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Property Acquisition - Colts Building, 1101 Central Avenue
Copyright 2014 City of Dubuque Consent Items # 17. ITEM TITLE: Property Acquisition - Colts Building, 1101 Central Avenue SUMMARY: City Manager recommending approval of a resolution authorizing the purchase of 1101 Central Avenue for the appraised value and accept the deed for the property owned by Legionnaires Drum & Bugle Corps Inc. DBA Colts Drum & Bugle Corps. RESOLUTION Approving the acquisition of real estate owned by Legionnaires Drum & Bugle Corps, Inc. D/B/A Colts Drum & Bugle Corps located at 1101 Central Avenue in the City of Dubuque SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Purchase of 1101 Central-MVM Memo City Manager Memo Colts Acceptance Memo Staff Memo Resolution to Authorize Purchase Resolutions Offer to Buy and Acceptance 6 3 16 Supporting Documentation Appraisal - Pages 1-217 Supporting Documentation Appraisal - Pages 218-236 Supporting Documentation Appraisal - Pages 306-369 Supporting Documentation Appraisal - Pages 237-305 Supporting Documentation Use of Space Memo Supporting Documentation Building Assessment- Selser Schaefer Supporting Documentation Building Assessment- Todd Carr Supporting Documentation MFC 2015 Annual Report Supporting Documentation THE CITY OF Dubuque U E I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Approval of the Resolution to Authorize the Purchase of 1101 Central Avenue and Accept the Deed (Colts Community Center) DATE: June 1, 2016 Leisure Services Manager Marie Ware requests City Council approval of the purchase of 1101 Central Avenue for the appraised value of $443,000 for the property owned by Legionnaires Drum & Bugle Corps Inc. DBA Colts Drum & Bugle Corps. The 10,079 square foot building, better known as the Colts Community Center, is next to the 6,600 square foot Multicultural Family Center in the Ruby Sutton Building. Jeff MacFarlane, Executive Director of the Colts Youth Organization approached the City regarding the City's interest in the Colts building located at 1101 Central Avenue. The Multicultural Family Center has long ago outgrown the current space in the adjoining building. Selser Schaefer Architects had previously been engaged for architectural contract services for renovation of the second floor of the current Multicultural Family Center. The second floor has approximately 2,400 square feet. This work began in 2014 when the city had budgeted $1,400,000 for the Renovation Project. The balance available in the City budget is $1,341,604. The Human Rights Department was to move to the second floor from the City Hall Annex building, as well as the administrative offices for Multicultural Family Center staff would have moved from the first floor to the second floor. This would have allowed renovation of several areas on the main floor to accommodate the ever growing programming of the Center. The work on this project had been stopped in late 2014 and the funds initially targeted for the Multicultural Family Center project were then held as additional contingency funding for the City's Intermodal Transportation Center Project and the Bus Storage Facility Project. Both of these two projects were tied to grant agreements with the Federal Transit Administration and therefore had to be funded and completed by the City. The reprioritization of the funds resulted in the design of the Multicultural Family Center project being put on hold until at least July of 2016. After the recent approach by Jeff MacFarlane of the Colts Youth organization, Leisure Services Manager Marie Ware met with Multicultural Family Center Director Farris Muhammad and Assistant Director Sarah Peterson to identify a listing of potential uses of the Colts building. They all agreed the Colts' space would allow a greater variety of programming, as well as more space for events currently being held. The current building is quite often at capacity with the three rooms all full and a small group meeting in what used to be the AmeriCorps room. Jeff MacFarlane shared that Thomas Kane of Kane Appraisal Services completed an appraisal dated November 19, 2010. The appraisal had an opinion that the market value of the property was $410,000. Robert Felderman of Felderman Appraisals was commissioned to do an appraisal for the City. Based upon the analysis contained in his report dated May 9, 2016, the market value for the subject property is $443,000. Selser Schaefer Architects was hired to look at the Colts building and how the potential uses might be accommodated. To accommodate the Human Rights Department and renovate the interior and exterior of the Colts building the cost opinion at a conceptual level is $1 ,109,000. The concept provided is just one concept and could be reworked in numerous ways. This concept means the second floor of the Ruby Sutton Building would not be renovated at this time, using the money to create more Multicultural Family Center programmable space and accommodating the Human Rights Department in the Colts Building. Building Services Manager Todd Carr completed a building assessment of the Colts building. Todd's conclusion was that the exterior is in sound condition and above average and well built. The interior of the building would need to be completely renovated. The annual operating cost is estimated at $21 ,258. Project Manager Steve Brown reports that the Intermodal Transportation Center project is very close to close out and requires no additional funds. Currently the Bus Storage Facility is nearing the end of preliminary design. The project is targeted to be bid out in the fall of 2016. The consultant's current projected project budget shows all revenues and expenses being balanced with a 5% contingency available as a part of that budget. Typically it is best to bid projects with a 10% contingency. This is about a $250,000 difference. After acquisition of the Colts Building, there would be just over $875,000 available for this purpose and future renovation of the Colts Building. This timeframe would mean the renovation of the Colts Building, should it be acquired, would likely not start until mid to later 2017 when all costs are known and the Bus Storage Facility project is near completion. This is needed to assure that the grant funded projects that have been committed to can be completed. The Ruby Sutton Building and the Colts building are separated by just a couple foot gap between the buildings making connecting the two buildings possible. The current 2 Multicultural Family Center first floor is about 6,600 square foot. The second floor of the Ruby Sutton Building that would have been renovated would be approximately 2,400 additional square foot for a total of 9,000 square foot. The Colts building is approximately 10,079 square foot, for a total of 16,679 square feet, with the possibility of adding the 2,400 square feet on the second floor in the future. The Colts building can be completely opened up. There are structural posts that support a beam running down the middle of the building from front to back with posts on 16' 6" centers. This means there is maximum flexibility in planning any type of arrangement and layout in the building. This also means that it would not have to be 100% renovated at this time. Based on funding only a portion of the Colts building could be renovated with additional square footage renovated as funds become available or programs grow and need additional space. Budget Director Jenny Larson advised that the funds available for the purchase of the property would require a reallocation of bond proceeds. The bonds were issued for the renovation of the second floor of the Multicultural Family Center. Subsequently at the June 20th City Council meeting there would be a public hearing and a City Council vote on a resolution to reallocate bond proceeds for the purchase of the property. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Marie Ware, Leisure Services Manager Farris Muhammad, Multicultural Family Center Director John Stewart, Chairperson, Multicultural Family Center Board of Directors 3 THE CITY OF Dubuque All-America City � 1 1 Masterpiece on the Mississippi 2007•2012 •2013 TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager SUBJECT: Approval of the Resolution to Authorize the Purchase of 1101 Central Avenue and Accept the Deed (Colts Community Center) DATE: May 29, 2016 INTRODUCTION The purpose of this memorandum is request approval of the resolution to authorize the purchase of 110 1 Central Avenue and accept the deed for the property owned by Legionnaires Drum & Bugle Corps Inc. DBA Colts Drum & Bugle Corps. The property better known as the Colts Community Center is located at 1101 Central which is next to the Multicultural Family Center (MFC) in the Ruby Sutton Building. BACKGROUND The Offer: Jeff MacFarlane, Executive Director of the Colts Youth Organization approached Assistant City Manager Teri Goodman and Economic Development Director Maurice Jones regarding the city's interest in the Colts building located at 1101 Central Avenue. Subsequent to the discussion the Colts put an offer contingent upon the sale of this property that has a deadline of June 4, 2016. Jeff MacFarlane reported "The contingency of our offer on the other building is that we sell our building by June 4th, or provide written proof that we are financially able to perform on the purchase of the other property." Possible Uses of Space: After discussing this offer, you requested that I meet with Multicultural Family Center Director Farris Muhammad and Assistant Director Sarah Peterson and bring forward a listing of potential use(s) of the Colts building. The question was if the space was available how the space would be used and would it be useful. The memorandum addressing those questions is attached. Appraisal: At the same time you requested I ask Jeff MacFarlane if the city could do an appraisal of the building and schedule that appraisal to be completed. Felderman Appraisals was contracted to do the appraisal due to his expertise in commercial property. The Colts building is approximately 10,079 square feet. In asking Jeff MacFarlane permission to perform the appraisal, Jeff shared that in 2010 the Colts had done an appraisal. It was an Appraisal of Market Value of the property prepared by Thomas Kane of Kane Appraisal Services completed November 19, 2010. The appraisal had an opinion that the market value of the fee simple interest in the property was $410,000. This appraisal was provided by Jeff McFarlane and shared with Felderman Appraisals with the Colts permission. Robert Felderman of Felderman Appraisals completed the appraisal for the Colts Building located at 1101 Central Avenue. Based upon the analysis contained in his report the market value for the subject property fee simple estate is $443,000. The full appraisal is attached. Architectural Concept and Analysis of Colts Building: A contract was requested to engage Selser Schaefer Architects to look at the Colts building and how the potential uses might be accommodated. The building assessment was to include conceptual planning based upon the potential uses from the above referenced memo as well as take in to account the renovations that were conceptually planned for Phase 11 of the Ruby Sutton Building renovation. They were asked to prepare square foot based cost opinion for the proposed layout and building improvements. This was to include how the Human Rights Department would fit in to the concepts as well. It was also look at the costs of the Colts building versus the renovation of the second floor which would require an elevator which comes at a substantial cost for the square foot gained on the second floor. As you review the cost opinion you will see that to accommodate the Human Rights Department and renovate the interior and exterior of the Colts building the cost opinion at a conceptual level is $1 ,109,000. The concept provided is just one concept and could be reworked in numerous ways. What is shown is just one possible concept and square footage comparisons. This concept means the second floor of the Ruby Sutton Building would not be renovated at this time taking away the immediate need for an elevator and using the money to create more programmable space yet accommodating Human Rights Department and MFC programming. 2014 CIP 360-1976 Multicultural Family Center (MFC) Phase II Renovation Project: Selser Schaefer Architects had prior been engaged for architectural contract services for renovation of the second floor of the current Multicultural Family Center. The second floor has approximately 2400 square feet as it does not run the full length of the Ruby Sutton building. They began this work in 2014 when the city had budgeted $1 ,400,000 2 for the Phase II Renovation Project (CIP 360-1976). The work was to renovate the second floor which was never touched in the Phase I which established the MFC first floor (approximately 6600 square feet) that we use today. The Human Rights Department was to move to the second floor as well as the administrative offices for MFC staff. This would allow renovation of several areas on the main floor to accommodate the ever growing programming of the Center. The work on this project had been stopped in the late fall of 2014 as the city's new financial advisor, Independent Public Advisors, LLC, reviewed the work of the former bond advisor, Piper Jaffrey, and determined that the borrowing capacity Piper Jaffrey identified for the Downtown urban Renewal District was greater than what was actually available. The impact of the State of Iowa property tax reform was also significant. The lower borrowing capacity resulted in reprioritization of funding from some of the city's then active capital construction projects. The funds initially targeted for the Multicultural Family Center project were then held as additional contingency funding for the City's Intermodal Transportation Center Project and the Bus Storage Facility Project. Both of these two projects were tied to grant agreements with the Federal Transit Administration and therefore had to be funded and completed by the City. The reprioritization of the funds resulted in the design of the Multicultural Family Center project being put on hold until at least July of 2016. The conceptual work was near completed which provided probably costs by late 2014. At that time the probable costs for building construction and sidewalk and fagade improvements was approximately $1 ,125,000. This work generally included an elevator to the second floor, dumb waiter to the basement, complete renovation of the second floor and reworking the large multipurpose room area and reception for the Center. Caution should be used with this number as the planning was stopped at the conceptual stage that was not totally vetted. An underground storage tank was removed at the Ruby Sutton Building in the past year that was a known factor. Budget Available When Project Released to Restart: Currently the CIP 360-1976 shows an encumbrance of$99,501 which is for the architectural services put on hold with Selser Schaefer Architects. The balance is $1 ,257,910.96 and $7,434 from CIP 102-1976. There is an additional $76,259 that has been allocated from CDBG (CIP 260-1976) that was going to be used for the elevator to the second floor to access the Human Rights offices. This means the total available is $1 ,341 ,603.96 not including the encumbrance above. Status of Intermodal Transportation Center and Bus Storage Facility Projects: Project Manager Steve Brown shared that the Intermodal Transportation Center project is very close to close out and requires no additional funds. There may be a small carryover to the Bus Storage Facility but the exact number is not known yet as the project close out has yet to be completed. Currently the Bus Storage Facility is nearing the end of preliminary design. The project design has been sent to Region 7 of the EPA for review. Depending upon the EPA timeframe to review, Steve shared that the project is targeted to be bid out in the fall of 2016. It is then hoped that the project would be 3 complete between the spring and Labor Day of 2017. The consultant's current projected project budget shows all revenues and expenses being balanced with a 5% contingency available as a part of that budget. Steve shared that typically it is best to bid projects with a 10% contingency. This is about a $250,000 difference. Since the EPA review could change the budget this was the best estimates he could give at this time of budget and timeframe. This timeframe would mean the renovation of the Multicultural Family Center whether the original project or renovation of the Colts building would likely not start until mid to later 2017 when all costs are known and the Bus Storage Facility project is near completion. This is needed to assure that the grant funded projects that have been committed to can be completed. Building Assessment by the Building Department: Additionally the City Manager requested Building Services Manager Todd Carr complete a building assessment of the Colts building located at 1101 Central Avenue. Todd and I toured the building and discussed many aspects of the infrastructure with Executive Director Jeff MacFarlane. The white rubber membrane roof was replaced in 2013 and has a 15 year transferrable warranty. The gutters were installed during the roofing project. The exterior brick walls and stone areas are in above average condition and would be on a five-year inspection and repair cycle for routine maintenance. The entry way doors and windows are in below average condition and would need to be replaced. This replacement could assist in reducing utility costs. Selser Schaefer took this in to account in their estimates. Todd recommends an inspection of an old fill tube line on the 11th Street side to identify what it was used for, any leaks and condition of the tanks. Todd also inspected the rooftop furnace which was installed around 2002. There is also an air conditioning unit for the offices that would need to be replaced as it is in poor condition. This would need to be on a replacement schedule or during renovations replaced dependent upon uses of the building. He recommended replacement of the HVAC systems which would be done during a renovation. These items was discussed with Selser Schaefer. The interior of the building would likely be totally gutted in a renovation. The restrooms are in need of a total renovation to meet today's standards. The electrical service is in above average condition and should be sufficient for any renovations to be completed. An operating cost to consider would be utilities for the building. Currently the Colts pay on a monthly average bill. Jeff shared that the averages are as follows: Alliant Energy Electric $ 1152.99 Black Hills Energy Gas $ 477.17 City of Dubuque Utility Bill $ 127.37 Storm Water Fee 14.00 Total $ 1771 .53 This would mean the average yearly utility bill for the building is about $21 ,258.36. 4 Todd's conclusion was that the exterior is in sound condition and above average and well build. The interior of the building would need to be completely renovated. Todd's full assessment is attached for your review. DISCUSSION As you are aware in conversations over the past year, I have expressed concern that the renovation of the MFC as we had envisioned in 2014 really would be "shoe horning" the programs in to a space that we would outgrow very soon. The programming of the last year at the MFC has increased and attendance has increased dramatically at events that the Center has sponsored. Additionally the collaborations and partnerships with various cultural groups continues to grow. Recently Director Farris Muhammad shared the 2015 Annual Report for the MFC with the City Council. The Center has and continues to pursue their mission of"building unity out of diversity." The Annual Report shows how many ways they have been doing this activity. As I listen to conversations of the Multicultural Family Center Board and Farris as the new Director discussing and researching new avenues for the other part of their mission "empowering all families and community members of Dubuque to reach their potential" I can easily see how the Center will outgrow its current spaces. The 2015 Annual Report is attached. There have been numerous times in the past year when the staff has put groups to meet in an area that used to be office space so that they could accommodate one more group on an evening. The programs like "Taste of ..." fill the Center to its fire rated capacity. The relationships that have been built with cultural groups such as NAACP, LULAC, LGBT +, Transracial Adoption group and more means more people coming to the center to meet and plan additional activities and outreach in our community. This shows just a small portion of the variety of cultural groups the MFC has relationships with. You had shared information recently regarding demographics in America in 2050. The demographics really show how the work of the MFC will be so important to the success of Dubuque in its future. This is the excerpt of your 5-7-2016 email. "http://www.businessinsider.com/demographics-in-america-in-2050-2012- 107op=1 Pay particular attention to Figure #19 (and the "mega-regions" map that immediately follows). By 2050 the United States working age population will be: White - 45% (down from 689,o) Hispanic - 31% (up from 149,o) Black- 14% (up from 129,o) Asian - 10% (up from 59,o) 5 Dubuque is not in a mega-region, making our fight for workforce all the more challenging. What will Dubuque have to offer: 1. Quality of Life (a viable, livable and equitable community in a beautiful setting) - if we keep working at it. 2. Quality education at all levels. 3. Quality health care. 4. Jobs in a diversified economy. Our big issue is that Dubuque's workforce challenges will not wait until 2050. It has already arrived." The Ruby Sutton Building and the Colts building are just separated by a couple feet gap between the buildings making connecting the two buildings possible. The current MFC first floor is about 6600 square foot. The second floor that could be renovated would be approximately 2400 additional square foot for a total of 9000 square foot. The Colts building is approximately 10,079 square foot. On the concept plan provided by Selser Schaefer the living room front gathering space of the current Center is approximately 1200 square feet and is shown with a large X. It is used often for programming as well as for drop-ins to the Center. An area was carved out of the Colts building that shows 825 square foot rectangle shaped meeting/program space is shown with a large X. It is shown that with movable partitions this could be four rooms of 825 square foot each or 1650 square foot with two together or for a large gathering 3300 square foot. This would accommodate more groups and programming with additional meeting spaces and amenities. The Colts building can be completely opened up. There are structural posts that support a beam running down the middle of the building from front to back with posts on 16' 6" centers. This means there is maximum flexibility in planning any type of arrangement and layout in the building. This also means that it would not have to be 100% renovated at this time. Based on funding only a portion of the Colts building could be renovated with additional square footage renovated as funds become available or programs grow and need additional space. This option would allow us to consider the purchase of the building and use the remaining funds for renovation of part of the Colts building and keep the project within the current budget. It also adds significant square footage. 6 Summary: Conceptual cost in 2014 of renovation of 2nd floor of Sutton building $1 ,125,000.00 Renovation of some areas of 1 sc floor Adds 2400 square feet Or Felderman appraisal for purchase $ 443,000.00 Selser Schaefer probable cost for entire Colts building $1 ,109,000.00 and renovation of Sutton building 1 sc floor including Human Rights offices, no work on 2nd floor of Ruby Sutton Building Adds 10,079 square feet Or Felderman appraisal for purchase $ 443,000.00 Selser Schaefer probable cost for renovation of part of the Colts $ 788,000.00 building, not completing Human Rights Offices at this time, limited renovation of Ruby Sutton building 1 sc floor, no work on 2nd floor of Ruby Sutton building Total CIP available for purchase and renovation $1 ,341 ,603.96 Architectural services already encumbered Please understand all of these are conceptual level numbers except the appraisal. There is several things called out in the assessments that would need to be considered as a part of renovations of either project but this gives general numbers for consideration. BUDGETIMPACT: The funding is available through CIP 360-1976 Multicultural Family Center (MFC) Phase II Renovation Project approved as a part of FY 2014 budget. The details are shared above in the background section labeled as such. Budget Director Jenny Larson advised that the funds available for the purchase of the property would require a reallocation of bond proceeds. The process would be to set a public hearing which can be done at the same meeting as approval of the Offer to Buy. Subsequently at the June 20th Council meeting there would be a public hearing and a city council vote on a resolution to reallocate of bond proceeds for the purchase of the property. The bonds were issued for the renovation of the second floor of the Multicultural Family Center. 7 ACTION REQUESTED I respectfully request City Council approval of the resolution to authorize the purchase of 1101 Central Avenue and accept the deed. Cc: Jenny Larson, Budget Director Todd Carr, Building Services Manager Kelly Larson, Human Rights Director Attachments: Signed Offer to Buy and Acceptance Resolution to Authorize Purchase and Accept the Deed Potential Use of Space Memo Appraisal of 1101 Central Avenue 1101 Central Avenue Building Assessment by Selser Schaefer (architectural) Building Assessment by Todd Carr (structural and operational) 2015 Multicultural Family Center Annual Report 8 RESOLUTION NO. 208-16 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY LEGIONNAIRES DRUM & BUGLE CORPS INC. D/B/A COLTS DRUM & BUGLE CORPS LOCATED AT 1101 CENTRAL AVENUE, IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain real estate located at 1101 Central Avenue, which is adjacent to the Multicultural Family Center located in the Ruby Sutton Building at 1157 Central Avenue and legally described as: South 2/5th of Lot 447 in the City of Dubuque, Iowa, according to the United States Commissioners' Map of the Town of Dubuque, Iowa ; and Whereas, acquiring the certain real estate would allow for expansion of the Multicultural Family Center; and Whereas, an Offer to Buy has been finalized with Legionnaires Drum & Bugle Corps Inc. d/b/a/ Colts Drum & Bugle Corps. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City Council of the City of Dubuque, Iowa hereby approves the acquisition of the real estate located at 1101 Central Avenue at the cost of Four Hundred Forty -Three Thousand Dollars ($443,000.00). Section 2. That the City Council of the City of Dubuque, Iowa hereby approves the Offer to Buy Real Estate and Acceptance attached hereto subject to review of the updated abstracts and title opinions by the City Attorney's Office. Section 3. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owner, conveying the owner's interest to the City of Dubuque, Iowa for the herein described real estate. Section 4. That the City Clerk be and is hereby authorized and directed to cause said Warranty Deed to be recorded in the office of the Dubuque County Recorder, together with a certified copy of this Resolution. Passed, approved and adopted this 6th day ofJun 2016. Jon Ric es, r'ayor Pro=Tem Attest: IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII III Doc ID: 008575990001 Type: GEN Kind: RELEASE OF MORTGAGE Recorded: 01/05/2017 at 02:58:48 PM Fee Amt: $7.00 Page 1 of 1 Dubuque County Iowa John Murphy Recorder Fi1e2017--00000298 Prepared By: Teresa Sheredy, DuTrac Community Credit Union, 3465 Asbury Rd., Dubuque, IA 52004-3250, (800) 475-1331 Return To: DuTrac Community Credit Union, Attention: Business Loan Dept, 3465 Asbury Rd., Dubuque, IA 52004-3250 RELEASE OF MORTGAGE The undersigned, the present owner of the Mortgage dated 12-28-2010 executed by Legionnaires Drum & Bugle Corps, Inc. d/b/a Colts Drum & Bugle Corps, legally known as LEGION -AIRES DRUM AND BUGLE CORPS ("Mortgagor") to DuTrac Community Credit Union ("Mortgagee") recorded in the records of the Officer of the Recorder of the County of Dubuque, State of Iowa, as Instrument No. _2011- 00000415, does hereby warrant and certify that said Mortgage has boon paid in full and is hereby released this 30th day of December, 2016. DUTRAC COMMUNITY CREDIT UNION Ron Kinsella, enror Vice President of Lending STATE OF Wv\ COUNTY OF W4-ii01.r'lA..‘C On this SJR day of,_ '. , 2 0 , before me, the undersigned, a Notary Public in and for said County , I1 `/: and State, personally appeared Q J . tf A. e.,,IACt , to me personally known, who being by me duly sworn, did say that hef.sKis the of DuTrac Community Credit Union; that (no seal has been procured by the said corporation;rr�that said Instrument was signed on behalf of said corporation by authority of its Board of Directors; and that mal�-�t.1ks Ok_ as such officer, acknowledged the execution of said instrument to be the voluntary act and deed of said corporation by it and by them voluntarily executed. Notary Public: 646 My commission expires: Commission Num er 780 M} Comm. Exp. +�'t� t �u Ct �� Ctvr1C 11 11 11 11 111 11 11 11 11 11 11 11 11 Doc ID: 008576000001 Type: GEN Kind: RELEASE OF ASSIGNMENT OF RENTS Recorded: 01/05/2017 at 03:00:34 PM Fee Amt: $7.00 Page 1 of 1 Dubuque County Iowa John Murphy Recorder File2017-00000299 Prepared [3v: Teresa Sheredy, DuTrac Community Credit Union, 3465 Asbury Rd., Dubuque, IA 52004-3250, (800) 475-1331 Return To: DuTrac Community Credit Union, Attention: Business Loan Dept., 3465 Asbury Rd., Dubuque, IA 52004-3250 RELEASE OF ASSIGNMENT OF RENTS The undersigned, the present owner of the Assignment of Rents dated 12-28-2010 executed by Legionnaires Drum & Bugle Corps, Inc, d/b/a Colts Drum & Bugle Corps, legally known as LEGION -AIRES DRUM AND BUGLE CORPS ("Mortgago() to DuTrac Community Credit Union ("Mortgagee") recorded in the records of the Officer of the Recorder of the County of Dubuque, State of Iowa, as Instrument No. 2011-00000416, does hereby warrant and certify that said Assignment of Rents has been paid in full and is hereby released this 30th day of December, 2016. DUTRAC COMMUNITY CREDIT UNION By: Ron Kinsella, S nior Vice President of Lending STATE OF . 3 CL13°. COUNTY OF 't).ACti s ..kNQ.. 02_0,......cit On this '304 , day of , AkkAiX1r. ,, 2 Ok,UZ, , before me, the undersigned, a Notary Public in and for said County and State, persona..k l! appeared , ,Old ,..S ' ‘(,.,kkitSQ...1A Ck , to me personally known, who being by me duly sworn, i did say that he/ is the \is, ,(') t242)VlaiOrl-- of DuTrac Community Credit Union; that (no seal has been procured the said) corporation; that s'aid instrument was signed on behalf of said corporation by authority of its Board of Directors: and that k(,(WO,A.0 , es such officer, acknowledged the execution of said instrument to be the voluntary act and deed of said corporation by it and by them voluntarily executed. Notary Public: My commission expires: IKRIS,,;.• TY ANN BERRY 7- Commission Number 778021K My Comm. Exp. L4-47- (-I CA -k3 CAQ-K, pj —7°° THE CITY OF E MEMORANDUM Masterpiece on the Mississippi BARRY LINDAHL SENIOR COUNSEL To: Trish Gleason Assistant City Clerk DATE: February 6, 2017 RE: Legionnaires (Colts) Drum & Bugle Corps, Inc. — Correction Warranty Deed Trish, attached for your file is the original recorded Correction Warranty Deed regarding the above -referenced subject. We will retain a copy in our files. Thank you. BAL:tls Attachment Cc: Marie Ware, Leisure Services Manager F:\Users\tsteckle\Lindahl\Colts Community Center Offer To Purchase Bldg\Closing\Gleason_ CorrectionWarrantyDeed_020617.doc OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org 'q� CORRECTION T % WARRANTY DEED (CORPORATE/BUSINESS ENTITY GRANTOR) THE IOWA STATE BAR ASSOCIATION Official Form No. 335 Recorder's Cover Sheet 11 11 11 uAi i 11 11 Doc ID 008584690002 Type: GEN Kind: CORRECTION DEED Recorded: 01/24/2017 at 03:13:19 PM Fee Amt: $17.00 Page 1 of 2 Revenue Tax: $0.00 Dubuque County Iowa John Murphy Recorder Fi1e2017-00001059 Preparer Information: (Name, address and phone number) Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, Iowa 52001 (563) 583-4113 Taxpayer Information: (Name and complete address) City of Dubuque, Iowa, 50 West 13th Street, Dubuque, Iowa 52001 Return Document To: (Name and complete address) Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, Iowa 52001 Grantors: Legionnaires Drum & Bugle Corps, Inc. dba Colts Drum & Bugle Corps. a/k/a Legion -Aires Drum and Bugle Corps Grantees: City of Dubuque, Iowa Legal description: Document or instrument number of previously recorded documents: o The Iowa State Bar Association 2016 IOWADOCS® CIt� cl .Eg CORRECTION WARRANTY DEED (CORPORATEBUSINESS ENTITY GRANTOR) For the consideration of valuable consideration, a(n) the laws of one Dollar(s) and other Legionnaires Drum & Bugle Corps, Inc. dba Colts Drum & Bugle Corps Nonprofit Corporation organized and existing under Iowa does hereby Convey to the City of Dubuque, Iowa the following described real estate in Dubuque County, Iowa: The South 2/5 of Lot 447 in the City of Dubuque, Iowa, according to the United States Commissioners' Map of the Town of Dubuque, Iowa This Correction Warranty Deed is for the purpose of correcting the Grantor's name. Original Warranty Deed was recorded January 5, 2017 as Instrument no. 2017-00000300. Legionnaires Drum & Bugle Corps, Inc. dba Colts Drum & Bugle Corps, is also known as Legion -Aires Drum and Bugle Corps. The correct legal name of the Grantor is Legion -Aires Drum and Bugle Corps, although from time to time the Grantor has been known or referred to by the alternate names set forth hereinabove. The grantor hereby covenants with grantees, and successors in interest, that it holds the real estate by title in fee simple; that it has good and lawful authority to sell and convey the real estate; that the real estate is free and clear of all liens and encumbrances, except as may be above stated; and it covenants to Warrant and Defend the real estate against the lawful claims of all persons, except as may be above stated. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, according to the context. Dated on I . I7. /7 Legionnaires Drum & Bugle Corps, Inc. dba Colts Drum & Bugle Corps , a(n) Iowa Nonprofit Corporation By Jeff Mac arlane, Executive Director By STATE OF IOWA , COUNTY OF Iubuque This record was acknowledged before me on�t ! , t (�i, ,Q0/1 , by Jeff MacFarlane as Executive Director of Legionnaires Drum & Bugle Corps, Inc. dba Colts Drum & Bugle Cps © The Iowa State Bar Association 2016 IowaDocs®O JOY R,°!. BIRD Commission Number 714682 My Commission Expires Lk, d atlli.re of Notary Public Form No. 335, Warranty Deed - Corporation/Business Entity Grantor Revised April 2016 11 V 11 11 11 11 11 11 11 Doc ID 008576010005 Type: GEN Kind: DEED WITH RESOLUTION Recorded: 01/05/2017 at 03:02:24 PM Fee Amt: $740.00 Pape 1 of 5 Revenue Tax: $708.00 Dubuque County Iowa John Murphy Recorder F11e2017-00000300 WARRANTY DEED (CORPORATE/BUSINESS ENTITY GRANTOR) THE IOWA STATE BAR ASSOCIATION Official Form No. 335 Recorder's Cover Sheet Preparer Information: (Name, address and phone number) Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, Iowa 52001 (563) 583-4113 Taxpayer Information: (Name and complete address) City of Dubuque, Iowa, 50 West 13th Street, Dubuque, Iowa 52001 Return Document To: (Name and complete address) Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, Iowa 52001 Grantors: Grantees: Legion -Aires Drum and Bugle Corps City of Dubuque, Iowa Legal description: Document or instrument number of previously recorded documents: © The Iowa State Bar Association 2016 IOWADOCSO 5OO C . -j -1°0 WARRANTY DEED (CORPORATEBUSINESS ENTITY GRANTOR) For the consideration of valuable consideration, a(n) the laws of one Dollar(s) and other Legion -Aires Drum and Bugle Corps Nonprofit Corporation organized and existing under Iowa does hereby Convey to the City of Dubuque, Iowa the following described real estate in Dubuque County, Iowa: The South 2/5 of Lot 447 in the City of Dubuque, Iowa, according to the United States Commissioners' Map of the Town of Dubuque, Iowa The grantor hereby covenants with grantees, and successors in interest, that it holds the real estate by title in fee simple; that it has good and lawful authority to sell and convey the real estate; that the real estate is free and clear of all liens and encumbrances, except as may be above stated; and it covenants to Warrant and Defend the real estate against the lawful claims of all persons, except as may be above stated. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, according to the context. Dated on 11.2r P6, Legion -Aires Drum and Bugle Corps (K; J�ef MacFarlane, Executive Director By a(n) Iowa Nonprofit Corporation STATE OF IOWA , COUNTY OF Dubuque Zaf6 This record was acknowledged before me on Atevr B,,/L , by Jeff MacFarlane as Executive Director of Legion -Aires Drum and Bugle Corps JEFFREY A. TRANNEL Commission Num4r 15239 Fay Comm. Exp, U/ 7 © The Iowa State Bar Association 2016 IowaDocs© otary Public Form No. 335, Warranty Deed - Corporation/Business Entity Grantor Revised April 2016 RESOLUTION NO. 208-16 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY LEGIONNAIRES DRUM & BUGLE CORPS INC. D/B/A COLTS DRUM & BUGLE CORPS LOCATED AT 1101 CENTRAL AVENUE, IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain real estate located at 1101 Central Avenue, which is adjacent to the Multicultural Family Center located in the Ruby Sutton Building at 1157 Central Avenue and legally described as: South 2/5th of Lot 447 in the City of Dubuque, Iowa, according to the United States Commissioners' Map of the Town of Dubuque, Iowa ; and Whereas, acquiring the certain real estate would allow for expansion of the Multicultural Family Center; and Whereas, an Offer to Buy has been finalized with Legionnaires Drum & Bugle Corps Inc. d/b/a/ Colts Drum & Bugle Corps. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City Council of the City of Dubuque, Iowa hereby approves the acquisition of the real estate located at 1101 Central Avenue at the cost of Four Hundred Forty -Three Thousand Dollars ($443,000.00). Section 2. That the City Council of the City of Dubuque, Iowa hereby approves the Offer to Buy Real Estate and Acceptance attached hereto subject to review of the updated abstracts and title opinions by the City Attorney's Office. Section 3. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owner, conveying the owner's interest to the City of Dubuque, Iowa for the herein described real estate. Section 4. That the City Clerk be and is hereby authorized and directed to cause said Warranty Deed to be recorded in the office of the Dubuque County Recorder, together with a certified copy of this Resolution. Passed, approved and adopted this 6th day of Jun- 2016. Ric Jones, `-yor Pro m Attest: Kevin Firnstahl, City(G1rk STATE OF IOWA CERTIFICATE of the CITY CLERK ) ) SS: COUNTY OF DUBUQUE ) I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 208-16 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 22nd day of Decemeber, 2016. , Kevin. irnstahl, C *` City Clerk , i II Y NI 11 n V r Doc ID: 008576020002 Type GWH Kind: GROUNDWATER HAZARD Recorded: 01/05/2017 at 03:02:49 PM Fee Amt: $0.00 Page 1 of 2 Dubuque County Iowa John Murphy Recorder F11e2017-00000033 REAL ESTATE TRANSFER - GROUNDWATER HAZARD STATEMENT TO BE COMPLETED BY TRANSFEROR TRANSFEROR: Name Legion -Aires Drum and Bugle Corps Address 2300 Twin Valley Drive Dubuque Iowa 52001 Number and Street or RR City, Town or P.O. State Zip TRANSFEREE: Name City of Dubuque, Iowa Address 50 W. 13th Street Dubuque Iowa 52001 Number and Street or RR City, Town or P.O. State Zip Address of Property Transferred: 1101 Central Avenue Dubuque Iowa 52001 Number and Street or RR City, Town or P.O. State Zip Legal Description of Property: (Attach if necessary) The South 2/5 of Lot 447 in the City of Dubuque, Iowa, according to the United States Commissioners' Map of the Town of Dubuque. Iowa 1. WpIlefieck one) There are no known wells situated on this property. There is a well or wells situated on this property. The type(s), location(s) and legal status are stated below or set forth on an attached separate sheet, as necessary. 2. Solid ante Disposal (check one) here is no known solid waste disposal site on this property. There is a solid waste disposal site on this property and information related thereto is provided in Attachment #1, attached to this document. 3. Hazardous Wastes (check one) ,There is no known hazardous waste on this property. _ There is hazardous waste on this property and information related thereto is provided in Attachment #1, attached to this document. 4. Under r and Storage Tanks (check one) ere are no known underground storage tanks on this property. (Note exclusions such as small farm and residential motor fuel tanks, most heating oil tanks, cisterns and septic tanks, in instructions.) _ There is an underground storage tank on this property. The type(s), size(s) and any known substance(s) contained are listed below or on an attached separate sheet, as necessary. FILE WITH RECORDER DNR form 542-0960 (July 18, 2012) 5. Priv Burial Site (check one) There are no known private burial sites on this property. _ There is a private burial site on this property. The location(s) of the site(s) and known identifying information of the decedent(s) is stated below or on an attached separate sheet, as neces ary. 6. Privat ewage Disposal System (check one) II buildings on this property are served by a public or semi-public sewage disposal system. _ This transaction does not involve the transfer of any building which has or is required by law to have a sewage disposal system. _ There is a building served by private sewage disposal system on this property or a building without any lawful sewage disposal system. A certified inspector's report is attached which documents the condition of the private sewage disposal system and whether any modifications are required to conform to standards adopted by the Department of Natural Resources. A certified inspection report must be accompanied by this form when recording. There is abuilding served by private sewage disposal system on this property. Weather or other temporary physical conditions prevent the certified inspection of the private sewage disposal system from being conducted. The buyer has executed a binding acknowledgment with the county board of health to conduct a certified inspection of the private sewage disposal system at the earliest practicable time and to be responsible for any required modifications to the private sewage disposal system as identified by the certified inspection. A copy of the binding acknowledgment is attached to this form. _ There is a building served by private sewage disposal system on this property. The buyer has executed a binding acknowledgment with the county board of health to install a new private sewage disposal system on this property within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. There is a building served by private sewage disposal system on this property. The building to which the sewage disposal system is connected will be demolished without being occupied. The buyer has executed a binding acknowledgment with the county board of health to demolish the building within anagreed upon time period. A copy of the binding acknowledgment is provided with this form. [Exemption #9] This property is exempt from the private sewage disposal inspection requirements pursuant to the following exemption [Note: for exemption #9 use prior check box]: _ The private sewage disposal system has been installed within the past two years pursuant to permit number Information required by statements checked above should be provided here or on separate sheets attached hereto: I HEREBY DECLARE THAT 1 HAVE REVIEWED THE INSTRUCTIONS FOR THIS FORM AND THAT THE INFORMATION STATED ABOVE IS TRUE AND CORRECT. Signature: (. sferor oI Ayknt) FILE WITH RECORDER Telephone No.: 5--4'.,•Z32,1-151,72 DNR form 542-0960 (July 18, 2012) THIRD AMENDEMENT TO PURCHASE AGREEMENT WHEREAS, Legion -Aires Drum & Bugle Corps, Inc. d/b/a Colts Drum & Bugle Corps, an Iowa corporation (seller), and the City of Dubuque, Iowa (buyer) entered into a certain Offer to Buy Real Estate and Acceptance (hereinafter referred to as "Purchase Agreement") on June 3rd and 7th, 2016, with respect to the premises at 1101 Central Avenue, Dubuque, Iowa 52001; and also entered an Amendment to Purchase Agreement on September 27 and 28, 2016, and a Second Amendment to Purchase Agreement on October 19 and 20, 2016; and WHEREAS, the parties desire to make a Third Amendment to the Purchase Agreement, extending the date for closing and possession. NOW THEREFORE, seller and buyer do hereby agree to the following Third Amendment to the Purchase Agreement: Section 7: Possession and Closing. Section 7 is hereby amended to replace the date of December 15, 2016, with December 30, 2016. In all other respects, the Purchase Agreement entered between the parties previously shall remain in force and effect. Dated: December , 2016. City of Dubuque, Iowa, Buyer Dated: December S, 2016. By: Michael C. Van Milligan, City Manager Legion -Aires Drum & Bugle Corps, Inc. d/b/a Colts Drum & Bugle Corps, Seller By: /Jefrey G. McFarlane, Executive Director SECOND AMENDEMENT TO PURCHASE AGREEMENT WHEREAS, Legion -Aires Drum & Bugle Corps, Inc. d/b/a Colts Drum & Bugle Corps, an Iowa corporation (seller), and the City of Dubuque, Iowa (buyer) entered into a certain Offer to Buy Real Estate and Acceptance (hereinafter referred to as "Purchase Agreement") on June 3rd and 7th, 2016, with respect to the premises at 1101 Central Avenue, Dubuque, Iowa 52001; and also entered an Amendment to Purchase Agreement on September 27 and 28, 2016; and WHEREAS, the parties desire to make a Second Amendment to the Purchase Agreement, extending the date for closing and possession. NOW THEREFORE, seller and buyer do hereby agree to the following Second Amendment to the Purchase Agreement: Section 7: Possession and Closing. Section 7 is hereby amended to replace the date of October 14, 2016, with December 15, 2016. In all other respects, the Purchase Agreement entered between the parties previously shall remain in force and effect. Dated: October , 2016. City of Dubuque, Iowa, Buyer By: / Michael C. Van Milligan, City Manager Dated: October 1 I , 2016. Legion -Aires Drum & Bugle Corps, Inc. d/b/a Colts Drum & Bugle Corps, Seller By: (4 -L. -I ,?-44— / ffitey G. McFarlane, Executive Director AMENDEMENT TO PURCHASE AGREEMENT WHEREAS, Legion -Aires Drum & Bugle Corps, Inc. d/b/a Colts Drum & Bugle Corps, an Iowa corporation (seller), and the City of Dubuque, Iowa (buyer) entered into a certain Offer to Buy Real Estate and Acceptance (hereinafter referred to as "Purchase Agreement") on June 3rd and 7th, 2016, with respect to the premises at 1101 Central Avenue, Dubuque, Iowa 52001; and WHEREAS, the parties desire to make an amendment to the Purchase Agreement, extending the date for closing and possession; NOW THEREFORE, seller and buyer do hereby agree to the following amendment to the Purchase Agreement: Section 7: Possession and Closing. Section 7 is hereby amended to replace the date of October 1, 2016, with the following date: October 14, 2016. In all other respects, the Purchase Agreement entered between the parties previously shall remain in force and effect. Dated: f) , 2016. Ci of Dubuque, Iowa Buyer Dated: Z7 , 2016. By: ichael C. Van Milligan, City Manager Legion -Aires Drum & Bugle Corps, Inc. d/b/a Colts Drum & Bugle Corps By: /Jfrc G. McFarlane, Executive Director OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: Legionnaires Drum & Bugle Corps, Inc. d/b/a Colts Drum & Bugle Corps, an Iowa Corporation, Seller SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer) offers to buy all of Sellers' right, title and interest in and to the real estate in Dubuque County, Iowa, described as follows: South 2/5th of Lot 447 in the City of Dubuque, Iowa, according to the United States Commissioners' Map of the Town of Dubuque, Iowa (the Real Estate) together with any easements and appurtenant servient estates, but subject to the following: a. any zoning and other ordinances; b. any covenants of record; c. any easements of record for public utilities, roads and highways designated the Real Estate.. SECTION 2. PURCHASE PRICE. The Purchase Price of $443,000 shall be payable at closing subject to all of the terms and conditions herein. SECTION 3. REAL ESTATE TAXES. Taxes for the fiscal year in which the closing takes place shall be paid by Sellers prorated to the date of possession. Sellers shall also pay any unpaid real estate taxes for prior fiscal years. SECTION 4. SPECIAL ASSESSMENTS. Sellers shall pay all special assessments which are a lien as of the date of closing. SECTION 5. RISK OF LOSS AND INSURANCE. Sellers shall bear the risk of loss or damage to the Real Estate prior to closing or possession, whichever first occurs. Sellers agree to maintain existing insurance and Buyer may purchase additional insurance. In the event of substantial damage or destruction prior to closing, this Agreement shall be null and void; provided, however, Buyer shall have the option to complete the closing and receive insurance proceeds regardless of the extent of damages. The Real Estate shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before the closing date. SECTION 6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its present condition and delivered intact at the time possession is delivered to Buyer, provided, however, if there is loss or destruction of all or any part of the Real Estate from causes covered by the insurance maintained by Sellers, Buyer at its option may agree to accept such damaged or destroyed Real Estate together with such insurance proceeds in lieu of the Real Estate in its present condition and Sellers shall not be required to repair or replace same. SECTION 7. POSSESSION AND CLOSING. If Sellers timely perform all obligations, and all contingencies are met or waived, possession of the Real Estate shall be delivered to Buyer on or before October 1, 2016 (the Closing Date), or such other date as the parties may agree in writing with any adjustments of taxes, rent, insurance, and interest to be made as of the date of transfer of possession. SECTION 8. FIXTURES. All property that integrally belongs to or is part of the buildings on the Real Estate, whether attached or detached, such as light fixtures, shades, rods, blinds, awnings, windows, storm doors, screens, plumbing fixtures, water heaters, water softeners, automatic heating equipment, air conditioning equipment, wall to wall carpeting, built-in items and electrical service cable, outside television towers and antenna, fencing, gates and landscaping shall be considered a part of Real Estate and included in the sale. SECTION 9. USE OF PURCHASE PRICE. At time of settlement, funds from the Purchase Price may be used to pay taxes and other liens and to acquire outstanding interests, if any, of others. SECTION 10. ABSTRACT AND TITLE. Sellers, at its expense, shall promptly obtain a lien search or an abstract of title to the Real Estate continued through the date of acceptance of this offer which shall show merchantable title in Sellers in conformity with this agreement, Iowa law and Title Standards of the Iowa State Bar Association. Seller shall make every reasonable effort to promptly perfect title. If closing is delayed due to Seller's inability to provide marketable title, this Agreement shall continue in force and effect until either party rescinds the Agreement after giving ten (10) days written notice to the other party. At the closing, the abstract shall become the property of the Buyer. Sellers shall pay the costs of any additional abstracting and title work due to any act or omission of Sellers, including transfers by or the death of Sellers or its assignees. SECTION 11. DEED. At the closing, Sellers shall convey the Real Estate to Buyer, by Warranty Deed, free and clear of all liens, restrictions, and encumbrances, except as provided in this Agreement. General warranties of the title shall extend to the time of delivery of the deed excepting liens and encumbrances suffered or permitted by Buyer. SECTION 12. TIME IS OF THE ESSENCE. Time is of the essence in this contract. SECTION 13. REMEDIES OF THE PARTIES. The sole remedy of both Buyer and Seller in the event of default is for breach of contract. Judgment for costs and attorney fees may be as permitted by law. SECTION 14. APPROVAL OF COURT. If the sale of the Real Estate is subject to Court approval, the fiduciary shall promptly submit this contract for such approval. If this contract is not so approved, it shall be void. 2 SECTION 15. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. This Agreement shall survive the closing. SECTION 16. TIME FOR ACCEPTANCE. If this offer is not accepted by Sellers on or before Noon on June 15, 2016, it shall become void. SECTION 17. RIGHTS OF INSPECTION, ENVIRONMENTAL TESTING AND REVIEW. 17.1 Buyer, its counsel, accountants, agents and other persons authorized by Buyer, shall have full and continuing access to the Real Estate and all parts thereof, upon reasonable notice to Sellers for the purpose of inspecting, surveying, engineering, test boring, performance of environmental tests and such other work as Buyer shall consider appropriate, provided that Buyer shall hold Sellers harmless and fully indemnify Sellers against any damage, claim, liability or cause of action arising from or caused by the actions of Buyer, its agents, or representatives upon the Real Estate (except for any damage, claim, liability or cause of action arising from conditions existing prior to any such entry upon the Real Estate), and shall have the further right to make such inquiries of governmental agencies and utility companies, etc. and to make such feasibility studies and analyses as Buyer considers appropriate. 17.2 Sellers warrants to the best of its knowledge and belief that there are no abandoned wells, solid waste disposal sites, hazardous wastes or substances, burial sites or private wastewater disposal systems located on the Real Estate, the Real Estate does not contain radon gas, asbestos or -asbestos containing building materials, or urea -formaldehyde foam insulation, and Sellers has done nothing to cause or allow contamination of the Real Estate with hazardous wastes, substances, or pollutants. Sellers warrants to the best of its knowledge and belief that the Real Estate is not subject to any local, state, or federal judicial or administrative action, investigation or order regarding any environmental matter. Sellers shall provide Buyer with a properly executed Groundwater Hazard Statement showing no wells, solid waste disposal sites, hazardous wastes, private burial sites or private wastewater disposal systems on the Real Estate which shall be considered a warranty and representation by Sellers to Buyer. Seller is aware that there was, in the past, an underground fuel oil tank under the property. Attached is a copy of the memo dated 4/7/2000 which Seller has found in its records. Seller's Executive Officer is not aware of the status of the tank at the present time. 17.3 Following closing, should the Buyer learn that the environmental condition of the Real Estate requires assessment and/or corrective action pursuant to local, state or federal law, for environmental conditions caused by the Seller, it's employees, agents, representatives or contractors during the time period the Real Estate was controlled by Sellers, Sellers shall take all action as may be required by law to fully address the 3 environmental condition and Sellers shall indemnify and hold harmless the Buyer from any claims and costs, including attorneys' fees and consultants' fees, arising therefrom. 17.4 These environmental provisions shall survive closing. 17.5 Until ten (10) days prior to closing, Buyer shall have the right to terminate this agreement if environmental issues exist on the Real Estate that Buyer determines in its sole discretion it does not want to remediate. Prior to terminating this Agreement pursuant to this section, Buyer shall offer Seller the opportunity to remediate the Real Estate to the satisfaction of Buyer in its sole discretion and at Seller's sole cost. SECTION 18. TENANTS. Sellers warrant that the rights of all tenants shall be terminated by Sellers prior to closing and that there will be no tenants whose rights in the Real Estate survive the closing. This covenant shall survive the closing. SECTION 19. NO REAL ESTATE AGENT OR BROKER. Neither party has used the service of a real estate agent or broker in connection with this transaction. SECTION 20. CERTIFICATION. Buyer and Seller each certify that they are not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist, "Specially Designated National and Blocked Person" or any other banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and are not engaged in this transaction, directly or indirectly on behalf of, any such person, group, entity or nation. Each party hereby agrees to defend, indemnify and hold harmless the other party from and against any and all claims, damages, losses, risks, Liabilities and expenses (including attorney's fees and costs) arising from or related to my breach of the foregoing certification. SECTION 21. WAIVER. Failure to promptly assert rights herein shall not, however, be a waiver of such rights or a waiver of any existing or subsequent default. SECTION 22. NOTICE. Any notice under this Agreement shall be in writing and be deemed served when it is delivered by personal delivery or mailed by certified mail, addressed to the parties at the addresses given below. Legionnaires Drum & Bugle Corps. Attn: Jeff MacFarlane, Executive Director 1101 Central Avenue Dubuque, IA 52001 City of Dubuque Attn: Marie Ware, Leisure Services Manager 2200 Bunker Hill Road Dubuque, IA 52001 4 SECTION 23. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties and shall not be amended except by a written instrument duly signed by Seller and Buyer. SECTION 24. CONSTRUCTION. Words and phrases shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender, according to the context. SECTION 25. OTHER PROVISIONS. 25.1 Seller will provide Buyer with a signed Acknowledgment of Voluntary Negotiation and Purchase of Property at the time of closing. 25.2 This Offer is subject to final approval by the City Council in its sole discretion. Dated: 77/4 THIS OFFER IS ACCEPTED Dated: 3. lb BUYER SELLERS CITY OF DUBUQUE, IOWA By: Michael C. Van Milligen City Manager 5 LEGIONNAIRES DRUM & BUGLE CORPS, INC. D/B/A COLTS DRUM & BUGLE_CORPS f f J By:J'�?f"'p' . Its: X�y a 102-'11" SOILARF FOOTAQF CAI CUI ATIONS- EXISTING MFC BUILDING FIRST FLOOR: +/- 6,200 SF POTENTIAL SECOND FLOOR: +/- 2,400 SF EXISTING COLTS BUILDING FIRST FLOOR: -F/- 10,130 SF SELSER SCHAEFER ARCHITECTS (C) 2016 BUILDING ASSESSMENT 1101 CENTRAL AVE. 09 MAY 2016 M111.1„.111111 0 8 16 32 NORTH a .. ELECTRICAi PANELS STORAGE DEMO KITCHEN/ , i EVENT KITCHEN RENOVATE TO MEET OPERABLE PARTITION 1 I STORAGE -.7,:, ; ,3), ',..REPARTMENT NEEDS' .... HUMAN RIGHTS..... TO CLOSE OFF KITCHEN VVHEN NOT IN USE DIZIIZIEIL1 .-'• V 1B' Oi DANCE/MUSIC -,---,a,d-1,...,,,,ii-L,±-,i-uii , ir, P - Pi STORAGE ii ROOM f 1 -E.,l'At 'tM t 4 *INF4 ,0111W* i i i fig Oil a '0M'----5.4------€3 OW* fa i i- iit , Pi gi . kI , ti ifi, iirlf fir -, .7.-;,,,-, ,,,-.--- 10U-2" OFFICE 10 _ - 0 ' -.• ., 'i OFFICE 1 ---.), 0 it` , iiiik ',AV ...... /.....' ii_ , IAMERICORP 0 0 ITTi 111.Wit 011111ft la %IWO i 17 WI .. .... ..... .....1 4 . iii 4) I r 1.„„..-. , , I ij CONF. yRK AREA: JJ g OPERABLE PARTITION , ALIG WITH TRUSS, 7E AA P. STAGG, • "1''' . . r p, ':.' . ' FOYER/ , 4P'*MS ,IM* , \ / . 03 0 BREAK OUT #11Wil' OM II2isII\ I I,I", II.I II,.,Ii II,ZII,, OFFICE OFFICE SPACE N IIIVI1 0 -QI IbF t irivA elrai, , " - gi 'IIIIIII' ' :, • ..-. i- 4 ID 7 RESTROOM / iii ii ill " Ma * .1 r• ar.) III,,II,II I",,I,,I IIIII II.,I :„,±1I,"I X \ +/- 825 SF ‘,.„ / \ .., i el NEW RECEPTIONIST AREA , '''.' 1 , E / 'S i \ / ".' ' t... . ..... . ... RESTROOM _ ' FOYER/BREAK OUT SPACE ',1, , ni, NJ A0 Is ,4w LI \ ,77 t 40 _ ... .. mg- , F -i- ,, 1 • M r.0 SOILARF FOOTAQF CAI CUI ATIONS- EXISTING MFC BUILDING FIRST FLOOR: +/- 6,200 SF POTENTIAL SECOND FLOOR: +/- 2,400 SF EXISTING COLTS BUILDING FIRST FLOOR: -F/- 10,130 SF SELSER SCHAEFER ARCHITECTS (C) 2016 BUILDING ASSESSMENT 1101 CENTRAL AVE. 09 MAY 2016 M111.1„.111111 0 8 16 32 NORTH APpmssd Report of]101 CeMm Averse,Dub q ,Iw 52001-5016 AN APPRAISAL REPORT OF A COMMERCIAL TYPE PROPERTY KNOWN AS COLTS BUILDING ® pq LOCATED AT 7• ��®ea.�en���.o 1101 Central Avenue Dubuque, Iowa 52001-5016 Qom. EFFECTIVE DATE OF VALUE 05 April 2016 DATE OF REPORT 09 May 2016 PREPARED BY PREPARED FOR CLIENT FELDERMANAPPRAISALS DUBUQUE City of Dubuque Leisure Services Appraiser:Robert J. Felderman Attn: Marie Ware 55 BZuffSiree; Dubuque,Iowa 52001-7608 2200 Bunker Hill Road (563) 557-1465 office, (563) 588-4214 Fax Dubuque, Iowa 52001 Felderman File ID: 2016-1101 Central Ave-Colts Client Reference: Colts APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Felderman Appraisals Dubuque 55 Bluff Street, Dubuque, Iowa 52001-7608 05/09/2016 City of Dubuque Leisure Services Arm Marie Ware 2200 Bunker Hill Road Dubuque, Iowa 52001 SUBJECT: Market Value Appraisal of 1101 Central Avenue, Dubuque, Iowa, 52001 In fulfillment of our agreement, as outlined in the engagement order or agreement, we are pleased to transmit our narrative Appraisal Report on the above referenced real estate property. The tangible subject real estate includes a10,079 square foot single-story improved commercial structure located on a 10,240 square foot commercialty zoned parcel in Dubuque,Iowa. The property is 100% occupied by owner and in overall standard condition. The subject is described legally and physically in the enclosed 134-page appraisal report, along with the supporting addendum. At the client and intended user request, this appraisal estimates the As Is Market Value of the subject property as of the effective date of value and based on the identified highest and best use. The opinion of market value is predicated upon certain assumptions or limiting and contingent conditions, certifications, definitions and scope, essential data and detailed reasoning employed,which are set forth in the report. Please pay particular attention to any extraordinary assumptions and/or hypothetical conditions, and the determined marketing and reasonable exposure times. The report in its entirety is an integral part of, and inseparable from,this letter. Data,information, definitions, method of appraisal and calculations are included in this report; and was prepared for the listed client and intended user,its successors and assigns, and sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value to meet those specific needs for the intended use stated within this report. The appraiser is not responsible for the unauthorized use of this report. The analyses, opinions, and conclusions are prepared for the sole use and benefit of the client and intended user is developed based on the entire appraisal report. They are in conformance with Title XI Regulations of the Financial Institutions Reform,Recovery and Enforcement Act of 1989 (FIRREA, 12 U.S.C. 3331 et seq.), 2010 Interagency-appraisal and evaluation guidelines, and regulations adopted by the Office of the Comptroller of the Currency(OCC)pursuant to Title XI. These opinions and conclusions include without hmitation,the interpretation of guidelines and recommendations of the Uniform Standards of Professional Appraisal Practice (USPAP) Standard 1 and 2 as promulgated by the Appraisal Standards Board of the Appraisal Foundation, and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Disclosure of the contents of this appraisal report is governed by the By-laws and Regulations of the Appraisal Institute, and state appraiser licensing entities. Neither all nor any part of the contents of this report (especially any conclusions as to value, identity of the appraiser, or the firm with which they are connected)may be disseminated to the public by any means of communication without the appraiser explicit written permission. Page 2 of 134 ............................................................................................................................................................................................................................................... Appraisal Report of 1101 Central Avenue,Dubuque,Iowa 52001-5016 Based upon the analysis contained in this report, the market values for the subject real estate property are: Appraisal Premise As Is Property Rights Fee Simple Estate Extraordinary Assumptions (EA) or EA- owner provided info is correct Hypothetical Conditions (HC) (see section for others) Effective Date of Value 4/5/2016 Reasonable Exposure Time 1 to 60 months Marketing Time 3 to 12 months Market Value Conclusion $4439000 Market Value Range $400,000 to $500,000 It has been a pleasure to assist you in this assignment If you have questions, please call me. Respectfully submitted, K ROBERT J. FELDERMAN IA CG01134 Expires 6/30/16,WI 766-010 Expires 12/14/17, IL 553.002107 Expires 9/30/17 RobertFelderman@yahoo.com, (563) 213-0398 Page 3 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 TABLE OF CONTENTS INVOICE COVERPAGE 1 LETTER OF TRANSMITTAL 2 TABLE OF CONTENTS AND ADDENDA 4 CERTIFICATION 6 SUMMARY OF SALIENT FACTS 7 CONTINGENT AND LIMITING CONDITIONS AND ASSUMPTIONS 11 SCOPE OF WORK AND APPRAISAL PROBLEM 15 Market Value Definition 18 Property Rights 20 Extraordinary Assumptions 21 Hypothetical Conditions 22 Americans with Disability Act 23 Environmental Hazards 25 Report Type, Identification of the Problem 26 Competency Statement, Value Rounding Statement 28 MARKET ANALYSIS AND DEMOGRAPHICS 31 Region and General Area 32 Market Area&Local Data 35 Transportation,Utilities, Government,Education 38 Employment, Economic Data,Economic Index 43 Industrial, Tourism, TriState Region 47 Downtown Dubuque, Westside Dubuque 55 Rankings,Population Trends,Education Trends 57 Expansion and Continuing Trends 60 Marketing Time and Exposure Time 65 Vacancy Rates,Market Overview, Summary by type 68 IDENTIFICATION OF THE PROPERTY 77 Property Type, Ownership,Recent History 77 Physical Chmacteristics: Site Analysis, Legal 78 Zoning Analysis 81 Physical Chmacteristics: Improvements Analysis 83 Tax and Assessment Data and Analysis 85 APPRAISAL VALUATION PROCESS 87 HIGHEST AND BEST USE ANALYSIS 91 MARKET VALUE AND APPROACHES TO VALUE ANALYSIS 95 Opinion of Land Market Value 98 Cost Approach 104 Income Approach 110 Sales Comparison Approach to Value 120 RECONCILIATION OF MARKET VALUE 131 Page 4 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 ADDENDA Building Sketch A Site Plan A Area Map B Aerial Map B Plat Map B Census Map B Flood Map B Zoning Map B Zoning Data B Traffic Count Map B Historic District Map B Wetlands Map B Topography Map B Demolition District Map B Subject Photographs C Land Comparable Sales D Improved Comparable Sales D Comparable Sales Photographs D Location Map(Subject& Compambles) D Appraiser Qualifications and Errors &Omissions E Bibliography F Community Information and Census Data G Privacy Statement H Glossary of Terns I Appraisal Order J Assessor Description Sheet(Subject) K Documentation L Owner Property Disclosure Form Warranty Deed 2000 lowaDNR UST LUST Search Realty Rates Data PwC Investor Survey Economic Indicators Appraisal Institute Financial Views Page 5 of 134 ............................................................................................................................................................................................................................................... Appraisal Report of 1101 Central Avenue,Dubuque,Iowa 52001-5016 CERTIFICATION I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and my personal, impartial, and unbiased professional analyses, opinions and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. I have performed NO services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. My reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. 9. The appraiser, Robert J. Felderman,has made a personal inspection of the interior and exterior of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the person signing this certification. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 12. As of the date of this report, I(Robert J. Felderman, Candidate Member for Designation)have completed the continuing education program of the Appraisal Institute for Candidate Members. 13. As of the date of this report, I(Robert J. Felderman, Candidate Member for Designation)have completed the Standards and Ethics Education Requirements of the Appraisal Institute for Candidate Members. 14. Furthermore, if applicable, the report has been prepared in conformity with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). KJ - 05/09/2016 ROBERT J. FELDERMAN Date IA CG01134 Expires 6/30/16,WI 766-010 Expires 12/14/17, IL 553.002107 Expires 9/30/17 Page 6 of 134 Appmssal Report of]101 CeMml Averum Dubuque,Zowa 52001-5016 SUMMARY"OF SALIENT EACTS Property Address 1100 Central Avenue, Dubuque, Iowa 52001-5016 Type of Property Commercial Property Name Colts Building Assessor Parcel Identification's 10-24456-010 Legal Description" S. 2/5 City Lot 447, Dubuque, Iowa Client City of Dubuque Leisure Services Intended Users of the report Client fisted above Intended Use of the report Determine an Opinion of Market Value (as defined)for purchase negotiations (no other use is permitted) Property Rights Appraised Fee Simples Value Appraised: Market Value—As Is Report Opfions2 Appraisal Report Effective Dates' 04/05/2016 Date of the Subject Property Observation 04/05/2016 Date of the Report 05/09/2016 Current Owner of Record Legionnaires Drum&Bugle Corps Inc., D/B/A Colts Current Occupant/% of use Owner/ 100% Borrower Not applicable Sale Price/Sale Date Not applicable/Not applicable "The values and summery of information is subject to the definition;assumptions and limiting conditions set forth in the accompanying report of which this summary is a part No party other than the client unity use or reply on the infornation opinions and conclusions in the report The ummary is for the convenience of the client and assumes that the readers and intended users of the report have read the entire report 'o A copy ofNe assessor description sheens included in the addendum area Not or be used for deed purposes,refer or the abstract ofthe subject for full derailed legal description eo See definition of Market Value later in the report o'Fee Simple interest is defined as,"absolute ownership unencumbered by any other interest or esters,subject only to the limitation unposed by the goverxvmenfal powers of taxation,erminent domain,police power and escheat,"excerpt from Zhe Aopiugd ofRsal Rnae. a In accordance with Standard Rule 22(b)of the Uniform Standards of Professional Appraisal Practice(USPAP),and as such,itpresents sufficient information to enable the client and other intended users,as identified,to understand it Norerly. o'Effective date is e4ablished for the intended use and intended user,which may or may not bethe same as the date the Nor aty was observed Rerrosp eetive is as of a N ecified historical date Prospective is as of a future date,such as compleed construction or income property fully rented or stabilized. Page 7 of 134 Appmssal Report of]101 Central Avenum Dubuque,Zowa 52001-5016 Personal Property or FF&E84 No personal property/FF&E in the market value Land Area(approximate size)85 10,240 square feet Improvements(approximate size) Number of buildings 1 (one) Number of stories/levels 1 (one)/with no mezzanine and no basement Gross Building Area 10,079 square feet Year(s)Constructed/Actual Age 1949 /67 years old Effective Age/Remaining Economic Life 20 years/25 years based on information from Marshall Valuation Service for similar type buildings. With routine care and maintenance, some improvements outlast their remaining economic life. Property Assessment Data Land $ 29,440 (As of 2016)87 Improvements $189,910 Total $219,350 Special Assessment None identified Taxes Gross/Net(for 2014)89 Tax Exempt for Non-Profit Owner Highest and Best Use As If Vacant: Commercial Development As Improved: Commercial Existing Use Non-profit commercial use Census Tract Map Number/Census Area90 Map 19-061 /Area 0001.00 Special Flood Hazard Area91 No Zoning Classification92 C4 Downtown Commercial District Historic District93 None W etiands9° None identified that impact the subject 9'Fusiehings,fixtures and equipment es Obtained from sources considered accurate(.e Assessor Auditor GIS). 86 Obtained from source considered accurate(I e Assessor) w Appraiser will list any(sown Special Assessments,but Client is recommended to confirm any Special Assessment,with the appropriate authority ee Refer or summary or description in rep of or addendum It is the responsibility offheclient to confirm if any sP ecial assessments apply. fl9low a Tax year from July 1 to June 30 is based on me real property taxable v clue forme previous year hor me last year the assessed value was updated) One half of year's taxes are due twice each yea,with payments in September and March T exable v alues may be located on the Dubuque City ardor County Assessor and/or Treasurer web pages 9°Refer or summary or description in report or addendum 9'Refer or summary or description in report or addendum 91 Refer or summary or description in report or addendum 9r Refer or summary or description in report or addendum a Refer or summary or description in report or addendum Page 8 of 134 Appmssal Report of]101 C ar,,Avvwe,Dubuque,lowa 52001-5016 Demolition District's Washington Street Neighborhood Easements/Encroachments96 No detrimental issues identified or known 5-Year History of Options or Lisfings and Last Sale Dates As of the effective date of this appraisal,the subject is not fisted for sale; in the last 5-years the subject has not sold, and there are no known contracts, agreements of sale or options to buy in effect Estimated Reasonable Exposure Time98 1 to 60 months Estimated Marketing Time99 3 to 12 months Hypothetical Condifions Refer to separate section of report Extraordinary Assumptions Refer to separate section of report Services in the past three(3)yearsn" No known prior services provided Privacy Statement Refer to separate section of report Limiting Conditions or Assumptions Refer to separate section of report Certification Refer to separate section of report Jurisdictional Exception(per USPAP) Not applicable "Refer or summary m description in report m addendum 96 Obtained from sources considered reliable and accurate,but intended use must perform their own confirmation since the appraise does not vrantmrs information "Effective 01 January 2003,USPAP resource that the subfedbe checked for current listing information,and the history ofprev ious sales in the past Wee(3)years and comparables in the past one(1)year ofNe effedbe date(often clients may require longe periods checked,such as the Uniform Act is to check fiv eyears for surf ed) To the best of me appraise knowledge,no other sale or transfer of subject ownership has cured within the past three years and unless stated no comparable sale in the p ast year from me effective date of this appraisal rep on, This information is based on information obtained from the client,meowner,and local or national multip le listing sew ices No title search has been provided to the appraiser. "The marketing period is distinguished from reasonable eposure time,"the length oftime me property interest being appraise would have been offered on the marker prior to the hypothetical consummation of a sale at market value on the effective date of me appraisal,a retrospective estimate based upon an analysis of past ev ents assuming a compentiv e and open market' This is p eche Advisory Opinion from me Appraisal Standards Board of me Appraisal Foundation definition The appraise used research of statistical information about days on the marker(area Multiple Listing Services),sale v eifications,and interviews of market p articipants 99 plastering time is defined as,"An estimate ofNe amount oftimeit might take to sell a prop atyinterest in real estate at me estimated market value lav el during the p sire invnediate after me effediv e date of me appraisal' This is per the Advisory Opinion Goon the Appraisal Standards Board of me Appraisal Foundation definition The appraise used research of statistical infornation about days on the market Orea Multiple Listing Services),sale verifications,and interviews ofmarket particip ants. no USPAP required information pe Standards Rule 2 Page 9 of 134 APPmgd Report of]101 Cer¢ml Avvwe,Dubuque,Zowa 52001-5016 Finanal Indicatorsn" Realty Rates Investor Survey includes Historical Cap Rates, Financial Rates,Permanent Financing Rates,Reserves for Replacements,Discount Rates,Equity Dividend Rates,Mortgage and Equity Rates, Debt Coverage Ratio(DCR)and Cap Rates ranges for the following property types; • Apartments All Types— Suburban—Townhouses - Student Housing, • Golf Course & Country Club(private and public), • Health Cue & Senior Housing—Acute Cue—Outpatient—Congregate Care—Assisted Livings • Industrial All Types—Warehouse—Flex/RD -Climate Controlled Cap Rates, • Lodging All Types—Full Service—Limited Service—Golf Gaming Resort, • RV Parks- Campgrounds -Manufacturing Housing Parks -Mobile Home Parks, • Office All Types—Central Business District—Suburban—Medical, • Restaurants All Types—FullService—FastFood, • Retail All Types- Anchored Centers-Un-anchored Centers -Free Standing—Convenience Store Gas Stations • Self-storage All Types—Climate Controlled—Milli Storage, • Special Purpose All Types— Schools—Daycare Centers—Churches—Temples—Synagogues, • Land Leases The appraiser has researched cap rates for Iowa, Indiana, and Illinois agriculture property, with rates supported from a low of 1%to a high 5%, and an average of 3%. Realty Rates Developer Survey includes discount rates for subdivisions and PUD's, condominiums and co-ops, and regional discount rates for subdivisions and PUD's, condominiums and co-ops -residential, manufactured housing, business parks and industrial parks Realty Rates Market Survey includes Asking Rents,Reimbursable Expenses,Vacancy Rates, Effective Gross Income,Expenses, Total Expense Ratio,Net Operating Income, OAR Cap Rate, Gross Rent Multiplier, and Effective Gross Income Multiplier for apartments, industrial, office, and retail property types. 101 Not all of Ne indicators are needed or used in the report valuation,but are provided in the addenda as part oflhe research completed in the analysis of Ne subject property. Page 10 of 134 Aopmod Report of]101 CelYml Aveam,Dubuque,Zowa 52001-5016 CON77NGENTAND LIAH77NG CONDI77ONS OR ASSUMPHONS The certification of the appraisers)appearing in this appraisal report is subject to the following Contingent or Limiting Conditions and Assumptions: 1. This reportisintended to comply with the reportingrequirements set forthunder Standard Rnle2 of the Uniform Standards of Professional Appraisal Practice. As such,it might not include full discussions of the data,reasoning,and analyses that were used in the appraisal process to develop the appraisers'opinion of value Supportingdocamentafion concerning the data,reasoning,and analyses is retained in the appraisers'file. The information contained in till s report is specific to the needs of the client and for the intended use slated in this report. Theappraiserisnotresponsiblefor unauthorized use of tills report. 2. Be advised that the people and appraisers associated with Felderman Appraisals are independent contractors. 3. Limits of Liability:The liability of Felderman Appraisals and/or Independent Contractors)is limitedto the client only andto the fee actually receivedby Nem. Further,there is no accountability,obligation,or liability to any third party. If this report is placed in the hands of anyone other than the client,the client shall make such party aware of all limited condi tions and assumptions ofthe assignment and related discussi ons. The appraiser is in noway to be responsible far arty costs incurred to discover or correct any deficiency of any type present in the property,physically,financially, and/or legally. In the case of limited partnerships or syndication offering or stock offerings in real estate,the client agrees that in case of lawsuit(brought by lender,partner or part-owner in arty form of ownership,tenant or any other party),any and all awards,settlements of any type in such suite,regardless of outcome,the client will hold the appraiser completely harmless in arty action. 4. By accepting this report,Appraiser and Client agree that the following mutual limitation ofliability is agreed to in consideration offees charged and the nature of Appraiser's services. Appraiser and Client agree that to the tallest extent permitted by applicable law,each party's and its personnel's maximum aggregate andjoin liability to the other party for claims and causes of action relating to tills appraisal shall be limited to the total fees and costs charged by Appraiser for the services that are the subject of the claims)or causes)of acti on. Thislimitationofliabilityextendsto all types of claims or causes of action,whether in breach of confracl or tort,including without limitation claims/causes of action for negligence,professional negligence or negligent misrepresentation on the part of either party or its personnel,but excluding intentionally frandident conduct,criminal conduct or intentionally caused injury. The personnel of each party are intended third-party beneficiaries of thus limitali on of liability. Personnel as used in this paragraph,means the respective party's staff,employees,contractors,members,partners and shareholders. Appraiser and Qienthave been free to negotiate different terms with other parties. 5. The appraiser must provide prior written consent before the chi cut or intended user specified in the appraisal report can dishibute the appraisal report(including conclusions about the property value,the appraiser's identify and professional designations,and references to any professional appraisal organizations of the firm with which the appraiser is associated)to anyone other than the borrower,the mortgage ofits successors and assigns;the mortgage insurer; consultants;professional appraisal organizations;any state or federally approved financial institution;or any department agency,or instrumentality of the United States or any state of the District Of Columbia;except that the client or intended user may dishibute the property description section of the report only to data collection or reporting service(s)without having to obtain the appraiser's prior written consent. 6. Fbssesslon ofthis report,or a copy thereof,does not carry with it the right of publication. It is a privilege communication. It may not be used for other than its intended use;the physical report(s)remain the properly of the appraiser for the use of the client,the fee bang paid is for the analyfical services only. 7. All furnishings,equipment,and business operations,except as specifically stated and typically considered as part of real property,have been disregarded with only real property bang considered in the report unless otherwise stated 8. It is assumed there ism adequate supply ofenergy and there will be adequate available energy in the future 9. It is assumed that any mechanicals are in working condition,that the appraiser observation is not construed as an engineering inspection for structural soundness or physical condition,that information provided by others is accurate (such as land and building measurements from assessor,documents[deeds,easements,etc]and values from recorder, maps from auditor,zoning from the zoning department,etc)and that arty new or updated improvements summarized will be completed by a specified future date. 10. Any existing or proposed improvements,on or off-site,as well as any alterations or repairs considered,are assumed to be completed in a competent manner according to standard practices based upon the information submitted to the appraiser. This report maybe subject to amendment upon re-inspecfionof the subject subsequent to repairs, modifications,alterations and completed new construction. 11. Any utility services that are available,as detailed in the report,for the property are considered they will continue to be so in the year future Page 11 of 134 Aopmod Report of]101 Cermml Aveam,Dubuque,I w 52001-5016 12. Unless otherwise specifically voted in the report,it is assmmed Nat fitle to the property orproperties appraiseris clear and marketable and that there are no recorded or unrecorded matters or exceptions to fitle that would adversely affect marketability or value. The appraiser is not aware offitledefects nor have they been advised ofany unless specifically noted in the report. The appraiser has not examined the title and makes no represenufions relative to the comditiun thereof. No responsibility is assumed for matters oflegal nature affecting title to the property nor ism opinl on offitte rendered. The fitle is considered good and marketable. The value estimatedis given without regardto fitle, boundaries,encumbrances,or encroachments. 13. Unless otherwise specifically voted,the property is appraisedfree and clear atony or all liens or encumbrancer. The appraiser assumes no private deed reshicfions limiting the use of the subject in arty way. 14. The appraiser assumes that the subject will be operated under responsible ownership and competent property management and ownership,neither inefficientnor super-efficient The appraiser has no control over management however,the apprai ser considers the management of this investment of prime importance Reasonable andprident(not exceptional)management practices and expertise is assumed(anficipated)in the appraisal. Should Nepresentor prospective owner be unable and or unwilling to take those acfiun required by reasonable and prudent management practices to meet financial goals and or reasonable expectations,we recommend a careful reconsiderafi on of the investment risk. 15. All data which wasfurnished by others and contained herein is believed reliable and the appraiser reserves the right to adjust the determined values should any data provided by others be found different or in mor. However,nowaranly is given for its accuracy. The comparable data relied upon in ttds report has been confirmed by one or more parties familiar with the transaction or from affidavit or other source though reliable;all are considered appropriate for incNsion to the beat of our factual judgment and knowledge. An impracti cal and uneconomic expenditureoftime would be required in attempting to fnrnlsir unimpeachable verification in all instances,particalarly as to engineering and market-related information. Itis suggested that the client consider independent verificafion as a prerequisite to any transaction involving the sale,lease,or other significant commitment of funds or property. 16. Unless otherwise specifically voted,all engineering is assumed correct and shall not be considered a report on the physical items that area part of this property. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 17. If the appraiser has inspected the subject land,as identified in the report and as thoroughly as possible by observation; however,it is impossible far the appraiser to inspect beneath the soil. Soils with the poteufial to shrink or swell are found throughout the United Sates. Soils with shrink or swell potential create difficult performance problems for buildings constructed on these soils. As the soil water content increases,the soil swells and heaves upward As the soil water ontent decreases,the soil shrinks and the ground surface recedes and pulls away from the formulation. The appraiser cannot evaluate the possible effects of soil conditions and cannot be held respunsibl a for their ideutificafion in or about the vicinity of the subject property. Therefore,it is assumed there are no hidden or unapparent conditions of the property,subsoil,or structures to render it more or less valuable Noresponsibilityisasmmedfo mchcondifions or for arranging for engineering studies that maybe required to discover them. 18. Unless specifically noted elsewhere,it is assumed there are no mineral deposits orsubsoyace right-ofvalue involved in this appraisal,whether they are gas,liquid or solid Nor are the rights associated with the extraction or exploration of such elements considered unless otherwise stated in the appraisal report. 19. Unless specifically stated elsewhere,it is assumed there are no air right-or development rightsornavigationalright- ofvalue that may be transferred. 20. It is assumed that the subject property is not in violafiun of the National Environmental Policy Act,the State Environmental or Clean AirAct,or any other similar government regalafions or laws pertaining to the environment unless otherwise menfiuned in this report. 21. Unless otherwise stated in this report,the existence ofhazordous material,which may or may not be present on the property,was not observed by the appraisers. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser,however,is not qualified to detect such substances. The presence of sa distances such as asbestos,urea-formaldehyde from insulation or other potentially hazardous materials may affect the value ofthe property. The value estimate is predicated on the assumption there is no such material on or in the property to cause loss in value. No respomsibilily is assumed for any such conditions,or for any expertise or engineering knowledge required to discover Nem. The ciientis urgedto retain an expert in this field,ifdesired. 22. It is assumed that all applicable zoning and.regulations and restrictions have been complied with,unless nonconformity has been stated,defined,and considered in the report. 23. It is assumed that all required licenses,certificates ofoccupancy,consent-,or other legislative or administrative authority from any local,state,or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based 24. It is assumed that the utilization ofthe site and improvement-is within the boundaries or property lines ofthe property described and that there is no encroachment or trespass unless specifically noted in the report. 25. Th eforecast-,projections,or operating estimates contained herein are based upon current market coach fiuns, arificipated short-tern supply and demand factors,and a continued stable economy. These f irecasts are,Neref ire, subject to charges in Nlureconditions. Page 12 of 134 Appmgd Report of]101 Cermml Aveam,Dubuque,I w 52001-5016 26. The appraiser may have provided a sketch in the appraisal report to show approximate dimensions oftheimprovemeats 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. 27. The appraiser has examined the availableflood mops that are provided by the Federal Emergency Management Agency (or other data sources)and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. The appraiser is not a surveyor,and makes no guarantees,express,m implied,regarding this determination of flood area. 28. Any mops,plot-,sketches,graphs,photographs and exhibits included in this report are for illustration purposes only and are to be utilized only to assist in vi sualizing matters discussed within this report. Unless specifically stated,data relative to size m area of the subject and comparable properties has been obtained from sources deemed accurate and reliable None of the exhibits m addendams is to be removed,reproduced,or used apart from this report. 29. The appraiser has researched the subject market area(for residential often labeled as neighborhood)and selected recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and has made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to,m more favorable than,the subject property,the appraiser made a NEGATIVE adjustment to reduce the adjusted sales price of the comparable and,if a significant item in a comparable property is inferior to,m less favorable than the subject property,the appraiser made a POSITIVE adjustment to increase the adjusted sales price of the comparable 30. When the invoice for appraisal,consultation analytical or testimony service is fnl fled,the total fee is payable upon completion. Unless specific arrangements beforehand,the appraiser will not give testimony or appear in court because he made an appraisal of the property in questi ons. The appraiser prepares all assignments ready to testify regarding the subjectproperty,but only based upon an agreement offees for that service. The appraiser shall not be requiredto give testimony in any court or administrative proceeding relating to the subj ect property or the appraisal. Any post appraisal consultation with the client m third parties will beat an additional fee. If testimony or deposition is required because of any subpoena,the client shall be responsible for any additional time,fees,and charges regardless of issuing party. 31. Electronically delivered reports may not be received in their entirely,may have been scrambled during tramanissi an,ow may have one m more data chaagedby some unknown ttdrdparly. The appraiser is not responsible for such errors and cannot guarantee a report delivered elechonl tally is a true m accurate representation of the appraisal report. 32. Neither all nor arty part of the contents of this report(especially any conclusions as to value,the identity of the appraisers,m the firm with which the appraisers are connected)shall be disseminated to the public through advertising, public relations,news,sales,or other media without pri m written consent and approval of the appraisers. The appraiser's written consent and approval must be obtained before the appraisal can be conveyed by anyone 33. The appraiser may have provided an Opinion ofLond Value in the Cost Approach to Value using the lands highest and best use and the improvements at their contributory value These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are soused 34. Unless otherwise stated in the appraisal,compliance with the requirements of theAmericons with losobilities Act of 19R)(ADA become effective January 26,1992)has not been considerelin arriving at the opinion ofvalue. Failmeto comply with the requirements of ADA may adversely affect the value of the property. The appraiserrecommends that an expert in this field be employed,and it is assumed any improvements meet ADA requirements m are not required to be met. 35. It is improper to base a conclusion m opinion of value upon the premise that the racial,ethnic,or religious homogeneity of the inhabitants of an area m of a property is necessary for maximum value Racial,religion and ethnic factors are deemed unreliable predictors of value trends or price variance. Itis improper to base a conclusion or opinion of value, m a conclusion with respect to market area or neighborhood trends,upon stereotyped m biased presumptions relating to race,color,religion,sex,or national origin m upon unsupported presumptions relafing to the effective age m remaining life of the property m the life expectancy of the market area m neighborhood in which it is located Theappraisersdid not base,either partially or completely,any analysis and/or opinion of market value in the appraisal report on Neroce, color,religion,sex,handicap,familial status,or national origin of either the prospective owners m occupants ofthe subject property or of the present owners m occupants of the properfies in the vicinity ofthe subject property. 36. Any estimate ofMorket Value is as of the date indicated;based upon the information,condi tions and projected levels of operation;is subject to change with market fluctuations over time Market value is highly related to exposure,time promotion effort,terms,motivation,and conclusions surrounding the offering. Value estimates consider the productivity and relative attractiveness of the property,both physically and economically,on the open market. 37. All valuations in the report are applicable only under the determined Highest and Best Use and are not necessarily applicable under other programs of use 38. The dishibution ofthe total valuation in this report between land and improvements must not be used in conjunction with any other appraisal and are invalid if soused The valuation of a component part of the property is applicable only as part ofthe whole property and are invalid if soused. Page 13 of 134 Appmgd Report of]101(oeMml Aveam,Dubuque,Zowa 52001-5016 39. The opinion ofvolveisonly asofthe effective date stated in the appraisal. Changes since that date in external or market factors or in the property itself can 9gni11candy affect property value The appraisal is based on market conditions that exist as ofthe date of the appraisal. Under the terms ofengagement,we will have no obligation to revise this report to reflect events or corditioms that occur subsequeutto the date ofthe appraisal. However,Ne appraiser will be available to discuss the necessity for revision resulting from changes in economic or market factors affecting the subject. 40. Any value estimate provided in the report applies to the entire property,and any pro ration or division ofthe title into fractional interests will invalidate the value estimate,unless such pro ration or division of interests has been set forth in this appraisal report. 41. The apprai ser cannot predict or evaluate the possible effectsof Nhrre wage or price control acfiuns of the government upon rental income or financing of the subj ect property;hence,it is assumed that no control will apply which would nullify contractual agreements,thereby changing property values. 42. As part of the scope ofwork,the appraisal report may include an esti mate of insurable valve or a cost approach. The appraiser has followed traditional appraisal standards to develop reasonable calculations based upon industry practices and industry accepted publications such as the Marshall V aluafiun Service handbook. The methodology employed is a derivation of the cost approach ism academic exercise to help support the market value estimate and there is not reliable for Insurable Value esti mates. Actual construction costs and related estimates can vary greatly from this estimate. The analysi s should not be relied upon to determine proper insurance coverage and is provided to aid the intended user as part of their overall decision-making process and no representations or the appraiser regarding the accuracy of this estimate makes waranties and it is strongly recommended that other sources be utilized to develop arty estimate ofinsurable value. 43. Client shall indemnify or hold Appraiser harmless,to the extent that the Client rail Aepresents,distorts,or provides incomplete or inaccurate appraisal results to others,which acts of the Client approximately result in damage to the Appraiser. Notwitlstarrding the foregoing,the Appraiser shall have no obligation under this section with respect to any loss that is caused solely by the active negligence or MIMI misconduct of a Client and is not contributed to by any act or omission(included any failure to perform arty duty imposed bylaw)by Appraiser. Client shall indemnify and hold Appraiser harmless from arty claims,expenses,judgments or other items or costs arising because ofthe Client's failure or the failure of arty of the Client's agents to provide a complete copy of the appraisal report to arty third party. 1n the event of any lifigation between the parfies,the prevailing party to such lifigation shall be entitled to recover,from the other,reasonable attorney fees and costs. 44. Unless specifically noted elsewhere,nothing contained in the appraisal report shall be construed to represent any direct or indirect recommendation by the appraiser to buy,sell,or hold the properties at the value stated Clientorowner decisions involve substanfial investment strategy quesfions and Abe specifically addressed in consultafion form. 45. Unless specifically noted elsewhere,the appraiser is not aware of arty corrtemplatedpvblic initiatives,governmental development controls,or rent controls that would significantly affect the value of the subj ect. 46. Unless specifically noted elsewhere,it is assumed Nat no changes in the present zoning ordinances or regulations governing use,density,or drape are being considered 47. The appraisers)reserves the right to alter statements,analysis,conclannonorvalve estimated contained in the appraisal if a fact(s)pertinent to the appraisal process unknown prior to the completion ofthe appraisal issue discovered 48. Th efee for this appraisal isfar the service rendered and not for the fime spent on the physical report or the physi cal reportitself Compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client,the amount ofthe value estimate,the attainment of a stipulated result,or the occurrence of a subsequent event. 49. The appraiser will not disclose the contentsofthe appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 50. Acceptance and or use ofthis report constitutesfull acceptance of the Contingent and Limiting Conditions or Assumptions set forth in this report. It is the responsibility of the Client,or client's designees,to read in frill, comprehend and Nus become aware ofthe aforementioned contingencies and limiting coadifions. Neitherthe Appraiser nor Felderman Appraisals assmnes responsibility for any situation arising out of the Client's failure to become familiar with andunderstand the same The Client is advised to retain experts in areas that fall outside the scope of the real estate appraisal or consulting profession if so desired Page 14 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 SCOPE OF WORKAND APPRAISAL PROBLEM The U SPAP provides guidelines for the process to be undertaken by the Scope of Work Rule, to which all appraisal professionals must adhere, and the scope of work for this appraisal assignment involved the following: 1. Identified the problem to be solved, determine the solution and perform the scope of work necessary to develop credible assignment results; apply the solution; and disclose the scope of work in the report within the expectations of clients and what the appraiser peers would do if faced with the same sort of solution. 2. Physical observation of the subject property and its environs, as is, to analyze social, economic, governmental and environmental forces,which create and affect value; 3. Researched public records to determine ownership and other pertinent information; 4. Analyzed data concerning the subject including site, utilities and municipal services, zoning taxes, easements and restrictions both governmental and non-governmental. It is the clients responsibility to determine information regarding restrictions such as zoning and flood plain districts; 5. Analyzed and opined aMarket Analysis that describes the overall supply and demand for like type property in the identified market area or residential neighborhood(based on the appraiser determined needs of the client and intended user and influences on the subject market value); 6. Analyzed and opined the Highest and Best Use of the site as if vacant and the property as improved(or as proposed or remodeled)with regard to uses that would be physically possible, legally permissible, financially feasible and maximally productive; 7. Researched various incentives made available to ownership (discussed,if available); 8. Researched demogmphic and regional economic conditions; 9. Analyzed regional,local and market area or residential neighborhood data(supply and demand); 10. Analyzed pertinent market conditions,marketing time, exposure time and market trends for the property type, as required by USPAP; 11. Identified and investigated appropriate cost, income and sales data(land&improved); 12. Developed a valuation analysis of the land using the sales comparison approach method; 13. Developed a Cost Approach, using analysis of appropriate cost information; 14. Developed an Income Approach, using analysis of income &expense information; 15. Developed a Sales Comparison Approach, using analysis of similar property sales; and 16. Reconciled the applicable value indications into a final opinion of Market Value as of the effective date, determined property rights,intended use and for the intended user. Data that was furnished by others and contained herein is believed reliable and the appraiser reserves the right to adjust any and all values determined in this report should any data provided by others be found different or in error. Page 15 of 134 Appmssal Report of]101 CeMml Avvwe,Dubuque,zowa 52001-5016 Identification oftbe Client and Intended User... City of Dubuque Leisure Services (Marie Ware)is the client and intended user. Identification oftbe Intended Use The intended use is of this report is to assist the client and intended user in determining the market value of the real estate property identified in this report to assist in purchase negotiations. The client and other intended users,intended use of the appraiser's opinions and conclusions, type and definition of value, effective date of the appraisers opinions and conclusions, and assignment conditions are listed in the report. The appraisal will result in an AS IS opinion of Market Value being assigned to the property using the Scope of Work to develop credible results. Observation Date ofAppraisal The appraiser, R. J.Felderman observed the subject property on 05 April 2016 with Jeff MacFarlane present for the observation of the subj ect property. A copy of building sketch plans and a seller property disclosure were provided by the owner. All of the comparables used in this report were observed or verified with reliable sources,unless otherwise indicated, and information provided by others is deemed accurate, and they were checked for previous sales, and if any in the past year will be noted on the data sheets in the addendum area of the report. Should any data or information from other sources (public or private)that are relied in this appraisal report be found to be in error, we reserve the right to adjust the determined opinion of value in any of the three approaches to value and the final opinion of market value. 101 The intended user is the person or entity who the appraise Intends will use Re results of the appraisal Appraisal Institute,the Appraisal of Reel Estate,Chicago Page 16 of 134 APpmssad Report of]101 C ar,,Avvwe,Dubuque,Zowa 52001-5016 Specific Comidera/tona In the preparation of this appraisal report, the type and extent of data researched will include the investigation of numerous vacant land and improved sales in the subject's market, analyzed rental, and cost data,with considered input of buyers, sellers, brokers,property developers and city officials. The appraiser may have collected,researched and analyzed information about the subject from the owner or representative,public records and an observation of the property and other sources (public and private)10.necessary to gather data in the course of completing the appraisal assignment, such as; • U.S. Postal Service • U.S.Department of Agriculture(ASCS) • City and County or Township Assessors, Recorders, Auditors and/or Treasurers • City and County or Township Zoning Departments, Township Engineers • City and County or Township Community Development Organizations or Departments • Local state or national chamber of commerce or economic development organizations • Local and national cost sources such as Marshall Valuation Service • Local and national multiple listings services • Appraiser files of previous observations or appraisals, and market information • Discussions with real estate investors and owners,brokers, managers and/or appraisers • U. S. Census Bureau; or Federal Emergency Management Agency Flood Insurance Maps There are certain limits imposed upon the development of this appraisal assignment by my expertise and by my client. I may have been unable to investigate all aspects of the property appraised. Therefore, it was necessary to make certain assumptions and limiting conditions in the development of the opinion of value,generally concerning the title of the property, and the physical and functional characteristics of the property. Therefore, the appraisal is subject to the certification, assumptions and limiting conditions included in this report. USPAP Compliance This appraisal report is prepared only for the addressee, the client and intended users, and has been written in conformance with my understanding of the Uniform Standards of Professional Appraisal Practice (U SPAP)as promulgated by The Appraisal Foundation and the Appraisal Institute. 'w Often information is obtained horn web pages provided by those entities listed above The appraiser considers such information accurate and correct As deemed appropriate,the appraiser may include some information in the addenda Page 17 of 134 APpmssal Report of]101 Cer¢ml Avvwe,Dubuque,lows,52001-5016 FIRRF4 Compliance A specific set of guidelines applicable to regulated banking institutions identify the components of a safe and sound program for performing appraisals and evaluations for real estate-related firtancing transactions. Those guidelines provide guidance on implementing the appraisal regulations promulgated in accordance with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The original guidelines were jointly issued in October 1994 by the OCC, FRB,FDIC, and OTS. They were revised in December 2010 by the OCC,FRB, FDIC, OTS, and NCUA, and became effective December 10, 2010 when they were published in the Federal Register,Vol. 75,No. 237, December 10, 2010. Some of this appraisal is prepared in accordance with those guidelines listed above, even if the client and intended user of this report do not plan to use the appraisal forfi'nancingpurposes. Market Value Definikon106 Market Value is a type of value, stated as an opinion, that presumes the transfer of a property(i.e., a right of ownership or a bundle of such righte 05), as of a certain date,under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. The definition of Value used by agencies that regulate federally insured financial institutions in the United States10'. Market Value is the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consurrurustion of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: I. Buyer and seller are typically motivated,' 2. Both parties are well informed or well advised and acting in what they consider their own best interests, 3. A reasonable time is allowed for exposure in the open market,' 4. Payment is made in terms of cash in U.S. dollars or in terms offinancial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Prospective Value1On is a value opinion as of a specified future date. The term does not define a type of value. It identifies a value opinion as effective at some specific future date. An opinion of value as of a prospective date is frequently sought with projects that are proposed,under construction or under conversion to a new use, or those that have not achieved sellout or a stabilized level of occupancy. The International Valuation Standards (not used in this report) state the definition of Market Value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing where in the parties had each acted knowledgeable, prudenfly and without compulsion. 101 Yoe Uniform 8emulard ofPrf sional Appraisal Penance,The Appraisal Foundation -The bundle of rights consist off oe right or sell a property or i6 components(oil,water sand,graver,the right to occupy real estate,the right to lease a propaCi,the right to mortgage a property and the right or creat a life estate "'Definition was obtained from 12 C.F.R.Part 34.42(g);55Uskral Register 34696,August 24,199q as anvrded rd 57 Federal Regeter 12202,April9,1992, 59 Federal Regiater 29499,Jesse 7,1994 lar The Dictionary ofReal Rnne Vpmisd,The Appraisal Instihrte,Chicago Illinois Page 18 of 134 APpmssal Report of]101 Cer¢ml Avvwe,Dubuque,lowa 52001-5016 Disposition Value1..is defined as (but is not developed in this report): 1. Consummation of a sale within a future exposure time specified by the client. 2. The property is subjected to market conditions prevailing as ofthe date ofvaluation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider their best interests. 7. An adequate marketing effort will be made during the exposure time specified by the client. 8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold,unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified fintancing terms. Liquidation Value 109 is defined as(but is not developed in thia report): 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as ofthe date ofvaluation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider their best interests. 7. A normal marketing time is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold,unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified fintancing terms. Assessed Value"0 is defined as (but not developed in this report)the value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value. In ad valorem taxation, assessed value refers to the value of a property according to the tax rolls. Assessed value may not conform to the definition of market value,but is usually calculated in relation to a market value basis. Some municipalities estimate both an assessed value and a market value. Appraisers of real property are generally not asked to develop an opinion of assessed value, although in property tax disputes appraisers are often asked by property owners to provide an opinion of market value for comparison with the assessed value. In other contexts, data on assessed values can be useful as supporting data in analyses for assignments involving other types of value. For example, a comparison of assessed values can aid in the selection of comparable properties, or research into trends in assessed values can be used as secondary evidence of changing market conditions. ...7hs Diniormry op Real Enure Appraisal,The Appraisal Collins,Chicago Illinois 109 Zhs Diniormry op Real Enure Appraisal,The Appraisal Collins,Chicago Illinois 10 ZhsAVpmsrd op Real Enure,The Appraisal Institute,Chicago,Illinois Page 19 of 134 APpmssa,Report of]101 Cebu,Avvwe,Dubuque,Zowa 52001-5016 Properly Rights'll Regardless of the type of ownership, the owner of real property is said to have rights and interest in that property. For this appraisal, the value"' of Fee Simple interest is presented in the report. Fee Simple interest is defined as, "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain,police power and escheat." Other interests considered, but may not be developed in this report, are: Leased Fee interest is an ownership interest held by the owner/landlord with the rights of use and occupancy conveyed by a lease to others by specified contract terms contained within the lease. A leased fee generally provides the lessor with the right to be paid by the lessee under stipulated terms, the right of repossession at the termination of the lease, default provisions, and the right of disposition(including the rights to sell, mortgage, or bequeath the property) subject to the lessee's rights, during the lease period. Often, while a property has tenants,the market typically identifies no difference between fee simple and leased fee interests when the leases are short-term or month-to-month. Leasehold interest is that held by the lessee (tenant or renter)trough a lease conveying the rights of use and occupancy for a stated tern under certain conditions. It involves the right to possess the property for the lease period, or to sublease and to improve the property under certain lease restrictions, for the obligation to pay rent, amender possession at the termination of the lease,to remove any improvements the lessee modified or constructed, and abide by the lease provisions. When an assignment involves the valuation of a leased fee interest,the appraiser often must also appraise the fee simple interest. If the rent and/or terms of the lease are favorable to the property owner(lessor), the value of the leased fee interest will usually be greater titan the value of the fee simple interest, resulting in anegative leasehold interest. If the rent and/or terms of the lease are favorable to the terial (or lessee),the value of the leased fee interest will usually be less than the value of the fee simple interest, resulting in apositive leasehold interest. ZheAopiugd of,Rsd Ratae,The Appraisal Institute,Chicago,Illinois 1°Fee Simple interest can bebroken into groups ofpwpaCy interest=,including the economic interests of Leased Fee and Leasehold intaes s, legal Interests such as life estates and easements,physical Interests such as air and subsurface items,and financial interests such as debt and equity Page 20 of 134 APpmgd Report of]101 Cer¢ml Avvwe,Duan ,I w 52001-5016 Extraorrfinary Assumptions An extraordinary assumption is defined by the Uniform Standard of Professional Appraisal Practice as "an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions" Extraordinary assumptions presume as fact otherwise uncertain information about physical,legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. A Special Assumption(SVP)is defined as"an assumption directly applicable to a specific service,which if found to be false, cold alter the opinions or conclusions in an appraisal or review." These assumptions are specific to the assignment, and may include items such as future rentals of a new construction provided with prospective value, or an assumption that if incorrect may change the determined current value or the problem. If any, the appraiser will disclose them, and summarize how their use may have affected the assignment results specific to this assignment. *See the extraordinary assumptions listed forAmerican with Disabilities Act(ADA), unknown environmental conditions, and other limiting assumptions. ** The appraiser makes the extraordinary assumptions that the information provided by the owner and the client, or others, is true and correct since it is relied for value estimates. ***The appraiser makes the extraordinary assumption that the square footage of land and buildings, zoning taxes and assessments,from government entities are accurate and used for the purposes of this report. ****If any condition or quality found different than was assumed by the appraiser, he reserves the right to adjust that data or the market value determined in this report. *****Not anyone who has a copy of this report may use it, and no one may use the report if not an intended user and specifically identified by the appraiser within the report. It is important to understand that when an extraordinary assumption proves to be contrary to the truth, it does not mean the appraiser is"wrong." The appraiser will ascertain that the use of the extraordinary assumption is appropriate given the client's intended use of the assignment results. If the assumption or premise is false, the appraiser is under no obligation to"fix" or"correct" an appraisal,but the appraiser could accept anew assignment that would reflect the different underlying premise. Page 21 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Hypothetical Conditions A hypothetical condition is defined by the Uniform Standard of Professional Appraisal Practice (USPAP)as"that which is contrary to what exists but is supposed for the purpose of analysis defines a hypothetical condition. Hypothetical conditions are conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis, and is presumed true on the effective date, not before or after." U SPAP considers the following language,"a condition, directly related to a specific assignment,which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis" These could include items such as new construction or remodeling additions that would be part of the current value, but are subject to completion. Per U SPAP, if any are found or identified,the appraiser will summarize them"clearly and conspicuously' in the report; label them as hypothetical and summarize how their use may have affected the assignment results. When using a hypothetical condition, the value is not hypothetical. **No hypothetical conditions identified for this appraisal report. Page 22 of 134 APPmssal Report of]101 Cer¢ml Avvwe,Dube ,Iowa,52001-5016 Americans with Disability Act The following information is provided for the clients' knowledge and is not a certification of acceptability and it remains the client or owner responsibility to determine that a property does meet Americans with Disabilities Act(ADA)requirements. If the subject is vacant land,this information does not apply but provides the basis for possible future construction. The ADA became effective in 1992 for firms with more than 25 employees, 1994 with more ftan 15 employees and businesses such as restaurants, hotels, and retail stores. New construction is required to comply after January 26, 1992; and the most recent updates were in 2008. Alterations to a place of public accommodation or commercial facility covered by Title III of the ADA that are undertaken after January 26, 1992 are required to be done in a madmer so as to ensure that, to the maximum extent feasible,the altered portions of the facility comply with ADA. There is a checklist available on a government webpage for further determination of requirements.°3 ADA applies to new construction and alterations of"places of public accommodation and commercial facilities" A "place of public accommodation"is a facility, operated by a private entity, whose operations affect commerce, and which falls within at least one of the twelve categories listed below: 1.An inn, hotel,motel, or other place of lodging, except for an establishment located within a building that contains not more than five rooms for rent or}tire and that is actually occupied by the proprietor of the establishment as the residence of the proprietor, 2. A restaurant,bar or other establishment serving food or drink; 3. A motion picture house,theater, concert hall, stadium, or other place of exhibition or entertainment; 4. An auditorium, convention center, lecture}tall, or other place of public gathering; 5. A bakery,grocery store, clothing store, hardware store, shopping center, or other sales or rental establishment; 6. A Laundromat, dry cleaner, bank, barber shop, beauty shop,travel service, shoe repair service, funeral parlor, gas station, office of an accountant or lawyer, pharmacy, insurance office, professional office of a health care provider,hospital, or other service establishment; 7. A terminal, depot, or other station used for specified public transportation; 8. A museum,library,gallery, or other place of public display or collection; 9. A park,zoo, amusement park, or other place of recreation; 10. A nursery, elementary, secondary,undergraduate, or postgraduate private school, or other place of education; 11. A day care center, senior citizen center,homeless shelter, food bank, adoption agency, or other social service center establishment; 12. A gymnasium, health spa,bowling alley,golf course, or other place of exercise or recreation. "Commercial facilities" are facilities whose operations will affect commerce and that are intended for nonresidential use by a private entity (e.g., factories and warehouses). As a place of employment,if there are less than 15 employees the building may be exempt(except for restaurants, hotels and retail stores), and if 15 or more employees the owner does not need to install improvements for employees if it would impose"undue hardship." An employer does not have to provide a reasonable accommodation if it imposes an"undue hardship" Refer to hltp://www.access board gov/a daaglchecklistlal6 htral for specific guidelines end checklist for ADA requirements Page 23 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Undue hardship is defined as an action requiring significant difficulty or expense when considered in light of factors such as an employer's size,financial resources, and the nature and structure of its operation. The information is provided to assist the owner, client, and any user of this report to understand ADA requirements. Public accommodations that make alterations that affect or could affect the usability of or access to an area of a facility used by the public are required to ensure that,to the maximum extent feasible,the path of travel to the altered area and the restrooms,telephones, and drinking fountains serving the altered area and readily accessible to and usable by individuals with disabilities, including wheelchairs, unless the cost and scope of such alterations is disproportionate to the cost of the overall alteration. Alterations made to provide an accessible path of travel to the altered area are deemed disproportionate to the overall alteration when the cost exceeds 20%ofthe cost ofthe alteration to the area ofthe facility used by the public. When the cost of alterations necessary to make the path of travel to the altered area fiilly accessible is disproportionate to the cost ofthe overall alteration the path of travel shall be made accessible to the extent that it can be made accessible without incurring disproportionate costs. Alterations to a qualified historic building or facility must comply with ADA unless it is determined in accordance with procedures described in ADA that compliance with certain requirements would threaten or destroy the historic significance ofthe building or facility. The appraiser has not made a specific compliance survey analysis ofthe subject property to determine whether it is in conformity with the ADA. For some users it may have an effect on the value and the appraiser reserves the right to review and make any adjustments(if necessary)to the value determined in this report. It is possible that a compliance survey of the property together with a detailed analysis ofthe requirements ofthe ADA could reveal that the property does not comply with one or more ofthe requirements ofthe Act. If so,this fact could have a negative effect upon the value ofthe property. Since the appraiser has no direct evidence relating to this issue,possible noncompliance with the requirements of ADA was not considered in developing an opinion of the value ofthe property. The subject building DOES appear to meet the ADA requirements (or may not have to meet them due to the excessive costs to comply, or are not required), and the appraiser is making the extraordinary assumption that the improvements meet the ADA. If found to the contrary,the appraiser reserves the right to adjust the determined opinion of value in any of the three approaches to value and the final market value if information used from other sources is found to be in error. Page 24 of 134 APPmgd Report of]101 Ce,Sm Avvwe,Dzsbm s s,1owa 52001-5016 Environmental Hazards There are no known indications of potential adverse environmental conditions or materials in the subject or on the site,based on the appraiser review of the Iowa Department of Natural Resources (DNR) Underground Storage Tank(UST and Leaking UST (LUST)Reports."' While there are indications of known underground tanks in the area, and there may have been same in former uses of the property,the appraiser has not identified any known to affect the subj ect property. There is no indication of any known contamination to the subject. However, only a Phase II Environmental Assessment would be able to determine if the subj ect site has any underground contamination,radon, lead paint, or if asbestos materials are present. The appraiser always recommends that such an assessment be completed before transfer of any property that may be suspected of contamination. The TriState Region has a history of lead minting, with old mines and mineshafts located throughout. The appraiser has no knowledge of such mines or shafts problematic to the subject real property. The appraiser has NOT performed any tests for UNDERGROUND CONTAMINATION, RADON, ASBESTOS, or LEAD PAINT. The value determined in this appraisal report takes the assumption that there are no contaminated items having a negative effect of the property. If an environmental condition is identified that was not previously known or provided to the appraiser, with a cost to cure,the appraiser reserves the right to adjust the determined opinion of value in any of the three approaches to value and the final market value. "'Information available on IOWA DNR website,Inds 8programs iowadnrgov tanks/pages/advarced area,with copy of any identified UST or LUST in the addenda or maintained in the appraiser files. Page 25 of 134 Appmssal Report of]101 Cer¢ml Avvwe,Dubuque,lower 52001-5016 Report Type A Scope of Work in an appraisal is acceptable when it meets or exceeds the expectations of the parties who are regularly intended user and uses for similar assignments, and what an appraiser peers'actions would be in performing the same or a similar assignment. The Scope of Work identifies a problem that requires a solution,then determines and performs the Scope of Work necessary to develop credible assignment results, and discloses the Scope of Work in the report. The problem and scope of work process is included throughout the report. The appraiser, at the beginning of an assignment, communicated with the client to gather information for problem identification and from there determine a scope of work based on their training, experience, and judgment to determine a scope of work that produces credible assignment results. The Scope of Work may change during the course of an assignment. Say the assignment starts out to develop only the sales approach,but the appraiser determines the property has rental income,thus the income approach would also apply. Until 1/1/2014, there were three acceptable types of appraisal reports(Self-Contained, Summary or Restricted Use). The primary difference between the Self-Contained Appraisal Report, Summary Appraisal Report, and Restricted Use Appraisal Report was the words "describe", "summarize," and "state" as they are used in the report. In 2014, all three of these report names were eliminated and each written real property appraisal report must be prepared under on the following options and prominently state which option is used; Appraisal Report°5 or Restricted Appraisal Report.1' All of the report types must state the identity of the client, the intended use of the appraisal, the real property interest,the purpose,the effective date of the appraisal,the date of the report, extraordinary assumptions or hypothetical conditions must be clear and conspicuous (and indicate how they affect the assignment results), hmiting conditions and use of the real property. This appraisal is presented as an Appraisal Report,intending to comply with the current reporting requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), adopted by the Appraisal Foundation. "'USPAP Standard Role 2 Reel Property Appraisal,Reporting When the intended users include parties offer Ran the client,an Appraisal Report mwdbe provided Men Reintended users do not include parties offer Ran the client,a Restricted Appraisal Report maybe provided The essential difference between these two op tions is me content and level of information provided. The report and level of information set forth in the Standards are minimums for each report An appraiser most supplement a rep ort to=to ensure an intended user of Re appraisal is not misled,and that the report commies with the applicable content requirements A party receiving a copy of an Appraisal Rep ort or Restnded Appraisal Report do not become an intended user unless the appraiser identifies such party as an intended user as part of Re assignment An Appraisal Reportwill state some information(client,intended users,intended use,real property interest appraised,type and definition of value and me me source of me definition,effective date of me appraisal and date ofRerely oft,the use of me real estate as of me date ofvalue and the e offhe real estate reflected in the appraisal,all c;traordinary assumptions and hypothetical conditions and thattheir use might have affected the assignment results),summarize information or identify Re real estate(physical,legal,economic property characteristics relevant or the assignment), the scope of work used or develop the appraisal,the information analyzed,the appraisal methods and techniques emy,toyed,the reasoning that supports the analyses,opinions,and conclusion,exclusion of any approach(sales comparison approach,cost approach,or income approach)must be explained,the support and rationale for an opinion ofhighest and best use when developed,and include a signed certification in accordance with Standards Rule 203. "`The content of a Restricted Appraisal Report must be consistent with the intended use of me appraisal,and ata minimum state(the client by name or type,a prominent use redridion that lira is the use of Re rep ort to the client and wams that Re rationale forme opinions and conclusions may not b e understood without additional lnf ation in the appraiser work file,intended use,information sufficient to identify the real estate evolved,real property interest appraised,type and definition of value and cite the source of me definition,effedw e date of me appraisal and date of me report,the scope ofwom used to develop the appraisal,the appraisal methods and techniques employed,Revalue opinion and conclusion reached with reference to the work file,exclusion of Re any approach(sales com,arison,cost or income)must b e explained,the use offhe real estate as offhe date of value and the use of me real estate reflected in the appraisal,the opinion ofhighest and best use when developed,all extraordinary assumptions and hypothetical conditions and thatthev use might have affected the assignment results,and a signed certification in accordance with Standards Rule 2-3. Page 26 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 In addition,the report was prepared to conform to the requirements of the Code of Professional Ethics of the Appraisal Institute and the Financial Institutions Reform,Recovery and Enforcement Act of 1989 (FIRREA), Title XI Regulations. This appraisal will present a final reconciliation(conclusion). This report will appropriately summarize or state information to identify the real property and/or personal property involved in the appraisal including the physical and economic property characteristics relevant to the assignment,the Scope of Work to develop the appraisal,the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions including the exclusion of the sales comparison approach, cost approach, or income approach will be explained, and it will include a signed certification. The Cost Approach to Value, Income Approach to Value and Sales Comparison Approach to Value are considered, and if not used in the determination of Market Value the appraiser will explain why in the reconciliation. A final opinion of Market Value will be reconciled from these approaches and any approach not developed or not deemed credible in determining the opinion of Market Value will have an explanation within the report. The Market Value determined m the report is based on using the appraiser explanation of highest and best use,unless otherwise stated. The valuation process is a systematic procedure developed to produce well- researched and well-supported opinions of real property value. The appraisal process consists of a progressive series of steps, beginning with the definition of the valuation problem. This process includes defining the highest and best use. The process proceeds through the collection of data(subject property, market area or residential neighborhood, city, county, state, and regional)pertinent to the scope and market analysis,which includes the selection and application of appropriate analytical approaches, the reconciliation of value indications, and the final opinion of value. The appraiser will choose different points of focus depending on the interpreted needs of the chert and intended user to determine influences on the subject market value. The process is complete with the value conclusion placed in the report. The steps in the process and the methods of analysis are adaptable to many appraisal situations. The valuation process is primarily for Market Value appraisals,but it provides a general framework for most valuation assignments. To understand the opinions presented in this report, the addendums, assumptions &limiting conditions and other data must be read in their entirety. If any data or information from other sources (public or private)relied upon in this appraisal report are found to be different than presented or in error, the appraiser reserves the right to adjust the determined opinion of value in any of the three approaches to value and/or the final opinion of market value, if applicable. Page 27 of 134 Appmgd Report of]101 C,,Tm Aveae,Duaq ,Iw 52001-5016 Identification ofthe Problem The client wishes to negotiate the purchase of the subject property and requires an appraisal of the market value. The client indicated there were no special foams to be completed. The appraiser has considered any jurisdictional rules or laws and none were identified that would influence the ability to comply with USPAP. The AS IS property VALUE FINDING valuation may be used for a total acquisition of the parcel. The Iowa Constitution requires the payment ofjust compensation when private property is acquired for public use. The amount the acquisition agent offers as just compensation for the property will not be less than the amount of the approved appraisal. Any fencing or yard improvements that are removed for the proposed acquisition is considered in the valuation, and there are no outdoor advertising devices in the proposed acquisition. Competency Statement The appraiser qualifications are included in this report, and serve as evidence of competence for the completion of this appraisal assignment in compliance with U SPAP as promulgated by the Appraisal Standards Board of the Appraisal Foundation and professional organization membership such as The Appratsallwaltute. The appraiser has knowledge and previous experience with this property type; combined with the professional qualifications, business,professional and academic affiliations, are commensurate with the complexity of this assignment; and no lack of knowledge or experience that would prohibit this assignment to be completed. The appraiser has appraised real estate since 1984 and has the competency to complete the assignment associated with this report. Refer to the addenda for the appraiser qualifications,previous clients, and types of appraisals previously completed. Value Rounding Statement The appraiser will perform math calculations throughout the report using Excel Computer Program. As a point of clarification, these Excel spreadsheets often use automatic rounding of calculations. However, when applicable, the appraisal will round values to the nearest thousand dollars(or if different will so state)and these features might account for slight discrepancies in rounding. However,the spreadsheet internally calculates for decimal points therefore,the net adjustments are considered accurate for the purposes of the report calculations. Page 28 of 134 APPmssal Report of]101 Cer¢ml Avvwe,DWvque,Zowa 52001-5016 The Uniform Act and USPAp117 In Iowa, Certified and Associate Real Property Appraisers(General and Residential) who provide eminent domain appraisal services are required to comply with the Uniform Standards ofProfessional Appraisal Practice (USPAP), the Uniform Relocation Assistance, andReal Property Acquisition Regulations for Federal and Federally Assisted Programs (Uniform Act), the Iowa Constitution, statutory and case law and state administrative law and policy. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970(Uniform Act) 42 U.S.C. 4601-4655, implemented at 49 CFR 24.302, are considered in this appraisal assignment. The Federal Uniform Act applies to all programs orprojects that are undertaken by FederalAgencies or with Federal financial assistance, and, which require the acquisition of real property or which cause the displacement of any person. The State oflowa has codified the Federal Uniform Act so that in Iowa the Federal Uniform Act procedural standards for eminent domain appraisals are also the State oflowa's procedural standards. It references the Federal Uniform Act of 1970, as amended, which is also known as Public Law 91-646 as implemented in 49 CFR 24.102, 24.103(3) and 24.105. Chapter 543D of the Iowa Code,Real Estate Appraisals and Appraisers, applies to general commercial market USPAP appraisals and to Iowa eminent domain appraisals, all ofwhich must comply with the appraisal standards contained in the Iowa Constitution, statutes,judicial(case) law, and this manual. • Only those eminent domain appraisals that comply with Iowa eminent domain law and this manual may be approved by a Certified General Real Property Appraiser. • Certified General Real Property Appraisers are responsible to identify and comply with required Iowa eminent domain appraisal standards in the performance of an eminent domain appraisal. For all lowa eminent domain Appraisals, the mandatory appraisal requirements are the: • Iowa Constitution,Article I, Section 18 • Code oflowa, Chapters 6A, 6B and 316 and other eminent domain statutes • Iowa Supreme Court interpretations oflowa Constitution and eminent domain statutes • Regulations 761,UIC 111 • Federal Uniform Act and Regulations, 49CFR,part 24 When analyzing property using Iowa Code°8 for assessment, the"following shall not be taken into consideration; special value or use value of the property to its present owner, and the good will or value of the business which uses the property as distinguished from the value of the property as property" The value determined in this report will exclude personal property,FF&E, going concern. goodwill, or business value associated with the owner's use of the property. The scope ofworkfor this assignment does not fall under the Uniform Ac[ 1..Eecerl from the Iowa Appiaval Manual "a The basis ofreel property assessment in Iowa is market value as defined by Iowa Coty 441.21,with information obtained horn the Iowa Real Property Appraisal Manual Page 29 of 134 APPmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Jurisdictional Exception Rule(per USPAP)... An assignment condition that voids the force of apart orparts of USPAP, when compliance with part or parts of USPAP is contrary to law orpublic policy applicable to the assignment." Standards Rule I-4(J) requires appraisers to analyze the effect, if any, of anticipated public improvements, located on or offsite, to the extent that market actions reflect such anticipated improvements as of the effective appraisal date. Article one, section 18 of the Iowa Constitution prohibits consideration of increases or decreases in a property's value caused by the project. It specifically states, "shall not take into consideration any advantages that may result to said owner on account of the improvement for which it is taken. Within the appraisal report, in an assignment involving ajurisdictional exception, an appraiser must: I. Identify the law or regulation that precludes compliance with USPAP, 2. Comply with that law or regulation, 3. Clearly and conspicuously disclose in the report the part of USPAP that is voided by that law or regulation; and 4. Cite in the report the law or regulation requiring this exception to USPAP compliance. Law includes constitutions, legislative and court-made law, and administrative rules and ordinances, regulations include rules or orders having legal force, issued by an administrative agent, and instructions from a client or attorney to not establish ajurisdictional exception. In the case of this problem, additional consideration is given to the Jurisdictional Exception Rule, a body of rules with binding legal force established by a controlling governmental authority (in this case a government entity having the appraisal completed for condemnation purposes), and the Supplement Standards Rule stating that the USPAP requirements can add more requirements but not diminish the requirements (in this case, it is providing a before and after the acquisition value of one parcel and a total acquisition value for both property). It is this appraiser opinion that USPAP requirements and the Jurisdictional Exception Rules (Iowa DOT ROWAcquisitiion Manual) are able to be met in this appraisal report. While the City of Dubuque is the entity completing the proposed acquisition, the acquisition is not part of an Iowa DOTEminent Domain process, and the client has indicated that none ofihe forms typically used in an Iowa DOT acquisition are neededfor this report. In accordance with The Appraisal Operational Manua[, Office ofRight of Way, Iowa DOT, listings do not qualify as comparable sales, in as much as they are not arms-length transactions. It has become typical appraisal practice to include listings since they provide some indications of declining or expanding markets. For the purposes of this repast, the listings provided are for informational purposes only and given no weight in the final estimate of value, since they are not closed transactions. The scope ofwork for this assignment does not include any Jurisdictional Exceptions. 119 EecaPt Gom USPAP Page 30 of 134 Appmssa,Report of]101 CeMml Avvwe,DuGus us,Zowa 52001-5016 MARKETANALYSISAND DEMOGRAPHICS1A The market analysis process should answer the following questions: • What attributes does the subject property offer the market? • Who are the most likely users of these attributes? • Is the subj ect property use needed in the market? (demand analysis) • What is the competition in the market? (supply analysis) • What is the condition of the market? (comparing supply and demand) • How much of this market can the subject capture? It is impossible to estimate the market value of a property without considering the supply of and demand for the property within a specific period. This is especially critical for proposed subdivision projects. Market analysis links value theory and valuation techniques, and documents the supply and demand relationship on which the value estimate is based. Market analysis is also used to identify which use among alternative uses the market supports, and thus helps determine the highest and best use of a property. Inferred analysis is simply the use of historical market evidence or trends in the application of the six-step process. These analysis methods identify trends and patterns and infer expected market behavior. This analysis includes the study of comparable sales for retail value estimates as well as the use of historical absorption trends as a basis for concluding market absorption. Essentially,inferred analysis describes most of the primary data collection and analysis efforts performed by the appraiser in a typical appraisal assignment. As applied in any subdivision analysis and specifically an absorption estimate, the inferred analysis usually involves the direct analysis of real estate sales, days on the market,the percentages of sales price by listing price, and date of sale. 120 Seethe dorm isat addendum area for more current cermwnity information obtained Rom several sources,such as the city,county,chamber, and olha development entities in the Dubuque and Tri State Area,including US Census Bureau,Mood}'s Analytics,and Iowa State University. Page 31 of 134 Appmssal Report of]101 CeMml tivvwe,Dubuque,Zowa 52001-5016 Region and GeneralArea"" This region of the Midwest United States includes the TriState Region of Iowa, Illinois,yand Wisconsin. KS Most consider the City of Dubuque as the Hub City in the TriState Region. Dubuque is easily accessible from Illinois and Wisconsin by way of two bridges across the Mississippi River. The City of Dubuque and Dubuque County, part of the tri-state market area described in this report, are bordered on the east by the Mississippi River with residential, commercial, and industrial development expanding in a semi-circle to the west, northwest and southwest. The TriState Region is considered a trade area that coven three states and five different counties: Dubuque County, Delaware County, and Jackson County (all in Iowa); Jo Daviess County, Illinois; and Grant County, Wisconsin. This area has an approximate radius of 50 miles around the City of Dubuque with a population of over 300,000122 and over 130,000 within 10 miles of downtown. The appraiser has downloaded information from the U. S. Census Bureau for the United States of America,the State of Iowa, Dubuque County, and the City of Dubuque to provide depth of information on population,housing, education, and economic status. Much of the information is located in the addenda area and used in the market analysis or refers to charts in support of decisions in the report. The current population and demographics information for the City of Dubuque,Dubuque County, and the State of Iowa are fisted at the U.S. Census Bureau Statistics (STDB)chart in the addendum. Previous population counts indicate Dubuque County had 86,403 in 1990; 89,143 in 2000; 91,631 in 2006; 92,724 in 2008, 94,612 in 2010, 94,612 in 2011,95,227 in 2012, 95,981 in 2013,96,587 in 2014, and 97,125 in 2015.123 The City of Dubuque occupies approximately 24 square miles and is 675 feet above sea level. The previous City of Dubuque's population was fisted in 1990 at 57,546; in 2000 at 57,686; in 2008 at 57,250 (an increase)and in 2015 at 57,637.124 °1 Refer to the United Slates and Midwest oharactenstics and indicators on the identified handouts in the addendum 'm Dubuque 365 Magazine completed a marketing acedy ofthe Julien Dubuque Region that included portions of Iowa,Illinois,and Wisconsin along the Mississippi Riva near Dubuque 'm U.S.Jose.Bees.is public data that is updated annually,and there are other ezhibits of data provided in the addendum area of He community information that has been obtained f mithis and several other source. Iowa lost a seat in the House of Representatives based on 2010 Census dete alined population " U.S.Deese,Burema statistics web page Page 32 of 134 APpmgd Report of]101 Ce,Sm Avvwe,Dubu ,Iw 52001-5016 The Greater Dubuque Development Corporation(GDDC)reported Dubuque County population growth of 95,697 in 2014(with a benchmark of 93,653),with a goal of 96,500 by 2017. No reported change since the chart below was published. POPULATION GROWTH UPDATE The population benchmark ter Dubuque county is 93,653.As bf March 20]5,the population was 96.370. DUBUOUE COUNTY POPULATION GROWTH I GOAL96,500 vapap aepaa 'a,obp 4z.aaa d ^^� SOURCE.U.S Csnws burcsµPapuWtbn Onivon The appraiser considers Dubuque County to be less than 50%developed and the approximate land uses (outside urban areas)include; 15%single unit residential, 1%multi-unit, 2%commercial, 5%industrial, and the remaining is institutional, agricultural or vacant land. Rural Dubuque County is predominantly a fanning region with level to Billy,but mostly rolling terrain. It is well suited to the production of com, soybeans,livestock, and dairy products. Grains are usually sold at local elevators or trucked to Mississippi River ports such as Dubuque. Dairy products are usually sold to local co-ops for further marketing in Minneapolis, Chicago and other Midwest population centers. Most farmsteads are on all-weather roads, county and state roads, and highways providing good access to all parts of the state and county. Region average daily temperature range is 8 degrees Fahrenheit to 28 degrees Fahrenheit in January, and 61 degrees Fahrenheit to 85 degrees Fahrenheit in July, although there have been extreme temperatures of -35 degrees Fahrenheit and+114 degrees Fahrenheit recorded. The standard date of the last freeze date in spring is May 10, and the standard date of the first freeze date is September 29. The growing season standard is 142 days. Standard annual precipitation is 32.2" with showers most frequent in May and June. The standard snowfall is 40"per year. The Realtor Land Institute Iowa Chapter reports that farm land values as of September 2013 for the Northeast District that includes Dubuque rose an average of 7.5%in Iowa over the previous year form average of$12,925 per acre for high quality, $9,659 for medium quality, $6,220 for low quality, $2,781 for non-tillable pasture, and$2,354 for timber."' A 2014 report shows that land values in Iowa decreased from September of 2013 to March of 2014, and TriState experts predict this is indication of farmland values flattening. The ISU Farmland Values Survey shows reductions in farmland values for 2014, after a decade of increasing values. Refer to the agricultural summary later in this report for more discussion. 125 See the most cuent rental eurvey information at hltp://www.e,atmsim iasfete edudagdMwholefam and/c209 hnnl and Ind,//www.eatemsion iaslate edu/Pubhcetionx 1851 ode Page 33 of 134 Appraisal Report of!101 Central Avenue, Dubuque,Iowa 52001-5016 The Iowa State University (ISU)Department of Economics Retail Trade Analysis Report presents key retail indicators for each of the 99 Iowa counties. The most current copy is in the addendum area, with statistics on sales, population, employment,unemployment, and a comparison with peer group counties and cities. Trends indicate upward population, real nonfarm income per capita, employment and downward for unemployment. The county profile indicates median income of$50,137, poverty rate of 12.1%, and Dubuque County population of 93,653 in the 2010 Census. Poverty rates in the Tristate area were reported by the U.S. Census Bureau for December 2015 at 11.5% for Dubuque County, 15% for Grant County, Wisconsin, and 10.7% for Jo Daviess County, Illinois. Other adjoining counties in Iowa reported 10.8% in Clayton County, 8.9% for Delaware County, 11.3% for Jackson County and 11.6% for Jones County. According to the annual Iowa State University Extension survey (January 2015), Iowa farmland values in 2014 decreased after several years of increase. Farmland value averages reached an all-time high of $8,716 per acre, up from $5,064 per acre in 2010, and$1,857 per acre in 2000. As well, itis noted that Dubuque County holds an average CSR of 68 for use in determining agricultural land values. Rgum 1.Awrage wlue per ears M Iowa farmland. se000 fasoo sww n.wo »u nano sawn sa000 ss.sao saaoo eam xow sxwo saaw u,wo nn uan n.eoo nu an sero swo wr a u +aso rsw ono ism rzo ww :era Souro:lew SNN UnIwnIN I/na Nlw Survry Figure 3.Average cmplaM CSR. . rra w aID ••w-LB-ifR• •an[-]Y-w 7-- _0 . $SIGN $7,962 87Ag1 as ° " 4 n Rt R N R 75 w-un-uu em-nw-am eve-wr-ser x,031 SSSS $SAN `n w �1 agar-w-wa w-am-zN. w-w-am n ®M dAue $4,397 Dm ]] n Page 34 of 134 Appmeal Report of]101 G arud Avvwe,DWruyve,1owa 52001-5016 MarketArea and Local Informatlon126 The subject real estate property is located in the City of Dubuque. The City of Dubuque and Dubuque County are located along the Mississippi River in Eastern Iowa. Illinois and Wisconsin are located directly across the river from Dubuque. The city is approximately 75 miles from Davenport, 281 miles to the Twin Cities, 178 miles to Chicago, 200 miles to Des Moines,393 miles to Kansas City, 335 miles to Omaha and 337 miles to St.Louis.117 The TriState Region is an agricultural marketing center and river port,with many manufacturing and industrial operations. In addition,it provides full financial, commercial, and educational facilities. -------------- vera. . Stl�tMl eM bYp •gyp 0 The City of Dubuque is considered more than 75%developed, and the approximate land uses include; 44%single unit residential, 10%duplex,3%multi-unit, 1%condominium, 10%commercial, 10% industrial, 2%institutional, and 20%as agricultural or vacant land.128 The census boundaries for the subj ect property are located in Census Area 0001.00 in the City of Dubuque and Dubuque County and use for the neighborhood information. The STDB drive time maps for up to 15 minutes for the market area boundaries. Refer to the addendum area for a Census Map, Dubuque City and County community information, and Census info from an executive summary, demographics summary,market profile, census profile, Iowa State University retail and economic trends, and US Bureau of Statistics information for Iowa. °6 A neighborhood is defined as a group ofcomplvneutary land uses. To provide an understanding of the forces affecting a neighborhood,one boundaries dust be set path -Greater Dubuque Development Corporation website wwwgreaterdubuque we °8 This is the appraiser poorpretaton of data based on the Census Area Maps and Zoning Maps for the City of Dubuque,Iowa. Page 35 of 134 APpmgd Report of]101 Ce,Tm Aveae,Dub q ,Iw 52001-5016 The following features identify the census boundaries and the STDB map identifies drive times (15 miles) around the subject for additional information of the entire market. This neighborhood is considered over 75%developed,with land uses of 45%residential, 10 commercial, 10%industrial, and 20%institutional or vacant and undeveloped land. Refer to the addenda for demographic, income, population, and housing information applicable to this census tract. To the North: Rhomberg Avenue &East 20th To the East: Mississippi River To the South: Dodge Street To the West: Bluff Street A I •. 4;nGr.� I'v il: I 000701 n jf 000].02 Page 36 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Market area and neighborhoods tend to run a four-stage fife cycle, as follows, • Growth: Typically, growth is a period of development during which the market area or residential neighborhood tends to attract apositive response referencing the public. • Stability: Typically, stability is a period that evidences general equilibrium with stable pricing noted. • Decline: Typically, decline is aperiod that evidences aging with prices tending to soften. • Renewal/Revitalization: Typically, renewal/revitalization is a period that evidences renewal, new growth,modernization/rehabilitation of existing properties and most often increasing price levels. Market area and neighborhood growth cycles may take between 50-years and 100-years to complete,but are often viewed in shorter terms in some aspects of use and value such as 1-year to 5-year terms of comparison. Items researched include comparison of similar property average/median selling prices over time,listing prices over time, days-on-market over time, construction costs over time,rents over time,tax assessments over time,inventory over time and others as determined reflective of the market. The subject immediate market area or residential neighborhood is stable and moving toward growth based on the renewal and revitalization of the Port of Dubuque and the Millwork District. Several of the property sales and renovations in the immediate area are directly attributed to the rezoning of the Millwork District in 2010 from mostly industrial to planned commercial uses. Some of the sales were demolished as part of new intermodal transportation hub and others are planned to be part of more new parking ramps or renovations for allowable uses. Typically,the area increased values appear to be based on adjoining property owners buying adjoining or nearby property as part of planned future expansions. There have been many grants and credits programs available, but not all projects meet the criteria for their use, and that has influenced the increased prices of some desirable property. In conclusion, the subject overall market has remained stable through the national Great Recession, even though the entire region had some local affect from residential foreclosures they are waning and values showing steady recovery and increases. The overall region has moved towards stability(partly due to improved economy)and some growth. Items such as transportation, utilities,government, amenities, education, employment, and economic data are discussed in the following sections. Page 37 of 134 AVpmssa,Report of]101 Cermml tivvwe,Dubuque,Zowa 52001-5016 TrN portafion 129 Highway 20 is currently four-lane from Galena, Illinois through Dubuque and Waterloo connecting to Iowa Highway 218 & Interstate 380, then onto Ft.Dodge, Iowa and Interstate 35,with eventual plans for its completion westward across the entire State of Iowa. Illinois continues planning for the eastbound expansion of Highway 20 to a four-lane highway between Dubuque and Rockford connecting to Interstate 39 and 90, and into Chicago. Highway 151 provides a southwest four-lane highway from Dubuque to Cedar Rapids, and north into Wisconsin connecting to Interstate 90 and 94 with access to Madison. Highway 61 south of Dubuque has four lanes to Davenport that connects to Interstate 80 and Interstate 74, approximately 55 miles south of Dubuque. Highway 61 expansion included new access roads into and out of the Dubuque Regional Airport. Highway 52 is a north-south two-lane state highway that follows near the Mississippi River towns of Iowa and into Minnesota. There are several bridges crossing the Mississippi River in the area. These bridges include the Julien Dubuque Bridge (Highway 20) and the Dubuque Rail Bridge to East Dubuque, Illinois; the Dubuque Wisconsin Bridge (Highway 15 1)to Kieler, Wisconsin; the Black Hawk Bridge in Lansing, Iowa; the Savanna-Sabula bridge between Sabula, Iowa and Savannah Illinois; the Sabula Rail Bridge; the Lyons- Fulton Bridge and Chicago&Northwestern Railroad Bridge from Clinton, Iowa to Fulton, Illinois; the Marquette-Joliet Bridge from Marquette, Iowa to Prairie du Chien, Wisconsin; and the Fred Schwengel Memorial Bridge (I-80)from LeClaire, Iowa to Rapids City, Illinois. Rail, trucks, and barges serve the three state regions and the area has j et service available at the municipally owned Dubuque Regional Airport, 6.5 miles southwest of the City of Dubuque. The flights provide regional connection service to Chicago. American Airlines, as American Eagle Airlines,has served the airport as the sole commercial airline since 2004, and it continues to set or maintain record enplanements. Within a one and one-half hour drive of Dubuque,there are airports at Moline, Illinois, Cedar Rapids, and Waterloo, Iowa,which offer flights on most of the major airlines through regional carriers. The Dubuque Regional Airport is the primary airport for commercial service in the TriState Region. Other cities with airports include Clinton(enhanced service), Maquoketa(general service), and Manchester(basic service). In recent years,the airport has seen continued expansion of the runway, several new maintenance buildings, and the terminal received upgrades(jet-bridge). The airport has two hard surface runways, including an improved Instrument Landing System HE S)for flight landing and take-off capabilities during inclement weather. The University of Dubuque offers aviation degrees and flight instruction operations at the airport. In 2013, construction began on a new airport terminal that will have expanded jet bridge capabilities and larger baggage and amenities areas when completed in 2016. The old terminal is planned for use by the University of Dubuque Aviation Department for flight operations and classrooms. 19 Based on multiple sources and observations over die past fev,decades,including conmwnity information available from the city,county,slate and pelletal entities Page 38 of 134 Appmssal Report of]101 C ar,,Avvwe,Dubuque,Zowa 52001-5016 Rail service in the area has four rail carriers,including the Burlington Northern Santa Fe, the Iowa Chicago Eastern,the Canadian Northern and the Union Pacific. There continues to be discussion and efforts are underway to resurrect rail passenger service from Chicago to Dubuque and further into Iowa. The Kennedy Road Corridor and the west side of Dubuque remains a maj or commercial, office and retail- shopping district for the City of Dubuque. The Northwest Arterial expansion in the past decade increased commercial construction expanding it into a major commercial district and is expected to be the major corridor on the west side of the city. The City of Dubuque provides public transportation for parts of the city.1' Ut l lies The City of Dubuque provides municipal water and sewer service to most properties within the city limits, and there are private wells for owners in the county. The multiple well systems have an elevated storage capacity of 18,500,000 gallons per day, and 20,000,000 gallons per day of capacity for the water plant. The average water consumption is 7,500,000 gallons per day,with apeak of 13,000,000 gallons per day. The secondary type of sewage treatment plant serves over 99%ofthe community,with an average load of 9,200,000 gallons per day, a peak capacity of 32,000,000 gallons per day, and a design feature for 15,000,000 gallons per day. Alliant Energy Company, Maquoketa Valley Electric Company, and local municipal electric companies serve the general area with electricity. Alhant Energy is the major Dubuque City and County provider. Century Link Telephone Company provides local telephone service. Dubuque has fiber optics cable, SS7 service, ISDN lines, Tl-DSl lines,trough local cellular service companies and local internet service providers. Black Hills Corporation provides natural gas for the area,with Northern Natural Gas Company as the major pipeline server. 10 Current routes available on the cities web page,wwwcity ofdubuVe org Page 39 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Gwernment The City of Dubuque has a CounciUManager/Ward foam of government(4 wards, 21 precincts)with a full-time city manager and part-time city council(mayor and 6 council members). Dubuque City Council Wards z ``j� a _ T Jneis Dubuque County has a full-time supervisor(3) and clerk form of government. There are city and county zoning ordinances. The fire class code is tree in the City of Dubuque and 10 outside of the city, and more than 95%of streets in the City of Dubuque are paved. The Iowa Department of Revenue issued an Assessment Limitations Order, or"rollback," on property values in Iowa in November of 2013. The Order adjusts the property values used by local governments to compute property taxes for agricultural,residential, commercial, and industrial property. While the Department issues an Assessment Limitations Order each year, this year's Order is notable in that it implements the first phase of Govemor Branstad's 2013 Commercial Property Tax Reform package, 2013 Iowa Acts Senate File 295. Prior to the 2013 legislation, state law allowed no more than a four percent increase from year to year in the taxable values for agricultural,residential, commercial, and industrial property classifications. The city had a Moody's bond rating of"AA" for over 15 years,which was increased to Aa2 in 2003 (the second highest rating in the state)and adjusted again in 2010 to Aal (second highest rating available)in 2010. In late 2013, the water revenue bond rating adjusted downward from Aa3 to Al. However, according to City of Dubuque Finance Director Ken TeKippe, Moody adjusted the city rating to Aa2 (third highest overall rating)in 2014 due to high debt burden and this rating is under protest by city officials. There is concern the rating may lead to higher insurance rates on the city debt. The adjustments in ratings uses new methodology that gives less weight to economic factors, and TeKippe believes the rating will have little impact since it would only apply to new debt for the city. In 2014,the city bond rating was lowered from As 1 to Aa2. Page 40 of 134 APpmssal Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 In 2015,Moody has lowered Dubuque credit rating for bonds in support of the North-end flood mitigation project, from Aa2 to Aa3. This reflects the city declines in fund balance and cash reserves, as well the very high debt burden relative to other As rated agencies. The city sated that the Aa3 level is still a great rating and the downgrade was expected. Other area city ratings include Cedar Falls at Aal, Waterloo at Aa2, Cedar Rapids at As 1,Davenport at Aa3, Rockford at Al and Des Moines at Aaa. Chicago's bond rating was lowered to junk bond status by Moody. Total sales tax in Dubuque County is 7%(Iowa increased state sales tax to 6%in 2008). There are no personal income taxes for the city or county of Dubuque. Of the nine largest cities in Iowa, Dubuque historically has some of the lowest percentages of legal debt margin. At the August 2014 City Council Goal Setting session,the following year 2029 Vision, Mission Statement,goals and agenda was established for the City of Dubuque; "2029 Dubuque Vision Statement —The city of Dubuque is a progressive, sustainable city with a strong diversified economy and expanding global connections. The Dubuque community is an inclusive community celebrating culture and heritage and has actively preserved our Masterpiece on the Mississippi. Dubuque citizens experience healthy living and retirement through quality,livable neighborhoods with an abundance of fun things to do; and are engaged in the community, achieving goals through partnerships. Dubuque city government is financially sound and is providing services with citizens getting value for their tax dollar" Mission Statement-The City's mission is to deliver excellent municipal services that support urban living, and a sustaimble city plan for the community's future, and facilitate access to critical human services which result is a financially sound city government and citizens getting services and value for their tax dollar. Five-Year Community Goals for a Sustainable Dubuque are Economic Prosperity, Social/Cultural Vibrancy, and Environmental Integrity. Five-Year City Goals are Planned and Managed Growth, Partnering for a Better Dubuque and Improved Connectivity: - Transportation and Telecommunications. Five-Year Organizational Goal is financially responsible City Government and High Performance Organization. The Management Agenda for 2014-2016 includes goals of economic prosperity, environmental ecological integrity, social cultural vibrancy, planned and managed growth, collaborating for a better Dubuque, improved connectivity—transportation and telecommunications, financially responsible city government and high performance organization, and major projects. Page 41 of 134 APpmed Report of]101 Cer¢ml Avvwe,Dubuque,lower 52001-5016 Policy Agenda 2014-2016 includes Top and High Priorities: (both in alphabetical order) Top Priorities: Arts and Culture Master Plan Central Iowa Water Association; evaluation, direction and funding City Staffing Level; evaluation, direction and funding Five Flags Center; evaluation and direction Inclusive Community; action plan Police; review best practices Street Improvement Program; funding High Priorities: Annexation; direction on actions Emerald Ash Borer, Policy, Program and Funding Housing Code and Inspections,review,update, upgrade Indoor Aquatic Center Port of Dubuque Park, development Skate Park Workforce Market Rate Housing Education The Dubuque Community School District13' has elementary schools,junior/middle and senior high schools in the public school system; and the parochial school system includes elementary schools and one high school in Dubuque. The West Dubuque Community School District13' covers the remaining portion of Dubuque County outside City of Dubuque. The county public system has six elementary schools (including pre-school), one middle school, two high schools, and one alternative education program. The parochial Catholic school system has seven elementary schools, and one high school in the city; and several elementary schools and one high school. The Lutheran community has an elementary school. Advanced education includes the University of Dubuque,Loras College, Clarke University, University of Dubuque Theological Seminary, Wartburg Theological Seminary, St. Pius X Seminary, Emmaus Bible College & Capri Cosmetology College; all located in Dubuque, Iowa. Others include Northeast Iowa Community College with a Peosta& Calmar Iowa campus, Capri Cosmetology College, Southwest Wisconsin Technical College in Femdrnore, Wisconsin; Divine Word Seminary in Epworth, Iowa; and the University of Wisconsin in Platteville. All major state (Iowa)universities are within approximately four-hour's drive ofDubuquel" "'Public schools include Audubon Elementary School,BryantElementary School,EisenhowerElernentzry School,Fulton Elementary School, George Washington Carver School,Hand-N-Hand Early Childhood Center,Hoover Elementary School,Irving Hernentary School,Sohn F. Kennedy Elementary School,Lincoln Mencentary School,Marshall Mencentary School,PrescottElementary School,Sag,Ille Mencentary School and Table Mound Elanentary School,Thomas Jefferson,Washington and Roosevelt Middle High Schools,Dubuque Senior and Hernps[ead Senior High Schools,Catholic schools include Holy Ghost,Resurrection,SL Anthony,SL Columblalles,and Our Lady of Guadalupe Mencentary Schools,Maxxuchclli Middle School and Wanert Catholic High School "'West Dubuque schools include Bernard Elementary,Cascade Elementary,Dyerrville Elementary,Epworth Elernentary,Drexler Elementary, Epworth Early Childhood Center,DrexlerMiddle School,Western Dubuque High,and Cascade High County parochial schools includeAquin (Cascade),BalltowNshersill Consolidated,Xavier(DyerP,hle),Seton(Epworth,Farley,and Pcosta),RHCL(Rickardsville,Holy Cross,and Luxernburg),Hennessy Have,Vienna,Petersburg),St Paul(Worthington),and Beckman High(Dyarville) Public universities include University oflice ,Iowa State Un,eratg Drake Un,ersitg and University of Northern Iowa. Page 42 of 134 Appmead Report of]101 C err,,Avvwe,Dubuque,zowa 52001-5016 Amenities Dubuque County has three accredited general hospitals (Mercy Medical Center Dubuque with 272 beds, Finley Hospital with 117 beds, and Mercy Medical Center Dyersville with 25 beds),two medical practitioner centers, several financial institutions (over 30 facilities with 14 different institutions), more than 52 different religious facilities, three theological seminaries, one daily newspaper, several weekly & monthly newspapers and magazines, areatelevision coverage through two Eastern Iowa stations, a cable company with over 92%urban coverage, and more than 30 area radio stations. Employment and Economic Data 34 The economy in the TriState Region of Iowa, Illinois, and Wisconsin has steadily improved over the past twenty years,though there has been some stabilization in the past few years based on national impacts, with some increases returning over the past two years. The area has not typically seen the large economic increases in values or the decreases that often follow, min 2006-2010, in the national economy. Total taxable sales continue to rise,while inflation has remained lower than national levels during the past several years. There has been strong and continued growth over the past ten to fifteen years, with emphasis in retail sales,home furnishings, service oriented businesses and tourism. The TriState Region has seen an unprecedented building boom in the past twenty years with others expected, underway or completed in the past few years include: • ethanol or biodiesel plants (Dyersville,Manchester, Farley), • numerous residential development projects in and out of the city limits, • regional shopping center on 38 acres of the old Farmland Foods meatpacking plant, • multiple development in the Port of Dubuque, • Portside Plaza 400,000 square foot$63 million project, • $55 million for 35,000 square foot casino expansion, • $38 million expansion of the National Great Rivers Center, • $25 million parking ramp with 1,130 stalls, $6.5 million redevelopment of the old Star Brewery, • $3 million corporate headquarters for Durrant Group Architectural and Engineers in the old Adams Company (company closed 2012 and building is for sale/lease) • $5 million distribution center with 160,000 square foot operation for Kendall/Hunt Publishing, an 11,000 square foot financial services building for Kunkel Bounds &Associates, • $900,000 building with 11,255 square feet of office lease space for Entegee Technical Group, • $43 million dollar rehabilitation of the downtown Roshek Building, • Flexsteel Industries headquarters building in Port of Dubuque, • IWI Auto Parts Distribution Center, Green Auto Parts Distribution, • FedEx Distribution Center located in the industrial park on the west side of the city, • Camoplast Solideal $3.4 million expansion in Peosta, • Asbury $3.8 million municipal building, • Bee Branch Watershed Project(removal of many residences and businesses on the north end), • $3 million water tower in Asbury in 2013, and • renovation that continues in the Dubuque Millwork District and Lower Historic Main. r'Information in this section is based on the appraiser knowledge of the area,discussions with area residents(including owners,developers, contractor,reel estate brokers and appraisers),and Gom local/area newspapers,City of Dubuque,Commwity Quick Reference,Chamber of Commerce and Conic.Bureau Page 43 of 134 APpmleal Report of]101 CeMml Aveuw, Dubugw,Imva 52001-5016 Around the TriState Region, Platteville Wisconsin...has seen more than 40 businesses move to or expand in the past decade after the expansion of Highway 151 from a two-lane to four-lane highway in 2005. Local officials and business owners indicate commercial businesses include Walmart in 2006, Menards in 2007, and Goodwill Industries in 2008 making it a regional retail hub. Grant County has seen or has expansion underway in B oscobel, Cuba City,Fennimore, and Lancaster to the benefit of the residents in the entire region. The Iowa DOT renewed Highway 20 corridor preservation,in place since 2006, through 2018,that any application for building valued at$25,000 or more, a subdivision plat, or a proposed building permit will be reviewed by the Iowa DOT withm 30 days. Employment Index The Department of Labor Cost of Living Composite Index(Midwest Urban, Table 10)was 144 in 1994 and 182.6 in 2004(a 38.6 point increase or 26.8%), 213 in September 2010, 219 in June 2012(with All Cities at 229), 223.049 for May of 2013 (an increase of 1.8%over the previous year), 238.343 for June 2014, 223.550 overall(223.624 for cities 50,000 to 1,500,000)for March 2015, 225.953 in July 2015, 225.830 in August 2015, and a decline of 0.3%in September of 2015 to 225.184. Dubuque County employment1. was 53,740 for October 2015, 55,080 in 2014, 52,540 in 2013, 52,462 in 2012; 52,160 in 2011; 50,858 in 2010, 50,031 in 2009; and 50,048 in 2008. See the chart below showing the annual fluctuation in employment levels during the year. Emewsea M 70k 60k 40k M^..•.W� W�'� 30k 20k 10k 0 1990 2000 2010 Dubuque County population has remained over 90,000, and the unemployment rate has a 9-year average of 3.5%(lowest was 1.7%during October 1999 and previous highest was 6.5%in March 1996, with national trends stabilizing between 6%and 10%). As a comparison over the last few years, the appraiser is providing U.S.Bureau of Labor Statistics"' reports for several Iowa county unemployment rates for 2010 to current rates,"s - October 2010: United States at 9.5%; Counties -Dubuque 6.1%,Jackson 7.1%, Jones 6.1%, Linn 6.1%, Delaware 5.3%,Buchanan 6.5%, Clayton 7.2°%,Fayette 7.2°%, Allamakee 8.1% and Winneshiek 5.1%. 135 Telegraph Herald,Crowth Spurt,mut Neighboring Commrmities thinking creatively by Craig Reber,February 17,2013. 136 Refer toUtp.//unemplo}menhates.carea'hmds.cem/I/2287/Dubuque-County-IA �n Refer to the US Department of Labor Bureau ofLabor Statistics website Ur d/www.bls.gov/eag/eagit hi n. 138Iowa Workforce Development website Ur//iwiniwdstate it us/pubs/etab les/memploymentates.p df was used for data Page 44 of 134 -------------------------------------------------------------------------- Appraisal Report of1101 Central Avenue,I bugue,Iowa 52X1-5016 - June 2011: United States at 9.1%; State of Iowa 6.1%;Counties-Dubuque 5.6%, Jackson 7.1%, Jones 5.8%, Linn 6.1%, Delaware 5.3%, Buchanan6.1%, Clayton 6.5%, Fayette 6.5%, Allamakee 7.0% and Winneshiek 4.8%. - December 2012: United States at 7.8%; State of Iowa 5.6%; Counties -Dubuque 4.8%, Jackson 5.2%, Jones 6.0%, Delaware 4.5%, Clayton 6.3%, Fayette at 5.9%, Buchanan at 5.3%,Allamakee 7.3%,Winneshiek 5.2%, and Linn at 5.3%. - November 2013;Unites States at 7.0%; Iowa 4.4%;Counties- Dubuque 4.5%, Jackson 4.3%, Jones 4.5%, Delaware 3.3%, Clayton 4.3%, Fayette at 4.9%, Buchanan at 3.8%,Allamakee 4.7%,Winneshiek 3.0%, and Linn at 4.2%. - January 2014;Unites States at 6.6%; Iowa 4.4%; Counties -Dubuque 5.6%, Jackson 7.7%, Jones 8.2%, Delaware 5.1%, Clayton 8.3%, Fayette at 6.7%, Buchanan at 6.1%,Allamakee 8.6%,Winneshiek 6.8%, and Linn at 5.3%. This provides a seasonal rate typical of December to January for increased levels of unemployment. - May 2014;United States at 6.1%in June; Iowa at 4.3%; Counties-Dubuque 3.8%, Jackson 4.7%, Jones 4.3%, Delaware 3.3%, Clayton 4.5%, Fayette at 4.5%, Buchanan at 4.4%, Allamakee 5.1%,Winneshiek 3.6%, and Linn at 4.2%. - November 2014;United States at 5.8%; Iowa at 4.5%;Counties- Dubuque 3.5%, Jackson 4.1%, Jones 3.6%, Delaware 3.0%, Clayton 3.8%, Fayette at 4.4%, Buchanan at 4.7%, Allamakee 4.8%,Winneshiek 3.3%, and Linn at 3.9%.139 - March 2015;Counties- Dubuque 4.2%, Jackson 5.4%, Jones 5.8%, Delaware 4.4%, Clayton 5.7%, Fayette 5.8%, Buchanan 5.3%,Allamakee 6.5%,Winneshiek 5.1% and Linn 4.2%. - July 2015,United States 5.3% and Iowa at 3.8%. - December 2015;United States 5.5%; December 2015 for Iowa 3.6%,with counties listed below. X39 Refer to website for Iowa Unemployment rates at hfp://iMn.iwd.Aate.ia.us/pubs/etables/unemploymentrates.pdf Page 45 of 134 Appraisal Report of 1101 Central Avenge,Dubuque,Iowa 52 001-5 01 6 The US employment to population ratio and participation rate is in the following chart, obtained from the Calculated Risk Blog web page. Employment Population Ratio and Participation Rate MRmmdon —Employment-Population Ratio —PaMdopa[ion Rafe 6]% 6 2 0% 9 O 00 n 59% — — — — — — — — — 0 c 0 T — — 0 n E m 55% — 53% . ea;edae..........e.re�$"vvre99g: y$ysX�$"a"aa$ma4$3Ssaaas.. _ ;asssaaes.com/ aa;ssxa;;sxxa;;sxx l M1ttp://www.olculatedriskblog.com/ Information from the Calculated Risk Blog indicates that US employment is high and unemployment was at 6.3%for the US, as indicated in the following chart of employment population ratio for 25-54 year olds. Employment Population Ratio and Recessions Recession —Employment-Papulation Ratio,25-54 yrs. —Participation Rate,25-54 yrs. 65% 60% --- — ]5% �zV 65% 60% n^nnnnk°nm"m"'m"'gwgO1R a"'"8 as a$aq"gm4mm etiry mem eeeeaeeeaeeeaeaeaeaeatata. eee.aeftaeaeaeeg. . . ...ggft"atft . .. .. .. .. .. .. .. .. . . .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. . http://www.calculatedrizkblog.com/ Page 46 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Industrial Manufacturing in Iowa had continuous growth from 2001 to 2006, dipped in 2007-2008, and plummeted in 2009 (24%)and 2010 (1%)before stabilizing and seeing recovery in 2011 with 200,773 jobs(16.6%of all jobs in Iowa), and that stabilization has moved toward expansion with increases continuing into 2014 and expected to continue into this decade. In 2014,the City of Dubuque implemented new lease terms for land lease agreements in the city, with projected annual revenue to increase from 2010 of$100,000 to 2015 of$1,600,000 per year. The Dubuque City Council approve long tern leases with Gavilon Grain for 14 acres, Newt Marine negotiated a new lease in the industrial park near Dove Harbor and as other leases come due in 2015 they will be at market rates. Previous leases did not cover the costs of upkeep or taxes on many and the companies response appears to be positive for the continuation of existing businesses to remain profitable. Leases in the area include Gavilon,Hodge Companies,Newt Marine, and Flint Hills Resources on more than 50 acres of riverfront and wharfage land. Industrial expansions throughout the TriState Region included Kendall-Hunt Publishing Company, Art's Way Vessels, Medline Industries, Vanguard Countertops, ITC Transmission, Hormel Foods, American Tank and Fabrication, Spiegel Family Realty Company, Deere & Company added a skid-steer loader production line to John Deere Dubuque Works, and Quebecor World Dubuque. Important manufacturing industries include John Deere Tractor Works (Dubuque), Mi-T-M Corporation (Peosta), Captive Plastics(Peosta), American Freezer(East Dubuque, IL),Eagle Window&Doors Manufacturing, A.Y. McDonalds Manufacturing, Hormel,Rite Hite Industries, Times Mirror Publishing, Flexsteel Industries,Nordstrom Distributing, Morrison Brothers, and other companies in Dubuque. In 2014,Rockfarm Supply Chain Solutions publicly announced it would move its new corporate offices to Dubuque with an expected employment of 50 people by 2018. The firm plans to construct a 10,000 square foot office building in the Dubuque Technology Park in 2014 at a cost of$2.5 million. The company will relocate its East Dubuque, Illinois, employees after construction of the building is finished in 2015. Rite-Hite Corporation announced 40 new jobs in 2014 at its Dubuque plant's second shrift. Other company subsidiaries will continue to lease the former building in East Dubuque, Illinois,thus having no negative impact to that area. The Iowa Economic Development awarded$336,000 in financial assistance and$62,400 in tax benefits to the company, with the requirement to have 48 Dubuque jobs with wages of $19.73 per hour. The City of Dubuque will offer 10-year tax incremental financing worth$558,000. The Dubuque Technology Park, located along the south of city limits,includes development by Windstream, Sedgwick, Straka Johnson Architects,Entegee Engineering Technical Group, Cartegmph, Rockfarm, McKesson Relay Health, and Kinkel &Associations. According to an October 2014 Telegraphy Herald newspaper article, this puts the development at about half after 15 years. While the Tri-State Region shows growth and expansion in many areas, manufacturing is one area that has seen decreases in the past decade, along with the national economic impact, even though the above report shows favorable future expected for the area. The TriState Region also includes industrial parks throughout Dubuque County. The Peosta Industrial Pak tenants include Swiss Colony,Peosta Warehousing and Logistics,Bodine Electric,Mi-T-M Cleaning Systems,Premier Tool and Manufacturing Decker Precision Machining Roadway Express, Myers-Cox, Camoplast, Captive Plastics, Die-Cast Promotions, Farber Bag First Gear, Fed-Ex Freight and Sch ieffer International. Dyersville, Cascade, and Farley have industrial parks with a few tenants in each. Page 47 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 The Westside Industrial Park in Dubuque, has continuously developed and expanded since 1990,with expansions into what is now the Dubuque Industrial Center West, Dubuque Industrial Center North, and the Dubuque Industrial Center. There are several hundred acres available for expansion with new construction occurring every year, and some of the businesses include: • Nordstrom Distribution Center, • Westmark Corporate Center, • Hodge Company, • Hormel Food, • Medline Industries, • Vanguard, • Alham Energy, • Giese Manufacturing, • McGraw-Hill, • American Tank and Vessel, • Oral Arts Dental Laboratory, • Dubuque Screw Products, • Art's Way Vessels, • Theisen Supply, • 7G Kirchoff Distribution Center, • Qwest, • Uelner Tool and Die, • First Supply, • A. Y. McDonald, • Weber Paper Company, • Ainley Kennels and Fabrication, • Horsfield Construction, • United State Postal Service, • Metrix Company, • Central Transport, • IWI Auto Parts, • Green Auto Parts, • Fed Ex, and • the Dubuque Humane Society. The Kerper Industrial Park area saw employment drag as companies departed the city or relocated elsewhere in the city. Two larger businesses closed doors earlier in the past decade and have remained vacant or under occupied. Quad Graphics and Thermo Fisher Scientific closures resulted in over 500 jobs lost. These properties have 387,000 square feet and 189,000 square feet,respectively. GDDC states that the buildings do not meet current industrial needs and that it is often better and less expensive to build new for includes higher ceilings and more wide open layouts. Thus,the City of Dubuque has developed new industrial west-side subdivision development, including the 2015 announcement to purchase 166 acres of farmland for$2 million,plus another 125 acres for$2.12 million, and 36.5 acres for$1.35 million. Page 48 of 134 APpmgd Report of]101 Ce,bre Avvwe,Dubuque,Zowa 52001-5016 Tourism Dubuque tourism continues to grow into a multi-million dollar industry, according to Dubuque Area Convention and Visitors Bureau president Keith Rahe, in an annual 2014 report to the City of Dubuque Council and Mayor. The report indicated almost 1.9 million people visited Dubuque in 2013. Rahe stated that the strength of the business climate and the travel industry success in the tri-state area combined to see the organizations budget increase, as indicated in the 2015 budget income of$1.2 million. The report from the Dubuque Area Convention and Visitors Bureau for 2013 indicates 1.9 million visitors to the area, 70,000 convention delegates,46,388 visitors to sporting events, 13,808 visitors to the Dubuque Welcome Center, $1,843,433 hotel-motel tax revenue and a$320.5 million local tourism impact in 2012. The tourism bureau,in 2014, split from the Dubuque Area Chamber of Commerce under a nine-member board to lead the new independent travel bureau. The Dubuque City Manager Mike Van Milligen, a member of the board,indicated that tourism has become big business in the past decade,with tourism visitors almost tripling and it supports jobs in the community with more restaurants and entertainment options. According to the Iowa Economic Impact Study,Dubuque County generated over$319 million in tourism for the state. This is more than 70%increase over the past ten years and is expected to continue. The City of Dubuque devotes 50%ofits hotel/motel tax revenue back into tourism. The Dubuque Area Convention and Visitors Bureau expect continued increases in tourism from out-of-town visitors. Iowa Division of Tourism reported that Dubuque County annual tourism continues to climb with over 1.6 million visitors and more than$253.2 million spent in 2007, a significant increase even with the stational economic trends.14' This regional trend continued into the firat decade of this century.141 According to the 2011 Iowa Tourism report, domestic travel generated 63,400 jobs in Iowa during 2011, a 2.2% increase over 2010. Dubuque County ranked sixth out of 99 Iowa Counties for domestic travel impact in 2011 (behind the larger population counties of Polk Link, Scott, Johnson, and Black Hawk). The report states that domestic travel numbers continue increasing in this decade. The Dubuque area received six awards at the 2010 Iowa Tourism Conference. hithe Dubuque area the Dubuque Convention&Visitors Bureau was awarded the 2010 Tourism Community of the Year Award (population more than 10,000), the 2010 Tourism Consumer Publication of the Year(population more than 10,000)for the Visitors Guide and the 2010 Tourism Website of the Year for www1raveldubuque.com; and the National Mississippi River Museum&Aquarium received the 2010 Green/Sustainable Award.142 The 2009 Economic Impact of Travel on Iowa Counties Report, a study prepared for the Iowa Department of Economic Development's Iowa Tourism Office by the Research Department of the U.S. Travel Association in Washington,D.C.,released in October of 2010. "TMs report is akey barometer for us. We are delighted that annual tourism expenditures continue to rise. Itis a key statistic that is validation of the tremendous efforts of the Dubuque area to welcome tourists," stated Kelley Schiesl,Vice President of Marketing at the Dubuque Area Chamber of Commerce and Tourism. In 2008, there were expenditures of$253.66 million in tourism in Dubuque County. In 2009,the expenditures increased to $254.03 million. Tourism is a$6.1 billion industry in Iowa, employing more than 63,000 people statewide and generating more than $312 million in state taxes. 10 Telegaph Herald,27 October 2008,"Comity tourism tops$253 million dollarf Refer to most anrenthomes information,as well as the commmiity information located N the addenda area,for additional data "'http//www mission¢eative biLblog/postimmix dobogoearea-named- miterbf-six-towismawardstoday-and-statisticsseleased-show- tomsmependitwsgrowt mdobogosmmity Page 49 of 134 APpmed Report of]101 Cer¢ml Avvwe,Dubuque,Zowa 52001-5016 Dubuque's downtown has seen the renovation of historical inns and numerous bed and breakfast inns. Tourism continues to be strong in the overall Tri State Region, though some weakening was noted in late 2001 (the attacks on America on 9-11-01 had some impact)trough early 2008 with the national recession, with stabilization and recovery with to small increases in the past few years. In recent years,there have been several new lodging establishments constructed, and several had seen downward trends in bookings(especially since the 9/11 attack)due to changes in tourism,but current trends show resurgence in occupancy rates. With the construction of America's River Project and other tourist destinations in the region, the lodging market has had a positive long-term projection for increased tourism.143 A number of bed and breakfast inns in the region ceased operations due to changes in the tourism market, management, or location; and recently there has been increased interest in reestablishing some as other lodging occupancy rates increase. Many of the major hotels/motels in the TriState Region have completed renovations and/or major upgrades in past ten years,with newer construction since the mid-1990's including the Grand Harbor Hotel&Water Parkin the Port of Dubuque, Country Inn& Suites,Hampton Inn,Mainstay Suites, Dyersville Comfort Inn),Peosta Americinn, Super 8 Hotel in Boscobel, Country Inn& Suites in Platteville, and many in Galena, Illinois- Irish Cottage Inn&O'Dowd Tavern, Victorian Pines, Greenbriar Country Inn& Suites, Stoney Creek Inn, Country Inn& Suites. According to the Dubuque Convention and Visitors Bureau, there are over 2,885 rooms in the Tri State Region(including bed breakfast inns). Dubuque Area Convention and Visitors Bureau announced that 2010 saw almost 1.9 million visitors to Dubuque County generating$302 million of economic activity. Hotel occupancy rates in 2011 and 2012 were over 58%, and over 56%for 2010 after recovering from the Great Recession in 2009. Prior year's hotel occupancy rates indicate over 56%in 2008, over 54%in 2007 and 2006, over 58%in 2005, and over 52%in 2003 and 2004. Some regional tourist attractions include the Diamond Jo Gambling Casino, Mystique Dubuque Gambling Casino, Iowa Greyhound Park, Grand River Education& Conference Center, Five Flags Civic Center, Old Shot Tower,Mathias Ham House Museum,Julien Dubuque Monument,Port of Dubuque,Mines of Spain, Fourth Street/Fenelon Place Elevator,Heritage Trails, Cable Car Square, Mississippi River Museum and Aquarium,Mines of Spain, Crystal Lake Cave, Sundown Ski Area, Chestnut Mountain Ski Resort,Dubuque Arboretum&Botanical Gardens,Downtown Open Air Farmer's Market, Town Clock Plaza,Dubuque Museum of Art, Mystique Ice Arena and others. Within one-half hour of Dubuque, there are many public parks, picnic and playground areas, tennis courts, public and private golf courses, boating, swimming pools &water parks, Mississippi River access for swinurdng, fishing, water skiing, and motor boating. Dubuque Parks include 16 community parks, 6 neighborhood parks, 25 mire parks, and 7 parks to be developed. "'A lodging dcrmand study for Dubuque County showed dcrnand for 293,305 nightswith a supply of536,099 or55%occupancy. The study determined an excess of321 rooms based on 70ob occupancy rete Forthe period of 2002to 2001,the Andy showed a room demand of 686 ours Qess the 321 existing rooms,and the 194 rooms wish she Grand Harbor Hotel)and a shortage of 171 rooms were needed The primary innetus is the opening ofAmaica's River and continued expansion within Re Pon of Dubuque and she entire downtowns7n Rare Area,with increases into 2015. Page 50 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Tristate Region The overall TriState Region continues to see new residential, commercial, and industrial interest, and there are plans for new businesses and subdivisions throughout the city and county. From the 2002 to the current year, Dubuque has had stronger commercial and residential development, and trends indicate continuing strength in the real property market especially as the national level Great Recession is receding since 2009. Envision, a community development group that is part of the Dubuque Area Chamber of Commerce, announced 10 long-tern goals in 2010 for the upcoming decade, • Expand the National Mississippi River Museum and Aquarium campus • Develop bilingual curricula, provide communitywide wireless internet accessibility, • Build a community health center, • Build a state-of-the-are perforating arts center • Create an integrated trail system throughout Dubuque and Asbury to encourage recreation and wellness • Expand city library services • Strengthen mental health and substance abuse services • Develop passenger rail service, and • Develop the warehouse district by converting buildings into multi-use structures that contain businesses—offices—shops—and restaurants. In late 2011, the Resilience Capacity Index, or RCI, showed that Rochester,Minn.,topped the list and College Station, Texas, came in last. Overall, cities in the Northeast and Midwest fared better economically than those in the Southern and Western U.S. Several Midwestern cities were among the Top 15 of the index,including: Minneapolis and St. Paul; Cedar Rapids, Iowa; Appleton, Wis.; Bismarck, N.D.; Des Moines; and Sheboygan, Wis. Cities were measured based on 12 factors: income equality, economic diversification, regional affordability, business environment, educational attainment, civic infrastructure, metropolitan stability,home ownership, voter participation, and the rates of residents without disability assistance, out of poverty and with health insurance. The index evaluates a community's economic capacity to bounce back from adversity, strength of demographics and community connectivity. In July 2011,the City of Dubuque was one of the most resilient cities in the nation in a recent study. The research found that in the case of another recession, a natural disaster, or some other unforeseen difficulty, Dubuque is well poised to bounce back. The city ranked fifth out of 361 cities nationwide in a study of resilience capacity in an index developed by Kathryn A. Foster, director of the University at Buffalo Regional Institute, State University of New York. The current Iowa State University Retail Trade Analysis Report provides performance measures. In an interview on K W WL.com television station,Realtor Rob Cook, discussed information he obtained from the Federal Housing Finance Agency(FHFA) stating that"Dubuque is number two in the nation when it comes to high rates of house appreciation," showing the standard home in Dubuque appreciated 2.46 percent in one year, through Sept. 2011, and 8.06 percent over the course of five years. A map showed each state's average home appreciation from the 3rd quarter of 2010 to the 2nd quarter of 2012. "The whole state's doing relatively well compared to the rest of the country," Cook said. Iowa is only one of four states that did not experience depreciating home values. The standard Iowa home over the course of that period went up 1.3 percent in value, according to the FHFA. Page 51 of 134 APpmgd Report of]101 Cer¢ml Avvwe,Dubu ,Iw 52001-5016 The Dubuque Board of REALTORS®reported the number of homes sold in January 2013 were down slightly over those sold in January 2012. According to the Dubuque Multiple Listing Service (DMLS) 2013 Residential Housing Report, 57 homes were sold in the Tri State area in January 2013 compared to 59 in January 2012. The Dubuque Multiple Listing service reports the following number of homes sold and average prices in recent years; 2007—1,256-$148,834; 2008—1,001 -$145,361; 2009—1,067-$150,957; 2010—1,114 - $152,725; 2011 —1,057-$156,935; 2012—1,209 -$164,335; 2013—1,139 -$160,888; and 2014—1,153 at$196,870,821. "January 2013 sales of residential properties in the Greater Dubuque Area continue to remain steady', says Dubuque Board of REALTORS®President Hairy Blewett."It's too early to comment on the increase in Average and Median Sales price comparisons year over year because of the size of the sampling. We'll have abetter sense after we've had a few more months to compare. Interest rates remain low and it continues to be a great time to buy or sell your home" On April 13 2013, the Dubuque Board of REALTORS®reported the number of home sales in the 1st Quarter of 2013 dipped compared to same time 2012. According to the Dubuque Multiple Listing Service (DMLS)2013 Residential Housing Report, 207 homes were sold in the Tri State area in the 1st Quarter 2013, down from 221 in 1st Quarter 2012. "Weather was certainly a contributing factor to the dip in sales through the end of the 1st quarter," says Dubuque Board of REALTORS®President Harry Blewett. "In 2012 we experienced a mild winter, and sales in the 1st quarter were up 29%over same time 2011. Spring has officially arrived and we're seeing anincrease in listing inventory" In 2014,this appraiser interviewed local REALTOR®Tom Kelzer, and he stated he had received"more calls about real estate in 2014 than the last two years combined" The Dubuque Board of REALTORS®reports the number of home sales in July 2013 increased 5 percent over those sold same time 2012. According to the Dubuque Multiple Listing Service (DMLS) 2013 Residential Housing Report, 116 homes sold in the Tri State area in July 2013 up from 111 in July 2012. Year-to-Date sales are at 666 sales through July 2013 compared to 663 in 2012. Year-to-Date Average Sales Price increased 1 percent to$160,097 over an Average Sales Price of$158,482 same time 2012. "2013 residential home sales continue to keep pace with the number sold in 2012. 2012 sales was the best year for sales since 2007," says Dubuque Board of REALTORS®President Harry Blewett. "We have a good sample of homes sold in 2013 to draw some fairly accurate comparison results which indicate home values continue to rise at a moderate pace with average sales price increasing 1%over same time previous yeaz,, The Telegraph Herald reported "Good News" on home sales in the August 6, 2014 newspaper. Interviews with area realtors indicate positive sales in the first half of 2014, mostly in southwest Wisconsin and northwest Illinois due to fust time homebuyers and improving economy. The Dubuque Multiple Listing Service reported 414 homes sold in the Dubuque area through the end of June 2014, a slight dip compared to the first six months of 2013, according to Joe Leiser(Dubuque Board of Realtors executive director).144 In December of 2014, the Dubuque Board of Realtors reported 72 home sales in November compared to 118 the previous year,with average price of$172,574, up from$160,567 the previous year. "'TeleD phHIraldnew V,DubuVe,Iowa Page 52 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 In July of 2015, the East Central Iowa(formerly the Dubuque)Board of Realtors and Multiple Listing Service (ECIML S)reported 580 homes sold from January to June,with 526 over the same period in 2014 and the highest since 2010. Previous reports indicate that sold houses were approximately 460 in 2008, 450 in 2009, 620 in 2010, 500 in 2011, 520 in 2012, 550 in 2013, 526 in 2014, and 580 so far in 2015). The ECIML S stated in the 2015 3'a quarter reported the number of homes sold remained steady from the same time in 2014, shows that 361 homes sold in 2015 compared to 362 in 2014. Year to date sales were reported as being up 6 percent over 2014 with 934 homes sold in 2015 compared to 878 sold in 2014. The average sales price for the year to date 2015 was reported at$170,233 compared to$173,161 for the year 2014. President LaV ohne Deninger stated,"We got off to a good start in the first two quarters in 2015 and 3rd quarter sales remained steady. Pending sales are down slightly over previous year and we anticipate finishing at or above the same number of sales we had in 2014 at the end of 2015" Additionally, she said, "National employment growth has leveled off which could mean interest rates will remain low the remainder of the year." Standard&Poor's/Case-Schiller Home Price Index report141 for twelve months prior to October 2015 indicates the home prices rose 5.5%,with a 2015 average increase in home values of 5%(Chicago prices raised 2 percent increase for the same period). The report suggests the housing market is still recovering from the recession, but sales have risen as the unemployment rate has decreased showing a strengthening economy. The report indicates that demand surpassed the listings, causing prices to rise faster than inflation or wages in 2015. Historically,mortgage rates have been closer to 6 percent, with average rates in 2015 below 4 percent. Even with the Federal Reserve sort-term interest rate rising in December, the market suggests that potential homebuyers should not be concerned about run away mortgage rates. In Iowa,through the third quarter of 2015, the Federal Housing Finance Agency reports 146 that house prices for Dubuque show a one-year increase of 1.33%and a five-year increase of 8.89%(1.778% average per year). Market participant interviews included Jeff Hefel,managing broker of Dubuque Ruhl &Ruhi stated, "I think it shows a nice and steady improvement in the market...and it means we didn't plummet during the Great Recession like so many" and Brad Brissey, ofBrissey Realty Dubuque, commenting,"I do think it is going to continue....we will see a nice steady growth in the 1.5 to 2.5 percent range for the next couple of years" The Dubuque County government has been pursuing options for new office space complex,ranging from new to renovated purchases. Six proposals were received,with the potential sites being reduced to 4 sites, 11'h and Jackson Street,333 E. 101h St, 71h and White Street, or 660 Iowa Street,with prices ranging from $4.75 million to$9.27 million. Dubuque County Engineer Anthony B ardgett has laid out a 5-year plan starting with Fiscal Year 2017. The plan includes several bridge replacements on roads names Steil Lane,Durango,Kemp, Swiss Valley, Flannagan,Plum Creek South Mound, Clear Creek, Sleepy Hollow,Mitchell Mill,Budd,Fischer, Stoffel, Millville, Hales Mill,Hannah,Derby Grange,Prairie Creek,Bockenstedt, Olde Massey, Pitz, Urbain, Cross Bluff, Wieferich, Vaske, Fishpond,Fairway,Rea, Millville, Fettkether,Monastery, Gun Club, Cluistoph, and Simon. Paving plans for roads Key West, Cottingham, North Bankston, Clear Creek, Feeney, Olde Davenport, Clay Hill, Five Points, Gun Club, Bankston Park, Cedar Ridge,Pilot Grove, New Vienna, Spoden, Creek Valley, Durango, Derby Grange,Lore Mound, Hammerand, Haberkom, Olde Massey, Prairie Creek, Cox Springs,Monastery, Prier and Olde Castle Roads. The construction plans are an estimated$41.7 million over the next five years, and some 2017-planned work may roll into 2018. -TeleDeph Herald,December'30,2015. °6 TeleDeph Herald,January 15,2016. Page 53 of 134 APpmssal Report of]101 Cer¢ml Avvwe,Dubu ,Iw 52001-5016 The TriState Region has benefited from continued growth and support of tourism. This growth includes the Diamond Jo Gambling Casino,Mystic Gambling Casino and Dog Truk, and the continuing development of the Port of Dubuque as a tourist center and commercial recreation development; including the convention center, hotels, office complexes, and other commercial ventures; plus the growth of shops and restaurants in the surrounding urban and downtown areas. The TriState Region tourism boom, specifically noted in Dubuque County,has continued over the past decade. The Diamond Jo Casino and Dubuque Greyhound Race Track continue to report a combined visitor count of more than 2 million per year up to the early part of the 2000 decade, with reports showing excess costs were passed to the non-profit beneficiaries in the track area. In the past several years, the greyhound tracks in Iowa have lobbied to cease live racing on premises, at the same time operators lobbied to continue live racing, obtain buy-out options, or allow them to lease facilities and operate on their own. After years of negotiations with the state legislature, effective in 2014 racing groups request licenses to operate a dog-racing track. In Dubuque 147,the Iowa Greyhound Association was approved for a separate license to operate a dog-racing track in Dubuque starting in 2015 and running for at least five years. Existing racing facilities in the Mystique Casino continue to operate separately, which includes racing feeds from around the country. The two Dubuque casinos report firmcial earnings on a regular basis for public tracking. For November 2015,the Mystique Casino earned a 40.3%share of the Dubuque market and the Diamond Jo Casino held a 59.7%share. The Mystique Casino reported$3.45 million in revenue for November, which was down 4.7%compared to the previous year. The Diamond Jo Casino reported$5.12 million in revenue for November,which was up 2.8%from the prior year. The Dubuque Area Chamber of Commerce held its annual Forecast Luncheon for 2016, with a record attendance noted by the CEO. Speakers at the event, reported by the Telegraph Herald on 1/15/2016 writer Jeff Montgomery, included Health Care (focus on improving the health of populations, patient experience and lowering per-capita cost), finance (higher interest rates, data and cybersecurity emphasis, new technologies will alter the way consumers interact with financial institutions), education (demographic shrifts to stress higher education institutions, adult enrollment increases and student declines with population changes),technology (evolving data ecosystems),manufacturing(challenges of declining sales,but steady employment), small business (baby-boomers reaching retirement age and millennials launching businesses, along with demogmpMc shrifts for the positive), and chamber reported increases in new members in 2015 over prior years. Telegmph Herald,Tri S¢e Review,Ocfaba5,2014. Page 54 of 134 APpmgd Report of]101 Cer¢ml Avvwe,Dub q ,Iw 52001-5016 Downtown Dubuque With an expected stronger tourism market, the downtown area continues a logical expansion area for restaurants and supporting commercial businesses, plus the ongoing interest in residential unit restoration (both market and subsidized). The Port of Dubuque has focused on the tourism benefit from the America's River Project that included a large hotel with water sports-park, a convention& education center and the National Mississippi River Museum&Aquarium Complex that continues to grow with new construction projects completed in 2010, 2011 and 2012. The "Port of Dubuque" is part an overlay district that allows the successful use of federal money to develop the area for planned commercial and commercial recreation uses. Improvement&renovations in the Port included the Mississippi River Floodwall(amphitheater,riverboat docks and ramps, and tourist viewing stations), the harbor port, and the museum expansion. The City of Dubuque expanded the Commercial Recreation Overlay District to the South Port of Dubuque, which expects to see property convert to uses other than industrial as value and uses support that transition. Downtown Dubuque has seen continued new construction over the past two decades,with continuing improvement from 2010 to today, including a 193-room hotel, several city parking ramps and several office buildings, renovation of many older properties (several using state and federal tax incremental financing), and repurposing use of the current city hall (known as the Federal Building). The Town Clock Plaza opened for vehicle traffic in 2002,with closures allowed for concerts and cultural events. The opening of this major downtown thoroughfare has maintained interest in the immediate area, with several new establishments relocating in the past few years (such as IBM and NICC relocation to the city), and has provided linkage to the expanding Port of Dubuque. In 1985,Dubuque was one of seven cities selected as a pilot city for the Urban Main Street Program. In 1995,Dubuque received one of 5 Great American Main Street Program,in 2006,Dubuque received one of three Urban Pioneer Awards, and in 2007 Dubuque was one of 10 National Civic League All-America City selections. Dubuque Main Street reports new annual successes completed during its 25-year history at their annual fall awards ceremony in 2011 and their 30-year anniversary in 2015. Dubuque's downtown had many buildings rehabilitated in the past two decades along lower(historic) Main Street Area(between the new highway and 4th Street), and since 2010 several other areas (Millwork, formerly the Warehouse District,Lower Main and Historic Main)offer the same opportunity. Examples of such downtown renovations include the Cooper Group renovated the Cooper Wagon Works building at 3`a and Main Street into apartments, restaurant, pub, offices, and a retail center; the Platinum Group renovated the old Weber Paper Company and uses the building for corporation offices and some tenant space; Northeast Iowa Community College renovated an old office building into a business center with admin offices and classrooms; the Hartig Building(comer of 7th Street)and the Cottingham& Butler buildings (between 8th and 9th Street)were renovated for office use; Steele Management Group renovated a building at 7ffi and Main Street for office use, almost the entire 1100 block of Main Street was renovated with multiple uses (commercial,restaurant, office and residential-including subsidized housing units), the CIGNA Retirement and Investment Services added workers to its newest downtown complex (approximately 650 total employees); and the $188 million America's River proj ect included a Mississippi River museum with aquarium, a conference center, and the Grand Harbor Hotel and Indoor Water Park. Page 55 of 134 Appmssa,Report of]101 Cer¢ml Avvwe,Dubu ,Iw 52001-5016 Dubuque Main Street(a downtown economic development entity)includes eight downtown districts; Cable Car Square,Historic Old Main, Port ofDubuque/Ice Harbor, Town Clock,Jackson Park, Couler Valley, Millwork(formerly Warehouse) and Upper Main/Farmers Market. Continued financial incentives should assist in the revitalization of these Dubuque Main Street downtown areas for re- development and reuse. Other more recent projects in the recent decade included the new IBM offices that now occupy the $43 million dollar upgrade and rehabilitation of former`°Roshek' Building using State of Iowa incentives money for 1,300 new IBM jobs (thought only 625 on record in 2015), the relocation and expansion of Heartland Financial USA(a$5+billion dollar financial holding company headquartered in Dubuque)of approximately 100 workers into the Roshek Building; and Flexsteel Industries constructed a new headquarters building m the Port of Dubuque. In 2011-2013, the new historic Millwork District 141 (formerly the Warehouse District)received funding and rehabilitated the streets and underground utilities for a several block area. The Historic Millwork District is historical in nature and expects to receive grants and credits to assist with renovation of formerly industrial buildings now grandfathered into the Planned Commercial rezoned district. At the start of the 20th century, the Millwork District was the innovative and entrepreneurial center of the region and was the backbone of the regional economy. The revitalization of the Historic Millwork District is resurrecting the forgotten strategy that connects people,planet, and profit in a mixed-use neighborhood. It offers a vision for a community reconnected with surrounding neighborhoods, reenergized with housing,retail, offices,galleries, entertainment, and employment, and re-imagined as a laboratory for sustainable practices and technologies. In 2014,the City of Dubuque purchased land in the Millwork District for an Intermodal Transit Facility. This $12.5 million facility will serve as the hub for public transportation and for future rail station, parking ramp, and retail businesses to be developed, and was completed in 2015. By the end of 2015,two buildings in the Millwork District were renovated with new residential and commercial spaces. The Novelty Iron Works has 76 residential units and 30,000 square feet of lease space as part of over$33 million renovation, which will be followed with 30 additional residential units and 20,000 square feet of commercial space in late 2015/2016. The Linseed Oil Paintworks building will have 16 apartments as part of a$5 million renovation in 2015. In early 2015, Hirschback Motor Lines relocate from Illinois into the Millwork District,bringing 100 employees in the spring of 2015. At the same time, a downtown insurance company announced plans for 90 new positions over the next tree years (with 45 in 2015)within the district. The year 2015-award winners at the 30ffi anniversary meeting included those for Economic Development, Promotion, and Design and Organization, which included a presentation of the top 30 lager projects over the last tree decades. "a City of Dubogoe webp age for the M11work Disiaid,http://www.cityofdobogoe org/cidea aspa4NIIk116 Page 56 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Westside Dubuque Construction on the west side of Dubuque has been steadily increasing in the past ten to twenty years, including remodeling of the enclosed shopping mall(Kennedy Mall, 690,000+square feet with 40+ stores). Asbury Plaza, located at the intersection of Asbury Road and Northwest Arterial,was developed as a major retail center and has many restaurants,regional grocery store, and numerous retail stores (including the new Hy-Vee Grocery Store,Kohl's, and more expected in next ten years). Westfield Square with many new retail and office uses an automatic car wash, an automotive shop, an auto parts store, a grocery store, bank, sports complex, several fast food restaurants, and other retail service buildings. McGraw-Hill constructed a$7 million plus complex with 330,000-square-foot distribution center at Dubuque Industrial Center West. As well, this planned industrial area has had FedEx Distribution Center, IWI Auto Parts, Green Distribution, and Giese Construction construct new facilities in the past few years. Development along the Northwest Arterial, which currently is divided four-lane from Dodge Street (Highway 20)to Kennedy Road,has increased significantly in the past ten years and much within the past three years (since the Great Recession and the loss or slowing of expansion between 2008-2010). Recent expansions include the Dubuque Humane Society, a three-level climate controlled self-storage facility, a Holiday Inn Express, several fast food restaurants(McDonald's, Culver's,Red Robin and Wings), Blain's Fawn&Fleet Department Story in 2013, an employment office, a retail fashion store (Cato Fashions), and an office building on the site of the demolished Golden Corral Restaurant building. Along JFK, a Kwik Star Gas Station and Convenience Store built on a demolished restaurant site at the comer of Hillcrest Road in 2014. The City of Dubuque has been studying options to reroute traffic off Highway 20/Dodge Street since 2009. The city completed an"East-West Corridor Connectivity Study' and in 2012 put a development moratorium on new construction or development of commercial and residential properties within the study area. There are several options and scenarios in the study, but the major impacts will occur to Pennsylvania Avenue, Asbury Road, University Avenue, and Loras Boulevard. Rankings The TriState Region continues to see the benefit of several national and state level rankings or awards in the past decade. Refer to the addendum page for a list of national rankings over the past decade. The improvements and awards to the City of Dubuque, County of Dubuque, and the entire TriState Region have continued into the twenty-first century. The appraiser has included some additional and more current information in the community information for the city, county and TriState Region in the addenda. In the January February 2015 City News, the manager notes anincrease of 2,000 jobs for Dubuque County(13%ofthose created in Iowa), and two new rankings. Dubuque was named one ofthe World's Smartt] Communities of 20]5, as one of five U.S. communities on the list of 21. This designation is based on five intelligent community indicators that influence the way people live and work in their cities and towns. As well, the White House named Dubuque one of 16 Climate Action Champions, citing the city greenhouse gas emission with reduction targets of 50%below 2003 levels by 2030,plus focus on flood risk reduction and resilience in development and redevelopment of community infrastructure. Page 57 of 134 APpmgd Report of]101 C,,Tm Avvwe,Dua q ,Iw 52001-5016 In 2014,Dubuque was eighth in Forbes rankings of The Best Small Places for Businesses and Careers'49 The website indicated a metro population of 95,500 people, major industries in health care, tourism, and financial services; gross metro product of$5.7 billion, median household income of$54,971, cost of living at 9.4%below the national average, unemployment at 4.3%,job growth in 2013 at 0.7%, college attainment of 29.1%and net migration of zero in 2013. "Dubuque lies at the junction of three states: Iowa,Illinois, and Wisconsin ... one of the few large cities in Iowa with hills, and is home to a large tourist industry, driven by the city's unique architecture and river location. It is also home to five institutions of higher education, making it a centerfor culture and learning." In the ranking,Dubuque is #70 in Cost of Doing Business,#13 in Job Growth and#40 in Education. For other Iowa cities, Iowa City ranked#12, Ames#13 and Sioux City#31 by Forbes. In 2013,the City of Dubuque Manager reports that the city ranks high among the top ten largest cities in Iowa(those with over 50,000 populations),including job growth, lowest property tax rate, lowest solid waste collection base fee,lowest bonded indebtedness, lowest water rate,third lowest sewer rate,lowest refuse rate, fewest governmental employees, one of the lowest unemployment rates, 4th lowest legal debt rate, and one of the highest Best Bond Ratings. In the September 2012 City Focus,the city manager message presented the Top 10 capital projects (1997 to 2017), including streets, Southwest Arterial, America's River project, Water&Resource Recovery Center, parking ramps, Bee Branch Creek project, sanitary sewer projects, airport terminal project, industrial parks and storm-water projects for a total of over$639 million. In an early 2013 update, the City of Dubuque Engineering Department, Deron Muehiing presented cost estimates through 2036 for property acquisition infrastructure and bridge/culver construction, stow sewer replacements, and new watershed alleys with projected costs over$127 million(which includes some federal assistance money of a$12 million grant and possibility of$15 million from a state fund). The City ofDubuque earned the title of"All America City" from the National Civic League of America in 2007, 2013 and again in 2013. This award is the oldest and most prestigious civic recognition competition in the United States. Dubuque focused on riverfrout redevelopment, downtown revitalization and the Crescent Community Health Center,with the League gauging issues from health care to economic development to youth. Trends have indicated that the local region is stabilizing or improving and recent reports from community leaders and financial institutions suggest that economic indicators at the state, regional and national levels also expect to see improvement and increases, and this region has historically bucked the steep increases and declines seen at the stational level. In late 23015,the Federal Reserve raised its federal funds rate from near zero from a range of zero to 0.25 percent to a range of 0.25 percent to 0.5 percent, in an effort to maximize employment and keep prices stable. This rate increase is expected to lead to slightly higher interest rates on credit cards and home equity fines of credit, but is not expected to have much effect on homes, cans, or college debt in the short nun. The Federal Reserve Board indicated it would monitor the consequences of the rate increase and the broader global pressures to ensure not to dampen U.S.inflation. "'http://www.forbu.mMplacesha/dobogoe/ Page 58 of 134 Appmssad Report of]101 C Sru,Avvwe,Dubuque,Zowa 52001-5016 Population Trendy Census figures show 'Dubuque Population Dips"prior to 2006,yet bedroom communities like Asbury and Peosta continued to see expansion. Dubuque County had a 91,631 population in July 2005,making it the 7th largest county in the state. The current population information,provided in the addendum, shows the U S Census Bureau Statistical Information for City of Dubuque,Dubuque County, and the State of Iowa. Refer to the more current U.S. Census Bureau published report data in the addendum area of this report. The U.S. Census Bureau published report on the 2010 Census released in February 2011 reveals the following current city populations; (Iowa)Asbury 4,170; Bellevue 2,191; Cascade 2,159; Dubuque 57,637; Dyersville 4,058; Elkader 1,273; Farley 1,537; Guttenberg 1,919; Manchester 5,179; Maquoketa 6,141; and Peosta 1,377; while the December 2010 U.S. Census Bureau reported the following populations in adjoining states; (Wisconsin)Boscobel 3,164; Darlington 2,160; Dodgeville 4,484; Fenimore 2,432; Lancaster 3,837; Mineral Point 2,652; Platteville 9,931; and Shullsburg 1,152; (Illinois) East Dubuque 1,995, and Galena at 3,460. The population predictions by the U.S. Census Bureau are 75,814 by the year 2018. Education Trends... TriState Region Colleges and Universities ranked in categories based on types of degrees and location. National Universities; University of Wisconsin Madison#41,University of Iowa#72, and Iowa State University#101. Universities, Mastets (Midwest): Drake University#3,University of Northern Iowa #22, University of Wisconsin La Crosse#24, St. Ambrose#40,University of Wisconsin Stevens Point #46 and Platteville#70, Rockford College#107, and University of Dubuque#107. Regional Colleges include Bachelors in the Midwest: Buena Vista University#9,Lome College#14, and Clarke University #17 and for National Liberal Arts Colleges Wartburg College at#151."' TriState Region public and private schools official headcount has stabilized since the 2006-07 school years. According to Dubuque Community School District website enrollment was 10,745 for the 2007-08 year, 11,279 for the 2010-11 year, 10,469 for 2012/2013 school year, 10,579 for the 2013-2014 year and 10,634 for 2014-2015. Iowa public school enrollment was 478,921 for the 2013-2014 school years and 480,772 for 2014-2015, according to the Iowa Department of Education. The Holy Family Catholic School website listed total enrollment at 1,976 for 2007/2008 and 1,837 for 2011/2012 school year. Western Dubuque County School District lists enrollment at 3,375 in 2012/2013, a substantial rise in from 2008 with an enrollment of 2,816, and 2,991 for the year 2014-2015. East Dubuque, Illinois, High School website indicated 202 students for 2012/2013 school year and total students at 703 for 2014-2015. Platteville, Wisconsin, Community School District reported enrollment of 1,369 in 2007 and 1,522 students for 2014-2015 school year. All current indications are that the region educational systems are continuing to see increases in enrollment and substantial donations to the universities and colleges. ...Seethe appraisal addendum area for more current cervewnity information obtained from several sources,including the city,chamber,and other development entities in the Dubuque and Tri-State Area "'US News&World Report,as reported in Telegraph Herald Newspaper,12 September 2012 Page 59 of 134 Appmssal Report of]101 C,,Tml Avvwe,Dub q ,Iw 52001-5016 Expansion and Continuing Trends Dubuque County foreclosures increased in 2006 through 2009, though not as much as stational trends and have showed a continued increase most quarters since 2010. Since then trends since 2010 show reduced numbers to stabilized levels with continued low interest rates expected to maintain near national levels, and an actual single-unit rental housing shortage in some quality price ranges has become evident since 2011. According to data from RealtyTrac Inc., foreclosures in 2014 were at the lowest levels since 2006, with a drop of 70%from the 2009 peak. The Dubuque City Council approved the rezoning of 318.25 acres owned by the Dubuque Metropolitan Area Solid Waste Agency from county agricultural and residential to heavy industrial and annexed 178.29 acres in the city limits in 2010,with continued growth expected in this area. The City of Dubuque received a$5.6 million Transportation Investment Generating Economic Recovery (TIGER)grant from the U.S. D. O. T.to help spur development in the Millwork District in 2011,working towards a more user-friendly environment of streets design and green space in 2012 and 2013."' In 2012, the street work was completed and the buildings renovation and redevelopment continue through the decade. Dubuque Main Street provides information on downtown business expansion,which has shown that typically for each year over the past 10— 15 years, the downtown has seen 30+new businesses, 10+ relocated businesses, 5+space expansions, 10+businesses move out of the area and 5+businesses close. As well,the investments (fagade renovations, building rehabilitations,new construction,real property sales and public improvement projects), have been in the tense of millions of dollars each year. From 2010 into 2013, notable items included IBM filling of the promised 1,300 jobs as part of the Iowa Department of Economic Development$52 million dollars of incentives, and they have maintained that approximate level since 2012 with almost alljobs paid a qualifying wage. Of the $24.5 million dollars of the state incentives that went to the Dubuque Initiatives for the Roshek building renovation the construction project was completed for IBM in early 2012,the tenants included Heartland Financial USA(ranked as the 39'r best out of top 100 banks in America by Forbes in 2013) leasing the entire third floor in late 2012. There continues to be several levels of vacancy in the Roshek Building but interior renovations included a community boardroom constructed in 2013. In early 2015, IBM announced the layoff of 202 jobs, and while it does not affect the state incentives listed above, local economic officials gathered to assist the terminated employees. The layoffs took effect in late February 2015. In 2011,Hormel Compleats and Progressive Processing LLC completed a new 348,000 square foot Dubuque facility at an estimated cost of$89 million dollars with a projection for 180 new jobs. Sedgwick Claims Management Services, a financial services company, stated that 150 newjobs started in their Dubuque and Bellevue satellite offices. According to a study commissioned by the US Conference of Mayors,the City of Dubuque local economy is one of 26 metro areas (out of 363)that have completely recovered recessionjob losses. The federal government announced that fimding to complete Highway 20 from Freeport to Galena is committed,but no schedule for completion date available. 'a TeleDeph Herald,Dubuque,Iowa,Millwork strews togain$5.6mdlion makeover,February 18,2010. Page 60 of 134 APpmed Report of]101 Cer¢ml Avvwe,Dubh ,Iowa 52001-5016 A negative impact carried over from 2009 was Thermo Fischer Scientific Company closure of its Dubuque industrial plant in 2010 with the loss over 350 jobs despite an$18 million dollar incentive package."' However, the building sold in 2011 and the owners have converted the building into several tenant leases with plans for the addition of new jobs back to the local economy over the next few years. In 2011,the U.S. Census Bureau published its 2010 population figures with indications that Dubuque County is now the seventh largest county by population in Iowa with 93,653, an increase of 5.1%after seeing significant declines in the 1980'x. At that time,the City of Dubuque was the ninth largest in the state by population. Smaller communities in Dubuque County have had significant increases from 2000 to 2010, including Asbury from 2,450 to 4,170, Cascade from 1,958 to 2,159, Epworth from 1,428 to 1,860,Farley from 1,334 to 1,537, Maquoketa from 6,112 to 6,141 and Peosta had one of the largest percentage increases in the state with 111.5 percent growth from 651 to 1,377 residents. Current U.S. Census Bureau statistics information is located in the addendum area. The Iowa Workforce Development named Dubuque number one in the State of Iowa for private sectorjob growth in 2011. With only 3%of the State population,the City accounted for 11-12%job growth(over 1,000 jobs)in 2010 and 2011. Area construction projects include Asbury American Trust, Star Brewery,Kendal Hunt,Durrant Architects, Liberty Bank(sold to Dubuque Bank and Trust in 2012), Ace Hardware,Diamond Jo Casino, Powers Building, Apex Concrete,Doppco Development, Walgreens,Expansion of Dubuque Industrial Center West(North Siegert Farm), Applewood Senior Apartments,Meinen Court Business Center, Holiday had Express, Callahan 12-plexes (2), The Crust(former Bricktown), Sedgwick Phase II, Cathedral Lofts, 44 Main, Central Avenue Parking Ramp, IWI, TM Logistics, 3200-seat Mystique Community Ice Center,Fareway grocery store, University of Dubuque Apartment Complex,356 Main Bonson Block Building, Flexsteel Headquarters,Nottingham Properties and the previously mentioned Heartland Financial USA expansion. The Dubuque Industrial Center West Urban Renewal area expanded with an additional 175-acres,that is now home to an$89 million 327,000 square feet facility that created 180 jobs. In April 2015, the City of Dubuque Council voted to purchase an additional 200+acres for approximately$2 million as part of an expansion of the industrial park for future development. Other area under development include several residential developments (Arbor Oaks, North Fork Trails Pebble Cover, Westbrook, Eagle Valley,Harvest View, Timber Hyrst, Wynstone,English Ridge), Betty Jane Buildings on Main Street, Franklin Investments (old Central School),Engine House#1, CARADCO rehab (named the Schmitt Center in 2013), Clarke University Technology Commons,University of Dubuque Performing Arts Complex and the Millwork District.114 The second construction phase of the Southwest Arterial, a$5.1 million English Mill Road reconstruction project had bid letting in the winter of 2013, after the first phase for the reconstruction of North Cascade Road in the fall of 2012. The Southwest Arterial continues to work funding for the project,preliminary cost project of$125 million with hopes for completion by the end of 2016.1" 'a Telegraph Herald,Growth,Sr glen Shapz Business Ns,dated Decenber27,2010 with quotes Dom Greater Dubuque Development Corporation(GDDC)and the businesses mentioned above "'City of Dubuque Credit Rating Presentation,September 2012 Inn City of Dubuque City Fours,Septernber 2012 Page 61 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dubu ,Iw 52001-5016 The Bee Branch Creek Restoration Project is a flood mitigation project to reduce the risk of storm-water flood damage to 1,155 properties. Phase I lower area was complete by the fall of 2011, Phase II upper area is underway, and the final phases are projected for completion by the end of 2017.16 In 2015,the bids for the upper level project were coming in more than$9 ntillion above the engineer estimates,with some bids over$30 million. The Upper Bee Branch will have a 2,300-foot long landscaped creek and green space that accommodates low intensity recreational use. A multiuse trail will be provided on the northeast side for the full length of the creek. Sidewalks,walking paths, lighting, and benches also line the creek corridor. A stepped amphitheater between East 22nd Street and Lincoln Avenue will provide a venue for teaching and neighborhood gatherings. The design also includes a play area with slides and a community orchard. The Dubuque Regional Airport Terminal Complex Project is in the process of construction of a new passenger temurtal complex to meet the needs of approximately 80,000 to 100,000 travelers on an annual basis. The project includes U.S. highway 61 improvements (2012),utility improvements(2012-2014), new aircraft parking apron and access taxiways (2013-2015), new parallel taxiway to runway 13-31 (2013-2015,new airport perimeter road(201%),new passenger terminal building (2013-2014), new vehicle parking(2015-2016), and anew entrance road and circulation road(2015-2016).'17 The 2015 January February City News reports that the Dubuque Regional Airport received its 24C consecutive year of perfect compliance with Federal Aviation Regulation Part 139 (safety standards for airfield operations, safety, and maintenance at airports served by commercial airlines). No other airport in the country has a perfect FAR Part 139 safety compliance records for a consecutive 24-year period. Dubuque continuing expansion and development has contributed to a positive trend in valuation growth, with Fiscal Year 2012 valuation indicating a 2.3%increase in the 100%actual valuation, a 3.7%increase in net taxable valuation and a 7.1%increase in taxable increment valuation. The Dubuque Internodal Transportation Center is under construction in the Historic Millwork District with hopes for an Amtrak station here or in the Port of Dubuque. Accessibility in the district improved with the streets proj ect that provides vital transportation connections for the success of existing investments and will leverage additional investments in the district, the downtown, and the Port of Dubuque. The terminal will provide accommodations for passengers waiting to board or who are deboarding busses and passenger rail services. Funding has included several multi-million dollar grants and local matching funds, with several phases planned for completion."' The City of Dubuque Engineering Department has worked with consultants to complete a comprehensive East/West Corridor Connectivity Study analyzing alternate east-west corridors that need to be improved to provide connectivity between the western growth areas and the downtown. The report presented improvements and modifications to improve traffic flow,including the construction of several roundabout intersections. Funding is not available in the current City Five Year Capital Improvement Program."' A 100-acre Urban Renewal District will become the Dubuque Industrial Center South with the first phase of construction beginning in early August 2012. The project will include a trail connecting to the Dubuque Industrial Center West(550-acres,with over 24 businesses and over 233 acres sold)that is located west of the Northwest Arterial on Chavenelle Drive.160 156 City of Dubuque City Foau,Septanber 2012 'v City of Dubuque City Foals,Septanber 2012 Ise City of Dubuque City Foau,Septanber 2012 's City of Dubuque City Foau,Septanber 2012 160 City of Dubuque City Fours,Septanber 2012 Page 62 of 134 APpmssal Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 The Port of Dubuque Marina became operational in the 2013 boating season. Located adjacent to the National Mississippi River Museum and Aquarium,the facility houses 70 transient slips with full amenities, a marina store and facilities (showers,laundry). In 2014,local economic development group, Greater Dubuque Development Corporation or GDDC, celebrated its 30-year anniversary. Rick Dickinson,president, said that from 1980 to 1990 the population of Dubuque County fell from 93,745 to 86,403,but that current estimates are 95,697 for the county population. He stated that the four years before GDDC foamed saw a drop in people working in Dubuque metro area from 45,000 to 37,700, and today there are more than 60,000 employed in the greater Dubuque area. In a January 2015 GDDC report,the Dubuque region added over 2,400 jobs in 2014,but found that 63%of area employers are struggling to find skilled workers. The annual predictions for 2015 in region, from BizTimes Magazine for December 2014,indicate expected increases in tourism(including visitors specifically focused on the 150'r Anniversary of the end of the Civil War), manufacturing sees shortages in skilled trades that need focus,retail sees improvement due to more optimistic consumers, real estate had increases in the number of commercial leases even with the existing oversupply and local real estate brokers see tax incentives as vital to the housing industry stability,healthcare sees Medicare restraints and expanding medical markets (including a new expansion of Finley Hospital), employment will be challenged by the loss of talent from retiring baby boomers, agriculture sees crop production prices at half from 2013 and sees some financial challenges that push farmers into niche markets and stabilizing Palm prices, and technology continues at staggering acceleration and innovation advancements. Several experts were interviewed with strong predictions for the stock market near 18,000 average and unemployment below 6%annual rate. In 2014, due to the success of its past program, the City of Dubuque was notified that the U.S. Department of Housing and UrbanDevelopment(HUD)has rejected a$3.9 million grant application for continuation of its lead-paint hazard abatement property for three years. At the same time, only one of three program coordinators would be funded by HUD16'. The successful program has operated since 1997,but the City Manager said that without the program funds,the city does not have the capacity or funds to continue the program. In 2014,Unity Point Finley Hospital began construction on a$42 million dollar expansion. According to hospital officials, this is the"most adventurous" building project in their history. The addition will be a 70,000 square foot three-story building for an expanded emergency room, surgical suites and a new heart vascular center. The project construction is expected to ran through 2017. The City of Dubuque has programmed$9.4 million to connect the new airport facility to Dubuque utilities. This will include sewer and fiber optics lines along a three-mile stretch of US 61/151 form $11.1 million overall project expense. GDDC reported that New York firtancial technology company Smart Asset published a report that Dubuque County's economy is among the fastest growing in Iowa. The report measured change in domestic gross product over a four-year period, seeing a rise of$345 million for a 0.9%increase. The biggest challenge will be a declining working age population(people in the age 20 to 69 years old),which is expected to decline by 4%in the next 10 years. 161 Telegmph Herald,Tri=e FoO ,Oct,,ber 5,2014. Page 63 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 In 2015,Mi-T-M, Flexsteel, Andersen Eagle and A.Y.McDonald manufacturers announced the addition of workforce numbers in 2014, according to a GDDC report. The report provided the area largest employers,which included John Deere Dubuque Works (2,500), Dubuque Community School District(1,946), Mercy Medical Center(1,313), University of Wisconsin Platteville (1,105), Medical Associates Clinic(1,027), Unity Point Health Finley Hospital (859), City of Dubuque (695), Andersen Eagle (650), IBM (625), Sedgwick(550), Diamond Jo Casino (510), Western Dubuque School District(501), HE Iowa Community College (500), Dubuque County(472), Cotting}tam and Butler(460), Prudential Retirement(450), Mystique Casino(444), Flexsteel Industries (433), A.Y.McDonald Manufacturing(402), McKesson(400), Medline Industries(400), Loras College (394), Hartig Drug(393), Holy Family Catholic Schools (381), Mi-T-M Corporation(380), American Trust and Savings Bank(374), Nordstrom(370), University of Dubuque (363), McGraw-Hill Higher Education(350), and Dupaco Community Credit Union(332). The TriState Region continues to see industrial, commercial and residential development with stable to increasing property values that are working back from the Great Recession toward recovery and expansion and overall demand has been stable to increasing with the predominant occupancy is owner or owner business. Page 64 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Marketing Time and Reasonable Exposure Time Based on the needs or many clients, the appraiser researches and analyzes the primary indicators of market condition for properties in the subject market area or residential neighborhood by noting the trend of property values(such as"increasing," ..stable," or"declining"),the supply of properties in the subject neighborhood(such as"shortage,"..in-balance," or"over-supply"), and the marketing time for properties (such as"under three months," ..three to six months," or"over six months")as of the effective date of the appraisal. The appraiser is expected to describe the reasons when the trend of property values is declining supply is an over-supply, or marketing time is over six months" Reasonable Exposure Time is defined in USPAP as the"estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal." USPAP notes"Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open markeC' TMs time is a function of price,time, and use. Marketing Time is defined in USPAP as,"an opinion is the amount of time it might take to sell real property interest at the concluded market value during the period immediately after the effective date of an appraisal." While an estimate of marketing time is not mandated by USPAP,it may be required by the client and so becomes an assignment condition. For this appraisal report, the appraiser will make estimates of marketing time and reasonable exposure time,with the facts identified for exposure time for other sources. In consideration of these factors,the appraiser has analyzed the following, • Exposure periods for comparable sales • Marketing time information from PwC Real Estate Investor Survey • Local market information(Multiple Listing Services,market participants) The developed reasomble exposure time (a retrospective opinion)uses local multiple listings service statistical information about days on the market,information gathered through sales verification and interview of market participants. Marketing Time (a prospective opinion)occurs after the effective date of the market value opinion and is related to,but apart from,the appraisal process. The Dubuque and Tri State Area housing market has not suffered the severe declines seen nationally and the city is seeing a more robust recovery. According to Rum and RUM Realtors Fall 2014 Real Estate Facts and Trends,Dubuque has been identified as a buyer's market with almost 8 months of inventory and ranks 162 of 401 MSA's with a 1.79%increase in values from 2012 to 2013. U. S. Census Bureau statistics (STDB charts in the addendum)show 2018 population increases to over 75,000 city population households over 30,000 and housing units over 28,000 with 64%owner occupied to 29%renter occupied. The same report indicates that Iowa farmland values increased 10.6%from 2012 to 2013, though values are projected to decrease in 2014 due to the price and quantity of crops. This reflects current economic conditions, current real estate investment market conditions,the terns and availability of financing for real estate, and property and market specific factors. The exposure time and marketing time would apply to all valuation premises included in this report. Page 65 of 134 APpmssal Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 A review of the local multiple listing services shows the following supply for property by type, and the number of sales in the prior twelve months and some for the prior five years in the market area or residential neighborhood covered by the multiple listings service. Multiple Listings Service Statistics(Supply and Demand, Sales are contracted within one year) Type(Entire MLS) Low Value High Value Median List$ MLS# Type DOM AVG Single Family Residential(SFR) $ 375,000 $ 2,000,000 $ 465,000 71 Listings 146 Single Family Residential(SFR) $ 200,000 $ 375,000 $ 289,000 105 Listings 110 Single Family Residential(SFR) $ 10,000 $ 200,000 $ 119,400 164 Listings 120 Single Family Residential(SFR) $ 375,000 $ 2,000,000 $ 408,500 44 Sales 55 Single Family Residential(SFR) $ 200,000 $ 375,000 $ 254,900 267 Sales 69 Single Family Residential(SFR) $ 10,000 $ 200,000 $ 129,900 687 Sales 51 Multi-Family Residential $ 39,000 $ 1,350,000 $ 101,450 62 Listings 163 Multi-Family Residential $ 25,000 $ 1,403,0001 $ 96,500 47 1 Sales 75 Agricultural $ 120,560 $ 1,990,000 $ 953,000 8 Listings 112 Agricultural $ 189,000 $ 725,000 $ 283,000 5 Sales 117 Commercialllnclustrial All $ 3,000 $19,588,000 $ 275,000 67 Listings 334 Commercialllnclustrial All $ 37,500 $ 4,565,000 $ 191,500 26 Sales 257 Commercialllnclustrial/Retail $ 535,000 $19,588,000 $ 899,000 23 Listings 335 Commercialllnclustrial/Retail $ 535,000 $ 4,565,000 $ 1,300,000 5 Sales 335 Commercialllnclustrial/Retail $ 200,000 $ 500,000 $ 299,900 23 Listings 321 Commercialllnclustrial/Retail $ 210,000 $ 450,000 $ 317,222 9 Sales 144 Industrial Only $ 3,000 $ 700,0001 $ 264,950 6 1 Listings 363 Industrial Only $ 810,000 $ 3,386,550 $ 1,750,000 3 Sales 468 Residential Lots Active 2016 $ 8,000 $ 3,500,000 $ 55,000 207 Listings 572 Residential Lots 2015 $ 15,000 $ 395,000 $ 45,000 74 Sales 435 Residential Lots 2014 $ 2,000 $ 260,000 $ 38,000 61 Sales 407 Residential Lots 2013 $ 2,500 $ 215,000 $ 43,500 72 Sales 350 Residential Lots 2012 $ 2,500 $ 124,900 $ 37,000 93 Sales 302 Residential Lots 2011 $ 4,000 $ 138,500 $ 34,500 86 Sales 280 Residential Lots 2010 $ 4,750 $ 306,121 $ 41,000 56 Sales 333 Multi-family Lots Active 2016 $ 110,000 $ 110,0001 $ 110,000 1 Listings 650 Multi-family Lots Sales(5 years) $ 10,000 $ 140,000 $ 42,500 13 Sales 187 Commercialllnclustrial Land(all) 2016 $ 36,416.00 $21,780,000 $ 442,800 64 Listings 468 Commercialllnclustrial Land(5 years) $ 1,500 $ 630,000 $ 150,000 21 Sales 249 Land Active(all) 2016 $ 7,800 $21,780,000 $ 68,900 296 Listings 528 Land Sales 2015(not listed above) $ 30,000 $ 2,160,000 $ 290,000 25 Sales 166 Land Sales 2014(not listed above) $ 19,000 $ 950,000 $ 186,175 16 Sales 263 Land Sales 2013(not listed above) $ 5,000 $ 1,054,000 $ 143,000 15 Sales 105 Land Sales 2012(not listed above) $ 21,000 $ 1,320,000 $ 122,500 20 Sales 104 Land Sales 2011 (not listed above) $ 25,000 $ 950,000 $ 106,000 27 Sales 309 Land Sales 2011 (not listed above) $ 30,000 $ 750,000 $ 215,000 23 Sales 84 Source:Dubuque Multiple Listing Service,as of Mar-16 Page 66 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 In support of the appraiser opinion for the marketing time and exposure time, information in the following chart was researched from the local multiple fisting service of current data and from the past few years. Exposure Time and Marketing Time Information Investment Type Months Source:PwC Real Estate Investor Survey Range(from,to) Rounded Avg. Office CBD,Suburban 2 15 7 Shopping Center 2 12 6 Warehouse 2 12 5 Apartments 1 6 3 Net Lease 2 12 5 Medical Offices 1 9 4 Lodging,Nati United Service 2 12 7 Source:Local Market Professionals Conrrercial&Office 1 60 3 to 12 Industrial 1 36 9 t 15 Residential 1 12 1 to 3 Multifarrily,Apartments 1 42 2 to 6 Land Corrm'Inr➢Development 1 36 6 t 12 Land Residential 1 84 3 to 15 Agricultural Farms 1 30 9 to 15 Feldemran Estunate(3yearsearches) 1 1 60 3 t 12 The subject market area or residential neighborhood range of property values are trending from stable to increasing and the overall supply is trending from an over-supply in some uses(office, retail)towards stability and an in-balance (depending on type of property and productivity of its use). Based on marketing with aprofessional real estate broker,it is the appraisers' opinion that a reasonable exposure time range and marketing time identified in the chart above are supported for the subject property. Page 67 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Vacancy Rates The TriState Region housing vacancy rates overall have increased since the attacks on our nation in 2001 (after most of the 1990's saw typical vacancies at less than 2%),though the area has seen continued decreases since the end of the Great Recession in 2009. Market participant discussions with local brokers and property owners indicate that rents have stabilized as the economy moves into recovery,with expectations that the economy is moving towards expansion in the next few years. A survey of other non-professionals showed that some low-to-moderate residential rents in the area increased and overall occupancy rates declined in the downtown area due to renovations that made more space available to rent. The Tri State Region has seen the renovation of many older downtown properties for low-to-moderate-income housing,which caused somewhat of an over-supply in 2013-2104 and some property owners had to accept less rent, or Section 8 housing or remodel/update their older(pre-1990) units. The downtown multiple unit residential vacancy rates have increased to a range that appears to have stabilized between 5%and 20%,with the upper floor apartments typically having the higher vacancy rates unless rehabbed and renting at market rates. Since 2009 and into 2015,modem multi-unit property has seen continued low vacancies and rent increases based on higher demand. Majority of the city commercial renovation and construction has taken place in the downtown. Wh He the west side had more construction that is new and less vacancies during the Great Recession, overall vacancy rates have been steadily decreasing since 2010. The Dubuque housing market has bucked the national declining occupancy trends, except in the office market. Overall improving economic outlook since 2010 has had a positive effect on the residential market with continued lower vacancy rates expected. Single unit residential dwelling vacancies tend to range between 0%and 15%,with lower rates for west and south end property(typically below 5%) and higher for downtown and north-end property(typically near 10%, with some upper levels at higher rates),though this rate has decreased with numerous dwellings taken as part of the Bee Branch Watershed Project on the north-end. Multi-unit residential and apartments tend to range from 0%to 10%historically over the past several decades(less in some areas and for some types of property,with an average move-in move-out rate accounting for 5%), and the influx of workers since 2010 has seen these rates remain at the lower end for all parts of the TriState Region, but recently there have been reports of a decrease in occupancy rates and lack of high-end units. The conversion from industrial to residential in the Millwork District of the downtown is filling of the high-end unit demand with 74 new units open in December 2014 through March 2015. Commercial property vacancy ranges from 0%to 30%for downtown property(higher end for upper- levels units,but showing decreases), and 0%to 10%for areas other than the downtown,though some of the newer west-side businesses saw vacancies in the range of 50%to 65%for a few seasons due to stational economy impact,but they appear to have recovered as the economic outlook indicates expansion for the rest of this decade. Second and third generation uses of property has been popular when they included economic support for renovation or remodeling. Specifically, office type property has seen some of the highest vacancies in 2013-2014 in the past thirty years,which are attributed to over-building, out-of-date existing and reduction in needs as the economic recovery takes place. Page 68 of 134 APpmgd Report of]101 Ce,Tm Aveae,Dubu ,Iw 52001-5016 Industrial and commercial service vacancies have typically ranged from 0%to 10%throughout the TriState Region for the past two decades,but there were some areas that had increases in vacancies to as high as 40%for older and outdated property as the national economy surge affects the region. As the stational economy recovers,the city has expanded its available modem industrial supply, and while there has been a steady but continuous demand for industrial land and buildings,many older industrial buildings have been or are being converted into planned commercial units. There had been steady increases in total annual employment,population, and yearly building permits over the past five to fifteen years to support similar strong trends in the future. The Greater Dubuque Development Corporation(GDDC)monthly report tracking of new construction in the City of Dubuque shows that from 2012 to 2014, and total construction value was reported as below average. since the beginning m me NEXT Campaign(7/1/12 Nmugh 12/31/15), esientot conwumn taals 5246.999.623.Commercial wnsum,tw iasis$396,971,W2.Taal�uaion epua5 5643,971595. CONSTRUCTION I GOAL$700,000,000 sva""oan ssxa.en,mx .mamamoa .w.�w..a.m.wir susn�4vs mpmpmao iamPmpmao WURce cityW0ubwue and ea to,c W,Maorwxarenard amnvarp W. In August 2014,the City of Dubuque reported the number of permits had declined in 2014 from the previous year 2013, and the year before in 2012. 2014 through end of July the ciy had 878 permits with $64,047,217 in value. In 2013, for the same period there were 1,119 permits with $83,330,149 in valuations. In 2012, over the same period there were 1,695 permits and value of $132,390,929. In 2014, the largerst permit was for renovation of the Dubuque Hormel Foods property. By the end of 2014, a total of 1,503 permits had been issued, showing a third consecutive year of reduced building permits. In 2015, the top projects included$2.98 million for Novelty Iron Works renovation, $2.4 million for Univeristy, of Dubuque Goldthorp Science Center, $2.4 million for Urdveristy of Dubuque Stoltz Sports Center, $2.33 million for Mercy Medical Center front entrance, and$1.25 million for McGrath Auto new facility. Page 69 of 134 Appmssal Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 City of Dubuque Building Permits Calendar Year thru end of April 2016 Year # of Permits Valuations T pe of Permits SFR 2-fm Multi-f= units Comm 2016 245 $14,935,893.08 21 0 0 2 2015 1280 $67,416,762.02 76 0 0 17 2014 1503 $142,629,836.61 80 0 0 11 2013 1810 $131,446,246.17 109 2 1 77 22 2012 2636 $165,286,047.80 120 1 5 57 17 2011 4598 $133,488,468.67 110 4 3 54 12 2010 1946 $142,568,665.91 78 10 13 (217) 10 City of Dubu ue New Construction Residential ldin Permit Year Number of Permits Average Cost 2013 92 $254,972 2012 120 $139,500 2011 112 $118,000 2010 113 $99,500 2009 75 $114,100 2008 44 $126,800 2007 77 $128,700 2006 93 $121,300 2005 104 $117,300 2004 86 $108,300 2003 78 $131,500 2002 76 $122,400 2001 67 $147,700 With respect to average wage, the GDDC shows $22.39 as of June 2014, $22.94 as of November 2014, and$25.40 as of the most current report,which exceeds the goal of$18.00+. me average wage for Dutweue county in N moer 2015 was reponea as$25.40. DUBUQUE COUNTY WAGE LEVEL I GOALSIS.00+ i2. i26. us. :2.4Mnaa9 :23 9 i29 0 i22W i]]SO 221 .2. .2050 1109 - $19 0 $19W i1 e.m Im Fib Nv. .q Mv� 1� 1�1� /.q ey1 W Nw DR �MSYbw �.ibNbn y-fe von �ibHw> �MNbrt �MH�. SCRJl E-U.S.Bureau a/IaE Slsms Cv tEngs9 nenr Slellsbcs(CES) Page 70 of 134 Appraisal Report of]101 Central Avenue,Dubuque,Iowa 52 001-5 01 6 The TriState Region market expects continued growth, subject to favorable interest rates, and a continued stability or increasing national and international economic market Local and regional business leaders and economic development officials indicate that Dubuque and the Tristate Region economy is working successfully. The TriState Region has done well in the 21st Century, despite troubles in the financial market and a weaker national economy, and discussions throughout the area indicate the recovery of the past few years is moving towards slow and steady expansion. Market Overview The market overview(analysis)considers both o z>zz _� z>z '� national trends influencing property hvalues, as _ '$ �.J well as conditions of the local market. The Appraisal oPReal Estate defines market analysis as "a process for examining demand for and supply of a property type in the geographic r •01% market area or residential neighborhood for that .x property type." The following is a summary of various findings researched to obtain data A% ---- ---- ---- ---- ---- ---- regarding current trends influencing property 2 °°9 zQ99 =Q1 P9 zQ1 =Co z°1z z°9z =Q1 z. z.1 . zQ1 values. 2Ozs 2..9 , :Q o °, ,�, °�, ,az, ,Q;, °W , ,Qs Local, state, and national unemployment rates ®S-201 were previously discussed in this analysis. While the percentage of unemployment has reduced from the Great Recession,6.3 percent in April of 2014 was the lowest recorded since September of 2008. The White House released a report from the Council of Economic Advisers in December of 2014, that the Real Gross Domestic Product(GDP)increased 4.5 percent at an annual rate in the third quarter of 2014, based on data from the Bureau of Economic Analysis. This follows a first quarter decline,partially attributed to the severe weather nationwide. 2015 2vd quarter reports 3.9%annual rate. The Greater Dubuque Development Corporation tracks the labor force,showing city unemployment for November 2014 at 3.5%and 4.5%in October 2014 for the state,with non-farm employment at 61,600 in October and 62,000 in November for the county. This labor force goal calls for stabilization at 60,000 by the year 2017. nve re5l m unem kW hent rate for Oc0 r 20]5 was reported as 3 0 and non-farm employment was 60.500- DUBUQUE MSA LABOR FORCE GOAL• 60,000 640a0 62 O= MEN SB.WO � =ice 50,000 54000 - - 53,000 50,000 X8,000 A6,DDD Jm fab Ab Apr Mey Jse Alf AM Sept Od !M Dec SOIHlC fiv n tare MReB 13..kpreRZ54Y 95 mr6da A..." Page 71 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 For the real estate market,the report stated that the housing market continues to see increased home prices and low interest rates. Additionally,the apartment sector continues to receive top investment conditions ratings. The commercial and multiunit mortgage originations have started slowing in 2014, but the most active lenders continue to be insurance companies. The national industrial market showed gradual declines in vacancy rates and slight increases in rental rates. Local commercial and industrial real estate data was obtained from several multiple fisting services (ML S)and that information has been previously presented and analyzed. The Appraisal Journal, Summer 2015,provides a "Financial Views"column with areal estate market overview. According to the article, the commercial real estate market has continued to exhibit improvement in terms of the overall fundamentals of supply and demand, though not as stellar. Many Key metrics point to continued economic recovery,though the slowdown in employment is a warning sign similar to other nations. Commercial real estate continues to improve. Several other sources quoted, such as Real CapitalAnalytiics, show apartment average cap rate at 6.02%, industrial at 7.4%cap rates and suburban offices at 7.1%cap rates. Office market fundamentals have gradually improved due in large part to alack of new construction and moderate increases in office employment. Retail market fundamentals of supply and demand have shown some improvement, with the dearth of new retail contraction the major factor behind the balancing sector. Fundamentals of the industrial market have generally improved along with the growth of manufacturing and warehousing sections,with vacancy rates trending downward. The apartment market has been"the darling of the industry' attracting developers, lenders, and investors. Some pockets have seen overbuilding cooling off the apartment sector. While overall activity has fluctuated,the market continues to function in a relatively efficient manner. The author, James DeLisle, concludes that the economy is thawing,but tempered. He reports the good news is those benefiting from economic recovery is growing. Industrial Supply and Demand Summary The area MLS and market studies indicate that industrial inventory was steady for several years before the Great Recession, and then increased significantly until 2010. As of December 2014, there was over 60,000 square feet of industrial space for sale and over 8,000 square feet of industrial space available for lease; a significant reduction from late 2013 that had over 100,000 square feet of available lease space. Recent demand shows less than 30,000 square feet has been absorbed in the past two years, indicating one to two years of industrial supply for lease. However, historically,industrial property tends lobe owner occupied and several of the spaces for lease are for sale. July of 2015 showed 8,879 square foot, and February 2016 showed 67,759 square feet for sale and for lease through the local MLS. Commercial Supply and Demand Summary The local ML S and market studies indicate that inventory was steady for several years, but the commercial supply of leased property has significantly increased since 2013. As of November 2013, there was over 202,000 square feet of commercial space available for lease, at an average rate of$10 per square foot gross. As of September 2014, the MLS showed over 175,000 square feet ofretail space and over 118,000 square feet of office space sale. There was over 111,000 square feet of retail space for lease and over 179,000 square feet of office space for lease. As of July of 2015,there was over 1,250,000 square feet of commercial space for sale in the entire DML S. As of December of 2015,there was over 1,250,000 square feet of commercial space for sale or lease in the entire DMLS, with over 400,000 square feet of commercial and retail space for lease in Dubuque. Page 72 of 134 APpmed Report of]101 C,,Vm Avvwe,DWvque,Zowa 52001-5016 Over the past three years,the MLS indicated the area has absorbed an average sale of 76,000 square feet per year(with most leases not working trough the MLS),projecting future demand has been stable to slower in the past few years, vacancies have increased and there is approximately a two to four year supply based on recent demand. In March 2015, Retail Strategies reported retail leakage is occurring in the region. The report was presented to a group with indications of gaps in department stores ($26 million to restaurants($14+ million), sporting goods ($12+million), to family clouting stores ($13+million). The report stated that over 130,000 people live within a 10-mile radius of the center of downtown Dubuque, and projections of 134,659 by 2018. With a city population of about 60,000 and county of about 90,000,the report shows a retail reach that is larger than expected. The report identified Kennedy Mall corridor and the Northwest Arterial region as prime destinations for new retail, and the downtown riverfront as most important to the community character. Agricultural Supply and Demand Summary162 It is unknown the impact of recent Dubuque County Zoning rales designed to preserve more land for agricultural purposes. In 2014, a second county agricultural district(A2)was created for single-acre in size lots versus the previous requirement of house sites being not less than 5-acres. This will allow farmers to rent or sell old farm homes on small sites instead of taking out larger sections of land. The new zoning would require approval and has several exclusions (auction sales yards, recreational hunting or game preserves,nursery products, sod farting, dog kennels and horse stables). In early 2015, ajudge ordered the Supervisors to approve a previously declined rezoning, causing the board to relook definition in the policy manual. Farmland has unique characteristics and one key item of influence is agricultural production. Farmland generates returns in the future and that income plays an important factor on the price buyers are willing to pay for agricultural land. Factors that come into play are crop prices, interest rates, strength of the U.S. dollar and demand for agricultural commodities. Lower interest rates reduce the rate of future capitalized returns, and lower capitalization rates means future income is worth more today. Many opinions and positions since 2009 to the current year indicated that farmland values should expect to see continued high levels of earnings, strong growth in crop returns, and interest rates to remain low. The important determinants of farmland prices is based on the market supply and the market demand,but those markets are not mobile and farmland cannot be relocated to a high price area to take advantage of higher prices. Farmland values are influenced by international and national events impact on local markets. Farmland quantity is not increasing and actual land used for cropland continues to decrease in America.163 Farmland management requires decisions without complete information, which causes many buyers and sellers to hesitate in transactions during rapidly changing economic times,thus supporting the appraiser contention that most farms that are sold were not fisted for sale. Farmland is not a liquid market and sales take time, and reasonable exposure times and marketing times flex each year. The current agricultural supply and demand is stable,but is often not immediately available since most fauns in the Midwest sell by auction or direct contact,not through listings. Historical records indicate 3% to 5%turnover of farms each year. 'a Several position papas and surveys have been researched in presenting the survnary. For values and positions,a paper Farmland Values Covent and Fuhrre Prospect,by Oloy,Hurt,Boehlje&Dobbins of Purdue University Deparhnent of Agricultural Economics(3/1/2011)is referenced and used for infomiaton. 'r NASS/USDA historical data on land in Earns Dom the http//www nass used govmat_and_Sttisocsfindez are is used for data Page 73 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 The March of 2014, Iowa Realtors Land Institute report indicated that farmland value plummeted by 7.1%in the previous six months in the Dubuque, Delaware,Jackson and Clayton counties area. Since 2009,the report shows average prices increasing each year until 2014. The 2014 report indicates that high-quality familand average price per acre is $11,104, or a$570 per acre drop from September 2013 prices,with Southeast Iowa seeing the largest drop of 8.4%. Area farmers and financial experts in the area indicate that farmland values have leveled off in Iowa, Wisconsin and Illinois, and those sales are fewer and prices are more fiat in the past year. The 2015 report indicates values dropped 11%from 2014. In September of 2014, Hertz Farm Management, Inc.published a report on the Agricultural Act of 2014. They reported that President Obama signed the act into law on 7 February 2014. A summary from the Congressional Budget Office estimated$956 billion will be spent over 10 years, with 79%of that for Supplemental Nutrition Assistance Program(SNAP),9%for crop insurance program, 6%for conservation, and 5%for commodity title programs. Compared to the 2008 farm bill,the biggest cut of $14 billion was to commodity title programs; next to SNAP at$8 billion, and crop insurance was increased$6 billion. In January of 2015, according to an annual Iowa State University farmland value report,the value per acre of land showed reductions in Northeast Iowa(Dubuque County had a 10.8%drop to$7,989 average per acre, Jackson County had a 5%reduction to$7,108 per acre average,Jones County had a 4% reduction to$8,003 per acre average, Clayton County had a 11.7%reduction to$6,899 per acre and other counties were in the same range of5%to 11%reductions. While farmland values are significantly higher over the past ten years, with the Iowa average at$2,629 per acre, the value drop was fueled by drops in commodity prices. Price Loss Coverage protects against a drop in price, paying the difference between a set reference price and the 12-month National average marketing price for the crop. The price difference is multiplied by historical yield and 85%of base acres for that crop. Fanners are allowed to update, one-time in 2014, both their base acres and their yield(90%of 2008-2012 average). A table in the report shows Wheat$ per bushel at$4.17 for 2008 Faun Bill and$5.50 for 2014; Com at$2.63 per bushel in 2008 and$3.70 in 2014; Oats at$1.79 per bushel in 2008 and$2.40 in 2014; and Soybeans at$6.00 per bushel in 2008 and $8.40 in 2014. Residential The housing recovery since the Great Recession has pushed home prices up in the TriState Region and the United States as a whole, after seeing significant decreases from 2007 to 2010. Kiplinger's 2014 housing outlook predicts continued increases, though more slowly in the future. This trend has held true in Iowa, even with continued low mortgage rates. While some homeowners have been able to take advantage of increased values enough to consolidate the higher interest loans or take our new loans at lower rates, that is not the case for all homeowners. Clear Capital forecasts home prices nationally will rise by 3%to 5%in 2014, which is about average historically, and Kipfinger predicted an increase of4%in the near future. The National Association of Home Builders predicts a growing economy,rising household formations,low mortgage rates and pent- up demand will help single-family housing production in 2015, with total housing starts forecast at 6.6% increase from 2014. Page 74 of 134 APPmssa1 Report of]101 Cer¢m1 Aveae,Dubu ,Iw 52001-5016 With single-family housing starts expected to finish at 2.5%in 2015,NAHB predicts a 26%increase by 2016. Multifamily starts are now at normal levels,with 2014 projected at 15%new production and holding steady in 2015, reported by NAHB. They predict residential remodeling declined 3.4%in 2014, due to slow first quarter economy and harsh winter, but expected to rise to 2.7%in 2015 and 1.3%more in 2016. After the Great Recession, as new households formation are beginning, after being depressed for several years, the NAHB predicts interest rates will stabilize in 2014 at 4%,but increase to more historical levels of 6%by 2016. Overall,the housing market expects to improve due to better employment, higher wages, and improving economic growth, even with the increase in mortgage rates. The City of Dubuque Housing Department indicates Dubuque has 7,600 total rental housing units. Summary and Conclusion On a national basis, current expectations are for continued modest improvements in economic conditions. The commercial real estate markets appear to be at the low point and are improving. Vacancy levels are declining and have shown modest increases. Agricultural markets have seen steady increases in value and the experts tend to expect continued increases with reasonable interest rates and crop prices/demand. The National Association of Realtors 2015 Forecast164 in January indicates continued economic growth and more reasonable lending standards could unleash pent-up demand for home sales. They predict 5.3 million home sales, an increase of almost 500,000, with average prices just below$216,000. Other indicates are Forecast 2014 2015 2016 GDP Growth 2.2% 2.7% 2.9% Existing home sales 440,000 620,000 700,000 Housing starts 1,000,000 1,300,000 1,400,000 Home price (mediant $207,600 $215,900 $225,300 Fed funds rate 0.1% 0.4% 1.5% 30-year mortgage 4.2% 4.9% 6.0% Commercial Forecast Office 2014 2015 2016 Vacancy Rate 16.2% 15.7% 15.6% Net absorption(sq ft 35,586 48,841 55,026 Completions (sq ft 27,073 42,154 44,460 Rent growth 2.6% 3.3% 3.6% Industrial Vacancy Rate 8.9% 8.5% 8.1% Net absorption(sq ft 110,652 102,463 105,780 Completions (sq ft 81,009 71,349 62,097 Rent growth 2.4% 2.9% 3.1% Retail Vacancy Rate 9.8% 9.6% 9.4% Net absorption(sq ft 11,350 18,871 23,792 Completions (sq ft 7,747 11,711 15,924 164 Realtor Magazine, January February 2015,National Association Realtors,Chicago,Illinois. Page 75 of 134 APPmssa1Report of]101 Cer¢m1Avvive,Dubu ,Iw 52001-5016 Rent growth 2.0% 2.5% 3.0% Multifamily Vacancy Rate 4.0% 4.1% 4.2% Net absorption(sq ft 216,296 171,167 143,626 Completions (sq ft 180,796 210,669 165,339 Rent growth 4.0% 3.9% 3.5% The Realtor report shows steady gains in existing home sales, 2009 at 3,820,000, 2010 at 4,190,000, 2011 at 4,260,000, 2012 at 4,660,000, 2013 at 5,090,000, 2014 at 4,937,000,with forecasts at 5,295,000 in 2015, and 5,380,000 in 2016.165 Population in Dubuque County is increasing,while surrounding counties are decreasing. The City of Dubuque population is increasing. The average household income for the city and the county are located in the addendum data. The local economy has growth in retail sales, and the unemployment rate is less than the state average. The city is the economic center for the regions and provides adequate access to healthcare, shopping, employment, schools, colleges, andunivetsities, places of worship, financial institutions, and recreation. The region and local area has experienced growth the past decade,but vacancies increased after the Great Recession, and only now is the market starting to slowly seeing decreasing vacancies and rental rates stabilizing. With new construction coming on-line in owner occupied property,market participants forecast stable rents and sale prices for inventory in the market. This forecast is viewed with some caution as the local market faces headwinds in employment and financing as well as the needed absorption of existing inventory. Projections would be for a gradual resumption of development activity, in conjunction with the modest pace of improvement anticipated in national and local economic conditions. The Greater Dubuque Development Corporation most current update of residential and commercial construction shows the following data gathered from government sources. Since de wginning of me NMcemyaign(]/1/12 mrougn 12/31/]51,residential construction unals$246,993.623.Commercial consVoction UAels$396,971,972.Total mnsVuction eeuals$643.971595. CONSTRUCTION I GOAL$700,000,000 sva.ewpxx ocac>!o.x moo uo]pmp0o.00 mpmpo]00 w,ow,owoo - ]Mpolpw0o -- _ i NPNP N.00 $OIIFCE Cify Mllub�que aM Dubuque Cowy,inmr{wa4H ana uninroryoralM. 165 Realtor Magazine, January February 2015,National Association Realtors,Chicago,Illinois. Page 76 of 134 APpmgd Report of]101 C,,Tm Avvwe,DWa q ,Iw 52001-5016 IDEN77FICA770N OF THE SUBJECTPROPER7T Property Type, Mailing Address, Legal Description,Property Rights, Owner Name, and Occupant The subject property type is commercial. The mailing address is 1101 Central Avenue,Dubuque, IA 52001-5016. The legal description may be found in the addenda or in the subj ect abstract. The subject property rights are Fee Simple interest, as previously defined in this report. The owner name is Legionnaires Drum&Bugle Corps Inc.,D/B/A Colts. The occupant is the owner. Property Ownership, Recent History, Listing Agreements or Offerings History, and Previous Uses Ownership and Sales History Based on available information, as of the effective date of this appraisal,the owner of the subject is list above and the subject property has not sold in previous 60 months(five-years), based on information obtained from the client, owner, and local and national multiple listing services. Rental History The subject is owner occupied and has no historical lease or rental history. Prior or Current LisfingAgreements or Offerings History As of the effective date ofthis appraisal,the subject building is not currently listed for sale with a real estate broker or openly marketed; and there are no known or reported contracts, agreements of sale or options to buy in effect,based on information obtained from the client, owner, and local and national multiple listing services. Previous Uses The subject was originally used as a grocery store and has had other commercial uses over the years. Page 77 of 134 AVpmssa,Report of]101 Ce,bud fvvwe,DWvque,Zowa 52001-5016 Physical Characteristics—Site Analysis]b6 Gross Site Area 10,240 e uare feet Road Front e CeNral Avenue and 11 Street Site Shape Rectangular Topography RoUing to level Land Use Restrictions None, expect b ordinance Adjacent Land Uses North: institutional East: institutional South: commercial puking lot West: commercial Traffic Count daily estimate 2013 10,700 to 13,000 Census Ma Number/Tract Number 19-061 0001.00 Flood Zone Not in Special Flood Area FloodMap FEMA 19061CO24317, 8/19/2013 Historic District n/a, Wasltin ton Street Neighborhood Demolition District Access Central Avenue, 11 Street& ey,typical berates, Visibility/View Institutional and Commercial Typical from highway Functional Utility Adequate Road Im rovements/Mainteriance Asphalt Adequate Sidewalk/Curb/Streetlighting Concrete curb, sidewalks Public lighting Alla /Maintenance Asphaltpaved/below standard Parkin Lot#/ Size None None Handicap Puking Adequate in metered and marked spaces along streets Comer Lot Yes Ingress/Egress Ade uate to street Excess/Surplus Land None identified Covenants, conditions&restrictions None detrimental identified Easement Typical public utility,no negative affect Item Provider Available to site or street Water(or well) City Water Site Sewer or septic) City Sewer Site Storm Sewer city Street Natural Gas Black Hills Site Electricity Alliant Energy Site Cable Mediacom Site Telephone Century Link Site Internet *multile providers Yes Mass Transit ue Cit ofDubuque B route Develo eat Potential Yes Compatible, ariequate for area Deed Restrictions None known Wetlands None known Rail access None known Adverse site conditions None known External factors impacting site None known Reciprocal Puking None known 166 Information obtained from appreisen observation and public records,including measurements of die land Page 78 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 soils In the absence of a soils report,it is a specific assumption that the subject property has adequate soil conditions to support the subject improvements at present and in the future, as evidenced in the immediate area. Mineral Rights: The precise value of mineral interests in existence, as well the economic feasibility to extra minerals from the subject property, or any anticipated future annual production or income from the production of minerals is unknown. This appraisal is not an exhaustive study of the actual or potential mineral production, and based on the effective date,the final opinion of value includes the mineral rights. Conclusions: The site appears adequate in terms of size and utility to support the improvements. Overall, there no other factors are known to exist that would negatively influence the usability or marketability of the site; and the appraiser has been tasked to assume the property is allowed for commercial uses. Physical Condition According to Marshall Valuation Service, a cost service published by Marshall and Swift,Los Angeles, California,the appraiser is using a physical condition matrix for commercial buildings to determine the condition similar quality and construction to the subject. The date the improvements were completed is circa 1949 or actual age 67 years. There is some evidence of deferred maintenance for the improvements. With routine care and maintenance, some improvements outlast their remaining economic fife. Using the physical condition matrix below,the subject overall quality and finish is standard for the market area, and the appraiser has selected standard condition based on the competing real estate market. Considering all factors, similar buildings have an estimated life of 45 years for commercial buildings. Page 79 of 134 APpmssal Report of]101 Cer¢ml Aveae,DW,uyve,I w 52001-5016 The appraiser estimates the effective age of the subject improvements at approximately 20 years,resulting in a remaining economic life of 25 years. Marshall Physical Condition Matrix Valuation Well Above Above Standard Standard Below Standard Well Below Service Standard (Good) (Average) (Poor) Standard(Very (Excellent) Poor) General Extremely Quite attractive Somewhat Rather unattractive Undesirable Appearance attractive and and desirable attractive and highly desirable desirable Building Modem,proper and Proper and Functional Unused,partially Antiquated, Services adequate adequate removed,or adapted unused or to presentoccupancy unusable Extent of None,perfect, like Some minor Showings signs Deterioration is Structural Deterioration new deterioration is of normal wear noticeable defects apparent, visible and uxu approaching unsound,safety and/or hazards may exist Degree of As originally As originally As originally Occupied by a use Basic shelter for Usefulness intended intended intended,or for other than originally random which it was intended occupants or renovated non-specific activities Occupancy Fully occupied, High occupancy Normal rate of Excessive turnover, Unoccupied for long tern tenants rate, a variety of turnover, often vacant long periods short,medium occasionally between occupants and long tern vacant tenants Maintenance Full preventive Planned Condition-based Mostly untended None &repairs maintenance plan maintenance orcorective in effect and addresses most maintenance,in according to situations before essence,when schedule becoming major needarises issues Replacements Items are regularly Replacements Items are Replacements and None and replaced or and renovations replaced or renovations are Renovations renovated well are scheduled to renovated on an made as a last resort before reaching the be made near the as-needed basis only end of their useful end of an items only lives useful life Housekeeping Complete Property is Cleaning Infrequent,light None housekeeping routinely program cleaning program has been cleaned,thins primarily for implemented,with are kept neat and appearance sake the health and orderly safety of building occupoints foremost Page 80 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Zoning Analysis The appraised property is zoned C4 Downtown Commercial District per the City of Dubuque Zoning Ordinance (refer to the addenda for an excerpt). The C4 District is intended to provide locations in the downtown commercial areas of the City for a large variety of uses. This district is not intended to have any application in undeveloped or newly developing areas of the City. The regulations are intended to encourage the maintenance of existing uses and the private reinvestment and redevelopment of new uses. Zoning Change is not likely. Lot Development Standards for permitted uses includes 75' maximum height, 20,000 square feet minim=for vehicle sales, and 3,500 square feet for day care. Uses permitted include Agricultural supply sales, Animal hospital or clinic, Appliance sales or service, Art Gallery, museum or library, artist studio, auditorium or assembly hall, automated gas station,Bakery (wholesale/commercial),Bank, savings and loan, or credit union,Bar or tavern Business services, catalog center, Construction supply sales or service, Contractors shop or yard, dental or medical lab, department store, furniture upholstery or repair,Furniture or home f nnishmg sales, Gas station, General office, Grocery store,Hotel,Housing for the elderly or persons with disabilities,indoor amusement center, Indoor recreation facility, Indoor restaurant,indoor restaurant,indoor theater, laundry, drycleaner or Laundromat,medical office, mortuary or funeral home,neighborhood shopping center,Parking structure, Pet daycare or grooming photographic studio, Printing or publishing,private club,public private or parochial school,residential use above the first floor only,retail sales or services, schools of private instruction Service station shoe repair, supermarket, tailor or alteration shop, upholstery shop,wholesale sales or distributor,tattoo parlor, or tour home. Refer to the zoning ordinance excerpt for conditional uses or accessory uses. Based on the appraiser analysis of the zoning ordinance and the property observation,the subject lot size, current use, and present improvements appear to be a legally conforming land use under the zoning classification. A title opinion has not been provided for analysis, so it is assumed there are no legal considerations. A survey of the property was not provided for analysis, so it is assumed there are no easements or encroachment that would be considered adverse to the subject. Page 81 of 134 APpmgd Report of]101 Ce,Tm Aveav,Dub q ,Iw 52001-5016 Building Sketch . 9R 01M6. LWT .IFYf �� f 1 5*u aac� I fM1 add_ sale"J1YgA pyy�Ill4 iIlIIM Wa IMBa~�fr Ia6 I � 4aL � _M_a R. I Page 82 of 134 APpmssalReportof]101 Ce,brd Avvwe,Dhbms,,Iw 52001-5016 Physical Characteristics—Improvements Analysis 167 Type of Property/Existing Use Commercial Building Type Non-profit commercial use Number of Buildings One (1) Number of Levels One (1) Basement Type/Sq Ft None None Gross Building Area 10,079 square feet(approximate above ground) Ceiling Height(location, size) Varies 10' 16' Site Coverage 98%based onmain level Landto Building Ratio(LTBR) 1 tot Site Improvements #of parking spaces 0 None Driveways#/type 0 None Sidewalks Along 11t1, Street and Central Avenue Landscaping None Lighting None YearBuilt 1949 Actual Age 67 years Estimated Effective Age 20 years Estimated Economic Life 45 years Estimated Remaining Age 25 years Depreciation Physical 44.4%physical Functional obsolescence See cost approach comments Economic obsolescence See cost approach comments Owner Disclosures Owner did completed the provided disclosure statement, see addenda 'w See photograph addendum Information compiled by Feld e men Appraisals was obtained Gom sources such as appraiser observation and public record;including measurements and layout of me building Page 83 of 134 APpmgd Report of]101 Ceatm Aveae,DW,uyve,I w 52001-5016 Building Components Foundation,footings Concrete with reinforced concrete slab Construction type Steel pole supports evident throughout, but ceiling and wall bea ms covered Floor structure Reinforced concrete slab Exterior walls Common Brick and stone edging Roof Structure Rubber membrane cover new in 2013,wood frame support, metal gutters and downspouts along rear of the building, sloped front to rear Offices are carpeted and vinyl, drywall, suspended tiles with fluorescent Interior lights. Warehouse is sealed concrete, insulated walls and ceilings and mercury vapor light Walls, interior Drywall and some paneling Insulation, interior Appears adequate Floor cover, interior Carpet, resilient tile,vinyl, and unfinished concrete Ceiling, Suspended tiles,tin tiles and plaster (evidence of past roof leaks not repaired interior since roof was replaced in 2013). Doors, interior Wood Doors, exterior Steel frame with glass front doors, steel side and rear doors Electrical Service 400-ampere service,with multiple panels Lighting. interior Fluorescent, exposed HVAC system Roof mounted package Windows Storefront along Central Avenue, glass blocks at entryway Elevators, stairways None noted Mechanicals, security None noted Security None noted Men's and women's restrooms, and one handicap restroom with shower, Plumbing kitchen has three-basin sink, laundry hook-up in rear storage area,and 40- gallon gas water heater. Fire Protection Fire exits,fire extinguishers,fire hydrant located within one block Personal Property No personal property or FF&E included in the valuation Site, parking lot None Signage None with real estate, considered personal property Quality of construction Standard to above standard quality materials and workmanship Condition Short Lived Floor coverings—Standard Walls—Standard Ceilings—Standard Condition Long Lived Roof-15+/-years (replaced in 2013) Exterior—10+/-years Deferred Maintenance None identified The curb appeal is standard,with functional utility, consistent with neighbor Conclusions and comparable type properties. Signage is adequate. No maintenance problems were identified. The layout is typical for existing use. Page 84 of 134 APpmgd Report of]101 Cer¢ml Avvwe,Dubu ,Iw 52001-5016 Tae andAssessment Data Analysis(Real Property) The Iowa Department of Revenue issued an Assessment Limitations Order, or"rollback," on property values in Iowa in November of 2013. The Order adjusts the property values used by local governments to compute property taxes for agricultural,residential, commercial, and industrial property. While the Department issues an Assessment Limitations Order each year,this year's Order is notable in that it implements the first phase of Govemor Branstad's 2013 Commercial Property Tax Reform package, 2013 Iowa Acts Senate File 295. Prior to the 2013 legislation, state law allowed no more than a four percent increase from year to year in the taxable values for agricultural,residential, commercial, and industrial property classifications. Effective with the 2013 Assessment Limitations Order, the increase in taxable values for the agricultural and residential property classifications is limited to three percent. Additionally, the 2013 law removed the assessment limitation for commercial,industrial and railroad properties and replaced it with a five percent reduction in the taxable value, from 100 percent to 95 percent. In 2014,the taxable value will be reduced another five percent, from 95 percent to 90 percent. There is no adjustment was ordered for utility property because its assessed value did not increase enough to qualify for reduction(utility property is limited to an 8%annual growth). The following are citywide assessed totals and rollbacks. 2015 TOTALS $ 3,829,215,831 2014 TOTALS $ 3,745,574,114 Agricultural $ 6,836,864 Agricultural $ 7,669,844 AgRes $ 2,616,270 An Res $ 2,451,630 Commercial $ 980,672,191 ' Commercial $ 1,141,264,257 Industrial $ 145,544,270 Industrial $ 138,045,130 Residenrial $ 2,512,846,313 Residenfial $ 2,456,143,253 Multi Res (new) $ 180,699,923 not complete 2015 Rollback 2014 Rollback Commercial% 0.00000% Commercial% 90% Industrial % 0.00000% Industrial % 90% Residenfial % 0.00000% Residenfial % 55.73350% Agricultural% 0.00000% Agricultural% 44.76021% Multi Res % 0.00000% 2013 TOTALS $ 3,705,510,088 2012 TOTALS $ 3,497,680,516 Agricultural $ 7,623,853 Agricultural $ 5,389,190 An Res $ 2,535,390 An Res $ 2,194,000 Commercial $ 1,149,416,765 Commercial $ 1,042,524,094 Industrial $ 135,014,710 Industrial $ 128,062,700 Residenrial $ 2,410,919,370 Residenfial $ 2,319,510,532 2013 RoOback 2012 Ro0back Commercial% 100% Commercial% 100% Industrial % 100% Industrial % 100% Residenfial % 52.8166% Residenfial % 48.0000% Agricultural% 59.9334% Agricultural% 69.0152% Page 85 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Apartment properties in Iowa were taxed at 100%of their assessed value until 2012. The rollback started at 95%in 2013 and will continue rolling until 2022 when the rollback will be equal to the residential rollback. In 2015, a separate category of tracking assessed values of multifamily residential was added to the rolls. County auditors will apply the adjustments to each property classification to compute the taxable values used to establish property taxes. Tax liabilities based on the 2013 taxable values are payable in fiscal year 2014-15 and will not be determined until local taxing bodies establish their property tax needs early next year. The Dubuque County and City of Dubuque Assessor has recently completed a mass appraisal valuation for all property in the county and city and values were effective January 1, 2014.68 In 2015,the Dubuque County assessor announced commercial property assessments would rise 120/0, versus the 19%proposed by the State of Iowa. The assessor noted that thirteen property sales in 2014 were used in determining the 12%increase. At the same time,the Iowa Department of Revenue proposed increasing agricultural land values by 25%, but was convinced to hold them level. In the city, commercial property assessments increased 8%in 2013 under an equalization order, and 10%in 2005. In the city, ten sales were used to determine assessments for 1,100 commercial properties. The following summarizes the subject's assessed value and taxes,not including any personal property or any furniture, fixtures and equipment. Assessed Value Information Assessor Taxable Value 2016 2015 2013 Land 10-24-456-010 $ 29,440 $ 29,440 $ 29,440 Building $ 189,910 $ 189,910 $ 189,910 Total $ 219,350 $ 219,350 $ 219,350 Taxable Value $ - $ - $ - Conbined Tax Rate per$1000 Millage Rate 33.01933 33.02504 Total Taxes Gross $ - $ - BusinessPropertyCredit $ - $ - Total Taxes Net, Rounded to nearest even dollar $ - $ - Source,Assessor Office According to the Dubuque County Treasurer records,there are no property taxes for the non-profit owner. The appraiser was unable to identify any special assessments,but will not be responsible for any identified. Using the information in the chart above would reflect annual net taxes of approximately $7,242 if the subject were not a non-profit. However, the assessed value has not been updated in the past several years, so using an estimated assessed value of$440,000 the annual net taxed would be approximately$14,528. These estimated taxes will be used in the income approach for expense calculations. 168 Telegraph Herald newspaper, September 29,2015,Dubuque,Iowa. Page 86 of 134 APpmgd Report of]101 Cer¢ml Avvwe,Dubuque,Zowa 52001-5016 APPRAISAL VALUA77ONPROCESS The appraisal valuation process is the gathering and analyzing of social, economic,governmental, and environmental factual data for use in estimating a logical conclusion of a defined market value as of a given effective date. This began with the identification of a problem, and ends with the solution reported to the client. The steps involved are; Identification of the real property, Identification of the intended use &user of the appraisal, Identification of the intended use of the appraisal, Identification of the property rights to be appraised,Effective Date of the opinion of value,Definition of value, estimated reasonable exposure & marketing time, extraordinary assumptions &hypothetical conditions, and other limiting conditions. Data is collected and analyzed based on its effect on the Opinion of Market Value for the subject property. This includes general data of the region, community, and market area or residential neighborhood in which the subject is located,with consideration of social, economic,governmental, and environmental data. Specific data considered will include site and improvement information, sales and listings, costs and depreciation, income &expense, and capitalization rate information. Specific data within close proximity is typically more desirable,but sometimes it is necessary to search beyond a market area or community to find sufficient and reliable data. The next step in the process entails analyzing and estimating the highest and best use for the subject site (as if vacant) and as improved(if applicable). The analysis includes the use of one of more of three approaches to value (Cost Approach, Income Approach, and Sales Comparison Approach). Finally, these approaches to value are reconciled into a range of value with a specific selected single dollar figure within those ranges. The appraiser considers the reliability and applicability of each approach to value. This final range of value and single figure is presented to the client in the reconciliation section ofthis report. The final step in the valuation process is the communication of the appraisal to the client. This appraisal is presented to the client and intended user in a report that conforms to the reporting standards of U SPAP Standards Rule 2-2(b)and the requirements of the Appraisal Institute. Clients and users of this report should pay particular attention to the appraisal indication of how data was obtained(i.e.provided by owner/borrower, public records, contractor construction estimates,management firm or individual proforma, property inspection reports, etc.). The method identified will provide an indication of the validity of the data(i.e. actual market data or owners information). The data source must be considered in the final valuation and in the client's final decision in whatever process is being used. It is imperative that the client or intended user of this report read any disclaimers, assumptions, and conditions presented throughout the appraisal. These items may include repairs or construction required, but it always includes the assumption of quality management and no negligent or Illegal activities by the owner/borrower or management of the real property.1fi' When the client or intended user is relying on the appraisal,it is critical they verify the owner and/or borrower's ability to manage said real property or business property before extending any credit. Should credit be identified for repairs or construction,it is important for the client or intended user to require the appraiser to complete inspections of the completed work before allowing any withdrawals to the owner and/or borrower. 169 Specifically,this relates or the income production and ability to repay any financial commihnm6. Page 87 of 134 Appmssal Report of]101 Cer¢ml Avvwg Dubuque,Iowa 52001-5016 The appraiser does not assume any liability for natural disasters or national impacts or changes that occur after the appraisal report date (such as 9-11 attacks on America, Hurricane Katrina in Louisiana, or the failure and/or recession of an entire economy such as the Great Recession of 2007-2009) and that have any impact on the income production or property value. Additionally,the appraiser does not assume any liability for the owner and/or borrower ability to pay or default of loan payments. Identifying Comparable Properfies190 Real property valuation considers tree approaches to value which are distinctly different given their underlying foundational premises. However, all three approaches rely on a comparability analysis in developing credible results under each approach. The Sales Comparison Approach provides an indication of value based on units of comparison derived from sales of similar or comparable properties. The Cost Approach requires land value comparability analysis, cost comparability analysis, and market extracted depreciation comparability. The Income Approach requires income/lease comparability, expense comparability,income potential comparability, capitalization rate, and minimum acceptable rate of return on investment comparability. All of the above approaches rely on the same fundamental underpinnings of determining comparability, and the identification of what constitutes a similar, or comparable property is critical to the property application of the tree approaches to value. The principle of substitution is the foundation of comparability. It states that a rational buyer will not pay more form item than the cost of an acceptable substitute.nl The appraiser will analyze transactions of closed sales,pending sales, and listings of properties and determine which acceptable substitutes are by weighing the elements of comparison. In developing an opinion of value for the subject property, the appraiser attempts to answer the question"What would a buyer of the comparable property have paid for the subject property given the observed sale price (or asking price, in the case of a listing) for the comparable property?" The more similar a competing property is to the subject property,the better. A high degree of similarity in property characteristics between the subject property and the available properties improves comparability. Many courts recognize"._that`similar' does not mean`identical,' but means having a resemblance, and that property may be similar in the sense in which the word is here used though each possesses various points of difference""' The appraiser weighs the relevance of the property characteristics (including,but not limited to: location, economic,legal and physical factors)based on the importance assigned by market participants. The most relevant property characteristic(s) are examined on each available property. By examining and weighing the relevant property characteristics,the appraiser is better prepared to select the most appropriate comparable properties available. Another court has defined a comparable property as one that"Has similar use, function, and utility; is influenced by the same set of economic trends and physical, governmental, and social factors; and has the potential of a similar highest and best use"1T "'The Appraisal Foundation,UBPAP 9ecocd Trpwwa Dmf[—zder¢fying Compamble Properties,10 Sone 2013. °1 This is adapted by the Appraisal Foundation from Zhe Appmed of,Rsd Ratae,13`Edition,pages 38 39. "Referred to by the Appraisal Foundation,City ofCheago P.Poccara aM93M.E.2d f6llcasois 1951. Referred to by the Appraisal Foundation,mlontnm.Cade Armotmed 2011,151-101,rarieved from h¢fJ/dma.opi.mtgob/bdls/mwlt 9Ut it- 101.hbn1(8/26/2012). Page 88 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Because real property is truly unique,there are always differences between the property under analysis and the selected competing properties used for comparative purposes. When considering a property as a comparable,the appraiser should first ask,"Is the property sufficiently similar,in all fundamental aspects to the subject property?" This leads to the critical analysis of evaluating the property characteristics that make a property sufficiently similar. The following chart summarizes the primary elements of comparison, Other than market conditions at the time of sale, location is the most Location(Market area or distinctive element of property analysis. Would a potential buyer of residential neighborhood) the subject consider the comparable property as a potential substitute Aspects given its location within the market area? Economic aspects include seller concessions, buyer has expected Economic Aspects expenditures after sale, financing considerations to reflect"cash equivalent' pricing. In lease comparability, economic aspects might include reimbursement terms,property owner amortization of tenant improvements, etc. Also, includes market conditions: especially time, which is an element of all property analysis. Did the comparable transaction occur under similar market conditions as the subject property's date of analysis? What are the driving elements that differ and contribute to the adjustments necessary to infer pricing within the current market? Comparability of property title and occupancy tenure, generally Legal Aspects expressed as"interest appraised" Highest and Best Use: significant effort should be given to compare similar transactions based on the subject property's hihest and best use. Each type of real estate (residential and non-residential)has physical Physical Aspects characteristics that are desired or required by buyers. Different market area or residential neighborhoods demonstrate different buyer preferences with respect to cost/value of physical property characteristics. An exhaustive list could be compiled considering all of the various physical elements by asset class that might be measured and compared. What are significant to the analysis are those elements that contribute to measurable price differences in the market. A summary listing of typical major physical elements of comparison by asset class is provided as a supplement to this table. The appraiser must confirm the type of sale transaction and using experience and skill in consistently observing the market sales,listings and pending properties, determine which factors drive credible value indications by comparison. In markets where competing properties are highly similar, the size and number of adjustments will be less and smaller. When a comparative analysis requires large and numerous adjustments,the true comparability of the property is questionable in the analysis. While Fannie Mae provides specific guidelines(Government Sponsored Enterprises)for residential property, they do not apply across all property types. The key is the appraiser will explain and support the rationale for which comparables to use and the adjustments made regardless the amount of an adjustment as part of the required reconciliation within the approach. A necessary consideration for determining whether a property is comparable is whether the highest and best use of the subject and the competing property is the same. In fact, USPAP specifically refers to fiilly understanding the concept of comparability to avoid comparing property with different highest and best uses or with imppropriate factors for comparison. Page 89 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Factors for consideration in selecting comparable properties include, • Market area and neighborhood, location is primary consideration, but a geographic area should be competitive, which may include a few blocks, an entire city,metropolitan area, a region or the entire nation; typically through analysis of the user market or the buyer/seller market • Demographic, socio-economic, lifestyle,geographic and economic; type of structure, architectural style,land use, site size, occupancy and vacancy rates, income levels, climate, natural resources,population trends and rate of growth, median prices and price range distribution, economy (obs, industries, diversification, growth, tax district), cultural and entertainment opportunities, educational resources (including school districts), infrastructure, affordability, availability of necessary services (hospital, public transportation,utilities), exposure to nearby properties, absorption rates, demand and market times, condition and quality of property, sustainability features or characteristics, rental rates,historical renovations or newly building properties,typical building size, or demographic components • Bracketing; a probable range of values superior, similar or inferior to the subject • Comparable versus competitive property; and • Highest and Best Use Examples of physical comparability factors include the following major asset classes, • Residential Homes; Home Size; Lot Size; Bedrooms/Bathe; View, Amenities, Water-frontage, Neighborhood(Schools, Police,Fire, Safety); Garage; Basement, Architectural Style, Construction Quality\Finishes, Age, Type (Attached, Condo, Townhome, Detached), Special Features • Office; Owner v. Tenant Occupied; Single/Multi-Tenant; Medical/Professional; Ownership Type (Condo,Fee, etc.); Date of Construction; Mechanical; Architectural Style/Age; Construction Quality; Amenities, Tenancy Mix; Functionality; Floor plate Size; Land Size; Parking Suitability for Use • Retail; Single/Multi-Tenant; Class of Retail(Grocery Anchor,Neighborhood Strip, etc.); Tenant Quality; Tenant Tenure, Visibility, Proximity to Residential,Parking Suitability; Age, Construction Quality, Amenities, Support Uses driving demand for retail use,Floor plan/Layout, Land Size, Signage • Industrial; Single/Muffi-Tenant, Tenant Profile, Suitability to meet industrial user demand, ceiling heights, dock and loading door sufficiency,power sufficiency,Proximity to industrial demand generators, age, construction quality, land size, parking and loading circulation, floor loads, access to water/rail • Apartments: Unit Mix, Standard Unit Size, Utility Metering and costs,proximity to demand drivers for rental demand, access and visibility, amenities Age; Architectural Style, Construction Quality, Tenant Mix,Rent Control, Parking, Storage, On-Site Amenities • Agricultural; Site Size, Topography, Soil Suitability, Crop Yield, Irrigation/Water Availability, Utility Availability, Age of farm buildings, Environmental regulations, Availability of subsidies, Plottage, Access to Storage,Farm House Divisible,Proximity to applicable markets Page 90 of 134 AVpmssal Report of]101 Cer¢ml Avvwe,Dubuque,zowa 52001-5016 HZGHESTAND BEST USE ANALYSIS In appraisal practice,the concept of highest and best use represents the premise upon which value is based in this report. Highest and Best Usel74 is defined,`the reasonably probable and legal use ofvacant land or an unproved property that is physically possible, appropriately supported. andfinanci eHy feasible and results in the highest value. Dee four criteria the highest and but use must meet are Legal permissibility,physicalpossibility,financialfeasibuity, and marimmnproductivity. Alternatively, the property use ofland or unprovedpropery—specific with respect to the user and tuning ofthe use— that is adequately supported and results in the highest present value." Highest and Best Use analysis involves analyzing the subject as if vacant and as improved. As If Vacant; the definition immediately applies specifically to the highest and best use of land. Landis said to have value,while improvements contribute to the value of the property as a whole. When vacant the appraiser values as it exists. When not vacant land,its contribution to the value of the property as improved depends on how it is used. As Improved; the appraiser recognizes that in cases where a site has existing improvements on it,the highest and best use may very well be determined different from the existing use. The existing improved use will continue,however,unless and until the land value in its highest and best use exceeds the total value of the property in its existing use including the cost to remove the improvements. The determination of the highest and best use results from the appraiser's judgment and analytical skill. The highest and best use determined from this analysis will represent an opinion not a fact found. The highest and best use of the land and improvements becomes the basis for estimating value in each valuation section of this report. The decision as to what is highest and best use involves the consideration of the type of use (residential, commercial, agricultural, industrial, etc.),the intensity of the use (density,land to building ratio, etc.)and the period or timing of the use that will allow greatest net return to the land as if vacant and as improved. 171 the Daccormry ofRsd Fame,The Appraisal Institute,Chicago,Illinois Page 91 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dubu ,Iw 52001-5016 As If Vacant Highest and best use of the land or the site as if vacant, or can be made vacant,is analyzed using the four tests or criteria the highest and best use must meet; legally permissible,physically possible, financially feasible and maximally productive. Leeal Permissibility is the analysis of the uses permitted on the site by zoning, deed restrictions,leases, easements, and others.175 The site zoning is appropriate for the current use, no detrimental easements or encroachments were found, and itis assumed the current zoning does not preclude the current use. Avariety ofuses are permitted. It is legally permitted to develop the site with any of the permitted uses, or any of the conditional uses assuming city approval. Physical Possibility is the analysis of the physical features and location of the site and structures. The site analysis includes the size, shape,topography, etc. The physical analysis of the improvements considers building type, design, quality of construction, condition, and functional utility of the improvements.11 The subj ect lot size, frontage, depth, and shape would support several uses,including the current improved use. The capacity and availability of public utilities such as water or sewer are important considerations. Topography and subsoil conditions are important considerations. A cleared and graded site will be more time and cost efficient to develop compared to one with vegetation and significant elevation changes. The topography is conducive for development and there are no known wetlands or hazardous flood zone areas. It is assumed the site can support contemporary construction. All utilities are presently available from adjacent roadways and the water detention system is via public storm sewer system. The site has access to and from the area transportation network and adjacent roadways. Financial feasibility is the economic feasibility test in the highest and best uses analysis. It includes the analysis of demand, supply, and the absorption rate or opinion of marketing time of that use or uses which are economically feasible.177 The financial feasibility is market driven and is influenced by surrounding land uses and location(with consideration of the market area life cycle- development, stabilization, disintegration or revitalization). The appraiser has determined that the subject fits current economic demand, based on financial incentives and financing available,which would support commercial uses. Refer to the market analysis for other supporting data. Maximum Profitabilitv is the use, which results in the maximum profitability of the site, which may be beyond the scope ofthis assignment. The recipient of the property's productivity greatly determines what the use should be. The maximum profitability for the subject AS IF Vacant at this time is likely for commercial development use. °5 RefaW the applicable addmdum and discussion tivoughontthe report °6 RefaW the Improvanents Descnption and Analysis Section ofthis report Refa to the Market Analysis Section ofthis report Page 92 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dubu ,Iw 52001-5016 As Improved Highest and best use of the property as improved is analyzed using the four tests or criteria the highest and best use must meet, legally permissible,physically possible, financially feasible, and maximally productive. Legal Permissibility is the analysis ofthe uses permitted on the site by zoning, deed restrictions,leases, easements, and others.17S The property as improved appears to be a legal conforming use based on current zoning, and meets current parking requirements. There are no known violations of the zoning requirement, and there are no known private deed restrictions, which adversely affect the value or marketability of the property. A title opinion has not been provided for this analysis. Continued use of existing improvements is legally permissible. Physical Possibility is the analysis of the physical features and location of the site and structures. The site analysis includes the size, shape,topography, etc. The physical analysis of the improvements considers building type, design, quality of construction, condition, and functional utility of the improvements.171 The subj ect current improved use includes a commercial building. There is no off-street parking on site, but a large parking lot across the street is available, as well a parking ramp within one block. A survey has not been provided. Continued use of the building appears physically possible. Financial feasibility is the economic feasibility test in the highest and best uses analysis. It includes the analysis of demand, supply, and the absorption rate or opinion of marketing time of that use or uses which are economically feasible.180 The financial feasibility is market driven and is influenced by surrounding land uses and location(with consideration of the market area life cycle- development, stabilization, disintegration, or revitalization). The appraiser has determined that the subject existing use fits current economic demand, based on financial incentives and financing available, and the existing occupancy. The continued use of the building appears to be financially feasible. Maximum Profitability is the use that results in the maximum profitability of the site,which may be beyond the scope of thus assignment. The recipient of the property's productivity greatly determines what the use should be. The improvements appear to conform to the highest and best use of the site as if vacant and it is the appraiser opinion that the continued AS IS use appears to represent the maximum profitability for a commerda] use. °8 Refa to Phe applicable addmdum and discussion Plvoughontthe report Refa to Phe Improvanents Descnption and Analysis Section ofthis report neo Refa to Phe Market Analysis Section oftais report Page 93 of 134 APpmgd Report of]101 Ce,Tm Aveae,Dub q ,Iw 52001-5016 Existing Use: Industrial use The four tests of legal permissibility,physical possibility, financial feasibility, and maximum profitability were applied to the six potential economic uses commonly found in the local market area. Potential Use Likelihood of being Probability/Likelihood Support Agricultural Legally Permissible Not Possible or Likely Not an allowable use Physically Possible Not Possible or Likely Not adequate land size Financially Feasible Not Possible or Likely More intensive land uses Maximally Productive Not Possible or Likely yield higher value Recreational Legally Permissible Not Possible or Likely Not an allowable use Physically Possible Not Possible or Likely Not adequate land size Financially Feasible Not Possible or Likely More intensive land uses Maximally Productive Not Possible or Likely yield higher value Residential(single unit) Legally Permissible Not Possible or Likely Not an allowable use Physically Possible Not Possible or Likely Adequate land size Financially Feasible Not Possible or Likely More intensive land uses Maximally Productive Not Possible or Likely yield higher value Residential(multi-unit) Legally Permissible Not Possible or Likely Not an allowable use Physically Possible Not Possible or Likely Adequate land size Financially Feasible Not Possible or Likely More intensive land uses Maximally Productive Not Possible or Likely yield higher value Commercial Legally Permissible Possible &Likely Some allowable uses Physically Possible Possible &Likely Adequate land size Financially Feasible Possible &Likely Meets financial and Maximally Productive Possible &Likely productive feasibility Industrial or Legally Permissible Not Possible or Likely Not an allowable use Commercial Service Physically Possible Not Possible or Likely Adequate land size Financially Feasible Not Possible or Likely More intensive land uses Maximally Productive Not Possible or Likely yield higher value Page 94 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 MARKET VALUE AND APPROACHES TO VALUE ANALYSIS The appraisal process is designed to evaluate all factors that influence value. General, regional, and local area information has been presented to inform the intended user of general outside influences,which may affect value. In addition,the site and existing improvements have been summarized in detail. An analysis of the subject's highest and best use has been presented to evaluate the influences of legal, location,physical, and market conditions that influence the subject property. The next part of the appraisal process deal directly with the valuation of the property. The Opinion of Market Value is typically based on a correlation of values obtained from the tree approaches to value. These three approaches to value include the Cost Approach, Income Approach, and Sales Comparison Approach. These approaches are subject to the economic principle of substation: A knowledgeable purchaser will not pay more for a property, than it would cost to acquire an equally desirable property, assuming there is no delay in acquiring the alternative property. Market Value is defined as a type of value, stated as an opinion, that presumes the transfer of property (i.e., a right of ownership or a bundle of such rights), as of a certain date,under specific conditions set forth in the definition of the tear. The appraiser will perform duties in accordance with U SPAP,within acceptable appraisal standards, based on realistic projections(if any are provided)and property rights previously identified. The appraiser will use appropriate comparable properties if and when available, or identify when not available in the current real estate property market for the subject property. In appraisal practice, an approach to value is included or may be omitted on its applicability to the property type being valued and the quality and quantity of information available. The Cost Approach to Value is based upon the theory of substitution that a well-informed buyer will pay no more for a property than the cost to replace it in a reasonable time, plus the cost of similar land. Typically,the buyer will pay something less for existing property than its cost new(attributable to factors of age and changing standards of layout and construction),which is reduced by three categories of depreciation(physical, functional or economic,if applicable)to arrive at a discounted improvement value. Replacement Cost New (RCN)is derived from the Marsha[[Valuation Service, as well as local builders when available. The remaining economic fife is the appraiser's opinion based on the quality and condition of the buildings. The rates of depreciation are estimated from sales of improved properties or from guidelines estimated by"visual observation" In the Cost Approach,the Opinion of Land Market Value is based on market research and general knowledge with the assumption that is can be put to its highest and best use using a Sales Comparison Approach to Value method. For existing property, this approach may or may not be developed and used in the report, since it is particularly applicable when it involves new improvements and less applicable for older existing improvements. For vacant land, this may be the only portion of this approach that is completed. Page 95 of 134 AVpmssal Report of]101 Cer¢ml Avvwe,Dubuque,Zowa 52001-5016 There are several possible reasons for excluding the Cost Approach because of applicability. (1)If a property is in a dense urban area that is highly built out, there will be few vacant land sales (the occasional land sale may be an improved property requiring demolition to redevelopment). (2) In a changing market, as building ages, depreciation becomes greater and more complex thanjust its physical wearing out. Functional obsolescence sets in as tastes and technologies change. In down markets, external obsolescence results when prices cannot justify new construction. (3)In Markets characterized as having areasonable balance between supply and demand, buyers will have sufficient alternative buildings from which to select. They will select buildings based on price/unit or price/per square foot or on rate of return requirements,but rarely on land value and cost to build, and the Cost Approach is not normally a viable alternative. The Income Approach to Value considers the stream of income that the property is likely to produce during its economic fife. The two common valuation techniques include direct capitalization and the discounted cash flow (DCF). Direct Capitalization converts income to a value using a Capitalization Rate derived from market extrapolation of sales, surveys or a determined band of investment. DCF is a valuation method used to estimate the attractiveness of an investment opportunity, using future free cash flow projections and discounts them(most often using the weighted average cost of capital)to arrive at a present value,which is used to evaluate the potential for investment. This approach considers the current and historical income or the potential income based on the property potential to earn a future income stream. This value is based on the principle of anticipation, as the owner is trading current assets for the right to a future income stream. Income production maybe impacted based on the management and marketing of the subject property. The property is owner occupied, or occupied by a business of the owner, this approach may have less weight in the Opinion of Market Value. The Sales Comparison Approach to Value is based upon the Principle of Substitution that states that a prudent purchaser would pay no more for real property than the cost of acquiring an equally desirable substitute on the open market. It presumes the sale of similar or nearly similar properties from which units of comparison may be extracted and applied to the property being appraised for an indication of property value. Using this approach, an appraiser produces a value indication by comparing the subject property with similar(i.e. comparable)properties. The sale prices of the properties that are judged most comparable tend to indicate a range in which the value indication for the subject property will fall."' The appraiser develops indications of the degree of similarity or difference between the subject property and the comparable sales by considering various elements of comparison; real property rights conveyed, financing terms, condition of sale, expenditures made immediately after purchase,market conditions, location, physical characteristics, economic characteristics, use/zoning, and non-realty components ofvalue.l az Applicable approaches: Typically,real estate may be valued by applying one or all three approaches discussed above. It should be noted that while all applicable approaches should have some reasonable correlation, specific adjustments are not exactly the same in each approach. This is because each approach indicated the market value of the subject by measuring different types of market data and different market participants. For example, purchasers of vacant land usually have a larger choice of uses and utility. Purchasers of improved property have fewer choices limited by the existing improvements. Tenants have a different interpretation of location based on their desires and not the whole property or site. 181 ZhzAppmgd of,Rsd H ease,Appraisal Institute,Chicago,Illinois 182 ZhzAppmgd of,Rsd H ease,Appraisal Institute,Chicago,Illinois Page 96 of 134 AVpmssal Report of]101 Cer¢ml Avvwe,Dubuque,Zowa 52001-5016 For this appraisal, each of the three approaches to value was considered to assist in support of an opinion market value. All three approaches were developed and analyzed in this appraisal. Reconciliation and Opinion of Value is the final analytical step in the valuation process is the reconciliation of the value indications derived into a value conclusion. Reconciliation occurs within each approach to value,but the final reconciliation occurs at the end of the valuation process. The value conclusion can be expressed as a single number, as a range of numbers, or as a relation to some benchmark amount. The nature of the reconciliation depends on the appraisal problem,the approaches used, and the reliability and adequacy of the data used."' 'a ZhzAppmgd of,Rsd Hate,Appraisal Institute,Chicago,Illinois Page 97 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Opinion of Land Market Value The appraiser has determined that the highest and best use for the property,As If Vacant, would be for commercial development uses. In order to determine the value of the site as if vacant, the appraiser has used competitive land sales in the county,with emphasis on sales in the same location. Consideration maybe given to lot size, location,traffic, zoning ordinance, date of sale, access, and allowable use. Sales were researched throughout the Dubuque area over the previous few years as indicated, including others not used in the Land Sales Chart on the next page. While there are vacant land parcels available for sale,the majority are usually marketed by the owner developers, are larger in size and prior to development. Competitive land is usually not available in the downtown or in other dense urban locations, except by purchasing land with improvements and then demolishing for the use of land. The Greater Dubuque Development Corporation web page lists land available for purchase or for lease and sale. However, these are all in newer developed area, many with restrictions on the site and building whereas the subj ect is located in an area that typically sees the purchase and demolition of an existing building to obtain the land, and has few limitations on percentage or green areas or building materials and exterior land use. There are some current East Central Iowa Multiple Listings Service listings of vacant land, but all are larger than.75-acres and not considered comparable to the subject site and location. While there are many vacant land parcels available for sale in the market area,the majorities is usually marketed by the owner developers or are significantly larger than the subject is. Competitive land is usually not available in the downtown, except by purchasing land with improvements and then demolishing the improvements for the land; and the location in a more commercial area supports the use of land sales with more commercial uses. In Dubuque,those with zoning Cl or C2 have historically sold approximately 17%to 30%ofthe average land values, and 12%to 22%of land sales zoned C3 General Commercial, C4 Downtown Commercial, and PC Planned Commercial land. The appraiser has included older sales researched to identify those percentages, and all sales are included in the addendum. Comparables older than ayear have upward adjustments for date of sale, with increasing values of approximately 1%to 3%per year over the past 10 to 15 years. Of the sales identified in this report, they support overall increases in value in the past five years and an adjustment for those sales uses older than one year will be adjusted 3%per year. Page 98 of 134 APpmssal Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Land Sales Summary Chart SPLES INFORMATION Subject Land Sale#10 Land Sale#11 Land Sale#16 Address 1101 Central Avenue 275 Harrison St 485 Central Avenue 2350 Memen Court City, State Dubuque, IA Dubuque, IA Dubuque, IA Dubuque, IA Actual Sale Price nla $ 1,500,000 $ 251,000 $ 185,000 Adjusted Price (CEV) nla $ 1,500,000 $ 251,000 $ 185,000 Sale Date Na 8/15/2013 9/25/2013 1212212015 Price Per Square Foot nla $ 10.19 $ 13.65 $ 4.98 Price Per Acre nla $ 443,729 $ 594,377 $ 216,932 Proxirrity(rriles) 1 1.3 0.4 4.4 Verification Source Publicllnspect Public Record Public Record Public Record Financing As Cash Deed Deed Deed Grantor/Seller nla M&S Leasing II LC Finnin Real Estate III Kerkel Rheault RE Grantee/Buyer nla Spahn&Rose Lumber Fritz-Dubuque LLC FidelityCompany Document# nla 2013-13721 2013018721 2016-165 Assessor# 10-24-456-010 10-25-488-014 10-25-237-008 10-16-377-011 Actual Use Commercial Industrial/Comm Svc Commercial Commercial COMPARISON ITEMS ITEM ITEM ITEM ITEM Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Financing/Concessions nla Cash Cash Cash Conditions of Sale nla nla nla nla Market Conditions Stable Stable Stable Stable CHARACTERISTICS ITEM ITEM ITEM ITEM LOCATION Urban Urban Urban Urban PHYSICPL Size (square feet) 10,240 147,252 18,395 37,148 Traffic Counts High Low,but high nearby High Low Shape Rectangular Irregular Rectangular Rectangular ECONOMIC Access/Corner Lot Public Road Public Road Public Road Public Road View InstitutionallCommer Commercialllntlustrial Commercial Commercial MsibilitVFrontage Typical commercial Typical Commercial Typical Commercial Typical Commercial ZONING and USE Zoning/Density Downtown Commercial Light Industrial General Commercial Neighborhood Comm Utilities Available Available Available Available Available H ighestantl Best U se Commercial Commercial Commercial Commercial Improvements As if Vacant See notes See ntoes None Known Page 99 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Property Rights Conveyed Adjustments for property rights must be made when the property rights conveyed in a sale transaction are different from those being appraised particularly when they have an impact on the sale price. As related earlier in this report, the fee simple estate is defined as"Absolute ownership unencumbered by any other interest or estate, subject to the limitations imposed by the governmental powers of taxation, eminent domain,police power, and escheat" An example of a comparable sale that would require adjustment is a property that is encumbered by a lease where the tenam pays a rent lower than currently achievable in the open market, or a below market rental rate. The below market lease would have a negative impact on the sale price because the purchaser would need to pay less to achieve the same return as a property currently rented at market rent levels. In this case, as the below-market lease have a negative impact on the sale price; the comparable would need to be adjusted upward to be considered similar to the subject property. Conversely, a sale property achieving above-market rental rates would be considered superior to a fee simple estate. Financing The transaction price of one property may differ from that of an identical property due to different financing arrangements. For example, the purchaser of a comparable property may have assumed an existing mortgage at a favorable interest rate. In another case, a developer or seller may have arranged a buy down, paying cash to the lender so that a mortgage with a below-market interest rate could be offered. In both of these examples,the buyers probably paid higher prices for the properties to obtain below-market financing. Conversely, interest rates at above-market levels may result in lower sales prices. Sales Concessions Ifknown that the comparable or subject seller paid part ofthe buyer closing or inspection costs, or money towards repairs of the property,the final sale price would be adjusted for it. Conditions of Sale Adjustments for conditions of sale usually reflect the motivations of the buyer and the seller. In many situations,the conditions of sale significantly affect transaction prices. For example, a developer may pay more than market value for lots needed in a site assemblage because of the plottage value expected to result from the greater utility of the larger site. Conversely, a sale may be transacted at a below-market price if the seller needs cash in a hurry. A financial,business or family relationship between the parties to a sale may affect the price of the property. Interlocking corporate entities may record a sale at a non- market price to serve their business interests. One member of a family may sell a property to another at a reduced price, or a buyer may pay a higher price for a property built by his ancestors. Further, listings, which have not been affected by typical negotiation,generally indicate a higher value than a completed sale. while this type of information is not always available, or shared, the appraiser reserves the right to make adjustments if such data is not mentioned and later becomes known. Page 100 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Market Conditions(Date ofSale) Comparable sales that occurred under market conditions different from those applicable to the subject on the effective date of value require adjustment for any differences that affect value. Changes in market conditions generally relate to supply and demand. National,regional, and local economic trends or events may influence the value of a property overtime. For example,the announcement of a major employer's entry into a market area may have a significant positive impact on values due to demand created for support uses in the area. Conversely, exodus of a major employer often has a negative impact on values. Location A property's location is analyzed in relation to the location of the comparable sale properties. An industrial location may be superior to another due to proximity to transportation facilities, including highways,railways, airports, etc. A commercial location may be superior to another due to proximity to a major retail development; access to traffic counts along major arteries, etc. A residential use may be superior to another due to location within a specific school district, economic makeup of residents within the market area or residential neighborhood, taxation policies, etc. Size Typically,larger sites sell for a lower per unit price due to economies of scale and greater capital outlay requirements. Conversely, smaller sites sell for higher per unit values due to economies of scale. Zoning In the valuation of vacant land, zoning is one of the primary determinants of the highest and best use of the property because it serves as the test for legal permissibility. Thus,zoning or the reasonable probability of a zoning change is typically a primary criterion in the selection of market data. The value of a site can be impacted based upon the type and density of development allowed on the site. Topography/Elevation or Grade Topography refers to the site's relief features or surface configurations. These can include]rills, valleys, slopes, lakes, and rivers. Other factors include land that is heavily wooded or overgrown with scrub and vegetation. All ofthese factors affect the development cost ofthe site. Sites that are heavily wooded or overgrown with extreme changes in topography would be more expensive to develop as opposed to a site that is clear of trees or vegetation and is level. Elevation or grade refers to the level or elevation of a lot. Sites that are well below road grade may require fill prior to development, would be more expensive to develop as opposed to a site that is at or above-grade, and requires no fill. Utilities Sites must be adjusted for the availability of utilities. In rural areas,public water, sewer, telephone, and electric may not be immediately available to the site. The lack of utilities will have a negative impact on the value of this type of site versus a site that has been improved with utilities. The cost of bringing utilities to the site must be considered in the adjustment process. Shape Extreme shape irregularities impede development potential or result is abnormally high planning or development costs. Page 101 of 134 APpmgd Report of]101 Cer¢ml Avvwe,Dubuque,Zowa 52001-5016 Land Sales Adjustment Chart.84 Comparable Sale#10 Sale#11 Sale#16 PropertyAddress 275 Harrison St 485 Central Avenue 2350 Meinen Ct PropertyCity Dubuque Dubuque Dubuque Assessor Parcel# 10-25-478-014 10-25-237-008 10-16-377-011 PropertyType Land Land Land Conditions of Sale None knovar None knovar None knovar Financing Cash Cash Cash Propertyllights Fee Simple I Fee Simple Fee Simple Sale Date 8115/2013 9/25/2013 1212212015 Sale Price $ 1,500,000 $ 251,000 $ 185,000 Land Acres 3.38 0.42 0.85 Land Square Feet 147,252 18,385 37,148 Price Per Acre $ 443,729 $ 594,700 $ 216,932 Price Per Sq Ft $ 10.19 $ 13.65 $ 4.98 PRE-ADJUSTED VALUE $ 10.19 $ 13.65 $ 4.98 INDIVIDUAL ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS PROPERTY RIGHTS 0.00% 0.00% 0.00% Adjusted PricelUnit-Individual $ 10.19 $ 13.65 $ 4.98 FINANCING/CONCESSIONS 0.00% 0.00% 0.00% Adjusted PricelUnit-Individual $ 10.19 $ 13.65 $ 4.98 CONDITIONS OF SALE 0.00% 0.00% 0.00% Adjusted PricelUnit-Individual $ 10.19 $ 13.65 $ 4.98 MARKET CONDITIONS(TIME) 6.00% 6.00% 0.00% Adjusted PricelUnit-Individual $ 10.80 $ 14A7 $ 4.98 Net%Adjustment-Individual CEV 6.00% 6.00% 0.00% GROUPED ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS LOCATION 0.00% 0.00% 100.00% PHYSICAL CHARACTERISTICS 20.00% 0.00% 10.00% ECONOMIC CHARACTERISTICS 0.00% 0.00% 0.00% ZONING AND USE 5.00% 0.00% 20.00% NON-REALTY ITEMS 1 0.00% 0.00% 0.00% Net%Adjustment-Grouped 25.00% 0.00% 130.00% Adjusted Price/Per Sq.Ft. $ 13.50 $ 14A7 $ 11.45 Net%adjustment-Overall 31.00% 6.00% 130.00% Average)Mean)Price $ 13.14 Median Price $ 13.50 Estimated Price Range $ 11A5 to $ 14.47 'a'Adjustment gild explanation;upward adjustments ere made to comparables considered Intens to the subject and conversely,e downward adjustment is made to comparables considered superior[,the subject These adjustments assist to arrive at the final adjusted rate h e once per square foot of improved area),which is used to determine me approach to value for the subject land. Information obtained horn public records, multiple listings service and appraiser records. Unless otherwise indicate the sale once is a cash equivalent value Page 102 of 134 APpmgd Report of]101 Cer¢ml Avvwe,Duaq ,I w 52001-5016 Analysis of Land Sales Land Sales Comparable#10 is the sale of a large parcel located off a major arterial, but with some visibility from the highway, m Dubuque. This industrial zoned site was purchased in 2013 for a more commercial visibility and use. An upward adjustment is assumed for lot size (typically smaller sites are selling for more per square foot), an upward adjustment is warranted for date of sale and zoning form indicated value of$13.50 per square foot. Land Sales Comparable#11 is the sale of similar sized parcel along the same street/highway as the subject. While it had a small building on it,the owner indicated it was given no value and would be demolished with future grading for a parking lot or new building. In comparison to the subject property, an upward adjustment is warranted for date of sale for an indicated value of$14.47 per square foot. Land Sales Comparable#16 is the sale of larger parcel, on the west side oftown, along a cul-de-sac with a neighborhood zoning. a9,505 square foot parcel located in a similar industrial area as the subject along Keeper Boulevard. An upward adjustment is assumed for lot size (typically smaller sites are selling for more per square foot),no adjustment is warranted for date of sale, an upward adjustment for location along a cul-de-sac and more restrictive zoning form indicated value of$11.45 per square foot. Based on the appraiser comparative analysis,the following chart summarizes the adjustments warranted for each comparable given weight in valuing the subject property. There maybe other land sales in the addenda area, but the appraiser determined they were not appropriate for one reason of another(older sale, size,location, desirability,traffic counts, or other important feature). The adjusted average price is $13.14 per square foot, the adjusted median price is$13.50 per square foot, and the adjusted sales support a selected range of value from$11.45 to$14.47 per square foot. Conclusion Weight is given to the land sales in the summary adjustment chart,though other sales may be listed in the addendum area and used for research, only those listed in the chart are weighted in determining value. It is the appraiser opinion that the subject land market value, as if vacant and ready for development, offers a range and specific point ofmarket value of, O inion of Land Market Value Ran e Square Feet times $Per Sq. Ft. equals Indicated Value (rounded) 10,240 times $ 11.50 :qua] Is 118,000 10,240 times I $ 14.50 equals Is 148,000 Specific Market Value 10,240 1 times I $ 13.501 equals $ 138,000 Specific Market Value I $ 138,000 Ofnote, some adoiningproperty ownerspaid more than double the value ofland in the downtown to expand their propertyfor parin'ng or more buildings. Those sales are not the norm, but some were part of the research. Page 103 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Cost Approach to Value The Cost Approach is based upon the theory that a well-informed buyer will pay no more for a property than the cost to replace it in a reasonable time, plus the cost of similar land. Typically,the buyer will pay something less for existing property than its cost new, and this is attributable to factors of age and changing standards of layout and construction. The cost new then is reduced by these factors in three categories of depreciation to arrive at a discounted improvement value. These categories of depreciation are physical, functional, and economic. Physical depreciation is caused by the physical wear of the improvements and their age. Functional obsolescence is due to either inadequacies or superadequacies in building design. Forces outside of the property cause economic obsolescence,which decrease the utility of value of the improvements. This approach is best when used for a newer property. It is considered less reliable, and given less weight, when valuing existing buildings. In a changing market, as buildings age, depreciation becomes greater and more complex thanjust its physical wearing out. Functional obsolescence sets in as tastes and technologies change. In down markets, external obsolescence results when prices cannot justify new construction. In Markets characterized as having a reasonable balance between supply and demand,buyers will have sufficient alternative buildings from which to select. They will select buildings based on price/unit or price/per square foot or on rate of return requirements,but rarely on land value and cost to build, and the Cost Approach is not normally a viable alternative. The Cost Approach to Value for vacant land uses the Sales Comparison Approach format to determine an Opinion of Land Market Value for this approach. When valuing vacant land, the Opinion of Land Market Value is used for the Cost Approach to Value. The primary reason for developing the Cost Approach to Value (Land Market Value)is to assist the appraiser in determining if the property value is worth more as improved or as if vacant. Page 104 of 134 AVpmssal Report of]101 Cermml fvvwe,Dubuque,l w 52001-5016 Marshall Valuation Service (NNS) Salient details regarding the direct costs are summarized in this section. The MVS cost estimates include the following, 1. Standard architect's and engineer's fees for plans,plan check,building permits and surveys)to establish a building line; 2. Normal interest in building funds during the period of construction plus aprocess fee or service charge; 3. Materials, sales taxes on materials, and labor costs; 4. Normal site preparation including finish grading and excavation for foundation and backfill; 5. Utilities from structure to lot line figured for typical setback, 6. Contractors overhead and profit, including job supervision,workmen's compensation, fire and liability insurance,unemployment insurance, equipment,temporary facilities, security, etc., and 7. Site improvements(included as lump sum additions). Base building costs (direct costs) are adjusted to reflect the physical characteristics of the subject. Making these adjustments, including the appropriate local and current cost multipliers, the direct building cost is indicated. Items not included in the direct building cost estimate include parking and walks, signage,landscaping and miscellaneous site improvements. The cost of these items is estimated separately using the segregated cost sections of the MVS cost guide. Several indirect cost items are not included in the direct building cost figures derived through the MVS cost guide. These items include the developer overhead(general and administrative costs), property taxes, legal and insurance costs,local development fees and contingencies, lease-up and marketing costs and miscellaneous cots. Research into these cost items indicates that a standard property requires an allowance of about 5% to 15% of the total direct costs, with 5%selected by the appraiser. The appraiser has valued the buildings and site improvements using MVS replacement's cost new. In the past few years,the appraiser has noted that national cost services have not been able to provide exact estimate of costs for existing buildings constructed in the TriState Region. Unless identified,NO uninstalled business equipment or furnishings are included in the building value determined in this appraisal report. yes The cost of m aftanative ghat has the same function and nocrepmdoction eaadly as it eaasts Page 105 of 134 APpmgd Report of]101 Ceatm Aveae,Duaq ,Iw 52001-5016 Replacement Cost Summary Chart The coat of building is the total coat of construction required to replace the subject building with a substitute oflike utility and quality(not necessarily the original materials). Occupancy Office MVS Section, Bldg Class and quality Section 13, Class D,Average Exterior Walls Brick #of levels and height per level 1 1 10'to 16' total Above Ground Square Footage 10,079 Perimeter Average 404' Condition and Age Average 67 Region and Climate Central Moderate Base square foot Cost $ 80.28 Square Foot Refinement HVAC $ - included in base Elevator in base cost,Add for Sprinklers $ - None Office and Showroom,no basement finish $ _ included in base Total Square Foot Refinements $ - Adjusted square foot cost with refinements $ 80.28 Number of levels multiplierl 1.000 Height per story multiplierl 1.000 Floor area&perimeter multiplierl 0.925 Combined multiplierl 0.925 Adjusted square foot cost with Height&Size refinements I $ 74.26 Current Cost multiplier 1.000 Local Cost multiplier 1.050 Combined multiplier 1.05 Final Square foot cost $ 77.97 Square footage (gross) 10,079 Base Building Costs(via MVS cost data) $ 785,879 Additions Landscaping, miscellaneous site $ - Parking Lot,Sidewalks $ - Deck, patio, etc. $ - Direct Building Costs $ 785,879 Indirect Costs(%of Direct Building Cost) 15% $ 39,294 Direct and Indirect Building Costs $ 825,173 Page 106 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Direct and Indirect Cost Conclusion The indicated direct and indirect building costs for the subject are illustrated as follow: SOURCE VALUE SIZE $Per Sq.Ft. MVS Cost Guide $ 825,173 10,079 $ 81.87 Owner Actual/Estimated Costs $ $ 10,079 $ Feldennan Appraisal Estimated $ 825,173 $ 10,079 $ 81.87 The estimates derived by MVS represent replacement costs while the owners' costs include both actual and estimated figures. Thus, the appraiser has given weight to the MVS costs for the subject. Entrepreneurial Profit Entrepreneurial profit represents the return to the developer, and is separate from the contractor's overhead and profit. This fine item,which is a subjective figure, shows the current industry tends to range from 5% to 15%of the total direct and indirect costs for this property type,based on discussions with developers active in this market, and the appraiser has selected 10% for use in this analysis. Personal property or Furniture, Fixtures, and Equipment(FF&E) No value of personal property or FF&E was contracted as part of this appraisal assignment. hi order to estimate the value of personal property or FF&E,we would rely on information contained in the Marshall and Swift Valuation Cost Manual or the subject owner's estimate of cost. For this appraisal,there is no personal property or FF&E included in the determined value. Accrued Deprecation There are essentially three sources of seemed depreciation,physical(curable and incurable), functional obsolescence (curable and incurable) and external obsolescence. Depreciation is loss in value to any cause. Physical depreciation is caused by the physical wear of the improvements and their age. The following chart provides a summary of the property's economic life. ECONOMIC AGE AND LIFE Actual Age 67 years Effective Age 20 ars MVS Effective Life 45 years Remaining Economic Life 25 years Accrued Physical Incurable Depreciation 44% rounded Page 107 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Functional obsolescence is due to either inadequacies or super-adequacies in building design. The appraiser has estimate 10%functional obsolescence based on the low ceiling height,limited access, dated internal layout and facilities. Extemal or economic obsolescence is caused by negative influences outside of the property, and based on market conditions for the area and demand for the subject type of property, can be caused by market area or residential neighborhood decline, the property's location, or market conditions. The downward trends of the national and regional economy since early 2008 negatively influenced some property types. Conversations with local real estate professional indicate that as consumer spending has not fully recovered since the Great Recession, demand has improved,but not to pre-recession rents and values in all market types. The Dubuque market includes buildings with similar uses,many of which have been completely renovated(or are of newer construction), and there has been continued new development of commercial office and retail space along the west and south sides of Dubuque (along higher traffic locations). With growing competition from the west side and downtown-renovated properties,it is the appraiser opinion that external obsolescence could vary from 20%to 50%and a rate of30%has been selected. Cost Approach Conclusion The value estimate is calculated as follows: COST APPROACH TO VALUE SUMMARY CHART Direct and Indirect Building Costs i $ 825,173 Plus Entrepreneurial Profit 1 10% of total building cost $ 82,517 Replacement Cost New $ 907,690 Accrued Depreciation Less Incurable Physical Depreciation44.0% of Replacement Cost New $ 399,384 Physically Depreciated Cost $ 508,307 Less Functional Obsolescence 10% of Physically Depreciated Cost $ 50,831 Functionally&Physically Depreciated Cost $ 457,476 Less Economic/Eaernal Obsolescence 30% 1of Physically Depreciated Cost $ 152,492 Depreciated Replacement Cost Functionally, Physically&Externally Depreciation Cost $ 304,984 Plus Land Market Value $ 138,000 Plus Depreciated Cost of FF&E $ - Cost Approach to Value (rounded) $ 443,000 Square feet of Improvemetns 10,079 Value per Square foot of improvements $ 43.95 *A building sketch is presented in the improvements analysis section and the addendum. Page 108 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 The Cost Approach typically gives a reliable value indication when there is strong support for the replacement cost estimate and when there is minimal depreciation. This approach is most reliable for newer property or with no sales available in the existing market. It is considered less reliable and given less weight when valuing existing buildings. The Cost Approach is considered a test of reasonableness against the other valuation techniques and offers general support for the other approaches,but is not given weight in determining the final estimate of value. Information from the Cost Approach may assist in the Income Approach,the Sales Comparison Approach, and the Highest and Best Use analysis. If the costs include everything Hard, soft, profit, etc.), this approach typically sets the upper limit of value. As well, the cost approach is not typically given weight in the decision-making process for older existing property. With the analysis m the Sales Comparison Approach, the appraiser identified an estimated opinion of market land value based on sales in the current market. It is not unusual for owner users of real estate to determine that the purchase of an existing building in the downtown, even when improvements or renovations are needed, will often cost more am those in new developments due to the cost of the land values in the downtown(based on purchasing existing buildings and then demolishing for the bare land). In this Cost Approach,the estimate of land value gave weight to downtown competition. However,it is obvious from land values in other areas of Dubuque,that while it may cost less for newly developed land (even with larger parcel needed to meet current zoning requirements), that it will likely incur higher improvement costs with a modem building. AS IS Market Value Indication using the Cost Approach, as of the effective date, is: Four Hundred Forty-three Thousand Dollars($443,000) Page 109 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Income Approach to Value The Income Approach is the method of converting the anticipated economic benefits of owning property into a value through the capitalization process. The principle of anticipation underlies this approach in that investors recognize the relationship between an asset's income and its value. The steps taken to apply the income capitalization approach are: • Analyze the revenue potential of the property • Consider appropriate allowances for vacancy, collection loss, and operating expenses • Calculate net operating income by deducting vacancy, collection loss, and operating expenses from potential income • Apply the most appropriate capitalization methods to convert anticipated net income to an indication of value. This conversion can be accomplished in two ways. In direct capitalization, one year's expected income or an annual average of several years' income expectancies might be capitalized at a market-derived capitalization rate or a capitalization rate that reflects a specific income pater, return on investment, and change in value of the investment. In the discounted cash flow analysis, the annual cash flows or anticipated future net income streams and a future resale are discounted to a present value at an appropriate yield rate. When applicable,the appropriate method will be determined in this report. The appraiser has researched competing income properties to analyze the subject viability as investment property. The subj ect real property is not currently leased, and in the current market. While the Income Approach is not typically applicable for an unleased property, it is the appraiser opinion that this approach may be considered relevant in determining the final opinion of value for any potential investor. Since the client may or may not use the property for income production,it is necessary to provide an income approach value as part of their decision making process in negotiating the purchase. The appraiser will determine a stabilized or equilibrium vacancy rate,rental income, and expenses based on the current market to provide an income approach to value for consideration in the final estimated opinion of value. Page 110 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Subject Current Rent Roll As of the effective date of the report, 100%ofthe subject is owner occupied with no historical financials. Current competition for the subject property Contract rates typically establish income for the leased spaces, while market rent is the basis for estimating income for the current vacant space and future speculative leased of space due to expiring leases. This calls for the comparison of current rent levels with market rent levels. To estimate the market rent for the subject,the appraiser searched the following comparable rentals in the subject market. Rental Comparables Address Size $PSF Expenses Type Zoning Info 9079 E Tamarack(available) 16,280 $ 6.00 NNN Commercial Ind. Broker 3368 Center Grove (available) 6,950 $ 8.00 Gross Commercial Comm-PI Broker 962 Main St(available) 6,700 $ 6.00 NNN Commercial Comm Broker 4370 Dodge St(leased) 5,232 $ 8.14 Gross Commercial Comm Broker 590 Iowa St(available) 3,892 $ 9.00 NNN Commercial Comm Broker 605 W.Locust St(leased) 2,000 $ 7.20 Gross Commercial Comm Broker 700 Locust St(leased) 1,545 $ 12.00 NNN Commercial C5 Broker 1736 Central Ave(leased) 1,134 $ 10.58 Gross Commercial Comm Broker 210 W1st Str(leased) 1,000 $ 10.20 Gross Commercial Comm Broker 2306 Central Ave (leased) 1,008 $ 2.98 NNN I Commercial I Comm I oker Discussion and Analysis of Comparable Rentals All three comparables on the following page are adjusted smaller in size,with#2 having superior location adjustments, and#1 available for lease in the same location as the subject(but has been for lease longer thanmoat since owner has limited the type of users allowed—no restaurant, no bars,no non-profits). There were no similar spaces for lease or leased identified by the appraiser and greatest weight was given to those in the following chart with some consideration of those above that were not used. Economic RentAnalysis When searching for rentals offering competition to the subject, the appraiser has identified a few lease properties similar to the subject property in Dubuque and the TriState Region. The appraiser analyzed recent leases in competitive buildings in the marketplace. After analysis, the overall range is$3.00 to$12.00 per square foot triple net before adjustments of those listed above, and with an average of$5.30 per square foot triple net and$6.98 per square foot gross after adjustments (based primarily on the large size of subject space)for those selected and used in the chart on the following page. Triple net leases had maintenance,interest and taxes (MIT)amounts added to the triple net rate to determine the total estimated gross rental rate (or estimated MIT subtracted from the gross leases). Lease terms are typically from one to five years, and many spaces have options to renew that would set increases or based on adjustments to the cost ofliving for the region. Page 111 of 134 APpmgd Report of]101 Ceatm Aveae,Duaq ,Iw 52001-5016 The subject's volume of traffic,parking access to major arterials, and location offer some desirability in the market. The appraiser has identified location, size, age/condition, quality, access, and visibility as typical rental motivators for use in the quantitative analysis below. Rental Comparables Analysis Grid Rental Comparables Quantitative Adjustment Grid Comparable Subject Property Address 1101 Central Ave 962 Main St 4370 Dodge St 605 W.Locust ST Property City Dubuque,Iowa Dubuque,IA Dubuque,IA Dubuque, IA Leased Spaces 10,079 6,700 5,232 2,000 Lease Type Triple Net Triple Net Gross Gross $Per Sq Ft(Net estimated) $ - $ 6.00 $ 6.14 $ 5.20 CAM(estimated) $ - $ 1.50 $ 2.00 $ 2.00 $Per Sq Ft(Gross,actual) $ - $ 7.50 $ 8.14 $ 7.20 Location Dubuque Dubuque/Similar Dubuque/Similar Dubuque/Similar Adjustment 0.0% 0.0% 0.0% Size 10,079 Smaller Smaller Smaller Adjustment -5.0% 5.0% -10.0% Age/Condition 1949/Avg Similar Similar Similar Adjustment 0.0% 0.0% 0.0% Quality of Construction Average Similar Similar Similar Adjustment 0.0% 0.0% 0.0% Access/Visibility Average Similar Superior Similar Adjustment 0.0% 5.0% 0.0% Use Commercial Commercial Commercial Commercial Adjustment 0.0% 0.0% 0.0% Total Net Adjustment 5.00% -10.00% -10.00% Adjusted$Per Sq Ft(Gross) $ 7.13 $ 7.33 $ 6.48 Average $Per Sq Ft(Gross) $ 6.98 Adjusted$Per Sq Ft(Net) $ 5.70 $ 5.53 $ 4.68 Average $Per Sq Ft(Net) $ 5.30 Market Rent Conclusion (Effective Gross Income-EGI) It is the appraiser opinion that the subject should be able to command a triple net lease value of$5.50 per square foot per year for the overall building with increases up to 3%per year(most typical is 2%, used in this report), but often based on Cost of Living Index(CPI)and anticipated increases in CAM expenses, with atypical lease term of three to five years consistent with the market. After analysis of the current rents and using the rental comparables, it is the appraiser opinion that the rent is appropriate for the potential market rent for the subject in the following table. Subject Effective Potential Income Range Address Size $PSF Expenses Trs 2016-2017 High 1101 Central 10,079 $ 6.00 NNN Tenant $ 60,474 Selected 1101 Central 1 10,079 1 $ 5.501 NNN I Tenant $ 55,435 Low 1101 Central 1 10,079 1 $ 4,501 NNN I Tenant $ 45,356 Page 112 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Projected(IO-year at 2%increase per year) Potential Income Analysis Applying an annual market rent growth of 2%presents a model showing the potential growth of the subject AS Stabilized over the next ten years is presented in the following table. Ten Year Projected Analysis Year Ending Gross Income (rounded) Divided By Sq Ft Equals $Per Sq Ft 2016 $ 55,435 10,079 Equals $ 5.50 2017 $ 56,544 10,079 Equals $ 5.61 2018 $ 57,675 10,079 Equals $ 5.72 2019 $ 58,828 10,079 Equals $ 5.84 2020 $ 60,005 10,079 Equals $ 5.95 2021 $ 61,205 10,079 Equals $ 6.07 2022 $ 62,429 10,079 Equals $ 6.19 2023 $ 63,677 10,079 Equals $ 6.32 2024 $ 64,951 10,079 Equals $ 6.44 2025 1 $ 66,2501 10,079 1 Equals Otherincome The subject does not generate amounts of recurring income from sources other than rent, and for the purposes of thus appraisal,there is no other applicable income stream considered. ieacancy and Collection Loss Allowance A vacancy and credit loss allowance is deducted at an expected stabilized rate. According to Realty Rates,the current Market Survey lists vacancy rates for similar commercial property that ranged from 5.3%to 7.1%. The appraiser provided market vacancy rates previously in the market analysis,which considers the credit risk The appraiser has concluded a stabilized vacancy and collection loss allowance for the subject at 6%. Expense Reimbursement The appraiser was informed there is no historical operating data or rental information for the subject since it is owner occupied. The lack of data may affect the analysis and the value opinion determined in this approach. Since the property is owner occupied the Income Approach is given little, if any,weight in this valuation. To develop projects of stabilized operating expenses, the appraiser typically reviews the subject expenses, comparable data and industry benchmarks. The analysis of expenses appears to support the typical informed investor may not provide an expense for their own management and reserves for replacement. Fixed&variable expenses,if included in the rent,may include items such as property taxes,property insurance,utilities, maintenance and repairs, management,janitorial,landscaping, and long-term future capital expenditures adjusted annually as reserve for replacements. Page 113 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 For the purposes of this appraisal,the appraiser has determined that the subject would likely be leased in a Triple Net Lease where the tensnt(s)would pay their sane of the real estate property taxes,property insurance,property repairs and maintenance, utilities, administration and miscellaneous,janitorial and landscaping, even though some may be part of their own operating expenses. Refer to the income and expense analysis presented earlier in this section. OperatiingExpense Analysis The real estate property taxes were estimated previously in the report at$14,528 per year, since the subject is a non-profit use,but in the typical market for a triple net lease these are typically paid by the tensat. The property insurance expense includes fire and property coverage, but in the typical market for a triple net lease these are typically be paid by the tenant. The appraiser market research supports a rate of$0.20 to $0.25 per square foot per year for insurance. Repairs and maintenance,janitorial, landscaping and security include payroll and related items for the directly employed maintenance personnel, and any outside service contracts for maintenance or repairs; but in the typical market for a triple net lease these are typically be paid by the tensa t. The subject utilities for the tenant spaces would include electrical, natural gas, water, sewer, and trash removal,but in the typical market for a triple net lease these are typically be paid by the tensa t. Management expenses are often negotiated as a percentage of the actual income (effective gross income). The appraiser survey of professional management firms, financial managers, appraisers, and real property brokers for the area indicate fees in this market average between 2%and 10%of Effective Gross Income. The appraiser has selected the rate of 5%of Effective Gross Income for the subject as an appropriate potential management expense. The rate of 5%of EGI will be used in the expense calculations. Administration and miscellaneous general operating expenses typically include payroll and related items for the employees such as manager, secretary, and accounting. This expense includes miscellaneous expenses such as legal or general contract. The subject's expenses are estimated at 2%ofEGI will be used in the expense calculations. Reserves for Replacement capture future capital expenditures for items such as roof,HVAC or other mechanical systems,parking, and site improvements, etc. over the life of the lease. For the purposes of this analysis,the appraiser has selected the rate of$0.50 per square foot. This is supported by the current Realty Rates Investor Survey indicates standard reserve requirements that range between$0.28 and$0.88 per square foot for this type of property. Total Operating Expenses The current Realty Rates Market Survey indicates an overall expense ratio(rounded)of 59%to 71%for similar type ofproperty. The subject estimated reimbursed and non-reimbursed expenses are listed in the following table. Page 114 of 134 APpmssal Report of]101 Ceatm Aveae,Duaq ,Iw 52001-5016 Net Operatinglncome Summary Potential Operating Income Recap Item Square Feet Total times $PSF Amount Potential Gross Income 10,079 times $ 5.50 $ 55,435 Other Income 10,079 times $ - $ - Total Potential Gross Income $ 55,435 Reimbursable Expenses Real Estate Property Taxes Tenant None $ 14,528 Property Insurance Tenant None $ 2,016 Repairs and Maintenance Tenant None $ 5,040 Janitorial,landscaping, security Tenant None $ - Utilities(gas,water,electrical,trash) Tenant None $ - Total Reimbursable Expenses 1 $ 21,583 Total Common Area Maim$PSF $ 2.14 Total Potential Gross Income and Reimbursable Expenses $ 77,018 Less vacancy&credit loss 6.0% $ 4,621 Effective Gross Income $ 72,397 Tenant Reimbursements $ (21,583) Effective Gross Income $ 50,813 NOn-Reimbursable Expenses / $ Management Owner(5% estimated) 5% $ 3,620 Admin,Miscellaneous Owner(2% estimated) 2% $ 1,448 Common Area Utilities None 0% $ - Reserves for Replacement Owner($0.50 x Sq Ft) 0% $ 5,040 Total Non-Reimbursable Expenses $ 10,107 Potential Net Operating Income As Is $ 40,706 Tota1N0n -Reimbursablee and Reimbursable Expenses $ 31,691 The Estimated Potential Net Operating Income is then converted into a value using a Direct Capitalization Method. There are several methods analyzed in determining a Capitalization Rate, which may include a Band of Investment, a Debt Coverage Ratio, a review of national investor surveys, and or extraction from market sales. The following Capitalization Rate Analysis will provide a supported rate to use in this approach. Page 115 of 134 APpmeal Report of]101 Cer¢ml Avvwe,Dubuque,lowa 52001-5016 Capitalization Rate Analysis Capitalization is the process of converting a series of anticipated installments ofnet income into a present value. In order to develop a capitalization rate appropriate to this area, the appraiser has considered several methods, which may include a derived band of investment mortgage equity rate, a debt coverage ratio method, one or more national level investor surveys or market extracted rates from actual sales and the likely demands of the local equity investor. The term Capitalization Rate as used in real property includes a return on and a return of investment. Return on investment is the compensation necessary to pay an investor for the time value of money, risk, and other factors associated with an investment(referred to as yield). Return ofinvestment deals with repayment ofthe original Principle(referred to as capital recovery). Band oflnvestment Real estate is frequently purchased with a combination of debt financing and equity capital, the return on investment component of the overall capitalization rate must satisfy the market return requirements of each investment position. A method of determining a Capitalization Rate is to build a rate based on the Band of Investment Mortgage Equity Yield Component Method"', using mortgage rates from area lending institutions. This recognizes that typical investors will seek the best mortgage financing available in order to get a maximum yield on a minimum down payment. This method may be given less weight when there are extraction rates available from the comparable sales in the market. The mortgage constant is the capitalization rate for debt, and it is the ratio of the annual debt service to the principal amount ofthe mortgage loan. The equity investor seeks a rate of return on their capital investment and an eventual return ofthe amount invested. The rate used to capitalize equity income is referred to as the equity dividend rate. This is the ratio of equity dividend to the amount of equity. The overall rate must satisfy both the mortgage constant requirements of the lender and the equity dividend requirements ofthe equity investor. This rate is thereby a composite rate weighted by the proportion ofthe total property investment represented by the debt and the equity. According to local lending institution,117,typical interest rates for a commercial real estate mortgage rate of 3.0%to 8.0%with 5%the typical; amortization schedules range from 5 to 20 years with 20 years the typical; and loan to value ratios range from 50%to 90%with 70%the typical for a 30%equity position. The appraiser has reviewed the current Realty Rates Investor Survey for similar type property,that supports interest rates of 3.0%to 9.99%with an average of 5.13%,loan to value ratios of 50%to 90 with an average of 50%or 10%equity position, amortization periods of 15 to 30 years with an average of 23 years, terms of3 to 10 years with an average of 6.20 years, equity dividend rates of 8.24%to 18.11% with 12.68%average, and debt coverage rate of 1.05 to 2.25 with an average of 1.41. 186 Loan or V aloeRatiq Mortgage InterestRate,Loan Terni,and Egoity Dividend Rateosed to develop a cep Dalization rete 'w Data obtained from discussions with local financial institutions,Banlvate cont,and subscription to RealtyRatesmm;plus use of Compowd InteestTables(sontetintes referred or as Elwood Tables for Real Estate Appraising and Financing)Dom Zhz Appmssal op Real Rnae,Antcrican Instihrte ofAppraisas in Chicago,Illinois Page 116 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 The real estate market must compete with other financial markets to attract capital,including bonds, treasury bills, certificates of deposit, and the stock market. The overall rate must provide a return"on" as well the return"of'the investment. The return"orf' the investment must include a compensating factor for the risk involved. Bond yields are used as a benchmark for interest rates on real estate investments. Mortgage Constant; (30 year, 5%)30 g n, 5 g I, CHS PV, PMT=0.064419 Mortgage Yield Rate; 70%Loan Ratio times Mortgage Constant=4.51 Equity Yield Rate; 30%times RE(Equity Dividend Rate)of 13%=3.90% Mortgage Equity Rate equals 8.40% BAND OF INVESTMENT METHOD INTEREST RATE 5% AMORTIZATION PERIOD 30 YEARS Loan Ratio Mortgage Constant Rate MORTGAGEYIELD 0.70 times 0.064419 equals 4.51% Equity Ratio Equity Dividend Rate EQUITYYIELD 0.30 times 0.130000 equals 3.90% BAND OF INVESTMENT MORTGAGE EQUITY RATE(rounded) equals 8.40% Debt Coverage Ratio Debt Coverage Ratio(DCR)is the ratio of net operating income to annual debt service,which measures the ability of a property to meet its debt service out of net operating income. This method is most commonly used by lenders to check on the reasonableness of capitalization rates derived from comparables and internal evaluation guidelines. As of the date of this appraisal,the annual mortgage constant is 0.079195 (Annual Compound Interest Tables, Column 6, and using the Excel Formula for PMT),based on the appraiser estimate of 5.0% interest rate, a range of loan-to-values from 70%to 80%, and 20 years amortization for a typical borrower. Using these criteria, and considering typical minimum debt coverage of 1.4 1,the Debt Coverage Ratio method indicates the Capitalization Rates in the following chart. DEBT COVERAGE RATIO Interest Rate 5.00%1 5.00%1 5.00% Terms(Years) 20 20 20 Debt Coverage Ratio 1.41 1.41 1.41 Mortgage Constant 0.079195 0.079195 0.079195 Loan to Value Ratio 70% 75% 80% Overall Capitalization Rate 7.82% 8.37%1 8.93% Page 117 of 134 APpmgd Report of]101 Ceatm Aveae,Dua q ,Iw 52001-5016 National Investor Survey The appraiser has reviewed current published national surveys of economic indicators from the Appraisal Institute Valuation magazine (PwC Real Estate Survey),the Appraisal Institute chart of Economic Indicators,Realty Rates Investor Survey,Realty Rates Market Survey,Realty Rates Developer Survey, and Bank Rate.com. The PwC Real Estate Investor Survey indicates an average OAR of 6.75%for retail uses. Realty Rates Market Survey indicates an average of OAR of 7.6%for retail uses, and Investor Survey indicates an average of 9.87%for retail uses. Direct Capitalization Extraction Rate The Mortgage Equity Rate does not take into consideration additional risk that may apply for specific uses, locations, condition, or quality. Using actual Overall Capitalization Rates(OAR) extracted from sales allows the appraiser to determine a capitalization rate that will include risk When the sale of properties exhibit qualities similar to the subject, and where a Capitalization Rate (Net Income divided by the sale price)is able to be determined from sale and income data,that information is typically given greater consideration. There have been a few similar non-owner occupied sales in competing area. A capitalization rate summary includes the following property,though only those similar to the subject are considered in the table below, which reflects real estate market sales used to extract an OAR from the subject marketplace. OAR Extraction from Real Estate Sales Cor gambles Address Sales Price Sales Date NOI OAR USE 2254 FLINT HILL DR, DUBUQUE $ 281,000 Sep-11 $ 24,447 8.70% COMMERCIAL 245 RAILROAD AVE, DUBUQUE $ 2,285,540 Dec-12 $ 205,699 9.00% INDUSTRIAL 1074 CEDAR CROSS,DUBUQUE $ 547,500 Apr-13 $ 52,578 9.60% COMM SERVICE 2600 CENTRAL AVE, DUBUQUE $ 150,000 Mar-14 $ 17,078 11.39% COMM+APTS 3033 ASBURY RD,DUBUQUE $ 900,000 Sep-14 $ 82,000 9.11% COMMERCIAL 1725 DELHI ST, DUBUQUE $ 128,000 Oct-14 $ 9,483 7.41% COMMERCIAL 1003-1005 CENTURY CR,DUBUQUE $ 400,000 Apr-15 $ 32,000 8.00% COMM SERVICE Range Low High Average OAR approximate range 8.70% 11.39% 9.03% Felderman Appraisals Estimated OAR I9.0% Based on the location and physical characteristics of the appraised property, along with all the previous information and conclusions found,it is this appraiser opinion,with weight given to the O.A.R. determined in the extraction from sales summary, the estimates from Investor Surveys, the Band of Investment and the Debt Coverage Ratio,that a Capitalization Rate range of 8.0%to 10.0%is supported for the subject property AS IS and AS Stabilized(using the higher[Ilan actual rent projections and discounted to a present value),with a selected rate of 9.0%for the purposes of this estimated approach. Page 118 of 134 APpmgd Report of]101 C SnR!Avvwe,DWvque,I w 52001-5016 Net Operating Income Conversion To convert the Estimated Potential Net Operating Income for the subject As Is status to a value,it is divided by the determined Capitalization Rate. Range Potential NOI As Is divided by OAR equals Indicated Value Low range $ 40,706 divided by 10.0% equals $ 407,060 Most Probable Range AS IS $ 40,706 divided by 9.0% equals $ 452,289 High Range $ 40,706 divided by 8.0% equals $ 508,825 Income Approach Reconciliation In this approach,the appraiser has reviewed the market income and expenses to determine an estimated potential income and expenses based on information from the owner and as determined from the real estate rental market. Since the subj ect is not leased and the client is not considering purchasing the subject for its investment, the appraiser has determined only an As Is value uses the estimated income and expenses, a determined capitalization rate, and a value was determined by the appraiser to support the Market Value in Fee Simple Interest. Strengths and Weaknesses The strength of this approach is a strong,but limited,rental market as the national and regional economies recover from the Great Recession a few years ago. The weakness of this approach is the numerous estimates of income, rent, expenses, and capitalization rates since the subject is currently owner or owner business occupied and is typically only given weight for investor owned property. Discounted Cash Flow Analysis The Discounted Cash Flow(DCF)analysis is an accepted analytical tool and method of valuation within the income capitalization approach to value"', and has enj eyed widespread use with the advent of modem computer technology. The DCF analysis is profit oriented and dependent on the analysis of uncertain future events. Since the subj ect is not leased and the client is not considering a purchase for its investment quality, the appraiser has deternined this analysis is not necessary to determine an estimated market value for the subject in fee simple estate. Income Approach Conclusion In the Income Approach, the appraiser provided the direct capitalization method to value the subj ect in an AS IS Fee Simple interest at market occupancy rates. Based upon the forecast net operating income for the year beginning at the date of stabilization, the AS IS Market Value Indication using the Income Approach, as of the effective date, is: Four Hundred Fifty Two Thousand Dollars ($452,000) ,ee USPAP Statement 2,Discounted Cash Flow Analysis of Real PropeiV Page 119 of 134 Appmea,Report of]101 Comair,Avvwe,Dubuque,Iowa 52001-5016 Sales Comparison Approach to Value In the Sales Comparison Approach,the appraiser developed an opinion of value by comparing the subject property with similar,recently sold properties in the surrounding or competing area. Inherent in this approach is the 'Principle of Substitution,"which states that a prudent purchaser would pay no more for real property than the cost of acquiring an equally desirable substitute on the open market. It presumes the sale of similar or nearly similar properties from which units of comparison may be extracted and applied to the property being appraised for an indication of property value. In order to arrive at avalue estimate, adjustments to comparables were considered for differences between the subject and the comparable sales. Adjustments to the sales data were based on several considerations: • Interviews with buyers, sellers,brokers and other participants in the market; • Current economic trends; • Analysis of the subject data set in an attempt to establish matched pair adjustments; and • Judgement of the appraiser. The appraiser has reviewed similar sales in the subjects competing area(refer to the addendum area for all researched, but only those in the adjustment grid of this section are given weight), and endeavored to verify factual information regarding property characteristics, financing terns, conditions of sale, and property rights conveyed. Sources used for verification in this report included one or more of the following: deeds, tax records, grantor or grantee, attorneys, brokers, appraisers,property managers, lenders, real estate periodicals and hsting,reporting services. The appraiser uses a traditional adjustment grids'utilizing percentage adjustments, for items that may include date of sale"',building size"',land to building ratio, financing', location"',traffic counts, condition or finish19', or amenities such as personal property or equipment(if applicable). The final step of the sales comparison approach involves interpreting the resulting comparative data and drawing value conclusion(s). 1fl9 Adjustment grid ezplmat on,upward adjustments are made to comparables considered in fen or to the subject,and conversely,a downward adjustment is made to comparables considered superior to the subject These adjustments ass iAto arrive at the final adjusted rate h e once per square foot of improved area),which is used to determine me approach to value for the subject land. Information obtained horn public records, multiple listings service and appraiser records. "'The market changes over period of-time,and evidence supports an annual increase in value of 1%to 5%over the past few decades. 191 Typically,inthe mbjectmarkef,smallerbuildings sell f moreper square footthan similar largerbuildings Unless specifically noted,all sales are considered cash ormarket oriented financing. 193 Location adjustments are required when locational characteristics of a comp arable proptV are different,such as access or visibility,based on the appraiser interpretation of Us market impact 19'Various physical traits are analyzed including condition armor quality of finish Page 120 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Analysis of Sales Comparables The appraiser has interviewed brokers active in the marketplace to identify listings and sales. The charts below present similar current listings that were reviewed, but only actual sales are used in this approach. 2160 Central Avenue, one-story brick 840 square feet with full basement on a 1,920 square foot lot,listed for$39,900 or$47.50 per square foot. Zoned Commercial. 2097 Central Avenue, one-story steel siding, 1,680 square feet with no basement on a 16,553 square foot lot, listed for$89,900 or$53.51 per square foot.Zoned Commercial. Large lot with small building. Listed for over one year. 902 Main Street, one story brick, 2,373 square foot with full basement on a 2,345 square foot lot, listed at $225,000 or$94.82 per square foot. Zoned Commercial. Finished as a pub on main and lower level, and has a mezzanine area for small office. Listed for over four years. 962 and 980 Main Street, one story brick and block, 11,340 square foot on main and over 4,000 finished on lower level, full walk-out basement with garage door and warehouse storage. Listed for$550,000 or $48.50 per square foot. Listed for over two years at higher price. 590 Iowa Street is a one-story stone with 10,108 square feet, no basement, on a 23,087 square foot lot, listed at$639,900 or$63.31 per square foot. Zoned Commercial. Listed for over five years at higher prices. It has become typical appraisal practice to include listings since they provide some indications of declining or expanding markets. However,many of these have been listed for a long time and are likely listed well above their market value. Several are much smaller and have larger land to building ratios, so no weight is given to any of these listing in the analysis of market value for the subject. The Greater Dubuque Development Corporation(GDDC)has a website that lists properties for sale that may not be listed in the Dubuque Multiple Listing Service or provides outdated information. While the site was reviewed,none are considered useful in this approach. While there are other sales comparables presented in the report, the following sales are used to determine the estimated value in this approach. There are a limited number of arms-length sales in usable condition (several sales not used were prior to renovation for use by the owner), an even more limited number of any sales in the area of similar size in the central business district, and limited number of buildings that sold as income property(not owner or majority owner occupied). Page 121 of 134 Appraisal Report of1101 CentralAvenue,Dubuque,Iowa 52001-5016 For the purposes of this report, the appraiser is giving weight to the sales in the following chart(s). Comparable Sale#1 Sale#8 Sale#9 Property Address 1800 Elm Street 4975 Radford Rd 3033 Asbury Rd Property City Dubuque, IA Dubuque, IA Dubuque, IA Sale Price $1,200,000 $400,000 $900,000 Date of Sale 5/24/1011 5/2/2014 7/15/2014 List Price n/a n/a $1,200,000 Sale%of List$ n/a n/a 75.00% DOM n/a n/a 174 Building Size 26,902 8,280 18,876 Land Size 78,100 44,997 97,095 Land to Building Ratio 2.9 5.4 5.1 $ PSF(Building) 1 $44.61 1 $48.31 1 $47.68 Comparable Sale#10 Sale#11 Sale#12 Property Address 3110 Cedar Cross Ct 3170 Cedar Crest Ridge 340 E. 12th St Property City Dubuque, IA Dubuque, IA Dubuque, IA Sale Price $400,000 $590,000 $640,000 Date of Sale 9/3/2014 10/17/2014 4/3/2015 List Price $450,000 n/a n/a Sale%of List$ 88.89% n/a n/a DOM 92 n/a n/a Building Size 9,590 11,232 20,420 Land Size 28,799 104,108 33,300 Land to Building Ratio 3.0 9.3 1 1.6 $ PSF(Building) $41.71 $52.53 $31.34 Sales Comparables Location Map T ka Fry°xx I j llU VE 21 Let-Ia"t- It pas / W , �E4/nVE <�ta Page 122 of 134 APpmgd Report of]101 Ceatm Aveae,Dua q ,Iw 52001-5016 Sales Comparison Chart Com Subject Sale 1 Sale 8 Sale 9 PropertyAddress 1101 Central Ave 1800 Elm St 4975 Radford Ct 3033 AsburyRd Property City Dubuque,Iowa Dubuque, IA Dubuque,IA Dubuque,IA Sale Price n/a $ 1,200,000 $ 400,000 $ 900,000 Date of Sale n/a 524/2011 522014 7/152014 Building Size 10,079 26,902 8,280 18,876 Land Size 10,240 78,100 44,997 97,095 Land to Building Ratio 1.02 2.90 5.43 5.14 $per Square Foot(Building) $ 44.61 $ 48.31 $ 47.68 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Adjustment 0.0% 0.0% 0.0% Financing/Conditions of Sale As If Cash As If Cash As If Cash As if Cash Adjustment 0.0% 0.0% 0.0% Expenditures After Sale None None Known None Known None Known Adjustment 0.0% 0.0% 0.0% Market Conditions/Sale Date Standard Standard/5 yrs Standard/2 yrs Standard/2 yrs Adjustment 15.0% 6.0% 6.0% Adjusted Price Per S Ft CE $ 51.30 $ 51.21 $ 50.54 Location Urban/Standard Urban/Standard Urban/Standard Urban/Standard Adjustment 0.0% 0.0% 0.0% Building Size 10,079 Larger Smaller Larger Adjustment 14.0% -4.5% 9.8% Land to Building Ratio 1.02 2.90 5.43 5.14 Adjustment -16.8% -36.2% -n5% Building Age/Condition 1949 Standard 1955/Standard 1999/Standard 1960/Inferior Adjustment -1.5% -12.5% 7.3% Building Quality of Construction Brick Standard Block/Standard Steel/Standard Block/Standard Adjustment 0.0% 0.0% 0.0% Traffic Count/Visibility High Low Low Medium Adjustment 10.0% 10.0% 5.0% Building Interior Finish 60% Superior, 90% Superior,22% Superior,80% Adjustment -20.2% 23.6% -12.6% Use,Zoning,Amenities Comm,C4,None Comm,C2, None Comm,C2,None Comm, C2,None Adjustment 10.0% 10.0% 10.0% FF&E None included None None None Adjustment 0.0% 0.0% 0.0% Total Gross Adjustment 72.5% 96.8% 79.2% Total Net Adjustment -4.50% -9.60% -15.00%-- Adjusted Price Per Sq Ft $ 48.99 $ 46.29 $ 42.96 Page 123 of 134 APpmgd Report of]101 Ceatm Aveae,DWa q ,Iw 52001-5016 Sales Comparison Chart Comparableqnp� Subject Sale 10 Sale 11 Sale 12 Pro ertAddress 1101 Central Ave 3110 CedarCross Ct 3170 Cedar Ridge 340 E 12th St Property City Dubuque,Iowa Dubuque,IA Dubuque,IA Dubuque, IA Sale Price n/a $ 400,000 $ 590,000 $ 640,000 Date of Sale We 9/32014 10/172014 4/32015 Building Size 10,079 9,590 11,232 20,420 Land Size 10,240 28,799 104,108 33,300 Land to Building Ratio 1.02 3.00 9.27 1.63 $perSquare Foot(Building) $ 41.71 $ 52.53 $ 31.34 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Adjustment 0.0% 0.0% 0.0% Financing/Conditions of Sale As If Cash As If Cash As If Cash As if Cash Adjustment 0.0% 0.0% 0.0% Expenditures After Sale None None Known None Known None Known Adjustment 0.0% 0.0% 0.0% Market Conditions/Sale Date Standard Standard/2 yrs Standard/2 yrs Standard/1 yr Adjustment 6.0% 6.0% 3.0% Adjusted Price Per Sq Ft(CEV) $ 44.21 $ 55.68 $ 32.28 Location Urban/Standard Urban/Standard Urban/Standard Urban/Standard Adjustment 0.0% 0.0% 0.0% Building Size 10,079 Slightly Smaller Slightly Larger Larger Adjustment -1.2% 2.0% 16.2% Land to Building Ratio 1.02 3.00 9.27 1.63 Adjustment -18.9% -62.7% -7.7% Building Age/Condition 1949 Standard 1989/90/Standard 19872003/Standard 1975/88/Standard Adjustment -10.0% -9.5% -6.5% Building Quality of Construction Brick Standard Steel/Standard Steel/Standard Block/Standard Adjustment 0.0% 0.0% 0.0% Traffic Count/Visibility High Low Low Low Adjustment 10.0% 10.0% 10.0% Building Interior Finish 60% Inferior(7%) Inferior(11%) Inferior(9%) Adjustment 38.1% 28.0% 48.8% Use,Zoning,Amenities Comm, C4, None Comm,C3,None Comm,CS,None Indus,PC,None Adjustment 0.0% 10.0% 0.0% FF&E None included None None None Adjustment 0.0% 0.0% 0.0% Total Gross Adjustment 78.2% 122.2% 89.2% Total Net Adjustment 18.00% -22.20% 60.80% Adjusted Price Per Sq Ft $ 52.17 $ 43.32 $ 51.91 Page 124 of 134 APpmgd Report of]101 C,,Tm Aveae,Duaq ,Iw 52001-5016 Discussion of the Sales Comparison Adjustment Process Prior to any adjustments, the sales comparables will indicate a unit-price range of values. Material differences between the subject property and the respective comparables may include transactional characteristics, location attributes, and or physical property characteristics. This method is outlined as followed by the Appraisal Institute. Efforts are made to apply percentage adjustments to the comparable sales in the categories where differences would probably be noted by the market participants. In this case, all adjustments are somewhat subjectively derived, although market participants were surveyed over the past few decades to assist with the adjustment estimates. Clear, empirical data could not be extracted from paired sales analysis due to lack of sufficient data required to perform such analysis. In an efficient market, adjustments of paired sales may provide support and reliability to the adjusted prices. Paired sales analysis requires abundant highly similar data that has indifferences in few variables. The adjustments applied to the comparable sales had to be considered on a broader basis. Consideration is given to the appropriateness of quantitative dollar and/or percentage adjustments for the following transaction characteristics: • Property Rights Conveyed • Financing Terns • Conditions of Sale • Expenditures after sale • Market Conditions(Time) The selected transactions all reflect the transfer of fee simple transfers and, therefore,required no adjustments for property rights conveyed. The financing terms used in a particular transaction may affect the sale price. Some types of financing maybe structured in such away that a buyer may be willing to pay more or less for a property based on the financing available. All of the sales utilized in this analysis were cash or cash equivalent transactions and therefore, an adjustment was not required. The adjustment for the conditions of sale relates to conditions involved in that sale or transaction that can affect the sale price. All of the comparable sales are believed to be arm's-length transactions. Asa result, no adjustments were necessary for conditions of sale. The expenditures after sale adjustment is utilized to account for buyer expenditures,immediately after the sale,required the properties to operate at market levels. No adjustments were necessary. Real estate values can change over time and an adjustment may be required to reflect any value change between the comparable sale dates and the effective date of the appraisal. The appraiser research of market conditions (time)show that values have been relatively stable over the past three to five years, with small increases. It is the appraiser opinion that a time adjustment of 3%per year difference is warranted and applied within this analysis. Page 125 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Next, consideration is given as the appropriateness of quantitative and/or qualitative dollar and/or percentage adjustments for the following locational and/or property characteristics: • Locational attributes,including access proximity to freeways • Building Size • Landto Building Ratio(LTBR) • Building age/condition • Building quality of construction • Building Interior Finish • Traffic count/visibility • Use and Zoning • Amenities Locational Attributes The subject property and all comparable sales are located within the subject competitive market area and no adjustments are applied for location within this analysis. Building Size The subject's building area is±10,079 square feet in size. The comparable sales range from±8,280 square feet to±26,902 square feet. In analyzing the dynamics of the competitive market area, value indications are evident for buildings with a size difference. The difference in size between the subject and the sale is multiplied by the determined adjustment factor$10.00 per square foot,based on appraiser selected difference from market interpretation, and that percentage difference of the price per square foot is the adjustment percentage used in the grid. Sale Sale$PSF Bldg Size Subject Difference Adjust$ Difference $PSF %Adjust Bid Size PSF Difference 1 $ 44.61 26,902 10,079 -16,823 $ (10.00) $ 168,230 $ 6.25 14,0% 8 $ 48.31 8,280 10,079 1,799 $ (10.00) $ (17,990) $ (2.17) A5% 9 $ 47.68 18,876 10,079 -8,797 $ (10.00) $ 87,970 $ 4.66 9.8% 10 $ 41.71 9,590 10,079 489 $ (10.00) $ (4,890) $ (0.51) -1.2% 11 $ 52.53 11,232 10,079 -1,153 $ (10.00) $ 11,530 $ 1.03 2.0% 12 $ 31.34 20,420 10,079 -10,341 $ (10.00) $ 103,410 $ 5.06 16.2% Page 126 of 134 APpmgd Report of]101 Ceatm Aveae,Dub q ,Iw 52001-5016 Land to Building Ratio (LTBR) Typically,properties that have a higher land to building ratio generally are considered superior in that they have superior access, parking and potential for expansion. The subject has a land to building ratio of 1.03:1 of main floor area. The comparables have land to building ratios that range from 1.63:1 to 9.27:1. Therefore, I have adjusted all of the compambles' land to building ratios to the subject's ratio. Investors generally do not consider the land to building ratio as a primary investment factor in their investment decisions. Asa result,the land to building ratio adjustment is based on a$4.00 per square foot adjustment factor. The land to building ratio adjustment is calculated by taking the difference between the subject's land to building ratio and that of each of the comparables. This result is multiplied by $4.0 and then divided by the preliminary price per square foot of main floor area to determine the percentage adjustment. LAND TO BUILDING RATIO ADJUSTMENT SUMMARY 1 8 9 10 11 d-7.79% Subject Land to BuildingRatio 1.03 1.03 1.03 1.03 1.03 Less:Comparable LTBR 2.9 5.4 5.14 3 9.27 Difference in LTBR -1.87 x.37 -4.11 -1.97 -8.24 Multiplied Adjustment Factor $ 4.00 $ 4.00 $ 4.00 $ 4.00 $ 4.00 Product $ (7.48) $ (17.48) $ (16.44) $ (7.88) $ (32.96) Divided by.Prelirinary Price $ 44.61 $ 48.31 $ 47.68 $ 41.71 $ 52.53 Percentage Adjustment -16.8% -36.2% -n5% -18.9% 412.7% Source:Felderman Appreisals Building Age/Condition Generally, an older property will sell for a lower per square foot price than a newer property. This is directly tied to the depreciation of each property. Given that the depreciation varies for each property due to differences in ownership, tenants, etc., it is difficult to determine an adjustment in this analysis. Typically, age adjustments on an annual basis vary between less than 0.25%to 2.0%, with the high adjustments occurring when the property is newer. This indicates that the properties generally depreciate at a higher level when they are newer, with annual depreciation declining as the property ages. Based upon this analysis, compambles are adjusted using a 0.25%adjustment for each year of age difference between the compambles' age at sale and the subject property's effective age as ofthe date of this appraisal. In addition, comparable#9 has been adjusted upwards by 10%based on a matched pairing analysis with the other comparables to account for inferior condition at the time of sale in comparison to the subject property. The age/condition adjustment has been summarized in the following chart. AGE/CONDITION ADJUSTMENT SUMMARY 1 8 9 10 11 12 Comparable Age in Years 61 17 56 27 29 41 Less:Subject Age in Years 67 67 67 67 67 67 Age Difference in Years -6 -50 -11 -40 -38 -26 Multiplied by Adjustment Factor 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% Age Percentage Adjustment -1.5% -12.5% -2.8% -10.0% -9.5% -6.5% Plus,Condition Adjustment 0.0% 0.0% 10.0% 0.0% 0.0% 0.0% Total Age/Condition Adjustment -1.5% -12.5% 7.3% -10.0% -9.5% -6.5% Source:Felderman Appraisals Page 127 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Building Quality of Construction This adjustment is subjective based on the appraiser knowledge ofthe quality. The subject property and all comparable sales appear of similar comparable quality of construction,more specifically. Therefore, no adjustments were applied for quality of construction within tiffs analysis. Amenities-Interior Build Out Typically,buildings with a higher finish percentage command a higher value due to increased income potential associated with more finished space that is related to the increased cost of finishing the space and the increased income due to higher re Ns. The subject property has 60%of its main floor area finished. The comparables' percentage ofmain floor office space ranges from 7%to 90%. The Marshall Valuation Service indicates typical interior build outs for properties similar to the subject are between$20.00 per square foot and$40.00 per square foot. A contributory value for the main floor interior space of$30.00 per square foot has been reconciled. The adjustment is calculated by determining the absolute difference between the main floor interior finish percentage of each comparable and the main floor interior finish percentage ofthe subject property. This figure is then multiplied by$30.00 per square foot to determine the contributory value gained or lost because of the differences in interior finish space. The percentage adjustment is then determined by dividing this figure by the preliminary price per square foot. INTERIOR FINISH ADJUSTMENT SUMMARY 1 8 9 10 11 12 Subject Interior Finish% 60% 60% 60% 60% 60% 60% Less:Comparable Finish% 90% 22% 80% 7% 11% 9% Difference in Finish$ -30% 38% -20% 53% 49% 51% Multiplied b Adjustment Factor $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 Product $ (9.00) $ 11.40 $ (6.00) $ 15.90 $ 14.70 $ 15.30 Divided by:Preliminary Price $ 44.61 $ 48.31 $ 47.68 $ 41.71 $ 52.53 $ 31.34 Percentage Adjustment -20.2% 23.6% -12.6% 38.1% 28.0% 48.8% Source:Felderman Appraisals Traffic CounNVisibility The subject property has a higher traffic count than all of sales comparables,based on typical market desirability. As such, adjustments for traffic count or visibility are applied within this analysis for low at 5%and medium at 10%, based on superior traffic counts. Amenities-Pa king The subject property and all sales comparables reflect similar available parking areas,based on typical market standards for general industrial space. Furthermore, this feature is addressed with the land to building ratio formula. In order to prevent a"double adjustment," only a land to building ratio adjustment will be analyzed. Page 128 of 134 APpmgd Report of]101 Cer¢ml Aveae,Duaq ,I w 52001-5016 Use and Zoning The subject property and all sales comparables reflect similar allowable uses, however,those zoned C2 and CS have typically sold for less than C4 or C3 or PC(as previously discussed),based on current zoning requirements. Therefore, an upward adjustment of 5%is made for those zoned C2 and CS versus the subject and is applied within this analysis. Conclusion to the Sales Comparison Approach Prior to the application ofthe adjustment process,the chosen sales comparables exhibited a sales price range between$31.34 per square foot and$52.53 per square foot,with an average of$44.36 per square foot and median price of$46.15 per square foot. After an analysis ofrelevant transaction and physical characteristics, an adjusted sales price range between$42.96 per square foot and$52.17 per square foot with an average of$47.61 per square foot and a median price of$47.64 per square foot. Less weight is given to the more industrial type sales (#10,#11, and#12)and greater weight to the most similar size and type sales, which supports an average rounded value of$44.00 per square foot. As indicated previously, efforts were made to apply percentage adjustments to the comparable sales in the categories where differences would probably be noted by the market participants. In this case, all adjustments were somewhat subjectively derived, although market participants were surveyed over the past few decades to assist with the adjustment estimates. Clear, empirical data could not be extracted from paired sales analysis due to lack of sufficient data required to perform such analysis. In an efficient market, adjustments of paired sales may provide support and reliability to the adjusted prices. Paired sales analysis requires abundant highly similar data that has indifferences in few variables. The adjustments applied to the comparable sales are considered on a broader basis. Finally, the comparable sales chosen are the most representative indication for the subject property and deemed to be the best data available to develop an indication of market value. This range is considered a stable indication ofpotential sales prices of the freestanding industrial warehouse product within the subject market area. After reviewing and rejecting numerous sales based on several characteristics or conditions of sale,the six sales were selected and given some weight. While the sales are generally similar in characteristics, there were no truly similar sales for this type of property. A qualitative and quantitative analysis was completed for the various differences between the subject and the comparables, to reflect the market perceived differences, and determined from the appraiser years of experience in the real estate and appraisal market,matched pair data, and or regression analysis of anumber of compambles. Page 129 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 Therefore, an indication of market value for the subject property based on the preceding analysis is $44.00 per square foot. As such,the fatal value indicator for the subject property ism follows: SALES COMPARISON APPROACH TO VALUE Subject Square Footage $Per Square Foot Indicated Value 10,079 times $ 43.00 equals $ 433,000 10,079 times $ 44.00 equals $ 443,000 10,079 times $ 45.00 equals $ 454,000 Selected Sales Comparison Approach Value, rounded to nearest$1,000, of say; $ 443,000 AS IS Market Value Indication using the Sales Comparison Approach, as of the effective date,is: Four Hundred Forty-three Thousand Dollars($443,000) The preceding indication of market value is based upon an estimated marketing period and exposure time as previously discussed. Additionally, this indication of market value does not include any amount of personal property, FF&E, or going concern. Page 130 of 134 APpmgd Report of]101 Cer¢ml Aveae,DWb q ,Iw 52001-5016 RECONCZLI4770N OF MARKET VALUE Clients and users of this report should pay particular attention to the appraisal indication of how data was obtained(i.e.provided by owner/borrower, public records, contractor construction estimates,management Hum or individual proforma, property inspection reports, etc.). The method identified will provide an indication of the validity of the data(i.e. actual market data or owners information). It is also imperative that the client or user of this report read any disclaimers, assumptions, and conditions presented throughout the appraisal. If any of the conditions previously mentioned occur, the appraiser will not be held accountable for those items or values placed within the discussion portion of this appraisal report,without being given a chance to adjust the value or provide rebuttal. When the client or user is relying on the appraisal, it is critical to verify the owner and/or borrowers ability to manage said real property or business property before extending any credit. Should credit be identified for repairs or construction, the client or user must allow the appraiser to complete inspections of the work before providing any withdrawals to the owner/borrower. The appraisal is performed in accordance with USPAP, within acceptable appraisal standards, and based on realistic projections if provided within the scope of the appraisal. However, should a significant external impact occur after the date of the appraisal report(such as 9-11 attacks on America or Hurricane Katrina in Louisiana or the Great Recession of 2008-2009)the values presented could change and we reserve the right to adjust the subject value reported in this appraisal report. The intended use of this appraisal was to develop an opinion of market value (using the definition previously stated in this appraisal report) of the subject real property for the clients use in purchase negotiations. No value is included for personal property, FF&E,going concern or business value. The reconciliation involves the weighting of alternative value indications,based on the appraiserjudged reliability and applicability of each approach to value, to arrive at a final market value conclusion. Reconciliation is required because different value indications result from the use of multiple approaches based on the quality of data in each approach. The reconciliation evaluates the strengths and weaknesses of the various approaches determined in this appraisal. To value the subject property,three approaches were researched and the determined values of those deemed appropriate to develop the market value are listed in the following chart, The value is not the assemblage of individual values, though it does include the value of the land and the improvements. Page 131 of 134 APpmgd Report of]101 Cer¢ml Aveae,Dub q ,Iw 52001-5016 SUMMITRY OF VALUE CONCLUSIONS Appraisal Prenise As Is Estimated Land Value (as if vacant) $ 138,000 As Is Improved As of Effective Date By Cost Approach $ 443,000 By Income Approach $ 452,000 By Sales Comparison Approach $ 443,000 *Value indications expressed in current dollars Ranges of value indicate a; Low I $ 443,000 High 1 $ 452,000 Difference 1 2.03% Reconciled Value I I $ 443,000 Compiled by Felderman Appraisals The Cost Approach typically gives a reliable value indication when there is strong support for the replacement cost estimate and when there is minimal depreciation. This approach uses estimates from a stational cost service (that may not be to the exact specifications of the subject), with accrued depreciation estimated, and is then added to the determined Land Market Value as if vacant. This approach is most reliable for a newer property that has no significant amount of accrued depreciation or when there are no sales available in the existing market. It is considered less reliable, and given less weight, when valuing existing buildings. The Cost Approach is considered a test of reasonableness against the other valuation techniques and offers general support for the other approaches,but is not given greatest weight in determining the fatal estimate of value. The Income Approach is typically given greatest weight when evaluating investor owned property. This approach is based on what areal property does produce and/or can most likely produce as an income earning property. The property is occupied by the owner, and the appraiser was not provided any expense information. Thus,the appraiser evaluated the subject property to determine an estimated market rent using several lease comparables. Then,the Effective Potential Gross Income was determined based on estimated and actual expenses subtracted, determined from past appraisals and estimates from the market,to calculate a Potential Net Operating Income, and then converted to an opinion of value using an estimated Capitalization Rate. Market participants are primarily analyzing properties based on their income generating capability. An investor is the most likely purchaser of leased property, and a typical investor would place greatest reliance on the Income Approach. Therefore, for an investor the income approach would typically be considered a reliable and substantiated value indicator, and even though the value is based on the appraiser-supported estimates from the market,but in this appraisal the income approach is given least weight in the final opinion of market value estimate. The Sales Comparison Approach is more reliable in an active market when an adequate quantity and quality of comparable sales date are available and for owner occupied property. It provides a value based on comparing the subject to similar properties that have been sold recently or for which listing prices or offers are known. Page 132 of 134 Appmssa,Report of]101 Ce,ar Avvwe,Dubuque,Zowa 52001-5016 The sales used in this analysis are considered most comparable to the subject, and the required quantitative and qualitative adjustments were based on reasonable and well-supported rationale. The appraiser researched several sales,but only those discussed in the main body of this report are used in the determined value. This approach is typically the most relevant method for owner-user property,because it considers the prices of alternative property with similar utility for which potential owner occupied buyers would be competing. Therefore, the market considers the Sales Comparison Approach a reliable value indicator, and the appraiser gives it substantial weight in the final opinion of value estimate,with support from the Income Approach. The opinion(s) of market value includes the land and the improvements; but no personal property, no FF&E, and no business or going concern value."' The appraiser assumes that the subject real estate property will remain operational based on previously stated extraordinary assumptions and/or hypothetical conditions. The subj ect property has numerous attractive attributes such as the central business district location,the adequate traffic and visibility, the nearby parking ramp and on-street meter parking, and the overall improving market conditions. The property has challenges,including the lack of off-street parking,the older building design with an inefficient building layout, and the large building size. Exposure time is the length of time the subject property would have been exposes for sale in the market had it sold on the effective valuation date at the concluded market value. The market presumes that exposure time precedes the effective date of the appraisal. Marketing time is an estimate of the amount of time it might take to sell a property at the estimated market value immediately following the effective date of value. Based on the appraiser review of recent sales transactions for similar properties and analysis of the supply and demand in the local market, presented earlier in this report,it is the appraiser opinion that a reasonable marketing period of 1 to 60 months is supported. Accordingly, the appraiser estimate of the subject's marketing period is 3 to 12 months. Of note, for the AS IS value,it is the appraiser opinion that the subject has not been marketed and is direct negotiations with the client for a sale of the property. There was discussion the owner may have an offer on another property and desires a quick sale, sometimes referred to as a distress sale. Research shows that distressed sales have had impacts of30%to 60%of a stabilized market value. Often when this occurs the owner is willing to take a reduced amount for the purchase. This appraisal report does not analyze the possibility of a quick sale consideration since that was not part of the scope of work. However,the appraiser does provide a range of value,in addition to the specific value,to allow the client an opportunity for negotiations of a purchase price within that range. 195 OCC Regulation 12=Part34,Subpart C,Section 3444(a)(13)requires thatthe appraisal"identifyand separately value any personal property,fixtures,or intangible items drat are not real property but are included in the appraisal,and discuss the drpad ofthev inclusion or exclusion on the estimate of pre marred value' Page 133 of 134 ............................................................................................................................................................................................................................................... Appraisal Report of 1101 Central Avenue,Dubuque,Iowa 52001-5016 As of the effective date of this appraisal, based on the reconciled foregoing data and analysis of the data contained in this appraisal report, subject to the definitions, assumptions and limiting conditions, hypothetical conditions and extraordinary assumptions, appraiser certifications, degree of observation of the subject property, the identified appraisal problem and defined scope of work, the appraiser opinion of market value conclusion for the subject is presented in the following chart. Appraisal Premise As Is Property Rights Fee Simple Estate Extraordinary Assumptions(EA) or EA- owner provided info is correct Hypothetical Conditions (HC) (see section for others) Effective Date of Value 4/5/2016 Reasonable Exposure Time 1 to 60 months Marketing Time 3 to 12 months Market Value Conclusion $443,000 Market Value Range $400,000 to$500,000 ROBERT J. FELDERMAN IA CG01134 Expires 6/30/16,WI 766-010 Expires 12/14/17, IL 553.002107 Expires 9/30/17 Page 134 of 134 ADDENDUM A BUILDING SKETCH Al SITE PLAN A2 Felderman Appraisals,Dubuque,Iowa SKETCH vvry viw — .v er Ali n L. _± .l •� � _„ uixmm Mimnn.mmwe vvn SITE PLAN C 41 f'Aft 75 F,fde.... pASWy Du , g bw¢ ADDENDUM B AREA MAP AERIAL MAP PLAT MAP CENSUS TRACT MAP FLOOD HAZARD MAP ZONING MAP AND DATA TRAFFIC COUNT MAP HISTORICAL DISTRICT MAP WETLANDS MAP TOPOGRAPHY MAP DEMOLITION DISTRICT MAP LEAD MINE MAP Felderman Appraisals,Dubuque,Iowa AREA MAP r' Bafflown q 4 D.l mik lmemeurg Holy cans Sherril 11 Orta Olv Kleler X � ', � � j- wn0 n IrulkLm6 Dure ngo�^ SagrJekr n } Yen m Nazel9nen Ne'2QWbn$ �Slnslnewe CAaM Dubu9ue._____________ `________________ woven____"_ 6yersvnle Fast eueuaue Scnea rAoX"eroy Facer Emma..�u, .Kevw� � kY mi Galena ouuuyueR i I WorlM1inglon Ni"g le ', Salm WneWS Sana Spin ngsEllo Lrt ,ver re p s: we�ee mime uDone •• } 9 8 1 2 3 4 5 6 1 8m MX(11 vel vnrean rrl - MI I Green wv Per. 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Plat ,oz44noos `LV 1pp p0 SZ A 1pp p'l y 446 ,0244,8009 ,024456008 \ 1024456009 61 1024456003 447 ,0244560„ t58 ,0244560,0 1024456066 D U B U E RI G I NA WP 1pp SU F LO 2 2 SS 102447600, ,02445600] 11 .3 DUBUQU RIGIN TO N), ww18 SU F LOT A pp t 100 ft 1024461005 ` •'/1024461W9 1024476002 3;\ y� 1024476W *Notice - These maps are compiled for assessment and tax information purposes from official county records. All map information shown is for the forgoing purpose and does not represent a survey of land. CENSUS MAP Census Tract Map 19-061, Area 0001.00 Census Tract 0001.00 boundaries are Rhomberg Avenue and East 20" Street to the north,the Mississippi River to the east, Dodge Street to the south, and Bluff Street to the west. or ed It aw of • 2015 FFIEC Geoconce Census Report Askir Barran, 01 CENmnuVE,DUBUQUE w,5xo01 MSA'.20220-DUBUQUE,M Bonn is-IAA Counb061-DUBUQUE COUNIY 4edCode'.0001.00 Surmnemy Can ua NumessahmM1brm Camara Po on armInasom Bass Name Lewl Low TadPo ulatlan3127 Underaruedol DleVeaed Ted No Tract Minafi % 29.71 2015 FRED Eakwind M$MADMonAI$MAD Mete, §65,]00 earm Familiae Family But Numla NXouahods 10a0 2015 Etimeen Tat MMlan Family Income UO.673 NormHasmanicMia,Population 218] 2010 Tract Wt ian Firmly Income 519.126 Tretl Mmon Po Ie4 930 Tnd Norman FamilyIncome% 31]] pmepan Indian Pouletlon 1B RecIPo leson 3127 AeleMlawasomeradBc sander Ericsson ]9 Trap Moa- % 29.74 BIe4Po ub4n 19e Trans Mintarty Populason 930 Histanlainotuadon R18 a%varmaccouprom Units 208 gM1¢Mwa or More Paas,Focuumon 119 Family Unds 625 a Murmm etion Ceua Homan InformationTract Level Low Total Houses Units 1754 2010 MS Ow DhdbWlde non#45NMO III Family $61.138 1-b 4 Fares Urns 823 Income MMian Houae a yeas 71 2015 FRED Estimated MSNMDMonNSYMD Median £fi5,]00 gvner-0ccu Ied Unlb 208 Family Income RenhrRcu lad uses 432 %8elmr FineIcn,matuompem I-a 4 I-Immons,Unix 1191 Trail MMlan Family lncoma% I II immainal Quiet First 2010 USE Median Fe ININ Income Transmutes 94 2015 EstraW Trap Medlin Family Income 0873 2010 Tract Media n Household lname $15.523 Felderwmn Appraieale,Dubuque,Lown FLOOD MAP Area of minimal flood hazard depicted as (unshaded) is the area determined to be outside the 500yearflood and protected by levee from 100 year flood InterFlooda..� d,t oto. mw..usaotmte F.a.rF,.m,d, >vchF. ,.a C4 DOWNTOWN GENERAL BUSINESS DISTRICT, CITY OF DUBUQUE 5-14 C-4 Downtown Commercial The C-4 District is intended to provide locations in the downtown commercial areas of the City for a large variety of uses. The C-4 District is not intended to have any application in undeveloped or newly developing areas of the City. The regulations for this district are designed to encourage the maintenance of existing uses and the private reinvestment and redevelopment of new uses. 5-14.1 Principal Permitted Uses The following uses are permitted in the C-4 District. 1. Agricultural supply sales 2. Animal hospital or clinic 3. Appliance sales or service 4. Art gallery, museum, or library 5. Artist studio 6. Auditorium or assembly hall 7. Automated gas station 8. Bakery (wholesale/commercial) 9. Banks, savings and loan, or credit union 10. Bar or tavern 11. Barber or beauty shop 12. Business services 13. Catalog center 14. Construction supply sales or service 15. Contractor shop or yard 16. Dental or medical lab 17. Department store 18. Furniture upholstery or repair 19. Furniture or home furnishing sales 20. Gas station 21. General office 22. Grocery store 23. Hotel 24. Housing for the elderly or persons with disabilities 25. Indoor amusement center 26. Indoor recreation facility 27. Indoor restaurant 28. Indoor theater 29. Laundry, drycleaner, or laundromat 30. Medical office 31. Mortuary or funeral home 32. Neighborhood shopping center 33. Parking structure 34. Pet daycare or grooming 35. Photographic studio 36. Place of religious exercise or assembly 37. Printing or publishing 38. Private club 39. Public, private or parochial school approved by the State of Iowa(K-12) 40. Railroad or public or quasi-public utility, including substation 41. Residential use above the first floor only 42. Retail sales or service 43. School of private instruction 44. Service station 45. Shoe repair 46. Supermarket 47. Tailor or alteration shop 48. Upholstery shop 49. Vending or game machine sales or service 50. Wholesale sales or distributor 51. Tattoo Parlor 52. Tour home 5-14.2 Conditional Uses The following conditional uses may be permitted in the C-4 District, subject to the provisions of Section 8-5: 1. Carwash 2. Licensed adult day services 3. Licensed child care center 4. Off-street parking 5. Restaurant, drive-in or carryout 6. Vehicle body shop 7. Vehicle sales or rental 8. Vehicle service or repair 9. Wind energy conversion system 10. Passenger transfer facility 5-14.3 Accessory Uses The following uses are permitted as accessory uses as provided in Section 3-7: 1. Any use customarily incidental and subordinate to the principal use it serves 2. Wind turbine (building-mounted). 3. Crematorium accessory to a mortuary or funeral home. 4. Drive-up automated bank teller. 5-14.4 Temporary Uses Temporary uses shall be regulated in conformance with the provisions of Section 3-19. 5-14.5 Parking Off-street parking is not required. New surface off-street parking lots are prohibited unless approved by the City Council. Underground and above-ground parking garages are allowed provided they are an integral part of a new or existing building. 5-14.6 Signs Signs shall be regulated in conformance with the provisions of Article 15. 5-14.7 Bulk Regulations Setbacks Downtown Min Lot Min Lot Max lot Min Min Min Rear' Max Commerclal Area Frontage Coverage Front Side Height •. lot feet) (feet) area) (feet) (feet) (feet) (feet) Permitted Uses Residential Above 1st Floor --- --- --- --- --- --- 75 Vehicle Sales 20,000 --- --- --- --- --- 75 All Other Permitted Uses --- --- --- --- --- --- 75 Conditional Uses Licensed child care center, adult day services 3,500 50 50 --- --- --- 75 All Other Conditional U� I --- --- --- 10 --- --- 75 When abutting a residential or office-residential district, a six foot side setback is required. When abutting a residential or office-residential district, a 20 foot rear setback is required. Gesri 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esrl Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 2,000 o .a.. 1 200 w<o 6.900 s 440 5.300 540 6.000 7900 4.900 1.400 7 300 t � 4 _ 2.100 4 150 5.200 020 Y4 2,300 3.190 s 1.600 w __ 6.400 ` ^\680 1 780 3.710 80 6.900 ,•n a 4.600 3.490 w ' w ' 5.700 670 5.100 w,,e 9.5.300 w ` 52 w a 1.000 0 004 0.08 I�Miles 6.700 Dubu4.�e _ Average Daily Traffic Volume ' Up to 6,000 vehicles per day 6,001 - 15,000 15,001 - 30,000 30,001 . 50,000 i.,50,001 - 100,000 ♦More than 100,000 per day Source:®2015 Market Planning Solutions,Inc. April 01, 2016 ®2015 Esrl Page 1 of 1 - C IMMF;.- City of Dubuque Historic Districts Key Historic Districts Cathedral Jackson Park Langworthy Id Main est 1 1th Street 91 RA A_:}� �N� �r �.:�n.� l��Y.-gin •C._. - \\ u ';•a - a esn Y_ - ? « ¢ ^ . \ ° %\ t Ya U « _ - r kq,.e » . y § _ - < . �� . . « . » : : Broadway streetBrewery Neighborhood Downtown Neighborhood • ILM Third Street Neighborhood Fourth Street Neighborhood Jackson Park Neighborhood M W. 11th Street Neighborhood I - - N ,� Conservation District Ma • LEAD MINE MAP NO KNOWN LEAD MINES ON OR NEAR SUBJECT PROPERTY sm 1 r '•� k � li Ar 1 � � Y��v r, �n :U s Feldermaa Appraisals,Dubuque,Iowa ADDENDUM C SUBJECT PHOTOGRAPHS Felderman Appraisals,Dubuque,Iowa PHOTOGRAPHS OF SUBJECT FRONT VIEW, CORNER OF 11TH & CENTRAL AVENUE ROOF TOP VIEW FROM NEARBY PARKING RAMP Feldrmm Vpmssdl Dubu ,zow PHOTOGRAPHS OF SUBJECT mom FRONT REAR IF SOUTH SIDE 11TH STREET 11TH ST (NOTE PARKING METERS & HANDICAP SPACE) ALLEY ALLEY Feldrmm Vpmssdl Dubu ,zow PHOTOGRAPHS OF SUBJECT CENTRAL AVENUE CENTRAL AVENUE CENTRAL AVENUE FIRE HYDRANT '!*4 A fi I' MAIN ENTRY ORIGINAL TIN CEILING FACADE EXIT DOOR SIDE DOOR WATER HEATER ELECTRICAL Feldrmm Vpmssdl Dubu ,zow PHOTOGRAPHS OF SUBJECT ELECTRICAL PANELS KITCHEN STORAGE EXIT SIGN AND LIGHTS OLD ROOF LEAK EVIDENCE .j OLD ROOF LEAK EVIDENCE ROOF HVAC UNIT FRONT WINDOW OPEN AREA Feld rmm Vpmssdl Dubu ,low PHOTOGRAPHS OF SUBJECT ,ff OPEN AREA OPEN AREA Y MAdM lvy � OPEN AREA STAGE OPEN AREA OPEN AREA OFFICE FLOORING Feld rmm Vpmssdl DWb y ,low PHOTOGRAPHS OF SUBJECT FLOORS & WALLS OFFICE AND MAIL ROOM AREAS CONFERENCE DOORS STORAGE AREA NOTE FINISH STORAGE AREA LAUNDRY KITCHEN AND CONCESSION AREA Feldrmm Vpmssdl Dubu ,zow PHOTOGRAPHS OF SUBJECT RESTROOMS LADIES MENS MENS HANDICAP RESTROOM W/SHOWER Feldrmm Vpmssdl Dubu ,zow ADDENDUM D COMPARABLE SALES DATA INFORMATION LAND COMPARABLE SALES DATA INFORMATION IMPROVED COMPARABLE SALES PHOTOGRAPHS IMPROVED SUBJECT AND COMPARABLES MAP Felderman Appraisals,Dubuque,Iowa LAND COMPARABLE # 1 ADDRESS 375 E. 9TH STREET, DUBUQUE, IA SALE PRICE $697,713 $144,587 SALE DATE 4/26/2011 1/18/2011 LEGAL LOT 2-1 CENTER CITY PLACE#3, DUBUQUE, IOWA DOCUMENT 11-6496 11-3410 SELLER ROUSE &DEAN FOUNDRY WAREHOUSE REDEVELOPMENT LLC BLDG LLC BUYER CITY OF DUBUQUE ROUSE & DEAN FOUNDRY BLDG, LLC LOT SIZE 76,840 SQUARE FEET (1.76-ACRES) ZONING PLANNED COMMERCIAL 2011, WAS HEAVY INDUSTRIAL PREVIOUSLY $ PER SQ FT $9.08 PER SQUARE FOOT (INCLUDED DEMOLITION COSTS) VERIFICATION PUBLIC RECORDS,ASSESSOR AND RECORDER, SELLER GRONEN TRAFFIC COUNT LOW, BUT VISIBLE FROM HIGH ASSESSORS 10-24-480-028 COMMENTS WAREHOUSE DEVELOPMENT LLC HAD A PURCHASE AGREEMENT TO SELL THE PROPERTY TO CITY OF DUBUQUE, SUBJECT TO IMPROVEMENTS BEING DEMOLISHED. THEY SOLD THOSE RIGHTS TO ROUSE AND DEAN FOUNDRY TO COMPLETE THE DEMOLITION. BOTH COMPANIES HAVE SAME INDIVIDUALS INVOLVED (JOHN AND MARY GRONEN). THE SALE IN APRIL TO THE CITY WAS SUBJECT TO THE DEMOLITION BEING COMPLETED (WHICH WAS STILL UNDERWAY IN JULY). PARCEL SOLD IN 2006 AS PART OF LARGER PARCEL AND THEN WAS SPLIT INTO LOT 1 AND LOT 2 OF LOT 1 CENTER PLACE #3. APPRAISER PREVIOUSLY APPRAISED THE COMBINED PARCEL FOR PREVIOUS OWNER YEARS BEFORE THE 2006 TRANSACTION. Felder.an Appraisals, I bvq.,Iowa LAND COMPARABLE# 2 10 52570 E lo 0 00 r 1-000 �* 3 �� . 11 2 ADDRESS BLUFF STREET AT IST STREET, DUBUQUE SALE PRICE $70,000 SALE DATE 5/29/2011, CLOSED 6/15/2011 DOCUMENT 11-8438 LEGAL N. '/z AND S. '/z LOT 1-1 OF CITY LOT 600, DUBUQUE GRANTOR/SELLER COTY, MICHAEL J. GRANTEE/BUYER FRANKLIN INVESTMENTS (CARNER, GARY) LOT SIZE 7,425 SQUARE FEET ZONING OR OFFICE RESIDENTIAL DISTRICT $ PER SQ.FT. $9.43 VERIFICATION PUBLIC RECORDS ASSESSOR&RECORDER, BUYER/SELLER TRAFFIC COUNT LOW ASSESSOR 10-25-260-021 COMMENTS ASSESSORS VALUE $8,900 (2011). LAST VACANT LOT IN OLD MAIN HISTORIC DISTRICT DOWNTOWN. ADJOINING OWNER PURCHASED AS DRIVEWAY TO HIS LARGE PARCEL(PURCHASED OLD SCHOOL IN 20 10) AND NEEDS FORACCESS WITH HIS FUTURE DEVELOPMENT. PAST SALE WAS 2004 ON LAND CONTRACT(DUGGAN TO COTY,04-1483,$55,000 OR $7.41 PER SQUARE FOOT). 2011 SALE IS 27%ABOVE 2004 SALE OVER 88 MONTH PERIOD IS 3.7% PER YEAR AVERAGE. SELLER PURCHASE IN 2004 WAS FOR HOLD AND SELL AT PROFIT. Pelderman Appraisals,Dubuque,Iowa LAND COMPARABLE # 3 J rj ADDRESS 385 BELL STREET, DUBUQUE SALE PRICE $325,644 SALE DATE 8/3/2011 DOCUMENT 11-10871 LEGAL LOT 1-1 ADAMS COMPANY'S 4TH ADD (ICE HARBOR`B') SELLER CITY OF DUBUQUE BUYER FLEXSTEEL INDUSTRIES, INC LOT SIZE 27,138 SQUARE FEET ZONING PC PLANNED COMMERCIAL $ PER SQ. FT. $12.00 VERIFICATION PUBLIC RECORDS ASSESSOR&RECORDER, SELLER TRAFFIC COUNT LOW ASSESSOR 11-30-110-023 COMMENTS SALE OF VACANT LAND NEXT TO CITY PARKING RAMP. AT TIME OF SALE WAS TAX EXEMPT,THOUGH ASSESSED AT$271,380(SALE IS 120% OF ASSESSED VALUE). SALE WAS PUBLISHED IN LOCAL NEWSPAPER AND COUNCIL MINUTES. NO FINANCIAL INCENTIVES IN THE PRICE, BUT REFLECTS BENEFIT TO USE THE PARKING RAMP THAT NEW CORPORATE HEADQUARTERS WILL BE CONSTRUCTED. Felderman Appraisals, I bvq.,f wa LAND COMPARABLE # 4 ADDRESS SALINA STREET AT CHARTER STREET,DUBUQUE, IOWA SALE PRICE $285,000 $200,000 SALE DATE 9/30/2011 3/28/2011 LEGAL LOT 2-4 DUBUQUE INDUSTRIAL CENTER WEST 4TH ADD,DUBUQUE DOCUMENT 2011-14202 2011-4952 SELLER PM SALINAS REAL ESTATE LLC OLD HIGHWAY ROAD COMPANY BUYER CW WOLFF LLC PM SALINAS REAL ESTATE LLC LOT SIZE 51,800 SQUARE FEET (1.19 ACRES) ZONING LIGHT INDUSTRIAL $ PER SQ FT $5.50 PER SQUARE FOOT $3.85 PER SQUARE FOOT LAND VERIFICATION PUBLIC RECORDS,ASSESSOR AND RECORDER, SELLER MIHALAKIS TRAFFIC COUNT LOW ASSESSORS 10-25-433-002 AND 003 COMMENTS PURCHASED BY ADJOINING OWNER IN 3/2011 FOR FUTURE DEVELOPMENT OF HIS COMMERCIAL USES, BUT RESOLD TO ADJOINING INDUSTRIAL USER. WAS FORMER CELOTEX MANUFACTURING AND ALTAR RECYCLE CENTER. PeldermanAppraisals,Dubuque,Iowa LAND COMPARABLE # 5 10 4 1 10 42 1 11 11 lo 1 42 2s ADDRESS 506 E. 16TH STREET, DUBUQUE, IA SALE PRICE $300,000 SALE DATE 6/29/2012 DOCUMENT # 2012-11234 GRANTOR/SELLER W P INVESTMENTS, LLC GRANTEE/BUYER CITY OF DUBUQUE LOT SIZE 13,360 SQUARE FEET (0.3067-ACRES) ZONING HEAVY INDUSTRIAL $ PER SQ FT $22.46 PER SQUARE FOOT OF LAND VERIFICATION PUBLIC RECORDS, BUYER TRAFFIC COUNT LOW ASSESSORS 1024284015 COMMENTS ASSESSED VALUE OF $166,160 FOR 2012; PURCHASED BY CITY AS PART OF FEDERAL PROJECT TO RELOCATE AND EXPAND THE BEE BRANCH WATERSHED PROJECT. PRICE APPEARS WELL ABOVE TYPICAL MARKET VALUES, FOR BUILDING AND FOR LAND. Felde,.an Appraisals, I bugue,kwa LAND COMPARABLE # 6 10211 102 7B003 c9� ADDRESS 928 CENTRAL AVENUE, DUBUQUE, IA SALE PRICE $32,000 SALE DATE 7/11/2012 DOCUMENT # 2012-11544 GRANTOR/SELLER BARTH, ALFRED & MARIE GRANTEE/BUYER MARDE ENTERPRISES LOT SIZE 2,560 SQUARE FEET (0.06-ACRES) ZONING C4 GENERAL DOWNTOWN COMMERCIAL $ PER SQ FT $12.50 PER SQUARE FOOT BEFORE DEMO VERIFICATION PUBLIC RECORDS, BUYER TRAFFIC COUNT HIGH ASSESSORS 10-24-478-003, ASSESSED VALUE OF $48,860 AT TIME OF SALE COMMENTS PURCHASED BY ADJOINING PROPERTY OWNER FOR FUTURE DEMOLITION AND PARKING (2013 DEMO AND GREEN SPACE). ESTIMATED DEMO $10,000 TO $15,000, FOR ESTIMATED VALUE AS IF VACANT IS $18.35 PER SQUARE FOOT. PRICE APPEARS WELL ABOVE TYPICAL MARKET VALUES FOR LAND, BUT REFLECTS PURCHASERS PAYING AS MUCH AS DOUBLE FOR ADJOINING LAND TO EXPAND BUSINESS. Feldermm Appraisals,Dubuque,Iowa LAND COMPARABLE # 7 5-1 `w Y. ',' Z22 J :,i%i 323 10 2 1 02-005 � t 102 \ A59 32 ADDRESS MAPLE AND EAST 16TH STREET, DUBUQUE,IA SALE PRICE $70,000 $54,159 SALE DATE 12/28/2012 12/22/2010 LEGAL LOTS 285 &286 IN EAST DUBUQUE ADDITION,DUBUQUE,IOWA DOCUMENT 2012-23292 2010-21852 SELLER ZENNER,ANTHONY JUNNIE AND RICH'S COIN PARTNERSHIP BUYER HERBST,DONALD ZENNER,ANTHONY AND JUANITA LOT SIZE 10,300 SQUARE FEET (0.24-ACRES) ZONING HEAVY INDUSTRIAL $PER SQ FT $6.80 $5.26 VERIFICATION PUBLIC RECORDS,ASSESSOR AND RECORDER TRAFFIC COUNT LOW ASSESSORS 10-24-289-010; 2013 - $33,710; 2012 - $31,210; 2011 - $31,210 COMMENTS FORMER SITE OF HOUSES DEMOLISHED PRE-2010 FOR FUTURE DEVELOPMENT PRIOR TO SALE. Peldennan Appraisals,Dubuque,Iowa LAND COMPARABLE # 8 _l 78A® ADDRESS 156 MAIN STREET, DUBUQUE, IA SALE PRICE $350,000 SALE DATE 12/28/2012 LEGAL LENGTHY SEE ASSESSOR OR WARRANTY DEED DOCUMENT 2012-23834 GRANTOR/SELLER JAMES DIGMAN GRANTEE/BUYER PLATINUM SUPPLEMENTAL INSURANCE (WAYNE BRIGGS) LOT SIZE 7,392 SQUARE FEET ZONING C4 GENERAL COMMERCIAL $ PER SQ FT $47.35 VERIFICATION PUBLIC RECORDS ASSESSOR&RECORDER, SELLER TRAFFIC COUNTS LOW ASSESSOR 10-25-282-006, ASSESSED $119,540 IN 2012 ($129,103 IN 2013, AND $142,720 IN 2014) COMMENTS PURCHASED BY ADJOINING PROPERTY (ACROSS THE STREET) OWNER FOR PARKING NEEDED TO EXPAND EXISTING BUILDING. EXISTING BUILDING WAS DESIGNED FOR INDUSTRIAL USE AND THEN CONVERTED INTO COMMERCIAL WAREHOUSE. WILL BE DEMOLISHED AT LATER DATE. BUILDING WAS 2,466 SQUARE FOOT SINGLE STORY, BRICK W/STUCCO,NO BASEMENT,AT $141.93 PER SQUARE FOOT. SOLD IN 2011 BETWEEN FAMILY MEMBERS (ESTATE). DEMOLITION ESTIMATED AT $10,000 TO $15,000. Felderman Appraisals, I bvq.,Iowa LAND COMPARABLE # 9 ADDRESS 2794 UNIVERSITY AVE, DUBUQUE, IA SALE PRICE $350,000 SALE DATE 3/14/2013 LEGAL LOT 3 SEIPPEL ROAD COMMERCIAL PARK, PLAT 2 DOCUMENT 2013-4798 SELLER SEIPPEL ROAD LLC BUYER CURTIS AND CATHERINE MARKS LOT SIZE 1.12 ACRES (48,619 SQUARE FEET) ZONING C3 GENERAL COMMERCIAL $ PER SQ.FT $7.20 VERIFICATION PUBLIC RECORDS ASSESSOR&RECORDER, BUYER AND SELLER TRAFFIC COUNTS LOW, BUT VISIBLE FROM HIGH ASSESSOR 10-27-403-002 COMMENTS PURCHASER ADDED RETAIL STORE (MATTRESS). SOLD BY ADJOINING PROPERTY OWNER(GLASS COMPANY) AFTER PART TAKEN FOR ROAD PURPOSES. LAND ASSESSED $72,180 TIME OF SALE, $77954 IN 2013, $291,710 IN 2014. LOT HAS VISIBILITY FROM HIGHWAY 20 AND FRONTAGE ROAD TYPE ACCESS. Felder.an Appraisals, I bvq.,Iowa LAND COMPARABLE # 10 ADDRESS 275 HARRISON ST, DUBUQUE, IA SALE PRICE $1,500,000 SALE DATE 8/15/2013 LEGAL LOT 1 AND 2, HARRISON STREET PLACE #4, DUBUQUE, IOWA DOCUMENT 2013-13721 GRANTOR/SELLER M & S LEASING II L.C. (MIHALAKIS) GRANTEE/BUYER SPAHN AND ROSE LUMBER COMPANY LOT SIZE 147,252 SQUARE FEET (3.38-ACRES) ZONING LIGHT INDUSTRIAL $ PER SO FT $10.19 VERIFICATION PUBLIC RECORDS,ASSESSOR AND RECORDER, SELLER TRAFFIC COUNT LOW, BUT VISIBLE FROM HIGH ASSESSORS 10-25-478-014; 2014- $343,310; 2013 - $134,240; 2012- $124,300; 2011 - $124,300, 10-25-478-015; 2014- $198,360; 2013 - $54,620; 2012- $50,570; 2011 - $50,570 COMMENTS FORMER FED-EX LEASED SITE, BUILDINGS DEMOLISHED PRIOR TO 2010 AND AFTER 2009. BUILDING ON LOT NEXT DOOR SOLD TO SAME BUYER FROM DIFFERENT LEGAL ENTITY, BUT SAME SELLER, FOR $2,000,000 FOR 69,870 SQUARE FEET OF LAND. BUILDING BEING TAKEN DOWN AND MOVED TO NEW LOCATION ON THE TOTAL SITE IN 2014. BASED ON TOTAL PURCHASE OF $3,500,000 FOR 217,122 SQUARE FEET OF LAND, WITHOUT ADJUSTING FOR THE REUSE VALUE OF THE BUILDING, IS $16.12 PER SQUARE FOOT. Felderman Appraisals, I bvq.,Iowa LAND COMPARABLE # 11 4 ¢ 1 s , ADDRESS 485 CENTRAL AVE, DUBUQUE, IA SALE PRICE $251,000 SALE DATE 9/25/2013 LEGAL LENGTHY SEE ASSESSOR OR WARRANTY DEED DOCUMENT 2013-18721 GRANTOR/SELLER FINNIN REAL ESTATE III LLC GRANTEE/BUYER FRITZ-DUBUQUE LLC LOT SIZE 18,395 SQUARE FEET ZONING C3 GENERAL COMMERCIAL $ PER SQ FT $13.65 VERIFICATION PUBLIC RECORDS ASSESSOR& RECORDER, BUYER TRAFFIC COUNT HIGH ASSESSOR 10-25-237-008 COMMENTS PURCHASED BY ADJOINING PROPERTY (ACROSS THE STREET) OWNER FOR PARKING, WITH PLANS TO ADD TO EXISTING BUILDING (WHICH REQUIRES MORE PARKING) LAND ASSESSED $110,160 TIME OF SALE, $110,370 IN 2014. EXISTING BUILDING WAS UNUSED FOR YEARS AND WILL BE DEMOLISHED AT LATER DATE. Felder.an Appraisals, I bvq.,Iowa LAND COMPARABLE # 12 qua IA 1 ti HIS ADDRESS 1836 WASHINGTON, DUBUQUE, IA SALE PRICE $50,000 (LAND) SALE DATE 12/5/2013 LEGAL LENGTHY DOCUMENT 2013018708 SELLER STEVE LAMPE BUYER CARY CARNER LOT SIZE 5,100 SQUARE FEET ZONING RESIDENTIAL (ADJOINS LIGHT INDUSTRIAL) $ PER SQ FT $9.80 VERIFICATION PUBLIC RECORDS,ASSESSOR,AND RECORDER, SELLER TRAFFIC COUNTS LOW ASSESSORS 10-24-259-008, 2014 AND 2013 AT $19,180, 2012 AT $12,240; GROSS TAXES IN 2013 AT $344.58 AND 2012 AT $217.98. COMMENTS SELLER TRIED TO SELL TO CITY WITH ADJOINING LOT BUILDING, BUT THEY WERE NOT INTERESTED. PRIOR LAND SALE IN 2009 FOR$18,000 IN FORECLOSURE AND RESIDENTIAL BUILDING DEMOLISHED. WAS NOT LISTED FOR SALE. LAND SOLD SEPARATELY, DUE TO DIFFERENT OWNERSHIP, WITH 1800 WASHINGTON STREET WAREHOUSE. TOTAL SALE PRICE WAS $45.32 PER SQUARE FOOT WITH LAND AND BUILDING. Felder.an Appraisals, I bvq.,Iowa LAND COMPARABLE # 13 17- ADDRESS 2035 KENNEDY ROAD, DUBUQUE, IA SALE PRICE $910,000 (4 EQUAL INTERESTS OF $227,500 EACH) SALE DATE 2/5/2014(4 DEEDS FILED SEPARATE DATES) LEGAL LENGTHY SEE ASSESSOR OR WARRANTY DEED DOCUMENT 2014-1893, 1894, 1897 AND 1900 SELLER HANSEL, RICHARD FAMILY TRUST; HANSEL, CHARLENE TRUST; RAFOTH, ELEANOR;WEINKSTERN FAMILY PROPERTIES, LLC BUYER CONVENIENCE STORE INVESTMENTS LOT SIZE 1.15 ACRES (50,188 SQUARE FEET) ZONING C3 GENERAL COMMERCIAL $ PER SO FT $18.13 VERIFICATION PUBLIC RECORDS ASSESSOR& RECORDER, BUYER INTERVIEW IN NEWSPAPER TRAFFIC COUNTS 15,800 ALONG KENNEDY ROAD, 4,160 ALONG HILLCREST, IN 2013 ASSESSOR 10-21-425-007; 2013 - $316,267; $376,410 IN 2014 COMMENTS PURCHASED WITH BUILDING THAT WAS DEMOLISHED FOR FUTURE GAS STATION AND CONVENIENCE STORE ALONG HIGH TRAFFIC AREA. AND TOTAL VALUE IS $673,952 IN 2013 AND $596,200 IN 2014. BUILDING WAS VACANT AND UNUSED FOR SOME TIME. Felderman Appraisals, I bvq.,Iowa LAND COMPARABLE # 14 .a ADDRESS 1545 ASSOCIATES DRIVE, DUBUQUE, IA SALE PRICE $1,300,000 SALE DATE 2/4/2014 LEGAL LOT 3 MEDICAL ASSOCIATES SUB NO 2 DOCUMENT 2014-1125 SELLER STATE CENTRAL BANK BUYER ASSOCIATES PARK PROPERTIES LOT SIZE 2.19 ACRES (95,527 SQUARE FEET) ZONING C3 GENERAL COMMERCIAL $ PER SO FT $13.61 VERIFICATION PUBLIC RECORDS, SELLER, OBSERVED & INTERVIEWED TRAFFIC COUNTS 5,700 ON ASSOCIATES, 21,500 ON NW ARTERIAL, IN 2013 ASSESSOR 10-28-151-010 COMMENTS PRIOR SALE 2008 AT $1,500,000, VACANT THE ENTIRE TIME, DUE TO NATIONAL ECONOMY IMPACT ON BANKING INDUSTRY. BUILDING WAS UNUSABLE IN PRESENT CONDITION AND LIKELY CANDIDATE FOR DEMOLITION. BUYER WAS ADJOINING PROPERTY OWNER WITH SELLER UNDERSTANDING NEW BUILDING TO BE CONSTRUCTED ALONG HIGH TRAFFIC AREA LAND ASSESSED $648,292 TIME OF SALE (TOTAL $1,159,650), $678,950 IN 2014(TOTAL VALUE $1,283,550). Felder.an Appraisals, I bvq.,Iowa LAND COMPARABLE # 15 t ` ADDRESS HOLLIDAY DRIVE, DUBUQUE, IA SALE PRICE $217,800 SALE DATE 9/24/2014 LEGAL LOT 2 OF HOLLIDAY 6TH ADDITION DOCUMENT 2014-10704 SELLER WBBW HOLLIDAY DEVELOPMENT LLC(WAYNE BRIGGS, TIM HODGE) BUYER SJCG PROPERTIES, LLC(NIKKI AND KRAIG KIEFER) LOT SIZE 0.5 ACRES (21,779 SQUARE FEET) ZONING C3 GENERAL COMMERCIAL $ PER SQ FT $10.00 VERIFICATION PUBLIC RECORDS, OBSERVED TRAFFIC COUNTS NOT COUNTED ON HOLLIDAY DRIVE, BUT 16,700 DAILY IN 2013 ALONG NW ARTERIAL ASSESSOR 10-20-279-015, ASSESSED $198,250 IN 2014 AND 2015. COMMENTS SPLIT PART OF LARGER PARCEL, SOLD TO ADJOINING PROPERTY OWNER THAT PURCHASED ADJOINING (2065 HOLLIDAY) SITE IN 2012 AND BUILT OFFICE(SEDONA STAFFING EMPLOYMENT)AND LEASED BACK TO THEMSELVES. Felderman Appraisals, I bvq.,Iowa LAND COMPARABLE # 16 ADDRESS 2350 MEINEN COURT, DUBUQUE, IA SALE PRICE $185,000 SALE DATE 12/22/2015, CLOSED 12/31/2015, MLS 127180 LEGAL LOT 3 HARVEST BUSINESS CENTER DOCUMENT 2016-165 SELLER KERKEL RHEAULT RE LLC BUYER FIDELITY COMPANY LOT SIZE 0.85 ACRES (37,148 SQUARE FEET) ZONING C2 NEIGHBORHOOD $ PER SQ FT $4.98 ($216,932 PER ACRE) VERIFICATION PUBLIC RECORDS,ASSESSOR, BROKER TRAFFIC COUNTS LOW, VISIBLE FROM ASBURY ROAD ASSESSOR 10-16-377-011, ASSESSED $172,201 IN 2014 TIME OF SALE, 2015 AT $192,875. COMMENTS LISTED FOR SALE ON LOCAL MLS 2/6/2015, $200,000 ORIGINALLY, $198,000 AT SALE, 319 DAYS ON MARKET. SOLD 8/29/2003 FOR $131,950 OR$3.55 PER SQUARE FOOT, INCREASE IN VALUE $53,050 OVER 148 MONTHS OR 3.26% INCREASE IN VALUE PER YEAR. PURCHASED BY ADJOINING(ACROSS THE STREET) BANK PROPERTY OWNER THAT HAD BOUGHT A 43,081 SQUARE FOOT LOT IN 2008 FOR $150,000 AND CONSTRUCTED A BANK BUILDING. Felder.an Appraisals, I bvq.,Iowa LAND COMPARABLE # 17 1 ADDRESS ROCKDALE ROAD, DUBUQUE, IA SALE PRICE $374,000 SALE DATE 3/30/2016 LEGAL LOT K KEY GATE CENTER NO 3, DUBUQUE DOCUMENT 2016-3423 SELLER KEHL FAMILY LIMITED PARTNERSHIP BUYER MILLER COMPANIES LLC LOT SIZE 145,926 SQUARE FEET (3.35-ACRES) ZONING C3 GENERAL COMMERCIAL $ PER SQ FT $2.56 VERIFICATION PUBLIC RECORDS,ASSESSOR AND RECORDER TRAFFIC COUNTS LOW ASSESSORS 15-01-330-013,ASSESSED VALUE $378,986. COMMENTS SELLER SOLD ON OWN,AND IT TOOK SEVERAL YEARS. PRICE APPEARS BELOW MARKET. Felder.an Appraisals, I bvq.,Iowa LAND COMPARABLE # 18 w + ADDRESS PLAZA DRIVE OFF NORTHWEST ARTERIAL, DUBUQUE, IA SALE PRICE $1,210,750 SALE DATE 4/12/2016 LEGAL LOT 1 ASBURY PLAZA#18, DUBUQUE DOCUMENT 2016-4008 SELLER RUBY-04-ASBURY-LAND LLC BUYER FURNITURE MART USA INC. LOT SIZE 142,451 SQUARE FEET (3.27-ACRES) ZONING PC PLANNED COMMERCIAL $ PER SQ FT $8.05 VERIFICATION PUBLIC RECORDS,ASSESSOR AND RECORDER TRAFFIC COUNTS LOW, OVER 15,000 ALONG HIGHWAY ASSESSORS 10-17-151-031,ASSESSED VALUE $356,960 COMMENTS AREA HAS SEEN NEW DEVELOPMENT IN FAST FOOD, BANK, LARGE DEPARTMENT STORE AND STRIP CENTER. PURCHASED FOR FUTURE CONSTRUCTION WITH VISIBILITY FROM MAJOR ARTERIAL, BUT NO FRONTAGE ALONG THE HIGHWAY. Felder.an Appraisals, I bvq.,Iowa BUILDING SALE # 1 PROPERTY TYPE COMMERCIAL GROCERY STORE ADDRESS 1800 ELM STREET, DUBUQUE, IOWA SALE PRICE $1,200,000 CONVENTIONAL LOAN WITH 50% DOWN SALE DATE 5/24/2011 DOCUMENT # 11-9010 GRANTOR/SELLER JACOBSON'S INC. (JOHN SHULAN) GRANTEE/BUYER PTC LLC (PETER T. CLARKE) BLDG. SIZE 26,902 SQUARE FOOT # OF STORIES ONE STORY, BLOCK DATE BUILT 1955, UPDATED 1986 LOT SIZE 78,100 SQUARE FEET LAND/BLDG. RATIO 2.9 TO 1 UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING C2 NEIGHBORHOOD COMMERCIAL DISTRICT USE AT SALE GROCERY STORE TRAFFIC COUNTS APPROXIMATELY 3,000 TO 7,500 DAILY USING MOST CURRENT COUNTS $ PER SQUARE FOOT $44.61 O.A.R. N/A VERIFIED PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER COMMENTS ASSESSOR 10-24-277-001, 001 AND 003 ($983,900 ASSESSED VALUE 2011). ONE OVERHEAD DOOR, TWO CANOPIES, APPROXIMATELY 40,000 SQUARE FEET OF PAVING, LONG-TERM TENANT BUT LEASE INFO NOT SHARED. CITY HAD EASEMENT FOR OWNER USE OF LOADING DOCK AND GAS METER. FELDERMAN APPRAISED PREVIOUSLY. Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 2 PROPERTY TYPE COMMERCIAL ADDRESS 3049 ASBURY ROAD, DUBUQUE, IOWA SALE PRICE $600,000 SALE DATE 6/30/2011 DOCUMENT# 11-9327 GRANTOR/SELLER HEINZ HOLDINGS LLC GRANTEE/BUYER LYNN SIEGERT BUILDING LLC BLDG. SIZE 10,433 SQUARE FOOT # OF STORIES SINGLE LEVEL, NO BASEMENT DATE BUILT 1969 LOT SIZE 37,462 SQUARE FEET LAND/BLDG. RATIO 3.59 TO 1 UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING C2 NEIGHBORHOOD COMMERCIAL DISTRICT USE AT SALE CANDY AND ICE CREAM RETAIL STORE TRAFFIC COUNTS 9,000 TO 10,500 DAILY USING MOST CURRENT COUNTS $ PER SQUARE FOOT $57.51 O.A.R. N/A VERIFIED PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER COMMENTS ASSESSOR 10-22-180-001, 2011 ASSESSED VALUES $558,240, LOADING DOCK, FRONT PATIO, SPRINKLER SYSTEM, AND APPROXIMATELY 10,000 SQUARE FEET OF ASPHALT PARKING. BUILDING WAS USED FOR MAKING OF CANDY AND ICE CREAM AS WELL RETAIL AND DISTRIBUTION. Felderman Appraisals,Dubuque,Iowa BUILDING SALE #3 PROPERTY TYPE COMMERCIAL ADDRESS 2254 FLINT HILL DRIVE, DUBUQUE, IOWA SALE PRICE $281,000 SALE DATE 9/22/2011 DOCUMENT# 11-13968 GRANTOR/SELLER BIG RIVER INC. GRANTEE/BUYER KEY WEST HOLDINGS LLC BLDG. SIZE 3,106 SQUARE FOOT # OF STORIES ONE STORY, BRICK DATE BUILT 1997 LOT SIZE 22,651 SQUARE FEET LAND/BLDG. RATIO 7.3 TO 1 ZONING C3 GENERAL COMMERCIAL USE AT SALE OFFICE, RETAIL ALLOWED TRAFFIC COUNTS MINIMAL ALONG STREET, NOT COUNTED, BUT NST OFF HIGHWAY 61/151/52 WITH 15,000 TO 20,000 DAILY USING MOST CURRENT COUNTS $ PER SQUARE FOOT $90.47 O.A.R. 8.7% VERIFIED PUBLIC RECORDS, ASSESSOR AND RECORDER, SELLER/BUYER COMMENTS ASSESSOR 15-01-451-003 ($292,530 ASSESSED VALUE 2011). ONLY 1/3 OCCUPIED, RENTED AT $10 PER SQUARE FOOT NET, AND THEY WERE THE PURCHASERS. OTHER SPACE HAD BEEN VACANT FOR A YEAR AND WAS ASKING $9 PER SQUARE FOOT, WITH OFFERS OF $8 PER SQUARE FOOT OR TO PURCHASE, WHICH GENERATED THE TENANTS FIRST RIGHT OF REFUSAL TO PURCHASE. EXPENSES ESTIMATED. Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 4 PROPERTY TYPE COMMERCIAL SERVICE ADDRESS, CITY, ZIP 1095 CEDAR CROSS ROAD, DUBUQUE, IOWA 52003 COUNTY DUBUQUE SALE PRICE $533,000 SALE DATE 4/2/2013 CLOSED, SOLD 3/19/2013 (928 DAYS ON MARKET) DOCUMENT# 2013-5768, DMLS 117161 (LISTED $799,000 ORIGINALLY) GRANTOR/SELLER PAR FIVE LLP (KIEFER, MCGHEE, MULLEN) GRANTEE/BUYER CLARKE UNIVERSITY OF DUBUQUE INC. GROSS BLDG. SIZE 14,400 SQUARE FOOT # OF STORIES ONE (1) STORY, WITH NO BASEMENT, 18'+ CEILING YEAR BUILT 1995 EXTERIOR/ROOF STEEL FRAME, METAL SIDING AND ROOF, INSULATED FINISH/CONDITION MINIMAL SQ. FT. OFFICE, WAS SPORTS CENTER MECHANICALS HVAC 100% LOT SIZE 105,851 SQUARE FEET LAND/BLDG. RATIO 7.35 TO 1 (MAIN LEVEL) PARKING LOT/#/RATIO PAVED ASPHALT, APPROXIMATELY 20,640 SQ. FT. UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING C3 COMMERCIAL USE AT SALE VACANT TRAFFIC COUNTS 9,000 TO 10,500 DAILY USING CURRENT COUNTS $ PER SQUARE FOOT $37.01 O. A. R. VACANT SINCE 2010 TENANTS N/A VERIFIED PUBLIC RECORDS, BROKER, COSTAR ASSESSOR# 10-34-401-004, $537,570 (2012), $24,984 (2011) COMMENTS PURCHASED FOR OWNER OCCUPIED BUSINESS USE. ORIGINALLY LISTED FOR $799,000 WITH FINAL LIST PRICE AT $619,000 OR 86% SALE OF LIST PRICE, 916 DAYS ON THE MARKET. CONSTRUCTION MORE CONDUCIVE TO COMMERCIAL SERVICE USES AND IS SIMILAR TO MAJORITY OF BUILDINGS IN THE IMMEDIATE AREA. BUYER PLANS TO USE FOR INDOOR SPORTS TRAINING AND POSSIBLE BUILD-OUT IN FUTURE. $10,000 OF DEFERRED MAINTENANCE AT TIME OF SALE (INTERIOR AND UTILITY WORK). Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 5 PROPERTY TYPE COMMERCIAL SERVICE ADDRESS, CITY, ZIP 1074 CEDAR CROSS ROAD, DUBUQUE, IOWA 52003 COUNTY DUBUQUE SALE PRICE $547,500 (LEASED FEE INTEREST) SALE DATE 4/12/2013 CLOSED, SOLD 2/28/13 (21 DAYS ON MARKET) DOCUMENT # 2013-6446, DMLS 122876 GRANTOR/SELLER DOWNING RENTALS LLC GRANTEE/BUYER DEAN RYAN INVESTMENTS, LLC GROSS BLDG. SIZE 8,400 SQUARE FOOT # OF STORIES SINGLE LEVEL, NO BASEMENT, 14'+ CEILING YEAR BUILT 2008 EXTERIOR/ROOF WOOD FRAME, METAL AND PERMA-STONE SIDING AND ROOF, INSULATED FINISH/CONDITION MINIMAL SQ. FT. OFFICE, RESTROOMS MECHANICALS HVAC 100%, LOAD DOCK, THREE OVERHEAD DOORS LOT SIZE 28,314 SQUARE FEET LAND/BLDG. RATIO 3.37 TO 1 (MAIN LEVEL) PARKING LOT/#/RATIO PAVED CONCRETE, APPROXIMATELY 9,885 SQ. FT. UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING CS COMMERCIAL SERVICE USE AT SALE TENANT IN 6,300 SQ.FT. AT $4,600 PER MONTH, 6 YEARS TRAFFIC COUNT 10,500 BASED ON MOST CURRENT MAPS $ PER SQUARE FOOT $65.18 O. A. R. 9.6% ($52,578 NET, OWNER PAID TAXES, INSURANCE) TENANTS FASTENAL, WITH 2,100 SQ.FT. AVAILABLE AT $1,000 PER MONTH VERIFIED PUBLIC RECORDS, BROKER ASSESSOR# 10-34-251-025, $389,900 (2012) COMMENTS PURCHASED FOR INVESTMENT. ORIGINALLY LISTED FOR $579,000 OR 95% SALE OF LIST PRICE. TENANT HAD 6 YEARS REMAINING ON LEASE. SIMILAR TO MAJORITY OF BUILDINGS IN THE IMMEDIATE AREA. Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 6 PROPERTY TYPE COMMERCIAL SERVICE WAREHOUSE & DISTRIBUTION ADDRESS, CITY, ZIP 155 N. CRESCENT RIDGE, DUBUQUE, IOWA 52002 COUNTY DUBUQUE SALE PRICE $1,075,000 $1,000,000 SALE DATE 8/28/2013 12/27/2010 DOCUMENT# 13-14358 10-21870 GRANTOR/SELLER FALEY PROPERTIES INC. FALEY FAMILY REALTY COMPANY, LLC GRANTEE/BUYER TERRY HARRIS, HARRIS FALEY PROPERTIES, INC. REAL ESTATES II, LLC GROSS BLDG. SIZE 26,880 SQUARE FOOT # OF STORIES ONE (1) STORY, WITH NO BASEMENT YEAR BUILT 1992 EXTERIOR/ROOF STEEL FRAME, STEEL SIDING/GABLE ROOF FINISH/CONDITION 25% (7,360 SQ. FT) OFFICE, GOOD CONDITION MECHANICALS HVAC, 5 OVERHEAD DOORS, LOAD DOCKS, 22' CEILING LOT SIZE 135,036 SQUARE FEET LAND/BLDG. RATIO 5.02 TO 1 PARKING LOT/#/RATIO PAVED ASPHALT 24,000 SQ. FT. /50 VEHICLES UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING COMMERCIAL SERVICE DISTRICT USE AT SALE VACANT, FORMER USE WAS OWNER BUSINESS OCCUPIED AUTO PARTS DISTRIBUTION WAREHOUSE TRAFFIC COUNTS MINIMAL, NOT COUNTED, BUT BLOCK OFF HIGHWAY 20/DODGE STREET WITH 22,000 TO 37,000 DAILY USING MORE CURRENT COUNTS $ PER SQUARE FOOT $39.99 $37.20 O. A. R. VACANT OWNER OCCUPIED TENANTS VACANT, ASKING OWNER OCCUPIED VERIFIED SELLER, PUBLIC RECORDS (WAS LISTED AT $1,525,000 FOR 168 DOM, THEN $1,295,000 FOR 299 DOM), BROKER, COSTAR ASSESSOR# 1028326001; $1,003,100 (2010) AND $1,023,160 (2013), $35,116. 2014 ASSESSED VALUE AT $862,140 WITH NET TAXES OF $34,498 (2012) COMMENTS PREVIOUSLY OBSERVED DURING APPRAISAL MORE THAN 10 YEARS PRIOR. 2010 WAS FAMILY SALE, 2013 FOR GOLF CART BUSINESS. Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 7 PROPERTY TYPE COMMERCIAL SERVICE/INDUSTRIAL ADDRESS, CITY, ZIP 80 MAIN STREET, DUBUQUE, IOWA 52001 COUNTY DUBUQUE SALE PRICE $127,500 SALE DATE 4/1/2014 DOCUMENT# 2014-3136 GRANTOR/SELLER ROGER MURRAY GRANTEE/BUYER CLANCY PROPERTIES, LLC GROSS BLDG. SIZE 2,889 SQUARE FOOT # OF STORIES ONE (1) STORY, WITH NO BASEMENT YEAR BUILT 1900 EXTERIOR/ROOF BRICK W/SHARED WALLS FLAT RUBBER MEMBRANE ROOF FINISH/CONDITION UNFINISHED, AVERAGE CONDITION MECHANICALS SPACE HEATER FOR SHOP, ONE 10'X11' OVERHEAD DOOR, NO LOADING DOCKS LOT SIZE 3,051 SQUARE FEET LAND/BLDG. RATIO 1 TO 1 PARKING LOT/#/RATIO NONE UTILITIES AVAILABLE ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING C-4 DOWNTOWN COMMERCIAL DISTRICT USE AT SALE WAREHOUSE TRAFFIC COUNT MINIMAL $ PER SQUARE FOOT $44.13 O. A. R. VACATED AT SALE TENANTS NONE VERIFIED PUBLIC RECORDS ASSESSOR# 10-25-290-003, ASSESSED 2014 FOR $87,470, 2013 AT $95,731 AND 2012 AT $88,640. COMMENTS LOCATED IN COMMERCIAL AREA THAT TRANSITIONED FROM INDUSTRIAL IN 1990'S WITH HIGHWAY EXPANSION, BUT BUILDING IS AN INDUSTRIAL BUILDING DESIGN. Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 8 PROPERTY TYPE COMMERCIAL SERVICE ADDRESS, CITY, ZIP 4975 RADFORD COURT, DUBUQUE, IOWA COUNTY DUBUQUE SALE PRICE $400,000 (LEASED FEE INTEREST) SALE DATE 5/2/2014 DOCUMENT # 2014-004698 GRANTOR/SELLER WESTSIDE GLASS, INC. GRANTEE/BUYER KRK PROPERTIES OF DUBUQUE LLC GROSS BLDG. SIZE 8,280 SQUARE FOOT # OF STORIES ONE (1) STORY, WITH NO BASEMENT YEAR BUILT 1999 EXTERIOR/ROOF STEEL W/16' HEIGHT SIDE & 20' CENTER, STEEL GABLE ROOF FINISH/CONDITION OFFICE/SHOWROOM OF 22%, 1,822 SQ. FT., AVERAGE CONDITION MECHANICALS HVAC FOR OFFICE, SPACE HEATER FOR SHOP, TWO OVERHEAD DOORS, NO LOADING DOCKS LOT SIZE 44,997 SQUARE FEET LAND/BLDG. RATIO 5.4 TO 1 PARKING LOT/#/RATIO PAVED ASPHALT 21,000 SQUARE FEET UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING C-2 NEIGHBORHOOD COMMERCIAL DISTRICT USE AT SALE WAREHOUSE SHOP AND OFFICE/SHOWROOM TRAFFIC COUNT MINIMAL, NOT COUNTED $ PER SQUARE FOOT $48.31 O. A. R. PART OWNER OCCUPIED, PART TENANT, BOTH VACATED AT SALE TENANTS WESTSIDE GLASS (OWNER) AND SIGNS ON TIME) VERIFIED PUBLIC RECORDS ASSESSOR# 10-20-406-039 (ASSESSED $368,320 IN 2014, TAXES $12,840) COMMENTS LOCATED IN COMMERCIAL AREA, BUT IS INDUSTRIAL BUILDING DESIGN. LISTED FOR LEASE DMLS 125592 (5/5/2014 TO 2/2/2015, EXPIRED) AT $6.50 PER SQUARE FOOT FOR 5,372 SQ FT AND 2900 SQ FT ON TRIPLE NET LEASE AND $1.50 PER SQUARE FOOT FOR NNN COSTS. Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 9 PROPERTY TYPE COMMERCIAL ADDRESS, CITY, ZIP 3033 ASBURY ROAD, DUBUQUE, IOWA COUNTY DUBUQUE SALE PRICE $900,000 (LEASED FEE INTEREST) SALE DATE 7/15/2014, CLOSED 9/17/2014 DOCUMENT # 2014-10467, DMLS 124969 GRANTOR/SELLER JACOBSON BROTHERS INC GRANTEE/BUYER OLD EAGLE ASBURY DEVELOPMENT LLC GROSS BLDG. SIZE 18,876 SQUARE FOOT # OF STORIES ONE (1) STORY, WITH NO BASEMENT YEAR BUILT 1960 EXTERIOR/ROOF CONCRETE BLOCK FRAME, FLAT RUBBER ROOF, 12' HEIGHT FINISH/CONDITION STANDARD TO BELOW STANDARD CONDITION MECHANICALS HVAC FOR ENTIRE BUILDING, INSULATED, LOT SIZE 97,095 SQUARE FEET LAND/BLDG. RATIO 5.14 TO 1 PARKING LOT/#/RATIO PAVED SQUARE FEET AND YARD LIGHTS UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING C-2 NEIGHBORHOOD COMMERCIAL DISTRICT USE AT SALE RETAIL AND OFFICES TRAFFIC COUNT 9000 - 10000 DAILY $ PER SQUARE FOOT $47.68 O. A. R. 9.04% (ACTUAL $81,391.73, WITHOUT MANAGEMENT OR RESERVES) TENANTS MEDIACOM, PLANE ART, HAHN'S VERIFIED PUBLIC RECORDS, SELLER AND BUYER ASSESSOR 10-22-180-005, ASSESSED AT $794,100 TIME OF SALE COMMENTS LISTED AT $1,200,000, PRIOR TO FINDING $150,000 OF WORK TO BE DONE. HAD PRIOR OFFER OF $1,000,000, BUT WALKED UPON FINDING THE WORK. SELLER COMPLETED WORK AND THEN RECEIVED AND ACCEPTED OFFER OF $900,000. 174 DAYS ON THE MARKET. Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 10 PROPERTY TYPE COMMERCIAL SERVICE ADDRESS, CITY, ZIP 3110 CEDAR CROSS COURT, DUBUQUE, IA 52001 COUNTY DUBUQUE SALE PRICE $400,000 (LEASED FEE INTEREST) SALE DATE 9/3/2014 DOCUMENT# 2014-9837 (MLS 119949, LISTED $450,000, 10/18/2011) GRANTOR/SELLER GEORGE, CATHERINE GRANTEE/BUYER KONZEN, CHRISTOPHER P. GROSS BLDG. SIZE 9,590 SQUARE FOOT # OF STORIES ONE (1) STORY, WITH NO BASEMENT, 12'+ SIDE WALL HEIGHT YEAR BUILT 1989 AND 1990 EXTERIOR/ROOF STEEL FRAME, METAL SIDING AND ROOF, INSULATED FINISH/CONDITION OFFICE 688 SQ FT(7%), INTERIOR METAL WALL LINER MECHANICALS BASEBOARD HEAT IN OFFICE, CEILING HUNG GAS SPACE HEAT FOR SHOP, TWO OVERHEAD DOORS IN ORIGINAL BUILDING, ONE OVERHEAD DOOR AND ONE TRUCK DOCK IN 1990 BUILDING LOT SIZE 28,799 SQUARE FEET LAND/BLDG. RATIO 3.00 TO 1 (32% SITE COVERAGE) PARKING LOT/#/RATIO PAVED ASPHALT, APPROXIMATELY 9,000 SQ. FT. UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING C3 GENERAL COMMERCIAL USE AT SALE SHOP TRAFFIC COUNTS LOW $ PER SQUARE FOOT $41.71 O. A. R. NOT SHARED TENANTS KONZEN LEASED SINCE 2/1/2012, HAD OPTION TO PURCHASE VERIFIED PUBLIC RECORDS, ASSESSOR, BROKER BEA BESINIUS ASSESSOR# 10-34-142-046; 2014 ASSESSED $263,240 (2014), $259,670 (2015) COMMENTS NEW ROOFS IN 2011, BROKER LISTED AT $450,000, INDICATED NO SELLER CONCESSIONS, BUYER WAS TENANT, 92 DAYS ON THE MARKET. IN OCTOBER 2014, THE PROPERTY WAS RELISTED FOR SALE IN MLS 126628 AT $580,000 AND REDUCED TO $565,000 APRIL 2015. INFO SAYS OVER $150,000 OF IMPROVEMENTS SINCE 2014 SALE. Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 11 PROPERTY TYPE COMMERCIAL SERVICE ADDRESS, CITY, ZIP 3170 CEDAR CREST RIDGE (HUGHES CT), DUBUQUE, IOWA 52003 COUNTY DUBUQUE SALE PRICE $590,000 SALE DATE 10/17/2014 DOCUMENT # 2014-11885 GRANTOR/SELLER PERRY INVESTMENT (JOHN PERRY) GRANTEE/BUYER MANDERS, JEFFREY AND DAWN GROSS BLDG. SIZE 11,232 SQUARE FOOT PLUS 1,156 SQUARE FOOT GARAGE ADDITION # OF STORIES ONE (1) STORY, WITH NO BASEMENT, 20'+ HEIGHT YEAR BUILT 1987 AND 2003 EXTERIOR/ROOF STEEL FRAME, METAL SIDING AND ROOF, INSULATED FINISH/CONDITION MINIMAL SQ. FT. OFFICE 1,264 SQ FT (11%), INTERIOR METAL WALLS MECHANICALS HVAC 100% OFFICE, CEILING HUNG GAS SPACE HEAT FOR SHOP, SEVEN OVERHEAD DOORS (ONE WITH TRUCK WELL FOR DOCK), 400 AMP 3 PHASE ELECTRICAL LOT SIZE 104,108 SQUARE FEET LAND/BLDG. RATIO 9.27 TO 1 (11% SITE COVERAGE) PARKING LOT/#/RATIO PAVED ASPHALT, APPROXIMATELY 15,600 SQ. FT. UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING CS COMMERCIAL SERVICE USE AT SALE COMMERCIAL SERVICE SHOP TRAFFIC COUNTS MINIMAL, NOT COUNTED, BLOCK AWAY FROM 9,100 PER DAY $PER SQUARE FOOT $52.53 (USING TOTAL INCLUDING GARAGE IS 12,388 SQ FT OR $47.63) O. A. R. N/A TENANTS RUNDE UPHOLSTERY VERIFIED PUBLIC RECORDS, COSTAR ID 5884334 ASSESSOR# 10-34-401-020, $490,290 (2014/2015), $426,708 (2013), $389,030 (2012) COMMENTS USABLE LAND IS APPROXIMATELY HALF OF THE LOT (STEEP AND WOODED). NOT LISTED FOR SALE WITH DMLS. AS OF 4/1/2015, LISTED FOR LEASE AT $6.50 PER SQUARE FOOT FOR 5,712 SQUARE FEET WITH TWO OH DOORS AND ONE DOCK, SMALL OFFICE AND RESTROOM Felderman Appraisals,Dubuque,Iowa BUILDING SALE # 12 PROPERTY TYPE INDUSTRIAL(REZONED TO PLANNED COMMERCIAL) ADDRESS, CITY, ZIP 340 E. 12' STREET, DUBUQUE, IOWA 52001 COUNTY DUBUQUE SALE PRICE $640,000 SALE DATE 4/3/2015 DOCUMENT # 2015-4876 GRANTOR/SELLER GEISLER FAMILY REALTY COMPANY LLC GRANTEE/BUYER JD&C, LLC GROSS BLDG. SIZE 20,420 SQUARE FOOT WITH MEZZANINE OF 3,248 SQUARE FEET FOR GROSS SPACE OF 23,668 SQUARE FEET # OF STORIES ONE (1) STORY, WITH NO BASEMENT, 14 FOOT HEIGHT YEAR BUILT 1975, 1988 EXTERIOR/ROOF CONCRETE BLOCK, SLOPING ROOF FINISH/CONDITION INDUSTRIAL SHOP WITH OFFICE 1808 SQUARE FEET(9% OF MAIN) MECHANICALS HVAC IN OFFICE, GAS SPACE IN SHOP, 3 OVERHEAD DOORS ALONG EXTERIOR AND 3 INTERIOR, ALARM SYSTEM, LOT SIZE 33,300 SQUARE FEET LAND/BLDG. RATIO 1.63 TO 1 (27%) PARKING LOT/#/RATIO PAVED 5,100 SQUARE FEET ASPHALT, WITH 15+ SPACES MARKED UTILITIES ELECT, GAS, PUBLIC WATER& SEWER, PHONE, CABLE EASEMENTS TYPICAL UTILITY ENVIRONMENTAL NONE KNOWN ZONING WAS HEAVY INDUSTRIAL UNTIL 2010, PC PLANNED COMMERCIAL AS PART OF THE OVERALL MILLWORK DISTRICT USE AT SALE WAREHOUSE TRAFFIC COUNTS LOW 2100 ALONG 12' STREET $PER SQUARE FOOT $31.34 (MAIN ONLY), $27.00 (GROSS INCLUDING MEZZANINE) O. A. R. N/A TENANTS OWNER OCCUPIED VERIFIED PUBLIC RECORDS, SELLER, BUYER, ASSESSOR# 10-24-441-001 & 007, ASSESSED $354,530 COMMENTS NOT LISTED FOR SALE WITH DUBUQUE MLS. PURCHASED FOR REMODEL INTO COMMERCIAL GYM WITH EXPANDING MILLWORK DISTRICT IMPROVEMENTS AND CUSTOMER BASE. R. J. FELDERMAN COMPLETED APPRAISAL IN 2014 AND 2015, WITH NO CONFIDENTIAL INFORMATION SHARED, BUT SOLD UNDER MARKET VALUE AS IMPROVED, DUE TO SELLER HAVING ALREADY PURCHASED BUILDING AND NEEDED TO SALE FOR FINANCING. CITY OF DUBUQUE HAD OFFERED TO PURCHASE FOR LAND USE ONLY. Felderman Appraisals,Dubuque,Iowa PHOTOGRAPHS OF COMPARABLES #1 - � ft= #2 No G #7 #8 i #9 _ #10 #11 #12 FeNervnan Appraisals,Dubuque,Zowa ♦ • Street Atlas USAOO 2008 i 1 sz 1" 1 i no SONS�� \ Se6SONS g rc \F,n[b Spumy t Qy0'1, N p // RO�OSEVE�LT's{ly (' Y °! �j RY34 24 a � CR Y14\ f� ° Y 52 F W 32ND ST 2AM1�\� B( 90 ` � Nd A6yUry As, �" HAUFMANN qVE-� �J� � 18M Elm 5t S� 30a9Aibury Rtl — 9yf 4: Oy!$RNhNCE ,... 19Sg0 � WSDgf 310E 1hF 9. 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Scale 1 43 750 2007 DeLoone.StreetAtlas USA@ 2003. vN deloonecom 11 e 1"-3,04531[ DataZoom12-2 ADDENDUM E QUALIFICATIONS OF APPRAISAL FIRM QUALIFICATIONS OF APPRAISAL FIRM CLIENTS QUALIFICATIONS OF APPRAISER COPY OF APPRAISER STATE LICENSES Felderman Appraisals,Dubuque,Iowa FELDERMANAPPRAISALS COMPANYPROFILE Felderman Appraisals is a full-service commercial and residential real estate appraisal, appraisal review, market analysis, brokerage, and investment advisory firm based in the Tri-State area of Iowa, Illinois and Wisconsin since 1975. Our appraisers of the organization have a comprehensive background in real estate, business, economics, finance, management, aviation, and construction. Appraisers in the firm are State Certified Real Property Appraisers and associate appraisers are trainees; John L. Felderman, Iowa and Illinois Appraiser, and Iowa Real Estate Broker Associate Robert J. Felderman, Iowa, Wisconsin and Illinois Appraiser, and Iowa Real Estate Broker Timothy A. Gosche, Iowa, Associate Appraiser Felderman Appraisals provide the following assignment types; Appraisals (full/fractional Rent Studies Disposition interests) Reviews of Appraisals Eminent Domain Construction Progress Rezoning Consultation Estate Taxes Inspections Portfolio Analysis Financing Feasibility Studies Site Selection Acquisition Foreclosure Highest and Best Use Studies Acquisition Investment Analysis Market Studies Litigation/Negotiation Lease Renewal Project Management Assessment Appeal Arbitration Felderman Appraisals has experience in these appraisal and advisory property types; Agricultural properties Fast food facilities Parking facilities Aviation(air and subsurface Freight warehouses Quarries rights) Funeral Homes Recreational facilities Airport and hangars (Private) Garages Renovated facility projects Animal Hospitals Gasoline/service station Residential all types Apartments Golf Courses/Clubs Restaurants Antenna Towers Government buildings Religious facilities Assisted Living facilities Gymnasiums Retail buildings Auto sales/service centers Historical Restorations River oriented industrial Bank Buildings, Hotels and Motels Schools Bed and Breakfast Inns Hospitals Self-Storage Bowling Centers Industrial Senior Living facilities Breweries Leased land Shopping Centers Campgrounds Lumber company facilities Special purpose facilities, Car Washes Manufacturing facilities Storage Warehousing Colleges Marinas Subdivision projects Community Centers Medical Offices Clinics Supermarkets Condominium units Military Armories Taverns, Bars, Lounges Convenience stores Mobile Home Parks Truck Stop facilities Day Care Centers Motorcycle facilities Truck Terminal facilities Discounts stores Movie Theaters University facilities Distribution Warehouses New construction Urban land Dog Day Care Centers Nursing Home facilities Warehouse Dormitories Office buildings Wharfage Education facilities Office-warehouse properties Worship facilities Felderman Appraisals,Dubuque,Iowa CLIENT REFERENCE LIST Alcoa Credit Union, Bettendorf, Iowa American Trust and Savings Bank, Dubuque, Iowa Associates Intergroup Management Company, Dallas, Texas Brenton First National Bank, Davenport, Iowa Buchanon County, Independence, Iowa Carlisle Graphics, Dubuque, Iowa City of Dubuque, Independence, & Maquoketa, Iowa City of East Dubuque, Illinois Clinton County Assessor, Clinton, Iowa Coldwell Banker Mortgage Services, Inc., Overland Park, Kansas Crawford, Miller, & Taylor, Inc. Springfield, Illinois John Deere& Company, Dubuque, Iowa Design Center Associates (Historic Restoration), Dubuque, Iowa Dubuque Bank and Trust Company, Dubuque, Iowa Dubuque City Assessor, Dubuque, Iowa Dubuque Initiatives, Dubuque, Iowa Dupaco Community Credit Union, Dubuque, Iowa Dutrac Community Credit Union, Dubuque, Iowa East Central Inter-governmental Agency, State of Iowa East Dubuque Savings Bank, East Dubuque, Illinois Federal Deposit Insurance Corporation (FDIC), Des Moines, Iowa Fidelity Bank and Trust, Dubuque, Iowa Fischer Companies, Dubuque, Iowa Home Equity Relocation, Oakbrook, Illinois Iowa Department of Transportation, Ames, Iowa Jackson County Assessors Office, Maquoketa, Iowa Kretschmer- Tredway Company, Dubuque, Iowa Law Firm Clemens, Walters, Conlon, & Meyer, Dubuque, Iowa Law Firm Fuerste, Carew, Juergens, & Sudmeier, Dubuque, Iowa Law Firm Hughes, Trannel, and Jacobs, Dubuque, Iowa Law Firm, Tom Jenk, P.C. Dyersville, Iowa Law Firm Kintzinger, Van Ellen, Setter, Pearce& Scott, Dubuque, IA Law Firm, O'Connor and Thomas, Dubuque, Iowa Liberty Bank(now owned by Dubuque Bank& Trust), Dubuque, Iowa Morrison Brothers, Dubuque, Iowa Mound City Bank, Platteville, Wisconsin Northeast Iowa Community College, Dubuque, Iowa Premier Bank, Dubuque, Iowa St. Lukes United Methodist Church, Dubuque, Iowa Spahn and Rose Lumber Company, Dubuque, Iowa State Central Bank, Dubuque, Iowa The National Bank, Davenport, Iowa White Truck Company of Iowa U.S. Bank, Iowa, Illinois and Wisconsin United States Postal Service, Kansas City, KS Wartburg Seminary, Dubuque, Iowa Felderman Appraisals,Dubuque,Iowa QUALIFICATIONS OF ROBERT J. FELDERMAN EDUCATION National Defense University, Master of Science Degree, National Security Strategy, 2001 Georgetown University, Government Affairs Institute Certificate Legislative Affairs, 2000 University of Dubuque, B.S. Degree, Management, 1988 Appraisal and Real Estate education synopsis (see next page for additional and recent courses) Uniform Standards for Professional Appraisal Practice (USPAP National), Appraisal Institute Principles,Farm and Land Appraisals, Commercial Investment Appraisals,Industrial Appraisals,Appraisal Report Writing, Review Appraisals, Standards and Ethics, Environmental Site Assessments, Principles of Property Inspections,Principles of Business Appraisals, Standards of Professional Appraisal Practice,Market Analysis and Highest&Best Use,LAD Appraisals,Relocation Appraisals,FHA Appraisals, Appraising for Secondary Market, Appraisal Income Capitalization, Appraisal Institute Business Practices and Ethics, Manufactured and Factory-built Housing, Information Technology, Real Estate Math, Eminent Domain Appraisals, Property Inspections, Appraisal Institute Finance Statistics & Valuation Modeling, Appraisal Institute International Finance and Standards Reporting, Advanced Income Capitalization, PROFESSIONAL AND TRADE AFFILIATIONS AND DESIGNATIONS State of Iowa Certified General Real Property Appraiser, CG01134 State of Wisconsin Certified General Real Property Appraiser, 0766-010 State of Illinois Certified General Real Estate Appraiser, 553.002107 Licensed Real Estate Broker, State of Iowa, B23987000 Certified Real Estate Appraiser since 1984, Certified General Real Property Appraiser since 1992 Realtor/Broker, Dubuque Board of Realtors, Dubuque, Iowa, since 1984 FHA Appraiser, approved since 1992 in Iowa, 1996 in Wisconsin, 2011 in Illinois Appraiser, National Association of Realtors Appraiser Section since 1993 Environmental Site Assessor, Nat'l Assoc. Environmental Consultants, 1993 to 1997 Real Property Inspector, 1995 to 2005, Certified Candidate Member for MAI, Appraisal Institute, since 2013 BUSINESS EXPERIENCE Residential, Farm, Land, Commercial, Industrial & Specialized Property Appraiser since 1984 Real Estate Expert Witness for Court Testimony and Litigation since 1985 Key Note Speaker for Real Estate and Appraisal Organizations since 1987 Real Estate & Appraisal Instructor, 1992 to 2005 Appraisal Reviewer for financial institutions and government entities since 1988 Appraisal Reviewer for the Iowa Real Estate Appraisal Board, 2001 to 2005 Environmental Stewardship Commission(first appointee & Chairperson), Dubuque, Iowa National Education Center for AG Safety Advisor, Peosta, Iowa, 1990 to 2005 Thirty-five+years U.S. military, Brigadier General, US Army (Retired), 10+years on active duty Desert Shield and Desert Storm Service for operations in Continental U.S., 1990 to 1991 Global War on Terrorism Service, Contingency Operations, Operation Noble Eagle, 2005 United States Northern Command Operations and Strategy, Policy and Plans 2005 to 2010 North American Aerospace Defense Command(NORAD)Plans 2007 to 2010 Key Note Speaker at national and international level (terrorism, pandemic, space, military, appraisals) Adjunct Professor, Aviation, University of Dubuque, Iowa, 2011 to 2012 Senior Appraisal Reviewer for Heartland Financial USA Inc. ($5+billion company), 2012 to 2014 General Bob Photography, Professional Photographer, since 2012 Sister City Commission, Dubuque, Iowa, since 2013 Co-Executive Director, the Irish Hooley festival, Dubuque, Iowa, since 2013 Desktop Alert, Defense Industry Advisor, since 2015 Iowa Real Estate Appraiser Examining Board, 2015, Governor of Iowa Appointed& Senate confirmed Feldernean Appraisal;Dubuque,Iowa QUALIFICATIONS OF ROBERT J. FELDERMAN APPRAISAL AND REAL ESTATE EDUCATION (Al is Appraisal Institute) 2015 General Appraiser Report Writing, Al Ethics—Acting with Integrity, Iowa Bankruptcy Valuation, Appraisal Institute CFPB Disclosures, Iowa Retail Valuation Update and Research, Costar Emerald Ash Borer Study, Iowa Multifamily Valuation Update&Research,CoStar NEW FHA Handbook, McKissock Appraisal Management Companies, Al Advanced Concepts & Case Studies, Al 35 hours International Financial Reporting Standards for Improving Appraisal Reports, Al Appraisers, Appraisal Institute, 30 hours Wind Turbine Effects on Value, Al Unraveling Mystery of FNMA Guidelines, Al 2012 General Market Analysis and HBU, Al Economic Outlook 2012, Marcus Millichap Regression Analysis, Al 2014 Residential Market, Al Airports Airplane Hangars, Al Marketability Studies, Al Data Visualization in Appraisals, Al USPAP 2012-2013, McKissock Valuation Court Decisions, Al Advanced Market Analysis & HBU, Al 30 hours 2011 ROW Rail Case Studies, Al Real Estate Owned, McKissock, Advanced Regression Analysis, Al Residential Report Writing, McKissock Bank Branches Valuation, Al USPAP 2010-2011, McKissock Iowa Appraiser Supervisor&Trainee,McKissock, Crime Free Housing, City of Dubuque, Iowa 4 hours Washington Neighborhood Initiatives, City of DotLoop Software System, Dubuque MLS Dubuque, Iowa Fundamentals of Going Concerns, Al FNMA Appraisal Repurchase Review, FNMA 2009 Trial Components, Al Relocation Appraisals, McKissock Golf Course Valuation, Al Residential Appraisals, McKissock Purchase Price Allocation, Al USPAP 2008-2009, McKissock Appraisals of Senior Housing, Al Solar Photovoltaic Valuation, Al 2008 Advanced Income Capitalization, Appraisal Income Capitalization, McKissock Institute, 30 hours Appraiser Liability, McKissock USPAP 7-Hour National, Al Appraising FHA, McKissock Solar Photovoltaic Leases, Al Art of Residential Appraisal Review, McKissock Industrial, Office, Retail & Multifamily Property USPAP 2007-2007, McKissock, 2008 Quarterly Review, Costar Appraising in the Secondary Market, McKissock Market Analysis, Office and Industrial Property Outlook, Marcus Millichap 2003 Business Practices and Ethics, Al 2013 Cell Tower Valuation, Al 2001 2013 Year in Review, Wisconsin Chapter Al Factory Built Housing, McKissock Reading Leases, Costar Conservation Easements, Al 2000 Land Valuation, Al Historic Preservation, Dubuque Realtors Iowa Real Estate Ethics and Law Updated, Iowa Real Estate Commission 1999 General Appraiser Income Approach,McKissock, Manufactured Housing, McKissock 60 hours Apartment Valuation Update and Research,CoStar 1997 Office Valuation Update and Research, Costar Standards of Professional Appraisal Practice Industrial Valuation Update and Research,Co Star Energetic House, Real Estate Math Automated Valuation Models, Al Office Market Valuation and Research, Costar 1996 PwC Leasing Webinar, Price Waterhouse Cooper Principles of Business Appraisal, Al Feldernean Appraisal;Dubuque,Iowa APPRAISER LICENSES - ROBERT J. FELDERMAN tA<N.woPp�,�m STATE OF IOWA IOWA DEPARTMENT OF COMMERCE PROFESSIONAL LICENSING AND REGULATION THE PERSON NAMED BELOW,HAVING MET THE REQUIREMENTS AND BEING IN GOOD STANDING IN OTHER RESPECTS,IS ISSUED A CERTIFICATE AS A GEN. REAL PROPERTY APPRAISER FELDERMAN, ROBERT J CERTIFICATE NO. CG01134 EXPIRES 6/30/2016 Vie&Late of w1aton9nl Detkirmilut of bafetp anD Profemonal€aerUlteS RODBLTI FELDERMAN CERTI ED GJNERAL APPRALSER ELIGIBLE TO APPRAISE FEDERALLY RELATED TRANSACTIONS IS AQB COMPLMT ��44n.��.IL.gMy�/wrvp L�M/wd w....y1.....yw..L.,L4✓.���rw.r.�.n Otate of � ffnoio Department of Financial and Professional Regulation Division of Real Estate LICENSE NO. Ield aumianxam rxnerroy EXPIRES: 553.002107 '.mer.�er eae me�L-'—RTIFI 1,1— 09/30/201] CE GENERAL REAL ESTATE APPRAISER ROB ERT J FELDERMAN 201 SOUTHGATE DRIVE DUBUQUE,IA 52W3 QQ TIsteWS Mle�eu�n bevL * vetllletl al www.IM scum 10088203 ------------------------------------------------------------------------------------------------------------------ Felderman Appraisals,Dubuque,Iowa ADDENDUM F BIBLIOGRAPHY F1 Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Aaron, Martin H., MAI, SRA, Wright Jr., John H., MAI, The Appraisal of Religious Facilities Appraisal Institute, Chicago, IL Affirmative Marketing, Iowa Real Estate Seminar, Waterloo, IA Akerson, Charles B., MAI, The Appraisers Workbook The American Institute of Real Estate Appraisers. Chicago, IL Akerson, Charles B., MAI, Capitalization Theory and Techniques, Study Guide, The American Institute of Real Estate Appraisers, Chicago, IL Akerson, Charles B., MAI, Introduction to Meeting Equity Capitalization, The American Institute of Real Estate Appraisers. Chicago, IL Akerson, Charles B., MAI, The Internal Rate of Return in Real Estate Investments, The American Institute of Real Estate Appraisers, Chicago, IL, Alth, Max & Charlotte, Wells and Septic Systems, Second Edition, Blue Ridge Summit, PA The American Institute of Real Estate Appraisers, The Appraisal of Dairy Farms, Chicago, IL The American Institute of Real Estate Appraisers, The Appraisal of Irrigated Property, Chicago, IL The American Institute of Real Estate Appraisers, The Appraisal of Livestock and Ranch's, Chicago, IL The American Institute of Real Estate Appraisers, The Appraisal of Permanent Planting Orchards and Vines Chicago, IL The American Institute of Real Estate Appraisers, The Appraisal of Real Estate, Sixth Edition, Chicago, IL The American Institute of Real Estate Appraisers, The Appraisal of Real Estate, Ninth Edition. Chicago, IL The American Institute of Real Estate Appraisers, The Appraisal of Timberland, Chicago, IL The American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal. Chicago, IL The American Institute of Real Estate Appraisers, Forecasting: Marketing Determinants Affecting Cash Flows and Reservations, Research Report 4, Chicago, IL Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY American Institute of Real Estate Appraisals, Golf Courses and Valuation Chicago, IL The American Institute of Real Estate Appraisers, Subdivision Analysis. An Educational Memorandum. Andrews, Clarence A., Growing Un in Iowa, Reminiscences of 14 Iowa Authors, Iowa State University Press, Ames, IA Antitrust Laws and Real Estate, The Institute for Continuing Education Inc. Appraising Residential Properties, Third Edition, Appraisal Institute, Chicago, IL Appraisal and Evaluation Guidelines. Lincoln Graduate Center, San Antonio, TX The Appraisal of Real Estate for Eminent Domain Acquisition, American Society of Appraisers, Ames, IA Appraisal of Residential Propertv Course 512 (Classroom Math Supplement), Lincoln Graduate Center The Appraisal of Rural Property, Second Edition, Appraisal Institute Architectural Guidelines for Historic Structures in the Historic Districts of the City of Dubuque. IA, City of Dubuque Automated Valuation Models An Appraisers Introduction to Automated Valuation Technology, McKissock Data Systems, Warren, PA Axelvod, Jerold L., Dream Homes: 66 Plans to Make Your Dreams Come True Blue Ridge Summit, PA Bainbridge, Robert E., MAI, SRA, Convenience Stores and Retail Fuel Properties: Essential Appraisal Issues, Appraisal Institute, Chicago, IL The Bed & Breakfast and Country Inn Industry Study of Operations, Marketing, and Finances, produced by PKF Consulting, Research Department. Bell, Randall, MAI, Real Estate Damages, An Analysis of Detrimental Conditions, Appraisal Institute, Chicago, IL Bianchina, Paul, Add a Room. A Practical Guide to Expanding Your Home. Blue Ridge Summit, PA Biggers Sr. & Jr., David P., Using the Small Residential Income Property Appraisal Report Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Blankenship, Alan, PhD, The Appraisal Writing Handbook, Appraisal Institute, Chicago, IL Bonanno, James, CSI, Principles of Property Inspection, Second Edition, Lincoln Graduate Center, San Antonio, TX Boykin, James H., PhD, MAI, SREA, CRE, Land Valuation, Adjustments Procedures. and Assignments, Appraisal Institute, Chicago, IL Brown, Ervin, Whitlow, Jesse W., Geology of the Dubuque South Quadrangle Iowa- Illinois Geology of Parts of the Upper Mississippi Valley Zinc-Lead District 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 Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, Appraisal Institute Coleman, Stephanie, MAI, SRA, Minnich III, Joseph L., SRPA, SRA, Understanding Limited Appraisals and Appraisal Reporting Options, Appraisal Institute, Chicago, IL Commercial Investment Appraisal. Real Estate Law Institute, Chicago, IL Conroy, Kathleen, Valuing the Timeshare Property. American Institute, of Real Estate Appraisers, Chicago, IL Course 420 Business Practices and Ethics, Course Handbook, Appraisal Institute Coyle, Gregg A., The Bluffs of Dubuque. A Studv of Vegetation and Aesthetics. Ames, IA Darvin-Spada, Marcia, The Home Inspection Book. A Guide for Professional Data Standards, Appraisal Institute Commercial Database, Propertyfirst.com Department of Revenue and Finance, State of Iowa Real Estate Property Appraisal Manual, Dollars and Cents of Multifamilv Housing: Urban Land Institute, Washington D.C. Dollars and Cents of Shopping Centers: Urban Land Institute, Washington D.0 Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Dombal, Robert W., MAI, Appraising Condominiums: Suggested Data Analysis Techniques, The Appraisal Institute of Real Estate Appraisers, Chicago, IL Dubuque County, Iowa Comprehensive Land Use Development Plan. East Central Intergovernmental Association, Dubuque, IA Dubuque County, Iowa, Land and Atlas Book, Latest year. Rockford Map Publishers, Inc. Dubuque County, Iowa, Soil Survey of United States Department of Agriculture. Soil Conservation Service. Dubuque County, Iowa, Soil Survey Report Supplement. Iowa State University and Soil Conservation Service Eaton, J. D., Real Estate Valuation in Litigation. American Institute of Real Estate Appraiser. Chicago, IL The Energetic House, The Institute for Continuing Education Inc., Estes, Jack C., Kokus Jr., John, PhD, Real Estate License Preparation Course for the Uniform Examinations for the Salespersons and Brokers, Etter, Wayne E., Evaluating an Income Property, Real Estate Center, Texas A&M University, College Station, TX Factory-Built Housing Virtual Classroom Course Fannie Mac Guidelines for Property and Appraisal Analysis, Lincoln Graduate Center, San Antonio, TX Farm and Land Appraisal, Real Estate Law Institute, Chicago, IL Featherson, Don, Special Techniques of Real Estate Appraisal, Featherson and Associates, Little Rock, AR Federal Aviation Administration, Land Acquisition and Relocation Assistance for Airport Development Projects. Fenker, Richard M., PhD, The Site Book: A Field Guide to Commercial Real Estate Evaluation, Fort Worth„ TX Fisher Jr., Clifford E., MAI, Mathematics for Real Estate Appraisers, An Appraisal Institute Handbook, Chicago, IL Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Fisher Jr., Clifford E., MAI, Rates and Ratios Used in the Income Capitalization Approach, Appraisal Institute, Chicago, IL Fisher, Jeff D., Martin, Robert S., Income Property Appraisal Floyd, Charles F., Outdoor Advertising Signs in Eminent Domain Proceedings, The Real Estate Appraiser & Analyst, Summer 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 Frequentiv Asked Questions (USPAP), The Appraisal Foundation Friedman, Edith J., General Editor, The Encyclopedia of Real Estate Appraising, Fourth Edition Prentice-Hall. Englewood Cliffs, N.J. Friedman, Jack P., Ordway Nicholas, Income Property Appraisal and Analysis, American Society of Appraisers, Englewood Cliffs, NJ Galaty, Fillmore W., Allaway, Wellington J., Kyle, Robert C., Modern Real Estate Practice Tenth Edition, Real Estate Education Company, Chicago, IL Gibbons, James E. Meeting Equity Capitalization: Ellwood Method. American Institute of Real Estate Appraiser, Chicago, IL Gimmy, Arthur E., MAI, Baumbach, Charles R., The Analysis and Valuation of Health Care Enterprises. The Appraisal Institute, Chicago, IL Gimmy, Arthur E., MAI, Gates, Mary G., MAI, The Business of Show Business, the Valuation of Movie Theaters Appraisal Institute Gimmy, Arthur E. and Boehm Michael G., Elderly Housing A Guide to Appraisal, Market Analysis, Development and Financing. Illinois Gimmy, Arthur E., MAI, Woodworth, Brian B., Fitness, Racquet Sports, and Spa Projects: A Guide to Appraisal. Market Analysis. Development, and Financing, American Institute of Real Estate Appraisers, Chicago, IL Gimmy, Arthur E., MAI, Benson, Martin E., MAI, Golf Course and Country Clubs, A Guide to Appraisal. Market Analvsis. Development, and Finance, Appraisal Institute, Chicago, IL Gimmy, Arthur E., MAI, Brecht, Susan B., Dowd, Clifford J., Senior Housing: Looking Toward the Third Millennium: A Guide to Valuation, Market Analysis, Design, Development, and Financing, Appraisal Institute, Chicago, IL Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Goddard, Murray C., Wolverton, Mike & Ruth, How to be Your Own Architect, Second Edition, Blue Ridge Summit, PA, Greene, Howard W., MSA, Real Estate Mathematics Made Simple. Phoenix, Az, Hanes, Brad, Introduction to Abstracts. Title Opinions, and Abstract Title Defects, Second Edition, Iowa Practice, Hanes, Brad, Intro to Income Property Investment Analysis. Iowa Real Estate Seminar Hanes, Brad, Pre-License Seminar, Iowa Real Estate Seminar Hanes, Brad, Real Estate Appraisal and Valuation, California Department of Real Estate, Hanes Investment Co, Sherman Oaks, CA Hanes, Brad, Real Estate Ethics Iowa Real Estate Seminars, Waterloo, IA Hanes, Brad, Residential Property Management, Iowa Real Estate Seminar Harrison, Frank E., MAI, SRA, Appraising the Tough Ones, Creative Ways to Value Complex Residential Properties, Appraisal Institute, Chicago, IL Harrison, George R., NSA, AAR, Advanced Commercial Appraisal, Real Estate Law Institute Inc., San Antonio, TX Harrison, George R., AAR, MSA, Principles of Appraisal Review Course #663. Real Estate Law Institute, San Antonio, TX Harrison, George R., PhD, Standards of Professional Appraisal Practice. Lincoln Graduate Center, San Antonio, TX Harrison, Henry S., Advanced Appraisal Methods. 2000 Edition, New Haven, CT, Harrison, Henry S., Appraising Residences and Income Properties. Millennium Edition, New Haven, CT Harrison, Henry S., Appraising Residences and Income Property, Student Workbook, New Haven, CT, Harrison, Henry S., Martin, Stephen J., Battle, Thomas E., Harrison's Illustrated Guide How to Pass Anv General or Residential Appraisal Examination Certification-Licensing O & A, New Haven, CT Harrison, Henry S., Harrison's Illustrated Guide How to Screen Any Property for Apparent Environmental Hazards, New Haven, CT Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Harrison, Henry S., Harrison's Illustrated Guide to Uniform Residential URAR Appraisal Report, New Haven, CT. Forms and Worms. Chicago, IL Harrison, Henry S., Houses, National Marketing Institute, Chicago, IL Harrison, Henry S. Illustrated Dictionary of Real Estate and Appraising. Harrison, Henry S. Small Residential Income Property Appraisal Guide. Forms and Worms. Harvey, Eric, Lucia, Alexander, 144 Ways to Walk the Talk, Dallas, TX Harwood, Bruce M., Jacobus, Charles J., Real Estate Principles, Sixth Edition, Annotated Instructor's Edition, Englecliff, NJ Illinois License Law, The Institute for Continuing Education Inc. Iowa Department of Transportation, Eminent Domain in Iowa Iowa Department of Transportation, Iowa Primary Road Access Management Policy Iowa Department of Transportation, Office of Right of Way Relocation Assistance Manual Iowa Department of Transportation, Right to Way Condemnation Manual Iowa Department of Transportation, Supplement to Condemnation Manual for Cities and Counties Iowa Department of Transportation Office of Right of Way, Appraisal Policy and Procedures Manual Iowa Land Sales Report. P.O. Box 127, Fort Dodge, Iowa. Iowa Real Property Appraisal Manual, Department of Revenue & Finance, State of Iowa Is Your Home Protected From Hail Damage? A Homeowners Guide to Roofing and Hail, Institute for Business and Home Safety, Tampa, FL Jacobs, Diana T., MSA, Potter, Paul E., MFLA, Advanced Farm and Land Appraisal. San Antonio, TX Jacob, Diana, MSA, Appraisal of Residential Property, Lincoln Graduate Center, San Antonio, TX Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Jacob, Diana T., MSA, Appraiser Liability, "Knowledge to Minimize Risk", First Edition, Lincoln Graduate Center, San Antonio, TX Jacobs, Diana T., MSA, AAR, EAC, The Six Types of Appraisal Reports and the Evaluation, Lincoln Graduate Center, San Antonio, TX Jacob, Diana T., MSA, Using the Financial Calculator, Lincoln Graduate Center Jacob-Rouhoff, Diana T., MSA, Glossary of Appraisal Terms, National Association of Master Appraisers, Lincoln Graduate Center, San Antonio, TX Keating, David Michael, MAI, Appraising Partial Interests, Appraisal Institute, Chicago, IL Keating, David Michael, MAI, The Valuation of Wetlands Appraisal Institute, Chicago, IL Kinnard, William N., Jr., Income Property Valuation, Lexington Books/D.C. Heath and Co., Lexington, MS Know Dubuque, The League of Women Voters of Dubuque Lemhoff, David C., A Business Enterprise Value—Anthology, Appraisal Institute, Chicago, Illinois Lukens, Reaves C., Jr., The Appraiser and Real Estate Feasibility Studies. American Institute of Real Estate Appraisers. Chicago, I Market Analvsis: Supply and Demand Factors, Appraisal Institute Marshall and Swift, Home Repair and Remodel Cost Guide. Los Angeles, CA Marshall and Swift, Real Estate Repair and Remodel Cost Guide Marshall and Swift, Residential Cost Handbook. Los Angeles, CA McClintock, Mike, Alternate House Building, Popular Science Books, New York, NY McKissock, Richard D., Fair Lending for Appraisers, McKissock Data Systems, Warren, PA, 1998 McKissock, Richard D., Uniform Standards of Professional Appraisal Practice (One-Dav Module), McKissock Data Systems, Warren, PA McMichael, Stanley L., McMichael's Appraising Manual. New York Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Millard, Scott, Deck Planner, Home Planners, Inc., Tucson, AZ Mills, Arlen C., MAI, SRA, Mills, Dorothy Z., SRA, The Individual Condominium Unit Appraisal Report, Appraisal Institute, Chicago, IL Mills, Arlen C., MAI, SRA, Reynolds, Anthony, MAI, The Valuation of Apartment Properties. Appraisal Institute, Chicago, IL Murray, William G., Farm Appraisal and Valuation, Ames, IA National Association of Realtors, Passwords and Prejudice. A Realtor Guide to Fair Housing Compliance, Chicago, IL O'Brien, James P., Environmental Due Diligence for Real Estate Appraisers, Aegon USA Realty Advisors Inc., Cedar Rapids, IA Palmer, Ralph A., Real Estate Principles and Practices, Scottsdale, AZ Peterson, William J., Mississippi River Panorama, Henry Lewis Great National Work, Iowa City, IA Practice of Real Estate Appraising, Real Estate Law Institute, San Antonio, TX Presentations of Rural Appraisal, Lincoln Graduate Center, Des Moines, IA Principles of Real Estate Appraisal, Real Estate Law Institute, San Antonio, TX Ramsey, Dan, Doors, Windows, & Skylights,_ Second Edition, Blue Ridge Summit, PA Ratterman, Mark, Residential Real Estate Valuation Appraisal Institute, Chicago, IL Ratterman, Mark R. MAI, SRA, Residential Sales Comparison Approach, Deriving, Documenting, and Defending Your Value Opinion, Appraisal Institute Readings in the Appraisal of Special Purpose Properties, American Institute of Real Estate Appraisers, Chicago, IL Real Estate Appraisal Presentations, Lincoln Graduate Center, San Antonio, TX Real Estate Mathematics The Institute for Continuing Education Inc. Real Estate License Law Iowa Real Estate Seminar, Waterloo, IA Reece, Richard P., MSA, DREI, Fundamentals of Business Appraising, Lincoln Graduate Center, San Antonio, TX Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY The Relocation Appraisal Guide, Employee Relocation Council, Washington D.C. Reynolds, Judith, Historic Properties Preservation and Valuation Process, American Institute of Real Estate Appraisers. Chicago, IL Rodale's Home Design Series, Kitchen's Emmaus, PA Roddewig, Richard J., MAI, CRE, Valuing Contaminated Properties, An Appraisal Institute Anthology, Appraisal Institute Rural Provertv in Transition: Non Agricultural Uses, American Institute of Real Estate Appraisers, Chicago, IL Rushmore, Stephen, MAI, The Computerized Income Approach to Hotel-Motel Market Studies and Valuations, Appraisal Institute, Chicago, IL Rushmore, Stephen, MAI, Hotel and Motels, A Guide to Market Analysis, Investment, Analvsis, and Valuations, Appraisal Institute, Chicago, IL Rushmore, Stephen, MAI, Baum, Erich, Hotel & Motels Valuation and Market Studies, Appraisal Institute Rushmore, Stephen, Hotels, Motels and Restaurants, Valuation and Market Studies, American Institute of Real Estate Appraisers, Chicago, IL Saia, Robert S., MAI, A Guide to Appraising Recreational Vehicle Parks, Appraisal Institute, Chicago, IL Shaffer, James L., Tigges, John T., Images of America Dubuque the 20th Century, Chicago, IL, Shenkel, William M., A Guide to Appraising Industrial Property, Society of Real Estate Appraisers, Chicago, IL Simpson, John A., Property Inspection: An Appraisers Guide, Appraisal Institute, Chicago, IL Simpson, John A., MAI, Valuation of Marinas Appraisal Institute, Chicago, IL Sirota, David, PhD, Essentials of Real Estate Finance Sirota, David, Essentials of Real Estate Financing Real Estate Education Company, Chicago, IL Snyder, Tim, Decks-How to Design and Build the Perfect Deck for Your Home, Emmaus, PA Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Sorenson, Richard C., MAI, Appraising the Appraisal: The Art of Appraisal Review, The Definitive Guide for Reviews, The Appraisal Institute State Certified Real Estate Appraisers, State Licensed Real Estate Appraisers, Education Program, American Institute of Real Estate Appraisers, Chicago, IL Streetscave and Landscape Guidelines for the Historic District of the Citv of Dubuque, IA City of Dubuque Suttle, Donald T., Jr., The Appraisal of Roadside Advertising Signs, American Institute of Real Estate Appraisers, Chicago, IL Thayer-Sword, Joyce, Real Estate Principles and Practices Instructors Manual, Scottsdale, AZ Tigges, John T., Shaffer, James L., Images of America Dubuque the 19th Century, Chicago, IL Tosh, Dennis S., Rayburn, William B., Uniform Standards of Professional Appraisal Practice, Applying the Standards Uniform Appraisal Standards for Federal Land Acquisitions, U.S. Department of Justice, Washington, D.C.(in conjunction with the Appraisal Institute, Chicago, IL) Uniform Code for Building Conservation, International Conference of Building Officials, Uniform Standards of Professional Appraisal Practice (USPAP), published by "The Appraisal Foundation," (current update). U.S. Department of Housing and Urban Development, Valuation Analysis for Home Mortgage Insurance for Single Familv One to Four Unit Dwellings, Handbook 4150.2, Lincoln Graduate Center U.S. Department of Housing and Urban Development Real Estate Assessment Center, Appendix 2- Dictionary of Deficiencv Definitions for Real Estate Assessment Center System, Physical Assessment Subsystems U.S. Department of Transportation Federal Aviation Administration, Advisory Circular: Land Acquisition and Relocation Assistance Under the Airport Development Aid Program Urban Land Institute, Hotel/Motel Development Laventhol and Horwarth Vehmeier, Steven W., MSA, HUD Appraisal Standards Update Course #11.2, Lincoln Graduate Center, San Antonio, TX Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY Vemor, James D., MAI, PhD, Rabianski, Joseph, PhD, Shopping Center Appraisal and Analysis, Appraisal Institute, Chicago, IL Weyrich, Paul M., Lind, William S., Bring Back the Streetcars!, A Conservative Vision of Tomorrows Urban Transportation, Washington D.C. Whitlow, Jesse W., Brown, Ervin, Geology of the Dubuque North Quadrangle Iowa- Wisconsin-Illinois Geology of Parts of the Upper Mississippi Valley Zinc-Lead District Writing The Narrative Appraisal Report, Real Estate Law Institute San Antonio, TX Your Communitv Guide to Resources for Galena and Jo Daviess County, Jo Daviess County and Galena Chamber of Commerce Zahn, Laura, Room at the Inn Galena Area, Guide to Historic B & B's and Inns Close it Galena and Dubuque. St. Paul, MN PERIODICALS Appraisal Journal, American Institute of Real Estate Appraisers, 430 North Michigan Ave., Chicago, IL 60611. Quarterly. Doanes Reference Volume, Doanes Agricultural Service, Kansas City, MO. Farm and Land Realtor. Farm and Land Institute, 430 North Michigan Avenue, Chicago, IL 60611. Monthly. Real Estate Today. National Association of REALTORS, 430 North Michigan Avenue, Chicago, IL 6061 LMonthly REALTOR News, National Association of REALTORS, 35 East Wacker Drive, Chicago, IL 60601. Weekly. REGULATIONS/STANDARDS Applicable current Zoning Ordinances for cities and/or counties. Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 1029 Vermont Avenue NW, Suite 900, Washington D.C. 20005 Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY BOOKS PURCHASED SINCE 3/1/2012 • Analysis and Valuation of Golf Courses and Country Clubs • Applications in Litigation Valuation: A Pragmatist's Guide • The analysis and appraisal of Health Care Facilities • The Appraisal of Nursing Facilities • The Appraisal of Real Estate, 13th Edition (12th and Student Handbook) • The Appraisal of Real Estate, 14th Edition • The Appraisal of Religious Facilities • The Appraisal of Rural Property • The Appraisal of Water Rights • The Appraisal Writing Handbook • The Appraiser's Workbook • Appraising Conservation and Historic Preservation Easements • The Conservation Easement Handbook • Appraising Industrial Properties • Appraising Partial Interests • Appraising Residential Properties, Fourth Edition • Appraising the Appraisal: The Art of Appraisal Review • Appraising the Tough Ones • A Business Enterprise Value Anthology (2001 First Edition) • A Business Enterprise Value Anthology, Second Edition • The Business of Show Business: The Valuation of Movie Theaters • Capitalization Theory and Techniques Study Guide • Convenience Stores and Retail Fuel Properties: Essential Appraisal Issues, second edition • The Dictionary of Real Estate Appraisal—5th Edition 2010 • Exceeding Expectations: Producing Appraisal Reports and Services That Delight Clients • Elderly Housing • Fitness Racquet Sports and Spas • Fraud Prevention for Commercial Real Estate Valuation • Golf Courses and Country Clubs • GIS in Real Estate: Integrating, Analyzing, and Presenting Locational Information • A Guide to Appraisal Valuation Modeling • A Guide to Appraising Recreational Vehicle Parks • Historic Properties: Preservation and the Valuation Process, Third Edition • Hotel Market Analysis and Valuation: International Issues and Software Applications • Hotel Market Analysis and Valuation: & Market Studies • Going Concern Valuation • In Defense of the Cost Approach: A Journey into Commercial Depreciation • An Insider's Guide to Home Buying • An Introduction to Green Homes • An Introduction to Statistics for Appraisers • Land Valuation: Adjustment Procedures and Assignments Felderman Appraisals,Dubuque,Iowa APPRAISAL BIBLIOGRAPHY • Market Analysis and Valuation of Self-Storage Facilities Market Analysis for Real Estate: Concepts and Applications in Valuation and Highest and Best Use • Mathematics for Real Estate Appraisers • Practical Applications in Appraisal Valuation Modeling • Property Inspection: An Appraiser's Guide • Rates and Ratios Used in the Income Capitalization Approach • Readings in Valuation of Special Purpose Properties • Real Estate Damages: Applied Economics and Detrimental Conditions • Real Estate Appraisal Practice (Collection of Examples) • Real Estate Valuation in Global Markets, Second Edition • Real Estate Valuation in Litigation • Real Estate Principles • Scope of Work • Self-Storage Economics and Appraisal • The Site Book, Field Guide to • Senior Housing: Looking Toward The Third Millennium • Shopping Center Appraisal and Analysis • The Student Handbook to The Appraisal of Real Estate, 13th Edition • Study Guide to Appraising Residential Properties • Subdivision Valuation • Subdivision Analysis • Uniform Appraisal Standards for Federal Land Acquisitions • Using Residential Appraisal Report Forms: URAR, Form 2055, and the Market Conditions Form • Using the Individual Condominium Unit Appraisal Report Forms: Fannie Mae Form 1073 and Exterior-Only • Using the Small Residential Income Property Appraisal Report: Fannie Mae Form 1025/Freddie Mac Form • Valuation and Market Studies for Affordable Housing • Valuation by Comparison: Residential Analysis and Logic • The Valuation of Apartment Properties, Second Edition • The Valuation of Billboards • The Valuation of Marinas • The Valuation of Office Properties: A Contemporary Perspective • The Valuation of Religious Facilities • The Valuation of Wetlands • Valuing Contaminated Properties: An Appraisal Institute Anthology • Valuing Undivided Interests in Real Property: Partnerships and Cotenancies • Visual Valuation: Implementing Valuation Modeling and Geographic Information Solutions Felderman Appraisals,Dubuque,Iowa ADDENDUM G COMMUNITY INFORMATION, DUBUQUE CITY AND COUNTY IOWA STATE UNIVERSITY RETAIL & ECONOMIC TRENDS IOWA BUREAU OF LABOR STATISTICS ECONOMY GLANCE CENSUS PROFILE REPORTS (MAY INCLUDE THE FOLLOWING,AS APPLICABLE) CENSUS PROFILE ACS HOUSING SUMMARY ACS POPULATION SUMMARY AGE 50+ SUMMARY BUSINESS SUMMARY COMMUNITY PROFILE DEMOGRAPHIC AND INCOME PROFILE DETAILED AGE PROFILE DISPOSAL INCOME PROFILE EXECUTIVE SUMMARY HOUSING PROFILE MARKET PROFILE DOWNTOWN DUBUQUE EMPLOYER AND BUSINESS MAPS DUBUQUE CENSUS FACTS PROFILE 5 YEAR ESTIMATES DUBUQUE COUNTY WORKFORCE DEVELOPMENT IOWA WORKFORCE AND ECONOMY NATIONAL RECOGNITION FOR DUBUQUE Felderman Appraisals,Dubuque,Iowa COMMUNITY INFORMATION SHEET—City of Dubuque and Dubuque County COMMUNITY INFORMATION SHEET—City of Dubuque and Dubuque County City of Dubuque,Dubuque County,State of Iowa,United States;Incorporated 1833 Control of Louisiana(and Dubuque's mines)shifted back to France in 1800,then to the United States in 1803, following the Louisiana Purchase.Dubuque died in 1810,but the wealth of minerals drew a number of new pioneers and Nickname(s)4"Dub","Dubz","Dub Town","Dub City","Gutta Town","The 563","The Key City","City of Five Flags", settlers,mostly Frenchmen and other Europeans. "Masterpiece on the Mississippi","4217" The current City of Dubuque,named after Julien Dubuque,was settled at the southern end of a large,flat plain Motto:"Showing the Spirit" adjacent to the Mississippi River.The city was officially chartered in 1833,located in then-unorganized territory.The region was designated as the Iowa Territory in 1838,and was included in the newly created State of Iowa in 1846.After Government Type-Council-Manager the lead resources were exhausted,the city became home to numerous industries.Because of its proximity to forests in Area:City 27.7 sq mi(71.8 km2),Land 26.5 sq mi(68.6 km2),Water 1.2 sq mi(3.2 km2),Elevation 617 ft(188 m) Minnesota and Wisconsin,Dubuque became a center for the timber Industry,and was later dominated by various millworking businesses.Between 1860 and 1880,Dubuque was one of the 100 largest urban areas in the United States. Population(2009)-City 57,222;Density 2,178.2/sq mi(841.1/km2);Metro 91,765 Also important were boat building,brewing,and later,the railroad industry.Iowa's first church was built by Methodists in 1834.Since then,Iowans have followed a variety of religious traditions.Throughout the 1800s,and Into the early Information:Dubuque:/de'bju:k/is a city in and the county seat of Dubuque County,Iowa,United States,located along 1900s,thousands of poor German and Irish Catholic immigrants came to work in the manufacturing centers.The city's the Mississippi River.In 2008,its population was estimated at 57,222,making it the eighth-largest city in the state and the county's population was estimated at 92,724. Roman Catholic presence became so predominant that it was designated as the seat of the newly established Archdiocese of Dubuque,and numerous convents,abbeys,and other religious institutions were built.Much of the The city lies at the junction of three states:Iowa,Illinois,and Wisconsin,a region locally known as the Tri-State population remains Catholic to this day. Area.It serves as the main commercial,industrial,educational,and cultural center for the area.Geographically,it is part Early in the 20th Century,Dubuque was one of several places that saw a brass era automobile company,in this of the Driftless Area,a portion of North America that escaped all three phases of the Wisconsinian Glaciation. case Adams-Farwell;like most others,it folded.Subsequently,although Dubuque grew significantly,Industrial activity It is one of the few large cities in Iowa with hills,and is home to a large tourist industry,driven by the city's remained the mainstay of the economy until the 1980s.During that time,a series of changes In manufacturing,and the unique architecture,and river location.Also,it is home to five institutions of higher education,making it a center for onset of the"Farm Crisis"led to a large decline in the sector,and the city's economy as a whole.However,the economy culture and learning. diversified rapidly in the 1990s,shifting away from heavy industry.Today,tourism,high technology,and publishing are among the largest and fastest-growing businesses.Dubuque attracts well over 1,500,000 tourists annually,and this While Dubuque has long been a center of manufacturing,the economy has recently witnessed rapid growth and number continues to increase.Some of the more important changes include the ongoing construction of the America's diversification in other areas.In 2005,it led the state and the Midwest in job growth,ranking as the 22nd fastest- River Project's tourist attractions in the Port of Dubuque,the expansion of the city's colleges,and the continued growth growing economy nationally.Today,alongside industry,the city has large health care,education,tourism,publishing, of shopping centers,like Asbury Plaza. and financial service sectors. Geography: Dubuque has received a number of special designations.In March 2007,the city was recognized as one of the "100 Best Communities for Young People"by the America's Promise Youth Foundation.In April 2007,the city was voted According to the United States Census Bureau,the city has a total area of 27.7 square miles(71.8 km2),of which, 15th In the"Best Small Places For Business and Careers"ranking by Forbes Magazine,climbing 60 spots from 2006.In 26.5 square miles(68.6 km2)of it is land and 1.2 square miles(3.2 km2)of it(4.44%)is water. 2006,Money Magazine named Dubuque as having the shortest commute time all U.S.cities at only 11.8 minutes.In Downtown Dubuque is the location of the city's central business district and many of its government and June 2007,Dubuque won the All-America City Award,one of 10 cities nationally to do so.In June 2008,Dubuque was named as the"Most Livable"Small City by the United States Conference of Mayors(USCM).In 2009,Dubuque was cultural institutions.It is the center of Dubuque's transportation and commercial sectors,and functions as the hub the various outlying districts and neighborhoods.It is located in the east-central portion of the city,along the Mississippi named the 8th best small metro area to launch a small business by CNNMoney.com. River,and includes all of the area north of Maus Park,south of 17th Street,east of the bluff line,and west of the river. History of Dubuque,Iowa: The area is made up of several distinct neighborhoods,each of which has a unique history and character.These The City of Dubuque is among the oldest settlements west of the Mississippi River.The first Europeans to neighborhoods include Cable Car Square/Cathedral Square,the Central Business District,Jackson Park/Upper Main, explore the area were Father Jacques Marquette and Louis Jolliet,who travelled along the river in 1673.They were Lower Main,and the Warehouse District.An area of special note within Downtown Dubuque is the Port of Dubuque, commissioned by the colony of New France to map the unexplored region.The entire area was claimed for France in which has seen a massive amount of new investment and new construction.The downtown area includes a number of 1682 by Rene-Robert Cavelier,Sieur de La Salle,who named it"Louisiane"in honor of French King Louis XIV.Following significant buildings,many of which are historic,reflecting Dubuque's early and continuing importance to the region. the 1763 French defeat in the Seven Years'War,Spain gained control of Louisiana.The first permanent settler to what is Important sites downtown include Red Stone Bed&Breakfast,Old Cable elevator,Mississippi River,and The now Dubuque was a Quebecois pioneer,Julien Dubuque,who arrived in 1785.In 1788,he received permission from the Spanish government and the local Fox tribe of American Indians to mine the area's rich lead deposits. Washington Park Gazebo. Felderman Appraisals,Dubuque,Iowa Information gathered from numerous sources Felderman Appraisals,Dubuque,Iowa information gathered from numerous sources COMMUNITY INFORMATION SHEET—City of Dubuque and Dubuque County COMMUNITY INFORMATION SHEET—City of Dubuque and Dubuque County Tourist Attractions include:National Mississippi River Museum,&Aquarium,Diamond Jo Casino,Mystique Other Important sites in the West End include Asbury Plaza,Asbury Square Shopping Center,Bunker Hill Golf Casino,Dubuque Symphony Orchestra,Dubuque Shot Tower,Five Flags Civic Center,Fourth Street Elevator,Grand Course,Dubuque Arboretum&Botanical Gardens,Emmaus Bible College,Flora Park,Hempstead High School,Kennedy Harbor Resort&Waterpark,Grand Opera House and the Grand River Center, Mall,Medical Associates Clinic-West Campus,Mt.Loretto Convent,Plaza 20,Resurrection Catholic Church,Veterans Dubuque's North End area was first settled in the late 1800s by working-class German immigrants to the city. Memorial Park,Wacker Plaza,Wahlert High School,Warren Plaza,and Kennedy Mall The German-American community in Dubuque sought to establish their own German Catholic churches,separate from Climate: the Irish Catholic churches in Dubuque's downtown and South End.Today,the area still retains its working-class roots, and is still home to some of the largest factories operating in Dubuque. Dubuque has a humid continental climate(Koppen Dfa),which gives it four distinct seasons.However,local weather is often not as extreme as that found in other parts of the Midwest,such as Minnesota or Wisconsin.Spring is The North End is roughly defined,but generally includes all of the territory north of 17th Street,and east of usually wet and rainy,summers are sunny and warm,autumn is pleasant and mild,and winters are typically cloudy and North Grandview Avenue and Kaufmann Avenue.The area is made up of two main hills(west of Central Avenue,and snowy. west of Lincoln Avenue),and two main valleys,the Couler Valley(between the two hills),and the"Point"neighborhood, adjacent to the Mississippi River.It is home to Dubuque's two main cemeteries,Linwood Cemetery(established for Culture: Protestants),and Mt.Calvary Cemetery(established for Catholics). Dubuque has several buildings on the National Register of Historic Places.The Fourth Street Elevator is located Other important sites in the North End include Eagle Point Park,Holy Ghost Catholic Church,Linwood Cemetery, in Downtown Dubuque.This elevator,which is the shortest and steepest railroad in existence,takes passengers up and Lock&Dam#11,Mathias Ham House,Mt.Calvary Cemetery,and Sacred Heart Catholic Church. down one of the large bluffs that dominate the city.Also,the Dubuque County Courthouse,with its Beaux-Arts architecture,is on the register.The Julien Dubuque Bridge is a National Historic Landmark,as is the Shot Tower,which The South End has been the traditional neighborhood of Irish-Americans In the city,and became known as was used to produce lead shot and is one of the few such towers left In existence.Dubuque's Linwood Cemetery Is "Little Dublin,"specifically centered on southern portions of Downtown Dubuque.Remnants of Irish culture still survive noted for a number of famous people buried there,and the Dubuque Arboretum and Botanical Gardens have won a in the South End,with Irish pubs and stores still operating in the area.Irish culture in Dubuque also revolves around the number of awards.There are a number of notable parks,particularly Eagle Point Park and the Mines of Spain State city's Irish Catholic churches,namely: St.Columbkilles,St.Patrick's,and St.Raphael's Cathedral. Recreation Area. Today,the South End is much larger,and includes all of the land south of Dodge Street,east of Fremont Avenue The Grand River Center overlooks the Mississippi River In the Port of Dubuque.Dubuque's waterfront features (but including areas of west of it),and north of the Key West area.The South End has many of the city's"old money" the Ice Harbor,where the Diamond Jo Casino and William M.Black are based.Recently the National Mississippi River neighborhoods,especially along South Grandview and Fremont Avenues,and around the Dubuque Golf&Country Club. Museum and Aquarium,the Grand Harbor Resort and Waterpark,and the Grand River Event Center have been built just Many South End neighborhoods have a more spacious and park-like appearance,contrasting with the more urban North north of the Ice Harbor.Land for this project was acquired from several businesses through condemnation of their End. properties under eminent domain. Other important sites in the South End include Archdiocese of Dubuque headquarters,Louis Murphy Park, Dubuque is also the home of the Colts Drum and Bugle Corps.The Colts are a Drum Carps International Division I Mines of Spain State Rec.Area,Mt.Carmel Convent,St.Raphael's Cathedral,Valentine Park,and Wartburg Theological ensemble and tour the country each summer to attend drum corps competitions.Each summer the Colts and Dubuque Seminary. host"Music on the March,"a Drum Corps International-sanctioned marching competition at Dubuque Senior High Dubuque's West End is a large,mostly suburban area settled almost entirely after the Second World War. School.Dubuque is the second-smallest city in the nation to support a Division I drum corps. Development was spurred by the onset of the massive baby boom generation,and sharply higher demand for new The movies F.I.S.T.and Take This Job and Shove It were filmed in Dubuque as well as various scenes from Field housing In the city.Expansion began with the construction of the"John Deere Homes"In the Hillcrest Park of Dreams.About 25 miles west of the city is the town of Dyersville,Iowa.Dyersville is the home of the Basilica of St. neighborhood,which were financed by Deere&Company for Its workers.Soon after,many large shopping centers were Francis Xavier and of the Field of Dreams movie site. built,including Plaza 20,and the then-largest enclosed shopping mall in Iowa,Kennedy Mall. Sports: Today,the area continues to expand at a rapid pace,with new subdivisions and shopping centers stretching out for miles from the city's downtown.The West End is not clearly defined,but is generally considered to include all of the The city is home of the Dubuque Fighting Saints,set to being play in the Tier I Junior A United States Hockey suburban-style growth west of North Grandview Avenue,the University of Dubuque,and the Valentine Park League in the Fall of 2010 at the new Mystique Ice Center.Dubuque was home to the original Fighting Saints team from neighborhood.The area is home to a wide variety of mostly middle-class neighborhoods and city parks,but also includes 1980-2001 when the team relocated to Tulsa,Oklahoma.From 2001-2010 The Dubuque Thunderbirds replaced the many of the city's largest schools,Industrial parks,and all of its large shopping centers.The expansion of the area has Fighting Saints playing in the Tier III Junior A Central States Hockey League at the Five Flags Center.There is a USHL also led to rapid growth in suburban Asbury and exurban Peosta,Iowa,both of which adjoin the West Side. home team(Fighting Saints)that started during the 2010-11 hockey season. Fold.-Appraisals,Dubuque,Iowa Information gathered from numerous sources Felderman Appraisals,Dubuque,to Information gathered from numerous sources COMMUNITY INFORMATION SHEET-City of Dubuque and Dubuque County COMMUNITY INFORMATION SHEET-City of Dubuque and Dubuque County Print Media: Dubuque's daily newspaper is the Telegraph Herald,or the"TH",as it is known locally,which has a daily Some other companies with a large presence in the area include The McGraw-Hill Companies,Diamond Jo circulation of nearly 31,000.[17]There are several other important papers and journals that operate in the city,including Casino(400),A.Y.McDonald Mfg.(375),Nordstrom(250),Alliant Energy,Swiss Valley,The Metrix Company,Tschiggfrie Tri-State Business Times(monthly business paper),3651nk(bi-weekly cultural publication),VUE(entertainment paper), Excavating Co.,and Cottingham&Butler.And recently IBM moved into the old Roshek Building in downtown Dubuque. Julien's Journal(monthly local magazine),the Dubuque Advertiser(advertisement paper)and the"Tri-States Sports Look"(local sports publication). In recent years,Dubuque's economy has grown very rapidly.In fact,in 2005,the city had the 22nd-highest job growth rate in the nation,far outpacing the rest of Iowa.This ranking placed the city in a level of growth similar to Television Media: Austin,Texas,and Orlando,Florida,among others.The city created over 10%of the newjobs in Iowa in 2005.Also,the number of jobs in Dubuque County has reached new all-time highs,with over 57,000 people working In non-farming Dubuque and surrounding areas are in the Cedar Rapids/Waterloo/Dubuque broadcast media market that is jobs.Many new and existing businesses have announced significant expansion plans,including Sedgwick CMS,McGraw- monitored by the A.C.Nielsen Company for audience research data for advertisers.For years Dubuque had a local TV Hill Higher Education,Deere and Company,Cottingham&Butler,Quebecor World Inc.,Namasco,and many others. news station(KFXA/KFXB Fox 28/40)until 2004 when that station became an affiliate of CTN.Currently,the Dubuque- based TV news is covered by KWWL-TV7(Waterloo,IA),and KCRG-TV9(Cedar Rapids,IA);both operate news bureaus in Demographics:Historical Population the city,and most of the city's major stories are covered by those stations.Since the closing of KFXA/KFXB,KW WL-TV has captured a majority of the local news market in Dubuque. Year Pop.%± Year Pop.%± AM radio stations including: , 18503,108- 1930 41,679 6.5% WMT 600"Newsradio",news/talk;WGLR 1280"ESPN radio",sports;KMAQ 1320,country;KDTH 1370"Voice of 1860 13,000 318.3% 194043,892 5.3% the Tri-States",news/talk;KADR 1400"Today's Hits and Yesterday's Favorites",adult contemporary;WDBQ 187018,434 41.8% 1950 49,67113.2% 1490"News,Talk,&Sports Leader",news/talk/sports;and W PVL 1590"ESPN radio",sports. 1880 25,254 37.0% 1960 56,60614.0% FM radio stations include: 1890 30,31120.0% 1970 62,30910.1% WJTY 88.1"Joy 88",Christian;KIAD 88.5,Christian;WSSW 89.1,variety;KDUB 89.7"UNI radio",Iowa Public Radio;WJS0 89.7,Christian;WSUP 90.5"The Evolution 91FM",college/alternative;KUNI 90.9"KUNI Radio", 1900 36,297 19.7% 1980 62,374 0.1% Iowa Public Radio;WHHI 91.3"Wisconsin Public Radio",public radio;KATF 92.9"Kat-FM",adult contemporary; WQPC 94.3"Great Country Q94",country;KMAQ95.1,adult contemporary;WVIK 95.7"Augustana Public 1910 38,494 6.1% 1990 57,538-7.8% Radio",public radio;KGRR 97.3"97.3 The Rock",active rock; WGLR 97.7"97.7 Country",country;KDST 99.3' 1920 39,1411.7% 2000 57,686 0.3% "Real Country 993",country;KCTN 100.1"Today's Best Country",country;WVRE 101.1"The River",country; KSUI 101.7"Classical Music and More",Iowa Public Radio;KXGE 102.3"Eagle 102",classic rock;WJOD 103.3 Source:"American FactFinder".United States Census Bureau.http://factfinder.census.gov. "New Country 103",country;KLYV 105.3"Today's Hit Music Y105",Top 40;KIYX 106.1"Superhits 106',classic hits;WPVL 107.1"Xtreme 107.1",Top 40;WDBQ-FM 107.5"Q107.5",classic hits;and KLCR"Lovas College Population: Radio",college radio. As of the census of 2000,there were 57,686 people,22,560 households,and 14,303 families Economy: residing in the city.The population density was 2,178.2 people per square mile(841.1/kml).There were 23,819 housing units at an average density of 899.4/sq mi(347.3/kma).The racial makeup of the city For many years,Dubuque's economy was centered on manufacturing companies such as Deere and Company was 96.15%White,1.21%Black or African American,0.19%Native American,0.68%Asian,0.11%Pacific and Flexsteel Industries.While industry still plays a major role in the city,the economy has diversified a great deal in the Islander,0.69%from other races,and 0.96%from two or more races.1.58%of the population was last decade.Today,health care,education,tourism,publishing,and financial services are all important sectors of the Hispanic or Latino of any race.There were 22,560 households out of which 30.0%had children under city's expanding business climate.There are several major companies that either are headquartered in Dubuque,or have the age of 18 living with them,50.3/were married couples living together,10.0%had a female a significant presence in the city. householder with no husband present,and 36.6%were non-families.31.0%of all households were made up of individuals and 12.6%had someone living alone who was 65 years of age or older.The Dubuque's ten largest non-government employers include:Hormel Opening in March 2010;Deere and Company average household size was 2.37 and the average family size was 2.99. (1,800);Mercy Medical Center-Dubuque(1,324);IBM(1300);Eagle Window&Door Co.(750);Medical Associates(743); Finley Hospital(920);Woodward Communications(600);Prudential Financial(550)and McKesson Corp(360). Feld-tr Appraisals,Dubuque,Iowa lnformalion gathered from numerous sources Felderman Appraisals,Dubuque,lova Information gathered from numerous sources COMMUNITY INFORMATION Si Dubuque County,Iowa COMMUNITY INFORMATION SHEET—Dubuque County,Iowa In the city the population was spread out with 23.6%under the age of 18,11.891.from 18 to 24, Law and government: 26.5%from 25 to 44,21.6%from 45 to 64,and 16.5%who were 65 years of age or older.The median age was 37 years.For every 100 females,there were 90.0 males.For every 100 females age 18 and over, The City of Dubuque operates on the council-manager form of government,employing a full- there were 86.2 males. time city manager and part-time city council.The city manager runs the day-to-day operations of the city,and serves as the city's executive leader.The assistant city manager is Cindy Steinhauser,and Is The median income for a household in the city was$36,785,and the median income for a family largely credited in spearheading downtown and riverfront revitalization and is currently working on a was$46,564.Males had a median income of$31,543 versus$22,565 for females.The per capita income "Greening Historic Buildings"project as an economic-development strategy and as a way to remember for the city was$19,616.About 5.5%offamilies and 9.5%of the population were below the poverty its manufacturing past. Policy and financial decisions are made by the city council,which serves as the line,including 9.3%of those under age 18 and 12.5%of those that are age 65 or over. city's legislative body. Religion: Education: Since its founding,Dubuque has had,and continues to have,a strong religious tradition.Local Dubuque is served by the Dubuque Community School District,which covers roughly the eastern settlers established what would become the first Christian church in Iowa,St.Luke's United Methodist half of Dubuque County and enrolls 10,735 students in 20 school buildings as of 2006.The district has 13 Church in early 1833.[ref:History of St.Luke's United Methodist Church 150th anniversary 1833-1983] elementary schools,3 middle schools,3 high schools,and 1 preschool complex.It is among the fastest- St.Raphael's was established later in 1833.The city also played a key role in the expansion of the Roman growing school districts in Iowa,adding over 1,000 students in the last five years. Catholic Church into the Western United States,as it was the administrative center for Catholics in what are now Iowa,Minnesota,North Dakota,and South Dakota.Many important Catholic religious leaders Public high schools in Dubuque include Dubuque Senior High School,Hempstead High School, have lived in Dubuque,including Father Samuel Mazzuchelli,Bishop Mathias Loras,Clement Smyth,and and Central Alternative High School(closed in 2010).The city also has a large number of students who Mother Mary Frances Clarke. attend private schools.Most private schools are run by the Roman Catholic Archdiocese of Dubuque. The Archdiocese oversees the Holy Family Catholic Schools,which operates 11 schools in the city, The modern religious character of the city is still dominated by the Roman Catholic Church. including 9 early childhood programs,4 elementary schools,1 middle school,and 1 high school.As of Although sources vary,Catholics make up between 65-85%of city residents,with even higher 2006,Holy Family enrolled 1,954 students in grades K-12.Dubuque also has an elementary school percentages in the surrounding rural areas.This contrasts with the remainder of Iowa,which is only 23% serving the Lutheran community,Dubuque Lutheran School(LCMS affiliated).There is one private high Catholic.The city proper is home to 52 different churches(11 Catholic,40 Protestant,1 Orthodox),and school in Dubuque:Wahlert High School. 1 Jewish Synagogue(Reform).In addition to churches,5 religious colleges,4 area convents,and a nearby abbey and monastery add to the city's religious importance.Most of non-Catholic population in Dubuque is also home to a large number of higher education institutions.Loras College and the city belongs to various Protestant denominations. Clarke College are both 4-year schools associated with the Roman Catholic Church.They are 2 of the 3 colleges operated by the Roman Catholic Archdiocese of Dubuque.Protestant colleges in the city include Dubuque is home to three theological seminaries:St.Pius X seminary,pre-theology for Roman the University of Dubuque,which is associated with the Presbyterian Church(USA),and Emmaus Bible Catholic men discerning a call to ordained priesthood,the University of Dubuque,with the Presbyterian College,connected with the Plymouth Brethren movement.There are also 3 theological seminaries Church USA,and the Wartburg Theological Seminary,with the Evangelical Lutheran Church in America. operating in the city,the St.Pius X Seminary(Roman Catholic,associated with Loras College),the These latter two institutions train both lay and ordained ministers for placements in churches University of Dubuque Theological Seminary(Presbyterian),and Wartburg Theological Seminary nationwide.Dubuque is also the headquarters of the Roman Catholic Archdiocese of Dubuque,which (Lutheran ELCA).Other schools in the area include Northeast Iowa Community College,which operates directly administers 1/3 of Iowa's territory for the church,and is the head of the Ecclesiastical Province its largest campus in nearby Peosta,Iowa and has a satellite campus in Dubuque,and Capri Cosmetology of Dubuque,the entire state of Iowa. College,in Dubuque. The University of Wisconsin-Platteville is another major university located in the region,about 20 miles northeast of Dubuque in Platteville,Wisconsin. Felderman Appraisals,Dubuque,Iowa Information gathered from numerous sources Felderman Appraisals,Dubuque,Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET—Dubuque County,Iowa COMMUNITY INFORMATION SHEET—Dubuque County,Iowa Health and medicine: Airport: Dubuque is the health care center of a large region covering eastern Iowa,northwestern Illinois, The Dubuque Regional Airport Dubuque and its region are served by the general-aviation and southwestern Wisconsin.The city is home to two major hospitals that,together,have 421 beds. Dubuque Regional Airport(IATA:DBC,ICAO:KDBQ).The airport currently has one carrier,American Mercy Medical Center-Dubuque Is the largest hospital in the city with 263 beds,and one of only three Eagle Airlines,(a division of American Airlines)which operates 3 non-stop jet flights daily to Chicago in Iowa to achieve"Magnet Hospital"status.Magnet Hospitals must meet and maintain strict standards, O'Hare International Airport.Northwest Airlines regional partner Mesaba operating under Northwest deeming them some of the best medical facilities in the country.Mercy specializes in various cardiac- Airlink used to have daily service to Dubuque.Northwest operated twice daily flights to and from related treatments,among other things.It is affiliated with the Roman Catholic Church. Minneapolis-Saint Paul International Airport(IATA:MSP,ICAO:KMSP)using Saab 340 aircraft.These flights began June 2008 and ended on August 31,2009.Northwest Airlines once offered service to Dubuque's other hospital is The Finley Hospital,which Is a member of the Iowa Health System's Dubuque prior to 9/11. network of hospitals.Finley is 1CAHO accredited,and currently has 158 beds.It is unofficially Dubuque's "cancer hospital,"as it has significant oncology-related facilities,including the Wendt Regional Cancer The airport's operator,the City of Dubuque,continues to court additional carriers to add service Center.The hospital campus has expanded in recent years,with the construction of several new to the airport.This will likely happen,since the Dubuque Regional Airport has reported steadily buildings. increasing passenger numbers over the years,and,up until recently,had service from 3 different carriers(prior to 9/11).In early November 2007,it was announced that October 2007 was the best Among other health care facilities,the city is home to two major outpatient clinics.Medical month ever for American Eagle airline at the Dubuque Regional Airport,according to Dubuque Regional Associates Clinic is the oldest multi-specialty group practice clinic in Iowa,and currently operates two Airport manager."We had 4,510 total revenue passenger enplanements;that Is a record for American major outpatient clinics in Dubuque,its"East"and"West"campuses.It is affiliated with Mercy Medical Eagle in Dubuque,"said the manager."American Eagle averaged a 79.82 percent enplanement load Center-Dubuque,and also operates its own HMO,Medical Associates Health Plans.Affiliated with the factor.Load factors are determined by how many revenue passengers were on the plane versus how Finley Hospital is Dubuque Internal Medicine,which is Iowa's largest internal medicine group practice many seats are available." In the coming years,a$23 million new terminal will be built to modernize clinic, and expand the airport. Highways: Mass transit: Dubuque is served by 4 U.S.Highways(20,151,61,and 52)and 2 state highways(3,32). In Dubuque,public transportation is provided by the city-awned KeyLine Transit System.KeyLine Highway 20,is the city's busiest east-west thoroughfare,connecting to Rockford(and 1-39/1-90)and operates 4 bus lines,downtown trolleys,and on-demand paratransit service throughout the city.Most Chicago,Illinois to the east,over the Julien Dubuque Bridge.In the west,it connects to Waterloo,Iowa. lines run in a general east-west direction,moving passengers between outlying neighborhoods and Highways 151,61,and 52 all run north-south through the city,with a shared expressway between the three for part of the route.Highways 61 and 52 both connect Dubuque with the Twin Cities(Minnesota) shopping centers and the downtown central business district.The system has 3 major transfer stations: Downtown Dubuque(West 9th&Main Streets),Midtown(North Grandview&University Avenues),and to the north,with 61 connecting to Davenport,Iowa(and 1-74/1-80),and 52 connecting to Clinton,Iowa the West Side(Kennedy Circle/John F.Kennedy Road).Also of note are ongoing discussions about to the south.Highway 151 connects Dubuque with Madison,Wisconsin(and 1-39/1-90/1-94)(via the extending passenger rail service to Dubuque on a proposed Dubuque-Chicago rail line.The proposal was Dubuque-Wisconsin Bridge)to the northeast and Cedar Rapids,Iowa to the southwest.Dubuque has 4- one of 10 major projects citizens identified in the"Envision 2010"community planning process. lane,divided highway connections with Cedar Rapids,Davenport,Madison,and Waterloo. Iowa State Highway 3 begins in Dubuque along a shared route with Highway 52,and connects the city with central and western Iowa.Iowa State Highway 32,locally known as the"Northwest Arterial,"acts as a beltway for parts of the North End and West Side.Eventually,this 4-lane highway will be extended southeast,to connect with highways 151&61 near Key West,Iowa and the Dubuque Regional Airport.This section will be called the"Southwest Arterial." Felderman Appraisals,Dubuque,Iowa Information gathered from...emus sources Felderman Appraisals,Dubuque,Iowa Informallon gathered from numerous sources COMMUNITY INFORMATION SHEET—Dubuque County,Iowa COMMUNITY INFORMATION SHEET—Dubuque County,Iowa Dubuque County, State of Iowa, United States of America Townships:Dubuque County is divided into seventeen townships:Cascade,Center,Concord, Dodge,Dubuque,Iowa,Jefferson,Liberty,Mosalem,New Wine,Peru,Prairie Creek,Table Founded 1834,County Seat located in City of Dubuque Mound,Taylor,Vernon,Washington,and Whitewater. Area:Total:617 sq mi(1,598 km2);Land:608 sq mi(1,575 km2);Water:8 sq mi(21 km2), Major Parks:The Iowa Department of Natural Resources administers 3 parks and preserve 1.36% areas in the county:Little Maquoketa River Mounds State Preserve,Mines of Spain State Recreation Area/E.B.Lyons Nature Center,and White Pine Hollow State Forest.The Dubuque Population Estimate as of 2006:92,359 County Conservation Board administers 11 park and recreation areas in the county:Bankston Dubuque County is a county located in the U.S.state of Iowa.As of 2000,the population was Park,Fillmore Recreation Area&Fairways,Finley's,Landing Park,Heritage Trail&Pond, 89,143,rising to 92,359 in 2007.Its county seat is the city of Dubuque.Dubuque County is Interstate Power Forest Preserve,Massey Marina Park,Mud Lake,Park,New Wine Park, coterminous with the Dubuque,Iowa Metropolitan Statistical Area,and is the seventh largest Pohlman Prairie Preserve,Swiss Valley Nature Park&Preserve,and Whitewater Canyon Park. county by population in the state.It is named for Julien Dubuque,the First European settler of The City of Dubuque and other towns in the county also operate public park systems of their Iowa. own.(See Parks in Dubuque,Iowa) History:Early history:Dubuque Comity is named for Julien Dubuque,the first European settler Major highways: U.S.Highway 20, U.S.Highway 52,U.S.Highway 61, U.S,Highway 151, of Iowa,and an early lead mining pioneer in what is now Dubuque County.Dubuque was French Iowa Highway 3, Iowa Highway 32,and Iowa Highway 136 Canadian,and had(by most accounts)a friendly relationship with the local Fox Tribe of Native Adjacent counties:Clayton County(north),Grant County,Wisconsin(northeast)across the Americans.He and other early pioneers established a lucrative mining and trading industry in the Mississippi River,Jo Daviess County,Illinois(east)across the Mississippi River,Jackson area.When lead deposits began becoming exhausted,the pioneers developed boat building, County(southeast),Jones County(southwest),and Delaware County(west). lumber yards,millworking,brewing,and machinery manufacturing to take its place. It is one of Iowa's two original counties along with Des Moines County;both were organized by the National protected areas include the Driftless Area National Wildlife Refuge(part)and the Michigan Territorial legislature in 1834.The city of Dubuque was chartered in 1833 as the first Upper Mississippi River National Wildlife and Fish Refuge(part). city in Iowa. Economy:HistoricatlY.Dubuque County's economy was driven by heavy industry,including, Law and government:Dubuque County is governed by a 3-member Board of Supervisors among others,Deere and Company,and the now-defunct Dubuque Packing Company.However, elected at large.The County Sheriffs Department is responsible for law enforcement in all areas within the last 15 years,and especially within the last 5 years,the economy has diversified a of the county,especially those without their own police departments.The Sheriffs Dept,is great deal.Now,alongside manufacturing,that still employs thousands of workers,many county located at the Dubuque City/County Law Enforcement Center. residents work in the tourism/gaming,health care,education,publishing,and financial service sectors. Geographic features:The county seat is Dubuque,Iowa,which is located along the Mississippi River in the east-central portion of the county.Eastern Dubuque County is markedly different The county's economy is largely centered on business and industry within the City of from the western portion in that its topography is very uneven.The city of Dubuque and Dubuque.With the exception of industrial areas in Cascade,Dyersville,and Peosta,almost all of surrounding areas adjacent to the Mississippi River have many steep hills,bluffs,and ravines. the rest of the county is rural and agriculturally-driven.Some of the key industries in Dubuque Also,the eastern portion is more heavily wooded than the west,which is mostly rolling County include Deere and Company,Eagle Window&Door Co.,Flexsteel hrdustries,Thenno- farmland. Fischer Scientific,Mi-T-M Corp.,A.Y.McDonald Mfg.Co.,Matter Mfg.,Georgia-Pacific,and Swiss Valley Farms,among others.Besides industry,large numbers of people work for the Dubuque County is widely-known for its impressive bluffs along the Mississippi River, Dubuque Community School District,Mercy Medical Center-Dubuque,Medical Associates, which run along the entire length of the county's riverbanks.These form part of Iowa's Coulee Finley Hospital,Prudential Financial,the City of Dubuque,and Cottingham&Butler. Region,otherwise known as the Driftless Area.During the last ice age,much of the Mississippi Valley near Dubuque County was bypassed by glacial flows,which flattened the surrounding land in eastern Illinois,Wisconsin,and western Iowa,leaving the Driftless Area unusually rugged. Felderman Appraisals,Dubuque,Iowa intonnathm gathered from numerous sources Felderman Appraisals,Dubuque,Iowa Information gathered from numerous sources COMMUNITY INFORMATION SHEET—Dubuque County,Iowa Growth: Dubuque County has,in recent years,enjoyed tremendous job growth,low unemployment,and tine rapid expansion of business and commerce.Alongside these positives, the county is beginning to see a growing population,as well.Up from a recent low of 86,403 in 1990,the population is now about 92,000 and growing.This can be seen especially in the West Side of the City of Dubuque,and in nearby Asbury and Peosta.This fact is especially significant, considering that all of the counties surrounding Dubuque County have fewer people now than they did in 1900,with the exception of Grant Comity,Wisconsin. Historical populations: Census Pop. %± Census Pop. %± 1900 56,403 n/a 1960 80,048 12.2% 1910 57,450 1.9% 1970 90,609 13.2% 1920 58,262 1.4% 1980 93,745 3.5% 1930 61,214 5.1% 1990 86,403 —7.8% 1940 63,768 4.2% 2000 89,143 3.2% 1950 71,337 11.9% Est.2007 92,359 3.6% Cities include Asbury,Balltown,Bankston,Bernard,Cascade,Centralia,Dubuque,Durango, Dyersville,Epworth,Farley,Graf,Holy Cross,Key West,Luxemburg,New Vienna,Peosta, Rickardsville,Sageville,Sherrill,Worthington,and Zwingle. Colleges and universities include Capri Cosmetology College,Clarke College,Divine Word College,Emmaus Bible College,Loras College,Northeast Iowa Community College,University of Dubuque,and Wartburg Theological Seminary. FeWerman Appraisals,Dubuque,Iowa Information gathered from numerous sources Retail Trade Analysis Report 1D-Year Summary Retail Sales Tax Statistics Fiscal Year 2014 Real Thal Taxable Sales in Dubuque County aai..n v Iowa State UniversRy n Department of Enancnni. � � nm w mr ,v w mo ma ma ma nu Overview "Tw""" Annualized Number of Reporting Firms in Dubuque County .. .a..o�.o. ... .. '1'tiarepmtam®®bda�t domdrelat:demv®ietrm6m uubwm Cc .i uh%avadzpd mwnaveealmmamammema ww..e.aa.a r '1'hen�lamattssubudmmte-rcP.�tWaafP�uaa mdemimthat -�___.-. __. a.xrnmywam n me wbleRblowa4 ah2widerlatex Pl�n3waa the Oad Nm[e Yna Lmf aaaa itca aem®taeddatdim(mmatimaboutaM KwatredilamriKimeL,dd'v, sw vss wrw>t.a. ymhleda.'n,eLdmmualaomelmdedefivmouaMeea.�°•ntm wn.a.a at" u.Ne.ao_mw ... iutapretivgadal meaauav avd mhavd'uamnmtbisaeP.ae n,�' m= af+a m�m,.ww b@,eryxwhaeothwiwnuwdwasdeudadbP^�9Yembaweb® o..x® r adjua[ed(mmasaonemdere wawdiu Fis®IYmawgdoWeegmvdeaa. ^m�Raav,W.�.. a '1'heawgfiamltrsebepm®riha am}avdaded®)twep�amq. rw rm rm rm rw mo m, ma vaa me T Key Retail Indicators for Dubuque County Taxable Retail Sales Per Capita ebow Datwa•m.mm mawia®Nawx,g� vpaxan,ass tmasasaa aax a�..w� xawaawwomnvnnaaaaaave zwa Gass -vaw ra ......o•.w....a.de... vaomaw, ss3m saaw not wavewxesrvox.g� vmo vaan aas ♦ mm ----------------------` m....vv.n,.m xxnna aw.av vvr ♦ ''anw vmm x.�mv�'......rm.a.we.a.u,wemra•.v.�.+mma..m.am,�wwne ___m••• wa yaaa w,a wa �v, un .a. aa�aa ,ua wss awm rebvaw,mts wmw,aere,wn�. e+v Local Economic Employment Employment Trends Area'ab tr mrnhr Population l �a , (Annual FmpbwnrtraPmmrnydaau FmpleymeM) PopularmachangeuakeyfacterPopulation Trends opportunities for cement rrid®m ssprc influencing local eruni min parnusl Emmsmsm•parrents,dmW Populsannl and also helps to attract new performance.Prom oneyeazmthe r.a rrtdermmthers ion.Criminally, marc rant,area Population gains or hmer lagging emPloymmt growth rates one may indicate a decline the alter the ion In o e longerwourmt rImPPMs in the regiov. In the)auger term, son region's comRtititT s,treogtb. max .— .....—.....—.....—....—....—.... —...—...—...—....—....—.....—.....—.....— population horde reflect the general economic direate of the region. sox .-«•- The chart at top eight allows the m- sox Population growth wggests a more year trend in noefazm wage and mM mm mac mm mM sore mm son mu ane fawmbin retail mvuonment,while osa salary employment m Dubuque —cuwsu.mwer ssweriw population decline may be an mm mm mm mm mm mm mm son mss mu County compared to the state.The indicationof.economiesheM. �mww.crwv smawioa number afj.be in each yearn The top cbartaz right.hay.annual expressed in percentage temm population eetimatm for Dubuque compared to the number,adjoin ie Relent Job Gains or Losses County and the Rate indexed to the beginningyear. (Change from same Wall In Mor Year) baseline values from ten years ago. Population Trend for Peer Counties The middle dullish.more tam The population in anygivmyear u (Annual EsarMr.s.PmclabW dma3 Population) trap expressed in percentage terms rtuc ..� Dubuque Conly The then as comparedto the line population. illustrates the numeric I ' I gain car how an The middle chart at right compares in Jobe during Deal Year.4 on a s00 mo Cpopulation chingehetren(Dubuque son month-by-mouth bags,xith each 0 County to the trend for stmilaely-razed month's employment compared to counties in lava.gee Page..for mss '�I 140 ...._...._..._....._...._...._...._..._..._...._....._....._....._ the nme month Nth.Prim ford list of counties included in the peer group for Dubuque County. mss a. _ ,� ff a` g $ i mss mm mm mm mm mm mm son mss mu —asw..murey vmromvawmm aawxmurev Unemployment Personal Income ]tivng or pertstently high levels of The local demand for retail goods and unemployment may contribute servicr also depends on the income levdofamresideam Perapim household er°°°sone a°'ra"'th'" Unemployment Rate nonfarm personal income provtdma Real Nonfaml Income Per Capita($) the regien and may,dtimamty ( A. reduce.�egate household r.0 unemployetl Perortlage dthe tabor Fume) the region. of the income includes n lu0 spending levels. ap the region Nmdarm income includes arum i so wage and salary--u ofresidwa, //\ The clmmazright show.recent A0 income,self-emaid gntinmentms%innsfer t nam \ / Dubuque County and statewide income,andhe chaimerrtharmfer ro payments.The chart at tight unemployment ince trends.The zo dlusbuten recent,ieflationadloeted arum un®ptoym®t race is definedr to average nonfarm income levels,in thep.r*.Mte.dthehborfrrce no Dubu Com andthe Rate. A. that is unemployed but actively mss mm mm . my mm mm son mss mss 9me ty am. rpm mm am sops mm mm mss son my seeking work. —awou.u.* serer. —mwauumumy sr.wrr FYawgH sallTMeAmllvla6•yort Pag3 L4UOeprrmmt dLeonomlra Page4 Peer Group Analysis Expected Range for Local Sales Per Capita Iowa's 99 countiesvary in the level and types ofrerail ardvitymeyean support A given county's retail prospects depend not only on its own population sive,but also on the urbanization patterns and competitive ch,.a,nmtaao of the surrounding The chart at sight compares sales area.With on two oflawa's counties exactly alike to these respects,how might a particular county benchmark its own retail levels in Dubuque County ma performance?Peer group arelyals,which involves comparisons among a group ufmuntiea sharing similar xha.xmordwia,ran cause of"eapeded,'or typical, Expected and Actual Sales Per Capita)) provide a rneomble basis for evaluating local retail Performance. values for countries in its peer vPaO In general,a county.retail nectar size and diversity tend in inersewith the size and density ofits population.Metropolitan gyp' mantles,for evmple,have access to a large pool ofpoentlal customers living within a geographically concentrated area, The blue rectangles Moscate the allowingthemmoffaawid¢rangeofre dVodsandamv d=moatemaaarcounti mppprC Thedivmutyof range of expected values,defined their nail offeringgtends mattraRnwmall coniesmair shoppers in rural geographic arse oftanazthe sevpevedyloal the permaweenlhea5lhro I_l — counties ivoutlying areas.In contrast,small ron�mmruralaremtend mhave retail sector that eerre Prhnarily local the,95th perceedle values fm the upon markets. pearpmripmeachyexr. This retail analysis report season all counties in Iowa m peer groups based or them metropolitan in emempoatan status and The red dashes show the actual am otherpopulamencharecterietica.Metropolitmmadmicalarve(MSAs)aredefinedarmtndacoredtyordtivthathave per capita sales p.•0`.m..r.by 5o,000 in more readmts Iowa has nine MSAs defined around ten core cities.These MSAs contain lir ofthe state's 99 Dubuque County. counties.Mhxopolitanstatistical areas represent the next level down in the urban hierarchy Micropoatan areae are defined In Fiscal Year mul,per capita 10 '000 nm Free nm ran Fres Frio Fm Fur For rvu around core cities with wpm m 49,999 residents.Iowa has 15 micropolitan statistical areas. sales in Dubuque werew'rhin the The county pear groups are defined in the following table,with the relevant peer group for Dubuque County highlighted in ecpp—drange fon its peer group. annual nit -oubuw• blm(uc Pagua forammplK haofinembarcmmtiesbypeagmup).The chartazthebottomofthupagealustrazes the comparative sales performance for all ofthe countypeer groups during Fiscal Year soy Peer Group Definitions Number of %dusts, Top 10 Peer Group Counties Pear Group Metropolitan or MluappgMn Mates_ Carries Yeasble Sales Group Care county of a metropolitan staddlal area Among the in conn°es in its Average Sales Per Capita(S),FY2014 pet orm,Dubuqueranked Group Core munty da miampolitan statistical area 15 14.7% number y In per Capita saka. Unn r6a32 Group Non-metro county whose largest city is between 2,500 to 9,091n population 43 14.2% The pre,group'.top Polk War Group Outlying(nnate)county In a metropolitan statistical arm 11 4a% performer,measured by their woomury 15,421 Group 5 Non-metro county whose largest city is less than 2,500 in population 20 24% average adv per ceplrain son W14 Fiscal Year x0µ,are hated in the table a right palls 14,1ai Aho included for coapacleon Mack gaww 13,714 Average Sales Per Capita by County Peer Group,FY 2014 are the average value for as cubism 12,910 countiesinthepeergroupand Poew.nini. 1,250 Nese overall statewide average Johnson 12,229 ••••••••••••••.. ............................................................................................................. per topica sales. %W 10305 Per GmuPM2r#e imn See Pages..-.for a mmPlere 1irdiry.fmrmNesby,vergroua, Stilealaea 11ys Srb�bw awpr ®oyr aws, ®ey4 tleys 915W .ow, albs,ms, nit ream .aWraY MN ft. ,yap d7ap We dye, FVawgH aallTMeAvillvba,ort FW5 MUOeparimentoflimamoira PW6 Pull Factor Analysis The Pull Factor Ratio Thu section introdum three related me move,for aeveniog retail sales peas.amonce:trade surplus or leakage,trade area rapmac,andthepugfactorrado.All threemeaaersairebased mahypothededa eJfauffidme ,+'levelofsalesawhich the Acountedy's by pull ratio is pull factorratios totemmay eves Cartoon startedsulle county's resa sector atisfiee all niche retail ureas sires own residens.Thu hypothetical sales value might also be vieweds calculated by dividing its Rade area from one comrtymthe nerxt,sora interpretation of pull factors, breakeven°level where arty sales lost,finest mer-local spending by residents are exactly offset"n to mneaddlents. capture measure by its resident among those to the same peer especially for smaller counties. population. group. limanyparticulareounty, For example,a high pull factor Trade Surplus orLeaka a Apullfactor ratio equalWLo a comparison with the peer group's doesntnecessarily indicate retail B median pull factor value providesa auggmtsthatthe county's merchant ofretail silex. counall categories Trade surplus m leakage measures the dollar difference between the couvry's acetal ds and the total des a could gmeram if reasonable performance are jus[satisfying the retail demands could it sales.ed by the presence factor residents satisfied all then nail meds loragY,Le.its self-sufficiency mbreakev®des level.Salm above the breaker®level oflool resident.Thttegtvalmt benchmark could be inflated by the presence of implyanet surplus from sales to non-resident.Adeficit gllggeers net leakage from local residentspendingin other counties. tothelreak even"des level where The chart below shows one or more retail establishments ]M:low are rude snrplusmleakage estimates for Dubuque County.Toesematethebr kevenle lofdmtbedollaramoumof the county is experienang neither a trends in pull facmr ratios for that serve as a regional draw in statewide average per capita spending on taxable goods and services is adjusted up or draw by a Averse that refieUe local income surplus or leakage ofsalea Dubuque County and its peer particular sales category,even lithe ahamRuistics,and is then multiplied by the country's population size.The breakeven asks target represent an estimate of group.The cauntys pull facmr comity,u erperimang substantial Dubuque County residead total spending on taxable goods and services that are purchased anywhere within Iowa. A pull factor ratio greater than LO values are Indicated with red leakage ofealsmother retail suggests that the county's merchants are attracting shoppers from outside circle.. categories. wbuaueexa4ww auaMb ems free Are] fres even mo ms Has Fria res the county. For example,a county The blue dashes indicate the Similarly,a low pull facmr don out nmeade waasa are xgsaamdia In 'L. 11m69 11935 11&40 11,997 11,240 11,31a 11A51 113as 11m65 whose retail customer basseeiss 255 median pull facmr for the peer necessarily suggest untapped des ilc[vIM[onrodfuarmant 0.99 0.99 im 0.99 0.99 use o99 "a "a ass percent larger than its population glmtpineachyear. Ifthecounty's potential in the local retail sector. =A,eraaa apexina lash ere)or midena el 21,&41 1Lns 11901 11978 1La96 11,073 11,1,6 11,371 11%9.3 12,350 would have a pull factor OFL25. pull factor exceeds the group Most small Counties should expect xtbunypapul radvwr 90,616 9". 9L690 91325 91734 93,018 90,270 94.761 95,380 96,201 LO medum,it ranks among the rap m lute a at least a fiaCROn aftheR Apall esthatthe leas than =lrxann xlxuamaamal Ip13,633 1p91,993 1p91,z13 1,m5,154 1,10x,3m 1,030Am 1,OI6A]9 1,m],559 IA]x.3911A91,095 half Of it peer group. If it prlll residmt'epmdivgm nearby indicates e8 that the coumty'6 retail Mualxb 1A31,120 153900 1,251,429 1 Oe0 195690 1,191,033 xx 1,258,11Z 1,242X7 200 factor ubelow[he median Value, metropolitan and other largC Rade sseems cannot satisfy all of the serail wrelue mnmmel5omsl 15]A8] 161.907 1m.t07 133.22e e3pe3 ts]aat 1]5,]95 fosse t]op]e 349s4s needs of it own residents. filen nrards among the bottom Cofer Cnn°Res' wkxesetimelel50mal half ofcounties in it peer group. Trade Area Capture caPull Factor Comparison With Peer Group Thestent county's geographic 'Rade arra"can13e approximated by Estimated Trade Area Capture estimating the number of consumers (arraigned number 0 shoppers) 1.11 _• _ _ whose annual retail needs it satisfies. T T • • • _ s If it=number exceeds the resident 9raakevm lmo ------------------------._._._.__._._._..._._._._._..._._._.__._._._._.__._...................................................... population,the county's trade ansa man gkely extends beyond is borders.If — — — — — — — — 075 below,the county's rade area likely some overlaps a"submtmed by that are am nearbycounty. omen 0.t Tawe area apture u estimated by dividing the county's actual total dee by the expected averageannual retail onesresnii am elm Ams rem woe rem Arlo fru fox wu res tart of ire residents.The - •'^sem° wpw wtw w., uesae rotes 40+40 rep. axsw worn :xpx -sera n3erien u] u] Lis Lis 1x3 1.0 2.11 1.a 1x1 1.is wmm chart at right illuatratn the couoq'e . sww awn sew urea vre3 sws son sem. sire sago. eWeugx vss vss vss vss ore vss 1.n 1.n vt 1.14 trade ars capture s relation,no is population ase. FVawgH sallTMeMilxala6 yort page) L4UOepanmmt ofLeonomlra Paged Regional Competition Area Commuting Patterns Counties within a region compete with each other for shares of overall regional economic activity.This section explores,some of the competitive farm at work in Dubuque County and surrounding connotes. Forst Mustrated is the county.relative Worker commuting flows reveal Worker Inflows and Outflow,2011 importance an a trade center within the note.Need,the distribution of trade among tithe within Dubuque County is assessed. tmportsnt regional econovdc On the following page,Important inneractiona with surrounding cities and continues are examined using data on worker relationships that may influence the commuting flows.Finally,retail trade pattens in the broader region are illustrated by computing average per cupim sales and cmmty's retail performance. In pull factor ratio far by commies. particular,the propensity ofmide nts m out-commute to other cooties for work 36.175 Role Within the State Dubuque County PercentageShams of9tatreldeTotals may represent sources ofpoten°alsales leakage. The relative contributions of Dubuque County as a trade, 3.5% 34% The cep Chart at right displays works, r� DNngebewhere,enlpIoWdln Dubuque population,and employment cents, 3'1% cmmmuti g flows into and not of Employed and IIw%in Dubuque within the state of Iowa are Dubuque County. The commuting flaws M Was In DWuque,employed elsewhere Illustrated a right The left-moat bar are determined from the locations of shows the percentage ofsotewide residence and employment foe wage and notable.4.incurring within salary workers in the region. Dubuque County.The middle bar When reddmno commute elsewhere for displays the county.percentage Tumble Saks Papulzion Emplgmen[ shareoflawa'spopuhtion.The right wmk,theeciallyduringhat ehditey ionlll Where Dubuque County Residents Work: -most bar.shown the percentage of !orally,especially during traditional percentage of Residents by Their Workplace Destination the state's jobs that are located business hunts,decreases.The county's within Dubuque County. overall rare ofout-commuting is Dubuque County Jurisdictions Reporting compared to the average for similarly- Top Counties: Taxable Retail gales In FY 2014 sized counties below.The rates express Dubuque,73% Other Trade and Average s.ks the percentage ofwork;ngresideruxwho Population Centers Within Mee Name Population guile; (fimlllma) commute to mine other county for work unn,5% ' Dubuque Total 96,201 2,716 1,240.1 Sc ,4% ' the County Asbury 5,310 10 OA Worker Out-Commuting Rates ott The table at right Ran,thin,within Renard 110 23 1.2 Dubuque County 17.2% other[ouritles,l9% Dubuque County that reported Cascade' 2,232 128 26A Dubuque 58,283 1,981 1,066.0 Peer Counties 3x7% mobile sales during Fund Year,corn,. Damon M 24 2.9 Data for cities with in or fewer prmdt Dyersville' 4,103 254 81.9Top Cities: holdavfilinRwloitatu nreare Epworth 1,969 57 7,3 T�bem caolhaftazrightidantifles the suppressed. Bales amounnfrrthour Farley 1,606 61 8.7 top three cunties and Imes attracting Dubuque,58% smaller jmvdicdons are included Holy Crass 377 29 3.11 the greatest number of Dubuque County within the anther arae in trimly" New Vlerm 431 31 7.1 woken inion.The chart mea.mes the Cedar Rapids,4% values. Pemta 1,s" 86 19.3 percentage of employed Dubuque County Davenport,3% Sherrill 176 21 2A residents who cdmmgte to the given Amounts shown Ear each city reflmt Worthington 406 25 10.3 destinationfor work Other[RIes,35% the population and reported sales for the city as a whole,regardless of whether it mosses into a neighboring county Anycitiowithreporting firms that fill withlat a neighboring Note:The mmmming chart on thupage are baud on aou worker mmmutiigffow dampub8ehed by the u.&Comma,Hunan.In county are indicated with an asterisk CJ,and the neighboring county'. other arms In Dubuque County 19,490 44 9.0 eau.of.ma0place-w-plam mmmudwfiowe the C.Bureau A.the dam in under mproret the confidentialityof4Wividual pmtiun ofealee tfuny are notes 'Neighboring count,portiorn (55) (5.3) warkersand/orluaivaefiwu.Th fw%theacoaiaittarWdestinado ofMe nty'ammmutingautfiowamaydiffegigh*fiam thewhio comm one. FYa Rmli TmdeAvalyab Report Page9 L9UDepurmmt ofoeoaooLea Pagw Historical Trends in Taxable Sales Regional Trade Patterns Regi o..I chopping patterns maybe inferred 11norlalrerail Wee stath nen fm Dubuque County and the Some oflowa are prevented in the table below.All d.U.,,alnea with fit.the relative trade levels in anrronnding County Pull Factors,Fiscal Year 2014 the exception ofacralmltotal sales,have been adputed for Inflation and are shown in Fiscal Yen sr t-equleolmt dogan. .it..The graphics rix the page "NOTE:Valuesfor Final Year aeogand later measure retail activity during a July r-lure P fisW year period.Values for Fiscal illustrate which counties in the legion serve • Yean mos and earlier wax compiled m an April 2-March D fiscal year bash. as regional magnets for retail trade activity. • • The map at right Aboarata county retail • XNwlol Statlstto far OrYap•: pull licorice for Fiscal Year amq(see Page 8 • • • • • • TosiTmblesalea Nl Real avarice sols,N) Summodde Beal sveraee Nl for a definition ofpull factma).The • • • • • Final Year Be,oMM Xms Writes Beef Per Fl. Per capita Per R. Per capita counties with a pull factor exceeding res, • • • • • • 197fi 1173 174,040,601 949,510,539 507,014 9177 363,2M 10,311 identified In The map With large blue duces 19]] 1$62 30314976 995,]33,B]5 507,045 10,484 3]4,51] 10$19 • • • • • 1978 2,079 349,310,61] 1,0)2,785,991 516,135 11,413 368,990 11,161 are likely anscru in strongretailinfluence • • • on trade centersin neighboring mantle. 1979 2,151 389,022,795 1,109,863,054 536,095 11861 3]4,22] IIpfiO Counties withpull facmn helms r..are • • • • 1980 2,192 422,979,290 1,093,517,031 498,867 11,687 367,085 11,628 leaking sales wacounty-wide ham,but 1983 2,233 424$38,018 995,612,690 446A11 I0,659 326,6)) 10$58 might still contain One in cause strong local 1982 2,196 425,035,038 934,22],980 425$]4 10,083 314,117 10,161 crude cm0ay. 0 L-th-05 a oasoin •p,I�,ar:hf 10 1983 2,256 432AT71083 905,559,594 401,356 9$35 305,351 1010" 1984 2,323 950$31,281 905,144,666 30,159 10,073 399,080 9$61 1985 2$82 458$29,601 891,905,972 374$15 9$82 295,755 9,937 1986 2A05 476,717$67 8%,998,549 373,882 10,166 289,931 9$22 The bar graph below compares Fscal Y. cri,per Apia sale,in Dubuque County to average sales in neighboring 1987 2A25 500,07,863 923,869,139 381,056 10,565 306,594 10,350 counties.The comparison group includes the fw counties nearest to Dubuque County,with distance measured'as 1988 2,021 532,984,704 948,387,733 391,693 20,871 308,087 10,407 the crow gied'between county midpoints.The counties are listed from left to right in descending order by them per 1989 ZM 552,400,874 941,974,318 382,747 10,828 313,156 10$01 capita Wes Population sizes for each county as ofthe aero Census,are also indica1991 2,0822 fi1612,067,659 962,516,"938),838580,912,666 1990 ZA580$12,666 952,491,3% 385,741AU 11,005 317,313 10,505 11,098 318,617 10$0.5 1992 2$36 M7A30,816 992,132,316 391,258 11,361 319.075 10,637 1993 2$71 685,364,]1] 1,022,613,974 397}27 11,625 319,359 10,]]0 Neighboring County Comparison of Per Capita Retail gales 19M 2$19 711,72,975 1,039,295,405 mi am 11,749 326,139 11,002 1995 2$18 778,315,153 1,112,021,759 429,744 12,523 332,925 11,225 $12110 1996 2$84 800,495,892 1,121,597,782 4MA97 12,6M 333,866 11A75 1997 2,621 814,089,200 1,117,527,230 426A15 12,550 350,982 11,063 1998 2$38 832,202,405 1,129,302,031 418,171 12,705 353,310 111% 9,331 1999 ;674 881$89,719 1,184,974,769 455(55 13,335 378,103 12,363 2000 2$95 923,934,608 1,216,066,660 468$74 13,653 385,324 12,420 hrC,U 7'158 7.056 BA51 2001 2$94 946,151,754 1,215,831,051 461,0" 13,651 386,171 12,457 yb N) 6,270 2002 2$77 946,236$85 1,201,004,197 466,093 13,490 387,532 12$10 2003 2,414 959,935,236 1,195,"7,563 495,10 13,346 404,70 12,167 20M 2187 993,191,035 1,212,390,349 508,020 13,"6 411,887 13,050 2005 2195 1,035194109 1,231120,205 514,091 13,586 430,MB 11180 2006 2A38 1,086,906,276 1,353,899,699 514,315 13,777 421,049 121069 2007 2$97 1,109,0171" 1,251,429,419 481175 13,6" 413,218 11,935 2008 2$51 1,132,135,7" 1,239,079,631 467$57 13,421 413,841 12"0 2009" 2,]]8 1,105,824189 1,195,690,399 430,053 1;896 405,766 11197 2010 2,796 1,113$90A60 1,191,833,328 426,226 12,758 389,751 11,240 2011 2,70 1,162p99p17 1,222,668,649 "2,195 12,983 404,311 11,318 £ 2012 17" 1,225,151,160 1,258,111,918 458,245 13,2]] 412,476 11$51 2013 2,70 1,227AM,232 1,242,827,012 "9,811 13,030 407,03 11A25 2014 2,716 1,240,664$93 1 40,664,593 455,798 1;910 424,500 11$65 FVawgH aaBTMeAval3v�aH yort Page. M DepanmmtofLeonomla Page. Sales by Business • e Per Capita Sales by Business Group Areae ofstrength mwmalmess in the local retail smor may be revealed through a comparative analysis of sales by specific The than,below compares actual pe capita sales by busioes group io Dubuque County with the median value for an at types o(bandm en.The following table presents unable sales sndttairs by business group for Dubuque County me[ropontan counties nd Iowa lose table on previous page for undnlymg dam).Dubuque County per refund values are shown with red dare.The metmpolitur median value.apps.blue dash..Cmmty data are suppressed fm any bu®nee, roure The cap section shrove the annualized number of reporting firms(average retrmis filed per trances).taxable sale,and average that did not meet a minimum threshold for number ofrcporting firms, saleperfirm inn types ofretail businesses The bottom section shoes sales bybusinen group on a per capita bads. Real averaged for the prior 3-year period are provided in identify and ofreceot growth or decline.Median values for similar ultlp mantles and statewide averages For the current fiscal your are also provided for berchmaeldng purposes.County data are • • suppressed for badness groups that did not meet a comma ,threshold for number ofreporting firms. Sale by business group should not be confined with sales by merchandise category.The business group dale data reflect the broad random classi0cation ofthe firms mitring the sales,nit the specific goods and services thatwere sold.See Pageryfora .PN.Pv6pb • • moredeWkdnstofthetyp.offir ffi,ludedwthineacbbuein.egroup. nedon.fl.n • • • •a,mwem • ago, Dubuque County Taxable Sales Summary by Business Group • T Total Saks and Average sales Per Firm Dubuque Countyf 14 iotas Avenge Saks Par Fbm lSl Reporting Dubuque sum of $0 pIr_ Type of Firm Total said.($1 Flmre County Iowa 3 _r @2 2MA 3 Apparel Storm 33,594,310 57 594,590 667,866 Building Materials Stores 100,069,428 43 2,327,196 1,675,685 F Eating and Drinking Establishments 131,945,578 263 502,650 509,700 Food Stores(excluding non-tamble food Items) 102,464,826 98 1,045,559 985,917 General Merchandise Stores 188,261,433 23 8,097,266 5,894,287 Distribution of Taxable Sales by Business Group Home Furnishings Stores 52,302,143 78 672,696 774,098 specialty Retail Stores 103,340,664 428 241,733 196,805 The following chart illustrate the percentage distribution of Dubuque CourdWs total taxable sales amvw the major retail Service Establishments 192,586,06 1061 181,694 155,506 busmeegroufs. Dubuque Counryvalun are shown with red dotted hoes. Statewideaverageeareshownwith Muebara Miscellaneous Retail Firms 68,141,766 347 196,374 229,431 Countyda$a mppreseedfbrmybudnessgmupethatdidnotmeetamiaimum thresholdfmnumbn ofreportiogfrmd. Automotive and Related Stores 68,901,818 74 92],9]1 715,125 Utilaie and Transportation service 65,372,129 85 ]]3,635 94],]04 Psavitsealliawtldals Other 133,583,862 161 828,427 835,504 Was 1p% ns A,mni ............... Avenge Seim Per Capita Dubuque County Trends Benchmark Vokejor M4 aullalnsmarertal. ............................................... Real per coplta avenge($) Metropolitan sate of Eating and ortnsua Typed FineStorm FYII-F340 F350 Merged Iowa Apparel Stores 340 350 377 337 cera asides ...............................................- Building Materials 5torm 1,497 1,041 495 819 General Merchandise ••• ............s Eating and Drinking Establishments 1,453 1,373 901 1,235 aDdbuwera. Food stores(excluding non-taxable food items) NA 1,065 919 1,018 Hem.Ponied.Go ........................ a so[eMtle General Merchandise stares 2,322 1,959 1,778 1,500 spmlalry .... Home Furnishings stares 595 544 292 390 Specialty Retail Stores 1,169 1,0]5 515 894 risen.sensors ..........• Service Establishments 1,909 2,005 1,447 1,577 M4cellaneoueebll ....... Miscellaneous Recall Firms 744 709 709 904 AMnmonw Automotive and Related Stores NA 717 493 550 Utilities and Transportation Services 737 680 670 1,124 UNHW&TwnworMbn ........................ Other 804 1.390 784 1.217 It,. ............................................................... I FVawgH sallTMeAmlrvlaH yort Pwe MD.parrmmtofLeoaomt. Pw* Statewide Average Per Capita Sales by Detailed Business Type,FY 2014 Consumer Bvdvew Typeavd Pee Capih Salo(9) National Spending Patterns by Apmrsl O.rp $M wlvkW a.w 1,577 Income and Age D.S.consumer spending on GMected Gaods and Semens clothing and Claching Aa.omm Soma W Nita with 325 ('gnTlmm,spending pal[@na-U with if.age, T%R ere TB Me In lesions,by type of consumer Sme stem 0 HateiaaMalGNerl«IgingR. 270 jn[ome level,and other Clfda'dC[V19t1f8 of the Olxneua1ess9mAcea Ice PesenwoofperapW eaerge aulgn.tlea ab aalateanmr ssa Arnma Ememinmem l7s conoum..The chart at right illuo.ates diffaenco Mlrnmunen tun Now..it ossa CerDWlers 266 6oury/aeerama Inits in U.S.rowaam.spending on a selected bundle of 7wcroconePam end A«mmdes Ito Mbcellanepu Rewln an goods and services that are ramble to Iowa.'rile Iawen2fmaf M1wnMala�aM 072 Rroeamnal anaulmmrMntadrta vehalea 74 GnroR aanalxrvhas, IS retail bundle includes food a way ft.home, Thrim% as Au[q Rotel antl Stem¢ 54 tele[ommmlicatiom services,household supplies and Fouts m% las guaaq MaMam Gmup Mothe AcdreandMdeamaWrlss 51 flnmebang9,apparel,em04dlnm0lt,aummobde Highest m% 152 gulldliMMe2rlamMkn no Laundry and Floor Ckaning 46 repair and marn[minR'and pC[90nd18¢I.. Houahgtlerunderapmmann HaNwart Stnm JI. Finan Insurance,Real Fatale and Leming 39 In the chart, arcual average spending levels of 25-34yean 86 GaNen$upplykom A Electronic and Pretlslon Equipment hour B Maintenance 3T35-44yot a8 Peln[entl Gkaaftaro m On«SeMoa 30 continuum within each group are CtpRa6¢d i9 455 yon un perrentages ofthe aa-[m.umer average. Differences 55a4yea. 124 Modk Home Dealers 3 Novel service and Crematories 23 are countapparent house oldby umbare incons, file spersonsnding 6syears«olaer 11z 6awamana AnleM Evemi 20 ratlq.M printlryPl.m GwP 1,133 %MneraPxlc SxMlm ss the oohigh[atwice the orpa11R11¢9in the to urban househga I1p1 room an quintile. the person ofending Mthed.to Rural M1auWM1gtl N 1 RMaurznn,Tarema,aM Bars 1]35 Empbymem SeMm 15 UpM1dneryend Furnoure bass 2 income quimde.P.pecans spending also tendam raedomlMGmup Most Watch,Clock Jewelry Repair o rnrl .with household.age'but drops sightly Ornery SbmanlCumenknre Stnm 504 Poutwearandlexxer Repair o among residents ofeld.ty households. Gas SbtlansfiCommulmx Rarea WXM1Gas 498 sperylmmGr«erlea 17 Ml lallw.Gl.y an Dubuque County Profile numNreaMxe.6reaat.rmrs 136 Local Income and Age Distributions General MemmMeaamp vino Geneal Cnntrarmn 127 gee®t county-level statistics may be anted on profile Medl.s Nammeld Income l$1 cadmium wleall..e 0.Partment Rom 957 AgdculWml Pmauglgn and Service; 113 the Income and age distributions ofant residents. Fatima[¢ 51,907 52,286 Mlwlknems MertmndYe Rare 537 On«5peddrande Conna¢ars 123 lithe county devialot strongly from statewide 909iCanflaellcelntarvel 49,320-54,500 51,70-52,8m VaaeryRae, 6 IndunXal Fqulpmmt Manutemmem m abortion—Manufacturers a averages ou them rumored,one might aspect BOme tam PumhhIMAna ApplaaWGmup Foca Minviecturers 53 differences in local residentsspending compared to Appliances and Entertainment Equipment to nemlcal Duragwa ai the average spending levels by 0lona residents. poem,gate Pq Dubuque S alma Fummse Smm 331 Non MIIICPmtlu«Manukcmren 37 The tab Home Fumialtire Rom a9 Fumiume Wootlandle,w Manurxmrcn 35 u at right thrown the rolol}7d lo[diao Fatimah 12.8 ► 13.6 Position;Of boon B Newsparmana Commraal Printen 33 household mcume level and estmtted poverty cafe 909lCnnfltlellcelnterval 11A-14,2 123-13.9 9pCla%YRaYl slap Gmup tYmmWy Contract. 24 compared to the atm.A lower medWL coram[level, omrsoeclamy 216 unaamnea 11 ahigher poverty rate,or both suggest that the Spamintuoads 174 Mlnlna 10 perrentage Ofcounty residents in low income beauty and Rosh(InaWes Pharmacies A orw sorts) In PaIMreCaneacmn 0 bruclRt cameeda the statewide eveage.In these P.pukean CAWi b Dubuque wt cffI. MrectSdbrs 71 ApparelanaTamle Manufacturers 1 rosea compmradvely lower retail Spending levels may Under S years 6.1% 4 6.3% Hobby and Toy 67 be amici . Jewelry 59 mlOYalk Tnmpartatlan Gmup ]wits Pates locally. Age S[o IJ 16.9% / 17.1% aoakaMSatio—riSives 40 Flectriand Gas 4a3 The bottom half ofthe table illuntomme the Age 18 to 24 103% 4 10.3% used!MersmMl.stares 26 communications 390 percentage distribution of the rummy's population by Age 25[o 64 23.7% 4 24.3% Radius,Gift,NoeM m Water and smmamon 1a6 VendOG Machine common a Tmmmnationand Wareh.Wrc 65 age group myPdR'relahverothe comparable Age 4sm6a max ► 26A% UquorSeses 19 stfewtde Pert®tgea.Strong diffetmces in the Aga 65 years and over 253% ► 15.6% Florists to wmlWaa OootlaOmup 1,137 regwtul age distribution likely affect both the mix and levels ofretail ods and services demanded Meclan We 38.8 ► 39.1 Electrode Dalen 1 petell vlW bywM1okuteflrm) 1,217 go by EkmonlCmotors and Mall oder Hoses 1 dr¢d reeidentH. ► HlgM1aaM1en was Annutlmas., 31,565 Lowerthan.rte Fyaoq%MILTMeAoabidilta on Paints L4UDepatmmt of6eoaomlea Page t6 Other Factors Influencing Retail Sales Data Notes and Definitions Inflation Midwest Consumer Price Index Iowa's Retail Sales Tax Reporting Then[.ofuifiadon meaeurea`havers over fimetn (100%•price lewkin ID0541.1) yhe,mfe ofiowafpmatae®the Cmtamaamontivgavdathc . Jmuay4mob.Thewmmtahr the purchasing power ofthe dollar.When price sans gpmre®Wf rob ofravidetmgble admwaramemnmaivmmr,roolm typmofvmgywm mduredm o% levels rine faster than earning.and other hrrnme, pemmalptopwtymdmaablesmdm.hi the uvdc-repmdog or no ryorting of aRaa4-yw.pyaeey anllve. mn.umets may have to reduce or reallonn their "es waL mer�aodim.goodaaretamble Wmad.rtyf inmddud�nmeL epe�allya®Pteaavdurviro • July 4 zone.Iowa's du tar tme speoding. aux areanhle x.pedgmgyemrmvatedby IIncidarre,,n cathemfime%. n Ivmvadr5%ton [h The pace m of US.inflation during the last years is `'``ale. Depaz®mtafgermae mtysepmmdara . Juh4aocg.'Phe tm auwe�®rnr Illustrated at right.Thin chart shown quarterly mw xefailmfik ulmmsretmrumthe lora fiomlmagtic wltha mlvlmum mmmx Iteemueadoptedanewfisealyor changes in the Midwest Consumer price Index for neyemmtofgevmueona.emi- repoovgperindmalignwhhths All UrWes Cmummem,using fust quarte ofzoo5 as ninthly,monthly, nartery,mamwil Sar.SabdatafwlvogtlamtmcMg rote g.aly®rthxruvfiom7ulyr Ihelaonrhmark period. bnW depending mt6tlrammvtofuha. Wl.threYWdkrelareeepoe[ed(the tmoush Juved demsysm comnyivwhichtheymelxaed. 'r'he0epartmo[ofgevmre awPlothe • Juyi, m Thelowa Uelarmsmtof sizes fiomuln axrmuwmdpubWWs, Re®tchavgmintheadminioadmrm xe.mue chavgedthe budmmdam Consumer Confidence wmrtmyadanmdretauwmtaarepmta Imva'.dmtaamAWedehunwmg: am�gammtfapprmamamya tha[pmdde the prwoaryeoume ofdataf . Jaly4000q.Iowarerieedeeeaftaa Pment mlowa'eretailus. Consumer confidence zetas m how favorably, `1dism,'r`' lawamnessueamlrwel nlao . Juy4ami.Tmbkdnnthe cotamveta view prospects for the monomy and their Iawa'sealo bareporro,g pmcm may hod Prvjrm(S.TP)repar®eva SSPP Cmvmieoo 5tma ad Gee Sbdove owe financial situation.Peentnlem about the U.S.Consumer Sentiment ropcodmat mmoalieivreuH Wmdata lmpmmsaNfmmlrynealesmhws bmWeedeweemdadfid fiesta ecenomy can haves dampening effect on householdton (sirs•Index WW.In le quests,flims) rennedaathelaealleed.naeum sco earmtherdymcowagmg avmparsthoeastapnoarilyfmfuol bu®®ram collereavdrvoftealy theAmomatireaM xeladd eraupm dixretlonary purchases,while spdmiam can boost vavagemmt pmpom,melody rarmeaerymmmwhkhtheymalm the vodvok..croup the likelihood ofpurclae®, w roada*fvaoddrd,u,xew. wabksdo, as The chart a right illustrates a quarterly index of as construct confidmre benchmarked to the star[of Fiscal Yearzony. Stancedanwereobtained6nm m Notable Exemptions and Exclusions from Iowa's Retail Sales Tax ffic ndmofConaumm Sendi t,Unieadtyof se Micldgm Surveys ofCunsaoners,via the Federal so Manyretd ttatwaetiom,bemuretlwy are .avYa wdrumediedmdlepl m.im maodsmiepustbataremn. ,idurhy Reserve Bank of'SLLouis. n.mpt-tithes—eluddfimnth. arermtsubjeremthe.ileam. PmAmdmrpmsmm;mA,ehal .ace'zmkswcareammdaddmthc urikiks.t .tareha.plwwdomme machinery mwna®t,and ome tanhk Wnvdvc repvtedivtltla ryort- mmpumeympmem:avdmmyeasioz. Pogowv,garcmmevotaWe®vpriom ®waoofinetered go,elommy,ad fiomluwn'solota Moodealld fuel w.dmencgy Wrmumdaldwegiog, TM etarehm ereazedaddirimd Internet and Catalog Sales ass®ermmnru„bleemn,he Imes •w"m��mma®d®+®rine. —ream tion.amwma.p.edin H-commare represents mall but rapidly growing 11epaieonof��e. ennly 6mWewadiodoeuie. m ironountentermolap.Goethe slureofeetaidactintyinthe United States.While P.emPtormand.drnnd..G dsdat Salam UeW.mem ofxermue Webiar Por tame ecemmerce presents a sales growth opportunity for E-Commerce Sales In the U.S. are®ptfiomdw talo mandude and omm4MThe �p. many rctailecs,it also poses a potentially lmponant (see hrt.nta n of Total g.tsg sal«) reraW lode used lhome cmeimptloq of ofmmygood.adamicmthatare ivdmuymdbusiom. new source ofretaii miss leakage for Iowa's snins<rptifmmvva.,ajdndidaees, prey atvpmem agdmdmre mdmhe gal�mTaz-Eaemptorgavt.atlm.. eonimani[ks,. tar,areaml,Wd6®[table mallWm. irduMal Races. I widuate gorcnmmtmtltioare aetrt show.the .hare ofWnl Tanbleretaildmalm eWdethedem Saleztax ma dovsf agicalumapdy The ehvm�poSaedaoEmwlmerimrimef ta treat gmwmg tease ofmwoudvehide thmare mthepard-eoffeed,.ml,f dbm. U.S.recall asks,that are toomend through mb)ec to mgimzto,Veldelepmehasn Immadrtaeryaderps:pmva,@`bad eArmWval Pueponare abom®�pt. `commerce.E-cpmmerce,which includes ime ncr are m,d.gnaay udmdmmtda one- udidn,mdsmcemice. ealesfiumlaod-ream acuramare and catalog sales,describes traneacrions tnwhirhan nine reg'ssamp°ie. mmmuG tedude u.dfoedueatboal,dram xampdms mew6. order is placed and/mprice and terms ofsale are zss zvs cast aa. .tar .a. an 1. son sen. g>®pt snviena udilm onpbt.good.. pmdaen oftaugible Vopun tlutbnnme charitable Intoe. negotiated over an interest or other online system. mosonarecourafinsunnualkne animgralpntofmamdasmrdgoods .Pa<I9mayabm meds,PMimimnl ulGmahlyedd#retail:fieln dwraiob, hVzmggtlallT Avayabx yon PW rJ M DepmsmmtdBoxiomiea pwa Cautions for Interpreting Reported Sales Data County Peer Group Definitions Nw-iaeable Gvadet6eMsn. The Iargn Pv614lmtllatlom The� Salam3vWa'Ieeeltmin.Some�>' Wnbformarlm peamtedivtlds repom oflwge pibMbdmtiam eudM thn tiWnrdunmzy appear pmvid®ovtyametialpimm 0.'e ail mrertimslficiliti®muniav�ea may eyareare homemthebucinesa v&ceaurm CwMr Neme 2010 Papuletlm MetropolitanedsrFall oR ltanlatladcal nRNeeal mem .dewicewemeamvitybbw's diwmcbdnbmmwvee,Mthtlr hndquartaedafimwith aborad, Black Hawk................ ]31,090 Watarloo{dar Falls,MMetropolitan statistiolArea oommualtln,dmivpartmsbedara b.tlnvimW purlueeea amladN fiam geoenPWWly-0dmNe¢vketuttrorr Dallas......................... 66,135 Des Moines-Wert Des Molne,lA Metropolkan Statlsilal Nes reposmgpsammandvleauz Cenbledea Mtthms®d�a aurhwawaltebs�udutiwammWe Dubuque.................... 93,653 Dubuque,IA Metropolitan Stake iwl Arca ®ptimuliemd entM pmiouepage ivdvdN ivlaW popabliw eNmNu mWosdoupoaider. Johnson..................... 130,881 Iowe City,IA MetropoRtan Stadsdcal Area Unn............................ 311,336 Cedar Rapids,lA Meempolitan statistical Area Polk. 0.30,610 Des Moines-West Des Moines,W Mamspolitan Sta8e8cal Area Podawatiamie.......... 93,158 OmahaCouncll Bluffr,NEHA Melmmollbn Statistical Area Definitions of Retail Measures scan........................... 165,331 Dowsnpnt-Moline-Rod Island,A-11-Metropolitan Statistical Area Beu118ale..Thb mmtefmmtM Nominal9afca.NmidW Mlesathe BapaedPn GPM Bpmdlog.An Story.......................... 89,543 Ames,IA MetmpolNan Satirtical Area repotd Wndg.ds aodemvleea0w daBvamawae reportedbtMymetlt mryatdrabe ten resident,evoage Woods. ................. 102,1n Slow CK,NNE4iD MMroollten StellsUcal Area m-wectmlce .cvmild fts. tramctiam actuallymok place.Them eP-cfi gmusablenmdl,o and valine Mvetwbemadjomed 6mb8atlm. mMmkuaedbthe m4Watiov dvade Boone......................... M,3f16 Boone IA MicmpdiGn statistical Area Repoetio6sWaa.'ndsa meAemtbs .uplmad laloge,wham npuve,sed Buena VIM--- 30,360 Storm Lake lA MlcmWlltan SWdrdcal Arca avmagenabmdtazreawe6ldper Sale Pm Fhm Pn6nnulna pupfis-v -Thbmeamebsmndtive Certo Mm!............... 00,151 Mason City,IA Micropolitan Statistical Area quumduehy Cheyne.adhsmmaa calmlaWdbydhld1MtW,maud dalhe mloWbcomelneh.Forma Clay............................ 16,667 Spencer,lA Mleropolltan Sted0cal Area prmyfm Ilse vumhweflod rmafima. r�beddeabythe asvaeemmhvd io(mmazimamtM deeivdmadUtle Clinton....................... 19,116 Climan,IA Micmpditan Statistical Area repotMg6tmebtbatyar. measure,Please mvtntlw amhm. Des Moines............... 40,335 Burlingmn,lA-IL Mlcrepollbn Steddcal Arae Beal SeW.-R dvaarrabe W- Dickinson................... 15,667 spirit lake,M Mkropol'men Statistical Area bsso. dMdmmBentbe 8aleePm Capha.Pmmpit(m'pv seWeby8u®muCkmop.sales Jasper......................... 36,813 Newton,IA Mimpollten Statistical Area pvohadvgp of.ddlarbde pasm�Wna Wodaredby dMdivg bbnlariom yybn®vin getup deevibethe leffenon.................... M,&3 Fairfield,IA Miampolitan statistical Area cusrafiad y®nthsusmovieg Che tM doBarvdwdWeabytM eamoetd typnd6rmswhere retaetametim We............................. 35,863 Fort Madlfom8wkuk,A-IL-MO Mico lftn Statistical Nee d'ctdpnm u�9aG®. populati®fm themhjertplecviveludies vaueaed.'lbeydvnotde dustypevf Mahaska.................... 12,381 Oskaloosa,W Micro,itan Sta8a8ol Area gmuP9aattm reddema. mmelwMiae that wareold Marshall.................... 00,618 Marm.1ficwn,IA Mlcmpolltan SUdsocal Area Muscatine................. 41,745 Muscatine,M Mitapolian Statistical Area Wapello..................... 35,615 Onamwe,IA Mlte,iften Stadsocal Are. Other Data Notes I Webster..................... 38,013 Fort Dodge,IA MIcramolhan Sbtladcal Area Chy-ta-CmmyAWpmmt:TM 0-rommartt Bdn:Morahbratd Population'Iowa3Cat Uolvmity Allannakee.................. 14,330 None(not partafa metropostan or mlcropoltan area) ivmpoeaudmritory ofmamlowa Amud8eu0 Tsade5lm.Cxnu [mfy eatimma,basedmdm Weaeedthsough moventM bouMarindtmm Eancen. ceReport,US.Cantle the PopuhMn PebnW®Pmpam,U.S Buchanan.................. 13,988 None mareeowtln PmtiJerelmL alldtia Bmeau. CmuMBumf WBhmhavmal dot Buchanan................... 10..958 None aaademdmdecounty that msuiml rdeas,tlw U.S.Cmwa Burmunvyrevve Carrell........................ ",816 None tMgmamRPoumtage dib employmmc us.Bmeaud Th Anlysb.Employment popdatiov Em�omicanhmatra6wmpmrymw. u report Cass............................ 13,956 None btM.mo Cnuus. iv�dvfdl-%oeaMpart-timejaM IacoePm+so tM mattre%,l . les Cedarne...................... Mp99 None C�diog Flaws:I Boplcnamt whhaRlobmmwd equa0y. ®°mmaod miriww Populatiov-bnad Cherokee................... 12,1131 None DYmml®PmBeam,US.Censm Bmam. mtleriopubBehedhatM report may ort Chkkacaw.................. 19,M None T cmmr�,fl-dmrbe0w N°°°e6°ldlvaomeavd Poveety: tarovehe wbh those appearlvgbaBn Clarke......................... 9,386 None SnW1Amlvmmead Paveny rm0wde ahalydesepmt.Ivmowm, pia dwmkaMPladreddenced Cca oars.................... 17,9 None wageaW alaryxwlwvbzaa9.SeH 6amatew U.S.Cmue Bumu. the dumepaooaammm. Delaware................... IJ,J60 None emplvyedivdiri sudbaasob roiatbn B+r..Midwnt8e8im Pdm DeBazmw:Excse eothvwia Emma[....................... 10,302 None ptapie[om ad Partvnsamdudd Cov®mE Wd-Mm Urbav vomdmthurepmq the dollarvahwbr Fayene....................... ",8" None Bromthne daCa Coa.amw,ABltmuu.SBmeaud allruailWnaW puamnlbsamedm Floyd.......................... 16,303 None Cm.®nSpndbgPmam: Tabor SuWUn. bavebrevadjoatedfmivgati..ux re Franklin...................... 10,680 None Mph@ Price pe8amr M Pm.val Cmawsv6apevd'tlne Survry,amq US. Nov!Paamsl Nene:U.S. Greene....................... 9,336 None Aimaudlabm SEdetiu. Bmesuuf Econari Andyds.Thio Cmuumptlm0apmditmaa Puhlldwlby Hamilton................... 15,673 None the U.S.Bmeau dBmnmicAaalysia. C®smom6mtMmt luded, report Wudnfirm nenivgeavd Hancock.................... 1,301 None Cmimw5mtimem,Unhmdryd Imamefmmmnwun dlaW pm.vd Uassem plmmt.LoWAren Hakln........................ 177.534 None sadd,ansonn,adconeumen, Cb, in®edmutbe zm.... aUH'of UvmPlo➢mm[BbVeGo,US.Bmnud Henry......................... ",145 None fimimomemdthe fis[thrtawny lobar Sntletln. Pedmd Rmmve.eavkdst.Louie. Form rdamd pi¢Maaeeaa a®p HowaN...................... 9,566 None Humhold.................. 9,815 None Iowa 15355 None FYam4R,tsfl eMdSwbRpon Paget' MDeparwmtdEkm,md1m Page. County Peer Group Definitions Frequently-Asked Questions IwaMkm VnWr4.X mm:kx.:m mwbwum MMepelmnn.xkmpelbn Wtltlldmmxmm YewrdmMawnomGs WW.mPem.dmm.a.m6m3ed.sMwweamwtlme mmame ............ ....._......... upne n•Innwrta•mvwpemnaemkmpolmvml Ie..Bam VnkmlryQHq Xem'nae.w.p..gc.u®y mrl¢rE..t.me.atlry-ka . l5$.] Wne WmaauMRPa�n®He6m^m6m Nnlrm.x9.�helmaYgvmo�aHnmm Ima.................— BRB Wne xemme dwa®Svdle emE wMleaX®adeAbibmlm.Xm�Pdmaz.EeloahWmleh'IeNmm..mml ReW x l. ....... M. M ....._ wne npen�dmeawee: Sabaod VmmXewG.e•sa•.gom[n WemlPUNimhMilMl..apabWWmmwM. MlWrll..............- M. Kn• mal)maboMSMwPalem WemwlymtlYLekN.eelav]^41¢Im.Mrtditlume Manvm.................... ) Ione � Bm1e6m�.he W.O¢mmve NXaame 1PmYelmllNm.geWlWOLvbx Monte................ 7Jam Mn. �9�„® makwweu.w®manm. ................ NA Mn. 9mal'bbl4lambedo L]doLNratlmEaaMm Wbe•Pml[dlHa kamPmmmtlPPnMkM1NWrtW npwm] 0mda—......... 4Ws Ebne llmnanNlryFWdalY,navdim®edmuedmtlWrtPmtM.�EIR1m4aebmtl RNtlm rg............._....... .m. Mn. hNe VSCw.eamo�ma.m.y®amambemaXaammm;ai..e.. binum........._ t wne rnNM'wu mt'mbe®.wlYe A%e4d®mP^Wltimmtlm®e®wl.em:Lb Pow ............... .. 13.Mf/]W Wn• MaXmelm3mLLy moumm�aM�dmme11..14PW kRa4 mlrtkmlmswAe RkuY®^.'h6 —............... 161 Wne .1m.lwa Pm ePe.mmrymNWemMrtamh`rteYtlfaRMm.mtlm.Hme4makmmwtlleW SMw......................... 34]14 Mne EYIotlo1GMHEPI>r]etl[m MWeW Xa1Ll9'Me6ua1).k nPmM. : ......................_ Ut].]o Wne 6rt WettlLlmb e•WYe6$am3mkleamWallw.4]oWmH16a[nmY Nm._.......... 13$3e Wne W1nneMN........._ EY.i6 Wne RNetimmrtieRmldomLemll�hk MmkLrtWl..He Omw4megemlm4 W1nnmXkG.............. 2l Mn. Wvvahxe Meetlfinel eheMMPvb.na®utvmAtlarFMu hk ale M........._..... Wne nvltlec®N.gaq.W.M emaRWe.mtlaltlm.eE®plv.dmlWmle pee�mpamPllW mint^a Wmmle altlmp+M:k LlMtlol rtaYp{.Nw5ledmpWlAedTm m4 WLMe WeblloNnX: bmm—............. w.6]6 aa..br4..uMmordbnmmumlM. wmmmmakm®ra mmnm..m�aXe.®em�w+�mmaee®ealmn.m�w.m kMw_................ uam wwMor aaraauMnmPdw:MwmmlWm mx um�tl®mMmmsme..emme.E.r�6:a.. ............. . ......._ 1zw WamWm4tlnMIk.MMRm.dXm SmbNol M. .. ..................... IYYM Pm Md�Wea Ye WIn4NMeCordbn Aa115tlmI.4ea • AWRm4:fRn®emLNBMPmWeeH11w W6[mamimn 4vefwtlM Xvnbt...._....... N$M Omvl:WuntlIBLMq HENMtlmwlXan AaLLlW Me ].r.ma[apy.lpgedy u�:tieWrehetl Mmrym.hemMJalmpmp. bne.......................... ]OW 6tln XaPX4NM.Cardbn5m6RImIMx MMG................ 15b)X Yea Md�¢Wea WMdnq NMeMpdbn A6NmIMe ILsrsWfie.tlemeM1mtlhemWnhmmmpMX alokYYWnsX^V tlmbMrtmtl MEV_.................... Y}69 On.M1Wuntll Blmly HENM4emIIknSWkl Ma vamwaeµ rkmw........... N.7M eww OY.WXEBYMNNR1mnb11AbIMm MrW PYhem..Wedee.aeaamea,ap..tleeamemmmwlm.®.] Wmn...................... <6F3 MfbMWMYSMdneV NrNboMMnEI.WtloIM. Ya to mbWtlgl[tal Wll Bna'NbmamYmYINIMenuPl::./1m49e n4MdY nPmE mwpmte m.Ymeam®e&nauLMe6®We..m®®C'rySvrp�.VA su........................... ]� Wnelnw PRnEe meknmWn.rmkmraXnem.l Ca:aNwo.3LeACaie�aDm.m ae eryH.63®aamm�remmmm:.eyu e6m: ................... . am Wne smmmawmammem�awoamWWmAtivmXvlmmvmkmk. euauem..... 41u Wne .ft................. ua5] Mne a We...................... sam Wn. Acknowledgements . .................._ 41a Wn• lm mewmv]®b.•MmOm.mt]6ewrilelmebNeeecunYvma.namamibe YMe.......................... OMnme.MMInNRhen A6NaINm W7 w.YUWePmeamlvat Nlemlmmb mPmaetlm W.Rm..e.dvAJRLLe Yemmr........� BA6Mne dumMl wkaLveW aFea.ma WX�Mou.ma33ammmmm]mmk.ae I..............— ]Mt Wne Mme....................... 7.Y11 bobA..........._ 1Y$11 Mne ]ffi@lmamppvY.rN1W6:W48BwWMa.1Im:YmeaM xmeP®Wek¢elmst muY.................— 1LY1 MiH SVYm.hemmAP�aLaa6hLLeQYVem6�n'eM:rcminkSG rsM•Sv¢ Waw—................... t41Gt Wne lmlwsv. Wne Mnkme.................... Sul Wn. se...................... uA7 Mn. e_ u.-..amemlmaremm.e e�m�w.Wa:.a.x�..e.am.wrebmn�rbrMM..W�.1mWWrm.wam ]p ................ san Wn. 1awM..m nimlwmm�awwYr•wow...uE.mm.]Mumme.�xmrnamb.mRmnMXwdorwNmHM.:a Nn&.ay......_. ]SA Wne MHaslYf 3aXn bm YM1mX.R(951 a9{'Fm .......................... 6AYf Wne Wwm............... ] Mem MMbo dbn AatlNmlMm PYao•YwN IfaN..mlE.k9gxt Ppa WY.pammtdP�-mlm Ppa ADDENDUM L WARRANTY DEED 2000 DNR UST LUST PROPERTY LIST NEARBY REALTY RATES SURVEYS PWC SURVEYS ECONOMIC INDICATORS APPRAISAL INSTITUTE FINANCIAL VIEWS Felderman Appraisals,Dubuque,Iowa REAL ESTATE PROPERTY OWNER DISCLOSURE STATEMENT Business/Owner(s) Legion-Aires Drum&Bugle Corps(dba:Colts) Date 04/04/16 Property Address 1101 Central Avenue,Dubuque,Iowa 52001 Approximate Age or Property: lggq Date Purchased: 2000 In connection with this appraisal or listing, we make the following disclosures to the best of my/our knowledge regarding my/our property with the knowledge that even though this is not a warranty. 1. BUILDING SYSTEMS Are there any known problems affecting: (a) Electrical wiring?........................... Yes (b) Air condition/cooling system?................ Yes (c) Plumbing?................... .�.s"�:?Rl l-5c in WaMen�5 m Yes No (d) Heating?..................................... Yes (e) Pool?........................................ /�/,A Yes No (f) Appliance?................................... Yes to (g) Floors?...................................... Yes 6 (h) Water System (well)? ........................ Yes a (i) Sprinkler system?............................ NSA Yes No 0) Chimneys/Fireplaces?......................... NIA Yes No (k) Is there anything else not mentioned? Yes If any are yes, please describe 2. LAND/FOUNDATION: (a) Is the property located on fill?............. Yeses (b) Have any sliding, setting, earth movement, upheaval or earth stability problems occurred on your property or in the immediate neighborhood? Yes(O (c) Any defects/problems relating to the foundation/basement? Yes<V (d) Has water/dampness condition ever existed in your basement/space? Yes No WA Zrvo�tr If any are yes, please describe Page 1 of 5 Felderman Appraisals FeldermanAppmisalsammail.com Continental Realty Dubuque ContinentalRealriDubuquej gmail coin 55 Bluff Street,Dubuque, IA 52001 Initials `� (563)557-1465 Office,or Fax(563)588-4214 REAL ESTATE PROPERTY OWNER DISCLOSURE STATEMENT 3. ROOF: (a) Age Years (b) Has the roof ever leaked during your ownership? N¢3 No (c) Has the roof ever replaced or repaired during your ownership? a5i No (d) Are there any problems with the roof? Yes If any are yes, please describe Roor IN Za 15 f'IXeC Au- ISSVES,- Rresda ne NWMhran--- (Gusler 6rts.� 4. SEWAGE or SEPTIC: (a) Is the property connected to a public sewer system? 2M No (b) Is there aseptic tank/cesspool system serving this property? Yes dip If yes, when was it last serviced ?) (c) Do you know of any problems relating to the septic tank(sewer system? Yesd3jP If any are yes, please describe 5. DRAINAGEIWATER: (a) Is the property located in a flood plain zone Yes&5S (b) Has the property ever had drainage or flooding problem? Yes® (c) Have any properties in the immediate neighborhood ever had drainage or flooding problem? Yesd9oti If any are yes, please describe 6. BOUNDARIES: (a) Have you ever had a survey of your property done? Yes&D (b) Are the boundaries of your property marked in any way? Yeses If so, please describe or provide sketch Page 2 of 5 Felderman Appraisals FeldermanAporaisalsna email.com Continental Realty Dubuque ContinentalRealtvDubuqu_e@email com 55 Bluff Street,Dubuque, IA 52001 Initials 119A (563)557-1465 Office,or Fax(563)588-4214 REAL ESTATE PROPERTY OWNER DISCLOSURE STATEMENT 7. ADDITIONS/REMODELS: (a) Were any structural additions, changes or repairs made to the property by former owners WITHOUT obtaining all necessary permits and government approvals? Yesd9 (b) Have you made any structural additions, changes, or repairs to the property?Yes (c) Have you obtained all necessary permits and government approvals? Yes No WA If any are yes, please describe 8. OWNERS ASSOCIATION: (a) Is the property subject to rule and regulations of any owners association. Yeses (b) Are there any problems relating to any common area? Yes No WA (b) Are there any conditions that may result in an increase in taxes/assessments? Yes No pf/A (b) Are there any pending/threatened claims or lawsuits against the association? Yes No NYA If any are yes, please describe 9. MARKET AREA: (a) Is there any amount of noise from any source (for example, airplanes, traffic, schools or business)that affects the property? Yes&V (b) Are there any other neighborhood conditions or problems affecting the property? Yeq1V If any are yes, please describe Page 3 of 5 Felderman Appraisals FeldermanApomisals@gmail.com Continental Realty Dubuque ContinentalRealtvDubugue(r7email.com 55 Bluff Street,Dubuque, IA 52001 Initials_X-A (563)557-1465 Office,or Fax(563)588-4214 REAL ESTATE PROPERTY OWNER DISCLOSURE STATEMENT 10. MISCELLANEOUS: (a) Does the property now contain or has it ever contained any toxic substance, mold, asbestos or lead paint? Yesdy (b) Does the property contain or has it ever contained any underground tanks? Yes L9 If so, where? (c) Are there any known violations of local, state or federal government laws or regulations relating to this property? Yes(g (d) Have any termite/pest control reports on the property been prepared in the last five years? Yes ND (e) Are there any encroachments, overlaps, boundary line disputes or unrecorded easements relating to this property? Yes 10 (f) Are there any existing or threatened legal actions affecting this property? Yes® (g) Are there any past or present problems with driveways, walkways, patio, floodwalls, fences, retaining walls, party walls, on the property or adjacent properties? Yese (h) Is the property located on an earthquake fault? (No explanation required) Yes&> (i) Are there any bonds or assessments affecting this property? Yes No ORO Q) Does the building have central air conditioning? (No explanation required) <�q No (k) Is the building equipped with operable smoke detectors? Yes(! (1) Are any of the property's mechanical systems leased or rented? Yes® (m) Have there been any significant repairs made to the property or to any of its components systems or within the last five years? etB No (If yes, please describe using additional sheets if necessary) Rom,' (dept e)(TERwiZ ants LEAD;915-1-b ALLE)/; DOORS IN 0FFlC9AFVN (n) Is the property located next to or in close proximity of a dump,junk yard, or toxic disposal site? Yes Pl9 (o) Has the property been tested for radon gas?.. Yes(9 If any are yes, please describe Page 4 of 5 Felderman Appraisals FeldemanApl2Laisals@gmail.com Continental Realty Dubuque ContlnentalRealtvDubumuenm Pmail.com 55 BluffStreet,Dubuque, IA 52001 Initials—NISM— (563)557-1465 Office,or Fax(563)588-4214 REAL ESTATE PROPERTY OWNER DISCLOSURE STATEMENT 11. REPORTS: if applicable and available, please attach copies; (a) Surveys (b) Structural Inspection Report (c) Building Permits (d) Septic (e) Soil Report (f) Termite/Pest Control (g) Engineering Reports (h) Radon Inspection Report (i) Disclosure Statements Q) Owner's Association Documents: (Conditions, Covenants& restrictions (CC&R's), Articles, bylaws, or Financial Statements of Homeowners) (k) Pest control warranties (1) Mold Inspection Reports (m) Lead Inspection or abatement Reports (n)Any Environmental Reports (o)Any report or requirement from any governmental agency 12. GENERAL CONDITION (a) Do you know of any other facts, conditions, circumstances which may affect the value, beneficial use or desirability of this Property? Yesdy If any are yes, please describe The above information is true and correct to the best of my/our knowledge and, except as set forth herein, no material problems exist with respect to the property as of the date set forth above. Itwe hereby authorize the furnishing of the foregoing information to the identified client of this appraisal report. OWNER Jeff MjOarlan& DATE •S• 16 Address, Phone#/Fax#: 1161 Cexvf'n&1Aye—., DubugJG, 1R S(,3-5$Z-'�872 I:'563-5`dZ']317 Page 5 of 5 Felderman Appraisals Feldeir anAporaisalsAgmail.com Continental Realty Dubuque ContinentalRealtvDubuque@zmail.com 55 Bluff Street, Dubuque,IA 52001 Initials �4m (563)557-1465 Office,or Fax(563)588-4214 THE IOWA STATE BAR ASSOCIATION I C.J. May, III ISBA#000008346 FOR THE LEGAL EFFECT OF THE USE OF Official Form NO.104 THIS FORM,CONSULT YOUR LAWYER .. L�L►� 7— Mii,%R 22 1 11 3' 4 1 299-40 4QU,11 1 I"iCOR D E1� O D'HjuCIUE CO..InA re ar ion C. J. May, II1, 1112 Iowa Street, Dubuque, (319)588-8696 Individual's Name Street Address City - Phone ST,r Colts Drum & Bugle Corps, 1101 Central, Dubuque, IA 52001 SPACE ABOVE THIS LINE 0 fap WARRANTY DEED FOR RECORDER (CORPORATE GRANTOR) OC I NS For the consideration of Ten Dollar(s) and other valuable consideration, Sunny,Incorporated a corporation organized and existing under the laws of the State of Iowa does hereby Convey to Legionnaires Drum& Bugle Corps,Inc. d/b/a Colts Drum&Bugle Corps,an Iowa Corporation the following described real estate in Dubuque County, Iowa: South 2/5th of Lot 447 in the City of Dubuque, Iowa, according to the United States Commissioners' Map of the Town of Dubuque, Iowa [RECOR67ER EAL E8TATE TRANSFER TAX PAID `^V, $225, 000 . 00 —STAMP i $ �59aD Flvnn uAowt(,y///� � 31-DubuqueATE COUNTY The Corporation hereby covenants with grantees, and successors in interest, that it holds the real estate by title in fee simple; that it has good and lawful authority to sell and convey the real estate; that the real estate is free and clear of all liens and encumbrances, except as may be above stated; and it covenants to Warrant and Defend the real estate against the lawful claims of all persons, except as may be above stated. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, according to the context. Sunny,Incorporated an Iowa SQrporation Dated: March 21 , 2000 By an e A. May, President Title v By Title STATE OF IOWA DUBUQUE COUNTY, ss: On this 21st day of _ March, '2-000 before me, the undersigned, a Notary Public in and for said State, personally appeared Jeanne A. May and to me personally known, who being by me duly sworn, did say that they are the President and , respectively, of said corporation; that (no seal has been procured by the said) ( corporation that said instrument was signed (a- sett on behalf of said corporation by authority of its Board of Directors; and that the said Jeanne A. May and as such officers, acknowledged the execution i of said instrument to be the voluntary act and deed of said corporation, b it and by them voluntarily executed. Notary Public ®The Iowa State Bar Association 104 WARRANTY DEED(CORPORATE GRANTOR) IOWADOCSW 1/99 Revised January,1999 4/8(2016 Tanks Iowa Department and Public Storage Tanks braiding luniques in caring for caur nal i es 4/8/2016 4:59:57 Pro user: Bear Added,l search LUST Registrationumber V I far Advanced Sear Gus Gws GPs o Us 3,e Pan;.Inspections Gus Corrugations Registration Number'. Sie Name Ste Address'. dentral Site Cb' BOQOE County. 0 Supplemental Lee Sie Status statustype —T Ste Owner. Fearer 1401 CE u 19 60596 MART 2 lP a pletedtanks-spire 52001 301 19 91491 RENTAL Dpbu�u e�IP eAVE pleted tanks-r/t 520010000 371 19 60883 10 MAR! Dpbu�u e�IP eAVE pleted tanks-spire 52001 1323 CE u 198913678 IX566 STATION IA epleted tanks-r/t 520010000 13TH A, 198607140 HALL NTRALAVE n-r regulated heading oil Dubuque,IA anla�eagrve 520010000 720 CENTRL 198811144 DUBUQUE COUNTY COURTHOUSE Dubuque,IAADepleted tanks-r/t 520010000 3510 COu NTRAL 19 60105 SIDE]EPSEI DAIRDubuque,IA eAVE pleted tanks-spire 52001 1105 1098 COu NTRAL 19 60519 EPS DIACNOWTIC CENTEDubuque,IA eAVE pleted tanks-r/t 520010000 3201 COu NTRAL 19 60519 ILYMARDubuque,IA eAVE pleted tanks-spire 52001 1168 3TH A, N 198607142 HEADQUARTERS Aubup lA eAVE pleted tanks-r/t 520010000 3155 COu NTRAL 198607143 HEADQUARTERDubuque,IA eAVE pleted tanks-r/t 0000 1540CENTRAL a7 101300020 FULTON ELEMENTARY SCHOOL Dubuque,IA Depleted tanks-r/t 319852001 10ENTRAL a7 198608838 8T768 HARWOOD 76 Dubuque,IA Depleted tanks-r/t 520010000 1360 COu XNTRAL 19 9165] KSTOPCENTRADubuque,IA e AVE pletedtanks-spire 52001 19 91022 T G4 MEINEKE DISCOUNT MUFFLERS ES¢NTR Non regulated leaking (FORMER SERVICE STATION) Dubuque,IA are 1520010000 2175 198601271 RAL TD88 ROAD RANGER#159 AVE NT Regulated tanks-spire Mips//programs iowadnrgw/bnks/pageshManced asps 1/2 4/8/2016 Tanks Dubuque, IA 52001 3200 CENTRAL 198603004 8LTC53 SAHAJANAND ENT Dubuque, IA Regulated tanks-active 52001-1167 2307 CENTRAL 198600616 TEGELERS INC AVE Dubuque, IA Regulated tanks-r/f 520010000 2401 CENTRAL 198607139 8LTV01 THE JULE BUS GARAGE(EOWERLV AVE Regulated tanks-r/f KEVLINE BUS GARAGE) Dubuque, LA 52001 2401 CENTRAL 198607139 9LTQ67 THE JULE BUS GARAGE(EOWERLV AVE Regulated tanks-r/f KEVLINE BUS GARAGE) Dubuque, LA 2001 1 Release#4.1.5120 State of Iowa Home DNRHome Site Policy webmaster@dnr.iowa.gov https://programs.imadnr.gw/tanks/pages/advanced.aspx 22 4/8(2016 Tanks Iowa Department and Public Storage Tanks paradifing luniques in caring for caur nal i es 4/8/2016 4:59:20 Pro user: Bear Added,l search LUST Registrationumber• far Advanced Sear 00ST Ows 0AST 0 Us 3,e Pans Inspections Gus Certifications Leak Number'. 0 Leak Risk Cassifi wdo n'. Riskdassifiwdon— Sie Name Ste Address'. dentral Site Cb' BOQOE County. 0 Supplemental Lee Sie Status statustype crunch data. 1101. 3LTG24 198605966 AWN STOP MART 2 Duque401 CE NTRAL AVE 301 CENTRAL AVE �3LTA23 198914910 BEAT RENTAL Dubuque,IA 520010000 3LTG1 198608835 BIG 10 MARY 371 DAL AVE ubugeCEN�IA 52001 gLBO8 198601054 EAST SIDE 3ERSEY DAIRY 3510 CENTRAL AVE Dubuque,IA 52001 1098 SBL 605190 EPS DIAGNOSTIC CENTER Dubuque,ICENTRALAVE T%98 198 ENDERS 520010000 3201 AVE 3LTR58 198605193 FAMILYMART Dubuque,IAA520013198 - 1168 �80608838 WOOD76 1 beCEue IP L 520010000 9L 910220 MEINEKE DISCOUNT MUFFLERS(FORMER SERVICE Dubuque,IR 95 CENTRAL AVE ON) 8L0000 pubo CE � ue IA 52001 3200 AVE 8TC53 198603004 WHAJANANDENT Dubuque,IA 52001 1167 S3LTrO1 198607139 THE LYLE S GARAGE(FORMERLY REYLINE BUS 2CENTRAL AVE 401 p Dubuque p3LTQ67 198607139 THE LYLE S GARAGE(FORMERLY REYLINE BUS 2401 CENTRAL AVE Dubuque State An Iowa Hiande DNR11orne site policer Mips//programs iowadnrgw/bnks/pageshManced asps 1/1 Market Commentary ResltyRates.9om Invesmr sully Reports Modest Cap Rete Indes seaeaee For MM property Types Oaring 4th Quarter 2015 Coincident with a nice basis point increase in Treasury mw an which neat commercial mortgage itserent rotes art indeaed,the RaltyRntes.00toom ho attor Survey weighted Composite(Cap Rnfe)Ind-im aimd ly ime.ad. modest nix basis points,furan 9.40 m 9.46 parents during the 4th Quarter of 2015,wits all but our ofthe Il property ceregmies ring sap ramivdax ivuraeea during We quarter. Investor Tlmg�teer��ilattarn�ate� . byte �pacoss Industrial,office and Retail eeclme,ellup night bn®s pointe,followed by the Self Strmae dsector,Sesta up seven be®e Po alu during the mmeparbal Survey The only eased&capmhivdatdeaeasewasaaord d by owsm I.odPugmotor,sdona dormahat Bar sWinn. Mortgage fame again eeeatl abi[ovmnll dining me 4W Qaerter,however eproW invaead eomewhe[Cor ell property gper,while erpdty dividaOdmM wee endea0y lows overall. J ..e S npJa e IndUdlIIlIL,dqds, orca xne xesm,ren ser p p . s BP ev ev ..... ev. RealryRaws cum^ „ „ , 2001-201fi _ _ _ 8 9: _ _20 899 _18 900 _6 915 _11 1166 _13 952 _22 1111 12 940 12 1st Quarter 2016 11 817 11 1170 16 88 11 895 1. 1 899 10 917 10 1170 14 954 1 1112 15 1 1 1154 20 871 13 885 13 1016 22 889 2 14 911 11 1156 15 955 11 1 91 11 — 15 2.111 8M 4 11 92 14 890 5 9.7 2 1060 922 1 928 911 4 11 11 958 21 35 12 07 6 88 36 909 40 1 57 24 908 39 947 3 915 13 1177 6 1019 49 1 09 41 21 12 00 22 92 40 949 1 1081 24 948 8 944 10 928 26 1170 14 1069 3 17 4 12 22 5 962 15 960 12 1105 7 955 22 954 16 954 25 1184 12 1072 21 0 2 2- 881 45 11 72 1.49 28 937 2� 925 471 9201 12 1185 61 9� 38 1129 24 975 28 40 10 70 962 'l 1244 1111 RealtyRates.com- 4 Financial Indicators Permanent Financing aem..mee�amamm..�ra.m�cmewww o+omwtQmew�eotww.�+wase(pd�u.m 1ue=mowewum.®Qiom.+omega+m�®am�.e�w��mw+r�m...�m%mans .p�roi®wemm.�pgaa�. .�y.�m..m....eu..�m�'�o�.prm�x:�.mun wmmsaa.e•a.�s.�wwo<s ves. 1L:Nhmefm CJu�A W BrvopNvmEmwN� mr�een vnnna x, oia5 014% ¢ 001% OFF SOF H......s me. rods ax r.n on... x— 13— sm-s= ✓•m vaper(rinanaep� 1751. i c c c c c c c c c LIBOR .B .. 007% 4 3 1 lI 121 112 115 1 IF 115 115 115 1 F5 115 115 6 FA 022% 0 07% 21 196 225 2 IF 2 15 295 2 F5 225 225 225 255 2 lI YM 18 31 15 15 15 15 15 15 15 15 15 IF 15 IF 41 IF IF IF IF IF IF IF 15 IF swaps 6 302% 43 mehgege% ConFOOLl d mooaya seuonea ColednassF mWoRehs.wm" 5 RU ryReles.wm" 6 Investment Hates 1fie e0owleg utle.r®wsalxoom uE a�Gy a.w®a uou�mmtlM em�+Y roc�B. Nall uea Ne wx �vetl fiam Qau A mtl B P^F�b® vmmaitle mtl ve w:hmw of ten. NrR tlY 'Ruepm4uE®e'mNe b >fiom®g wtic cmmt vr: H7::7 zvmzm: Ma.. 7 *fn�o �n. BeeINBeMs.wm" i B Ity rtesl 11 ReeINROIes.wm" 12 ReelNReces.w•m" 39 ReelNReces.wm" ,� �o.�ia�«�s a,im��m. u ReelNReces.w•m" ,� �o.•a�«�s a�ro��m. � 77—j 11R 0 1111231 — 121 SO Ad 0-10 T I— .R R.R.1.. 105 0043027 A.111 3, 251. 0104982 0 M6246 A— 101.1 0080434 000804 — — M.", g. 11419199 OW933,22 -7 5.1.1 28879 0064440 mVROIV—1-1 0148919 OAR .uon,e��Ae err,§n�mmu OAR A-11-1- 40 Eq.,,' 101.1 0080434 0008043 mVgV AV c.—I, 0043027 OAR — m-g- 601.1 0120572 0072343 A-11-1- 15 Eq.,Iq 401.1 0 169059 0067623 ReeINROIes.wm" W ReelNReces.w•m" ,� ��..a�«�savim��m. 3l ReeINReles.wm" �o.�ia�«�s a,im��m. 33 B Ity a s..nn— �..aI«1s avimE�m. 36 ReeltyROles.wm" 3] com'" ... Re I) Rates. Market S u rv_ ey 15 YEARS 1st Quarter 2016 2 my $20810 09% A $2370 0 G, Effecti Rent $1949 11705 11934 11691 08% 09% Other Income $097 1085 1097 1085 08% 09% Total Income $20 47 11791 12031 11775 08% 09% Vacancy Rate 1400% 148% 141% 149% 11% 10% Eirectwe Copy IncomeIt GET 7 $1771, $111, $111, $1,11 in% 11% Expenses Total Expenses $1014 $904 $1010 $901 03% 03% Expense Ratio 5755%1 5920%1 5792% 5963% 06% 07% Net Openates Income,.o„ TTM, 462 436 463 435 01% 02% M, 2 1! 487 03% 00% me outcr 2015 Dro Cost yet 2016 hothice than ReaftlyRates com MARKET SURVEY let lagamem 2016 Nationwide Class A a B Neighlewhood.C0Ix a Stop Retail Expenses 015 &M 2015 as Change Income AakwRent $1842 $1795 $1828 $1781 08% 08% Effecti Rent 1 $1655 $16161 $16421 $16041 081.1 08m Other Income CRY $0811 $0821 $0801 008%1 088% Total Income $1738 ail�9171 72,41 61,41 ��Gl Vacancy Rate 71 75 72 % Effecti Gross IncomeGET) 1 $16101 $15761 $15951 $15621 091.1 09% Expenses Total Expenses $890 $839 $888 $837 02% 02% Expense Ratio 5526% 5321% 5565% 5358% 07% 07% Net Openates Income,.o„ Ovemall Cap Rate(OAR) 81% 81%1 80%1 81%1 10%1 099% TTM, 540 5611 56 ,EG,M, 555 575 57611 OtJ Ord me outcr 2015 Dro Cost yet 2016 hothice than R ItvR ys.cem"' 6 MIA WON — N KE. MO, Me ME,OK,EO Ra com MARKET SURVEY IStQi i 7K=M� Involve AskyaRent $831 $1144 $887 $833 EffectweRent $7!1 1 $1109 $847 $800 Totalincome $791 1 $1113 $849 $802 Vacancy Rate 591 37% 59% 53% Expenses Total Expenses $287 $414 $361 $321 Expense Ratio 38571. 3866% 4519% 4220% Avg Sale Food $64501 $92703 $58916 $60047 6 96 4 R 80 iSt Louis Region com MARKET SURVEY let penalty 2016 Region VUHt .a 11 Flex Vat Fie. WH I Fie, WH Fie, Dist R&D Dist R&D Dist R&D Dist R&D involve EffectweRent j! �j 1��j $444 $717 4$432 $828 $429 $792 Remboyableop $240 $401 $195 $326 $198 $360 Totalincome $6 861 $12701 $684 $1118 $628 $1154 $628 $1152 Vacancy Rate 5 8%1 791.1 761. 821. 741. 861. 691. 821. ED $6 461 $11691 $6321 $10251 $5811 $1055 $584 $1057 Expenses Total Expenses $3 00 $498 $258 $431 $210 $350 $210 $381 Expense Ratio 4642% 4259% 4085% 4703% 3616% 33 21% 3590% 3604% GRM 9 45 8861 9121 9211 9261 924 927 927 640 6V 694 Rd tyR8h9.COmM E Malty a ys.wm"' 9 :. Re ItyRates.mm Developer Survey 15 RealpR�m� 30% - 3%fi 1st Quarter 2016 Ww .w. Market Commentary asXyRdisl.wm1° asysbyer a0yyry ewom 4kithin M esewssye Dy ffl ems Fw MI auwul AUiii TYPs•ouMY w0 eusrrw 4010 x'xe. �mmm w•.b Iiai m.mmie, a atuvmw reMmg m .®maR ammuhtm ..a.Rm.�wmar vts0uulR.emyryR.muv4amQuuu4ms. ameen e®amu.l s.mma®®a ew m®a�.a..•.a.4.ae wa.w�.mm ss�a..� lluoim4 .xwru�Mbmo bullcma.s.mcd�wswli e®ma meabildlimal w<.l.nae.n�w aymmm�. .er.n.ma wmu. worth pi .m mae i novel ® mwea ss n.a. 4�. wy4e (®viceVNmamYy'im�m�mmmun.a.4em mmv4m..meRem mmyuye:wepiz.. Actual Rates Pon FOFma Rates Hit 3 1 Change 33 32 84, 47 100 Units 30 29 25, 41 100 500 Units 32 32 30, 46 500,Units 33 49 Me ed Use 34 49 unchanged Housing 35 58 100 Units 31 77 1 Basis Point Basis Point 15 AM Change SHIA 3QI5 Change 337721 3421% 49 3237% 3284% 47 3o 04% 3047% 43 2884% 2925% 41 3252% 3299% 47 3184% 3230% 46 84% 3433% 49 3378% 3427% 49 25% 3474% 49 3419% 3468% 49 100 500 Units 3462% 33 Ac 500,Units 3604% 35 87' 60 Business Peaks 3429% 32761 48 100 A...s 3076% T2 43 500.cents 3465%. 3442, 51 IndustFoad Peaks 3054%. 3098% 44 2937% 29 79, 42 100 Acres 2751%. 2790% 39 2594% 2631% 37 100 500 Acres 2971%. 3014% 43 2858% 2899% 41 500.Acres 3090%. 3135% 44 2915% 2956% 42 Actual Rates Pon FOFma Rates Basis Point Basis Point Plenum Remidentuall 19477 . 1970%1 231 1873% 1895% 22 H Rse?Ud.c Tsi 1981%. 2006% 25 1902% 1925% 24 Mced Use 2006% 2031% 25 1906% 1930% 24 Result A Second Home 2187% 2216% 281 2051 20 MIT 27 H Rise 2151% 2179% 28 2065% 2092% 27 Gadenli 1963% 1987% 24 1885% 1908% 23 Commentaill.motHad 1970% 1994% 24 1873% 1895% 23 Ur2rnbol'Its 1807% 1828% 1717% 1738% 21 Real 2001% 2026% 1902% 1926% 24 Inestrol 1820% 1841% 1730% 1750% 20 4th girttr 2015 4eelN�s.csm" � Cop,iah«1savima=�.m. National Sell-Out Property Discount hates aubmYbom pM MW Rb mRomeg ao®tls armm<nms hir cmirmindmalh eegandea(lmn[mly fidonfled our memw.u® Reece Wummd�a r el®ea ®t mwwdatmilis a ) m®.we Jut cm w mea Sit ectiewi M amreY gym, vI llo-pm® Riding m8v1 tuwd-looldiag rtvmoe ml eailludiar Oeaebgfapotuvoth mal'meit®e Actual Rates Pon Fr Rates ae A Mae Add sit !esidential 2 53201 3372% 1336% 5107% 32371 4586% 3004% 1 10 0 5 0 0 U u I t 7sH n29 6%1 50441.1 32521. 1.1 31841 50 0,Units 1461%1 111 3384% 1403%1 5063% 33781 dead Us. 14 96% 5320% 3425% 1436% 5107% 3419% ManuFaCtmed Housing 1412% 5549% 3567% 1355% 5327% 3358% 100 Units 1412% 4825% 3196% 1355% 4632% 3009% 100 500 Unt, 14 47% 5308% 3462% 1389% 5096% 3323% 500,Units 14 82% 5549% 3604% 1423% 5327% 3527% Busuess Fams 1416% 5274% 3429% 1360% 5063% 3227% 100 cars 1416% 4586% 3076% 1360% 4402% 2895% 100 500 cars 14 52% 5044% 3329% 1394% 4843% 3196% 500.Adde 14 87% 5274% 3465% 1428% 5063% 3391% Il 14 25% 4534% 3054% 1368% 4352% 2937% 14 25% 3942% 2751% 1368% 3784% 2594% 100 500 cars 1461% 4336% 2971% 1402% 4163% 2858% 500.cars 14 96% 4534% M7% 4352% 2915% CpnGRmlplpmp Gigi St roma log aommly divnmt mu Pm ®odandu Y Bov i i®Imom and mcp projel vW®wide. MoralNm wind orbaRbrM by pal mpmtleeb, a, thanwil Pm Axl!Wlwtiryaeameemeepeovmddcelople pafituEetl iuetive0m alms. ReoltYRetpR.cem"ems wrrtgntrn1savid��um. 5 Financial Indicators ea..rm e.wmmm�a. mmr oal w me all n rncie for ft rrra oe.mm& cui romrn,we Wmermveding . Commercial Paper j014 a. 093% 084% 9 056% 37 .ryaiii.(Seal 6 With 032% 022% 10 007% 25 Tommy Yie me Conta= 6 With 033% 022% 11 007% 26 Correctional Faced 30 voWs Seammea rxltyRates.wm" 6 MICI-WON —A k ■o,ux DEVELOPER SURVEY HuMbuStali 100 Units 16 52% 33 2466% 1586% 3246% 2367% 100 500 Units 16 93% 37 2598% 1625% 3570% 2494% 500,Units 17 34% 38 2642% 1665% 3733% 2537% dead Us. 17 75%1 39 2621% 1704% 3765% 2516% ManuFaCtIffed Housing 16 75% 4091% 2672% 1608% 3927% 2565% 100 Units 16 75% 3558% 2564% 1608% 3415% 2462% 100 500 Units 1717% 3913% 2703% 1648% 3757% 2595% 500,Units 17 59% 4091% 2750% 1689% 3927% 2640% Business Pal 1681% 3888% 2583% 1614% 3733% 2480% 500.cents 17 65% 3888% 2657% 1694% 3733% 2551% III Pal 1691% 3342% 2342% 1624% 3209% 2248% 100 Adds 1691% 2906%12253% 2790%1 2163%l are to 12015 isto Opyr the 2016 Rctaht r,racc RIVUHM11,111,DEVELOPER SURVEY LA OUNIFIS 1016 H,Real Teen here 1181% 2173% 1643% 1134% 2086% 1578% Aced Use 1162% 2164% 1597% 1069% 2078% 1510% Result&Second Home 1261% 2363% 1684% 12 11% 2268% 1617% Commemnalfil 9 36% 2225% 1458% 8 98% 2136% 1400% Urban Offers 10 37% 1980% 14 79% 9 96% 1901% 1419% caused Offers 9 38% 1955% 1389% 9 01% 1876% 1333% Retail 10 07% 2225% 1551% 9 67% 2136% 1489% Industrial 9 36% 2011% 1415% 8 98% 1931% 1358% ROD tyRMeR.cal tS ws+..p.erom/m/redmmuwmP Overall Cap Rate Analysis ureie.ayimmmiom.a...- mmmP�w+r+mmma»Y.. nYam.m�...msimmamP .m.muiaa�Wtiu(m)Ne mmammrri.�.m�.mm. .m.hMma,a.mYE.rpuiY dmurYssemrpmed�a,hoM vhW�.b aMfuYmvBmaam ielmmiueu®.he YtlmaP.m and➢mr.md Yummuhe dY 9mr.�NAm-mb tss Weo&s�,raemep4eoM 9.u.mbeWbmmmdlH ak WSP�4mP.tldmtU.AWm. InMmimimeb6 Whmr rm 2m.hCLutrmle2eMM mmuim�9rmlyduaou .EeeW®e1 CAeoalxmuYeSbm nYuml WaYi�09®bvo(mm u.humveRowiY UPmowJh +PPu.mamtioo.iriW qudb .••••••••••••••••••••••••••••• Lffigmlbabeamudemur dlP lmmv8ui9beWPriiW AlWmdaoulm.hP M.h10• M.R Wm.uam6 to Wave the OV®ALLCAPQAL�Al]OP L1l8 aOlaCA4[9 !4!&amry ]Xn.Quvelm ioa6 Caution Flag? _ qvm® c4P4 PwC Real Estate Investor Menta Wi iehiiYe ffm 4V. Pi Pi M WvtlYW - Wb4lmf PaY 4IX 41t .tf W 6W Pi Pi h. M1bbnO&s We Yti,rCi SYf amP rAR� We yn 6R% - Or4Yq SNi ap aP% 1n i6.m, im miaW PNiiP .Ytt o Mrn'WiiY fW4 WviwcM Ri , aaim PM 4jaM,ia Wa{ ea mieam i1m -f WhMUMWs WIt rtl rtl wlt M1Jm�utla iPr,m mµx ON WY }yp MriB,yn 6� .mm,w.i� 6Yi Y1M9om Wm 6Me u Mleietl® <Ym bONRi's WM m m wR 6W O0n w.win.,a ciui ras rimy sera - aaa m m m rmr m 7a rin rs e.iarcmmM w rPos vi mi as i.n rw sus m� w rvr - umsm sas ._um�. im sw®mm Pr ims as u r+n mu+e.. rms am® res - ern ain sew...erY ��i_ cm n a em�i A°m a� a sau mei ran mmn raa 4mm..enn, vi m wmeYm rmi -i mtmramma _ wammm ss m...w PWS i- _ . As a subscriber,you my rpt disbibute this report,in part or in whole,without the prior n paimission o As a subscriber,you my not:distribute Mfr report,in part or in whole,without Me prior wrillen permission of I for the Survey's apartment makers also abit IDO1Bcare and due diligence. for than suburban counterparts since Valuation Issues reveal a more guarded outlook among wells noting rep rota are expened bigher berries m entry and a leek of iuveammaeneWm@ptyudekvmed. to held atrady in moat Survey markem land for neer development tender In mns[ofthe other property eecmn over the mit sea mouths,.greater keep eupplyanddemendabh. Rertaicestaorr RPBNNVPB fortheaty-Werdicefcemarkets Ovrsthepatthreeyean,the Sar, and makers,a mom'stabitiaed'on[- Pereantige ofinveetoca mrsae eaP balanced ie a corker.CBD,prseevt- Incorporates an appreprid,nerve surveyed during each time paiod(see Diegoo6iremarkethespostedthe look to noted with only minor shim in ram increases today(9.z%of them) beglawamvestmencifek. far the caplacavent ofbuilding cam- Table w-p.At 2.80%,the concent w- largest gam iv this keyaeaomption, quaterly overt cap cares. c®paedmmayea(S.O%OEthem). Inadditioe,daiwmwr,mmsteed Friends during a holding period plays aageush'koneofinehighestpoemd ivmeasing gen basis Poivre.Imamee m lirovldeheBa foew ofmase lams an impoit.ut role in accurately foes- for the Feet eight years and under, rim Sar Diego'.high-tech economy, I.DD5me6 Fogwsan RNP INDInAPoN BNmeoFr Function and=body rg-inM-hmu, crstrog the real ease return potential eroeathemtmebleoutlookthatmeny emplaymmtiroWth,andramaing Eves though surveyed ivvasmn hold overall cap lama,diaamt rano,and livsWvrk Bteetyles that appal.to of an ecgowGon.'he ranges and iv- surveyed inveaton hold for the office haoiegmaketasmmomfrrits a positive outlook for the commercial residual cap nares for the CBD and many individual.aid fume.M a eagaofceneotandyesr-egnaaump eatormthevartermnboundiagolBcemarket. ralaremrsdustryfurthenssrtam, suburban mbmakers ofach individ- reffuE,CBDissersaegerseall les tion for ieplecmev[eaaver are, they ue also d dhl of the potential net Office make[ue prevented to moved an Freaking 1.iaveetenmt shown in Exhibit 4 Theaefiguc®dO exhibit + foreddmonalmmms[mmmaema Epmbit g M show,avaages remain risk to the owner-lee rick,lows vatmrhumeetlmataforlargacapkrel IIEPL1CBleffiBT Sualim Fs FaSt SQUf FOOT and are approaching acquisitions with kmerfurmnst CHDeubmakelsthan overall cap care.+ roam for Remy that ere replaced only First Quarter 2oi6 a few those dicing the dim of a prop- coo�wArry nahibit3 erty and that am usually accounted for Natural OF]OWINDICATORS separately a apiW impiwemmb. g�lN9i taw-snw se.a taw-se.w sena Pint Quarter Norio •h.hroamr Survey Raponyam Paxwtam bra-.ass W.a taw-Mss baa mce.xraen ovmnsaeuaaamevxa QdOOaaRWAAtioai6ra the back afthis came shows SMpsuPPle Claw ban-sada Wsd raw-baro bss Gaon v6Na senna seA seven .sera seven .impling seven &.A-WN y.u% 6vv%-Aro% 9u5% u00%-Alex sacs% MMWL=fDrerementreeL ac- NRi"° tans-Mee b.ts $.-Was sort ulama 600z-Aro% a..% 400%-ymz bas% S.00z-f.wz 6.u% awpnoa fa ace makeL x`Wss Bm1N°% S.-8a6o b.sr law-Wath W.v6 Chmeea 65o%-..o B.w% 5w%-oder 6." 55o%-Bea% 6.6r% m6uhfY nee., b00%-w.00% 9.62% s.00z-6w% 6ays 5.w%-qo 666% NwmelFly%en bw-ross b.n raw-W@ Wst mew bow-u.m% gas% ymz-9m% 6.ss% 5.%Fr-9sw 9.;99, AfAR%Nr RarefnnuaOH RArm MligKWue6me ions-bas 9o.a loos-fogs Mas H .w 621$..-romz 9.68% sex-sate[ Guo% 5.a -e.wx 6.car After Bea yPem Of annalg0m9,.slight %Nceepmwerehwce .oars-nay W.is taw-Oss bra Nv ass 6sw-over Ban% 5 -em% 6.96% Saw%-Barr 9.r6% yapwer-ypar�gpe is recognized eermceepmwu 5amz aao5-Mss b.e to.rc,-Mass b.0 ]msoatlw Sudo%-Aver 69596 2.pK-9m% sate% S.oc%-8m% 6�% APwd�k-� NnoM1tlbo SSo%-Aro% 665% 6.55%-6w% Stl% S.00%-Bea% Cars this quarter far tb¢agglPgOm average Neonnl Stop-axava WS cors-tarso $13 Pa�"Pbs, len Sudo%-rola% saes% loser-Aro% 5lA% Cath%s00%-Bea% 6.v% reinal-yor reaket rent change rare 5pysygpieeay awp-aL6uo $468 two-i4wo 9165 Plued, v 9m%-9m% 9A6% b00%-Bea% 6.90% b00%-Bea% 9.R5% Sents rex-raaox Sew sex-sew% 6.sea ssw-9sw 'er9i Pearn stir awe-iso W6. Rea-two ecu Bm Oiryo 6sox-w,w% r.99% sea%-Baro% ss% Ger%-6t5.a r.u% Caere cors-iLwp kw crop-dspp a190 Blah®am aa69r-Baro 6qB% 9Ap%-7m% 4.90% 5m%-8m% S75% YJIe Yi-i ewem ssw-rola% 9.a% Low-Arse% uses S.or%-b00% CioN aRM4T8UlNAN88P ANNT Naticalm Mw-$sew such sem-bw bs9 80vlhwuplord, l00%-roam% naso% 2.w'.a-Bao% 6.6.% 45o%-roam% 6.Bo% CghN4N H.11Pb NetimaBobwWe Mw-$sew " barob - bo sure WwSIOBw4 a' sar%-Bm% 6a% 'ea%-6vi6 .qo% Sm%-6a Ni SeS°6 rRy+aPeaHOOna BtalFb Only A6� i0.w-$pep av q $ua-seers 80 A9 miwaaen ovausraemvaemvun aemneuvemaaAnoxaAn mw Bpqun fou-Mn Mai sears-Was agar Aileav use nnw .use naw e+va cave®tlmb 9m%-m.00% area 600%-Ag% 9M% 6.w%-aa5% 9.69% 'Qui aAke% nen P°h,bl vesiv $aro-$sew toes baro-bass $" nwwa 9mz-m.opx a.aa% smz-bow ease% 6sw-easz 9.qv% @w asoz -ro Dara" tau-$Lco baa b.0-dsp coal Clmlttee 9m%-ss00% sally% 6w%-Bow sill% 6w%-Byw 'aero +w mew Soto-Waw sett bars -into fD98 chivap 9.w%-tam% 9.y% saw-rola% 66t% 9.w%-mow B6a6 nm.e' law-baro Bp.Bo W.w-WJo roars mew 9-z--ever 8.1a% 656%-9m% 7N16 bow-9mz 9.13% QM 0-00% as Howl® $au-bio " b.0-bars ram rase 9mz--.mer see% bow-Arose 6.9e% 6sw-94x% 9.58% Met sea% +sur IrsAvg" raw-bass saw b.w-bss bag H. sato%-u,vo% %i 54e%-cavo Mini 6vt6-w75% 9.66% ars 5fmhnb -baro Such bath-aLW foga 1 A,,dm ids%-Aow 6A6% +50er-9� 5a6% Sdw-Bea% 6Aa% Q.w Lyk96 +>Jp 2nv tia uaWxose "-son M38 W.m-$-m i0.33 NeMwYu®ea bow-96nr 9.96r 5w%-8.6w 6.a% 5a -6w% 9.216% rQu a.qi% +u6s ra-Meekest Mus-cion $uN ares-Moo Meq h NmtLrve bow-um% 9.96% bra%-9m% 6.,,% 5m%-Aow cars, Qua fryi9Q -9214 PhUddPhle $o.e5-bT $vsA bass-baro $est Phade¢ti. 9.55N-rola% AU96 7aw-9m% eap6 9m%-9aw B.ire Wes L" - Phi io.w-Mass suss bars-9ogs foss Pyv� 7-%--% 8.m% how-sew% Sao% 6w%-Binz 70% A4O Bmniw b.co-fan nom sem-seas $W Bmeiwo 6g%-wyw 9.58% ses'-860' 6.m% Bard-8." 9.ry% iQot 94)i% +45 grahm3e, Mw-Map aa21i W.w-Mao $oar 8mhmtlwa low-rola% 7" +Bo%-Aow 6.w% 55w-Aow 6.68% W07 34Y +wq Bathe M.os-as.00 Myr Mos-$Soo $W9 BwWa bow-um% 9.85% sea%-9m% 6.60% Aow-Aow 6.98% iQp6 2149% +88 s^eeee^aN�n W.m-"o baa sow-atop $q 6ww.nn®m 9mz-ndw a.n% 5m%-w.ow 7-1% 600x-wdox '88% _ e,y„yea NerimB b.0-8a9s M98 Ma-Wary $- 80bwbmAlmylavd 9.95%-ro,vo% 888% 6w%-9m% 9sa6 66w-y55% 9.BB% tQuS iy9' Wedivglm,nC MK-W.]5 ia218 Mw-M3 ia21B exu Wim m,..wimv .oleo:e,:pWbmdwtm yawn AUQPnCWhtl,c imamiman PwC www.pwc.com 4 PWC www.pwc.com 8 subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. a subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. h I.,.. CONrma•ma liven nmket(Rber laducenents, rent is offered to mare degree in each MANAGE14ENT FEES AND LEASING COMFISSIONS While tenant mncesaiovs remain mohaotbeevodoarr evtofdkher Su rrorket,tleum Laegmwvin Rivet Quarter 2016 mo9mov throughonfir i(datry, naviogromorlaebvytraare threeofthefonrapaltuentararkem araaea®marr®wnzw raaawmmmnave between ivdduel offered ovaar]xTbeee. overthe mrearMaeomaavnau® Nawvem avmwn9� tdeYrvalrgeatly' past Year. markets and propertlee and MAerly As ah.in Exhibit 6,mugbly In the Survey+.off.markers, National indade moutha offree rent and/or 86.o%of our Sarvry parkipavts renrIoativg fare rant ivm lase RepomlmaB 1.m% 300% 253% W W W (e) (a) W an extensive tenant improvement ivdieete the are of free rent during vegaGatiove is uvenimaes except in Pro vCrn. OM% 6.00% 2� 6.00% 5.m% 2m% S.oa% &1996 vego (T StiiP aboppm6 Cath a...% 6.00% 3.41% a.nn96 &00% S'n% ..% 5.m96 2.1m6 Q allowance-enadditiovd knee tiati0m-elighayLuer the office arukeb of Dallas and San MDo 1.m% 5.00% 254% 3.% B50% 395% a00% lm% 3.95% amount A.the standard Tr in a then a leer W(a4.o%).While flee 19kanekm.7 30bm ea QMe lao% 62096 3.ra% 3G0% &00% S.Bs% v.W% 1.00% 351% N.Laaa r.o006 S.m9r v95% 3G0% 6.00% 4n196 200% 6.00% MV% azhrhrt6 I6a ran Bmftw 1.30% Y00% "a S.00% le0% SSr% 10096 &GG% 350 CONCESSIONS Indeadil Rvet Qaart¢r 2m6Neuoom .00%/Ball lee% 4a.BO% q.0096 750% 6x0% 20G% &00% yq0% alM National WawLouaa 0.00% Sea% 2q3% Yen% B50% 319% 1.5096 B.00% YS9% mmnorareaerr roameapevaarrW mvwemn'nrama.00 MRepm Wtwonar, leo% 300% a.)5% ben% 9.m% SSo% v5o% 6.00% S.rB% cuamrr ruaeao rear ® nvwos armar0mreev.m nave.a PetlB06ed00Wu¢h0me lao% 300% 2.8696 3m% &00% bTv% 250% B.m% &n% National Aparonat RadovY Kdl qoa% tlu% (3) NWOOal 200% 300% 2.90% W (a) (a) (a) (Q (t) Powv Caata m.o% an.o% 0 5 Mld-Aflavtl¢Re�m 1.)596 4-1% 2b9% (a) (a) (a) (a) (a) (a) BodpahaPpiarC 6bo% )5,0% 6 s $20.00 $752 radGaB.gov 1.9596 4.00% 220% (a) (a) fa) (a) (a) (a) CBD Ma ..% 86.0% O 6 $t $15a Sorthaet R.0a 2GG% 3.5a% 2P8% W W W (a) W (a) Buhmbm o®re 8&0% Me% 0 m 5 tea. Wer Nelsen 4Gn% 4G.o96 (3) Btwoo $1- Oma m o®ar Bafflw 69.G% 61.G% 6 3 $AS. $85o Atlanta 1.$m6 4.00% 2.m% q.00% 950% 6x0% 2oG% 6.00% 69096 Bemvdarycxim vp.0% gG.o% r ro 6 {yto0 B¢t5 Bmmo 1.m% 4.% 2.19% y5o% 150% 416% t'% &00% 619% Ian Chaabtte t.'% 300% a'% 6.00% 650% &05% a00% 6.00% 39096 Morrao 1.25% 35a% 220% q.00% &00% 6.c0% 4.m% B.Oo% 6,e% Nmood Hen/RBD go.o% 1m.G% r rs 4 DrIle, NMR. -WeoWardlaoue 92096 90.0% 0 6 9 Dene 200% 4.2096 288% YGG% &Go% baa% 2..% &9$% 5y6% BNC Ragaaueyo® 1m.0% man% 6 3 Oman 1.m% 4.00% 2. % S00% &0096 650% g00% 1.00% 4.81% Pad&Repw Warthoum mesa% mvo% r 6 x amWm 1.00% 300% 2.9596 2.% 6.00 300% l &00% 4.07% Apv�r Ip AOBtlu 1.50% ben% 285% 4.Oo% 9.00%% 369% veo%5o% 6.00% 3gr% M®hLLhn a.GG% 400% 22996 3.00% 950% b%% v5m6 Sm% 3a% wad 6.o% W.o% O 3 oar appBable tcfidr vpert9 rype N WYryma 200% 4.00% aro% Yen% 6.% Sao% 2m% 71696 bA% %m'ARgpan U^0 40e% 50..% votapW .fiih@GM+VrrPa patl6c Plda [ lep% 4...% 355% 300% 750% 6.,90% a00% 150% 4.8.% paodaPep. 6G.0% a.G% sa votepplinblem Wupavpeatytype Ph0addpha 1.60% 300% bfi5% 400% 6.00% 31696 200% 400% 2.8096 eoutlwnBepov m.a% qO.a% o v5 1 vmapglar6lem Wie paperptype Pham 1.$G96 4.0G% 2.1% b00% floe% 689% 300% 950% 4.qq% Caere Sanne,p 200% 4.% 3.m9r Seo% 1.00% oG% z00% Sm% 650% an., 120.0% wo.0% 6 $10.00 $30G Sm Prt0tlam 1.00% 3.% 2.20% ben% &00% 333% am% &00% 3.08% Boame 120.0% 1m.0% 5 BSO. $a20e serale I.W% 350% 2.58% 300% 9.50% 6$5% .00% 150% 380% CAVWB¢ wo.0% wo.0% 9 B30o $53o &,mhm[Mmida 200% 500% 3.19% 9.00% 9.20% 592% ..% 6.00% 363% Mi p m 0% 1m.0% 6 rP1 $'. Bi5.5B eobmheomaMaei 1.m% 3.% 250% 350% 150% &as% 10096S.% 2.61% DaBm 130% 83.0% 1Soo.00 1411 WWdnpml BC 1.m% 3.% 2'996 ben% 6.00% 483% 150% '.m94 390% De`E .0% man% 4 $1400 6563 Emrtava&0% m&0% r 24 8 $15.00 1617 (r]tlmi°'m^em,AJeW®{ra�rfu°ubemrep®�M1®®pnv' ro,aa'L 1m.0% mu0% M 5 Kad�rvAme� YavhaViv mn0% m 0% O 1 "moo Wer NmtLw Yp9tia vw.0% araC% 1 BAS. $v88 AfANA(i81reN'[FP.Be frons eaneinordmmdmt rat bepheedertheraboveorbelowthe P Nm@aert ..% 220.0% 0 5 soo.m $+4.38 Mmeg®Mfreaueedivaahtlmv operdivg mane INOA.Manag®ent Nor live,mostieerroas covpda Phead*lda 1m.0% araC% 3 9 5 W.GG tMo projertion.typrallymvmtituteergm, freeeeomptiooe.earnesedaealmr, them a'bela the-hne" lilaPham 1m.o%% m 0% It r� 1 Woo bl SanDIWenin-hmee related duty erpmaedm mnhge afeffmtive grass avenue manag®eat fees,keeivg--arch- Sanpraocaw ft.% BS.o% 0 9 4 bo. $ao. an Nidiated mmpvy ora thiel-party (EGR),are detailed in Sahli[5.The atms are usually expreAud ae a per- Barna ara0% W 0% 1 6 conpaidtoanarteidemeoagemmt avaagefortlnmllarveymartmeu .oagn of ECR Current leaatng cam- Soatlm.rt Plmide ..% t0o.0% 3 6 BtYoo 16.15 amGrwamNYl.aa ara0% Wa0% s 8 Sam.R.,.dl aofh.they are 296%. musiovam.umptioveforbothvm wmhiotooM 220.0% mo.o% s {s5m Was tra.ted,mmeg®art firesangenenl- lama and renewals am detailediv lyivrludedner%bove-the-line" LPA63N(.C� Exmbit S Moat taoges and average opaeGogeapeomandandeducted Although kaatng mmmieat0ns araY roarain unchanged from last year. m3mrm,p plv,aw mrmm avamma/mawNa. PwC www.pwc.com 6 PwC www.pwe.core 1 i subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. a subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. National Secondary Office Market National Strip Shopping Center Market therobaet Paceaftramectiwein ellesptatedipentsispoimathis Astnveatm)utneatrenaina nyR rent growth eapecledon rennins the national secondary office market qunrtaandsiteat7.3996(seeThble KEY IQ16 SURVEY STATS- strung for strip ehoppivg occur, a slightlybelaw italeng-term average, REYIQI6SURVEYSTATNa awHavee r mvrcr seek opposto SEC-1).Second,the average initial- .r.®� ®gam: li"curmpetitivebuyivgen. it Is°maring it the rlght direction- mdeaforgruteryieldethenfouudm year,market rent change rate We Avmage wcut stilledas,especially for gea)i- for prvpert9 owuro,particulrlyin cony Ptimarymarkeb.wharehigh basispolvtem365%.1haPRn ethis • ty ants in good locations and with robust more vacancies ereetros,whAveae �. demand and limited supply have ele- decline,H rennins a bow the avaege QBOce 60.o%m80.o% strong anchor teoavta. belga the nationals 3 Rrgs 6oa%m85.ox 't'Op-pE[fp[m per8g0. PBOltle vated pricing.As shown in our US. of 2.80%for the 19 cdq'bPecific arise Mamha oDkec RmN`: erg offerivga cent rihly priced; cities noted by surveyed invasion no MoaW ofFreRomm: CRE Stack AcquieNou Trends analy- nukes m om survey. Averse fir • remarks a participant Wide condn- 'hot pmsPeda'fm ownership in- wmege z euwpage t6,navy oftlm mama Slone rant F.&PmsPeria acv uovs cep rte compreaHmwr Lugely dude Seattle,Westchester County, whhabatwAecgwdtiou andtrcton iofthevriausrhanenwe Ravp rmw respwwble fw the aggeaeive Pricing Omvge County,and Fairfield County, %segs aw6 ove-avvage pemenmgrareconcide dreoadair ivvrronexprerfmthismsrket %n[puticipmr usual aaaa96 _ reaRudovmthepnetseveralquar- Conecdeat %ofpeeBeipm•mag Ego% n rkeb,Like Phrases;Minneapolis, including ricius intact rates,declin- ArereR Ovens on,Rreae ters the aaticipatlon orhigher rental While some investors cout..to Mmlut amdmata Favor: Austin,and NashviIle, ins oil pricy,a slowdmw in We tech cotes amid improving fundamentals search for opportunitiesinsemod- Rrket(rewhde) 7a9% Bayba O.u% Although the shift in Hdemaket'e employment sector.and queatlonabk vstarting m dries pricing abit mor. wry rvukOis,others are strictly set- evergeo9.u-Prensuggma Pricivg.'Hvyer mustvm overyryr CBD 7.u% V "We like what we are finally starling Hag their sights on mejen nature saI•a '.u% a[rongdaoandfmraebiu Hrese the yield to earned on the buy In suberbe 7.66% V mesemterms ofrevc ervwth pomv- and infill arae where they believe Ncima a5.u% ciHr,imesmroudookhmcooled msnyeerondaynnrketa asplxins •v.a.-avepa—vim deal,•shares an inveatm. avaall cap rata wlR hold up better mwm for mture rent grow W.Firer,the weer aninvcmr.+ Im®.raswWw even though this muketb aver- aver the long term.+ INm.mr...us T,nre aKC-1 Tsars e NATIONAL SECONDARY OFFICE bIAREET NATIONAL STRIP SHOPPING CENTER Il ARRET First Quarter 2or6 Meet Quarter 2or6 1.'IRB&rI LIBr zY8g0.AGO aI'6a%BAGO CUl88Nl' Idgl' aY6a%A40 YgaBB MA Y&1%BAGO Race, M'atAl%peay DIIVCOUNT&118QW' sang S95%-rs.5a% 5%%-un0% 600%-rzw% 5996-y.a0% seep 6.00%-ray596 6.otl16-w.7596 6th%-v.w% 6.$096-v,50% 6.9$%-u.$o% Awep 0.98% g6o% 8./ ga,es Avau s 766% ).)8% 8.09% 8.gs96 IWX cheae(Beda Pore) +res -r Chmp OaaY Pavb) - -4a -76 -w OV8%AIYCAP LIT%(tIAB)• L1AP%Al%(aaA1J` Bene q.6o%-raw% ¢60%-rave% ¢6v%-wA0% 4w%-u.wPanic Ravp 405%-95a% 4S0%-9So% ano%-wan% B,W%-95a% SSa%-95o% Avenge M% 7.Sa96 755% 8.06% Aver c 6qr% 6a8% ren% 7A4% 7-0096 Chmeeussu Poab) -aa -a6 -67 claoss(Bmk Parcel +a -59 -63 -99 %B®UAL G1P 8A18 Ra8ro0ALC5P%ATS 6avp 6Ao%-rano% 6w%-..m% 6.o0%-.% 500%-wya6 Veep 405%-995% 4'15%-905% S.w%-wen% 6.00%-u.00% 6.$0%-u00% Awap 7." 7T06 794% 8.s24 Areas, sees 600% 7a90% 73r% 8a0% cheasleaWpohus) 0 -a -A u -60 -r6r RtorRTamar®APacp Race, 'RRN1'C9ATIrdP rp 0.w%-wen% O.w%-wen% 0.00%-w.w% Om%-BAO% BneR 0.w%-9aw% 0.00%-FOD% 0.00%-gw% Avenue 3.65% 9.99% 3A 3.4% haves 194% v88% 144% aq4% :i9% ChmP(Baue Pohr) -a -aa +6a meep(amk Panel) +6 +So +7i serve CHANU@ aRP8N9afaNNOR' 6aae ryv%-9om6 zw%-Sw% z00%-900% za0%-900% Wap om%-9.w% om%-}o0% o.00%-gm% 2.$a%-400% z.w%-}00% Avaye 2q5% z5q% 2g96 a&f% Averse 2.7% -7A z7¢% aoa% 2.9806 ChmBe(Bus Pleb) -8 -8 -9 Chrp(aaaY Ptivb) -err -26 Brae a-9 a-9 2-9 a-r Wvp -a -a er- a-aB a2-9Avenue gB 6.s 0 6A Aw g6 66 50 71 8s WmvMaed8u6e.aW, hYYW mJYup aYmmY bmm6ewryJ..a®a4vstlm, hWlW aartdga sYolb Pat www.pwc.com e8 PWc www.pwc.com a8 subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. a subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. National Suburban Office Market Chicago Office Market Theomasvawnryote for the rate name,up-M sdSv ba®epohns, Positive absorption trends vould Company'evewtvweroa N.Pravklin national suburban olive market on, rrpaiiv*And ee.ad,us average XEY 1Q16 SURVEY STATS' blodybemarecvmtortingtainvea haecvmmitmmbfvr abouebaffof KEY 1Q16 SURVEY STATS' tiowdateendofWartaTydehars intialyearmu4etaotcbaagerate 1'etam Betatron Ante: ton in Chicago's CBD office market its apace.'Hack-filling the vacated Trona y® : inthefamlhqumterofaoi,5,ending Apse bni pohnstoz.96%(re iflmemmtrnceonwasunderwey epaceathrthetvioneardelivedeA eei theyoz,9 4.y%apa Cashman& Table 5).Rising overall cap rata and Arrange 6,n% • avdsbadowspcew®4 aaexpaTedto could reduce rental rats,'remarks a Aware �. Wakefield This figure stands 6o basis dedinivgmarketeentgrowthrme genre So.o%to7 o% graven much inthe mmiogyar. perildpant Also helping to dlm)niA surge lion%m85.o96 poimebelortheavaagsbutyesraW asumpti..lad in a dmiokbed NptarofPep Aml'e: ' srowevevewdeveloPme^t,dowa- rental rats could be the nearly art BgotW orPes Asa'°: zBobadspomtslavathmtheavx- outlook in terms ofvalue appredation Awap 5 • avmg-ante,and rising interest m11[ionegvaref6stofshedowspace wwage ss A Me fear yeas aro.Despite these pa- for this market BpedficRW,its aver- ones all conn us;shares apartio- (space left behind by trusts that rove shifts,some surveyed investor age is-month interest value dotage &e°gs emu ipstew Na N cewere udenwy bshrdafe aaeddawnda)atimaled &seg° limas r®ain'wu000e'and"concerned flleslightlyto3.6%-do%nfnm %o(padripaess0deg BB.o% • or set to break ground won include in Bond this offine market beDveso %orpatidpeemag ronoda ahauttheabilityforarainaburbs 4.o%lastquerter. sfr#tCaemmva Fgamv the 5"ory,Riva Point an W.I.w zor6andzare.aper CBRE. Araya ova.0 cap AeG•: tosurbineccupaney" BperdveubucbanamsPiquiag BDethe 5"tory rowconcerar never on N. Other fa this office Buys amu% • at, BBadw[(r eMWe) 784% Qurtedy rbaoSs iv tea keyaalr hrwsmtt'h%astircyodebi(nneapoW, Riverside Pleas,and the 95-nary market iedudevueedalvty in the fowae•tmptions russet investor.' Battle,and Philadelphia.'Poo•ag s%like' ,o96 • tower on N.Franklin. equity markets,rising nal state MD 6vA6 A goerdedviewpointofodsmaket on fundamentals remains key for de- Neater dao% • While the fiat two naw oSrce uses,and the fetus of edt cap Saturn &lir% A Fust,both the law and high and of mdmg when to bay suburbs allies ••,A,-amv6wvBw9mm buildings have preleased the m,)ed- rata-'Where will they be when l •.♦.-Ae�6®pa..owm the range for this market'.over.cap -rata;.O.pertldpant+ I (ame�,w9.w ty of their epace,The John Burk get thea?'veonden an investor.+ Iwm.lmp.e� v..'.r T.6re t NATIONAL SUBIn3BAN OFMCE BEARRET CEEECAOO OFFICE DSARRL+ff First Quarter 2016 First Quarter 2016 CUB%&rI IA4r(tUAHrg& aY&&&AW gY&arBADO gY&&%B MA CD&B&NI' 1.6&1' A1R'BY sY&18ABD Y&fl&AG0 SYRAIRS,A00 DEBCOD%TG1'B(IIlly DIBCDUIpI'GTB IreFY Sup 5.'IS%-v:.00% S'15%-r0.0096 lion%-.o% 6r.%-.'o% 65o%-ss.50% Brae &.%-.% Goa%-ss.0o% lino%-rx.00% 6.Bo%-r % ].00%-rise% Avanp 9896 7.6r% 7.9B% &go% gar% Arv4e B.5896 8.5916 8.7ne a.W4 9.55% Chap peas roan) -9 -26 -n8 -M chv:a(B Pgeb) - -U -55 -q/ WB (IAPG1%(DABy a 9%G3a GV HAM(DAU' %age 4S0%-95a% qas%-9.0096 &uo%-90a96 '.00%-u,ea% 58046-a.5a% Beo6s 6ao%-ra00% fine%-u vaX 496%-u.m% 196%-u.0096 G00%-u.m% Avenp 648% 646% 6.644 750% &04% Awep 9.30K 9yo96 9qx% B.ss% 8.33% Chmp Cases Pore) -z6 - -166 Chrep(6esis Pools) +4 -8 -98 -9g %ffimUN.GP GTH RHImUALCAPAATB Sup 65o%-ry5% SSe%-945% &VX-950% Goo%-v.ao% 6{o%-ry5o% usnage fi.5o%-rano% 55o%-ro.OaX 55o%-w.00% &W%-u.00% roost-v..A Avanp 9y9% 9.so% 9.33% &03% 8gx% Aeneas 965% 269% 7A9% 8.1096 a."% ChrreCaere Foam) +3 - -so -%e,9 (%sop(B2®emewl -4 -a -A areas '3'%HNr CI1ANg.8° ➢gARgBI'll%N'I'UGND9 &sae O.0096-S.00% D.00%-S.a% ora%-5.00% (3.0690-4.a0% f5m%)-400% Bu6s ora%-45o% ono%-450% nom6-S.om6 Dour%)-3en% 0outy%)-3r.% Anemia, 2.71% 2.88% v56% W% 04a% Aware 200% van% "M erg% (n.u%) chop rears Posts) -g +r9 +W +a93 C8a0p(Bukaanl +s4 BH C9ANDlP E®ANI:@ Roo,v t %-4nr6 %-4oe% 2 %-4oe% usage, 200%-5.r0% 20aX-5.00X 2.0o%-3.00% von%-3,00% 2.on%-3,00% Avwae s.a% 2.806 295% a." 283% Areae 3.:4% 3a4% 2.86% 476% 4r% Chaos mare Paan) alb +8 CAmp(Bw Pmewl 0 +28 +36 +qa m^"`^-11818• en%%BrP10l1ob' &sae 9-u 9-u 9-u s a-:B a-y Buse z-e a-8 s-B z-g 2-1 Awnp 64 64 6a Be Be brass 4% 4r 4r Sar 9.3 emmueam%µvvmose.ew mewam¢ %mmwe�.s0we,mim, w,tamw PwC www.pwc.com as PWC www.pwc.com a9 subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. a subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. National Net Lease Market National Medical Office Buildings Market Invrlon'thwg appetite fm entail sector had the highest price ever though surveyed invPAer graphic areae and few.capital asses to the national cat lane. per egmre feat at$287.00,followed EBY 1Q16 SURVEY STATS' rite several headwinds for this mar- smueashavemmeintoreplam REYIQI6SURVEYSTATS' W has ircrered cemp¢titrs and by the office sta0r a$26o.00 and MWkn cmd(tovs Fawn kat in the coming yen,the ration] them,"explains an ivverm.In addi- pmregp�y®Ben: led to record-setting ad.volume for the industrial secm[flt$y3.aa.The gam oA% e: medical office bwldivgs(MOB)mer- tion,imsAmm warn that pricing is at Amara 7.01s net lease office,lydumewl,and entail average sale price Par square foot in Awe ,aOA% • kat Posted roco+d-high sales volume 'peak levels,"particularly for'good properties.In 2oi5,the industrial the retail sector showed the largest in 2o15,exceeding$11.2 billion- quality MOB product with strong . 60A%mgo.o% stain Posted a 30.0%incomes in ).Freers.form tom to lou. MmWOlprw AmL• thebigic am-flovelprtedm tenancy.• MOm%a OfPxea BOW'°: net lease.alesaver the Pria[Year, I)eaPBe ivvesaent Investment de- Away W date and nearly twice the level The challenges facing buyers are Aamege g a¢ording mgoal capital Avalytra. mend,this market's keymah flow gorge W reported in zooy at the prior cycle highlighted in this quartets invest- The oBiceand rereBstaaneach amumptiim reved Insured quarterly %ofpawidpaobusing D) pork,ea per Beal Capital Analytira. meet criteria,which reveal limited game ,m6 mw a 16.o%increax in baht se tae shi[b.The swingsov.B rep rete Amidtdambustpaceofselr, may®ent(me Table 33).while in- %orpertiapave mag 61.0% during the same time period. slips jest those basis points while the MOB bayvm are concerned about vvtonholdmixisdviewoeproper- AveypCamasCapAetna: &lelrwbrh Cerb)v ivvmlme are concerned average Initialyear market rear 24A% ♦ the shift to for this tyvolve appreciation hers,ranging MaDlw[(r.whale) G8396 that pricing on aper-equate-toot change rete hold.steady.In[ler Nalrr Nr g&a% ♦ market end the lack of new eorrw fromedecline of 5.o%to an increase basis is getting frothy to this reactor, c®)vgyear,omivveamm caBtttively rag,rrhaogu ,6.a% A of capital.-gFJrs have become more of lo.o%.the overall average is a Onesmas 64]% "Them u too an&money chadeq foresee net lease property values ria- FaBdmrah 24.0% A cavaevatreastheyareselliegbelow value Incomes of l.3%ie the coming Of®pr 7.319% we few high-quality deals;Immune ing an average of4.]%-the second ••.e.-amr•ampwmam NAV(nm mot value)and have very year-down slightly from a year no ••,e,-e6a�6®pM4anm a participant In 20&5,the net lease highmtforrsatinomeurver+ Imer'rs°'st`�e""'�e•r` I when the avenge forematwr r.9X+ Im®•�� x.ra a• rmla 33 NATIONAL.NRI I.H E BL1RK6f NATIONAL MKDIG OFFICE BUI UeUS BiABR6T Fiat Quarter 20[6 First Quarter 2016 CUYAffiIT GBx UAAl88 aYPAAAPA Yg6AB AIA YBfA%ADO CDHggNI' IABP QUAWTER ,YEAAADD Y85ABADo TEARSA D DB9CAHNP BATE®RY D19CODNr HATADHHf Brp 6.rr%-mar% 6.rn%-ram% &oa%-9rr% 7Ao%-90096 7ar%-9ro% same 000%-rwo% fibs%-uAA Geo%-i.% 6.0o%-5}aaX 71P096-rgAa% Awege &009, Me% .6g% 789% &y9% peep 796% 7.9M gAa% B.%% 944% C6avp(Bablems) in +r] -313 Cvre(Aaw Pnanl +5 -6 -98 -48 OY�.tI.L1AP WE(DAH]" DY%RNL GP BAT%(DABY Badge 5-A-vne% q.W96-9Aa46 Gra%-&5a% "cli-8.16% 6.M%-u.ao% Am6e 495%-moms 111%--K 471%-m00% ',o%-,.% 65o%-u.5o96 Av 6.]5% 6.78% 6498% 7-,5% Aso% Away &8896 GAIN 6.98% ].Ae% &xrx chmpaiwaPciss) -g -is -40 -In PArgiol"Ifein:s) -1 99 -eg HABIDOAL GP WT8 GPHATA Heap 6.00%-9m% 6.00%-9ur% ].m%-9Ao% 7Ao%-9.m % ,sn % 2or - o% gprgRiope fiEo%-,o.6v% fi.fio%-robe% Sbv%-m.fio% Goo%-u.00% rises-,l00% Awege 763% ].(g% ].A,% &19% 9.00% Amye ].U% 7.49% Ng% 8.02% A.9% C6enp(BabPnMe) is -gp -197 CArp(A•XPrion) a -se -89 -Vs Raise ffiTCHANDHe sense I'B@I'P CDAND9 AaaF 0.00%-8400% aro%-8400% Oso%-%ro% 0.00%-9.Oo% (&ro%)-4.0094 Reap ore%-4.ro% Ono%-oro% nom6-3nu% ore%-goo96 Avmp ,AO% i.Ar% ,.8696 135% 107% Awep "M 0,10' ,.9s% i,se% vin% ChmplAeueP�) -5 +95 +pry PAaep(Beau Ptie:e) +39 +99 &8Wi88 CHANGM, H%P ECAAPIGI4 Beep o.00%-g.00% ore%-3.WX ono%-gm% nor%-g.co% 000%-900% Range von96-4 ea% von%-qAo% —%-4.0o% v0006-4.006 —%-4.00% Awege vry% v]o% anise ,.go% v 2% suave x4P1% vgt% 2.46% 043% .31% Cbme(Bad+PdMe) -45 - - CLaap(sisi`n] a - -9 NGT0f8' PPIO'g]SN.- Raise ,-a 1-is ,-8 Rare ,-s ,-m 1-9 ,-s ,-s Aw,a 4.4 44 45 49 6., Awes, q4 q4 44 49 5.9 ben Wytl.au6arYm. arrmJetge nYvm4 am®Wmm{ui.asA®Ys b.Ytli,nJRye nY W. PwC www.pwc.com 52 Pwc www.pwe.rom 53 subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. a subscriber,you may not distribute this report,in part or in whole,without the prior written permission of PwC. ECONOMIC INDICATORS - February 2016 Conventional Home Mortgage Terms Feb16 Aug15 Feb15 Aug14 Feb14 Feb13 Market Ril and Bond Vieltls New House Loans-U.S.Averages Feb16 Aug15 Feb15 Aug14 Feb14 Feb13 Interest rate(%) - 412 391 424 4.04 349 Reserve Bank Discount Rate 1.00 0 7 0 7 0 7 0 7 0 7 Term(years) - 28.6 28.6 282 286 282 Prime Rate(monthly average) 350 325 325 325 325 325 Loan ratio(ad) - ]]5 777 78 76 ]].0 Federal Funds Rate 038 0.09 0.11 0.09 0.0] 0.15 Price(thou $) - 4582 4495 380.8 4495 38].1 3-Month Treasury Bills 031 003 0.02 003 0.05 0.10 6-Month Treasury Bills 044 0 05 0.0] 0 05 0.08 0.12 Used House Loans-U.S.Averages 3-Month Certificates of Deposit n/a n/a n/a n/a n/a 022 Interest rate fed) - 4.15 392 424 4 4 356 LIBOR-3 month rate 0.6] 024 030 024 026 029 Tenn(years) - 282 282 28.1 28 0 269 U.S.SVearBond 122 163 1 47 1.63 152 0.85 Loan ratio(ad) - ]8.0 ]8.0 78 3 78 8 ]]2 U.S10-VearBond 1 7 242 198 242 2 7 198 Price(thou $) - 3955 3815 373 356.8 34]9 U.S30-VearBond 2.62 320 2 5 320 3.66 3.1] Municipal Tax Exempts(Aaa)t - 328 3.05 328 3 7 3.08 Municipal Tax Exempts(A)t - 392 3.62 392 454 3 7 lonventional Home Mortgage Rates by Aatrop� Corporate Bonds(Aaa)t 396 408 3.64 408 445 390 Corporate Bonds(A)t - 420 3.81 420 4.60 4.19 4Q13 4Q12 4Q11 4Q10 Corporate Bonds(Baa)t 534 469 451 469 5.10 4.85 Atlanta 436 345 428 4.63 Boston-Lawrence-NH-ME-CT" 420 344 4.14 451 Stock Dividend Yields Chicago-Gary-IN W11 447 350 459 455 Common Stocks-500 238 216 2.00 204 2.0] 224 Cleveland-Akron' 4.63 354 423 440 Dallas-FortWorth' 438 345 434 451 O t h e r B e n c h in a rk s" Denver-Boulder-Greely" 446 350 423 450 Industrial Production Indexsl - ]Z6 78 ]9.1 ]8.1 77 8 Detroit-Ann Arbor-Flint' 424 342 4.12 456 Unemployment(%)I - 51 55 61 66 ]9 Houston-Galveston-Brazoria" 446 344 4.15 4.60 Monetary Aggregates,daily all Indianapolis 444 346 425 445 M1,$-Billions -11 3,0495" 2988211 2814411 2,]185 - Kansas City,MO-KS 4 2 342 4.14 522 M2$-Billions -11 11,82031111,820311,440511 11,1189 - Los Angeles-Riverside" 4 3 355 436 4.60 Consumer Price Index Miami-Fort Lauderdale" 441 350 442 4.64 All Urban Consumers - 2383 234.] 23]9 2339 231.1 Milwaukee-Racine" 452 339 441 450 Minneapolis-St.Paul-WI 451 353 438 451 4Q15 3Q15 4Q14 3Q14 4Q13 3Q13 4Q12 New York-Long Island-N.MLCT° 436 346 425 445 Per Capita Personal Disposable Philadelphia Wilmington-NJ' 450 355 435 449 Income Annual Rate in Current$sN 42,091 41,881 40,962 40,629 39,416 39 305 38 582 Phoenix-Mesa 447 356 442 4 7 Savings as M,of DPl11 5.1 5.0 4 4 44 5.1 4 Pittsburgh 447 352 438 442 Portland-Salem" 440 349 431 444 ' onJuna25,COUP,the Federal Resere Board advanced to 2RC the base yearforthe indexes of Hersel production,capacity,and elecre power St.Louis-IL 436 340 436 459 use This follows the Nor ember?2005,Mange to a 28102 baseline from the previous lRt]baseline.Historical data has also been updated. San Diego 425 356 4.19 459 n Seasonallysaadjustealeasing this figure in MarM2ooe. San Francisco-0aklanr4San Jose" 4.13 350 4.14 454 t Source:Moody'e Bond Record n Revised figures used Seattle-Tacom aBrem erton 429 347 4.12 4 4 TampaSt.Petersburg-Clearwater 4 5 3.60 442 4.63 Washington,DC-Baltimore-VA" 444 346 4 2 441 As of me nm quader2103,the Federal Housing Finance Board no longer repoded on the markets of Greensboro,Honolulu and Louisville. " Consolidated Metropolitan Slati9ial area FINANCIAL VIEWS Winter 2015 Great Expectations Translating to Economic Realizations by James R. DeLisle, PhD Abstract This column explores the currentstatus of the US real estate market.The column discusses the players and elements impacting various market segments, summarizes latest developments and figures, and offers analysis of recent trends in the real estate market Commentary be sustainable.That said,the specter of geopolitical A lot has happened on the economic front since the risk continues to lurk in the background and is a summer issue of Financial Views while the real estate wild card that bears close monitoring during these front has remained relatively stable.To catchup on the challenging times. economy,this issue focuses more attention to economic conditions that will affect the real estate market over The Economic Environment the long term. Once caught up, attention will shift to Despite some disappointments toward the end of the the real estate market as it comes more in alignment 2014 fourth quarter,during the 2015 first quarter the with the broader economy and real estate market and US economy appeared to be building momentum investor activity reverts to longer-term averages. and be on track to experience its best performance As noted in this column's title, improving in the past decade. This optimistic outlook is economic conditions,bolstered by a string of strong fairly widespread, embraced by the White House, job figures,have strengthened expectations that the Congressional Budget Office, and Federal Reserve. long-awaited economic recovery is underway. One Indeed,the presidents budget released at the begin- significant indicator that has been prescient of prior ning of February predicted unemployment would fall recovery periods is the widespread improvement below 5%by the end of 2016 on the heels of back- of confidence levels and expectations of many key to-back 3%plus growth in gross domestic product players. Of particular importance are the optimistic (GDP). The major forces behind these predictions attitudes of small business owners, consumers, include improvement in unemployment, Federal and investors. CEOs' confidence levels are fairly Reserve policy, and an increase in retail sales as solid on the home front, but their attention is consumers gain more confidence. On the negative also appropriately focused on a number of global side are concerns regarding hangover from the credit concerns that may especially affect multinational crisis and global uncertainty, especially in Europe firms, such as the strengthening dollar and global and Asia, and geopolitical hot-spot regions. While weakness in key regions. While the domestic some discount White House predictions as being economic data contain some mixed figures, the overly optimistic,a number of economists and other upward trend is generally positive and appears to prognosticators are in the same camp. Financial Views The Appraisal Journal.Winter 2015 "The recent Federal During 2014, the United States came in with its lowest budget deficit since 2007, including a $2 Reserve Beige Book reveals billion surplus in December. On a year-over basis, that the eeonomie reeovery the deficit was some$72 billion lower than the prior 11 year. This has set the stage for some interesting is widespread. debates as President Obama and Republican leaders square off over the budget. The improvement has taken some of the pressure off crisis managementthat Several key economic indicators suggest the has characterized recent budget debates. Although optimistic outlook may hold. The recent Federal ideological issues and political rancorwill continue to Reserve Beige Book reveals that the economic cloud the scene,there are some signs that economic recovery is widespread, with all districts reporting deals may be reached. For example, while the call modest or moderate growth except the Kansas City for sweeping tax increases in the presidents budget district,which reported slight growth during the end proposal that will not play well with Republicans, of 2014.In terms of sectors,the results differed across other elements may set the stage for more reasoned the country.For example,financial service growth was compromises than in the past. Of particular note are generally moderate and mixed while manufacturing infrastructure spending,military spending,child care, activity increased in most districts. At the national and veterans support The infrastructure issue will level,business and consumer credit activity increased likely be the first major test as the current funding as lenders'lending standards loosened up,especially for highways and bridges expires at the end of May for high-quality borrowers. The Conference Board The president has zeroed in on taxing corporate Leading Indicators index increased modestly in foreign earnings as a source offunding infrastructure, December ahead of expectations and contributed to proposing a 14%tax on some$2 trillion of earnings a string of fifteen out of seventeen months of gains. and 19%going forward.How the issue plays out will Durable goods activity,which was extremely volatile be closely watched as a precursor of future issues that in mid-2014,slipped slightly at year-end but nowhere will come to a head later in the year. near the decline that occurred during late summer. Factory orders for manufactured goods exhibited Employment the same pattern, although the declines at year-end Business leaders, consumers, government agencies, were more pronounced and more widespread. GDP and economists have all focused on the employment also slowed at 2014 year-end, slipping below 3%, situation as the most important leading indicator for which was somewhat disappointing although the this economic recovery cycle. Over the past several trend was still positive. In general, the good news months, the employment scene has experienced a has outweighed the bad news for the economy,with taste of Nirvana with"realizations outpacing the great the risk of recession continuing to trend downward expectations" of many pundits. The importance of despite some recent fluctuations. employment to the economy was punctuated by in the The boom in US oil production has been a president'sbudgetproposalwhich calls for anincrease major factor in the trade deficit. When combined in funding to allow the Bureau of Labor Statistics with falling prices,petroleum imports accounted for to release its "Jobs Openings and Labor Turnover under 20%of the deficit,which is half of its share five Survey" (JOLTS) at the same time as it reports on years ago.Despite the decline in petroleum imports, total job growth.This boost in funding would provide the deficit continued to increase as imports for most more transparency and allow various parties to get a other categories of goods. For 2014, export levels better handle on changes in the labor force,including increased over the prior year but did not keep pace employers' plans for adding new employees to their with the increase in imports, resulting in a deficit rosters.In the meantime,prognosticators will continue over$500 billion.The strengthening dollar is likely to use existing forecasting models. to place upward pressure on the deficit,with demand The employment scene has experienced dramatic for imports continuing to rise amid a dampening of imPmvementwiththeUmtedStatesaddmg257,000jobs overseas demand for more expensive exports. in January.In addition,the Labor Department revised its combined November and December jobs figures MThe Appraisal Journal.Winter 2015 Financial Views upward, resulting in a November total of 423,000 during the recession, has continued its very gradual jobs, the highest figure since the dot-com days in increase, rising to 59.3% in mid-January. There are 1997.Table 1 shows the improvement in employment significant differences in unemployment rates by level indicators by sector of the economy. of education. However, the dramatic widening of the On the unemployment front, the numbers gap that occurred during the height of the recession weren't as strong,with January figures climbing to continues to decline,with the spread between those with 5.7%, a tenth of a percent increase over December. "less than high school"and college graduates beginning Rather than a cause for concern,the slight increase is to return to historical averages.The ranks of the long- actually a positive sign as it reflected the reentry into term unemployed flattened out at 31.5%in January, a the I ob market by some who had stopped looking for historically high figure but significantly better than the full-time employment. The jobless situation differs 45%share in the period lagging the recession. across the country as some areas recover faster than The pace of layoffs declined throughout the others.For example,40%of metropolitan areas had 2014 fourth quarter.The strengthening demand for jobless rates below 5%in December. In the case of employees translated to a 2.2%increase in wages that larger metropolitan areas, six had unemployment is historically modest but a dramatic improvement rates below 4%.These included Minneapolis at 3.3%, over the past several years and a continuation of a followed by Austin, Oklahoma City, Columbus, San recent trend. For the year as a whole, layoffs were Antonio,and Denver.The six areas with the highest 483,171-which was the lowest figure since 1997. unemployment rates included some surprises: The pace of voluntary separations(i.e.,quits)trended Memphis at 7.6%, followed by Riverside (CA), Las moderately upward during the year,led by some of Vegas, Los Angeles, Detroit, and Atlanta. the lower-paying sectors including accommodation Despite the gradual increase in re-entry activity, and food services; leisure and hospitality; and the labor force participation rate has languished retail trade. With improving job prospects, this around a 36-year low, with a 62.9% participation trend is expected to continue as employees seek rate that has continued the downward trend that to move to new opportunities after having had to began during the recession. On the other hand, the hang onto jobs to survive economically or to retain employment-to-population level, which plummeted medical insurance.With both of these concerns less Table 1 Employment Indicators Number of Jobs* Sector Past Three Months Rolling 12-Month Average ** Dec-15 Jan-15 Feb-15 2013 2014 Change Private Jobs 118,690 118,927 119,215 114,938 117,692 2.4% Goods Producing 19,489 19,553 19,582 18,803 19,315 2.7% Service Producing 99,201 99,374 99,633 96,135 98,377 2.3% Government 21,902 21,904 21,911 21,837 21,872 0.2% Total Nonfarm Jobs 140,592 140,831 141,126 136,775 139,564 2.0% Change In Jobs* Change over Prior Year Rolling 12-Month Average ** Dec-15 Jan-15 Feb-15 2013 2014 Change Private Jobs 3,042 3,096 3,209 191 267 39.9% Goods Producing 595 569 551 31 46 48.5% Service Producing 2,447 2,527 2,658 160 222 38.3% Government 74 93 87 -6 7 -224.3% Total Nonfarm Jobs 3,116 3,189 3,296 136,775 139,564 2.0% Source'. U.S. Bureau of Labor Statistics * Number and change in jobs in 000s "Through February 2015 Financial Views The Appraisal Journal.Winter 2015 m important in the current environment, the pace of but delayed rate hike will begin at mid-year or later. voluntary separations may outperform expectations However, the increases will be modest to avoid and put human resources departments on the disrupting the economic recovery. offensive as they attempt to hang on to employees. In this environment, businesses will have to pay Business Indicators more attention to two key stakeholders: customers The recent trends in business indicators echo those who they serve,and the employees who serve them. of the economic indicators, as shown in Table 2. For example, the Manufacturers Alliance/MAPI Inflation and Interest Rates composite index lost some momentum during the The January 28 press release from the Federal second half of 2014,although the longer-term trend Reserve's Federal Open Market Committee(FOMC) remained positive due to improvements during the began with a positive statement, recognizing that previous six quarters.Capacity utilization increased economic activity has been expanding ata solid pace. toward the end of the year, coming in much higher Of particular note was improvement on the labor than the long-term average.As the same time,inven- front, citing strong job figures and declining unem- tories declined, reducing the risk of oversupply. ployment rates. The statement noted that inflation In terms of types of inventories, the patterns remains below its 2% long-term target, attributing differed with business inventories rising modestly. much of the decline to falling energy prices.At cur- On the other hand, retail inventories declined rent levels, inflation is at its lowest level in the past modestly due to automobiles,while furniture,home five years. Going forward,the Federal Reserve (the furnishings, and electronics increased. The ISM Fed) expects inflation to fall even further over the Purchasing Managers Index continued the decline near term before beginning to increase toward its that began in mid-2014. The recent figures can be long-term target.The Fed is facing a new challenge attributed to a number of factors, including global in satisfying its dual mandate to balance maximum weakening and the strengthening dollar. The ISM employment, which appears to be on track, and Nonmanufacturing Index improved in January, price stability/inflation,which is off track. Over the leading to a leveling off that began in mid-2014 after near term, the Fed is likely to maintain its current a string of improving figures. Business activity and target for the federal funds rate, holding interest new orders,which accounts for half of the index,led rates at their historically low levels. However, if the improvement,while the employment component conditions change faster than expected then the Fed slipped on mixed results across industry segments. will move more quickly to raise the target rate. In On a positive note, in late 2014 the NFIB Small the meantime,itis maintaining its current policy of Business Optimism Index rose to its highest level reinvesting principal in agency mortgage-backed since October 2006. The improvement was broadly securities and maturing Treasury securities. based and included the critical "expectation for A number of Federal Reserve Bank presidents higher sales," which had held back small business (e.g.,Bullard of St.Louis,Lockhart of Atlanta,Mester optimism during priorperiods.Of particular note was of Cleveland) have called for increases in rates by the dramatic increase in the "plans to make capital mid-year, citing the lagged impact of Fed stimulus outlays"component,with 60%reporting plans to make policies. Given growing calls for increases,the Fed's outlays, the strongest figures since December 2007 March meeting will be closely watched as will many These factors help explain the increased sentiment of the signals that have become more common of late. that"now is a good time for expansion," with 29% Since behavioral responses based on expectations expecting to make outlays in the next 3-6 months have become more recognized,the Fed might test the which is the strongest recent figure.This improvement waters by changing its "patient" tone ahead of any coincides with the continued loosening ofbank lending action. Regardless of when the Fed acts on interest standards, which should make it easier for small rates,there is some evidence that its recent monetary businesses to fund expansion. policy with its emphasis on managing the markets With respectto big business,CEO confidence levels expectations via rhetoric will continue to boost the reported by the Conference Board improved slightly economy even afterrates beginto increase.If current duringthe 2014 fourth quarter,reading at60-pointleveL trends continue,itis likelythatthe much-anticipated which reflects a preponderance of positive responses ® The Appraisal Journal.Winter 2015 Financial Views over negative responses.One of the differences between officials and plans to file an official comment letter the attitudes of small versus big business leaders may seeking relaxation of the rules. bethe greater attention the latterpay to the global scene as a potential source ofproblems.Of particular concern Stock Market are Brazil, Japan, Europe, and China, which all are The stockmarket continues to fluctuate with changes struggling with their economies. in economic indicators and global conditions affect- The banking sector has been under siege for ing investor behavior. In the first week in February, some time, and it is likely to trigger a new round of the improvement in jobs and wages helped stock debates during early 2015.In addition to its monetary prices surge to the highest weekly gains in two policies and interest rate policies,the Fed is receiving years. This was welcomed news after a poor show- growing attention as a result of its new capital rule ing in January when both the Dow and the S&P 500 for big banks.The proposal will be phased in during reported the greatest monthly declines in a year. 2016 and be fully implemented by 2019. December The increase in the market in the face of strong jobs debates suggested the new capital requirements figures suggests that an inflection point might have would apply to Bank of America Corp.,Bank of New been reached. That is, it appears investors believe York Mellon Corp., Cifigroup Inc., Goldman Sachs the economic recovery has gained sufficient momen- Group Inc., Morgan Stanley, State Street Corp, and tum to carry itself even if the Fed does raise rates. Wells Fargo & Co. According to reports of the Big-8 Additional evidence of the market's rising expecta- banks, however, the proposed rules would only tion of an increase in interest rates was provided by affect J. P. Morgan Chase& Co., which would have the rally in bank stocks,which would likely experi- a projected$21 billion shortfall.The objective of the ence an increase in income from higher loan rates.At proposal is to reduce the likelihood of failure and the same time,the expectation of rising rates would avoid bailouts by making sure banks are adequately adversely utility stocks,which have benefited from capitalized and by curtailing their reliance on riskier, moderate but steady dividends as was manifested in short-term funding sources. Since the proposal a recent decline in stock prices. The same fate was was presented in December,the surging dollar has experienced by bonds and treasuries, with prices triggered a backlash from US banks who argue that falling as yield requirements rose. the capital requirements,which exceed by 1.8 times The strengthening dollar has affected a number the international targets set in the 2014 Basel III of American multinational companies,putting those agreement, will favor international competitors. In affected by exports at a disadvantage and forcing addition to higher capital requirements,the proposal them to a more defensive posture.This pressure has is more stringent regarding the range of assets that forced a number of large firms to refocus on cost will qualify,the assumed rate of outflows of certain cutting,leading to a decline in capital spending and funding sources, and the shorter transition period. stock prices.Affected companies cover a wide range The recent surge in the dollar has created even more of business sectors with strong export sales,ranging angst among the Big-8,leading to meetings with Fed from durable equipment manufacturers such as Caterpillar, to technology firms such as Apple and Table 2 Economic Indicators Indicator 2014 2013 Rolling 12-Month Average ** Oct Nov Dec Dec 2013 2014 Change US Leading Indicators 1.88 1.67 1.74 1.44 1.49 1.75 17.8% Financial Stress Index -1.11 -1.19 -1.01 -1.2 -1.18 -1.30 -10.1% Business Inventories $1,760 $1,763 $1,764 $1,698 1,658.7 1740.4 4.9% Business Sales $1,348 $1,343 $1,331 $1,303 1,291.7 1338.3 3.6% Inventory/Sales Ratio 1.31 1.31 1.33 1.29 1.3 1.3 1.3% Sources'. Federal Reserve Bank of Philadelphia&St. Louis,US Bureau of the Census Inventories and sales in$billions,end of period "Through December 2014 Financial Views The Appraisal Journal.Winter 2015 Microsoft.In addition to the dollar,global weakness governing council and Germany's stance against in the eurozone and Asia has placed a dampener on quantitative easing. American multinational firms. At the other end of the spectrum, Greece has initiated procedures to undo some of the austerity Global Scene measures that were a condition of its international While the trend toward globalization is not new,the bailout,including tax cuts and increases in minimum integration(i.e.,correlation)among economic condi- wages. In addition, Prime Minister Alexis Tsipras tions across borders has dramatically increased in indicated Greece would try to get a bridge loan most economic and business sectors.This trend has from international creditors instead of extending its created windfalls forthose who can exploit the arbi- current bailout.The severity of the financial crisis in trage opportunities by reading cross-border market Greece manifested itself in another downgrade in its signals, and wipeouts for those continuing to focus sovereign credit rating by Standards&Poor's Ratings on local and national indicators. Services,plummeting it further into junk territory. Since the Great Recession with its global Greece's fate hung over the Group of 20 (G20) proportions, the ability to anticipate convergence meeting of financial officials and policymakers and divergence across country boundaries has in mid-February. Weakness across Europe and in become more difficult. This is due, in large part,to Asia—particularly China—has led to a downward uncertainty in how various countries will deal with revision in global economic growth.At the same time, an economic slowdown at home as well has how the inconsistent monetary policies promise to create market will react to interventions.Thecombination volatility on the global economic scene.Indeed,since of these two factors has added more volatility to the some countries are moving in opposite directions global economy. For example, the Swiss National on monetary policy and interest rates, economic Bank caught the market off guard in mid-January volatility will likely amplify.For example,while the when it removed the cap on the exchange rate of 1.2 United States is winding down its quantitative easing Swiss francs per euro.The market reacted quickly to and looking to raise interest rates, the eurozone is this unexpected move,leading to a 30%surge in the moving in the opposite direction. franc before falling back to a 15%premium against The slowdown in China—the worst since the euro.The Swiss stock markettook an immediate 2009—has become more problematic for American dive and stock prices plunged as prospects for sales multinational companies. Indeed, trade results for in the eurozone weakened. January caught many off guard, with a 3% drop in The situation is a bit different in the eurozone, exports on a year-over basis compared to a 20% although the impact of interventions on market decline in imports. This imbalance translated to a behavior is far from certain. For example, Mario record$60 billion surplus. The declines in China's Draghi, the president of the European Center export activities varied by geographic region, with Bank (ECB), is expected to take a page out of Japan and Europe declining and the United States the Fed Reserve's playbook and launch a policy increasing. On the import side, the slowdown of quantitative easing. This will lead to further reveals a weakness in domestic demand that may adjustments in the market that hopefully will be prove difficult for American companies seeking more moderate than in the case with Switzerland. to capitalize on China's growth. In addition to However, the circumstances surrounding this official numbers on trade activity,another indicator intervention are different from what the Fed faced. of economic conditions comes from UniGroup Europe is struggling with a debt crisis, falling Relocation, which moves some 260,000 families prices—manifested in a -0.2% fall in December, worldwide for jobs. UniGroup has reported that in rising unemployment, and stagnant growth. The 2014 twice as many customers moved out of China as threat of the eurozone slipping back into a recession moved in.This is a dramatic change,although it can after its recent—albeit modest—recovery is pushing be attributed to a number of factors beyond economic the ECB toward a crisis mode in which uncertainty activity, ranging from expiring work contracts, can wreak havoc upon already vulnerable market almost intolerable pollution levels, and high costs expectations.The ECB has limited options,especially of living. Indeed, Mercer reported that a number due to disagreements among members of the of key cities in mainland China (e.g., Shanghi and MThe Appraisal Journal.Winter 2015 Financial Views Beijing) rose into the top-eleven most-expensive The Univers* ofMiehlgan cities for expatriates in the world,while Hong Kong ity rose to third place. Index of Consumer Consumer Confidence Sentiment reached its high- In the United States, continued improvement in est point slnee 2004. the economy—especially on the employment front—has bolstered consumer confidence levels. The Conference Board Consumer Confidence in earnings,reported by 40%of survey respondents, Index rose almost ten points in January, rising to and an expectation of higher earnings in the year the highest level since mid-2007 The improvement ahead, reported by over half for respondents. This was widespread among components of the index, perception is consistent with personal income with "present conditions" experiencing the great- growth, which was positive throughout 2014. est increase. Although improving at a slower rate, Another sign of improved consumer confidence was the increase in "expectations" signaled a growing the moderate increase in consumer credit combined sense of optimism about the future. Despite this with a decline in write-offs and bankruptcy filings shift in morale, purchasing plans were dampened, from the prior year. as shown in Figure 1, which will keep retailers on their guard as they try to balance inventory levels Retail Sales with sales expectations. According to the Federal Reserve Beige Book, dur- The University of Michigan Index of Consumer ing January consumer spending increased in most Sentiment showed even stronger results and reached districts, leading to modest increases in year-over its highest point since 2004. Consumer sentiment sales.Holiday sales were somewhat mixed,although improved as to both present conditions and mostly in line with expectations. The ICSC Chain future expectations, with a majority perceiving an Store Sales Index dropped at the end of the holiday improvement in business conditions. In addition to season,with 2.2%year-over sales growth declining improved labor conditions and low gasoline prices, from the prioryear.At an aggregate level,retail sales consumer sentiment was bolstered by an increase fell almost 1% in December, driven down by the Figure 1 Consumer Confidence and Retail Sales Trend $200,000 120.0 110.0 $190,000 100.0IL d m $180,000 90.0 d E 80.0 0 y U $170,000 — 70.0 n 60.0 $160,000- 144r— yyy50.0 z $150,000 40.0 30.0 $140,000 20.0 O(3 Oti O`l' Or'' Oz Oy Oro OA O00 O°' yO by iy`1' iyr'' ti� by — Retail Sales Consumer Confidence Sources:Thomson Reuters/University of Michigan,Federal Reserve Bank of St.Louis Financial Views The Appraisal Journal.Winter 2015 6.5% decline in gasoline sales. This dragged down companies with domestic manufacturing facilities— total retail sales and led to a disappointing 3.2% such as Germany's Daimler AG with its Mercedes-Benz year-over figure. USA, Toyota Motor Corporation, and Honda Motor The decline in gas prices provided some respite Corporation—are expected to particularly benefit for consumers and helped bolster other retail from the strengthened dollar that will bolster profits categories that otherwise would have had even and provide a competitive advantage over its purely more disappointing results. The decline in sales foreign counterparts. On the other hand,the opposite was fairly widespread; it included department, is expected for auto exports,which is a disappointment clothing,sporting goods and hobby,building supply, after a three-year string of record-level activity with and electronics and appliance stores. A number of 2.1 million car and truck exports. This was the first categories experienced flat to moderately positive time exports exceeded 2 million and is up some 75% sales growth at2014 year-end,including food service from a decade ago.In an ironic shift,the United States and drinking; furniture and home furnishings; has become something of a low-cost auto producer and food and beverage. Going forward, retail sales benefiting from competitive labor rates and adoption are expected to improve along with employment, of leaner manufacturing. earnings and consumer confidence. Internet sales continued to increase ahead of Housing Market overall retail sales,with a 4%increase during the 2014 With the exception of employment,the housing mar- third quarter,which was up over 16%from the prior ket has remained the most closely monitored sector year.Despite the increase in online sales,the industry for those tracking the economy. Unfortunately,this still accounts for 6.6%of total retail sales.Main Street economic sector has not lived up to the great expecta- retailers have continued to adapt to advances in tions held by some.The sector has been problematic technology, growth in customer apps, and Internet in terms of forecasting,with mixed signals on price shopping. For example, an increasing number of gains, new construction, and shifts in housing pref- retailers have started accepting mobile smartphone erences clouding the scene. gift cards for payments. The industry also continues After strong gains over the prior two years, to strengthen loyalty programs using data mining and housing prices increases slowed during 2014. This other tools to reach customers.This trend is likely to downward trend was reported in a number of indices continue,with Moody's Analytics reporting the results including the Black Knight Home Price Index, the of a survey in which respondents indicated a third of S&P/Case-Shiller Home Price Index,the Core Logic purchases were made online. Home Price Index, and the FHFA Purchase-Only During January, vehicle sales were strong, with Home Price Index,which unlike the others showed some 16.7 million unit sales on a seasonally adjusted a slightuptick at year-end.Volume declined for both annual basis.The uptick over the prior month included new and previously owned homes concomitantwith a slight moderation in auto sales, while the decline the rise in interest rates, providing a forward look in gas prices contributed to an increase in light truck at what might occur when interest rates begin to sales. Manufacturer sales levels remained relatively return to more sustainable levels.When this occurs, stable, with imports and domestic manufacturers housing prices will experience downward pressure holding their own.Goingforward,the rise inthe dollar especially if an increase in household incomes is not against the euro,Japanese yen,and South Korean won adequate to maintain effective demand for housing. has increased the appeal of the US market.As a result On the new-housing front, 2014 was particularly foreign carmakers are expected to increase exports, volatile, with figures bouncing up and down but which in turn will place downward pressure on prices, ending the year on a positive swing. Through the cause a shift from options to standard equipment,and first three quarters of 2014, existing-home sales increase dealer incentives.Assuming that employment trended upward rather consistently before falling at figures continue to hold up, disposable income the beginning of the fourth quarter and recovering increases, and credit remains readily available, the somewhat at year-end. auto industry is in for a strong year. However, there On the construction front, multifamily activity are likely to be some shifts in market share,favoring has returned to pre-crisis levels, while single- foreign car manufacturers over domestic ones.Foreign family rates have lagged. In some markets, the MThe Appraisal Journal.Winter 2015 Financial Views shift in market share to multifamily units from Commercial real estate single-family units has been dramatic. Although not a major problem in most markets, if this shift investors continue to flock in supply continues it should be closely monitored. to core assets, driving prices According the National Association of Home Builders (NAHB), developers' sentiment about the up and yields down to multifamily market cooled off toward the end of record levels. S� 2014 but remained positive.The NAHB/Wells Fargo 1 1 Housing Market Index (HMI) improved during the second half of 2014, offsetting some of the slippage thatoccurred earlier in theyear.This was consistent credit ratings, and other risk factors, making it with the NAHB/First American Improving Markets difficult for many younger households to afford Index (IMI), which demonstrated widespread home ownership.A recent report released byTrulia improvement in September. At 2014 year-end, 63 of offers some useful insights into the prospects for the 350 national metropolitan areas exceeded their homeownership among younger households. prior normal levels of economic and housing activity, The report suggests that demographic changes in with the national average running at 90%levels. terms of delayed marriage and parenthood are a One of the more interesting debates that is major factor in low homeownership rates among yet to be resolved is whether the shift in tenure younger households. The report also contends choice among some demographic segments is a that there really hasn't been a major change in cyclical phenomenon oris astructural shift as some preference of millennials toward homeownership apartment aficionados have argued. Bolstering but rather a deferral of ownership.While continued the case for a structural shift is the decline in improvement in the economy may help bolster homeownership rates, which the Commerce homeownership for younger households, some Department reported as under 64% at year-end, stimulus or incentive programs are likely to be the lowest rate in some twenty years. This decline necessary to allow ownership levels for this segment accelerated during 2014, due in part to the overall to rise to their long-term averages. increase in the number of household formations, Real Estate Market which was at a ten-year record level. This increase Overview in households was attributed, in part,to improving The year 2014 was one in which"great expectations economic conditions and employment levels,which were met with realizations"for the commercial real likely encouraged those who had moved back home estate market. Commercial real estate enjoyed a to strike out on their own.However,homeownership solid 2014 as measured by improving fundamentals, statistics for households headed by those under transaction 35 years fell to 35% in 2014, down from the peak transaction volume, and pricing trends. According of 44% in 2004 prior to the dramatic run-up in to Real Capital Analytics (RCA), sales of significant housing prices. This situation is unlikely to change commercial property came in at$424 billion dollars. due,in large part,to the average$33,000 in student This continued a six-year trend in increasing activity debt that hangs over college graduates, which is levels and reflected a 17% increase over the prior up a third since the housing market collapsed. At year. In terms of records, sales volume approached an aggregate level, student debt totals a staggering the 2006 figures,which were only exceeded by the $1.1 trillion, nearly double the level in 2007 during 2007 peak that pushed$600 billion before the bottom the Great Recession. fell out of the market. Indeed, if portfolio transac- Rising student debt is not the only factor tions,which were prolific in 2007,are held out of the mix, the recent figures are greater than they were behind the decline in homeownership rates by when the market last peaked. Transaction levels younger households. An uptick in housing prices should remain robust, at least over the near term, that outpaced income growth during a stagnant given improvement in economic conditions and the job market also contributed to the trend. Lenders continued turmoil offshore that is driving interest in have also contributed to the issue through strict underwriting standards that focus on total debt, US assets among foreign investors. Financial Views The Appraisal Journal.Winter 2015 m "Brokers report offlee over the near term,at some point an eventual sell- off is likely to occur once the market steps back leasing a etl V 1 ty was On and objectively evaluates the current situation. an upward pace going This behavioral response would be consistent q with the recent rotation out of bonds and other into 2015. fixed-income investments in the face of rising prospects that the Fed will raise rates by mid-year or shortly thereafter. The positive outlook for transaction volume is Interestingly, a number of investors appear to bolstered by the fact some owners are likely to cash be focusing more attention on risk, a concept that out core assets ahead of a rise in interest rates and appeared to have faded during the recent heyday yield requirements. This phenomenon may be most period.This tendency may explain the slowdown in pronounced for stable, core assets that owners feel transaction activity during the 2014 fourth quarter, are fully priced and thus have limited upside potential which RCA reported came in at a ten-quarter in terms of pricing. This dampening on appreciation low. Ironically, rising concern over risk may be will make such assets revert to long-term trends, having the opposite affect that it should, especially functioning more as fixed-income investments than as with economic improvement spreading across the growth investments they have become of late,with the country. That is, at the same time investors returns attributable to appreciation ratherthan income. are willing to pay even higher record prices for Indeed,the$409 billion NCREIF Property Index(NPI) core assets, they are turning attention away from reveals that appreciation outpaced income returns perceived higher-risk investments in secondary in 2014, continuing a trend that has held for the five and tertiary markets. When flawed exit strategies years since the market recovered from the downturn. for potentially over-priced investments are factored In terms of magnitude, of the 11.8%total return for into yield calculations,these core assets may actually 2014,52.5%was attributable to appreciation(Table 3). prove to be riskier than non-core assets when This compares to an 18%attribution from inception considered on a total return basis. of the NPI in 1978.If the data for the past five years—a Some argue that this trend toward over-priced period during which appreciation came in ahead of core assets is justified for long-term investors,who income—were held out of the historical averages,the plan to hold assets through any repricing.However, differences would be even more dramatic. such behavior is unlikely to work for mark-to- In many respects, the commercial real estate market accounts,including pension funds and other market has entered into a new regime in terms of investment vehicles managed in afiduciary capacity. pricing and yields for core assets. Indeed, recent Such investors will have to recognize unrealized shifts suggest that commercial real estate investors losses(i.e.,declines in appraised values)that would continue to flock to core assets, driving prices be associated with an increase in yield requirements. up and yields down to record levels not seen in Whilethis might be uncharted territory for many,for modern history. While this situation may hold others it is strikingly similar to the late-1980s real Table 3 NCREIF Property Index 2014 Profile Property Average* Type Number of Properties Market Value* Value 2014 Annual Returns Total Share Total Share Income Appreciation Total Office 1,414 20% $152,565 62% $107.9 5.2% 6.1% 11.5% Retail 1,118 16% $95,129 38% $85.1 5.6% 7.3% 13.1% Apartment 1,503 21% $99,816 40% $66.4 4.9% 5.2% 10.3% Industrial 2,862 41% $55,389 22% $19.4 5.8% 7.3% 13.4% Hotel 165 2% $6,354 3% $38.5 8.2% 2.8% 11.1% Total 7,062 100% $247,695 100% $35.1 5.4% 6.2% 11.8% Source'. NCREIE Property Index(NPI)'.Quarterly Detail Report *$millions ® The Appraisal Journal.Whiter 2015 Financial Views estate recession. Unlike the more recent downturn, Some of the strength in the suburban numbers can which was short-lived and reflected shifts in short- be attributed to risk-taking with suburban assets term pricing,the 1980s experience was much more providing 5.8%income yields,which was 104 basis prolonged,with a lack of liquidity that spread across points over CBD properties. the industry,including assets which to thatpoint had On the public front, office REITs had a stellar been in the greatest demand. Therefore, how the year during 2014, with 25.7%total returns. Despite current trend plays out over the next several years these returns, office REITS trailed the overall will be interesting to watch and argues that investors industry average of 30%on equity REITs.In terms of and owners should pay close attention to changes marketshare,office REITs accounted for 11%ofthe in investor expectations and,ultimately,behavior. $783.6 billion FTSE NAREIT Equity REIT universe. However,health care REITs,which have a solid office Office Market component, accounted for another $105 billion of In general,office market fundamentals have contin- investments, while mixed industrial/office REITs ued to improve due to a combination of tempered added another$18.8 billion to the mix. construction and increasing demand.Indeed, some In terms of transaction volume,the office sector brokers report office leasing activity was on an had a solid year,with total sales pushing$120 billion, upward pace going into 2015.During 2014, absorp- a 15% increase over the prior year. Reflecting the tion activity remained solid, leading to a gradual herd mentality of investors and the penchant for increase in asking rents and a decline in vacancy perceived core assets,this increase in activity levels rates.The increase in asking rents is a continuation was concentrated in the top-six major metro markets: of a trend that began in early 2012. While improv- Boston,Chicago,Washington DC,Los Angeles,New ing fundamentals have been fairly widespread, a York City, and San Francisco. This concentration number of markets have led the trend in terms of was especially true for CBD investments although total absorption; these markets include Houston, suburban investments in these markets were also Dallas,Boston,Chicago,New York City,Atlanta,Los relatively strong compared to secondary markets. Angeles, and Seattle. With respect to the secondary markets,average Going forward, near-term prospects for office sales volumes for the year were up only slightly. demand continue to be positive as the market adjusts Interestingly,office sales in Atlanta,Dallas,Denver, to changing preferences of office users and as tenants Houston,and Seattle tapered off,as they did in Austin, rationalize their current holdings and leases in the which seemed to have been on everyone's radar face of improvement in the economic outlook. At screen earlier in the cycle. In terms of subtypes, the same time,renewed commitment to revitalizing CBD sales outpaced suburban sales although both urban cores will benefit some office markets more sectors exhibited a comparable decline in cap than others, especially those that have been able to rates. Toward the end of 2014, the two sectors also attract new residents and achieve critical mass.Cities experienced a slowdown in sales volume. Medical that have strong technology and knowledge-industry office properties were much sought after during the sectors and a thriving business services component year, with volume increasing 24% along with 20% will continue to outperform national averages. increases in average prices. With respectto investment performance,in 2014 the office sub-index of the private NCREIF Property Retail Market Index (NPI) showed solid 11.5%annualized return Retail market fundamentals of supply and demand with appreciation edging out income returns by continued to improve during 2014 although there 83 basis points.The office sector accounted for 37% were more than a few trouble spots. For example, of the value of the NPI leading all property types. retail store closings continuedto garnernews,includ- In terms of number of investments, the sector had ing RadioShack, which filed for bankruptcy and a 20% market share with an average size of$108 announced the closing of almost 1,800 stores, most million, which led all property types. At a subtype of which are leased facilities.While the closings may level, suburban properties enjoyed something of create some opportunities for releasing,the closures a renaissance with 12.3% returns compared to will fall hard on smaller investors who own less than 10.9%for central business district(CBD) holdings. stellar properties as well as REITs that reportedly own Financial Views The Appraisal Journal.Winter 2015 M some 25%of locations.A number of other retailers are around 13.4%with neighborhood centers generating rationalizing store holdings including some voluntary higher income returns of 5.9%although income returns and involuntary moves. For example, several large for both subsectors were outpaced by appreciation. retail chains announced store closings, including On the public front,retail REITs dominated other some that are exiting the business(e.g.,Bottom Dollar property types in terms of market share claiming Food,Deb Shops,Body Central,and Target,which is 29% of the total equity REIT universe. In addition, closing all 133 stores in Canada)as well as those that for 2104 retail sector performance was on par with are downsizing to improve bottom-line performance. industry averages with 27.6%total returns.As on the These include such brands as Abercrombie&Fitch, private front, regional mall REITs led the overall Aeropostale,American Eagle,Barnes&Noble,Coach, sector.On the other hand,freestanding REITs lagged Express,JC Penney,Jones Group,Office Depot/Office all property sectors with disappointing total returns Max,Staples,and Wet Seal. of 9.7%annualized. Another recent retail move that caught the Despite some of the turmoil in the retail sector, attention of shopping center investors is the Staples/ retail transaction volume racked up a solid 31% Office Depot deal.This deal was initiated by Staples year-over increase in sales volumes, which led all with some encouragement from Starboard Value LP, commercial sectors and translated to$82.6 billion in which held significant positions in both companies. activity for the year. In an interesting trend, sales of While subject to antitrust approval, the proposed strip centers and single-tenant properties declined deal sheds some light on some of the machinations in terms of market share,falling 7%to 46%of retail going on in the retail industry.It is also reminiscent transactions for 2014 as a whole. During the fourth of the feeding frenzy over Family Dollar Stores Inc. quarter, sales of strip centers regained momentum, (FDO),which was being pursued by Dollar General racking up a 37%increase over the prior year. (DG)and Dollar Tree(DLTR).On January 22,some Despite recent gains in prices, the retail sector 90%of Family Dollar shareholders voted to back the is something of an outlier with the greatest gap $8.5 billion merger with Dollar Tree. Rather than between current prices and prerecessionary levels. economics, antitrust issues weighed heavily on As with the office sector,interest in retail properties the decision,with the Dollar Tree deal resulting in in secondary markets seemed to wane during 2014, only an estimated 310 store closures under antitrust reversing a trend that had begun earlier in the cycle. regulations compared to 4,000 store closings if the At the same time, retail transactions in urban/high deal with Dollar General was concluded. street locations surged by 60% over 2013, with With respect to investment performance, the investors clearly buying into the vision of urban retail sub-index of the private NPI came in at a solid revitalization in top-tier markets.The flight to quality 13.1%, leading all property types with the exception is also evident in premium prices for top-tier assets. of industrial.In terms of attribution,the appreciation component outperformed the income component Industrial/Warehouse Market by a solid 167 basis points. With respect to market On the spatial side of the equation, market funda- share, retail accounted for 23%of the NPI, with 16% mentals in the industrial sector wrapped up 2014 of properties and an$85 million average value trailing on a positive note with momentum carrying into the only the office sector.Ata subsector level,single-tenant 2015.Industrial vacancy rates continued to decline at properties, which were a relatively minor portion a national level,falling to the lowest level in fourteen of total retail holdings, racked up as strong 18.4% years. This improvement in market fundamentals return. However, evidence that this was the result occurred despite an increase in construction activity, of a surge in demand for fixed-income real estate which testified to solid improvement in net absorption can be gleaned from the fact that the subsector had levels. Due to improving market conditions, average 4.5% income returns and some 13.5% appreciation, asking rents increased by some 4% on a year-over which outpaced all other property types and subtypes. basis in the 2014 fourth quarter.A number of markets Super-regional malls came in with solid 15.2%total experienced double-digit increases in rent with Denver returns,with appreciation accounting for a surprising leading the pack followed by several other Western US 9.6% of the total. Performance of regional centers markets. Assuming the economic recovery remains and neighborhood centers were on par,with returns on track, recent trends should continue. However, MThe Appraisal Journal.Winter 2015 Financial Views weakness in exports related to the strong dollar and near term as new household formations will lead global slowdown will be a riskfactorfor some markets. to an increase in apartment demand. In a number In terms of investment performance, the of markets, millennials will continue to fuel the industrial sub-index ofthe NPI led all property types demand for apartments due to theirincreasing num- during 2014,with a 13.42%annualized total return. bers and propensity to prefer rent over ownership. As with most other property types,appreciation rose One debate related to apartment market ahead of income with a 148 basis point advantage. fundamentals that warrants close attention is the The industrial sector accounted of 14%of the NPI, struggle between downtowns and suburbs. Some trailing other property types with the exception of have prematurely claimed afate accompli in favorof hotels, which came in with a 2% share. As might downtowns. A number of factors appear to support be expected, the industrial sector had the smallest this claim, including recent trends in many cities. average market value in the NPI at $19.4 million Indeed, a number of cities have experienced a while accounting for 41%of all properties in the NPI. renaissance of growth fueled in part by households With respect to industrial subtypes,warehouse seeking an urban environment. While this trend is investments constituted the bulk of private likely to continue in cities that are able to create a institutional holdings and racked up sector-leading critical mass and achieve lifestyle,24-hour status,itis performance of 13.6 % with a strong appreciation notgoing to occur across the board.This is especially component attesting to growing investor appetites. true in cities in which budget limitations have R&D properties came in second place, with 12.1% restricted expenditures for infrastructure, services, returns and, given their higher-risk profiles, schools, crime prevention, and other amenities relatively disappointing income returns. Industrial necessary to make more dense environments livable REITs finished 2014 with 21%total returns, which in a sustainable manner. while strong compared to private holdings, lagged A recent report released by NYU's Furman Center other REIT sectors and accounted for only 4%ofthe and Capital One Financial Corporation indicates NAR EIT equity universe. renters have become a majority in nine of the largest On the transaction front,during 2014 industrial US cities. This was a dramatic increase since 2006, sales volumes approached $54 billion, which when only five of the cities fell into that category.The was a solid 13% increase over 2013. Despite recent list includes the five carryovers—Boston,Los relatively robust sales activity for the year,industrial Angeles,Miami,New York City and San Francisco— transaction volume slowed in the fourth quarter.As as well as newcomers Chicago, Dallas, Houston, in the recent past,investor activity remained focused and Washington DC. Philadelphia, which missed on large national and regional distribution hubs.As the list, experienced the highest growth rate with such,cap rates have fallen in the major distribution a 28% grow rate in the number of renters. Despite markets, pushing some investors to consider increases in construction in these cities,vacant and secondary markets.In terms of subtypes,warehouse available-for-rent housing fell in all but two cities. investments constitute the largest share of industrial Somewhat reminiscent of the spike in housing prices investments, accounting for some two-thirds of all that led up the collapse of the single-family market, activity.While the warehouse sector has cooled off rental increases in several of the markets outpaced in terms of transaction volume, the flex sector has gross income change. The spread was widest in gain momentum, with sales up 24% over the prior Los Angeles (11%rent increase; 4%gross income year. Unlike some other property types, industrial change) and New York City(12%rent increase; 0% investors have demonstrated an appetite for deals gross income change). On the other hand, three of in secondary markets although still willing to pay a the markets saw growth in gross income outpacing premium for assets in top-tier markets. rents, led by Boston with a 4%increase in rent and 15%increase in gross income. Apartment Market At an aggregate level, the trend in these two Ata national level,apartment market fundamentals indicators resulted in a spike in rent-burdened have continued to improve in spite of an increase in households in which low-income households pay construction activity. Improvements in economic more than 50% of income on housing. In addition, activity and jobs bodes well for the sector over the in five of the eleven largest US housing markets, Financial Views The Appraisal Journal.Winter 2015 moderate-income households pay over a third of investments.In terms of niches, investors continued their income on housing, with New York topping to seek student housing although demand outpaced the list at 43% of income. This situation was even supply. The same was true for senior housing,with more challenging for low-income renters, which sales volume increasing 23%and drawn by relatively face a dramatic shortage of affordable housing units. high 7.5%cap rates. Apartment developers are demonstrating a herd behaviorwith theirpenchantforbuilding at the top-end Infrastructure of the market.Consequently,less than 11%of new stock Infrastructure investment continues togarnermuch in the top US cities has been affordable to low-income attention as noted by President Obama's recent housing. This situation is not confined to the larger $4 trillion budget proposal that included significant markets and is unlikely to change over the near term funding for infrastructure. While taxing overseas in the absence of more targeted stimulus programs. earnings to fund infrastructure will be hotly debated, On the performance front,the apartment sector there is little debate that something needs to be was somewhat disappointing compare to other done to fund infrastructure, especially with federal property types although the 10.3% total return in road and highway funding expiring in May. To this the NPI Apartment sub-index remained attractive point,domestic pension funds have been somewhat relative to other asset classes.The sector has peaked reluctant to include infrastructure investments as in performance while fundamentals continue to an asset class or as an investment sector. This has improve, as reflected in the income returns that opened to door for Canadian pension funds, other lag appreciation by only 23 basis points but slipped foreign investors,and other capital sources thathave below 5% and trailed all other property types. The moved into infrastructure investment.For example, apartment sector accounted for 24%of the NPI,with Preqin data points out the while 90% of public an average value of$66.4 million. Canadian pension funds and 99% of US pension Within the apartment sector,garden apartments funds invest in commingled infrastructure funds, had the highest total returns for 2014, coming in 45% of Canadian funds invested in funds directly at 11.3% with income returns slightly beating out committed to infrastructure compared to only 16% appreciation. Low-rise apartments came in with of US funds. Further, in terms of asset allocation to slightly lower returns while high-rise apartments infrastructure,Canadian funds were 6%invested on slipped into the single-digit range. This subsector, 8% targets, compared to US funds with 2% invest- which had been aggressively pursued by institutional ment on 4%targets. investors, remains fully priced as noted by the low Regardless of such capital flows and how the 4.49%annualized income returns. government addresses the issue, it is clear that In terms of transaction volume, the apartment infrastructure funding will fall short of needs. sector showed no signs of slowing in 2014,with total This will increase pressure on public-private sales volumes reported by RCA reaching record partnerships and other structured arrangements levels of $112 billion, which was a 9% increase to help governmental bodies respond to growing over the previous year.While transaction activity in demand for a wide range of infrastructure projects. some property types tapered off at the end of 2014, There are some signs that the attention being paid apartment sales continue to increase, approaching to infrastructure investment on the global front is quarterly record levels. Reflecting growing interest beginning to filter over to domestic investors. For in urban assets,prices for mid-high rise apartments example, although limited in scope and numbers, outpaced overall averages for the sector. Indeed, by infrastructure REITs experienced competitive year-end prices for such sought-after assets were up returns of 20% during 2014. The market cap of almost 50%from the prior peak.Individual property infrastructure REITs also increased to $67 billion, sales were also up, while portfolio sales trended above longer-term niche sectors such as timber, downward.In a departure from some other property self-storage,lodging/resorts,mixed industrial/office, sectors, apartment investors continued to search for freestanding retail,and manufactured homes.More assets in secondary markets as they sought higher telling is the fact that the 2015 issue of"Emerging yields.Apartment investors also appeared to be more Trends in Real Estate," published by PwC and the willing to take on risk,with an increase in value-add Urban Land Institute, included a discussion of ® The Appraisal Journal.Winter 2015 Financial Views infrastructure investment in its list of hot topics accretive to earnings and help boost the momentum in and opportunities for 2015. While this might have stockprices.While REITs are expected to remain active, been related to the fact the discussion was aimed they are unlikely to be as aggressive in 2015 and it will at both US and Canadian market participants, the be difficult to stay on par with the prior year. result remains there is an increased awareness of Private equity investors have also been active with infrastructure as a potential real estate play. hedge funds and are expected to continue to be active While some domestic pension funds have moved goingforward.Foreign investors have also been active into the infrastructure arena,there is a lot of ambiguity in the equity side of the market,with increased capital over how that should be done. One of the challenges flowing from China as well as a number of sovereign has been figuring out where it should be housed. In wealth funds. While the strengthening dollar will some cases it has been embedded with alternative make such investments more expensive,the upward investments, while in others it has been treated as a trend in foreign investment is expected to continue subset of real estate and even as a distinct asset class. with investors expanding their investment horizons The answerto this fundamental question depends on a in search of product. number of factors,including the type of infrastructure On the mortgage front traditional lenders continue under consideration.The fact that"Emerging Trends," to prefer high-quality assets in top-tier markets. which is primarily a real estate publication for Commercial banks have resolved a numberofportfoho institutional investors,focused on infrastructure may problems, which had limited commercial mortgage be somewhat prescient.Even more noteworthy is that lending, and have eased lending standards,which is California State Teachers'Retirement System(CaISTRS) important for construction activity that has been one met in early February this year to explore modifications of the bastions of banks.Insurance companies,which to its investment policy that would allow CaISTRS to have tended to be the most conservative lenders, are "invest alongside with other like-minded investors" expected to increase commercial loan volume during pursuing"consortium investment opportunities:'This 2015.They will continue to be disciplined in terms of would open the door to direct investment in larger underwriting,in part,because they tend to be portfolio infrastructure projects as well as attract other pension lenders and must deal with problem loans.Mortgage funds to the arena and help expand its infrastructure REITs had a relatively strong performance in 2014 with portfolio to$3 billion over the long term. 179%total returns although the early going this year has been moderately negative.On the mezzanine loan Real Estate and Capital Markets side of the mortgage market,a number of players have Overview been active,including nonbankbanks that offer limited At a national level, the real estate capital markets financial services, hedge funds,private equity funds, have proven to be robust and more than adequate and a variety of other lenders.Although borrowers will to support the recent increase in commercial trans- continue to pay high rates for such debt;in some cases actions levels. This situation personifies the great it will be necessary to get the deals done that depend expectations of many players and is readily apparent on financial engineering for short-term viability. on the commercial side of the market where inves- Since the bulk of commercial mortgage lenders tors and lenders continue to compete for business. remain somewhat conservative, the door has been This competition has led to a decline in yield require- opened for commercial mortgage-backed securities ments for both debt and equity. (CMBS) issuers to take a larger share of activity in On the equity buy side of the market;transaction secondary and tertiary markets as well as in lower- volumes have been bolstered by strong demand from quality assets that previously would have struggled a number of investors such as private equity and for capital. Funding for CMBS issuances has been opportunilyfiunds,pensionfunds,offshore investors and bolstered by continued improvement in delinquency sovereign wealth funds.Based on strong performance rates, which ended the year below 6% as part of a during2014,REITs have been active players,benefiting gradual downward trend. At an aggregate level, from investors seeking dividend payments that have CMBS delinquencies fell toward $30 billion in been below cap rates for new acquisitions. When November 2014, a 26%decline from the prior year. combined with judicious use of low-cost debt, the Liquidations came in at $776 million on 70 loans, market has allowed REITs to acquire properties with an average severity of loss of 41%;this was an Financial Views The Appraisal Journal.Winter 2015 improvement over last October when the volume as the second half of the year. Although there are some $1.3 billion with almost a 50%severity level. concerns on the domestic scene, the biggest risks to In terms of vintage,the deals that originated as the economic recovery and continued improvement the market peaked in 2005-2007 period accounted come from offshore. Of particular concern is the for 86% of delinquencies. This included the record economic turmoil that has rippled across the eurozone, level of$1.23trilhonin2007vintage toansthatmoved and the unexpected slowdown in China.These forces into special servicing, which translated to 72% of have led to a strengthening of the dollar, which will transfer volumes of issuances stretching back to place a dampener on exports and put pressure on 1999.With respect to property types, Morningstar's the gap in trade. Assuming no major economic or Watch List was led by the office(39%),retail(26%), geopolitical disasters occur, and Washington finally and apartment (13%)sectors. The metropolitan focuses in finding solutions for the long-term issues areas with the highest share of watch-list properties at home, 2015 might just be the year that lives up included the larger markets, with the top-ten to the great expectations that many hoped it would accounting for 30%of the total value. deliver.In this environment;real estate is expected to For2014,CMBSvolume increased to$90billion continue to exhibit improvement in underlying market and continuedthe five-year upward trend,including fundamentals despite some pricing pressure in the face almost doubling between 2012 and 2013. With of rising interest rates and yield requirements. respect to property types, CMBS current balances include 30%retail,27%office, 17%multifamily,and James R. DeLisle, PhD, is associate professor of 13%hotel.While improvements in the CMBS market real estate and director of the Lewis White Real Estate are likely to continue through 2015, there is some Center at the University of Missouri—Kansas City Bloch concern about the next tranche of maturing loans. School of Management. His charge is to help build a The outlook for capital flows to commercial real preeminent real estate program that strikes a balance estate remains positive with the recent momentum between academic rigor and state-of-the art industry carrying on in spite of low yields. However,with the practices. Drawing on this foundation, students are prospect of increasing interest rates in the second trained in critical thinking and the spirit of entrepreneur- half of 2015, cap rate compression may have fully ship necessary to take on the complex real estate played out and may be facing some upward pressure problems that the next generation of industry lead- for spread rate investors as well as mark-to-market ers must be able to solve. He comes to the Bloch accounts. It remains to be seen whether economic School from the University of Washington where he activity and business expansion will pickup enough was Runstad Professor of Real Estate and director of to drive net operating income up sufficiently to offset the graduate real estate studies. DeLisle has spent this migration toward the mean in yield requirements. almost half of his forty-year career in real estate as a professional with specializations in applied investment Conclusion research and strategic portfolio management. Before The year is off to an interesting start with great returning to academia in 1999, he was an executive expectations characterizing the general attitude vice president and head of strategic planning for Lend among many key players inthe economy.The recent Lease Real Estate Investments,a global company and improvement on the jobs front has been one of the the successor firm to Equitable Real Estate,where drivers of this mood shift that,if carried over the near he founded the Investment Research Department. He term, may become a self-fulfilling prophecy. While has published widely in academic and professional the actual realization might differ in some respects, journals. DeLisle received his BBA in real estate and there are enough positive signals to suggest the MS in marketing from the University of Wisconsin. He economic recovery will prove sustainable and may received his PhD in real estate and urban land econom- finallybreak away from the below-par improvements icsfrom the University of Wisconsin under his mentor, that have dominated over the past several years. the late Dr. James A. Graaskamp,one of the leading Overthe near term there is little riskofa disruption academic proponents of applied real estate research. of business as usual, with the Fed expected to take To increase industry connections, DeLisle has created a disciplined approach to raising interest rates and a personal website, http://jrdelisle.com. the market already discounting increases during Contact:jdelisle@umkc.edu MThe Appraisal Journal.Winter 201-5 Financial Views FINANCIAL VIEWS Summer 2015 Cautionary Signals from Commercial Real Estate Markets and Consumers byJames R. DeLisle, PhD Abstract This column explores the current status of the US real estate market It discusses the players and elements impacting various market segments,summarizes latest developments and figures,and offers analysis of recent trends in the real estate market Commentary attention,which maybe a warning sign.For example, On the surface, there are a lot of positives on both a Wall Street Journal article,published on August 12, the economic and real estate fronts.While not stellar, included the headline "Surge in Commercial Real the underlying statistics on the job scene continue Estate Prices Stirs Bubble Worries:Soaring demand to improve,inflation remains in check,interest rates for commercial properties has drawn comparisons are low with moderate increases priced into the to delirious boom of the mid-2000sP The article market, and economic activity and consumer sales displayed a number of graphs that highlighted the reported by the Federal Reserve (Fed) Beige Book almost exponential increases in the commercial have increased in all twelve districts. property price index,the volume of quarterly sales, On the real estate front, overall market and private equity fundraising since the market conditions have continued to improve in line with trough in 2009. the economy, as indicated by a general decline While many sellers have enjoyed the increase in in vacancy rates that has translated to moderate prices,thetrend is notwithoutsome justified concern. increases in rents in some markets. While there There are signs that some owners are beginning are some weaknesses on the economic front, to cash out while others are spreading out to the probability of recession remains low, and opportunities in new venues. Unfortunately, as the recovery seems on track albeit still at a history has proven,some bullish buyers have a hard rather anemic rate. However, it appears that the time backing off when it appears there is more left commercial real estate market may be reaching on the table. Chasing assets is always a dangerous a cyclical peak and may be in for a correction strategy in the world of real estate cycles. in pricing. Since this is occurring on the capital Although these observations should be taken as market side of the equation rather than market a cautionary note rather than a prediction,it may be fundamentals,it has drawn little notice to date but time to start getting defensive in terms of portfolio now that may be changing. composition and liquidity. The bottom line is that The aggressive commercial real estate pricing, we are in for some interesting times especially with which has been discussed in this column for the politicians stirring the pot as they gear up for the past several quarters, has started to receive more upcoming primary elections. Financial Views The Aooralsal Journal.Summer 2015 The Behavioral Imperative undoubtedly be a lot of talk about all that is wrong Recently, the behavioral side of market drivers has with the country and the economy and how to fix it received increased attention.This emphasis is particu- with new leadership. Although the debates leading larly appropriate at this stage of the real estate cycle. up to the primaries,caucuses, and conventions will Indeed,the timing of the next inflection point will be be focused within party lines,the range of candidates determined by changes in expectations and behavioral vying for attention will result in more extreme responses of the key players that have driven the pro- positions than characteristic of some election cycles. longed bullish run in commercial real estate markets. This may be particularly true for the Republican The importance of expectations was hinted at Party for which the number of declared candidates by the recent economic forecast for The Wall Street is three times that of the Democratic Party. Journal in which the biggest upside risk(i.e., a good thing) is the potential for faster consumer spending The Economic Environment than what is being forecastby traditional econometric Economic Growth models.This position is somewhat ironic,as itcomes During the 2015 second quarter, real gross domes- at a time when consumer sentiment has been shifting tic product(GDP) growth increased, reversing the downward both at home and on the global stage. downward trend that began a year earlier. The According to the Nielsen's second-quarter report, contributors to the GDP figures were mixed, with more than half the respondents in sixty of the largest consumer spending on the upside and inventory economies in the world believe they are still in a investment and imports on the downside. Despite recession. This perception varies across the globe, GDP improvement, economic growth remains with the most-negative perceptions occurring in below long-term averages, with no assurance that South America.Getting an accurate read on consumer an upward trend is imminent.This is especially true sentiment and incorporating it into economic forecasts with a number of downside risks lurking in the back- has become increasingly difficult due to external ground, such as the economic slowdown in China forces. For example, despite the Greek crisis, the and the continued economic turmoil in Greece. outlookfor European consumers improved modestly, The Conference Board Leading Indicators slowed led by Russia,although Italy and France are still in the down a bit in June after a healthy rise that started in doldrums.On the other hand,rising concern over the February, and the indicators still remain below the Chinese economy has become a particular concern,as prior-year figures.The Chicago Fed National Activity illustrated by the swift reaction of stock markets and Index rose into moderate but positive territory after capital sources to the economic slowdown in China a series of negative figures that held since January. and the devaluation of the Chinese yuan.At the same Looking forward to third quarter results,the outlook time, there are signs that consumer sales in China, for economic growth remains tempered in the 2%to and in some other markets with economic challenges, 3%annualized range,with inventories and consumer may not be as negatively affected as anticipated due spending the biggest concerns. to a combination of pent-up demand and wishful On a positive note,the Fed's Beige Book reveals that thinking by consumers. moderate economic expansion was fairly widespread On the US domestic front,there are a number of in the second quarter,with all twelve Federal Reserve behavioral signals that suggest the economic reality districts reporting increases. The Economic Cycle may be dampened from current expectations. For Research Institute (ECRI) Leading Index slipped example, the National Federation of Independent during July, continuing the recent downward trend Business (NFIB) Small Business Optimism Index but still remaining in positive territory. Despite fell dramatically at the end of the second quarter to lingering concerns over various economic indicators, the lowest point in fifteen months. The biggest drag the probability of a recession is relatively low and on small business confidence levels was a decline in significantly belowfigures forthe same period in 2014. earnings attributed to disappointing sales and higher costs.Small business owners also expressed concerns Business and Economic Indicators about the recent slowdown in economic growth. During the first half of 2015,business and economic It should also be noted that with the United States indicators were mixed,with a slightly positive trend. entering the presidential primary season there will Afferfalling into negative territory in January,business The Appraisal Journal.Summer 2015 Financial Views inventories trended upward,although the pattern was against its global peers, declined. This raised uneven and reflective of changing expectations.Despite concerns regarding the continued downward trend the increase in inventories during the second quar- thatbegan at the end of 2013 after a promising string ter—which might place a dampener on future GDP of seven quarters of gradual improvement(albeit still growth—the inventory-to-sales ratio remained flat.The in negative territory). The second quarter deficit, most recentfigures were bolstered by wholesale inven- however, was the lowest since mid-2012. During tories,while retail and manufacturing levels wereflat. June, the foreign trade deficit fell to $43.8 billion, Durable goods orders moved into positive territory whichwas disappointing comparedto expectations. during June, reversing two months of moderately Food exports fell the most, declining 4.2%. At the negative growth. New orders for manufacturing same time, the US experienced a 1.7% decline in goods increased modestly in June and moved into capital imports,with more sectors experiencing the positive territory after two negative months.Although same trend. The situation was exacerbated by the improving over the prior two months, growth in strong dollar and weakening economic conditions industrial production was relatively rather anemic. affecting many countries. Similarly,the Institute for Supply Management(ISM) On a positive note, international capital flow purchasing managers index tapered off a bit but into US Treasuries increased in the second quarter, was still in a moderately expansionary phase. The continuing a trend that began in February.In terms ISM nonmanufacturing index rebounded in July, of capital providers,the increase was led by private racking up the largest increase in over seven years investors while foreign institutions were net sellers. and winding up at the highest level in over a decade. The eurozone has been caught up in spillover This improvement was a very positive note given the from Greece's economic problems that have hung importance of the nonmanufacturing component in over that country for the past five years.That situation GDP figures.The services component improved during has, and continues to be, complex and difficult to the first quarter although a number of sectors slipped. solve. While the economic tragedy in which Greece The most positive gains were in the administrative, is caught will ultimately be resolved, at this point it professional business,and health care services sectors. is difficult to see a clear path to resolution. What is One positive note for businesses,consumers,and clear is the solvent nations are not going to provide an homebuyers is the recent Federal Reserve Survey of endless stream ofbailouts,and the recentthird round Senior Loan Officers,which reveals that banks have may well be the last. The International Monetary continued to loosen the purse strings and have relaxed Fund(IMF),which has been pressuring creditors to lending standards across business lines. Commercial provide additional support,is running out of options, banks also have increased their willingness to make and it is waiting for a clear plan for reducing the loans to consumers and have eased up on credit card ever-accelerating debt. Unfortunately, the current standards. Lending standards for commercial real extemporaneous approach is adding to the confusion estate loans have loosened by almost 10%, while and lack of cohesiveness.The situation may be even demand for commercial loans is relatively strong. more dire than currently believed if the mid-August This trend is consistent with the residential mortgage report by European Union officials confirms the front,especially for government-sponsoredenterpriseprediction of significantly higher Greek debt. The eligible mortgages from Fannie Mae and Freddie Mac. austerity measures that are being forced on Greece Thus,capital providers appear to be more than willing continue to dampen expectations within its own to do theirpartto help bolster economic activity,shifting borders. It also taints the infrequent good news that focus to how business and consumer confidence levels does emerge,such as the economic growth reported and expectations will translate to actions. for the second quarter. For now, the lack of a clear course of action or a commitment to implement any The Global Scene of the options that have been suggested hangs overthe The global economic environment is one of the key economic outlook across Europe and makes it more uncontrollable factors that affects the plight of the vulnerable to added shocks such as the unexpected US economy. slowdown in China. During the second quarter, the US current China was the center of a lot of attention in the account balance, which broadly tracks US trade summer of 2015. The 8.5% decline in shares on Financial Views The Aooralsal Journal.Summer 2015 M July 27 created an economic tsunami.Adding further for stimulus actions.Despite these concerns, global to the economic turmoil,the People's Bank of China economic growth is still forecast to come in around (PBOC)unexpectedly decided to devalue the yuan in 3.3%,which while disappointing is still higher than early August,an action that rippled across the globe. consensus forecasts for the United States. Indeed, The combination of the volatile stock market in despite concerns over economic growth in China, China,the devaluation of the yuan,and the economic many countries would love to have the same problem slowdown that triggered them had an immediate and as China's government target of 7% economic dramatic impact on China's Asian neighbors.While growth, which is over twice that of the rest of the it is not clear how things will play out over the long world.Thus,it is hard to view the Chinese situation term,the economic shocks have created immediate in the same terms as that in Greece. downside pressures.The clouded economic picture and the uncertainty over how regional policy makers Employment will react ultimately will be priced into the market On a positive note,employers added 215,000 jobs in as added risk. July,which translated to the fifty-eighth consecutive The actual impacts of the recent events in China month of improvements. This is the longest string are impossible to quantify at this point, as there is of employment gains on record. Despite this streak limited precedence to draw on.Given the importance of of generally good news, the 2015 monthly average China to the global economy,the resultantuncertainty on a year-to-date basis is around 211,000 new jobs has spread across Europe, the Americas, and other compared to 240,000 during the previous year. The countries whose fates are all intertwined. The slowdown that occurred was attributed to smaller situation in the United States is illustrative, with the companies,while larger companies actually added devaluation of the yuan weakened by 1.9%against the jobs at a higher rate. From a regional perspective, dollar.The explanation was that the PB OC wanted to oil states have been particularly hard hit with the bring the yuan in line with the market.Also factored decline in prices translating to significant layoffs. into the decision was news that the export sector had This trend resulted in the loss of 25,000 jobs in Texas weakened,with July exports falling 8%over the prior in March and is likely to continue as the global eco- year's figures.Imports declined ataboutthe same pace, nomic slowdown suppresses the sector. much to the chagrin of its global trading partners.The The Intuit Small Business Employment Index decision to devalue the yuan led to complaints that increased in July over the prior month, but it still the move put companies that trade with China at a was down from earlier in the year,suggesting small disadvantage. It also put pressure on other countries businesses have pulled back a bit and are waiting to take a hard look at their own currencies as they try for the economy to regain some momentum. In to protect their export businesses. terms of layoffs,the reduction of 57,000 army troops The current economic slowdown and other contributed to the increase in the number of layoffs problems in China are making it uncertain that the in July,which reached 106,000—the highest level in central bank's goal to open up the markets by year- over four years.A couple of sectors remained bright end is still feasible.Among all this uncertainty,bond spots in terms of new hires,including retailers and yields have been driven up and prices have declined, computer/technology firms that are expanding.On a and Chinese companies have been forced to pay cautionary note,the recent declines in productivity higher interest rates to investors, putting them at are also a cause for some concern,especially when a disadvantage relative to other Asian competitors. combined with the modest increase in wages that The global outlook has slipped due to the has elevated per-unit labor costs. economic weaknesses in a number of countries in During the second quarter, the unemployment addition to Greece and China. Indeed, even before rate remained flat at5.3%,with the improving labor the difficulties in China the IMF's projection for market attracting more people back into the labor 2015 global economic growth fell to its lowest level force. The percentage of employees who are stuck since the global financial crisis in 2009. The IMF with part-time jobs or have dropped out ofthe labor has noted that countries are more vulnerable to the force fell to around 10%, which is significantly impact of negative externalities due to their high debt below the 17% reached in 2010 but still above the levels and low interest rates that leave little room prerecession levels. In addition, the number of imThe Appraisal Journal.Summer 2015 Financial Views underemployed remained at unacceptable levels. forecasts that will linger until the net behavioral In terms of wages, the average earnings of private responses are better understood. workers approached$25 per hour in July,which is an increase of about2.1%over the prioryear. Inflation and Interest Rates The labor force participation rate remained Inflation moderated during the first half of 2015, relatively flat at 62.6%,which when combined with which was consistent with expectations and the the percentage of workers who are underemployed slowdown in the global economy. The ECRI Future suggests that there is still a lot of ground to be Inflation Gauge rose modestly in July. Despite the regained in the labor market. This is not deterring increase, the inflation gauge is still 3.6%below the workers seeking new jobs as the quit rate has prior year,and it remains below long-term averages, continued to increase. especially those in the heyday period leading up to While not getting as many headlines recently, the great recession. the debates over minimum wage legislation are After four quarters of relatively healthy gains not likely to go away and are expected to accelerate in employment costs, the second quarter figures as the primaries loom ahead. As expected, a came in lower than expected but still 2%above the number of companies that rely on minimum prior year. The Producer Price Index was also up wage workers continue to argue that an increase during the second quarter,with the increase in core in minimum wages will actually hurt those who goods leading the increase. Import price changes the legislation is designed to help. This potential slipped into slightly negative territory,reversing the unintended consequence was punctuated by Wendy's increases in April.D espite this decline,impo it p rices announcement that mandated minimum wage increased some 4%on an annualized basis.Energy increases would force the company to pull back on prices continued to receive significant attention. employment and experiment with other delivery Despite modest gains in petroleum and natural gas systems such as self-order kiosks and reliance on prices,price levels are still dramatically lower than automation. Whether the Wendy's claims pan out, the prerecession era and have provided an upward the ramifications of the much-ballyhooed increase lift to the economy and consumer sales. The recent in wages at Walmart suggest there is some merit slowdown in the economy is likely to translate to an to the assertion. In an internal memo leaked in annualized inflationary rate lowerthan the Fed's 2% August, the firm warned employees to prepare for target rate but on par with expectations. an"unexpected"wave of layoffs at the home office. The September meeting of the Fed's Open Market On the other end of the spectrum, the recent Committee will determine whether interest rates will experiment by Dan Price,CEO of Gravity Payments, be increased, and this potential move is receiving a credit card processing company, to raise the significant attention.While some recent weaknesses minimum salary to $70,000 and cut his own salary and the slowdown of the economy will be factored by 90% captured a lot of attention but backfired. into the decision, the market seems prepared for a Despite elevating him to a hero status with outsiders, modestincrease as the Fed begins to normalize rates. the strategy created a lotof angstamong the existing According to a Reuters poll in mid-August,some 55% employees who feltundercut.They complained that of economists believe the Fed will raise short-term the strategy essentially rewarded"clock punchers"at rates twice this year, with a 60% probability of an the bottom ofthe productivity curve atthe expense of increase in September and an 85% chance by the those who were working hard to make the company end of the year.The estimates are for an increase to successful.The bold move also hurt the revenue side 0.375%in September,followed by a second increase of the business, as some customers pulled back to to 0.625%toward the end of 2015 or early next year. make a political statement or left due to the fear that These estimates are consistent with June figures; higher prices would be necessary to cover the pledge. even if the increases occur, rates will be low by The result was a loss of some key employees and historical standards. As might be expected, not all customers,which were both expensive propositions. parties are calling for an increase in rates. Most The lesson is that there is no clear answer to notably, the International Monetary Fund in June appropriate wages,and the changes may play out in urged the Fed to hold off on interest rate changes unexpected ways.This adds uncertainty to economic until 2016. Due to weakening global economic Financial Views The Aooralsal Journal.Summer 2015 M conditions since then, the IMF position has likely Food Services for July were up modestly from June firmed up more,especially with its recent downward and up 2.4%from the prior year. The same pattern revision in global growth forecasts. was revealed on a year-to-date basis. Even if the Fed increases short-term rates, The improvement in retail sales was fairly the historically low interest rate environment that widespread across economic sectors. The most has bolstered the economy and real estate capital dramatic increases were in Food Services and markets is likely to continue, with a number of Drinking Places,which rose 9%, along with Vehicle factors suggesting the normalization process will and Parts Dealers sales, which increased 7% on a take longer than anticipated earlier. The near-term year-over basis. Automobile sales were relatively outlook is for modest increases in interest rates, strong during July,recovering from a decline in June which when combined with easing loan standards,is and returning to the upward trend exhibited for most good news for borrowers and the economic outlook. of the year. On the other hand, e-commerce sales continued to increase,reaching a record$80 billion Consumer Confidence during the first quarter of the year.This represented The slowdown in job growth compared to a year ago a 3.5% increase over the 2014 fourth quarter and has weighed heavily on consumer confidence and pushed the market share of total retail sales over 7% is reflected in the decline in the Conference Board's on a continued upward trajectory. Consumer Confidence Index.The Confidence Index plummeted to 90.9 in July, down from around 99.8 Housing Market in June.In terms of trends,this was the lowest level The housing market keeps receiving significant since early last fall when the economic and job attention—especially the apartment sector, which figures were stronger. The decline was attributed continues to surge on the new construction front to weakening in the Expectations Index, which while the single-family housing sector remains declined sharply to 79.9 compared to 92.8 in June. rather guarded. Indeed, construction of multifam- The Present Situation Index was generally positive ily units are back on par with pre-crisis levels. In at 107.4 in July but down from 110.3 in June. addition,multifamily construction has increased in The University of Michigan's Consumer market share of new housing units due to tempered Sentiment Survey revealed more consistent results, growth in the single-family sector.Part of the surge with the present conditions component relatively in construction of apartments can be attributed to the flat,averaging around 107 despite a decline in May, continued decline in the homeownership rate,which which has since been reversed. On the other hand, fell to 63.4%during the second quarter, continuing the expectations component slipped modestly. the downward trend that has been experienced In terms of consumer credit, borrowing slowed for a number of years and is well below long-term modestly during the second quarter, although still averages. In terms of market share, single-family indicating growth. Personal income growth was permit activity came in at 685,000 units in June, relatively strong after a decline in March. The compared to 498,000 multifamily units. The share outlook for consumer credit is for continuation of of multifamily units is much higher than historical the upward trend, assuming economic conditions averages and if it holds, would reflect a structural continue to improve and loan standards do not shift in tenure choice.While there are clearly some tighten to the point that they throttle growth. inhibitors that are constraining homeownership levels,it is doubtful the dramatic shift is more than a Retail Sales cyclical phenomenon.This situation warrants close Retail sales have been uneven, with increases in attention,especially for investors still buying apart- March and May and declines in April and June.This ments at record-low capitalization rates. sawtooth pattern reflects some of the uncertainty There are some signs that the single-family that hangs over consumers as the economy slows housing scene might experience some improvement, and wages remain relatively stagnant. The recent including the relaxation of lending standards and declines were relatively widespread, including increases in baseline jumbo mortgage thresholds. apparel,furniture,building supplies,and department Currently,the jumbo mortgage threshold is$417,000 stores. US Census Bureau estimates of Retail and in most of the United States, while some high-cost ImThe Appraisal Journal.Summer 2015 Financial Views cities have higher thresholds of $625,500. The these increases, all three indices are below their increase in housing prices is increasing pressure to peak at-13.3%, -14.3%, and -6.8%, which suggests raise these limits,with the Federal Housing Finance that smaller cities have recovered at a faster pace Agency(FHFA)requesting public input on its indices than their larger counterparts. and thresholds. These thresholds are important to the upper-middle to upper housing segments,since Real Estate Market those seeking conforming loans(i.e.,those under the Real Estate and Capital Market Fundamentals limits) have greater access to mortgages and lower At an overall level, the real estate spatial markets mortgage rates, even with lower credit scores,than continued to improve during the first half of 2015. those seeking jumbo loans that are over the limit. This improvement can be attributed to a number Other good news on the housing front is the of factors, including the combination of generally decline in homeowner vacancy rates and in rental tempered construction levels and gradual improve- rates. While the former may be at sustainable ment in tenant demand. As might be expected,this levels,the surge in apartment construction may put situation varies across markets and property types, upward pressure on vacancy levels, especially at with low capitalization rates leading some investors the mid-upper tier of units that are being favored to turn to development in search of higher returns. by developers, lenders, and investors. On the In addition,investors have continued to expand their mortgage front, Mortgage Bankers Association's investment horizons,turning to secondary and ter- reported delinquency rates have continued to fall, Nary markets that have not experienced the feeding although there was a modest increase in the percent frenzy of the top markets targeted by investors. of foreclosures started during 2015. Mortgage In general, real estate capital markets have application activity was unsteady during the first been active with healthy transaction levels fueled by half of the year but continues to trend upward. The strong investor demand. According to Real Capital combination of positives has helped bolster builder Analytics (RCA),transaction volume for the second confidence,with the National Association of Home quarter was $118 billion, a 23% increase over the Builders (NAHB) Housing Market Index trending prior year. Despite this healthy pace, it was off abit upward and reaching its highest point in a decade. from the 2015 first quarter,which was up almost 50% In terms of housing prices, a number of over the prior year;the total figures were up 36%over competing price indices provide insights into the the first half of 2014.The$251 billion in transactions health of the single-family market. For example, for the first half of 2015 included 15,214 properties the Black Knight Home Price Index trended up with an average price of$16.5 million. through the first half of the year, although it still To put the current transaction volume into remains below the previous year. When broken perspective and provide some insights into the stage down by price quintiles, houses in the lowest 40% of the current market cycle, it is useful to compare of markets experienced the highest rate of growth at recent levels to the peak of the marketbefore the 2008 5.6%,while houses in the next two tiers appreciated slowdown. On a trailing twelve-month basis, there at the lowest rate,averaging 4.4%on an annualized was slightly under$500 billion in transaction volume basis.While not broken out by price,the CoreLogic through June 2015.This was the highest level since Home Price Index reveals a similar pattern with the market peaked in 2007 when there was a record modest improvement in prices.On a year-over basis, $575 billion in transactions.Interestingly,the recent prices increased 6.7%in June. The FHFA Monthly three-year trend is similar to the pattern that led Purchase-Only Price Index revealed a similar up to 2008, when transaction volume plummeted pattern and showed fairly widespread improvement, 70%to $175 billion. Figure 1 illustrates the trend in with gains in six of the nine census divisions on a transaction volume since 2001. month-to-month basis. On a year-over basis, the The second quarter slowdown in transaction FHFA index revealed increases in all nine census volume can be attributed to a number of factors. regions. The S&P/Case-Shiller Home Price Index One consideration may be the fact the market is revealed a similar pattern, with improvements in experiencing a pause as attention shifts to concern the top-twenty cities leading the way, followed by over rising interest rates and the tempered rate of the top-ten cities,and the national averages.Despite economic growth in the United States and abroad. Financial Views The Aooralsal Journal.Summer 2015 M The decline in transaction volume is also likely latter and other markets with over $10 billion in attributable to the fact the somewhat frenetic pace sales, offering evidence of the movement out of was not sustainable, especially at this stage of the the primary and secondary markets. The situation cycle when top-tier markets are fully priced and was different in the Northeast,where the New York investors are expanding their horizons in search of metro area dominated the$53.6 billion transaction higher returns. volume, with Boston coming in at$7.5 billion and With respect to players on the buy and sell side, tertiary markets at only $1.3 billion. In terms of there were some significant differences in activity top markets, the top ten included Manhattan, Los levels. Of particular note was the fact about a third Angeles, Chicago, Dallas, Atlanta, San Francisco, of the top twenty-five buyers were offshore investors, Seattle, Boston, San Jose, and Houston. Despite the and another tranche included investors with a increase in transactions in secondary and tertiary combination of US and international assets. On the markets, the top ten accounted for 42% of total US sell side, the situation was significantly different, transactions during the first half of the year, and with none of the top players in the offshore category. 55%of the total in the top-twenty-five markets. At a This pattern suggests that a number of offshore national level, tertiary markets accounted for 16% investors in US real estate have taken a long-term of transaction value and 23%of transaction volume. hold perspective.It also suggests that some domestic Table I shows transaction volume by property type investors may be taking a profit at a point in the cycle in the top markets. when prices are near or at their peak in what has To provide more insights into what real estate been a prolonged bull run. performance statistics mean in terms of the overall While transaction volume has been relatively market, it is useful to step back and explore the strong for the United States as a whole,someregions composition and market capitalization of the two and markets have outperformed the averages while leading benchmarks for the private and public real others have lagged. From a regional perspective, estate equity markets. the West (28%) and Northeast (21%) regions, as defined by RCA, accounted for almost half of the Real Estate Equity Market Benchmarks $251 billion in total transaction volume for the With respect to the private commercial real first half of the year. The most active markets in estate market, the National Council of Real Estate the West were Los Angeles and San Francisco, Investment Fiduciaries (NCREIF) is the generally although sales in tertiary markets outpaced the accepted benchmark for US real estate investment Figure 1 Transaction Volume by Quarter, Individual and Portfolio Sales $180,000 - $160,000 - - $140,000 - $120,000 - $100,000- $80,000 180,000$160,000m $140,000$120,000$100,000$80,000 d $60,000 0 $40,000 $20,000 loll $ oy 6 06 tia tia tia tia tia tia tia tia tia tia tia tia tia tia tia Quarter The Appraisal Journal.Summer 2015 Financial Views performance. NCREIF was founded in 1977 to pro- corporate pension funds,endowments,private equity vide a benchmark for institutional investors to help managers,and individual state funds. stimulate pension fund investment in real estate that On the public market front, the FTSE NAREIT was abyproductofthe Employee Retirement Income All Equity REITs Index is the traditional benchmark Security Act of 1974 (ERISA),which supplanted the for commercial real estate performance. As of "prudent man" criterion for investment fiduciaries June 30, 2015, the All Equity Index had a market withthe"prudent expert"criterion.Briefly,under the capitalization of$826 billion while the All REITs prudent expert standard,if real estate was considered Index had a market cap of$890 billion. According an asset class versus an industry sector,investment to the National Association of Real Estate Investment managers held to the fiduciary standard had to make Trusts(NAREIT),the 224 REITs in the index owned allocations to real estate to take advantage of the some$1.7 trillion worth of commercial real estate. diversification benefits it could add to a mixed asset Of the total,$895 billion was traded on the New York portfolio.The only holdup against implementation of Stock Exchange with an equity market cap of$838 the fiduciary standard was the lack of a benchmark billion.Through the first half ofthe year,the All REIT that asset allocators could plug into quantitative asset Index had an average of 4.34%dividends compared allocation models. This void led to the introduction to 3.7%for the All Equity REIT Index.With respect of the NCREIF Property Index (NPI). At that point, to leverage, the Equity REIT constituency had an the NPI was an all-equity index of performance of average debt ratio of some 32%with a debt coverage assets in tax-exempt accounts in the industrial,office, ratio of 4.5 overall.In addition,forty-six of the Equity and retail sectors. REITs were rated investment grade,which translated In 1984, the NPI was expanded to include to 60% of market capitalization. Looking at the All apartments,and the NCREIF Timberland Index was REIT constituency, the debt ratio was somewhat introduced in 1986,followed by introduction of the higher at 43.5%,with a debt coverage ratio of 3.6 for NCREIF Farmland Index in 1990. In 1995,leverage the overall index. In terms of average daily trading properties were included in the NCREIF's expanded volume,the June 2015 figures were over 50%above scope, with returns back cast to 1982 and reported the same period in 2010. on an unleveraged basis. In 2000, the NCREIF With respect to investment performance, the database was further expanded to include properties private and public markets were out of sync during not qualifying for the NPI. Additional indices were the first half of 2015, with the advantage going to used,including the NCREIF Fund Index Open-End the private market. The NPI had a solid first half Diversified Core Equity (NFI-IDCE) Index and the of the year, with total returns over 3%for each of NCREIF Townsend Fund Index, which focuses on the first two quarters. On a trailing twelve-month style differences including closed-end,value added, basis, total returns were 13%, with 5.2% income and opportunity funds. The potpourri of NCREIF returns and 7.5% appreciations. REITs began 2015 products was rounded out in 2012 with the release with a strong start,before slipping to negative total ofthe Fund Index Open End Equity Returns,and the returns in February,which pulled down returns for Timberland Fund and the Separate Account Index. the quarter and led to a loss of momentum toward The introduction of these varied NCREIF the end of the first quarter. This general downward indices has allowed asset allocators, investors, spiral continued throughout the second quarter,with consultants, and researchers to create customized -5.70/oyear-to-date returns forthe Equity REIT Index. benchmarks for portfolios with different areas of On a positive note,the market turned around in July, focus or styles.The NPI is a quarterly index,tracking with REITs regaining most of the lost ground and investment performance for core institutional real dividends hovering around 3.5%for the first seven estate investment. At the beginning of the second months of the year. quarter of 2015, the NPI included 6,863 properties with a gross fair market value of some $426 billion Office Market dollars. Although the number of contributing At a national level,spatial market fundamentals for members varies from quarter to quarter, over the office market improved during the first half of ninety members participated at the end of the first 2015. Positive net absorption helped push vacancy quarter.These members include real estate advisors, rates down, with cities with viable urban cores Financial Views The Aooralsal Journal.Summer 2015 M significantly outperforming their suburban coun- index. Implicit capitalization rates came in at 5% terparts.However,national net absorption has been annual,with a modest increase overthe first quarter. highest in the suburbs,with urban space moving at The public office market,which racked up solid a slower pace. While office construction remains 26%total returns in 2014, experienced a generally tempered by long-term historical standards, first downward trend through July, with -1.3% total quarter deliveries were at the highest level in over returns on a year-to-date basis. Dividends came in five years.Much of this activity was concentrated in at 3.1%,trailing the equity REIT average and other a number of select markets.Interestingly,some 80% property types. Blended industrial/office REITs of additions to office stock occurred in the suburbs, slipped even more, with -2.2% returns but higher although that mix varied by market. In some mar- dividend rates of 3.5%year-to-date. kets, landlords benefited from an increase in rental On the transaction front,the office market was rates during the first half of the year, which was the most active of the major property types during welcomenewsto investorswho bought or held office thefirsthalf ofthe year,accounting for 28%of sales. properties that were priced or valued at historically The average transaction value at$25.9 million was low capitalization rates. higher than other property sectors.The West region Turning to the investment performance,the story was the most active, accounting for 28% of value differed for the private and public sectors. On the and 38%of sales.The most active markets were Los private market front,the office sector accounted for Angeles ($3 billion), Chicago ($1.9 billion), Dallas some 38%of the NCREIF Property Index atthe end of ($1.6 billion), Northern New Jersey ($1.5 billion), the second quarter,with a total market capitalization Orange County ($1.25 billion), and Seattle ($1.26 of$168.7 billion.On a twelve-month moving average, billion).The tertiary markets accounted for only 8% office returns of 12.9%were on par with the overall of transaction value,but 18%of transaction volume. Table 1 Total Transactions by Property Type by Top-12 Markets ($millions, Jan-June 2105) Property Type Market Office Industrial Retail Apartment Hotel Dev Site Total NY Metro $16,532 $2,653 $8,438 $8,571 $4,396 $3,746 $44,336 LA Metro $4,921 $5,639 $3,730 $5,327 $1,651 $1,110 $22,377 SF Metro $8,549 $2,916 $1,547 $2,190 $1,619 $1,218 $18,037 Chicago $5,032 $1,862 $1,624 $1,711 $614 $270 $11,113 DC Metro $3,885 $586 $1,794 $2,952 $479 $298 $9,994 Dallas $1,572 $1,632 $1,333 $2,987 $690 $284 $8,498 Atlanta $2,312 $1,057 $963 $2,812 $351 $146 $7,642 Boston $3,655 $548 $786 $1,573 $602 $314 $7,478 Seattle $2,727 $1,256 $1,069 $1,908 $211 $145 $7,316 Houston $1,507 $912 $1,027 $2,517 $376 $224 $6,563 Phoenix $1,380 $589 $830 $1,405 $873 $171 $5,248 Denver $1,417 $493 $510 $1,979 $317 $133 $4,849 Top 12 $53,490 $20,142 $23,650 $35,933 $12,177 $8,059 $153,451 Other $17,878 $16,867 $22,000 $27,300 $14,690 $2,933 $101,669 Total $71,368 $37,009 $45,650 $63,233 $26,867 $10,993 $255,120 Top-12% 75% 54% 52% 57% 45% 73% 60% DC Metro=DC,DC Maryland curbs,DC VA burbs NY Metro=Long Island,Manhattan,Northern NJ,Stamford&Westchester LA Metro-Los Angeles,Inland Empire,Orange County SF Metro=San Francisco,East Bay,San Jose ® The Appraisal Journal.Summer 2015 FlnaaClal Views Retail Market over rising interest rates that affect properly types In general,retail market fundamentals have shown tied to bond-type pricing models. limited improvement, although some markets and With respect to transactions, the retail market submarkets have been active with retailers trying was the most active of the major properly types to expand market share or move into new markets. during the first half of the year,and it accounted for This situation was mostpronounced atthe top end of 28%of sales.The average transaction value was$13.4 the market, ranging from successful regional malls million,which was lower than other property types with a franchise in a local market to high-street with the exception of industrial.The West region was urban locations.At the other end of the continuum, the most active,accounting for 28%of value and 38% commodity-type space remained flat with vacancy ofthe number of sales.The most active retail markets rates over 10%at a national level.In some markets, included Manhattan($4.8 billion),Los Angeles($2.4 the combination of shifting consumer preferences, billion), the New York City boroughs ($1.6 billion), hyper competition from traditional retailers, and Northern New Jersey($1.4 billion),and Seattle($1.1 continued emergence of online formats has placed billion). Retail sales in tertiary markets led other some centers at risk.This situation has been exacer- property types, accounting for 18% of transaction bated by the slowdown in economic conditions and value and 22%of transaction volume. the pressure on bottom lines as merchants focus on unit profitability and rationalize their outlets. Industrial Market Retail sector companies also are facing pressure Spatialfundamentals in the industrial market improved from activist shareholders who are demanding that during the first half of2015,building onthe momentum they divest of real estate owned in favor of leased established in 2014,which was a solid year. space, which would provide a temporary boost in During the first half of 2015, national vacancy share values. A vivid example of this phenomenon rates declined as a result of growing tenant demand is Macy's, Inc., which is facing calls to spin off its being in line with additions to new stock.In terms of real estate holdings. Although such pressure is not deliveries,estimates vary by source,butthe additions new (Target Corp. and Dillard's Inc. have faced to space, which are likely to accelerate during the similar pressure),it is unlikely to abate and will be second half of the year,are raising no major flags for an interesting trend to follow as it spreads among the sector.The good news for owners and developers retailers. Hopefully, they will be able to avoid is that demand has been able to keep up with supply, Mervyn's fate, for whom the reality of rising rents allowing owners to increase rents in some markets and a recession pushed it into bankruptcy. and submarkets. The recent global economic On the investment front,private retail real estate slowdown has created some concerns,but again there returns were competitive with other property types are no major flags that suggest the sector is in for a through the second quarter, with 15.6% trailing short-term correction. twelve-month returns compared to 13% for the With respect to investment performance, the overall index.Income returns were 5.4%annualized, capital markets were onparwithspatial fundamentals. which was competitive with other property types. For example,duringthefirsthalf of2015,the industrial The appreciation component fell dramatically in the sector led all major property types in terms of total second quarter, trailing all property types with the returns, racking up an industry-leading 14.8% total exception of hotels. return. Interestingly, in light of the lower risk profile The public retail property market led other of industrial properties, the sector generated a very property types for 2014 in terms of total returns, competitive total return,with the income component which came in at 27.6%,lagging only the apartment contributing to the overall performance. The public sector. Through July, year-to-date sales slipped industrial market delivered acceptable performance 0.56%, a disappointing total return figure after a during 2014 on a risk-adjusted basis despite lagging strong year. The fate differed somewhat by retail other property types.Unfortunately,the sector faced a types, with regional malls eking out a slightly numberofchallenges during the firsthalfof2015,with positive return.On the other hand,freestanding retail -3.6% total returns through July. This disappointing slipped almost 2%,which may be related to concern performance might be attributable to the global Financial Views The Aooralsal Journal.Summer 2015 M slowdown in Western Europe and China, which is The challenges facing condominium development impacting exports and general economic conditions. and finance has helped skew construction to the Industrial transaction volume in the first half of apartment sector. It has also prevented developers the year lagged other major property types with the from adding condominiums to the urban core,which exception of hotels, coming in at 14%of value and has experienced something of a renaissance among 22%of sales volume.Despite this relative positioning, millennials and others interested in urban living. the sector was up 40% compared to the prior year, Since some of those drawn to the core would prefer indicating some increases in investor appetites.The ownership rather than life-long rental,there may be average industrial transaction was $10.7 million, gaps between current andpreferred options thatare trailing all property types.The most active industrial masked by the surge in apartment demand and the markets were Los Angeles ($3 billion), Chicago willingness of investors, lenders, and developers to ($1.9 billion), Dallas ($1.6 billion), Northern New continue to add new apartment stock. Jersey($1.5 billion), Orange County ($1.25 billion), With respect to investment performance, the and Seattle ($1.26 billion). The tertiary markets public apartment market was on fire during 2014, accounted for 16% of industrial transaction value with total returns approaching 40% and outpacing and 19%of transaction volume. all other property types. There are rising concerns that certain markets and submarkets are getting Apartment Market overstimulated in terms of new construction. Apartment market fundamentals remained strong However, REIT investors have not shared that during the first half of the year despite the pace of concern and apartment REITs outperformed all additions in many markets. The decline in vacancy property types through July, with industry-leading rates and strong net absorption allowed landlords total returns of 7.5%. Although accounting for less to push rents in a number of markets, with rents than 10%of residential REITs,manufactured homes increasing 6%or more over the prior year. helped bolster residential returns,with 14.9%returns As has been the case for a number of years,the on a year-to-date basis. condominium market continues to languish and During the firsthalfof2015,transaction activity in remains well off the pace in terms of value recovery, the apartment market was relatively high compared transaction volume,and new construction.All three to other property types, accounting for 25% of the of these factors are likely to be under added pressure value of transactions and 23%of the volume.Despite due to the restrictions on condominium mortgages this performance,the apartment sector lagged other that were enacted after the housing market crash sectors in terms of increases,suggesting the property between 2008 and 2012.For example,rules enacted type might be nearing its peak. The average value by the Federal Housing Administration (FHA) was$173 million,trailing only office and hotels and require that in order to get insured mortgages in a attesting to the interestin larger,top-end projects that condominium development, a minimum of 50% of investors have been seeking. the units must be owner-occupied and a maximum The most active apartment markets were of 50%can be FHA-insured.For new developments, Manhattan($4.2 billion),Los Angeles($3.4 billion), at least 30%mustbe under contract.These rules are Dallas ($3 billion), Houston ($2.5 billion), Denver much more onerous than for apartments, which ($2 billion), Seattle($1.9 billion),and the New York typically have no preleasing, and thus become City boroughs ($1.6 billion). Interestingly, tertiary speculative projects that must compete for tenants. apartment markets were not as active as in the While apartment construction has continued other property types, accounting for only 14% of to surge, condominium construction has slipped transactions.Due to smaller average sizes in tertiary in terms of market share. For example, prior to the markets,the share of the number of transactions was housing market collapse,condominiums accounted on par with other property types with 19%of sales. for 40%-50%of multifamily housing construction. After a dramatic decline,the condominium market Conclusion share has leveled off. However, the condominium Reflecting on economic,capital market,and real estate market accounted for only 5.5%of new construction market fundamentals,there are a number of positive during the first quarter,the lowest ratio since 1974. signs that suggestthe US recovery remains ontrack As The Appraisal Journal.Summer 2015 Financial Views noted,many key metricspointtoacontinued economic James R. DeLisle, PhD, is associate professor of recovery,althoughthere are also somewarning signs. real estate and director of the Lewis White Real Estate Of particular concern is the slowdown in employment Center at the University of Missouri-Kansas City Bloch growth from 2014 as well as the emerging issues on the School of Management. His charge is to help build a global front These range from the economic conditions preeminent real estate program that strikes a balance in Greece to the recent slowdown in China.However, between academic rigor and state-of-the art industry there are also some positive indicators,including low practices. Drawing on this foundation, students are inflation,low interest rates,and access to capital for a trained in critical thinking and the spirit of entrepre- broad range of players. neurship necessary to take on the complex real estate With respect to commercial real estate, spatial problems that the next generation of industry lead- market fundamentals continue to improve in line ers must be able to solve. He comes to the Bloch with the economy as measured by a general decline School from the University of Washington where he in vacancy rates,which in some markets translated was Runstad Professor of Real Estate and director of to moderate increases in rents. Despite this rather the graduate real estate studies. DeLisle has spent sanguine outlook, there are some signs that the almost half of his forty-year career in real estate as a aggressive pricing is likely to receive more and professional with specializations in applied investment more attention as the market begins to approach research and strategic portfolio management. Before its zenith. This was punctuated by the recent Wall returning to academia in 1999, he was an executive Street Journal headline"Surge in Commercial Real vice president and head of strategic planning for Lend Estate Prices Stirs Bubble Worries:' So, it is time to Lease Real Estate Investments, a global company and ask a couple of questions. First, will the real estate the successor firm to Equitable Real Estate,where capital market fall back in an orderly manner and he founded the Investment Research Department. He avoid anypricing corrections?Second,will investors has published widely in academic and professional continue to clamorfordeals and will profit taking be journals. DeLisle received his BBA in real estate and moderate, which will allow the market to stumble MS in marketing from the University of Wisconsin. along in a state of nirvana? Finally, are we at the He received his PhD in real estate and urban land stage that the bubble might actually be ready to burst economics from the University of Wisconsin under his or at least lose a lot of hot air? If the latter occurs, mentor,the late Dr. James A. Graaskamp,one of the politicians willbringtheir own hotairto centerstage. leading academic proponents of applied real estate Unfortunately, nothing on politicians' plates will research. To increase industry connections, DeLisle stimulate the market and we are likely inforanother has created a personal website, http://jrdelisle.com. round of political positioning.Enjoy the journey and Contact:delislej@umkc.edu consider whether it is time to venture onto the"road less traveled,"which from a behavioral perspective The author would like to thank Jonathan DeLisle and may be good advice at this stage of the cycle. Robert DeLisle for their help with this article. Financial Views The Aooralsal Journal.Summer 201-5 Web Connections Internet resources for additional reading Black Knight Home Price Index http.//www.bkfs.com/Data andAnalytics/Divisionlnformation/Solutions/Portfolio Management-and- Due-Diligence/Pages/Black Knight HornePriceIndex.aspx Bureau of Labor Statistics—Producer Price Indexes http.//www.bls.gov/ppil Conference Board—Business Cycle Indicators https.//www.conference-board org/data/bci.cfm CoreLogic Home Price Index http.//www.corelogiacom/about-us/researchtrends/home price-index report.aspx#.VdM7MbJViko Economic Cycle Research Institute Indexes https.//www.businesscycle.com/ecrLreports-indexes/all-indexes# Federal Reserve Bank of Chicago—Chicago Fed National Activity Index (CNAI) https.//www.chicagofed.org/publications/cfnai/index Federal Reserve Bank of St. Louis—Federal Reserve Economic Data(FRED) haps.//researeh.stlouisfed.org/fred2/ Institute for Supply Management(ISM)—Report on Business https.//www,instituteforsupplymanagement,org/ISMBeport/ International Monetary Fund http.//wwwJmf org/externallindex.htm Intuit Small Business Index htip.//indemintuit.com/ Manufacturers Alliance for Productivity and Innovation https.-Ilwww.niapi.net/ National Association of Home Builders (NAHB)—Housing Economics http.//www.nahb.org/en/research/ho using-eco nomics.aspx National Council of Real Estate Investment Fiduciaries (NCREIF) —Data and Products https.//www,ncref org/data.aspx —Resources (papers and minutes) https.//www,ncreif.org/resources.aspx National Federation of Independent Business (NFIB)—Economic Trends http.//www.nfib.com/surueys/small-business-economic-trends/ ® The Appraisal Journal.Summer 2015 Financial Views U.S. Bureau of Labor Statistics Economy at a Glance Iowa Iowa Bads Sept Oct Nov Dec Tan Feb Data Series Data 1014 20142M 1014 1015 2015 Labor Force Data Civilian Labor Fame 111 ,.W 1,711.5 1,713.3 1,714.7 1,715.6 1,716.9 801,716.2 Employment Lll ,Alt/ 1,637.5 1,639.5 1,641.0 1,642.0 1,645.0 801,646.1 Unemploymentill 74.0 73.8 73.7 73.6 71.8 070.1 Unemployment Nate Ll „elf 4.3 4.3 4.3 4.3 4.2 04.1 Nonfarm Wage and Salary Employment Total Nonfli mLl „A7 1,549.3 1,555.0 1,557.4 1,559.1 1,562.1 01,561.7 12-month%change ,At( 1.0 1.4 1.5 1.5 1.6 01.4 Mining and Logging Ll „elf 2.2 2.2 2.3 2.3 2.2 02.2 12-month%change ,Air 4.3 4.3 0.0 0.0 4.3 00.0 Construction Ll „elf 76.0 76.9 77.1 77.5 77.0 077.4 12-month%change ,Aar 10.1 10.5 10.3 11.4 9.8 09.5 Manufacturing Ll „elf 216.2 215.5 215.5 216.7 216.7 0217.9 12-month%change 0.7 0.0 -0.1 0.2 0.0 00.3 Trade,Transportation,and Utilities Ll „elf 312.2 315.1 315.7 315.2 316.7 0315.2 12-month%change 0.3 1.2 1.2 1.0 1.6 01.0 Information Ll Alf 25.6 25.4 25.2 25.3 25.3 024.9 12-month%change -1.5 -1.9 -1.6 -1.9 -2.3 0-3.9 Flnandal Adlvlties Ll „elf 104.4 104.3 104.7 104.6 104.2 0105.0 12-month%change 0.5 0.1 0.4 0.6 0.2 01.0 Professional&Business Services Ll „elf 136.3 136.3 136.4 137.1 138.5 0137.9 12-month%change 2.4 2.0 1.6 1.6 2.8 02.1 Education&Health Services Ll „A7 223.5 224.3 224.1 223.7 222.4 0223.4 12-month%change 0.3 1.7 1.4 1.1 0.6 2)0.8 Leisure&Nmpitaliri Lal „elf 137.6 137.7 139.3 139.7 140.5 8:1140.6 12-month%change ,At7 0.6 0.5 1.5 2.2 2.0 02.0 Other Services L1 „elf 59.2 59.0 59.0 59.3 59.0 059.3 12-month%change ,Aar 1.4 0.9 0.9 1.0 0.3 00.9 GovernmentLl I Alf 1 256.11 258.3 258.1 257.7 259.6 0257.9 12-month%change ,Atf 0.5 1.5 1.4 1.2 2.1 01.3 Footnotes (1) Number of persons, in thousands, seasonally adjusted. (2) In percent, seasonally adjusted. (3) Number of jobs, In thousands, seasonally adjusted. (P) Preliminary Data extracted on: Aprjl 03,2015 Source:U.S.Bureau of labor Statistics Gesn 2010 Census • - 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Time: 15 minute radius Latitude: 42.50399 ongitude: -90.66648 2000-2010 2000 2010 Annual Rate Population 68,064 68,361 0.04% Households 26,484 27,753 0.47% Housing Units 27,908 29,421 0.53% Population by Race Number Percent Total 68,361 100.0% Population Reporting One Race 67,269 98.4% White 63,391 92.7% Black 2,349 3.4% American Indian 164 0.2% Asian 698 1.0% Pacific Islander 273 0.4% Some Other Race 394 0.6% Population Reporting Two or More Races 1,092 1.6% Total Hispanic Population 1,475 2.2% Population by Sex Male 33,394 48.8% Female 34,967 51.2% Population by Age Total 68,361 100.0% Age 0-4 4,172 6.1% Age 5 -9 4,142 6.1% Age 10- 14 4,155 6.1% Age 15- 19 5,087 7.4% Age 20- 24 5,656 8.3% Age 25- 29 4,579 6.7% Age 30- 34 3,823 5.6% Age 35- 39 3,473 5.1% Age 40-44 3,928 5.7% Age 45-49 4,827 7.1% Age 50- 54 4,949 7.2% Age 55- 59 4,664 6.8% Age 60- 64 3,775 5.5% Age 65- 69 2,897 4.2% Age 70- 74 2,478 3.6% Age 75- 79 2,118 3.1% Age 80-84 1,748 2.6% Age 85+ 1,888 2.8% Age 18+ 53,330 78.0% Age 65+ 11,129 16.3% Median Age by Sex and Race/Hispanic Origin Total Population 38.7 Male 36.5 Female 40.8 White Alone 40.9 Black Alone 21.6 American Indian Alone 30.8 Aslan Alone 29.0 Pacific Islander Alone 21.7 Some Other Race Alone 24.6 Two or More Races 12.7 Hispanic Population 22.1 Data Note:Hispanic population can be of any race. Census 2010 medians are computed from reported data distributions. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esrl converted Census 2000 data Into 2010 geography. Apol 01,2016 02015 Esri Page 1 of 4 Gesn -nsus Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Time: 15 minute radius Latitude: 42.50399 ongitude: -90.66641 Households by Type Total 27,753 100.0% Households with 1 Person 8,802 31.7% Households with 2+ People 18,951 68.3% Family Households 17,080 61.5% Husband-wife Families 12,998 46.8% With Own Children 4,807 17.3% Other Family(No Spouse Present) 4,082 14.7% With Own Children 2,515 9.1% Nonfamily Households 1,871 6.7% All Households with Children 7,827 28.2% Multigenerational Households 524 1.9% Unmarried Partner Households 1,903 6.9% Male-female 1,760 6.3% Same-sex 143 0.5% Average Household Size 2.32 Family Households by Size Total 17,080 100.0% 2 People 8,308 48.6% 3 People 3,658 21.4% 4 People 2,944 17.2% 5 People 1,430 8.4% 6 People 505 3.0% 7+ People 235 1.4% Average Family Size 2.92 Nonfamily Households by Size Total 10,672 100.0% 1 Person 8,802 82.5% 2 People 1,506 14.1% 3 People 207 1.9% 4 People 99 0.9% 5 People 43 0.4% 6 People 13 0.1% 7+ People 2 0.0% Average Nonfamily Size 1.23 Population by Relationship and Household Type Total 68,361 100.0% In Households 64,407 94.2% In Family Households 51,296 75.0% Householder 17,048 24.9% Spouse 12,975 19.0% Child 18,781 27.5% Other relative 1,131 1.7% Nonrelative 1,362 2.0% In Nonfamily Households 13,110 19.2% In Group Quarters 3,954 5.8% Institutionalized Population 1,130 1.7% Noninstitutionalized Population 2,824 4.1% Data Nota:Households with children include any households with people under age 18,related or not. Nuhlganamtlonal households are families with 3 or more parent-child relationships. Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the householder.Multigenerational and unmarried partner households are reported only to the tract level. Esrl estimated block group data,which Is used to estimate polygons or non-standard geography. Average family size excludes nonrelatives. Source:U.S.Census Bureau,Census 2010 Summary File 1. Apol 01,2016 02015 Esri Page 2 of 4 Gesn 2010 CensusProfile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Time: 15 minute radius Latitude: 42.50399 Longitude: -90.6664° Family Households by Age of Householder Total 17,080 100.0% Householder Age 15-44 6,347 37.2% Householder Age 45-54 3,882 22.7% Householder Age 55-64 3,239 19.0% Householder Age 65-74 2,043 12.0% Householder Age 75+ 1,569 9.2% Nonfamily Households by Age of Householder Total 10,673 100.0% Householder Age 15-44 3,631 34.0% Householder Age 45-54 1,755 16.4% Householder Age 55-64 1,817 17.0% Householder Age 65-74 1,285 12.0% Householder Age 75+ 2,185 20.5% Households by Race of Householder Total 27,753 100.0% Householder is White Alone 26,394 95.1% Householder is Black Alone 725 2.6% Householder is American Indian Alone 57 0.2% Householder is Asian Alone 212 0.8% Householder is Pacific Islander Alone 49 0.2% Householder is Some Other Race Alone 108 0.4% Householder is Two or More Races 208 0.7% Households with Hispanic Householder 365 1.3% Husband-wife Families by Race of Householder Total 12,997 100.0% Householder is White Alone 12,626 97.1% Householder is Black Alone 104 0.8% Householder is American Indian Alone 20 0.2% Householder is Asian Alone 116 0.9% Householder is Pacific Islander Alone 27 0.2% Householder is Some Other Race Alone 41 0.3% Householder is Two or More Races 63 0.5% Husband-wife Families with Hispanic Householder 159 1.2% Other Families(No Spouse) by Race of Householder Total 4,084 100.0% Householder is White Alone 3,609 88.4% Householder is Black Alone 336 8.2% Householder is American Indian Alone 15 0.4% Householder is Asian Alone 18 0.4% Householder is Pacific Islander Alone 14 0.3% Householder is Some Other Race Alone 25 0.6% Householder is Two or More Races 67 1.6% Other Families with Hispanic Householder 72 1.8% Nonfamily Households by Race of Householder Total 10,672 100.0% Householder is White Alone 10,159 95.2% Householder is Black Alone 285 2.7% Householder is American Indian Alone 22 0.2% Householder is Asian Alone 78 0.7% Householder is Pacific Islander Alone 8 0.1% Householder is Some Other Race Alone 42 0.4% Householder is Two or More Races 78 0.7% Nonfamily Households with Hispanic Householder 133 1.2% Source:U.S.Census Bureau,Census 2010 Summary File 1. Apol 01,2016 02015 Earl Page 3 of 4 Gesn -nsus Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Time: 15 minute radius Latitude: 42.50399 Longitude: -90.6664° Total Housing Units by Occupancy Total 29,430 100.0% Occupied Housing Units 27,753 94.3% Vacant Housing Units For Rent 694 2.4% Rented,not Occupied 32 0.1% For Sale Only 228 0.8% Sold, not Occupied 66 0.2% For Seasonal/Recreational/Occasional Use 154 0.5% For Migrant Workers 2 0.0% Other Vacant 501 1.7% Total Vacancy Rate 5.7% Households by Tenure and Mortgage Status Total 27,753 100.0% Owner Occupied 19,095 68.8% Owned with a Mortgage/Loan 12,316 44.4% Owned Free and Clear 6,779 24.4% Average Household Size 2.47 Renter Occupied 8,658 31.2% Average Household Size 1.98 Owner-occupied Housing Units by Race of Householder Total 19,097 100.0% Householder is White Alone 18,818 98.5% Householder is Black Alone 64 0.3% Householder is American Indian Alone 25 0.1% Householder is Asian Alone 68 0.4% Householder is Pacific Islander Alone 7 0.0% Householder is Some Other Race Alone 34 0.2% Householder is Two or More Races 81 0.4% Owner-occupied Housing Units with Hispanic Householder 145 0.8% Renter-occupied Housing Units by Race of Householder Total 8,658 100.0% Householder is White Alone 7,576 87.5% Householder is Black Alone 662 7.6% Householder is American Indian Alone 33 0.4% Householder is Asian Alone 144 1.7% Householder is Pacific Islander Alone 42 0.5% Householder is Some Other Race Alone 74 0.9% Householder is Two or More Races 127 1.5% Renter-occupied Housing Units with Hispanic Householder 220 2.5% Average Household Size by Race/Hispanic Origin of Householder Householder is White Alone 2.30 Householder is Black Alone 2.74 Householder is American Indian Alone 2.82 Householder is Asian Alone 2.51 Householder is Pacific Islander Alone 5.53 Householder is Some Other Race Alone 3.10 Householder is Two or More Races 2.58 Householder is Hispanic 2.87 Source:U.S.Census Bureau,Census 2010 Summary File 1. Apol 01,2016 02015 Esri Page 4 of 4 esn' Business Summary 1101 Central Ave,Dubuque,Iowa,52001 Prepared by Earl Drive Tlmes: 15 minute racill Latitude:42.50399 Longitude: -90.66648 pats for all businesses In area 15 minutes Total Businesses: 3,489 Total Employees: 51,660 Total Residential Population: 69,731 Employee/Reside8ial Population Ratio: 0.74:1 Busimmese Employees by SIC Codes Number Percent Number Percent Agriculture&Mining 65 1.9% 243 0.5% Construction 266 7.6% 2,260 4.4% Manufacturing 114 3.3% 3,409 6.6% Transportation 112 3.2% 1,529 3.0% Communication 42 1.2% 479 0.9% Utility 8 0.2% 1,714 3.3% Wholesale Trade 171 4.9% 2,435 4.7% Recall Trade Summary 771 22.1% 11,450 22.2% Home Improvement 50 1.4% 1,249 2.4% General Merchandise Sores 19 0.5% 1,162 2.2% Pool Stores 62 1.8% 734 1.4% Auto Dealers,Gas Stations,Auto Aftermarket 102 2.9% 1,334 2.6% Apparel&Accessory Stores 44 1.3% 447 0.9% Fumiture&Home Fumishings 77 2.2% 666 1.3% Eating&Drinking Places 216 6.2% 3,510 6.8% Miscellaneous Recall 200 5.7% 2,347 4.5% Rnance,Insurance,Real Estate Summary 425 12.2% 5,107 9.9% Banka,Savings&Lending Institutions 155 4.4% 1,135 2.2% Securities Brokers 47 1.3% 199 0.4% Insurance Carriers&Agents 96 2.8% 2,473 4.8% Real Estate,Holding,Other Investment Offices 127 3.6% 1,299 2.5% Services Summary 1,293 37.1% 20,410 39.5% Hatels&Lodging 33 0.9% 682 1.3% Automotive Services 101 2.9% 603 1.2% Motion Pictures&Amusements 100 2.9% 1,608 3.1% Health SeMces 208 6.0% 5,111 9.9% Legal SeMces 37 1.1% 234 0.5% Education Institutions&Libraries 71 2.0% 3,132 6.1% Other Services 744 21.3% 9,039 17.5% Government 167 4.8% 2,551 4.9% Unclassified Establishments 57 1.6% 79 0.2% Totals 3,489 100.0% 51,660 100.0% Smsms: Copyright 20151nbgmup,Inc.NI rights reserved.Esrl Total Reskdemlel Population forecasts for 2015. April 01,2016 Page 1 of 2 esrr Business Summary 1101 Central Ave,Dubuque,Iowa,52001 Prepared by Earl Drive Tlmes: 15 minute radii Latitude:42.50399 -ongitude: -90.66648 Businesses Employees by NAICS Coder Number Percent Number Percent Agriculture,Forestry,Fishing&Hunting 18 0.5% 56 0.1% MMIng 3 0.1% 36 0.1% Utilities 5 0.1% 1,685 3.3% Construction 288 8.3% 2,349 4.5% Manufacturing 113 3.2% 2,272 4.4% Wholesale Trade 160 4.6% 2,377 4.6% Retail Trade 525 15.0% 7,747 15.0% Motor Vehicle&Parts Dealers 76 2.2% 1,104 2.1% Fumiture&Home Furnishings Stores 39 1.1% 281 0.5% Electronics 8.Appliance Stores 26 0.7% 308 0.6% Bldg Materiel&Garen Equipment&Supplies Dealers 49 1.4% 1,248 2.4% Food&Beverage Stores 45 1.3% 660 1.3% Health&Personal Care Stores 60 1.7% 1,246 2.4% Gasoline Stations 27 0.8% 230 0.4% Clothing&Clothing Accessories Stores 55 1.6% 501 1.0% Sport Goods,Hobby,Book,&Music Stores 32 0.9% 312 0.6% General Merchandise Stores 19 0.5% 1,162 2.2% Miscellaneous Stare Retailers 88 2.5% 574 1.1% Nonstore Ratallers 10 0.3% 123 0.2% transportation&Warehousing 88 2.5% 1,113 2.2% Information 87 2.5% 2,402 4.6% Finance&Insurance 306 8.8% 3,872 7.5% Central Bank/CredR Imemiedladon&Reiated Acdvides 162 4.6% 1,154 2.2% Securities,Commodity Contra=&Other Financial 47 1.3% 199 0.4% Insurance Carriers&Reiated Activities;Funds,Trusts& 97 2.8% 2,518 4.9% Real Estate,Rental&Leasing 157 4.5% 1,024 2.0% Professional,Scientific&Tech Services 202 5.8% 1,701 3.3% Legal Services 39 1.1% 246 0.5% Management of Companies&Enterprbes 4 0.1% 362 0.7% Administrative&Support&Waste Management&Remedlation 123 3.5% 2,017 3.9% Educational Services 80 2.3% 3,170 6.1% Health Care&Social Assistance 329 9.4% 7,528 14.6% Arts,Entertainment&Recreation 87 2.5% 1,859 3.6% Accommodation&Food!Services 254 7.3% 4,248 8.2% Accommodation 33 0.9% 682 1.3% Food Services&Drinking Places 221 6.3% 3,566 6.9% Other Services(except Public Administration) 427 12.2% 3,150 6.1% /Wtamotive"pair&Maintenance 82 2.4% 496 1.0% Public Administration 168 4.8% 2,565 5.0% Unclassified Establishments 63 1.8% 128 0.2% Total 3,489 100.0% 51,660 100.0% Basra: Copyright 20151nfcgroup,Inc.Al rights reserved.Bari Total ResiderVal Population forecasts for 2015. April 01,2016 Page 2 of 2 • Gesn community Prome 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esrl Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes Population Summary 2000 Total Population 68,064 2010 Total Population 68,361 2015 Total Population 69,731 2015 Group Quarters 3,873 2020 Total Population 71,376 2015-2020 Annual Rate 0.47% Household Summary 2000 Households 26,484 2000 Average Household Size 2.41 2010 Households 27,753 2010 Average Household Size 2.32 2015 Households 28,789 2015 Average Household Size 2.29 2020 Households 29,665 2020 Average Household Size 2.28 2015-2020 Annual Rate 0.60% 2010 Families 17,080 2010 Average Family Size 2.92 2015 Families 17,453 2015 Average Family Size 2.89 2020 Families 17,820 2020 Average Family Size 2.89 2015-2020 Annual Rate 0.42% Housing Unit Summary 2000 Housing Units 27,908 Owner Occupied Housing Units 66.7% Renter Occupied Housing Units 28.2% Vacant Housing Units 5.1% 2010 Housing Units 29,421 Owner Occupied Housing Units 64.9% Renter Occupied Housing Units 29.4% Vacant Housing Units 5.7% 2015 Housing Units 30,756 Owner Occupied Housing Units 62.4% Renter Occupied Housing Units 31.2% Vacant Housing Units 6.4% 2020 Housing Units 31,861 Owner Occupied Housing Units 61.9% Renter Occupied Housing Units 31.2% Vacant Housing Units 6.9% Median Household Income 2015 $47,519 2020 $54,618 Median Home Value 2015 $154,517 2020 $183,009 Per Capita Income 2015 $26,602 2020 $30,704 Median Age 2010 38.7 2015 39.3 2020 39.9 Data Note:Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth,marriage,or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esrl forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esrl Page 1 of 6 • Gesn community Prome 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2015 Households by Income Household Income Base 28,789 <$15,000 11.0% $15,000-$24,999 11.7% $25,000-$34,999 13.4% $35,000-$49,999 15.8% $50,000-$74,999 20.1% $75,000-$99,999 13.9% $100,000 -$149,999 7.9% $150,000 -$199,999 3.0% $200,000+ 3.2% Average Household Income $63,383 2020 Households by Income Household Income Base 29,665 <$15,000 10.7% $15,000-$24,999 9.1% $25,000-$34,999 11.1% $35,000-$49,999 14.3% $50,000-$74,999 19.0% $75,000-$99,999 17.2% $100,000 -$149,999 11.2% $150,000 -$199,999 3.8% $200,000+ 3.7% Average Household Income $72,859 2015 Owner Occupied Housing Units by Value Total 19,201 <$50,000 2.9% $50,000-$99,999 14.8% $100,000 -$149,999 30.0% $150,000 -$199,999 25.5% $200,000 -$249,999 11.7% $250,000 -$299,999 6.0% $300,000 -$399,999 4.8% $400,000 -$499,999 1.6% $500,000 -$749,999 1.5% $750,000 -$999,999 0.2% $1,000,000 + 0.9% Average Home Value $183,755 2020 Owner Occupied Housing Units by Value Total 19,716 <$50,000 1.9% $50,000-$99,999 10.9% $100,000 -$149,999 18.2% $150,000 -$199,999 28.7% $200,000 -$249,999 17.0% $250,000 -$299,999 9.0% $300,000 -$399,999 6.9% $400,000 -$499,999 2.9% $500,000 -$749,999 2.6% $750,000 -$999,999 0.6% $1,000,000 + 1.2% Average Home Value $219,034 Data Note:Income represents the preceding year,expressed In current dollars. Household Income Indudes wage and salary earnings,Interest dividends,net rents, pensions,SSI and welfare payments,child support,and alimony. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esrl forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esri Page 2 of 6 • Gesn community Prome 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2010 Population by Age Total 68,361 0-4 6.1% 5-9 6.1% 10 - 14 6.1% 15 - 24 15.7% 25 - 34 12.3% 35 -44 10.8% 45 - 54 14.3% 55 -64 12.3% 65 - 74 7.9% 75 -84 5.7% 85 + 2.8% 18+ 78.0% 2015 Population by Age Total 69,731 0-4 5.8% 5-9 5.7% 10 - 14 5.9% 15 - 24 14.9% 25 - 34 13.3% 35 -44 10.4% 45 - 54 12.7% 55 -64 13.5% 65 - 74 9.1% 75 -84 5.7% 85 + 3.1% 18+ 79.1% 2020 Population by Age Total 71,376 0-4 5.7% 5-9 5.5% 10 - 14 5.8% 15 - 24 14.2% 25 - 34 13.0% 35 -44 11.2% 45 - 54 10.9% 55 -64 13.4% 65 - 74 10.8% 75 -84 6.2% 85 + 3.2% 18+ 79.5% 2010 Population by Sex Males 33,394 Females 34,967 2015 Population by Sex Males 34,097 Females 35,634 2020 Population by Sex Males 34,934 Females 36,442 Source:U.S.Census Bureau,Census 2010 Summary File 1. Esd forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esd Page 3 of 6 • Gesn community . • - 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2010 Population by Race/Ethnicity Total 68,361 White Alone 92.7% Black Alone 3.4% American Indian Alone 0.2% Asian Alone 1.0% Pacific Islander Alone 0.4% Some Other Race Alone 0.6% Two or More Races 1.6% Hispanic Origin 2.2% Diversity Index 17.5 2015 Population by Race/Ethnicity Total 69,730 White Alone 91.5% Black Alone 3.7% American Indian Alone 0.3% Asian Alone 1.5% Pacific Islander Alone 0.4% Some Other Race Alone 0.7% Two or More Races 1.9% Hispanic Origin 2.6% Diversity Index 20.4 2020 Population by Race/Ethnicity Total 71,376 White Alone 90.1% Black Alone 3.9% American Indian Alone 0.4% Asian Alone 2.1% Pacific Islander Alone 0.5% Some Other Race Alone 0.8% Two or More Races 2.2% Hispanic Origin 3.2% Diversity Index 23.6 2010 Population by Relationship and Household Type Total 68,361 In Households 94.2% In Family Households 75.0% Householder 24.9% Spouse 19.0% Child 27.5% Other relative 1.7% Nonrelative 2.0% In Nonfamily Households 19.2% In Group Quarters 5.8% Institutionalized Population 1.7% Noninstitutionalized Population 4.1% Data Note:Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different race/ ethnic groups. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.Esri converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esri Page 4 of 6 • Gesn community Prome 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2015 Population 25+ by Educational Attainment Total 47,233 Less than 9th Grade 2.6% 9th - 12th Grade, No Diploma 5.7% High School Graduate 31.2% GED/Alternative Credential 5.0% Some College, No Degree 19.2% Associate Degree 8.1% Bachelor's Degree 18.1% Graduate/Professional Degree 10.1% 2015 Population 15+ by Marital Status Total 57,593 Never Married 35.0% Married 47.6% Widowed 6.7% Divorced 10.6% 2015 Civilian Population 16+ in Labor Force Civilian Employed 96.0% Civilian Unemployed 4.0% 2015 Employed Population 16+ by Industry Total 37,061 Agriculture/Mining 0.9% Construction 4.1% Manufacturing 14.7% Wholesale Trade 2.3% Retail Trade 13.3% Transportation/Utilities 3.2% Information 2.2% Finance/Insurance/Real Estate 5.7% Services 50.8% Public Administration 2.8% 2015 Employed Population 16+ by Occupation Total 37,059 White Collar 57.1% Management/Business/Financial 10.9% Professional 20.0% Sales 12.1% Administrative Support 14.1% Services 21.2% Blue Collar 21.7% Farming/Forestry/Fishing 0.4% Construction/Extraction 4.7% Installation/Maintenance/Repair 3.0% Production 7.1% Transportation/Material Moving 6.5% Source:U.S.Census Bureau,Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esn Page 5 of 6 • Gesn community Prome 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2010 Households by Type Total 27,753 Households with 1 Person 31.7% Households with 2+ People 68.3% Family Households 61.5% Husband-wife Families 46.8% With Related Children 18.0% Other Family(No Spouse Present) 14.7% Other Family with Male Householder 4.3% With Related Children 2.7% Other Family with Female Householder 10.4% With Related Children 7.1% Nonfamily Households 6.7% All Households with Children 28.2% Multigenerational Households 1.9% Unmarried Partner Households 6.9% Male-female 6.3% Same-sex 0.5% 2010 Households by Size Total 27,752 1 Person Household 31.7% 2 Person Household 35.4% 3 Person Household 13.9% 4 Person Household 11.0% 5 Person Household 5.3% 6 Person Household 1.9% 7 + Person Household 0.9% 2010 Households by Tenure and Mortgage Status Total 27,753 Owner Occupied 68.8% Owned with a Mortgage/Loan 44.4% Owned Free and Clear 24.4% Renter Occupied 31.2% Data Note:Households with children include any households with people under age 18,related or not. Multigenerational households are families with 3 or more parent- child relationships.Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the householder.Multigenerational and unmarrled partner households are reported only to the tract level.Esrl estimated block group data,which Is used to estimate polygons or non-standard geography. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esrl forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esrl Page 6 of 6 • Gesrl* Demographic and Inc. - Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Time: 15 minute radius Latitude: 42.50399 Longitude: -90.66648 Summary Census 2010 2015 2020 Population 68,361 69,731 71,376 Households 27,753 28,789 29,665 Families 17,080 17,453 17,820 Average Household Size 2.32 2.29 2.28 Owner Occupied Housing Units 19,095 19,201 19,716 Renter Occupied Housing Units 8,658 9,588 9,950 Median Age 38.7 39.3 39.9 Trends: 2015-2020 Annual Rate Area State National Population 0.47% 0.21% 0.75% Households 0.60% 0.26% 0.77% Families 0.42% 0.14% 0.69% Owner HHs 0.53% 0.18% 0.70% Median Household Income 2.82% 2.80% 2.66% 2015 2020 Households by Income Number Percent Number Percent <$15,000 3,180 11.0% 3,173 10.7% $15,000-$24,999 3,379 11.7% 2,688 9.1% $25,000-$34,999 3,864 13.4% 3,298 11.1% $35,000-$49,999 4,544 15.8% 4,235 14.3% $50,000-$74,999 5,777 20.1% 5,630 19.0% $75,000-$99,999 4,005 13.9% 5,109 17.2% $100,000 -$149,999 2,268 7.9% 3,308 11.2% $150,000 -$199,999 858 3.0% 1,121 3.8% $200,000+ 915 3.2% 1,102 3.7% Median Household Income $47,519 $54,618 Average Household Income $63,383 $72,859 Per Capita Income $26,602 $30,704 Census 2010 2015 2020 Population by Age Number Percent Number Percent Number Percent 0-4 4,172 6.1% 4,020 5.8% 4,065 5.7% 5-9 4,142 6.1% 3,985 5.7% 3,914 5.5% 10 - 14 4,155 6.1% 4,134 5.9% 4,149 5.8% 15 - 19 5,087 7.4% 4,881 7.0% 4,985 7.0% 20 - 24 5,656 8.3% 5,478 7.9% 5,179 7.3% 25 - 34 8,402 12.3% 9,268 13.3% 9,277 13.0% 35 -44 7,401 10.8% 7,218 10.4% 7,995 11.2% 45 - 54 9,776 14.3% 8,830 12.7% 7,811 10.9% 55 -64 8,439 12.3% 9,443 13.5% 9,564 13.4% 65 - 74 5,375 7.9% 6,338 9.1% 7,705 10.8% 75 -84 3,866 5.7% 3,995 5.7% 4,432 6.2% 85+ 1,888 2.8% 2,141 3.1% 2,300 3.2% Census 2010 2015 2020 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 63,391 92.7% 63,804 91.5% 64,340 90.1% Black Alone 2,349 3.4% 2,555 3.7% 2,771 3.9% American Indian Alone 164 0.2% 212 0.3% 264 0.4% Asian Alone 698 1.0% 1,045 1.5% 1,477 2.1% Pacific Islander Alone 273 0.4% 302 0.4% 331 0.5% Some Other Race Alone 394 0.6% 499 0.7% 600 0.8% Two or More Races 1,092 1.6% 1,313 1.9% 1,593 2.2% Hispanic Origin (Any Race) 1,475 2.2% 1,844 2.6% 2,291 3.2% Data Note:Income is expressed in current dollars. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esri forecasts for 2015 and 2020. April 01, 2016 ®2015 Earl Page 1 of 2 • aesin Demographic and Inc. - Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Time: 15 minute radius Latitude: 42.50399 Longitude: -90.66648 Trends 2015-2020 2.5 c 2 Q) 2- CL 1.5 Y _ 1 d7 Area c 0.5 0 State < � ti m USA 0 Population Households Families Owner HHs Median HH Income Population by Age 12- 10- 8- 6- 4- 0 210a640 2015 2 2020 0- 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ 2015 Household Income 2015 Population by Race 90- $25K-$34K 13.4% $15K-$24K 11.7% 80- 70- $35K-$49K 070$35K-$49K <$15K 15.8% 11.0% 60- 05 so - 2 $200K+ a 40- 3.2% $150K-$199K 30- 3.0% $100K-$149K 20- $50K-$74K 7.9% 20.1% 10- $75K-$99K 0$75K-$99K 0- white Black Am.Ind. Aslan Pacific Other Two+ 2015 Percent Hispanic Origin: 2.6% Source:U.S.Census Bureau,Census 2010 Summary File 1. Esri forecasts for 2015 and 2020. April 01, 2016 ®2015 Earl Page 2 of 2 • GesinrExecutive1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes Population 2000 Population 68,064 2010 Population 68,361 2015 Population 69,731 2020 Population 71,376 2000-2010 Annual Rate 0.04% 2010-2015 Annual Rate 0.38% 2015-2020 Annual Rate 0.47% 2015 Male Population 48.9% 2015 Female Population 51.1% 2015 Median Age 39.3 In the identified area,the current year population is 69,731. In 2010,the Census count in the area was 68,361. The rate of change since 2010 was 0.38%annually.The five-year projection for the population in the area is 71,376 representing a change of 0.47%annually from 2015 to 2020. Currently,the population is 48.9% male and 51.1%female. Median Age The median age in this area is 39.3,compared to U.S. median age of 37.9. Race and Ethnicity 2015 White Alone 91.5% 2015 Black Alone 3.7% 2015 American Indian/Alaska Native Alone 0.3% 2015 Asian Alone 1.5% 2015 Pacific Islander Alone 0.4% 2015 Other Race 0.7% 2015 Two or More Races 1.9% 2015 Hispanic Origin (Any Race) 2.6% Persons of Hispanic origin represent 2.6%of the population in the identified area compared to 17.6%of the U.S. population. Persons of Hispanic Origin may be of any race.The Diversity Index,which measures the probability that two people from the same area will be from different race/ethnic groups, is 20.4 in the identified area,compared to 63.0 for the U.S. as a whole. Households 2000 Households 26,484 2010 Households 27,753 2015 Total Households 28,789 2020 Total Households 29,665 2000-2010 Annual Rate 0.47% 2010-2015 Annual Rate 0.70% 2015-2020 Annual Rate 0.60% 2015 Average Household Size 2.29 The household count in this area has changed from 27,753 in 2010 to 28,789 in the current year,a change of 0.70%annually. The five-year projection of households is 29,665,a change of 0.60%annually from the current year total. Average household size is currently 2.29, compared to 2.32 in the year 2010.The number of families in the current year is 17,453 in the specified area. Data Note:Income is expressed in current dollars Source:U.S.Census Bureau,Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.Earl converted Census 2000 data into 2010 geography. April 01, 2016 ®2015 Esn Page 1 of 2 • Gesin Executive1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes Median Household Income 2015 Median Household Income $47,519 2020 Median Household Income $54,618 2015-2020 Annual Rate 2.82% Average Household Income 2015 Average Household Income $63,383 2020 Average Household Income $72,859 2015-2020 Annual Rate 2.83% Per Capita Income 2015 Per Capita Income $26,602 2020 Per Capita Income $30,704 2015-2020 Annual Rate 2.91% Households by Income Current median household income is$47,519 in the area,compared to$53,217 for all U.S. households. Median household income is projected to be$54,618 in five years,compared to$60,683 for all U.S. households Current average household income is$63,383 in this area,compared to$74,699 for all U.S. households. Average household income is projected to be$72,859 in five years,compared to$84,910 for all U.S. households Current per capita income is$26,602 in the area,compared to the U.S. per capita income of$28,597. The per capita income is projected to be$30,704 in five years, compared to$32,501 for all U.S. households Housing 2000 Total Housing Units 27,908 2000 Owner Occupied Housing Units 18,601 2000 Renter Occupied Housing Units 7,883 2000 Vacant Housing Units 1,424 2010 Total Housing Units 29,421 2010 Owner Occupied Housing Units 19,095 2010 Renter Occupied Housing Units 8,658 2010 Vacant Housing Units 1,668 2015 Total Housing Units 30,756 2015 Owner Occupied Housing Units 19,201 2015 Renter Occupied Housing Units 9,588 2015 Vacant Housing Units 1,967 2020 Total Housing Units 31,861 2020 Owner Occupied Housing Units 19,716 2020 Renter Occupied Housing Units 9,950 2020 Vacant Housing Units 2,196 Currently,62.4%of the 30,756 housing units in the area are owner occupied; 31.2%, renter occupied; and 6.4%are vacant. Currently, in the U.S., 55.7%of the housing units in the area are owner occupied; 32.8%are renter occupied; and 11.6%are vacant. In 2010,there were 29,421 housing units in the area -64.9%owner occupied, 29.4% renter occupied,and 5.7%vacant. The annual rate of change in housing units since 2010 is 1.99%. Median home value in the area is$154,517,compared to a median home value of$200,006 for the U.S. In five years, median value is projected to change by 3.44%annually to$183,009. Data Note:Income is expressed in current dollars Somme:U.S.Census Bureau,Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.Esri converted Census 2000 data into 2010 geography. April 01, 2016 ®2015 Esn Page 2 of 2 • Gesin Housing . . - 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Time: 15 minute radius Latitude: 42.50399 Longitude: -90.66648 Population Households 2010 Total Population 68,361 2015 Median Household Income $47,519 2015 Total Population 69,731 2020 Median Household Income $54,618 2020 Total Population 71,376 2015-2020 Annual Rate 2.82% 2015-2020 Annual Rate 0.47% Census 2010 2015 2020 Housing Units by Occupancy Status and Tenure Number Percent Number Percent Number Percent Total Housing Units 29,421 100.0% 30,756 100.0% 31,861 100.0% Occupied 27,753 94.3% 28,789 93.6% 29,666 93.1% Owner 19,095 64.9% 19,201 62.4% 19,716 61.9% Renter 8,658 29.4% 9,588 31.2% 9,950 31.2% Vacant 1,668 5.7% 1,967 6.4% 2,196 6.9% 2015 2020 Owner Occupied Housing Units by Value Number Percent Number Percent Total 19,200 100.0% 19,716 100.0% <$50,000 558 2.9% 377 1.9% $50,000-$99,999 2,848 14.8% 2,153 10.9% $100,000-$149,999 5,752 30.0% 3,594 18.2% $150,000-$199,999 4,893 25.5% 5,656 28.7% $200,000-$249,999 2,253 11.7% 3,352 17.0% $250,000-$299,999 1,159 6.0% 1,777 9.0% $300,000-$399,999 930 4.8% 1,351 6.9% $400,000-$499,999 305 1.6% 579 2.9% $500,000-$749,999 281 1.5% 508 2.6% $750,000-$999,999 40 0.2% 124 0.6% $1,000,000+ 181 0.9% 245 1.2% Median Value $154,517 $183,009 Average Value $183,755 $219,034 Data Note:Persons of Hispanic Origin may be of any race. Source:U.S.Census Bureau,Census 2010 Summary File 1. April 01, 2016 ®2015 Esri Page 1 of 2 • Gesin Housing . . - 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Time: 15 minute radius Latitude: 42.50399 Longitude: -90.66648 Census 2010 Owner Occupied Housing Unita by Mortgage Status Number Percent Total 19,095 100.0% Owned with a Mortgage/Loan 12,316 64.5% Owned Free and Clear 6,779 35.5% Census 2010 Vacant Housing Units by Status Number Percent Total 1,668 100.0% For Rent 694 41.6% Rented- Not Occupied 32 1.9% For Sale Only 228 13.7% Sold - Not Occupied 66 4.0% Seasonal/Recreational/Occasional Use 154 9.2% For Migrant Workers 2 0.1% Other Vacant 501 30.0% Census 2010 Occupied Housing Units by Age of Householder and Home Ownership Owner Occupied Units Occupied Units Number %of Occupied Total 27,754 19,096 68.8% 15-24 1,660 332 20.0% 25-34 4,263 2,217 52.0% 35-44 4,056 2,803 69.1% 45-54 5,636 4,266 75.7% 55-64 5,056 4,078 80.7% 65-74 3,328 2,741 82.4% 75-84 2,583 1,987 76.9% 85+ 1,172 672 57.3% Census 2010 Occupied Housing Units by Race/Ethnicity of Householder and Home Ownership Owner Occupied Units Occupied Units Number %of Occupied Total 27,755 19,097 68.8% White Alone 26,394 18,818 71.3% Black/African American 726 64 8.8% American Indian/Alaska 58 25 43.1% Asian Alone 212 68 32.1% Pacific Islander Alone 49 7 14.3% Other Race Alone 108 34 31.5% Two or More Races 208 81 38.9% Hispanic Origin 365 145 39.7% Census 2010 Occupied Housing Units by Size and Home Ownership Owner Occupied Units Occupied Units Number %of Occupied Total 27,754 19,095 68.8% 1-Person 8,802 4,431 50.3% 2-Person 9,814 7,693 78.4% 3-Person 3,865 2,852 73.8% 4-Person 3,043 2,421 79.6% 5-Person 1,473 1,159 78.7% 6-Person 519 386 74.4% 7+ Person 238 153 64.3% Data Note:Persons of Hispanic Origin may be of any race. Source:U.S.Census Bureau,Census 2010 Summary File 1. April 01, 2016 ®2015 Earl Page 2 of 2 Gesn ' Market Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esrl Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes Population Summary 2000 Total Population 68,064 2010 Total Population 68,361 2015 Total Population 69,731 2015 Group Quarters 3,873 2020 Total Population 71,376 2015-2020 Annual Rate 0.47% Household Summary 2000 Households 26,484 2000 Average Household Size 2.41 2010 Households 27,753 2010 Average Household Size 2.32 2015 Households 28,789 2015 Average Household Size 2.29 2020 Households 29,665 2020 Average Household Size 2.28 2015-2020 Annual Rate 0.60% 2010 Families 17,080 2010 Average Family Size 2.92 2015 Families 17,453 2015 Average Family Size 2.89 2020 Families 17,820 2020 Average Family Size 2.89 2015-2020 Annual Rate 0.42% Housing Unit Summary 2000 Housing Units 27,908 Owner Occupied Housing Units 66.7% Renter Occupied Housing Units 28.2% Vacant Housing Units 5.1% 2010 Housing Units 29,421 Owner Occupied Housing Units 64.9% Renter Occupied Housing Units 29.4% Vacant Housing Units 5.7% 2015 Housing Units 30,756 Owner Occupied Housing Units 62.4% Renter Occupied Housing Units 31.2% Vacant Housing Units 6.4% 2020 Housing Units 31,861 Owner Occupied Housing Units 61.9% Renter Occupied Housing Units 31.2% Vacant Housing Units 6.9% Median Household Income 2015 $47,519 2020 $54,618 Median Home Value 2015 $154,517 2020 $183,009 Per Capita Income 2015 $26,602 2020 $30,704 Median Age 2010 38.7 2015 39.3 2020 39.9 Data Note:Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth,marriage,or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esrl forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esrl Page 1 of 7 Gesn ' Market Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2015 Households by Income Household Income Base 28,789 <$15,000 11.0% $15,000-$24,999 11.7% $25,000-$34,999 13.4% $35,000-$49,999 15.8% $50,000-$74,999 20.1% $75,000-$99,999 13.9% $100,000 -$149,999 7.9% $150,000 -$199,999 3.0% $200,000+ 3.2% Average Household Income $63,383 2020 Households by Income Household Income Base 29,665 <$15,000 10.7% $15,000-$24,999 9.1% $25,000-$34,999 11.1% $35,000-$49,999 14.3% $50,000-$74,999 19.0% $75,000-$99,999 17.2% $100,000 -$149,999 11.2% $150,000 -$199,999 3.8% $200,000+ 3.7% Average Household Income $72,859 2015 Owner Occupied Housing Units by Value Total 19,201 <$50,000 2.9% $50,000-$99,999 14.8% $100,000 -$149,999 30.0% $150,000 -$199,999 25.5% $200,000 -$249,999 11.7% $250,000 -$299,999 6.0% $300,000 -$399,999 4.8% $400,000 -$499,999 1.6% $500,000 -$749,999 1.5% $750,000 -$999,999 0.2% $1,000,000 + 0.9% Average Home Value $183,755 2020 Owner Occupied Housing Units by Value Total 19,716 <$50,000 1.9% $50,000-$99,999 10.9% $100,000 -$149,999 18.2% $150,000 -$199,999 28.7% $200,000 -$249,999 17.0% $250,000 -$299,999 9.0% $300,000 -$399,999 6.9% $400,000 -$499,999 2.9% $500,000 -$749,999 2.6% $750,000 -$999,999 0.6% $1,000,000 + 1.2% Average Home Value $219,034 Data Note:Income represents the Preceding year,expressed In current dollars. Household Income Indudes wage and salary earnings,Interest dividends,net rents, pensions,SSI and welfare payments,child support,and alimony. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esrl forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esri Page 2 of 7 Gesn ' Market Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2010 Population by Age Total 68,361 0-4 6.1% 5-9 6.1% 10 - 14 6.1% 15 - 24 15.7% 25 - 34 12.3% 35 -44 10.8% 45 - 54 14.3% 55 -64 12.3% 65 - 74 7.9% 75 -84 5.7% 85 + 2.8% 18+ 78.0% 2015 Population by Age Total 69,731 0-4 5.8% 5-9 5.7% 10 - 14 5.9% 15 - 24 14.9% 25 - 34 13.3% 35 -44 10.4% 45 - 54 12.7% 55 -64 13.5% 65 - 74 9.1% 75 -84 5.7% 85 + 3.1% 18+ 79.1% 2020 Population by Age Total 71,376 0-4 5.7% 5-9 5.5% 10 - 14 5.8% 15 - 24 14.2% 25 - 34 13.0% 35 -44 11.2% 45 - 54 10.9% 55 -64 13.4% 65 - 74 10.8% 75 -84 6.2% 85 + 3.2% 18+ 79.5% 2010 Population by Sex Males 33,394 Females 34,967 2015 Population by Sex Males 34,097 Females 35,634 2020 Population by Sex Males 34,934 Females 36,442 Source:U.S.Census Bureau,Census 2010 Summary File 1. Esd forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esd Page 3 of 7 Gesn ' Market Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2010 Population by Race/Ethnicity Total 68,361 White Alone 92.7% Black Alone 3.4% American Indian Alone 0.2% Asian Alone 1.0% Pacific Islander Alone 0.4% Some Other Race Alone 0.6% Two or More Races 1.6% Hispanic Origin 2.2% Diversity Index 17.5 2015 Population by Race/Ethnicity Total 69,730 White Alone 91.5% Black Alone 3.7% American Indian Alone 0.3% Asian Alone 1.5% Pacific Islander Alone 0.4% Some Other Race Alone 0.7% Two or More Races 1.9% Hispanic Origin 2.6% Diversity Index 20.4 2020 Population by Race/Ethnicity Total 71,376 White Alone 90.1% Black Alone 3.9% American Indian Alone 0.4% Asian Alone 2.1% Pacific Islander Alone 0.5% Some Other Race Alone 0.8% Two or More Races 2.2% Hispanic Origin 3.2% Diversity Index 23.6 2010 Population by Relationship and Household Type Total 68,361 In Households 94.2% In Family Households 75.0% Householder 24.9% Spouse 19.0% Child 27.5% Other relative 1.7% Nonrelative 2.0% In Nonfamily Households 19.2% In Group Quarters 5.8% Institutionalized Population 1.7% Noninstitutionalized Population 4.1% Data Note:Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different race/ ethnic groups. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.Esri converted Census 2000 data Into 2010 geography. April OS, 2016 ®2015 Esri Page 4 of 7 Gesn ' Market Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2015 Population 25+ by Educational Attainment Total 47,233 Less than 9th Grade 2.6% 9th - 12th Grade, No Diploma 5.7% High School Graduate 31.2% GED/Alternative Credential 5.0% Some College, No Degree 19.2% Associate Degree 8.1% Bachelor's Degree 18.1% Graduate/Professional Degree 10.1% 2015 Population 15+ by Marital Status Total 57,593 Never Married 35.0% Married 47.6% Widowed 6.7% Divorced 10.6% 2015 Civilian Population 16+ in Labor Force Civilian Employed 96.0% Civilian Unemployed 4.0% 2015 Employed Population 16+ by Industry Total 37,061 Agriculture/Mining 0.9% Construction 4.1% Manufacturing 14.7% Wholesale Trade 2.3% Retail Trade 13.3% Transportation/Utilities 3.2% Information 2.2% Finance/Insurance/Real Estate 5.7% Services 50.8% Public Administration 2.8% 2015 Employed Population 16+ by Occupation Total 37,059 White Collar 57.1% Management/Business/Financial 10.9% Professional 20.0% Sales 12.1% Administrative Support 14.1% Services 21.2% Blue Collar 21.7% Farming/Forestry/Fishing 0.4% Construction/Extraction 4.7% Installation/Maintenance/Repair 3.0% Production 7.1% Transportation/Material Moving 6.5% Source:U.S.Census Bureau,Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esn Page 5 of 7 Gesn ' Market Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes 2010 Households by Type Total 27,753 Households with 1 Person 31.7% Households with 2+ People 68.3% Family Households 61.5% Husband-wife Families 46.8% With Related Children 18.0% Other Family(No Spouse Present) 14.7% Other Family with Male Householder 4.3% With Related Children 2.7% Other Family with Female Householder 10.4% With Related Children 7.1% Nonfamily Households 6.7% All Households with Children 28.2% Multigenerational Households 1.9% Unmarried Partner Households 6.9% Male-female 6.3% Same-sex 0.5% 2010 Households by Size Total 27,752 1 Person Household 31.7% 2 Person Household 35.4% 3 Person Household 13.9% 4 Person Household 11.0% 5 Person Household 5.3% 6 Person Household 1.9% 7 + Person Household 0.9% 2010 Households by Tenure and Mortgage Status Total 27,753 Owner Occupied 68.8% Owned with a Mortgage/Loan 44.4% Owned Free and Clear 24.4% Renter Occupied 31.2% Data Note:Households with children include any households with people under age 18,related or not. Multigenerational households are families with 3 or more parent- child relationships.Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the householder.Multigenerational and unmarrled partner households are reported only to the tract level.Esrl estimated block group data,which Is used to estimate polygons or non-standard geography. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esrl forecasts for 2015 and 2020.Esrl converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esrl Page 6 of 7 Gesn ' Market Profile 1101 Central Ave, Dubuque, Iowa, 52001 Prepared by Esri Drive Times: 15 minute radii Latitude: 42.50399 Longitude: -90.66648 15 minutes Top 3 Tapestry Segments 1. Rustbelt Traditions(5D) 2. Traditional Living(1213) 3. Midlife Constants(SE) 2015 Consumer Spending Apparel &Services: Total$ $55,725,915 Average Spent $1,935.67 Spending Potential Index 84 Computers&Accessories: Total $ $6,293,359 Average Spent $218.60 Spending Potential Index 84 Education: Total $ $36,534,080 Average Spent $1,269.03 Spending Potential Index 83 Entertainment/Recreation: Total $ $81,170,611 Average Spent $2,819.50 Spending Potential Index 85 Food at Home: Total $ $129,704,164 Average Spent $4,505.34 Spending Potential Index 86 Food Away from Home: Total$ $79,646,436 Average Spent $2,766.56 Spending Potential Index 84 Health Care: Total$ $121,106,400 Average Spent $4,206.69 Spending Potential Index 89 HH Furnishings&Equipment: Total$ $45,022,199 Average Spent $1,563.87 Spending Potential Index 85 Investments: Total$ $54,313,050 Average Spent $1,886.59 Spending Potential Index 68 Retail Goods: Total $ $630,335,667 Average Spent $21,895.02 Spending Potential Index 86 Shelter: Total $ $396,161,679 Average Spent $13,760.87 Spending Potential Index 84 TV/Video/Audio: Total$ $32,816,491 Average Spent $1,139.90 Spending Potential Index 87 Travel: Total $ $46,524,974 Average Spent $1,616.07 Spending Potential Index 83 Vehicle Maintenance&Repairs: Total $ $27,471,590 Average Spent $954.24 Spending Potential Index 85 Data Note:Consumer spending shows the amount spent on a variety of goods and services by households that reside in the area. Expenditures are shown by broad budget categories that are not mutually exclusive. Consumer spending does not equal business revenue.Total and Average Amount Spent Per Household represent annual figures.The Spending Potential Index represents the amount spent in the area relative to a national average of 100. Source:Consumer Spending data are derived from the 2011 and 2012 Consumer Expenditure Surveys,Bureau of Labor Statistics.Esrl. Source:U.S.Census Bureau,Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.Esri converted Census 2000 data Into 2010 geography. April 01, 2016 ®2015 Esri Page 7 of 7 yy I , I ■■■ I - E.1 P.UI �' .e • rte 1 1 1 , 1 MAE ®1 w I - Roshek Buildin E 'IOTN S7 - g IBM - 1,300 i V HAST+-4 ,ff— ae" R. I • 1P � SH' "' � �6�'fH ST � � c > • 7 ' W r • - •7.ar� �" �� CO i �•' � k Ilk '2 I fill � W 4 ' . - — O 3cS, y� v .✓� VI IIF ,GAS � S \ � .�\ • f �'�{r�� 1 American Trust 8 Dubuque Data Services 15 National Mississippi River 20 Prudential Retirement 2 Arcade Business Complex 9 Historic Federal Building Museum&Aquarium/Dubuque 21 RSM McGladrey/Hartig Drug Corp. (numerous entities) (numerous entities) County Historical Society 22 Spahn& Rose 3 Cottingham& Butler 10 Holiday Inn 16 NICC/IWD 23 Steele Capital Management 4 Diamond Jo/Peninsula Gaming 11 Hotel Julien Dubuque 17 Platinum Hospitality/Grand Har- 24 US Bank 5 Dubuque Bank&Trust 12 Jeld-Wen bor Resort/Grand River Center 25 Tricor Insurance 6 Dubuque City Hall 13 McGraw-Hill 18 Platinum Services 26 WCI/Telegraph Herald 7 Dubuque County Courthouse 14 Morrison Bros. 19 Prescott School 27 WS Live Roshek Building C • IBM- 1,300 i " — W I � TFM E04 4A4 l 4 . , .,i � ' � A t v Fin66 67 Yw is AN'" 11 _ D U B UQ U E i MAIN STREET A Bedazzled F Nimble Wits K Pepper Sprout O Lien's Oriental American 12 Unforgivable Records 32 First Congregational UCC 52 Hotel Julien Dubuque/Caro- 73 St.Vincent de Paul Retail A Blue Cat Used Books F O'Toole Business Supply K The Bank Bar&Grille Market 13 Maggie Kelly's 33 Masonic Temple line's Restaurant/Potosa Spa Store A Fenelon Place Elevator Company K The Mission Thrift Shop P Dubuque Farmers' Market 14 Gotta Have It 34 St. Mark's Community 53 Lot One 74 Dubuque Bank&Trust A Outside the Lines Art F Yarn Soup L Chocolaterie Stam & Q Sur ithCycle 14 Twisted Root Yoga Center 54 Dubuque Art Center 75 Dubuque Multicultural Gallery G Freddie's Popcorn Corked Q Tribal Seven 15 Ptohl Window Coverings 35 Mural Inspirations 54 Fido Fit Center A Shamrock Imports G L May Eatery L Crust& R R Carpet Creations 16 A&W Restaurant 36 Pregler Chiropractic 55 Old Main Market& 76 Colt's Drum Corp./Winter A Shamrock Jewelers G River Lights Bookstore L H &J Fashion Emporium R Heritage Lighting & Fire- 16 Oky Doky Food &Gas 37 Marios Restaurant Consignment Farmers' Market A Sweet Memories H Cheryl-Ann's Bridal& L McCoy Jewelers place 17 Callahan Photography 38 New White's Florist 56 Herbst Upholstery 77 Prescott Elementary School A Yamings Tuxedo Shop L The Hub R Locksmith Express 17 Pinnacle Cellular&Satellite 39 The Source 57 Canfield Inn/Rainbow 78 Toys Done Right B Beijing Grill H D&B Engraved Gifts M Crickets 1 Boys&Gids Club of Greater 17 The Jewelry Box 40 Global Goods—a Fair Trade Lounge 79 Dubuque Fire Department B Body&Soul H Fred's Barber Shop M Dolan Deluxe Barber Shop Dubuque 18 Artistic Cleaners Store 58 McDonald's 80 Cue Master's Billiards B Manna Java World Cafe H i.enhance M Fig Leaf Intimates 2 Carnegie-Stout Public 19 Hartig Drug Store 41 American Trust&Savings 59 Anytime Fitness 81 Common Cents Resale B Marella's H Kann Do/Main Street M Fringe Salon Library 20 Paul's Big GameTap Bank 60 Grand Opera House 82 Hendrick's Feed&Seed C Carla's Beauty& Barber Station M Gordon's Toggery 3 Telegraph Herald 21 Miracle Car Wash 42 Town Clocklnn 61 Du buque Acad emy of Ballet 83 The Grand Tap Shop H Off Minor M Hammertime 4 Premier Linen &Dry 22 Kunnert Sports 43 Adobes Mexican 62 Premier Bank 84 Old Jail Dubuque History C Dance 1234 H The Joy of Photography M Knippel's Religious Goods Cleaning 23 Shot Towerinn Restaurant 63 Chuck&Jos Museum C Fischer Bowling Lanes H Yen Ching's M Mason Dbon Saloon 5 Post Off ice&City Services 24 Five Flags Center—Arena 44 Star Uniform 64 Sherwin Williams/Mautz 85 Dubuque County C Reliable Technology I Affordable Tax Service M Mystique Tattoo 6 The Redstone Inn &Theater 45 Pickerman's Paint Store Courthouse C Supreme Subs I Falbo Brothers Pizzeria N Canvas Products 7 The Shoppe 25 Dubuque365/Julien's 46 Northeast Iowa Community 65 The Salvation Army 86 Tri-State Blueprint& D Floor Coverings I Pickle Barrel Subs N Cathy's Treasures 8 Accessorize Me Journal College 66 Scott Printing Framing D Zen Studio J Amirage Salon Day Spa N Dubuque Photography 9 Hometiques 26 The Lounge 47 United Way/Hillcrest Family 67 PetMed 87 Breezer's Pub E JitterzCafe J Graham's Style Store N The Lift 10 All Things Sweet 27 Dave's Connoco Services 68 Uncommon Kitchens 88 Ken's Auto Body E Salsa's Restaurant K Capri Retail Store N Vinny Vannuchi's 11 Black Cat Vintage 28 US Bank 48 Holidaylnn 69 Potpourri Gift Shop 89 BecwarTile& Marble E The Cotton Cabin Quilt K Flowers on Main O Aragon Tap 11 Bluff Street Brew Haus 29 Dubuque Museum of Art 49 Capri College Student Salon 70 Breezy's Cafe 90 Dottie's Cafe Shop K Iowa Welcome Center O Asian Gourmet Restaurant 11 The Calico Bean 30 Knights of Columbus Hall 50 Casseroles To Go 71 Iowa Street Market 91 Instant Car Credit F Dubuque Lanes K Jim my John's 0 Farmers' Market Food Store 12 Monk's Kaffee House 31 Bridge Christian Church 51 Nearly New Boutique 72 Dubuque City Hall 92 Sunshine Family Restaurant U.S. Census Bureau INIHRa FactFinder OROS SELECTED SOCIAL CHARACTER IST I CS IN THE UNITED STATES 2008-2012 American Community Survey 5-Year Estimates Supporting documentation on code lists,subject definitions,data accuracy and statistical esing an be found on the American Community Survey website in the Data and Documentation section. Sample size and data quality measures(including coverage rates,allocation rates,and response ata) an be found on the American Community Survey website In the Methodology section. Although the American Community Survey(ACS) produces population,demographic and housing unit estimates,it is the Census Bureau's Population Estimates Program that produces and disseminates the official estimates of the population for the nation,states, counties,cities and towns and estimates of housing units for states and counties. Subject Iowa Dubuque city, Iowa Estimate Margin of Error Percent Percent Margin of Estimate Error HOUSEHOLDS BY TYPE Total households 1223569 +/3919 1223569 Mc 23965 Family ban as M1oltls To milia) 795898 +/3645 65.1% N-02 14947 Path own children on der 18 years 351272 +62695 287% N-02 6154 Married couple family 535714 +/3994 520% N-02 10524 Path own children under 18 years 245,498 +62646 203% N-02 3759 Male he useho lder,no wile prase or family 47278 +61360 39% N-01 874 Path own children on der 15 years 29102 +61041 23% N-01 551 Female householder,no husband present family 112,806 +61991 92% N-02 2649 Path own children on der 18 ye ars 74672 +61504 6.1% N-01 1953 Nonfamily households 421,611 +/3350 349% N-02 9621 for as hold er living ate Up 359339 +/3610 29.6% N-03 5083 65 yea us a no by er 134,846 +62345 110% N-02 3051 H coach aids with on a or more pe one a due r 18 years 376,074 +/2655 307% N-02 6556 H coach aids with on a or more pe one 65 ye ars and eve r 310170 +61963 25.4% N-01 6246 Average household size 241 4-601 ("). Mc 224 Average family size 296 4-601 ("). Mc 255 RELATIONSHIP Population In households 2648226 2 648 220 Mc 53711 Householder 1223569 +/3919 415% 401 23665 Spouse 535983 +/3255 216% 401 10512 Child 534,837 +/3521 293% 401 14353 Other relatives 92635 +/3249 32% 401 1455 N onreativ as 161 553 +/3544 55% 401 3390 Unmarried padner 75291 +61753 26% 4-01 1505 MARITAL STATUS Males 15 years and over 1 200 224 +6731 1 1 200 224 Mc 22225 N by er married 375129 +62915 1 313% 4-02 8326 N ow ma nia d,a xcept seta ate d 564534 +/4165 1 55.4% 4-03 10954 Separated 12299 +6715 10% 401 175 1 of 8 11242014 Subject Iowa Dubuque city, Iowa Estimate Margin of Error Percent Percent Margin of Estimate Error Widowed 30,955 +/-935 2.6% +/-0.1 608 Divorced 117,307 +/-2,234 9.8% +/-0.2 2,229 Females 15 years and over 1,246,729 +/-724 1,246,729 N 25,347 Never married 308,068 +/-2,487 24.7% +/-0.2 8,401 Now married,except separated 653,964 +/-3,223 52.5% +/-0.3 10,920 Separated 17,240 +/-863 1.4% +/-0.1 309 Widowed 126,515 +/-1,556 10.1% +/-0.1 2,858 Divorced 140,942 +/-2,185 11.3% +/-0.2 2,859 FERTILITY Number of women 15 to 50 years old who had a birth 41,795 +/-1,282 41,795 N 940 in the past 12 months Unmarried women (widowed,divorced,and never 13,072 +/-707 31.3% +/-1.5 275 married Per 1,000 unmarried women 37 +/-2 (X) N 32 Per 1,000 women 15 to 50 years old 59 +/-2 (X) N 66 Per 1,000 women 15 to 19 years old 20 +/-3 (X) N 11 Per 1,000 women 20 to 34 years old 113 +/-4 (X) N 125 Per 1,000 women 35 to 50 years old 21 +/-2 (X) N 24 GRANDPARENTS Number of grandparents living with own grandchildren 36,084 +/-1,499 36,084 N 591 under 18 years Responsible for grandchildren 16,104 +/-1,004 44.6% +/-1.9 268 Years responsible for grandchildren Less than 1 year 4,192 +/-539 11.6% +/-1.4 60 1 or 2 years 4,388 +/-531 12.2% +/-1.4 126 3 or 4 years 2,786 +/-410 7.7% +/-1.1 43 5 or more years 4,738 +/-491 13.1% +/-1.2 39 Number of grandparents responsible for own 16,104 +/-1,004 16,104 N 268 grandchildren under 18 years Who are female 9,814 +/-636 60.9% +/-1.5 158 Who are married 12,252 +/-932 76.1% +/-2.5 189 SCHOOL ENROLLMENT Population 3 years and over enrolled in school 808,672 +/-3,361 808,672 N 14,996 Nursery school, preschool 56,453 +/-1,348 7.0% +/-0.2 994 Kindergarten 39,990 +/-1,127 4.9% +/-0.1 763 Elementary school(grades 1-8) 316,733 +/-1,545 39.2% +/-0.2 5,119 High school(grades 9-12) 166,391 +/-1,507 20.6% +/-0.2 2,578 College or graduate school 229,105 +/-2,870 28.3% +/-0.3 5,542 EDUCATIONAL ATTAINMENT Population 25 years and over 2,013,629 +/-959 2,013,629 N 38,386 Less than 9th grade 74,662 +/-1,735 3.7% +/-0.1 1,514 9th to 12th grade,no diploma 112,971 +/-2,048 5.6% +/-0.1 2,266 High school graduate(includes equivalency) 666,739 +/-3,494 33.1% +/-0.2 13,359 Some college,no degree 441,428 +/-3,108 21.9% +/-0.2 7,801 Associate's degree 207,885 +/-2,580 10.3% +/-0.1 2,861 Bachelor's degree 353,091 +/-3,033 17.5% +/-0.1 6,832 Graduate or professional degree 156,853 +/-2,350 7.8% +/-0.1 3,753 Percent high school graduate or higher N N 90.7% +/-0.1 N Percent bachelor's degree or higher N N 25.3% +/-0.2 N VETERAN STATUS Civilian population 18 years and over 2,319,815 +/-667 2,319,815 N 45,457 Civilian veterans 233,698 +/-2,104 10.1% +/-0.1 4,432 2 of 8 1125/2014 Subject Iowa Dubuque city, Iowa Estimate Margin of Error Percent Percent Margin of Estimate Error DISABILITY STATUS OF THE CIVILIAN NONINSTITUTIONALIZED POPULATION Total Civilian Noninstitutionalized Population 3,001,335 +/-373 3,001,335 N 56,679 With a disability 340,842 +/-3,363 11.4% +/-0.1 7,526 Under 18 years 722,915 +/-597 722,915 N 12,202 With a disability 28,317 +/-1,137 3.9% +/-0.2 692 18 to 64 years 1,847,248 +/-783 1,847,248 N 35,489 With a disability 169,556 +/-2,822 9.2% +/-0.2 3,550 65 years and over 431,172 +/-574 431,172 N 8,988 With a disability 142,969 +/-1,715 33.2% +/-0.4 3,284 RESIDENCE 1 YEAR AGO Population 1 year and over 3,009,038 +/-1,038 3,009,038 N 56,960 Same house 2,547,345 +/-7,479 84.7% +/-0.2 47,308 Different house in the U.S. 449,828 +/-7,350 14.9% +/-0.2 9,406 Same county 268,310 +/-5,776 8.9% +/-0.2 5,864 Different county 181,518 +/-3,611 6.0% +/-0.1 3,542 Same state 106,877 +/-2,815 3.6% +/-0.1 1,224 Different state 74,641 +/-2,777 2.5% +/-0.1 2,318 Abroad 11,865 +/-1,062 0.4% +/-0.1 246 PLACE OF BIRTH Total population 3,047,646 *'* 3,047,646 N 57,727 Native 2,915,316 +/-2,453 95.7% +/-0.1 56,282 Born in United States 2,900,644 +/-2,483 95.2% +/-0.1 56,044 State of residence 2,199,596 +/-5,182 72.2% +/-0.2 42,005 Different state 701,048 +/-5,078 23.0% +/-0.2 14,039 Born in Puerto Rico, U.S. Island areas,or born abroad 14,672 +/-870 0.5% +/-0.1 238 o American parent(s) Foreign born 132,330 +/-2,454 4.3% +/-0.1 1,445 U.S.CITIZENSHIP STATUS Foreign-born population 132,330 +/-2,454 132,330 N 1,445 Naturalized U.S.citizen 49,633 +/-1,494 37.5% +/-1.1 534 Not a U.S. citizen 82,697 +/-2,442 62.5% +/-1.1 911 YEAR OF ENTRY Population born outside the United States 147,002 +/-2,484 147,002 N 1,683 Native 14,672 +/-870 14,672 N 238 Entered 2010 or later 518 +/-223 3.5% +/-1.5 44 Entered before 2010 14,154 +/-824 96.5% +/-1.5 194 Foreign born 132,330 +/-2,454 132,330 N 1,445 Entered 2010 or later 6,776 +/-778 5.1% +/-0.6 110 Entered before 2010 125,554 +/-2,420 94.9% +/-0.6 1,335 ORLD REGION OF BIRTH OF FOREIGN BORN Foreign-born population, excluding population born at 132,330 +/-2,454 132,330 N 1,445 sea Europe 19,952 +/-1,192 15.1% +/-0.8 332 Asia 43,731 +/-942 33.0% +/-0.7 785 Africa 9,298 +/-1,009 7.0% +/-0.7 65 Oceania 831 +/-295 0.6% +/-0.2 24 Latin America 54,910 +/-1,460 41.5% +/-0.9 166 Northern America 3,608 +/-455 2.7% +/-0.3 73 3 of 8 1125/2014 Subject Iowa Dubuque city, Iowa Estimate Margin of Error Percent Percent Margin of Estimate Error LANGUAGE SPOKEN AT HOME Population 5 years and over 2,848,771 +/-558 2,848,771 N 54,246 English only 2,645,884 +/-3,551 92.9% +/-0.1 52,215 Language other than English 202,887 +/-3,406 7.1% +/-0.1 2,031 Speak English less than"very well" 84,289 +/-1,866 3.0% +/-0.1 712 Spanish 111,984 +/-1,890 3.9% +/-0.1 875 Speak English less than"very well" 49,819 +/-1,234 1.7% +/-0.1 180 Other Indo-European languages 45,319 +/-1,976 1.6% +/-0.1 576 Speak English less than"very well" 12,873 +/-1,016 0.5% +/-0.1 179 Asian and Pacific Islander languages 34,901 +/-1,169 1.2% +/-0.1 541 Speak English less than"very well" 17,819 +/-927 0.6% +/-0.1 333 Other languages 10,683 +/-1,219 0.4% +/-0.1 39 Speak English less than"very well" 3,778 +/-658 0.1% +/-0.1 20 ANCESTRY Total population 3,047,646 *'* 3,047,646 N 57,727 American 182,253 +/-3,676 6.0% +/-0.1 3,360 Arab 6,455 +/-999 0.2% +/-0.1 111 Czech 60,701 +/-1,700 2.0% +/-0.1 640 Danish 62,277 +/-1,722 2.0% +/-0.1 199 Dutch 143,338 +/-2,770 4.7% +/-0.1 988 English 282,636 +/-3,448 9.3% +/-0.1 4,251 French(except Basque) 75,963 +/-2,289 2.5% +/-0.1 1,707 French Canadian 9,976 +/-1,024 0.3% +/-0.1 454 German 1,166,918 +/-6,682 38.3% +/-0.2 29,272 Greek 6,939 +/-716 0.2% +/-0.1 416 Hungarian 3,719 +/-467 0.1% +/-0.1 132 Irish 454,401 +/-5,110 14.9% +/-0.2 13,285 Italian 65,180 +/-2,555 2.1% +/-0.1 1,252 Lithuanian 2,733 +/-407 0.1% +/-0.1 92 Norwegian 169,530 +/-3,192 5.6% +/-0.1 1,539 Polish 40,005 +/-1,767 1.3% +/-0.1 1,042 Portuguese 1,946 +/-381 0.1% +/-0.1 27 Russian 11,465 +/-1,094 0.4% +/-0.1 73 Scotch-Irish 28,939 +/-1,353 0.9% +/-0.1 396 Scottish 48,024 +/-1,549 1.6% +/-0.1 623 Slovak 1,626 +/-270 0.1% +/-0.1 10 Subsaharan African 16,338 +/-1,353 0.5% +/-0.1 441 Swedish 96,017 +/-2,305 3.2% +/-0.1 1,086 Swiss 15,195 +/-927 0.5% +/-0.1 347 Ukrainian 2,639 +/-432 0.1% +/-0.1 89 Welsh 21,627 +/-1,055 0.7% +/-0.1 447 West Indian (excluding Hispanic origin groups) 1,724 +/-367 0.1% +/-0.1 0 4 of 8 1125/2014 Subject Dubuque city, Iowa Margin of Error Percent Percent Margin of Error HOUSEHOLDS BY TYPE Total households +/-379 23,968 (X) Family households(families) +/-390 58.6% +/-1.4 With own children under 18 years +/-310 25.7% +/-1.3 Married-couple family +/-402 43.9% +/-1.5 With own children under 18 years +/-302 15.6% +/-1.3 Male householder,no wife present,family +/-187 3.6% +/-0.8 With own children under 18 years +/-150 2.3% +/-0.6 Female householder,no husband present,family +/-250 11.1% +/-1.0 With own children under 18 years +/-224 7.7% +/-0.9 Nonfamily households +/-393 41.4% +/-1.4 Householder living alone +/-471 33.7% +/-1.8 65 years and over +/-252 12.7% +/-1.0 Households with one or more people under 18 years +/-293 27.4% +/-1.3 Households with one or more people 65 years and over +/-246 26.1% +/-0.9 Average household size +/-0.03 (X) (X) Average family size +/_0.05 (X) (X) RELATIONSHIP Population in households +/-475 53,711 (X) Householder +/-379 44.6% +/-0.6 Spouse +/-415 19.6% +/-0.7 Child +/-520 26.7% +/-0.9 Other relatives +/-318 2.8% +/-0.6 Nonrelatives +/-453 6.3% +/-0.8 Unmarried partner +/-234 2.8% +/-0.4 MARITAL STATUS Males 15 years and over +/-285 22,225 (X) Never married +/-482 37.5% +/-2.0 Now married,except separated +/_424 49.0% +/_2.0 Separated +/-87 0.8% +/-0.4 Widowed +/-126 2.7% +/-0.6 Divorced +/-249 10.0% +/-1.1 Females 15 years and over +/-286 25,347 (X) Never married +/-497 33.1% +/-1.8 Now married,except separated +/-437 43.1% +/-1.8 Separated +/-110 1.2% +/-0.4 Widowed +/-300 11.3% +/-1.2 Divorced +/-299 11.3% +/-1.2 FERTILITY Number of women 15 to 50 years old who had a birth +/-179 940 (X) in the past 12 months Unmarried women (widowed,divorced,and never +/-105 29.3% +/-10.4 married Per 1,000 unmarried women +/-13 (X) (X) Per 1,000 women 15 to 50 years old +/_12 N (X) Per 1,000 women 15 to 19 years old +/_12 N (X) Per 1,000 women 20 to 34 years old +/-27 N (X) Per 1,000 women 35 to 50 years old +/-11 (X) (X) GRANDPARENTS Number of grandparents living with own grandchildren +/-196 591 (X) under 18 years Responsible for grandchildren +/-127 45.3% +/-15.2 5 of 8 1125/2014 Subject Dubuque city, Iowa Margin of Error Percent Percent Margin of Error Years responsible for grandchildren Less than 1 year +/-79 10.2% +/-12.5 1 or 2 years +/-83 21.3% +/-12.6 3 or 4 years +/-40 7.3% +/-6.6 5 or more years +/-31 6.6% +/-5.1 Number of grandparents responsible for own +/-127 268 (X) grandchildren under 18 years Who are female +/-75 59.0% +/-10.6 Who are married +/-127 70.5% +/-19.1 SCHOOL ENROLLMENT Population 3 years and over enrolled in school +/-459 14,996 (X) Nursery school, preschool +/-167 6.6% +/-1.1 Kindergarten +/-159 5.1% +/-1.0 Elementary school(grades 1-8) +/-285 34.1% +/-1.8 High school(grades 9-12) +/-248 17.2% +/-1.5 College or graduate school +/-334 37.0% +/-1.8 EDUCATIONAL ATTAINMENT Population 25 years and over +/-350 38,386 (X) Less than 9th grade +/-323 3.9% +/-0.8 9th to 12th grade,no diploma +/_288 5.9% +/_0.7 High school graduate(includes equivalency) +/-574 34.8% +/-1.5 Some college,no degree +/-483 20.3% +/-1.2 Associate's degree +/-342 7.5% +/-0.9 Bachelor's degree +/-453 17.8% +/-1.2 Graduate or professional degree +/-413 9.8% +/-1.1 Percent high school graduate or higher (X) 90.2% +/-1.1 Percent bachelor's degree or higher (X) 27.6% +/-1.5 VETERAN STATUS Civilian population 18 years and over +/-284 45,457 (X) Civilian veterans +/-345 9.7% +/-0.7 DISABILITY STATUS OF THE CIVILIAN NONINSTITUTIONALIZED POPULATION Total Civilian Noninstitutionalized Population +/-206 56,679 (X) With a disability +/-499 13.3% +/-0.9 Under 18 years +/-285 12,202 (X) With a disability +/-153 5.7% +/-1.2 18 to 64 years +/-318 35,489 (X) With a disability +/-398 10.0% +/-1.1 65 years and over +/-260 8,988 (X) With a disability +/-231 36.5% +/-2.5 RESIDENCE 1 YEAR AGO Population 1 year and over +/-180 56,960 (X) Same house +/-959 83.1% +/-1.7 Different house in the U.S. +/-955 16.5% +/-1.7 Same county +/-839 10.3% +/-1.5 Different county +/-527 6.2% +/-0.9 Same state +/-325 2.1% +/-0.6 Different state +/-402 4.1% +/-0.7 Abroad +/-106 0.4% +/-0.2 6 of 8 1125/2014 Subject Dubuque city, Iowa Margin of Error Percent Percent Margin of Error PLACE OF BIRTH Total population +/-29 57,727 (X) Native +/-275 97.5% +/-0.5 Born in United States +/-268 97.1% +/-0.5 State of residence +/-801 72.8% +/-1.4 Different state +/_798 24.3% +/_1.4 Born in Puerto Rico, U.S. Island areas,or born abroad +/-84 0.4% +/-0.1 o American parent(s) Foreign born +/-273 2.5% +/-0.5 U.S.CITIZENSHIP STATUS Foreign-born population +/-273 1,445 (X) Naturalized U.S.citizen +/-168 37.0% +/-11.3 Not a U.S. citizen +/-266 63.0% +/-11.3 YEAR OF ENTRY Population born outside the United States +/-266 1,683 (X) Native +/-84 238 (X) Entered 2010 or later +/-52 18.5% +/-19.3 Entered before 2010 +/-69 81.5% +/-19.3 Foreign born +/-273 1,445 (X) Entered 2010 or later +/-81 7.6% +/-5.6 Entered before 2010 +/-274 92.4% +/-5.6 WORLD REGION OF BIRTH OF FOREIGN BORN Foreign-born population, excluding population born at +/-273 1,445 (X) sea Europe +/-121 23.0% +/-7.5 Asia +/-197 54.3% +/-8.4 Africa +/-55 4.5% +/-3.7 Oceania +/-27 1.7% +/-1.9 Latin America +/-74 11.5% +/-4.8 Northern America +/-61 5.1% +/-4.1 LANGUAGE SPOKEN AT HOME Population 5 years and over +/-221 54,246 (X) English only +/-351 96.3% +/-0.6 Language other than English +/-304 3.7% +/-0.6 Speak English less than"very well" +/-177 1.3% +/-0.3 Spanish +/-178 1.6% +/-0.3 Speak English less than"very well" +/-94 0.3% +/-0.2 Other Indo-European languages +/-184 1.1% +/-0.3 Speak English less than"very well" +/-97 0.3% +/-0.2 Asian and Pacific Islander languages +/-230 1.0% +/-0.4 Speak English less than"very well" +/-118 0.6% +/-0.2 Other languages +/-30 0.1% +/-0.1 Speak English less than"very well" +/-20 0.0% +/-0.1 ANCESTRY Total population +/-29 57,727 (X) American +/_424 5.8% +/_0.7 Arab +/-81 0.2% +/-0.1 Czech +/-174 1.1% +/-0.3 Danish +/-83 0.3% +/-0.1 Dutch +/-224 1.7% +/-0.4 English +/-532 7.4% +/-0.9 French(except Basque) +/-332 3.0% +/-0.6 French Canadian +/-302 0.8% +/-0.5 7 of 8 1125/2014 Subject Dubuque city, Iowa Margin of Error Percent Percent Margin of Error German +/-917 50.7% +/-1.6 Greek +/-195 0.7% +/-0.3 Hungarian +/_88 0.2% +/_0.2 Irish +/-808 23.0% +/-1.4 Italian +/-276 2.2% +/-0.5 Lithuanian +/-53 0.2% +/-0.1 Norwegian +/-302 2.7% +/-0.5 Polish +/-249 1.8% +/-0.4 Portuguese +/-25 0.0% +/-0.1 Russian +/-44 0.1% +/-0.1 Scotch-Irish +/-182 0.7% +/-0.3 Scottish +/-163 1.1% +/-0.3 Slovak +/-16 0.0% +/-0.1 Subsaharan African +/-276 0.8% +/-0.5 Swedish +/-258 1.9% +/-0.4 Swiss +/-115 0.6% +/-0.2 Ukrainian +/-57 0.2% +/-0.1 Welsh +/-205 0.8% +/-0.4 West Indian (excluding Hispanic origin groups) +/-23 0.0% +/-0.1 Data are based on a sample and are subject to sampling variability.The degree of uncertainty for an estimate arising from sampling variability is represented through the use of a margin of error.The value shown here is the 90 percent margin of error. The margin of error can be interpreted roughly as providing a 90 percent probability that the interval defined by the estimate minus the margin of error and the estimate plus the margin of error(the lower and upper confidence bounds)contains the true value. In addition to sampling variability,the ACS estimates are subject to nonsampling error(for a discussion of nonsampling variability, see Accuracy of the Data). The effect of nonsampling error is not represented in these tables. Fertility data are not available for certain geographic areas due to problems with data collection. See Errata Note#92 for details. The Census Bureau introduced a new set of disability questions in the 2008 ACS questionnaire.Accordingly,comparisons of disability data from 2008 or later with data from prior years are not recommended. For more information on these questions and their evaluation in the 2006 ACS Content Test, see the Evaluation Report Covering Disability. While the 2008-2012 American Community Survey(ACS)data generally reflect the December 2009 Office of Management and Budget(OMB) definitions of metropolitan and micropolitan statistical areas; in certain instances the names,codes,and boundaries of the principal cities shown in ACS tables may differ from the OMB definitions due to differences in the effective dates of the geographic entities. Estimates of urban and rural population,housing units,and characteristics reflect boundaries of urban areas defined based on Census 2000 data. Boundaries for urban areas have not been updated since Census 2000.As a result,data for urban and rural areas from the ACS do not necessarily reflect the results of ongoing urbanization. Source: U.S.Census Bureau,2008-2012 American Community Survey Explanation of Symbols: 1. An '*"entry in the margin of error column indicates that either no sample observations or too few sample observations were available to compute a standard error and thus the margin of error.A statistical test is not appropriate. 2. An "entry in the estimate column indicates that either no sample observations or too few sample observations were available to compute an estimate,or a ratio of medians cannot be calculated because one or both of the median estimates falls in the lowest interval or upper interval of an open-ended distribution. 3. An "following a median estimate means the median falls in the lowest interval of an open-ended distribution. 4. An Yfollowing a median estimate means the median falls in the upper interval of an open-ended distribution. 5. An ***'entry in the margin of error column indicates that the median falls in the lowest interval or upper interval of an open-ended distribution.A statistical test is not appropriate. 6. An ** entry in the margin of error column indicates that the estimate is controlled.A statistical test for sampling variability is not appropriate. 7. An 'N'entry in the estimate and margin of error columns indicates that data for this geographic area cannot be displayed because the number of sample cases is too small. 8. An '(X)'means that the estimate is not applicable or not available. 8 of 8 1125/2014 STATE OF IOWA FEBRUARY 2016 LMR MONTHLY NONFARM EMPLOYMERS Al EARNINGS NONFARM EMPLOYMENT For av".tt`tOnN Mf rmaltOq conladJmnu Morris(515 WORKFORCE DEVELOPMENTMEFROLPOLITAN STATISTICAL AR&1 SEASONALLY ADJUSTED NONFARM EMPLOYMENT(TOTAL NONFARM) FEBRUARY 2016 LMR MONTHLY Mail Feb-15Nbr-15 N r-15 -15 Jun-15 Ju s2 Also u -15 see-12 Oci Nov-15 Dei Jan-i6 line AMES 526 525 52] 52] 52.1 52.1 526 528 528 528 528 53.1 532 CEDAR RAPIDS 1435 1434 1428 143.1 1432 1435 1"0 143.1 1427 1438 143.1 144.9 1442 DES MOINESM DES MO NES 3478 347 5 3472 AM 3493 350.6 350.1 3492 3492 3498 3508 352.0 3495 NONFARM EMPLOYMENT LEVEL ENDS YEAR WrM SMALL GAIN DUBUME 596 59 8 597 59 8 59.5 59 8 59 8 60.1 60.2 60.1 603 605 604 IOWACIT" 984 985 986 982 984 986 986 984 989 989 992 99.1 996 SIOUX CIT"' 1585 WATERLMCEDAR FALLS 918 918 918 91.1 91.1 91.1 91.1 997 995 996 997 914 997 1585 'Saaaomlly adjusted nine lorthe Siow City MSA. not araikble due to redrintion N the metropolitan area to now include PlnnoNh County 1575 IOWA'S HOURS&EARNINGS g 1565 q Average Hourly Earnings-Goods Producing y 1555 $>3.00 V 1545 15x5 $21.00171 11 11 Goods-producing Hours&Earnings $w.so Average Weekly Earnings $921.98 525 $20.00 a a 'a �^ o ad $1e.50 Average Hourly Earnings $22.27 a 'a m O z o LL $19.00 $lase Average Weekly Hours 41.4 Mar-15 to led iap IMar-i 4 to Fed 11 -Llnear oar-15 to Fee bp) jil $1].50 rr two businesses shed 6,200 jobs in manufacturing and other services. Nationally,total nonfarm employment February, lowering total nonfarm Conversely, education and health atltletl 242,000 jobs in February. The oFill mrebl6p arill W lai employment down to 1,574,400jobs( services atltletl jobs this month monthly gain was slightly higher than 0.4 percent). This month's decline is (+2,200) and has been steadily the average over the past twelve the first loss since September and climbing due to unyielding demand for months(+225,000)and equates to 2.7 Production workers in Iowa's goods-producing sectors averaged$921.98 in February,up$77.42 versus follows an unusually high gain to start health care services. The only other million jobs atltletl since last February. one year ago. The gain annually was primarily the result of increased overtime hours for construction the year. Virtually all segments of the major sector to add employment this The largest gains were in retail trade workers. Hourly and non-supervisory workers in manufacturing have seen a slight decrease in weekly two economy scaled back this month was financial activities,up 500 and health care and social assistance. earnings (-$37.04) due to cutbacks within durable goods factories. In total, manufacturing production month, with private sectors losing jobs in February. Iowa's finance Losses were sparse and primarily 5,000 jobs. Government was down industry has steadily advanced over within mining and manufacturing. workers averaged $769.54 1,200 jobs due to a decline in local the past several months with jobs last a week in February. Average Hourly Earnings-Goods Producing government. Government remains being pared!in November 2014. In retail, production workers $23.00 little changed versus last year(-100). Despite the monthly decline, Iowa averaged $355.32 in Si Private sector losses were largest in remains up 15,800 jobs compared to February, up$19.70 versus $2200 leisure and hospitality this month ( last February. Education and health one year ago. Finance $21.50 3,100). Accommodations and food services is now the leader in jobs workers experienced a gain 521.00 services experienced most of the atltletl (+6,100) due entirely to hiring $20.50 tis decline. Although the loss was large, in health care fields. Construction Of$1.39 in average hoal is urly $2s.ro it is the first since July for this super changed little this month,but remains earnings since last year and $19.50 sector. Professional and business up 4,300 versus one year ago. averaged $907.49 a week 519.00 services trended down for the fourth Manufacturing continues to navigate in February. $38.50 consecutive month, fueled by losses the storm and remains down(3,100). $18.00 in administrative and support services. Other losses include professional and $17.50 V Other losses this month included business services (1,800) antl ? a i c ad LL turtle and transportation, information, information services(1,600). OMar-35[c Feb-I6p Mar-14to Fe615 For additional MLrmaltOq conlaclJmnesMIOrrts(5I528I95I5) http://www.iowalmi.gov/ LABOR MARKT REVIEW LABOR MARKT REVIEW http://www.iowalmi.gov/ 1 2 FEBRUARY 2016 FEBRUARY 2016 LMR MONTFR.Y METROPOLITAN STATLSTICAL AREAS LMR MONTHLY METROPOLITAN STATISTICAL AREAS Des Moines/West Des Moines- CZRX TABU FOR DA TA (Mill TAIME10A DATA Nonfarm Employment Waterloo/Cedar Falls-Nonfarm Employment Des Moines MSA 550 331 o Employment Waterloo/Cedar Falls MSA a57o Employment Total Nonfarm 15p 344100 m 530 c 3530 Total Nonfarm 15p 89,900 Total Nonfarm 14 SAN 000 3490 9D, 3 TOL Nonfarm 14 91100 $ 3450 %Change 1 Vr 091% %Change 1 Vr -1 32% Noteworthy Expanding and g And e90 Noteworthy Expanding and Contracting Industries(1 yr) 3370 Contracting Industries as 870 Flnanc12 AQIVltidS 4]1% j as n Health Care&SOc 000% a d i m o z o F &as Government -750% 5 i e a a m o z o Manufacturing -364% —N on Seasonally Adjusted —seasonally Aulus@u p_prerhnmety Cele —NorvseasonallA Adjusted —s easmnally Adjusted p-preumtnerydete In February,total nonfarm employment decreased 1,900 jobs(-0.7 percent). This month's gain is atypical for this time of year and possibly due to some shifting of seasonality. Jobs have been lost in three consecutive months in the The Waterloo/Cedar Falls metropolitan statistical area's total nonfarm employment atltletl 1,100 jobs from the previous Des Moines area,although the metro maintains an increase of 3,100jobs versus last February. month and stands at 89,900. Job gains were seasonal in nature and almost entirely in government,with the only The largest declines this month were in trade and transportation(900),with seasonal losses in retail(600). Some of exceptions being gains of 100 in educational and health services and leisure and hospitality.Trade,transportation and this month's decline was due to seasonal,holiday staff being employed longer this year. Trade and transportation has warehousing shed 400 jobs and goods-producing,financial activities and professional and business services each paretl fared well of late,adding 1,000 jobs over the past twelve months. Professional and business services pared jobs(-600) 100 jobs. due to losses in both administrative support and waste management(400)and professional,scientific,and technical Over the year,employment is down 1,200 jobs,with manufacturing experiencing the greatest loss,shedding 600 jobs. services (200). This month's decline could signal that businesses are being more judicious in their staffing lately. The only industry with a gain in employment from one year ago is trade,transportation and warehousing which atltletl Annually, professional and business services remain up 800 jobs. While financial activities decreased slightly in 100jobs. February(200),the sector has atltletl the most jobs in the Des Moines area annually(+2,500). Other movements this month included seasonal increases in both education and health services(+700)and government(+400). Both sector gains were the result of seasonal education increases. aer aamrml mfirmanon,comate rxnnn schwa rt(5152 8 1-575 4) For additional Mf rmaltoq conlaclJamu Morris(5152814515) LIMOS 70 ADDITIONAL INFORMATION Dubuque-Nonfarm Employment LZli TABLPFOR DATA Click on a link bel ow to visit web page ss o Worker Adjustment&Retraining Notification Act(WARN) U.S.Bureau of Labor Statistics Dubuque MSA 1 9 It^/ 1 32 o Employment Unemployment Insurance Benefit Payments Consumer Price Index(CPI) m 31 o Total Nonfarm 15p 59,600 Total Nonfarm 14 "200 Unemployment Insurance Benefit Paid by County Employment Statistics for Canada r so 0 Change 1 Vr 0.00% 59A Noteworthy Expanding and Contracting Industries(1 yr) Seoal al al al al al Wt Service Provide 331% Contact 111/OlmaTIOO Current Employment Statistics w a m o o Government 000% Iowa Workforce Development LL Each month the Current Employment Statistics program surveys about 143,000 Employment Statistics Bureau —N,n seasonally Adjusted —seasonally Ad)usled businesses and government agencies, representing approximately 588,000 1000 East Grand Avenue p-peummery data individual worksites, in order to provide detailed industry data on employment, Des Moines IA 503190209 The Dubuque Metro remained at 59,600 jobs in February. Slight gains of 100 in private services exactly offset seasonal hours,antl earnings of workers on nonfarm payrolls for all 50 States,the District Tel 515-281-8515 losses in goods producing sectors. February has been prone to shifting seasonal patterns,with both two losses and two of Columbia,Puerto Rico,the Virgin Islands, and about 450 metropolitan areas TeL 800-531 8193 gains in each ofthe past four ears,so this month's report isn't too surprising. antl tlivisions. Fax 515 nds@i 8195 9 P YP & Email.trends(Djowa goy Annually, private services alone were responsible for metro area's gain of 1,400 jobs (+2.4 percent). Trade and www iowawohdorce org transportation atltletl 300 jobs and was partially fueled by expansion in retail trade. Equel o(portuntty emploperipmg2m.AwOtaV sets and sewsces are aw,ba 1e upon Fora Moms MLrvnalloq contact A es Morris(5152818515) reques!to lMMduels wtth dlselahbes. For deaf and hard of hearing,use Petey l» IOWA LABOR MARKET REVIEW http://www iowalmi.gov/ LABOR MARKET REVIEW http://www.iowalmi.gov/ WORK��RC DEVFIO WdN 4 6 IOWA WORKFORCE DEVELOPMENT Publishe0 in March 2016 Status of the Iowa Workforce and Economy ally adjusted jobless Total Nonfarm EmploymentIowa ate increased to 37 percent In February2015_Febmary2016 someone unit Aw, February from 35 percent In January. The rate stood ata percent one year agoGo Sir 25 Sir 25 0 . An Ins 14 Ins 14 The total number of working Iowans increased to 1651 100 in February. Ans PorGc PorGe Th is Is 1600 highe r than last mo nth ror Mc20 Mi 25 an it 13 700 highe r than one year go o Th e U.S.jo bless rate A main etl at u 4 9 percent In FebruaryAs SePt 20 SePt 20 . Ses on 21 on 250 Iowa s Continued Weeks Claimed for nonfarm employment shed 6200 jo be In F corns ry to Townstoo r ccnsecutrve O nemp loosened Ina pence on onto of gains. Iowa Regular State 01 Program • ( Leisure an ithosp its tity, pared the most to be this monib (3 Q00), with the majority of ng In atromb one inns and food services(-2,600). Avert Ej For of Professional and business servlcestrended down this month (2400). Administrative or 1 1 539 000 02% and support services were responsible for the majority of the decrease2014 . ,•�• � � •• � Despite the drop,total nonfarm . temrfAori rwmetnn0.mmon employment remains up 15,600 jobs comparedor 1 1 559 000 04% to last year. Education and Continued weeks claimed for health services have added the mostjobs. employment Insurance averaged or 4 1 570 000 07% 35745 perweek during February Iowa and U.S. Unemployment Rates 2016 2016. This is slightly higher than the _ February2015 average of34862 4VM 49% F Production workers In Iowa Information Prepared by the averaged $92198 in February, up Labor Force and Occupational $77.42 compared to one year ago. Analysis Grand The lforcoargest strual tted weaker have oz 1000PastOwa 50319 Avenue been for annually rakers, up Oes Moines, Iowa 503140209 $25933 annually to $11196.11 . Phone:5152815082 U.S nonfarm employment ar,re Gore Fax r515281-8203 gained 242,000 jobs In February 0 crew 0 11 Edwallace, Deputy Director The larges gams were In health nova wmlRorce Dkvstopmenl care and social assistance and retail CIA trade. WORKFORCE ,cepa,. tom,ma,mamm,,,at,eec,,,pe. m.awmeorc,D,.,nym,et w,gMnc,. cwA,,an201iy National Recognition Rankings for Dubuque, Iowa In February 2015, Dubuque earned a 4-star Community Rating by Star Communities, Washington, D.C. Dubuque is the 25th community to achieve certification under this system. The nine defined Action Types are included in the data collection and they covered environmental, civil and human rights, climate & energy, economy &jobs, health& safety, education& arts, natural systems and innovation. In the January February 2015 City News, the city manager notes that Dubuque was named one of the World's Smart2l Communities of 2015, as one of five U.S. communities on the list of 21. Designation is based on five intelligent community indicators that impact the way people live, work and create in their cities and towns. The White House named Dubuque one of 16 Climate Action Champions, citing the city greenhouse gas emission reduction targets of 50%below 2003 levels by 2030, plus focus on flood risk reduction and resilience in development and redevelopment of community infrastructure. In October of 2014, the Chronicle of Philanthropy released a report of philanthropic contributions per adjusted gross income for each county in America. Iowa has 2.89%of adjusted gross income, Illinois 2.69%, Wisconsin 2.44%, and Dubuque has 3.39% Area Development Magazine recognizes Dubuque area 2014—Dubuque was named one of top 100 leading locations, ranked 214 best in the U.S. for excellence in economic performance and a strong, healthy business climate. The report ranked Dubuque 7th in top cities for recession busing factors and 9" for economic strength. The report compared 380 metropolitan areas using over 20 economic indicators based on data from the Bureau of Labor Statistics, Bureau of Economic Analysis, US Census American Community Survey and HIS. Dubuque scored fifth in Site Selection Magazine's annual "Top Metropolitan Areas" in the U.S. for Metro areas under 200,000 people in July 2013. U.S. Environmental Protection Agency (EPA)recognizes Dubuque in 2013—presenting the National Award for Smart Growth Achievement, as the top municipality for widespread revitalization efforts in the historic Millwork District and the Washington Neighborhood. Kiplinger Personal Finance's list of 10 Great Places to Live in July 2013 -named Dubuque, Iowa, to the list along with Ithaca NY, Anchorage AK, Billings MT, Santa Fe NM and number one Little Rock, Arkansas. Emphasis is placed on small and mid-size cities with population of 1 million or less that have good jobs, reasonably priced homes, decent schools and access to great health care, according to the Associated Press publication of the Kiplinger news release that the rankings will appear in the September 2013 issue of Kiplinger's. Camoplast Solideal announced a major job growth and facility expansion project costing almost $3.4 million, an additional 30,000 square feet and 23 new jobs in a news release from the Greater Dubuque Development Corporation in February 2013, According to the City Manager of Dubuque news release, Dubuque was ranked among best for economic development; #16 of Top 100 Overall Cities, #3 in Top 20 Midwest Cities, #7 in Top 50 Small Cities, #6 in Top 25 Small Cities for Economic Strength and#8 for Recession Busting. Information obtained from the Greater Dubuque Development Corporation webpage http://,.Kreaterd.buaue.org/communication awards.cfm and the City of Dubuque publications City News,and some from the companies making the rankings. National Recognition Rankings for Dubuque, Iowa In 2012, Dubuque was one of 26 out of 363 metropolitan areas that have completely recovered from the jobs lost during the Great Recession, by the U.S. Conference of Mayors; ranked#16 in the Top 100 Overall Cities and#3 in the Top 20 Midwest Cities in the 2012 Leading Location Report of Area Development magazine; ranked 6th"Brainiest Metro" in the country, by The Atlantic; was named a 2012 All-America City by the National Civic League; and ranked#5 for resiliency of 361 cities by the Institute of Governmental Studies. Opportunity Dubuque Wins Top Workforce Honors 2012 - Opportunity Dubuque was awarded the top workforce honor by MAEDC, Mid-America Economic Development Council at the Competitiveness Conference & Site Selector Forum on December 2-4. Opportunity Dubuque is a collaborative effort of Dubuque Works, Northeast Iowa Community College, Dubuque Community Schools, Iowa Works, East Central Intergovernmental Association, Community Foundation of Greater Dubuque, and Project Hope. The initiative was launched with the goal of upgrading workers' skills, creating non-credit to credit career pathways, and ultimately filling local employer demand for talent in high-wage advanced manufacturing careers. 100 Best Communities for Youth 2012 -Because of its commitment to provide healthy, safe and caring environments for young people, Dubuque was named as one of the 100 best communities for youth. Dubuque was one of 37 communities to win the award five times. "The 100 Best Communities for Young People are taking bold and effective steps to help their youth graduate and lead healthy, productive lives," said Alma J. Powell, Chair, America's Promise Alliance. "Each community has proven that they are developing programs and implementing initiatives to provide young people with the essential resources they need to graduate from high school and succeed in college and a 21st century career." Dubuque Honored Nationally for Cultural Diversity Efforts 2012 - The National League of Cities' National Black Caucus of Local Elected Officials has awarded the City of Dubuque second-place honors in its 2012 City Cultural Diversity Awards. The City of Dubuque received second place honors specifically for a community engagement program that is a collaborative effort between City staff, leaders, and residents designed to ensure that: 1) City staff and programs are effectively meeting the needs of a growing multicultural community, 2)residents of diverse racial and ethnic backgrounds are acknowledged and engaged in community life, and 3)City policy decisions include the perspectives of the range of cultures represented in our community. Over the past three years in particular, the City has allocated staff and resources to expand cultural programming in the community, to bring people of various cultural backgrounds together to solve community problems and to develop cultural community groups to enhance involvement and communication between residents and staff. "We appreciate this national recognition of the hard work we, as a community, have done toward creating a more inclusive city," said Dubuque Mayor Roy D. Buol. "We continue to see demographic changes and growth in our community, and we acknowledge that there is an ever-present need to continue in our efforts." The awards honor community leadership in developing creative and effective programs to improve cultural diversity through a collaborative process with city officials, community leaders, and residents. Information obtained from the Greater Dubuque Development Corporation webpage http://,.Kreaterd.buaue.org/communication awards.cfm and the City of Dubuque publications City News,and some from the companies making the rankings. National Recognition Rankings for Dubuque, Iowa Dubuque Named All-American City 2012 -by the National Civic League. The community was one of 14 named from 32 finalists. In addition to being named an All-America City, Dubuque was also named a Community Solutions PaceSetter by the Campaign for Grade-Level Reading for its exemplary leadership and innovation in addressing the vexing challenges that keep many low-income students from learning to read proficiently. Dubuque Recognized for Outstanding Economic Development 2012 - The greater Dubuque area has once again been ranked among the best of the best in economic development by Area Development Magazine, a leading executive publication covering corporate site selection and facility planning. The 2012 Leading Locations report ranked Dubuque in five categories. Rankings include: Top 100 Overall Cities: Dubuque ranked 16th; the only city in Iowa ranking in the top 25, Top 20 Midwest Cities: Dubuque ranked 3rd, Top 50 Small Cities: Dubuque ranked 7th, Top 25 Small Cities —Economic Strength Factors: Dubuque ranked 6th, and Top 25 Small Cities—"Recession Busting" Factors: Dubuque ranked 8th. Greater Dubuque Development Business Retention & Expansion Program Scores Top Honors 2012 - Greater Dubuque Development received first place honors in the category for`Best Overall Business Retention and Expansion Program" from the Professional Developers of Iowa (PDI). Greater Dubuque Development's business retention and expansion program, InfoAction, has been active for more than 10 years with staff conducting over 250 on-site visits per year. During this time, Greater Dubuque Development Corporation has had a direct role with 83 private-sector expansion projects, totaling more than $311.5 million in capital investment, 3,289,480 square feet of construction, and at least 2,546 direct new jobs. Additionally, Greater Dubuque staff has provided direct assistance, on issues from A to Z, on more than 1,450 occasions, including 474 instances last year alone. This latest recognition represents the 7th award given to Greater Dubuque's InfoAction program in the past 3 years. Dubuque Ranks Second in Nation for Health System Performance 2012—The Commonwealth Fund has ranked Dubuque second in the nation for overall health system performance. The ranking was behind only St. Paul, Minnesota. This survey compared 306 communities tracked 43 indicators spanning four dimensions of health system performance; access, prevention and treatment, costs and potential avoidable hospital uses, and health outcomes. Greater Dubuque Development Wins Top Honors 2011 - Greater Dubuque Development's Dubuque Works and AccessDubuqueJobs.com were awarded top honors by MAEDC, Mid-America Economic Development Council for their workforce development programs. Dubuque Works was awarded first place for the collaborative effects of its seven local partners; Greater Dubuque Development, Telegraph Herald, Chamber of Commerce, Iowa Workforce, Northeast Iowa Community College, Dubuque Area Labor Management Council, and Community Foundation of Greater Dubuque, in successfully addressing workforce challenges and developing solutions to overcome the challenges. Our cutting-edge website, AccessDubuqueJobs.com, received second place honors as it assists millions of job seekers nationwide search for local jobs while allowing local employers the ability to attract a qualified workforce. Information obtained from the Greater Dubuque Development Corporation webpage http://,.Kreaterd.buaue.org/communication awards.cfm and the City of Dubuque publications City News,and some from the companies making the rankings. National Recognition Rankings for Dubuque, Iowa Dubuque Ranks#5 for Resiliency 2011 -Dubuque was named one of the most resilient cities in the nation. The city was ranked fifth out of 361 cities nationwide in a study of resiliency capacity that evaluates a community's economic capacity to bounce back from adversity, strength of demographics, and community connectivity. Dubuque Named 15th "Best-Performing" Small Metro 2011 - The Milken Institute's 2011 Best- Performing Cities Index ranks the Dubuque metropolitan area 15th out of 179 small U.S. metropolitan areas. Dubuque moved up 40 spots from 2010's 55th place ranking. Dubuque Named One of the Ten Smartest Cities on the Planet 2011 -Fast Company, a business magazine, recently named Dubuque among their Top 10 Smartest Cities on the Planet. The magazine focused on IBM's impact on the city and the 2009 declaration that Dubuque would become the "first integrated, smart city" in America, with interlocking systems watching the interplay between water, electricity and transportation. Dubuque was the only city in America on the list, sitting at No. 8, behind Songdo, South Korea; Lavasa, India; P1anIT Valley, Portugal; Skolkovo, Russia; Masdar, United Arab Emirates; Wuxi, China; and King Abdullah Economic City, Saudi Arabia. Ho Chi Minh City, Vietnam, and Nano City, India, rounded out the list. Existing Business Program Cited for Excellence and Innovation 2011 - Greater Dubuque Development was recognized by Blane, Canada, Ltd. for its business retention and expansion efforts and was recognized as one of the best in the industry being awarded the Critical Business Partner award. This top honor was awarded to Greater Dubuque Development for the key role it plays with the region's existing business base. Dubuque in the U.S. Top 10 for Job Growth 2011 -Moody's/Economy.Com ranked Dubuque in the Top 10 for the period 2010-2012. Dubuque's "employment growth rank" scored 9th best out of 392 cities in the U.S. 100 Best Communities for Youth 2011 -Because of its commitment to provide healthy, safe and caring environments for young people, Dubuque was named as one of the 100 best communities for youth. "The 100 Best Communifies for Young People are taking bold and effective steps to help theiryouth graduate and lead healthy, productive lives," said Alma J. Powell, Chair, America's Promise Alliance. "Each community has proven that they are developing programs and implementing initiatives to provide young people with the essential resources they need to graduate from high school and succeed in college and a 21st century career." Dubuque Named Best Small City to Raise a Family 2010 - Citing solid average incomes, good educational prospects, low costs, short commute times, and high rates of home ownership, Forbes.com named Dubuque, Iowa, as The Best Small City to Raise a Family. "Dubuque's size puts it in a kind of sweet spot: large enough to be a center of industry, small enough to not be overcrowded. An economy that successfully diversified after the collapse of the local manufacturing industry contributes to an unemployment rate that's nearly half the national average, at 6.5%, and a median household income of $48,779. That means most families have the jobs they need. They also don't have to spend a lot of time getting there: Only 2.6%of the population spends an hour or more getting to work," according to the article issued by Forbes.com. Information obtained from the Greater Dubuque Development Corporation webpage http://,.Kreaterd.buaue.org/communication awards.cfm and the City of Dubuque publications City News,and some from the companies making the rankings. National Recognition Rankings for Dubuque, Iowa Dubuque Named All-Star Community 2010 -The Iowa League of Cities recognized Dubuque as a 2010 All-Star Community, one of the most prestigious honors presented by the League to cities. Innovative efforts in areas such as urban renewal, development, preservation, service sharing and quality of life improvements determine the annual award winners. Dubuque was recognized specifically for its ongoing programs and models for sustainability. Dubuque Honored as World's 3rd Most Livable Community 2010 -Dubuque, Iowa, was named a third-place finalist and gold-standard community at the International Awards for Livable Communities. The city competed against communities spanning the globe. The LivCom Awards is the world's only competition for local communities that focuses on environmental management and the creation of livable communities. The objective of the awards is to encourage best practice, innovation, and leadership in providing a vibrant, environmentally sustainable community that improves the quality of life. The LivCom Awards were launched internationally in 1997 and are endorsed by the United Nations Environment Programme and the scheme is run as a UK Registered Charity. A new country has been represented at the LivCom Awards in each of the past eleven years, and now more 50 countries are regularly represented. Dubuque's Economic Growth Potential 7th Best in U.S. 2010 -Business Facilities magazine gave Dubuque the nod as a Top Metro for Economic Growth Potential (under 200,000 population)in their 2010 Rankings Report. The key metric for the 2010 Rankings Report was growth. Special emphasis was given to the growth potential of each location's economic development strategy. The Economic Growth Potential category rewards the most effective overall strategy and its successful execution, identifying those who not only have survived the economic downturn but are poised to dominate the emerging New Economy. Dubuque Ranks#1 in Projected Job Growth 2010 -Dubuque surged ahead 156 places in the 2010 Forbes.com rankings, garnering the top spot as the #1 Best Smaller Metro for Projected Job Growth. The ranking is based on three-year annualized figures and compares 184 smaller metro areas with populations ranging from 55,000 to 245,000. Only 15 communities making the grade have smaller populations than Dubuque. Dubuque also pushed ahead to a 15th place overall ranking on the Best Small Places for Business and Careers, moving up 25 places from its 2009 ranking of 40th. Dubuque 3rd Best in U.S. for Job Growth 2010 -Dubuque's job growth has been cited as among the best in the entire U.S. by Careerbuilder.com. In comparing the 281 largest metros in the U.S., Dubuque's job growth of 2.1%ranked as third best in the nation. Of the 77 metros that saw job gains, Dubuque was one of just three that saw growth of better than 2%. Dubuque Named All-Star Community 2010 -The Iowa League of Cities recognized Dubuque as a 2010 All-Star Community, one of the most prestigious honors presented by the League to cities. Innovative efforts in areas such as urban renewal, development, preservation, service sharing and quality of life improvements determine the annual award winners. Dubuque was recognized specifically for its ongoing programs and models for sustainability. Information obtained from the Greater Dubuque Development Corporation webpage http://,.Kreaterd.buaue.org/communication awards.cfm and the City of Dubuque publications City News,and some from the companies making the rankings. National Recognition Rankings for Dubuque, Iowa Dubuque Named Top Ten Most Affordable Places to Live and Work 2009 -Dubuque was named one of the ten'Most Affordable Places to Live and Work'by Sperling's Best Places based on having a good supply of jobs, low cost of living, affordable housing, and a great quality of life. Dubuque Wins Award for Excellence in Economic Development 2009 -U.S. Commerce Secretary Gary Locke awarded Dubuque the 2009 Excellence in Economic Development Award for Excellence in Historic Preservation-led Strategies. Locke said Dubuque received the award for its commitment to research-based, market driven economic development in helping grow the local economy. "The city of Dubuque represents the best and brightest in 21st century economic development," Locke said. "Excellence Award winners exemplify the importance of supporting regional strategies to ensure American communities succeed in the global marketplace and create higher-skill, higher-wage jobs." "Dubuque sets the gold standard for a community taking charge of its economic destiny by revitalizing its downtown historic district in order to attract new businesses and dramatically increase tourism," Senator Tom Harkin said. "These revitalized areas, along with the city's business-friendly environment, have made Dubuque a magnet for new businesses and industries. The 2009 Excellence in Economic Development award will continue to make Dubuque a role model for cities around the country." Dubuque Named to 'America's Top 100 Places to Live' 2009-RelocateAmerica.com, a website that provides relocating consumers and area residents with access to local community resources, has included Dubuque in its annual listing of'America's Top 100 Places to Live for 2009.' "With the increasing concern on our nation's economy and recovering housing market, we approached this year's list with a different lens than in previous years. We concentrated on the outlook for future growth and ability to rebound in the communities that we selected," said Steve Nickerson, president and CEO. "We looked at the local government and the business leadership in each community as we considered this year's winners. We selected communities with visionary leaders, improving or thriving economies including housing & realization of"green" initiatives." Dubuque Named a 'Crown Community' 2009 - American City & County magazine named Dubuque a 'Crown Community'in recognition of outstanding leadership in local government. Dubuque's nomination featured the partnerships and collaboration among the City of Dubuque, Greater Dubuque Development Corp., State of Iowa, Iowa Department of Economic Development, Iowa Workforce Development, Dubuque Initiatives, area colleges and universities, and local financial institutions that resulted in IBM's decision to locate a new global technology service delivery center that will employ 1,300 in downtown Dubuque. Dubuque Named `Most Livable' Small City in U.S. 2008 -Dubuque was named as the `Most Livable' Small City by the United States Conference of Mayors (USCM) 2008 Livability Awards Program during the USCM Annual Meeting. Dubuque's application featured the America's River project and the public/private partnerships and community involvement that transformed the Port of Dubuque into a destination that captures the historical, environmental, educational and recreational majesty of the Mississippi River. ABC "Good Morning America" announced Dubuque as the top 100 of best places for children to live in 2006. Information obtained from the Greater Dubuque Development Corporation webpage http://,.Kreaterd.buaue.org/communication awards.cfm and the City of Dubuque publications City News,and some from the companies making the rankings. National Recognition Rankings for Dubuque, Iowa Milken Institute/Greenstreet Partners 2007 Best Performing Cities Index ranked Dubuque metropolitan areas (which includes all of Dubuque County)39th out of 179 U.S. small cities (increase of 37 spots, Dubuque bested all other Iowa small cities except for Iowa City which ranked# 25). Inc. Magazine's labeled Dubuque in the Top 25 list of hot cities for economy (increasing 178 spots from 2006 to #22, it joins other cities such as Las Vegas, Phoenix and Orlando). Sperling's Best Places, a west coast firm known for its best and worst lists, rated Dubuque 6th on its list of"Low Cost Locales Where Jobs Are Plenty". Expansion Management Magazine's "Quality of Life Quotient" (overall housing affordability, including owning a home, good schools, low crime, and reasonable cost of living)ranked Dubuque 6th out of 331 metropolitan areas in the nation in 2005 (in 2003 Dubuque was listed as 25th). Inc. Magazine rated Dubuque#62 of the "Best Cities to Do Business in America for 2005" (up from 239 in 2004, showing Dubuque's economy is up by 35 percent). Information obtained from the Greater Dubuque Development Corporation webpage http://,.Kreaterd.buaue.org/communication awards.cfm and the City of Dubuque publications City News,and some from the companies making the rankings. ADDENDUM H PRIVACY STATEMENT GLOSSARY APPRAISAL ORDER/LETTER ASSESSOR CARD (S) Felderman Appraisals,Dubuque,Iowa Felderman Appraisals,Dubuque,Iowa PRIVACY POLICY for FELDERMAN APPRAISALS FELDERMAN APPRAISALS,like many other providers of financial services,is required by the Gramm-Leach- Bliley(GLB)Act of 1999 to inform customers of our policies regarding the collection of nonpublic personal information during the appraisal process. The Federal Trade Commission(FTC)has ruled that appraisers are now considered to be financial institutions.This stems,in part,from longstanding statements by Intra-Agency Federal Financial Regulators,FanmeMae,FreddieMac, and FHA that appraisers are considered as part of the financial institution for their participation in the lending process. Appraisers have been and continue to be bound by the Uniform Standards of Professional Appraisal Practice,(USPAP) and the Ethics Rule which consists of the conduct,management,confidentiality, and record keeping sections.These rules and standards are more stringent than those required by law or regulation.We have always been diligent about protecting information deemed to be private or confidential in nature. TYPES OF NONPUBLIC PERSONAL INFORMATION COLLECTED Nonpublic and personal information about you and your property is collected during the course of developing and completing the appraisal process.This is generally accomplished with your knowledge and approval.Nonpublic information is normally provided to our companyby you or obtained by us with your authorization.The purpose of the appraisal process is to develop a credible value opinion for the client or customer.A credible assignment result is part of the requirement for successful completion of a particular real estate finuicial transaction or business decision. PARTIES TO WHOM WE DISCLOSE INFORMATION This company does not disclose any nonpublic personal information obtained during the course of developing a property's specific value opinion except as required by law or at the direction of the client to assist in the completion of a particular financial transaction. Such nonpublic information may be disclosed to the client and any identified intended users of the specific appraisal,review,or appraisal consulting assignment.A fiduciary agreement is automatically in effect between our company and the identified client or customer and intended users per the Ethics Rule contained within the USPAP.Additionally,in all such situations,the appraiser must comply with all pertinent laws,rules,and regulations regarding the safeguarding of the analyses,conclusions,survey results,adjustments,and opinions relative to the appraisal process relative to this specific assignment. RECORD KEEPING REQUIREMENTS FELDERMAN APPRAISALS retains work records relating to the informational services that we provide so that we are better able to assist with your professional needs and to comply with the requirements of the Ethics Rule as contained within the USPAP. In order to secure your nonpublic personal information,our agency maintains physical, electronic,and procedural safeguards to comply with our professional standards of practice and provisions of the OLE Act. CUSTOMERS RIGHT TO LIMIT PUBLIC DISCLOSURE OR SHARING OF NONPUBLIC PERSONAL INFORMATION Our clients and/or customers have the right to limit the reuse of their nonpublic personal information gathered during the course of the appraisal development process.The customer must notify this agency within a reasonable time (considered to be 30 days by the FTC)that public disclosure,or reuse of such information is prohibited except as required by applicable law,regulation,or the appraiser's Uniform Standards of Professional Appraisal Practice (USPAP). Please feel free to call if you have any questions concerning this policy. Your privacy,our professional ethics,and the ability to provide you with a quality product or service are very important to us. FELDERMANAPPRAISALS 55 Bluff Street, Dubuque,IA 52001 (563)557-1465 Office; (563)588-4214 Fax FeldermanAppraisals@gmaiLcom Felderman Appraisals,Dubuque,Iowa GLOSSARY Accrued Depreciation is the disparity between the cost of replacement and the current price of home improvements. Accrued depreciation is calculated based on the appraisal data of a property. Across the Fence(ATF) is a method of valuing transportation corridors as special-purpose properties assembled from portions of adjacent properties. They have a wide variety of uses including public and private transportation, various types of utilities, and right-of-way uses. It uses the premise that the corridor land should be worth as much as the land through which it passes or adjoins. The value of the adjacent or adjoining land is applied to the corridor to arrive at a market value. Air Rights give the property holder a right to use the air space above a property. In some cases, air rights specify which space above the ground or above vertical places can be used. Amortization is the process of paying regular installments in order to take care of a financial obligation. When you buy a distressed property, amortization may refer to the creation of a payment plan for your mortgage or home loan. This plan will let you make equal and regular payments for the mortgage term (which is called the amortization period).Each payment made in amortization goes towards paying interest and reducing the principal owed. Amortization Period is the term of a loan or the amount of time needed to recover the net investment made in a specific project. When it comes to foreclosed real estate, your amortization period will likely be the term of your home loan. Appraisal is an official and written estimation of a property value. An appraisal is made by a qualified professional who inspects the property and analyses the various aspects of a property before giving his or her opinion about the value of the real estate. If you are purchasing repossessed homes,the appraisal is usually completed for you by a government agency or lender. Since this appraisal can be rushed, there is a good chance that some of the foreclosed homes you look at will be undervalued, meaning that their actual value will be higher- sometimes much higher -than the appraisal suggests. Appraisal Report Options include Self-Contained Appraisal Report, Summary Appraisal Report and Restricted Use Appraisal Report. Felderman Appraisals,Dubuque,Iowa GLOSSARY Appraiser is the professional person who appraises real estate or other types of property. This person is usually chosen to do an appraisal because they are specially trained and educated in the process. An appraiser will use their experience, the facts they have available, as well as their judgment when appraising property. Arms-Length Transaction is a transaction between unrelated parties under no duress. As Completed Market Value, refer to Prospective Market Value. As Is Market Value is the "estimate of market value of real property in its current physical condition, use, and zoning as of the appraisal's effective date." Source: Interagency Appraisal and Evaluation Guidelines, December 2010. As Stabilized Market Value, refer to Prospective Market Value. Asking Rent is the rent for commercial real estate as a weighted average quoted as an annual Triple Net(NNN)rent or a Gross rent per square foot Assessed Value applies in ad valorem taxation and refers to the value of a property according to the tax rolls. Assessed value may not conform to market value, but it is usually calculated in relation to a market value base. Aviation Easement is the right adopted by airports and others to own the right to airspace around an airport or property. Airports seek this right to use the air space for flights, and other airport activities and it may limit the height of buildings on your property. Building Area is the total area of the buildings included in the transaction, expressed in square feet. Bulk Value is the value of multiple units, subdivided lots, or properties in a portfolio as though sold to a single buyer in one transaction; sometimes called bulk sale value or wholesale value. Business Enterprise Value(BEV) is the "value contribution of the total intangible assets of a continuing business enterprise such as marketing and management skill, an assembled work force, working capital, trade names, franchises, patents, trademarks, contracts, leases, customer base, and operating agreements." Felderman Appraisals,Dubuque,Iowa GLOSSARY Capitalization Rate is known as "return on and return of capital, the capitalization rate is simply the ratio of the value of an investment and the net income that is derived from the investment of security. The capitalization rate is usually expressed in percentages and can help investors decide whether an investment is a good deal or not. Cash Equivalency Value is the procedure in which the sale prices of comparable properties sold with atypical financing are adjusted to reflect typical market terms. Cash Equivalent Price is the "price of a property with above or below-market financing expressed in the terms of the price that would have been paid in an all-cash sale." Client is the party or parties who engage an appraiser(by employment or contract) in a specific assignment. (USPAP) Condemnation by the right of eminent domain is the process of taking over private property for use by the public. In this process, the property owner is given fair reimbursement or compensations for the inconvenience. Contract is a written or oral legally binding agreement in which the person named promises to do or avoid specific things. Obviously, this is a very general definition for a very general term. Specifically, in real estate, there are many types of contracts that the buyer and seller needs to be aware: options, home loans, leases, tenant agreements, deeds, loans, escrow agreements, contracts of sale, listings, and others. Contract Rent The actual rental income specified in a lease. Covenant is a written contract contained in the deed. A covenant declares that an individual either will avoid certain acts on a specific property or will perform certain actions on the property. A covenant can also stipulate or prohibit specific uses of a piece of real estate. Credible (Appraisal) Assignment Results, means "worthy of belief'per USPAP using the Scope of Work Rule. Under this rule, credible assignment results depending on meeting or exceeding both (1)the expectations of parties who are regularly intended users for similar assignments, and (2)what an appraiser's peers' actions would be in performing the same or similar assignment. Felderman Appraisals,Dubuque,Iowa GLOSSARY Deed is a legal written document that has been delivered, sealed, and properly executed. A deed involves a grantor and grantee. In a deed, the grantor or person with ownership of a property conveys to the grantee an interest in the property,the title, or some rights to the property in question. Deferred Maintenance is requirements for maintenance, repairs, and correction of a property that are not yet fulfilled. The understanding is that these repairs will be made, but are delayed until a future point in time. Depreciation is this term actually has three meanings: 1)the disparity between the cost of replacing a property and the market value of the property, as determined by an appraisal.2)the yearly right of part of an asset made during accounting procedures.3)the reduction in property value, usually occurring over some time. Depreciation may result from neglect of a property, sudden changes in a neighborhood, and property damage. Discounted Cash Flow (DCF) Analysis is the procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifics the quantity, variability, timing and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate. Disposition Value is the "most probable price which a specified interest in real property is likely to bring under all of the following conditions: 1) Consummation of a sale will occur within a limited future marketing period specified by the client; 2) The actual market conditions currently prevailing are those to which the appraised property interest is subject; 3) The buyer and seller is each acting prudently and knowledgeably; 4) The seller is under compulsion to sell; 5) The buyer is typically motivated; 6) Both parties are acting in what they consider their best interests; 7) An adequate marketing effort will be made in the limited time allowed for the completion of a sale; 8) Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 9) The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. See also Wholesale (Bulk) and Liquidation Value." Felderman Appraisals,Dubuque,Iowa GLOSSARY Easement is a right or benefit that one landowner may exercise or have on the property of someone else. Easement often includes such things as right-of-way, right of transport, and right of use of common areas. Economic Life is the term of time during which a property will provide a return on the initial investment of the property. Economic Obsolescence is that which reduces the functionality or desirability of a property. Economic obsolescence often as the result of laws that affect real estate property rights or is the result of changes in the use of the property or changes in demand. This is one of the risks of buying foreclosed properties. To lessen this risk, investors interested in bank foreclosures will want to research to make sure that there are no pending laws or economic changes that can affect their investment. Effective Age is a way of indicating the condition of our real estate foreclosures. Calculated by inspectors and appraisers, effective age is given as an age in years. However, the effective age may be either longer or shorter than the actual age of a property, depending on the property's condition and shape. Effective Date of the Appraisal establishes the context for the value opinion. Three categories of effective dates are retrospective, current and prospective; and may be used, according to the intended use of the appraisal assignment. Effective Rent is the rental rate net of financial concessions such as periods of no rent during the lease term and above- or below-market tenant improvements (Tis); may be calculated on a discounted basis, reflecting the time value of money, or on a simple, straight-line basis. Encroachment is the structure, part of the building, part of a structure, or building-- or in fact, any improvements, repairs, or property --that trespasses on property belonging to another owner. If you are considering buying real estate owned property and wish to do repair work or additions before reselling for profit, it is important to always consult deeds and maps to ensure that your new improvements are not guilty of encroachment. Felderman Appraisals,Dubuque,Iowa GLOSSARY Encumbrance is any liability, lien, charge, claim, or other factor related to a property that will or may decrease the property value but will generally not affect transfer of ownership. Encumbrance may affect either the physical shape of the property or the title of ownership. That is, encumbrances may be easements, restrictions, and encroachments. They can also be liens, judgment against an owner or property, and home loans. Excess Land; concerning an improved site,the land that is not needed to serve or support the existing improvement. Concerning a vacant site or a site considered as though vacant,the land not needed to accommodate the site primary highest and best use. Such land may be separated from the larger site and have its own highest and best use, or it may allow for future expansion of the existing or anticipated improvement. See also surplus land. Exposure Time, per USPAP, is the estimated length of time the property interest being appraiser would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Exposure time is always presumed to precede the effective date of the appraisal, and is a function of price, time and use—not an isolated opinion of time alone. Extraordinary Assumption is "an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions. Comment: Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis." See also hypothetical condition. Entrepreneurial Profit is a market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement(e.g. the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. Felderman Appraisals,Dubuque,Iowa GLOSSARY In economics,the actual return on successful management practices, often identified with coordination,the fourth factor of production following land, labor, and capital; also called entrepreneurial return or award. Excess Land is that not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess must have the potential to be sold separately and is valued independently. See Surplus Land. Exposure Time is the time a property remains on the market. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimated opinion based on the analysis of past events assuming a competitive and open market. Fair Value: is "the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date." This is considered applicable to business and accounting valuations. Source: Statement of Financial Accounting Standards No. 157 Fair Value Measurements. Fee Simple Estate is the "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." Federally Regulated Institution is one that is supervised by a federal financial institutions regulatory agency, including a national or state-chartered bank and its subsidiaries, a bank holding company and its non-bank subsidiaries, a federal savings association and its subsidiaries, a federal savings and loan holding company and its subsidiaries, and a credit union. Federally Regulated Transaction is any real estate-related financial transaction in which the Agencies or any regulated institution engages or contracts for, and that requires the services of an appraiser. Felderman Appraisals,Dubuque,Iowa GLOSSARY Floor Area Ratio (FAR) is the relationship between the above-ground floor area of a building, as described by the building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area, also called building-to-land ratio. Full Service Lease is a lease in which rent covers all operating expenses. Typically, full service leases are combined with an expense stop, the expense level covered by the contract lease payment. Increases in expenses above the expense stop level are passed through to the tenant and are known as expense passthroughs. Functional Obsolescence is the reduced property value that is caused by a functional problem or liability. In many cases, functional obsolescence is caused by bad initial design or by age, and may include such things as lack of storage space, bad floor plan, outdated architecture, too-old plumbing, outdated fixtures, ceilings that are too high or too low, or other problems that make modern living difficult. Going Concern Value is the value of a proven property operation. It includes the incremental value associated with the business concern, which is distinct from the value of the real estate only. Going concern value includes an intangible enhancement of the value of an operating business enterprise that is produced by the assemblage of the land, building, labor, equipment, and marketing operation. This process creates an economically viable business that is expected to continue. Going Concern refers to the total value of a property, including both real property and intangible personal property attributed to the business value with an indefinite life. Grantee is the purchaser of a real estate, the individual, group, or organization who receives real estate through conveyance or grant. Grantor is the individual, group, or entity selling property via grant or deed. Gross Building Area (GBA) is the total floor area of a building, including below-grade space but excluding unenclosed areas, measured from the exterior of the walls. Gross building area is computed by measuring to the outside finished surface of permanent outer building walls without any deductions. Felderman Appraisals,Dubuque,Iowa GLOSSARY All enclosed floors of the building including basements, mechanical equipment floors, penthouses, and the like are included in the measurement. Parking spaces and parking garages are excluded. Gross Income is the forecast of the yearly income made from the management of property or from a business operation. Through foreclosed real estate property, an investor can make the gross income in several ways -- by managing and renting property or by selling multiple properties for yearly profits. Gross Rent Multiplier in single-family or multi-family homes is the ratio between the price of a property and the monthly rental profit. If you are purchasing real estate owned property with the intention of renting it, determining the gross rent multiplier can help you determine whether a property will be profitable in the long run. Highest and Bes Use is the "reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported,financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Alternately, the probably use of land or improved property-specific with respect to the user and timing of the use-that is adequately supported and results in the highest present value." Hypothetical Condition is "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of the assignment." Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. See also extraordinary assumption. Insurable Value is used by insurance companies as the basis for property insurance. Insurable value is not intended to be market value. Intended Use is the use or uses of an appraiser's reported appraisal, appraisal review, or appraisal consulting assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment(USPAP). Felderman Appraisals,Dubuque,Iowa GLOSSARY Intended User is the client and any other party as identified, by name or type, as users of the appraisal, appraisal review, or appraisal consulting report by the appraiser on the basis of communication with the client at the time of the assignment(USPAP). Investment Value is the value of an investment to a particular investor based on his or her investment requirements. In contrast to market value, investment value is value to an individual, not value in the marketplace. Investment value reflects the subjective relationship between a particular investor and a given investment. When measured in dollars, investment value is the price an investor would pay for an investment in light of its perceived capacity to satisfy his or her desires, needs, or investment goals. To estimate investment value, specific investment criteria must be known. Criteria to evaluate a real estate investment are not necessarily set down by the individual investor; they may be established by an expert on real estate and its value, that is, an appraiser. Land to Building Ratio is the relationship between the above-ground floor area of a building and the area of the plot on which it stands; often expressed a ratio of 2 to 1, indicates that the permissible land area is twice the building area. Lease is a contract in which rights to use and occupy land or structures are transferred by the owner to another for a specified period of time in return for a specified rent. Leased Fee Interest or Leased Fee Estate is an "ownership interest'held by a landlord with the right of use and occupancy conveyed by lease to others. The rights of the lessor(the leased fee owner) and the leased fee are specified by contract terms contained within the lease. Leasehold Interest or Leasehold Estate is the "tenant interest'held by the lessee through a lease conveying the rights of use and occupancy for a stated term under certain conditions. Liquidation Value is the most probable price which a specified interest in real property is likely to bring under all of the following conditions: 1) Consummation of a sale will occur within a severely limited future marketing period specified by the client; 2) The actual market conditions currently prevailing are those to which the appraised property interest is subject; 3) The buyer is acting prudently and knowledgeably; 4) The seller is under extreme compulsion to sell; 5) The buyer is typically motivated; Felderman Appraisals,Dubuque,Iowa GLOSSARY 6) The buyer is acting in what he or she considers his or her best interests; 7) A limited marketing effort and time will be allowed for the completion of a sale; 8)Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 9) The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. See also Wholesale (Bulk) Value and Disposition Value. Marketing Time or Period, per USPAP, is an opinion of the time it might take to sell the property interest at the appraised market value during the period immediately after the effective date of the appraisal. An institution may request an appraiser to separately provide an estimate of marketing time in an appraisal. However, this is not a requirement of the Agencies appraisal regulations. Market Rent is the "most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the specified lease agreement including term, rental adjustment and revaluation, permitted uses, use restrictions, and expense obligations;the lessee and lessor each acting prudently and knowledgeably, and assuming consummation of a lease contract as of a specified date and the passing of the leasehold from lessor to lessee under conditions whereby: 1) lessee and lessor are typically motivated; 2)both parties are well informed or well advised, and acting in what they consider their best interests; 3) a reasonable time is allowed for exposure in the open market; 4)the rent payment is made in terms of cash in U.S. dollars and is expressed as an amount per time period consistent with the payment schedule of the lease contract; and 5)the rental amount represents the normal consideration for the property leased unaffected by special fees or concessions granted by anyone associated with the transaction." Market Value is one of the central concepts of the appraisal practice. Market value is differentiated from other types of value in that it is created by the collective patterns of the market. Market Value (FIRREA)means "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale,the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: Felderman Appraisals,Dubuque,Iowa GLOSSARY 1) A reasonable time is allowed for exposure in the open market; 2) Both parties are well informed or well advised, and acting in what they consider their own best interests; 3) Buyer and seller are typically motivated; 4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." Source for FIRREA definition is Comptroller of the Currency 12 CFR, Part 34, Subpart C, 34.42 Definition [g]. Net Lease is one in which all or some of the operating expenses are paid directly by the tenant. The landlord never takes possession of the expense payment. In a Triple Net Lease, all operating expenses are the responsibility of the tenant, including property taxes, insurance, interior maintenance, and other miscellaneous expenses. However, management fees and exterior maintenance are often the responsibility of the lessor in a triple net lease. A modified net lease is one in which some expenses are paid separately by the tenant and some are included in the rent. Net Rentable Area (NRA) is the area on which rent is computed, or the Rentable Area of a floor shall be computed by measuring to the inside finished surface of the dominant portion of the permanent outer building walls, excluding any major vertical penetrations of the floor. No deductions shall be made for columns and projections necessary to the building. Include space such as mechanical room,janitorial room, restrooms, and lobby of the floor. Occupancy Rate is the relationship or ratio between the income received from the rented units in a property and the income that would be received if all the units were occupied. Prospective Opinion of Market Value"as Completed" or "as Stabilized may be appropriate for the valuation of to property interest related to a credit decision for a proposed development or renovation project. According to USPAP, an appraisal with a prospective market value reflects an effective date that is subsequent to the date of the appraisal report. Prospective value opinions are intended to reflect the current expectations and perceptions of market participants, based on available data. Two prospective value opinions may be required to reflect the time frame during which development, construction, and occupancy will occur. The prospective market value "as completed"reflects the property's market value "as of the time that development is expected to be completed. Felderman Appraisals,Dubuque,Iowa GLOSSARY The prospective market value "as stabilized" reflects the property's market value as of the time the property is projected to achieve stabilized occupancy. For an income-producing property, stabilized occupancy is the occupancy level that a property is expected to achieve after the property is exposed to the market for lease over a reasonable period of time and at comparable terms and conditions to other similar properties. Raw Land is a parcel or tract of land with no improvements, for example, infrastructure or vertical construction. When an appraisal of raw land includes entitlements, the appraisal should disclose when such entitlements will expire if improvements are not completed with a specified time period and the potential effect on the value conclusion. Reasonable Exposure Time is the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based upon an analysis of past events assuming a competitive and open market. Rentable Area (RA) is for office buildings, the tenant's pro rate portion of the entire office floor, excluding elements of the building that penetrate through the floor to areas below. The rentable area of a floor is computed by measuring to the inside finished surface of the dominant portion of the permanent building walls, excluding any major vertical penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice. Replacement Cost is the estimated cost to construct, at current prices as of the effective appraisal date, a substitute for the building being appraiser, using modern materials and current standards, design and layout. Reproduction Cost is the estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. Sales Concessions, per USPAP, are cash or noncash contribution that is provided by the seller or other party to the transaction and reduces the purchasers' cost to acquire the real property. Felderman Appraisals,Dubuque,Iowa GLOSSARY A sales concession may include, but is not limited to , the seller paying all or some portion of the purchaser's closing costs (such as prepaid expenses or discount points) or the seller conveying to the purchaser personal property which is typically not conveyed with the real property. Sales concessions do not include fees that a seller is customarily required to pay under state or local always. In developing an opinion of market value, an appraiser must take into consideration the effect of any sales concessions on the market value of the real property. Sales History and Pending Sales, per USPAP, when the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business, analyze: (1) all current agreements of sale, options, and listings of the subject property as of the effective date of the appraisal, and (2) all sales of the subject property that occurred within three years prior to the effective date of the appraisal. Sandwich Lease is "a lease in which an intermediate, or sandwich, leaseholder is the lessee of one party and the lessor of another." Scope of Work, per USPAP,the type and extent of research and analyses in an appraisal assignment. Shell rent is the typical rent paid for retail, office, or industrial tenant space based on minimal "shell" interior finishes (called plain vanilla finish in some areas). Usually the landlord delivers the main building shell space or some minimum level of interior build-out, and the tenant completes the interior finish, which can include wall, ceiling, and floor finishes; mechanical systems, interior electric, and plumbing. Typically, these are long-term leases with tenants paying all or most property expenses. Surplus Land is land not necessary to support the highest and best use of the existing improvement, but because of physical limitations, building placement, or neighborhood norms, cannot be sold off separately. Such land may or may not contribute positively to value and may or may not accommodate future expansion of an existing or anticipated improvement. See also excess land. Felderman Appraisals,Dubuque,Iowa GLOSSARY Stabilized Income is the income at that point in time when abnormalities in supply and demand or any additional transitory conditions cease to exist and the existing conditions are those expected to continue over the economic life of the property; projected income that is subject to change, but has been adjusted to reflect an equivalent, stable annual income. Tract Development, is a project of five units or more that is constructed or is to be constructed as a single development. For purposes of these guidelines, "unit"refers to: a residential or commercial building lot, a detached single-family home, an attached single-family home, and a residence in a condominium, cooperative, or timeshare building. Usable Area is the area actually used by individual tenants. The Usable Area of an office building is computed by measuring to the finished surface of the office side of corridor and other permanent walls, to the center of partitions that separate the office from adjoining usable areas, and to the inside finished surface of the dominant portion of the permanent outer building walls. Excludes areas such as mechanical rooms,janitorial room, restrooms, lobby, and any major vertical penetrations of a multi-tenant floor. Use Value is a concept based on the productivity of an economic good. Use value is the value a specific property has for a specific use. Use value focuses on the value the real estate contributes to the enterprise of which it is a part, without regard to the property's highest and best use or the monetary amount that might be realized upon its sale. See also Value in Use. Value Indication an opinion of value derived through application of the appraisal process. Value in Use is the value of a property assuming a specific use, which may or may not be the property's highest and best use on the effective date of the appraisal. Value in use may or may not be equal to market value but is differently conceptually. The present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. The present value of the future cash flows expected to be derived from an asset or cash-generating unit. The present value applies to financial reporting and considers the value of an asset at the end of its useful life. These meanings differ from the way the term is commonly used in valuation practice. Felderman Appraisals,Dubuque,Iowa GLOSSARY Wholesale Value(See Bulk Value) Definitions obtained from multiple sources including, The Dictionary of Real Estate, The Appraisal Institute, Uniform Standards of Professional Appraisal Practice, Merriam Webster Dictionary and the FDIC Independent Appraisal and Evaluations Guidelines. Felderman Appraisals,Dubuque,Iowa APPRAISAL ORDER On 4/1/2016,the City of Dubuque Leisure Services Manage—Marie Ware, ordered an Appraisal Report to be completed on the following property. Subject property: 1101 Central Avenue, Dubuque, IA Client& Intended User: City of Dubuque (Leisure Services) Intended Use: Owner information to use in negotiations for purchase of said subject property listed above Property Rights: Fee Simple Interest Conditions- As Is Product: Appraisal Report in PDF formatted electronic file Assumptions: None, unless Client provides appropriate guidelines or acts that may apply (i.e. Iowa DOT Condemnation Manual, Uniform Act, forms, etc.)to determine if the appraisal may require a jurisdictional exception(for condemnation proceedings, the Value Finding or Detailed Appraisal Report of an acquisition by fee taking, permanent easement and/or temporary easement) Points of Contact: Client to provide name and contact information for the appraiser to arrange an observation of the subject—Jeff McFarland, 582-4872 Fee: Based on $100 per hour, with discount for multiple assignments from client applied to invoice. Completion Time: Flexible completion date, but approximately mid-May 2016. Services: To my knowledge, I have performed NO services, as an appraiser or in any other capacity, regarding the property that is the subject of this report bid within the three-year period immediately preceding acceptance of this assignment. I did perforin an appraisal in 2004 for financing. Bias: I have no known bias or conflict of interest with respect to the property that is the subject of this report or to the parties involved with this assignment. Engagement: My engagement is not contingent upon developing or reporting predetermined results. The use of this report is not for financing purposes, but it may still meet those requirements. Competence: Over 32 years of business experience in real estate and appraising, with significant experience and education in subject property type and geographical knowledge and competency. Limitations: Client to advise of any known limitations to legally permissible, physically possible, financially feasible or maximally productive (basically, items that may limit or impact the highest and best use analysis, such as current status of contamination, condition of building, access to utilities, etc.). Testimony: If required, court testimony is billed at$250 per hour(with a $1,000 minimum to book a date). Appraiser: Robert J. Felderman, Iowa Certified General Real Property Appraiser Firm: Felderman Appraisals, 55 Bluff Street, Dubuque, Iowa 52001 Feldernean Appraisal;Dubuque,Iowa 4nf2Ol6 Beacon-Dubuque counm,IA MeaconTM Dubuque County, 1A Summary Parcel ID 1024156010 Alternate ID 3]-3-8 Procerty Address 11010ENTRALAVE DUBUQUE IA 52001 Sec/Fwp/Rng N/A grid 52/5 CITY LOT 447 Tax Description (Nate:Nat to be used an legal documents) Deed BooWPage Contract Book/Page Gross Acres 000 Net Acres 000 Class E-Exempt and State Assessed (Note:TMs[star tax purposes only,Natto be used Nr aning) District DUBA-DUBUQUE CITY/DBQCOMM SCH Rkool District DUBUQUE COMM SCHOOLDIST Owners Deed Folder Legionnaires Drum&Bugle Corps Inc D/B/A Colts Drum& 1101 Central Ave Dubuque IA 52001 Contract Folder MailingAddress Legionnaires Drum&Bugle Corps Inc D/B/A Colts Drum& 1101 Central Ave Dubuque IA 52001 Land Lat Dimensions Regular Lat 10240x10000 Lot Area 024Acres:10240SF Commercial Buildings Building l: Stare-Retain Small l Story Bullt 1949,100]9 S5 Bsd 0S Condition Normal Valuation 2016 2015 2014 2013 Classlficaton Exempt And Droo Antl Droo Antl Exempt And Sta[eAssessel State Assessed State Assessed StateAssessed ♦ Assessed Land Value $291400 $291400 $291400 $218350 ♦ Assessed Building Value $189,910 $189,910 $1891910 $0 ♦ Assessed Dwell Ing Val ue $0 $0 $0 $0 - Gross Assessed]Value $219,350 $219,350 $219,350 $219,350 - ExemptValue ($219,35 ( ($219,350( ($219,350( ($219,350( btlpellbeacreate schnelde:mm mmlApph cation And?ApplB-93&IayedB-924FPageTy pelRlFPageID-A3&Q-2080406l24&KWValue,1024456010 lf3 NiG016 Beacon-Dubuque County - Net Assesse!Value $0 $0 $0 $0 Taxation 2014 2013 ♦ Taxable Land Value $0 $0 ♦ Taxable Bulldic Value $0 $0 ♦ Taxable Dwelling Value $0 $0 - Gross Taxable Valu $0 $0 - MIIltaryCretllt $0 $0 - Net TaxableValue $0 $0 x levy Rate(per$1000oPoZIueI 3301933 3302504 - Gross Taxes Due $OW $O.W - Be Land Credit $000 $000 - Family Farm Credit $000 $000 - Homestead Credit $000 $000 - Disabled and Senior Citizens Crack $000 $000 - Business Property Credit $000 $000 - Net Taxes Due $OW $O.W Pay Property Taxes CRrY M1crctn cotcrtM1c(:nnnbTrmenmTewcM1 eRc. County Treasurer Notes PrellminareAssessment SRF Green Alley Bld Set 2-Year 3$2940.21 Tax History Year Due Date Amount Paw Date Paid Receipt 2014 March 2016 $0 No 293681 September 2015 $0 No 2013 March 2015 $0 No 211164 September 2014 $0 No Photos INsAeamnbet scbnelaercorP comlApossion aspx2ApplD-93alaverlD-39z ageTVPelo=4aaygelD-�3&0-2MM61298ueovawl02mrb0l 0 ]lj 4A 2016 Show Deed/Contrail Daabx_Dx�nxaCo�2,ln Show ched/Contaa V ew Map View Ma CIokhere totsSt duty the new lost man Site Sketches 102 89 BRIPTILE OC 000791 11 by Nodaa awitable torthe folloving mod bids:ReAAendaI Dee III has �tlwlcual BuIIAI has,Yard Elias,Sales,Tax Sale Cenlfiares. The lnformaton lnthis web she represents current datafrom a workingfilewhlcb is updated regularly, Informaton is believed rel lable,but Its accuracy cannot beguaanaed No warranty expressed or Impl led Is provided for the data hereon or Its use. CY ce.lemd by TAe 5,h,,de,Cx,ryn[ba hdras weaconearesd,xamarcommm,rogmslxxasonronm-maawdoaasaagaTrodD-asaaamsiao-aaommaaxavvllue-10295®10 32 THE CITY OFrte,,,, Dubuque DUJBE All-AmericaCity Masterpiece on the Mississippi 2007-2012•2013 TO: Michael C. Van Milligen, City Manager �Ww FROM: Marie L. Ware, Leisure Services Manager���"'" SUBJECT: Potential Uses of Space-Colts Building Next to Multicultural Family Center DATE: March 24, 2016 INTRODUCTION The purpose of the memorandum is to share information to questions you posed related to potential use(s) of the Colts building next door to the Multicultural Family Center (MFC). DISCUSSION At a recent meeting you requested that I meet with MFC Director Farris Muhammad and Assistant Director Sarah Petersen. You asked that we discuss if the Colts building space was available how we would use the space and would it be useful. This is a summary of our discussions. The overall footprint of the building is large. We have only seen the large open space in the front and the current offices which are not very big. There currently is a little stage and concession. There was a bigger portion of the building none of us has seen but by the footprint we know there is more. In discussing how the space would and/or could be used if it was available to the MFC, we came up with the following is a synopsis: • Education, seminar, lecture space with discussion areas— the Board is discussing education as a priority. They began with several educational session in the last 6 months and are looking at their next steps in this area. • Performance area with a small stage. o Events like the Black History Month capstone could be held on site versus another venue. o Open mic performances o Showcase dance groups and their performances • Dedicated dance and music room set up with mirrors and appropriate sound equipment. These programs have been a mainstay of the cultural programming for both youth and adults since the Center opened. It would be best to have better air circulation because when they work out with a dance or other physically active class the room can get a little smelly. • The Board has had discussions of music programming and music room as it relates to cultural programming. An idea beyond that is to then move into having a music studio for kids to learn about music and other production methods. This has been done very successfully in other communities and non-profits. • Power of word - spoken word programs could use a stage and gathering area. This in the past has been done at other local venues as well. • Cultural nights — ie. Dubuque culture night - euchre, turkey and dressing sandwiches could be new showcased programming in expanded space. • Cafe type tables would encourage for gatherings and meeting of other persons, relationship building • Preschool age cultural programming. This is an area that has been requested by the public recently. • Additional meeting space for community, city, and MFC meetings. There are numerous times when requests cannot all be met. For example the meetings of cultural groups (LULAC, Black Men's Coalition, City Life, Circles, Indian community, MBK, LGBT, AA, etc). With MFC programs taking first priority the cultural groups schedule around programs and sometimes there needs cannot be met. o Cultural groups are not always good on time so that means if a meeting is meant to start at 6, it might not start until 6:30. Additionally they at times are not as good about ending times either. This can cause concerns when you transition and have one meeting after another. With more rooms one could accommodate the groups much better taking this in to account. We make it work now but is a challenge at time. • Dedicated kitchen, cooking space that has demonstration cooking area. Many programs end up revolving around cooking or food. The kitchen currently is small and has limited capacity for demonstration and/or working together on food preparations. The teen program as well as numerous cultural programs and Future Talk work with food aspects. • Mock trial, career fair or larger events, mini city expo are new ideas that could come in the future. • The opportunity to have storage on the main floor that could access from the alley to load it out for outdoor events would make events preparation much smoother. Right now take up and down the stairs to the basement to access most of the needed supplies for outdoor events. • The current front room has carpeting which is very nice and contributes to the homey feel, however with the number of food related events and activities would be nice to have an area that is much easier to clean up than carpeting. Having an area where messy type activities such as gardening groups and teens can be messy if that is what happens. • Dedicated room for the teens and their programming. • The Board at times has talked about reaching out to seniors more. This could be an area that could be considered for programming more specific to seniors. 2 • The current largest conference room has a lot of use and in the planning for the 2na level renovation it was suggested that making that room bigger would help with some of the programs that are squished in to that space. • During cultural spice nights the front room is at capacity and it is capped for how many can attend the event. The fireplace and support beam make programming in the space a challenge, although everyone makes it work. • Dedicated "Culture Awareness" education classroom with "Dubuque Culture" display; possibly partner with Dubuque Historical Society; Dubuque culture includes Dubuque African-American history, Latinos, Marshallese + other cultures; example the project/display we are currently working on with the Alternative Learning Center (ALC) related to Ruby Sutton. • Social justice room. This is just a quick idea that as yet hasn't had a lot of thought put in to it. These are possibilities discussed without knowing the entire footprint of the building, just knowing it is bigger than we have seen. Just as a reference, I went on line to check the size of the building. The Colts building is 10,079 square feet. The main footprint of the MFC is approximately 6600 square feet. The MFC upstairs as you see from the aerial is about 1/3 of the main floor footprint. We all agreed the space would be very useful in programming that has expanded space that allows a greater variety as well as more space for events currently being held. The building is quite often at capacity with the three rooms all full and a small group meeting in what used to be the AmeriCorps room. They "pack the house" which is a great sign of success. ACTION REQUESTED This information is provided for information purposes only. Let me know if you need additional information. cc: Farris Muhammad, Director MFC Sarah Petersen, Assistant Director MFC 3 6 lu a ` a O O C C C>. � W a Q a 21 Ln Lu Jj) cn m C cn b � c- w CL o .m-. r m r� C 2` U) bA LO 2 5` A N OLOO O O; 'Itm § SF N Lq tlO' t Y . Beacon - Dubuque County, IA Page 1 of 3 Tri 1V, n Dubuque County, IA Summary Parcel ID 1024456010 Alternate ID 3-7-3-8 Pro ert Address 11010ENTRALAVE DUBUQUE IA 52001 Pio Sec/Twp/Rng N/A Brief S 2/5 CITY LOT 447 Tax Description y (Note:Not to be used on legal documents) Deed Book/Page Contract Book/Page Gross Acres 0.00 Net Acres 0.00 Class E-Exempt and State Assessed (Note:This is for tax purposes only.Not to be used for zoning.) District DUBA-DUBUQUE CITY/DBQ COMM SCH School District DUBUQUE COMM.SCHOOL DIST Owners Deed Holder Legionnaires Drum&Bugle Corps Inc D/B/A Colts Drum& 1101 Central Ave Dubuque IA 52001 Contract Holder Mailing Address Legionnaires Drum&Bugle Corps Inc D/B/A Colts Drum& 1101 Central Ave Dubuque IA 52001 Land Lot Dimensions Regular Lot:102.40x 100.00 Lot Area 0.24 Acres;10,240 SF Commercial Buildings Building 1: Store-Retail Small,1 Story,Built-1949,10079 SF,Bsmt-0 SF, ,Condition-Normal Valuation 2015 2014 2013 Classification Exempt And Exempt And Exempt And State Assessed State Assessed State Assessed + Assessed Land Value $29,440 $29,440 $219,350 + Assessed Building Value $189,910 $189,910 $0 + Assessed Dwelling Value $0 $0 $0 = Gross Assessed Value $219,350 $219,350 $219,350 httnQ•//hearnnhPta -,Aniidi-ronrn onm/Annlionfinn nQnv9AnnTTI=QZRJT avarTF)=Q?QVTPna,-T 11/0'2/0()1A Beacon - Dubuque County, IA Page 2 of 3 2015 2014 2013 Exempt Value ($219,350) ($219,350) ($219,350) Net Assessed Value $0 $0 $0 Taxation 2014 2013 + Taxable Land Value $0 $0 + Taxable Building Value $0 $0 + Taxable Dwelling Value $0 $0 Gross Taxable Value $0 $0 Military Credit $0 $0 = Net Taxable Value $0 $0 x Levy Rate(per$1000 of value) 33.01933 33.02504 = Gross Taxes Due $0.00 $0.00 Ag Land Credit $0.00 $0.00 Family Farm Credit $0.00 $0.00 Homestead Credit $0.00 $0.00 Disabled and Senior Citizens Credit $0.00 $0.00 Business Property Credit $0.00 $0.00 = Net Taxes Due $0.00 $0.00 Pay Property Taxes Click here to enter the County Treasurer's web site. County Treasurer Notes Preliminary Assessment SRF Green Alley Bid Set 2-Year 3$2940.21 Tax History Year Due Date Amount Paid Date Paid Receipt 2014 March 2016 $0 No 293681 September 2015 $0 No 2013 March 2015 $0 No 211164 September 2014 $0 No Photos https://beaconbeta.schneidercorp.com/Application.aspx?AppID=93&LayerID=929&PageT... 3/23/2016 Beacon- Dubuque County, IA Page 3 of 3 Show Deed/Contract Show Deed/Contract View Map View Map Click here to test drive the new beta man site Sketches 102 89 1S BRKITILE 100 [10079] 11 11 91 Sketch by .cwnavi-.im.cs No data available for the following modules:Residential Dwellings,Agricultural Buildings,Yard Extras,Sales,Tax Sale Certificates. The information in this web site represents current data from a working file which is updated regularly.Information is believed reliable,but its accuracy cannot be guaranteed.No warranty,expressed or implied,is provided for the data herein or its use. Last Data Upload:3/23/2016 5:53:28 AM �� Developed by Schneider The Schneider Corporation httn-,-//heacnnheta_Pchneirlerrnrn cnm/Annlicntinn 101/x()1 F THE IOWA STATE BAR ASSOCIATION C.J.May,III ISBA#000008346 FOR THE LEGAL EFFECT OF THE USE OF Offtclal Form No.104 THIS FORM,CONSULT YOUR LAWYER 20DD MSR 22 PF9 3 4 2970--40 H, i!;iJ,l.J`r COU"i Y FECORDO, pp O,JuGUE Co..1011A FEES / Inrforrmation C.J.May,III,1112 Iowa Street,Dubuque,(319)588-8696 Individual's Name Street Address City Phone �Twr` Colts Drum & Bugle Corps, 1101 Central, Dubuque, IA 52001 SPACE ABOVE THIS LINE o WARRANTY DEED FOR RECORDER P t��; (CORPORATE GRANTOR) For the consideration of Ten Dollar(s)and other valuable consideration, Sunny,Incorporated a corporation organized and existing under the laws of the State of Iowa does hereby Convey to Legionnaires Drum&Bugle Corps,Inc.d/b/a Colts Drum&Bugle Corps,an Iowa Corporation the following described real estate in Dubuque County,Iowa: South 2/5th of Lot 447 in the City of Dubuque,Iowa,according to the United States Commissioners'Map of the Town of Dubuque,Iowa REAL ESTATE TRANSFER TAX PAID STAMP# tcav, ff urtowl RECORDER I ZW --31•DUbu rq_re DATE COUNTY The Corporation hereby covenants with grantees, and successors in interest, that it holds the real estate by title in fee simple; that it has good and lawful authority to sell and convey the real estate; that the real estate is free and clear of all liens and encumbrances, except as may be above stated; and it covenants to Warrant and Defend the real estate against the lawful claims of all persons, except as may be above stated. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number,according to the context. Sunny,Incorporated an Iowa=rvoratjon Dated: March 21, 2000 gyA�el. ,President Title By Title STATE OF IOWA _ DUBUQUE COUNTY,ss: On this 27 t day of March. 2000 before me,the undersigned,a Notary Public in and for said State,personally appeared Jeanne A.May Is and to me personally known,who being by me duly sworn,did say that they are the President and , respectively, of said corporation; that (no seal has been procured by the said) ( corporation that said instrument was signed farad--sealed on behalf of said corporation by authority of its Board of Directors;and that the said Jeanne A May and as such officers, acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, b it and executed. by them voluntarily � (� Notary Public ®Th.Iowa Stale Bar Assaaation 104 WARRANTY DEED(CORPORATE GRANTOR) iOWA00CS-159 RaviseC January,less bubea I dubuque zoo West 2nd Sheet Dubuque,Iowa 52001 563 552.2864 SELSER SCHAEFER ARCHITECTS Date. 9 May 2016 Project MFC Improvements Phase II Number. R14.091 Memo From. Andrew McCready Re. 1101 Central Avenue Building Assessment(Colts Building) Mane, On the afternoon of May 4u, 2016 Selser Schaefer Architects performed a visual assessment of the interior, exterior and roof of the building located at 1101 Central Avenue. We walked the premises, confirmed the existing conditions with the provided as-built floor plan and had a discussion with Jeff MacFarlane on the building historyand how the building performed for the Colts Youth Organization. Below is a description of our findings along with a conceptual space plan on how the building could be utilized for the Multicultural Family Center(MFC), Human Rights Department(HRD) and other functions for The City of Dubuque. The exterior brick and limestone appear to be in good condition with minimal repointing and/or cleaning needed to restore the fagade if desired Exterior lighting should be updated/restored. The glass storefront system along Central Avenue appears to be non-insulated, single pane glazing with an aluminum plate/U-channel system that could be replaced with a high efficiency glazing system if increased building performance is desired. The current membrane roofing system was installed in the fall of 2013 with a 1 Yz" insulation board and included a 15 year warranty. The membrane appears to be in good condition and the roof shows minimal areas of ponding. The observed ponding was concentrated around the RTU support structure. The interior building is similar to the 1999 remodel plans provided by the owner with minor deviates and adjustments over the past 16 years. The interior is in fair condition and our recommendation is that a complete removal of all the partition walls, finishes and ceiling systems be removed. The current finishes have not been maintained, are dated and would not meet the MFC or HRD needs. The current restrooms do not meet ADA and would not meet current plumbing fixture requirements by code. The building systems were not reviewed in detail, but appear to be in fair/good condition. The cost opinion will include allowances for Mechanical, Electrical and plumbing work associated to the renovation and a contingency allowance for un-knowns since these areas were not reviewed in detail. The building currently is not sprinkled and one will most likely need to be added to meet current codes. Items/Concerns to consider... 1. Depending the final layout of the building and total occupant load an additional exit might need to be added to the rear or through the existing MFC building to provide adequate exiting needs. Pagel of 2 2. A sprinkler system will most likely need to be added to the 1101 Central Ave. building and could be extended from the current MFC building depending the final building layout and if the existing infrastructure for the MFC fire suppression system can support the additional load. Design considerations... 1. The existing structure and column grid provide the potential to have large, open, flexible multipurpose areas that could be a great benefit to the MFC and other city activities. 2. The roof framing consists of large wood bow string trusses and 2x12 wood rafters spanning between trusses. These are located on the column grids with one larger rafter/brace located at the mid-span of the truss on the bottom cord to brace each truss. The ability to expose these would great a dynamic and vibrant environment for all the MFC programs and events. 3. It appears the original building had a tin ceiling that was recessed into the bow string trusses and creating a rectangle pattern matching the column/truss spacing. It appears that about 1/3 of the tin ceilings have been removed and about Yz of the remaining tiles have been damaged. The design goal would be to salvage the good remaining tiles and reuse them in groups of public areas and show case the historyof the building. 4. Overall this building could improve and expand the MFC programs and provide space for additional city programs and events. 5. The Demonstration Kitchen noted on the concept plan would include a commercial grade sink, dishwasher, oven and range and is included in the cost opinion noted below. The existing MFC standup refrigerator/freezers would be relocated and utilized in this area. If a commercial kitchen is desired for food service at events, etcthere would be an additional cost to upgrade and add additional equipment to meet those needs. Design Statement for attached Concept Plan Since the interior of the 1101 Central Ave. building needs to be completely renovated I approached the building as a "blank slate" for interior planning to maximize the flexibility of the space for the MFC, HRD and The City of Dubuque. After reviewing the existing 1101 Central Avenue floor plan, the existing MFC floor plan, the proposed additional MFC program needs and the proposed HRD program needs I have created the design goals below that lead to the creation of the attached plan. 1. After reviewing the existing spaces and the program it made sense to explore the option of locating the HRD in the existing MFC building and locating all the MFC functions within 1101 Central Ave building. 2. Use the structure and grid to organize the space planning for the 1101 Central Ave. building. Cost Opinion Renovation of existing MFC building for HRD....................1,600 SF x$30= $48,000.00 Interior Renovation of 1101 Central Ave Bldg....................9,700 SF x$90=$873,000.00 'Operable wall partitions for event spaces.... ....140 LF x$700=$98,000.00 Exterior Elevation improvements to 1101 Central Ave Bid....4.500 SF x$20= $90.000.00 Grand Total .........$1,109,000 00 'This exercise excludes any work associated to the 2 n floor of the existing MFC Building Sinceerel�y, Andrew McCready AIA Principal Page 2 of 2 { Building Services Department HE CITY OF Dubuque 50 West 13th Street krAnd F Dubuque,Iowa 52001-4805DUB L All AmedcaCity Office(563) 0-668589-4150 Fax(563) 690-6687 � TTY(563)690-6678 building@cityofdubuque.org Masterpiece on the Mississippi 2007.2012.2013 www.cityofdubuque.org TO: Michael C. Van Milligen, City Manager FROM: Todd Carr, Building Services Manager SUBJECT: 1101 Central Avenue, Dubuque Colts Building Assessment DATE: May 3rd, 2016 Introduction: The purpose of this memorandum is to provide you with a report on the overall condition of the building located at 1101 Central Avenue in Dubuque Iowa, currently owned by the Dubuque Colts. Background: This building was constructed in 1949 and the lot size is 102.4' wide by 100' deep. This building has no basement, was constructed on footing with foundation walls and a poured slab. This building would basically yield just under 10,000 usable square feet. Discussion: See Below Assessment Report Property Address: 1101 Central Avenue Exterior Assessment: The Roof was replaced in 2013 and has a 15-year transferable warranty, the product is a white rubber membrane made by firestone. The interior side of the parapet wall above the roof is in above average condition with little or no tuck-point work required currently. The cap on the parapet wall is also in above average condition and I see no maintenance work required on this for the next 10 years. The roof water all drains to the rear of the building, the gutters were installed new in 2013 during the roofing project and are in above average condition. The exterior brick walls and stone areas are in above average condition, I see no signs of any immediate tuck-point work required, I would recommend putting tuck-point or repair work on a 5- year cycle for inspections and repair, routine maintenance is best to avoid major defects or complete re-pointing of the entire building if neglected. Service People Integrity Responsibility Innovation Teamwork i There are 3 steel exterior doors, two on the rear of the building, and one on 11th street side, these are all in average condition, they may need to be replaced depending upon how we were to remodel the building in regards to fire ratings and hardware style. The Entry way doors which consist of the two main entry doors leading into the breezeway area and then two more entry doors into the building with fixed glass frames around the doors are in below average condition, all would need to be replaced. The cost to replace the entire entryway with new doors and glass would be between $7,000 to $9000. The windows across the front of the building are also in below average condition and will need to be replaced as well, this would cost roughly $25,000 to $30,000. The 11 th Street side has two very small opening that have been covered up with sheet metal, these openings have stone sills on the bottom so I'm not sure what they were originally used for, window openings or ventilation openings. The 11th Street side also has what appears to be an old fill tube line with a cap on it which may lead to an underground storage tank, potentially used for fuel oil at some point. We would want to have this looked at and inspected prior to purchase to identify what it was used for, any leaks, and condition of the tank if it exists and if it's empty or not. Off the rear of the building in the alley it appears we have 3 water stop boxes which are providing 3 separate service lines to the building, there is on sewer manhole cover which shows one sewer lateral leading from the building. I would recommend having the lateral inspected to see what type of condition it's in, also I would inspect the type and condition of the water lines. Just north of the entryway on the Central Street side there is one sidewalk slab section that has settled back towards the building, I would recommend having this replaced. All other sections of the public walk are in average condition currently. This Building has a rooftop Carrier furnace which was installed around 2002, this would need to be taken into consideration for replacement in the next 5 years or sooner depending upon the extent of the remodel work taken place. There is also one central air conditioner unit on the roof which feeds the current office space inside the building, this unit is in poor condition. A complete replacement of the HVAC systems will be needed more than likely at the beginning if we did any type of serious remodel or renovation work inside. This would also include all ventilation improvements that would need to be done for the restrooms and the kitchen area if it was kept. The price will need to be determined by the design of the entire floor plan to determine the cost. i i Interior Assessment: The interior of the building is aged in all aspects in regards to the flooring, walls, acoustical ceiling materials, etc. The building I would assume would be for the most part gutted out on the interior down to the framing and existing ceiling material so it could be remodeled to the layout we desired. This would include the need for the restrooms to be completely gutted and remodeled as well, and the current kitchen area. The Hot Water Heaters will need to be replaced to accommodate our renovation plans. The Electrical Service has seen major upgrades and is in above average condition and I believe there is sufficient amount power to accommodate are intentions during the renovation work. The building could be completely opened up to one large space, there are structural post that support a beam running down the middle of the building from front to back, and these posts are on 16'6" centers. The original ceiling height was 12' from the floor to the tin ceiling, the drop ceiling material is around 11'. The total cost of the interior renovation work will strongly depend upon the design and how we anticipate using it and if a kitchen area is needed or not. A meeting is scheduled on May 9t" to meet with Selser Schaefer to go over the design concept for this building, based on this we can produce renovation costs. Energy Assessment: The current monthly utility bill.averages are below: Alliant Energy Electric: $1152.99 Black Hills Energy Gas: $477.17 City of Dubuque Utility Bill: $127.37 Storm Water Fee: $14.00 Conclusion: The exterior of the building is in sound condition and I would say above average condition and well built. The interior of the building would need to be completely renovated and gutted down to the shell in order to accomplish are intentions more than likely. Action Step: I would recommend having a design put together first of how the interior space is going to be utilized, then put together projected construction costs based on the design. Then analyze the purchase cost added to the construction cost to see what our total investment would be prior to making a purchase offer on this property. Additionally I would request inspections on the items listed above prior to entering into a purchase agreement, in regards to the potential underground storage tank, sewer and water lines, and an asbestos inspection. Cc: Marie Ware i MulticulturalFAMILY CENTER rte.-+ . • ' . f DUBUQUEThe Ruby Sutton Building �' # - _ a � y,, •'sam'�' Y ^6 1 b III'koImv annual / = rep ort 20 5 Building unit out of 1157 Central Ave I Dubuque, IA 52001 1 563-582-3681 1 info@mfcdbq.org I www.mfcdbq.org f /MulticulturalFamilyCenter W @mfc_dbq M M Dear Friends : The following pages show how many ways Dubuque's of Dubuque's transgender spokespersons about the challenges faced everyday by Multicultural Family Center is a vibrant, innovative, members of her community. In all these ways,I have deepened my multicultural awareness and understanding,without being charged a fee and without leaving and growing contributor to our city's quality of life. Dubuque. The MFC's mission to empower all Dubuque families and community members You can do all this,too! In the pages that follow,you will read about and see to reach their potential and to build unity out of diversity has taken on special photos of the people involved in many of these events and programs. You can significance as the City continues its national award-winning Inclusive Dubuque also follow us on Facebook(www.tacebook.com/MulticulturalFamilyCenter)and by initiative. As local businesses,educational institutions, religious organizations, visiting our new website(www.mfcdbq.org). and nonprofits have networked to enhance inclusiveness,the MFC continues to be the"go-to" public/private partnership to help incubate,support,and host We hope this Annual Report helps you experience some of the energy and multiple cultural events and programs. excitement of the MFC,and encourages you to be a part of it. There are opportunities for you to help host events,to create and offer cultural In 2015, under the leadership of Interim Director Sarah Petersen,the MFC served programming,to volunteer for programs,to join one of the MFC's operating more community members,offered more programs,attracted more corporate and committees,and to support the MFC financially. individual investors,and,as a result,enriched more lives than ever before. Our home in The Ruby Sutton Building at 1157 Central Avenue is a great place Over the past several months,for example, I have learned through MFC events to share with people like you,enjoy and learn from people who are different from and programs that weddings in India are opportunities for thousands of guests you,and help weave the rich cultural tapestry that is greater Dubuque. Drop by to to celebrate over a five-day period. I have watched a dozen Marshallese women see our new"Ruby Sutton" and "Cultures of Dubuque"displays and to meet our dance to indigenous music in flowing blue-green gowns that they fashioned with friendly staff or join us for one of our programs or events. fabric provided bythe MFC. I have been inspired by almost 50 African American teenagers energetically engaged in resume development,leadership training, With sincere appreciation, and mock interviews to prepare them for summer jobs. I have learned from one Dr.John Stewart, President Public/Private Partnership The Multicultural Family Center(MFC) is a 501 (c)3 nonprofit organization. The MFC and the City of Dubuque Leisure Services Department have a partnership agreement whereby the City provides one full-time and three part-time staff,the facility,utilities, and custodial services. The MFC's Board of Directors are responsible for funding programs and events go - through community donations and grants. Thank you to the Board of Directors and the City Dr.John Stewart Marie Ware President City of Dubuque of Dubuque for their commitment to the mission of the Multicultural Family Center! Leisure Services Manager B 0 A R D O • Doug Stillings Chris Johnson Abhay Rawal Claudette Bees Beverly Berna Grant Cirks Bang Lang Do Vice President Secretary 2016 Treasurer Past Treasurer MAI EmIlart-_ 1 Dr. Mary Gatuci Doug Henry Kelly Larson Luis Roicis Willie Slayden Scoff Thiesen Marlene Woller Sta & Volunteers to Vyam.1,1 •11/ Dora Serna Marrichelle Glover Chris Weaver Kelsey Rusk Sarah Petersen Dr. Farris Muhammad Interim Assistant Site Supervisor Site Supervisor Interim Site Supervisor 2015 Interim Director 2016 Director Director (2016 Assistant Director) In 201*over 210 MFC CommunitAn onated e�E""�9 MERICORPS PARTNERS IN their time and talents, contributiRNING CONTRIBUTED Volunteer positions include: Board of Directors, Board Committee TO THE MFC! Members, Childcare Providers, Computer Technicians, Event Ilyson Bergthold Volunteers, Event Committee Members, Program Instructors, Teen Will Ebron Night Assistants, and Tutors. Matt Esser Becca Fischer 2015 YEAR-ROUND VOLUNTEERS (in addition to board members listed on page 3): Peter Herber Erin O'Donovan Geovanni Almanza Garrick Johnson Michael Quam Tara Velez Molly Trannel Nick Anderson Jared Levy Emily Riniker Mel Wright Yvette Bahena Dana Livingston Natalie Riniker Adam Zimmerman Lenny Behnke Cody Moore Becky Sees Kelli Buchenau Jerelyn O'Connor Peter Smith Our Mission , ► The Multicultural Family Center (MFC) empowers all families and community members of Dubuque to reach their potential and build unity out of diversity. Our Vision ` The MFC envisions a welcoming Dubuque built on a foundation of understanding and collaboration across racial, ethnic, and socioeconomic groups committed to producing engaged families and community members. Our Primary Goal The MFC's primary goal is to be a location for, and model of multicultural learning in the Dubuque community. We pursue our mission, vision, and goal • Programs . promote 11 '.rning * Celebrations of culturally-significantdays • Events that showcase 1 Programs th. '. culturally-dcontent PROGRAMS THAT PROMOTE s LONG _ ILRM 4 t Future Talk: Environmental Education, Employment, Service Future Talk is an eight-week summer program Teens are taught critical employment skills, how to open/maintain for teens with an emphasis on a bank account and save money, how to work in a natural environment, and the importance of being engaged citizens • Environmental education participating in community service projects. They can also obtain • Employment/financial literacy high school credit and earn up to$1,000 each. • Community service Restoration of environmental sites and beautification projects *. include Mines of Spain,Swiss Valley, and City of Dubuque parks including painting a mural at Jefferson Park. Community z service projects include Dubuque Rescue Mission,Washington " Neighborhood Garden,Jackson Park, Comiskey Park, and the T _ Downtown and Washington neighborhoods. Y s � tea•, _ .� \ err �M PROGRAMS THAT PROMOTE LONG - i -..- RM 2015 FUTURE TALK PROGRAM SUCCESS Graduates/Participants 2015 19 23 2014 12 20 ' 83% of participants completed the program, a 23% increase! Stipends Paid to Teens 2015 $18,800 = An additional $9,000 laid directly to teens, a 92% increase! 2014 $9,800 Savings Match 2014 2015 5 65% graduates maintained funds in their bank account, imeiving a financial match thanks to a contribution through the Community Foundation of Greater Dubuque. EpI PROGRAMS THAT PROMOTE LONG -TERM LEARNING ( Teen Nights Road to Success Teen Employment Program Every Wednesday night,teenagers gather at the MFC for dinner and teen 40 teens learned professional leadership and employment skills, including empowerment activities, including presentations on teen topics,guest resume building, mock interviews,and professional appearance. Partners included: speakers,field trips, environmental education, and academic and career Black Men Coalition, City of Dubuque Recreation Division and Human Rights development. The MFC is a place Department, US Bank, United Way,John Deere,and Society of Women Engineers. forteens to hang out and interact t in a safe,organized environment where staff and community John Deere Career Teen Night members build relationships and 25 youth In grades 8-12 joined us fora special Teen Night with encourage teens to reach their full representatives from John Deere Dubuque Works. John Deere employees shared potential. information about careers in welding,assembly,and instrumentation through hands- 10 teens participated on, interactive displays including a welding simulator. Northeast Iowa Community in 2015. College(NICC)also provided information on courses and programs offered to prepare students for these fields. PROGRAMS THAT PROMOTE LONG -TERM LEARNING ; y Youth Tutoring Program Additional programs and events that promote 30y outh in grades 2-10 were matched with caring long-term learning: community members who volunteered theirtime providing free weekly • Computers forthe Community Carnegie-Stout Public Library academic tutoring and mentorship support. • Tenant Education Program Programming Partnership • Photography Camp 0 Beginning Chapters Book Club • Cheerleading Camp • Teen Tech Club • Reader's Theatre Camp • Manhood Project with Black Men Iowa State University Extension& Coalition Outreach Programming Partnership: • Dubuque Fire& Emergency Medical ' Juntos: Higher Education Awareness Explorers with City of Dubuque Fire& Program for Latino Families Rescue Department Lunch-N-Learn Gardening Series • Robotics 371 TOTAL PARTICIPANTS in programs that promote long-term learning! EVENTS THAT SHOWCASE 09MUMME11S DIVERSITY FLAVORS OF AFRICA TASTE OF THE WORLD 120 COMMUNITY MEMBERS learned Over 800 COMMUNITY MEMBERS " about and celebrated African culture through celebrated Dubuque's diversity with 21 homemade food, shared stories, dance, and food booths, 15 cultural performances (85 music. Clarke University professor Dr. Mary individuals), and 10 culturally-distinct Gatua provided an educational presentation children's arts/crafts activities. Community iii11 with local college students assisting. members had opportunities to meet people 1�+ Students represented Clarke University, Loras from various cultures and socio-economic College, University of Dubuque, and Divine backgrounds while enjoying food and Word College. The evening ended with a entertainment. The event was sponsored in drum circle, dancing, and singing traditional part by Dubuque Bank &Trust (DB&T). African songs. 10 r EVENTS THAT SHOWCASE I MMMUMMEII I WEE ' Additional events that showcase Dubuque's diversity: • Music in the Park • Spice:Cultural Cooking Nights featuring FLAVORS OF PHILIPPINES Africa Comes to Teen Night Mexico, Morocco,Syria, and U.S.A(0). MFC staff connected with the Tri-State FIL-AM (Filipino- Flavors of Guatemala • Divine Cultures with Divine Word College American)Association and created an event to celebrate LGBT+Variety Show featuring:Vietnam, Brazil,Mexico,Sudan, and learn about the Philippines through song, dance, and Haiti fashion, educational presentations, food, and conversations with elders in the Dubuque Filipino-American community. Over 120 COMMUNITY MEMBERS attended. ,W 1 ,716 TOTAL PARTICIPANTS in events that snumase Dubuque's diversity! CELEBRATIONS OF MA CULTURALLY-SIGNIFICANT DAYS __,, --� ; M JUNETEENTH SAUDI NATIONAL DAY MARSHALLESE CONSTITUTION DAY Held at Comiskey Parkin lune to commemorate Twenty students representing Saudi Celebration of the Republic of the Marshall the oldest known celebration for ending Students of University of Dubuque (SSOUD) Islands independence with traditional food, slavery in the United States,with a focus showcased and shared the culture of their music, and dance, as well as a bounce house on education and self-improvement. Ten home country on Saudi National Day. OVER and children's activities. Thanks to US Bank, community resource informational booths, live 30 COMMUNITY MEMBERS, including traditional flag dresses were hand made and Dl, dancing, and educational and UD professors, worn in a performance by Marshallese women. cultural performances entertained learned about Saudi OVER 350 PEOPLE ATTENDED. A CROWD OF OVER 350. til Arabian cultures and The event was sponsored in part traditions, including by: Ernest &Peggy Jackson, an educational Black Men Coalition, City of presentation, trying on Dubuque grant program, National traditional clothing, Association for the Advancement and sharing traditional 12 of Colored People(NAACP). food and coffee. CELEBRATIONS 1 C U LTU RALLY-SIGNIFICANT DAYS CINCO DE MAYO INDIA INDEPENDENCE DAY Event held in May at Jackson Park celebrating with live music, Community members originally from India, shared their culture and bounce house, children's games and Mexican food. LISA (Loras traditions on India Independence Daywith over 85 PATRONS. Intercultural Student Association) offered several activities for This fun-filled evening included authentic Indian food, Hollywood youth, and LULAC (League of Latin American Citizens) provided music, dance, Mehndi (henna tattoos), an educational presentation, trivia games and prizes. OVER 450 PEOPLE ATTENDED. games, and prizes from India. The event was sponsored in part by Sustainable Dubuque Community Grant program. I Additional events that showcase Dubuque's diversity: • Black History Month Celebration at Inspire Care 1 ,382 TOTAL PARTICIPANTS in celebrations Dia De Los Muertos/Halloween of culturally-significant days! • Hispanic Heritage Celebration with Loras International Student Association (LISA) 13 •S PROGRAMS • ' • 1 i 41 CULTURALLY- DISTINCT CONTENT �� ,�� Diversity Education Programs / Social Support Groups How to Deal with Difficult Difference Transracial Adoption Support Group Difficult difference happens when you're interacting with In addition to typical adoption issues, families adopting somebody who is culturally different from you, and the transracially(outside their racial group)will encounter cultural difference creates a problem. THIRTY COMMUNITY and racial challenges. MFC's welcoming environment provided MEMBERS participated in this interactive workshop facilitated opportunities for parents and children to get to know one by Dr.John Stewart and Tiye Sherrod. The groups learned another, offer advice and support, share their concerns and together about cultural identities, privilege, micro-aggressions, discuss situations specific totransracial adoption families. and a 3-part response option to difficult difference: Curiosity+ FIFTEEN FAMILIES now meet quarterly with engaged parents Humility+ Platinum Empathy. leading the planning process. 14 CULTURALLY- DISTINCT CONTENT LGBT+ Programs and Initiatives Fall Workshop LGBT+ Youth Network MFC staff partnered with Youth group meets weekly with four adult mentors providing LGBT+youth a LGBT+community members supportive and safe environment to build community, increase self-awareness, and and offered a community V develop stronger connections to the local community. THE PROGRAM SUPPORTS MFC Safe Zone workshop. Members of the m�..�..�,, 20+ YOUTH. LGBT+community and allies �� " " LGBT+Variety Show—Fall 2015, the youth group organized a variety show at The came together to discuss Smokestack. OVER 75 COMMUNITY MEMBERS ATTENDED with 12 cultural the state of the LGBT+community in Dubuque. performances. MFC staff hosted along with adult mentors. Workshop included a panel with community leaders in health, law enforcement, and education. Planning began to create LGBT+Safe zone "Those Who Care" Families & Allies Support Group Trainings for the community. THIRTY-EIGHT A quarterly community gathering for friends, families and allies of the LGBT+ COMMUNITY MEMBERS participated. community. 15 PROGRAMS • ' • 1 1 TEACH v+� f1. , CULTURALLY- DISTINCT CONTENT Additional programs that teach culturally-distinct content: • Hip-Hop Dance* • Open MIC: Cultural Expressions *MFC volunteer and John Deere engineer Garrick • Capoeira • French Cafe Language Club • Kung Fu • Spanish Language Johnson II offered 1 hip-hop dance programs. • Latin Dance • Movies in the Park 61 adults and 51 youth participated • Zomba • African-American Play Reading Club with Fly By • Broadway Dance Night Productions • Qigong • Behind the Beat Music Program with African- • Tai Chi American Museum of Iowa I • Rock Star Guitar Lessons • Influences of African Culture on American Music with Clarke University 625 TOTAL PARTICIPANTS in programs 16 that teach culturally-distinct content! COMPUTERS & r TECHNOLOGY Bridging the gap of the digital divide. Computers for Community Public Computer Lab Thanks to a partnership with City of Dubuque and Carnegie- To date, 201 families in need of technology have Stout Public Library,the MFC is equipped with seven computers received fully-functioning computer systems. with high speed, fully accessible internet and Wi-Fi. Computer • Monthly program provides free desktop computers to families in lab usage has increased and patrons appreciate increased need of technology, bridging the gap of the digital divide—the speed and fully accessible internet. gulf between those who have ready access to computers and the Internet, and those who do not. Basic computer training is provided which includes how to assemble computer, child e le-StOUt protection, and basic desktop operation. g®® ��7Parn UBLII®®C CLIBRARY Ck,,,L 9,,,eme /�O,W1c{z�t� O 17 Welcomin PACEi SUPPORT The MFC provides a welcoming and stimulating environment for community The MFC also: groups and organizations including: • Networks with Inclusive Dubuque as a Mission Partner • NAACP(National Association for the Advancement of Colored People to enhance its efforts with nonprofits, businesses and • The Dubuque Black Men Coalition educational institutions. • Dubuque for Refugee Children • Provides support to Dubuque Black Men Coalition with direct funding, programming and marketing supportfor • Circles Initiative/Getting Ahead Manhood Project and Road to Success for Teens. • Iowa State University Extension& Outreach • Offers "Movies in the Park" during summer months as • LULAC(League of Latin American Citizens) well as participates in National Night Out and Back to • LGBT+ Groups(Lesbian,Gay Bi-Sexual,Transgender) School Bash at Comiskey Park • Social workers and foster families • Partners with the "My Brother's Keeper" initiative. Marketing support is also provided through social media, MFC website and Leisure Services Activity Guide. Over 100 community meetings/events are held at the MFC annually. 18 r Supporting City of Dubuque COUNCIL GOALS Supporting City Council Goals to Enhance Social/Cultural Vibrancy and Partnering for a Better Dubuque - Social & Cultural Vibrancy n • Celebrating arts, culture and heritage TOG i • Supporting strong, vibrant and safe neighborhoods by offering many community I events in City of Dubuque parks a • Effectively informing residents of programs and services through technology Partnering for a Better Dubuque • Active Mission Partnerto Inclusive Dubuque • Provide resources and support to Dubuque citizen led groups and initiatives increasing civic responsibility • Engaging the community in projects and programs • Direct programming and event partnerships with 35+ organizations and businesses is Financials Demographics All data reflects 1/1/15-12/31/15 ,20000 USERSAdult 971 ,aaaao saaao Youth 1434 600°° = 2,405 total users 4aaao 4D 2aaao_ it 0 DUBUQUE'S DEMOGRAPHICS* CONTRIBUTIONS & EXPENSES Total Population— 57,637 Average Household Size=2.28 Female Population=51.6% Family Households=59.1% Male Population-48.4% Non-Family Households=40.9% Average Family Size—2.92 25% Median Age—38 Indirect costs Caucasian 92% African American 4% Asian 1% Direct Pacific Islander 0.5% Hispanic 2.4% American Indian 40 and Alaska Native 9% PROGRAMMING & EVENT *According to the 2010 U.S.Census 20 EXPENSES With gratitude. . . ` Community Donors Donor listing reflects contributions receipted from 1/1/15- 12/31/15 - $10,000+ Rotary Club o1 Dubuque(grant) $250 - $499 Anonymous Runde Auto Group Eric&Tara Anderson Sisters of the Presentation Richard &Donna Anderson $5,000+ John& Rebecca Stewart Chad& Laura Chandlee Dubuque Bank&Trust Sustainable Dubuque Community(grant) Dubuque Jaycees Community Foundation of Greater Dubuque(grants) Theisen's More for Your Community(grant) Terrance& Paula Friedman Prudential Foundation (grant) US Bank Foundation IBM Employee Services(Anonymous) Jim &Marita Theisen Lowell& Marie Ware Longshadow Foundation Ed&Susie Ritts Woodward Foundation (grant) Morrison Brothers PFLAG (Parents and Friends of Lesbians and Gays) $1,000 - $4,999 $500 - $999 Craig,Joan&Jonathan Schaefer American Trust&Savings Bank Choose Happy Foundation Andy& Debi Butler University of Dubuque Wrestling Team City of Dubuque Community Development Block(grant) Douglas Henry& Martha Fuerste Marlene WollerKendall Hunt Publishing Company City of Dubuque Neighborhood (grants) Kohl's Cares(grant) $100 - $249 Dubuque Racing Association Mystique Casino(grant) Sharon Kress Charitable Trust Anonymous Friends of Mines of Spain (grant) H. Freeman Associates, Janet Rhomberg Timothy&Claudette Bees LLC Ernest&Peggy Jackson Doug Stillings Beverly&Jerry Berna John Deere Construction& Forestry(grant) Chris& Pamela Theisen Edwin &Barbara Blinks Chris Johnson Tony&Sue Theisen Amy Boynton March of Dimes(grant) Westmark Enterprises Inc. Kenneth &Cheryl Buesing Mathis-Pfohl Foundation Thomas Woodward John& Regina Brennan Prudential Retirement Thomas&Joyce Connors River City Paving Boland Jewelers James&Judith Giesen 21 Community Donors (cont.) $100-$249(continued) $50 - $99 Jeramy Boutell Gifts Made to the Multicultural Family Nancy Gourley Anonymous Angela Breitspecker Center Endowment through The Community David &lane Heiar Ellen Acierno Diane Brotherton Foundation of Greater Dubuque Honig Charitable Foundation Harry&Mary Althaus Deborah Buol $50 - $100 Kane Appraisal Services Donna Barony Lisa Grinde Budzisz Alan&Susan Hattel Kelly&Darin Larson Nicholas Book Carmen Burds Daniel Knepper Eric& Linda Lucy Karla Braig Dawn Cogan Dr. R. Micheal& Diane Wertz Ernestine& Melvin Moss Kelli &Dan Buchenau Pam Connolly Rich&Sue Whitty NAACP-National Association for MaryloChapman PankajChugh the Advancement of Colored Mr.& Mrs.James Come Mark&Jennifer Dalsing People Barb Coakley Delta Kappa Gamma Society Sarah Petersen Jim& Penny Ehlinger Nancy Ehrlich Every effort has been made to provide complete and Susan Price Alan& Phyllis Garfield April Elsbemd accurate information;however, if you notice any Resurrection Church Social Justice Kim Goranson Fly By Night Productions discrepancies, please notify Sarah at(563)690-6042. River Lights Bookstore Michael& Kristen Igo Jeffry&Tammy Flynn Lynn &Robert Rusk Jerelyn O'Connor Lori Graves John& Donna Schmidt Rambo Oil/Kwik Stop Ric&Sue Jones Sisters of Charity of the BVM Luis Rojas Kristine Lubeck David &Sharon Speckhard Rachel Noll-Schueller Jeffry Kennedy r , St.Catherine/St. Donatus Parish Kenneth &Marlene TeKippe Jared Levy Churches Scott&Julia Theisen Dana Livingston Gil& Rebecca Spence Cynthia Nelms-Byrne Peter Smith $1 - $49 Abhay&Mindy Rawal Tandem Tire&Auto Service Anonymous Vivian Roberts Judith Wehrle Kristi Bagstad Arthur& Dianne Roche Isako Wersinger Chris Barnett Colin &Karen Scott Stephen &Marilyn Bell Tara &Diego Velez Karle Wigginton Sandra Beisker Susan Wilson r I 22 Business In-Kind Dubuque Rescue Mission National Association forthe Advancement of Colored Adam's Dance Connection Fly By Night Productions People(NAACP) AmeriCorps Partners in Learning Hy-Vee Northeast Iowa School of Music(NISOM) Black Men Coalition Inspire Cafe Northeast Iowa Community College(NICC) Body&Soul Wellness Center Inclusive Dubuque Prudential Retirement Bunker Hill Iowa State University Extension &Outreach Saudi Students of University of Dubuque(SSOUD) Carnegie-Stout Public Library John Deere Dubuque Works Society of Women Engineers City of Dubuque League of United Latin American Citizens(LULAC) The Smokestack Clarke University Loras Intercultural Student Association (LISA) Tri-State Filipino-American Assoc. Divine Word College Loras College Uncle Ike's Music Dubuque Area Chamber of Commerce Lowe's Home Improvement United Way Dubuque Bank&Trust Mediacom University of Dubuque Dubuque County Conservation Mines of Spain University of Wisconsin- Platteville Dubuque Museum of Art Mindframe Theatre US Bank Monk's Young Professionals Dubuque Come Join Us! Monetary donations are very much appreciated, but you can give in other ways too! MFC is a 501(c)(3) nonprofit. The Multicultural Family Center accepts donations of time, money and items The City of Dubuque generously provides our facility and staff, which throughout the year.We are always in need of volunteers for community allows for 100%of the funds raised by our Board of Directors through events, supplies forthe center,games,or any number of other options! grants and donations to directly support our programs and events. To make an online monetary donation or to view our current volunteer and Your employer might match your donation! donation needs, please visit our website at www.mfcdbq.org or call orvisit Many employers in the Dubuque area will match all or part of your the center for more information. tax-deductible donation! Contact your human resources department for details. Donations can also be made to ourendowment at the Community Foundation of Greater Dubuque. 23 Tele crry on � OYr DUB E DuBuQUE BANK ( W✓Prudential MMS ° AND TRUST � F/OME• FARM •AL/TO Masterpiece on the Mississippi 1157CentralAve I Dubuque,IA52001 1 563-582-36811 info@mfcdbq.org I www.mfcdbq.org f /MulticulturalFamilyCenter W@mfc_dbq