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HomeMy WebLinkAbout16- Memorandum of Understanding - Montana State University (MSU) - MSU Farm Sanitary Sewer EasementMOU between Montana State University and The City of Bozeman CITY OF BOZEMAN Engineering Division Public Works Department PROJECT NAME: MSU FARM SANITARY SEWER EASEMENT PROJECT #. 4524.11402.04 / 0417.072.02 PARCEL #: 1 AND 2 MEMORANDUM OF UNDERSTANDING Between and Among MONTANA STATE UNIVERSITY, OWNER OF PARCELS 1 AND 2, AND THE CITY OF BOZEMAN This Memorandum of Understanding (MOU) is hereby made and entered into by, between, and among Montana State University (hereinafter MSU), and the City of Bozeman (hereinafter the City). A. PROJECT PURPOSE AND BACKGROUND The City of Bozeman completed a wastewater facility plan in 2015 that recommended constructing a new sanitary main in this vicinity. The property in the vicinity is owned by the State of Montana, but is for the benefit of MSU. The location of the main through MSU's property was found to be preferred since it allowed a gravity draining sewer main to be installed, negating the need for an expensive sewer lift station. Since the facility plan was completed, MSU also indicated the necessity for a new water main to be installed south of W. Garfield St. In discussions between the City and MSU in the attempt to purchase the necessary property interests from MSU for the project, MSU has offered to grant the necessary project property interests at no cost in exchange for the City constructing a new water main in addition to the project's sewer main. Both parties have explored this opportunity, including identification of property values and construction costs. Given that each party's respective costs are relatively equal, this exchange of interests is considered to be in the best interests of both parties. The purpose of this MOU is to document the project roles and responsibilities of each of the aforementioned parties. This document will formally outline which party will be responsible of various aspects of the project including construction efforts, oversight, maintenance, funding, and impacts to private property features. B. PROJECT The Project area is generally defined as incorporating a portion of land bounded by North 19th Ave., W. Lincoln St., and W. Garfield St., with a total new sanitary sewer length of approximately CITY OF BOZEMAN PROJECT NAME: MSU FARM SANITARY SEWER EASEMENT Parcel 1 and 2 PROJECT#: 4524.11402.04 / 0417.072.02 Page 1 of 4 MOU between Montana State University and The City of Bozeman 0.80 miles and water main length of approximately 0.25 miles within new utility easements. The goal of the project is to install a new sanitary sewer main that will serve the South University Area, including future development in the surrounding area, and a new water main to serve the South University Area. Both parties to this agreement have showed necessity for these utility mains. This project will not include the installation of new streets or public rights -of -ways (RNV), but will include a maintenance access road within the confines of the new utility easements. C. DETAILED PROJECT INFORMATION Improvements The City will install a new sanitary sewer main from W. Garfield St. to North 19th Ave. and a new water main from W. Garfield St. to the future W. Lincoln St. RIK Included with the improvement project are utility manholes, valves, a waterline stub for future MSU use, other related utility features, and a maintenance access road. Public Utility Easements To allow access to the new water main and sewer main through Parcels 1 and 2, new public utility easements are required for MSU's property. Generally, Parcel 1 requires a 32 -ft wide water main and sewer main easement and Parcel 2 requires a 30 -ft wide sewer main easement, as shown in Appendix 1. Costs This project to install a new water main and sewer main is being funded by the City of Bozeman. The project costs include compensation for the utility easements required to install the public utility lines on MSU's property. Based on MSU's need for a water main and the City's need for a utility easement, the City of Bozeman and MSU have agreed to assist each other for mutual benefit by the City building the water main at its cost and MSU granting the utility easement without compensation. To accurately justify the cost comparisons between constructing the mains and the easement compensation, the parties have performed the following evaluations: The City has prepared an engineer's opinion of probable cost to design and install a new water main for the benefit of MSU and has determined the cost to be $120,900.00 The engineer's opinion is included in Appendix 2. Two appraisal reports were completed\ and paid for by the City, one report for each parcel owned by MSU. The appraised value for a sewer main easement on Parcel 1 was determined to be $38,050.00; the appraised value for a sewer main easement on Parcel 2, including impacts to gates and fencing, was determined to be $74,700.00; the combined easement value is $112,750.00. The appraisals are included in Appendix 3. CITY OF BOZEMAN PROJECT NAME: MSU FARM SANITARY SEWER EASEMENT Parcel 1 and 2 PROJECT#: 4524.11402.04 / 0417.072.02 Page 2 of 4 MOU between Montana State University and The City of Bozeman D. WORK ASSIGNMENTS PART A — THE CITY OF BOZEMAN WORK TO BE PERFORMED BY THE CITY OR ITS CONTRACTOR AT THE CITY'S EXPENSE: 1. Except as otherwise provided herein, furnish all plans, engineering, supervision, labor, material, supplies and equipment necessary for construction of the project, complete in all details. 2. The City of Bozeman agrees to complete the project improvements as detailed in this agreement, the construction plans, including but not limited to water main installation, installing a water main stub for future MSU service connection, sewer main installation, and project administration. 3. The City of Bozeman agrees to install a new water main, as described in the project plans, at its own cost in exchange for receiving new public utility easements without compensation. 4. The City of Bozeman agrees to maintain the new water main and sewer main improvements at its expense. 5. Upon completion of the project, the City of Bozeman agrees to restore the property as nearly as possible to its original condition. PART B — MONTANA STATE UNIVERSITY ASSIGNMENTS TO BE PERFORMED BY MSU AT MSU'S EXPENSE: 1. Montana State University agrees to execute the public utility easements for the parcels as shown in Appendix 1 for Parcel 1 and Parcel 2, without compensation in exchange for the new water main being installed. 2. Montana State University acknowledges and agrees they will be responsible for future impact fees when connecting to the public water main. E. TERM This MOU is effective -TU N Z 17 , 2016, and will expire when the City has completed all construction of the Water and Sewer Utility Project as noted above. F. PRINCIPAL CONTACTS The principal contacts for this instrument are: City of Bozeman c/o Dr. Craig Woolard, Public Works Director P.O. Box 1230 Bozeman, MT 59771-1230 Phone: (406) 582-2321 Montana State University c/o Dr. Waded Cruzado, MSU President P.O. Box 172420 Bozeman, MT 59717-2420 Phone: (406) 994-2341 CITY OF BOZEMAN PROJECT NAME: MSU FARM SANITARY SEWER EASEMENT Parcel 1 and 2 PROJECT#: 4524.11402.04 / 0417.072.02 Page 3 of 4 MOU between Montana State University and The City of Bozeman G. AUTHORIZED REPRESENTATIVES By signature below, each party certifies that the individuals listed in this document as representatives of their respective party are authorized to act in their respective areas for matters related to this agreement. THE PARTIES HERETO have executed this instrument. CITY OF BOZEMAN CQX'4 ` Name: (jAyis }LLIkt,LIsY� Title: C,Y�- 1 AoL iay e Date: 6 - 6 -1.6 ATTEST: " Name: -�j✓j iXbLt?� Title: y - =c -,72; C0.1lCr MONTANA STATE UNIVERSITY (r) -1c) -lb Date: �.7 !n& I Z a.o 1 � ATTEST: "IYiis )n5bAymcn* waS #LtknDW1eW loe-� rxc_. Dr JVrlt Z�, 2otly 1� l�otd�.� Cruzado CHRISTINA C FOURNIER Notary Public C,v� C •� n� Date: for the State of Montana Name: Ch ri 511 rna C. FvLlY n i tr * � _ Residing at: ;m'.SEAL.-�Bozeman, Montana Title: NoFarytiL OF Mo My Commission Expires: August 30, 2017 CITY OF BOZEMAN PROJECT NAME: MSU FARM SANITARY SEWER EASEMENT Parcel 1 and 2 PROJECTM 4524.11402.04 / 0417.072.02 Page 4 of 4 B CITY OF BOZEMAN PROJECT NAME: MSU FARM Engineering Division SANITARY SEWER EASEMENT * Public Works Department w < PROJ ECT #: 4524.11402.04 / g uo?r MEMORANDUM OF UNDERSTANDING 0417.072.02 COQ y PARCEL M 1 AND 2 APPENDIX 1 Easement Documents Return to: DOWL 2090 Stadium Drive Bozeman, MT 59715 WATER MAIN AND SEWER MAIN EASEMENT THE GRANTOR(S), THE STATE OF MONTANA, for the use and benefit of Montana State University, for and in consideration of Ten and No/100 - Dollars, and other valuable consideration, in hand paid, conveys and warrants to the CITY OF BOZEMAN, a Municipal Corporation of the State of Montana, with offices at 121 North Rouse Avenue, Bozeman Montana 59715, its successors or assignees, a perpetual, full and unrestricted water main and sewer main easement, over, under, along, through, and across the following -described tract of land located in Gallatin County, Montana: A water main and sewer main easement to the City of Bozeman, on a tract of land located in Tract A of Certificate of Survey No. 2729, situated in the NW1/4 of Section 14, Township 2 South, Range 5 East, P.M.M., Gallatin County, Montana, according to the official survey thereof on file and of record in the office of the County Clerk and Recorder, Gallatin County, Montana, more particularly described as shown on Exhibit A and Exhibit B; All improvements are the property of the CITY OF BOZEMAN, removable at its option. The failure of the GRANTEE to exercise any of its rights granted herein shall not be construed as a waiver or abandonment of the right. The above-named Grantor hereby covenants with the CITY OF BOZEMAN that said Grantor has good title to the above-described tract of land and covenants that the CITY OF BOZEMAN shall have quiet and peaceable possession thereof; and shall have a free and unrestricted right to maintain said facilities as long as the right-of-way of which this easement area is a part, remains a public water main and sewer main easement. CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 1 of 3 PROJECT NAME: MSU FARM 9� CITY OF BOZEMAN PROPERTY UTILITY EASEMENT Engineering Division Public Works Department PROJECT#: 4524.11402.04 ei gg �� PARCEL M 1 q�!CO.o� WATER MAIN AND SEWER MAIN EASEMENT WATER MAIN AND SEWER MAIN EASEMENT THE GRANTOR(S), THE STATE OF MONTANA, for the use and benefit of Montana State University, for and in consideration of Ten and No/100 - Dollars, and other valuable consideration, in hand paid, conveys and warrants to the CITY OF BOZEMAN, a Municipal Corporation of the State of Montana, with offices at 121 North Rouse Avenue, Bozeman Montana 59715, its successors or assignees, a perpetual, full and unrestricted water main and sewer main easement, over, under, along, through, and across the following -described tract of land located in Gallatin County, Montana: A water main and sewer main easement to the City of Bozeman, on a tract of land located in Tract A of Certificate of Survey No. 2729, situated in the NW1/4 of Section 14, Township 2 South, Range 5 East, P.M.M., Gallatin County, Montana, according to the official survey thereof on file and of record in the office of the County Clerk and Recorder, Gallatin County, Montana, more particularly described as shown on Exhibit A and Exhibit B; All improvements are the property of the CITY OF BOZEMAN, removable at its option. The failure of the GRANTEE to exercise any of its rights granted herein shall not be construed as a waiver or abandonment of the right. The above-named Grantor hereby covenants with the CITY OF BOZEMAN that said Grantor has good title to the above-described tract of land and covenants that the CITY OF BOZEMAN shall have quiet and peaceable possession thereof; and shall have a free and unrestricted right to maintain said facilities as long as the right-of-way of which this easement area is a part, remains a public water main and sewer main easement. CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 1 of 3 Dated this 17 day of (A h Cl 20 �lU THE STATE OF MONTANA, for the use and benefit of Montana State University "I (;�, o n -P By: Dr. ade Cruza Montana State Un fy President ACKNOWLEDGMENT OF GRANTORS STATE OF mrm}an6 ) ) ss County of is ) On this day of , 20_, before me, the undersigned, a Notary Public in and for the said State, personally appeared the Grantor, The Montana State University President, authorized signatory for MONTANA STATE UNIVERSITY, known to me to be the identical individual who executed the foregoing instrument, who acknowledged to me that said individual executed the same as the free and voluntary act of said company, with full authority to do so and with full knowledge of its contents, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this day and year above written. -Ty1I1 S `XYl SAYumcr"� WA S a CV r i0 WLC&0't & ):)'eVTCe rne_. AYL 3uvv 20, 2D1to bv3 W OL6LQ-A (ruzaG O 4;A,1�- (- _IMLA Notary Public in and for the State of yp ek My Commission Expires: Q�MAus-iI,^?,{� _"1 """` CHRISTINA C FOURNIER Notary Public ��Q'NpTARlg4 for the State of Montana = N.. SEAL.�Q Residing at: Bozeman, Montana %9 • • • .. My Commission Expires: ,• "I ", , August 30, 2017 CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 2 of 3 CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the CITY OF BOZEMAN, a Municipal Corporation of the State of Montana, Grantee herein, acting by and through its City Manager and City Clerk for the City of Bozeman, hereby accepts for public purposes, the real property, or interest therein, described in this instrument and consents to the recordation thereof: CITY OF BOZEMAN C'"- ?�" Date: By: Chris Kukulski City Manager ATTEST: STATE OF MONTANA ) )ss. County of Gallatin ) The foregoing instrument was acknowledged before me this 30 day of � -- 201(9 by Chris Kukulski and •Staey-131 , known to me to be the City Manager and City Clerk for the City of Bozeman and the persons whose names are subscribed to this instrument, and acknowledged to me that they executed the same for and on behalf of the City of Bozeman. IN WITNESS WHEREOF, I have hereunto set my hand and affixe fficial seal this day and year above written. NY GAO ANTHONY GADDO B0 Notary Public �,oTnaigi ;o for the State of Montana By: Residing at: Bozeman, Montana City Clerk My Commission Expires: "", I % ` January 30, 2019 7C�°e �C'C1J °°•E` 'Iti' • Cp. X10 STATE OF MONTANA ) )ss. County of Gallatin ) The foregoing instrument was acknowledged before me this 30 day of � -- 201(9 by Chris Kukulski and •Staey-131 , known to me to be the City Manager and City Clerk for the City of Bozeman and the persons whose names are subscribed to this instrument, and acknowledged to me that they executed the same for and on behalf of the City of Bozeman. IN WITNESS WHEREOF, I have hereunto set my hand and affixe fficial seal this day and year above written. NY GAO ANTHONY GADDO ` Notary Public �,oTnaigi ;o for the State of Montana N�.SF,A],..=Q; Residing at: Bozeman, Montana '�9OFMO�P My Commission Expires: "", I % ` January 30, 2019 Notary Pu-bTi—c in and for the My Commission Expires: _ CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 3 of 3 EXHIBIT A TRACT A OF CERTIFICATE OF SURVEY NO. 2729, SITUATED IN THE NW1/4 OF SECTION 14, TOWNSHIP 2 SOUTH, RANGE 5 EAST, PRINCIPAL MERIDIAN, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA. BASIS OF BEARING BEARINGS FOR THIS PLAT ARE GRID BASED ON THE MONTANA STATE PLANE COORDINATE SYSTEM TCHLINE I 32' I TRACT A CERTIFICATE OF SURVEY NO. 2729 i •• Zi "PARCEL 1" EASEMENT AREA 43,680 SQUARE FEET 1.003 ACRES I I I I� I I I I I� 32' I f 0 M L0 CV I� 00 Lf) r O r I S89006'07"E 1 31.91' I� NO°00'00"E r J 35.76' N89°04'01"W�— 14 82'70' FOUND ALUMINUM TRACT B CAP CERTIFICATE OF SURVEY NO. 2729 80 0 40 80 Lu z J Z O U w U) LL O w Z w U O 2 ryH O z Lu cn Q � u - U N Qw� �UO LL H Lu U S88055'37"E 19.53' S 1 ° 11'35"W /-36.53' P.O.B. N 1 ° 11'35 13.33' TRACT B CERTIFICATE OF SURVEY NO. 1245 W. GARFIELD ST. NOTFOUND FOUND W.C. 32.5 FT. S89°01'22"E 45 A 1.\ (T) SOUTH -. - _CN N38°40'02"W �) 20.97' 1 32' 1 Lo �I L`)I WI c1 "'I °I� zI "PARCEL 1" EASEMENT AREA 43,680 SQUARE FEET 1.003 ACRES I� I I I I I� I S88046'02"E 1 23.23' N 1 ° 13'58"E 1 J 20.00' ----r-- N88°46'02"W 1 23.23' 32' Lu z J Z O U w U) LL O x W z > w � U D 2 U) LL� U) N U w r U Oz O z w w U 0i Ir- d O � CM N W L0 E m In r - Ch o 0 o Z CHLINE EXHIBIT B TRACT A OF CERTIFICATE OF SURVEY NO. 2729, SITUATED IN THE NW 1/4 OF SECTION 14, TOWNSHIP 2 SOUTH, RANGE 5 EAST, PRINCIPAL MERIDIAN, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA. WATER MAIN AND SEWER MAIN EASEMENT: A WATER MAIN AND SEWER MAIN EASEMENT, over and across Tract A of Certificate of Survey No. 2729, situated in the NW1/4 of Section 14, Township 2 South, Range 5 East, Principal Meridian, City of Bozeman, Gallatin County, Montana, more particularly described as follows: Commencing at the Center One-quarter Corner of Section 14, Township 2 South, Range 5 East, Principal Meridian, being a found rebar with an aluminum cap, two inches diameter, 14531 LS; thence N.1 °11'35"E., for 13.33 feet to a point on the west boundary of Tract D of Certificate of Survey No. 1243A, the POINT OF BEGINNING; thence N.89004'01"W., for 82.70 feet; thence N.0000'00"E., for 35.76 feet; thence S.89006'07"E., for 31.91 feet; thence NA °13'58"E., for 707.18 feet; thence N.88°46'02"W., for 23.23 feet; thence N.1 013'58"E., for 20.00 feet; thence S.88°46'02"E., for 23.23 feet; thence N.1'1 3'58"E., for 510.51 feet; thence N.38040'02"W., for 20.97 feet, to a point on the south right-of-way of West Garfield Street; thence S.89°01'22"E., along the south right-of-way of West Garfield Street for 45.44 feet; thence S.1 013'58"E., for 1253.01 feet; thence S.88°55'37"E., for 19.53 feet, to a point on the west boundary of Tract D of Certificate of Survey No. 1243A; thence S.1°11'35'W., for 36.53 feet, to the POINT OF BEGINNING. The area of the described tract of land being 43,680 square feet, or 1.003 acres, more or less. CERTIFICATE OF SURVEYOR I, Daniel J. Boers, Montana Professional Land Surveyor License No. 14732LS, hereby certify that Exhibit A and Exhibit B were prepared under my supervision in March of 2016. ? ''Np t, TAA Dated this �_ day of SUit%� , A.D., 2016. DAld1E:. J. 5C ;S Daniel J. Boers, LS, GFedS 14732 LS MT Reg. No. 14732LS Morrison-Maierle, Inc. SOUTH UNIVERSITY AREA BO Technology Biwl- West Bozeman. nt7 59718 DRAWN BY: SRN_ WATER MAIN AND SEWER MAIN PROJECT N0.n®"^1JL n /I' CHILD. BY: DJB BOZEMAN MONTANA o437072M Phane: (406) 567-OT11 APpR, BY: WATER MAIN AND SEWER MAIN EXHIBIT I'�/ I Fax: (406)922-6702 DATE: WIM16 engineers � surveyors • P93nnets+ scientists cOPYMWffC.ihIX{2'„1#L144iFW.[.�,p,fi EASEMENT EXHIBIT EX. B N:104771072.02ACAMExhibatstSewar Emrwrnonl_Eshibit.ow0 P9otted by danie1 j. boars M M0r11&2016 Return to: DOWL 2090 Stadium Drive Bozeman, MT 59715 f,�o�8O2v�,yr PROJECT NAME: MSU FARM QTc. 9 CITY OF BOZEMAN PROPERTY UTILITY EASEMENT Engineering Division PROJECT#: 4524.11402.04 azo Public Works Department CVP. th'0 PARCEL M 2 —0. SEWER MAIN EASEMENT SEWER MAIN EASEMENT THE GRANTOR(S), THE STATE OF MONTANA, for the use and benefit of Montana State University, for and in consideration of Ten and No/100 - Dollars, and other valuable consideration, in hand paid, conveys and warrants to the CITY OF BOZEMAN, a Municipal Corporation of the State of Montana, with offices at 121 North Rouse Avenue, Bozeman Montana 59715, its successors or assignees, a perpetual, full and unrestricted sewer main easement, over, under, along, through, and across the following -described tract of land located in Gallatin County, Montana: A sewer main easement to the City of Bozeman, on a tract of land located in Tract D of Certificate of Survey No. 1243A, located in the NE1/4 of Section 14, Township 2 South, Range 5 East, P.M.M., Gallatin County, Montana, according to the official survey thereof on file and of record in the office of ©� the County Clerk and Recorder, Gallatin County, Montana, more particularly described as shown on Exhibit A and Exhibit B; All improvements are the property of the CITY OF BOZEMAN, removable at its option. The failure of the GRANTEE to exercise any of its rights granted herein shall not be construed as a waiver or abandonment of the right. The above-named Grantor hereby covenants with the CITY OF BOZEMAN that said Grantor has good title to the above-described tract of land and covenants that the CITY OF BOZEMAN shall have quiet and peaceable possession thereof; and shall have a free and unrestricted right to maintain said facilities as long as the right-of-way of which this easement area is a part, remains a public sewer main easement. CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 2 PROJECT#: 4524.11402.04 Page 1 of 3 Dated this 11 day of �u e 201l THE STATE OF MONTANA, for the use and benefit of Montana State University 6& C By: Dr. W d�Cruzdo Montana Stat University President ACKNOWLEDGMENT OF GRANTORS STATE OF p,) ) ss County of 4awchm ) On this day of , 20—, before me, the undersigned, a Notary Public in and for the said State, personally appeared the Grantor, The Montana State University President, authorized signatory for MONTANA STATE UNIVERSITY, known to me to be the identical individual who executed the foregoing instrument, who acknowledged to me that said individual executed the same as the free and voluntary act of said company, with full authority to do so and with full knowledge of its contents, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this day and year above written. ACknovvlri_d�e�l.. '►�.�� �� 6YL Jt�Y� e 2-D, 227 to Waded- Cru-Zad� Notary Public in and for the State of YYl( My Commission Expires: �I:d St _� T2 01-1 FOU",�/' CHRISTINA PUO cRNIER ` Q\���NA ��•'NOT�Riq� :9: for the State of Montana * _ ,-SEAL.-*'*- TSEAL.2Q; Residing at: Bozeman, Montana 9P; >�OF MO My Commission Expires: ,,,,,,, , August 30, 2017 CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 2 PROJECT#: 4524.11402.04 Page 2 of 3 CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the CITY OF BOZEMAN, a Municipal Corporation of the State of Montana, Grantee herein, acting by and through its City Manager and City Clerk for the City of Bozeman, hereby accepts for public purposes, the real property, or interest therein, described in this instrument and consents to the recordation thereof: CITY OF BOZEMAN Date: By: Chris Kukulski City Manager ATTEST: By: ,. City Cl&ryr C • �' 1883 .•� STATE OF MONTANA )ss. County of Gallatin ) The foregoing instrument was acknowledged before me this �0' day of 77vti.c._ 20/b by Chris Kukulski and Stasy-104fe , known to me to be the City Manager and City Clerk for the City of Bozeman and the persons whose names are subscribed to this instrument, and acknowledged to me that they executed the same for and on behalf of the City of Bozeman. IN WITNESS WHEREOF, I have hereunto set my haZryPublic =the y and year above written. -- Montana �pNY 0 ANTHONY GADDO My Commission Expires: kzzohl 2 o = Notat- Public e;'NOTnia�4t ;o " for the State of Montana *"- * = =, V.SEA1, P2Q`; Residing at: Bozeman, Montana �c pF Moi My Commission Expires: January30, 2019 CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 2 PROJECT#: 4524.11402.04 Page 3 of 3 TRACT D OF CERTIFICATE OF SURVEY NO. 1243A, SITUATED IN THE NE 1 /4 OF SECTION 14, TOWNSHIP 2 SOUTH, RANGE 5 EAST, TRACT D PRINCIPAL MERIDIAN, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA. ;ATE OF SURVEY TRACT D 10. 1243A BASIS OF BEARING CERTIFICATE OF SURVEY BEARINGS FOR THIS PLAT ARE GRID BASED ON NO. 1243A THE MONTANA STATE PLANE COORDINATE SYSTEM 645.05 -�N88°55'37 "W 645.04' 45.04' N88°39'01 "W 640.00 S----------------------------- ' ---------- ----------------------- 5 - -645.04�- T OF TERMINATION -RACT B ATE OF SURVEY JO. 1245 "PARCEL 2" N88055'31 "W 2572.18' EASEMENT AREA EAST - WEST CENTER OF SECTION LINE 75,497 SQUARE FEET 1.733 ACRES TRACT B CERTIFICATE OF SURVEY NO. 1245 50 o I MEMorrison mom Maierle engineers • surveyors • planners • scientists I I TRACT B-1 N60°36'653';2 FOUND CERTIFICATE OF SURVEY M.D.T. NO. 1245A Mi NUMEI 2880 Technology Blvd -West DRAWN BY: CRN SOUTH UNIVERSITY AREA SEWER MAIN LU �Z) Bozeman, AIT 59718 DSGN. BY: DB Z z z wjLU BOZEMAN MONTANA j Q APPR. BY: DB ILL Fax: (406) 922-6702 DATE: 03/2016 --M1,.0—sa,,,.,p,E, E11.,— SEWER MAIN EASEMENT EXHIBIT Ex. A TRACT D �I °' _ CERTIFICATE OF SURVEY"PARCEL o o 2" EASEMENT AREA N0.1243A POINT OF BEGINNING wlo �o '.'52"W 635.00' 75,497 SQUARE FEET p z 1.733 ACRES - - - -.- - - - - - - - - - - - - - - N88°26'13"W 596.53' -��---------------- 596.23' cn--------------,--LU w — — — -- riF z z — — - </ �H<yF - - - - - - - - ---� __ Cn 15.01' N88°55'31 "W 2572.18' 596.84' -��-- 1/4 , 7' 13 TRACT B CERTIFICATE OF SURVEY NO. 1245 50 o I MEMorrison mom Maierle engineers • surveyors • planners • scientists I I TRACT B-1 N60°36'653';2 FOUND CERTIFICATE OF SURVEY M.D.T. NO. 1245A Mi NUMEI 2880 Technology Blvd -West DRAWN BY: CRN SOUTH UNIVERSITY AREA SEWER MAIN PROJECT NO. Bozeman, AIT 59718 DSGN. BY: DB 0417.072.02 BOZEMAN MONTANA Phone: (406) 587-0721 APPR. BY: DB EXHIBIT Fax: (406) 922-6702 DATE: 03/2016 --M1,.0—sa,,,.,p,E, E11.,— SEWER MAIN EASEMENT EXHIBIT Ex. A Plotted by daniel j. b— on Mar/16/2016 TRACT D OF CERTIFICATE OF SURVEY NO. 1243A, SITUATED IN THE NEI/4 OF SECTION 14, TOWNSHIP 2 SOUTH, RANGE 5 EAST, PRINCIPAL MERIDIAN, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA. SEWER MAIN EASEMENT: A SEWER MAIN EASEMENT, over and across Tract D of Certificate of Survey No. 1243A, situated in the NE1/4 of Section 14, Township 2 South, Range 5 East, Principal Meridian, City of Bozeman, Gallatin County, Montana, being thirty feet wide (30'), fifteen feet (15') on each side of the following described centerline: Commencing at the One-quarter Corner between Section 13 and Section 14, Township 2 South, Range 5 East, Principal Meridian, being a found rebar with a Montana Department of Transportation aluminum cap, two inches diameter, 16411 LS; thence N.60036'59"W., for 63.12 feet to a point on the west right-of-way of South 19th Avenue, the POINT OF BEGINNING; thence N.88°26'13"W., for 596.53 feet; thence N.89e12'52"W., for 635.00 feet; thence N.88°39'01 "W., for 640.00 feet; thence N.88°55'37"W., for 645.04 feet, to a point on the east boundary of Tract A of Certificate of Survey No. 2729, being the POINT OF TERMINATION; from which the Center One-quarter Corner of Section 14 bears S.101 1'35"W., 34.86 feet distant. The area of the described tract of land being 75,497 square feet, or 1.733 acres, more or less. CERTIFICATE OF SURVEYOR I, Daniel J. Boers, Montana Professional Land Surveyor License No. 14732LS, hereby certify that Exhibit A and Exhibit B were prepared under my supervision in March of 2016. �—� �ONTq�,� Dated this day of ,J � A11 " A.D., 2016. DANIEL J. Daniel J. Boers, L (CFedS BOERS 14732 LS MT Reg. No. 14732LS Morrison-Maierle, Inc./0 Morrison DRAWN SOUTH UNIVERSITY AREA 2680 Technology Blvd -West Bozeman. R9T 587x8 BY; CRN CNtro BY.J..o B SEWER MAIN BOZEMAN PROJECT NO - 0417.072.02 MaierPhone: (406) 587-0721 APPR. BY: MONTANA SEWER MAIN Fax: 1406) 922.6702 DATE: 3170716 engineers .. ca surveyors .. planners . scientists wR!raar,x+OaMsOt�a�urm.r.ux:_xna EASEMENT EXHIBIT EX. EA. B N:404171072.02WCAD4Fx ibitslSewer sem Eaent Exhlbitdwg Ptottedbydanieti.beeMon Mar11S120t6 o B 2 CITY OF BOZEMAN PROJECT NAME: MSU FARM Engineering Division SANITARY SEWER EASEMENT * Public Works Department PROJECT #: 4524.11402.041 MEMORANDUM OF UNDERSTANDING 0417.072.02 PARCFI ft- I eKin '9 Engineer's Opinion of Probable Cost Morrison Maierle engineers surveyors planners scientists Water Line ENGINEER'S OPINION Estimated OF PROBABLE COST* Date: 3/28/2016 Project #: 0417.072 Project Name: South University Area - Water Line Engineer: J Nickelson Water Line CONSTRUCTION SUB -TOTAL $105,100 ENGINEERING 15% $15,800 CONTINGENCY 15% $15,800 TOTAL PROJECT COST $120,900 Estimated Item No. Description Quantity Unit Unit Price Total Cost 101 Mob/Demob 1 LS $2,900.00 $2,900 102 Taxes, Bonds , and Insurance 1 LS $1,900.00 $1,900 103 General Requirements 1 LS $4,800.00 $4,800 105 8" Ductile Iron 1,290 LF $50.00 $64,500 106 Fire Hydrant 2 LF $6,000.00 $12,000 107 8" Gate Valve 3 EA $1,500.00 $4,500 108 8" Fitting 4 EA $500.00 $2,000 109 Connect to Existing System 1 EA $2,500.00 $2,500 110 Restoration 1 LS $10,000.00 $10,000 CONSTRUCTION SUB -TOTAL $105,100 ENGINEERING 15% $15,800 CONTINGENCY 15% $15,800 TOTAL PROJECT COST $120,900 CITY OF BOZEMAN PROJECT NAME: MSU FARM SANITARY SEWER EASEMENT Engineering Division * t Public Works Department p q„ PROJECT #: 4524.11402.041 9r oti CO. MEMORANDUM OF UNDERSTANDING 0417.072.02 PARCEL #: 1 AND 2 Appraisals ANAPPRAISAL OF PARCEL 1 LOCATED ON THE SOUTH SIDE OF GARFIELD STREET IN BOZEMAN, MONTANA DATE OF VAL UA TION MARCH 3, 2016 FOR TONY BECKEN--GADDO DO WL HWM BY J. MICHAEL JOKI, MAI, SRA HELENA, MONTANA March 24, 2016 Tony Becken-Gaddo, P.E. Dowl HKM 2090 Stadium Drive Bozeman, Montana 59715 T MICHAEL-TOKI, MAI, SRA P.O. BOX 281 HELENA, MONTANA 59624 Phone (406) 442-2159 FAX (406) 442-6196 RE: An appraisal of the property owned by Montana State University (Parcel 1) on the south side of Garfield Street in Bozeman, Montana. Dear Mr. Becken-Gaddo: Per our Agreement for Professional Services dated December 8, 2015 I have examined and investigated the above referenced property for the purpose of estimatingits current fair marketvalue before imposition of the sanitary sewer easement, its current fair market value after imposition of the sanitary sewer easement, and for my estimate of compensation due to the property owner. The attached report provides the essential data and detailed reasoning employed in estimating my final value estimates. The report contains 67 pages. The site being valued in this appraisal report is 41.17 acres (see larger parcel discussion on page 25), and supports various out buildings associated with Montana State University. The City of Bozeman intends to impose a 30' sanitary sewer easement along the east property boundary that will total .89 acres. An aerial view of this proposed easement is included in the addenda of this appraisal report. The values reported are qualified by certain definitions, assumptions and limiting conditions, and certification which are set forth within the attached report. This appraisal report is intended to conform with the Uniform Standards of Professional Appraisal Practice. Based on my analysis, the market value of the subject site before imposition of the sanitary sewer easement, as set forth, documented and qualified in the attached report under conditions prevailing on March 3, 2016 was: ONEMILLIONEIGHT HUNDRED FIFTY-TWO THOUSAND SIX HUNDRED FIFTYDOLLARS $1,852,650 MEMBER APPRAISAL INSTITUTE Based on my analysis, the market value of the subject site after imposition of the sanitary sewer easement, as set forth, documented and qualified in the attached report under conditions prevailing on March 3, 2016 was: ONE MILLION EIGHT HUNDRED FOURTEEN SIX HUNDRED TWO DOLLARS $1,814,602 * Value of the Remainder, Before: $1,814,602 Value of the Remainder, After: $1,814,602 Depreciation to Current Fair Market Value: $0 Special Benefits: $0 Value of the New Easement Area: $38,048 My total estimation of compensation is: $38,050(R)* I direct your attention to the data, discussions and conclusions which follow. Respectfully submitted, J. Michael Joki, MAI, SRA Montana State Certified General Real Estate Appraiser #152 * Subject to the Hypothetical and Extraordinary Conditions listed on page 8. MEMBER APPRAISAL INSTITUTE TABLE OF CONTENTS INTRODUCTION Page Letter of Transmittal Certification Assumptions and Limiting Conditions 6 Hypothetical Condition 8 Summary of Important Facts and Conclusions 9 Subject Property Photograph 10 DESCRIPTION, ANALYSIS AND CONCLUSION: Definition of Market Value 11 Purpose of Appraisal 11 Intended Use of the Appraisal and Intended Client 12 Scope of Appraisal 12 Summary of the Appraisal Problem 13 Property Rights Appraised 14 Identification of Property and Legal Description 14 History of the Property 15 Regional Map 16 Regional and City Analysis 17 Neighborhood Analysis 22 Plot Plan 24 Property Description Before the Imposition of the Easement 25 Subject Property Photographs 28 Zoning 31 Highest and Best Use Before 32 The Valuation Process 37 Site Valuation 37 Land Sale Location Map 40 Land Sale Adjustment Grid 41 Bracketing the Subject Property 44 Map Depicting the Easement Area 46 Scope of the Project and Its Affect on the Subject Site 47 Subject Property Photographs 49 Identification of the Site, After 52 Highest and Best Use After 53 The Valuation Process 57 J. Michael Joki, MAI, SRA HELENA, MONTANA Site Valuation Land Sale Location Map Land Sale Adjustment Grid Bracketing the Subject Property Depreciation to Current Fair Market Value Recapulation of Compensation ;_I IMU Property Record Card PLI Zoning Zoning Map Exhibit B Email Explaining Sewer Easement Size Project Aerial Map Sample Public Utility Easement Comparable Land Sale Sheets with Photographs Qualifications of the Appraiser State License J. Michael Joki, MAI, SRA HELENA, MONTANA 59 60 61 64 66 67 I CERTIFY THAT... 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 are 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 I have no personal interest or bias 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 proceeding acceptance of this assignment. 5. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. This appraisal assignment was not based on a requested minimum valuation, or a specific valuation. 6. My analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with The Uniform Standards of Professional Appraisal Practice, and with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. 7. The use of this report is subject to the requirements of the Appraisal Institute relating to the review by its duly authorized representatives. As of the date of this report, I, J. Michael Joki, have completed the requirements of the continuing education program of the Appraisal Institute. I have made a personal inspection of the property that is the subject of this report and have afforded the owner, or their representative, the opportunity to accompany me on the inspection. 10. I have personally inspected and verified the comparable sales relied upon in making this appraisal. 11. No one provides significant real property appraisal assistance to the person signing this certification. 12. I have the necessary level of knowledge and experience to credibly estimate the value of the subject property, or have taken reasonable steps to achieve such competency and to provide a professional appraisal of the subject property, in accordance with the Uniform Standards of Professional Appraisal Practice. MEMBER APPRAISAL INSTITUTE 13. I am currently licensed in the State of Montana (Certificate #152) as a Certified General Real Estate Appraiser, and hold the MAI and SRA designations conferred by the Appraisal Institute. DATE: March 24, 2016 SIGNATURE: Appraised By: J. Michael Joki, MAI, SRA Certified General #152 MEMBER APPRAISAL INSTITUTE ASSUMPTIONS AND LIMITING CONDITIONS This is to certify that the appraiser in submitting this statement and opinion of value of subject property acted in accordance with and was bound by the following principles, limiting conditions and assumptions. Unauthorized use of this report is set forth below. No responsibility is assumed for matters that are legal in nature nor is any opinion rendered on title of property appraised. 2. Unless otherwise noted, the property has been appraised as though free and clear of all encumbrances. All maps, areas, plans, specifications, and other data furnished your appraiser were assumed to be correct. No survey of the property was made by this firm. Furthermore, all numerical references to linear measurements, area, volume or angular measurements should be assumed to be "more or less" (+/-) and are accurate to a degree consistent with their use for valuation purposes. 4. This appraisal considers only surface rights to the property with consideration of current zoning and land use controls. The estimate of highest and best use will form the basis for the value estimate. This appraisal does not consider mineral, gas, oil or other natural resource rights that may be inherent in the ownership of the property. 5. In this appraisal assignment any potentially hazardous material found on the land which may or may not be present on the property, has not been considered. The appraiser is not qualified to detect such substances. Any interested party is urged to retain an expert in this field if there is any question regarding such potentially hazardous material. If such material or substance is present it could adversely affect the value reported. 6. The appraiser is not a seismologist. This appraisal should not be relied upon as to whether a seismic problem exists, or does not actually exist on the property. The property which is the subject of this appraisal is within a geographic area where earthquakes and other seismic disturbances have previously occurred and where they may occur again. Except as specifically indicated in the report, no seismic or geologic studies have been provided to the appraiser concerning the geologic and/or seismic condition of the property. The appraiser assumes no responsibility for the possible effect on the subject property on seismic activity and/or earthquakes. I have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with any seismic requirements by the City or County. It is possible that a survey of the property could reveal that the property does not meet the required seismic requirements. If so, this fact could have a negative effect upon the value of the property. Since I have no direct evidence relating to this issue, I did not consider possible noncompliance requirements in estimating the value of the property. 7. All data contained in this report and in the appraiser's files, as obtained from other sources, upon which to any degree the opinions and conclusions were based, are considered reliable and believed to be true and correct. However, the appraiser does not assume responsibility for the accuracy of such items that were obtained from other parties. J. Michael Joki, MAI, SRA HELENA, MONTANA 8. There shall be no obligation to give testimony or attendance in court by reason of this appraisal with reference to the property in question unless arrangements have been previously made and at an additional fee. Disclosure of the contents of this appraisal report is governed by the by-laws and regulations of the Appraisal Institute. Neither all nor any part of the contents of this report especially the conclusions as to value, the identity of the appraiser, or the film with which he is connected, or to the MAI and SRA designations, shall be disseminated to the public through advertising media, news media, public relations media, sales media, or any other public means of communication without the prior written consent of the appraiser. 10. J. Michael Jold, MAI, SRA, specifically does not authorize the out -of -context quoting from or partial reprinting of this appraisal report. 11. The liability of J. Michael Joki, MAI, SRA and employees is limited to the client and to the fee collected. Further, there is no accountability, obligations or liability to any third party. If this report is placed in the hands of anyone other than client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraiser assumes no responsibility for any costs incurred to discover or correct any deficiencies of a" type present in the property; physically, financially, or of a legal nature. 12. The fee for this appraisal report is for the service rendered and not for time spent on the physical report or for the physical report itself. 13. This appraisal report is prepared for the appraisers' client Dowl HKM. It is my understanding Dowl HKM is working in conjunction with the City of Bozeman on this sanitary sewer easement project. No third parties are authorized to rely upon this report without the express written consent of the appraiser. 14. This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an Appraisal Report. As such, it presents discussions of the data, reasoning, and analysis that were used in the appraisal process to develop the appraiser's opinion ofvalue. Supporting documentation concerning the data, reasoning and analysis is contained in the appraiser's file. J. Michael Joki, MAI, SRA HELENA, MONTANA HYPOTHETICAL CONDITION A hypothetical condition is a condition that is contrary to what exists but is supposed for the purpose of the analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the subject property, such as conditions or trends; or about the integrity of data used in an analysis. As of the effective date of this appraisal report the sanitary sewer easement has not been imposed on the subject property and if all parties are in agreement the easement will be imposed at a future date. The value of the subject site after the imposition of the easement is subject to this easement being recorded and imposed on the subject site as explained in this appraisal report. The analysis after the imposition of the easement would not be reasonable not would the value conclusion be creditable if this project is not completed. EXTRAORDINARY ASSUMPTION AND LIMITING CONDITION An extraordinary assumption is an assumption is that is directly related to a specif assignment, which, if found to false, could alter the appraisers opinions or conclusions. Extraordinary assumptions assume as fact otherwise uncertain information about the 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 the analysis. The current zoning for the subject property is PLI ( Public Lands and Institutions). I spoke with Tom Rogers at the City of Bozeman Planning Department concerning the current zoning and the potential of a zoning change if the subject property were in private ownership. I have been asked to estimate the market value of the subject property which is based on the highest and best use of this site, and as explained in the highest and best use analysis the highest and best use of this site is for conversion to a zoning ordinance that would accommodate a commercial or multi family use, but more likely a multi family use. In order to be consistent with the highest and best use analysis sales with the same or a similar use are analyzed in this appraisal report. If the information provided by Tom Rogers is found to be false it could change my conclusion to value in this appraisal report. J. Michael Joki, MAI, SRA HELENA, MONTANA 8 SUMMARY OFIMPORTANT FACTS AND CONCLUSIONS PURPORTED OWNER.- Montana State University LOCATION OF PROPERTY.- This site is located on the south side of Garfield Street and just west of 19th Avenue in Bozeman, Montana. LAND SIZE: As shown on the Montana Cadastral Property Record Card contained in the addenda this site is 41.17 acres. PROPOSED SANITARY SE 1VER EASEMENT AREA: IMPROVEMENTS: PROPERTY RIGHTS APPRAISED: ZONING: PRESENT USE: .89 Acres. The site is improved with several out buildings including the Bob Miller Pavilion associated with Montana State University. Fee Simple PLI (Public Lands and Institutions) Supports various out buildings associated with Montana State University. HIGHEST AND BEST USE: Multi family DATE OF VALUATION. March 3, 2016 CONCLUDED ESTIMATE OF MARKET VALUE BEFORE IMPOSITION OF THE EASEMENT. $1,852,650 CONCLUDED ESTIMATE OF MARKET VALUE AFTER IMPOSITION OF THE EASEMENT. $1,814,602* DEPRECIATION OF CURRENT FAIR MARKET VALUE: $0* TOTAL ESTIMATE OF COMPENSATION.• $38,050* *Subject to the Hypothetical and Extraordinary Conditions Listed on page 8. J. Michael Joki, MAI, SRA HELENA, MONTANA 9 SUBJECT PROPERTYPHOTOGRAPH Aerial view of the subject property. Approximate location of the property boundaries are outlined in red. J. Michael Joki, MAI, SRA HELENA, MONTANA 10 DEFINITION OF MARKET VALUE The current fair market value has been developed and refined by the State of Montana and found in state statute MCA70-30-313 and is as follows: "Current fair market value is the price that would be agreed to by a willing and informed seller and buyer, taking into consideration, but not limited to the following factors 1. The highest and best reasonably available use and its value for such use, provided current use may not be presumed to be the highest and best use; 2. The machinery, equipment, and fixtures for the part of the real estate taken; 3. Any other relevant factors as to which evidence is offered." PURPOSE OF THE APPRAISAL The purpose of this appraisal report is to arrive at a supportable estimation of the market value. J. Michael Joki, MAI, SRA HELENA, MONTANA 11 INTENDED USE OF THE APPRAISAL AND INTENDED CLIENT It is understood that the intended use of this appraisal report is to assist Dowl HKM/City of Bozeman in appropriately compensating the property owner for the imposition of a sanitary sewer easement. The client is Dowl HKM, and the intended users of the appraisal report are Dowl HK and the City of Bozeman, Montana. SCOPE OF THE APPRAISAL The scope of this assignment includes a personal inspection of the subject site, reviewing public record information concerning the site and other properties in the immediate neighborhood. Initially I spoke with Tony Becken-Gaddo from Dowl HKM and he explained the City of Bozeman is making improvements to their utilities and would like to extend a sanitary sewer easement along the east boundary of the subject site. This site needs to be valued so the City of Bozeman can appropriately compensate Montana State University for the imposition of this sanitary sewer easement. I inspected the subject site on March 3, 2016 unaccompanied. Prior to my inspection I spoke with Tony Becken-Gaddo and he explained Dan Stevenson is the on site facilities manager who may or may not meet me for the inspection. March 3, 2016 is the day I took all photographs of the subject property and I completed my inspection unaccompanied. To the best of my knowledge and as explained by Tony Becken-Gaddo Montana State University has no issues or concerns with this easement project. Montana State University will be compensated for the portion of their site that is being imposed with the sanitary sewer easement and will also be compensated for any site improvements being impacted. Real estate agents, local MLS Service, developers and appraisers in Bozeman were interviewed in an attempt to find relevant market data. Market data has been confirmed with the buyer, seller or broker involved in the transaction. All of the comparable sales utilized in this appraisal report are described in the body of the report and in more detail on the sale sheets included in the addenda. All known, available, relevant market data considered to have an impact on the market value of the subject site has been considered. The Scope of Work defines an appraiser's conclusions as to what is deemed necessary to provide J. Michael Joki, MAI, SRA HELENA, MONTANA 12 a creditable appraisal report. The client is defined as Dowl HKM/City of Bozeman. The intended user is the client, and the intended use will be to assist the client in appropriately compensating the property owner for the imposition of a sanitary sewer easement. The following sources provided me data that was used in this appraisal report. • Gallatin County Clerk and Recorder's Office • City of Bozeman Planning Department • Tony Becken-Gaddo, Dowl HKM • Todd Olson, Appraiser • Keith O'Reilly, MAI, Appraiser • Ed Jackson, Appraiser • Jason Leap, Realtor • Jack Catron, Realtor • Donnie Olson, Realtor • Sunny Odegard, Appraiser • Lloyd Mandeville, Realtor • Tom Starner, Realtor • Dennis Erickson, Realtor • Brian Cline, Developer SUMMARY OF APPRAISAL PROBLEM Tony Becken-Gaddo provided me the maps and aerial photographs of the sanitary sewer easement project which depicts the subject property, Parcel 1, and Parcel 2 directly to the east which is also being impacted by this same project. The sanitary sewer easement is 30' in width and will be imposed along the entire east property boundary and will total .89 acres. Montana State University will be compensated for the loss of their property rights in this permanent easement area. It is Dowl HKM and the City of Bozeman intent to make the property owner whole after this project is completed and the new sanitary sewer service easement is in place. The "before" condition is based on the "as is" condition of the subject property reflecting its current highest and best, market trends and market data available from which to extract an indication of current market value. In the "after" condition the appraisal is based on the hypothetical condition that the proposed sanitary sewer easement is an encumbrance to the real property. In the "after" condition the impact to the property rights and market value are fully identified and incorporated into the analysis. J. Michael Joki, MAI, SRA HELENA, MONTANA 13 PROPERTYRIGHTS APPRAISED This appraisal is made with the understanding and assumption that present ownership of the subject property includes all rights that may be lawfully owned, and is therefore title in fee simple as of March 3, 2016. A fee simple estate is subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. IDENTIFICATION OFPROPERTYAND LEGAL DESCRIPTION The site that is the subject matter of this appraisal report consists of 41.17 acres and is located on the south side of Garfield Street and across from 29th Avenue. The subject site is located approximately 2 blocks west of 19th Avenue in Bozeman, Montana. The legal description of the land involved is as follows: "The eastern portion of Tract A of Certificate of Survey No. 2729 situated in the NW 1/4 of Section 14, Township 2 South, Range 5 East, Plv i, City of Bozeman, Gallatin County, Montana ". J. Michael Joki, MAI, SRA HELENA, MONTANA 14 HISTORY OF THE PROPERTY To best of my knowledge Montana State University has owned this land for 40+ years and this land has since supported buildings associated with the University. As I understand this property is not currently listed for sale. J. Michael Joki, MAI, SRA HELENA, MONTANA 15 REGIONAL MAP • Street Atlas USA4@72005 4Shaunavon I 1 " 1 I Huber - 61acaar �N�orth , s`Cilacler nt F e.Ao L wamon Glacier eo z Olo r Ef-11 Roc yDove onn ien alispell t' Fl —­ R---t— ,FT. ww Rcaervelion,T. ndl I ql.`lli - P¢Isor♦ -- - eu rest Fails Mc Wald [3laetw ��� - Qlooi{e�rif a3 yyy Le Istown Missoula 12 > Helena r=,t 3 2a7 Ary Gonda., li � e Bozeman 03 � Salmon Y \ P .. - C3rasshopper C3lacfer - ..( i z12 _=k __ _ —- _—_—___—_—_ \ 310 I 1-0A Challis �I I Worland exbur>) I Data use subject to license.7� mi © 2004 Del-orme. Street Atlas USA® 2005. al O 16 32 48 64 80 w vvw.delorme.com MN (0.0' W) Data Zoom 6-2 J. Michael Joki, MAI. SRA HELENA, MONTANA 16 REGIONAL AND CITYANAL YSIS Bozeman is the county seat of Gallatin County and is one of 56 counties in the State of Montana. Gallatin County is located in a mountainous area of Montana north of the Montana/Wyoming border and Yellowstone National Park. Bozeman primarily lies on the south side of Interstate 90 and is located approximately 140 miles west of Billings, Montana and 80 miles east of Butte, Montana. Gallatin County has grown faster than any other county in the State of Montana over the past decade according to the Census Bureau. Gallatin County includes almost 2,500 square miles of mountainous lands that offer a variety of topography and climate. Nearly half of Gallatin County is under public ownership by the Gallatin National Forest, State of Montana, Bureau of Land Management or the National Park Service. Forces Influencing Property Values The value of real estate is influenced by the interaction of four major forces. Social considerations, economic considerations, government and environmental considerations. The four forces are discussed as follows: Social Considerations Social forces are exerted largely by population characteristics, including population growth, density, and age distribution. According to the U. S. Census Bureau the population of the City of Bozeman increased from 27,509 in 2000 to 37,280 as of April, 2010 and increase of nearly 9,800 people. This represents an increase in population of approximately 35.5% over this 10 year period, or an average rate of growth of about 3.55%/year. From April, 2010 to April, 2012 the population increased from 37,280 to 38,695, an increase of nearly 1,415 people which equated to a growth of 3.8% over this time frame. Gallatin County's population increased from 67,831 in 2000 to 89,513 in 2010 or approximately 21,700 people. This represents an increase in population of approximately 32% over a 10 year period or an average growth rate of 3.2%/year. Between April, 2010 and April, 2012 the population increased from 89,513 to 92,614 people or 3,101people which equates to a growth rate of about 3.5% over this time period. Comparatively, the State of Montana grew from 989,417 people in April 2010 to 1,005,140 people in 2012 or 15,724 people which equates to a growth rate of 1.6% over that time frame. In addition to population growth the City of Bozeman continues to see growth in its geographic size. In 1990 the City of Bozeman was approximately 6,420 acres (± 10 square miles) and by the end of 2009 it had expanded to 12,300 acres (±19.25 square miles) resulting in an increase of ±92% over this 19 year period. This growth was to accommodate the increasing population which required new land for residential, commercial and industrial development. This growth significantly slowed in 2009 and 2010 which was being seen all throughout J. Michael Joki, MAI, SRA HELENA, MONTANA 17 this region as the national economic recession took effect. Bozeman has a significantly lower home ownership rate than most other communities in the county primarily due to the student body of Montana State University. Bozeman also has a smaller average household size and a smaller portion of families than other areas of Gallatin County. Bozeman has an average household size of 2.27 people while the average household size for Gallatin County is 2.49 people. Just over half of the Bozeman households are families compared to ±63% countywide. The population of Bozeman is considerably younger than Gallatin County as a whole, and even more so, in comparison to the State of Montana. Again this emphasizes the significance of Montana State University being located in Bozeman. Bozeman and Gallatin County has transformed over the past decade from a primarily agricultural based community to a tourism related community. Bozeman and Gallatin County offers a high quality of life due to its low crime rate, offering of many cultural experiences, the presence of Montana State University and its education offerings. An abundance of outdoor activities that include excellent downhill snow skiing, world class fly fishing rivers, streams and access to numerous state and federally owned lands are all nearby. Economic Considerations Bozeman, like many communities in Montana experienced significant growth in population and economy for a number of years. This area was affected by the national recession just like many other areas in the country however new growth and development has begun again and the outlook for Bozeman and the vicinity is quit positive based on a number of factors. • County seat of Gallatin County. • Wide range of skills in the labor force. • Home of Montana State University. • Well located in southwestern Montana. • Numerous recreational opportunities Bozeman is somewhat unique when compared to other communities in Montana because there are few employers who employ a large amount of the population. Missoula, Montana, as an example was very dependent on the lumber and timber industry and Butte, Montana had always relied heavily on the mining industry. When those industries slowed those communities were very heavily impacted. The primary employer in Bozeman is Montana State University. Other major sectors of the economy that provide employment are construction, local and state government, manufacturing, technology, agricultural and retail service. Montana State University currently employs about 3,500 people as permanent faculty/staff and they also employ over 2,000 students in part time work. In the fall of 2,013 the student enrollment at MSU was slightly over 15,000 J Michael Joki MAI SRA HELENA, MONTANA 18 people which certainly has a significant affect on the local economy. Other major employers in Gallatin County include the State of Montana, Gallatin County, the City of Bozeman, Bozeman Deaconess Hospital, Right Now Technologies. With such a diverse employment base the local economy tends to be sheltered from a downturn in any of the Country's key employment industries. In 2010 Bozeman was declared as the most expensive place to live in Montana based upon a report by Propera Business Network. This report stated that Bozeman's 2009 cost of living was 4.4% above the national average. The other Montana cities that showed an overall cost of living above the national average were Missoula at 1.8% and Kalispell at 1.5%. Residential rent levels in Gallatin County have remained stable primarily due to the presence of Montana State University. Rents in this community will periodically show a slight decline however they tend to stabilize or even increase rather quickly due to the continued growth of Montana State University. Overall the economic growth has been much stronger in Bozeman and Gallatin County than what is being seen statewide. Historically the sectors in Bozeman and Gallatin County that show the most substantial growth are agricultural services, construction, manufacturing, finance, insurance, real estate and lodging. Currently the unemployment rate in Montana is 6.4% and Gallatin County recorded a slightly lower unemployment rate at 5.8%. Gallatin County's labor force is currently estimated at 52,070 employees, the third largest labor force in Montana's 56 counties. Over the past ±10 years residential building permit activity in the City of Bozeman was on the rise and reached its peak in 2005 and then began to decline over the next 5 years, and most significantly in 2008 and 2009. Residential building permits began to increase again in 2010 and have been on a steady incline. Bozeman has been experiencing new growth in several areas of town but no area has provided as much commercial real estate development at the 19th Avenue corridor. Recent stores and restaurants developed along 19th Avenue include Sportsman's Warehouse, Lowes, IHOP, Bed Bath and Beyond, Staples, World Market and REI. Most recently a new Safeway grocery store (±58,000 SF) was completed in December, 2011 and a Kohls department store (±55,300 SF) was completed in October, 2011. The City of Bozeman facilities over the past 5 years have seen significant development and/or renovation which includes the fire stations, police station, waste water treatment facilities, the completion of a downtown parking garage, City of Bozeman Library, construction of the Gallatin County Detention Center, an expansion of the landfill building etc. Montana State University has also seen significant expansion and renovation which include a significant remodel of the football stadium, addition of the Molecular Biology Center, renovations to the Health and Physical Education Center, addition of the Black Box Theater, renovation of Gaines Hall etc. Tourism brings a significant number of visitors to the Bozeman area. Yellowstone National Park, the first national park in the United States, is located approximately 65 miles south of Bozeman. Big Sky Ski Resort is J. Michael Joki, MAI, SRA HELENA, MONTANA 19 located approximately 45 miles south of Bozeman and has recently been listed as the seventh best ski resort in the United States. This ski area averages over 300" of annual snowfall with skiing available November through April. The Yellowstone Club lies adjacent to Big Sky Ski Resort and is an exclusive vacation/residential development that includes both private skiing and golfing. This exclusive, private development had filed for bankruptcy in 2008 and in 2010 was purchased by Cross Harbor Capital and for several years saw significant decline in sales and values. However the private development has begun to rebound again as sales are starting to climb again. Other ski resorts in Gallatin County include Moonlight Basin which is also adjacent to Big Sky and Bridger Bowl which lies approximately 15 miles to the north of Bozeman. Environmental Considerations Environmental and physical forces, both natural and man made, can influence property values. These forces include climatic conditions, topography and natural barriers, and transportation systems. Bozeman's climate clearly reflects its mountain valley location. Bozeman truly has four seasons with its short summers being pleasant which are typically characterized by warm to hot days and cool nights. The average high temperature in the summer is in the upper 80"s and the average low in the winter is the mid to lower 30"s. Spring tends to come late in the Gallatin Valley as 1/3 of its annual precipitation ±19" falls during May and June. The average annual snowfall in Bozeman is ±72" and the average length of the growing season is about 107 days. The climate of the county varies according to elevation but is generally characterized by relatively cold winters and warm summers. Snow removal is a common operating cost that will affect real estate in the winter months. In contrast air conditioning costs are less during the fairly temperate summer months however heating bills can be quite high during the cold winter months. Bozeman is located on the south side of Interstate 90. Access to the south towards Yellowstone Park is via U.S. Highway 91. There are numerous other state highways and Gallatin County maintained roads that provide access throughout this region. Commercial air service, truck and rail transportation are considered to be adequate. Gallatin Field which is located in the adjacent community of Belgrade is the second busiest airport in the state and provides air service for this area. Governmental Considerations The City of Bozeman is a City Commission/City Manager form of government with an elected municipal judge. There are five commissioners elected with no party affiliation and are elected to a four year term which are overlapping. The City Commissioner elections are held every two years and the terms of the commissioners are staggered and the candidate who receives the most votes in an election becomes the mayor the last two years of their term. J. Michael Joki, MAI, SRA HELENA, MONTANA 20 The City of Bozeman has approximately 40 police officers and the fire department has approximately 18 firefighters plus the Fire Chief, Deputy Chief/Marshall, and seven captains. There are three fire stations in the City of Bozeman and overall the fire and police protection services are considered to be good. The Department of Planning and Community Development processes applications for new development in the city limits. This department enforces the zoning regulations within the city limits of Bozeman. Gallatin County administers all zoning for properties outside the city limits and within the "zoning donut". The Gallatin County Comprehensive Plan encourages development near the existing city limits and/or services and discourages development in more remote locations. In general the planning and zoning regulations in this area are considered stringent. Conclusion Bozeman and Gallatin County has population and overall growth trends that are continuing upward. This area offers a wide variety of outdoor recreational opportunities, cultural resources, tourism, and coupled with the presence of Montana State University this area is poised for continued growth. Bozeman has a young and very well educated work force and coupled with its diverse economy the general outlook for Bozeman, Belgrade and the surrounding small communities is good. Overall the real estate market in Bozeman is strong. 2013 was the first year of strong market conditions after 5+ recession years. Residential and commercial activity has increased significantly. Residential apartment occupancy is more or less at 100% , and commercial lease rates and commercial property values have been increasing as well. J. Michael Joki, MAI, SRA HELENA, MONTANA 21 NEIGHBORHOOD DATA & ANALYSIS The subject property is located near the Southern edge of the Bozeman city limits and more particularly just southwest of the College Street and 19th Avenue intersection. 19th Avenue is a significant north/south arterial street and College Streetis a significant east/westarterial street and their intersection forms the northwest corner of the Montana State University campus. North of College Street is primarily developed with residential properties. Historically this has been a highly sought after neighborhood because of its proximity to the Montana State University Campus. Because of its proximity to campus many of the residential properties in this neighborhood are used as rentals by the university students. South of Campus and particularly along 19th Avenue there has been new residential and commercial development. The Bozeman city limits are continually expanding to the South and around the University campus. Some of Bozemads newer residential subdivisions, with some having homes in the upper end of the single family residential price range for this community, are in this area. This neighborhood has good access to Main Street (downtown district) via 19th Avenue. Interstate 90 can easily be accessed off of Main Street from several roads. Main Street transitions into Huffine Lane as it leads west out of Bozeman and gives direct access tothe Fou- Corners/Belgrade area. As Bozeman continues to expand new residential development, including multi family development, is expected to continue in this area and particularly on land that is in direct proximity to Montana State University. The demand for housing of college students is currently high which is expected to continue in this neighborhood until more housing is developed. Elementary schools, middle school and Bozeman High School are all located nearby. The Gallatin Valley Mall is located on the north side of Huffine Lane and approximately 2 miles to the northwest. City J. Michael Joki, MAI, SRA HELENA, MONTANA 22 water and sewer service is readily available throughout this neighborhood, and natural gas and electrical service are provided throughout the area by Northwestern Energy. I expect this neighborhood will continue to see new development because of the shortage of rental housing. Historically rental properties, either single family or multi family properties, have been in high demand in this neighborhood because of its proximity to the Montana State University Campus. Currently this shortage of housing is being compounded by the growth in student population at the University and overall growth in Bozeman. In my opinion market conditions are expected to remain strong in this neighborhood and most likely market values will appreciate accordingly. This trend is consistent with the trend other neighborhoods are experiencing in the Bozeman city limits. J. Michael Joki, MAI, SRA HELENA, MONTANA 23 PLOT PLAN J. Michael Jold, MAI, SRA HELENA, MONTANA 24 IPA CT 24 IoroT JLO I- -N 1/16 �...... ,tea T Sd95070 N' IJISDB� 11= Mf92Ti7E 13!19• 11 .I�gcl CALOAATM PoNTDN FROM 14 FOUND ON CORNER UaAltFllfS ON !! TRACT B N rt� r �!! 123.198 AC. SEA 7E AMPM RE= N 3-54 iRACI21 6EfY1ROAININ 3-D46 e � _� •iNN��_ep IB'AP SM91g51 UO' - 4.E40 rASDDM OOC y2f409p CO) ADYAMID rTrl rzpff.� IY OrM".l]m ROAD FA4AEM (PUr 195) --- 4 C -N 1/16 SEC 1 �G - I 14, NOTHING UND OR SET THIIS Mn+ar SURVEY h �' .CORNER TO ):T1_ C -N 1/16. TRACT A 82.346 AC. =E 6YW AW flAK P" N4 = 14 FOUND NAIL IN ASPHALT AT CORNER POSITION. A 5/8' REBAR REFERENCE MONUMENT BEARS NO2-53-48-E. 30.43 AS PER CORNER RECORD /118065. THE 5/8' REBAR 6 ALSO A REFERENCE MONUMENT TO THE SOUTHWEST CORNER OF COS 1245, BEARING N75'4327E RSB' FROM THE ACTUAL CORNER POSITION. C43" - SME WWW AM Rett O =IMM 01D s/C rtE A!FH&T A 1893fi3'56'3 1'E 16U aI= 11IR 2s r8 Cos 1M24 T 60' W10E'COIINTY ROADIEASEMENT THIS WITNESS CORNER BEARS N0004'21^a,� z ry . 63W FROM ACTUAL CORNER POSITION. 2npY FOUND NAIL IN ASPHALT AT CORNER POSITION: A 5/8• REBAR k IPC MARKED •60135' BEARS N0039I11'E, 29.67 (RMI). A 5/f REBAR BEARS S3295'47 -W. 34.88' (RM2). A Y AUG BEARS S47TB'28'E 44.47 (RN3). ALC '49555 WE 19 CERTIFICATE OF SURVEY L I Ly SITUATED IN THE SW 1/4 & NW 1/4 OF SECTION 14, T2S, R5E, P.M.M. DESCRIPTION GAUATIN COUNTY, MONTANA MAU wonno A tacct of land located N Ne SN X k NW X of Send. 14, T2S, RBE, Primlpd n Nrldlan Menten, C.N an County, mem-, babg mare parflalmly heaM bu Beglnnln9 at Me NoeeCamr rthet of the Tnot herein dee. being Ne S Medet Comer of Toot*B of COS 1243 and oleo Me SooN.eet Grmr of Tract 2A f Miner Sub 19SA, and aormman to the North 1/18 Come, of Sections 15 and 14; Nene ft, edd Print of Beginning. along Ne Wset line of Section 14, South 0040'5} Wee' 1330.00 feet to Me Quaker Come, M oak SecUane 15 and 14; thence, along Me wet -soot center --U- line 0.old Section 14. North OWSW31• Eae' 25&a3 feet to Me north-eauth aeo eecUon line of add SaaU" 14; Venae, ding edd mti-...U.n IN. North 0041'01- Ewt 1334.9.! feet to the CerdeNl 1/td Cane of eak Sectkn 14, being a Point an the eauth INe. of Tnot CI -A of MNr BB Sub&Won 1A: eee, W thoalong .old Wath One. Se, to ag70Y4' Weet. 2893.19 bet to Me Paht of 8e91nnhg and .mining an area of 1=0 ave. r51RJECT TO AND TOGETHER NIM dl road v4 .111ty weemeeb ee ehaem N MM plat and eb}ct to dl recorded and unnwrded eaeenanb. A tentB. fallaws d land 1-tedh the SW 7[ s NW % of Section 14. T2S, MPrY Jpd NerWon M.-.Co9atln Caunly, Ment... beN9 mono parMculady daecrbetl n Bglmdng at the nateoet corner of Me Tran herein deaabed, beky Me Ouetr Co non of Se.tknv 15 k 14; 'Nene, tern wld Point of Beginning, along Me Wee! INe of oak Section % South OD4C39• Wee' 132687 test b Me Se,M 1/16 Cams commcn b sok Sw9an. 15 and 1A being the northwest aomr of Treat C of OOS 1245, and deo "Tiny the NarMooet Conner of Tract 1 of CCS tl8Z: thenen. North a9471f Eoe' 11-X04 het to the -Monet earner of cold COS 1245; Mww.. 00-X'21- Eee' 130230 feet b Me-ffi.eet wmr of eek COS 1243 and Wng a poht an Me north dght al wy al Slurky Rood; therw% dung wld eight of ed, S.M 697643' Nleef. 1336.00 feet b the eoutheeet conn of eok CAS 1245 bring a point an Me weal Una of odd Swoon It then, along odd w..t ihw of Sealkn i4, Santh 0Utd59' Nee' 3&00 feet th the S Meeet Corny 0 edd Sectian It then.. along the aM INe a ask Saetlan 14. North 5gT6'4S Eml, 2880.45 bet to M. Swth - ' Come, of eeld -- It Mwe. dang tie conte-ewtkn INe. Nor% 0114701' Eoet 2628.26 wt to Me C W Quarte, of wk Secfian 1k Mwa. al.. Me edwtwa center soden 0n. South 8976'31' Eavt 2690.a3 feet to the Print a Bell ning and cantolntng on yea or 12T.iga aaay. SUBJECT TO AND TOOEMER WITH. all rmtl and utilty ....menta ce .}wen an thh plat and s Ject to all marded and wreovded eeeenonb. RPo.. of RKY The purpmoe of atter d "d n b straw Ne .any of an W.tin9 Meet of INC and that no new ora ntdn d barb are h.reby Me Unit and nEkx ee EDI Laid "don. not owale,g an my map fled e1N Me wunty Geek and ander v cantdnad o t onwards of Ne United slaw , of Il of tone 1lanager he d and/N •raved 1 a of t Il t to nancy h cud+ map and/or •b.% the Menton. S dM i.t a d Rod ixao e. of IMon n petite; n In S e MI, n. M b rent sainted to d)M C de a eebdvieian under twin M. Manton. Subdlvieian and Plat(Nq Mt antl the Yonbna Sanitation N SubtldelNi int 76-}404(1)(a-dJ NG R 17.36.605, 1 and 2 Owen_ FRla1�_`F RFPaifh State of Montana Elm /18FM. P386 d: 125FN, P511 q •DATED MI' ay d 1 i_ 2006 Sigma By: STATE OF MONTANA - GALLATIN COUNTY _ lnie dq.d as .e.rn b b.ra. me thin /� I f /Fn Tle.G-773n1 A.,1- YYa�Pu,le' ter MkeeeS of NN0L 20,/0 ReeitlN9 at GiCG Montana If DADYI +rNOM'• ..°'IOTTI � Sial. •ov .urn r - CORNER MONUMENT LEGEND BRG/DIST — FOUND OR SET THIS SURVEY 8W/0GT - PREMUS RECUM (fi- d.& or —y) e - 5/8' REBAR h ALUMINUM GAP SET THIS SURVEY: MARKED 'HKM ENG. 14531 LS' 0 ee 5/8' REBAR AND PLASTIC CAP. FOUND: MARKED '60135• G - 5/8' REBAR h -PLASTIC CAP, FOUND: MARKED •56065' 0- 5/8' REBAR FOUND: C - 5/8" REBAR & ALUMINUM, CAP, FOUND: MARKED AS NOTED ON PLAT North aha datertn.n from GPS 9,A.7 ob..N.V— with survey grad* 154 Imp receives and referenced to the Word Geodetic System of 1984 (WGS84). CERTFl r -pi !. %J Amt BECOSDES A�^�•�+LhTGvk and RacoNr of O�latln Cvanty, Mm= do hereby oertlly Nat NE }ongoing � etry twee 1, to my ofRO2popf�, •S a'aF.�LM y o PI b an 4wGa1. 7Ld'b. Roo. arae of the Gak and Rewrdr. GdlotN Cwnt. f/A Ili Jfr9! Gvk and Rawrde 1B -}82q MCA, e,d the B... UnlOed Dewoh DATED MW 11V% day of � 2009 ., Jana M d Pnreubnal lona Surveyor N. 14531 LS n �I 2328198 �mmt l� Inlll. ..ra.(eaeee .a m .. �nmm®IBNDI�®i®�Iou�m�mn r � "Ar EN G IN EE RING V" 730 N MAIN ST SUITE 100 PO Box 3588 Butte, MT 59701-2839 Phone: (406) 723-8213 Fax: (406)723-8328 }Sunrny he Monte.. Sectian Drdhane. TAM1 e� VICINITY AP ` r MONTANA STATE UNIVERSITY RETRACEMENT OF EXISTING BOUNDARIES CLIENT: MONTANA STATE UNIVERSITY DATE: Oct— 2008 LOCATOWYSW 1/4 d NW 1/4 OF SECTION 14, TZS, RSE DRAWN BY: KB I SCALE 1'�T00' COS N0. PROJECT:15\MG31192x\DWG\M%1-COS.DWG I SHEET: 1 OF 1 , Mf92Ti7E 13!19• .I�gcl b !! TRACT B N 82% Pl1ZY �!! 123.198 AC. SEA 7E AMPM e !! 125K Pm DDR 4t 14 O UO' - 4.E40 rASDDM OOC y2f409p CO) I 5,/16 NB9DY18T 1734.00 z FOUND NAIL IN ASPHALT AT CORNER POSITION. A 5/8' REBAR REFERENCE MONUMENT BEARS NO2-53-48-E. 30.43 AS PER CORNER RECORD /118065. THE 5/8' REBAR 6 ALSO A REFERENCE MONUMENT TO THE SOUTHWEST CORNER OF COS 1245, BEARING N75'4327E RSB' FROM THE ACTUAL CORNER POSITION. C43" - SME WWW AM Rett O =IMM 01D s/C rtE A!FH&T A 1893fi3'56'3 1'E 16U aI= 11IR 2s r8 Cos 1M24 T 60' W10E'COIINTY ROADIEASEMENT THIS WITNESS CORNER BEARS N0004'21^a,� z ry . 63W FROM ACTUAL CORNER POSITION. 2npY FOUND NAIL IN ASPHALT AT CORNER POSITION: A 5/8• REBAR k IPC MARKED •60135' BEARS N0039I11'E, 29.67 (RMI). A 5/f REBAR BEARS S3295'47 -W. 34.88' (RM2). A Y AUG BEARS S47TB'28'E 44.47 (RN3). ALC '49555 WE 19 CERTIFICATE OF SURVEY L I Ly SITUATED IN THE SW 1/4 & NW 1/4 OF SECTION 14, T2S, R5E, P.M.M. DESCRIPTION GAUATIN COUNTY, MONTANA MAU wonno A tacct of land located N Ne SN X k NW X of Send. 14, T2S, RBE, Primlpd n Nrldlan Menten, C.N an County, mem-, babg mare parflalmly heaM bu Beglnnln9 at Me NoeeCamr rthet of the Tnot herein dee. being Ne S Medet Comer of Toot*B of COS 1243 and oleo Me SooN.eet Grmr of Tract 2A f Miner Sub 19SA, and aormman to the North 1/18 Come, of Sections 15 and 14; Nene ft, edd Print of Beginning. along Ne Wset line of Section 14, South 0040'5} Wee' 1330.00 feet to Me Quaker Come, M oak SecUane 15 and 14; thence, along Me wet -soot center --U- line 0.old Section 14. North OWSW31• Eae' 25&a3 feet to Me north-eauth aeo eecUon line of add SaaU" 14; Venae, ding edd mti-...U.n IN. North 0041'01- Ewt 1334.9.! feet to the CerdeNl 1/td Cane of eak Sectkn 14, being a Point an the eauth INe. of Tnot CI -A of MNr BB Sub&Won 1A: eee, W thoalong .old Wath One. Se, to ag70Y4' Weet. 2893.19 bet to Me Paht of 8e91nnhg and .mining an area of 1=0 ave. r51RJECT TO AND TOGETHER NIM dl road v4 .111ty weemeeb ee ehaem N MM plat and eb}ct to dl recorded and unnwrded eaeenanb. A tentB. fallaws d land 1-tedh the SW 7[ s NW % of Section 14. T2S, MPrY Jpd NerWon M.-.Co9atln Caunly, Ment... beN9 mono parMculady daecrbetl n Bglmdng at the nateoet corner of Me Tran herein deaabed, beky Me Ouetr Co non of Se.tknv 15 k 14; 'Nene, tern wld Point of Beginning, along Me Wee! INe of oak Section % South OD4C39• Wee' 132687 test b Me Se,M 1/16 Cams commcn b sok Sw9an. 15 and 1A being the northwest aomr of Treat C of OOS 1245, and deo "Tiny the NarMooet Conner of Tract 1 of CCS tl8Z: thenen. North a9471f Eoe' 11-X04 het to the -Monet earner of cold COS 1245; Mww.. 00-X'21- Eee' 130230 feet b Me-ffi.eet wmr of eek COS 1243 and Wng a poht an Me north dght al wy al Slurky Rood; therw% dung wld eight of ed, S.M 697643' Nleef. 1336.00 feet b the eoutheeet conn of eok CAS 1245 bring a point an Me weal Una of odd Swoon It then, along odd w..t ihw of Sealkn i4, Santh 0Utd59' Nee' 3&00 feet th the S Meeet Corny 0 edd Sectian It then.. along the aM INe a ask Saetlan 14. North 5gT6'4S Eml, 2880.45 bet to M. Swth - ' Come, of eeld -- It Mwe. dang tie conte-ewtkn INe. Nor% 0114701' Eoet 2628.26 wt to Me C W Quarte, of wk Secfian 1k Mwa. al.. Me edwtwa center soden 0n. South 8976'31' Eavt 2690.a3 feet to the Print a Bell ning and cantolntng on yea or 12T.iga aaay. SUBJECT TO AND TOOEMER WITH. all rmtl and utilty ....menta ce .}wen an thh plat and s Ject to all marded and wreovded eeeenonb. RPo.. of RKY The purpmoe of atter d "d n b straw Ne .any of an W.tin9 Meet of INC and that no new ora ntdn d barb are h.reby Me Unit and nEkx ee EDI Laid "don. not owale,g an my map fled e1N Me wunty Geek and ander v cantdnad o t onwards of Ne United slaw , of Il of tone 1lanager he d and/N •raved 1 a of t Il t to nancy h cud+ map and/or •b.% the Menton. S dM i.t a d Rod ixao e. of IMon n petite; n In S e MI, n. M b rent sainted to d)M C de a eebdvieian under twin M. Manton. Subdlvieian and Plat(Nq Mt antl the Yonbna Sanitation N SubtldelNi int 76-}404(1)(a-dJ NG R 17.36.605, 1 and 2 Owen_ FRla1�_`F RFPaifh State of Montana Elm /18FM. P386 d: 125FN, P511 q •DATED MI' ay d 1 i_ 2006 Sigma By: STATE OF MONTANA - GALLATIN COUNTY _ lnie dq.d as .e.rn b b.ra. me thin /� I f /Fn Tle.G-773n1 A.,1- YYa�Pu,le' ter MkeeeS of NN0L 20,/0 ReeitlN9 at GiCG Montana If DADYI +rNOM'• ..°'IOTTI � Sial. •ov .urn r - CORNER MONUMENT LEGEND BRG/DIST — FOUND OR SET THIS SURVEY 8W/0GT - PREMUS RECUM (fi- d.& or —y) e - 5/8' REBAR h ALUMINUM GAP SET THIS SURVEY: MARKED 'HKM ENG. 14531 LS' 0 ee 5/8' REBAR AND PLASTIC CAP. FOUND: MARKED '60135• G - 5/8' REBAR h -PLASTIC CAP, FOUND: MARKED •56065' 0- 5/8' REBAR FOUND: C - 5/8" REBAR & ALUMINUM, CAP, FOUND: MARKED AS NOTED ON PLAT North aha datertn.n from GPS 9,A.7 ob..N.V— with survey grad* 154 Imp receives and referenced to the Word Geodetic System of 1984 (WGS84). CERTFl r -pi !. %J Amt BECOSDES A�^�•�+LhTGvk and RacoNr of O�latln Cvanty, Mm= do hereby oertlly Nat NE }ongoing � etry twee 1, to my ofRO2popf�, •S a'aF.�LM y o PI b an 4wGa1. 7Ld'b. Roo. arae of the Gak and Rewrdr. GdlotN Cwnt. f/A Ili Jfr9! Gvk and Rawrde 1B -}82q MCA, e,d the B... UnlOed Dewoh DATED MW 11V% day of � 2009 ., Jana M d Pnreubnal lona Surveyor N. 14531 LS n �I 2328198 �mmt l� Inlll. ..ra.(eaeee .a m .. �nmm®IBNDI�®i®�Iou�m�mn r � "Ar EN G IN EE RING V" 730 N MAIN ST SUITE 100 PO Box 3588 Butte, MT 59701-2839 Phone: (406) 723-8213 Fax: (406)723-8328 }Sunrny he Monte.. Sectian Drdhane. TAM1 e� VICINITY AP ` r MONTANA STATE UNIVERSITY RETRACEMENT OF EXISTING BOUNDARIES CLIENT: MONTANA STATE UNIVERSITY DATE: Oct— 2008 LOCATOWYSW 1/4 d NW 1/4 OF SECTION 14, TZS, RSE DRAWN BY: KB I SCALE 1'�T00' COS N0. PROJECT:15\MG31192x\DWG\M%1-COS.DWG I SHEET: 1 OF 1 , Mf92Ti7E 13!19• b X1215 /MUN t 57ElFr/ A4fF,6' tC 82% Pl1ZY Gq e s 300 0 300 600 2� scale feet FOUND NAIL IN ASPHALT AT CORNER POSITION. A 5/8' REBAR REFERENCE MONUMENT BEARS NO2-53-48-E. 30.43 AS PER CORNER RECORD /118065. THE 5/8' REBAR 6 ALSO A REFERENCE MONUMENT TO THE SOUTHWEST CORNER OF COS 1245, BEARING N75'4327E RSB' FROM THE ACTUAL CORNER POSITION. C43" - SME WWW AM Rett O =IMM 01D s/C rtE A!FH&T A 1893fi3'56'3 1'E 16U aI= 11IR 2s r8 Cos 1M24 T 60' W10E'COIINTY ROADIEASEMENT THIS WITNESS CORNER BEARS N0004'21^a,� z ry . 63W FROM ACTUAL CORNER POSITION. 2npY FOUND NAIL IN ASPHALT AT CORNER POSITION: A 5/8• REBAR k IPC MARKED •60135' BEARS N0039I11'E, 29.67 (RMI). A 5/f REBAR BEARS S3295'47 -W. 34.88' (RM2). A Y AUG BEARS S47TB'28'E 44.47 (RN3). ALC '49555 WE 19 CERTIFICATE OF SURVEY L I Ly SITUATED IN THE SW 1/4 & NW 1/4 OF SECTION 14, T2S, R5E, P.M.M. DESCRIPTION GAUATIN COUNTY, MONTANA MAU wonno A tacct of land located N Ne SN X k NW X of Send. 14, T2S, RBE, Primlpd n Nrldlan Menten, C.N an County, mem-, babg mare parflalmly heaM bu Beglnnln9 at Me NoeeCamr rthet of the Tnot herein dee. being Ne S Medet Comer of Toot*B of COS 1243 and oleo Me SooN.eet Grmr of Tract 2A f Miner Sub 19SA, and aormman to the North 1/18 Come, of Sections 15 and 14; Nene ft, edd Print of Beginning. along Ne Wset line of Section 14, South 0040'5} Wee' 1330.00 feet to Me Quaker Come, M oak SecUane 15 and 14; thence, along Me wet -soot center --U- line 0.old Section 14. North OWSW31• Eae' 25&a3 feet to Me north-eauth aeo eecUon line of add SaaU" 14; Venae, ding edd mti-...U.n IN. North 0041'01- Ewt 1334.9.! feet to the CerdeNl 1/td Cane of eak Sectkn 14, being a Point an the eauth INe. of Tnot CI -A of MNr BB Sub&Won 1A: eee, W thoalong .old Wath One. Se, to ag70Y4' Weet. 2893.19 bet to Me Paht of 8e91nnhg and .mining an area of 1=0 ave. r51RJECT TO AND TOGETHER NIM dl road v4 .111ty weemeeb ee ehaem N MM plat and eb}ct to dl recorded and unnwrded eaeenanb. A tentB. fallaws d land 1-tedh the SW 7[ s NW % of Section 14. T2S, MPrY Jpd NerWon M.-.Co9atln Caunly, Ment... beN9 mono parMculady daecrbetl n Bglmdng at the nateoet corner of Me Tran herein deaabed, beky Me Ouetr Co non of Se.tknv 15 k 14; 'Nene, tern wld Point of Beginning, along Me Wee! INe of oak Section % South OD4C39• Wee' 132687 test b Me Se,M 1/16 Cams commcn b sok Sw9an. 15 and 1A being the northwest aomr of Treat C of OOS 1245, and deo "Tiny the NarMooet Conner of Tract 1 of CCS tl8Z: thenen. North a9471f Eoe' 11-X04 het to the -Monet earner of cold COS 1245; Mww.. 00-X'21- Eee' 130230 feet b Me-ffi.eet wmr of eek COS 1243 and Wng a poht an Me north dght al wy al Slurky Rood; therw% dung wld eight of ed, S.M 697643' Nleef. 1336.00 feet b the eoutheeet conn of eok CAS 1245 bring a point an Me weal Una of odd Swoon It then, along odd w..t ihw of Sealkn i4, Santh 0Utd59' Nee' 3&00 feet th the S Meeet Corny 0 edd Sectian It then.. along the aM INe a ask Saetlan 14. North 5gT6'4S Eml, 2880.45 bet to M. Swth - ' Come, of eeld -- It Mwe. dang tie conte-ewtkn INe. Nor% 0114701' Eoet 2628.26 wt to Me C W Quarte, of wk Secfian 1k Mwa. al.. Me edwtwa center soden 0n. South 8976'31' Eavt 2690.a3 feet to the Print a Bell ning and cantolntng on yea or 12T.iga aaay. SUBJECT TO AND TOOEMER WITH. all rmtl and utilty ....menta ce .}wen an thh plat and s Ject to all marded and wreovded eeeenonb. RPo.. of RKY The purpmoe of atter d "d n b straw Ne .any of an W.tin9 Meet of INC and that no new ora ntdn d barb are h.reby Me Unit and nEkx ee EDI Laid "don. not owale,g an my map fled e1N Me wunty Geek and ander v cantdnad o t onwards of Ne United slaw , of Il of tone 1lanager he d and/N •raved 1 a of t Il t to nancy h cud+ map and/or •b.% the Menton. S dM i.t a d Rod ixao e. of IMon n petite; n In S e MI, n. M b rent sainted to d)M C de a eebdvieian under twin M. Manton. Subdlvieian and Plat(Nq Mt antl the Yonbna Sanitation N SubtldelNi int 76-}404(1)(a-dJ NG R 17.36.605, 1 and 2 Owen_ FRla1�_`F RFPaifh State of Montana Elm /18FM. P386 d: 125FN, P511 q •DATED MI' ay d 1 i_ 2006 Sigma By: STATE OF MONTANA - GALLATIN COUNTY _ lnie dq.d as .e.rn b b.ra. me thin /� I f /Fn Tle.G-773n1 A.,1- YYa�Pu,le' ter MkeeeS of NN0L 20,/0 ReeitlN9 at GiCG Montana If DADYI +rNOM'• ..°'IOTTI � Sial. •ov .urn r - CORNER MONUMENT LEGEND BRG/DIST — FOUND OR SET THIS SURVEY 8W/0GT - PREMUS RECUM (fi- d.& or —y) e - 5/8' REBAR h ALUMINUM GAP SET THIS SURVEY: MARKED 'HKM ENG. 14531 LS' 0 ee 5/8' REBAR AND PLASTIC CAP. FOUND: MARKED '60135• G - 5/8' REBAR h -PLASTIC CAP, FOUND: MARKED •56065' 0- 5/8' REBAR FOUND: C - 5/8" REBAR & ALUMINUM, CAP, FOUND: MARKED AS NOTED ON PLAT North aha datertn.n from GPS 9,A.7 ob..N.V— with survey grad* 154 Imp receives and referenced to the Word Geodetic System of 1984 (WGS84). CERTFl r -pi !. %J Amt BECOSDES A�^�•�+LhTGvk and RacoNr of O�latln Cvanty, Mm= do hereby oertlly Nat NE }ongoing � etry twee 1, to my ofRO2popf�, •S a'aF.�LM y o PI b an 4wGa1. 7Ld'b. Roo. arae of the Gak and Rewrdr. GdlotN Cwnt. f/A Ili Jfr9! Gvk and Rawrde 1B -}82q MCA, e,d the B... UnlOed Dewoh DATED MW 11V% day of � 2009 ., Jana M d Pnreubnal lona Surveyor N. 14531 LS n �I 2328198 �mmt l� Inlll. ..ra.(eaeee .a m .. �nmm®IBNDI�®i®�Iou�m�mn r � "Ar EN G IN EE RING V" 730 N MAIN ST SUITE 100 PO Box 3588 Butte, MT 59701-2839 Phone: (406) 723-8213 Fax: (406)723-8328 }Sunrny he Monte.. Sectian Drdhane. TAM1 e� VICINITY AP ` r MONTANA STATE UNIVERSITY RETRACEMENT OF EXISTING BOUNDARIES CLIENT: MONTANA STATE UNIVERSITY DATE: Oct— 2008 LOCATOWYSW 1/4 d NW 1/4 OF SECTION 14, TZS, RSE DRAWN BY: KB I SCALE 1'�T00' COS N0. PROJECT:15\MG31192x\DWG\M%1-COS.DWG I SHEET: 1 OF 1 , PROPERTYDESCRIPTIONBEFORE THE IMPOSITION OF THE EASEMENT Site Si.Ze: The subject property is highlighted in red on the facing page and is 41.17 acres. However, Montana State University owns six contigious parcels of land that total 230.10 acres. To meet the test of the larger parcel theory the property must have unity of ownership, contiguity and unity of use to establish the larger parcel area. All six parcels of land are currently owned by Montana State University and more or less all have the same use which is for educational purposes associated with MSU. So at first blush the larger parcel area could be determined as 230.10 acres. However, only two of these parcels border Garfield Street which is the East 1/i of Tract A (subject property) and the West 1/z of Tract A. As shown on the Montana Cadastral web site all six parcels are individual parcels of land that could be sold as such. It is likely the (2) +/- 41 acre parcels that comprise Tract A have a higher and better use than the remaining parcels in MSU ownership because of their frontage on Garfield Street and proximity to city services. Therefore all six parcels do not have the same highest and best use. I'm of the opinion it is likely the East 1/2 and West 1/a of Tract A would sell separately and be developed separately if this land were available on the open market. Knowing, the eastern portion of Tract A is the only parcel being impacted by the sanitary sewer easement project I have determined the larger parcel area to be the 41.17 AC that comprises the eastern portion of Tract A. Shape: Square. Topog,aply: Most of the land is level at street grade. Soil Conditions: Soil conditions are unknown and no soils test was provided to your appraiser. Easeweas: No title policy was provided to your appraiser. A title policy should be used for final determination of easements and encroachments. J. Michael Joki, MAI, SRA HELENA, MONTANA 25 Access: This site is accessed from Garfield Street at its NEC. From there a dirt/gravel road parallels the east boundary which leads to the building improvements near the SEC. It appears this road over laps the boundary of Parcel 1 and Parcel 2. Currently all of the roads on the subject site are privately maintained. Utilities: All utilities are readily available as the majority of the land surrounding the subject property is annexed into the Bozeman city limits and utilities have been extended throughout most of this neighborhood. FulictionalAdequacy: This site has been utilized by Montana State University for many years. Over time the Montana State University Campus has expanded, and land to the north, west and south has become developed and annexed into the Bozeman city limits. As discussed in the following highest and best use analysis the current use of this land is not the highest and best use of this land even though it is very likely this land will stay in State of Montana/Montana State University ownership. Flood Plain: The subject property is located in Flood Zone Z which is an area of minimal flooding. This information was extracted from FEMA's National Flood Hazard Layer Website. The Community Panel No. is 30031 C 0816 D. This map is dated September 2, 2011. Nuisances or Ha.Zajds: Land directly to the east is also owned by Montana State University/ State of Montana. Directly to the north is a relatively new commercial development between Garfield and College Streets, and north of College Street there is a mix of older residential and commercial uses. Land east of 19th Avenue is the Montana State University Campus. Land to the south on either side of 19th Avenue is a mix of campus, multi family, single family and commercial uses. These surrounding uses are typical to this neighborhood as this is one of the areas in Bozeman that is rapidly expanding. None of the surrounding uses adversely affect the market value of the subject property. J. Michael Joki, MAI, SRA HELENA, MONTANA 26 Site and Building Improvements Nearly all of the building improvements are concentrated near the SEC of the subject site. The primary building is the Bob Miller Pavilion and there are various other out buildings and a seizes of corrals that is all associated with Montana State University. The subject site was not staked at the time of my site visit but it does not appear any of the building or site improvements will be impacted by the proposed sanitary sewer easement project. J. Michael Joki, MAI, SRA HELENA, MONTANA 27 SUBJECT PROPERTYPHOTOGRAPHS Photograph taken from the NEC and looking SW at the subject property. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. Looking west on Garfield Street. Subject property is to the left. Photograph taken March 3, 2016 by J. Michael Jold, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA X17 SUBJECT PROPERTYPHOTOGRAPHS Photograph taken from Garfield Street and looking south at the gravel road that parallels the east property boundary. Subject property is on the right Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. Photograph taken near the NWC at looking south over the subject property. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 29 SUBJECT PROPERTYPHOTOGRAPHS Photograph taken from the SWC and looking north over the subject property. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. Photograph shows the Bob Miller Pavilion and the other buildings/site improvements near the SEC. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 30 ZONING I spoke with Tom Rogers at the City of Bozeman Planning Department and he confirmed that the subject site is currently zoned PLI (Public Lands and Institutions). This district is intended to provide for and apply to public and quasi public institutional uses and lands, and recreational and public service activities for the general benefits of the citizens of the city. The typical uses in a PLI zoning district are open areas, parks, museums, historic or cultural exhibits, water conservation, flood control, drainage area, natural conservation and preservation area. Institutions including schools, colleges and universities, hospitals, rehabilitation centers, etc. are permitted. Public buildings, cemeteries, memorial stadia are permitted as well. Recreational uses including golf courses, tennis courses, softball fields, swimming pools etc. are also a common use. Currently the subject property in all respects is compatible with the existing zoning. Tom Rogers and I discussed if the subject property transferred to private ownership ( non public agencies) and it was not going to be utilized for the general benefit of the public then a zone change would be required. The existing zoning districts in the immediate vicinity of the subject property are BP (Business Park), B2 (Community Business), R4 (Residential High Density) and RO ( Residential Office). Most likely a zoning change would be based on one of these existing uses in the immediate vicinity. It will be discussed in the following highest and best use analysis that the historical use of this sitewhich supports the Bob Miller Pavilion and various other outbuildings associatedwith Montana State University is not necessarily the highest and best use of this property. J. Michael Joki, MAI, SRA HELENA, MONTANA 31 HIGHEST AND BEST USE BEFORE "The reasonably probable and legal use of vacant land or an improved property that 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. Alternatively, the probable use of land or improved property - specific with respect to user and timing of the use - that is adequately supported and results in the highest present value."' The definition above applies to the highest and best use of vacant land or improved property. It is to be recognized that in cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. Quite often in estimating the highest and best use of land, the appraiser is controlled by governmental regulations. These controls are generally zoning ordinance, parking requirements and building codes. Also, in the estimate of highest and best use, one must recognize the attitude of typical investors in the marketplace. Real estate will usually fall into certain definite development patterns, and their uses can be classified as: residential, agricultural, recreational, industrial, commercial and public use. In valuing the highest and best use of the land both as if vacant and improved, the following criteria must be met. 1) legally permissible, 2) physically possible, 3) financially feasible, and 4) maximally productive. HIGHEST AND BEST USE OF THE PROPER TYAS VACANT Legally Permissible The subject property is currently zoned PLI ( Public Lands and Institution District) which allows for a wide range of uses. A number of the allowed uses were previously described in the zoning section and a copy of the zoning ordnance is included in the addenda. The aforementioned uses are allowed as long as the property is being used for the benefit of the public. Because I have been asked to estimate the current market value of the subject property, which is based on its highest and best use, I will not value this property as public land and institutions ground. Not only is the PLI not the highest and best use of this property but PLI zoned land sales are not available as PLI land does not typically sell on the open market. I have been asked to estimate the current market value of the subject property and it will be shown in the following sales analysis that the historical use of this site associated with Montana State University with PLI I The Dictionary of Real Estate Appraisal, 5t1i ed., s.v. "highest and best use". J. Michael Joki, MAI, SRA HELENA, MONTANA 32 zoning is no longer the highest and best use of this property. I spoke at length with Tom Rogers from the City of Bozeman Planning Department about the subjects location and surrounding uses and because of these characteristics several of the development classifications can reasonably be eliminated from consideration. The first check when requesting a zoning change is to consider the 20 Year Land Use plan for a property and determine if these are any zoning overlays. In the 20 Year Land Use Plan for the City of Bozeman this site is still ear marked to have PLI zoning and they do not expect a change in use because this site is being used by Montana State University. Also, there are no zoning overlays on this land. However the planning department has to entertain amendments to their growth policy on a regular basis. I first considered the reasonableness of this property being developed with single family residential home sites with the R1 or R2 zoning ordinance. These zoning ordinance certainly exist within in this neighborhood however it is more likely a multi family, office or other commercial use is more probable at this location which is generally at the intersection of 19th Avenue and College Street at the northwestern edge of the Montana State University Campus. There are other areas in and around this neighborhood that are much better suited for a residential use and therefore I have eliminated residential use from consideration. Agricultural use can also reasonably be eliminated from consideration merely based upon the size and location of this site. Even though this site is currently utilized by Montana State University this is for educational purposes. The City of Bozeman has public tennis courts, softball fields, swimming pools and other recreational facilities dispersed though out the city limits and reasonably this use can also be eliminated from consideration. This location is not suited for industrial use (light or heavy) as land values in this neighborhood are to high to justify an industrial use at this location. Therefore industrial uses can also be eliminated from consideration. This leaves commercial use and multi family use as the most reasonable and legally permissible uses of this land as if it were vacant. Both commercial and multi family uses are prevalent throughout this neighborhood and in the immediate vicinity of the subject property. I found through my research it is likely a commercial use (i.e. office or retail) would have a relatively long absorption period at this location and at the outset it appears a multi family use with an R-3 or R-4 zoning district would be better suited for this location. It is no secret that Montana State University is continually expanding, as well as its student body, and finding housing in direct proximity to the campus has been a challenge for many years. A multi family use at this location would certainly help this seemingly never ending need. J. Michael Joki, MAI, SRA HELENA, MONTANA 33 Physically Possible Properties in this neighborhood are improvedwith a mix of residential and commercialuses. Most sites are improved to the maximum density permitted by zoning while considering parking regulations and other restrictions. The subject property is 41.17 acres ( larger parcel area) and has significant frontage on Garfield Street. This site has generally level topography and is square in its shape which eliminates higher development cost often associated with sloping, irregular shaped sites. This property can be accessed from Garfield Street, and all public utilities are readily available. Soil conditions in this neighborhood have proven adequate for development of all property types. Based upon the physical characteristics of the subject property and the existing properties in this neighborhood, the most reasonable and legally permissible uses of the subject property (commercial or multi family use) would be physically possible. Financially Feasible Bozeman is experiencing growth again, particularly in the past 4 or 5 years, and much of the new growth is residential development. In terms of residential development this site is very well located near the intersection of 19th Avenue and College Street and at the northwestern edge of the Montana State University Campus. From this location there is good access to Bozeman's downtown district and the significant retail development along North 19th Avenue. Many nearby streets are significant traffic streets that provide good access throughout Bozeman. Properties in this neighborhood historically are very marketable and well received in this community. To develop the subject site into numerous commercial lots for either a retail or office use may prove to be financially difficult. I have spoken with a number of real estate professionals in this community and they were generally of the opinion that a commercial use at this location wether it be retail or office use would most likely have a longer absorption period than a multi family use. There are a number of established retail and office uses surrounding the Montana State University Campus that have existed for many years. There is newer retail and office use directly north and northwest of the subject property however this land has been slower to develop because the demand for these uses is not as strong at this location as compared to other areas of Bozeman. Because there is such high demand for high density residential development, i.e. apartments, in Bozeman, let alone the subjects location in direct proximity to campus, most likely a residential development could absorb the development costs and impact fees more quickly and prove to be a feasible use of this site. J. Michael Joki, MAI, SRA HELENA, MONTANA 34 Maximally Productive The use that conforms with the requirements of the first three tests and will provide maximum productivity of the subject site, as if vacant, is most likely for development with a high density residential use. In concluding to the highest and best use of a property the physical use, the timing of the use and the user's/most probable buyers needs to be defined. It is my opinion the maximally productive use of this site is for development with a high density residential use that would be consistent with the nearby uses in this neighborhood. In terms of the most likely buyer and user of this site there are two options. An end-user sale is a sale to a buyer who intends to immediately utilize the property to its highest and best use. A speculative - investor sale is the sale to a buyer who purchases the property with no intention of immediately utilizing the property to its highest and best use. It is my opinion the subject site would be purchased as an end user sale and would be immediately utilized to its highest and best use as a high density residential development assuming the appropriate changes could be made to its current zoning. HIGHESTAND BEST USE OF THE PROPERTYAS IMPROVED Legally Permissible The subject property appears to meet all PLI zoning ordinance requirements. It was confirmed with Tom Rogers that the current use, associated with Montana State University, is a legally permitted use in the PLI zoning ordinance. Therefore the current use of the subject property is a legally permissible use as it conforms to the current zoning ordinance. Physically Possible The current use of the subject property which is associated with Montana State University is obviously physically possible. This site serves an educational purpose for the University and as I understand has served well with this use for many years. J. Michael Joki, MAI, SRA HELENA, MONTANA 35 Financially Feasible The subject site currently supports the Bob Miller Pavilion and various other outbuildings that are primarily located along the south boundary. For the most part the northern 75% of this site is unimproved but is utilized by Montana State University. Even though this land is being utilized for educational purposes it is obviously under utilized and not being used to its highest and best use. I have spoken with several realtors, real estate appraisers and developers who are very familiar with this neighborhood and undeniably if a zoning change could be made a high density residential development at this location would be well received. To correctly test the financial feasibility of this property "as improved" the market rent, operating expenses and an appropriate capitalization rate should be determined for the existing buildings so an indication of value via the Income Approach can be compared to the vacant land value. However, as previously explained there are few building improvements on this property and the only building that would command a significant rent is the Bob Miller Pavilion. As shown in the following land sales analysis this property "as if' vacant is worth far more than it could ever be as currently improved with its few building improvements. Maximally Productive Ultimately the highest and best use of this property is no longer for use by Montana State University. A higher and better use would be to raze the existing building improvements and make way for new development that would most likely be a high density residential use. J. Michael Joki, MAI, SRA HELENA, MONTANA W-1 PROPERTY UAL UA TION BEFORE In the Sales Comparison Approach an indication of value is derived by comparing the relative utility and desirability of the subject site with comparable properties that have recently sold or are currently listed for sale. Basic to this approach is the principle of substitution which states that "when a property is replaceable in the market, its value tends to be set by the price requited to acquire an equally desirable substitute property." In this appraisal report the land is valued however the improvements are not included therefore the Cost and Income Approaches to value are not applicable. SITE PAL UA TION The method employed to value the site as if vacant and available for sale is the Sales Comparison Approach. An investigation of the market revealed several sales and listings indicative of what a well- informed buyer or seller would consider in forming an opinion of value. Four sales were chosen as being most appropriate to compare against the subject site. Descriptive data and photographs of these comparables are contained in the addenda. Adjustments All comparables differ somewhat from each other, and from the subject in various ways. The usual differences are for cash equivalency, market conditions, location, and a number of physical characteristics. Many of these factors, in varying degrees, are applicable in the appraisal of the subject property. When dissimilarities are found in comparable properties, they are adjusted for by adding to the comparable price when the dissimilar factor is inferior to the same factor found in the subject property. Likewise, a minus adjustment should be made when the comparable sale has a factor which is superior to that found in the subject property. The sale properties, then, are adjusted to the subject property. J. Michael Joki, MAI, SRA HELENA, MONTANA 37 However, in the market it is often difficult and sometimes impossible to accurately isolate a given factor. In short, one very seldom finds sales which are identical in all respects but one, and thus is able to prove conclusively the value, or lack of it, for any one factor due to a difference in sale price. Often, there are plus and minus factors which offset each other. Thus, the use of subjective judgment, to some degree, may be exercised. Nevertheless, the differences in values are real and adjustments based on as much fact as can be found, will be made. Then, the appraiser may call upon his experience to make subjective judgments. Property Rights Each of the sales involve fee simple property rights. As a result, no property rights adjustments were warranted. Financing.• All Sales were cash to the seller or on terms considered cash equivalent, and no adjustments were required. Conditions ofSale: No non -market conditions motivating the buyer or seller involved in the transactions are known, therefore no adjustments are required. Expenditures Immediately After Sale: None of the sales required expenditures immediately after sale, and therefore no adjustments are required. If expenditures were verified they were typically associated with annexation into the city limits. Market Conditions: A market conditions (time adjustment) is required to bring all comparable sale properties up to the effective date of the appraisal report which is March 3, 2016. Bozeman was experiencing significant decline J. Michael Joki, MAI, SRA HELENA, MONTANA 38 in real estate values when the local and national recession was in affect. Since 2011 real estate values have rebounded in this market, and have become particularly strong since 2013, with new projects being developed again. Demand for unimproved land is now out weighing its supply. I will utilize four comparables in the following analysis with two sales closing in 2012, one sale closing in 2015, and one sale closing in 2016. Each of the developers, real estate agents and real estate appraisers I interviewed in this market were of the opinion market conditions are improving and they are currently strong in Bozeman with more demand than supply of vacant land. The persons I interviewed were consistently of the opinion that value of unimproved sites, particularly those with a highest and best use of multi family, have conservatively appreciated 20% since 2013 and at least 30% since 2012. To provide some support for the information given to me in the aforementioned interviews I have completed a paired sales analysis of two sales I have in file that are best suited for multi family development. The first property sold on February 11, 2011 at $1.15/SF and the other sale sold on June 16, 2014 at $1.95/SF. Both of these sales are very similar in terms of there location and physical aspects, and making the assumption there would be no adjustment necessary for the difference in size, this paired sales analysis indicates values have increased 69.57% over the 40 months between these sales which equates to an appreciation rate of 1.74% per month or 20.87% per year. This at least provides some market data support for the information provided to me during my market interviews. I have considered the information given to me during my interviews and the paired sales analysis and will adjust sale No. 1 and No. 2 upward by 30% for market conditions. Comparable No. 3 and No 4 sold within 6 months of the effective date of this appraisal report and in my opinion are indicative of current market value and will not be adjusted for market conditions. Remaining Adjustmen ts: The remaining adjustments will be explained in a qualitative analysis which is an effective technique that recognizes the inefficiencies of a real estate market and the difficulty in expressing the adjustments with mathematical precision. The adjustments included in the qualitative analysis are location, size, access, topography, utilities, shape and use. The land sales adjustment grid can be seen on the following page. J. Michael Joki, MAI, SRA HELENA, MONTANA 39 LAND SALE LOCA TIONMAP J. Michael Joki, MAL SRA HELENA, MONTANA 40 Street Atlas USA® 2005 Data use subject to license. Mi Q 2004 DeLorme. StreetAtlas USA@ 2005_ 0 '/a '/2 % www.delorme.com NiN (0.00 W) Data Zoom 12-1 LAND SALE ADJUSTMENT GRID J. Michael Joki, MAI, SPA HELENA, MONTANA 41 SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 Sale Price $2,900,000 $648,233 $3,564,000 $3,866,137 Size (acre) 41.17 78.00 20.00 37.05 53.77 Price/AC $37,179 $32,412 $96,194 $71,901 Date of Sale 8/10/12 6/27/12 9/10/15 1/6/16 Market Adjustment Plus 30% Plus 30% -0- -0- Adjusted Price $3,770,000 $842,703 $3,564,000 $3,866,137 Adjusted Price/AC $48,333 $42,135 $96,194 $71,901 Location South of Garfield Street and just West of 19th Avenue 19th Ave and Graf Street 19th Ave and Southbride Dr. g. 11th Ave and Baxter Lane, just south of I-90 Valley Center and West lake Rd, just south of I-90 Comparability;; Similar Similar Superior Superior Size (acre) 41.17 78.00 20.00 37.05 53.77 Comparability Slightly Inferior Similar Similar Similar Access Garfield Street 19th Avenue 19th Avenue Baxter Lane & 11th Avenue Valley Center & North 27th Ave. Comparability Similar Similar Similar Similar Topography Level Level Level Level Level Comparability Similar Similar Similar Similar Shape Square Rectangular Rectangular Slightly Irregular Slightly Irregular Comparability Similar Similar Similar Similar Utilities Adjacent to site North of site Adjacent to site On site On site Comparability Slightly Inferior Similar Superior Superior Highest & Best Use Multi Family Residential Subdivision or Multi Family Residential Subdivision Commercial Commercial or Residential Comparability Similar Similar Superior Superior Overall Comparability Similar Similar Superior Superior J. Michael Joki, MAI, SPA HELENA, MONTANA 41 J. Michael Joki, MAI, SRA HELENA, MONTANA 42 Sales Analysis: The subject site is a square shaped site that is located on the south side of Garfield Street and just west of 19th Avenue. This 41.17 acre site supports the Bob Miller Pavilion and other outbuildings associated with Montana State University. This site has level topography and is accessed from Garfield Street near its northeast corner. City services are adjacent to this site as much of the surrounding land is already developed. The subject site is currently zoned PLI however as previously discussed in the highest and best use analysis this site is best suited for a multi family development. Sale No. 1 is a 78.00 acre site that sold on August 10, 2012 for $2,900,000 or $37,179/AC. After adjusting for market conditions this comparable indicates a price of $48,333/AC. Comparable No. 1 is located south of the subject property on the east side of 19th Avenue. Comparable No.1 has similar access, topography, shape and use and its only inferior aspects are city utilities were located north of this site at the time of sale, and this is a slightly larger site. Otherwise, Comparable No. 1 is considered to be quite similar when compared to the subject property. Comparable No. 2 is a 20.00 acre site that sold on June 27, 2012 at $648,233 or $ 32,412/AC. After adjusting for market conditions this comparable indicates a price of $42,135/AC. Comparable No. 2 is also located just south of the subj ect property and on the west side of 19th Avenue. Comparable No. 2 is considered to be similar in all of its physical aspects when compared to the subject property. Comparable No. 3 is a 37.05 acre site that sold on September 10, 2015 at $3,564,000 or $96,194/AC. Comparable No. 3 is located at the intersection of Baxter Lane and 11th Avenue and just south of Interstate 90 which is clearly a superior location. Comparable No. 3 is similar in size, access, topography and shape. Comparable No 3 has superior utilities and is best suited for a commercial use, an coupled with its superior location, is considered to be superior when compares to the subject property. Comparable No. 4 is a 53.77 acre site that sold on January 6, 2016 at $3,866,137 or $71,901 /AC. Comparable No. 4 is located at the intersection of Valley Center Road and North 27th Avenue and just south of Interstate 90 which is clearly a superior location. Comparable No. 4 is similar in size, access, topography and shape. However, Comparable No. 4 has superior utilities and is best suited for a mixed use development with commercial and residential. These fearures coupled with this sales superior location makes Comparable No. J. Michael Joki, MAI, SRA HELENA, MONTANA 43 4 superior to the subject property. The value indications derived from the comparables are reconciled into a single value indication by arranging the four comparables in an array relative to the subject. BRACKETING THE SUBIECT PROPERTY Comparable Adjusted Price Per AC Overall Comparability 2 $42,135 Similar 1 $48,333 Similar Subject Property 4 $71,901 Superior 3 $96,194 Superior A shown in the chart above clearly the most similar comparables are Sale No. 1 and Sale No. 2. Both of these sales are considered to be very similar when compared to the subject property with the only discerning difference being the size of Comparable No. 1 at 78 acres. After analyzing the size and the other physical characteristics it appears that site size does not affect market value as much as location and zoning which ultimately dictate the highest and best use of the sites. Therefore, little emphasis is being given to the difference in size of the sales when compared to the subject property. Not only do Comparable No.1 and No. 2 have the same use but they are both located just south of the subject property. These sales show a value range of $42,135 to $48,333/AC. Comparable No. 3 and No. 4 are both very recent sales of land that is best suited for commercial development. Sale No. 3 and No. 4 are similar to the subject property in many of their physical aspects however their superior location in proximity to Interstate 90 and their commercial zoning/use makes these sales superior to the subject property. Considering this information and giving most emphasis to Comparable No. 1 and No. 2 it is my J. Michael Joki, MAI, SRA HELENA, MONTANA 44 opinion the subject site has a current market value of $45,000/AC. 41.17 Acres x $45,000/AC = $1,852,650 J. Michael Joki, MAL SRA HELENA, MONTANA 45 MAP DEPICTING THE EASEMENT AREA J. Michael Joki, MAI, SRA HELENA, MONTANA 46 T EXHIBIT A TRACT AOF CERTIFICATE OF SURVEY NO. 2729, SITUATED IN THE NW1/4 OF SECTION 14, TOWNSHIP 2 SOUTH, RANGE 5 EAST, PRINCIPAL MERIDIAN, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA. BASIS OF BEARING BEARINGS FOR THIS PLAT ARE GRID BASED ON THE MONTANA STATE PLANE COORDINATE SYSTEM IYI/ % I VI IL-11 YL. f . 32' I I� s I i I 001 F �I r`I w 001 TRACT A p F CERTIFICATE OF mi I SURVEY NO. 2729 ZI "PARCEL 1" EASEMENT AREA 43,680 SQUARE FEET 1.003 ACRES i I� I I I II I� 32 IIS89°06'07"E 31.91' i N0000'00"E r J 35.76' N89°04'01 "W 177 C114 82'70 FOUND` ALUMINUM TRACT B CAP CERTIFICATE OF SURVEY NO. 2729 80 040 80 ( IN FEET ) Morrison 2aYBa4t Maierle FFw:(<06)qn�021 engineers . surveyors • piano•.. . .demists -- w w z J Z O U w U) LL 0 z z w U f" 7 O rn S O Z LU D U¢ F— O'v U W 04 �VO LL W U S88055'37"E 19.53' S 1! 11'35"W 36.53' P.O.B. N1 °11'35"EI 13.33' TRACT B CERTIFICATE OF SURVEY NO. 1245 W. GARFIELD ST. NO_LQU� —45.44', —N N38°40'02"W 1 20.97' 32' I I E _OI f Inl WI 001 PO C `i o 0 1 `� z) "PARCEL 1" EASEMENT AREA 43,680 SQUARE FEET 1.003 ACRES I� I I I� I S88°46'02"E 23.23' I N1°13'58"E J 20.00'—tirj�—� N88°46'02"W j 1 23.23' 32' 32.5 FT. SOUTH w Z J Z O U Lu LL O W i F- W z ) w U D u x OU O N w� 0 U z Z u- W U PROJECT NO. 0417.01202 UHI&T EX. A O SOUTH UNIVERSITY AREA mvm BY. DJ6 CHM BY. DJD WATER MAIN AND SEWER MAIN BOZEMAN M APPR.M. JRN DATE: 3/11116 WATER MAIN AND SEWER MAIN EASEMENT EXHIBIT 32.5 FT. SOUTH w Z J Z O U Lu LL O W i F- W z ) w U D u x OU O N w� 0 U z Z u- W U PROJECT NO. 0417.01202 UHI&T EX. A O SCOPE OF THE PROJECT AND ITS AFFECT ON THE SUBJECT SITE The intent of this project is to impose a utility easement (sewer main easement) along the east boundary of the subject property. As shown on the facing page the easement area is calculated at 1.003 acres however as explained in the copy of the email in the addenda the proposed sewer main easement is only 38,938 SF or .89 acres. This easement will essentially extend from the NEC to the SEC. In the addenda is a description of the land thatwill be imposed with the sewer main easement. Also aerial photographs provided by DOWL IHKIVI that depict the sewer main easement as it crosses through the subject property and Parcel 2, which is also part of this same project, are included in the addenda as well. This appraisal assignment address a partial acquisition of the subject property which I assume is regulated by the State Rule. The following calculations and conclusions are made under the assumption that the State Rule is applicable to this appraisal assignment. Reportedly the current owner of this property, Montana State University, has no issues or concerns with this project. Tony Becken-Gaddo informed the facilities manager, Dan Stevenson, that I would be on site on March 3, 2016 to complete my property inspection and take my photographs. Mr. Stevenson did not meet me for my inspection. At the time of my site inspection the subject property was not staked so the exact boundary of the proposed easement was not located. Prior to my site inspection I spoke with Tony Becken-Gaddo and he explained any fencing that may be impacted by this project would be repaired as part of the project. It does not appear any of the building improvements near the SEC or any other site improvements are impacted by the project. Value of the Easement Tony Becken-Gaddo provided me a copy of a sample public utility easement that is similar to the one that will be imposed on the subject site. Since this new easement will be for a sewer main it is my opinion the property owner will loose most of their property rights or 95% of their rights in the easement area once it is in place. The proposed sewer main easement will be .89 acres. Land value was estimated earlier in this appraisal report at $45,000/AC. Therefore, the value of the easement area is as follows: $45,000/AC x .89 AC x 95% = $38,048 J. Michael Joki, MAI, SRA HELENA, MONTANA 47 Value of the Remainder, Before The value of the remainder before is the value of the larger parcel before less the value of the easement as part of the whole before, which calculates as follows: Total Value Before: $1,852,650 Total Value of the Easement: 38,048 Value of the Remainder, Before: $1,814,602 J. Michael Joki, MAI, SRA HELENA, MONTANA Fps? SUBJECT'PROPERT'YPHOTOGRAPHS Photograph taken near the NEC and looking south along the easement area. March 3, 2016 by J. Michael Joki, MAI, SRA. Photograph taken near the SEC and looking north along the easement area. March 3, 2016 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAL SRA HELENA, MONTANA I&I IDENTIFICATION OF THE SITE, AFTER The use of the subject site is essentially die same in the after situation, best suited for multi family development, except a sewer main easement will be imposed along the entire east boundary that is .89 acres in size. SITE DESCRIPTIONAFTER IMPOSITION OF THE EASEMENT After this project is completed the larger parcel area remains at 41.17 acres. Anew easement for a sewer main of .89 acres will be imposed along the east property boundary. The property owner will lose most of their property rights within this new easement area and will have very little or 5% of their rights remaining once the sewer main easement is in place. After the project is completed the size, access, topography, shape and use will all remain the same. J. Michael Joki, MAI, SRA HELENA, MONTANA 50 HIGHESTAND BEST USE AFTER "The reasonably probable and legal use of vacant land or an improved property that 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. Alternatively, the probable use of land or improved property - specific with respect to user and timing of the use - that is adequately supported and results in the highest present value."' The definition above applies to the highest and best use of vacant land or improved property. It is to be recognized that in cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. Quite often in estimating the highest and best use of land, the appraiser is controlled by governmental regulations. These controls are generally zoning ordinance, parking requirements and building codes. Also, in the estimate of highest and best use, one must recognize the attitude of typical investors in the marketplace. Real estate will usually fall into certain definite development patterns, and their uses can be classified as: residential, agricultural, recreational, industrial, commercial and public use. In valuing the highest and best use of the land both as if vacant and improved, the following criteria must be met. 1) legally permissible, 2) physically possible, 3) financially feasible, and 4) maximally productive. 2 The Dictionary ofReal Estate Appraisal, 5th ed., s.v. "highest and best use". J. Michael Joki, MAI, SRA HELENA, MONTANA 51 HIGHEST AND BEST USE OF THE PROPERTYAS VACANT Legally Permissible The subject property is currently zoned PLI ( Public Lands and Institution District) which allows for a wide range of uses. A number of the allowed uses were previously described in the zoning section and a copy of the zoning ordnance is included in the addenda. The aforementioned uses are allowed as long as the property is being used for the benefit of the public. Because I have been asked to estimate the current market value of the subject property, which is based on its highest and best use, I will not value this property as public land and institutions ground. Not only is the PLI not the highest and best use of this property but PLI zoned land sales are not available as PLI land does not typically sell on the open market. I have been asked to estimate the current market value of the subject property and it will be shown in the following sales analysis that the historical use of this site associated with Montana State University with PLI zoning is no longer the highest and best use of this property. I spoke at length with Tom Rogers from the City of Bozeman Planning Department about the subjects location and surrounding uses and because of these characteristics several of the development classifications can reasonably be eliminated from consideration. The first check when requesting a zoning change is to consider the 20 Year Land Use plan for a property and determine if these are any zoning overlays. In the 20 Year Land Use Plan for the City of Bozeman this site is still ear marked to have PLI zoning and they do not expect a change in use because this site is being used by Montana State University. Also, there are no zoning overlays on this land. However the planning department has to entertain amendments to their growth policy on a regular basis. I first considered the reasonableness of this property being developed with single family residential home sites with the R1 or R2 zoning ordinance. These zoning ordinance certainly exist within in this neighborhood however it is more likely a multi family, office or other commercial use is more probable at this location which is generally at the intersection of 19th Avenue and College Street at the northwestern edge of the Montana State University Campus. There are other areas in and around this neighborhood that are much better suited for a residential use and therefore I have eliminated residential use from consideration. Agricultural use can also reasonably be eliminated from consideration merely based upon the size and J. Michael Joki, MAI, SRA HELENA, MONTANA 52 location of this site. Even though this site is currently utilized by Montana State University this is for educational purposes. The City of Bozeman has public tennis courts, softball fields, swimming pools and other recreational facilities dispersed though out the city limits and reasonably this use can also be eliminated from consideration. This location is not suited for industrial use (light or heavy) as land values in this neighborhood are to high to justify an industrial use at this location. Therefore industrial uses can also be eliminated from consideration. This leaves commercial use and multi family use as the most reasonable and legally permissible uses of this land as if it were vacant. Both commercial and multi family uses are prevalent throughout this neighborhood and in the immediate vicinity of the subject property. I found through my research it is likely a commercial use (i.e. office or retail) would have a relatively long absorption period at this location and at the outset it appears a multi family use with an R-3 or R-4 zoning district would be better suited for this location. It is no secret that Montana State University is continually expanding, as well as its student body, and finding housing in direct proximity to the campus has been a challenge for many years. A multi family use at this location would certainly help this seemingly never ending need. Physically Possible Properties in this neighborhood are improved with a mix of residential and commercial uses. Most sites are improved to the maximum density permitted by zoning while considering parking regulations and other restrictions. The subject property is 41.17 acres ( larger parcel area) and has significant frontage on Garfield Street. This site has generally level topography and is square in its shape which eliminates higher development cost often associated with sloping, irregular shaped sites. This property can be accessed from Garfield Street, and all public utilities are readily available. Soil conditions in this neighborhood have proven adequate for development of all property types. Based upon the physical characteristics of the subject property and the existing properties in this neighborhood, the most reasonable and legally permissible uses of the subject property (commercial or multi family use) would be physically possible. J. Michael Joki, MAI, SRA HELENA, MONTANA 53 Financially Feasible Bozeman is experiencing growth again, particularly in the past 4 or 5 years, and much of the new growth is residential development. In terms of residential development this site is very well located near the intersection of 19th Avenue and College Street and at the northwestern edge of the Montana State University Campus. From this location there is good access to Bozeman's downtown district and the significant retail development along North 19th Avenue. Many nearby streets are significant traffic streets that provide good access throughout Bozeman. Properties in this neighborhood historically are very marketable and well received in this community. To develop the subject site into numerous commercial lots for either a retail or office use may prove to be financially difficult. I have spoken with a number of real estate professionals in this community and they were generally of the opinion that a commercial use at this location wether it be retail or office use would most likely have a longer absorption period than a multi family use. There are a number of established retail and office uses surrounding the Montana State University Campus that have existed for many years. There is newer retail and office use directly north and northwest of the subject property however this land has been slower to develop because the demand for these uses is not as strong at this location as compared to other areas of Bozeman. Because there is such high demand for high density residential development, i.e. apartments, in Bozeman, let alone the subjects location in direct proximity to campus, most likely a residential development could absorb the development costs and impact fees more quickly and prove to be a feasible use of this site. Maximally Productive The use that conforms with the requirements of the first three tests and will provide maximum productivity of the subject site, as if vacant, is most likely for development with a high density residential use. In concluding to the highest and best use of a property the physical use, the tithing of the use and the user's/most probable buyers needs to be defined. It is my opinion the maximally productive use of this site is for development with a high density residential use that would be consistent with the nearby uses in this neighborhood. In terms of the most likely buyer and user of this site there are two options. An end-user sale is a sale to a buyer who intends to immediately utilize the property to its highest and best use. A speculative - investor sale is the sale to a buyer who purchases the property with no intention of immediately utilizing the property to its highest and best use. It is my opinion the subject site would be purchased as an end user sale and would be immediately utilized to its highest and best use as a high density residential development assuming the appropriate changes could be made to its current zoning. J. Michael Joki, MAI, SRA HELENA, MONTANA 54 HIGHEST AND BEST USE OF THE PROPERTYAS IMPROVED Legally Permissible The subject property appears to meet all PLI zoning ordinance requirements. It was confirmed with Tom Rogers that the current use, associated with Montana State University, is a legally permitted use in the PLI zoning ordinance. Therefore the current use of the subject property is a legally permissible use as it conforms to the current zoning ordinance. Physically Possible The current use of the subject property which is associated with Montana State University is obviously physically possible. This site serves an educational purpose for the University and as I understand has served well with this use for many years. Financially Feasible The subject site currently supports the Bob Miller Pavilion and various other outbuildings that are primarily located along the south boundary. For the most part the northern 75% of this site is unimproved but is utilized by Montana State University. Even though this land is being utilized for educational purposes it is obviously under utilized and not being used to its highest and best use. I have spoken with several realtors, real estate appraisers and developers who are very familiar with this neighborhood and undeniably if a zoning change could be made a high density residential development at this location would be well received. To correctly test the financial feasibility of this property "as improved" the market rent, operating expenses and an appropriate capitalization rate should be determined for the existing buildings so an indication of value via the Income Approach can be compared to the vacant land value. However, as previously explained there are few building improvements on this property and the only building that would command a significant rent is the Bob Miller J. Michael Joki, MAI, SRA HELENA, MONTANA 55 Pavilion. As shown in the following land sales analysis this property "as if' vacant is worth far more than it could ever be as currently improved with its few building improvements. Maximally Productive Ultimately the highest and best use of this property is no longer for use by Montana State University. A higher and better use would be to raze the existing building improvements and make way for new development that would most likely be a high density residential use. J. Michael Joki, MAI, SRA HELENA, MONTANA 67-1 PROPERTY VALUATION, AFTER In the Sales Comparison Approach an indication of value is derived by comparing the relative utility and desirability of the subject site with comparable properties that have recently sold or are currently listed for sale. Basic to this approach is the principle of substitution which states that "when a property is replaceable in the market, its value tends to be set by the price required to acquire an equally desirable substitute property." In this appraisal report the land is valued however the improvements are not included therefore the Cost and Income Approaches to value are not applicable. SITE VALUATION The method employed to value the site as if vacant and available for sale is the Sales Comparison Approach. An investigation of the market revealed several sales and listings indicative of what a well-informed buyer or seller would consider in forming an opinion of value. Four sales were chosen as being most appropriate to compare against the subject site. Descriptive data and photographs of these comparables are contained in the addenda. Adjustments All comparables differ somewhat from each other, and from the subject in various ways. The usual differences are for cash equivalency, market conditions, location, and a number of physical characteristics. Many of these factors, in varying degrees, are applicable in the appraisal of the subject property. When dissimilarities are found in comparable properties, they are adjusted for by adding to the comparable price when the dissimilar factor is inferior to the same factor found in the subject property. Likewise, a minus adjustment should be made when the comparable sale has a factor which is superior to that found in the subject property. The sale properties, then, are adjusted to the subject property. However, in the market it is often difficult and sometimes impossible to accurately isolate a given factor. J. Michael Joki, MAI, SRA HELENA, MONTANA 57 In short, one very seldom finds sales which are identical in all respects but one, and thus is able to prove conclusively the value, or lack of it, for any one factor due to a difference in sale price. Often, there are plus and minus factors which offset each other. Thus, the use of subjective judgment, to some degree, may be exercised. Nevertheless, the differences in values are real and adjustments based on as much fact as can be found, will be made. Then, the appraiser may call upon his experience to make subjective judgments. Property Rights Each of the sales involve fee simple property rights. As a result, no property rights adjustments were warranted. Financing.• All Sales were cash to the seller or on terms considered cash equivalent, and no adjustments were required. Conditions of Sale: No non -market conditions motivating the buyer or seller involved in the transactions are known, therefore no adjustments are required. Expenditures ImmediatelyAfter Sale: None of the sales required expenditures immediately after sale, and therefore no adjustments are required. If expenditures were verified they were typically associated with annexation into the city limits. Market Conditions: A market conditions (time adjustment) is required to bring all comparable sale properties up to the effective date of the appraisal report which is March 3, 2016. Bozeman was experiencing significant decline in real estate values when the local and national recession was in affect. Since 2011 real estate values have J. Michael Joki, MAI, SRA HELENA, MONTANA M rebounded in this market, and have become particularly strong since 2013, with new projects being developed again. Demand for unimproved land is now out weighing its supply. I will utilize four comparables in the following analysis with two sales closing in 2012, one sale closing in 2015, and one sale closing in 2016. Each of the developers, real estate agents and real estate appraisers I interviewed in this market were of the opinion market conditions are improving and they are currently strong in Bozeman with more demand than supply of vacant land. The persons I interviewed were consistently of the opinion that value of unimproved sites, particularly those with a highest and best use of multi family, have conservatively appreciated 20% since 2013 and at least 30% since 2012. To provide some support for the information given to me in the aforementioned interviews I have completed a paired sales analysis of two sales I have in file that are best suited for multi family development. The fust property sold on February 11, 2011 at $1.15/SF and the other sale sold on June 16, 2014 at $1.95/SF. Both of these sales are very similar in terms of there location and physical aspects, and making the assumption there would be no adjustment necessary for the difference in size, this paired sales analysis indicates values have increased 69.57% over the 40 months between these sales which equates to an appreciation rate of 1.74% per month or 20.87% per year. This at least provides some market data support for the information provided to me during my market interviews. I have considered the information given to me during my interviews and the paired sales analysis and will adjust sale No. 1 and No. 2 upward by 30% for market conditions. Comparable No. 3 and No 4 sold within 6 months of the effective date of this appraisal report and in my opinion are indicative of current market value and will not be adjusted for market conditions. Remaining Adjustments: The remaining adjustments will be explained in a qualitative analysis which is an effective technique that recognizes the inefficiencies of a real estate market and the difficulty in expressing the adjustments with mathematical precision. The adjustments included in the qualitative analysis are location, size, access, topography, utilities, shape and use. The land sales adjustment grid can be seen on the following page. J. Michael Joki, MAI, SRA HELENA, MONTANA M, LAND SALE L0CATION MAP J. Michael Joki, MAL SRA HELENA, MONTANA Me] fill►]� ICIIUul al Street Atlas USA® 2006 Data use subject to license. M! © 2004 DeLorme. StreetAtlas USA® 2005. 0 +/Q '/2 % WWw.delorme.com MN (0.00 W) Data Zoom 12-1 LAND SALE ADJUSTMENT GRID J. Michael Joki, MAI, SRA HELENA, MONTANA 61 SUBJECT SALE 1 SALE 2 - SALE 3 SALE 4 Sale Price $2,900,000 $648,233 $3,564,000 $3,866,137 Size (acre) 41.17 78.00 20.00 37.05 53.77 Price/AC $37,179 $32,412 $96,194 $71,901 Date of Sale 8/10/12 6/27/12 9/10/15 1/6/16 Market Adjustment Plus 30% Plus 30% -0- -0- Adjusted Price $3,770,000 $842,703 $3,564,000 $3,866,137 Adjusted Price/AC $48,333 $42,135 $96,194 $71,901 Location South of Garfield Street and just West of 19th Avenue 19th Ave and Graf Street 19th Ave and Southbride Dr. g. 11th Ave and Baxter Lane, just south of I-90 Valley Center and West lake Rd, just south of I-90 Comparability Similar Similar Superior Superior Size (acre) 41.17 78.00 20.00 37.05 53.77 Comparability Slightly Inferior Similar Similar Similar Access Garfield Street 19th Avenue 19th Avenue Baxter Lane & 11th Avenue Valley Center & North 27th Ave. Comparability Similar Similar Similar Similar Topography Level Level Level Level Level Comparability Similar Similar Similar Similar Shape Square Rectangular Rectangular Slightly Irregular Slightly Irregular Comparability Similar Similar Similar Similar Utilities Adjacent to site North of site Adjacent to site On site On site Comparability' Slightly Inferior Similar Superior Superior Highest & Best Use Multi Family Residential Subdivision or Multi Family Residential Subdivision Commercial Commercial or Residential Comparability' Similar Similar Superior Superior Overall Comparability' Similar Similar Superior Superior J. Michael Joki, MAI, SRA HELENA, MONTANA 61 J. Michael Joki, MAI, SRA HELENA, MONTANA 62 Sales Analysis: The subject site is a square shaped site that is located on the south side of Garfield Street and just west of 19th Avenue. This 41.14 acre site supports the Bob Miller Pavilion and other outbuildings associated with Montana State University. This site has level topography and can is accessed from Garfield Street near its northeast corner. City services are adjacent to this site as much of the surrounding land is already developed. The subject site is currently zoned PLI however as previously discussed in the highest and best use analysis this site is best suited for a multi family development. Sale No. 1 is a 78.00 acre site that sold on August 10, 2012 for $2,900,000 or $37,179/AC. After adjusting for market conditions this comparable indicates a price of $48,333/AC. Comparable No. 1 is located south of the subject property on the east side of 19th Avenue. Comparable No.1 has similar access, topography, shape and use and its only inferior aspects are the city utilities were located north of this site at the time of sale, and this is a slightly larger site. Otherwise, Comparable No. 1 is considered to be quite similar when compared to the subject property. Comparable No. 2 is a 20.00 acre site that sold on June 27, 2012 at $648,233 or $ 32,412/AC. After adjusting for market conditions this comparable indicates a price of $42,135/AC. Comparable No. 2 is also located just south of the subject property and on the west side of 19th Avenue. Comparable No. 2 is considered to be similar in all of its physical aspects when compared to the subject property. Comparable No. 3 is a 37.05 acre site that sold on September 10, 2015 at $3,564,000 or $96,194/AC. Comparable No. 3 is located at the intersection of Baxter Lane and 11th Avenue and just south of Interstate 90 which is clearly a superior location. Comparable No. 3 is similar in size, access, topography and shape. Comparable No 3 has superior utilities and is best suited for a commercial use, an coupled with its superior location, is considered to be superior when compares to the subject property. Comparable No. 4 is a 53.77 acre site that sold on January 6, 2016 at $3,866,137 or $71,901/AC. Comparable No. 4 is located at the intersection of Valley Center Road and North 27th Avenue and just south of Interstate 90 which is clearly a superior location. Comparable No. 4 is similar in size, access, topography and shape. However, Comparable No. 4 has superior utilities and is best suited for a mixed use development with J. Michael Joki, MAI, SRA HELENA, MONTANA Yt3 commercial and residential. These features coupled with this sales superior location makes Comparable No. 4 superior to the subject property. The value indications derived from the comparables are reconciled into a single value indication by arranging the four comparables in an array relative to the subject. BRACKETING THE SUXECT PROPERTY Comparable Adjusted Price Per AC Overall Comparability 2 $42,135 Similar 1 $48,333 Similar Subject Property 4 $71,901 Superior 3 $96,194 Superior A shown in the chart above clearly the most similar comparables ate Sale No. 1 and Sale No. 2. Both of these sales are considered to be very similar when compared to the subject property with the only discerning difference being the size of Comparable No. 1 at 78 acres. After analyzing the size and the other physical characteristics it appears that site size does not affect market value as much as location and zoning which ultimately dictate the highest and best use of the sites. Therefore, little emphasis is being given to the difference in size of the sales when compared to the subject property. Not only do Comparable No.1 and No. 2 have the same use but they are both located just south of the subject property. These sales show a value range of $42,135 to $48,333/AC. Comparable No. 3 and No. 4 are both very recent sales of land that is best suited for commercial development. Sale No. 3 and No. 4 are similar to the subject property in many of their physical aspects however their superior location in proximity to Interstate 90 and their commercial zoning/use makes these sales superior to the subject property. J. Michael Joki, MAI, SRA HELENA, MONTANA 64 Considering this information and giving most emphasis to Comparable No. 1 and No. 2 it is my opinion the subject site has a current market value of $45,000/AC. After this project is completed .89 acres will be encumbered with a sewer main easement. It is my opinion the property owner will have little or 5% of their property rights remaining in the easement area. Therefore, land value after the project is as follows: 40.28 AC x $45,000/AC = $1,812,600 New Easement Area .89 AC x $45,000/AC x 5% _ $2,002 Total J. Michael Joki, MAI, SRA HELENA, MONTANA _ $1,814,602 65 DEPRECIATION TO CURRENT FAIR MARKET VALUE Depreciation to current fair market value is calculated by subtracting the estimated market value of the subject property after the imposition of the easement from the value of the remainder, before. This calculates as follows: $1,814,602 - $1,814,602 = $0 The above calculation shows there is no depreciation to the current fair market value of this site. Cost to Cure: None Value of the Remainder as Cured.• None Remaining Depreciation of the Fair Market Value: None Special Benefits: None J. Michael Joki, MAI, SRA HELENA, MONTANA RECAPULA TION OF COMPENSATION Value of the acquisition: Site Improvements: Temporary Construction Easement: Sewer Main Easement: .89 acres x $45,000/AC x 95% Depreciation of Fair Market Value: None Cost to Cure: Total Compensation as of March 3, 2016 Compensation, rounded: Total Compensation: Lessee Interest.• Not applicable Lessor Interest. - Not applicable $ 0 $ 0 $ 0 $ 38,048 $ 0 $ 0 $38,048 $38,050 $38,050 J. Michael Joki, MAI, SRA HELENA, MONTANA 67 ADDENDA L Michael Joki, MAI, SRA HELENA, MONTANA PrintPropertyRecordC ard Page 1 of 3 Property Record Card Summary PrImauy Information Property Category: RP Subcategory: Real Property Geocode: 06-0798-14-2-07-01-6002 Assessment Code: OORGG62457 Primary Owner: PropertyAddress: GARFIELD ST MONTANA STATE UNIVERSITY BOZEMAN, MT 59715 GEN DELIVERY COS, Parcel: BOZEMAN, MT 59717-0001 NOTE: See the Owner tab for all owner information Certificate of Survey: 2729 Subdivision: Legal Description: 514, T02 S, R05 E, C.O.S. 2729, ACRES 41.173, EAST POR TRACT A IN SD 7C-08 (RGG62456 IN SD 7R-41) Last Modified: 2/24/2016 7:36:58 PM General Property InfoRni-nation Land Type Neighborhood: 101.A Property Type: EP - Exempt Property Living Units: I Levy District: 06-035008-7C 08 Zoning: Ownership %: 100 Linked Property: No linked properties exist for this property Exemptions: No exemptions exist for this property Condo Ownership: General: 0 Limited: 0 Prop,caty Factors Topography: Fronting: Utilities: Parking Type: Access: Parking Quantity: Location: Parking Proximity: Lanid Land Type Acres Value Grazing 0.000 00.00 Fallow 0,000 00.00 Irrigated 0.000 00.00 Continuous Crop 0.000 00,00 Wild Hay 0,000 00.00 Farmsite 0.000 00.00 ROW 0,000 00.00 NonQual Land 0,000 00.00 Total Ag Land 41.173 00.00 Total Forest Land 0,000 00.00 Total Market Land 0.000 00.00 http://svc.mt.gov/msi/MTCadastral/PrintPropertyRecordCard/GetPropertyRecordCardData?Geocode=06079814207016002&year= March 01, 2016 Pri ntPropertyRecordC and r)ePd Date I inlooF,� I ioagw rekid, Daf�j I r)0r;t1ruent Owners Party #1 Default Information: MONTANA STATE UNIVERSITY GEN DELIVERY Ownership %: 100 Primary Owner: 11 Yes" Interest Type: Fee Simple Last Modified: 11/15/2007 10:38:30 PM Other Narnes Name Type Appraisals Appraisal Histmiy Other Ao.dresses Tax Year Land Value Building Value Value Method 2015 1833 0 1833 COST 2014 2379 0 2379 COST Market Land Market Land Info No market land info exists for this parcel Dwellings Existing D walfings No dwellings exist for this parcel Other Buildings/improvements Out Improwiments No other buildings or yard improvements exist for this parcel No commercial buildings exist for this parcel MMOM Acre Type: NQ - Non Qualified Ag Land Irrigation Type: Class Code: 1751 Timber Zone: Quantity: 0 Commodity: http://svc.mt.gov/msl/MTCadastral/PrintPropertyRecordCard/GetPropertyRecordCardData?Geocode=06079814207016002&year= Page 2 of 3 March 01. 2016 Pri ntPropertyR ecordC and Units: Non Qua[ Valuation Acres: 41,173 Value: 0 Per Acre Value: 0 Page 3 of 3 ti«...i�...,,...,1.....,i..,..itna'rr.,a.,..+ stir;.,sow,,....�ti,o�..,.�a�-,ran�.,so�.,..,,.�„o �,..,r.��nA )nIa Printing: Layout Page Q 1 s t€ � Page 1 of 1 http://svc.mt.gov/msl/mtcadastral/layout.aspx?21 March 01, 2016 CITY OF BOZE414I — CO MMERCIAL AND INDUSTRIAL ZONING _.....___..� �_. . 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SAnpambi<-ldoorehdd; n-..®ds4k,34ev � itArlasoclw ttnnmdltddcavtl 317011 persnodlel duntig oAurors�e <dlvmo roaem•.9 Pt1SWk3k Lmedv emd 1mMhnce.<[r;ce. cmoaedo:mw<•umrseos- 1]nvteemoa; solid awminod69 (1d buil • uw kd f Irwfltuliom} Iserodcand I mmol FimLna sod vhiMk Fobk salt r 6ditta tttdadIDmdsenmuar trFiagr Fnda loe ese4niaof vn begdiaf•, pohGemd mgwfie, gsmn•pubbe aeec.oeyro pamitkd uzz nqi�•edsaodf^F eegwemmr �v ¢quamear \n•ad sega®dmreu<pt �o rtquimvor dmdmmm; pub8ek naxdlned we �epadn, e(e arMoatWkd bf shrs7xu'afWcrnt manoWer . hw'td'mtP tGamek We tends Wen shntl by the ' .a mn edjaca[ d'omca mmol FimLna sod vhiMk Fobk salt r 6ditta tttdadIDmdsenmuar trFiagr Fnda loe ese4niaof vn begdiaf•, pohGemd mgwfie, gsmn•pubbe aeec.oeyro pamitkd uzz nqi�•edsaodf^F eegwemmr �v ¢quamear \n•ad sega®dmreu<pt �o rtquimvor dmdmmm; pub8ek naxdlned we �epadn, e(e arMoatWkd bf shrs7xu'afWcrnt manoWer . hw'td'mtP tGamek We tends Wen shntl by the ' .a mn edjaca[ d'omca City of Bozeman Zoning Districts EXHIBIT B TRACT A OF CERTIFICATE OF SURVEY NO. 2729, YJTD 2 QnT I'TH RANGE ,SITUATED IN THE NW 1/4 OF SECTION 14, UVYINO I EAST, PRINCIPAL MERIDIAN, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA. WATER MAIN AND SEWER MAIN EASEMENT: ER MAIN EASEMENT, over and across Tract A of Certificate of Survey No. 2729, A WATER MAIN AND SEW of Bozeman, situated in the NW114 of Section 14, Township 2 South, Range 5 East, Principal Meridian, City Gallatin County, Montana= more particularly described as follows: 4, Township 2 South, Range 5 East, Principal Commencing at the Center One-quarter Corner of Section 1meter, 14531 LS, the ce N. 1 V35"E., for Meridian, being a found . rebar with an aluminum cap, two Inches dia on the west boundary of Tract D of Certificate of survey No. 1243A., the PO NT OF 13,33 feet to a point 16 feet; thence S,89006'07"E., 82,70 feet-, thence Ko'100100"E., for 35.. BEGINNING, thence N,89'04'01 "W., for . 13'58"E.,.for 707-18 feet; thence N.88"46'02"W., for 1323 feet; thence for 31.91 feet; thence N ' I � o I 3158"E., for 510.51 N:1 °13"58'"E., for 20.00 feet; thence 8.8846'02"E., for 2123 feet; thence NA feet; thence N.386:40102"W.., for 20.97 feet, to a point on the south rifor45.44 ghWhence feet; tof est Garfield Street*, thence '1 91 8168"E., for Street s.89-0122"E., along the south right-of-way of West Garfield ry of Tract D of Certificate of to a point on the west bounda 1253,01 feet, thence 5,88°55"37"E., for 19.53 feet, Survey No, 1243A; thence S.1*1 1*35"W,, for 36.53 feet, to the POINT o F sSGINNIING, The area of the described tract of land being43,680 square feet, or 1.003 acres, morr . CERTIFICATE OF SURVEYOR 1, Daniel J. Boers, Montana professional Land surveyor License No. 14732LS, hereby te-Ty that Exhibit A and Exhibit B Were prepared under my supervision In March of 2016. Dated this _ day of Daniel J. Boers, pL.s, CFedS MT Reg, No. 14732LS Morrisorl-Malek, Inc- Big Morrison NMI Maierle 2P8O Tech0109Y Bl"d- FI—e: (406) 5B7,0721 Pix: OW 922-67C2 enine'r' , , pla"'05' , A.D., 2016. SOUTH UNIVERSITY AREA Q[WA',N Sy WATER MAIN AND SEWER MAIN CIWD.By: 70JBBOZEMA-�'[ 'y APPR, IM DATE: WATER MAIN AND SEWER MAIN EASEMENT EXHIBIT MOJEC( NO G.W.012.02 EXHIMT EX. B Mail:: FW: MSU Farm SS Easement Hi Mike The engineers gave me the final easement areas. Parcel 1: 38,938 sqft. Parcel 2: 75,497 sgft. Please note the easement area for Parcel 1 is greater than the number I gave you as the number on the exhibit includes a water line easement which is not going to be paid for and included in the appraisal. Please give me a call with any questions. Thanks, Tony J. Gaddo, P.E. Real Estate Specialist/Transportation Engineer 406.586.8834 is 800.865.9847 (fax) 2090 Stadium Drive Bozeman, Montana 59715 Consider the environment before printing. From: Gaddo, Tony Sent: Tuesday, March 15, 2016 4:21 PM To: Jokiapprsl@aol.com' Subject: MSU Farm SS Easement Hi Mike, I wanted to check in regarding the appraisal. Are you on schedule to deliver the report this week and send the report to Dave Thomas for review? Tony J. Gaddo, P. E. Real Estate Specialist/Transportation Engineer 406.586.8834 ig 800.865.9847 (fax) 2090 Stadium Drive Bozeman, Montana 59715 Consider the environrn{e; it before printing. r- - - - - - -- ---- ---- --- -- ---- -- --- - - ---- -- --- --- -- -- --- --- -- - -i Sewer—Easement—Exhibit EXHIBIT A - MSU.pdf (287 KB) L ------------------------------------------------------------J Page 2 of 3 http:/Avww.jmichaeljoki.com:2095/cpsess6577202190/horderiimp/dynamic.php?page=message&buid=51779&mailbox=SU5CT1g&token=PCe6j8v... March 18, 2016 HUFFINE LN. ❑ i O t COLLEGE ST. i _ LINCOLN ST. - LINCOLN ST. z O Z� OWNER: MO NT A STATE UNIVERSITYC�Vi 5 w _ zz MINGTON WA F — LL ¢ a w 3 Z Z w m GAR/FIELD ST. / GARpIELD ST. EXISTING _ a� 0 PROPERTY a OWNERSHIP PROPOSED SANITARY _ LINES SEWER ALIGNMENT EXISTING PROPERTY LINES UTILITY EASEMENT ACQUISITION AREA OWNER: STATE OF MONTANA 2 J ❑ i O t ° _ LINCOLN ST. - LINCOLN ST. z O Z� OWNER: MO NT A STATE UNIVERSITYC�Vi w _ zz MINGTON WA F — LL ¢ a w 3 Z Z w m _ a� 0 Zgw <<o m a z N - KAGY BLVD. -. w I ¢ a a NOTE: CAOASTRAI ABO MAY NOT BEE�CT ED FROM MONTANA sMse FIGURE 1 P jI- I PROPOSED "-INCH SEWER MAIN - JC LT (1YP.j ALCNMENT / SECTION LINE P PROPOSED 60 -INCH SCAER MANHOLE (TrP,) III iI� - 60 25 HB IN PEST p ;� VERT. SCALE • III III I 3I. .� _J.; ]I I II '•�ay2_a__ INFEST - __ V _SLI► PRELIMINARY NOT FOR CONSTRUCTION ABRO S- I �I 6 l B B 4640 4•w 5 50 a oo ]� T, ROR��O� 7so IHoi °seam e•so AWN Or NDI 0• o oN er.N t0•Co it•oo 11.50 1 •50 t]wo »• Ixwo SOUTH UNIVERSITY AREA SEWER MAIN INTERCEPTOR 14sa 1IECT NNMBER 0417 oxzo. 1V1 .�N.m �'o�mr MSU AG EXPERIMENT STATION ROAD rPROPOSED ]0 EASEMENT (CENTERED ADOUT SWER MP N) MT ETNUMBER Ij• r9� IERLE INC. 7 ' 11— Fno�o: woel a4xans0 P,a e, F4r,4o6,44x 15 \ MSU AGRICULTURAL ROAD -PRELIMINARY PLAN AND PROFILE DRnw1NCNUMDEM 6r onBE STATION 0+00 - END S-3 u.1 Cy rte- �a t2 - _ P jI- I PROPOSED "-INCH SEWER MAIN - JC LT (1YP.j ALCNMENT / SECTION LINE P PROPOSED 60 -INCH SCAER MANHOLE (TrP,) III iI� - 60 25 HB IN PEST p ;� VERT. SCALE • III III I 3I. .� _J.; ]I I II '•�ay2_a__ INFEST - __ V _SLI► PRELIMINARY NOT FOR CONSTRUCTION ABRO S- I �I 6 l B B 4640 4•w 5 50 a oo ]� T, ROR��O� 7so IHoi °seam e•so AWN Or NDI 0• o oN er.N t0•Co it•oo 11.50 1 •50 t]wo »• Ixwo SOUTH UNIVERSITY AREA SEWER MAIN INTERCEPTOR 14sa 1IECT NNMBER 0417 oxzo. 1V1 .�N.m �'o�mr aPPR er. xxx BOZEMAN MT ETNUMBER - JJ IERLE INC. 7 ' 11— Fno�o: woel a4xans0 P,a e, F4r,4o6,44x 15 DATE aAa I D .R6NIEw MSU AGRICULTURAL ROAD -PRELIMINARY PLAN AND PROFILE DRnw1NCNUMDEM 6r onBE STATION 0+00 - END S-3 ALIGNMENT / PROPERTY UNE PROPOSED 60—INCH SEWER MANNOIC (M) � FRBPOSEO IS—WGN SEWER _N — SO'LT (lp.) I I HORIZ. SCALE so as so IN FEET VERT.SCALE s zs o s m IN FEET PRELIMINARY -NOT FOR CONSTRUCTION _MM I mmI MU11+ Hess 1 tii 61 Si h( PROPOSED 60—INCH SEWER MANNOIC (M) � FRBPOSEO IS—WGN SEWER _N — SO'LT (lp.) I I HORIZ. SCALE so as so IN FEET VERT.SCALE s zs o s m IN FEET PRELIMINARY -NOT FOR CONSTRUCTION _MM I mmI MU11+ Hess tii 61 Si h( h6 id Sf hi M S. Ed hd Sd M50 two Us0 xw0 M0 xw0 ed0 <w0 4,e0 s.aa Sw0 ewp Me0 740 1.50 5.50 8.00 9.50 x♦ tOwO 8.00 1Ye0 V•00 1x.50 teWO tdw015.00 14— NG. GEBCRIPTON MTE By DRAWN BY:ItpJ m BY N0. SOUTH UNIVERSITY AREA SEWER MAIN INTERCEPTOR P—E. N—ER wtT.a xox ..nw.�=M...�o. MO�DTQOTT MOMSON 1Y [y. Enaln..MaPbc. N.I.n.. MT s9am. APPR. BY:= BOZEMAN MT sHEt�NUMBm �7 MAIERLE INC. P,e...� PS.n.(<aB, x-]a5u r,Y,aoe, mz->ac wevem,5 RtvIEw WEST LINCOLN STREET- PRELIMINARY PLAN AND PROFILE DRAWING NUMBER cl.;-r B4 wTS STATION 0+00-15+00 S-4 G r r 71 r-- - -- - m. ALIGNMENT / PROPERTY LINE PROPOSED 60 -INCH SEWER rNNOLE (TIF.) J PROP059D 30EASEMENT (CENTERED ABOUT SEWER MAN) PROPOSED IS -INCH SCWCR MaN - 30'LT OOP.) I I I I I I 4655 1� � � � � � � ..- 15.00 i6b0 1]•00 I].50 18.00 te•5o 19.50 20b0 22.60 2]•90 24.Oo 2a.50 PwWN BT,N NO. DEBCRIPTON OCTEBy� �- IE,P � Pl- MORRISONH.111,B6DNBY. exlcWn, onnvwa. --"1 II , T 59602 PPPR. BY: E JJJ MAIERLE INC. t o6I ie626 o.c REv MTE 26.90 26.00 28.50 21.00 21•50 26M0 26.50 PROJECT NUMBER SOUTH UNIVERSITY AREA SEWER MAIN INTERCEPTOR an.ar..o2 CHEET NUMBER V MT WEST LINCOLN STREET- PRELIMINARY PLAN AND PROFILE ORaNANC NBMBER STATION 15.00-29+00 S-5 Return to: DOWL 2090 Stadium Drive Bozeman, MT 59715 BOsPROJECT}NAME CITY OF BOZEMAN MSU FARM PROPERTY UTILITY EA8EMENT p Engineering Division PROJECT #: 4524114p2 04 7 Public Works Department PUBLIC UTILITY EASEMENT PUBLIC UTILITY EASEMENT THE GRANTOR(S), GRANTOR, whose address is address, for and inconsideration of Ten and No/100 - Dollars, and other valuable consideration, in hand paid, conveys and warrants to the CITY OF BOZEMAN, a Municipal Corporation of the State of Montana, with offices at 121 North Rouse Avenue, Bozeman Montana 59715, its successors or assignees, a perpetual, full and unrestricted public utility easement, over, under, along, through, and across the following -described tract of land located in Gallatin County, Montana: A public utility easement to the City of Bozeman, on a tract of land located in existing legal description, more particularly described as follows and as shown on Exhibit A; **Easement legal description All improvements are the property of the CITY OF BOZEMAN, removable at its option. The failure of the GRANTEE to exercise any of its rights granted herein shall not be construed as a waiver or abandonment of the right. The above-named Grantor hereby covenants with the CITY OF BOZEMAN that said Grantor has good title to the above-described tract of land and covenants that the CITY OF BOZEMAN shall have quiet and peaceable possession thereof; and shall have a free and unrestricted right to maintain said facilities as long as the right-of-way of which this easement area is a part, remains a public utility easement. CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT*: 4524.11402.04 Page 1 of 4 Dated this day of '20_. GRANTOR Ct1n011r91 ACKNOWLEDGMENT OF GRANTORS STATE OF ) ss County of ) On this day of , 20_, before me, the undersigned, a Notary Public in and for the said State, personally appeared the Grantors, Grantor, known to me to be the identical individuals who executed the foregoing instrument, who acknowledged to me that each individual executed the same as the free and voluntary act of said company, with full authority to do so and with full knowledge of its contents, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this day arid year above written. Notary Public in and for the State of My Commission Expires: CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT4: 4524.11402.04 Page 2 of 4 CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the CITY OF BOZEMAN, a Municipal Corporation of the State of Montana, Grantee herein, acting by and through its City Manager and City Clerk for the City of Bozeman, hereby accepts for public purposes, the real property, or interest therein, described in this instrument and consents to the recordation thereof: CITY OF BOZEMAN Date: By: Chris Kukulski City Manager ATTEST: By: Stacy Ulmen City Clerk STATE OF MONTANA ) )ss. County of Gallatin ) The foregoing instrument was acknowledged before me this day of , 20_ by Chris Kukulski and Stacy Ulmen, known to me to be the City Manager and City Clerk for the City of Bozeman and the persons whose names are subscribed to this instrument, and acknowledged to me that they executed the same for and on behalf of the City of Bozeman. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this day and year above written. Notary Public in and for the State of Montana My Commission Expires: CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 3 of 4 Exhibit A CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 4 of 4 Location: Site Data: COMPARABLE LAND SALE NO. 1 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 384019th Avenue in Bozeman, Montana. This site is located on the east side of 19th Avenue at the Graf Street intersection. 1. Size : 78.00 acres 2. Zoning: Residential Urban Photo Data: 1. Date: March 3, 2016 2. Taken From: 19th Avenue 3. Facing: Northeast 4. Taken By: J. Michael Joki, MAI, SRA 5. Comp: Boz.27 Current Use: Unimproved Legal Description: The SW 1/4 NW 1/4 and the NW 1/4 SW 1/4 of Section 24, Township 2 South, Range 5 East, Gallatin County, Montana. Grantor: American Bank Recorded Sales Price: $2,900,000 Instrument: Warranty Deed Recorded: August 10, 2012 Recording Info.: 2423127 Financing: Cash to the Seller Grantee: Klein and Karen Gilhousen Confirmed Sales Price: $2,900,000 Confirming Party & Phone No.: Listing Agent -Lloyd Mandeville (406) 580-9566 Confirmed By: J. Michael Joki, MAI, SRA Confirmation Date: March 5, 2016 Property Description: This 78 acre site is located on the east side of 19th Avenue and just south of the Montana State University campus. This site is level at road grade and has a significant amount of frontage along 19th Avenue. Where Graf Street intersects 19th Avenue is now a lighted intersection. I confirmed with the listing agent at the time of sale city water service was available along 19th Avenue however city sewer service had not been extended this far south. Currently there is a sign showing the Future Home of the Yellowstone Theological Institute on this property. I confirmed with Lloyd Mandeville it is the land owners intent to allow this institute to he constructed on their land and they will donate the necessary land for the facility. Indication At Time Of Sale: $2,900,000 — 78 acres = $37,179/Acre 1071rSecurity Title Company P.O.. Box 6550 Bozeman, MI59771.-6550 Klein & Karen Gilhousen 599 Hightower Road Bozeman, MT 59718 Pte: i 6f 2127 III(NI(IIIIIIIIII 1811111f(I(IGallatin 11NN1(Illlllrllllllll(IIININIiII ee: $'4.00 DEED WARRANTY DEED FOR VALUABLE CONSIDERATION, the receipt of which is acknowledged, the undersigned, AMERICAN BANK, with mailing address at P.O. Box 1970, Bozeman, Montana 59771-1970, Grantor, hereby grants to Klein S. Gilhousen and Karen Mai Gilhousen, with mailing address at 599 Hightowner Road, Bozeman, Montana 59718, Grantee, real property in Gallatin County, Montana, described as follows: THE S W 1/4NW 1/4 AND THE NW 1/4S W I/4 OF SECTION 24, TOWNSHIP 2 SOUTH, RANGE 5 EAST, P.M.M., GALLATIN COUNTY, MONTANA. (DEED REFERENCE: DOCUIv1ENT No. 2092607) EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF MONTANA IN BARGAIN AND SALE DEED, RECORDED JUNE 30, 1964 IN BOOK 146 OF DEEDS, PAGE 24, RECORDS OF GALLATIN COUNTY, MONTANA. TO HAVE AND TO HOLD unto Grantee, and Grantee's successors, heirs and assigns, forever, SUBJECT TO THE FOLLOWING: (a) Reservations and exceptions in patents from the United States and the State of Montana. (b) Existing easements and rights-of-way. (c) Mineral and royalty reservations and conveyances of record. (d) Building, use, zoning, sanitary and environmental restrictions, and waivers of record. (e) Taxes and assessments for 2012 and subsequent years. 2423127 Page 2 of 2 08/10/2012 11:00:38 AM {fj All rights, covenants, conditions, agreements and restrictions contained or referred to in any instruments of record. EXCEPT with reference to the items referred to in paragraphs (a) to (0 inclusive, this deed is given with the usual covenants expressed in Section 30-11-110, MCA. DATED this day of August, 2012. STATE OF MONTANA ) ) ss: County of Gallatin ) This instrument was acknowledged before me op thA�4 of August, 2012, by bl&W11 , in his capacity as G �Q/ tCvAMERICAN BANK. `����111111 I I 1 t1ltttt�i O r Pri t NamP 'AJ tale— !j ar,6fWank zNpTAR�q('.9Z Notary Public for the State of Montana * , Residing at: t SFAL. • *-` My commission expires: rrir... OF MO���� Printing: Layout Page Page 1 of 1 http://svc.mt.gov/msl/mtcadastral/layout.aspx?26 March 21, 2016 COMPARABLE LAND SALE NO. 2 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 Location: West side of 19th Avenue at Southbridge Street in Bozeman, Montana. Site Data: --- 1. Size : 20.00 acres __---._ ---- _-- -- _ _- 2. Zoning: R-3 (Residential Medium Density) -- -- ---- Photo Data: I1. Date: March 3, 2016 2. Taken From: 19th Avenue 3. Facing: West 1 4. Taken By: J. Michael Joki, MAI, SRA 5. Comp: Boz.28 Current Use: Unimproved Legal Description: I Lot 4 of Minor Subdivision No. 235, a portion of Tract 3 in COS # 2029, located in the NE 1/4 SE 1/4 of Section 23, Township 2 South, Range 5 East, Gallatin County, Montana. Grantor: Flathead Bank Recorded Sales Price: $648,233 Instrument: Warranty Deed Recorded: June 27, 2012 Recording Info.: 2419193 Financing: Cash to the Seller Grantee: Holyoke IV, INC. Confirmed Sales Price: $648,233 Confirming Party & Phone No.: Keith O'Reilly Appraiser (406) 570-3768 Confirmed By: J. Michael Joki, MAI, SRA Confirmation Date: March 8, 2016 Property Description: This 20 acre site is located on the west side of 19th Avenue and just south of the Montana State University campus. This site has level topography at street grade and reportedly a significant amount of infrastructure was in place at the time of sale. Lots within the subdivision are accessed off of Southbridge Street which intersects 19th Avenue. Shortly after this sale the land was developed with phase 1 and 2 of the Southbridge Subdivision which included 43 single family residential lots. This property had preliminary plat approval prior to sale. Indication At Time Of Sale: $648,233 - 20 acres = $32,412/Acre 241 193 ChariatterMllls 066atla�ln Canly45MTM Fee: $DEED IIII�I��IilhiII.�'lilifNf111111IN11111Mill1I11I ill Escrow #: 7001-10549 Holyoke IV, INC 101 West Prairie Shopping Center #373 Hayden, Idaho 83835 M A E MONTANA AND q ORDER It '' WARRANTY DEED FOR VALUE RECEIVED, FLATHEAD BANK, Valley Bank Branch, the Grantor, does hereby grant, bargain,' sell, convey and confirm unto HOLYOKE IV, INC, of 101 West Prairie Shopping Center #373, Hayden, Idaho 83835 the Grantee and its assigns, the following described premises in Gallatin County, Montana, to -wit: Lot 4 of Minor Subdivision No. 235, a tract of land being Tract 3 of Certificate of Survey No. 2029 and NE;',SE&4 of Section 23, Township 2 South, Range 5 East, P.M.M., Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder, Gallatin County, Montana. SUBJECT TO reservations and restrictions in federal patents, prior conveyances, and mineral reservations of record, all real property taxes and assessments for the current year and subsequent years, and all building and use restrictions, covenants, easements, agreements, conditions and rights of way of record and those which would be disclosed by an examination of the property. TO HAVE AND TO HOLD the said premises, with their tenements, hereditaments, and appurtenances unto the said Grantee and its assigns forever. And the said Grantor does hereby covenant to and with the said Grantee that its is the owner in fee simple of said premises; that Grantee shall enjoy the same without any lawful disturbance; that the same is free from all encumbrances except those limitations set forth above; that the Grantor and all persons acquiring any interest in the same through or from Grantor will, on demand, execute and deliver to the Grantee, at the expense of the Grantee, any further assurance of the same that may be reasonably required; and that the Grantor will warrant to the Grantee all the said property against every person lawfully claiming the same. DATED this day of June, 2012. Flathead Bank alley Bank Branch Larry 9_ STATE OF MONTANA ) ss, County of Gallatin ) On this � day of June, 2012, before me, a Notary Public in and for said State, personally appeared LARRY JOCHIM, CEO of FLATHEAD BANK, Valley Bank Branch, known to me to be the erson whose name is subscribed to the within instrument and acknowled ed t m that he executed the same. vAgo° Tammy Redfern Print .d Na Notary Pupllp orA94t y'cfo, the State of Montana Notar ubli r t e St of Montana Residing at, Resid'.n at Montana o,.. SEAL.-,,'.* 0ozeman,Montana M fission Tres: — — ? ?V My Commission E,cpires: y co expires: November 04, 2015 Printing: Layout Page Page 1 of 1 http://svc.mt.gov/msl/mtcadastralAayout.aspx?41 March 21, 2016 M Airs wIff eff Page 1 of 1 http://svc.mt.gov/msl/mtcadastralAayout.aspx?41 March 21, 2016 COMPARABLE LAND SALE NO. 3 JOK1 & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 Location: Southwest corner of Baxter Lane and 11 th Avenue in Bozeman, Montana. Site Data: 1. Size : 37.05 acres 2. Zoning: B-2 Photo Data: 1. Date: March 3, 2016 2. Taken From: 11 th Ave. 3. Facing: West 4. Taken By: J. Michael Joki, MAI, SRA 5. Comp: Boz.29 Current Use: Unimproved Legal Description: Lot 6A of PT Land Phase 2 Subdivision and Lots 1, 2 and 3 of Block 3 of PT Land Phase 2 Subdivision, Plate, J-498, Gallatin County, Montana. Grantor: PT Land Grantee: Montana Keystone Ventures, LLC Recorded Sales Price: $3,564,000 Confirmed Sales Price: $3,564,000 Instrument: Warranty Deed Confirming Party & Phone No.: Seller Jerry Perkins Recorded: September 1, 2015 Keith O'Reilly Appraiser (406) 570-3768 Recording Info.: 2523526 Confirmed By: J. Michael Joki, MAI, SRA Financing: Cash to the Seller Confirmation Date: March 9, 2016 Property Description: This slightly irregular shaped site is located at the southwest corner of Baxter Lane and 11 th Avenue and has good visibility from Interstate 90, and lies between the North 7th Avenue and North 19 Avenue exits. In total there is 37.05 acres comprised of 3 "turn key" sites that can be sold immediately. Reportedly the buyer intends to redevelop the entire site including the 3 separate lots. The buyer is the owner of the adjacent Homewood Suites Hotel, also known as the Bennett Hospitality Group. Reportedly 8.67 acres of this site is wetland area and cannot be developed. This is one of the last large sites within the city limits of Bozeman best suited for commercial development. There already has been significant commercial retail development in nearly all directions from this site. Reportedly l a significant amount of infrastructure cost will have to be incurred including improvements to Baxter Lane and the construction of Tschache Lane Indication At Time Of Sale: $3,564,000 =37.05 acres = $96,194/Acre RETURN DOCUMENT TO: American Land Title Company 1800 W. Ko , Bozeman. MT 58715 Order No• ' � 0_ 2523526 Ghartotle rflllls 09Ga11ati.5 Caunty52MTfl Fee: $ ZDEED 11111111111111111m11111111111111111111111111NM11G1f1111111�11 WARRANTY DEED For Value Received, PT LAND, a Montana general partnership, with address of 511 North Wallace, Bozeman, Montana 59715, the Grantor, does hereby grant, bargain, sell, convey and confirm unto MONTANA KEYSTONE VENTURES, LLC, a South Carolina Limited Liability Company, with address of 17 Lockwood Drive, Charleston, South Carolina 29401, the Grantee, the following described premises in Gallatin County, Montana, to -wit: Parcel I: Lot 6A of PT Land Phase 2 Subdivision, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana [Plat J-498]. Parcel I1: Lots 1, 2 and 3 of Block 3 of PT Land Phase 2 Subdivision, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana [J-498]. SUBJECT TO easements, conditions, restrictions and rights-of- way shown or indicated in the public records or plats filed and recorded in the office of the County Clerk and Recorder of Gallatin County, Montana, or which may be ascertained 'from a visual inspection of the land, including ditch and utility easements. Subject to prior mineral, oil and gas, and patent rights and reservations and exceptions, if any; Subject to taxes and other governmental charges and assessments accruing or imposed after the date hereof; Subject to building and use restrictions and zoning ordinances, if any; Subject to the terms, conditions, restrictions and all other disclosures contained in the Declaration of Covenants and Restrictions recorded March 27, 2008 as Document No. 2295422, records of Gallatin County, Montana, and all amendments thereto; Subject to the terms, conditions, restrictions and all other disclosures contained in the Bylaws recorded March 27, 2008, Document No. 2295423, records of Gallatin County, Montana, and all amendments thereto. TOGETHER WITH all tenements, hereditaments and appurtenances thereto, and all reversions and remainders, and all rents, issues and profits thereof, and all right, title and interest of the Grantor therein. TO HAVE AND TO HOLD the said premises, with its appurtenances unto the said Grantee, its heirs and assigns forever. Subject to the exceptions noted above, this warranty deed is given with the usual covenants expressed in X30-11-110, M.C.A. 2523526 Page 2 of 3 09/01/2015 03:31:12 PM DATED this -�L day of August, 2015. PT LAND By: Its: By: Its: STATE OF MONTANA ) ss. County of Gallatin ) On this day of August, 2015, before me, a Notary Public in and for said State, personally appeared Jerry L. Perkins, Partner and P__^ --��, a/k/a o, -U e - Takh• 4a4+—tee—r' of PT LAND, known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same on behalf of the partnership. Notary P&blic for the State of Montana inted Name: ,SUNouHo Creeta Sundling Pahto siding in • • a 9 Notary Public &r."' -01Athe State of Montane commission expires: TAq!G'fof �° A�' = Residing at: " *' SEAL. e= Bozeman, Montana ' 9 •. ..- '-e My commission Expires: February 01, 2016 4 252352 Page 3 of 3 09/01/2015 03:31:12 PM E i DATED this a day of ;August, 2015. 1 PT LAND .Y .I it.9: • r � By. .I �Qits: STATE A614 IA :•&8. J County of On this - ay of Au st, 2015=wnose before me �.taylic in and for said tate, _August, rry L. Perkins, Partner ` °f PT LAND, known to me t e he perses are subscribed to the within instrument d ac ledged to me that they executed the same on behalf of the nership. Printed Name: Residing in my commission 1 \ STATE OF ' J ' Cs A6Z s. County of %�L� �' F`" on this j2kday of August, 2015, before me, a Notary Public in and for said State, pdxsonally appeared -I Paramjeet Takhar,I a/k/a Paramjit S. Takhar, Partner, of PT LAND, known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that thOw executed the same on behalf of the Not zlj� y Publar the State of ;le -/J/, -,l Printed Name: Residing in My commission expires: r-7 f% JEONG Kpp `RH V! 811 NO U811 B C•CAU ORNlA �! Mr Comit, ECOMM.ZREEt sro 9 2PfT 2 //7— Printing: Layout Page Page 1 of 1 http://sve.mt.gov/msi/mtcadastra[4ayout.aspx?96 March 21, 2016 COMPARABLE LAND SALE NO.4 JOKI & ASSOCIATES REAL, ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 Location: 4900 Westlake Road in Bozeman, Montana. This site is located at the intersection of East Valley Center Road and Westlake Road and on the south side of Interstate 90. Site Data: 1. Size : 53.77 acres 2. Zoning: B -2/R-0 Photo Data: 1. Date: November 21, 2013 2. Taken From: North 27th Avenue 3. Facing: West 4. Taken By: J. Michael Joki, MAI, SRA 5. Comp: Boz.30 Current Use: Unimproved d` A - Legal Description: Lot 2A of Minor Subdivision No. 221E, a tract of land located in the SW '/a of Section 26, Township 1 South, Range 5 East, Gallatin County, Montana. Grantor: Valley Center, LLC Grantee: Billings Clinc Recorded Sales Price: $3,866,137 Confirmed Sales Price: $3,866,137 Instrument: Warranty Deed Confirming Party & Phone No.: Listing Agent - Thomas Starner (406)539-0717, Grantor -Brian Cline (406) 581-3812 Recorded: January 6, 2016 Confirmed By J. Michael Joki, MAI, SRA Recording Info.: 2534806 Confirmation Date: March 21, 2016 Financing: Cash to the Seller Property Description: This 53.77 acre site is located on the south side of Valley Center Road and has good exposure to Interstate 90 which is directly to the north. This site is level at road grade with Westlake/Valley Center Road along the north boundary, and North 27th Avenue along the east boundary. This site has relatively level topography and has historically been in an agricultural use. This site is located on the northwestern fringe of the Bozeman city limits and sits just west of a large retail commercial development known as the Gallatin Center and a new Costco store. The listing agent and seller confirmed there was no city sewer service to this land when the seller purchased this property in October, 2013. The seller explained that he reached an agreement with the City of Bozeman for the developer of this land to have the right to install a lift station that can connect to a sewer main which essentiality establishes city sewer service to this land. City water service was already available. Also, when the seller purchased this land it was a mix of R -O and R-3 zoning. The seller petitioned for a zoning change and now 32 acres are zoned B-2 and the remaining +/- 22 acres are zoned R -O. The seller estimated his cost to make these changes at $50,000 for city sewer service and approximately $ 100,000 in engineering, architectural and various city fees for the sewer and zoning changes. All total the expenditure after the 2013 sale was $150,000. This property was listed for sale at $4,700,00 and sold for $3,866,137 after being on the market for 175 days. The seller confirmed on October 31, 2013 he paid $1,345,000 for this land and had $150,000 in expenditures, and then resold this land on January 6, 2016 at $3,866,137. This shows 158.60% appreciation over this 26 month period. Indication At Time Of Sale: $3,866,137 - 53.77 acres = $71,901/Acre American Land Title Company 1800 ,N. Koch Bozeman, MT 59715 Order No: I /6 3 i :- ,:� After recording, return to: Billings Clinic Attn: Legal Department 2800 Tenth Avenue North P.O. Box 37000 Billings, MT 59107-7000 ��1///(((W�����,Fee : $17-00 1 of 1 91/a6t2016 11.29:32MAM Page, Coun Charlotte Mills -Gallatin 11111111i11111III Ilt11111111111111..1111111I11IIi1II111111114111{I1f11111611111111I11 WARRANTY DEED VALLEY CENTER, LLC, a Montana limited liability company (the "Grantor"), with mailing address at P.O. Box 11890m Bozeman, Montana 5971.9, hereby grants to BILLINGS CLINIC (the "Grantee"), with a mailing address of P.O. Box 37000, Billings, Montana 59107-7000, real property in Gallatin County, Montana, described as follows: Lot 2A of Minor Subdivision No. 221E, located in the SW1/4 of Section 26, Township 1 South, Range 5 East P.M.M., Gallatin County Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder, Gallatin County, Montana. To have and to hold unto the Grantee and the Grantee's successors and assigns, forever, subject to the following: (a) Reservations and exceptions in patents from the United States and the State of Montana; (b) Existing easements and rights-of-way of record; (c) Building, use, zoning, sanitary and environmental restrictions and waivers; and (d) Taxes a.nd assessments for 2016 and subsequent years. . Except with reference to the items referred to in subparagraphs (a) through (d), the Grantor provides this warranty deed with the usual covenants expressed in Montana Code Annotated § 30-11- 110. VALLEY CENTER, LLC Date: January 6, 2016 By: Name: a.. r - Title: STATE OF MONTANA ) ss. County of Y llewitem ) This instrument was acknowledged before me on January 2016, by Bryan Klein as �iYlcw ag t, % YYtiul bbfi Valley Center, LLC. SxJNAw DL•','• Cresta Sundlln Pahut Print Name: �A '- Notary Public Notary Public for t e State of Montana � ,AoTAR/,14. for the State of Montana Residing at . Montana ;C4Lj * Reng at: My Commission expires 20 �'9 AL•��,, Bozeman, Montana My Commisslon Expires: February 01, 2016 - http://sve,mt.gov/msl/mteadastra.1/layout.aspx?7 3/18/2014 J. MICHAEL JOIN, MAI, SRA Mate of Montana, Certified. General #152 P.O. Box 281 Helena, MT 59624 APPRAISER'S QUALIFICATIONS EMPLOYMENT: January 1992 to present; Employed by Jori & Associates, a general practice real estate appraisal firm. July 1987 to January 1992; Employed by Peyton & Peyton, Inc., a general practice real estate appraisal firm. June 1986 to September 1986; Employed by Gerald D. Peyton, SRA, Fullerton, CA, as an appraiser trainee. EDUCATION: Bachelor of Science degree in Business Administration, Management major, Montana State University, Bozeman, MT, June, 1987 Specialized Real Estate courses: Market Analysis and Highest and Best Use: Appraisal Institute, May, 2014 Report Writing and Valuation Analysis: Appraisal Institute, October, 2000 Advanced Applications: Appraisal Institute, October, 2000 Advanced Income Capitalization: Appraisal Institute, July, 1999 Condemnation Appraising: Basic Principals and Applications Appraisal Institute, March, 1999 Condemnation Appraising: Advanced Topics and Applications Appraisal Institute, March, 1999 Litigation Skills for the Appraiser: Appraisal Institute, April, 2000 General Applications: Appraisal Institute, June, 1997 Basic Income Capitalization: Appraisal Institute, April, 1997 EDUCATION: (cont.) Basic Valuation Procedures: Appraisal Institute, May, 1992 Residential Valuation: American Institute of Real Estate Appraisers, January, 1988 Real Estate Appraisal Principles: American Institute of Real Estate Appraisers, October, 1987 PROFESSIONAL DESIGNATIONS: MAI, Appraisal Institute, August, 2003 SRA, Appraisal Institute, August, 1992 STATE CERTIFICATION: State of Montana Certified General #152, Issued June, 1999 State of Montana Certified Residential #152, Issued July, 1992 TYPICAL APPRAISALS: Multi family, office, retail, special purpose, subdivisions and vacant land, eminent domain. CONTINUING EDUCATION WITH APPRAISAL INSTITUTE (past 15 years): Analyzing Operating Expenses, March, 2012 USPAP Update Course, January, 2012 Attacking and Defending an Appraisal in Litigation, May, 2011 Discounted Cash Flow Model, October, 2010 USPAP Update Course, February 2010 Appraisal Curriculum Overview, September 2009 Business Practice and Ethics, January 2009 Office Building Valuation, September 2008 USPAP Update Course, January 2008 Effective Appraisal Writing, March 2007 Subdivision Valuation, September 2006 Business Practice and Ethics, March 2006 Scope of Work, September 2005 Evaluating Commercial Construction, September, 2004 Separating Real.and Personal Property, October, 2003 Standards for Federal Land Acquisitions, January 2003 Partial Interest - Undivided, April 2002 Standards of Professional Practice, Part C, January 2002 Partial Interest --Divided, September, 2001 Partial Interest --Undivided, April, 2002 Marshall & Swift Valuation Guides, May, 2000 Data Confirmation Methods Small Hotel/Motel Valuation Eminent Domain and Condemnation Appraising CLIENTS: * Education Chairman, Montana Chapter of the Appraisal Institute, January, 1996 to September, 2000. Appointed to National Educational Programs Committee, Appraisal Institute, 1999 to 2002. * Vice President, Montana Chapter of the Appraisal Institute, 2004 - 2005. * President, Montana Chapter of the Appraisal Institute, 2006-2007 * Finance Officer for Region 1 of the Appraisal Institute, 2009-2013 State of Montana, Department of Transportation U. S. General Services Administration Albertson, Inc. - Montana Fish, Wildlife, and Parks Lolo National Forest WGM Group—Engineering Firm Robert Peccia & Associates—Engineering Firm Montana Tech College Montana Board of Investments City of Helena Lewis and Clark County Helena School District #1 Jefferson County Northwestern Energy - Montana Power Company Southern Montana Electric State of Montana, Department of Military Affairs Louisiana Pacific Corporation Diocese of Helena Toyota Financial Services CB Richard Ellis Wells Fargo Bank US Bank Valley Bank of Helena Rocky Mountain Credit Union Whitefish Credit Union Mountain West Bank Glacier Bank Commonwealth Land Title Insurance Company Prickly Pear Land Trust The Trust for Public Land Numerous private investors and attorneys. State of Montana Business Standards Division Board of Real Estate Appraisers License#: REA-RAG-LIC-152 Status:`' Active Expiration Date: 03/31/2017 JOHN MICHAEL JOKI JOKI AND ASSOCIATES PO BOX 281 HELENA, MT 59624 This certificate verifies licensure as: CERTIFIED GENERAL APPRAISER With endorsements of: REAL ESTATE APPRAISER MENTOR kL"ryEN OR URIFY YOUR LICENSE :VI. blips: ichiz.IIIt,goi!I)O To use license as a Wall License, cut off excess paper and affix the above to wall for display. Remember to renew online if possible. Benefits of renewing online include: The ability to print license(s) the same day as the renewal The ability to print multiple licenses including one for a pocket card if desired The ability to print in color (if you have a color printer) The ability to print additional licenses for no additional charge up to 45 days following the end of the renewal cycle To verify licenses or renew online: https://ebiz.mt.gov/pol AN APPRAISAL OF PARCEL 2 LOCATED AT THE SWC OF 19THAVENUE AND GARFIELD STREET IN BOZEMAN, MONTANA DATE OF VAL U4 TION MARCH 3, 2016 TONY BECKEN-GADDO DO WL HWM BY J. MICHAEL JOKI, MAI, SRA HELENA, MONTANA March 24, 2016 Tony Becken-Gaddo, P.E. Dowl HKM 2090 Stadium Drive Bozeman, Montana 59715 ,T. MICHAELTOKh MAI, SRA P.O. BOX 281 HELENA, MONTANA 59624 Phone (406) 442-2159 FAX (406) 442-6196 RE: An appraisal of the property owned by the State of Montana (Parcel 2) at the SWC of 19th Avenue and Garfield Street in Bozeman, Montana. Dear Mr. Becken-Gaddo: Per our Agreement for Professional Services dated December 8, 2015 I have examined and investigated the above referenced property for the purpose of estimatingits current fair marketvalue before imposition of the sanitary sewer easement, its current fair marketvalue after imposition of the sanitary sewer easement, and for my estimate of compensation due to the property owner. The attached report provides the essential data and detailed reasoning employed in estimating my final value estimates. The report contains 70 pages. The site being valued in this appraisal report is 76.00 acres (see larger parcel discussion on page 24) and supports the Marsh Laboratory and various other buildings/out buildings associated with Montana State University. A sign at the entrance to this property shows this site as the Montana State University - Montana Agricultural Experiment Station. The City of Bozeman intends to impose a 30' sanitary sewer easement along the south property boundary that will total 1.733 acres. An arial view of this proposed easement is included in the addenda of this appraisal report. The values reported are qualified by certain definitions, assumptions and limiting conditions, and certification which are set forth within the attached report. This appraisal report is intended to conform with the Uniform Standards of Professional Appraisal Practice. Based on my analysis, the market value of the subject site before imposition of the sanitary sewer easement, as set forth, documented and qualified in the attached report under conditions prevailing on March 3, 2016 was: THREE MILLION FOUR HUNDRED TWENTY THOUSAND DOLLARS $3,420,000 MEMBER APPRAISAL INSTITUTE Based on my analysis, the market value of the subject site after imposition of the sanitary sewer easement, as set forth, documented and qualified in the attached report under conditions prevailing on March 3, 2016 was: THREE MILLION THREE HUNDRED FORTY-SIX THOUSAND FORTY TWO DOLLARS $3,346,042 * Value of the Remainder, Before: $3,346,042 Value of the Remainder, After: $3,346,042 Depreciation to Current Fair Market Value: $0 Special Benefits: $0 Value of the New Easement Area: $73,958 My total estimation of compensation is: $74,700(R)* I direct your attention to the data, discussions and conclusions which follow. Respectfully submitted, J. Michael Jold, MAI, SRA Montana State Certified General Real Estate Appraiser #152 * Subject to the Hypothetical and Extraordinary Conditions listed on page 8. MEMBER APPRAISAL INSTITUTE TABLE OF CONTENTS INTRODUCTION Page Letter of Transmittal Certification Assumptions and Limiting Conditions 6 Hypothetical Condition 8 Summary of Important Facts and Conclusions 9 Subject Property Photograph 10 DESCRIPTION, ANALYSIS AND CONCLUSION: Definition of Market Value 11 Purpose of Appraisal 11 Intended Use of the Appraisal and Intended Client 12 Scope of Appraisal 12 Summary of the Appraisal Problem 13 Property Rights Appraised 14 Identification of Property and Legal Description 14 History of the Property 15 Regional Map 16 Regional and City Analysis 17 Neighborhood Analysis 22 Plot Plan 24 Property Description Before the Imposition of the Easement 25 Subject Property Photographs 28 Zoning 31 Highest and Best Use Before 32 The Valuation Process 37 Site Valuation 37 Land Sale Location Map 40 Land Sale Adjustment Grid 41 Bracketing the Subject Property 44 Map Depicting the Easement Area 46 Scope of the Project and Its Affect on the Subject Site 47 Subject Property Photographs 49 Identification of the Site, After 52 Highest and Best Use After 53 The Valuation Process 57 J. Michael Joki, MAI, SRA HELENA, MONTANA Site Valuation Land Sale Location Map Land Sale Adjustment Grid Bracketing the Subject Property Depreciation to Current Fair Market Value Recapulation of Compensation ADDENDA: Property Record Card PLI Zoning Zoning Map Exhibit B Project Aerial Map Sample Public Utility Easement Comparable Land Sale Sheets with Photographs Qualifications of the Appraiser State License J. Michael Joki, MAI, SRA HELENA, MONTANA 59 62 63 65 67 69 I CERTIFY THAT 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 are 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 I have no personal interest or bias 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 proceeding acceptance of this assignment. 5. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. This appraisal assignment was not based on a requested minimum valuation, or a specific valuation. 6. My analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with The Uniform Standards of Professional Appraisal Practice, and with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. 7. The use of this report is subject to the requirements of the Appraisal Institute relating to the review by its duly authorized representatives. 8. As of the date of this report, I, J. Michael Joki, have completed the requirements of the continuing education program of the Appraisal Institute. 9. I have made a personal inspection of the property that is the subject of this report and have afforded the owner, or their representative, the opportunity to accompany me on the inspection. 10. I have personally inspected and verified the comparable sales relied upon in making this appraisal. 11. No one provides significant real property appraisal assistance to the person signing this certification. 12. I have the necessary level of knowledge and experience to credibly estimate the value of the subject property, or have taken reasonable steps to achieve such competency and to provide a professional appraisal of the subject property, in accordance with the Uniform Standards of Professional Appraisal Practice. MEMBER APPRAISAL INSTITUTE 13. I am currently licensed in the State of Montana (Certificate #152) as a Certified General Real Estate Appraiser, and hold the MAI and SRA designations conferred by the Appraisal Institute. DATE: March 24, 2016 SIGNATURE: Appraised By: J. Michael Joki, MAI, SRA Certified General #152 MEMBER APPRAISAL INSTITUTE ASSUMPTIONS AND LIMITING CONDITIONS This is to certify that the appraiser in submitting this statement and opinion of value of subject property acted in accordance with and was bound by the following principles, limiting conditions and assumptions. Unauthorized use of this report is set forth below. 1. No responsibility is assumed for matters that are legal in nature nor is any opinion rendered on title of property appraised. 2. Unless otherwise noted, the property has been appraised as though free and clear of all encumbrances. 3. All maps, areas, plans, specifications, and other data furnished your appraiser were assumed to be correct. No survey of the property was made by this firm. Furthermore, all numerical references to linear measurements, area, volume or angular measurements should be assumed to be "more or less" (+/-) and are accurate to a degree consistent with their use for valuation purposes. 4. This appraisal considers only surface rights to the property with consideration of current zoning and land use controls. The estimate of highest and best use will form the basis for the value estimate. This appraisal does not consider mineral, gas, oil or other natural resource rights that may be inherent in the ownership of the property. In this appraisal assignment any potentially hazardous material found on the land which may or may not be present on the property, has not been considered. The appraiser is not qualified to detect such substances. Any interested party is urged to retain an expert in this field if there is any question regarding such potentially hazardous material. If such material or substance is present it could adversely affect the value reported. The appraiser is not a seismologist. This appraisal should not be relied upon as to whether a seismic problem exists, or does not actually exist on the property. The property which is the subject of this appraisal is within a geographic area where earthquakes and other seismic disturbances have previously occurred and where they may occur again. Except as specifically indicated in the report, no seismic or geologic studies have been provided to the appraiser concerning the geologic and/or seismic condition of the property. The appraiser assumes no responsibility for the possible effect on the subject property on seismic activity and/or earthquakes. I have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with any seismic requirements by the City or County. It is possible that a survey of the property could reveal that the property does not meet the required seismic requirements. If so, this fact could have a negative effect upon the value of the property. Since I have no direct evidence relating to this issue, I did not consider possible noncompliance requirements in estimating the value of the property. 7. All data contained in this report and in the appraiser's files, as obtained from other sources, upon which to any degree the opinions and conclusions were based, are considered reliable and believed to be true and correct. However, the appraiser does not assume responsibility for the accuracy of such items that were obtained from other parties. J. Michael Joki, MAI, SRA HELENA, MONTANA 6 8. There shall be no obligation to give testimony or attendance in court by reason of this appraisal with reference to the property in question unless arrangements have been previously made and at an additional fee. 9. Disclosure of the contents of this appraisal report is governed by the by-laws and regulations of the Appraisal Institute. Neither all nor any part of the contents of this report especially the conclusions as to value, the identity of the appraiser, or the firm with which he is connected, or to the MAI and SRA designations, shall be disseminated to the public through advertising media, news media, public relations media, sales media, or any other public means of communication without the prior written consent of the appraiser. 10. J. Michael Joki, MAI, SRA, specifically does not authorize the out -of -context quoting from or partial reprinting of this appraisal report. 11. The liability of J. Michael Joki, MAI, SRA and employees is limited to the client and to the fee collected. Further, there is no accountability, obligations or liability to any third party. If this report is placed in the hands of anyone other than client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraiser assumes no responsibility for any costs incurred to discover or correct any deficiencies of am type present in the property; physically, financially, or of a legal nature. 12. The fee for this appraisal report is for the service rendered and not for time spent on the physical report or for the physical report itself. 13. This appraisal report is prepared for the appraisers' client Dowl HKM. Itis my understanding Dowl HI_M is working in conjunction with the City of Bozeman on this sanitary sewer easement project. No third parties are authorized to rely upon this report without the express written consent of the appraiser. 14. This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an Appraisal Report. As such, it presents discussions of the data, reasoning, and analysis that were used in the appraisal process to develop the appraiser's opinion ofvalue. Supporting documentation concerning the data, reasoning and analysis is contained in the appraiser's file. J. Michael Joki, MAI, SRA HELENA, MONTANA HYPOTHETICAL CONDITION A hypothetical condition is a condition that is contrary to what exists but is supposed for the purpose of the analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the subject property, such as conditions or trends; or about the integrity of data used in an analysis. 1. As of the effective date of this appraisal report the sanitary sewer easement has not been imposed on the subject property and if all parties are in agreement the easement will be imposed at a future date. The value of the subject site after the imposition of the easement is subject to this easement being recorded and imposed on the subject site as explained in this appraisal report. The analysis after the imposition of the easement would not be reasonable not would the value conclusion be creditable if this project is not completed. EXTRAORDINARY ASSUMPTION AND LIMITING CONDITION An extraordinary assumption is an assumption is that is directly related to a specif assignment, which, if found to false, could alter the appraisers opinions or conclusions. Extraordinary assumptions assume as fact otherwise uncertain information about the 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 the analysis. 1. The current zoning for the subject property is PLI ( Public Lands and Institutions). I spoke with Tom Rogers at the City of Bozeman Planning Department concerning the current zoning and the potential of a zoning change if the subject property were in private ownership. I have been asked to estimate the market value of the subject property which is based on the highest and best use of this site, and as explained in the highest and best use analysis the highest and best use of this site is for conversion to a zoning ordinance that would accommodate a commercial or multi family use, but more likely a multi family use. In order to be consistent with the highest and best use analysis sales with the same or a similar use are analyzed in this appraisal report. If the information provided by Tom Rogers is found to be false it could change my conclusion to value in this appraisal report. J. Michael Joki, MAI, SRA HELENA, MONTANA SUMMARY OFIMPORTANTFACTSAND CONCLUSIONS PURPORTED OIFNER: State of Montana LOCATION OFPROPERTY.• This site is located at the SWC of 19th Avenue and Garfield Street in Bozeman, Montana. This site is known as the Montana State University -Montana Agricultural Experiment Station Site. LAND SIZE: As shown on the Montana Cadastral Property Record Card contained in the addenda this site is 88.58 acres. However as discussed on page 25 the larger parcel area is 76.00 acres. PROPOSED SANITARY SEfFER EASEMENT AREA: 1.733 Acres. IMPROVEMENTS: The site is improved with the Marsh Laboratory and various other buildings/out buildings associated with Montana State University. PROPERTY RIGHTS APPRAISED: Fee Simple ZONING: PLI (Public Lands and Institutions) PRESENT USE: Supports various buildings associated with Montana State University- Montana Agricultural Experiment Station. HIGHEST AND BEST USE: Multi- family DATE OF VALUATION. March 3, 2016 CONCLUDED ESTIMATE OF MARKET VALUE BEFORE IMPOSITION OF THE EASEMENT. $3,420,000 CONCLUDED ESTIMATE OF MARKET VALUE AFTER IMPOSITION OF THE EASEMENT. $3,346,042* DEPRECIATION OF CURRENT FAIR MARKET VALUE: $0* TOTAL ESTIMATE OF COMPENSATION: $74,700* *Subject to the Hypothetical and Extraordinary Conditions Listed on page 8. J. Michael Joki, MAI, SRA HELENA, MONTANA 9 PDFView4NET 4.5.0.15 evaluation version SUBJECT PROPERTYPHOTOGRAPH Aerial view of the subject property. The larger parcel area is outlined in green. J. Michael Joki, MAI, SRA HELENA, MONTANA its] DEFINITION OF MARKET VALUE The current fair market value has been developed and refined by the State of Montana and found in state statute MCA70-30-313 and is as follows: "Current fair market value is the price that would be agreed to by a willing and informed seller and buyer, taking into consideration, but not limited to the following factors 1. The highest and best reasonably available use and its value for such use, provided current use may not be presumed to be the highest and best use; 2. The machinery, equipment, and fixtures for the part of the real estate taken; 3. Any other relevant factors as to which evidence is offered." PURPOSE OF THE APPRAISAL The purpose of this appraisal report is to arrive at a supportable estimation of the market value. J. Michael Joki, MAL SRA HELENA, MONTANA 11 INTENDED USE OF THE APPRAISAL AND INTENDED CLIENT It is understood that the intended use of this appraisal report is to assist Dowl HKNI/City of Bozeman in appropriately compensating the property owner for the imposition of a sanitary sewer easement. The client is Dowl HKM, and the intended users of the appraisal report are Dowl HKM and the City of Bozeman, Montana. SCOPE OF THE APPRAISAL The scope of this assignment includes a personal inspection of the subject site, reviewing public record information concerning the site and other properties in the immediate neighborhood. Initially I spoke with Tony Becken-Gaddo from Dowl HKM and he explained the City of Bozeman is making improvements to their utilities and would like to extend a sanitary sewer easement along the south boundary of the subject site. This site needs to be valued so the City of Bozeman can appropriately compensate the State of Montana for the imposition of this sanitary sewer easement. I inspected the subject site on March 3, 2016 unaccompanied. Prior to my inspection I spoke with Tony Becken-Gaddo and he explained Dan Stevenson is the on site facilities manager who may or may not meet me for the inspection. March 3, 2016 is the day I took all photographs of the subject property and I completed my inspection unaccompanied. To the best of my knowledge and as explained by Tony Becken-Gaddo the State of Montana has no issues or concerns with this easement project. The State of Montana will be compensated for the portion of their site that is being imposed with the sanitary sewer easement and will also be compensated for any site improvements being impacted. Real estate agents, local MLS Service, developers and appraisers in Bozeman were interviewed in an attempt to find relevant market data. Market data has been confirmed with the buyer, seller or broker involved in the transaction. All of the comparable sales utilized in this appraisal report are described in the body of the report and in more detail on the sale sheets included in the addenda. All known, available, relevant market data considered to have an impact on the market value of the subject site has been considered. The Scope of Work defines an appraiser's conclusions as to what is deemed necessary to provide J. Michael Joki, MAI, SRA HELENA, MONTANA 12 a creditable appraisal report. The client is defined as Dowl HKM/City of Bozeman. The intended user is the client, and the intended use will be to assist the client in appropriately compensating the property owner for the imposition of a sanitary sewer easement. The following sources provided me data that was used in this appraisal report. • Gallatin County Clerk and Recorder's Office • City of Bozeman Planning Department • Tony Becken-Gaddo, Dowl HKM • Todd Olson, Appraiser • Keith O'Reilly, MAI, Appraiser • Ed Jackson, Appraiser • Jason Leap, Realtor • Jack Cation, Realtor • Donnie Olson, Realtor • Sunny Odegard, Appraiser • Lloyd Mandeville, Realtor • Tom Starner, Realtor • Dennis Erickson, Realtor • Brian Cline, Developer SUMMARY OFAPPRAISAL PROBLEM Tony Becken-Gaddo provided me the maps and aerial photographs of the sanitary sewer easement project which depicts the subject property, Parcel 2, and Parcel 1 directly to the west which is also being impacted by this same project. The sanitary sewer easement is 30' in width and will be imposed along the entire south property boundary and will total 1.733 acres. The State of Montana will be compensated for the loss of their property rights in this permanent easement area. It is Dowl HKM and the City of Bozeman intent to make the property owner whole after this project is completed and the new sanitary sewer service easement is in place. The "before" condition is based on the "as is" condition of the subject property reflecting its current highest and best, market trends and market data available from which to extract an indication of current market value. In the "after" condition the appraisal is based on the hypothetical condition that the proposed sanitary sewer easement is an encumbrance to the real property. In the "after" condition the impact to the property rights and market value are fully identified and incorporated into the analysis. J. Michael Joki, MAI, SRA HELENA, MONTANA 13 PROPERTYRIGHTS APPRAISED This appraisal is made with the understanding and assumption that present ownership of the subject property includes all rights that may be lawfully owned, and is therefore title in fee simple as of March 3, 2016. A fee simple estate is subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. IDENTIFICATION OF PROPER TYAND LEGAL DESCRIPTION The site that is the subject matter of this appraisal report consists of 76.00 acres and is located at the SWC of 19th Avenue and Garfield Street in Bozeman, Montana. The legal description of the land involved is as follows: "Tract D of COS #1243rd, situated in the NE 1/4 of Section 14, To,,vnship 2 South, Range 5 East, PTvR 1, City of Bozeman, Gallatin County, Montana". J. Michael Joki, MAI, SRA HELENA, MONTANA 14 HISTORY OF THE PROPERTY To best of my knowledge the State of Montana has owned this land for 40+ years and this land has supported the Montana State University - Montana Agricultural Experiment Station for most of that time. As I understand this property is not currently listed for sale. J. Michael Joki, MAI, SRA HELENA, MONTANA 15 REGIONAL MAP DELORME C3lansr Slv����tt tnhrent ;•SII C3foctw. '� 60l Si— alaJar Pfu•i/f !allspelb `. - �e adl f IGreat Falls ammeter \ _ Missoula/ - ,2 Helena Street Atlas USA -f,, 2005 -Shaunavon I I I 2 _Roc Blvonn ieo Ft Rese rvalion� ,-TLe Istown t�'ortp�r f I nos Bozeman. 03 � salmon ,\ Gt—hopp— G3ract" _- _—_—_.__ _—_—_—_—_—_ 310 � I 19A ,a r 1 Worland 1 zos • - _ Cyt .� exburg I c! Per Data use subject to license. nil © 2004 DeLorrne. Street Atlas USA® 2005. 0 16 32 48 64 80 vwvw.delorme.com MN (0.0" W) Data Zoom 8-2 J. Michael Joki, MAI, SRA HELENA, MONTANA 16 REGIONAL AND CITYANALYSIS Bozeman is the county seat of Gallatin County and is one of 56 counties in the State of Montana. Gallatin County is located in a mountainous area of Montana north of the Montana/Wyoming border and Yellowstone National Park. Bozeman primarily lies on the south side of Interstate 90 and is located approximately 140 miles west of Billings, Montana and 80 miles east of Butte, Montana. Gallatin County has grown faster than any other county in the State of Montana over the past decade according to the Census Bureau. Gallatin County includes almost 2,500 square miles of mountainous lands that offer a variety of topography and climate. Nearly half of Gallatin County is under public ownership by the Gallatin National Forest, State of Montana, Bureau of Land Management or the National Park Service. Forces Influencing Property Values The value of real estate is influenced by the interaction of four major forces. Social considerations, economic considerations, government and environmental considerations. The four forces are discussed as follows: Social Considerations Social forces are exerted largely by population characteristics, including population growth, density, and age distribution. According to the U. S. Census Bureau the population of the City of Bozeman increased from 27,509 in 2000 to 37,280 as of April, 2010 and increase of nearly 9,800 people. This represents an increase in population of approximately 35.5% over this 10 year period, or an average rate of growth of about 3.55%/year. From April, 2010 to April, 2012 the population increased from 37,280 to 38,695, an increase of nearly 1,415 people which equated to a growth of 3.8% over this time frame. Gallatin County's population increased from 67,831 in 2000 to 89,513 in 2010 or approximately 21,700 people. This represents an increase in population of approximately 32% over a 10 year period or an average growth rate of 3.2%/year. Between April, 2010 and April, 2012 the population increased from 89,513 to 92,614 people or 3,101 people which equates to a growth rate of about 3.5% over this time period. Comparatively, the State of Montana grew from 989,417 people in April 2010 to 1,005,140 people in 2012 or 15,724 people which equates to a growth rate of 1.6% over that time frame. In addition to population growth the City of Bozeman continues to see growth in its geographic size. In 1990 the City of Bozeman was approximately 6,420 acres (± 10 square miles) and by the end of 2009 it had expanded to 12,300 acres (±19.25 square miles) resulting in an increase of ±92% over this 19 year period. This growth was to accommodate the increasing population which required new land for residential, commercial and industrial development. This growth significantly slowed in 2009 and 2010 which was being seen all throughout J. Michael Joki, MAI, SRA HELENA, MONTANA 17 this region as the national economic recession took effect. Bozeman has a significantly lower home ownership rate than most other communities in the county primarily due to the student body of Montana State University. Bozeman also has a smaller average household size and a smaller portion of families than other areas of Gallatin County. Bozeman has an average household size of 2.27 people while the average household size for Gallatin County is 2.49 people. Just over half of the Bozeman households are families compared to ±63% countywide. The population of Bozeman is considerably younger than Gallatin County as a whole, and even more so, in comparison to the State of Montana. Again this emphasizes the significance of Montana State University being located in Bozeman. Bozeman and Gallatin County has transformed over the past decade from a primarily agricultural based community to a tourism related community. Bozeman and Gallatin County offers a high quality of life due to its low crime rate, offering of many cultural experiences, the presence of Montana State University and its education offerings. An abundance of outdoor activities that include excellent downhill snow skiing, world class fly fishing rivers, streams and access to numerous state and federally owned lands are all nearby. Economic Considerations Bozeman, like many communities in Montana experienced significant growth in population and economy for a number of years. This area was affected by the national recession just like many other areas in the country however new growth and development has begun again and the outlook for Bozeman and the vicinity is quit positive based on a number of factors. • County seat of Gallatin County. • Wide range of skills in the labor force. • Home of Montana State University. • Well located in southwestern Montana. • Numerous recreational opportunities Bozeman is somewhat unique when compared to other communities in Montana because there are few employers who employ a large amount of the population. Missoula, Montana, as an example was very dependent on the lumber and timber industry and Butte, Montana had always relied heavily on the mining industry. When those industries slowed those communities were very heavily impacted. The primary employer in Bozeman is Montana State University. Other major sectors of the economy that provide employment are construction, local and state government, manufacturing, technology, agricultural and retail service. Montana State University currently employs about 3,500 people as permanent faculty/staff and they also employ over 2,000 students in part time work. In the fall of 2,013 the student enrollment at MSU was slightly over 15,000 J. Michael Joki, MAI, SRA HELENA, MONTANA IIN people which certainly has a significant affect on the local economy. Other major employers in Gallatin County include the State of Montana, Gallatin County, the City of Bozeman, Bozeman Deaconess Hospital, Right Now Technologies. With such a diverse employment base the local economy tends to be sheltered from a downturn in any of the Country's key employment industries. In 2010 Bozeman was declared as the most expensive place to live in Montana based upon a report by Propera Business Network. This report stated that Bozeman's 2009 cost of living was 4.4% above the national average. The other Montana cities that showed an overall cost of living above the national average were Missoula at 1.8% and Kalispell at 1.5%. Residential rent levels in Gallatin County have remained stable primarily due to the presence of Montana State University. Rents in this community will periodically show a slight decline however they tend to stabilize or even increase rather quickly due to the continued growth of Montana State University. Overall the economic growth has been much stronger in Bozeman and Gallatin County than what is being seen statewide. Historically the sectors in Bozeman and Gallatin County that show the most substantial growth are agricultural services, construction, manufacturing, finance, insurance, real estate and lodging. Currently the unemployment rate in Montana is 6.4% and Gallatin County recorded a slightly lower unemployment rate at 5.8%. Gallatin County's labor force is currently estimated at 52,070 employees, the thud largest labor force in Montana's 56 counties. Over the past ±10 years residential building permit activity in the City of Bozeman was on the rise and reached its peak in 2005 and then began to decline over the next 5 years, and most significantly in 2008 and 2009. Residential building permits began to increase again in 2010 and have been on a steady incline. Bozeman has been experiencing new growth in several areas of town but no area has provided as much commercial real estate development at the 19th Avenue corridor. Recent stores and restaurants developed along 19th Avenue include Sportsman's Warehouse, Lowes, IHOP, Bed Bath and Beyond, Staples, World Market and REI. Most recently a new Safeway grocery store (±58,000 SF) was completed in December, 2011 and a Kohls department store (±55,300 SF) was completed in October, 2011. The City of Bozeman facilities over the past 5 years have seen significant development and/or renovation which includes the fire stations, police station, waste water treatment facilities, the completion of a downtown parking garage, City of Bozeman Library, construction of the Gallatin County Detention Center, an expansion of the landfill building etc. Montana State University has also seen significant expansion and renovation which include a significant remodel of the football stadium, addition of the Molecular Biology Center, renovations to the Health and Physical Education Center, addition of the Black Box Theater, renovation of Gaines Hall etc. Tourism brings a significant number of visitors to the Bozeman area. Yellowstone National Park, the first national park in the United States, is located approximately 65 miles south of Bozeman. Big Sky Ski Resort is J. Michael Joki, MAI, SRA HELENA, MONTANA 19 located approximately 45 miles south of Bozeman and has recently been listed as the seventh best ski resort in the United States. This ski area averages over 300" of annual snowfall with skiing available November through April. The Yellowstone Club lies adjacent to Big Sky Ski Resort and is an exclusive vacation/residential development that includes both private skiing and golfing. This exclusive, private development had filed for bankruptcy in 2008 and in 2010 was purchased by Cross Harbor Capital and for several years saw significant decline in sales and values. However the private development has begun to rebound again as sales are starting to climb again. Other ski resorts in Gallatin County include Moonlight Basin which is also adjacent to Big Sky and Bridger Bowl which lies approximately 15 miles to the north of Bozeman. Environmental Considerations Environmental and physical forces, both natural and man made, can influence property values. These forces include climatic conditions, topography and natural barriers, and transportation systems. Bozeman's climate clearly reflects its mountain valley location. Bozeman truly has four seasons with its short summers being pleasant which are typically characterized by warm to hot days and cool nights. The average high temperature in the summer is in the upper 80"s and the average low in the winter is the mid to lower 30"s. Spring tends to come late in the Gallatin Valley as 1/3 of its annual precipitation ±19" falls during May and June. The average annual snowfall in Bozeman is ±72" and the average length of the growing season is about 107 days. The climate of the county varies according to elevation but is generally characterized by relatively cold winters and warm summers. Snow removal is a common operating cost that will affect real estate in the winter months. In contrast air conditioning costs are less during the fairly temperate summer months however heating bills can be quite high during the cold winter months. Bozeman is located on the south side of Interstate 90. Access to the south towards Yellowstone Park is via U.S. Highway 91. There are numerous other state highways and Gallatin County maintained roads that provide access throughout this region. Commercial air service, truck and rail transportation are considered to be adequate. Gallatin Field which is located in the adjacent community of Belgrade is the second busiest airport in the state and provides air service for this area. Governmental Considerations The City of Bozeman is a City Commission/City Manager form of government with an elected municipal judge. There are five commissioners elected with no party affiliation and are elected to a four year term which are overlapping. The City Commissioner elections are held every two years and the terms of the commissioners are staggered and the candidate who receives the most votes in an election becomes the mayor the last two years of their term. J. Michael Joki, MAI, SRA HELENA, MONTANA 20 The City of Bozeman has approximately 40 police officers and the fire department has approximately 18 firefighters plus the Fire Chief, Deputy Chief/Marshall, and seven captains. There are three fire stations in the City of Bozeman and overall the fire and police protection services are considered to be good. The Department of Planning and Community Development processes applications for new development in die city limits. This department enforces the zoning regulations within the city limits of Bozeman. Gallatin County administers all zoning for properties outside the city limits and within the "zoning donut". The Gallatin County Comprehensive Plan encourages development near the existing city limits and/or services and discourages development in more remote locations. In general the planning and zoning regulations in this area are considered stringent. Conclusion Bozeman and Gallatin County has population and overall growth trends that are continuing upward. This area offers a wide variety of outdoor recreational opportunities, cultural resources, tourism, and coupled with the presence of Montana State University this area is poised for continued growth. Bozeman has a young and very well educated work force and coupled with its diverse economy the general outlook for Bozeman, Belgrade and the surrounding small communities is good. Overall the real estate market in Bozeman is strong. 2013 was the fust year of strong market conditions after 5+ recession years. Residential and commercial activity has increased significantly. Residential apartment occupancy is more or less at 100% , and commercial lease rates and commercial property values have been increasing as well. J. Michael Joki, MAI, SRA HELENA, MONTANA 0041 NEIGHBORHOOD DATA & ANALYSIS The subject property is located near the Southern edge of the Bozeman city limits and more particularly just south of the College Street and 19th Avenue intersection. 19th Avenue is a significant north/south arterial street and College Streetis a significant east/westarterialstreet and their intersection forms the northwest corner of the Montana State University campus. North of College Street is primarily developed with residential properties. Historically this has been a highly sought after neighborhood because of its proximity to the Montana State University Campus. Because of its proximity to campus many of the residential properties in this neighborhood are used as rentals by the university students. South of Campus and particularly along 19th Avenue there has been new residential and commercial development. The Bozeman city Emits are continually expanding to the South and around the University campus. Some of Bozemads newer residential subdivisions, with some having homes in the upper end of the single family residential price range for this community, are in this area. This neighborhood has good access to Main Street (downtown district) via 19th Avenue. Interstate 90 can easily be accessed off of Main Street from several roads. Main Street transitions into Huffine Lane as it leads west out of Bozeman and gives direct access to the Four Corners/Belgrade area. As Bozeman continues to expand new residential development, including multi family development, is 1 expected to continue in this area and particularly on land that is in direct proximity to Montana State University. J The demand for housing of college students is currently high which is expected to continue in this neighborhood I until more housing is developed. J Elementary schools, middle school and Bozeman High School are all located nearby. The Gallatin Valley Mall is located on the north side of Huffine Lane and approximately 2 miles to the northwest. City J. Michael Joki, MAI, SRA HELENA, MONTANA 22 water and sewer service is readily available throughout this neighborhood, and natural gas and electrical service are provided throughout the area by Northwestern Energy. I expect this neighborhood will continue to see new development because of the shortage of rental housing. Historically rental properties, either single family or multi family properties, have been in high demand in this neighborhood because of its proximity to the Montana State University Campus. Currently this shortage of housing is being compounded by the growth in student population at the University and overall growth in Bozeman. In my opinion market conditions are expected to remain strong in this neighborhood and most likely market values will appreciate accordingly. This trend is consistent with the trend other neighborhoods are experiencing in the Bozeman city limits. J. Michael Joki, MAI, SRA HELENA, MONTANA 23 PLOT PLAN J. Michael Joki, MAI, SRA HELENA, MONTANA 24 CERTIFICATE OF SURVEY No. 1243 A BEING TRACTS A AND 'C OF CID.S No, 1243 AND A PORTION OF THE S. 1/2 N.E. 1/4 SECTION 14 SITUATED IN THE N.E. 1/4 AND N.W. 1/4 SEC. 14, AND N.E. 1/4 SEC. 15, T.2S., R.5E. P.M.M. CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA FOR: M.S.U. 9 THE ENDOWMENT a ALUMNI FOUNDATION TO RELOCATE COMMON BOUNDARIES NOVEMBER, 1985 BY: SANDERSON /STEWART/ GASTON 'ENGINEERING INC. BOZEMAN, MONTANA SCALE ["=400 400 0 4Do Boo A• R• N IN Cor. a 15 IN e9•.exi' W1 x.W C>. sec M --.-I fN, Moll In Pewn.nl (2 .MGI -.... .o r U.S. HWY- 191 .,.,.,, a,�...... �. .,. at91.m r,.c, ue.� TRACT A -I I 116.3769 Ars. NOTES: I. a Set 5/8"e 18" Rebs, /Cop 2. • Fn4. 5/B. IB"Ret4r ./C.p 3.s Fn4. C4 1 Nwr R/W MmWWmenf 4. Selis Of 8101ing - E411 Line Sertlan 14' N V. Ur. s.- N Po,m.n re., It/. Nnhep Pound Or S1 (ap' wle.l N 89'4223" E 1256.68' S 89.41'54" E CO �i 2 e. 5 1'P1ee<E. -- w.c.rao-------- S 00.10'01" W N00.10'01"E 3o ria ey,...nt Fn, 7 so9•asla r 33000 330.00 wm Cee.. sv..tJ as.af- --�__ TRACT C -I 1�0 6548. Acs '1130 219.61' 1' W TRACT a S84. 11'04'W_ ��mmr4.42"3`"'N 374.52 C.0.5. Ny. 1243 409.19' O c. - - - -•6trR FIeNIna cec 7e S89.50'30"W 1345.66" 589.53'58'W 1345.90' sou. 1. s m were Inc ter, 4 77.40 s•c '• - N STATf OM' -ANA. I M s Ia•Is'.i t more' - o,gmel `Act Sheaf I of 2 TRACT D Description 88.5767 Aa. N A tract of land being Tract. A and C of Certificate of Survey No. 1243 and a portion of the S.1,N_E. 4 of Section 14, all situated in the N.E.h. and N.w.4 of Section 14 and the N.E.} of Section 15, w T,2S.,'R.SE „ P.M.M., City of Bozeman, Gallatin County, Montana, and being further described.a; follows: O Beginning •t . point which la N89'41'54•w a distance of 115.00 feet from the N.E. corner of Section o 14, T.2S., R.SE., P.X.M., said point also being on the north line of said Section 14 and the westerly 8 right -of -ray line of South 19th Avenue; thence Econ said true point of beginning along said right -of- !� way SOO-39'20•w a distance of 2656.96 feet to a point on the east -west mid-section line of said See- v1 Ica ,S_ 7_ CIE. - ti 14; thence along said line N89'59'54•W a distance of 2513.63 feet to the center of Section UI s•c'•• N89'S9'S4"W ih�nce along the north -south mid-section line N00'09'31"E a distance of 1335.10 feet to the C -N 1/16 2513,63' ry+n . 99. �� LLCay In corner of action 14,. thence along the ,north 1/16 line of said Section 14 S89'S3'S8'w a distance of c.o.s. roe mrd 1345.90 feet to the N_N. 1/16 corner.of Section 14; tence continuing along the N. 1/16 line S89'50'3a"w a distance of 1345.66 feet to the N. 1/16" corner common to Sections 14 and 15, said point I also being the S.E. ..roar of Tract B of Certificate of Survey No. 1243 --ee along th. Bas! and i northerly line ofsaid Tract B N00'03'25'E a distance of 609.10 feat, 584 -11'04'w a distance of 409,39 teet, SOG-22-23'w a distance of 219.99 feet, S76'03'59 -W a distance of 1130.70 .feet, S61'21'39'w a i 1 distant. of 374.52 feet, S84'42'35"w a distance of 539.66 feet and H83.51'30"w a distance of 77.40 feet to a point on the north -south mid -...tion line of S.etion 151 thence along said line WOO.09-13-S a di of 1234,14 feat to a polo[ on the southerly [igbl-oL-ray line oC D.S. RSghray No. 1911 thence along said line 589'41'18 •E a distance of 2.100,34 feet, N89'35 V 9'E a distance of 1302.79 tees and alor4-a curve to the left with a radlp. of 1960.00 feet a'di.t..0 of 401.97 E4e! to a point on the north line of Section 14; thence along said line N89'42'23"E a d1stanpe of 1256.68 fast to the N.4 corner of Section 14 which is also a point on the rearerly right -of -ray line of the Farmers Canal; thence along said right -of -ray S00'10'Ol'w a distant. of 370.00 feel, 589'41'S4'E a distance of 30,00 feet end mo0'10'0 .3 a aistenee of 330.00 East to a point on the north line of Section 14; then - along said line S89'41.54'E a distance of 2506.49 feet to the point of beginning. Said tract being 292.6084 acre. along with and subject to any existing easements. Sheaf I of 2 PROPERTYDESCRIPTIONBEFORE THE IMPOSITION OF THE EASEMENT Site Si-ze. As shown on the map on the facing page the subject site is comprised of land on the south side of Garfield Street as well as the land on the north side of Garfield Street which is outlined in blue. All together this totals 88.58 acres. However, to meet the test of the larger parcel theory a property must have unity of ownership, contiguity and unity of use to establish the larger parcel area. All of this land is currently owned by the State of Montana and it all supports the Montana State University- Agricultural Experiment Station. However this land no longer has contiguity as Garfield Street is now an improved street which physically separates this land. So by definition the larger parcel area would not include the land that is north of Garfield Street. Also, the land north of Garfield Street is a relatively long and narrow parcel of land and with its location at the intersection of 19th Avenue and College Street it may very well have a different use, potentially a higher and better use, than the land south of Garfield Street. Therefore, I have determined the larger parcel area to be the +/- 76.00 acres that is south of Garfield Street as outlined in yellow. Also, as shown on the aerial photograph in the addenda, this is the only portion of the subject site being impacted by the sanitary sewer easement protect. Shape: Rectangular. Topograply: Most of the land is level at street grade. Two irrigation canals or seasonal creeks pass through this land in a general north/south direction and there appears to be areas of high water table. Soil Conditions: Soil conditions are unknown and no soils test was provided to your appraiser. Easements: No title policy was provided to your appraiser. A title policy should be used for final determination of easements and encroachments. Access: This site can be accessed from Garfield Street near its NWC or 19th Avenue J. Michael Joki, MAI, SRA HELENA, MONTANA 25 near its SWC. Across 19th Avenue from the SEC is Lincoln Street which is a city street. Lincoln Street appears to extend west off of 19th Avenue onto the subject site. However, Lincoln Street is not a city street where it passes through the subject site, and the pavement only extends to the Marsh Laboratory. West of the Marsh Laboratory this road is a dirt/gravel road that parallels the south boundary. From the southwest corner to the northwest corner there is a gravel road that overlaps the boundary of Parcel 2 and Parcel 1 that provides access to Garfield Street. Currently all of the roads on the subject site are privately maintained roads. Utilities: All utilities are readily available as the majority of the land surrounding the subject property is annexed into the Bozeman city limits and utilities have been extended throughout most of this neighborhood. FznrctionalAdequacy: This site has served as the Montana State University -Montana Agricultural Experiment Station site for many years. Over time the Montana State University Campus has expanded, and land to the north, west and south has become developed and annexed into the Bozeman city limits. As discussed in the following highest and best use analysis the current use of this land is not the highest and best use of this land even though it is very likely this land will stay in State of Montana/Montana State University ownership. Flood Plain: The subject property is located in Flood Zone Z which is an area of minimal flooding. This information was extracted from FEMA's National Flood Hazard Layer Website. The Community Panel No. is 30031 C 0816 D. This map is dated September 2, 2011. Nuisances orHa�Zafds: Land directly to the west is also owned by Montana State University/ State of Montana. Directly to the north is a relatively new commercial development between Garfield and College Streets, and north of College Street there is a mix of older residential and commercial uses. Land directly across and east of 19th Avenue is the Montana State University Campus. Land to the south on either side of 19th Avenue is a mix of campus, multi family, single family and commercial uses. These surrounding uses are typical to this neighborhood as this is one of the areas in Bozeman that is rapidly expanding. None of the J. Michael Joki, MAI, SRA HELENA, MONTANA `I surrounding uses adversely affect the market value of the subject property. Site and Building Improvements The primary building on the subject site is the Marsh Laboratory which is located near the SEC and close to the intersection of 19th Avenue and Lincoln Street. There are various other buildings (shops, garages, outbuildings) that are associated with Montana State University. The subject site was not staked at the time of my site visit but it does not appear any of the building improvements will be impacted by the proposed sanitary sewer easement project. Any site improvements that are impacted by the sanitary sewer easement project are fiirther discussed on page 47 in the Scope of the Project section of this appraisal report. J. Michael Joki, MAI, SRA HELENA, MONTANA 27 SUBJECT PROPERTYPHOTOGRAPHS Photograph taken from the southwest corner and looking north on the gravel road towards Garfield Street. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. Photograph taken from the northwest corner at Garfield Street and looking southeast at the subject property. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 28 SUBJECT PROPERTYPHOTOGRAPHS Photograph shows some of the high ground water near the center of the site. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. Looking east on Garfield Street towards 19th Ave/MSU and the lighted intersection. Subject property is on the right. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 29 SUBJECT PROPERTYPHOTOGRAPHS Photograph taken from the southeast corner of the subject site and looking north. 19th Avenue is shown on the right. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. Photograph taken from Garfield Street and looking south at the subject property. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA oil] ZONING I spoke with Tom Rogers at the City of Bozeman Planning Department and he confirmed that the subject site is currently zoned PLI (Public Lands and Institutions). This district is intended to provide for and apply to public and quasi public institutional uses and lands, and recreational and public service activities for the general benefits of the citizens of the city. The typical uses in a PLI zoning district are open areas, parks, museums, historic or cultural exhibits, water conservation, flood control, drainage area, natural conservation and preservation area. Institutions including schools, colleges and universities, hospitals, rehabilitation centers, etc. are permitted. Public buildings, cemeteries, memorial stadia are permitted as well. Recreational uses including golf courses, tennis courses, softball fields, swimming pools etc. are also a common use. Currently the subject property in all respects is compatible with the existing zoning. Tom Rogers and I discussed if the subject property transferred to private ownership ( non public agencies) and it was not going to be utilized for the general benefit of the public then a zone change would be required. The existing zoning districts in the immediate vicinity of the subject property are BP (Business Park), B2 (Community Business), R4 (Residential High Density) and RO ( Residential Office). Most likely a zoning change would be based on one of these existing uses in the immediate vicinity. It will be discussed in the following highest and best use analysis that the historical use of this site which supports the Marsh Laboratory and is known as the Montana State University -Montana Agricultural Experiment Station is not necessarily the highest and best use of this property. J. Michael Joki, MAI, SRA HELENA, MONTANA 31 HIGHEST AND BEST USE BEFORE "The reasonably probable and legal use of vacant land or an improved property that 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. Alternatively, the probable use of land or improved property - specific with respect to user and timing of the use - that is adequately supported and results in the highest present value."' The definition above applies to the highest and best use of vacant land or improved property. It is to be recognized that in cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. Quite often in estimating the highest and best use of land, the appraiser is controlled by governmental regulations. These controls are generally zoning ordinance, parking requirements and building codes. Also, in the estimate of highest and best use, one must recognize the attitude of typical investors in the marketplace. Real estate will usually fall into certain definite development patterns, and their uses can be classified as: residential, agricultural, recreational, industrial, commercial and public use. In valuing the highest and best use of the land both as if vacant and improved, the following criteria must be met. 1) legally permissible, 2) physically possible, 3) financially feasible, and 4) maximally productive. HIGHESTAND BEST USE OF THE PROPERTYAS VACANT Legally Permissible The subject property is currently zoned PLI ( Public Lands and Institution District) which allows for a wide range of uses. A number of the allowed uses were previously described in the zoning section and a copy of the zoning ordnance is included in the addenda. The aforementioned uses are allowed as long as the property is being used for the benefit of the public. Because I have been asked to estimate the current market value of the subject property, which is based on its highest and best use, I will not value this property as public land and institutions ground. Not only is the PLI not the highest and best use of this property but PLI zoned land sales are not available as PLI land does not typically sell on the open market. I have been asked to estimate the current market value of the subject property and it will be shown in the following sales analysis that the historical use of this site as the Montana State University -Montana I The Dictionary of Real Estate Appraisal, 5th ed., s.v. "highest and best use". J. Michael Joki, MAI, SRA HELENA, MONTANA 32 Agricultural Experiment Station site with PLI zoning is no longer the highest and best use of this property. I spoke at length with Tom Rogers from the City of Bozeman Planning Department about the subjects location and surrounding uses and because of these characteristics several of the development classifications can reasonably be eliminated from consideration. The first check when requesting a zoning change is to consider the 20 Year Land Use plan for a property and determine if these are any zoning overlays. In the 20 Year Land Use Plan for the City of Bozeman this site is still ear marked to have PLI zoning and they do not expect a change in use because this site is being used by Montana State University. Also, there are no zoning overlays on this land. However the planning department has to entertain amendments to their growth policy on a regular basis. I first considered the reasonableness of this property being developed with single family residential home sites with the R1 or R2 zoning ordinance. These zoning ordinance certainly exist within in this neighborhood however it is more likely a multi family, office or other commercial use is more probable at this location which is generally at the intersection of 19th Avenue and College Street at the northwestern edge of the Montana State University Campus. There are other areas in and around this neighborhood that are much better suited for a residential use and therefore I have eliminated residential use from consideration. Agricultural use can also reasonably be eliminated from consideration merely based upon the size and location of this site. Even though this site currently supports the Montana State University -Montana Agricultural Experiment Station this is for educational purposes associated with the University. The City of Bozeman has public tennis courts, softball fields, swimming pools and other recreational facilities dispersed thoughout the city limits and reasonably this use can also be eliminated from consideration. This location is not suited for industrial use (light or heavy) as land values in this neighborhood are to high to justify an industrial use at this location. Therefore industrial uses can also be eliminated from consideration. This leaves commercial use and multi family use as the most reasonable and legally permissible uses of this land as if it were vacant. Both commercial and multi family uses are prevalent throughout this neighborhood and in the immediate vicinity of the subject property. I found through my research it is likely a commercial use (i.e. office or retail) would have a relatively long absorption period at this location and at the outset it appears a multi family use with an R-3 or R-4 zoning district would be better suited for this location. It is no secret that Montana State University is continually expanding, as well as its student body, and finding housing in direct proximity to the campus has been a challenge for many years. A multi family use at this location would certainly help this seemingly never ending need. J. Michael Joki, MAI, SRA HELENA, MONTANA 33 Physically Possible Properties in this neighborhood are improvedwith a mix of residential and commercialuses. Most sites are improved to the maximum density permitted by zoning while considering parking regulations and other restrictions. The subject property is 76.00 acres ( larger parcel area) and has significant frontage on 19th Avenue and Garfield Street. This site has generally level topography and is rectangdar in its shape which eliminates higher development cost often associated with sloping, irregular shaped sites. This property can be accessed from its SEC off of 19th Avenue or its NWC from Garfield Street. All public utilities are readily available. Soil conditions in this neighborhood have proven adequate for development of all property types. Based upon the physical characteristics of the subject property and the existing properties in this neighborhood, the most reasonable and legally permissible uses of the subject property (commercial or multi family use) would be physically possible. Financially Feasible Bozeman is experiencing growth again, particularly in the past 4 or 5 years, and much of dze new growth is residential development. In terms of residential development this site is very well located near the intersection of 19th Avenue and College Street and at the northwestern edge of the Montana State University Campus. From this location there is good access to Bozeman's downtown district and the significant retail development along North 19th Avenue. Many nearby streets are significant traffic streets that provide good access throughout Bozeman. Properties in this neighborhood historically are very marketable and well received in this community. To develop the subject site into numerous commercial lots for either a retail or office use may prove to be financially difficult. I have spoken with a number of real estate professionals in this community and they were generally of the opinion that a commercial use at this location wether it be retail or office use would most likely have a longer absorption period than a multi family use. There are a number of established retail and office uses surrounding the Montana State University Campus that have existed for many years. There is newer retail and office use directly north and northwest of the subject property however this land has been slower to develop because the demand for these uses is not as strong at this location as compared to other areas of Bozeman. Because there is such high demand for high density residential development, i.e. apartments, in Bozeman, let alone the subjects location in direct proximity to campus, most likely a residential development could absorb the development costs and impact fees more quickly and prove to be a feasible use of this site. J. Michael Joki, MAI, SRA HELENA, MONTANA 34 Maximally Productive The use that conforms with the requirements of the fttst three tests andwillprovide maximum productivity of the subject site, as if vacant, is most likely for developmentwith a high density residential use. In concluding to the highest and best use of a property the physical use, the timing of the use and the user's/most probable buyers needs to be defined. It is my opinion the maximally productive use of this site is for development with a high density residential use that would be consistent with the nearby uses in this neighborhood. In terms of the most likely buyer and user of this site there are two options. An end-user sale is a sale to a buyer who intends to immediately utilize the property to its highest and best use. A speculative - investor sale is the sale to a buyer who purchases the property with no intention of immediately utilizing the property to its highest and best use. It is my opinion the subject site would be purchased as an end user sale and would be immediately utilized to its highest and best use as a high density residential development assuming the appropriate changes could be made to its current zoning. HIGHEST AND BEST USE OF THE PROPER TYAS IMPROVED Legally Permissible The subject property appears to meet all PLI zoning ordinance requirements. It was confirmed with Tom Rogers that the current use, Montana State University -Montana Agricultural Experiment Station, is a legally permitted use in the PLI zoning ordinance. Therefore the current use of the subject property is a legally permissible use as it conforms to the current zoning ordinance. Physically Possible The current use of the subject property which is associated with Montana State University is obviously physically possible. This site serves an educational purpose for the University and as I understand has served well with this use for many years. J. Michael Joki, MAI, SRA HELENA, MONTANA 35 Financially Feasible The subject site currently supports the Marsh Laboratory and various other buildings that are primarily located along the south boundary. For the most part the northern 75% of this site is unimproved but serves as the Montana Agricultural Experiment Station site for Montana State University. Even though this land is being utilized for educational purposes it is obviously under utilized and not being used to its highest and best use. I have spoken with several realtors, real estate appraisers and developers who are very familiar with this neighborhood and undeniably if a zoning change could be made a high density residential development at this location would be well received. To correctly test the financial feasibility of this property "as improved" the market rent, operating expenses and an appropriate capitalization rate should be determined for the existing buildings so an indication of value via the Income Approach can be compared to the vacant land value. However, as previously explained there are few building improvements on this property and the only building that would command a significant rent is the Marsh Laboratory. As shown in the following land sales analysis this property "as if' vacant is worth far more than it could ever be as currently improved with its few building improvements. Maximally Productive Ultimately the highest and best use of this property is no longer in support of the Montana Agricultural Experiment Station as associated with Montana State University. A higher and better use would be to raze the existing building improvements and make way for new development that would most likely be a high density residential use. J. Michael Joki, MAI, SRA HELENA, MONTANA 36 PROPERTY VALUATION, BEFORE In the Sales Comparison Approach an indication of value is derived by comparing the relative utility and desirability of the subject site with comparable properties that have recently sold or are currently listed for sale. Basic to this approach is the principle of substitution which states that "when a property is replaceable in the market, its value tends to be set by the price required to acquire an equally desirable substitute property." In this appraisal report the land is valued however the improvements are not included therefore the Cost and Income Approaches to value are not applicable. SITE VAL U4 TION The method employed to value the site as if vacant and available for sale is the Sales Comparison Approach. An investigation of the market revealed several sales and listings indicative of what a well- informed buyer or seller would consider in forming an opinion of value. Four sales were chosen as being most appropriate to compare against the subject site. Descriptive data and photographs of these comparables are contained in the addenda. Adjustments All comparables differ somewhat from each other, and from the subject in various ways. The usual differences are for cash equivalency, market conditions, location, and a number of physical characteristics. Many of these factors, in varying degrees, are applicable in the appraisal of the subject property. When dissimilarities are found in comparable properties, they are adjusted for by adding to the comparable price when the dissimilar factor is inferior to the same factor found in the subject property. Likewise, a minus adjustment should be made when the comparable sale has a factor which is superior to that found in the subject property. The sale properties, then, are adjusted to the subject property. J. Michael Joki, MAI, SRA HELENA, MONTANA 37 However, in the market it is often difficult and sometimes impossible to accurately isolate a given factor. In short, one very seldom finds sales which are identical in all respects but one, and thus is able to prove conclusively the value, or lack of it, for any one factor due to a difference in sale price. Often, there are plus and minus factors which offset each other. Thus, the use of subjective judgment, to some degree, may be exercised. Nevertheless, the differences in values are real and adjustments based on as much fact as can be found, will be made. Then, the appraiser may call upon his experience to make subjective judgments. Property Rights Each of the sales involve fee simple property rights. As a result, no property rights adjustments were warranted. Financing.• All Sales were cash to the seller or on terms considered cash equivalent, and no adjustments were required. Conditions of Sale: No non -market conditions motivating the buyer or seller involved in the transactions are known, therefore no adjustments are required. Expenditures Immediately After Sale: None of the sales required expenditures immediately after sale, and therefore no adjustments are required. If expenditures were verified they were typically associated with annexation into the city limits. Market Conditions: A market conditions (time adjustment) is required to bring all comparable sale properties up to the effective date of the appraisal report which is March 3, 2016. Bozeman was experiencing significant decline J. Michael Joki, MAI, SRA HELENA, MONTANA in real estate values when the local and national recession was in affect. Since 2011 real estate values have rebounded in this market, and have become particularly strong since 2013, with new projects being developed again. Demand for unimproved land is now out weighing its supply. I will utilize four comparables in the following analysis with two sales closing in 2012, one sale closing in 2015, and one sale closing in 2016. Each of the developers, real estate agents and real estate appraisers I interviewed in this market were of the opinion market conditions are improving and they are currently strong in Bozeman with more demand than supply of vacant land. The persons I interviewed were consistently of the opinion that value of unimproved sites, particularly those with a highest and best use of multi family, have conservatively appreciated 20% since 2013 and at least 30% since 2012. To provide some support for the information given to me in the aforementioned interviews I have completed a paired sales analysis of two sales I have in file that are best suited for multi family development. The first property sold on February 11, 2011 at $1.15/SF and the other sale sold on June 16, 2014 at $1.95/SF. Both of these sales are very similar in terms of there location and physical aspects, and making the assumption there would be no adjustment necessary for the difference in size, this paired sales analysis indicates values have increased 69.57% over the 40 months between these sales which equates to an appreciation rate of 1.74% per month or 20.87% per year. This at least provides some market data support for the information provided to me during my market interviews. I have considered the information given to me during my interviews and the paired sales analysis and will adjust sale No. 1 and No. 2 upward by 30% for market conditions. Comparable No. 3 and No 4 sold within 6 months of the effective date of this appraisal report and in my opinion are indicative of current market value and will not be adjusted for market conditions. Remaining Adjustments: The remaining adjustments will be explained in a qualitative analysis which is an effective technique that recognizes the inefficiencies of a real estate market and the difficulty in expressing the adjustments with mathematical precision. The adjustments included in the qualitative analysis are location, size, access, topography, utilities, shape and use. The land sales adjustment grid can be seen on the following page. J. Michael Joki, MAI, SRA HELENA, MONTANA 39 LAND SALE LOCATIONMAP J. Michael Joki, MAI, SRA HELENA, MONTANA 40 Street Atlas USA41)2005 Data use subject to license. Mi © 2004 DeLorme. StreetAtlas USAO 2005. 0 +/ +/z % 1 1'/4 woAv.delorme.com MN (0.0° W) Data Zoom 12-1 LAND SALE ADJUSTMENT GRID J. Michael Joki, MAI, SRA HELENA, MONTANA 41 SUBJECT SALE 1 SALE 2 - SALE 3 SALE 4 Sale Price $2,900,000 $648,233 $3,564,000 $3,866,137 Size (acre) 76.00 78.00 20.00 37.05 53.77 Price/AC $37,179 $32,412 $96,194 $71,901 Date of Sale 8/10/12 6/27/12 9/10/15 1/6/16 Market Adjustment Plus 30% Plus 30% -0- -0- Adjusted Price - $3,770,000 $842,703 $3,564,000 $3,866,137 Adjusted Price/AC $48,333 $42,135 $96,194 $71,901 Location SWC of 19th Ave and Garfield Street 19th Ave and Graf Street 19th Ave and Southbridge Dr. 11th Ave and Baxter Lane, just south of I-90 Valley Center and West lake Rd, just south of I-90 Comparability ' Similar Similar Superior Superior Size (acre) 76.00 78.00 20.00 37.05 53.77 Comparability Similar Superior Similar Similar Access" 19th Avenue & Garfield Street 19th Avenue 19th Avenue Baxter Lane & 11th Avenue Valley Center & North 27th Ave. Comparability Similar Similar Similar Similar Topography Level Level Level Level Level Comparability Similar Similar Similar Similar Shape Rectangular Rectangular Rectangular Slightly Irregular Slightly Irregular Comparability Similar Similar Similar Similar Utilities Adjacent to site North of site Adjacent to site On site On site Comparability Slightly Inferior Similar Superior Superior Highest & Best Use Multi Family Residential Subdivision or Multi Family Residential Subdivision Commercial Commercial or Residential Comparability Similar Similar Superior Superior Overall Comparability Similar Similar Superior Superior J. Michael Joki, MAI, SRA HELENA, MONTANA 41 Sales Analysis: The subject site is a rectangular shape site that is located at the southwest corner of 19th Avenue and Garfield Street. This 76 acre site supports the Marsh Laboratory and is commonly known as the Montana State University -Montana Agricultural Experiment Station site. This site has level topography and can be accessed from 19th Avenue near its southeast corner or Garfield Street near its northwest corner. City services are adjacent to this site as much of the surrounding land is already developed. The subject site is currently zoned PLI however as previously discussed in the highest and best use analysis this site is best suited for a multi family development. Sale No. 1 is a 78.00 acre site that sold on August 10, 2012 for $2,900,000 or $37,179/AC. After adjusting for market conditions this comparable indicates a price of $48,333/AC. Comparable No. 1 is located directly south of the subject property on the east side of 19th Avenue. Comparable No.1 has similar access, topography, shape and use and its only inferior aspect is the city utilities were located north of this site at the time of sale. Otherwise, Comparable No. 1 is considered to be quite similar when compared to the subject property. Comparable No. 2 is a 20.00 acre site that sold on June 27, 2012 at $648,233 or $ 32,412/AC. After adjusting for market conditions this comparable indicates a price of $42,135/AC. Comparable No. 2 is also located just south of the subject property and on the west side of 19th Avenue. Comparable No. 2 has similar access, topography, shape, utilities and use. The only superior aspect of comparable No. 2 is its smaller size otherwise this sale is also considered to be quite similar when compared to the subject property. Comparable No. 3 is a 37.05 acre site that sold on September 10, 2015 at $3,564,000 or $96,194/AC. Comparable No. 3 is located at the intersection of Baxter Lane and 11th Avenue and just south of Interstate 90 which is clearly a superior location. Comparable No. 3 is similar in size, access, topography and shape. Comparable No 3 has superior utilities and is best suited for a commercial use, an coupled with its superior location, is considered to be superior when compares to the subject property. Comparable No. 4 is a 53.77 acre site that sold on January 6, 2016 at $3,866,137 or $71,901 /AC. Comparable No. 4 is located at the intersection of Valley Center Road and North 27th Avenue and just south of Interstate 90 which is clearly a superior location. Comparable No. 4 is similar in size, access, topography and J. Michael Joki, MAI, SRA HELENA, MONTANA 43 shape. However, Comparable No. 4 has superior utilities and is best suited for a mixed use development with commercial and residential. These features coupled with this sales superior location makes Comparable No. 4 superior to the subject property. The value indications derived from the comparables axe reconciled into a single value indication by arranging the four comparables in an array relative to the subject. BRACKETING THE SUBIECT PROPERTY Comparable Adjusted Price Per AC Overall Comparability 2 $42,135 Similar 1 $48,333 Similar Subject Property 4 $71,901 Superior 3 $96,194 Superior A shown in the chart above clearly the most similar comparables are Sale No. 1 and Sale No. 2. Both of these sales are considered to be very similar when compared to the subject property with the only discerning difference being the size of Comparable No.2 at 20 acres. After analyzing the size and the other physical characteristics it appears that site size does not affect market value as much as location and zoning which ultimately dictate the highest and best use of the sites. Therefore, little emphasis is being given to the difference in size of the sales when compared to the subject property. Not only do Comparable No.1 and No. 2 have the same use but they are both located just south of the subject property. These sales show a value range of $42,135 to $48,333/AC. Comparable No. 3 and No. 4 are both very recent sales of land that is best suited for commercial development. Sale No. 3 and No. 4 are similar to the subject property in many of their physical aspects however their superior location in proximity to Interstate 90 and their commercial zoning/use makes these sales superior J. Michael Joki, MAI, SRA HELENA, MONTANA 44 to the subject property. Considering this information and giving most emphasis to Comparable No. 1 and No. 2 it is my opinion the subject site has a current market value of $45,000/AC. 76.00 Acres x $45,000/AC = $3,420,000 J. Michael Joki, MAI, SRA HELENA, MONTANA 45 MAP DEPICTING THE EASEMENT AREA J. Michael Joki, MAI, SRA HELENA, MONTANA 46 EXHIBIT A Z TRACT D OF CERTIFICATE OF SURVEY NO. 1243A, Z n Eo SITUATED IN THE NEIA OF SECTION 14, TOWNSHIP 2 SOUTH, RANGE 5 EAST, z 0 co TRACT p: ;- PRINCIPAL MERIDIAN, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA. TRACT D U— CERTIFICATE OF SURVEY LU 0 BASIS OF BEARING co � NO. 1243A CERTIFICATE OF SURVEY LL Z BEARINGS FOR THIS PLAT ARE GRID BASED ON 0 THE MONTANA STATE PLANE COORDINATE SYSTEM NO. 1243A Cl/4 FOUND ALUMINUM CAP LL 0) 0 W 0 Z W Q' W ow — — — — — — — — — — — 645 05' N88055'37"W 645.04' N88*39'01"W 64D.00- '100 00 --",Oo -- -- — — — — — — — — — — — — — ----- I -- — — — — — — — — — — — — — — — — — — — — — — — — —-2--- ----------- 6475Nr — --------------- — — — — — — — — — — — — — — — — — — — — — — — — — — — ERMINATION TRACT B CERTIFICATE OF SURVEY NO. 1245 "PARCEL 2" ---q8-8—'5-5'-31'W �257218- EASEMENT AREA EAST - WEST CENTER OF SECTION LINE 75,497 SQUARE FEET 1.733 ACRES w z —j Z 100 0 50 1 ot I I m" IN FEET ) w w z z w w TRACT D "PARCEL CERTIFICATE OF SURVEY 2" EASEMENT AREA NO, 1243A POINT OF BEGINNING 0 Ulu) u - N89*12'52"W 635.00' 75,497 SQUARE FEET 0 0 ul 1.733 ACRES — — — — — — — — — N88026'13"W 596.53' z vv — — — — — — — — — — — — — — —U — — — --- — — — — — — — — — — ofu'o'-" . . . �96 . . . ----- w — — ----------------- =2T . . . . — — — — — — — — — — — — — — — — — — — — — — --- OT �7N (w) LU N88055'31"W 2572.18' — — — 5rFIF I Fl/4 z14 13 TRACT B 1 N60*36'59"W CERTIFICATE OF SURVEY TRACT B-1 I 1 63.12' FOUND NO. 1245CERTIFICATE OF SURVEY 1 i I . M.D.T. NO. 1245A MONUMENJ 100 0 50 1 ot I I m" IN FEET ) SCOPE OF THE PROJECTAND ITS AFFECT ON THE SUBJECT SITE The intent of this project is to impose a utility easement (sewer main easement) along the south boundary of the subject property. As shown on the facing page the proposed sewer easement is 1.733 acres and crosses the entire south boundary beginning at 19th Avenue and extends to the southwest corner. In the addenda is a description of the land that will be imposed with the sewer main easement. Also aerial photographs provided by DOWL HKM that depict the sewer main easement as it crosses through the subject property and Parcel 1, which is also part of this same project, are included in the addenda as well. This appraisal assignment address a partial acquisition of the subject property which I assume is regulated by the State Rule. The following calculations and conclusions are made under the assumption that the State Rule is applicable to this appraisal assignment. Reportedly the current owner of this property, State of Montana, has no issues or concerns with this project. Tony Becken-Gaddo informed the facilities manager, Dan Stevenson, that I would be on site on March 3, 2016 to complete my property inspection and take my photographs. Mr. Stevenson did not meet me for my inspection. At the time of my site inspection the subject property was not staked so the exact boundary of the proposed easement was not located. Prior to my site inspection I spoke with Tony Becken-Gaddo and he explained any fencing that may be impacted by this project would be repaired as part of the project. The only asphalt and concrete that might be impacted by the project is near the southeast corner at the access from 19th Avenue. It does not appear the concrete or asphalt will be impacted, however, as Tony Becken-Gaddo and I discussed, if there is any impact qto these items they will also be repaired or replaced as part of the project. It does not appear any trees on this site will be impacted by the project. The one item that will most likely be impacted by the project are the metal gates which I have addressed as a Cost to Cure item later in this report. J. Michael Joki, MAI, SRA HELENA, MONTANA 47 Value oftheEasement Tony Becken-Gaddo provided me a copy of a sample public utility easement that is similar to the one that will be imposed on the subject site. Since this new easement will be for a sewer main it is my opinion the property owner will loose most of their property rights or 95% of their rights in the easement area once it is in place. The proposed sewer main easement will be 1.733 acres. Land value was estimated earlier in this appraisal report at $45,000/AC. Therefore, the value of the easement area is as follows: $45,000/AC x 1.73 AC x 95% _ $73,958 Value of the Remainder, Before The value of the remainder before is the value of the larger parcel before less the value of the easement as part of the whole before, which calculates as follows: Total Value Before:. $3,420,000 Total Value of the Easement: 73,958 Value of the Remainder, Before: $3,346,042 J. Michael Joki, MAI, SRA HELENA, MONTANA M SUBJECT PROPERTYPHOTOGRAPHS Photograph taken near the southwest corner and looking east along the easement area. March 3, 2016 by J. Michael Joki, MAI, SRA. Photograph taken near the center of the site and looking east along the easement area and towards 19th Ave. Match 3, 2016 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 49 SUBJECT PROPERTYPHOTOGRAPHS Metal gate near the southwest corner that will be impacted by the project. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. Metal gate near the southeast corner that will be impacted by the project. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 50 SUBJECT PROPERTYPHOTOGRAPHS Photograph taken near Marsh Laboratory and looking east towards 19th Avenue. Photograph taken March 3, 2016 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 51 IDENTIFICATION OF THE SITE, AFTER The use of die subject site is essentially the same in the after situation, best suited for multi family development, except a sewer main easement will be imposed along the entire south boundary that is 1.73 acres in size. SITE DESCRIPTIONAFTER IMPOSITION OF THE EASEMENT After this project is completed the larger parcel area remains at 76.00 acres. Anew easement for a sewer main of 1.73 acres will be imposed along the south property boundary. The property owner will lose most of their property rights within this new easement area and will have very little or 5% of their rights remaining once the sewer main easement is in place. After the project is completed the size, access, topography, shape and use will all remain the same. J. Michael Joki. MAI, SRA HELENA, MONTANA 52 HIGHEST AND BEST USE AFTER "The reasonably probable and legal use of vacant land or an improved property that 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. Alternatively, the probable use of land or improved property - specific with respect to user and timing of the use - that is adequately supported and results in the highest present value."' The definition above applies to the highest and best use of vacant land or improved property. It is to be recognized that in cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. Quite often in estimating the highest and best use of land, the appraiser is controlled by governmental regulations. These controls are generally zoning ordinance, parking requirements and building codes. Also, in the estimate of highest and best use, one must recognize the attitude of typical investors in the marketplace. Real estate will usually fall into certain definite development patterns, and their uses can be classified as: residential, agricultural, recreational, industrial, commercial and public use. In valuing the highest and best use of the land both as if vacant and improved, the following criteria must be met. 1) legally permissible, 2) physically possible, 3) financially feasible, and 4) maximally productive. z The Dictionmy of Real Estate Appraisal, 5th ed., s. v. "highest and best use". J. Michael Joki, MAI, SRA HELENA, MONTANA 53 HIGHEST AND BEST USE OF THE PROPERTYAS VACANT Legally Permissible The subject property is currently zoned PLI ( Public Lands and Institution District) which allows for a wide range of uses. A number of the allowed uses were previously described in the zoning section and a copy of the zoning ordnance is included in the addenda. The aforementioned uses are allowed as long as the property is being used for the benefit of the public. Because I have been asked to estimate the current market value of the subject property, which is based on its highest and best use, I will not value this property as public land and institutions ground. Not only is the PLI not the highest and best use of this property but PLI zoned land sales are not available as PLI land does not typically sell on the open market. I have been asked to estimate the current market value of the subject property and it will be shown in the following sales analysis that the historical use of this site as the Montana State University -Montana Agricultural Experiment Station site with PLI zoning is no longer the highest and best use of this property. I spoke at length with Tom Rogers from the City of Bozeman Planning Department about the subjects location and surrounding uses and because of these characteristics several of the development classifications can reasonably be eliminated from consideration. The first check when requesting a zoning change is to consider the 20 Year Land Use plan for a property and determine if these are any zoning overlays. In the 20 Year Land Use Plan for the City of Bozeman this site is still ear marked to have PLI zoning and they do not expect a change in use because this site is being used by Montana State University. Also, there are no zoning overlays on this land. However the planning department has to entertain amendments to their growth policy on a regular basis. I first considered the reasonable uses of this property being developed with single family residential home sites with the R1 or R2 zoning ordinance. These zoning ordinance certainly exist within in this neighborhood however it is more likely a multi family, office or other commercial use is more probable at this location which is generally at the intersection of 19th Avenue and College Street at the northwestern edge of the Montana State University Campus. There are other areas in and around this neighborhood that are much better suited for a residential use and therefore I have eliminated residential use from consideration. Agricultural use can also reasonably be eliminated from consideration merely based upon the size and J. Michael Joki, MAI, SRA HELENA, MONTANA 54 location of this site. Even though this site currently supports the Montana State University -Montana Agricultural Experiment Station this is for educational purposes associated with the University. The City of Bozeman has public tennis courts, softball fields, swimming pools and other recreational facilities dispersed thoughout the city limits and reasonably this use can also be eliminated from consideration. This location is not suited for industrial use (light or heavy) as land values in this neighborhood are to high to justify an industrial use at this location. Therefore industrial uses can also be eliminated from consideration. This leaves commercial use and multi family use as the most reasonable and legally permissible uses of this land as if it were vacant. Both commercial and multi family uses are prevalent throughout this neighborhood and in the immediate vicinity of the subject property. I found through my research it is likely a commercial use (i.e. office or retail) would have a relatively long absorption period at this location and at the outset it appears a multi family use with an R-3 or R-4 zoning district would be better suited for this location. It is no secret that Montana State University is continually expanding, as well as its student body, and finding housing in direct proximity to the campus has been a challenge for many years. A multi family use at this location would certainly help this seemingly never ending need. Physically Possible Properties in this neighborhood are improved with a mix of residential and commercialuses. Most sites are improved to the maximum density permitted by zoning while considering parldng regulations and other restrictions. The subject property is 76.00 acres ( larger parcel area) and has significant frontage on 19th Avenue and Garfield Street. This site has generally level topography and is rectangular in its shape which eliminates higher development cost often associated with sloping, irregular shaped sites. This property can be accessed from its SEC off of 19th Avenue or its NWC from Garfield Street. All public utilities are readily available. Soil conditions in this neighborhood have proven adequate for development of all property types. Based upon the physical characteristics of the subject property and the existing properties in this neighborhood, the most reasonable and legally permissible uses of the subject property (commercial or multi family use) would be physically possible. J. Michael Joki, MAI, SRA HELENA, MONTANA 401 Financially Feasible Bozeman is experiencing growth again, particularly in the past 4 or 5 years, and much of the new growth is residential development. In terms of residential development this site is very well located near the intersection of 19th Avenue and College Street and at the northwestern edge of the Montana State University Campus. From this location there is good access to Bozeman's downtown district and the significant retail development along North 19th Avenue. Many nearby streets are significant traffic streets that provide good access throughout Bozeman. Properties in this neighborhood historically are very marketable and well received in this community. To develop the subject site into numerous commercial lots for either a retail or office use may prove to be financially difficult. I have spoken with a number of real estate professionals in this community and they were generally of the opinion that a commercial use at this location wether it be retail or office use would most likely have a longer absorption period than a multi family use. There are a number of established retail and office uses surrounding the Montana State University Campus that have existed for many years. There is newer retail and office use directly north and northwest of the subject property however this land has been slower to develop because the demand for these uses is not as strong at this location as compared to other areas of Bozeman. Because there is such high demand for high density residential development, i.e. apartments, in Bozeman, let alone the subjects location in direct proximity to campus, most likely a residential development could absorb the development costs and impact fees more quickly and prove to be a feasible use of this site. Maximally Productive The use that conforms with the requirements of the first three tests and will provide maximum productivity of the subject site, as if vacant, is most likely for development with a high density residential use. In concluding to the highest and best use of a property the physical use, the timing of the use and the user's/most probable buyers needs to be defined. It is my opinion the maximally productive use of this site is for development with a high density residential use that would be consistent with the nearby uses in this neighborhood. In terms of the most likely buyer and user of this site there are two options. An end-user sale is a sale to a buyer who intends to immediately utilize the property to its highest and best use. A speculative - investor sale is the sale to a buyer who purchases the property with no intention of immediately utilizing the property to its highest and best use. It is my opinion the subject site would be purchased as an end user sale and would be immediately utilized to its highest and best use as a high density residential development assuming the appropriate changes could be made to its current zoning. J. Michael Joki, MAI, SRA HELENA, MONTANA 56 HIGHEST AND BEST USE OF THE PROPERTYAS IMPROVED Legally Permissible The subject property appears to meet all PLI zoning ordinance requirements. It was confirmed with Tom Rogers that the current use, Montana State University -Montana Agricultural Experiment Station, is a legally permitted use in the PLI zoning ordinance. Therefore the current use of the subject property is a legally permissible use as it conforms to the current zoning ordinance. Physically Possible The current use of the subject property which is associated with Montana State University is obviously physically possible. This site serves an educational purpose for the University and as I understand has served well with this use for many years. Financially Feasible The subject site currently supports the Marsh Laboratory and various other buildings that are primarily located along the south boundary. For the most part the northern 75% of this site is unimproved but serves as the Montana Agricultural Experiment Station site for Montana State University. Even though this land is being utilized for educational purposes it is obviously under utilized and not being used to its highest and best use. I have spoken with several realtors, real estate appraisers and developers who are very familiar with this neighborhood and undeniably if a zoning change could be made a high density residential development at this location would be well received. To correctly test the financial feasibility of this property "as improved" the market rent, operating expenses and an appropriate capitalization rate should be determined for the existing buildings so an indication of value via the Income Approach can be compared to the vacant land value. However, as previously explained there are few building improvements on this property and the only building that would command a significant rent is the Marsh Laboratory. As shown in the following land sales analysis this property "as if' vacant is worth far more than it could ever be as currently improved with its few building J. Michael Joki, MAL SRA HELENA, MONTANA 57 improvements. Maximally Productive Ultimately the highest and best use of this property is no longer in support of the Montana Agricultural Experiment Station as associated with Montana State University. A higher and better use would be to raze the existing building improvements and make way for new development that would most likely be a high density residential use. J. Michael Joki, MAI, SRA HELENA, MONTANA 58 PROPERTY VALUATION, AFTER In the Sales Comparison Approach an indication of value is derived by comparing the relative utility and desirability of the subject site with comparable properties that have recently sold or are currently listed for sale. Basic to this approach is the principle of substitution which states that "when a property is replaceable in the market, its value tends to be set by the price required to acquire an equally desirable substitute property." In this appraisal report the land is valued however the improvements are not included therefore the Cost and Income Approaches to value are not applicable. SITE VALUATION The method employed to value the site as if vacant and available for sale is the Sales Comparison Approach. An investigation of the market revealed several sales and listings indicative of what a well-informed buyer or seller would consider in forming an opinion of value. Four sales were chosen as being most appropriate to compare against the subject site. Descriptive data and photographs of these comparables are contained in the addenda. Adjustments All comparables differ somewhat from each other, and from the subject in various ways. The usual differences are for cash equivalency, market conditions, location, and a number of physical characteristics. Many of these factors, in varying degrees, are applicable in the appraisal of the subject property. When dissimilarities are found in comparable properties, they are adjusted for by adding to the comparable price when the dissimilar factor is inferior to the same factor found in the subject property. Likewise, a minus adjustment should be made when the comparable sale has a factor which is superior to that found in the subject property. The sale properties, then, are adjusted to the subject property. However, in the marketitis often difficult and sometimes impossible to accurately isolate a given factor. J. Michael Joki, MAL SRA HELENA, MONTANA =1 In short, one very seldom finds sales which are identical in all respects but one, and thus is able to prove conclusively the value, or lack of it, for any one factor due to a difference in sale price. Often, there are plus and minus factors which offset each other. Thus, the use of subjective judgment, to some degree, may be exercised. Nevertheless, the differences in values are real and adjustments based on as much fact as can be found, will be made. Then, the appraiser may call upon his experience to make subjective judgments. Property Rights Each of the sales involve fee simple property rights. As a result, no property rights adjustments were warranted. Financing.• All Sales were cash to the seller or on terms considered cash equivalent, and no adjustments were required. Conditions ofSale: No non -market conditions motivating the buyer or seller involved in the transactions are known, therefore no adjustments are required. Expenditures Immediately After Sale: None of the sales required expenditures immediately after sale, and therefore no adjustments are required. If expenditures were verified they were typically associated with annexation into the city limits. Market Conditions: A market conditions (time adjustment) is required to bring all comparable sale properties up to the effective date of the appraisal report which is March 3, 2016. Bozeman was experiencing significant decline in real estate values when the local and national recession was in affect. Since 2011 real estate values have J. Michael Joki, MAI, SRA HELENA, MONTANA rebounded in this market, and have become particularly strong since 2013, with new projects being developed again. Demand for unimproved land is now out weighing its supply. I will utilize four comparables in the following analysis with two sales closing in 2012, one sale closing in 2015, and one sale closing in 2016. Each of the developers, real estate agents and real estate appraisers I interviewed in this market were of the opinion market conditions are improving and they are currently strong in Bozeman with more demand than supply of vacant land. The persons I interviewed were consistently of the opinion that value of unimproved sites, particularly those with a highest and best use of multi family, have conservatively appreciated 20% since 2013 and at least 30% since 2012. To provide some support for the information given to me in the aforementioned interviews I have completed a paired sales analysis of two sales I have in file that are best suited for multi family development. The first property sold on February 11, 2011 at $1.15/SF and the other sale sold on June 16, 2014 at $1.95/SF. Both of these sales are very similar in terms of there location and physical aspects, and making the assumption there would be no adjustment necessary for the difference in size, this paired sales analysis indicates values have increased 69.57% over the 40 months between these sales which equates to an appreciation rate of 1.74% per month or 20.87% per year. This at least provides some market data support for the information provided to me during my market interviews. I have considered the information given to me during my interviews and the paired sales analysis and will adjust sale No. 1 and No. 2 upward by 30% for market conditions. Comparable No. 3 and No 4 sold within 6 months of the effective date of this appraisal report and in my opinion are indicative of current market value and will not be adjusted for market conditions. Remaining Adjustmen ts: The remaining adjustments will be explained in a qualitative analysis which is an effective technique that recognizes the inefficiencies of a real estate market and the difficulty in expressing the adjustments with mathematical precision. The adjustments included in the qualitative analysis are location, size, access, topography, utilities, shape and use. The land sales adjustment grid can be seen on the following page. J. Michael Joki, MAI, SRA HELENA, MONTANA 61 LAND SALE LOCATIONMAP J. Michael Joki, MAI, SRA HELENA, MONTANA m. F6I►T7gggam Street Atlas USAO 2005 t ° � STI I_ `� L.�--•�: f , tory i J f: 305 I Sale No. 4 t — —" w ins � F EgGAIJYQR RD d t E ....Catro 306 Sale No. 3 K 4 Is HUFFINE LN HUFMF I— tS — — 84 191 'i j yam+- ....�_.� I�.� ` ,.`• � �, ' 1 � so an 84 , 19109 iJnigey Pa ° �� 1,, �• 191 � f F Subject Properiy i�l s •\ 7 i � 1 x Sale No.2 { : S J � } Data use subject to license. MI © 2004 DeLorme. StreetAtlas USAO 2005. p ,/ Y2 % 1 1'� wwAv.delorme.com MN (0.0° W) Data Zoom 12-1 LAND SALE LOCATTONMAP J. Michael Joki, MAI, SRA HELENA, MONTANA 62 LAND SALE ADJUSTMENT GRID J. Michael Joki, MAI, SRA HELENA, MONTANA 63 SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 Sale Price $2,900,000 $648,233 $3,564,000 $3,866,137 Size (acre) 76.00 78.00 20.00 37.05 53.77 Price/AC $37,179 $32,413 $96,194 $71,901 Date of Sale 8/10/12 6/27/12 9/10/15 1/6/16 Market Adjustment Plus 30% Plus 30% -0- -0- Adjusted Price $3,770,000 $842,703 $3,564,000 $3,866,137 Adjusted Price/AC $48,333 $42,135 $96,194 $71,901 Location SWC of 19th Ave and Garfield Street 19th Ave and Graf Street 19th Ave and Southbridge Dr. 11th Ave and Baxter Lane, just south of I-90 Valley Center and West lake Rd, just south of I-90 Comparability Similar Similar Superior Superior Size (acre) 76.00 78.00 20.00 37.05 53.77 Comparability Similar Superior Similar Similar Access 19th Avenue & Garfield Street 19th Avenue 19th Avenue Baxter Lane & 11th Avenue Valley Center & North 27th Ave. Comparability Similar Similar Similar Similar Topography '' Level Level Level Level Level Comparability Similar Similar Similar Similar Shape Rectangular Rectangular Rectangular Slightly Irregular Slightly Irregular Comparability - Similar Similar Similar Similar Utilities Adjacent to site North of site Adjacent to site On site On site Comparability Slightly Inferior Similar Superior Superior Highest & Best Use Multi Family Residential Subdivision or Multi Family Residential Subdivision Commercial Commercial or Residential Comparability Similar Similar Superior Superior Overall Comparability' Similar Similar Superior Superior J. Michael Joki, MAI, SRA HELENA, MONTANA 63 J. Michael Joki, MAI, SRA HELENA, MONTANA 64 Sales Analysis: The subject site is a rectangular shape site that is located at the southwest corner of 19th Avenue and Garfield Street. This 76 acre site supports the Marsh Laboratory and is commonly known as the Montana State University -Montana Agricultural Experiment Station site. This site has level topography and can be accessed from 19th Avenue near its southeast corner or Garfield Street near its northwest corner. City services are adjacent to this site as much of the surrounding land is already developed. The subject site is currently zoned PLI however as previously discussed in the highest and best use analysis this site is best suited for a multi family development. Sale No. 1 is a 78.00 acre site that sold on August 10, 2012 for $2,900,000 or $37,179/AC. After adjusting for market conditions this comparable indicates a price of $48,333/AC. Comparable No. 1 is located directly south of the subject property on the east side of 19th Avenue. Comparable No.1 has similar access, topography, shape and use and its only inferior aspect is the city utilities were located north of this site at the time of sale. Otherwise, Comparable No. 1 is considered to be quite similar when compared to the subject property. Comparable No. 2 is a 20.00 acre site that sold on June 27, 2012 at $648,233 or $ 32,412/AC. After adjusting for market conditions this comparable indicates a price of $42,135/AC. Comparable No. 2 is also located just south of the subject property and on the west side of 19th Avenue. Comparable No. 2 has similar access, topography, shape, utilities and use. The only superior aspect of comparable No. 2 is its smaller size otherwise this sale is also considered to be quite similar when compared to the subject property. Comparable No. 3 is a 37.05 acre site that sold on September 10, 2015 at $3,564,000 or $96,194/AC. Comparable No. 3 is located at the intersection of Baxter Lane and 11th Avenue and just south of Interstate 90 which is clearly a superior location. Comparable No. 3 is similar in size, access, topography and shape. Comparable No 3 has superior utilities and is best suited for a commercial use, an coupled with its superior location, is considered to be superior when compares to the subject property. Comparable No. 4 is a 53.77 acre site that sold on January 6, 2016 at $3,866,137 or $71,901/AC. Comparable No. 4 is located at the intersection of Valley Center Road and North 27th Avenue and just south J. Michael Joki, MAI, SRA HELENA, MONTANA of Interstate 90 which is clearly a superior location. Comparable No. 4 is similar in size, access, topography and shape. However, Comparable No. 4 has superior utilities and is best suited for a mixed use development with commercial and residential. These features coupled with this sales superior location makes Comparable No. 4 superior to the subject property. The value indications derived from the comparables are reconciled into a single value indication by arranging the four comparables in an array relative to the subject. BRACWETING THE SUBTECT PROPERTY Comparable Adjusted Price Per AC Overall Comparability 2 $42,135 Similar 1 $48,333 Similar Subject Property 4 $71,901 Superior 3 $96,194 Superior A shown in the chart above clearly the most similar comparables are Sale No. 1 and Sale No. 2. Both of these sales are considered to be very similar when compared to the subject property with the only discerning difference being the size of Comparable No.2 at 20 acres. After analyzing the size and the other physical characteristics it appears that site size does not affect market value as much as location and zoning which ultimately dictate the highest and best use of the sites. Therefore, little emphasis is being given to the difference in size of the sales when compared to the subject property. Not only do Comparable No.1 and No. 2 have the same use but they are both located just south of the subject property. These sales show a value range of $42,135 to $48,333/AC. Comparable No. 3 and No. 4 are both very recent sales of land that is best suited for commercial J. Michael Joki, MAI, SRA HELENA, MONTANA M development. Sale No. 3 and No. 4 are similar to the subject property in many of their physical aspects however their superior location in proximity to Interstate 90 and their commercial zoning/use makes these sales superior to the subject property. Considering this information and giving most emphasis to Comparable No. 1 and No. 2 it is my opinion the subject site has a current market value of $45,000/AC. After this project is complete 1.73 acres will be encumbered with the sewer main easement. It is my opinion the property owner will have little or 5% of their property rights remaining in the easement area. Therefore, land value after the project is as follows. 74.27/AC x $45,000/AC = $3,342,150 New Easement Area 1.73 AC x $45,000/AC x 5% =$3,892 Total = $3,346,042 J. Michael Joki, MAI, SRA HELENA, MONTANA 67 DEPRECIATION TO CURRENT FAIR MARKET VALUE Depreciation to current fair market value is calculated by subtracting the estimated market value of the subject property after the imposition of the easement from the value of the remainder, before. This calculates as follows: $3,346,042 - $3,346,042,= $0 The above calculation shows there is no depreciation to the current fair market value of this site. Cost to Cute: As previously explained there are two metal gates that will be impacted by this easement project. The gate closest to the SWC is comprised of a 6 rail 12' gate, and another 6 rail 6' gate. There is approximately 10 lineal feet of 3 panel, wood slat fencing on either side of the gates that may also be impacted. I have extracted costs for these items from the Marshall and Swift Valuation Service Manual. The cost of the 12' metal gate is shown at $145, the cost of the 6' gate is shown at $95, and the cost of the 10 LFof wood fencing is $15/ LF or $150. The gate closest to the SEC is a 6 rail gate that is approximately 16' long. I have estimated there will be another 10 LF of 3 panel wood slat fencing impacted at this location as well. The cost of the 16' gate is shown at $180 and again the cost of the wood fencing is $150. In total the cost of the metal gates and wood fencing is $720. J. Michael Joki, MAI, SRA HELENA, MONTANA W Value of the Remainder as Cured.• None Remaining Depreciation of the Fair Market Value: None Special Benefits: None J. Michael Joki, MAI, SRA HELENA, MONTANA .• RECAPULA TION OF COMPENSATION Value of the acquisition: Site Improvements: Temporary Construction Easement: Sewer Main Easement: 1.73 acres x $45,000/AC x 95% Depreciation of Fair Market Value: None Cost to Cure: Metal Gates and Wood Fencing Total Compensation as of Match 3, 2016 Compensation, rounded: Total Compensation: Lessee Interest.• Not applicable Lessor Interest, Not applicable $ 0 $ 0 $ 0 $ 73,958 $ 0 720 $74,678 $74,700 $74,700 J. Michael Joki, MAI, SRA HELENA, MONTANA 70 ADDENDA J. Michael Joki, MAI, SRA HELENA, MONTANA Pri ntPr opeertyRecordC ard Page 1 of 3 Property Record Card Summary Primavy Inforroation Property Category: RP Subcategory: Real Property Geocode: 06-0798-14-1-01-30-0000 Assessment Code: OORGG28154 Primary Owner: PropertyAddress: STATE OF MONTANA GENERAL DELIVERY COS Parcel: HELENA, MT 59601-9999 NOTE: See the Owner tab for all owner information Certificate of Survey: Condo Ownership: Subdivision: General: 0 Limited: 0 Legal Description: Property Factom. S14, T02 S, R05 E, ACRES 89, TRACT D NE4 COS 1243A LESS HWRW Last Modified: 2/24/2016 7:37:11 PM Utilities: Parking Type: General Property Information Neighborhood: 101.A Property Type: EP - Exempt Property Living Units: 0 Levy District: 06-035008-7C 08 Zoning: Ownership %: 100 Linked Prop": No linked properties exist for this property Exemptions: No exemptions exist for this property Condo Ownership: General: 0 Limited: 0 Property Factom. Topography: Fronting: Utilities: Parking Type: Access: Parking Quantity: Location: Parking Proximity: Land Surnmary Land Type Acres Value Grazing 0.000 00.00 Fallow 0.000 00.00 Irrigated 0.000 00.00 Continuous Crop 0,000 00,00 Wild Hay 0,000 00.00 Farmsite 0.000 00.00 ROW 0.000 00.00 NonQual Land 0.000 00.00 Total Ag Land 88,630 00.00 Total Forest Land 0.000 00.00 Total Market Land 0.000 00.00 hUp://svc.mt.gov/msl/MTCadastral/PrintPropertyRecordCard/GetPropertyRecordCardData?Geocode--06079814101300000&year= March 01, 2016 PrintPropertyRecordC and 0 (1 k I P a t o I lk---a, co r d kcurigei-A Na 11""m Owners Party ii Default Information: Ownership %: Primary Owner: Interest Type: Last Modified: Other Names Name Appraisals Appraisal History STATE OF MONTANA GENERAL DELIVERY 100 "Yes" Conversion 11/15/200710:38:30 PM Type Other Addresses Tax Year Laxid Value Building Value Total Vah-io M oth o d 2015 3942 0 3942 COST I 2014 5116 0 5116 COST Market Land Market Land Info No market land info exists for this parcel Dwellings Existing DwellintIs No dwellings exist for this parcel Other Buildingslimprovements OutbuildinyA(ard Improvements No other buildings or yard improvements exist for this parcel Commercial No commercial buildings exist for this parcel Ag/Forest Land Acre Type: NQ - Non Qualified Ag Land Irrigation Type: Class Code: 1751 Timber Zone: I,.... Quantity: 0 Commodity: Units: Non Qual hUp://sve.mt.gov/msI/MTCadastral/PrintPropertyRecordCard/GetPropertyRecordCardData?Geocode=06079814101300000&year= Page 2 of 3 March 01, 2016 Pri ntPropertyRecordC and Acres: 88.53 Value: 0 Per Acre Value: 0 Page 3 of 3 http://sve.mt.gov/msl[MTCadastral/PrintPropertyRecordCard/GetPropertyRecordCardData?Geocode=06079814101300000&year= March 01, 2016 Printing: Layout Page Page 1 of 1 http://svc.mt.gov/msl/mtcadastral/layouLaspx?47 March 01, 2016 1�, tom.ff- i i - ' E t l f t i i i J. I 1 a[ i Fdlt t� �.: 1 u d Gl L`tATIN } F��: 25 E � t � i i�r(AECtJ� �3� ilk tc l � Si f _f ..t .t II 14 VvoKafl Blvd 3 i -N'i- http://svc.mt.gov/msl/mtcadastral/layouLaspx?47 March 01, 2016 _...,._ _ _ _ ....... _........ _........... 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Ikh k12; 3S jk Q b--J,,A A-lWjp;,h f-A-blid d -h�. b-.J�dd R�20&-LZA-dj­ 40JF­.aP-.h&12 42 f= mw --ad. pkh*lz-w� jF-idmaoKlGh D-ly ' S�15 a- G.7,20kct6"r- 'y -i I*d7-rb � momrrmi SAV fb'=* 6�ay dy- h� f -.h, d. dpm fi-b-hkt 20 d�� 34 A., mor W--9 k- b-- 449mg Publrd --d --.(rkmE- 60 E.. E- d -- $dj� �Uc, IS 3grCetmofpkh3:12w2�_b� p b.- - p- f.-dg..n 6-81�h-hdd r-- r6kk d -?..y &old -d .-h- =h=-A=l , r P- &<t25 r- �d bw g.M- _f 44 h� pkh�ll 1.� -P-. .1. -d ff- b.5di.V. .J.6e& .-Ft for -4* 5d. 5 fir. d.nnhd6j,vet G-r_ 20 F­ d-MV.8-fit 20{F id.Mibl OM_ f -T, er bed .,ib-kfm 9-b- b--b-d com-ty midendd hcz6m- buA-. P&- V-.jp. P-. - j-dy 1«mom lh. 4D p-t li-ld...k S1 Y1 yetngbhoo ,boa: 50 &m Kot 2S feet .1i.- mArtrddt. 3.I fee -Fp;.k. 3:1-- moprnme lad'6didccP-., dy.= b.9;6.; r .... . atw..bd 60 k. fi< d­ fl-� d ..M- h-l"m �E P... 20 &-. 23 6. di. -0 k= -FFhlh �'= -15- �t 12; 44 fi:. p -bd, and fh SA --fi- f. 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SEWER MAIN EASEMENT: A SEWER MAIN EASEMENT, over and across: Tract D of Certificate of Survey No. 1243A, situated in the NE114 of Section 14, Township 2 South, Range 5 East, Principal Meridian, CityofBozeman, Gallatin County, Montana, being thirty feet wide (30), fifteen feet (15') on each side of the following described centerline: Commencing at the One-quarter Corner between Section 13 and Section 14, Township 2 South, Range 6 East, Principal Meridian, being a found reba,r with , h a Montana Department of Transportation aluminum cap, two inches diameter, 16411 L5,, thence N,60030'59BW,, for 63,12 feet to a point on the west right-of-way of South 19th Avenue, the POINT OF BEGINNING; thence N.8802613"K, for 596,53 feet; thence N.89*12'52"W., for 635.00 feet; thence N.88"39'0.1 ".W., for 640.00 feet; thence N.88055'37"W., for 645.04 feet, to a point on the east boundary of Tract.A of Certificate of Survey No. 2729, being the POINT OF TERMINATION; from which the Center One-quarter Corner of Section 14 bears ,S.1"11'35'IW., 34,86 feet distant. The area of the described tract of land being 75,497 square feet, or 1733 acres, more or less. CERTIFICATE OF SURVEYOR 1, Daniel J. Boers, Montana Profi6ssional Land Surveyor License No. 14732LS, hereby certify that Exhibit A and Exhibit B were prepared under my super,vision.in March of 2016. Dated this — day of A.D., 2016, Daniel J. Boers, PLS, CFedS MT Reg. No, 14732LS Morrison-Malede, Inc. 2880 T­hW00y Blvd- W.�I or"YNIN By: CRTJ . SOUTH UNIVERSITY AREA PROJECT I , Morrison BOMW' W 'W'118 CHMBY�, DAB BOZEMAN SEWER MAIN MONTANA (40151) 587-0721 APPR. BY-, mo Mailerle DATE: 31M16 SEWER MAIN EXHIBIT EASEMENT EXHIBIT EX. B RUFFM LN.. - LINCOLN ST. - - F Z F O H OWNER: MO NT A STATE UNIVERSITY _._- —.___.: —: I- •. ,z.� ;•' Q O COLLEGE ST. a .•' N' D; Q wZa aw - MINGTON j z w 5 F Noo oN z r LL - m d 0 '3 P� GARFIELD ST. ., GARFIELD ST. . _. GARFIELD ST. -.- 4 •` ,�[�{A •I EXISTINGPROPERTY _ a OWNERSHIP PROPOSED SANITARY ; SEWER ALIGNMENT LINES EXISTING J PROPERTY LINES UTILITY EASEMENT OWNEiz STATE OF MONTANA 2 3 ACQUISITION AREA - Q -� LINCOLN ST NOTE: EXISTING RAN BOUNDARIES REFERENED FROM MONTANA CADASTRAL AND MAV NOT BE EXACT. e SHt�T� FIGURE 1 - LINCOLN ST. - - F Z F O H OWNER: MO NT A STATE UNIVERSITY _._- —.___.: —: I- •. ,z.� ;•' Q O L' a .•' N' D; Q wZa aw - MINGTON j z w 5 F Noo oN z r LL NOTE: EXISTING RAN BOUNDARIES REFERENED FROM MONTANA CADASTRAL AND MAV NOT BE EXACT. e SHt�T� FIGURE 1 F ZSLU vai [a') O U � m N � KAGY BLVD. w .•' N' D; Q LL F cRaecr sv.n+m.oa NOTE: EXISTING RAN BOUNDARIES REFERENED FROM MONTANA CADASTRAL AND MAV NOT BE EXACT. e SHt�T� FIGURE 1 $ ® R t R g ss g 1� w x $I 8 A $ 8 0x50 1.50 2.<10 2x50 0x00 J•50 4w0 4x50 5.00 5.50 0.50 ].00 ]r50 N0. OEBCRIPnCN MTE 0Y MORRISON N.i..., Mr 59s9z JJ NNERLE,INC. w. � PFS « ^„ 9a1 a HORIZ. SCALE Sa 20 o sa io9 � �N FEET VERT.SCALE w PEEr PRELIMINARY -NOT FOR CONSTRUCTION Br50 9.00 0.50 1G50 11.50 f3wa 10.50 1J•S0 ""ar:Rw oSON. ev: Ra SOUTH UNIVERSITY AREA SEWER MAIN INTERCEPTOR MPR. BY: JIXX P!)7FMAN REvBw WEST LINCOLN STREET- PRELIMINARY PLAN AND PROFILE STATION 0+00 -15+00 1dw0 1a.s0 lswo PROJECT NUMBER D NNCMIMO S-4 II R:zn i _ Jr r \ I - — --- — .,rel ; — ,. • % — _ -- -- — I I� ET- _Im -- --_7 _ - 4� I ` It ALIGNMENT / PROPERTY LINE PROPOSED 60 -INCH SEWER `.I".NHOLE (TTP.) PROPOSEO }G' EASEMENT (CENTERED ABOUT SEWER MAIN) I / 1 ICS HL✓uCE�i --. JJJ -INCH MA11OU 11770LE 1 PftOPOSEO IB-INLeI SCWER MNN - }0'UT (7,P.) I HORIZ. SCALE 46 C I I 5 4 40 IN PEEr VERT. SCALE e Y. IN FEET `PRELIMINARY -NOT FOR CONSTRUCTION ®� ���i®i®i��eC06hcZiai l:Crmi�-����c.�R..r:�O �'1-_---- ----'•"-�®m�L�d"3�C.lifi'C791iC®�.-l..' 3�IC��®C�C�C ������������������m__C a� crass 16 50 14.00 14 60 1]w0 17w0 1-. 14.50 1M00 10w0 111.50 S ,, 11.50 2" 50 1]•50 a+00 14✓A 14w0 1N00 ]}+50 SBwO 27— 1]w0 SewO SBr50 10.00 UE6CRIPRON M1E By —1 MOni]TOOTT •I��]] 1\.LUO lY 37�I MAIERLE [rrc. 1E°IM°n°Pu°° 1'°k�°. M11T°s0s01 P,° °� PFyo l<°BI '45 :wee, nal 1441° BRAVIN BT.N6I L4BrL By;lm,, APPA ev:l9Uc RA E44M,5 SOUTH UNIVERSITY AREA SEWER MAIN INTERCEPTOR BOZEMAN MT PR—CTNUMBER a11-2 SHEET NUMBER 6G REVIEW BY care WEST LINCOLN STREET- PRELIMINARY PLAN AND PROFILE STATION 15+00.29+00 oRAwtNC Num4ER S-5 Return to: DOWL 2090 Stadium Drive Bozeman, MT 59715 SOzi PROJECT NAME: MSU FARM CITY OF BOZEMAN PROPERTY UTILITY EASEMENT ' Engineering Division Public Works Department PROJECT #: 4524.11402:04 PARCEL #: 1 PUBLIC UTILITY EASEMENT PUBLIC UTILITY EASEMENT THE GRANTOR(S), GRANTOR, whose address is address, for and in consideration of Ten and No/100 - Dollars, and other valuable consideration, in hand paid, conveys and warrants to the CITY OF BOZEMAN, a Municipal Corporation of the State of Montana, with offices at 121 North Rouse Avenue, Bozeman Montana 59715, its successors or assignees, a perpetual, full and unrestricted public utility easement, over, under, along, through, and across the following -described tract of land located in Gallatin County, Montana: A public utility easement to the City of Bozeman, on a tract of land located in existing legal description, more particularly described as follows and as shown on Exhibit A; "Easement legal description All improvements are the property of the CITY OF BOZEMAN, removable at its option. The failure of the GRANTEE to exercise any of its rights granted herein shall not be construed as a waiver or abandonment of the right. The above-named Grantor hereby covenants with the CITY OF BOZEMAN that said Grantor has good title to the above-described tract of land and covenants that the CITY OF BOZEMAN shall have quiet and peaceable possession thereof; and shall have a free and unrestricted right to maintain said facilities as long as the right-of-way of which this easement area is a part, remains a public utility easement. CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 1 of 4 Dated this day of , 20 GRANTOR GRANTOR ACKNOWLEDGMENT OF GRANTORS STATE OF ) ) ss County of ) On this day of , 20_, before me, the undersigned, a Notary Public in and for the said State, personally appeared the Grantors, Grantor, known to me to be the identical individuals who executed the foregoing instrument, who acknowledged to me that each individual executed the same as the free and voluntary act of said company, with full authority to do so and with full knowledge of its contents, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this day and year above written. Notary Public in and for the State of My Commission Expires: CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 2 of 4 CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the CITY OF BOZEMAN, a Municipal Corporation of the State of Montana, Grantee herein, acting by and through its City Manager and City Clerk for the City of Bozeman, hereby accepts for public purposes, the real property, or interest therein, described in this instrument and consents to the recordation thereof: CITY OF BOZEMAN Date: By: Chris Kukulski City Manager ATTEST: By: Stacy Ulmen City Clerk STATE OF MONTANA ) )ss. County of Gallatin ) The foregoing instrument was acknowledged before me this day of , 20_ by Chris Kukulski and Stacy Ulmen, known to me to be the City Manager and City Clerk for the City of Bozeman and the persons whose names are subscribed to this instrument, and acknowledged to me that they executed the same for and on behalf of the City of Bozeman. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this day and year above written. Notary Public in and for the State of Montana My Commission Expires: CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 3 of 4 Exhibit A CITY OF BOZEMAN PROJECT NAME: MSU FARM PROPERTY UTILITY EASEMENT Parcel 1 PROJECT#: 4524.11402.04 Page 4 of 4 Location: Site Data: COMPARABLE LAND SALE NO. 1 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 384019th Avenue in Bozeman, Montana. This site is located on the east side of 19th Avenue at the Graf Street intersection. 1. Size : 78.00 acres 2. Zoning: Residential Urban Photo Data: 1. Date: March 3, 2016 2. Taken From: 19th Avenue 3. Facing: Northeast 4. Taken By: J. Michael Jold, MAI, SRA 5. Comp: Boz.27 Current Use: Unimproved Legal Description: The SW 1/4 NW 1/4 and the NW 1/4 SW 1/4 of Section 24, Township 2 South, Range 5 East, Gallatin County, Montana. Grantor: American Bank Recorded Sales Price: $2,900,000 Instrument: Warranty Deed Recorded: August 10, 2012 Recording Info.: 2423127 Financing: Cash to the Seller Grantee: Klein and Daren Gilhousen Confirmed Sales Price: $2,900,000 Confirming Party & Phone No.: Listing Agent -Lloyd Mandeville (406) 580-9566 Confirmed By: J. Michael Joki, MAI, SRA Confirmation Date: March 5, 2016 Property Description: This 78 acre site is located on the east side of 19th Avenue and just south of the Montana State University campus. This site is level at road grade and has a significant amount of frontage along 19th Avenue. Where Graf Street intersects 19th Avenue is now a lighted intersection. I confirmed with the listing agent at the time of sale city water service was available along 19th Avenue however city sewer service had not been extended this far south. Currently there is a sign showing the Future Home of the Yellowstone Theological Institute on this property. I confirmed with Lloyd Mandeville it is the land owners intent to allow this institute to be constructed on their land and they will donate the necessary land for the facility. Indication At Time Of Sale: $2,900,000 - 78 acres = $37,179/Acre ( Security Title Company P.O, Box 6550 Bozeman, MI 59771-6550 Klein & Karen Gilhousen 599 Hightower Road Bozeman, MT 59718 24231 CharlotteFMills ?8 17012012 Co: 0:38 PM Fee: $14.00 11111111U�1III11�f 1MN111f11NnN81f 111NMT DEED 11M11(1IN1f� 1111111111111 WARRANTY DEED FOR VALUABLE CONSIDERATION, the receipt of which is acknowledged, the undersigned, AMERICAN BANK, with mailing address at P.O. Box 1970, Bozeman, Montana 59771-1970, Grantor, hereby grants to Klein S. Gilhousen and Karen Mai Gilhousen, with mailing address at 599 Hightowner Road, Bozeman, Montana 59718, Grantee, real property in Gallatin County, Montana, described as follows: THE S W 1/4N W l/4 AND THE NW I /4S W 1/4 OF SECTION 24, TOWNSHIP 2 SOUTH, RANGE 5 EAST, P.M.M., GALLATIN COUNTY, MONTANA. (DEED REFERENCE: DOCUMENT No. 2092607) EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF MONTANA IN BARGAIN AND SALE DEED, RECORDED JUNE 30,1964 IN BOOK 146 OF DEEDS, PAGE 24, RECORDS OF GALLATIN COUNTY, MONTANA. TO HAVE AND TO HOLD unto Grantee, and Grantee's successors, heirs and assigns, forever, SUBJECT TO THE FOLLOWING: (a) Reservations and exceptions in patents from the United States and the State of Montana. (b) Existing easements and rights-of-way. (c) Mineral and royalty reservations and conveyances of record. (d) Building, use, zoning, sanitary and environmental restrictions, and waivers of record. (e) Taxes and assessments for 2012 and subsequent years. 2423127 Page 2 of 2 08/10/2012 11:00:38 AM {f) All rights, covenants, conditions, agreements and restrictions contained or referred to in any instruments of record. EXCEPT with reference to the items referred to in paragraphs (a) to (0 inclusive, this deed is given with the usual covenants expressed in Section 30-11-110, MCA. DATED thisday of August, 2012. �l�Tli 1 . �I STATE OF MONTANA } ss: County of Gallatin ) This instrument was acknowledged before me o��t�} thisda of August, 2012, by bl& , in his capacity as F�ftwv V!C`t� Mi' AMERICAN BANK. E�rrr'r, O • • • PAt Nam . NpTAR/A�',pZ Notary Public for the State of Montana Residing at: ZMPYmajo, (W I (SEAL N•'. a7 r •� ► e . = My commission expires: t) Printing: Layout Page Page 1 of 1 http://svc.mt.gov/msl/mtcadastral/layotA.aspx?26 March 21, 2016 Location: Site Data: COMPARABLE LAND SALE NO. 2 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 West side of 19th Avenue at Southbridge Street in Bozeman, Montana. 1. Size : 20.00 acres 2. Zoning: R-3 (Residential Medium Density) Photo Data: 1. Date: March 3, 2016 2. Taken From: 19th Avenue 3. Facing: West 4. Taken By: J. Michael Joki, MAI, SRA 5. Comp: Boz.28 Current Use: Unimproved Legal Description: Lot 4 of Minor Subdivision No. 235, a portion of Tract 3 in COS # 2029, located in the NE 1/4 SE 1/4 of Section 23, Township 2 South, Range 5 East, Gallatin County, Montana. Grantor: Flathead Bank Grantee: Holyoke N, INC. Recorded Sales Price: $648,233 Confirmed Sales Price: $648,233 Instrument: Warranty Deed Confirming Party & Phone No.: Keith O'Reilly Appraiser Recorded: June 27, 2012 (406) 570-3768 Recording Info.: 2419193 Confirmed By: J. Michael Joki, MAI, SRA Financing: Cash to the Seller Confirmation Date: March 8, 2016 Property Description: This 20 acre site is located on the west side of 19th Avenue and just south of the Montana State University campus. This site has level topography at street grade and reportedly a significant amount of infrastructure was in place at the time of sale. Lots within the subdivision are accessed off of Southbridge Street which intersects 19th Avenue. Shortly after this sale the land was developed with phase 1 and 2 of the Southbridge Subdivision which included 43 single family residential lots. This property had preliminary plat approval prior to sale. Indication At Time Of Sale: $648,233 _ 20 acres = $32,412/Acre 2419193 Chari of to rMllls 06catla0ln 0I:S2 45MTM Fee: $7 - Do IIIIIIIIIII�IIIIDEED INIIII1111III III II(IIIIIIIIIlnllI mil Escrow #: 7001-10549 Holyoke IV, INC 101 West Prairie Shopping Center #373 Hayden, Idaho 83835 MITE MONTANA ANO -9 ORDER ;l?l�� WARRANTY DEED FOR VALUE RECEIVED, FLATHEAD BANK, Valley Bank Branch, the Grantor, does hereby grant, bargain,sell, convey and confirm unto HOLYOKE IV, INC, of 101 West Prairie Shopping Center #373, Hayden, Idaho 83835 the Grantee and its assigns, the following described premises in Gallatin County, Montana, to -wit: Lot 4 of Minor Subdivision No. 235, a tract of land being Tract 3 of Certificate of Survey No. 2029 and NE;4SE14 of Section 23, Township 2 South, Range 5 East, P.M.M., Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder, Gallatin County, Montana. SUBJECT TO reservations and restrictions in federal patents, prior conveyances, and mineral reservations of record, all real property taxes and assessments for the current year and subsequent years, and all building and use restrictions, covenants, easements, agreements, conditions and rights of way of record and those which would be disclosed by an examination of the property. TO HAVE AND TO HOLD the said premises, with their tenements, hereditaments, and appurtenances unto the said Grantee and its assigns forever. And the said Grantor does hereby covenant to and with the said Grantee that its is the owner in fee simple of said premises; that Grantee shall enjoy the same without any lawful disturbance; that the same is free from all encumbrances except those limitations set forth above; that the Grantor and all persons acquiring any interest in the same through or from Grantor will, on demand, execute and deliver to the Grantee, at the expense of the Grantee, any further assurance of the same that may be reasonably required; and that the Grantor will warrant to the Grantee all the said property against every person lawfully claiming the same. DATED this day of June, 2012. Flathead Bank lley Bank Branch Gia Larry 0_ STATE OF MONTANA ) ss. County of Gallatin ) On this � day of June, 2012, before me, a Notary Public in and for said State, personally appeared LARRY JOCHIM, CEO of FLATHEAD BANK, Valley Bank Branch, known to me to be M�ersonhose name is subscribed to the within instrument and acknowthat he executed the same. Tamm Redfern r Print d Na _ Notary Public fo, the stato of Montana Notar ubli t e St of Montana -- , : Residing at: Resid' n at ontana n9 SEALT,` Bozeman, Montana My co ission✓expires: — — `<,, • • __R ,> My commission F_xplres: htt� November 04, 2015 Printing: Layout Page Page 1 of 1 http://svc.mt.gov/msl/mtcadastralAayout.aspx?41 March 21, 2016 COMPARABLE LAND SALE NO. 3 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 Location: Southwest corner of Baxter Lane and 11th Avenue in Bozeman, Montana. Site Data: 1. Size : 37.05 acres 2. Zoning: B-2 Photo Data: 1. Date: March 3, 2016 2. Taken From: 11 th Ave. 3. Facing: West 4. Taken By: J. Michael Joki, MAI, SRA 5. Comp: Boz.29 Current Use: Unimproved Legal Description: Lot 6A of PT Land Phase 2 Subdivision and Lots 1, 2 and 3 of Block 3 of PT Land Phase 2 Subdivision, Plate, J-498, Gallatin County, Montana. Grantor: PT Land Grantee: Montana Keystone Ventures, LLC Recorded Sales Price: $3,564,000 Confirmed Sales Price: $3,564,000 Instrument: Warranty Deed Confirming Party & Phone No.: Seller Jerry Perkins Recorded: September 1, 2015 Keith O'Reilly Appraiser (406) 570-3768 Recording Info.: 2523526 Confirmed By: J. Michael Joki, MAI, SRA Financing: Cash to the Seller Confirmation Date: March 9, 2016 Property Description: This slightly irregular shaped site is located at the southwest corner of Baxter Lane and 11th Avenue and has good visibility from Interstate 90, and lies between the North 7th Avenue and North 19 Avenue exits. In total there is 37.05 acres comprised of 3 "turn key" sites that can be sold immediately. Reportedly the buyer intends to redevelop the entire site including the 3 separate lots. The buyer is the owner of the adjacent Homewood Suites Hotel, also known as the Bennett Hospitality Group. Reportedly 8.67 acres of this site is wetland area and cannot be developed. This is one of the last large sites within the city limits of Bozeman best suited for commercial development. There already has been significant commercial retail development in nearly all directions from this site. Reportedly a significant amount of infrastructure cost will have to be incurred including improvements to Baxter Lane and the construction of Tschache Lane Indication At Time Of Sale: $3,564,000 =37.05 acres = $96,194/Acre RETURN DOCUMENT TO: Amedcan Land Title Company 1800 W. Ko , Bozema � n, MT 59715 Order No• 2523526 1.00 GhV tte rtlill. 096.11.201. County}2MTn. MTM S2DEED IIIIIII SIE III 11101111111111111111111111111IN 111111I011 fil III11IIII IIII WARRANTY DEED For Value Received, PT LAND, a Montana general partnership, with address of 511 North Wallace, Bozeman, Montana 59715, the Grantor, does hereby grant, bargain, sell, convey and confirm unto MONTANA KEYSTONE VENTURES, LLC, a South Carolina Limited Liability Company, with address of 17 Lockwood Drive, Charleston, South Carolina 29401, the Grantee, the following described premises in Gallatin County, Montana, to -wit: Parcel I: Lot 6A of PT Land Phase 2 Subdivision, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana [Plat J-498]. Parcel II• Lots 1, 2 and 3 of Block 3 of PT Land Phase 2 Subdivision, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana [J-498]. SUBJECT TO easements, conditions, restrictions and rights-of- way shown or indicated in the public records or plats filed and recorded in the office of the County Clerk and Recorder of Gallatin County, Montana, or which may be ascertained from a visual inspection of the land, including ditch and utility easements. Subject to prior mineral, oil and gas, and patent rights and reservations and exceptions, if any; Subject to taxes and other governmental charges and assessments accruing or imposed after the date hereof; Subject to building and use restrictions and zoning ordinances, if any; Subject to the terms, conditions, restrictions and all other disclosures contained in the Declaration of Covenants and Restrictions recorded March 27, 2008 as Document No. 2295422, records of Gallatin County, Montana, and all amendments thereto; Subject to the terms, conditions, restrictions and all other disclosures contained in the Bylaws recorded March 27, 2008, Document No. 2295423, records of Gallatin County, Montana, and all amendments thereto. TOGETHER WITH all tenements, hereditaments and appurtenances thereto, and all reversions and remainders, and all rents, issues and profits thereof, and all right, title and interest of the Grantor therein. TO HAVE AND TO HOLD the said premises, with its appurtenances unto the said Grantee, its heirs and assigns forever. Subject to the exceptions noted above, this warranty deed is given with the usual covenants expressed in §30-11-110, M.C.A. 2523526 Page 2 of 3 09/01/2015 03:31:12 PM DATED this day of August, 2015. PT LAND By: Its: By: Its: STATE OF MONTANA ) ss. county of Gallatin ) On this M day of August, 2015, before me, a Notary Public in and for said State, personally appeared Jerry L. Perkins, Partner and,Petiamjeet Takhae, a/k,/u1 Bar mTit S Tai hay, Pa tier, of PT LAND, known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same on behalf of the partnership. 04&�fd( Notary Phblic for the ate at -r of Montana inted Name: oNOUtiCry ndiing P8h`A siding in :6�pS.....O;sE NOWYP0110 the State of Montane commission expires �:•�olAerq� :for { ResIding at: ' ny.SEAL:ze sozeman, Montana P..""' My Comrr�ssion Expires; February 01, 2016 V, 252352Y Page 3 of 3 09/01/2015 03:31:12 PM i DATED this a day of ;August, 2015. I 1 PT LAND z-cs: t By:I its: V 1 'om STATE 7A ) ss. County of on this ay of August, 2015, before me otary Public in and for said tate, 'P rsonally appeare erry L. Perkins, Partner ' of PT LAND, known to me t e he pers wnose names are subscribed to the within instrument ac ledged to me that they executed the same on behalf of the nership. Notary PublizNkor the Printed Name: Residing in Mylcommission expire STATE of County of '1'aa� � On this day of Au in and for said State, p, Paramjeet Takhaz PT LAND, known to me to be to the within instrument anc the same on behalf of the p My SIGN & . NOTARIZE Montana ust, 2015, before me, a Notary Public �sonally appeared a/k/a Paramjit S. Takhar, Partner, of is persons whose names are subscribed acknowledged to me that•thexecuted s ated Name: '0f:w-'4 Wing in ;ommisaion expires; 2 JEONG K00RHO COMM, � 203681 f HOFARY PBBEIC.CAUFORNIA MY Cnuµ EXpESEP. 9, 2017 ' Printing: Layout Page Page 1 of I http://svc.mt.gov/msl/mtcadastralAayoLA.aspx?96 March 21, 2016 41 IS 6E �T Ll I olff i jtfi n http://svc.mt.gov/msl/mtcadastralAayoLA.aspx?96 March 21, 2016 Location: Site Data: COMPARABLE LAND SALE NO.4 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 4900 Westlake Road in Bozeman, Montana. This site is located at the intersection of East Valley Center Road and Westlake Road and on the south side of Interstate 90. 1. Size : 53.77 acres 2. Zoning: B -2/R -O Photo Data: 1. Date: November 21, 2013 2. Taken From: North 27th Avenue 3. Facing: West 4. Taken By: J. Michael Joki, MAI, SRA 5. Comp: Boz.30 Current Use: Unimproved Legal Description: Lot 2A of Minor Subdivision No. 221E, a tract of land located in the SW 1/a of Section 26, Township South, Range 5 East, Gallatin County, Montana. Grantor: Valley Center, LLC Grantee: Billings Cline Recorded Sales Price: $3,866,137 Confirmed Sales Price: $3,866,137 Instrument: Warranty Deed Confirming Party & Phone No.: Listing Agent - Thomas Starner (406)539-0717, Grantor -Brian Cline (406) 581-3812 Recorded: January 6, 2016 Confirmed By: J. Michael Joki, MAI, SRA Recording Info.: 2534806 Confirmation Date: March 21, 2016 Financing: Cash to the Seller Property Description: This 53.77 acre site is located on the south side of Valley Center Road and has good exposure to Interstate 90 which is directly to the north. This site is level at road grade with Westlake/Valley Center Road along the north boundary, and North 27th Avenue along the east boundary. This site has relatively level topography and has historically been in an agricultural use. This site is located on the northwestern fringe of the Bozeman city limits and sits just west of a large retail commercial development known as the Gallatin Center and a new Costco store. The listing agent and seller confirmed there was no city sewer service to this land when the seller purchased this property in October, 2013. The seller explained that he reached an agreement with the City of Bozeman for the developer of this land to have the right to install a lift station that can connect to a sewer main which essentiality establishes city sewer service to this land. City water service was already available. Also, when the seller purchased this land it was a mix of R -O and R-3 zoning. The seller petitioned for a zoning change and now 32 acres are zoned B-2 and the remaining +/- 22 acres are zoned R -O. The seller estimated his cost to make these changes at $50,000 for city sewer service and approximately $ 100,000 in engineering, architectural and various city fees for the sewer and zoning changes. All total the expenditure after the 2013 sale was $150,000. This property was listed for sale at $4,700,00 and sold for $3,866,137 after being on the market for 175 days. The seller confirmed on October 31, 2013 he paid $1,345,000 for this land and had $ 150,000 in expenditures, and then resold this land on January 6, 2016 at $3,866,137. This shows 158.60% appreciation over this 26 month period. Indication At Time Of Sale: $3,866,137 - 53.77 acres = $71,901/Acre American Land Title Company 1600 ld. Koch Bozeman, MT 59715 Ordor tato: 1 .—/6-3 i -3 - After recording, return to: Billings Clinic Attn: Legal Department 2800 Tenth Avenue North P.O. Box 37000 Billings, MT 59107-7000 ;iFee! $17-00 page: i of 1 ©110612016 11:29:32 RM Charlotte Mills - Gallatin County, MT 11111111 111111 Ill 1111 11113 111111 lilt 1111 IIIII 11111 111111111111 ll1 lull (1811111 Illi WARRANTY DEED VALLEY CENTER, LLC, a Montana limited liability company (the "Grantor"), with mailing address at P.O. Box 11890m Bozeman, Montana 59719, hereby grants to BILLINGS CLINIC (the "Grantee"), with a mailing address of P.O. Box 37000, Billings, Montana 59107-7000, real property in Gallatin County, Montana, described as follows: Lot 2A of Minor Subdivision No. 221E, located in the SWI/4 of Section 26, Township 1 South, Range 5 East P.M.M., Gallatin County Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder, Gallatin County, Montana. To have and to hold unto the Grantee and the Grantee's successors and assigns, forever, subject to the following: (a) Reservations and exceptions in patents from the United States and the State of Montana; (b) Existing easements and rights-of-way of record; (c) Building, use, zoning, sanitary and environmental restrictions and waivers; and (d) Taxes and assessments for 2016 and subsequent years. . Except with reference to the items referred to in subparagraphs (a) through (d), the Grantor provides this warranty deed with the usual covenants expressed in Montana Code Annotated § 30 -11 - VALLEY CENTER, LLC Date: January 6, 2016 By: _ Name: '.. r.1 Title: STATE OF MONTANA ) ss. County of Yel(evd�terre ) This instrument was acknowledged before me on January 2016, by Bryan Klein as Tnsl � „-% yY\.n v orf Valley Center, LLC. "ol I t I /.,,' Cresta Sundfln Pahut Print Name: �p' Notary Public Notary Public for t e State of Montana 4.0 t40TARlq� � for the State of Montana Residing at Montana S 'L) — *? Residing at: My Commission expires 20 N9 ��•�TT Bozeman, Montana My Comrnission Expires: v_ February 01, 2016 --- I- _. _._J _ .__ _ --C�- littp:Hsve,mt.gov/msl/mteadastral/layout.aspx?7 3/18/2014 J. MICHAEL JOIN, MAI, SRA State of Montana, Certified General #152 P.O. Box 281 Helena, MT 59624 APPRAISER'S QUALIFICATIONS EMPLOYMENT: January 1992 to present; Employed by Joki & Associates, a general practice real estate appraisal firm. July 1987 to January 1992; Employed by Peyton & Peyton, Inc., a general practice real estate appraisal firm. June 1986 to September 1986; Employed by Gerald D. Peyton, SRA, Fullerton, CA, as an appraiser trainee. EDUCATION: Bachelor of Science degree in Business Administration, Management major, Montana State University, Bozeman, MT, June, 1987 Specialized Real Estate courses: Market Analysis and Highest and Best Use: Appraisal Institute, May, 2014 Report Writing and Valuation Analysis: Appraisal Institute, October, 2000 Advanced Applications: Appraisal Institute, October, 2000 Advanced Income Capitalization: Appraisal Institute, July, 1999 Condemnation Appraising: Basic Principals and Applications Appraisal Institute, March, 1999 Condemnation Appraising: Advanced Topics and Applications Appraisal Institute, March, 1999 Litigation Skills for the Appraiser: Appraisal Institute, April, 2000 General Applications: Appraisal Institute, June, 1997 Basic Income Capitalization: Appraisal Institute, April, 1997 EDUCATION: (cont.) Basic Valuation Procedures: Appraisal Institute, May, 1992 Residential Valuation: American Institute of Real Estate Appraisers, January, 1988 Real Estate Appraisal Principles: American Institute of Real Estate Appraisers, October, 1987 PROFESSIONAL DESIGNATIONS: MAI, Appraisal Institute, August, 2003 SRA, Appraisal Institute, August, 1992 STATE CERTIFICATION: State of Montana Certified General #152, Issued June, 1999 State of Montana Certified Residential #152, Issued July, 1992 TYPICAL APPRAISALS: Multi family, office, retail, special purpose, subdivisions and vacant land, eminent domain. CONTINUING EDUCATION WITH APPRAISAL INSTITUTE (past 15 years): Analyzing Operating Expenses, March, 2012 USPAP Update Course, January, 2012 Attacking and Defending an Appraisal in Litigation, May, 2011 Discounted Cash Flow Model, October, 2010 USPAP Update Course, February 2010 Appraisal Curriculum Overview, September 2009 Business Practice and Ethics, January 2009 Office Building Valuation, September 2008 USPAP Update Course, January 2008 Effective Appraisal Writing, March 2007 Subdivision Valuation, September 2006 Business Practice and Ethics, March 2006 Scope of Work, September 2005 Evaluating Commercial Construction, September, 2004 Separating Real and Personal Property, October, 2003 Standards for Federal Land Acquisitions, January 2003 Partial Interest - Undivided, April 2002 Standards of Professional Practice, Part C, January 2002 Partial Interest --Divided, September, 2001 Partial Interest --Undivided, April, 2002 Marshall & Swift Valuation Guides, May, 2000 Data Confirmation Methods Small Hotel/Motel Valuation Eminent Domain and Condemnation Appraising CLIENTS: * Education Chairman, Montana Chapter of die Appraisal Institute, January, 1996 to September, 2000. * Appointed to National Educational Programs Committee, Appraisal Institute, 1999 to 2002. * Vice President, Montana Chapter of the Appraisal Institute, 2004 - 2005. * President, Montana Chapter of the Appraisal Institute, 2006-2007 * Finance Officer for Region 1 of the Appraisal Institute, 2009-2013 State of Montana, Department of Transportation U. S. General Services Administration Albertsons, Inc. Montana Fish, Wildlife, and Parks Lolo National Forest WGM Group—Engineering Firm Robert Peccia & Associates—Engineering Firm Montana Tech College Montana Board of Investments City of Helena Lewis and Clark County Helena School District #1 Jefferson County Northwestern Energy - Montana Power Company Southern Montana Electric State of Montana, Department of Military Affairs Louisiana Pacific Corporation Diocese of Helena Toyota Financial Services CB Richard Ellis Wells Fargo Bank US Bank Valley Bank of Helena Rocky Mountain Credit Union Whitefish Credit Union Mountain West Bank Glacier Bank Commonwealth Land Tide Insurance Company Prickly Pear Land Trust The Trust for Public Land Numerous private investors and attorneys.. State of Montana Business Standards Division Board of Real Estate Appraisers License REA-RAG-LIC-152 Status:. Active Expiration Date: 03/31/2017 JOHN MICHAEL JOKI JOKI AND ASSOCIATES PO BOX 281 HELENA, MT 59624 This certificate verifies licensure as: CERTIFIED GENERAL APPRAISER With endorsements of: REAL ESTATE APPRAISER MENTOR RUNE V OR VERIFY YOUR IR ESSE AT. hltpy:�r�t?ii.mt.geti!pai+ To use license as a Wall License, cut off excess paper and affix the above to wall for display. Remember to renew online if possible. Benefits of renewing online include: The ability to print license(s) the same day as. the renewal The ability to print multiple licenses including one for a pocket card if desired The ability to print in color (if you have a color printer) The ability to print additional licenses for no additional charge up to 45 days following the end of the renewal cycle To verify licenses or renew online: https://ebiz.mt.gov/pol