348 2017 Vacant Housing Units 545 1,298 1,602 Currently, 63.7% of the 29,667 housing units in the area are owner occupied; 30.2 %, renter occupied; and 6.1% are vacant. Currently, in the U.S., 56.5% of the housing units in the area are owner occupied; 32.1% are renter occupied; and 11.4% are vacant. In 2010, there were 29,329 housing units in the area - 64.8% ow ner occupied, 29.4% renter occupied, and 5.7% vacant. The annual rate of change in housing units since 2010 is 0.51 %. Median home value in the area is $139,996, compared to a median home value of $167,749 for the U.S. In five years, median value is projected to change by 2.18% annually to $155,933. Dab Nob: Income is expressed in arrent dollars Source: U.S. Census Bureau, Census 2010 Summary Ale 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 28, 2013 ©2013 Esri Page 2 of 2 Demographic and Income Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Ring: 1 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 Summary Population Households Families Average Household Size Ow ner Occupied Housing Units Renter Occupied Housing Units Median Age Trends: 2012 - 2017 Annual Rath Population Households Families Ow ner HHs Median Household Income Census 2010 14,151 5,611 2,914 2.35 2,544 3,067 29.7 Area 0.44% 0.72% 0.41% 0.50% 2.46% 2012 14,258 5,634 2,876 2.36 2,482 3,152 29.8 State 0.56% 0.66% 0.55% 0.66% 2.96% 2017 14,578 5,839 2,935 2.33 2,545 3,295 30.2 National 0.68% 0.74% 0.72% 0.91% 2.55% Households by Income 2012 2017 Number Percent Number Percent <$15,000 1,359 24.1% 1,459 25.0% $15,000 - $24,999 870 15.4% 711 12.2% $25,000 - $34,999 912 16.2% 770 13.2% $35,000 - $49,999 1,008 17.9% 937 16.0% $50,000 - $74,999 843 15.0% 1,041 17.8% $75,000 - $99,999 279 5.0% 408 7.0% $100,000 - $149,999 309 5.5% 432 7.4% $150,000 - $199,999 20 0.4% 32 0.5% $200,000+ 35 0.6% 49 0.8% Median Household Income $30,682 $34,649 Average Household Income $40,315 $45,607 Per Capita Income $17,102 $19,480 Population by Age Census 2010 2012 2017 Number Percent Number Percent Number Percent 0 - 4 1,132 8.0% 1,137 8.0% 1,173 8.0% 5 - 9 932 6.6% 932 6.5% 958 6.6% 10 - 14 796 5.6% 786 5.5% 815 5.6% 15 - 19 1,217 8.6% 1,181 8.3% 1,168 8.0% 20 - 24 1,813 12.8% 1,871 13.1% 1,810 12.4% 25 - 34 2,190 15.5% 2,239 15.7% 2,320 15.9% 35 - 44 1,491 10.5% 1,456 10.2% 1,449 9.9% 45 - 54 1,889 13.3% 1,845 12.9% 1,757 12.196 55 - 64 1,351 9.5% 1,415 9.9% 1,523 10.4% 65 - 74 647 4.6% 697 4.9% 863 5.9% 75 - 84 460 3.3% 460 3.2% 493 3.4% 85+ 234 1.7% 237 1.7% 248 1.7% Data Nota: Income is expressed in arrent dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esti forecasts for 2012 and 2017. June 28, 2013 ©2013 Esri Page 1 of 6 Demographic and Income Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Ring: 1 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 Trends 2012 -2017 2.8- 2.6- 24- 8 2.2- 2- n La- c :C. 1.6- ao 1.4- ▪ 1. ce 2- 31 1- c Q 8- Q 6- Q 4- Q 2- 0 r � � Population Population by Age 14- 12 10- 4- 2- 0 Households Families Owner HHs FIN 20-24 25 -34 35-44 45-54 55-64 11 Median Hi Income 10-14 65-74 75-84 2012 Household Income UV. •:?R 15.219 s15R -S29R 15/719 91114 29.1% S35R -1994 17.9% Source: U.S. Census Bureau, Census 2010 Summary File 1. Esti forecasts for 2012 and 2017. SSOR -1794 190% 13304.- 0S% S190R -1199R Op 11004 -14794 5.519 S)sR -S99R 5.019 85+ • Area • State • USA is 2012 ❑ 2017 June 28, 2013 ©2013 Esri Page 2 of 6 Demographic and Income Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Ring: 3 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 Summary Population Households Families Average Household Size Ow ner Occupied Housing Units Renter Occupied Housing Units Median Age Trends: 2012 - 2017 Annual Rath Population Households Families Ow ner HHs Median Household Income Census 2010 50,691 20,645 12,049 2.27 13,422 7,223 37.2 Area 0.36% 0.63% 0.41% 0.59% 3.34% 2012 50,963 20,678 11,918 2.28 13,247 7,431 37.6 State 0.56% 0.66% 0.55% 0.66% 2.96% 2017 51,875 21,337 12,165 2.25 13,645 7,692 38.6 National 0.68% 0.74% 0.72% 0.91% 2.55% Households by Income 2012 2017 Number Percent Number Percent <$15,000 3,414 16.5% 3,475 16.3% $15,000 - $24,999 2,880 13.9% 2,313 10.8% $25,000 - $34,999 2,638 12.8% 2,264 10.6% $35,000 - $49,999 3,549 17.2% 3,134 14.7% $50,000 - $74,999 3,741 18.1% 4,104 19.2% $75,000 - $99,999 1,941 9.4% 2,705 12.7% $100,000 - $149,999 1,817 8.8% 2,423 11.4% $150,000 - $199,999 270 1.3% 420 2.0% $200,000+ 428 2.1% 498 2.3% Median Household Income $39,720 $46,808 Average Household Income $53,921 $61,958 Per Capita Income $22,853 $26,467 Population by Age Census 2010 2012 2017 Number Percent Number Percent Number Percent 0 - 4 3,122 6.2% 3,116 6.1% 3,163 6.1% 5 - 9 2,949 5.8% 2,928 5.7% 2,947 5.7% 10 - 14 2,888 5.7% 2,834 5.6% 2,885 5.6% 15 - 19 3,925 7.7% 3,799 7.5% 3,715 7.2% 20 - 24 4,832 9.5% 4,925 9.7% 4,683 9.0% 25 - 34 6,533 12.9% 6,646 13.0% 6,782 13.1% 35 - 44 5,199 10.3% 5,060 9.9% 4,967 9.6% 45 - 54 6,955 13.7% 6,764 13.3% 6,353 12.2% 55 - 64 5,962 11.8% 6,234 12.2% 6,607 12.7% 65 - 74 3,775 7.4% 4,043 7.9% 4,903 9.5% 75 - 84 3,013 5.9% 3,020 5.9% 3,193 6.2% 85+ 1,537 3.0% 1,596 3.1% 1,678 3.2% Data Nota: Income is expressed in arrent dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esti forecasts for 2012 and 2017. June 28, 2013 ©2013 Esri Page 3 of 6 Demographic and Income Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Ring: 3 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 Trends 2012 -2017 3- Y c 8 25- L 0 o. c 2- + ▪ 1.5- e 1- c c • as- 0 a Population Population by Age 13- 12- 11- 10- 9- ▪ 3- 7- `a) 6- a 5- 4- 3- 2- 1 0 Households Families Owner HHs r I 10-14 15-19 2012 Household Income 111 20-24 25 -34 ■ 35-44 45-54 5155 - 52eS 3.90 1 1 55-64 65 -74 Source: U.S. Census Bureau, Census 2010 Summary File 1. Esti forecasts for 2012 and 2017. Median H� Ncome 1 75 -84 85+ • Area • State • USA is 2012 ❑ 2017 June 28, 2013 ©2013 Esri Page 4 of 6 Demographic and Income Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Ring: 5 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 Summary Population Households Families Average Household Size Ow ner Occupied Housing Units Renter Occupied Housing Units Median Age Trends: 2012 - 2017 Annual Rath Population Households Families Ow ner HHs Median Household Income Census 2010 68,032 27,648 16,985 2.32 19,015 8,633 38.6 Area 0.58% 0.86% 0.70% 0.85% 3.69% 2012 68,725 27,850 16,930 2.33 18,903 8,947 39.1 State 0.56% 0.66% 0.55% 0.66% 2.96% 2017 70,742 29,067 17,532 2.30 19,719 9,348 40.0 National 0.68% 0.74% 0.72% 0.91% 2.55% Households by Income 2012 2017 Number Percent Number Percent <$15,000 4,040 14.5% 4,083 14.0% $15,000 - $24,999 3,637 13.1% 2,917 10.0% $25,000 - $34,999 3,299 11.8% 2,823 9.7% $35,000 - $49,999 4,710 16.9% 4,087 14.1% $50,000 - $74,999 5,436 19.5% 6,016 20.7% $75,000 - $99,999 3,135 11.3% 4,419 15.2% $100,000 - $149,999 2,587 9.3% 3,391 11.7% $150,000 - $199,999 426 1.5% 654 2.2% $200,000+ 579 2.1% 677 2.3% Median Household Income $43,148 $51,713 Average Household Income $56,788 $65,067 Per Capita Income $23,725 $27,433 Population by Age Census 2010 2012 2017 Number Percent Number Percent Number Percent 0 - 4 4,166 6.1% 4,174 6.1% 4,275 6.0% 5 - 9 4,154 6.1% 4,144 6.0% 4,215 6.0% 10 - 14 4,162 6.1% 4,107 6.0% 4,232 6.0% 15 - 19 5,043 7.4% 4,881 7.1% 4,794 6.8% 20 - 24 5,638 8.3% 5,772 8.4% 5,509 7.8% 25 - 34 8,363 12.3% 8,557 12.5% 8,821 12.5% 35 - 44 7,354 10.8% 7,196 10.5% 7,150 10.1% 45 - 54 9,675 14.2% 9,459 13.8% 8,978 12.7% 55 - 64 8,363 12.3% 8,795 12.8% 9,420 13.3% 65 - 74 5,293 7.8% 5,691 8.3% 6,972 9.9% 75 - 84 3,887 5.7% 3,918 5.7% 4,203 5.9% 85+ 1,932 2.8% 2,031 3.0% 2,174 3.1% Data Nota: Income is expressed in arrent dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esti forecasts for 2012 and 2017. June 28, 2013 ©2013 Esri Page 5 of 6 Demographic and Income Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Ring: 5 mile radius Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 Trends 2012 -2017 c 3- 8 m 25- a c � m 4▪ 3 1.S N c 1 CC 0.5- 0 Population Population by Age 7- a 5- 4- 3- 2- 1- 0 Households Families Owner HHs 5-9 10-14 15-19 20-24 2012 Household Income ■ 25 -34 ■ 35-44 45-54 to SR - SEOS 1 1 Median 1+1 Income 11.3% Source: U.S. Census Bureau, Census 2010 Summary File 1. Esti forecasts for 2012 and 2017. 55-64 65 -74 75 -84 85+ S9004.• 3.119 S1504 -S199R 1.5% S1004 -S1e9R 9.3% • Area • State • USA is 2012 ❑ 2017 June 28, 2013 ©2013 Esri Page 6 of 6 Market Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Rings: 1, 3, 5 mile radii Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 Population Summary 2000 Total Population 2010 Total Population 2012 Total Population 2012 Group Quarters 2017 Total Population 2012 -2017 Annual Rate Household Summary 2000 Households 2000 Average Household Size 2010 Households 2010 Average Household Size 2012 Households 2012 Average Household Size 2017 Households 2017 Average Household Size 2012 -2017 Annual Rate 2010 Families 2010 Average Family Size 2012 Families 2012 Average Family Size 2017 Families 2017 Average Family Size 2012 -2017 Annual Rate Housing Unit Summary 1 mile 14,481 14,151 14,258 984 14,578 0.44% 3 miles 51,615 50,691 50,963 3,851 51,875 0.36% 5 miles 67,284 68,032 68,725 3,966 70,742 0.58% 5,696 20,355 26,257 2.35 2.34 2.40 5,611 20,645 27,648 2.35 2.27 2.32 5,634 20,678 27,850 2.36 2.28 2.33 5,839 21,337 29,067 2.33 2.25 2.30 0.72% 0.63% 0.86% 2,914 12,049 16,985 3.11 2.91 2.92 2,876 11,918 16,930 3.12 2.92 2.93 2,935 12,165 17,532 3.11 2.90 2.91 0.41% 0.41% 0.70% 2000 Housing Units 6,317 21,598 27,679 Owner Occupied Housing Units 43.9% 63.0% 66.5% Renter Occupied Housing Units 46.3% 31.2% 28.3% Vacant Housing Units 9.8% 5.8% 5.1% 2010 Housing Units 6,257 22,039 29,329 Owner Occupied Housing Units 40.7% 60.9% 64.8% Renter Occupied Housing Units 49.0% 32.8% 29.4% Vacant Housing Units 10.3% 6.3% 5.7% 2012 Housing Units 6,285 22,173 29,667 Owner Occupied Housing Units 39.5% 59.7% 63.7% Renter Occupied Housing Units 50.2% 33.5% 30.2% Vacant Housing Units 10.4% 6.7% 6.1% 2017 Housing Units 6,384 22,635 30,669 Owner Occupied Housing Units 39.9% 60.3% 64.3% Renter Occupied Housing Units 51.6% 34.0% 30.5% Vacant Housing Units 8.5% 5.7% 5.2% Median Household Income 2012 $30,682 $39,720 $43,148 2017 $34,649 $46,808 $51,713 Median Home Value 2012 $87,036 $128,371 $139,996 2017 $91,002 $140,172 $155,933 Per Capita Income 2012 $17,102 $22,853 $23,725 2017 $19,480 $26,467 $27,433 Median Age 2010 29.7 37.2 38.6 2012 29.8 37.6 39.1 2017 30.2 38.6 40.0 Data Nob: Household population includes persons not residing in group quarters Average Household Size is the household population divided by total households Persons in families indude the householder and persons related to the householder by birth marriage, or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 28, 2013 ©2013 Esri Page 1 of 4 Market Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Rings: 1, 3, 5 mile radii Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 2012 Households by Income Household Income Base <$15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Average Household Income 2017 Households by Income 1 mile 3 miles 5 miles 5,634 20,678 27,850 24.1% 16.5% 14.5% 15.4% 13.9% 13.1% 16.2% 12.8% 11.8% 17.9% 17.2% 16.9% 15.0% 18.1% 19.5% 5.0% 9.4% 11.3% 5.5% 8.8% 9.3% 0.4% 1.3% 1.5% 0.6% 2.1% 2.1% $40,315 $53,921 $56,788 Household Income Base 5,839 21,337 29,067 <$15,000 25.0% 16.3% 14.0% $15,000 - $24,999 12.2% 10.8% 10.0% $25,000 - $34,999 13.2% 10.6% 9.7% $35,000 - $49,999 16.0% 14.7% 14.1% $50,000 - $74,999 17.8% 19.2% 20.7% $75,000 - $99,999 7.0% 12.7% 15.2% $100,000 - $149,999 7.4% 11.4% 11.7% $150,000 - $199,999 0.5% 2.0% 2.2% $200,000+ 0.8% 2.3% 2.3% Average Household Income $45,607 $61,958 $65,067 2012 Owner Occupied Housing Units by Value Total 2,482 13,247 18,903 <$50,000 6.9% 2.6% 2.2% $50,000 - $99,999 58.196 25.396 19.596 $100,000 - $149,999 26.1% 39.0% 35.4% $150,000 - $199,999 4.396 19.096 22.996 $200,000 - $249,999 2.4% 7.0% 9.896 $250,000 - $299,999 1.296 3.196 4.996 $300,000 - $399,999 0.6% 2.396 3.4% $400,000 - $499,999 0.196 0.796 0.996 $500,000 - $749,999 0.0% 0.7% 0.896 $750,000 - $999,999 0.1% 0.296 0.196 $1,000,000 + 0.0% 0.0% 0.096 Average Home Value $98,089 $143,966 $157,704 2017 Owner Occupied Housing Units by Value Total 2,545 13,645 19,719 <$50,000 5.6% 1.896 1.5% $50,000 - $99,999 54.296 21.396 16.096 $100,000 - $149,999 26.2% 33.4% 29.296 $150,000 - $199,999 7.296 24.796 28.296 $200,000 - $249,999 3.6% 9.8% 13.096 $250,000 - $299,999 1.796 4.196 5.996 $300,000 - $399,999 1.0% 2.896 4.096 $400,000 - $499,999 0.296 0.996 1.196 $500,000 - $749,999 0.1% 0.9% 0.996 $750,000 - $999,999 0.296 0.296 0.296 $1,000,000 + 0.0% 0.0% 0.096 Average Home Value $106,898 $156,582 $170,236 Data Note: Income represents the preceding year, expressed in current dollars Household income includes wage and salary earnings interestdividends net rents, pensions SSI and welfare payments, child support and alimony. Source: U.S. Census Bureau, Census 2010 Summary Ale 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 28, 2013 ©2013 Esri Page 2 of 4 Market Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Rings: 1, 3, 5 mile radii Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 2010 Population by Age Total 0 -4 5 -9 10 - 14 15 -24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85 + 18+ 2012 Population by Age 1 mile 3 miles 5 miles 14,148 50,689 68,032 8.0% 6.2% 6.1% 6.6% 5.8% 6.1% 5.6% 5.7% 6.1% 21.4% 17.3% 15.7% 15.5% 12.9% 12.3% 10.5% 10.3% 10.8% 13.4% 13.7% 14.2% 9.5% 11.8% 12.3% 4.6% 7.4% 7.8% 3.3% 5.9% 5.7% 1.7% 3.0% 2.8% 76.3% 78.8% 77.9% Total 14,256 50,965 68,725 0 - 4 8.0% 6.1% 6.1% 5 - 9 6.5% 5.7% 6.0% 10 - 14 5.5% 5.6% 6.0% 15 - 24 21.4% 17.1% 15.5% 25 - 34 15.7% 13.0% 12.596 35 - 44 10.2% 9.9% 10.5% 45 - 54 12.9% 13.3% 13.8% 55 - 64 9.9% 12.2% 12.8% 65 - 74 4.9% 7.996 8.3% 75 - 84 3.2% 5.9% 5.7% 85 + 1.7% 3.1% 3.0% 18 + 76.6% 79.2% 78.4% 2017 Population by Age Total 14,577 51,876 70,743 0 - 4 8.0% 6.196 6.0% 5 - 9 6.6% 5.7% 6.0% 10 - 14 5.6% 5.6% 6.0% 15 - 24 20.4% 16.2% 14.6% 25 - 34 15.9% 13.196 12.5% 35 - 44 9.9% 9.6% 10.1% 45 - 54 12.1% 12.296 12.7% 55 - 64 10.4% 12.7% 13.3% 65 - 74 5.9% 9.596 9.9% 75 - 84 3.4% 6.2% 5.9% 85 + 1.7% 3.296 3.1% 18 + 76.5% 79.4% 78.6% 2010 Population by Sex Males 7,183 24,607 33,130 Females 6,968 26,084 34,902 2012 Population by Sex Males 7,262 24,797 33,546 Females 6,997 26,167 35,179 2017 Population by Sex Males 7,438 25,265 34,564 Females 7,140 26,611 36,177 Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 28, 2013 ©2013 Esri Page 3 of 4 Market Profile - Appraisal Version 430 Garfield Ave, Dubuque, IA, 52001 Rings: 1, 3, 5 mile radii Prepared by Robert FeldermanRobert Latitude: 42.512949138 Longitude: - 90.66472028 2010 Population by Relationship and Household Type Total In Households In Family Households Householder Spouse Child Other relative Nonrelative In Nonfamily Households In Group Quarters Institutionalized Population N oninstitutionalized Population 2010 Households by Type 1 mile 3 miles 5 miles 14,151 50,691 68,032 93.0% 92.4% 94.2% 67.7% 71.4% 74.9% 21.1% 23.7% 24.9% 11.7% 17.2% 18.9% 28.7% 26.5% 27.5% 2.6% 1.8% 1.7% 3.6% 2.2% 2.0% 25.4% 21.0% 19.3% 7.0% 7.6% 5.8% 1.4% 2.1% 1.7% 5.5% 5.5% 4.2% Total 5,611 20,644 27,648 Households with 1 Person 38.4% 34.1% 31.8% Households with 2+ People 61.6% 65.9% 68.2% Family Households 51.9% 58.4% 61.4% Husband -wife Families 28.7% 42.3% 46.6% With Related Children 12.0% 16.0% 18.1% Other Family (No Spouse Present) 23.2% 16.1% 14.9% Other Family with Male Householder 6.2% 4.5% 4.3% With Related Children 4.0% 2.8% 2.7% Other Family with Female Householder 18.9% 11.0% 10.0% With Related Children 12.6% 8.0% 7.3% Nonfamily Households 9.7% 7.5% 6.8% All Households with Children 29.1% 27.2% 28.3% Multigenerational Households 2.7% 2.0% 1.9% Unmarried Partner Households 10.6% 7.5% 6.9% Male - female 9.9% 6.9% 6.3% Same -sex 0.6% 0.5% 0.5% 2010 Households by Size Total 5,610 20,643 27,648 1 Person Household 38.4% 34.1% 31.8% 2 Person Household 29.0% 34.3% 35.3% 3 Person Household 13.9% 13.6% 14.0% 4 Person Household 9.7% 10.2% 10.9% 5 Person Household 5.2% 5.0% 5.3% 6 Person Household 2.1% 1.8% 1.9% 7 + Person Household 1.7% 0.9% 0.9% 2010 Households by Tenure and Mortgage Status Total 5,611 20,645 27,648 Owner Occupied 45.3% 65.0% 68.8% Ow ned with a Mortgage/Loan 32.5% 42.4% 44.5% Ow ned Free and Clear 12.8% 22.7% 24.3% Renter Occupied 54.7% 35.0% 31.2% Data Note: Householdswith children include any households with people under age 18, related or not Moltigenerational households are families with 3 or more parent- child relationships. Unmarried partner households are usually classified as nonfamily households unlessthere is another member of the household related to the householder. Moltigenerational and unmarried partner households are reported only to the tact level. Esri estimated blodc group data, which is used to estimate polygons or non - standard geography. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 28, 2013 ©2013 Esri Page 4 of 4 ADDENDUM H PRIVACY STATEMENT Felderman Appraisals, Dubuque, Iowa PRIVACY POLICY for FELDERMAN APPRAISALS FELDERMAN APPRAISALS, like many other providers of financial services, is required by the Gramm- Leach- Bliley (GLB) Act of 1999 to inform customers of our policies regarding the collection of nonpublic personal information during the appraisal process. The Federal Trade Commission (FTC) has ruled that appraisers are now considered to be financial institutions. This stems, in part, from longstanding statements by Intra- Agency Federal Financial Regulators, FannieMae, FreddieMac, and FHA that appraisers are considered as part of the financial institution for their participation in the lending process. Appraisers have been and continue to be bound by the Uniform Standards of Professional Appraisal Practice, ( USPAP) and the Ethics Rule which consists of the conduct, management, confidentiality, and record keeping sections. These rules and standards are more stringent than those required by law or regulation. We have always been diligent about protecting information deemed to be private or confidential in nature. TYPES OF NONPUBLIC PERSONAL INFORMATION COLLECTED Nonpublic and personal information about you and your property is collected during the course of developing and completing the appraisal process. This is generally accomplished with your knowledge and approval. Nonpublic information is normally provided to our company by you or obtained by us with your authorization. The purpose of the appraisal process is to develop a credible value opinion for the client or customer. A credible assignment result is part of the requirement for successful completion of a particular real estate financial transaction or business decision. PARTIES TO WHOM WE DISCLOSE INFORMATION This company does not disclose any nonpublic personal information obtained during the course of developing a property's specific value opinion except as required bylaw or at the direction of the client to assist in the completion of a particular financial transaction. Such nonpublic information may be disclosed to the client and any identified intended users of the specific appraisal, review, or appraisal consulting assignment. A fiduciary agreement is automatically in effect between our company and the identified client or customer and intended users per the Ethics Rule contained within the USPAP. Additionally, in all such situations, the appraiser must comply with all pertinent laws, rules, and regulations regarding the safeguarding of the analyses, conclusions, survey results, adjustments, and opinions relative to the appraisal process relative to this specific assignment. RECORD KEEPING REQUIREMENTS FELDERMAN APPRAISALS retains work records relating to the informational services that we provide so that we are better able to assist with your professional needs and to comply with the requirements of the Ethics Rule as contained within the USPAP. In order to secure your nonpublic personal information, our agency maintains physical, electronic, and procedural safeguards to comply with our professional standards of practice and provisions of the GLB Act. CUSTOMERS RIGHT TO LIMIT PUBLIC DISCLOSURE OR SHARING OF NONPUBLIC PERSONAL INFORMATION Our clients and/or customers have the right to limit the reuse of their nonpublic personal information gathered during the course of the appraisal development process. The customer must notify this agency within a reasonable time (considered to be 30 days by the FTC) that public disclosure, or reuse of such information is prohibited except as required by applicable law, regulation, or the appraiser's Uniform Standards of Professional Appraisal Practice (USPAP). Please feel free to call if you have any questions concerning this policy. Your privacy, our professional ethics, and the ability to provide you with a quality product or service are very important to us. FELDERMANAPPRAISALS 55 Bluff Street, Dubuque, IA 52001 (563) 557 -1465 Office; (563) 588 -4214 Fax FeldermanAppraisals @gmailcom FeldennanAppraisals, Dubuque, Iowa ADDENDUM I GLOSSARY Felderman Appraisals, Dubuque, Iowa GLOSSARY Accrued Depreciation is the disparity between the cost of replacement and the current price of home improvements. Accrued depreciation is calculated based on the appraisal data of a property. Air Rights give the property holder a right to use the air space above a property. In some cases, air rights specify which space above the ground or above vertical places can be used. Amortization is the process of paying regular installments in order to take care of a financial obligation. When you buy a distressed property, amortization may refer to the creation of a payment plan for your mortgage or home loan. This plan will let you make equal and regular payments for the mortgage term (which is called the amortization period).Each payment made in amortization goes towards paying interest and reducing the principal owed. Amortization Period is the term of a loan or the amount of time needed to recover the net investment made in a specific project. When it comes to foreclosed real estate, your amortization period will likely be the term of your home loan. Appraisal is an official and written estimation of a property value. An appraisal is made by a qualified professional who inspects the property and analyses the various aspects of a property before giving his or her opinion about the value of the real estate. If you are purchasing repossessed homes, the appraisal is usually completed for you by a government agency or lender. Since this appraisal can be rushed, there is a good chance that some of the foreclosed homes you look at will be undervalued, meaning that their actual value will be higher - sometimes much higher - than the appraisal suggests. Appraisal Report Options include Self- Contained Appraisal Report, Summary Appraisal Report and Restricted Use Appraisal Report. Appraiser is the professional person who appraises real estate or other types of property. This person is usually chosen to do an appraisal because they are specially trained and educated in the process. An appraiser will use their experience, the facts they have available, as well as their judgment when appraising property. Arms- Length Transaction is a transaction between unrelated parties under no duress. Felderman Appraisals, Dubuque, Iowa GLOSSARY As Completed Market Value, refer to Prospective Market Value. As Is Market Value is the "estimate of market value of real property in its current physical condition, use, and zoning as of the appraisal's effective date." Source: Interagency Appraisal and Evaluation Guidelines, December 2010. As Stabilized Market Value, refer to Prospective Market Value. Asking Rent is the rent for commercial real estate as a weighted average quoted as an annual Triple Net (NNN) rent or a Gross rent per square foot Assessed Value applies in ad valorem taxation and refers to the value of a property according to the tax rolls. Assessed value may not conform to market value, but it is usually calculated in relation to a market value base. Aviation Easement is the right adopted by airports and others to own the right to airspace around an airport or property. Airports seek this right to use the air space for flights, and other airport activities and it may limit the height of buildings on your property. Building Area is the total area of the buildings included in the transaction, expressed in square feet. Bulk Value is the value of multiple units, subdivided lots, or properties in a portfolio as though sold to a single buyer in one transaction; sometimes called bulk sale value or wholesale value. Business Enterprise Value (BEV) is the "value contribution of the total intangible assets of a continuing business enterprise such as marketing and management skill, an assembled work force, working capital, trade names, franchises, patents, trademarks, contracts, leases, customer base, and operating agreements." Capitalization Rate is known as "return on and return or capital, the capitalization rate is simply the ratio of the value of an investment and the net income that is derived from the investment of security. The capitalization rate is usually expressed in percentages and can help investors decide whether an investment is a good deal or not. Felderman Appraisals, Dubuque, Iowa GLOSSARY Cash Equivalency Value is the procedure in which the sale prices of comparable properties sold with atypical financing are adjusted to reflect typical market terms. Cash Equivalent Price is the "price of a property with above or below - market financing expressed in the terms of the price that would have been paid in an all -cash sale." Client is the party or parties who engage an appraiser (by employment or contract) in a specific assignment. ( USPAP) Condemnation by the right of eminent domain is the process of taking over private property for use by the public. In this process, the property owner is given fair reimbursement or compensations for the inconvenience. Contract is a written or oral legally binding agreement in which the person named promises to do or avoid specific things. Obviously, this is a very general definition for a very general term. Specifically, in real estate, there are many types of contracts that the buyer and seller needs to be aware: options, home loans, leases, tenant agreements, deeds, loans, escrow agreements, contracts of sale, listings, and others. Contract Rent The actual rental income specified in a lease. Covenant is a written contract contained in the deed. A covenant declares that an individual either will avoid certain acts on a specific property or will perform certain actions on the property. A covenant can also stipulate or prohibit specific uses of a piece of real estate. Credible (Appraisal) Assignment Results, means "worthy of belief' per USPAP using the Scope of Work Rule. Under this rule, credible assignment results depending on meeting or exceeding both (1) the expectations of parties who are regularly intended users for similar assignments, and (2) what an appraiser's peers' actions would be in performing the same or similar assignment. Deed is a legal written document that has been delivered, sealed, and properly executed. A deed involves a grantor and grantee. In a deed, the grantor or person with ownership of a property conveys to the grantee an interest in the property, the title, or some rights to the property in question. Felderman Appraisals, Dubuque, Iowa GLOSSARY Deferred Maintenance is requirements for maintenance, repairs, and correction of a property that are not yet fulfilled. The understanding is that these repairs will be made, but are delayed until a future point in time. Depreciation is this term actually has three meanings: 1) the disparity between the cost of replacing a property and the market value of the property, as determined by an appraisa1.2) the yearly right of part of an asset made during accounting procedures.3) the reduction in property value, usually occurring over some time. Depreciation may result from neglect of a property, sudden changes in a neighborhood, and property damage. Disposition Value is the "most probable price which a specified interest in real property is likely to bring under all of the following conditions: 1) Consummation of a sale will occur within a limited future marketing period specified by the client; 2) The actual market conditions currently prevailing are those to which the appraised property interest is subject; 3) The buyer and seller is each acting prudently and knowledgeably; 4) The seller is under compulsion to sell; 5) The buyer is typically motivated; 6) Both parties are acting in what they consider their best interests; 7) An adequate marketing effort will be made in the limited time allowed for the completion of a sale; 8) Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 9) 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. See also Wholesale (Bulk) and Liquidation Value." Easement is a right or benefit that one landowner may exercise or have on the property of someone else. Easement often includes such things as right -of -way, right of transport, and right of use of common areas. Economic Life is the term of time during which a property will provide a return on the initial investment of the property. Felderman Appraisals, Dubuque, Iowa GLOSSARY Economic Obsolescence is that which reduces the functionality or desirability of a property. Economic obsolescence often as the result of laws that affect real estate property rights or is the result of changes in the use of the property or changes in demand. This is one of the risks of buying foreclosed properties. To lessen this risk, investors interested in bank foreclosures will want to research to make sure that there are no pending laws or economic changes that can affect their investment. Effective Age is a way of indicating the condition of our real estate foreclosures. Calculated by inspectors and appraisers, effective age is given as an age in years. However, the effective age may be either longer or shorter than the actual age of a property, depending on the property's condition and shape. Effective Date of the Appraisal establishes the context for the value opinion. Three categories of effective dates are retrospective, current and prospective; and may be used, according to the intended use of the appraisal assignment. Effective Rent is the rental rate net of financial concessions such as periods of no rent during the lease term and above- or below - market tenant improvements (Tis); may be calculated on a discounted basis, reflecting the time value of money, or on a simple, straight -line basis. Encroachment is the structure, part of the building, part of a structure, or building -- or in fact, any improvements, repairs, or property -- that trespasses on property belonging to another owner. If you are considering buying real estate owned property and wish to do repair work or additions before reselling for profit, it is important to always consult deeds and maps to ensure that your new improvements are not guilty of encroachment. Encumbrance is any liability, lien, charge, claim, or other factor related to a property that will or may decrease the property value but will generally not affect transfer of ownership. Encumbrance may affect either the physical shape of the property or the title of ownership. That is, encumbrances may be easements, restrictions, and encroachments. They can also be liens, judgment against an owner or property, and home loans. Felderman Appraisals, Dubuque, Iowa GLOSSARY Excess Land; concerning an improved site, the land that is not needed to serve or support the existing improvement. Concerning a vacant site or a site considered as though vacant, the land not needed to accommodate the site primary highest and best use. Such land may be separated from the larger site and have its own highest and best use, or it may allow for future expansion of the existing or anticipated improvement. See also surplus land. Exposure Time, per USPAP, is the estimated length of time the property interest being appraiser 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. Exposure time is always presumed to precede the effective date of the appraisal, and is a function of price, time and use — not an isolated opinion of time alone. Extraordinary Assumption is "an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions. Comment: Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis." See also hypothetical condition. Fair Value: is "the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date." This is considered applicable to business and accounting valuations. Source: Statement of Financial Accounting Standards No. 157 Fair Value Measurements. Fee Simple Estate is the "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." Federally Regulated Institution is one that is supervised by a federal financial institutions regulatory agency, including a national or state - chartered bank and its subsidiaries, a bank holding company and its non -bank subsidiaries, a federal savings association and its subsidiaries, a federal savings and loan holding company and its subsidiaries, and a credit union. Felderman Appraisals, Dubuque, Iowa GLOSSARY Federally Regulated Transaction is any real estate - related financial transaction in which the Agencies or any regulated institution engages or contracts for, and that requires the services of an appraiser. Floor Area Ratio (FAR) is the relationship between the above - ground floor area of a building, as described by the building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area; also called building -to -land ratio. Full Service Lease is a lease in which rent covers all operating expenses. Typically, full service leases are combined with an expense stop, the expense level covered by the contract lease payment. Increases in expenses above the expense stop level are passed through to the tenant and are known as expense passthroughs. Functional Obsolescence is the reduced property value that is caused by a functional problem or liability. In many cases, functional obsolescence is caused by bad initial design or by age, and may include such things as lack of storage space, bad floor plan, outdated architecture, too -old plumbing, outdated fixtures, ceilings that are too high or too low, or other problems that make modern living difficult. Going Concern Value is the value of a proven property operation. It includes the incremental value associated with the business concern, which is distinct from the value of the real estate only. Going concern value includes an intangible enhancement of the value of an operating business enterprise that is produced by the assemblage of the land, building, labor, equipment, and marketing operation. This process creates an economically viable business that is expected to continue. Going Concern refers to the total value of a property, including both real property and intangible personal property attributed to the business value with an indefinite life. Grantee is the purchaser of a real estate, the individual, group, or organization who receives real estate through conveyance or grant. Grantor is the individual, group, or entity selling property via grant or deed. Felderman Appraisals, Dubuque, Iowa GLOSSARY Gross Building Area (GBA) is the total floor area of a building, including below -grade space but excluding unenclosed areas, measured from the exterior of the walls. Gross building area is computed by measuring to the outside finished surface of permanent outer building walls without any deductions. AU enclosed floors of the building including basements, mechanical equipment floors, penthouses, and the like are included in the measurement. Parking spaces and parking garages are excluded. Gross Income is the forecast of the yearly income made from the management of property or from a business operation. Through foreclosed real estate property, an investor can make the gross income in several ways -- by managing and renting property or by selling multiple properties for yearly profits. Gross Rent Multiplier in single - family or multi - family homes is the ratio between the price of a property and the monthly rental profit. If you are purchasing real estate owned property with the intention of renting it, determining the gross rent multiplier can help you determine whether a property will be profitable in the long run. Highest and Bes Use is 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 productivity. Alternately, the probably use of land or improved property- specific with respect to the user and timing of the use -that is adequately supported and results in the highest present value." Hypothetical Condition is "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of the assignment." Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. See also extraordinary assumption. Intended Use is the use or uses of an appraiser's reported appraisal, appraisal review, or appraisal consulting assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment (USPAP). Felderman Appraisals, Dubuque, Iowa GLOSSARY Intended User is the client and any other party as identified, by name or type, as users of the appraisal, appraisal review, or appraisal consulting report by the appraiser on the basis of communication with the client at the time of the assignment (USPAP). Investment Value is the value of an investment to a particular investor based on his or her investment requirements. In contrast to market value, investment value is value to an individual, not value in the marketplace. Investment value reflects the subjective relationship between a particular investor and a given investment. When measured in dollars, investment value is the price an investor would pay for an investment in light of its perceived capacity to satisfy his or her desires, needs, or investment goals. To estimate investment value, specific investment criteria must be known. Criteria to evaluate a real estate investment are not necessarily set down by the individual investor; they may be established by an expert on real estate and its value, that is, an appraiser. Land to Building Ratio is the relationship between the above - ground floor area of a building and the area of the plot on which it stands; often expressed a ratio of 2 to 1, indicates that the permissible land area is twice the building area. Leased Fee Interest or Leased Fee Estate is an "ownership interest" held by a landlord with the right of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease. Leasehold Interest or Leasehold Estate is the "tenant interest" held by the lessee through a lease conveying the rights of use and occupancy for a stated term under certain conditions. Felderman Appraisals, Dubuque, Iowa GLOSSARY Liquidation Value is the most probable price which a specified interest in real property is likely to bring under all of the following conditions: 1) Consummation of a sale will occur within a severely limited future marketing period specified by the client; 2) The actual market conditions currently prevailing are those to which the appraised property interest is subject; 3) The buyer is acting prudently and knowledgeably; 4) The seller is under extreme compulsion to sell; 5) The buyer is typically motivated; 6) The buyer is acting in what he or she considers his or her best interests; 7) A limited marketing effort and time will be allowed for the completion of a sale; 8) Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 9) 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. See also Wholesale (Bulk) Value and Disposition Value. Marketing Time or Period, per USPAP, is the time it might take to sell the property interest at the appraised market value during the period immediately after the effective date of the appraisal. An institution may request an appraiser to separately provide an estimate of marketing time in an appraisal. However, this is not a requirement of the Agencies appraisal regulations. Market Rent is the "most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the specified lease agreement including term, rental adjustment and revaluation, permitted uses, use restrictions, and expense obligations; the lessee and lessor each acting prudently and knowledgeably, and assuming consummation of a lease contract as of a specified date and the passing of the leasehold from lessor to lessee under conditions whereby: 1) lessee and lessor are typically motivated; 2) both parties are well informed or well advised, and acting in what they consider their best interests; 3) a reasonable time is allowed for exposure in the open market; 4) the rent payment is made in terms of cash in U.S. dollars and is expressed as an amount per time period consistent with the payment schedule of the lease contract; and 5) the rental amount represents the normal consideration for the property leased unaffected by special fees or concessions granted by anyone associated with the transaction." Felderman Appraisals, Dubuque, Iowa GLOSSARY Market Value is one of the central concepts of the appraisal practice. Market value is differentiated from other types of value in that it is created by the collective patterns of the market. Market Value (FIRREA) means "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1) A reasonable time is allowed for exposure in the open market; 2) Both parties are well informed or well advised, and acting in what they consider their own best interests; 3) Buyer and seller are typically motivated; 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." Source for FIRREA definition is Comptroller of the Currency 12 CFR, Part 34, Subpart C, 34.42 Definition [g]. Net Lease is one in which all or some of the operating expenses are paid directly by the tenant. The landlord never takes possession of the expense payment. In a Triple Net Lease, all operating expenses are the responsibility of the tenant, including property taxes, insurance, interior maintenance, and other miscellaneous expenses. However, management fees and exterior maintenance are often the responsibility of the lessor in a triple net lease. A modified net lease is one in which some expenses are paid separately by the tenant and some are included in the rent. Net Rentable Area (NRA) is the area on which rent is computed, or the Rentable Area of a floor shall be computed by measuring to the inside finished surface of the dominant portion of the permanent outer building walls, excluding any major vertical penetrations of the floor. No deductions shall be made for columns and projections necessary to the building. Include space such as mechanical room, janitorial room, restrooms, and lobby of the floor. Occupancy Rate is the relationship or ratio between the income received from the rented units in a property and the income that would be received if all the units were occupied. Felderman Appraisals, Dubuque, Iowa GLOSSARY Prospective Market Value "as Completed" or "as Stabilized may be appropriate for the valuation of to property interest related to a credit decision for a proposed development or renovation project. According to USPAP, an appraisal with a prospective market value reflects an effective date that is subsequent to the date of the appraisal report. Prospective value opinions are intended to reflect the current expectations and perceptions of market participants, based on available data. Two prospective value opinions may be required to reflect the time frame during which development, construction, and occupancy will occur. The prospective market value "as completed" reflects the property's market value "as of the time that development is expected to be completed. The prospective market value "as stabilized" reflects the property' s market value as of the time the property is projected to achieve stabilized occupancy. For an income - producing property, stabilized occupancy is the occupancy level that a property is expected to achieve after the property is exposed to the market for lease over a reasonable period of time and at comparable terms and conditions to other similar properties. Raw Land is a parcel or tract of land with no improvements, for example, infrastructure or vertical construction. When an appraisal of raw land includes entitlements, the appraisal should disclose when such entitlements will expire if improvements are not completed with a specified time period and the potential effect on the value conclusion. Reasonable Exposure Time is the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based upon an analysis of past events assuming a competitive and open market. Sales Concessions, per USPAP, are cash or noncash contribution that is provided by the seller or other party to the transaction and reduces the purchasers' cost to acquire the real property. A sales concession may include, but is not limited to , the seller paying all or some portion of the purchaser's closing costs (such as prepaid expenses or discount points) or the seller conveying to the purchaser personal property which is typically not conveyed with the real property. Sales concessions do not include fees that a seller is customarily required to pay under state or local always. In developing an opinion of market value, an appraiser must take into consideration the effect of any sales concessions on the market value of the real property. Felderman Appraisals, Dubuque, Iowa GLOSSARY Sales History and Pending Sales, per USPAP, when the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business, analyze: (1) all current agreements of sale, options, and listings of the subject property as of the effective date of the appraisal, and (2) all sales of the subject property that occurred within three years prior to the effective date of the appraisal. Sandwich Lease is "a lease in which an intermediate, or sandwich, leaseholder is the lessee of one party and the lessor of another." Scope of Work, per USPAP, the type and extent of research and analyses in an appraisal assignment. Shell rent is the typical rent paid for retail, office, or industrial tenant space based on minimal "shell" interior finishes (called plain vanilla finish in some areas). Usually the landlord delivers the main building shell space or some minimum level of interior build -out, and the tenant completes the interior finish, which can include wall, ceiling, and floor finishes; mechanical systems, interior electric, and plumbing. Typically, these are long -term leases with tenants paying all or most property expenses. Surplus Land is land not necessary to support the highest and best use of the existing improvement but because of physical limitations, building placement, or neighborhood norms, cannot be sold off separately. Such land may or may not contribute positively to value and may or may not accommodate future expansion of an existing or anticipated improvement. See also excess land. Tract Development, is a project of five units or more that is constructed or is to be constructed as a single development. For purposes of these guidelines, "unit" refers to: a residential or commercial building lot, a detached single - family home, an attached single - family home, and a residence in a condominium, cooperative, or timeshare building. Felderman Appraisals, Dubuque, Iowa GLOSSARY Usable Area is the area actually used by individual tenants. The Usable Area of an office building is computed by measuring to the finished surface of the office side of corridor and other permanent walls, to the center of partitions that separate the office from adjoining usable areas, and to the inside finished surface of the dominant portion of the permanent outer building walls. Excludes areas such as mechanical rooms, janitorial room, restrooms, lobby, and any major vertical penetrations of a multi- tenant floor. Use Value is a concept based on the productivity of an economic good. Use value is the value a specific property has for a specific use. Use value focuses on the value the real estate contributes to the enterprise of which it is a part, without regard to the property's highest and best use or the monetary amount that might be realized upon its sale. See also Value in Use. Value Indication an opinion of value derived through application of the appraisal process. Value in Use is the value of a property assuming a specific use, which may or may not be the property's highest and best use on the effective date of the appraisal. Value in use may or may not be equal to market value but is differently conceptually. The present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. The present value of the future cash flows expected to be derived from an asset or cash - generating unit. The present value applies to financial reporting and considers the value of an asset at the end of its useful life. These meanings differ from the way the term is commonly used in valuation practice. Wholesale Value (See Bulk Value) Definitions obtained from "The Dictionary of Real Estate, Appraisal Institute ", Uniform Standards of Professional Appraisal Practice, Merriam Webster Dictionary or the FDIC Independent Appraisal and Evaluations Guidelines. Felderman Appraisals, Dubuque, Iowa ADDENDUM J APPRAISAL ORDER ENGAGEMENT TERMS Felderman Appraisals, Dubuque, Iowa APPRAISAL ORDER On 28 June 2013, the City of Dubuque Engineering Department Civil Engineer Deron L. Muehring, ordered a Summary Appraisal to be completed on 430 Garfield Avenue and 422 Garfield Avenue, Dubuque, Iowa; identified on Assessor Cards 10 -24- 234 -003 (430, two -level commercial service zoned owner occupied building, with a before and after proposed taking of part of the property) and 10 -24- 234 -002 (422, two -level light industrial zoned owner family occupied business) that are both owned by Robert F. Klauer of Dubuque, Iowa. The appraisal assignment will have a projected completion date of 15 August 2013 with a fee based on $100.00 per hour. Should there be a requirement to provided testimony, that fee includes a minimum daily rate of $1,000.00 to book the day, and fee charges based on $250 per hour. Client — City of Dubuque Intended User — City of Dubuque Engineer Department Intended Use — Determine opinion of market value an existing separate value of both properties, and a hypothetical condition value after the proposed taking of the northern most warehouse section of 430 Garfield Avenue, under appropriate jurisdictional requirements. Effective Date — 7/20/2013 (most recent observation of subject property) Past Services — Felderman Appraisal and Robert Felderman have not performed any services in the past three years on the subject property. Appraiser — Robert J. Felderman, Iowa Certified General Real Property Appraiser Firm — Felderman Appraisals, 55 Bluff Street, Dubuque, Iowa 52001 FeidermwiAppraisrdx Dubuque, Iowa ADDENDUM K ASSESSOR DESCRIPTION SHEETS 430 GARFIELD AVENUE 422 GARFIELD AVENUE Felderman Appraisals, Dubuque, Iowa K1 K2 Dubuque County, IA ,beacon Date Created: 6/28/2013 Summary Parcel ID 1024234003 Alternate ID 4 -2 -3 -1 Property Address 430 GARFIELD AVE Sec/Twp/Rng N/A Brief Tax Description LOT 1- 2 -2 -2, 2- 2 -2 -2, &3 -2 -2 -2 OF MINERAL LOT 106 (Note: Not to be used on legal documents) Deed Book/Page 02 -6554 (4/4/2002) Contract Book/Page N/A Gross Acres 0.00 Net Acres 0.00 Class C - COMMERCIAL (Note: This is for tax purposes only. Not to be used for zoning.) District DUBA- DUBUQUE CITY/DBQ CCMM SCH School District DUBUQUE COMM. SCHOOL DIST Owners Deed Holder Klauer, Robert F 430 Garfield Ave Dubuque IA 52001 Land Lot Area 0.96 Acres; 41,712 SF Click to Enlarge Contract Holder Mailing Address Klauer, Robert F 430 Garfield Ave Dubuque IA 52001 Commercial Buildings Building 1: Addition 1: Adjustments: Building Extras: Store - Retail Small, 2 Story, Built - 1890, 7500 SF, Bsm t - 7500 SF, Warehouse, , 1 Story, Built - 1890, 10480 SF, Bsmt - 0 SF HVAC -, Roof - Sprinkler - exposed wet, 22500 SF Sprinkler - exposed wet, 10480 SF #1 -, Manual Elev., 150 Ft/Min, 2 Stops, Manual Door, 5,000 LB Capacity, 1890, Qty1 #2- , O.H. Door - Power, 10 Ft Wide, 14 Ft High, 1890, Qty1 #3 -, O.H. Door - Power, 10 Ft Wide, 10 Ft High, 1890, Qty1 #4- , O.H. Door - Power, 14 Ft Wide, 14 Ft High, 1890, Qty1 #5- , O.H. Door - Power, 16 Ft Wide, 14 Ft High, 1890, Qty1 Yard Extras #1 - (1) 625 SF, Frame, Average Pricing, Built 2003 Valuation Taxation 2013 2012 2011 2010 + Assessed Building Value $181,560 $181,560 $181,560 $178,000 + Assessed Dwelling Value $0 $0 $0 $0 + Assessed Land Value $70,280 $70,280 $70,280 $68,900 = Gross Assessed Value $251,840 $251,840 $251,840 $246,900 - Exempt Value $0 $0 $0 $0 = Net Assessed Value $251,840 $251,840 $251,840 $246,900 Taxation ay ro erty Taxes Click here to enter the County Treasurer's web site. Tax istory IYear Due Date Amount Paid Date Paid Receipt 2011 March 2013 September 2012 $4,322 $4,322 Yes 3/28/2013 Yes 10/2/2012 535464 2010 March 2012 September 2011 $4,391 $4,391 Yes 3/30/2012 Yes 9/29/2011 482649 ❑ Lotos 2011 2010 + Taxable Land Value $70,280 $68,900 + Taxable Building Value $181,560 $178,000 + Taxable Dwelling Value $0 $0 = Gross Taxable Value $251,840 $246,900 - Military Credit $0 $0 = x Net Taxable Value $251,840 $246,900 (Levy Rate (per $1000 of value) 34.32049 0.00000 Gross Taxes Due $8,643.27 $8,782.50 - Ag Land Credit $0.00 $0.00 - Family Farm Credit $0.00 $0.00 - Homestead Credit $0.00 $0.00 - Disabled and Senior Citizens Credit $0.00 $0.00 = Net Taxes Due $8,644.00 $8,782.00 ay ro erty Taxes Click here to enter the County Treasurer's web site. Tax istory IYear Due Date Amount Paid Date Paid Receipt 2011 March 2013 September 2012 $4,322 $4,322 Yes 3/28/2013 Yes 10/2/2012 535464 2010 March 2012 September 2011 $4,391 $4,391 Yes 3/30/2012 Yes 9/29/2011 482649 ❑ Lotos SwwDeed/Contract Show Deed /Contract ViewOao tan IsBR7SLAE [10180] $IIELC C, . 'Y.Cir11iV15gI1.CO111 50 20 View Mao 1sFR?SL4B [625) 25 25 50 2s13RiBFULL [7500] 150 No data available for the following modules Residential Dwellings, Agricultural Buildings, Sales, County Treasurer Notes, Tax Sale Certificates Click here for help. Disdaima: The inform aeon is this web site represents current data from a working file which is updated regutady. Information is beieved reh'able, butits accuracy cannot be guaranteed. No warranty, expressed or implied, is provided for the data herein or its use Last Data Upload: 6/28/2013 5:50:16 AM L � developed by A The Schneider Corporation Schneider www.schneidercorp.com Du -U The County 1 11 ,beacon Date Created: 6/28/2013 Summary Parcel ID 1024234002 Alternate ID 4 -2 -3 -2 Property Address 422 GARFIELD AVE Sec/Twp/Rng N/A Brief Tax Description 2 -1 -11 E DUB ADD;LOT 1 -1 -2 -2 &4 -2 -2 -2 MIN LOT 106;1 -1 -A & 2 -1 -B MINERAL LOT 100 106; LOT1- 1- A- MINERAL LOT100; LOT2 -1 -B- MINERAL LOT100 (Note: Not to be used on legal documents) Deed Book/Page 09 -7840 (4/20/2009) Contract Book/Page NSA Gross Acres 0.00 Net Acres 0.00 Class C - COMMERCIAL (Note: This is for tax purposes only. Not to be used for zoning.) District DUBA- DUBUQUE CITY/DBQ CCMM SCH School District DUBUQUE COMM. SCHOOL DIST Click to Enlarge Owners Deed Holder Klauer, Robert Fitzgerald A/K/A Robert F Klauer 12468 Oak Brook Place Dubuque IA 52001 Contract Holder Land Lot Area 0.24 Acres; 10,421 SF Mailing Address Klauer, Robert Fitzgerald A/K/A Robert F Klauer 12468 Oak Brook Place Dubuque IA 52001 Commercial Buildings Building 1: Addition 1: Addition 2: Adjustments: Building Extras: Warehouse, 1 Story, Built - 1920, 4458 SF, Bsmt - 0 SF, Store - Retail Small, , 2 Story, Built - 1920, 900 SF, Bsmt - 0 SF HVAC -, Roof - Store - Retail Small„ 1 Story, Built - 1920, 532 SF, Bsmt - 0 SF HVAC -, Roof - Mezzanine- open storage/Whse/wd, 1816 SF #1- , O.H. Door - Power, 10 Ft Wide, 14 Ft High, 1920, Qty1 #2- , O.H. Door - Power, 10 Ft Wide, 10 Ft High, 1920, Qty1 Valuation Taxation 1 2011 2013 2012 2011 2010 + Assessed Building Value $136,880 $136,880 $136,880 $134,200 + Assessed Dwelling Value $0 $0 $0 $0 + Assessed Land Value $17,540 $17,540 $17,540 $17,200 = Gross Assessed Value $154,420 $154,420 $154,420 $151,400 - Exempt Value $0 $0 $0 $0 = Net Assessed Value $154,420 $154,420 $154,420 $151,400 Taxation 1 2011 2010 +'Taxable Land Value $17,5401 $17,200 +'Taxable Building Value $136,8801 $134,200 +'Taxable Dwelling Value $01 $0 = Gross Taxable Value $154,420 $151,400 - Military Credit r $0 $0 = Net Taxable Value $154,420 $151,400 x Levy Rate (per $1000 of value) 34 32049 0.00000 Gross Taxes Due r $5,299.77 $5,385.46 - Ag Land Credit $0.00 $0.00 - Family Farm Credit $0.00 $0.00 - Homestead Credit $0.00 $0.00 - Disabled and Senior Citizens Credit $0.00 $0.00 = Net Taxes Due $5,300.00 $5,386.00 pay OroOerty Taxes 'lick here to enter the County Treasurer's web site. Tax Oistory Year DueDate Amount Paid Date Paid Receipt 2011 March 2013 September 2012 $2,650 Yes 3/28/2013 535471 $2,650 Yes 9/24/2012 2010 March 2012 September 2011 $2,693 Yes $2,693 Yes 3/30/2012 482655 9/26/2011 OQtos Siw Deed/Contract Show Deed /Contr&t Mew Oa° View Mao SlietcCes isser;L].B la 4'] 30 3 2sFR1SLAB 30 (900) 30 12 16 13 31 2` feFR/SLAB (532) 18 18 Sketch by ww.camavSionn.com No data available for the following modules Residential Dwellings, Agricultural Buildings, Yard Extras, Sales, County Treasurer Notes, Tax Sale Certificates. Click here for help. Disciame : The inform aeon in this web site represents current data from a working file which is updated regularly. Information is beieved reliable, but its accuracy cannot be guaranteed. No warranty, expressed or implied, is provided for the data herein or its use Last Data Upload: 6/28/2013 5:50:16 AM L 10 developed by w The Schneider Corporation Schneider www.schneidercorp.com ADDENDUM L DOCUMENTATION INFORMATION FROM OWNER, CLIENT, APPRAISER OR OTHERS OWNER PROPERTY DISCLOSURE FORMS L1 SURVEY PHOTOGRAPHS FROM OWNER L2 SCOPE OF THE BEE BRANCH PROJECT L3 EASEMENT MAP AND AGREEMENT (430) L4 WARRANTY DEED 2002 (430 GARFIELD) L5 WARRANTY DEED 2009 (422 GARFIELD) L6 CITY OFFER TO PURCHASE 430 GARFIELD L7 DNR LUST UST DUBUQUE PROPERTY LIST L8 Felderman Appraisals, Dubuque, Iowa COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT Date .7/25Jr3 Business /Owner(s) ROB KLAUER Property Address 930 GARFIELD AVE, DUBUQUE, IA 52001 Approximate Age or Property: \nn + -472 Date Purchased: av C202 In connection with this appraisal or listing, we make the following disclosures to the best of my /our knowledge regarding my /our property with the knowledge that even though this is not a warranty. 1. BUILDING SYSTEMS Are there any problems affecting: (a) Electrical wiring/ Yes (b) Air condition /cooling system? Yes �� (°) (c) Plumbing? Yes lL0 (d) Heating? Yes (17 (e) Pool? Yeb Nu (f) Appliance? Yes to (g) Floors? Yes OcT) (h) Water System (well)? Yes to (i) Sprinkler system? Yes No (j) Chimneys /Fireplaces/ Yes o (k) Is there anything else not mentioned? Yes No If any are yes, please describe \\ Po Ce a4ZAwl o.tw. r,k - ,wti\A„ Lame Act h & ..sJ ce "\DOC( •' -Bs5cu.varj /.%o )oast¢ ex�shs 2. LAND /FOUNDATION: (a) Is the property located on fill? 71 (b) Have any sliding, setting, earth movement, upheaval or earth stability problems occurred on your property or in the immediate neighborhood? Yes No (c) Any defects /problems relating to the foundation/basement? Ye No (d) Has water /dampness condition ever existed in your basement/space? cps o If any are yes, please describe ` „.,.q . - x5t.14.4 'oS Vxea: ��d - t.(s.a.,.\■ dwti.ae , M - brS•uw.sa ,ac, o. clat,tr Page I of 5 Felderman Appraisals FeldennanAnnraisals(a)rmail.com Continental Realty Dubuque ContincntalRealtyDubuquefr )gmail.com 55 Bluff Street, Dubuque, IA 52001 Initials (563) 557 -1465 Office, or Fax (563) 588 -4214 COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT 3. ROOF: (a) Age k-g,Ut?Years (b) Has the roof ever leaked during your ownership? Y�lo (c) Has the roof ever replaced or repaired during your ownership? �Ye�, No (d) Are there any problems with the roof? �es No If any are yes, please describe - 3,1ea_err. r .a a sito.J 5pcNu>•3 - Rtuaru.t 4. SEWAGE or SEPTIC: (a) Is the property connected to a public sewer system? 04o (b) Is there a septic tank/cesspool system serving this property? Ye() If yes, when was it last serviced ?) (c) Do you know of any problems relating to the septic tank/sewer system? —Yes-No- It any are yes, please describe 5. DRAINAGE/WATER: (a) Is the property located in a flood plain zone Yes ,0 (b) Has the property ever had drainage or flooding problem? Ye (c) Have any properties in the immediate neighborhood ever had drainage or flooding problem? If any are yes, please describe 6. BOUNDARIES: Yes) (a) Have you ever had a survey of your property done? Yes (E) (b) Are the boundaries of your property marked in any way? es No If so, please describe or provide sketch Page 2 of 5 Initials Felderman Appraisals FcldcmtanAnpmisals(cDgmail.com Contincmal Realty Dubuque ContinentalRealtvDubunue (tgmail.com 55 Bluff Street. Dubuque, IA 52001 (5631557 -1465 Office. or Fax (563) 588-4214 COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT 7. ADDITIONS /REMODELS: (a) Were any structural additions, changes or repairs made to the property by former owners WITHOUT obtaining all necessary permits and govemment approvals? Yes (b) Have you made any structural additions, changes, or repairs to the property? 6ls No (c) Have you obtained all necessary permits and govemment approvals? Ye ' No If any are yes, please describe be. cost, &, S 8. OWNERS ASSOCIATION: (a) Is the property subject to rule and regulations of any owners association. Ye e (b) Are there any problems relating to any common area? Yes (b) Are there any conditions that may result in an increase in taxes /assessments? Vest$lo (b) Are there any pending /threatened claims or lawsuits against the association? Ye If any are yes, please describe 9. MARKET AREA: (a) Is there any amount of noise from any source (for example, airplanes, traffic, schools or business) that affects the property? (b) Are there any other neighborhood conditions or problems affecting the property? If any are yes, please describe Page 3 of 5 Initials Yes Ye No Fcldcrman Appraisals FeldennanAooraisalsagmail.com Continental Realty Dubuque ContinentalRealtyDubuque Cdgmail.com 55 Bluff Street. Dubuque, Lk 52001 (563) 557 -1465 Office, or Fax (563) 588 -4214 2 COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT 10. MISCELLANEOUS: (a) Does the property now contain or has it ever contained any toxic substance, mold, asbestos or lead paint? Yes& (b) Does the property contain or has it ever contained any underground tanks? Yee) if so, where? (c) Are there any known violations of local, state or federal govemment laws or regulations relating to this property? Yes V (d) Have any termite /pest control reports on the property been prepared in the last five years? Ye t o (e) Are there any encroachments, overlaps, boundary line disputes or unrecorded easements relating to this property? Yes (f) Are there any existing or threatened legal actions affecting this property? Yesc) (g) Are there any past or present problems with driveways, walkways, patio, floodwalls, fences, retaining walls, party walls, on the property or adjacent properties? Yes (h) Is the property located on an earthquake fault? (No explanation required) Ye (i) Are there any bonds or assessments affecting this property? Yes C% 0) Does the building have central air conditioning? (No explanation required) o (k) Is the building equipped with operable smoke detectors? es o (I) Are any of the property's mechanical systems leased or rented? Yet (m) Have there been any significant repairs made to the property or to any of its components systems or within the last five years? (If yes, please describe using additional sheets if necessary) (n) Is the property located next to or in close proximity of a dump, Junk yard, or toxic disposal site? Ye No (o) Has the property been tested for radon gas ?.. Yes If any are yes, please describe Page 4 of 5 Initials Felderrnan Appraisals FcldcnnanApnraisals(a tunail.com Continental Realty Dubuque Continen ralRealtvDubuquc(a)gmail.com 55 Bluff Street, Dubuque, IA 52001 (563) 557 -1465 Office, or Fax (563) 5883214 COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT 11. REPORTS: if applicable and available, please attach copies; (a) Surveys (b) Structural Inspection Report (c) Building Permits (d) Septic (e) Soil Report (f) Termite /Pest Control (g) Engineering Reports (h) Radon Inspection Report (1) Disclosure Statements (j) Owner's Association Documents: (Conditions, Covenants & restrictions (CC &R's), Articles, bylaws, or Financial Statements of Homeowners) (k) Pest control warranties (I) Mold Inspection Reports (m) Lead Inspection or abatement Reports (n) Any Environmental Reports (o) Any report or requirement from any govemmental agency 12. GENERAL CONDITION (a) Do you know of any other facts, conditions, circumstances which may affect the value, beneficial use or desirability of this Property? Yet) If any are yes, please describe The above information is true and correct to the best of my /our knowledge and, except as set forth herein, no material problems exist with respect to the property as of the date set forth above. I /we hereby authorize the fumishing of the foregoing information to the identified client of this appraisal report. OWNER VialYdarno 1 DATE 175)17 Address, Phone # /Fax #: re v '/o 3 - sash - 9.1 no 7 Page 5 of 5 Felderman Appraisals FeldennanAppraisals@gmail.com Continental Realty Dubuque ContinentalRcaltvDubuaue @gmail.com 55 Bluff Street, Dubuque, IA 52001 Initials (563) 557 -1465 Office, or Fax (563) 588 -4214 COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT Business/Owner(s) ROB KLAUER Date lial /f3 Property Address 422 GARFIELD AVE, DUBUQUE, IA 52001 Approximate Age or Property: s Date Purchased: In connection with this appraisal or listing, we make the following disclosures to the best of my /our knowledge regarding my /our property with the knowledge that even though this is not a warranty. 1. BUILDING SYSTEMS Are there any problems affecting: (a) Electrical wiring? Yes (b) Air condition /cooling system? Yes (c) Plumbing? Yes (d) Heating? Yes (e) Pool? Yes No Yes No (f) Appliance? (g) Floors? (h) Water System (well)? (i) Sprinkler system? 0) Chimneys /Fireplaces? (k) Is there anything else not mentioned? If any are yes, please describe Yes el Yes Yes NN N Yes Yes (N 2. LAND /FOUNDATION: (a) Is the property located on fill? Ye (b) Have any sliding, setting, earth movement, upheaval or earth stability problems occurred on your property or in the immediate neighborhood? Yes Jo (c) Any defects /problems relating to the foundation /basement? (d) Has water /dampness condition ever existed in your basement/space? If any are yes, please describe Yes' No e Pagel ot5 Felderman Appraisals FeldermanADpraisals(gmail.com Continental Realty Dubuquc ContinentalRealtvDubuaue (damail.com 55 BluftStreet, Dubuque. IA 52001 Initials (563) 557 -1465 Office. or Fax (563) 588 -4214 3. ROOF: (a) Age COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT Years (b) Has the roof ever leaked during your ownership? Yes (c) Has the roof ever replaced or repaired during your ownership? Yes o (d) Are there any problems with the roof? Yes o� If any are yes, please describe 4. SEWAGE or SEPTIC: (a) Is the property connected to a public sewer system? (b) Is there a septic tank/cesspool system serving this property? If yes, when was it last serviced ?) (c) Do you know of any problems relating to the septic tank/sewer system? If any are yes, please describe 5. DRAINAGE/WATER: (a) Is the property located in a flood plain zone (b) Has the property ever had drainage or flooding problem? (c) Have any properties in the immediate neighborhood ever had drainage or flooding problem? If any are yes, please describe 6. BOUNDARIES: (a) Have you ever had a survey of your property done? (b) Are the boundaries of your property marked in any way? If so, please describe or provide sketch &No Yes C`_'/ Ye No Yes o Ye No Yes to Page 2 of 5 Feldennan Appraisals Feldem nnAppmisals(Wgntail.com Continental Realty Dubuque ContinenialRealtvDubuque (a)¢mail.cont 55 Bluff Street, Dubuque. IA 52001 Initials (563) 557 -1465 Office, or Fax (563) 588 -4214 COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT 7 ADDITIONS/REMODELS: (a) Were any structural additions, changes or repairs made to the property by former owners WITHOUT obtaining all necessary permits and govemment approvals? Yes to (b) Have you made any structural additions, changes, or repairs to the property? Yes& (c) Have you obtained all necessary permits and govemment approvals? __YetN6 If any are yes, please describe 8. OWNERS ASSOCIATION: (a) Is the property subject to rule and regulations of any owners association. Ye (b) Are there any problems relating to any common area? Ye o (b) Are there any conditions that may result in an increase in taxes/assessments? Yes �o (b) Are there any pending /threatened claims or lawsuits against the association? Yes 69 If any are yes, please describe 9. MARKET AREA: (a) Is there any amount of noise from any source (for example, airplanes, traffic, schools or business) that affects the property? (b) Are there any other neighborhood conditions or problems affecting the property? If any are yes, please describe Yes G Yes' No Page 3 of 5 Feldennan Appraisals FeldennanAppmi$als @gmail.com Continental Realty Dubuque ContinentalRealtyDubuque@gmail.com 55 Bluff Street. Dubuque, IA 52001 Initials (563) 557-1465 Office, or Fax (563) 5884214 COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT 10. MISCELLANEOUS: (a) Does the property now contain or has it ever contained any toxic substance, mold, asbestos or lead paint? Ye f�`o ) (b) Does the property contain or has it ever contained any underground tanks? Yes If so, where? (c) Are there any known violations of local, state or federal govemment laws or regulations relating to this property? (d) Have any termite /pest control reports on the property been prepared in the last five years? Yes& (e) Are there any encroachments, overlaps, boundary line disputes or unrecorded easements relating to this property? Ye o (f) Are there any existing or threatened legal actions affecting this property? Ye (g) Are there any past or present problems with driveways, walkways, patio, floodwalls, fences, retaining walls, party walls, on the property or adjacent properties? Yes!f5o (h) Is the property located on an earthquake fault? (No explanation required) Ye (1) Are there any bonds or assessments affecting this property? Yes) (j) Does the building have central air conditioning? (No explanation required) es No (k) Is the building equipped with operable smoke detectors? Yes o (I) Are any of the property's mechanical systems leased or rented? Yes (m) Have there been any significant repairs made to the property or to any of its components systems or within the last five years? Yes to (If yes, please describe using additional sheets if necessary) Yes 0, (n) Is the property located next to or in close proximity of a dump, junk yard, or toxic disposal site? Yes L"/ (o) Has the property been tested for radon gas ?.. Ye�No� If any are yes, please describe Page 4 of-5 Feldcrman Appraisals FcldcrmanAppraisals(agmail.com Continental Realty Dubuque ContinentalRealtvDubuquc Rmail,com 55 Bluff Street, Dubuque. IA 52001 Initials (563) 557 -1465 Office. or Fax (563) 588-4214 COMMERCIAL PROPERTY OWNER DISCLOSURE STATEMENT 11. REPORTS: if applicable and available, please attach copies; (a) Surveys (b) Structural Inspection Report (c) Building Permits (d) Septic (e) Soil Report (f) Termite /Pest Control (g) Engineering Reports (h) Radon Inspection Report (i) Disclosure Statements (j) Owner's Association Documents: (Conditions, Covenants & restrictions (CC &R's), Articles, bylaws, or Financial Statements of Homeowners) (k) Pest control warranties (I) Mold Inspection Reports (m) Lead Inspection or abatement Reports (n) Any Environmental Reports (o) Any report or requirement from any govemmental agency 12. GENERAL CONDITION (a) Do you know of any other facts, conditions, circumstances which may affect the value, beneficial use or desirability of this Property? Ye No If any are yes, please describe The above information is true and correct to the best of my /our knowledge and, except as set forth herein, no material problems exist with respect to the property as of the date set forth above. I/we hereby authorize the fumishing of the foregoing information to the identified client of this appraisal report. OWNER i�jat�tt DATE ___77z5/0 Address, Phone # /Fax #: -SCo' - ,/n/Co • ie .34e 3 - s SGo c &e17 Page 5 of 5 Initials Feldennan Appraisals FeldennanAparaisals @gmaiIconm Continental Realty Dubuque ContinentalRealtvDubuquea mail.com 55 Bluff Street. Dubuque, IA 52001 (563) 557 -1465 Office. or Fax (563) 588-4214 PHOTOGRAPHS OF IWI SURVEY, OWNER PROVIDED SHOWROOM — MAIN LE AL VACANT - UPPER LEVEL 430 GARFIELD Feldennan Appraisals, Dubuque, Iowa PHOTOGRAPHS OF IWI SURVEY, OWNER PROVIDED FeMerman ApprairaLs, Dubuque, Iowa Scope of the Bee Branch Projects XI 0 a o❑1 ❑❑ ❑❑many Du❑uD.ae citiLIns lidng in t❑e Bee Branc❑ ❑ aters❑ed were waiting out a tornado warning in t❑eir ❑asement w❑en Dea❑y rains D'oduced a Lry D ersonal disastert❑at salo❑t❑eir IiLI s❑ Dollowing t❑e 1E00 storrnEtOe City exDanded O 20113300 Cdr an engineering study called t❑e Drainage Basin ❑aster Dian LDB❑ ❑ Comdeted in tOa all o❑2001 Dt❑e DB❑ ❑ determined t❑at a❑❑roximately 1E1 ❑r0 Domes and ❑usinesses are at ris ❑o❑bod damage during Dea❑y rains❑ ❑eaDj rains came again 20020200 0❑and most recently in ally oC2010C IuI T❑e Solution: C addition to identiging t❑e at ris❑Cro❑erties❑t❑e DB❑ ❑ recommended tLree Crolgcts to eliminate tL ris ❑o ❑mod damage❑a ris❑t❑at many DU❑u❑ue residents Da L ex❑rienced as reality 1 ❑Drainage Basin ❑aster Elan ❑rogcts ❑ Carter ❑oad Detention Basin❑ Comdeted in tL sEring o 0200 Cdr 014001)000 2 ❑❑ ❑32nd Street Detention Basin ❑Construction started in tie summer o 0200 and will ❑e comElete oy tie s❑ring o❑2000 ❑❑d00O00❑and 3 ❑Bee Branc❑Cree❑❑estoration ❑rogct ❑Construction oLIt❑r Eflst ❑❑aseEtLe Lower Bee Branc❑Cree❑❑estoration ❑roE ct❑started in SeGtemOaro❑2010 and is scaeduled to De comElete in t❑e III o❑2011 ❑Tills Commercial Section will ❑aL a large ex❑anse o❑o❑en water t❑at will wra ❑around t❑e ®rmer industrial ❑ac ❑site tDat is set to De Erillately redeLIIo❑ed as a retail center❑ ❑ multiuse 1:11/1:11 will line t❑e waterway on t❑e nort❑ast side o❑t❑e creel 1 ITrail ligLting and ❑nc❑es will also line t❑e cree ❑corridor ❑Two o[Irlool are Banned one along 16t0 Street west o❑Sycamore and one at t❑e ❑uduain o[Irloo ❑east oEtDe ❑❑ Y101 II31 oLIra -ass❑ ❑ Imost 000 trees will ❑e Elanted along t❑e cree❑ and around t❑e 16t0 Street Detention Basin❑ TDe entire Bee Branc❑ ❑rogct was Banned to De comEleted ❑y tL sEring o❑ 20130Dut may ex❑and into 20100 TEe su❑E ct [cant land is located witEin t❑e Bee Branc❑waters d and may ❑e taLIn in 20130 1 Refer to the City of Dubuque website on the Bee Branch; http: / /www.cityofdubuque .org /index.aspx ?NID =804 2 Refer to the City of Dubuque website on the Bee Branch; http: / /www.cityofdubuque .org /index.aspx ?N[D =804 File Number: 2002 - 00006555 Seq: 1 1 LIAR -28 -2002 THU 09.50 al KANE NORBY & REDDJ AX h0. 563 582 5312 P. 02 , • i 6555 -02 2002 APR -5 'AM 8: 31 Kt-0W( FLY Nig is I.'fi�:iY COUNTY RECL;UI DER I, 21 DUBUQUE C0.. 0WA FEES T 00 I Prepared By: Brian J. Kane, 2100 Asbury Road. Suite 2, Dubuque, 1A 52001 (563) 582-7980 1 ' rt EASEMENT AGREEMENT A y day of , 2002, by This Easement Agreement ( "Agreement ") is made this ',d and between ROBERT J. WALSER and REBECCA A. WALSER, husband an wife, ( "Parcel A Owners ") and ROBERT F KLAUFR ( "Parcel B Owner "). RECITALS - - - . . ' arcs • to " i it , • . , • , - ,: -. . • "Parcel ". as A . legal description Lot 5. of lot 2 of Lot 2 of Lot 2 of Mineral Lot 106 (locally known as 545 East 191`' Street, Dubuque, Iowa); and B. Parcel B Owner is the owner of the following- described real estate herein referred to as "Parcel B ": Lot 1 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106, Lot 2 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106, Lot 3 Lot 2 Lot 2 of Lot 2 of Mineral Lot 106 of of (locally known as 430 Garfield Avenue, Dubuque, Iowa); C. Parcel B Owner desires to benefit Parcel A Owners by allowing a 25 foot wide ingress/egress easement from Garfield Avenue to Parcel A, on a personal and non - exclusive basis to Parcel A Owners (the "Driveway "); and, D. The purpose of this Agreement is to set forth the rights and duties of the owners of I' rc•e for the and repair attic A and Parcel 13 with respect to the Driveway and to provide maintenance Driveway to bind the and their applicable successors in interest and assigns. and parties THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree upon the following mutual terms and conditions: Page 1 of 3 File Number: 2002 - 00006555 Seq: 1 File Number: 2002 - 00006555 Seq: 3 Milt G.c. Luuc Mu Ud.bt nifl Mill: NUlib'r & ii uli!(;K Ffik NO. 563 582 5312 P. (14 . STATE OF IOWA ) ) ss; o COUNTY OF DUBUQUE ) On this day of L , 2002, before me, the undersigned, a ,„ . / Notary Public in and for the State of low personally appeared Robert J. Walser and Rebecca A. Walser, husband and wife, to me-known to be the prw`Strit MOW in and who executed thy fureguing instrument, and acknowk lged that they executed the sam as their voluntary act and deed. i �� IA *" �.� x ,aw* ~ JAMES E. GROSS Commission Numb. /r /o My Comm. Exp. 4 /FA Public in and for the State oflowa . ROBERT F. KLAUER STATE OF IOWA ) ' ) ss: COUNTY OF DUBUQUE ) r On this Notary Public in and the person named in the same as his voluntary day of i'.. , 2002, before me, the undersigned, a for the State of Iowa, crsonally appeared Robert F. Klauer to me known to be and who executed the foregoing instrument, and acknowledged that he executed act and deed. +� ��JAMES E. GROSS 4 ._ ��� _.. .nom My Comm. Exp. 1 �17 0f rry Public in and f• a tate of Iowa File Number: 2002 - 00006555 Seq: 3 '1 AIL q7%; o, �Y a c 8 ti A •4J5 . t.1as .4 7914 File Number: 2002 - 00006555 Seq: 4 ! • File Number: 2002 - 00006554 Seq: 1 REAL ESTATE AX PAID } M �V.l►t 335.20 655 �— t m F:roci 2N2 APR —5 AM 8: 30 4 -5-02 31•oubuqus l F9AiE COUNTY Ft Ali: i C L Y i6 i i iiii? t, visi + ECORCER COUNTY DUBUQUE CO., IOWA FEES Prepared by Brian J. Kane, KANE, NORDY & REDD1CK, P.C., 2100 Asbury Road, Suitc 2, Dubuquc, IA 52002 563/582-7980 Address Tax Statement: Mr. Robert F. Klauer, 481 W. Locust Street, Dubuque, IA 52001 Space Above This Line for Recorder WARRANTY DEED) For the consideration of One Dollar ($1.00) and other valuable consideration, ROBERT J. WALSER and REBECCA A. WALSER, husband and wife, ao hereby Convey to ROBERT r. K,AT:ER, the following described real estate in Dubuque County, Iowa: Lot 1 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106, Lot 2 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106, Lot 3 Lot 2 Lot 2 Lot 2 Mineral Lot 106. of of of of Grantors do Hereby Covenant with Grantees and successors in interest that Grantors hold the real estate by title in fee simple; that they have good and lawful authority to sell and convey the real estate; that the seal estate is Fi ee and Clear of all Liens and Encumbrances except as may be above stated, and Grantuis Warrant Defend the lawful be covenant to and real estate against the claims of all persons except as may above stated. Each of the undersigned hereby relinquishes all rights of dower, homestead and distributive share in and to the real estate Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and as masculine or feminine gender, according to the context. Dated: ` "17/ , 2002. ROBERT J. ALSER g14-tut. ' ! /1 /I _! [(f /`�A. V jf j REBECCA WALSER STATE OF IOWA ) COUNTY OF DUBUQUE ) ss: On this ¥1ff day of ; .• ; r L , 2002, before me, the undersigned, a Notary Public in and for the State of Iowa, personall appeared ROBERT J. WALSER and REBECCA A. WALSER, husband knotivn and wife, to me to be the persons named in an d who executed the foregoing instrument, and acknowledged that they the their deed. executed same as voluntary act and 4 4. .. JAMES E. GROSS Milinge :"___li .z_. My Comm.Exp. ignii f. ary Public in a or State of Iowa File Number: 2002 - 00006554 Seq: 1 illlllllilllililllllllllllllf Iij1I11IIIIIIiillI IIIIIIIfillfillllllllllllllilll Doc ID' 0064_5920002 Type; GEN Recorded: 04/23/2009 at 04:17 ;44 PM Fee Amt: $27.00 Page 1 of 2 Revenue Tax; $0.00 Dubuque County Iowa Kathy Flynn Thurlow Recorder F11.2009-00007840 Fe2009- 00007840 OTHE IOWA STATE BAR ASSOCIATION FO E' _R THE LEGAL EFFECT OF THE USE OF Official Form No. 101 - January 2006 {. Robert'D. Klauer ISBA # 000002854. THIS FORM. CONSULT YOUR LAWYER Return Document to: Robert D. Klauer, Attorney at Law , 1043 Main Street, Dubuque,.IA 52001, Phone: (563) 556 -1044 Preparer Information: Robert D. Klauer, Attorney at Law0043 Main Street, Dubuque, IA 52001, Phone: (563) 556 -1044 Address Tax Statement: Robert F..Klauer, 12468 Oak Brook Place, Dubuque, Iowa 52001 'o{ WARRANTY DEED For the consideration of $3.00. (three) . Dollar(s) and other valuable consideration, Robert D. Klauer and.Livija•Klauer, husband and wife as JT • do hereby Convey to Robert Fitzgerald. Klauer a/k/a Robert F. Klauer the fullvwirig dvSGibud Lot 2 lot 1 lot:11 real O5tdk in ... Dalai. ae . County, Iowa: in East Dubuque Addition; Lot 1 lot 1 lot 2 lot.2 Mincral Lot 106; Lot 4 lot 2 lot 2 of of of of of of of of of lot 2 of Mineral Lot 106; Lot 1 of lot 1 of lot A of Mineral Lot 100; and Lot 2 of lot 1 of lot B of Mineral Lot 100; all in the City of Dubuque, Iowa, according to the recorded plats thereof.. Subject to Easement of record. r- •' This Deed is exempt from Declaration of Value Form for the reason that same is given between parents and child for Title purposes as a gift without dollar consideration: Grantors do Hereby Covenant with grantees, and successors in interest, that grantors hold the real estate by title in fee simple: that they have good and lawful authority. to sell and convey the real estate; that the real estate is Free and Clear of all Liens and Encumbrances except as may be above stated; and grantors.Covenant to Warrant and Defend the real estate against the lawful claims of all persons except . Words and phrases.herein, includingtacknowledgment•hereof, .shall be constrUed as in the singular or.plural number, and as masculine Dated: . December. 29 2006 k Ear,- A Js ; .00P& i 1111691, '1�_ , �� - rancor Af f ∎1111 Grantor .obert rawer L' ija 'fig (Grantor) (Grantor} STATE OF IOWA , COUNTY OF DDB UQi3E' .. .... .. .. I- -ill- • 11. r .. • husband and wife.as: JT • . ;Tess1'. a Nava . or , Notary Public (This form.of acknowledgment for individual orantor(s) only JESSICA NAVA Comm as :an Number ?91.19 My COT 0. E.c. a da ress Jinx state File Number: 2009 - 00007840 Seq: 1 STATE OF IOWA ) ) ss: COUNTY OF DUBUQUE ) AFFIDAVIT RE: Real Estate Legally Described as: Lot 2 of Lot I of Lot I in East Dubuque Addition; Lot 1 of Lot 1 of Lot 2 of Lot 2 of Mineral Lot 106; Lot 4 of Lot 2 of Lot 2 of Lot 2 of Mineral Lot 106; Lot 1 of Lot 1 of Lot A Of Mineral Lot 100; and Lot 2 of Lot 1 of Lot B of Mineral Lot 100; all in the City of Dubuque, Iowa, according to the recorded Plats thereof. Subject to easement of record. COME NOW the undersigned parties, Robert D. Klauer and Livija Klauer, husband • . . •. I e - I IL Deed - Joint Tenancy conveying the above - described real estate to their son, Robert F. Klauer, and his spouse, Lisa L Klauer, husband and wife, as joint tenants with full rights of survivorship and not as tenants in common IT IS HEREBY STATED and affirmed that said Deed was retained by the Grantors and not delivered to the Grantees until January 1, 2009, at which time said Deed was delivered conveying the property at that time as a gift to the Grantors' son and his spouse. This transfer was madc as a gift without dollar consideration. THE EFFECTIVE DATE of the gift and delivery of the Deed and conveyance of the properly was January 1, 2009, the same date the Deed was delivered. THE DEED was retained by the Grantors in their possession from the date of its execution until the date of delivery. Dated this day of April, 2009. Subscribed and sworn to before me on this,97bfA day of April, 2009. Notary Public in and for the State of Iowa SHARI N. STEWARD Commission Number 723096 My Comm. Exp. JUN 25, 2009 File Number: 2009 - 00007840 Seq: 2 OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: Robert F. Klauer, Seller SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer) offers to buy all of Seller's right, title and interest in and to the real estate in Dubuque County, Iowa, described as follows: That part of Lots 1 of 2 of 2 of 2; 2 of 2 of 2 of 2, and 3 of 2 of 2 of 2, of Mineral Lot 106 shown on attached Exhibit A (the Real Estate). Buyer will pay all costs of survey and platting the Real Estate following the Closing. Seller shall cooperate fully in all surveying and platting. SECTION 2. PURCHASE PRICE. The Purchase Price shall be as follows, payable in cash at Closing: $400,000.00 subject to all of the terms and conditions herein. SECTION 3. REAL ESTATE TAXES. Seller shall pay all unpaid real estate taxes for fiscal years prior to fiscal year 2013 -2014 and real estate taxes for fiscal year 2013-2014 prorated to the date of possession. SECTION 4. SPECIAL ASSESSMENTS. Buyer shall pay all special assessments which are a lien as of the date of closing. SECTION 5. RISK OF LOSS AND INSURANCE. Seller shall bear the risk of loss or damage to the Real Estate prior to closing or possession, whichever first occurs. Seller agrees to maintain existing insurance and Buyer may purchase additional insurance. In the event of substantial damage or destruction prior to closing, this Agreement shall be null and void; provided, however, Buyer shall have the option to complete the closing and receive insurance proceeds regardless of the extent of damages. The Real Estate shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before the closing date. SECTION 6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its present condition and delivered intact at the time possession is delivered to Buyer, provided, however, if there is loss or destruction of all or any part of the Real Estate from causes covered by the insurance maintained by Seller, Buyer at its option may agree to accept such damaged or destroyed Real Estate together with such insurance proceeds in lieu of the Real Estate in its present condition and Seller shall not be required to repair or replace same. SECTION 7. POSSESSION AND CLOSING. If Seller timely performs all obligations, and all contingencies are met or waived, possession of the Real Estate shall be delivered to Buyer on or before August 1, 2013 (the Closing Date), or such other date as the parties 062513bal may agree in writing with any adjustments of taxes, rent, insurance, and interest to be made as of the date of transfer of possession. SECTION 8. FIXTURES. All property that integrally belongs to or is part of the buildings on the Real Estate, whether attached or detached, such as light fixtures, shades, rods, blinds, awnings, windows, storm doors, screens, plumbing fixtures, water heaters, water softeners, automatic heating equipment, air conditioning equipment, wall to wall carpeting, built -in items and electrical service cable, outside television towers and antenna, fencing, gates and landscaping shall be considered a part of Real Estate and included in the sale. SECTION 9. USE OF PURCHASE PRICE. At time of settlement, funds from the Purchase Price may be used to pay taxes and other liens and to acquire outstanding interests, if any, of others. SECTION 10. ABSTRACT AND TITLE. Seller, at its expense, shall promptly obtain a lien search or an abstract of title to the Real Estate continued through the date of acceptance of this offer which shall show merchantable title in Seller in conformity with this agreement, Iowa law and Title Standards of the Iowa State Bar Association. The abstract shall become the property of the Buyer when the purchase price is paid in full. Seller shall pay the costs of any additional abstracting and title work due to any act or omission of Seller, including transfers by or the death of Seller or its assignees. SECTION 11. DEED. Upon payment of the purchase price, Seller shall convey the Real Estate to Buyer, by Warranty Deed. SECTION 12. TIME IS OF THE ESSENCE. Time is of the essence in this contract. SECTION 13. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. If Seller, immediately preceding acceptance of this offer, holds title to the Real Estate in joint tenancy with full right of survivorship, and the joint tenancy is not later destroyed by operation of law or by acts of the Seller, then the proceeds of this sale, and any continuing or recaptured rights of Seller in the Real Estate, shall belong to Seller as joint tenants with full rights of survivorship and not as tenants in common; and Buyer, in the event of the death of either Seller, agree to pay any balance of the price due Seller under this contract to the surviving Seller and to accept a deed from the surviving Seller consistent with paragraph 11. SECTION 14. JOINDER BY SELLER'S SPOUSE. Seller's spouse, if not a titleholder immediately preceding acceptance of this offer, executes this contract only for the purpose of relinquishing all rights of dower, homestead and distributive shares or in compliance with Section 561.13 of the Iowa Code and agrees to execute the deed or real estate contract for this purpose. 2 SECTION 15. REMEDIES OF THE PARTIES. a. If Buyer fails to timely perform this contract, Seller may forfeit it as provided in the Iowa Code, and all payments made shall be forfeited or, at Seller's option, upon thirty days written notice of intention to accelerate the payment of the entire balance because of such failure (during which thirty days such failure is not corrected) Seller may declare the entire balance immediately due and payable. Thereafter this contract may be foreclosed in equity and the Court may appoint a receiver. b. If Seller fails to timely perform this contract, Buyer has the right to have all payments made returned to them. c. Buyer and Seller also are entitled to utilize any and all other remedies or actions at law or in equity available to them and shall be entitled to obtain judgment for costs and attorney fees as permitted by law. SECTION 16. APPROVAL OF COURT. If the sale of the Real Estate is subject to Court approval, the fiduciary shall promptly submit this contract for such approval. If this contract is not so approved, it shall be void. SECTION 17. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. SECTION 18. CONSTRUCTION. Words and phrases shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender, according to the context. SECTION 19. TIME FOR ACCEPTANCE. If this offer is not accepted by Seller on or before 5 o'clock p.m. July 1, 2013 it shall be void. SECTION 20. OTHER PROVISIONS. 20.1. Buyer, its counsel, accountants, agents and other representatives, shall have full and continuing access to the Real Estate and all parts thereof, upon reasonable notice to Seller for the purpose of inspecting, surveying, engineering, test boring, performance of environmental tests and such other work as Buyer shall consider appropriate, provided that Buyer shall hold Seller harmless and fully indemnify Seller against any damage, claim, liability or cause of action arising from or caused by the actions of Buyer, its agents, or representatives upon the Real Estate (except for any damage, claim, liability or cause of action arising from conditions existing prior to any such entry upon the Real Estate), and shall have the further right to make such inquiries of governmental agencies and utility companies, etc. and to make such feasibility studies and analyses as Buyer considers appropriate. 20.2. Seller warrants that the rights of all tenants shall be terminated by Seller prior to closing and that there will be no tenants whose rights in the Real Estate survive the closing. This covenant shall survive the closing. 3 20.3. Environmental Provision. (1) Seller warrants to the best of its knowledge and belief that there are no abandoned wells, solid waste disposal sites, hazardous wastes or substances, underground storage tanks, burial sites or private wastewater disposal systems located on the Real Estate, the Real Estate does not contain radon gas, asbestos or asbestos containing building materials, or urea - formaldehyde foam insulation, and Seller has done nothing to cause or allow contamination of the Real Estate with hazardous wastes, substances, or pollutants. Seller warrants to the best of its knowledge and belief that the Real Estate is not subject to any local, state, or federal judicial or administrative action, investigation or order regarding any environmental matter. Seller shall provide Buyer with a properly executed Groundwater Hazard Statement showing no wells, solid waste disposal sites, hazardous wastes, underground storage tanks, private burial sites or private wastewater disposal systems on the Real Estate which shall be considered a warranty and representation by Seller to Buyer. (2) Following closing, should the Buyer learn that the environmental condition of the Real Estate requires assessment and /or corrective action pursuant to local, state or federal law, for matters first arising during the time period the Real Estate was controlled by Seller, Seller shall take all action as may be required by law to fully address the environmental condition and Seller shall indemnify and hold harmless the Buyer from any claims and costs, including attorneys' fees and consultants' fees, arising therefrom. (3) These environmental provisions shall survive closing. 20.4. Buyer will pay Seller all expenses, including relocation expenses and other expenses, required by law for costs Seller incurs and for which Seller provides proper evidence. Seller acknowledges that in order to qualify for re- establishment benefits, Seller must actually re- establish the business and incur expenses in connection with the re- establishment. 20.5. Seller agrees to vacate the Real Estate not less than 60 days from the Closing Date. At the end of such thirty -day period, any property remaining on the Real Estate, including personal property, trade fixtures, fixtures and the building, becomes the property of Buyer without further action by Seller. 20.6. Seller agrees to grant to Buyer at Closing a temporary construction easement which will allow Buyer to demolish the building on the Real Estate. Buyer will at its cost demolish the building, including disconnecting and capping all utilities. Following demolition, Buyer will at its cost reconstruct the wall between the building to be demolished and the remaining building, such wall to be sufficient to support the remaining building. Any damage to the remaining building resulting from demolition shall be repaired by Buyer at Buyer's cost. Buyer shall be responsible at Buyer's cost for all 4 shoring and securing the existing wall during and after demolition until demolition is complete and the reconstructed wall is completed. Buyer shall at Buyer's expense repair all damage to the remaining building caused by or resulting from the demotion of the building to be demolished. Buyer shall reimburse Seller for any damage to personal property or inventory caused by or resulting from the demolition of the building to be demolished. 20.7. The Offer is subject to final approval by the City of Dubuque City Council. THIS OFFER IS ACCEPTED Dated: Dated: CITY OF DUBUQUE, IOWA, ROBERT F. KLAUER BUYER SELLER By: Michael C. Van Milligen City Manager 5 Tanks KII-F, Iowa Department of Natural Resources and Public Safety State Fire Marshal Office 2. g; Storage Tanks Leading Iowans in caring for our natural 8/9/2013 3:35:23 PM user: Loo in Advanced search UST Registration Number Advanced Search Release # 4.0.1 for fn UST LUST AST UST 3rd Party Inspections UST Certifications Leak Number: Leak Risk Classification: --Risk Classification -- Site Name: Site Address: Site Qty: DUBUQUE County: -- County -- Supplemental Loc: Site Status: -- Status Type -- Search Page 1 of 1 State of Iowa Home DNR Home Site Policy w e b ma st e r i) d o r. i ow a. g ov p Ewa Department of Natural Resources https: / /programs.iowadnr.gov /tanks /pages /advanced.aspx 8/9/2013 12345 Leak Registration Name Address No. No. 3 8LTX99 198605196 ADAMS SINCLAIR 1081 UNIVERSITY Dubuque, IA 520010000 0 7LTI29 198609756 AMES DEPT STORE 225 JOHN F KENNEDY ROAD Dubuque IA 520010000 O 7LTX76 198606381 AMOCO #0454 33 ue, IAY Dubb u uque, IA 520010000 O 8LTX26 198604785 AMOCO AT THE BRIDGE 351 DODGE ST Dubuque, IA 520010000 O 7LTM24 198604784 AMOCO FOOD SHOP bA BLVD Du 0 Dubuu quuee , IA 52001 0 8LTK50 198609719 AMOCO OIL COMPANY HWY416 Dubuque IA 520010000 O 7LTK29 198603759 AREA RESIDENTIAL CARE INC 2uA Dubb u uquuee , IA 520010000 O 8LTG24 198605966 AWN STOP MART 2 Dubu uque, ue, IA 5 AVE DubA 52001 O 8LTY65 198600417 BEECHER OIL CO 1691 AY RD Dubuquue, e, IA 52001-5729 8LTU16 198913818 BEHR FARM &CITY DIST CO INC/OBA BEHR HARDWARE 15S MAIN STREET Dubuque, IA 520010000 0 9LTA23 198914910 BEST RENTAL 301 CENTRAL AVE Dubuque, IA 520010000 08LTM48 198603487 BFI WASTE SYSTEMS 1055 CENTURY CIRCLE Dubuque, IA 520040000 O 8LTZ39 198608839 BIG 10 CAR WASH 1875 Jue RD Dubuque, IA 52001 0 8LTB93 198608839 BIG 10 CAR WASH 1875 JFK RD Dubuque, IA 52001 O 8LTY91 198608835 BIG 10 MART 871 CENTRAL AVE Dubuque, IA 52001 0 9LTJ57 198710462 BIG 10 MART Dubuque D RD Dubuque IA 52001 O 8LTK45 198915424 BILL MILLER LOGGING CO 380 EAST 4TH STREET Dubuque IA 520010000 0 9LTJ34 197910445 BOOTH STREET SITE 930 N BOOTH 01ST Dubuque, IA 5202001 - 0 8LTU60 197910078 BRYANT SCHOOL Dubuque , IA 000000000 O 8LTL47 198605331 BUDDES SHORT STOP 10619 KEY WEST DRIVE Dubuque, IA 520030000 O 7LTU44 198606560 CASEYS GENERAL STORE #1065 5505 ASBURY RD Dubuque, IA 52001 O 7LTM61 198608324 CASEYS GENERAL STORE #2420 2699 20 1 Dubuquue, e, IA A 5 52001 O 8LTY17 198608323 CASEYS GENERAL STORE #2421 Dubu PERU RD Dubuque, IA 52001 O 8LTG26 198605964 COASTAL SERVICE 400 Dubuqque, ue, IA A 520010000 .i 8LTG55 19860127. COCA COLA BOTTLING COMPANY 2435 KERPER BLVD Dubuque IA 520010000 Page 1 of 1 State of Iowa Home DNR Home Site Policy w e b ma st e r i) d o r. i ow a. g ov p Ewa Department of Natural Resources https: / /programs.iowadnr.gov /tanks /pages /advanced.aspx 8/9/2013 Tanks KII-F, Iowa Department of Natural Resources and Public Safety State Fire Marshal Office 2. g; Storage Tanks Leading Iowans in caring for ow natural 8/9/2013 3:35:49 PM user: Loa in Advanced search UST Registration Number Advanced Search Release O 4.0.1 for fn UST LUST AST UST 3rd Party Inspections UST Certifications Leak Number: Leak Risk Classification: --Risk Classification -- Site Name: Site Address: Site Qty: DUBUQUE County: -- County -- Supplemental Loc: Site Status: -- Status Type -- Search Page 1 of 1 State of Iowa Home DNR Home Site Policy w e b ma st e r i) d nr. i ow a. g ov p rowa Department of Natural Resources https: / /programs.iowadnr.gov /tanks /pages /advanced.aspx 8/9/2013 Leak Registration Name Address No. No. 3 8LTM51 198605177 DAN KRUSE PONTIAC NISSAN BMW 600 CENTURY DRIVE Dubuque, IA 520010000 08LTY15 198608837 DAVE'S DOWNTOWN CONOCO 500 LOCUST ST Dubuque IA 52001 0 9LTG82 197910378 DODGE HOUSE 703 DODGE STREET Dubub ue IA 520010000 O 8LTT76 198603005 DODGE ST MOO ST u 0010000 Dubuque , IA 522 O 8LTN99 198601860 DUBUQUE HARDWOODS INC 205 EAST TH 100 IA 5200 010 Dubuque, 000 0 8LTS19 198912086 DUBUQUE MUNICIPAL AIRPORT 11000 AIRPORT RD Dubuque, IA 520010000 0 9LTE51 199417742 DUBUQUE MUNICIPAL AIRPORT 1ubuq e,IA AIRPORT 2 0100 Dubuque, IA 520010000 O 8LTZ91 198607134 DUBUQUE PUBLIC WORKS GARAGE 925 A 2 Dubuqque, ue, IA 5 520000 10000 O 9LT069 198607134 DUBUQUE PUBLIC WORKS GARAGE 925 A 2 Dubuqque, ue, IA 5 520000 10000 O 9LTI71 198600662 DUBUQUE STAMPING & MFG CO. 3200 JACKSON ST Dubuque, IA 520010000 09LTP01 198607145 DUBUQUE WASTEWATER TREATMENT PLANT 795 JULIAN DUBUQUE DR Dubuque IA 520010000 O 8LTI47 198600407 E J VOGGENTHALER CO INC 400 E TH Dubuquue, IA 520010000 0 8LTR89 199117213 EAGLE DOOR & WINDOW, INC 375 E uINTH Dubuque, IA 520010000 08LTR19 197910040 EAGLE WINDOW & DOOR 375E 91F1 Dubuque, Dubuque, IA 520040000 O 7LTA41 198607011 EARTHGRAINS BAKING COMPANIES, INC 25 MAIN ST Dubuque, IA 520010000 9 9LT074 198607011 EARTHGRAINS BAKING COMPANIES, INC 25 MAIN ST Dubuque, IA 520010000 0 9LTB08 198601054 EAST SIDE JERSEY DAIRY 3510 CENTRAL AVE Dubuque IA 52001 O 7LTU20 198605968 EICHMAN CENTER Dubuu q 1ub HIGHWAY 1 N que, IA 52 52 00 01 O 8LTX98 198605194 ENDERS DIAGNOSTIC CENTER Dub8 buque, ue, IA 5 AVE DuA 520010000 0 8LTR58 198605193 FAMILY MART 3201 CENTRAL AVE Dubuque, IA 52001 -1168 0 9LTG39 198605523 FIRESTONE 395 WEST 7TH ST COR BLUFF ST Dubuque IA 520010000 O 8LTF66 198605305 FLEXSTEEL INDUSTRIES INC BLK BRUNSWICK IA 52 520 001100 Dubuque, 000 8LTM96 197910012 FORMER DEALS ON WHEELS Du DODGE ST 1005 Dub 0000000 Dubuque, IA 000 0 9LTF22 197910345 FORMER GAS STATION 105 LOCUST ST Dubuque, IA 520010000 9LTL05 197910505 FORMER GAS STATION 1891 Asbury Rd Dul ue IA 52001 Page 1 of 1 State of Iowa Home DNR Home Site Policy w e b ma st e r i) d nr. i ow a. g ov p rowa Department of Natural Resources https: / /programs.iowadnr.gov /tanks /pages /advanced.aspx 8/9/2013 Tanks KII-F, Iowa Department of Natural Resources and Public Safety State Fire Marshal Office 2. g; Storage Tanks Leading Iowans in caring for our natural 8/9/2013 3:36:11 PM user: L00in Advanced search UST Registration Number Advanced Search Release # 4.0.1 for fn UST 4 LUST AST UST 3rd Party Inspections UST Certifications Leak Number: Leak Risk Classification: --Risk Classification -- Site Name: Site Address: Site Qty: DUBUQUE County: -- County -- Supplemental Loc: Site Status: -- Status Type -- Search 12345 1234 Page 1 of 1 State of Iowa Home DNR Home Site Policy w e b ma st e r i) d o r. i ow a. g ov p Iowa Department of Natural Resources https: / /programs.iowadnr.gov /tanks /pages /advanced.aspx 8/9/2013 Leak Registration Name Address No. No. 3 8LTI20 198608734 FORMER KATUIN BROTHERS 40 TERMINAL ST Dubuque, IA 520010000 O 8LTX02 198606651 FORMER LUDWIG PROPERTY 1545 SOUTH G Dubuque IA 520010000100 00 0 O 9LTH86 197910402 FORMER SERVICE STATION 200 S LOCUST Dubuque IA 52004 8LTV58 198610221 GAVILON GRAIN, LLC DBA PEAVEY COMPANY - DUBUQUE 505 EAST 7TH STREET Dubuque, IA 520010000 O 8LTO37 198600665 GEORGIA - PACIFIC 21 KERPER BLVD Dubb uu que, IA 520010000 O 7LTI62 198601401 GIESE SHEET METAL CO INC 2125 KERPER BLVD Dubuque, IA 520010000 O 7LTR96 198606169 H & W MOTOR EXPRESS CO 3000 ELM STREET Dubu IA Dubuque, IA 520010000 0 8LTX48 198608353 HAMEL PARKING LOT SERVICE Dubuque, IA STREET Dubue, IA 520010000 O 9LTA04 197910164 HARVEST SAVINGS BANK 125 8TH STREET Dubuque, IA 520010000 O 8LTT68 198608838 HARWOOD 76 3198 CENTRAL Dubuque, IA 520010000 O 9LTP44 198600847 HY -VEE GAS 3270 DODGE ST Dubuque IA 52001 O 8LTL79 198710472 HY -VEE GAS #3 300 S LOCUST Dubuque IA 52001 O 7LTH29 198609270 IDOT MAINT GARAGE P.O. D uque IA8 Dubbuque, IA 520010000 O 8LTA89 198601895 INLAND MOLASSES 5 STREET Dubuque , , IA 520010000 0 9LTG33 198610155 INTERSTATE BRANDS CORP 501 que IA , IA 520010000 Dubuque 5 9 8LTR13 198608614 IOWA COACHES RR 2 HIGHWAY #416 Dubuque, IA 520010000 O8LTC18 198601823 IOWA GAS 1387 DODGE ST Dubuque, IA 520010000 O 7LTH81 198602530 JOHN DEERE DUBUQUE WORKS D 386 Dubuque , IA 520040538 0 8LTZ40 198604780 KC AMOCO 1701 JFK ROAD Dubuque, IA 520010000 O 7LTM25 198604780 KC AMOCO 1701 JFK ROAD Dubuque, IA 520010000 0 7LT052 198601824 KWIK STOP C- STORES 2335 UNIVERSITY AVE Dubuque IA 52001 O7LTV04 198810783 KWIK STOP FOOD MART Du u DODGE STREET Dubuque, IA 520010000 O 7LTV03 198810784 KWIK STOP FOOD MART 2297 Dubuque, IA 52003-0000 Dubuque, IA 52003 -0000 -00 O7LTV02 198810785 KWIK STOP FOOD MART 2255 KERPER 2001 Dubuque, IA 52001 0 8LTG25 198605967 KWIK STOP FOOD MARTS 1685 JOHN F KENNEDY ROAD Dubuc ue, IA 520020000 1234 Page 1 of 1 State of Iowa Home DNR Home Site Policy w e b ma st e r i) d o r. i ow a. g ov p Iowa Department of Natural Resources https: / /programs.iowadnr.gov /tanks /pages /advanced.aspx 8/9/2013 Tanks Iowa Department of Natural Resources orPublic Safety State Fire Marshal Off ce Storage ranks India /nom in canoe Me natural ,tw,wnn Page 1 of 1 8/9/21113 3:36:28 fft •,r •. L-,*• Advance* uarcn V.T S9LArcnn /mutt, for Advanced Search R • /Y.1 co 051 O LUST A57 UST 3AI Wq' IKO1O)2 UST Cc. Y lARUns Lees Nu m etc: Lees RbsCle:sYkedon: --Rts CA= Ykasbn -- S Ice Name: Sire Add t s: SireCiry: DUBUQUE County: - COUntl.. Soo ebmeno I Lcc: Sire Scacte: -Stews lYD2 $ca t Rh 1c :0 3 Ica PLn titration Sall AOOrcLc iLla. 0 arc? AIL 1903)3)27 ONE ROCK SKI 97S CPC D2RT 52NJRTK Y2Ogw. EA 5203100)) IJ ELTR15 197910075 WIG 1E G Rb-rAURP)n 1271 D E /0157 3)3 W. EA 0303)30)) hula] 192031272 WQTINOIL 233Jq 77TY40CWTST 07042w.10. 5203)10)) 0 8E7E78 19O33P 7A9 COP15 SERVICE 01C 07737400.5757 Ougoq w. 1A 52031 - 033 It 9E1O17 197910220 SEI4 ER E DISCOUIn 11 UPREllS IPORKERSERVICE STATION) 2192 CE1nRU AVE Dora.''. VA 520010000 Imo• )LTQS 19033700 HIDCOII JUEUT EOTTL Dula at.. LA SnY 5200!000 205 SLTYD ". "2 1903)1835 HIRES 35 0O TE 2215 CARTER ROAD Du oal TIJ :1 LA 520)100 v TtTEO) 190710710 HIRPCLECPA WASH 3u93 WULTR2nY la 2207007 na 8LT002 190305/89 KIRPCLESIN1OAIR 225 tOO, ) 5 l.; LT tOCE la 2207007 08063 190303000 HNA^DOD HART 375 3277 CEVI 2 1 Duougw.11 520)0)• 1157 10 8E703 190533075 1■11L910' HART on Jo.11520T D 1a 520)1 IJ 8E769 190303035 IQEILSTOP HART B357JoIXY)H5T 32.'AC Du1E1$ 1A 520)1 I0SLTR32 L90530773 HULGREWOILO0 257E 11103 371JgW. 1A 0)03))0)) 0 811119 199017/08 IQRNN NEVIS AGENCf 1110 J7 CE 07770 C95 79.40 Dural•✓, la 220700)7 10 8LTI27 1989/3679 O RIMS PHI WPS66SERVICE 1122 DOD GE ST Dural•✓, la 22070 on h 711033 198005965 RIFLER ELECTR CSI ORKER DERBY 915 03 051 57 Dural.; la 220700)7 10 8E7E118 190300796 1L 2* 20 AILOCD p� �D10 52003 09L1C35 1979/0219 Imp /FRS PLUS IPORHERGPSSTAl1OIl) 1076 UIDVERSITY POfE11UE Doougo3, IA 5200100)) 8LTU93 IC 198007136 PUWCWRS WATER DIVAOTY 01 DUBUQUE 1001 KAYT$JPnc SIRES D00nw.12L 520)100)) IC 811235 190300783 1191 0306E57 1)0014,0...10. 5207100)7 RAYS MCC° It 811167 1979/0096 RICHARD 0 VPII GORDON DO S 4OOSiT 11005.7. EA 520)100)) J 7CRO1 198Q0300 RILEYS AUTOS/A15 OOHPIUg 1935.1975 REVn(DY 'ORO Dugnw. EA 520)100)3 0 8LT082 190331271 POAD RANGER 1,159 2175 CCV/MA/AVE Duoogw. EA 52031 0 8L7972 190305/97 EONS 5 POINn HART 205 RK)MBERGAVE Duonn.LA52001- 1573 Imo) 8L7152 190300779 I045 DI5O)UUTS104E5 3J)) P580U RD Deta5a7,1A 52001 123^5 State of Iowa Home O NR Nome Site Policy weDmaEte nOd nf.lowagov C. him oRertneneermann 7Amvrs• https: //programs. iowadnr .gov /tanksWpages /advanced.aspx 8/9/2013 Tanks KII-F, Iowa Department of Natural Resources and Public Safety State Fire Marshal Office 2. g; Storage Tanks Leading Iowans in caring for our natural 8/9/2013 3:36:49 PM user: Loa in Advanced search UST Registration Number Advanced Search Release A` 4.0.1 for fn UST LUST AST UST 3rd Party Inspections UST Certifications Leak Number: Leak Risk Classification: --Risk Classification -- Site Name: Site Address: Site Qty: DUBUQUE County: -- County -- Supplemental Loc: Site Status: -- Status Type -- Search 12345 12.3.4 5 Page 1 of 1 State of Iowa Home DNR Home Site Policy w e b ma st e r i) d nr. i ow a. g ov ei Iowa Department of Natural Resources https: / /programs.iowadnr.gov /tanks /pages /advanced.aspx 8/9/2013 Leak No. Registration Name Address No. 0 9LTG46 197910223 STRUB PAINTING & DECORATING 3195 JACKSON STREET Dubuque, IA 520010000 O 7LTP54 198608832 SUNSHINE MART 430 RHOMBERG Dubuque, IA 520010000 O 9LTE35 197910306 SYSTEMS BIO- INDUSTRIES 2350 KERPER BLVD Dubuque, IA 520010000 0 7LTN53 198600867 TARGET 3500 DODGE Dubuque, IA 520010000 8LTY01 198607139 THE JULE BUS GARAGE (FORMERLY KEYLINE BUS GARAGE) 2401 CENTRAL AVE Dubuque, IA 52001 0 8LTN26 198604730 TOTAL STRUCTURES, INC TAMARACK &HWY61 S Dubuque, IA 520010000 O 7LTI35 198609690 TULLY'S DUBUQUE LUMBER 2655 LINCOLN AVE Dubuque, IA 520010000 O 8LTZ46 198607811 U S WEST 900 LOCUST Dubuque, IA 000000000 0 8LTL66 198606311 UNITED PARCEL SERVICE 2550 KERPER BLVD Dubuque, IA 52001 O 9LTD08 197910246 UNIVERSITY OF DUBUQUE 2000 UNIVERSITY AVE Dubuque, IA 520010000 3 9LTM80 197910572 VACANT LOT 2080 ELM ST Dubuque, IA 52001- 0 8LTV48 198601673 WEST LOCUST MART 408 W LOCUST Dubuque, IA 520010000 O 9LTF61 198916576 WILMAC PROPERTIES 801 JACKSON Dubuque, IA 520010000 O 8LTP82 198916576 WILMAC PROPERTIES 801 JACKSON Dubuque, IA 520010000 12.3.4 5 Page 1 of 1 State of Iowa Home DNR Home Site Policy w e b ma st e r i) d nr. i ow a. g ov ei Iowa Department of Natural Resources https: / /programs.iowadnr.gov /tanks /pages /advanced.aspx 8/9/2013 Tanks Page 1 of 1 Iowa Department of Natural Resources Public Safety State Fire Marshal Office *and Storage Tanks Leading Iowans in caring for our natural 8/9/2013 3:34:28 PM user: LOAin Advanced search UST Registration Number Advanced Search Release rr 4.0.1 for fn �O UST LUST AST UST 3rd Party Inspections UST Certifications Registration Number: Site Name: Site Address: garfield Site Qty: DUBUQUE County: -- County -- Supplemental Loc: Site Status: -- Status Type- - Site Owner: Search 1 Registration No. (Leak No. Name Address 198610155 9LTG33 (INTERSTATE BRANDS CORP 501 GARFIELD Dubuque, IA 520010000 Status Regulated tanks - r/f 1 State of Iowa Home DNR Home Site Policy webmasteri)d nr. iowa.g ov m Iowa Department of Natural Resources https: / /programs.iowadnr.gov /tanks /pages /advanced.aspx 8/9/2013 Prepared by: Deron Muehring, City Hall, 50 W 13th Street, Dubuque IA 52001 563 - 589 -4270 Return to: Deron Muehring, City Hall, 50 W 13th Street, Dubuque IA 52001 563 - 589 -4270 RESOLUTION NO. -13 ESTABLISHING THE FAIR MARKET VALUE OF CERTAIN REAL PROPERTY FOR THE BEE BRANCH CREEK RESTORATION PROJECT, DIRECTING GOOD FAITH NEGOTIONS FOR THE ACQUISITION OF THE PROPERTY AND AUTHORIZING THE COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS, IF NECESSARY, TO ACQUIRE THE PROPERTY WHEREAS, the City of Dubuque (City) has identified a need to acquire certain real property owned by Robert F. Klauer (Owner), at 430 Garfield, shown as Parcel B on Exhibit A attached hereto, located in Parcel A; and WHEREAS, City intends to acquire Parcel B; and WHEREAS, the acquisition of Parcel B may result in an uneconomical remnant for the remainder of Parcel A necessitating City's acquisition of all of Parcel A; and WHEREAS, the acquisition of all of Parcel A may necessitate City's acquisition of the adjacent property also owned by Owner at 422 Garfield, Parcel C, shown as Parcel C on Exhibit A ; and WHEREAS, City has caused to be made appraisals of the Property and Parcel A and B and the appraised values for the properties are listed below; Property Appraised Value Parcel A $780,000.00 Parcel B $400,000.00 Parcel C $228,000.00 and; WHEREAS, Iowa law requires that City make a good faith effort to negotiate with the owner for the purchase of property proceeding with condemnation; and WHEREAS, City may not make an offer to purchase a property which is less than the fair market value City has established for the property; and WHEREAS, the City Council now desires to establish the fair market value for Parcels A, B and C; and 091113ba1 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA AS FOLLOWS: Section 1. The fair market value of the Parcels A, B and C is hereby established to be the amount of their appraised value as listed above. Section 2. The City Manager is directed to enter into faith negotiations for the acquisition for Parcels A, B and C, and, if necessary, commence eminent domain proceedings to acquire Parcels A, B and C. Passed, approved and adopted this day of September, 2013. Roy D. Buol, Mayor Attest: Kevin S. Firnstahl, City Clerk 2 3