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Brewery Aspermont Fair M ValueRESOLUTION NO. 103-01 ESTABLISHING FAIR MARKET VALUE FOR THE ACQUISITION OF CERTAIN REAL PROPERTY OWNED BY THE ASPERMONT COMPANY WHEREAS, the City of Dubuque (City) intends to acquire certain real property owned by the Aspermont Company (Aspermont), legally described on Exhibit A attached hereto (the Property); AND WHEREAS, Iowa law requires that City must make a good faith effort to negotiate with the owner to purchase the Property or property interest before proceeding with condemnation; AND WHEREAS, City may not make an offer to purchase the Property which is less titan the fair market value City has established for the Property; AND WHEREAS, City has caused an appraisal of the Property to be made and the appraised value of the Property is $1,390,000. AND WHEREAS, the City Council now desires to establish the fair market value of the Property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF TIlE CITY OF DUBUQUE, IOWA AS FOLLOWS: 1. The fair market value of the Property is hereby established to be $1,390,000. 2. The City Manager and the Corporation Counsel are hereby authorized commence negotiations with Aspermont and the other interested parties for the purchase of the Property for a purchase price which is not less than the fair market value established by this Resolution. Passed, approved and adopted this 19th day of March, 200 I. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider,, City Clerk RESOLUTION NO. 241-00 A RESOLUTION APPROVING THE AblENDED AND RESTATED URBAN RENEWAL PLAN FOR THE ICE HARBOR URBAN RENEWAL DISTRICT. Whereas, on May 8, 2000, the City Council of the City of Dubuque, Iowa authorized the preparation of an Amended and Restated Urban Renewal Plan (the "Plan") for the Ice Harbor Urban ReneWal District (the "District"); and Whereas, the City of Dubuque's primary ob'ectivej in amending this Plan is to provide opportunities for further redevelopment and reinvestment in the 4th Street Peninsula area; and Whereas, the Long Range Planning Advisory Commission has reviewed the proposed Plan and has found that said document is consistent with the Comprehensive Plan for the development of the City of Dubuque as a whole and has transmitted its findings to the City Council; and Whereas, a consultation process has been undertaken with affected taxing entities in accordance with Chapter 403 of the Code of Ioka w/th no written objections or recormmended changes to the Plan received; and Whereas, the City Council, in accordance with Chapter 403 of the Code of Iowa, has held a public hearing on the proposed amended and restated Plan after public notice thereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Amended and Restated Urban Renewal Plan for the Ice Harbor Urban Renewal District, attached hereto and made reference to herein, be approved. Section 2. That the City Clerk of the City of Dubuque, Iowa is hereby authorized and directed to file a certified copy of this Resolution along with the Plan in the office of the Dubuque County Recorder. Passed, approved and adopted this 5th day of June, 2000. Attest: , Jeanne F. Schneider, City Clerk Terrance M. Duggan, Mayor :\USERS\Pmyhm\WPDOCS\UR.\tc¢ Harbor\p[anmemo res wpd AMENDED AND RESTATED URBAN RENEWAL PLAN Ice Harbor Urban Renewal District City of Dubuque, Iowa This Urban Renewal Plan provides for the development of the Ice Harbor Urban Renewal District. It was adopted by Resolution 403-89 of the City Council of the City of Dubuque, Io;va on December I8, 1989 and further amended and restated by Resolution 241-00 on June 5, 2000. Prepared by th, e Community and Economic Development Department. June 2000 TABLE OF CONTENTS I. INTRODUCTION ti. JUSTIFICATION FOR THE DESIGNATION III. OBJECTIVES OF THE PLAN IV. DISTRICT BOUNDARIES V. PUBLIC PURPOSE ACTIVITIES VI. DEVELOPMENT AREA VII. FINANCING ACTIVITIES VIII. STATE AND LOCAL REQUIREMENTS IX. DURATION OF APPROVED URBAd'4 RENEWAL PLAN X. SEVERABILITY XI. AxMEND~MENT OF APPROVED UPd3AN RENEWAL PLAN XII. ATTACHMENTS P~et P~el P~el P~e2 P~e3 Page3 P~e5 P~e7 P~e7 P~e7 P~e7 Page8 Amended and Restated URBAN RENEWAL PLAN Ice Harbor Urban Renewal District City of Dubuque, Iowa I. INTRODUCTION This URBAN RENEWAL PLAN ('~the Plan") has been prepared to provide for the redevelopment of the Ice Harbor Urban Renewal District ("the District") and to stimulate, through public actions, financing and commitments, private investment within the District. In order to achieve this objective, the City of Dubuque shall undertake the urban renewal actions specified in this Plan, pursuant to the powers granted to it under Chapter 403 of the Iowa Code, Urban Renewal Law, and Chapter 15A of the Iowa Code. Id[. JUSTIFICATION FOR THE DESIGNATION The City Council of the City of Dubuque, Iowa has determined that the following blighting conditions, as defined by Chapter 403 of the Iowa Code, Urban Renewal Law., exist within the Ice Harbor Area: Undeveloped and underdeveloped land; A preponderance of deteriorated, dilapidated and obsolete public and private improvements; A faulty lot layout in relation to the size, adequacy and usefulness of the lots; Frag/nented property, ownership patterns; A lack of public utilities; An inadequate street layout. The Council declared by Resolution of Necessity No. 381-89, on November 21, 1989, and No. 195- 00 on May 8, 2000, that combined, these factors have substantially impaired and arrested the sound ~owth of the City of Dubuque and of the Ice Harbor Area. III. OBJECTIVES OF THE PLAaN The City of Dubuque believes that the designation of the Ice Harbor Area as an URBAN RENEWAL DISTRiCT will assist in the removal or improvement of these blighting elements and will enhance the attractiveness of the area as a potential site for new and expanding residential, commercial, recreational and educational activity. 1 The OBJECTIVES of the Plan are to be accomplished through the: Provision of attractive, property for residential, commercial, recreational and educational development; Development of an adequate support system for ne~v and expanding fiver-related tourism activities; Creation of financial incentives necessary to encourage appropriate redevelopment opportunities; Creation of financial incentives necessary to attract new residential, commercial, recreational and educational concerns to the community; Expansion of the existing property tax base of the cormmunity; Enhancement of existing and construction of new infi:astructure and public improvements and facilities; Maximization of transportation opportunities provided by the 15 I/61 Freeway; Creation and retention of permanent employment opportunities for local residents. IV. DISTRICT BOUNDARIES The District is located x~4thin the City of Dubuque, County of Dubuque, State of Iowa. The District shall include two subareas: Subarea A shall include that area generally bounded on the north by the public alley located between the vacated Fourth Street and Third Street, on the west by the Chicago, Central and Pacific Raikoad right-of-x~ny, on the south by East First Street and on the east by the municipal limits of the city of Dubuque. tox~u and including any adjoining public r/ght-of-way. Sub,~a B shall include that area generally bounded on the north and west by the Chicago, Central und Pacific R:dlroad right-of~way, on the south by the northerly boundary of Subarea A and on the e~t by the mtmicipal limits of the city of Dubuque (excluding Lot 1 Adams Co.'s 2nd Addition) and including any adjoining public right-of-way. The boundaries of the District are delineated on the URBAN RENEWAL DISTRICT map, attached hereto as Attachment A. The City of Dubuque reserves the right to modify, the boundaries of the District at some future date in accordance ~5th Chapter 403 of the Io~va Code, _.Urban Rene~val La~v. 2 V. PUBLIC PURPOSE ACTMTIES To meet the OBJECTIVES of the Plan, the City of Dubuque is prepared to initiate and support redevelopment through the following public purpose activities: Pre-development planning, including feasibility analysis and engineering; installation, construction and reconstruction of streets, utilities, parking facilities, boat docks .and Other public improvements, including but not limited to the Riverwalk and Harborwalk Lmprovements and amen/ties and convention facilities; Relocation or elimination of ex/sting raikoad spur lines; Closing or vacation of ex/sting slxeets and public right-of-ways; Acquisition of property through negotiation or eminent domain; Demolition of ex/sting improvements; Site preparation, including planning, design and engineering; Environmental assessment and remediation; Sale or lease of land for development purposes; Financial assistance for eligible public and private redevelopment and development efforts. Public purposes activities shall be limited to {hose areas delineated on the PUBLIC ACTIVITY AREA map, attached hereto as Attachment B. All public purpose activities shall meet the development restrictions and limitations placed upon the District by the Plan. VI. DE*V~ELOPMENT .~REA Land Use Development and Redevelopment Requirements The intent of the ICE HARBOR DEVELOP~MENT AREA is to promote the development and redevelopment of quality residential, commercial, recreational, educational and tourism activities in the District. The DEVELOPMENT AREA shall include all of Subarea A and Subarea B. Land Use The EXISTING LAND USE map, attached hereto as At~£achment C-1, identifies the existing land uses within the Ice Harbor Development Area. The PROPOSED LAND USE map, attached hereto as Attachment C-2, defines the proposed land use of the Ice Harbor Development Area. 3 Future rezoning to allow a mix of residential, commercial, recreational and educational uses wiI1 be proposed for the entire District. Plannina and Desian Criter/a The Bulk Standards, Parking Requirements and Signage Restrictions'established within the City of Dubuque's Zoning Ordinance for applicable zoning disl~icts shall apply to all development and redevelopment activities. Specific design standards applicable to the Ice Harbor Development Area may also be developed to ensure the comprehensive and compatible development of the District. The planning criteria to be used to guide the physical development of the Ice Harbor Development Area are those standards and guidelines contained within the City of Dubuque's Zoning Ordinance and other applicable local, state and federal codes and ordinances. A master site plan of the Ice Harbor Development Area may also be developed to guide public and private development opportunities in the District. Public Development Activities The City of Dubuque is prepared to meet the OBJECTIVES of the plan and to further the redevelopment of the Ice Harbor Development Area through the implementation of one or more of the follow/ng: Pre-development planning, including feasibility analysis and engineerLug; ~....~-Kezorfing~of-theqce-HarborDevetopment-A~ea; ~ ~ ~'" (~' Acquisition of property through negotiation or em/nent dommn;' ~ - -'""~ · ~d implementation of an overall plan to provide for--th~nhancement of ex~st~n= and proposed res~dent~ ,~ercml, recreational, educational and tourist facilities and activities; Installation, conslamction and reconstruction of streets, utilities, parking facilities, boat docks and other public improvements, including but not limited to the R/verwalk and Harborwalk improvements and amenities and convention facilities; Relocation or elimination of e~sting railroad spur lines; Closing or vacation of existing streets and right-of-ways; Demolition and or relocation of existing private improvements and dredging; Site preparation, including planning, design and engineering; Environmental assessment and remediation; Sale or lease of land for development and redevelopment purposes; Use of tax increment financing, loans, grants and other appropriate Financial tools for eligible public and private redevelopment and development efforts. Publicly held land is to be developed for viable residential, commercial, recreational and educational uses and not sold for speculation. Developers ~vill be selected on the basis of the quality of their proposals, their ability to carry out such proposal, their ability to conform to this Plan and the level of community benefit. 4 Eminent Domain and Relocation Requirements The City of Dubuque anticipates a potential need to acquire and relocate one or more existing commercial and industrial enterprises. (See LAND ACQUISITION AREA map, attached hereto as Attachment D.) Btisinesses displaced by development activities .will be provided relocation assistance in accordance with applicable provisions of Chapter 316 of the Iowa Code, Highway Relocation Assistance Law. There are, to the knowledge of the City of Dubuque, no residential properties currently located within the Development Area. VII. FINANCING ACTIVITIES .To meet the OBJECTIVES of this Plan and to encourage the development of the District and private investment therein, the City of Dubuque is prepared to provide financial assistance to qualified businesses through the mak/ng of loans or grants under Chapter 15A of the Iowa Code and through the use of tax increment fmancing under Chapter 403 of the Iowa Code. ChaCter t5A Loan or Grant The City of Dubuque has determined that the making of loans or grants of public funds to qualified businesses is necessary to aid in the plarm/ng, undertaldng and completion of urban renewal projects authorized under this Plan within the meaning of Section 384.24(3)(q) of the Iowa Code. Accordingly, in fartherance of the OBJECTIVES of this Plan, the City of Dubuque may determine to issue bonds or make loans or grants, in reliance upon the authority of Section 384.24A, Section o 84.24 (.~)(q), Section 40~. t_ (,eneral obhgatmn bonds) or Sectmn 40~.9 (tax increment bonds), for the purpose of making loans or grants of public funds to qualified businesses. Alternatively, the City may determine to use available funds for the making of such loans or grants. In determining qualifications of recipients and whether to make any such individual loans or grants, the City of Dubuque shall consider all of the factors set forth in Sectien 15A. 1 of the Iowa Code on a case~by- case basis. Tax Increment Financina The C. ity of Dubuque is prepared to utilize tax increment financing as a means of financing eligible costs ~ncurred in furtherance of this Plan. Bonds or loans or grants may be issued by the City under the authority of Section 403.9 of the Ioxva Code (tax increment bonds) or Section 384.24A, Section 384.24(3)(q) and Section 403.12 (general obligation bonds). The City acknowledges that the use of tax increment revenues delays the ability of other local taxing bodies to realize inunediately the direct tax benefits of new development in the District and the City, County and School District may receive less tax revenue during the duration of this Plan than they would have received if this Plan ~vere not implemented. The City believes, however, that the use 5 of tax increment revenues to finance the public improvements and to promote private investment in the District is necessary in the public interest to achieve the OBJECTIVES of this Plan. Without the use oft. his special f'mancing tool, new investment may not other~vise occur. If new development does not take place in Dubuque, property values could stagnate. Tax increment financing will provide a long-term payback in overall increased tax base for the City, County and School District. The initial public investment required to generate new private investment will ultimately increase the taxable value of the District well beyond its current value. Tax increment reimbursement may be sought for, among other things, the following costs to the extent they are incurred by the City: Planning and administration of the Plan; Pre-development planning, site planning, design and engineering; Construction or reconstruction of public improvements, amenities and facilities within the District; Acquisition of land and preparation of same for sale or lease to private developers, including any "write down" of the sale price ofth~ land; Consla-uction of buildings or facilities to be sold or leased to businesses; Environmental assessment and remediation; Loa~. s or grants to qualified businesses under Chapter 15A of the Iowa Code, including debt service payments on any bonds issued to finance such loans or grants; Providing the local matching share for CEBA, RISE and or other local, state and federal grants and loans. Proposed Amount of Indebtedness At this time, the extent of improvements and new development within the District is only generally known. As such, the amount and duration of use of the tax increment revenues for public improvements and/or private development can only be est/mated. The actual use and amount of tax increment revenues to be used by the City for District activities will be determined at the time specific development is proposed. tt is anticipated that the maximum amount of indebtedness, including principal, interest and City advances, which w/ll qualify for tax increment revenue reimbursement during the duration of this Plan, including acquisition, public improvements and private development assistance, will not exceed $35,000,000. At the time of adoption of the Plan, the City of Dubuque's current general obligation debt is $8,095,000 (a list of obligations is found as Attachment E) and the applicable constitutional debt limit is $103,883,600. VIII. STATE AxND LOCAL REQUIREblENTS Ail provisions necessary, to conform with state and local law have been complied ~vith by the City of Dubuque in the adoption of this Plan and its supporting documents. DURATION OF APPROVED URBAN RENEWAL PLAN This Plan shall be in effect for a period of thirty (30) years from adoption or amendment of this Amended and Restated Urban Renewal Plan or until such t/me that the City of Dubuque has received full reimbursement from all incremental taxes of its advances and principal and interest payable on all Tax Increment Financing or general obligations issued to carry out the OBJECTIVES of the District. X. SEVERABILITY In the event one or more provisions contained ih this Plan shall be held for any reason to be invalid, illegal, unauthorized or unenforceable in any respect, such invalidity, illegality, unauthorization or unenforceability shall not affect any other provision of this Plan and this Plan shall be construed and implemented as if such provision had never been contained herein. XI. AME~NrDMENT OF APPROVED URBAN RENE'WAL PLAN This Plan may be amended from time to time to respond to development oppornmities. Any such mnendment shall be completed in accordance with Chapter 403 of the Iowa Code, Urban Renewal Law. Any change effecting any property or contractual ri~ht can be effectuated only in accordance x~dth applicable state and local law. XII. ATTACHMENTS A Urban Renewal District Map, with Subareas B Public Activity Area Map C-1 Existing Land Use Map C-2 Proposed Land Use Map D Land Acquisition Area Map E List of Obligations .? ~I r¢n- 13_ i I t ! / / ! 00000000 o CITY OF DUBUQUE, IOWA MEMORANDUM March 15, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Acquisition of Brewery Property On June 5, 2000, the City Council approved the Urban Renewal Plan for the Ice Harbor Urban Renewal District. The brewery property was included on that plan as designated for property acquisition. The next step in the acquisition process is for the City Council to establish the fair market value of the property. Based on appraisals received from Felderman Appraisals and Luksetich Real Estate Appraisals, I respectfully recommend that the Mayor and City Council establish the fa'nc market value at $1,390,000. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel APPRAISAL INSTITUTE ? ? THOMAS A. LUKSETICH ASBURY SQUARE 2255 J.F.K. ROAD DUBUQUE, IOWA 52002 556-8840 Real Estate Appraiser SRA #863 APPRAISAL INSTITUTE September 13, 2000 Mr. Barry A. Lindahl, Esq. Corporation Counsel, City of Dubuque 196 Cycare Plaza Dubuque, Iowa 52001 RE: Appraisal of 182,124 sq.ft, of land at Dubuque Brewing and Bottling Company as a commercial/recreational property, E. Fourth Street Extension, in the City of Dubuque, Dubuque County, Iowa, 52001. Dear Mr. Lindahl: At your request, I have personally inspected and appraised the property mentioned above and located within the City of Dubuque, Dubuque County, Iowa. This appraisal report was completed in accordance with the current "uniform Standards of Professional Appraisal Foundation." The attached report explains our method of arriving at a value for the property, together with a detailed discussion of the various approaches to estimate Market Value. After considering all of the factors affecting Market Value, it is my opinion, tha~ the Market Value of the subject property as a Commercial- Recreational property, as of September 13, 2000 is estimated to be $1,093,000. Sincerely, Iowa Certified General Real Property Appraiser SUMMARY OF SALIENT FACTS Property Type: The subject is a 182,124 sq.ft, parcel of land. Address: The subject's address is E. Fourth Street Extension, Dubuque, Iowa 52001. Location: The subject is located on the eastern most edge of Dubuque along the Mississippi River. Owners: Aspermont Company. Date of Appraisal: Interest Appraised: Building Size: September 13, 2000. Fee Simple. Lot Size: The entire parcel contains 182,124 sq.ft, or 4.18 acres. Zoning: The City of Dubuqlle shows the subject is in an area zoned H-I, Heavy Industrial. The appraiser is analyzing the property as a Commercial/Recreational property. Highest and Best Use: AS Though Vacant - Cormmercial Recreational. As Improved - Commercial/Recreational. See detailed discussion in 'Highest and Best Use' section. Value Indications: Cost Approach to Value NA. Sales Comparison Approach to Value Income Approach to Value NA $1,093,000. Final Estimate of Value $1,093,000. STATEMENT OF THE APPRAISAL PROBLEM: PURPOSE: The purpose of this appraisal is to estimate the Market Value of the subject property consisting of a total of 182,124 sq.ft, of Commercial/Recreational land. DEFINITION: MARKET VALUE is defined by The Appraisal Foundation in its Uniform Standards of Professional Appraisal Practice 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, knowledgeable, 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: - Buyer and Seller are typically motivated; - Both parties are well informed or well advised and both acting in what he/she considers his/her own best interest; - A reasonable time is allowed for exposure in the open market; - Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and - The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." AI~ALYSIS OF THE PROBLEM: The subject property consists of a 182,124 sq.ft. parcel. The City of Dubuque is proposing to transform the property into a Commercial/Recreational property. The plans include using the brewery as a background for an e~nphitheater. The appraisal process involves three approaches in estimating the value of a property. They are the Cost (which includes the land value analysis) and the Sales Comparison Approaches to value. This appraisal will not involve the Income Approach, as the property is currently vacant and income figures are not yet available on the prospective use. With the planned improvements along the river front, the appraiser is confident the property will be able to attract investors. DATE OF APPKAISAL: The subject property was inspected formally on September 13, 2000. This was an exterior inspection. The appraiser inspected the interior of the property on July 31, 1998. SALE HISTORY: According to the Dubuque City Assessor's Office, there has not been a sale on the property in the past five years. PERSONAL PROPERTY: NO personal property is included in the value estimates herein. HAZARDOUS MATERIALS: The value estimate is based upon the assumption that there are no hazardous materials in the buildings or the site. I am not q~alified to discern the presence or absence of such materials (asbestos, underground tanks, etc.), but I am aware that they can have a significant effect upon the value of a property. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required discovering them. A~4ERICANS WITH DISABILITIES ACT: The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. A detailed survey could reveal that the property is not in compliance with one or more of the requirements of the ADA, which could have a negative effect upon its value. The property appears to be handicapped accessible. LOCATION: The subject property is located on the eastern edge of Dubuque along the Mississippi River. This land has all City amenities available. Electricity, natural gas, telephone, water, and sewer are available to the subject. The access to the subject is U.S. Highway ~151/61, to Locust Street, to Fourth Street. The immediate and surrounding areas are hea~; industrial, but this is changing. The current trend is for commercial with the America's River project. LEGAL DESCRIPTION: The subject property is in the narae of the Aspermont Company. The following is the legal description for the subject property as it is now. Part of Sub. 34, 35, 36 Dub. Har. Imp. Co. Add. Lot 1 Block 11 and Sub. 37 Dub. Har. Imp. Co. Add. Lot 38 Block 11; Sub. 11 Dub. Har. Imp. Co. Add. Lot 1 Block 5 and Sub. 12 Dub. ~ar. Imp. Co. Add. Lot 1 Block 5; Sub. 22 Dub. Har. Imp. Co. Add lot 1 Block 6, Sub. 23 Dub. Har. Imp. CO. Add Lot 1 Block 6, Sub. 24 Dub. Har. Imp. Co. Add Lot 1 Elk. 6, also adjoining property of Elks. 3, 4, 5, 6 & 11, pts. of vacated Pine and Tower Street & Pt. Of adjoining alleys also land lying between Mississippi Rier and line along E. line of boundary of Block 3 & 4; Dub. Hat. Imp. Co. Add. 13-16 Blk. 6 Subs. 17, 18, 19, & 20 Dub. Har. Imp. Co. Add. Lot 1 Block 6; Dub. Hat. Imp. Co. Add. Pt. Lots 2 - 5 Blk. 3, Dub. Hat. Imp. Co. Add. Lots 6-10 Elk 3, Dub. Har. Imp. Co. Add Lots 1-10 Elk 4, Dub. Har. Imp. Co. Add. Lots 1-6 Blk 5, Dub. Hat. Imp. Co. Add. Lots 7-9 Pt. Blk 5, Sub. 10 Dub. Har. Imp. Cos. Add. Lot 1 Elk 5, Sub. 13 Dub. Hat. Imp. Co. Add. Lots 15-24 Blk 5, Sub. 21 Dub. Har. Imp. Co. Add. Lot 1 Block 6, and Lot 1-14 Blk. 5 Dub. Har. Imp. Co. Add. FUNCTION OF THE APPRAISAL: The function of the appraisal is to assist the City of Dubuque in obtaining a Market Value for the subject property with the intended use as a Commercial/Recreational property. PURPOSE AND DATE OF VALUATION: The purpose of the appraisal is to estimate the market value of the fee simple estate of the subject property under the market conditions prevailing on September 13, 2000. SCOPE OF THE APPRAISAL: The scope of the appraisal requires compliance with the Uniform Standards of Professional Practice promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Guide Notes to the Standards of Professional Appraisal Practice adopted by the Appraisal Institute. The standards contain binding requirements and specific guidelines that deal with the procedures to be followed in developing an appraisal, analysis, or opinion. These uniform standards set the requirements to communicate the appraiser's analyses, opinions, and conclusions in a manner that will be meaningful and not misleading in the marketplace. MARKETING TIME OF THE SUBJECT: Based on the information contained in this report, and the fact that the subject is located in a prime riverfront location, the subject has a marketing time of three to nine months. NEIGHBORHOOD DESCRIPTION: The subject is located on the far East side of Dubuque. This is an older industrial neighborhood that is currently changing into a Commercial/Recreational property. The boundaries of the subject's neighborhood are the Mississippi River to the East; U.S. #20 to the South; Main Street to the West; and U.S. #151/61 to the North. The following properties are in the same area as the subject: the Diamond Jo Casino, Harbor Place Mall, the Shot Tower, the Dubuque Star Brewery, and the entire Ice Harbor area. This is an established neighborhood with properties that have been in this area for many years. It is also a riverfront area that is undergoing major updates. The America's River project will enhance the entire area as a Commercial/Recreational destination. The riverwalk and new hotel will also be a great benefit to the subject property. SITE DESCRIPTION: The subject's site contains a total of 182,124 sq.ft, or acres. It is located on the eastern edge of Dubuque along the Mississippi River. The City of Dubuque is proposing to construct an amphitheater with the brewery as a backdrop. Drainage appears to be adequate to the lot lines. No adverse easements or encroachments were observed. The subject is hooked up to City Sewer and Water. Ail city amenities are available to the area including police and fire protection. A review of the Flood Hazard Map shows the subject property is in the City of Dubuque and appears to be in a Shaded Zone X on the FIRM Flood Insurance Rate Map ~195180 0006 B. (Map Revised September 6, 1989). A Shaded Zone X is interpreted to mean, "Areas of 500-year flood; areas of 100-year flood with average depths of less than 1 foot or with drainage areas less than 1 square miles; and areas protected by levees from 100-year flood." The City of Dubuque does have a floodwall. The subject is in an area zoned H-I, Heavy Industrial. However, the appraiser is analyzing and estimating the Market Value of the subject property as a Commercial/Recreational property. It is the appraiser's opinion that the proposed use as a Commercial/Recreational property does represent one of the highest and best uses that could be put to this site. The streets leading to the subject property are fully improved city streets. The proposed amphitheater and walkway is considered to be an improvement for the subject property. The Highest and Best Use for the subject will be discussed in depth, but the proposed use does represent one of the highest and best uses for the subject. THE APPRAISAL PROCESS It is required by Uniform Standard of Professional Appraisal Practice (USPAP), 1992 Edition, that the Market Value of a parcel of real property be estimated by the use of three approaches to value. They are the Cost Approach, the Income Approach, and the Sales Comparison Approach. The value indicated by each approach will be carefully reviewed and that approach, which in the judgement of the appraiser, most adequately and accurately reflects all the circumstances in connection with the particular property under appraisement, and the purpose for which the appraisal is bein§ made, will be selected as the best indication of Market Value. The Cost Approach is the summation of the land value and the value of the improvements. The land value estimate is based on sales of similar vacant land in the area. The value of the improvements is their estimated depreciated cost~ which represents that amount which they contribute to the value of the entire property. This approach is not utilized in this appraisal, as the appraiser is analyzing vacant land only. The Income Approach is the capitalization of net income at a proper rate. Net income is estimated using actual income and expenses when they reflect the market, and using typical fi~/res from the market when actual figures are not available. The rates are derived from the market, using sales of similar properties and actual income and expenses when available or by using estimated figures. This approach is not utilized, as the property being appraised is vacant land. The Sales Comparison Approach is the comparison of recent sales of comparable properties as a guide to market value. If sales of properties having the same features as the subject property are not available, sales of properties having some or part of the same features will be considered~ and adjustments will be made to indicate the market value of the subject property from these transactions. This approach is utilized for the subject property. LAND SALE ANALYSIS: The appraiser's research has found sales of similar properties that have sold within the past three years. They range from 4,939 sq.ft, to 210,518 sq.ft. They range in price per sq.ft, from $2.33 to $10.21 per sq~ft. These sales are located in the Dubuque area near the subject. IMPROVED COMPARABLE SALES Location Sale Date Land Area Sale Price Zoning Location Subject - AGRI Property E.4~ St. NA 182,124 SF Dubuque, IA NA Cor~n/Rec V.G. 1.Main Stay Inn Dubuque 8-00 104,980 SF $630,000 PC V.G. 2.1080 University Avenue Dubuque 4-00 4,939 SF $50,000 PC Good 3.Lot 2 Kennedy Court Dubuque 9-99 41,026 SF $160,000 C3 V.G. 4.Lot 3 Flint Hill Dubuque 9-99 43,560 SF $185,000 C3 Good 5.Platinum Services Dubuque 10-99 95,396 SF $286,215 PC V.G~ 6.Golden Corral Dubuque 12-97 95,396 SF $501,000 PC V.Go 7.Applebee's Dubuque 4-99 73,616 $383,605 PC V.G. 8.Floor Show Interiors Dubuque 10-98 117,612 $611,000 PC V.G. 9.Carlos O'Kelly's Dubuque 10-98 117,612 $611,000 PC 10.Country Inn Dubuque 11-99 71,003 $367,500 PC ll.Lot 2 Riverwalk 1st Addition Dubuque 10-98 210,518 $2,150,000. HI Excellent 12.Lot 2 Riverwalk 2nd Addition Dubuque 10-99 24,219 $56,500 HI Excellent SUMMARY OF THE SALES COMPARISON APPROACH TO VALUE On the preceding pages is a grid outlining the comparables used in this report. Next, the appraiser will summarize the adjustments made on each sale. Comparable #1: Main Stay Inn, Associates Drive, Dubuque, IA. Price per sq.ft. - $6.00. This sale was conventionally financed, no adjustment. Although this location is a rapidly developing commercial area, the subject property has appeal with the river and surrounding developments, no adjustment. The site is smaller in size, upward adjustment of 10%. This is a recent sale, no adjustment. Overall, this comparable has an upward adjustment of 10%. Adjusted price per sq.ft. - $6.60. Comparable #2: 1080 University Avenue, Dubuque, IA. Price per sq.ft. - $10.12. This property sold less than a year ago, no adjustment. This is a central Dubuque location where there has not been a lot of new development, upward adjustment of 10%. The property is much smaller than the subject, and smaller parcels sometimes sell for a premium price, downward adjustment of 50%. Overall, this comparable has a downward adjustment of 40%. Adjusted price per sq.ft. - $6.07. Comparable %3: Lot 2 Kennedy Court, Dubuque, IA. Price per sq.ft. - $3.90. This sale was conventionally financed, no adjustment. The comparable just a year ago, upward adjustment of 2%. Location is considered similar, as this is a thriving area of Dubuque, and the subject is located in an area that is undergoing much commercial development, no adjustment. The site is smaller in size, upward adjustment of 20%. Overall, the comparable has an upward adjustment of 22%. Adjusted price per acre. - $4.76. Comparable %4: Lot 3 Flint Hill Drive, Dubuque, IA. Price per sq.ft. - $4.25. This sale took place just a year ago, upward adjustment of 2%. The lot size is smaller, upward adjustment of 20%. The location is considered inferior, as this location is on the Southern edge of Dubuque. While there has been development in the area, it is not as intense as the riverfront area, upward adjustment of 20%. Overall, this comparable has an upward adjustment of 42%. This works out at $6.04 per sq.ft. Comparable %5: Platinum Services on Associates Drive, Dubuque, IA. Price per sq.ft. - $3.00 per sq.ft. This sale took place a year ago, upward adjustment of 2%. The lot size is smaller in size, upward adjustment of 10%. The location is considered similar, no adjustment. This was a conventional sale, no adjustment. Overall, this comparable has an upward adjustment of 12%. This works out at $3,36 per sq.ft. Comparable ~6: Golden Corral, Associates Drive, Dubuque, IA. Price per sq.ft. - $5.25 per sq.ft. This sale took place three years ago, upward adjustment of 6%. This was a conventional sale, no adjustment. The lot size is smaller, upward adjustment of 10%. This location is considered similar, no adjustment. Overall, this comparable has an upward adjustment of 16%. This works out at $6.09 per sq.ft. Comparable ~7: Applebee's, Associates Drive, Dubuque, IA. Price per sq.ft. - $5.21 per sq. ft. This sale took place over a year ago, upward adjustment of 2%. This was a conventional sale, no adjustment. The lot size is smaller, upward adjustment of 10%. This location is considered similar, no adjustment. Overall, this comparable has an upward adjustment of 17%. This works out at $6.10 per sq.ft. Comparable #8: Floor Show Interiors, Associates Drive, Dubuque, IA. Price per sq.ft. - $5.20 per sq.ft. This sale took place approximately two years ago, upward adjustment of 4%. This was a conventional sale, no adjustment. The lot size is smaller, upward adjustment of 10%. Overall, this comparable has an upward adjustment of 14%. This works out at $5.93 per sq.ft. Comparable #9: Carlos O'Kelly's, Associates Drive, Dubuque, IA. Price per sq.ft. - $5.20 per sq.ft. This sale took place approximately two years, upward adjustment of 4%. The lot size is smaller, upward adjustment of 10%. This was a conventional sale, no adjustment. The location is considered similar, no adjustment. Overall, this comparable has an upward adjustment of 14%. This works out at $5.93 per sq. ft. Comparable #10: Country Inn and Suites, Associates Drive, Dubuque, IA. Price per sq.ft. - $5.18 per sq.ft. This sale took place approximately one year ago, upward adjustment of 2%. The lot size is smaller, upward adjustment of 10%. This was a conventional sale, no adjustment. The location is considered similar, no adjustment. Overall, this comparable has an upward adjustment of 17%. This works out at $6.06 per sq.ft. Comparable #11: Lot 2 Riverwalk 1st Addition, Dubuque Ice Harbor, Dubuque, IA. Price per sq.ft. - $10.21 per sq.ft. This sale took place approximately two years ago, upward adjustment of 4%. The lot size is similar no adjustment. This was a cash sale, no adjustment. The location is considered superior as it is along the riverfront, downward adjustment of 30%. Overall, this comparable has a downward adjustment of 34%. This works out at $6.74 per sq.ft. Comparable ~12: Lot 2 Riverwalk 2nd Addition, Dubuque, IA. Price per sq.ft. - $2.33. This sale took place less than a year ago, no adjustment. The lot size is smaller, upward adjustment of 25%. The location is considered similar, no adjustment. This sale was part of the subject's original parcel. This sale price was determined from a Sheriff's Jury, no adjustment, as two separate appraisals were done on the property. Overall, this property has an upward adjustment of 25%. This works out at $2.91 per sq.ft. IJkND SALE RECONCILATION: All twelve of the comparables are considered similar, with the exception of parcel size. Typically smaller parcels sell for more per sq.ft. The comparables range in adjusted price per sq.ft, from $2.91 to $6.74. The subject is located in a prime, developing area. The intended use of the subject is cormmercial-recreational. This is a more intense use than an industrial use. The area will be immersed in commercial-recreational uses with the riverwalk, the museum, the amphitheater, the Heritage Trail extension, the new hotel, and the existing Diamond Jo Casino Boat It is the appraiser's opinion, that the subject has a value of $6.00 per sq.ft, as a commercial-recreational property. CALCULATION: 182,124 sq.ft, x $6.00 per sq.ft. $1,092,744. VALUE OF THE LAND $1,093,000. CONCLUSION OF VALUE: This appraisal assignment employed three approaches to value: Cost Approach: NA. Sales Comparison Approach: $1,093,000. Income Approach: NA. The appraiser is comfortable with the values represented in this appraisal. The Sales Comparison Approach is the only approach given consideration, as this is vacant land. Based on the investigation and analysis, the market value as of September 13, 2000 is estimated to be $1,093,000. ONE MILLION, NINETY-THREE THOUSAND DOLLARS. ~EN CLARK CERTIFICATE AiYO STATEMENT OF LIMITING COKrDITIONS Certificate: The appraiser certifies and agrees that: 1. The appraiser has no present or contemplated future interest in the property appraised; and neither the employment to make the appraisal, nor the compensation for it, is contingent upon the appraised value of the property. 2. The appraiser has no personal interest in or bias with respect to the subject matter of the appraisal report or the participants to the sale. The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color, or national origin of the prospective owners or occupants of the property appraised, or upon the race, color, or national origin of the present owners or occupants of the properties in the vicinity of the property appraised. 3. The appraiser has personally inspected the property, both inside and out, and has made an exterior inspection of all comparable sales listed in the report. To the best of the appraiser's knowledge and belief, all statements and information in this report are true and correct, and the appraiser has not knowingly withheld any significant information. 4. Ail contingent and limiting conditions are contained herein (imposed by the terms of the assignment or by undersigned affecting the analyses, opinions, and conclusions contained in the report.) 5. This appraisal report has been made in conformity with and is subject to ~he requirements of the "code of professional ethics and standards of professional conduct" of the appraisal organizations with which the appraiser is affiliated. 6. Ail conclusions and opinions concerning the real estate that are set forth in the appraisal report were prepared by the appraiser whose signature appears on the appraisal report, unless indicated as "Review Appraiser." No change of any item in the report shall be made by anyone other than the appraiser, and the appraiser shall have no responsibility for any such unauthorized change. CONTINGENT AND LIMITING CONDITIONS: The certification of the appraiser appearing in the appraisal report is subject of the following conditions and to such other specific and limiting conditions as are set forth by the appraiser in the report. 1. The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor does the appraiser render any option as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership. 2. Any sketch in the report may show approximate dimensions and is included to assist the reader in visualizing the property. The appraiser has made no survey of the property. 3. The appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made therefore. 4. Any distribution of the valuation in the report between land and improvements applies only under the existing prograza of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 5. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions, or for engineering which might be required to discover such factors. 6. Information, estimates, and options furnished to the appraiser, and contained in the report, were obtained from sources considered to be reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the appraiser can be assumed by the appraiser. 7. Disclosure of the contents of the appraisal report is governed by the bylaws and regulations of the professional appraisal organizations with which the appraiser is affiliated. 8. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, reference to any professional appraisal organizations, or to the firm with which the appraiser is connected) shall be used for any purposes by anyone but the client specified in the report. There is water, sewer, electricity, gas and telephone service available. The appraiser will evaluate the property and determine the market value of the property as of the appraisal inspection date of the borrower if appraisal fee is paid by same, the mortgages or its successors and assigns, mortgage insurers, consultants, professional appraisal organizations, any state or federally approved financial institution, any department, agency, or instrumentality of the United States or any state or the District of Columbia, without the previous written consent of the appraiser, nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consent and approval of the appraiser. 9. On all appraisals, subject to satisfactory completion, repairs, or alterations, the appraisal report and value conclusion are contingent upon completion of the improvements in a professional manner. 10. This appraisal value is based on all underground storage tanks meeting minimum federal requirements and having no known hazard waste storage areas. 11. No radon tests were conducted. The appraisal value is based on buildings (if any) meeting current state and federal recf~irements for radon content. ENVIROArMENTAL DISCLAIMER: The value estimated in this report is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environ_mental conditions. The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions, except as noted within the appraisal. It is possible that tests and inspections by a qualified hazardous substance and environmental expert would reveal the existence of hazardous materials and environmental conditions on or around the property that would negatively affect its value. ADDITIONAL CERTIFICATION: The appraiser further certifies and agrees that: 1. This appraisal conforms to the uniform standards of professional appraisal practice (USPAP) adopted by the appraisal standards board of appraisal foundation, except that the departure provision of USPAP does not apply. 2. Their compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount or direction in value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 3. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. Mary E. Clark Iowa Certified General Real Property Appraiser I I I I i I I I I I I I I I I I PREPARED FOR: CITY OF DUBUQUE DUBUQUE, IOWA PROPERTY: 500 E 4v~ STREET (CROMPTON & KNOWLE$) DUBUQUE, IOWA PREPARED BY: FELDERMAN APPRAISALS DUBUQUE, IOWA I FELDERMAN APPRAISALS 1179 Iowa Street, Dubuque, Iowa 52001 Webpage: http://www, feldermans, eom Voice (319) 557-1465 FAX (319) 588-4214 10 March 2001 City of Dubuque Attn: Barry Lindahl 196 Cycare Plaza Dubuque, IA 52001 RE' ' th · Apprmsal of 500 E. 4 Street (Crompton & Knowles), Dubuque, Iowa, 52001 In accordance with your request for a complete appraisal in a smmnm~ report of the property identified in this report, I submit herewith the following that ascertains my method of appraisal and contains some of the material gathered and considered in the preparation of this report. Please be advised that the property has been inspected and that I believe to be reliable all data contained herein which was furnished me by others. The purpose of the appraisal is to promde an estmoated opumon of the real property market value, as ts, in fee simple, unencumbered by liens, as of a given date (or current mark~l value, if not specified otherwise), The function of the appraisal is for purchase, or condemnation purposes. This apprmsal report (including definitions used) is completed in accordance with the current "Uniform Standards of Professional Appraisal Practice" as promulgated by the Appraisal Standards Board of the Appraisal Foundation. The invoice is considered part of this report. As of 21 February 2001, the current estimated opinion of market value (based on the highest and best use as commercial land with the buyer paying for demolition costs of $280,000) for the subject property is, TWO HUNDRED NINETY SEVEN THOUSAND DOLLARS 1L J. Felderman J.L. Felderman ! ! FELDERM~NA~PRAISALS - DUBUQUE, IOWA ! ! TABLE OF CONTENTS INVOICE TITLE PAGE LETTER OF TRANSMITTAL TABLE OF CONTENTS SUMMARY OF SALIENT FACTS SCOPE OF ~ APPRAISAL APPRAISAL PROCESS ENVIRONMENTAL HAZARDS HIGHEST AND BEST USE MARKET1NGAND NEIGHBORHOOD DATA SITE DESCRIPTION IMPROVEMENTS DESCRIPTION LAND VALUE COST APPROACH INCOME APPROACH SALES COMPARISON APPROACH FINAL ESTIMATE OF VALUE ADDENDA BUILDING SKETCH AREA MAP MAP(S) OF SUBJECT AND COMPARABLES PLAT MAP OTHER MAPS AND/OR DATA PHOTOGRAPHS OF SUBJECT APPRAISERS CERTIFICATION & LIMITATIONS QUALIFICATIONS OF APPRAISERS COMPARABLE SALES DATA SHEETS BIBLIOGRAPHY COMMUNITY QUICK REFERENCE SHEET 1 2 3 4 7 8 12 13 15 37 39 41 44 45 46 47 A B C D E F O H I J K I COMPLETE APPRAISAL IN A SUMMARY REPORT OF 500 E. 4TH STREET (CROMPTON & KNOWLES PROPERTY), DUBUQUE, IOWA, 52001. Legal: Interest Being Appraised: Purpose of the Appraisal: Function and Usc of Appraisal Report: Value Estimated: Sale Price/Sale Date: Effective Date of Appraisal: Date of Appraisal Report: Final Estimate of Value: Lot Size: Building S~ (Gross): Year Built: Highest and Be~t Use: Assessor Identification: 4 Lengthy, see plat. Fee Simple Property Rights Est'rotate Opinion of Market Value Purchase or condemnation Market Value of Real Estate N/A 21 February 2001 10 March 2001 $297,000 (as is) 76,971 square feet 60,017 square feet, over five above ground levels 1898, 1980, 1981 Commercial Use 11-30-129-001 I I I I I Assessed Value/Net Taxes: Owner.' Occupant: Last Sale Date: Special Flood Hazard Area: Area Boundaries: Census Number: Historic District: Zoning: Assumptions and limiting conditions: Restriction placed on assignment: Estimated Marketing Time: Personal~Property included: $339,610 / $10,242 Crompton & Knowles Vacant None, as improved, in past five years. No. The subject is located in Flood Hazard Area Zone X (unshaded), Area above from the 500-year flood plain. See Map 195180- 0006 B dated 9/6/1989. City of Dubuque, Area 02.00 (see map) Map t9-061, Tract 0002.00 N/A The subject property is currently zoned CR, Commercial Recreation District. Refer to excerpt in Addenda. (See attached) Summary Report. Value based on buyer paying for demolition estimated at $280,000. 180 days to over one year None I I I I I I I I I I I I I I I I I I I Value Indications: Land Value: $297,000 Cost Approach: $297,000 Income Approach: n/a Sales Approach: $297,000 6 I I I I I I I I I I SCOPE OF TFfE, APPRAISAL This is a complete appraisal in a summ~ey rg~port. Barry Lindahl, attorney for the City of Dubuque, contacted Felderman Appraisals to appraise the property identified in this report. Crompton & Knowles are identified as the owners the property, which is located in Dubuque, Iowa. The appraiser will determine an estimated opinion of market value, based on the buyers (City of Dubuque) paying for condemnation estimated costs of $280,000. The property is to be purchased or condemned in its entirety. The property wilt be values as of the most recent date of inspection, 21 February 2001. All three approaches to value are considered: Cost Approach to Value, Income Approach to Value, and Sales Comparison Approach to Value. A final estimate will be reconciled fi.om these approaches. 7 APPRAISAL PROCESS The estimated opinion of market value based on a eorrelation ofvalues obtained from the three approaches to value. These are the Cost Approach, Income Approach, and Sales Comparison Approach to Value. See the glossary addendum for a detailed description of''Market Value" as used in th~ appraisal. COST APROACH 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 (RCN), 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 improvemem 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 super-adequacies in building design. Forces outside of the property cause economic obsolescence which decrease the utility of value of the improvements. Reproduction Cost New (RCN) is derived l~om Marshall & Swift or Boecke Valuation Guides as well as local builders. The remaining economic life is the appraiser's estimate based on the condition of the buildings. The rotes of depreciation are estimated from sales of improved properties or from guidelines estimated by "visual observation," Land value is estimated based on market research and general knowledge with the assumption that is can be put to its highest and best use. I I I I I I I I I I I I I I I I I I SALES COMPARISON APPROACH This approach is based upon the Principal 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. INCOME APPROACH The Income Approach considers the stream of income that the property is likely to produce during its economic life, and converts this income to a value estimate. (Net Income divided by Rate equals Value). The Rate or Capitalization Rate is derived from the Market. This Approach considers the current or 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. I I I I I I I I I I I I I I I I I I I PROCESS OF COLLECTING, REPORTING, AND CONFIRMING DATA Information was gathered from: Federal Agencies such as U.S. Department of Agriculture (ASCS), City and County Assessors, County Auditor, County Treasurer, City and County Zoning Departments, City and County Engineers, Area Multiple Listings Services, Appraiser fries of previous inspections or appraisals, market information maintained in appraisers files, discussions with real estate brokers and appraisers, U. S. Census Bureau, and Federal Emergency Management Agency (Flood status). J. L. Felderman and Dan Hudek inspected subject the exterior of the property on 21 February 2001. The co-appraiser previously conducted an inspection ofthe improvements and site. All of the comparables used in this report have been inspected, unless otherwise indicated by not having a photo page. All of the data was verified, and considered correct based on data provided by others. 10 I I II I I I I I I I I I I I I I I I In October of 1997, the National Education Center for Agricultural Safety opened it doors on a parcel of land adjoining the Northeast Iowa Community College (NICC) in Peosta. NICC has indicated there will be expansions in the near futura. There are new housing subdivisions along the north side of Peosta, and in 1999, a condominium and single-family development began construction along the north side of Thunderhills Golf and Country Club. The overall Tri-State Area market should continue to grow, subject to favorable interest rates, and a continued stable to increasing economic market. The City of Dubuque continues to expand along its major arterials both west and south, with several annexations taking place in recent years. The City of Dubuque Housing Department has identified a continued shortage of elderly housing, and multi-family residential dwellings in general (with emphasis on low-income properties). There have been rental surveys completed in Dubuque since 1997. The most recent survey shows occupancy rates at 95+% for single family, 87% to 90% for duplexes, and 85% to 90% for multi-unit apartments. Dubuque and Tri-State Area rent increases are stable to slightly increasing from 1997 to 1998, and stable in 1999 through 2000. The occupancy rates appear to have increased based on discussions with local brokers and landlords. There have been two new apartment buildings (Applewood Senior Apartments, with a total of 92 units) constructed along Pennsylvania Avenue since 1994. Luther Manor, a nursing and retirement complex, added a special residential care facility in 1996. A retirement housing area has been constructed along Pennsylvania Avenue near Hempstead High School. Two low inceme-housing complexes have been completed along Crescent Ridge since 1996, both with over 42 units. 34 I I I I The Tri-State Area has also seen the renovation of many older downtown properties for low- income housing. Area vacancies were typically lessthan2% vaeancy rate in the early 1990's; but with the construction of several new single family and multiple family complexes, the area has seen increases in apartment vacancy rates with recent stabilization as discussed above. I I 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 having the higher rates. I I I I Commercial property vacancies range from 0% to 15% for downtown property (higher end for multi-level property), and 0% to 5% for most westside property. Industrial vacancies range from 0% to 10°/6 throughout the Tri-State. Residential vacancies tend to range between 0% and 15% with lower rates for single family (typically below 5%) and higher for downtown property. The overall Dubuque Area continues to see new residential, commercial, and industrial interest, and there are plans for several new businesses and subdivisions throughout the city and county. I 35 I I I I I I I I I I I I I I I I I I Dubuque County has had a steady decrease in unemployment since 1984. In 1994 the unemployment rate was 3.7%, 1995 was 3.7%, 1996 was 5.8% 1997 was 3.9%, 1998 was 3.2%, 1999 was 3.0%, and 2000 has maintained levels at or below 3.0%. 12 Unemployment % · 7 -3 There have been steady increases in total annual employment, increases in population, and a substantial increase in yearly building permits over the past five to ten years. Refer to previous charts in this area discussion. 36 BRI~F SITE DESCRIPTION The subject property has approximately 76,971 square feet of land (according to the City of Dubuque Assessor Sheets and information provided by the City of Dubuque). ACCESS: The parcel is accessed fi:om the intersection of 4ta Street to White Street or Central Avenue (both are major arterial). 4m Street is a two lane, two-way, brick-paved streets with concrete curbs, graters, and sidewalks along the subject property. UTILITIES: Public utilities are available to the area, including: electricity, telephone, gas, city water, and sewer. DRAINAGE appears adequate, and flows towards property lines. PARCEL SIZE ..... is small for industrial sites and typical for commercial sites in the area. The site is irregular in shape. VIEWS of nearby properties include industrial, floodwall, and property either transitioned or in the pr°cess °ftrausition/ng to commercial and/or commercial recreation uses. The neighborhood has been announced for commercial uses by the City of Dubuque. EASEMENTS: There are no apparent known adverse_ easements, known encroachments, or known special assessments. The property has typical utility easements and access easements. MAINTENANCE & CONDITION: The commercial properties in this immediate area are in overall good condition, and the industrial properties range fi:om poor condition to average condition. Many of the properties in the area are over fit~y years old, but there continues to be new commercial construction planned in the area. The entire Fourth Street Peninsula is planned for a future transition to commercial recreation uses by the City of Dubuque. 37 I I I I I I I I I PROPERTY COMPATIBILITY: The subject, as improved, is not compatible with the planned commercial uses. However, with a commercial highest and best use the property is compatible with immediate area uses. DEVELOPMENT POTENTIAL: Development is stable to increasing throughout Dubuque. There are new improvements taking place all through Dubuque and areas immediately along its outskirts. There are several areas surrounding the edge of the City of Dubuque that are programmed for future annexation. Downtown development typically involves the demolition of older buildings, such as the current improvements on the subject site. 38 I I I I I I I I I I I I I I I I I I BRIEF DESCRIPTION OF IMPROVEMENTS The subject property includes an original brewery with pub and offices, and additions for bottling and distribution. The total complex bbs approximately 60,017 square feet over five levels. The main level has 32,101 square feet, the second level has 12,518 square feet, the third level has 8,974 square feet, the fourth level has 5,824 square feet, and the penthouse level has approximately 600 square feet. The information provided in this description is based on previous inspections by the appraiser and not the most recent inspection. BUILDING: AGE: 1898, 1980, and 1981 FOUNDATION: The building bbs mix of stone and poured concrete foundations EXTERIOR: The exterior walls are; common brick for the original buildings, metal for the distribution section, and concrete block for the bottling section. ROOF: All buildings have a flat roof (tar and gravel, membrane), with metal gutters except for the gable metal roof for distribution section. There is evidence of leaks on the two-story office and pub section. Other than the distribution section and the office root~ the other areas appear to have had repairs or replacements. INTERIOR: The interior materials vary fi:om section to section. The distribution section has unfinished insulated wails, the bottling section has painted concrete block walls. The original section varies fiom unfinished brick wails for several areas, to plaster in the offices and pub, plywood in the penthouse. The floor coverings are mostly unfinished concrete with some carpet and some wood floors in the offices and the pub. 39 Windows are storefront casements in the pub, double hung in the offices and upper levels of the original building, and casement type in the bottling section. There are no windows in the distribution section. The building sketch indicates the different sections and levels. These include the original brewery with pub and offices, brewing areas over several levels, and the maintenance and storage areas; plus the distribution section (1980) and the bottling section (1981). The original building has several large storage casks and vats that could be used by another brewery operation, or removed if there is different type of user. MECHANICALS: The appraiser was not able to locate and identify the main electrical panel but noted several lighting panels throughout the entire property. According to past inspection and interviews, there have been several upgrades to the propen'y, which were completed bythe previous tenant. There is a larger boiler in the maintenance section that provides heat throughout the building. LOT PARKING: There is a gravel parking area, a gravel driveway, and a brick driveway. 40 LAND VALUE ESTIMATE The appraiser has determined that the highest and best use for the property is for commercial uses, with the value adjusted for the estimated costs to demolish the industrial improvements. In order to estimate the value of the site as if vacant, it has been compared with competitive land sales in the Tri-State Area. Consideration must be given to lot size, location, traffic, zoning, date of sale, access, and allowable use. Refer to the Land Sales Adjustment Chart. The subject parcel measures approximately 76,971 square feet, and is zoned CR, Commercial Recreation District. LAND SALES COMPARABLES All of the comparables were adjusted upward for date of sale. The area sales indicate an increase ofapproxlmately 3% per year. Not all of the comparables listed in the Land Sales Chart on the next page were used to determine the subject's value but were researched as area land sales. The value determined in this approach is based on vacant, commercial land. The final value is adjusted downward by $280,000 for the buyer paying the estimated costs to demolish. 41 I I II I I I I I I I I I I I I I I I Land Sales Chart SALES DATE LOT ZONE $ PER SQ.FT. 1 $ 383,605 04/16199 1.690 C3 $ 5.21 2 $ 393,395 04/16199 1.740 C3 $ 5.19 3 $ 508,355 04/15199 2.746 C3 $ 4.25 4 $ 241,699 10112/99 1.410 ID, C3 $ 3.94 5 $ 286,215 10/05/99 2.190 C3 $ 3.00 6 $ 160,000 08/25/99 0.992 C3 $ 3.70 7 $ 367,500 11/16/99 1.630 C3 $ 5.18 8 $ 98,000 12/30/99 0.912 C3 $ 2.50 9 $ 420,000 09101199 1.061 C4 $ 9.09 10 $ 60,000 04/07199 0.089 C4 $ 15.50 11 $ 299,000 06/01/99 0.167 C4 $ 41.18 12 $ 1,200,000 05107196 5.050 CE $ 5.46 13 $ 1,056,000 12/30/99 2.310 CR $ 10.50 14 $ 2,000,000 05/22100 6.027 MHI $ 7.62 15 $ 67.500 06/01/00 0.059 C4 $ 26.37 16 $ 1,900,000 04~20~00 1.635 C3 $ 26.68 ADJUST ADJUST ADJUST FINAL DATE SIZE AREA $ 0.27 $ (3.00) $ $ 6.36 $ 0.22 $ (3.00) $ $ 7.72 $ $ $ $ 7.62 #9 and #14 are adjusted downward for smaller lot size (typically larger lots sell for less per square foot than similar smaller lots). #9 and #13 are adjusted upward for date of sale. #14 is the most recent sale in the area. Sale #t4 has not closed but all contingencies have been completed. Less weight is given to #13 since itwas a donation transfer. The other sales are located on the westside of town or were smaller in size and not given consideration. With some weight given to these adjusted comparables, it is the appraiser opinion that the subject land value, as if vacant with a commercial use, has a current estimated value of $7.50 per square foot. 76,971 times $ 7.50 equals $ 577,283 Estimate of Land Value (as if vacant) $577,000 (rounded) 42 As discussed, the land as if vacant must be adjusted downward since the buyer (City of Dubuque) will be paying for the estimated demolition costs. The estimated demolition costs (provided by the City of Dubuque, from Tschiggfrie Excavating) are $280,000. According to the City of Dubuque, the industrial improvements are located on the Crompton & Knowles property, and add no contributory value to the site with a highest and best use for commercial uses. Therefore, with adjustments for the demolition costs, the following value would apply. $ 577,000 tess $ 280,000 equals $297,000 ESTIMATE OFLANDVALUE $297,000 (rounded) 43 I I I I I I I I I I I I II I I I I I I COSTAPPROACH The reproduction cost of building is the total cost of construction required to replace the subject building with a substitute of like utility and quality. These costs typically include labor, materials, supervision, contractors' profit and overhead, architect's plans and specifications, sales tax and insurance. In this updated report, the value reflects a highest and best use for commercial uses, and the appraiser determined that the improvements do not provide value to the land, and in fact that they reflect a negative cost to the land for the cost to demolish the improvemems. The Land Value Estimate discusses these costs, and adjusts the land value as if the buyer will pay demolition costs. The City of Dubuque indicated that the improvements are located on the Crompton & Knowles property, and the estimated demolition costs of $280,000 are deducted from the property land value, as if vacant, to get the current value. LAND VALUE ESTIMATE The updated land value for the subject was previously in this report. Giving weight and consideration to all the lot data and all variables affecting value, it is the appraiser opinion that the subject (with buyer paying for demolition) has an estimated value of $297,000. I I I I I I II I I I I I I I I I I I ~CON~APPROACH The Income Approach considers the stream of income that the property is likely to produce during its economic life, and converts this income to a value estimate. Steps of the Income Approach include: 1. Estimate the Potential Gross Income (Economic Rent). 2. Add any additional sources of income (laundry, garage). 3. Subtract the typical vacancy losses. 4. The result is Effective Gross Income. 5, Subject estimated and/or actual expenses. Fixed such as taxes, ~ce, maintenance, management, licenses, utilities (if included in the rent) and long term such as reserves (future capital expenditures). 6. The result is the Net Operating Income. 7. Develop a capitalization rote (derived l~om the market or using the mortgage equity rate). Divide the net income by the capitalization rate to determine the Income Approach Value. As vacant commercial land, the property may have income potential but there are no current commercial land leases available. As improved, the current building has some potential for storage purposes, but the maximum capacity of the building would not be realized except as a brewery. This brewery use could not be realized without significant improvemems and upgrades. Typically, commercial land in the Dubuque Area is not used for its income producing ability. Since the property, is not leased, and does not have the potential to be leased, this approach is not considered relevant in valuing the subject. 45 I I I I I I I I I I I I I II I I I I I SALES COMPARISON APPROACH This approach 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. The currem improvements do not contribute to a value that is higher than commercial land, vacant and ready to build. The Estimate of Land Value was determined using a Sales Comparison Approach for lot sales. The land value in this report reflects the site being vacant and ready to use, which means the total investment would include the land purchase and demolition of the current improvements. For the purposes of this update report, the appraiser was tasked with determining a value that reflects the buyer paying the estimated demolition costs of $280,000. Refer to the value determined in the Estimate of Land Value for further discussion. $ 577,000 less $ 280,000 equals $297,000 SALES COMPARISON APPROACH TO VALUE $297,000 (rounded) 46 ! I The immediate area has been in a continuous transition from past industrial uses to commercial recreation uses. The client has specifically asked that the appraiser determine a value that I reflects its highest and best use as commercially zoned, with the buyer paying demolition costs. The traffic flow in the area (gambling riverboat and casino) combined with its riverfront visibility indicates continued increases in traffic. The most recent figures indicate attendance II over 1,000,000 tourists per year in the area. The most recent land sale for a commercial use (6+ acres being purchased by the U. S. Postal Service), supports the value determined in this report. i Based on an analysis of the data contained in this report, the appraiser has determined a most probable estimated opinion of current market value (based on the highest and best use as commercial land with lrayer paying for demolition of $280,000), as of 21 February 2001; $ 577,000 less $ 280,000 equals $297,000 R_ J. FELDERMAN J. · 48 I I I I I I I I I I I I II I I FELDERMAN APPRAISALS 1179 IOWA STREET, DUBUQUE, IOWA 52001 PHONE (319) 557-1465 FAX 019) 588-4214, E-mail: FeldermanR@~aol.com or JackFelderman~ahoo.eom Webpage: http://www.feldermans, eom FELDERMAN APPRAISALS is curremly engaged in real estate appraising and counseling, market feas~ility studies, and review appraising. The appraisers of the organiTation have a comprehensive background in real estate, business, economics, finance, management, aviation, and construction. All of the appraisers are State of Iowa Certified Real Property Appraisers, and some are Illinois Licensed Appraisers and/or Wisconsin Certified Appraisers. Current Appraisers of the firm are as follows: John L. Felderman, Illinois and Iowa Robert J. Felderman, Wisconsin and Iowa A partial listing of FELDERMAN APPRAISALS activities are listed below. Agricultural properties, including farmland for aviation uses, Apartments, condominiums and other multi-family projects, Bed and Breakfast Inns, Campgrounds, Church and rectory, Convenience Store and Track Stop facilities, Dealership facilities of all types, Eminent domain takings and condemnations, Freight warehouse and shipping/dism~bution facilities, Gasoline/service station and other convenience stores, Golf Courses of all types, Historical Restorations, Hotels and Motels of all types, Industrial factories, and warehousing, Lumber company and storage facilities, Marinas and similar properties, Medical Clinic and similar facilities, Mobile Home Parks, New construction appraisals from specifications and blueprints, Office buildings of all types, Recreational land and facilities, Renovated facility projects, Residential properties of all types, Restaurants and other f~st-food facilities, River-oriented facilities, School, gymnasim, and similar facilities, Shopping Centers and other retail facilities, Special purpose facilities, Subdivision, residential and other, Supermarkets, discounts stores, and other retail, Taverns, lounges, and similar properties, Warehouse, garages, and office/warehouse properties. 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 Buehanon County, Independence, Iowa Carlisle Gmphies, Dubuque, Iowa City Corporation Mortgage, Inc. St. Louis, Missouri City of Dubuque, Iowa City of East Dubuque, Illinois City of Independence, Iowa City of Maquoketa, Iowa Clinton County Assessor, Clinton, Iowa Coldwell Banker Mortgage Services, Inc., Overland Park, Kansas Copper Mill Construction, Dubuque, Iowa Cmwford, Miller, & Taylor, Inc. Springfield, Illinois John Deere & Company, Dubuque, Iowa Design Center Associates (Historic Restomtiun), Dubuque, Iowa Dubuque Bank and Trust Company, Dubuque, Iowa Dubuque Initiatives (formerly Dubuque INFUTURO), Dubuque, Iowa DUPACO Community Credit Union, Dubuque, Iowa Dupont Company Corporate Relocation, Wilmington, Delaware DUTRAC Community Credit Union, Dubuque, Iowa East Dubuque Savings Bank, East Dubuque, Illinois Federal Deposit Insurance Corpomtiun (FDIC), Des Moines, Iowa Ferring Mobile Homes, Inc., Dubuque, Iowa Firstar Bank, Iowa & Wisconsin & Illinois Fischer Companies, Dubuque, Iowa Holiday Oil Distributing, Inc. 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 and King, Dubuque, Iowa Law Firm Fuerste, Carew, Coyle, 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 Northeast Iowa Community College, Dubuque, Iowa St. Lukes United Methodist Church, Dubuque, Iowa Spahn and Rose Lumber Company, Dubuque, Iowa Track Company of Iowa Transequity, Member of Byron Reed Company, Inc. Omaha, Nebraska United States Postal Service, Kansas City, KS Wartburg Seminary, Dubuque, Iowa ! ! I I II I I I I I I I I I I I I I I I I BUILDING SKETCH ADDENDUM A m SKETCH/AREA TABLE ADDENDUM Properly Address 500 E. 4th Street Dubuque County Dubuque State IA Zip 52001 Borrower City of Dubuque Lender/Client City of Dubuque L/C Address 50 W. 13th St, Dubuque, IA 52001 ~rName F~.J. Fe[derman ApprAddress ~-79 TO~ St, DU]~Ltqt~'E~',' ~A 5200] Shipping SecUon 24'H Bog]ing ~ecUon 20'H 3 story Storag Storage 2 story 28'E Filter Syrup Area 36'H 4 story with Penthouse Parking Tower Street (brick) Grass Area Fth~dwall 1 --50 AREA MAP ADDENDUM B Location Map 1File No. 500e,4th-JLFI Paqe #4[' Count, Dubuque State lA ! ! FELDERPLaJ~ APPRAISALS MAP(S) OF SUBJECT AND COMPARABLES ADDENDUM C M~DDLE ~ __ WOLFF R FELDERMAN APPRAISALS I I I I I I I I I I I I I I I I I I PLAT ADDENDUM D I I I I I 11-19F ! -% / / / / / -% I I I I I I I I I I I II I I I I I I FELDE~ APPRAISALS FLOOD HAZARD MAP ADDENDUM E I I I I I I I I i I I I I I I FELDER~LA~q APPRAISALS CENSUS TRACT MAP ADDENDUM E Census Tracts pI01.0:3 ~ DUBUQUE. IO~r/A ~ 11.02 t?.o~ ,, · / , ~.o~ -~ ./ ~ ¢7 -' LEGEND Slalo OoundanJ Co~oKato Limits TFoCt LIn~s O.O1 2 101.02 ZONING MAP AND DATA ADDENDUM E C-5~ C .?:~ ....... ~,.. / HI / / / / * MHI / / HI EAST DUBUQUE FELDE~ APPRAISALS PHOTOGRAPHS OF THE SUBJECT ADDENDUM F Bo~ower/Client ¢~W of Dub. o~.~ [ [~ope~/Address 500 E 4th Stre. ot j ~ ~ J Lenda- Cirw of DaTtmqao PHOTOGRAPH ADDENDA jFile No. 500e4th-JLFI Page #1J ~p Code 52001 I C~nter Front Front Right Form LPICPIX -- "TOTAL 2~00 for Windows" appraisal software by a la mode, inc. -- 1-800-ALAMODE IFile No. 500e4th-JLFI Pace #31 I I I I I I PHOTOGRAPH ADDENDA Zip Code 5~o0! Fro~t LeR Form LPICPIX --"TOTAL 2000 for W~Jows" agpraisaJ software by a la mode, inc.-- 1-80(NALAMODE PHOTOGRAPH ADDENDA IFiie No. 500PAth-JLFI Paqe ~21 [ Bo~owor/C~e~ CiV/o£ Dubuque Ploper[y Address 500 E 4th Stro~t Lender c~t~ of D~baq~¢ Zip Code 52001 Form LPICPIX --"TOTAL 2000 for W'mdows" appras~ software by a ~a mode, inc.-- 1-SOO-ALAMOOE I II I I I I I I I I II I I I I I I APPRAISERS CERTIFICATIONS AND LIMITATIONS ADDENDUM G DEFINITION OF MARKET VALUE: (from the USPAP 2001 EDITION - with last two paragraphs added) The most probable price which a property should b~ng in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, and knowledgeably and assnmlng the price is not affected by undue stimulus. Implicit in this definition is the consnmmation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest: (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms ofcash in U.S. dollars of 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. Substitution of another currency for United States dollars in the fourth condition is appropriate in other countries or in reports addressed to clients from other countries. Persons performing appraisal services that may be subject to litigation are cautioned to seek the exact legal definition of market value in the jurisdiction in which services are being performed. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs, which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these cost in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. I STATEMENT OF LIMITING CONI)ITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to do it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the tale. The property is appraised on the basis of it being under respons~le ownership. 2. 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. I I I I I I I I 3. 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 wbether the subject site is located in an ident'rfied Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court bemuse he or she made an appraisal ofthe property in questions, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its 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. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions Cmcluding the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assmed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. I I The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must NOT be considered as any type environmental assessment or property inspection of the property. I I 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be tree and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professionai Appraisal Prac~ce. 9. The appraiser may have based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption of the improvements will be performed in a workma~ike manner. 10. The appraiser must provide his or her prior written consent before the lender/cliant specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's idenfifig 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 Columb'm; except that the lender/client may distribute the property description section of the report only to data collection or reporting service (s) without having to obtain the appraisers prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. I I I I I II I I I I I APPRAISER'S CERTIFICATION: The appraiser ee~-ifies and agrees that: I have researched the subject market area and have selected a minimm of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation~ Ifa si~nificant item in a comparable property is superior to, or more favorable than, the subject property, I have made a NEGATIVE adjustment is made to reduce the adjusted sales price of the comparable and, if a si~mificant item in a comparable property is inferior to, or less favorable than the subject property, I have made a POSITIVE adjustment is made to increase the adjusted sales price of the comparable. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are tree and correct. I stated in the appraisal report only my own personal, unbiased, and professional armlysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form~ I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transactinr~ I did not base, either partially or completely, my analysis and/or the estimate 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. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. I was not required to report predetermined value or direction in value that favors the cause of the client or any related party, the mount of value estimate, the attainment ora specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for perform~ the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date ofthis appraisal, with the exception of the departure provision of those Standards, which does not apply (tmless specifically stated so). I acknowledge that an estimate ora reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise state in the reconciliation section. I have personally inspected the interior and exterior areas of the subject property, and the exterior of all properties listed as comparables in the appraisal report (unless otherwise indicated). I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal of the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I take no responsibility for it. I I I I I SUPERVISORY APPRAISER'S CERTIFICATION: Ifa supervisory appraiser signed the appraisal report, he or she certifies and agrees: I directly superdse the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. SUBJECT PROPERTY: 500 E. 4TM STREET, DUBUQLrE, IOWA CLIENT: CITY OF DUBUQUE BORROWER: N/A I Signature: I Name: R.J. FELDERMAN Date Signed: 10 March 2001 State/Certification: IOWA CG01134, Expires: 30 June 2002 I WISCONSIN 766, Expires: 31 December 2001 , I ! ! Signature: Name: J.L. FELDERMAN Date Signed: 10 March 2001 State/Certification: IOWA CG01154, Expires: 30 June 2002 ILLINOIS 153-000851 Expires: 30 September 2001 I I I ! QUALIFICATIONS OF APPRAISERS ADDENDUM H FELDERMAIqAPPRAISALS I I I I COMPARABLE SAI,ES DATA Slqi~ETS AND PHOTOS ADDENDUM I LAND SALES BUILDING SALES OF APPLICABLE) INCOME COMPARABLES (IF APPLICABLE) I I I I I I I II I I I I I I I I I I I LA/~D COMPi~RABLE ~ 1 ADDRE S S: SALE PRICE: SALE DATE: DOCUMENT: LEGAL: SELLER: BUYER: LOT SIZE: ZONING: $ PER SQ.FT.: COMMENTS: MEDICAL ASSOCIATES DRIVE, DUBUQUE $383,605 4/16/1999 6616-99 LOT 1-5 MEDICAL ASSOCIATES SUB # 2 MEDICAL ASSOCIATES REALTY ROLPH LIVING TRUST, DARRELL 1.69 ACRES, OR 73,616 SQUARE FEET C3 GENERAL COMMERCIAL $5.21 10-28-153-012, FOR FUTURE CARLOS O'KELLY'S RESTART. BOUGHT TWO LOTS AT SAME TIME BUT DIFFERENT NAMES AiqD USERS. DMLS 18837, DAYS ON M3~RKET 500, WAS ASKING $6. CONFIRM~ED PAT FRIEDM3kN BROKER. I I I I I I I I I I I I II I I I I I I LAND COMPARABLE ~ 2 ADDRESS: SALE PRICE: SALE DATE: DOCUMENT: LEGAL: SELLER: BUYER: LOT SIZE: ZONING: $ PER SQ.FT.: COMMENT S: MEDICAL ASSOCIATES DRIVE, DUBUQUE $393,395 4/16/1999 6615-99 LOT 2-5 MEDICAL ASSOCIATES SUB # 2 MEDICAL ASSOCIATES REALTY ROLPH, Dia_RREL & DAVID 1.74 ACRES, OR 75,794 SQUARE FEET C3 GENERAL COM1K~ERCIAL $5.19 10-28-153-013, FOR NEW APPLEBEE'S RESTAURANT. BOUGHT TWO LOTS AT S~ViE TIME BUT DIFFERENT NAMES AND USERS. DMLS 18837, DAYS ON MAR If ET 500, WAS ASKING $6. CONFIRMED PAT FRIEDMAN BROKER. ADDRE S S: SALE PRICE: SALE DATE: DOCUMENT: LEGAL: SELLER: BUYER: LOT SIZE: ZONING: $ PER SQ.FT.: C OPK~IENT S: PRIOR TO SALE, GRADING. LAND COMPARABLE ~ 3 ASBURY ROAD AT NW ~RTERIAL, DUBUQUE $508,355 4/15/1999 6415-99 LOT 2 HOLIDAY ADDITION QHQ ALDI, INC. 2.746 ACRES, OR 119,616 SQUARE FEET C3 GENERAL COMMERCIAL $4.25 10-20-227-002, FOR NEW GROCERY STORE. REZONED AND SELLER PLACING STREETS, CURBS, AND SITE I I I I I I I I I I I I I I I I I I I LAND COMPARABLE # 4 ADDRESS: SALE PRICE SALE DATE DOCI/NiENT: LEGAL: SELLER: BI/f ER: LOT SIZE: ZONING: $ PER SQ. FT COM~fENT S: PENNSYLVANIA ROAD AT NORTHWEST ARTERIAL, DUBUQUE $241,699 10/12/1999 17107-99 LOT 1 ASSEMBLY OF GOD PLACE A~SSEMBLY OF GOD MINISTRIES EAST DI/BUQUE SAVINGS Bia/q-K 1.41 ACRES, OR 61,420 WAS ID, REZONED TO C3 $3.94 10-21-351-022. SQUARE FEET GENERAL COMMERCIAL LEVEL LAND SPLIT FROM LARGER PIECE. HIGH TRAFFIC COUNTS ALONG ARTERIAL BUT FURTHER AWAY FROM HIGHWAY 20. OTHER LA/qD VALUES IN AREA Ai{E BETWEEN $5.00 3LND $5.50 PER SQUARE FOOT. I I I I I I I I I I I I I I I I I I I LAND COMPi~RABLE ~ 5 ADDRESS: SALE PRICE: SALE DATE: DOCUMENT: LEGAL: SELLER: BUYER: LOT SIZE: ZONING: $ PER SQ.FT.: COMMENTS: MEDICAL ASSOCIATES DRIVE, DUBUQUE $286,215 10/5/1999 15959-99 LOT 1 MEDICAL ASSOCIATES SUB # 2 MEDICAL ASSOCIATES REALTY PIJtT INUM, LLC 2.19 ACRES, OR 95,396 SQUARE FEET C3 GENERAL COPIMERCIAL $3.00 10-28-151-008. ASSESSED 2000 AT $129,530.CONFIRMED PAT FRIEDMJ~N BROKER. LOW PRICE DUE TO 2.5 YEAR OLD OPTION, BUYER WAS TENANT OF SELLER, AND BUYER REQUIRED TO PURCHASE ADJOINING LOT 2 AT IJtTER DATE. ALL Pi~RTIES AGREED BEST PRICE ON LAND IN A_REA IN PAST FEW YF2LRS. I I I I I I I I I I I I I I I I I I I LAND COMPARABLE $ 6 ADDRE S S: SALE PRICE: SALE DATE: DOCUMENT: LEGAL: SELLER: BUYER: LOT SIZE: ZONING: $ PER SQ.FT.: COMMENTS: KENNEDY CIRCLE, DUBUQUE $160,000 8/25/1999 14594-99 LOT 2 HERI~IGS JFK ADDITION HERRIG AND HERRIG REAL ESTATE DUBUQUE HLC. INC. 43,201 SQUARE FEET C3 COMI~ERCIAL $3.70 10-21-428-010. BEHIND ANOTHER LOT THAT FRONTS ON KENNEDY CIRCLE. ACCESS END OF CUL-DE-SAC OFF OF MAJOR ARTERIAL. ASSESSED $66,230. LOT LOCATED IS AT I I I I I I I I I I I I I I I I I I I ADDRE S S: SALE PRICE: SALE DATE: DOCUMENT: LEGAL: SELLER: BUYER: LOT SIZE: ZONING: $ PER SQ. FT.: COMMENTS: FRIEDMAN, LAND COMPARABLE % 7 MEDICAL ASSOCIATES DRIVE, $367,500 11/16/1999 18334-99 LOT 6 MEDICAL ASSOCIATES SUB # 2 MEDICAL ASSOCIATES REALTY COUNTRY INNS 1.63 ACRES, OR 71,003 SQUARE FEET C3 GENERAL COMP~ERCIAL $5.175 10-28-153-011, FOR NEW MOTEL, BROKER. ASKING $6.00 DUBUQUE CONFIRMED PAT I I I LAND COMPARABLE # 8 ADDRESS: SALE PRICE: SALE DATE: DOCUMENT: LEGAL: SELLER: BUYER: LOT SIZE: ZONING: $ PER SQ.FT.: COMMENTS: 4100 BLOCK PENNSYLVANIA AVENUE, DUBUQUE $98,000 12/30/1999 126-00 LOT 2 PORTZEN COMMERCIAL PARK IIW ENGINEERING 4155 PENNSYLVANIA AVENUE PARTNERSHIP 39,271 SQUARE FEET C-3 COMMERCIAL $2.50 10-20-52-008. ASSESSED $58,120. SELLERS AND BUYERS MAY HAVE SOME OF THE SAME INVOLVED. VALUE AJPPEAIIS TO BE M_ABI<ET BASED ON ACCESS AND TRAFFIC COUNTS. I~U~ND COMPARABLE # 9 ADDRESS SALE PRICE SALE DATE DOCUMENT ~ SELLER BUYER LOT SIZE ZONING USE 2155-2167 CENTRAL AVENUE, $420,O00 9/1/1999 14146-99 PRIDE SERVICE WOLFF, DANIEL 46,200 SQUARE FEET C4 DOWNTOWN COMI~ERCIAL GAS STATION DUBUQUE ($40,000 I~AXIM-LIM PERSONAL PROPERTY) PRICE PER LAND SQUARE FOOT: O.A.R. N/A $9.09 COMMENTS SPLIT AND SOLD 30,587 SQUARE FEET AND $40,000 OF TANKS AND METERING SYSTEM TO ASPERMONT COMPANY FOR $280,000 ($9.15 PER SQUAP~E FOOT) LEAVING BA3~ANCE OF 15,613 SQUARE FEET AT $140,000 ($8.97 PER SQUARE FOOT). 10-24-135-002 INTO 004 & 005, VERIFIED NICK GOODFLAArN BROKER A_ND LARRY WOLFF. I I I LAND COMPARABLE # 10 ADDRESS SALE PRICE SALE DATE DOCUMENT # SELLER BUYER LOT SIZE ZONING 330-332 MAIN STREET, $60~000 PLUS DEMOLITION 4/7/1999 6163-99 DOLAN ESTATE CITY OF DUBUQUE 3~870 SQUARE FEET C4 USE VACANT RETAIL~ PRICE PER LAND SQUARE FOOT: DUBUQUE (COSTS UNKNOWN) (34.25X113) APARTMENTS $15.50 ($ 2a~DJUSTED) O.A.R. VACANT EXCEPT FOR BASEMENT COMMENTS IN HISTORIC DISTRICT. ON MARKET FOR OVER 1 YEAR. TO BE DEMOLISHED IN 2000. CITY OWNS ADJOINING LOT THAT WAS DEMOLISHED BUILDING IN 1999, AND LAND ACROSS ALLEY THAT WILL BE FUTURE PARKING RAMP. VERIFIED SALE WITH JAMES BURKE CITY OF DUBUQUE. I I I I I I I I I I I I I I I I I! LAND COMPARABLE % 11 ADDRE S S SALE PRICE SALE DATE DOCUMENT # SELLER BUYER LOT SIZE ZONING USE VACANT HOTEL PRICE PER LAND SQUARE FOOT: O. A. R. VACANT 304 MAIN STREET, DUBUQUE $20,000 PLUS $279,000 DEMOLITION/CLEAN 6/1/1999 10363-99 HOS ESTATE CITY OF DUBUQUE 7,260 SQUARE FEET (64.25Xl13) C4 $2.75 ($41.18 ADJUSTED) COMMENTS IN HISTORIC DISTRICT. ON MARKET FOR OVER 1 YEAR. NOT HABITi%BLE AT TIME OF SALE. DEMOLISHED ($240,000) IN 1999, AFTER ENVIRONMENTAL CLEAN UP ($19,000 ASBESTOS) AND REMOVAL OF ON SITE JUNK ($20,000). BOUGHT BY CITY TO CONTINUE CLEAN-UP EFFORTS OF HISTORIC OLD MAIN AREA. CITY OWNS LAND ACROSS ALLEY THAT WILL BE FUTURE Pi~RKING P, AMP. VERIFIED SALE AND DEMOLITION COSTS WITH JAMES BURKE CITY OF DUBUQUE. INSPECTED 1998 FOR APPRAISAL. I I I I I I I I I I I I I I I I I I I LB_ND COMPARB_BLE ~ 12 ADDRESS SALE PRICE SALE DATE DOCUMENT # SELLER BUYER AGE LOT SIZE ZONING USE PRICE PER LAND SQUARE FOOT: O.A.R. SOME RETAIL, COMMENTS IN ICE HARBOR. SALE. COSTS NOT AVAILABLE. 98 E. 3TH STREET, DUBUQUE $1,200,000 5/7/1996 5542-96 HARBOR PLACE HARBOR COMMUNITY INVESTMENT, LLC 1883 219,978 SQUAiRE FEET CR COMMERCIAL RECREATION WAREHOUSE, RETAIL, VACA/~T $5.46 MOSTLY VACANT BUILDING DEMOLISHED AFTER 1999 I I I I I I I I I LAND COMPARABLE # 13 ADDRE S S SALE PRICE SALE DATE DOCUMENT # SELLER BUYER LOT SIZE ZONING USE PRICE PER LA~rO O.A.R. COMMENTS E. 3TH STREET, DUBUQUE $1,056,000 DONATION 12/30/1999 19316-99 HARBOR COMMUNITY INVESTMENT, LLC DUBUQUE COUNTY HISTORICAL SOCIETY 100,580 SQUARE FEET (SPLIT FROM PARCEL) CR COMMERCIAL RECREATION VACANT SQUARE FOOT: $10.50 N/A ORIGINALLY PART OF LARGER PARCEL OF LAND THAT HAD BUILDING, WHICH WAS DEMOLISHED AFTER 1999 SALE. DONATED FOR COST OF $1 WITH APPRAISAL OF $1,056,000 USED FOR DONATION VALUE. CONFIRMED JERRY ENZLER, DUBUQUE COUNTY HISTORICAL SOCIETY. I I I I I I I I I I I I I I I I I I LAND COMPARABLE # 14 ADDRESS SALE PRICE SALE DATE DOCUMENT # SELLER BUYER LOT SIZE ZONING USE PRICE PER LAND SQUia/RE FOOT: O.A.R. N/A KERPER COURT AT KERPER BOULEVARD, DUBUQUE $2,000,000 5/22/2000 (NOT RECORDED AS OF 8/1/00) SALES CONTRACT MIHALAKIS AND BILLMEYER UNITED STATES POSTAL SERVICE 262,536 SQUARE FEET (6.027 ACRES)) MHI, MODIFIED HEAVY INDUSTRIAL VACANT, FOR COMMERCIAL USE $7.62 COMMENTS LAST SALE WAS 1999 WITH PARTIAL TRADE AND CASH OF $72,000 FROM MIHALAKIS AND BILLMEYER. UTILITIES TO SITE. SUBJECT IS LOCATED ALONG ACCESS RAMP TO MAJOR ARTERIAL, PLUS NEW M-ANUFACTURING PLANT IN Si~E BLOCK AND DOG TRACT AND CASINO LOCATED WITHIN TWO BLOCKS. AREA IS IN TRANSITION TO COMMERCIAL USES NEAR THE HIGHWAY AND RAMP. I I I I I i I I I I I I I I I I I I I LAND COMPARABLE % 15 A/~DRE S S SALE PRICE SALE DATE DOCUMENT # SELLER BUYER GROSS BLDG. SIZE AGE LOT SIZE ZONING USE $ PER SQU~/~E FOOT O. A. R. COM~ENTS 1433-35 CENTRAL AVENUE, DUBUQUE, IOWA $67,500 6/1/2000 7765-00 TEAMSTERS #421 PAUL FAHEY 3,506 SQU~RE FOOT TWO STORY BRICK/BLOCK 1900 2,560 SQUARE FEET C4 OFFICES $19.25 BUILDING LAND $26.37 OWNER OCCUPIED 10-24-407-011. ASSESSED $46,210. VERIFIED SELLER 6/1/2000. BOUGHT BY A~DJOINING PROPERTY OWNER FOR DEMOLITION AND USE OF THE LAND $26.37 PER SQU/~/~E FOOT. CORNER LOTS WITH FRONTAGE ALONG HIGHWAY 52 ~-AJORARTERIAL. I I I I I I I I I I I I I I I I I I I LAND COMPARABLE # 16 ADDRESS SALE PRICE SALE DATE DOCUMENT ~ SELLER BUYER LOT SIZE ZONING USE $ PER SQUARE FOOT COMMENTS WALGREEN' S. PURCHAS I NG. SQUARE FOOT 2260 J. F. KENNEDY ROAD, DUBUQUE, IOWA $1,900,000 4/2O/2OOO 4402-00 PAUL FAHEY WOLF-HAMILTON, LLC 71,210 SQUARE FEET C3 WAS FAST FOOD, DEMOLISHED $26.68 10-22-151-001 AND 002. PURCHASER IS CORPORATE POLICY CHANGED FROM LEASING BUILDINGS TO BASED ON BUILDING LEASE IN KENkrEDYMALL OVER $20 PER (PLUS PERCENTAGE OF GROSS SALES) THEY COULD PAY UP TO $30 PER SQUARE FOOT FOR VACANT LAND AND BE IN FOR A LOWER COST. PREVIOUSLY HikD MADE AN OFFER OVER $27 PER SQUARE FOOT FOR LAND AT KENNEDY AND PENNSYLVANIA (VERIFIED BROKER). FELDE~ APPRAISALS BIBLIOGRAP]tY ADDENDUM J I I FELDEPddAN APPRA/Sd~8 I I I I I I I I I I I I I I I I APPRAISAL BIBLIOGRAPHY Akerson, Charles B.,MAI., The Appraisers Workbook, The A3nerican 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. 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. 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 Permanent Plantinq Orchards and Vineyards, Chicago, IL 1985. The American Institute of Real Estate AppraIsers, The Appraisal of Irrigated Property, Chicago, IL 1985. The American Institute of Real Estate Appramsers, The AppraiSal of Livestock and Ranch's, Chicago, IL 1985 The American Institute of Real Estate Apprazsers, The Appraisal of Dairy Farms, Chicago, IL 1985. The American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal. Chicago, IL 1987. The American Institute of Real Estate Appraisers, Subdivision Analysis, An Educational Memorandum. 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. Commercial Investment Appraisal, Real Estate Law Institute, Chicago, IL 1988. Dubuque County, Iowa, Land and Atlas Book, Latest year. Map Publishers, Inc. Rockford I I FELDERM~2~ A~PRAISALS - DUBUQUE, IOWA 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. Farm and Land Appraisal, Real Estate Law Institute, Chicago, IL 1988 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 I I I I I I I I I I 1990. Friedman, Edith J., Estate Appraising, Cliffs, N.J. 1987. General Editor, The Encyclopedia of Real Fourth Edition Prentice-Hall. Englewood Gibbons, James E. Meeting Equity Capitalization: Ellwood Method. American Institute of Real Estate Appraiser, Chicago, IL 1981. Gimmy, Arthur E. and Boehm Michael G., Elderly Housing A Guide to Appraisal, Market Analysis, Development and Financing. Illinois, 1988. American Institute of Real Estate Appraisals, Golf Courses and Valuation, Chicago, IL 1980. Harrison, Henry S. Small Residential Income Property Appraisal Guide. Forms and Worms. 1986. Harrison, Henry S. Illustrated Dictionary of Real Estate and Appraising. Harrison, Henry S., Harrison's Illustrated Guide to Uniform Residential URAR Appraisal Report, 1986 Edition. New Haven, Forms and Worms. Chicago, IL 1986. CT. I I FELDERPID3$ APPRAISALS - DUBUQUE, IOWA I I I I I I I I I I I I I I I I Harrison, Henry S., Houses, National Marketing Institute, Chicago, IL 1976. Iowa Land Sales Report, P.O. Box 127, Fort Dodge, Iowa. Kinnard, William N., Jr., Income Property Valuation, Lexington Books/D.C. Heath and Co., Lexington, MS., 1971. Lukens, Reaves C., Jr., The Appraiser and Real Estate Feasibility Studies. American Institute of Real Estate Appraisers. Chicago, IL 1972. Marshall and Swift., Residential Cost Handbook. Los Angeles, CA 1983. Practice of Real Estate Appraising, Real Estate Law Institute, San Antonio, TX 1988. Principles of Real Estate Appraisal, Real Estate Law Institute, San Antonio, TX 1988. Rural Property in Transition: Non Agricultural Uses, American Institute of Real Estate Appraisers, Chicago, IL 1985. Rushmore, Stephen, Hotels, Motels and Restaurants, Valuation and Market Studies, American Institute of Real Estate Appraisers, Chicago, IL 1985. Reynolds, Judith, Historic Properties Preservation and Valuation Process, American Institute of Real Estate Appraisers. Chicago, IL Sirota, David, Essentials of Real Estate Financing Real Estate Education Company, Chicago, IL 1977. Suttle, Donald T., Jr., The Appraisal of Roadside Advertising Signs, American Institute of Real Estate Appraisers, Chicago, IL. 1972. Writing The Narrative Appraisal Report, Real Estate Law Institute San Antonio, TX 1988. Uniform Standards of Professional Appraisal Practice (USP/LP), published by "The Appraisal Foundation", (current update). I I I I I I I I I I I I I I I I I PERIODICALS Appraisal Journal, 430 North Michigan Ave., American Institute of Real Estate Appraisers, Chicago, IL 60611. Quarterly. Doanes Reference Volu/~e, City, MO. Doanes Agricultural Service, Kansas Farm and Land Realtor, Fam 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/STANDA/kDS Applicable Zoning Ordinances for cities and/or counties. Uniform Standards of Professional Appraisal Practice, Appraisal foundation, 1029 Vermont Avenue bm, Suite 900, Washington D.C. 20005. I ! FELDERPiAN A~PRAISALS - DUBUQUE, IOWA I I I I I I I I I I I I I I I I Mobile Home - Manufactured home built before 1976. MRA - Master Residential Appraiser, member of the National Association of Master Appraisers MSA -Master Senior Appraiser, member of the National Association of Master Appraisers. Narrative - Telling a story, account, tale. Neighborhood - A specific market area, as defined by boundaries. Net Income - The income derived after deducting all expenses, the vacancy allowance and the reserves. Net Lease - A lease'where tenant pays upkeep, taxes and insurance. Net Operating Income (NOI) - Effective gross income less property operating expenses and reserves. Obsolescence - Loss in value because of a decrease in utility. Parquet Floor - Flooring laid in rectangular or square pattern in thin wooden blocks. Perimeter - The outer boundary of an area. Physical Depreciation - Loss in value due to impairment of physical condition of the property. Professional - Engaged in an occupation with high standards. Private Practice - Professionals offering their services to the general public. Probate - Proof in court of a will. Property Residual Technique In the income approach an estimate of value obtained by capitalizing forecasted income at an overall rate (see Building Residential and Land Residual). Pursue - Strive, seeks specific course of action. Physical Depreciation - Loss in value due to its physical condition. I I I I I I I I I I I I I I I I I I Qualifications - Describing the qualities or characteristics of an occupation. Ranch - A large farm with its buildings and lands used to raise livestock in large numbers. Ratio - A fixed relation between two similar things. REALTOR - A registered trademark of the National Association of REALTORS, which may be used only by member of a constituent board of REALTORS. Reconciliation - The adjustment process between comparable properties and the subject property. Previously called correlation. Replacement Cost - Cost of replacing improvements with modern materials and techniques. Reproduction Cost - Cost of constructing and exact replica of an improvement. RM - Residential Member of the American Institute of Real Estate Appraisers. Row - Arranged so as to form a line. Sandwich Lease - A lease created by the lessee subletting the property. Service Income - The type of income collected for services rather than rent. Site - Land ready for development, or with improvements. SRA - Senior Residential Appraiser, member of the Society of Real Estate Appraiser. SREA - Senior Real Estate Analyst member of the Society of Real Estate Appraisers. SRPA - Senior Real Property Appraiser, member of the Society of Real Estate Appraisers. Substantiate - To show to be true or real by giving evidence. Textone - Rough irregular pattern applied to dry wall construction. I I EELDERRi~N APPRAISALS - DUBUQUE, IOWA I I I I I I I I I I I I I I I I I Tillable - The condition of land allowing cultivation. Utilization - The quality or property of being useful, using to the best advantage. Vacancy Allowance - That amount deducted from potential annual gross income to reflect the probable vacancies and non-payment of rent. Generally a percentage of the annual gross income. Value The worth of a thing in money or goods at a certain time. Wainscot - Wooden lining of an interior wall, usually panels; lower part of an interior wall separated by a molding. Windows Glassed opening in wall, can be single hung, double hung, fixed awning, casement, and traverse. I I I I I I I I I I I I I I I I I COMMITNITY QUICK REFERENCE SHEET ADDENDUM K I FELDEP~N APPRAISALS Community' Quick Reference Dubuque County January 1999 Population (U.S. Censns/Woods&Poole) Yeah CommuniW, Count, SUm 1980 62.321 93,745 2,913,190 1990 57,538 86,403 2,776,755 2000 N/A 89,280 2,888,600 Populafionwiflfin50nfiles(ConmL Est): 250.000 Labor Force Information: IWD Labor Force Summmy for Dubuque MSA, Annual Average for 1997 Labor Force Data: Resident labor force: 49,600 Resident unemployed: 1.900 Percent unemployed: 3.9 Employment Data - Place of work: Nonagricultural wage and salary workers: 50.900 Nonmanufacturing: 39,000 Transportation, Conm~unication and Public Utilities: 2.100 Wholesale and Retail Trade: 12.200 Retail Trade: 9.000 Services: 17,400 Estimated Labor Force Available: Male: 7.095 F~male: 7,150 Proximity to markets: Resident total employment: 47,700 Manufacturing: 11,900 Construction and nfining: 1,800 Wholesale Trade: 3.200 Finance, Insurance, Real Estate: 1.700 Goverrmnn~t: 3,700 Total: 14,245 City Miles Days by Raikoad Days by Motor Freight Atlanta 807 8 3 Cldcago 183 2 1 Dcm,er 859 5 2 Des Moines 189 1 I Kansas City 375 2 1 Los Angeles 1885 9 5 Mil~vaukce 160 ,3 1 Minneapolis 260 1 1 New Orleans 963 6 4 New York 950 7 4 Omalm 320 2 St. Louis 310 5 I Wage Rates For persons in se!~cted occupations living or working in community: Occupation or Job Title Entry Average Clerk, Gen. Office $6.42 $8.19 Dam Entry Opr. 6.30 7.43 General Laborer 7.67 8.70 Macinmsk General 7.89 9.79 Material Handler 6.72 12.84 Prod. Assembler 7.31 13.30 Secmtary 6.01 8.14 Welder. Combination 9.73 14.45 Computer Operator 7.47 10.72 Computer Programmer 11.17 19.41 Prod. Mach/ne Operator 7.88 17.60 Maintenance Mecl~ufic 8.70 12.03 Clerk-Typist 6.21 8.30 Truck Driver. Heavy 7.50 9.32 I I I I I I I I I I I I I I I I I I i Industrial Sites Site Name Indus. Ctr.-Chavenalle Rd. Indus. Cfr. - Radford Rd. Technology Park Indus. Ctr.- West Total Acreage available 22 5 Location of site Chavenellc Rd. Radford Rd. US Hwy 61/151 Seippel Rd. Asking price per acre $32.670 Name of Landowner Dubuque-in-Future, Inc. Is Site servcd by mil? No Electricity (Primary Voltage) 13.800 Water 12"main Gas 4"main Sewer 18"main Zoning Classification Light Industrial Fire Insurance Class 3 3 Tax R~ate/$1,000 Assessed Valuation $29.57 $29.57 · ls Site located %viildn a tax increment area? Yes Yes 58 125 $54.450 $76,230 * Dubuque-in-Futuro. Inc. City of Dubuque City of Dubuque No No Yes 13.800 13,800 13,800 12"main 16"main 16"main 2"main 4"main 6"mah~ 18"main 18"main 18"main Light Industrial Light Industrial Heavy Industrial 3 3 $29.57 $29.57 Yes Yes Conununity willing to create tax incentives. Yes yes Yes Yes Additional site i:ffonnafion available upon request. Prices listed above may be subject to negotiation. Available Buildings Square Feet Peak Height Track Docks Sprinkler 80.000 28' 7 Yes 38,480 14' 1 No 22.500 24' 3 No 20.000 7' 8 No 10.200 9' 0 No 8.000 9' 0 No Additional building information available upon request EELDERMAN ApPRAISAI.~ I I I I I I I I I I I I I I I I I Local Employers Name Product/Service Employmant. Union Majm manufacturers and other employers in the area: John Deem Dubuque Works induslxial tractors 2352 UAW Mcrcy Health Crt-St. Joseph's Unit acute hospital services 1329 none Medical Associates Clinic health services 9813 nane The Finley Hospital hospital care 840 none City of Dubuque mm~icipal public service 705 AFL-CIO Advanced DataCom call center services 540 none Bamstead-Thermoiyne Corpomtian laboratopj oqmpment 432 IBEW Dubuque Community School District public education 1410 DEA Farmland F6ods, inc. food processing 1300 UFCW Alliam Energy electric Utility 865 IBEW Flexsteel Industries, [nc upholstered furniture 835 USAW Eagle Manufacturing Company almninum and ~vood windo~vs/doors 550 none Diamond Jo Casino entertaimncnt 438 none Dubuque County govermneatal public services 415 AFSCME Number of Manufacturing plants in community: 123 Number of Manufacturing plants with Unions: 24 Number of Manufactunng employees in cohununity: 11,842 Number of work stoppages in last five years: 4 Utilities -Electricity Supplier: private, Name of suppliem: Alliant Energy -Water supplied by: manicipal, Names of supplier: City of Dubuque. Source of city water: well Elcwated Storage Capacity: 16,000,000 gallons, Capacity of water plant: 18,000,000 gallons Average cousmnpfion: 8.500,00Q gpd, Peak coasumptinn: 13.000,000 gpd -Natural gas: Local distributor: Peoples Natural Gas/Energy One, Pipeline: Northern Natural Gas Company -Sanitation: Type sewage trcatmant plant: seeondmy, Percent of community served by sewer: 99% Average load: 10.200,000 gpd. Peak load: 32,000,000 gpd, Design capacity: 15,000,000 gpd -Teleeonununicafious: Local telephone company: McLeod USA/U.S. West Time required for repair (reg. bus. hours): 24 hour service, Equal Access long distance for lntra-LATA calls? No Equal Access long distance for Inter-LATA calls? Yes, Type of canlral office switcher: Digital Is fiber currently in tho ground? Yes, Fiber used for: interoffice facilities/feeder distribution Is SS7 servme available? Yes, [s ISDN service available? Yes, Is T1-DS1 service available? Yes Is local cellular service available? Yes. Is local Interact service available? Yes Tax Structure Assessed value of property in city: $2,001,961,910 Tax rate per $1.000 assesses value: $29.56 Bonded indebtedness: City: $9,440~000 Bonded indebtedness: School: $.00 Bonded indebtedness capacity of community $87,328,000 Future indebtedness plans: $.00 I FELDERMAN AppRAISALS I I I I I I I I I I I I I I I I I Remarks: Greater Dubuque offers an array of financial incentive programs designed to promote grmvth and profitability while creating quality job opportunities for Dubuque area residents. These include the CEBA ~Conmmnhy Economic Betterment Account) Low-interest loans, EDSA (Econ. Development Set Aside) Loans and/or grants~ TIF(Tax increment Financing) and thc Iowa New Jobs Training program. In addition to these localty coordhmted incentives, the state of Iowa offers a proEtable business env~romnanL Iowa's single-factor, non-unila~y tax is based only on the total sales income within the state. Iowa allows 50 percem dcductibility of federal ~xes from Iowa corporate incmne tax. There is no property tax on new · ' of salable goodS, mw materials and goods in industrial nmchinery & equipment or corporate mvantones process. There is an sales or use tax on maclimurY, equipment and compnters used in or for manufacturing or certain commercial enterprises. Transportafion Services Air Service Tinxc in nurtures to nearest public an'Port: 5 Type of ranway: cancrctc Lcngd~ of mmvay: 6498 feet Unicom radio: Yes Instrument Landing system: Yes VOR: Yes Non-directional beacon: Yes Time in Minutes to nearest commemial air service: 5 City name: Dubuque Airiines serving point: Americm~ Eagle. Northwest Airlink. and United Express Remarks: Thc airport in Cedar Rapids is one hour and 10 minutes from Dubuque and offers commercial jet service through American Eagle, TWA, TWE, United Northwest, Northwest Aklink COMAIR, and U.S. Air Express Motor Carrier Narnber US highways serving city: 4 Number Imva highways serving city: 2 Time in n~mtes te nearest interstate interchange: 57 Interstate number: 1-80 Time in nimutes to nearest four lane highway :1 Highway number: U.S. 20, 61, 151 Number motor freight carders serving community: 13 Number of local terminals: 13 Number of lutrastate carriers: 13 Number o£Interstate cauriers: 13 Rail Service: Commmtity served by railroad: Yes Frequency of switching service: daily Piggyback ramp available locally: Yes Distance in miles to nearest piggyback service: 5 Nmnc of Ruilroad: Chicago, Central and Pacific; and I&M Rail Link Barge Service: City adjoins ~mvigablc river: Yes Barge dock available: Yes Channel Depth: 9.0 feet Lengfll of Season: 9 Months I I I FELDERMAN APPRAISAi,.~ Municipal Services Type of local government: Council/Manager/Ward; Mayor City zoning ordinance in effect: Yes County zoning ordinance in effect: Yes Subdivision ordinance with design standards in effect: Yes Number fitll time fire dcpartmem personnel: 90 Number voinnteer ftre department personnel: 0 Fke insurance class in city: 3 Fire insurance class outside city: 10 Number of full-time city police officers: 90 Industrial ~vastc pickup service: Yes Percnn~a~gc of city streets paved: 95% Commercial/Industrial Services Number of nmchine shops in community: 20 Number of tool/din shops in community: 9 Number of electric motor repair shops in community: 5 Daily Nexvspaper: Telegraph Herald Wecld¥ Newspaper: Dubuque Advertiser. Dubuque Leader Scatin~ capacity of largest banquet room: 1700 Is city served by cable TV?; Yes .. Number of motels/hotels: 18 To~al number of rooms available: 1337 Number of financial institutions in city: 14 Nun~ber affiliated wifl~ ba~k chain: 3 Number of company owned, national chain retail slores: 67 Chamber of Commerce: Yes Manager is full time: Yes Is community CEPP certfficd? Yes Remarks: Numerous City/Council demographic information available upon request. Education: School district: Dubuque Type No. Teachers Enrollment Grades Elementary 12 295 4721 K-6 Middle/Jr. High 3 200 1450 7-8 High School 3 215 3255 9-12 Private 10 225 3756 k-12 Commnnity College and Tmde/Tech schools: Northeast Iowa Community College in Peosta and Calmar, IA: Southwest Wisconsin Teclminal College in Funnimore, WI Four year college oF university: Clarke College; Divine Word Seminary; Enmaans Bible; Lores College; U of Dubuque; LI of Dubuque Theological Seminary; U. o1' Wisconsin-Platteville; Wartburg Theological Snndnary; I I I I I I I I I I I I I I I I I I I I FELDERF~AN AFPP~ISAL$ Additional Description: with Victorian charm. Dubuque is the £ffih largest city in the state of Iowa, Dubuque is a contemporat~ city mall town's warmth, friendliness and freedom from hassles. Situated in a beautiful, natural 3,et it features a s - ' location along thc Mississippi River. Dubuque is known for its steep 1-dlls and fiver bluffs, superior education, cultural events and manufacturing strength. Climate Average winter temperature: 19.4 degrees Average suuuner temperature: 70.2 degrees Average ammal rainfall: 32.9 inches Average annual snmvfalh 35.5 inches Cultural & Recreational Facilities Number of local facilities and fltose within I/2 hoar travel time: 15 public golf courses 24 public parks $ public tcnms courts 5 public swinmriug pools Number of Comttry Clubs available: 4 Public Access to lake or river?: Yes Activities allowed: Swimming: Yes Fisltiug: Yes Water Skiiug: Yes Motor Boating: Yes Cultural and hfformation Resources: Theatre: Yes Library: Yes Opera: Yes Museum: Yes Ballet: Yes Historic site: Yes Art GalleD': Yes Symphony: Yes Historical society: Yes Art council: Yes DubuqueFest, Dragon Boat Festival, RiverfesL Nat'l Farm Toy Show, Old House Enthusiast, Old House Tour. Brewfest, Dubuque Catfish Festival, Iowa Winter Games, Taste of Dubuque, Chfismms Candlewalk, Blues Fest, lazz Fest, Rose Festival, Music on rite March, and the Dubuque County Fair Attractions: Spirit of Dubuque Sightseeing and Dinner Cruises, Cable Car Square Shopping, Fenelon Place Elevator, Dubuque Diamond Jo Casino, Dubuque Greyhound Park & Casino, Dubuque Fighting Saints Hockey . . . . - ' Crystal Lake Cave, Sundown Motmtam Tcanh Mississippi River Muscurm Heritage Trail, MineS of Spare,.. Ski Arcn, Chesmut Mom~tain Ski ReSort, Dubuque Arboretum & Bommcal Gardens, Open Air Farmer's Market and the Dubuque Museum of Art FELDERMAN ApP?~ISALS I I I I I I I I I I I I I I I I Dcpcndcnt Cure Project Concern, Child Care Resources & Referral, 319-55%1628. Also Scenic Valley-Area Agency on Aging, Eldereach Program. 3505 Stoneman Rd. Dubuque 52002.319-588-3970 Hcalth Facilitics Number or Hospitals witifin one hour drive: 16 Total number of beds: i671 Tinge in minutcs to nearest facility: 0 Time in mmutcs to emergency medical treatment: 0 Is Air flight/EMT ambulance service available? Yes Number of clinics tn community? 14 Specialty of Clinic: OB/GYN, OncologY, Orthopedics, and PediaUics Number of Medical personnel in county: MD's: 177 Dentists: 55 DOs: 8 OCs: 22 Other: 2032 Remarks: "Other" medical personnel include Nurses, Thampists, PA's, podiatrists, and Pharmacists. Additional clinics in Dubuque inclu.de Internal Medicine, Family practice, Otolaryngology, Surgery, Opthamalogy and Urology Miscellaneous information Total number of religious congregations in city: 65 Protestant: 44 Catholic: 18 Jexvish: I Other'. 5 Active civic/industrial improvement programs: Dubuque continues to be a progressive community poised [or the future with a keen sense of its past. With the development of over 900 newly purchased acres of land intended for industrial development and technological industry, civic leaders, are encouraging businesses to take a look at Dubuque. With a nationally recognized workforce recnutmcnt campmg~x known as "Come back to your Future, Conic Home to Dubuque", commnnity leaders are targeting former residents of the area and asking them to reconsider Dubuque and move back to enjoy anw opportunities mid the same quality of life that Dubuque has always offered. Residents of the Greater Dubuque area have always been knnwn for their [riendhness, their loyalty and hard work. An integral part of the plans for futureto live and development include a preservation of the very quality of life that make Dubuque a great place xvork. Average cost of construction for housing: $110 square feet Note: [rd'ormation obtained from thc Dubuque Chamber of Commerce Homepage. I