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Fair Market Value Finding Report_Hwy 151_61 Development LLCMasterpiece on the Mississippi Dubuque AN- AmedcaCily 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Bee Branch Creek Restoration Project, Purchase of Commercial Property DATE: June 1, 2010 City Engineer Gus Psihoyos recommends the City Council establish the fair market value of a 0.6373 acre parcel north of 16 Street owned by HWY 151 & 61 Development, LLC at the appraised value of $300,000, and authorize the City Manager to begin negotiations to acquire this property for the Bee Branch Creek Restoration Project. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer David Heiar, Economic Development Director / chael C. Van Milligen Masterpiece on the Mississippi BACKGROUND DISCUSSION Dubuque herd AI- America City r 2007 TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer DATE: May 28, 2010 SUBJECT: Bee Branch Creek Restoration Project, Purchase of Commercial Property INTRODUCTION The purpose of this memo is to establish the fair market value of property owned by HWY151 & 61 Development, LLC (HWY151) and seek authorization for the City Manager to begin negotiations to acquire the property required for the Bee Branch Creek Restoration Project. In December of 2004, the City Council established the alignment for the Bee Branch Creek Restoration Project, from 15th and Sycamore Streets to 24th and Washington Streets, and established a building permit moratorium for the properties impacted based on the alignment. The alignment established the properties necessary to be acquired for the Bee Branch Creek Restoration Project. On June 5, 2006 the City Council approved a development agreement (Development Agreement) with HWY151 that provided public financial assistance and other considerations for the redevelopment of the former Smithfield property on 16th Street. The terms of the Development Agreement between HWY151 and the City include the City's acquisition of 3.3 acres more or less of HWY151 property for the Bee Branch Creek Restoration Project. Field investigations were performed as part of the engineering associated with designing the Lower Bee Branch Creek Restoration Project. These investigations revealed that the existing sewer under the railroad tracks near Garfield Avenue was farther east than originally thought. As a result, the proposed railroad bridge for the Bee Branch Creek Restoration project must be shifted to the east which will require the acquisition of an additional 0.6373 acres from HWY151. The 0.6373 acres of the property currently zoned as Planned Commercial was appraised at $300,000.00, which is about $10.81 per square foot. RECOMMENDATION I recommend that the City establish the fair market value of the 0.6373 acres of HWY151 & 61 Development, LLC property north of 16 Street at the appraised value and that the City Manager begin negotiations with the property owner. ACTION TO BE TAKEN I respectfully request that the City Council adopt the attached resolution establishing the fair market value of the 0.6373 acres of HWY151 & 61 Development, LLC property north of 16 Street and authorizing the City Manager to commence negotiations to acquire the property. Prepared by Deron Muehring, Civil Engineer II cc: Barry Lindahl, City Attorney Deron Muehring, Civil Engineer II RESOLUTION NO. 171-10 ESTABLISHING THE FAIR MARKET VALUE OF CERTAIN REAL PROPERTY OWNED BY HWY 151 & 61 DEVELOPMENT, LLC IN THE CITY OF DUBUQUE, IOWA. WHEREAS, the City of Dubuque (City) intends to acquire certain real property owned by Hwy 151 & 61 Development, LLC (Owner), legally described as follows (the Property): Lot B of Riverview Plaza, in the City of Dubuque, Dubuque County, Iowa as shown on Exhibit A attached hereto for the purpose of the stormwater con associated with the restoration of the Bee Branch Creek; AND WHEREAS, Iowa law requires that City must make a good faith effort to negotiate with the Owner to purchase the Property before proceeding with condemnation; AND WHEREAS, City has caused an appraisal of the property to be made and the appraised value of the property is $300,000.00; AND WHEREAS, the City Council now desires to establish the fair market value of the property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Attest: 1. The fair market value of the Property is hereby established to be $300,000.00. 2. The City Manager is hereby authorized to commence negotiations with the Owner of the Property and any other interested parties for the purchase of the Property for a purchase price which is not less than the fair market value established by this resolution. Passed, approved and adopted this 7th day of June , 2.10. eanne F. Schnei•er, CMC City Clerk Roy D. Buol, Mayor EXHIBIT A PREPARED BY: IIW ENGINEERS dT SURVEYORS P.C, 4155 PENNSYLVANIA AVE, DUBUOUE, IOWA, (563) WEST LINE / RIVERVIEW PLAZA ACQUISITION PLAT LOT B OF RIVERVIEW PLAZA IN THE CITY OF DUBUQUE, IOWA POINT OF BEGINNING G! Z� U al LP. LP �� R SW COR IVERVIEW PROPRIETOR: HWY 151 & 61 DEVELOPMENT, L.L.C. PLAZA PREPARED FOR: STRAND ASSOCIATES, INC. DATE PREPARED: MAY 19, 2010 I HEREBY CERTIFY THAT THIS LAND SURVEYING DOCUMENT WAS PREPARED AND THE RELATED SURVEY WORK WAS PERFORMED BY ME OR UNDER MY DIRECT PERSONAL SUPERVISION AND THAT 1 AM A DULY LICENSED LAND SURVEYOR UNDER THE LAWS OF THE STATE OF IOWA. FOR IIW ENGINEERS R SURVEYORS. P.C. JOHN M. TRANMER LICENSE NO. 12631 DATE MY LICENSE RENEWAL DATE IS 12/31/2010 PAGES OR SHEETS COVERED BY THIS SEAL SHEETS 1 & 2 R‘ ...0101111111111,.... PZA ..1Haullllllmulll.. RAWN ARC NECKED JMT ATE 05 - 19 - 10 556 -2464 LEGEND PLAT BOUNDARY SET 5/8" IRON ROD W/ CAP NO. 12631 UK DEARING DISTANCC L1 NO3'50 "E 83.55' L2 NO213'27 "E 61.65' L3 NO3'29'35 "W 62.44' L4 N08'55'39 "W 62.10' L5 N16'20'35 "W 34.20' L6 N38'47'38 "E 30.76' L7 N41'25'38 "E 50.00' L8 N49'59'38 "E 47.63' NORTH GRAPHIC SCALE 0 100 200 1 =100' DRAWING MAY HAVE BEEN REDUCED IIW ENGINEERS & SURVEYORS, P.C. INTEGRITY. EXPERTISE SOLUTIONS 4!)r IXRWUEU IIAWEL CRISP. w1 6155 PENNSYLVANIA AYE. OURUOUR IA 12102 YOKE (567) 556.2666 PAX (563) 556.7611 wwwEwms.ao" PLAT NO. 27 —IA -10 PROD. NO. 06169 - SHEET 1 of 2 . \06 \169 \169- 03 \OWG \CVL \06169 -O4A SURVEYOR'S CERTIFICATE Sheet 2 of 2 1, John M. Tranmer, a Duly Licensed Land Surveyor in the State of Iowa, do hereby certify that the following real estate was surveyed and platted by me or under my direct personal supervision, To Wit: Lot B of Riverview Plaza in the City of Dubuque, Iowa, more particularly described as follows: Beginning at the Southwest corner of said Riverview Plaza; Thence North 23 degrees 45 minutes 07 seconds West, 356.59 feet along the Westerly line of said Riverview Plaza; Thence North 30 degrees 57 minutes 42 seconds East, 395.26 feet along a dimension line, to the Point of Beginning; Thence North 03 degrees 50 minutes 55 seconds East, 83.55 feet; Thence North 02 degrees 33 minutes 27 seconds East, 61.65 feet; 'thence North 03 degrees 29 minutes 35 seconds West, 62.44 feet; Thence North 08 degrees 55 minutes 39 seconds West, 62.10 feet; Thence North 16 degrees 20 minutes 35 seconds West, 34.20 feet, to a point on the Northwesterly line of said Riverview Plaza; Thence Northeasterly along said Northwesterly line of said Riverview Plaza the following three (3) courses: North 38 degrees 47 minutes 38 seconds East, 30.76 feet; North 41 degrees 25 minutes 38 seconds East, 50.00 feet; North 49 degrees 59 minutes 38 seconds East, 47.63 feet; Thence South 13 degrees 34 minutes 25 seconds East, 198.03 feet; Thence South 30 degrees 57 minutes 42 seconds West, 234.43 feet, to the Point of Beginning. Containing 0.637 acres, more or less, and subject to easements, reservations, restrictions, and rights -of- way of record and not of record, the plat of which is attached hereto and made a part of this certificate. Forth 633101 Parcel Number: Area 3 EMINENT DOMAIN VALUE FINDING REPORT Record Owner: Hwy 151 & 61 Development, LLC (c /o Steve Smith) Owner's Mailing Address: 137 Main Street, Dubuque, IA 52001 Address of Property being Appraised: Part of Parcel 1119101024 Project: Bee Branch Creek Restoration County: Dubuaue This propertyi is described as: Arca 3 as delineated on the exhibit provided by the City of Dubuque, Iowa. This property consists of 1,724,226 taxable SF before the acquisition. for highway purposes and 1,696,465 net SF will remain after the acquisition. Present zoning is PC, Planned Commercial Present use is vacant development land Appraised on the basis of highest and best use for Commercial Development before the acquisition and the same after the acquisition. MARKET VALUE UNDER EMINENT DOMAIN LAW OF THE STATE OF IOWA The estimate of just compensation* is: Signed: $ 300,000 Date of Valuation May 14, 2010 Form 633204 1 hereby certify: CERTIFICATION OF APPRAISER Parcel Number: Area 3 Project: Bee Branch Creek Restoration That 1 personally made a field inspection of the property herein appraised and that 1 have afforded the property owner or his authorized representative the opportunity to accompany me at the time of inspection. 1 have also personally made a field inspection of the comparable sales relied upon in making said appraisal. The subject and the comparable sales relied upon in making said appraisal were as represented by the photographs appropriately supplied. That to the best of my knowledge and belief the statements contained in the appraisal herein set forth are true, and the information upon which the opinions expressed therein are based is correct; subject to the limiting conditions therein set forth. That 1 understand this appraisal is to be used in connection with the acquisition of property by the City of Dubuque. That this appraisal has been made in conformity with Iowa law, regulation, and the Iowa Department of Transportation Appraisal Manual as is applicable to the appraisal of this type of property for the stated purpose; and that to the best of my knowledge no portion of the value assigned to this property consists of items which are noncompensable under the established law of the State of Iowa. That neither my employment nor my compensation for making this appraisal and report are in any way contingent upon the values reported herein. That I have no direct or indirect present or contemplated future personal interest in such property or in any benefit from the acquisition of such property appraised. That I have not revealed the findings and results of such appraisal to anyone other than the proper officials of the City of Dubuque and I will not do so until so authorized, or until I am required to do so by due process of law or until l am released from this obligation by having publicly testified as to such findings. That the conclusion set forth in this appraisal is my independent opinion of the difference between the fair market value of this property before and after the proposed acquisition. Signed: 44 - h.. 1 , gins J. l i r As of May 14, 2010 the estimate of just compensation is S 300,000 Date of Signature: May 17, 2010 Nor.e24- AL it rY, APP Form 633205 PURPOSE OF THIS APPRAISAL: To estimate thc market value of the ownership interest, and the leasehold interest if any, in this property before the proposed acquisition by the City of Dubuque and the market value of the same interest in the remainder property immediately after the proposed acquisition. In case the proposed acquisition causes only limited damage, the purpose is to estimate just compensation resulting from the acquisition, without reporting before and after values. This appraisal considers the loss in value, if any, of owncr's rights in advertising signs being acquired and is made without consideration of any enhancement that might accrue from the proposed improvement. DEFINITION OF MARKET VALUE: The cash price which would be arrived at as between a voluntary seller willing but not compelled to sell and a voluntary purchaser willing but not compelled to buy, both of whom are acting freely, intelligently and at arm's length, bargaining in thc open market for the sale and purchase of the real estate in question. (State of lowa Uniform July Instruction No. 14.4) DEFINITION OF HIGHEST AND BEST USE: The utilization of a property to its best and most profitable use. It is that use, chosen from among the reasonably probable and financially feasible alternative uses which is found to be physically practical, legally acceptable and which results in the highest present value, as defined, as of the effective date of the appraisal. HAZARDOUS SUBSTANCE CONTAMINATION: The appraiser observed the following signs of possible contamination: Noi FIVE YEAR DELINEATION OF TITLE: (1 f none, so state) Project: Bee Branch Creek Restoration Parcel Number: Arca 3 I As Eiribed Grantor Grantee Inst Type Inst Date Book & Page Sale Price Smith - Hurst, LLC Hwy 151 & 61 Dev., LLC WD 12 -06 -2005 2006 496 $500,000 JMC Gold Label Meats Hwy 15I & 61 Dev., LLC WD 3 -11 -2005 2005 3676 $3,400,000 LEASES: (Lessee's Name, Address and Lease Terms) None DATE OF INSPECTION AND INVITATION: The property owner (Steve Smith) was offered an opportunity to accompany me on my inspection of this property. Mr. Smith did not attend the inspection. Telephone number of owner or representative contacted: 563 -590 -1708. 1 personally inspected the subjcct property on May 14, 2010. VALUE FINDING APPRAISAL OF AREA 3 OF ASSESSOR PARCEL 1119101024 DUBUQUE, IA DATE OF APPRAISAL - MAY 14, 2010 DATE OF REPORT - MAY 17, 2010 PREPARED BY DOUGLAS J. HATTERY HATTERY REAL ESTATE APPRAISALS, LLC 1216 WEST LOMBARD STREET DAVENPORT, IOWA 52804 PREPARED FOR DERON MUEHRING, CIVIL ENGINEER CITY OF DUBUQUE 50 WEST 13 STREET DUBUQUE, IA 52001 DOUGLAS J. HATTERY 1216 WEST LOMBARD STREET DAVENPORT, IOWA 52804 (563) 386 -6606 May 17, 2010 Mr. Muehring: HATTERY REAL ESTATE APPRAISALS, LLC REAL ESTATE APPRAISAL AND CONSULTING Deron Muehring, Civil Engineer City of Dubuque 50 West 13 Street Dubuque, IA 52001 RE: RE: Value Finding Appraisal of Area 3 of assessor parcel 1119101024, as delineated on the exhibit provided by the City of Dubuque, for the Bee Branch Creek Restoration Project. This appraisal report, plus exhibits, explains and supports my opinion of value of the subject property. The report was prepared after an inspection of the property, neighborhood, recent comparable sales, and other factors which I consider to be pertinent to the value of the subject property. The subject property consists of a 27,761 SF portion of the former FDL Foods site which is located on the north side of 16 Street. The property is owned by Hwy 151 & 61 Development, LLC and consists of 39.58 acres of commercial development land that is currently unimproved. The proposed acquisition by the City of Dubuque is located adjacent to the 3.30 -acre portion of the property that is part of a development agreement to accommodate the Bee Branch Creek Restoration project. I was not provided with a specific legal description of the acquisition area, and have relied upon the information supplied by the client. The appraisal date is May 14, 2010, which is the date of inspection of the subject property. The date of the report is May 17, 2010. Since the acquisition does not involve significant damages to the remaining property, this report is a Value Finding Appraisal as defined within the Appraisal Policy & Procedures Manual, August 2003 edition, provided by the Iowa Department of Transportation, Office of Right of Way. The purpose of this appraisal is to estimate the difference in the Market Value of the subject property Before and After the acquisition, as of the appraisal date, relative to the Bee Branch Creek Restoration Project. The Intended use of the appraisal is to estimate just compensation for eminent domain purposes as of the appraisal date for acquisition by the City of Dubuque. The Intended users of the appraisal are the City of Dubuque, and other parties with an interest in the acquisition process regarding the subject property. - continued- Area 3 No Phase I environmental audit has been provided regarding the subject property. No hazardous conditions were obvious upon the inspection, and the property is appraised as if clean of all contamination, above and below ground. This appraisal was prepared according to the contract/assignment from the City of Dubuque. The intended use of the appraisal is for eminent domain related acquisition. The appraisal is prepared under the Jurisdictional Exception provision contained in the Uniform Standards of Professional Appraisal Practice ( USPAP). In preparing the appraisal, the appraiser has conformed with all parts of USPAP except those that are contrary to State and Federal requirements. The appraisal was prepared in conformance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law 91 -646, as amended and Chapters 6B and 316, Code of Iowa. The report was not prepared under USPAP reporting requirements but does conform to the requirements of State and Federal law as implemented in the Iowa Department of Transportation Appraisal Manual reporting requirements. As a result of my investigation, based upon my analysis of the included data, it is my opinion that the difference between the fair market value of this property before and after the proposed acquisition as of May 14, 2010 is $300,000. Respectfully Submitted, BY: D as J. -2- May 17, 2010 THREE HUNDRED THOUSAND AND NO/100 DOLLARS HATTERY REAL ESTATE APPRAISALS, LLC TABLE OF CONTENTS Letter of Transmittal Property Photographs 1 Purpose and Scope of the Appraisal 2. Summary of Salient Facts and Conclusions 3. Legal Description and Address of Subject Property 4. Neighborhood and Area Analysis 5. Site Analysis 6. Statement of Highest and Best Use 7 Description and Analysis of the Acquisition 8 Subject Property Valuation 9. Value Finding Summary 10. Assumptions and Limiting Conditions 11. Appraiser Qualifications Addenda 1. PROPERTY PHOTOGRAPHS The photo above is a view of the westerly portion of the subject property "pack site ", and the acquisition area as seen facing northeast from 16 Street. PURPOSE OF THE APPRAISAL: 2. PURPOSE AND SCOPE OF THE APPRAISAL The purpose of this appraisal is to estimate the difference in the Market Value of the subject property Before and After the acquisition, as of the appraisal date, relative to the Bee Branch Creek Restoration Project. Eminent domain law in the State of Iowa has established the following definition of Market Value: The term fair and reasonable market value means the cash price which would be arrived at as between a voluntary seller willing but not compelled to sell and a voluntary purchaser willing but not compelled to buy, both of whom are acting freely, intelligently and at arm's length, bargaining in the open market for the sale and purchase of the real estate in question. Such term does not mean the value under peculiar circumstances where greater than its fair price could be obtained, nor does it mean the price which the property would bring at a forced sale. It does not mean what the property is worth to the plaintiff nor what the defendant can afford to pay, but what it is fairly worth in cash on the open market, as above stated. (Uniform Jury Instruction No. 14.4). In short, the fair and reasonable market value of a property is to be considered in the same manner that a knowledgeable, voluntary buyer determines the fair and reasonable market value of a property- -what are its capabilities, what are its detriments, what is it fairly and reasonably worth in the market place? The Jury and /or Compensation Commission is entitled to be informed of all factors which (1) the willing seller would impress upon the willing buyer that tend to show value, and (2) the willing buyer would impress upon the willing seller that tend to show lack of value -- including sales of comparable properties and evidence of its highest and best use. (Uniform Jury Instruction No. 14.6 and annotated authorities). See also Bellew v. ISHC, 171 N.W.2d 284, 288, 289 (Iowa 1969) and In Re Primary Road No. 141, 124 N.W.2d 141, 147 (Iowa 1963). The determination of "Market Value" may not consider or reflect any enhancement or diminution in value of the subject, caused by the building of the project which has prompted the taking. (No sales exhibiting these effects may be used as a comparable in arriving at the value of the subject property, either before or after the date of condemnation.) Uniform Jury instruction 14.3 and Soconv Vacuum Oil Co. v. State of Iowa, 170 N.W.2d 378. (Iowa 1969). INTENDED USE AND INTENDED USERS OF THE APPRAISAL: The intended use of the appraisal is to estimate just compensation for eminent domain purposes as of the appraisal date for acquisition by the City of Dubuque. The intended users of the appraisal are the City of Dubuque, and other parties with an interest in the acquisition process regarding the subject property. - continued- DATE OF THE APPRAISAL: The appraisal date is May 14, 2010, which is the date of inspection of the subject property. The date of the report is May 17, 2010. This report is a Detailed Narrative Appraisal as defined within the Appraisal Policy & Procedures Manual, August 2003 edition, provided by the Iowa Department of Transportation, Office of Right of Way. DELINEATION OF TITLE: According to the available records, portions of the subject property last transferred on two occasions over within the past five years. The first transfer was on March 11, 2005 for a reported consideration of $3,400,000. This transfer was for a large portion of the property (prior to the demolition of the buildings), as well as several lots located south of 16 Street. The second transfer was on December 6, 2005 for a reported consideration of $500,000. This transfer involved an 8.73 -acre portion of the site and appears to have involved one of the members of the ownership group as both buyer and seller. The subject site is currently for sale, although specific prices are dependent upon the size and location within the development. [Although the above information is believed to be true and correct, no reliance should be assumed in that the appraiser is not responsible for items of a legal nature.] APPRAISAL PROCESS: 2 -A. PURPOSE AND SCOPE OF THE APPRAISAL (CONTINUED) The appraisal process is a systematic method of gathering data regarding sociological, physical, economic, and governmental forces in order to analyze and interpret their influence, in terms of value, on a specific real property. In this process three basic approaches are typically used, the Cost, Sales Comparison and Income Capitalization Approaches. Each is based upon the principle of substitution which states that an informed purchased would pay no more for the rights in a particular real property than the cost of acquiring without undue delay an equally desirable one. Cost Approach, according to the definition as stated on page 81 in The Dictionary of Real Estate Appraisal, copyright 1993, by the Appraisal Institute, the Cost Approach is defined as: "A set of procedures through which a value indication is derived for the fee simple interests in a property by estimating the current cost to construct a reproduction of, or replacement for, the existing structure; deducting accrued depreciation from the reproduction or replacement cost; and adding the estimated land value plus an entrepreneurial profit. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised." - continued- 2 -B. PURPOSE AND SCOPE OF THE APPRAISAL (CONTINUED) Sales Comparison Approach, according to the definition as stated on page 318 in The Dictionary of Real Estate Appraisal, copyright 1993, by the Appraisal Institute, the Sales Comparison Approach is defined as: "A set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, applying appropriate units of comparison, and making adjustments to the sale prices of the comparables based on the elements of comparison. The Sales Comparison Approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when comparable sales data are available." Income Capitalization Approach, according to the definition as stated on page 178 in The Dictionary of Real Estate Appraisal, copyright 1993, by the Appraisal Institute, the Income Capitalization Approach is defined as: "A set of procedures through which an appraiser derives a value indication for an income - producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market - derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate." The last step in the appraisal process is the Correlation and Reconciliation of the value estimates derived by each approach used into a final estimate of value. Through the interaction of analyzing costs and depreciation, rental rates, expense estimates and capitalization rates, and direct -sale comparables, the results of each approach to value should be similar. SCOPE OF THE APPRAISAL: The appraisal report is prepared under a Jurisdictional Exception, based upon Article 1, Section 18 of the Iowa Constitution, which prohibits consideration of increases or decreases in a property's value caused by the project. R 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 ". It is my opinion that the Acquisition does not significantly damage the remaining property and that the Value Finding report format is appropriate. Therefore, I have not valued the entire property, but have estimated the contributory value of the land within the acquisition area. The Cost and Income Approaches have been considered, but not developed in this appraisal because the property is not improved and commercial sites are not typically rented. 1 have estimated the value of the property based upon the comparable sales analyzed. In the Sales Comparison analysis, 1 have researched and analyzed sales of similar properties (as well as the subject sales) located in the subject market area and estimated the value of the subject by weighing various differences. All of the sales data have been confirmed by a principal involved (buyer, seller, or broker). 3. SUMMARY OF SALIENT FACTS AND CONCLUSIONS DATE OF APPRAISAL: May 14, 2010 DATE OF REPORT: May 17, 2010 PROPERTY TYPE: Vacant Site SIZE OF PROPERTY BEFORE THE ACQUISITION: 1,724,226 SF SIZE OF FEE TITLE ACQUISITION: 27,761 SF +/- SIZE OF PROPERTY AFTER THE ACQUISITION: 1,696,465 SF OWNERSHIP: Hwy 151 & 61 Development, LLC ZONING: PC, Planned Commercial IMPROVEMENTS: None RIGHTS APPRAISED: Difference in the Market Value of the Fee - Simple Interest to the subject property Before and After the acquisition. 4. LEGAL DESCRIPTION AND ADDRESS OF SUBJECT PROPERTY ADDRESS: LEGAL DESCRIPTION: Lengthy —See Deeds in Addenda. North side of 16 Street, Dubuque, IA Source: Warranty Deeds 2005 -3676 and 2006 -496 (copies in Addenda). FIRM PRODUCT /SERVICE APPROXIMATE EMPLOYEES JOHN DEERE HEAVY EQUIPMENT 1,800 MERCY HEALTH CENTER HEALTH CARE 1,325 DUBUQUE SCHOOLS EDUCATION 1,600 FLEXSTEEL INDUSTRIES SEATING PRODUCTS 450 MEDICAL ASSOC CLINIC HEALTH CARE 743 HEARTLAND FINANCIAL FINANCIAL SERVICES 760 FINLEY HOSPITAL HEALTH CARE 920 HOLY FAMILY SCHOOLS SCHOOLS 500 EAGLE WINDOW AND DOOR WINDOWS AND DOORS 750 Dubuque, Iowa is the largest community and the county seat of Dubuque County, and is located in northeast Iowa. Dubuque is located 70 miles north of the IA -IL Quad Cities, 160 miles northwest of Chicago, IL, and 70 miles northeast of Cedar Rapids, Iowa. Population figures for Dubuque and Dubuque County over the last three census periods are as follows: As can be seen from the above population figures, the Toss in population through the 1980's is consistent with many Midwestern agricultural areas which experienced decline in the decade of the 1980's. The decade of the 1990's was generally positive, and many communities like Dubuque have rebounded and stabilized over the past 5 -7 years. The recent economic downturn has been characterized by sluggish growth. The City of Dubuque appears to be generally stable. TRANSPORTATION: 5. AREA AND NEIGHBORHOOD ANALYSIS The area is served by two U.S. Highways 151, 20, 52, 61 and State Highways 3 and 84. There continues to be upgrades in Highway 61, providing expressway type traffic north and south. The area is also served by railroad and Mississippi River barge carriers. The Dubuque Municipal Airport is located south of Dubuque along Highway 61 and provides some commercial airline service through American Airlines, as well as charter service. INDUSTRY, GROWTH TRENDS AND MAJOR EMPLOYERS: Dubuque has a typical mixture of major employers. Aside from John Deere, the manufacturing companies are relatively small. Although there are fluctuations in the John Deere workforce, the employment situation appears to be relatively stable. The Dubuque area has experienced the same economic downturns that many communities experienced in the decades of the 1970's and 1980's. A list of some of the major employers is shown below. - continued- 1980 1990 % change 2000 % change Dubuque County 93,745 86,403 -7.8% 89,143 3.2% Dubuque 62,321 57,538 -7.6% 57,686 0.3% Dubuque, Iowa is the largest community and the county seat of Dubuque County, and is located in northeast Iowa. Dubuque is located 70 miles north of the IA -IL Quad Cities, 160 miles northwest of Chicago, IL, and 70 miles northeast of Cedar Rapids, Iowa. Population figures for Dubuque and Dubuque County over the last three census periods are as follows: As can be seen from the above population figures, the Toss in population through the 1980's is consistent with many Midwestern agricultural areas which experienced decline in the decade of the 1980's. The decade of the 1990's was generally positive, and many communities like Dubuque have rebounded and stabilized over the past 5 -7 years. The recent economic downturn has been characterized by sluggish growth. The City of Dubuque appears to be generally stable. TRANSPORTATION: 5. AREA AND NEIGHBORHOOD ANALYSIS The area is served by two U.S. Highways 151, 20, 52, 61 and State Highways 3 and 84. There continues to be upgrades in Highway 61, providing expressway type traffic north and south. The area is also served by railroad and Mississippi River barge carriers. The Dubuque Municipal Airport is located south of Dubuque along Highway 61 and provides some commercial airline service through American Airlines, as well as charter service. INDUSTRY, GROWTH TRENDS AND MAJOR EMPLOYERS: Dubuque has a typical mixture of major employers. Aside from John Deere, the manufacturing companies are relatively small. Although there are fluctuations in the John Deere workforce, the employment situation appears to be relatively stable. The Dubuque area has experienced the same economic downturns that many communities experienced in the decades of the 1970's and 1980's. A list of some of the major employers is shown below. - continued- CONCLUSIONS: 5 -A. The trends with respect to population, employment, construction and tourism are fairly typical of midwestern river frontage communities. The economy, in general appears to be rebounding somewhat. The residential sector appears to be ahead of the commercial sector in this recovery. The Dubuque area unemployment rate has risen over the past few years, and was at 7.8% in March of 2010. While this is higher than the past few years, there are many areas that have experienced more job losses than Dubuque. NEIGHBORHOOD DATA: AREA AND NEIGHBORHOOD ANALYSIS (CONTINUED) Identification and Delineation: The subject neighborhood is just northeast of the "downtown" area, and is located in the eastern portion of Dubuque, Iowa. The subject neighborhood is roughly bounded by Highway 61 on the east, 20 Street on the north, 14 Street on the south, and the railroad ROW to the west. Property Types: The area has a variety of uses, with a balance of vacant sites, residential, Tight industrial, and commercial uses interspersed. There are several vacant sites in the area, and the homes and commercial buildings are generally older. Neighborhood Trends and Changes: The subject neighborhood is about 50% built -up with various improvements. The major influence on the area is the development of the subject site, which is the former FDL foods "pack site ". The site has been purchased and has had the buildings cleared from the site and the rough grading mostly completed. The property was rezoned to a PUD type classification (PC, Planned Commercial), which would allow for large retail, or other commercial uses. The developers of the subject "pack" site have also been purchasing properties in the immediate subject neighborhood in order to provide sufficient land area for development. The development of the pack site has been slow, partially because of the general economic situation of the past few years. Nevertheless, it appears that this portion of the community (the pack site and the area south of 16 Street) is poised to see development in the relatively near future. Competition: The subject neighborhood competes with other developing intensive commercial areas within Dubuque, but the area is somewhat distinct, as an older, fringe downtown neighborhood. The area is generally stable, but will likely see some redevelopment in the future, and the general outlook is basically positive. Adverse Influences: There appears to be no obvious adverse influences on the subject neighborhood. WPM. Tr: STA11.17ED VOIICLC ENTRAM t OttT C•[Tnt: i PROPERTTONRER mown � RAE IIC OM •I uwe /i 112 SW MIR -- M NM t0 tl/Tr - T, _ rr —. �•� ^�•; ..__:._._ ... . 161h v 1 1 1 X1-7' • t X1.1,7 m ••. 01.11w/T ON .• aye PLO r•.•w•MI • wv 111,141,11.7 w . •••••••• •w•••n r •• r :.:� �:�r:1•uS ::.1: -�1r� . ? �., » . w . ,.art , „1. s 1„ r w•. •i:•rN• •c.1.Y .. .r .w♦wY•rr -y. 71,7, r",1 wY•w - •L••• W... 1.• ••• MW.1.• T.rw • r . ;..• W. )• .•tiw•w 1rwN • i Ylh y W w �I .ww•w w 'r w w�l) r•w.t •.<• wtM r•w nµ. •rM • •W .Mn\t, t..t.t..nwrw• M y 1.1 " r tvn a.• • •.. ..� i ' m,. ""=1.171.".Y.' wt•w•w w w +•wt ... . wT •,1• I LCG.•t MCOSTM 1. Ytl•II tLO •./W. . twt r =WS WNW VI[- 1/.t re us am As 1 ;•Y I :. � p Y1�1t rows .. /sl•r. t P YtiM••M �t •Y.l••• uC111 W y• MOM Y•1•• i. 11/O J1 i Y11 •a i4 w• r.. • a. sows •• s wet arm I Ss OEM •L7 s.s.a... II 12 SO 212. WI. WS XL W / sir u r save wt. lr[aL.b at�stwOD DOW Warr 1.W. O W sr r.1 nor .1r.•.l MAIM won Mow, _ Yr'! • ram I Iw .nOm. / 1s�.0.�. t N maw a win =Aga /0412 WEIMIThSW WOW z 1wl.tae~MI Wr 111111.2 % KERPER COURT INTLKC ►ROTCCTICNI .' '!F w10••tnn 1 r6 lt. •• /' • 4 N L AM et a . 81L1:1 D.09 6. SITE ANALYSIS Location: The entire subject property is located along the north side of 16 Street, east of the railroad tracks. The exhibit on the page opposite is a conceptual layout of the property, with the development agreement area surrounded in red, and the acquisition area shown in yellow. Size and Shape: The subject lot is an irregular shape and consists of a total area of 39.58 acres (1,724,226 SF +1 -), according to the available records. The primary frontage is along 16 Street. Access and Traffic Flow: The property will primarily be accessed from 16 Street, which is currently a two -lane, two -way street with traffic flowing basically east -west. The exact development layout of the site has not been determined, but I have presumed that the subject site will have suitable access. Topography: The subject property is basically level and is at grade with the surrounding streets. According to the City of Dubuque, the property is located in Zone X, which is not a 100 -year or 500 -year floodplain. Zoning and Utilities: The subject property is located within the city limits of Dubuque and is currently zoned PC, Planned Commercial. This zoning classification is unique to the subject and is essentially a PUD type of zoning that allows for a wide variety of commercial uses, depending on the final uses. The site is served by all municipal utilities. Improvements: The subject property is currently unimproved. 7. STATEMENT OF HIGHEST AND BEST USE The subject site consists of a total area of 39.58 acres, has level topography and all city utilities available. There are a number of commercial uses that would be physically possible. The immediate neighborhood is partially undeveloped, and has been stable for many years. However, there is the distinct possibility of intensive commercial development of the area, considering the potential activity associated with the subject site. The current zoning would also allow a variety of commercial uses and therefore, commercial development is legally permissible. The most recent activity in the neighborhood involving the subject site and properties across 16 Street (to the south) indicates that the subject site would have potential for some type of commercial development, as indicated by the recent pending offer on a portion of the subject site. This indicates that commercial development is financially feasible. Based on these factors, it is my opinion that intensive commercial development is the maximally productive use of the site and that future commercial development represents the Highest and Best Use of the subject property. NOR It t 9 '' A t' 1 /r �+: t iii I I4 x / ? :5.93, 1 1 ACP L6 P : . : ' h J 1ttmxi { \01 LYtlo4S.01 Y:43)I3 ILMIVMfI MR > MUM 1WYttnSftt„ Y1.0.••% ■ •Orrfoof tML\IM T••.T ..tmr.tro '5210AflANfS S11fi W 0:43 MII .44 4, 2 �. (r La y U 1b ¢ i n. t(/ p U <.n N ., o In =- "RT O. rn 1 ' (Y t(n a ° 41 t Al. Cr 5 ' 'r( MPORAr�Y CONSTRUCTION CASEMENT 1429 SQ. FT. • •'l 1.18 5y _ _ l it • d 8. DESCRIPTION AND ANALYSIS OF THE ACQUISITION The proposed project involves the construction of the Bee Branch Creek Restoration improvements. The proposed Fee Title Acquisition consists of 0.637 acres (27,761 SF) and is located at the north end of the area involved in a previous development agreement with the City of Dubuque. The acquisition area provides additional area that may potentially be required to construct the Bee Branch Creek improvements. The acquisition area is shown highlighted in preen in the exhibit on the page opposite. In my opinion, the remaining property will still be readily developable and the acquisition does not create significant damages to the remaining property. The acquisition does not appear to adversely affect the potential layout of the site, or access to the site. It is my opinion that the property will be equally functional for development After the acquisition as Before the acquisition. - ., 7 si‘ 102 7001 277 • j1Nis 102427.0 02427 02428 01 2428201 .0 4 7011,,t s?9 1 4279001 7 24780 7 024282c5 24 83001 42890 sb 1 428900i ‘7 024 1024 5 4288001 7.. 1 428800 . 428500 02 28 024285 Sale 4 • 0428 . • 0 04 1024433010 ; .010 1024 02 26002 00 10 7 • .00 V), Nto 44 Y.-1 •,et." .0 '12.) 4 S..1 1119101024 433 1024433012 1'.1 1024433013 • FT M7 1119152005 1 44330 ' 9. SUBJECT PROPERTY VALUATION The subject site is located northeast of the downtown area. The immediate neighborhood is characterized by a variety of vacant lots, residential, commercial, and Tight industrial uses. The area has more vacant land than the nearby downtown area, and the land values do not appear to be as high as in the downtown area, primarily because downtown sales often involve older, improved buildings which are demolished to create a vacant site. The cost of the improved property &I the cost of the demolition tends to make the vacant land very costly, relative to other vacant commercial sites in other neighborhoods. It is not unusual to have a per square foot land cost that is higher in the downtown area than in the most popular intensive commercial development areas in a community. The range of sale prices per SF in the other commercial development areas is generally from $10.00/SF to $15.00/SF. There are sales in the $16.00/SF to $20.00 /SF range (including the recent Walgreens sale at 20 and Elm Streets), but in my opinion these are atypical of the market, in general. The subject neighborhood does have some current influence from the demand for land by the developers of the "pack siteTM. I have researched land sales in the subject neighborhood, and the trends appear to be consistent, with the older sales (2004 -2006) having a per SF price in the $6.00 to $7.00 range, and the most recent sale discovered involving the developers of the pack site having a per SF price of $10.68/SF. It is not unusual for the general market conditions to improve over time, but economic conditions do not always improve, and corresponding land values do not necessarily rise, particularly if there is limited new building activity. The economic difficulties of the past two years are well known, and there is limited new development in the commercial sector at this time. Therefore, I have not adjusted the comparable sales from 2007 for time, as the value of commercial development land does not appear to have appreciated demonstrably since that time. The sales analyzed below are good comparables which illustrate a reasonable value range for the subject site. The comparable sales most heavily relied upon are summarized below, with detailed writeups in the Addenda. Sale 1 is a 2,560 SF paved parking lot located on the east side of the 1400 block of Central Avenue. This property was purchased in March of 2005 for $45,000 ($17.58/SF). The site is utilized as a rental parking lot. The site has 9 spaces which have rented for $25.00 /month. The property was sold to the owner of a commercial building located across Central Avenue. In my opinion, this sale would require downward adjustments for the paving, and for the slightly superior location. The net adjustment to the sale price /SF is downward, relative to the subject property. Sale 2 is a 2,500 SF site located in the northwest corner of 15 Street and Maple Street, just south of the subject. This vacant parcel was sold by G & S Real Estate to the owner of the adjacent parcel in May of 2004 for $15,000 ($6.00 /SF). This site is a good direct comparable with respect to size and location, but would require an adjustment for time (market conditions have strengthened since 2004). Therefore, it is my opinion that an upward adjustment for time (market conditions) is appropriate. In my opinion, the net adjustment to the sale price /SF of this sale is significantly upward. - continued- 9 -A. SUBJECT PROPERTY VALUATION (CONTINUED) Sale 3 is a 3,502 SF site located on the east side of the alley between Cedar and Maple Streets, just south of 16 Street. This vacant parcel was sold by William Blum to SB Development (one of the developers of the subject site) in August of 2006 for $24,000 ($6.85/SF). This site does not front Cedar Street, but was improved with a single - family home in previous years. In my opinion, the subject land is more desirable because it is part of a larger site that fronts a street, and this factor would indicate an upward adjustment, as well as a minimal upward adjustment for time. The overall (net) adjustment is significantly upward, relative to the subject. Sale 4 is the city block bordered by 15 and 16 Streets and by Cedar and Sycamore Streets. This property was purchased by SB Development (the pack site developers and subject owners) from Alvin Blum. The property was primarily vacant land, and there were small, older buildings which the seller indicated had minimal contributory value. The property consists of 10 lots (all 51.5' x 100') which are separated by the public alley. This 51,500 SF property was purchased in August of 2007 for $550,000 ($10.68/SF). In my opinion, this sale is the most meaningful sale for a current indication of land value trends in the immediate area. This sale would require minimal overall adjustment. The overall adjustments for the sales discussed above, relative to the subject property are summarized below. Sale Size (SF) Sale Price Sale Price /SF Net Adjustment Sale 1 2,560 $45,000 $17.58 Downward Sale 2 2,500 $15,000 $6.00 Large Upward Sale 3 3,502 $24,000 $6.85 Large Upward Sale 4 51,500 $550,000 $10.68 Minimal I have also considered a pending sale of a portion of the subject site, which the owners have indicated would involve approximately 2 acres. The ownership has provided a copy of the purchase agreement, which has not been fully completed. The anticipated sale price is $10.00 /SF. This would be a very positive event for the future development of the immediate area and could spur additional development in the near future. This is not a closed sale, but it does lend some support for the value estimated for the subject land. CONCLUSIONS: The sales primarily required adjustments for location and time. As previously mentioned, the current neighborhood trend has been affected by the subject site development, and the demand for neighborhood parcels for that development. The sale prices in the subject neighborhood are comparable to other parcels in arguably more desirable commercial locations in the community. The pack site development has been slow to materialize, but there is a pending sale, and this may spur other development in the immediate area. Based upon my analysis of the sales, adjusted for differences, it is my opinion that the market value of the subject land (as if vacant) is at, or near $11.00/SF. In my opinion, the acquisition does not reduce the development potential of the property and there are no measurable damages to the remainder. The compensation for the 27,761 SF acquisition area is estimated at $300,000 (27,761 SF x $10.81 /SF). As a result of my investigation, based upon my analysis of the included data, it is my opinion that the difference between the fair market value of this property before and after the proposed acquisition as of May 14, 2010 is $300,000. ,4r.- THREE HUNDRED THOUSAND AND NO /100 DOLLARS HATTERY REAL ESTATE APPRAISALS, LLC B Y: Do sJ.Ha terry, Appraiser 10. VALUE FINDING SUMMARY 11. ASSUMPTIONS AND LIMITING CONDITIONS 1. The photographs contained in the individual appraisal reports were taken by the appraiser on the date the property was inspected. Any photo taken on a different date or by another person will be appropriately labeled. 2. The title to the property is good and merchantable, free and clear of all liens and, there are no encumbrances other than those mentioned in the appraisal report. 3. The plans, plats, legal descriptions and other data furnished by others are assumed to be correct and reliable but the appraiser assumes no responsibility for their accuracy. 4. The individual appraisals are made in accord with the Code of Iowa and do not reflect any benefit from the proposed improvement or non - compensable items of damage. 5. Any temporary easement area acquired will be retained by the acquiring authority until completion of project construction and will be returned in the condition indicated by the highway plans. 6. The existing drainage will not be adversely affected by highway construction unless otherwise specified in the data furnished and the tile lines on the remaining property will function properly after highway construction is completed. 7. The property is appraised as though under responsible ownership and typical management. 8. The property owner will be paid separately for the cost of fencing the new right of way line, if such fencing is needed, in those cases where the acquiring authority does not erect a right of way fence. The property owner has a right to pasture livestock adjacent to any state erected fence but must assume all responsibility for restraint of such livestock. Any effect on fencing other than right of way fence or temporary fence will be considered in the individual appraisal reports. 9. The property owner or lessee will be paid separately for Toss, if any, of growing crops or completed field work. 10. The acquiring authority may use any or all of the contents of the appraisal reports only for its normal business functions. EDUCATION: Graduate of Galesburg Senior High School, Galesburg, Illinois, 1981 Graduate of University of Colorado, Boulder, Colorado, 1985 Bachelor of Science in Business with majors in Marketing and Small Business Management APPRAISAL INSTITUTE COURSES: Course 1A -1, Real Estate Appraisal Principles, June 1992, Tom Bennett, MAI, sponsored by the University of Colorado and the Appraisal Institute, Boulder, Colorado Course SPP Parts A & B, Standards of Professional Practice, March 1993, Guy Romito, MAI and Jim Schroeder, MAI, sponsored by Chicago Chapter -of the Appraisal Institute, Chicago, Illinois Course 120, Real Estate Appraisal Procedures, February 1994, Joseph Magdziarz, SRPA, SRA, sponsored by Chicago Chapter of the Appraisal Institute, Chicago, Illinois Course 210, Residential Case Study, March 2001, Maggie Hambleton, SRA, sponsored by Chicago Chapter of the Appraisal Institute, Chicago, Illinois Course 310, Income Capitalization, October 1999, Joseph Magdziarz, SRPA, SRA, sponsored by Chicago Chapter of the Appraisal Institute, Chicago, Illinois Course ILVII, Nonresidential Report Writing, April 2001, Susan Rex, sponsored by Chicago Chapter of the Appraisal Institute, Chicago, Illinois EXPERIENCE: Present Hattery Real Estate Appraisals, LLC, Davenport, Iowa August 1995 — September 2006 Stahl - Hattery Valuation Services, LLC, Davenport, Iowa January 1992 - August 1995 American Real Estate Ltd. Davenport, Iowa CERTIFICATION: APPRAISER QUALIFICATIONS - DOUGLAS J. HATTERY Certified General Real Property Appraiser by the State of Iowa, Certificate #CG01824 Certified General Real Estate Appraiser by the State of Illinois, License #553.001382 ADDENDA I M a: SALE #: 1 ADDRESS: 1400 Central Avenue TERMS: Cash to Seller ZONING: C -4, Commercial GRANTOR: K & L Properties LAND SIZE (SF): 2,560 SF GRANTEE: Zapf Family Trust SALE DATE: 3 -30 -2005 CONFIRMED BY: Grantor (Kehrli) SALE PRICE: $45,000 RECORDING: 4622 -05 SALE PRICE /SF: $17.58 REMARKS: This parcel was sold to the owner of a commercial building located across the street. The site is paved and is utilized as a rental parking lot, with 9 spaces. The rent is somewhat below market, according to the seller, at $25 per month. SALE #: 2 ADDRESS: NWC 15 & Maple ZONING: H -I, Heavy Industrial LAND SIZE (SF): 2,500 SF SALE DATE: 5 -14 -2004 SALE PRICE: $15,000 SALE PRICE/SF: $6.00 REMARKS: This unimproved parcel neighboring property. TERMS: Cash to Seller GRANTOR: G & S Real Estate GRANTEE: Tony Zenner CONFIRMED BY: Grantor (Schwartz) RECORDING: 8376 -04 is a 1/2 lot (25' x 100') which was sold to the owner of the SALE #: 3 ADDRESS: SWQ 16 & Cedar TERMS: Cash to Seller ZONING: H -I, Heavy Industrial GRANTOR: William Blum LAND SIZE (SF): 3,502 SF GRANTEE: SB Development SALE DATE: 8 -4 -2006 CONFIRMED BY: Blum SALE PRICE: $24,000 RECORDING: 12072 -06 SALE PRICE /SF: $6.85 REMARKS: This unimproved parcel does not front Cedar Street, but fronts the alley between Cedar and Maple Street. The lot is 51.5' x 68' and was formerly improved with a single - family home. The property was purchased by the developer of the "pack site ". SALE #: 4 ADDRESS: Cedar St Block (15 to16 TERMS: Cash to Seller ZONING: H -I, Heavy Industrial GRANTOR: Blum Properties LAND SIZE (SF): 51,500 SF GRANTEE: SB Development SALE DATE: 8 -21 -2007 CONFIRMED BY: Alvin Blum SALE PRICE: $550,000 RECORDING: 12834 -07 SALE PRICE /SF: $10.68 REMARKS: This property is the city block bounded by 15'" and 16'" Streets, and by Cedar and Sycamore Streets. The property consists of 10 lots, each 51.5' x 100', separated by the city alley. The parcel is mostly unimproved land, with small buildings, which had no significant contributory value according to the seller. The property was purchased by the developer of the "pack site ". • (Page 2 of 3) An, - Pa..n rat. x.+rn/+.r 9A14_AAAAAd44 THE IOWA STATE BAR ASSOCIATION Official Fenn No. 101 Brian J. Kane 1SBA * 7604 FOR THE LEGAL EFFECT DF THE USE OF MIS FORA, coNatlLT Yot1R LAWYER • KT.\T,, ar S J WARRANTY 7 �UC[AT'� For the consideration of Dollar(s) and other valuable consideration, SMITH - HURST, LLC, an Iowa DEED Ten (510.00) limited liability company do hereby Convey to HWY 151 & 61 DEVELOPMENT, LLC, an Iowa limited liability company the following described real estate Lot 2 of Lot J of FDL Second Addition, In Dubuque County, Iowa: plat thereof in the City of Dubuque, Iowa, according to the recorded Grantors do Hereby Covenant with grantees, and successors In interest, that grantors hold the real estate by title in fee simple; that they have good and lawful authority to sell and convey the real estate; that the real estate Is Free and Clear of all liens and Encumbrances except as may be above stated; and grantors Covenant to Warrant and Defend the real estate against the lawful claims of all persons except as may be above stated. Each of the undersigned hereby relinquishes all rights of dower, homestead and distributive share In and to the real estate. Words and phrases herein, Including acknowledgment hereof, shall be construed as In the singular or plural number, and as masculine or feminine gender, according to the context. STATE OF Dated: December 6, 2005 COUNTY OF SMI , ,. This Instrument was acknowledged me on , • �. , / LfCc]j before fr . by BY Steven J. Sm (Grantor) (Grantor) Notary Public (This tone or acknowledgment for • (Grantor) (Grantor) Individual grantor(s) only) o n w bwa nue ear As:w atlm 2005 101 WARRANTY DEED IOWADOCSo RaYYW Ja uai . 2005 • (Page 2 of 3) An, - Pa..n rat. x.+rn/+.r 9A14_AAAAAd44 tray= .1. 1.71 c) ENTERED FOR TAXATION ON This (5• day of (Al\a,µ1 2015 DENISE M. DOLAN 1- .tlra my d t4 By /rdP )1' tr y . � Deputy Prepared by: Arthur F. Gilloon, of Norman, Gilloon, Wright & Hamel, P.C., 800 Main Street, P.O. Box 857, Dubuque, IA 52004 - 0857; (563) 556 -6433 Address tax statement Hwy 151 & 61 Development, LL.C., c/o Platinum Services, Inc., Attn: Wayne A. Briggs, 137 Main Street, Dubuque, IA 52001 WARRANTY DEED (CORPORATE GRANTOR) For the consideration of Ten and no /100 ($10.00) Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, JMC GOLD LABEL MEATS, INC., a corporation organized and existing under the laws of Delaware, does hereby Convey to HWY 151 & 61 DEVELOPMENT, L.L.C., an Iowa Limited Liability Company, the following described real estate in Dubuque County, Iowa: SEE ATTACHED EXHIBIT A FOR THE LEGAL DESCRIPTION. THIS DEED IS GIVEN WITH THE FOLLOWING RESTRICTIVE COVENANT: GRANTEE AND ANY SUCCESSOR OR ASSIGNEE OF GRANTEE IS PROHIBITED FROM USING THE REAL ESTATE, DIRECTLY OR INDIRECTLY, FOR THE PROCESSING OR SALE OF MEAT OR MEAT PRODUCTS INCLUDING, WITHOUT LIMITATION, THE SLAUGHTERING OF HOGS, CATTLE, LAMB, OR POULTRY, AND THE PROCESSING, CUTTING, PRODUCTION, PACKAGING, STORAGE, DISTRIBUTION, MARKETING, OR SALE OF MEAT PRODUCTS OR BY- PRODUCTS, OR FOR THE PRODUCTION OF ETHANOL, METHANOL, BIODIESEL, OR RELATED PRODUCTS, ALL FOR A PERIOD OF TEN (10) YEARS FROM THE DATE OF THIS WARRANTY DEED. THIS RESTRICTIVE COVENANT SHALL NOT, HOWEVER, INCLUDE ANY RESTRICTION AGAINST RETAIL SALES OF THE AFORESAID PRODUCTS OR STORAGE THEREOF FOR THE PURPOSE OF RETAIL SALES OF THE AFORESAID PRODUCTS. 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 fret and dear of ail liens and encumbrances, except as may be above stated; and it covenants to Warrant Defend the real estate against the Iawful 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 pluraj,numben;,Iccordipg, to the context. ti , ∎ ,�� r4, 3r7� ��.,, • , 4, �Y By ` ti ' N v � 2005. L ` : .:J ' s w .1 C' f p/ - , ;i) Dated: March / • • �+ : ter — ��'�T r} °'••..: d` • STATE OF VIRGINIA, e Orr ,),>■C3l\ COUNTY, ss: 111 111111111111111111111 Recorded; 03/15/2005 at :28 :6 Ph Fee Amt: $5,478.20 Pape 1 of 2 Revenue Tax: =5.428.20 Dubuque County Iowa Kathy Flynn Thurlow Recorder Fi1•2005- 00003676 JMC GOLD LABEL MEATS, INC. Michael H. Cole, Vice- President ''hrn0nflun` On this i I day of March, 2005, before me, the undersigned, a Notary Public in and for said State, personally appeared Michael H. Cole, to me personally known, who being by me duly sworn, did say that he is the Vice - President of said corporation; that the seal affixed thereto is the seal of said corporation; that said instrument was signed and sealed on behalf of said corporation by authority of its Board of Directors; and that they e,ittddiabut H. Cole, as such officer, acknowledged the execution of said instrument to be the voluntary act and deed of said corpoptttp a td y him voluntarily executed. Gominormaitli Emoossec Harm Is My ` 18 �o4tivlt'',• d Wary Pit& Sod hb a d ips 1:4 KRISTPE J. t_oNG E ‘ OP OP y "4-,, 1 ) . , Notary Public ARy A O \ti l<'r. '`'; t Hook , Page , File Number 2005- 00003676 (Page 2 of 2) EXHIBIT A Lot 1 of Lot 1 of FDL Second Addition, in the City of Dubuque, Iowa, ac to the recorded plat thereof, AND Lots 1 and 2 of the north half of lot 292, the south half of lot 292, lots 293, 294, 295, 296, 297, 298, lot 1 of lot 299, lot 1 of lot 1 of lots 300 and 301, lot 300A, lot 300B, lot 300C; that portion of vacated Maple Street, lying between the north curb line of East 16th Street to the south curb line of East 17th Street; lot 2 of lot 1 of lot 304, lot 1 of lot 2 of lot 305, lot 1 of lot `B" of' lot 1 of lot 305; lot 2 of lot 1 of Vacated Maple Street north of 18th Street; lots 306, 307, 308, 309, 310, lots 1 and 2 of lot 311, lots 312, 313, 314, 315, the vacated "unvacated portion of Sycamore Street situated north of the north side of' 16th Street running northerly to the south side of the vacated portion of East 19th Street "; in East Dubuque No. 2, in the City of Dubuque, Iowa, Lot 316, lot 2 of lot 354, lot 355, in East Dubuque No. 2, in the City of Dubuque, Iowa, Lots A, B and C, of Dubuque Packing Company Addition, in the City of Dubuque, Iowa, Lot 2 of lot 3, lot 1 of lot I of lot 4, and, lot 2 of lot 5, in Block 2, in Railroad Addition, in the City of Dubuque, Iowa, Lot 2 of "Vacated East Nineteenth Street between East line of Mineral Lot 106 and west line of Original Sycamore Street extended ", in the City of Dubuque, Iowa, Lot "A" ofMineral Lot 106 (according to the Correction Plat recorded as Instrument No. 8861.77), in the City of Dubuque, Iowa, Lot 1, in Block 3, in Dubuque Packing Company Addition, in the City of Dubuque, Iowa, according to the respective recorded Plats thereof. Book , Page , File Niaober 2005- 00003676