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HomeMy WebLinkAbout15- North Park Property AppraisalANAPPRAISAL OF THE 8 5.3 5 ACRE NORTHPARKPROPERTY IN BOZEMAN, MONTANA DATE OF VAL UA TION DECEMBER 15, 2015 / _C RONA SANCHEZ NORTHWESTERN ENERGY BY J. MICHAEL JO" MAI, SRA HELENA, MONTANA December 24, 2015 Rona Sanchez, Sr. Real Property Specialist Northwestern Energy 40 E. Broadway Butte, Montana 59701 ,L MICHAEL -WAV -4 MAI, SRA P.O. BOX 281 HELENA, MONTANA 59624 Phone (406) 442-2159 FAX (406) 442-6196 RE: An appraisal of the 85.35 acre North Park property located south and west of North 7th Avenue and Frontage Road in Bozeman, Montana. Dear Mrs. Sanchez: Per your authorization on October 21, 2015 I have examined and investigated the above referenced property for the purpose of estimating its current fair market value before realignment of the natural gas pipeline easement, its current fair market value after realignment of the natural gas pipeline 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 64 pages. I have appraised the property as a whole, owned in fee simple, and encumbered with an existing natural gas pipeline easement as will be discussed. I assume no responsibility for matters that are legal in nature nor do I render any opinion as to title. The land being appraised is 85.35 acres that lies at die north end of North 7th Avenue and is commonly known as the North Park Property. Currently Northwestern Energy has a natural gas pipeline easement crossing through this land and they desire to realign this easement. The proposed realignment is shown on page 47 in 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 marketvalue of the subject property before realignment of the natural gas pipeline easement, as set forth, documented and qualified in the attached report under conditions prevailing on December 15, 2015 was: ONE MILLION SIX HUNDRED FIFTY ONE THOUSAND NINE HUNDRED THIRTEEN $1,651,913 MEMBER APPRAISAL INSTITUTE Based on my analysis, the market value of the subject property after realignment of the natural gas pipeline easement, as set forth, documented and qualified in the attached report under conditions prevailing on December 15, 2015 was: ONE MILLION SIX HUNDRED FIFTY TWO THOUSAND ONE HUNDRED SEVENTY SIX $1,652,176* Value of the Remainder, Before: $1,635,796 Value of the Remainder, After: $1,652,176 Depreciation to Current Fair Market Value: $0 Special Benefits: $0 Value of the New or Relocated Easement Area: $16,117 Value of the Temporary Construction Easement area: $7,488 My total estimation of compensation is: $23,650(R)* I direct your attention to the data, discussions and conclusions which follow. Respectfully submitted, O J. Michael Joki, MAI,IS Montana State Certified General Real Estate Appraiser #152 * Subject to the Hypothetical Condition listed on page 8. MEMBER APPRAISAL INSTITUTE TABLE OF CONTENTS INTRODUCTION Letter of Transmittal Certification Assumptions and Limiting Conditions Hypothetical Condition Summary of Important Facts and Conclusions Subject Property Photograph DESCRIPTION, ANALYSIS AND CONCLUSION: Definition of Market Value Purpose of Appraisal Intended Use of the Appraisal and Intended Client Scope of Appraisal Summary of the Appraisal Problem Property Rights Appraised Identification of Property and Legal Description History of the Property Regional Map Regional and City Analysis Neighborhood Analysis Plot Plan Property Description Before the Imposition of the Easement Subject Property Photographs Zoning Highest and Best Use Before The Valuation Process Site Valuation Land Sale Location Map Land Sale Adjustment Grid Bracketing the Subject Property Map Depicting the Easement Area Scope of the Project and Its Affect on the Subject Site Subject Property Photographs Identification of the Site, After Highest and Best Use After The Valuation Process J. Michael Joki, MAI, SRA HELENA, MONTANA Page 5 7 8 9 10 10 11 11 12 13 13 14 15 16 21 23 24 29 34 35 38 38 42 43 46 47 48 50 51 52 55 Site Valuation Land Sale Location Map Land Sale Adjustment Grid Bracketing the Subject Property Depreciation to Current Fair Market Value Recapulation of Compensation ADDENDA: New and Old Access Agreements Warranty Deeds Preliminary Plat Agricultural Lease Utilities Lease Buy -Sell Agreement with Addendum Utilities Aerial Zoning Ordinance Eagle Nest Aerial Montana Bald Eagle Management Guidelines Pipeline Easement -Sheet 2 of 2 Preliminary Easement Agreement Comparable Land Sale Sheets with Photographs Qualifications of the Appraiser State License J. Michael Joki, MAI, SRA HELENA, MONTANA 55 58 59 62 63 64 INTRODUCTION J. Michael Joki, MAI, SRA HELENA, MONTANA 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 rLimiting 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 appraised the subject property in February, 2014. My client was the City of Bozeman, Montana. 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 die 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 provided 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. 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: December 24 2015 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 not 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. 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. A phase 1 environmental assessment and engineering report pertaining to the subject property was provided to me by my previous client the City of Bozeman. I have relied on these documents as being accurate and will refer any interested party to obtain and read these documents if there are any questions regarding 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 5 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 ALly deficiencies of any 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 Northwestern Energy. It is my understanding Northwestern Energy is working in conjunction with the City of Bozeman on this natural gas pipeline easement realignment project. No third parties are authorized to rely upon this report without the express written consent of the appraiser. 14. This Summary 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 discussion of the data, reasoning, and analysis that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analysis is contained in the appraiser's file. J. Michael Joki, MAI, SRA HELENA, MONTANA 6 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 realignment of the natural gas pipeline easement has not been taken place and if all parties are in agreement the easement will be realigned at a future date. The value of the subject after realignment 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 realignment of the easement would not be reasonable nor would the value conclusion be creditable if this project is not completed. J. Michael Joki, MAI, SRA HELENA, MONTANA 7 SUMMARY OFIMPORTANT FACTSAND CONCLUSIONS PURPORTED OWNER- LOCATION OF PROPERTY - LAND SIZE: PROPOSED NE 1V OR RELOCATION EASEMENT AREA: PROPOSED ABANDONED EASEMENT AREA: PROPOSED TEMPORARY CONSTRUCTION EASEMENT AREA: IMPROVEMENTS: PROPERTY RIGHTS APPRAISED. ZONING: PRESENT USE: HIGHEST AND BEST USE: City of Bozeman, Montana This property is located on N. 7th Ave. where it transitions into Frontage Road, and is east of Interstate 90 in Bozeman, Gallatin County, Montana. An irregular shaped parcel of land that is comprised of four tracts that total 85.35 acres. .87 acres 84 acres 3.84 acres There are old farm buildings that provide no contributory value. Fee Simple M-2 (Manufacturing and Industrial District) Agricultural Agricultural in the interim that will most likely transition to a light industrial use DATE OF VALUATION. December 15, 2015 CONCLUDED ESTIMATE OF MARKET VALUE BEFORE REALIGNMENT OF THE EASEMENT: $1,651,913 CONCLUDED ESTIMATE OF MARKET VALUE AFTER REALIGNMENT OF THE EASEMENT. • $1,652,176* DEPRECIATION OF CURRENT FAIR MARKET VALUE: $0* TOTAL ESTLVIATE OF COMPENSATION.• $23,650* *Subject to the Hypothetical Condition Listed on page 8. J. Michael Joki, MAI, SRA HELENA, MONTANA 8 1 d I' 1 ri,FJl r _ —. Batter •� �1 I �' t �'�� Alantlaville•Dy 1) Ips H E di111mDc.._. SSW2'25.W'�II� 111 i 3.i,1 A2";� cIE� M157'/ Y eye I 128:-0'.fl 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 THEAPPRAISAL The purpose of this appraisal report is to arrive at a supportable estimation of the market value. J. Michael Joki, MAI, SRA HELENA, MONTANA WN INTENDED USE OF THE APPRAISAL AND INTENDED CLIENT It is understood that the intended use of this appraisal report is to assist Northwestern Energy in appropriately compensating the property owner for realigning a natural gas pipeline easement on their land. The client is Northwestern Energy and the intended users of the appraisal report are Northwestern Energy and potentially the City of Bozeman, Montana who owns this land. 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 Rona Sanchez from Northwestern Energy and she explained their company would like to realign a natural gas pipeline easement that crosses through the North Park property. This site needs to be valued so the City of Bozeman can appropriately be compensated because the new alignment will require more easement area, some of the existing easement area will be abandoned, and temporary use of some areas will be needed during construction. Jeff Harmon with Lodgepole Land Services forwarded me the exhibits showing the easement realignment and calculations for the new or relocation easement area, abandoned easement area and temporary work space area. I spoke with Brit Fontenot, Director of Economic Development & Community Relations for the City of Bozeman, to address any issues or concerns he has about this realignment project. Mr. Fontenot was well aware of this project and did not have any concerns or issues and was able to answer a number of questions I had concerning the subject property. I was given permission to inspect the subject property on December 15, 2015 unaccompanied, and this is also the day I took all photographs of the subject property. Mr Fontenot asked that I contact Craig Campbell at The Department of Natural Resources and Conservation concerning an eagle's nest on the adjoining site to the south that is owned by the Sate of Montana. My findings pertaining to this issue are discussed on page 26 in the functional adequacy section of this appraisal report. 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 J. Michael Joki, MAI, SRA HELENA, MONTANA 11 body of the report and in more detail on the sales sheets included in the addenda. All known, available, relevant market considered to have an impact on the market value of the subject property has been considered. The Scope of Work defines an appraiser's conclusions as to what is deemed necessary to provided a creditable appraisal report. The client is defined as Northwestern Energy. The intended user is the client, and the intended use will be to assist the client in appropriately compensating the City of Bozeman for realignment of a natural gas pipeline 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 • Jeff Harmon, Lodgepole Land Services • Keith O'Reilly, MAI, Appraiser • Ed Jackson, Appraiser • Craig Campbell, DNRC • Mike McKenna, Realtor • Scott Dehlendorf, Developer • Paul Rubright, Realtor • Jason Leep, Realtor • Four Corners Construction, Developer • Dave Osterman, Developer • Jason Basye, Realtor • Bill Elfland, Realtor • Brett Tudsburry, Realtor SUMMARY OFAPPRAISAL PROBLEM Rona Sanchez and Jeff Harmon provided me the maps and aerial photographs of the subject property that depicts the existing natural gas pipeline easement area, the area being abandoned, the area proposed for new or relocated easement, and the temporary work space area. The existing easement area is .67 acres, the new or relocation easement area .87 acres, and the abandonment area is .84 acres. The temporary work space area is 3.84 acres. The following maps and aerial photographs depict this realignment project. The proposed relocated or new easement area and the abandoned areas are generally along the south property boundary where it adjoins a parcel of land owned by the State of Montana. There are several old J. Michael Joki, MAI, SRA HELENA, MONTANA 12 building improvements on the subject property however they are not impacted by this project nor do they provide any contributory value to this property. This land is currently being farmed so the only site improvement that will potentially be impacted is the lessee's crop and that is dependent on what time of the year the actual construction of the project takes place. The property owner will be compensated for the loss of their property rights in the new easement area, however they will gain all of their rights back in the abandonment area. It is Northwestern Energy's intent to make the property owner whole after this project is completed and the new natural gas pipeline easement is in place. The "before" condition is based on the "as is" condition of the subject property, reflecting current zoning, 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 natural gas pipeline 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 of market value. 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 but as encumbered with existing easements as of December 15, 2015. 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 property which is the subject matter of this appraisal report consists of four tracts of land that total 85.35 acres and are located at the north end of N. 7th Avenue where it transitions into Frontage Road in Bozeman, Gallatin County, Montana. The legal description of the land is as follows : " Tractl — A, Tract 2 — A, Tract 3 — A and Tract 4-A of Certificate of Survey No. 2153, situated in the NW 1/4 of Section 36, Township 1 South, Range 5 East, Gallatin County, Montana." J. Michael Joki, MAI, SRA HELENA, MONTANA 13 HISTORY OF THE PROPERTY The City of Bozeman purchased the four tracts that comprise the subject property from the Mandeville family in 2003. Brit Fontenot reported to me the city of Bozeman paid $3,000,000 for this property in 2003. As I understand it was the intent of the city of Bozeman to purchase this land for a transfer station site. Then the city tried to gain better legal access to the property and subdivide the property into multiple lots for development with light industrial use. Craig Campbell with DNRC explained that access agreements with the City of Bozeman were reached that would have provided access to the subject property over land owned by the State of Montana that lies directly to the south of the subject property. Apparently the access agreement was subject to several conditions being met, however the access agreement had expired, and at that point in time the only legal access to the subject property was from Red Wing Drive along the north property boundary. The preliminary plat showing the subject property divided into 22 light industrial lots was provided and a copy is included in the addenda. This North Park conceptual use plan shows the subject property being developed in conjunction with the DNRC land to the south. A listing price per se is not shown on this document. In 2014 I confirmed with Dustin Johnson at the City of Bozeman Engineering Department that approval of this conceptual subdivision was subject to legal access being obtained over the DN RC property to the south and several other conditions. Prior to starting this appraisal assignment I was provided a copy of the two right-of-way deeds that grant the City of Bozeman public access to the subject property from Wheat Drive and Flora Lane over the State of Montana (DNRC) land directly to the south. Both of these documents recorded on August 24, 2015 and are included in the addenda. On December 22, 2015 I spoke with Shawn Kohtz at the City of Bozeman Engineering Department and he confirmed the North Park Master Site Plan has been submitted and approved. This approval allows the developer to construct Wheat Drive however that is subject to the conditions outlined by the City of Bozeman Development Review Committee. The developer has not constructed Wheat Drive yet and is under no obligation to do so until they elect to implement the North Park project. Currently the subject property is leased to Bill Tatarka who farms this land and the adjoining DNRC land to the south. A copy of the year to year lease agreement is included in the addenda. Also in the addenda is a copy of the utility easement provided to me by Brit Fontenot that provides access to a cell tower on the subject property. The cell tower is also subject to an annual lease agreement but a copy of this lease agreement was not given to me. A copy of the buy -sell agreement dated January 27, 2014 is also included in the addenda. Micropolitan Enterprises, LLC and Powder River Company and/or assigns has offered $1,280,550 for the subject property. A copy of the buy sell agreement, counter offer and addendum's to the buy -sell agreement are included in the addenda. I recently confirmed with Brit Fontenot that an extension was signed for the buy -sell agreement and therefore it is still a binding contract. J. Michael Joki, MAI, SRA HELENA, MONTANA 14 F— REGIONAL MAP Bozeman -/ .v - 03 � 1 Salmon _ t^ Grasshopper Gloeier - Challls i-N`elYYrr. .-r -�_"•�� i 14 1 Worlantl / I zos ._'Rexburg n, t � G1aPer Data use subject to license. illi © 2004 Del_orme. Street Atlas USA® 2005. O 16 32 48 64 80 vwvw.delorme.com MN (0.0" W) Data Zoom 6-2 J. Michael Joki, MAI, SRA HELENA, MONTANA 0161 Street Atlas USA€92005 1 -Shaunavon I t 1 I Gfaci —a— ar 1 , ��tNttforth �(3lncisr .—.-I »t �s•non I I I Glacier ev _ z _ d,, HI -11 �. ,.,� .Roc ©ovel'onn'en allspell � - � Fc e�,:nan inaAn Pdlson- _ ae rest Falls Mc Hold GI—,.r v Glad 93 / f - Missoula-' �5`.. 1 Helena 10A eAn. oonda r orvq ,per Bozeman -/ .v - 03 � 1 Salmon _ t^ Grasshopper Gloeier - Challls i-N`elYYrr. .-r -�_"•�� i 14 1 Worlantl / I zos ._'Rexburg n, t � G1aPer Data use subject to license. illi © 2004 Del_orme. Street Atlas USA® 2005. O 16 32 48 64 80 vwvw.delorme.com MN (0.0" W) Data Zoom 6-2 J. Michael Joki, MAI, SRA HELENA, MONTANA 0161 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 J. Michael Joki, MAI SRA HELENA, MONTANA 16 industrial development. This growth significantly slowed in 2009 and 2010 which was being seen all throughout 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 J. Michael Joki, MAI, SRA HELENA, MONTANA 17 2,000 students in part time work. In the fall of 2,013 the student enrollment at MSU was slightly over 15,000 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 anew 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. J. Michael Joki, MAI, SRA HELENA, MONTANA w 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 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 J. Michael Joki, MAL SRA HELENA, MONTANA W commissioners are staggered and the candidate who receives the most votes in an election becomes the mayor the last two years of their term. 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 20 NEIGHBORHOOD DATA & ANALYSIS The subject property is located at the northern edge of the Bozeman city limits and lies between Interstate 90 and N. 7th Ave. where it transitions into Frontage Road. The subject property is annexed into the city limits and zoned M-2 and is one of the largest industrial zoned vacant sites in the city of Bozeman. This site is adjacent to Frontage Road and N. 7th Ave. which is one of the main transportation routes between Bozeman and Belgrade, and for those who live in the valley north of Frontage Road. North 19th Avenue lies just to the west and across Interstate 90. The I-90 interchanges in direct proximity to the subject property are at N. 7th Ave. and N. 19th Ave. A new interchange was recently completed several miles to the west in front of the Bozeman — Yellowstone International Airport. There are railroad tracks that pass through Belgrade and parallel Interstate 90 to approximately N. 19th Ave. and then he between the subject property and Frontage Road, and then pass beneath N. 7th Ave. and continue through the northeastern edge of Bozeman. Reportedly there are approximately 25 trains a day passing the subject property. This rail line offers rail spur possibilities for those light industrial and manufacturing properties in this neighborhood. To the north/northwest of the subject property there are a number of residential subdivisions and the Riverside Country Club. To the west and across Interstate 90 is N. 19th Ave. which is heavily developed with many of Bozeman's newest retailers, restaurants, banks etc. and is also the location of most of the newer big box stores. On N. 7th Ave., to the south of the subject property, this area is also densely developed with commercial properties including hotels, restaurants, grocery stores and other retail. To the south and adjacent to the subject property is the land owned by the State of Montana(DNRC). This land, in conjunction with the subject property, is the location for the conceptual J. Michael Joki MAI SRA HELENA, MONTANA 21 North Park Development. As previously explained in the Property Histoiy the application for the master site plan has been approved which allows the developer to construct Wheat Drive however that is subject to conditions outlined by the City of Bozeman Development Review Committee. For years this conceptual plan never "took hold" in this market however the developer is now taking steps towards developing this light industrial land. From this neighborhood other areas in Bozeman can easily be accessed. N. 7th Ave. is one of the main north/south travel routes through Bozeman and it provides direct access to downtown Bozeman to the south or the valley to the north. In recent years N. 19th Ave. has become densely developed and is another main north/south travel route through Bozeman and provides good access to the western end of Bozeman and leads directly south to the Montana State University campus. Nearly all of the primary east/west traffic streets pass through N. 7th Ave. and N. 19th Ave. Many of the long time farm and ranch operations that were located between Bozeman and Belgrade have been developed into residential subdivisions. There is still farmland in this area however it is becoming more developed into residential use as demand for this property type is strong again. I expect commercial development will continue where land is available near N. 19th Ave. or along W. Main St./Huffine Lane and towards the Four Corners area. City water and sewer service are readily available throughout this neighborhood. Natural gas and electricity is provided throughout the area by Northwestern energy. I expect demand for commercial property in this neighborhood will remain strong. There are clusters of light industrial property to the southeast of the subject property that historically have been slow to develop. There are areas around the fringe of Bozeman and Belgrade, and near the Four Corners area, that are more conducive to light industrial development because the land prices are cheaper. Land values near the subject property have reached a level that make the financial feasibility of a light industrial development challenging in this area. Overall I expect the market conditions to remain strong in the Bozeman/Belgrade market and this neighborhood is well situated to receive some of the new growth that is under way in this community. Most likely market values will appreciate accordingly and this trend is consistent with surrounding neighborhoods in Bozeman. J. Michael Joki, MAI, SRA HELENA, MONTANA 22 PLOT PLAN J. Michael Joki MAI SRA HELENA, MONTANA 23 PROPERTYDESCRIPTIONBEFORE REALIGNMENT Site Si-Ze: Shape: Topography: Soil Conditions: Easements: OF THE EASEMENT As shown on the facing page the subject property is comprised of four tracts of land. Tract 1-A is 22.22 acres, Tract 2-A is 10.01 acres, Tract 3-A is 24.76 acres Tract 4-A is 28.36 acres. These total 85.35 acres. There is an existing easement area for the natural gas pipeline on these tracts that was provided to me by Jeff Harmon and is .67 acres. Irregular Most of this land is level. There are areas that are elevated slightly above Red Wing Drive. Near the center of the site and just east of the building improvements is Mandeville Creek, a seasonal creek, that passes through the center of the subject property in a general north/south direction. This seasonal creek has created an area of high groundwater and/or a wetland area. I confirmed the general location of the creek/wetland area with Brit Fontenot because at the time of my site inspection this land was under heavy snow cover. I was provided a copy of the Phase 1 Environmental Assessment and Engineering Report that was completed for either the City of Bozeman or the State of Montana. It was concluded in this document that no significant impacts were found that would adversely affect the subject property. I have relied on this document as being accurate as it is considered in my final market value estimates. As mentioned above there is an existing natural gas pipeline easement on the subject property that is .67 acres. This easement was imposed a number of years ago. Within this pipeline easement the property owner gave up nearly all or 95% of their property rights in the easement area. The impact of the existing easement is shown at the end of the Land Valuation Section of this appraisal report. Also, as shown on the facing page the Yellowstone Pipeline Company gas easement passes J. Michael Joki, MAI, SRA HELENA, MONTANA 24 through the center of the subject site in a general east/west direction. Access: Recently the City of Bozeman was granted legal access to the subject site over the adjoining land to the south that is owned by the State of Montana (DNRC). This access can be gained from either Wheat Drive or Flora Lane however neither of these streets have been constructed as of the effective date of this appraiser report. A copy of the Right of Way Deeds granting this access is included in the addenda. Prior to the City of Bozeman being granted the above referenced access this land was being accessed from Red Wing Drive that parallels the north/northeast boundary. This unimproved and un -maintained road is between the subject property and the railroad right-of-way. Red Wing Drive can be accessed from N. 7th Ave. near the subjects SEC or from Frontage Road near the subject's NWC. Neither of these intersections for Red Wing Drive has a traffic light. Access at the Frontage Road intersection requires travel over the railroad tracks /railroad right-of-way and this is not a gated crossing. A copy of the October 19, 1925 document wherein Northern Pacific Railway company is granting Gallatin County, Montana access over this crossing was provided to me by Brit Fontenot. As explained to me by Mi. Fontenot and as shown in this document access over the railroad tracks/railroad right-of-way can be denied by the railway company with six months notice. It is apparent both of these intersections for Red Wing Drive would need a significant amount of improvement before they could be considered as ingress/egress for a multi -lot development on the subject property. Obviously if the subject property becomes developed the recently granted access from Wheat Drive and Flora Lane will have to be developed and used as the primary points of ingress/egress. Utilities: In the addenda there is an aerial photograph showing the location of city water and sewer service on the subject property. On this photograph there is a blue line crossing through the eastern 1/4 of the subject property in a north -south direction. As confirmed at the City of Bozeman Engineering Department this line depicts the location of the city water and sewer services. The sewer line is a transmission main only and can only serve land to the east of the sewer line so the western 75% of the subject property currently has no sewer service. City water lines are in the same location and could serve one building on this property however a second feed would be required to serve the remainder of the site if this property is ever developed into multiple lots. J. Michael Joki, MAI, SRA HELENA, MONTANA 25 Natural gas and electrical service are provided to the subject site by Northwestern Energy. FulrctionalAdequag: Currently the subject property is being leased to a local farmer who grows wheat on this property. For this use, the historical access from Red Wing Drive, this sites topography, and this sites size (when coupled with the adjoining land to the south) serves well for an agricultural use. Now strides are being taken towards developing this land with light industrial lots and one of the first issues that had to be resolved was securing legal access from Wheat Drive and Flora Lane which has been completed. Even though neither of these streets have been constructed the Master Site Plan application for the North Park Development is approved with the city however the developer is under no obligation to construct the streets until they elect to implement this project. As a developer takes this land to the next level of development several challenges may present themself. Mandeville Creek is a seasonal creek that has created an area of high groundwater/wetland. The Yellowstone Pipeline Company gas easement crosses through this site in an east/west direction and like Mandeville Creek it will exclude some of the land from being developed. One other issue has arise since I last appraised the subject property which involves an eagle's nest on the State of Montana (DNRC) land directly to the south. I have been provided a copy of an aerial photograph that depicts the location of the eagle's nest and shows the recommended distance buffers for potentially disturbing activities. I was also provided a copy of the Montana Bald Eagle Management Guidelines and both are included in the addenda. I spoke with Craig Campbell from DNRC at length about this matter and Mr. Campbell explained that DNRC is currently working with Montana Fish Wildlife and Parks to obtain a "Take Permit" for the eagle's nest. It is my understanding a take permit removes the liability of making an eagle leave its nest if certain activities on the applicant's land provides a disturbance which causes the eagle to leave it's nest. As Craig Campbell and I discussed there are approximately 15 active businesses relatively close to the eagle's nest, a cell tower within 50', and the DNRC land where the eagle's nest is located is J. Michael Joki, MAI, SRA HELENA, MONTANA 26 currently being farmed in conjunction with the subject property. These are all examples of nearby activities that may or may not play a role in an eagle leaving its nest. Reportedly one of the other real issues concerning an eagle is it's mortality let alone disturbance of a nest site. This eagle's nest is within 500' of Interstate 90 which apparently can play a big role in eagle mortality. As shown on the aerial photograph in the addenda approximately the south half of the subject property is impacted by the recommended distance buffer from the eagle's nest. It was Craig Campbell's opinion to complete the take permit process will require several months and the earliest the permit may be finalized is Spring of 2016. As previously mentioned the take permit would remove liability of the applicant if the eagle were to leave its nest because of disturbing activities on the applicant's land. Craig Campbell did point out that the recommended distance buffer certainly encumbers the south half of the subject property and it does present a burden to the developer of this land however it appears to be temporary in nature. Essentially if the land is developed without a take permit then the developer may have to accept the liability pertaining to the disturbance of the eagle's nest. Craig Campbell and Brit Fontenot both confirmed to me Murdoch's Home and Ranch Supply store currently has a new construction project underway and reportedly they are well aware of the eagle's nest location. However they have decided to continue with their construction project even though they are less than 1/2 mile from the eagle's nest. From all the information I have gathered it is my opinion the location of the eagle's nest and the recommended distance buffer does burden the subject property but only on a temporary basis. The take permit process is well under way with Montana Fish Wildlife and Parks and if this permit were denied a developer could continue with their project however they would have to accept the liability pertaining to the eagle's nest. However, with approximately 15 nearby businesses, the land beneath and around the eagle's nest currently being farmed, and the proximity of Interstate 90 proving liability that will show a disturbance that caused an eagle to leave its nest to just one of these land owners could be difficult. J. Michael Joki, MAL SRA HELENA, MONTANA 27 One other aspect pertaining to this issue that Craig Campbell and I discussed are the role of the underlying land owners. The State of Montana owns the land beneath the eagle's nest and the subject property is owned by the City of Bozeman. Because both of these landowners are public entities the eagle's nest has drawn a heightened level of attention. Worst-case scenario the eagle's nest may present a burden to further develop this land if it is found to be feasible, but this would only be on a temporary basis until the take permit process is completed or the developer wants to accept the potential liability for the disturbance of an eagle's nest. For these reasons, it is my opinion the eagle's nest does not adversely affect the market value of the subject property. Nuisgrrces orHA�Zards: To the south of the subject property the land is owned by the State of Montana and is currently undeveloped and being farmed in conjunction with the subject property. Directly to the north/northeast is the railroad right of way. Nearby development includes residential, small businesses and a variety of retail stores. The very southwest corner of the subject property is adjacent to Interstate 90 and the N. 19th Ave. commercial corridor is just beyond to the west. These uses are typical to this mixed use commercial /light industrial area that is at the northern fringe of the Bozeman city limits. None of the surrounding uses adversely affect the market value of the subject property. Site and Building Improvements There is some old fencing on-site and several old farm buildings on the south side of Red Wing Drive. These improvements were given no value when the City of Bozeman purchased this property in 2003 and currently see very little use. These improvements appear to be almost fully depreciated. Therefore, the fencing and building improvements have been given no value in this appraisal report. It should be noted at the time of my site inspection the ground was under heavy snow cover. J. Michael Joki, MAI, SRA HELENA, MONTANA 28 SUBJECT PROPERTYPHOTOGRAPHS Looking northwest on Red Wing Drive. Subject property is on the left and the railroad right of way is on the right. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. Taken from the north boundary and looking south over the subject site. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 29 SUBJECT PROPERTYPHOTOGRAPHS Building improvements. Photograph taken December 15, 2015 by J. Michael Jori, MAI, SRA. Photograph shows the railroad tracks along the north boundary and the Frontage Road underpass in the distance. Photograph taken December 15, 2015 by J. Michael Jori, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA MIC SUBJECT PROPERTYPHOTOGRAPHS Photograph taken from Frontage Road and looking south at Red Wing Drive. To access the subject property from this location requires crossing the railroad tracks. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. Intersection of North 7th Avenue and Red Wing Drive. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 31 SUBJECT PROPERTYPHOTOGRAPHS Photograph taken from Mandeville Street and looking north at the Wheat Avenue public access easement area on the land owned by the State of Montana. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. I Photograph taken from the end of Flora Lane and looking north at the area where this public access easement will cross over the land owned by the State of Montana. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 32 SUBJECT PROPERTYPHOTOGRAPHS A- Taken from near the center of the site and looking west towards I-90. The Yellowstone Pipeline Gas easement marker is shown. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. Photograph taken from the south boundary and looking north over the subject site. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI, SRA HELENA, MONTANA 33 ZONING The subject site is zoned M-2 (Manufacturing and Industrial District). The intent of this district is to provide for heavy manufacturing and industrial uses, servicing vocational and employment needs of city residents. Typical uses in the M-2 zoning district are automobile sales and service, automobile repair, hotel or motel, laboratory, light manufacturing, manufacturing and industrial use, truck, bus and rail terminal facilities, trade schools, warehousing etc. As shown in the copy of the zoning ordinance in the addenda there are additional conditional uses and accessory uses allowed by this zoning ordinance. Also shown in the document are the lot coverage/floor area ratios, minimum lot width, setbacks and minimal building height requirements. J. Michael Joki, MAI, SRA HELENA, MONTANA 34 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. Legally Permissible The subject property is zoned M-2 (Manufacturing and Industrial district) and this zoning ordinance allows for a wide range of uses however this type of land is primarily intended for development with light industrial, industrial and manufacturing uses. Several of the use classifications previously discussed can be eliminated from consideration. Residential and recreational use are not allowed by this zoning ordinance and therefore they can be eliminated from consideration. Some forms of commercial use are a legally permissible use in the M-2 zoning district however there is land in Bozeman that has better access and visibility , and is better located for commercial development with a typical retail or office use. Therefore, this use can also reasonably be eliminated from consideration. This leaves agricultural and industrial use as the remaining uses in this district. 1 The Dictionary of Real Estate Appraisal, 5t1i ed., s. v. "highest and best use". J. Michael Joki, MAI, SRA HELENA, MONTANA 1931 Physically Possible Historically this land has been in an agricultural use. In 2003 the City of Bozeman purchased this land with the intent to use as a transfer station site however it was determined this was not the best location or use of this property so it was being marketed as a potential light industrial development in conjunction with the DNRC (State of Montana) land to the south. For several years the marketing efforts never found a developer or buyer for this project and this land remained in an agricultural use. On January 27, 2014 a buy -sell agreement for the subject property was completed. As I understand the intent of the buyers is to develop the subject property into light industrial lots in conjunction with the DNRC land to the south. The one issue that has hampered development of this land over the years is its access from Red Wing Drive at either the N. 7th Ave. or Frontage Road intersection. Trying to design access from either of these locations that would meet city and state standards was eliminated when public access easements were granted to the City of Bozeman from Wheat Avenue and Flora Lane to the south and over the adjoining DNRC land. Even though neither of these streets have been built, and their development will be subject to the conditions outlined by the City of Bozeman Development Review Committee, the subject property is one step closer to being developed with a light industrial use. As previously explained in the functional adequacy section of this appraisal report the eagle's nest located on the DNRC land directly to the south could temporarily delay development of this land but a developer could just accept the liability associated with the potential disturbance of the eagle's nest and continue to develop the land. Therefore, an industrial use is not only legally permissible but it is one step closer to being physically possible. Financially Feasible Bozeman has been experiencing strong growth again and particularly in the past three years. The city of Bozeman is naturally expanding to the north and west and the subject property is in direct proximity to some of the most recent development along the N. 19th Ave. corridor which lies directly across Interstate 90. To the best of my knowledge the financial feasibility of the conceptual North Park Development which includes the subject property and the DNRC land to the south was never put to test per se. As previously mentioned one of the primary hurdles of this development was gaining better access which has been accomplished. The Master Site Plan application for this development is approved with the city of Bozeman however this development is by no means in its final stages of approval. J. Michael Joki, MAI, SRA HELENA, MONTANA 36 Most likely development of the subject site would be relatively expensive when considering extension of city services, development of roads and the cost of the City of Bozeman impact fees. A light industrial development at this location also has the potential of a long holding/sellout period and I suspect the development expenses would be difficult to overcome considering the price of a typical light industrial lot near this location. Maximally Productive The use that conforms with the requirements of the first three tests is for an interim agricultural use until it is feasible to develop this land to a higher and better use which could be for a light industrial development. 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 could be for a light industrial use, however in the interim it is likely the land will remain in an agricultural use until development with a higher and better use can be justified. 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 Nvho 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 most likely be purchased by a speculative investor who would purchase the subject property and develop it to its highest and best use when it is found to be feasible. J. Michael Joki, MAI, SRA HELENA, MONTANA 37 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 only land is being valued. The remaining building improvements on this land do not provide any contributory value not are they impacted by this project therefor 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 J. Michael Joki, MAI, SRA HELENA, MONTANA 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. 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. J. Michael Joki, MAI, SRA HELENA, MONTANA 39 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 December 15, 2015. Bozeman was experiencing significant decline 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 outweighing its supply. I will utilize four comparables in the following analysis with two sales closing in 2012, one sale closing in 2014, and one sale closing in 2015. 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 people I interviewed were consistently of the opinion that value of unimproved sites, particularly those with a highest and best use for multi family, have conservatively appreciated 20% since 2013 and at least 30% since 2012. To provide some support to the information given to me in the 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. Comparable #1 and #2 sold within 16 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. I will rely on the information I received during my interviews and will apply the aforementioned appreciation adjustments to comparable #3 and #4. 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 J. Michael Joki, MAI, SRA HELENA, MONTANA 40 mathematical precision. The adjustments included in the qualitative analysis are location, size, access, topography, creek/wetland, city services and zoning. The land sales adjustment grid can be seen on the following page. J. Michael Joki, MAI, SRA HELENA, MONTANA 41 LAND SALE LOCATIONMAP J. Michael Jold, MAI, SRA HELENA, MONTANA 42 O g .� cv 0 O 0 oro d O r O w r v CJ Do zW v O CU 5 ' q ° 3 d d O °O r M Q C oo ° w U JIz N F+ tt361, .b VJ N v N (% N O °o r O r �» �y° O O v v v O 0 'C v C ° O C 0 'C c -i ^ v u C C a z z w C zcj) w C w C 1 r � v) O z O O W p oo O O p O H C oro O Ci y G ' 0 cS 2 g C p p � Pa b c� a a %Oi a X, O C . N tt3 t13 ° 'Cpp Do V) v pp V � N 0 w o uBu c� a �' ca M vi y v y, v b w r] CO oo W oo y b y v O c b U v7 d b b C cn w w w U •�'+ p C� � O N � «U+ ° « cC a � N a y y ed a � c ev a \ m e3 a U cn cC a co a � y y cn in G a A b b O a O U �n O U U 6 O u O H O U w u O u v O u O N O v O Sales Analysis: The subject property is an 85.35 acre site that is located at the northern fringe of the Bozeman city limits where N. 7th Ave. transitions into Frontage Road. Currently there is unimproved access from Wheat Avenue and Flora Lane but even upon completion of these roads this will be a circuitous route to access the subject property. North 7th Ave. and Frontage Road are still the major traffic streets abutting the subject property but access from these roads will have to be significantly improved before it could be utilized for a higher density development. The subject property has limited Interstate 90 exposure. Even though the subject property has M-2 zoning its interim use is agricultural. Mandeville Creek passes through the eastern 1/3 of this site which has created some low-lying land or wetland area. A city sewer transmission main serves the eastern 25% of the subject property but the western 75% currently has no server service. A city water main crosses thru the subject property next to the sewer transmission main but could only serve a portion of the property and a second feed would be required to develop the entire property. The Yellowstone Pipeline Company gas line easement passes through the subject property in an east/west direction which also creates some limitations to the future development of this property. Comparable No. 1 is a 79.87 acre site that sold on July 24, 2014 at $2,000,000 or $25,041/acre. This sale does not require a market conditions adjustment. Comparable No. 1 is located at the western fringe of the Bozeman city limits which is considered to be a slightly inferior location when compared to the subject property. Comparable No. 1 has superior access and there are no wetland issues on this property. When this sale closed it was annexed into the city limits and adopted a zoning ordinance that allowed for public use. On an overall basis Comparable No. 1 is considered to be superior to the subject property. Comparable No. 2 is the recent sale of a 122.48 acre site that sold for $1,650,000 or $13,472/acre. This sale does not require a market conditions adjustment. Comparable No. 2 is located west of the Bozeman city limits which is considered to be an inferior location when compared to the subject property. Access to Comparable No. 2 is also rather circuitous and is considered to be similar to the subjects access. Comparable No. 2 has a significant amount of I-90 frontage but is not close to an interchange. There are no wetland area issues on this comparable which is this sales only superior aspect when compared to the subject property. J. Michael Joki, MAI, SRA HELENA, MONTANA 44 Comparable No. 2 is a larger site than the subject property and it has no city services. Reportedly this is a speculative development piece of land with plat approval for 177 residential lots that is good through 2017 and apparently this land is being held by the buyers and will not be developed immediately. Comparable No. 3 is the sale of a 54.28 acre site that sold on October 1, 2012 at $800,000 or $14,738/acre. The time adjusted price is $19,160/acre. This sale is located on the western fringe of the Bozeman city limits and is a slightly inferior location when compared to the subject property. Comparable No. 3 has good access from the west side of Davis Lane which is superior to the subjects access. Baxter Creek crosses through this site and it was estimated that 24 of the 54 acres, or 44%, is not developable because of the wetland issues. This site is zoned R-3 and R-4 which has higher demand and higher density development potential than the subjects M-2 zoning. City water and sewer service are adjacent to this site. When compared to the subject property Comparable No. 3 has slightly superior access and superior zoning. However Comparable No. 3 has a slightly inferior location and there is more land affected by wetland which allows for less land to be developed. Overall Comparable No. 3 is considered to be similar to the subject property. Comparable No. 4 is the sale of the 78.06 acre site that sold on November 20, 2012 for $1,050,000 or $13,451 /acre. The time adjusted price is $17,487/ acre. Comparable No. 4 is also located on the western fringe of the Bozeman city limits and as compared to the subject property is considered to be a slightly inferior location. Comparable No. 4 has slightly superior access from Durston Road. Baxter Creek crosses through most of this property and because of the setback requirements from the creek there will be challenges and potentially higher development costs will be realized when the site is developed. This site has a single family residential — low density zoning which is considered to be similar to the subject property. City water and sewer service are adjacent to this site. Comparable No. 4 has slightly superior access when compared to the subject property but it has a slightly inferior location and there appears to be more water issues on this property. Overall this sale is considered to be similar or slightly inferior when compared 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. J. Michael Joki MAI SRA HELENA, MONTANA 45 BRACKETING THE SUMECT PROPERTY Comparable Adjusted Price Per Acre Overall Comparability 1 $25,041 Superior 3 $19,160 Similar Subject Property 4 $17,487 Slightly Inferior 2 $13,472 Inferior These comparables range in price from $13,472/acre to $25,041/acre with a median price of $18,790/acre. As shown in the chart above the most similar comparable is Comparable No. 3 which shows a price of $19,160/acre. I have given additional emphasis to comparable No. 1 and No. 2 because they are the most recent sales used in this analysis and also have many similarities when compared to the subject property. Considering this information it is my opinion the current market value of the subject site is $19,500/Acre. As previously explained there is an existing natural gas pipeline easement on this land that totals .67 acres. In my opinion the property owner has very little or 5% of their property rights remaining in this area. The existing natural gas pipeline easement is .67 acres and the un -encumbered area of the subject property is 84.68 acres. The value of the subject property is as follows: 84.68 acres x $19,500/acre = $1,651,260 .67 acres x $19,500/acre x 5% = $653 Total $1,651,913 J. Michael Joki, MAI, SRA HELENA, MONTANA 46 MAP DEPICTING THE EASEMENTAREA J. Michael Joki, MAI, SRA HELENA, MONTANA 47 SCOPE OF THE PROJECT AND ITS AFFECT ON THE SUBJECT PROPERTY The intent of this project is to realign a natural gas pipeline easement that crosses through the southern and western end of the subject property. This appraisal assignment addresses a partial acquisition of the subject site and an abandonment of an existing easement in 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. The facing page is sheet 1 of 2 for the proposed realignment project. Sheet 2 of 2 is in the addenda. As shown on these sheets the new or relocated easement area is .87 acres. The temporary construction or work space area is shown at 3.84acres. Also shown on these sheets is the abandoned easement area of .84 acres. I spoke with Brit Fontenot prior to my site inspection and Mr. Fontenot did not have concerns or issues with this project. At the time of my site inspection I did not see any site improvements that will be impacted by this project but as previously mentioned the ground was heavily snow covered when I was on site. Obviously some natural vegetation and grass will be impacted and possibly some of the lessee's crop (i.e. wheat crop) could be impacted as well. However, since the ground was under heavy snow cover and the site was not staked these items could not be viewed. Jeff Harmon provided me a copy of the preliminary easement agreement (included in the addenda) and further explained that no permanent structures, paved streets, parking lots, trees or bushes are allowed in the Northwestern Energy easement areas. Improvements are not allowed so access and maintenance can occur on the natural gas pipeline. Value of the Easement Jeff Harmon provided me a copy of the preliminary natural gas pipeline easement that will be imposed on the subject property. Since this easement will be for a natural gas pipeline no permanent structures, roads, driveways, vegetation etc are allowed in the easement area. It is my opinion the property owner will lose most of their property rights or 95% of their rights in the easement area once it is place. The proposed new or relocated easement area will be .87 acres. Land value was estimated earlier in this appraisal report at $19,500/acre. Therefore the value of the easement area is as follows: $19,500/acre x .87 acres x 95% = $16,117 J. Michael Joki, MAI, SRA HELENA, MONTANA W3 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: $1,651,913 Total Value of the Easement: $ 16,117 Value of the Remainder, Before: $1,635,796 J. Michael Joki, MAI, SRA HELENA, MONTANA 49 SUBJECT PROPERTYPHOTOGRAPHS Taken from the south boundary and looking east towards the proposed easement. The cell tower is also shown but not impacted. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. Taken from the NWC and looking towards I-90 and the proposed easement area along the west boundary. Photograph taken December 15, 2015 by J. Michael Joki, MAI, SRA. J. Michael Joki, MAI. SRA HELENA, MONTANA all IDENTIFICATION OF THE SITE, AFTER The use of the subject property is essentially the same in the after situation, an interim agricultural use, except the natural gas pipeline easement will be realigned over this land. SITE DESCRIPTIONAFTER IMPOSITION OF THE EASEMENT Typically when imposing an easement on land the site area will not change. However, in this scenario Northwestern Energy is abandoning some of their original natural gas pipeline easement area that is no longer needed because of this realignment project. The area being abandoned is .84 acres which would increase the site area (Fee Simple) to 85.52 acres before considering the new or relocated easement area. The property owner will lose most of their property rights within this new or relocated easement area and will have very little or 5% of their rights remaining once the easement is in place. After this project is completed the size of the land will increase by .84 acres however the access, topography and wetland area all remain the same and the use will also remain the same which is for an interim agricultural use. The temporary construction or work easement area of 3.84 acres will be used only on a temporary basis and the property owner will retain use of all their property rights within this temporary easement area after the project is completed. J. Michael Joki, MAI, SRA HELENA, MONTANA 51 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. Legally Permissible The subject property is zoned M-2 (Manufacturing and Industrial district) and this zoning ordinance allows for a wide range of uses however this type of land is primarily intended for development with light industrial, industrial and manufacturing uses. Several of the use classifications previously discussed can be eliminated from consideration. Residential and recreational use are not allowed by this zoning ordinance and therefore they can be eliminated from consideration. Some forms of commercial use are a legally permissible use in the M-2 zoning district however there is land in Bozeman that has better access and visibility, and is better located for commercial development with a typical retail or office use. Therefore, this use can also reasonably be eliminated from consideration. This leaves agricultural and industrial use as the remaining uses in this district. 2 The Dictionary of Real Estate Appraisal, 5th ed., s.v. "highest and best use". J. Michael Joki, MAI, SRA HELENA, MONTANA 52 Physically Possible Historically this land has been in an agricultural use. In 2003 the City of Bozeman purchased this land with the intent to use as a transfer station site however it was determined this was not the best location or use of this property so it was being marketed as a potential light industrial development in conjunction with the DNRC (State of Montana) land to the south. For several years the marketing efforts never found a developer or buyer for this project and this land remained in an agricultural use. On January 27, 2014 a buy -sell agreement for the subject property was completed. As I understand the intent of the buyers is to develop the subject property into light industrial lots in conjunction with the DNRC land to the south. The one issue that has hampered development of this land over the years is its access from Red Wing Drive at either the N. 7th Ave. or Frontage Road intersection. Trying to design access from either of these locations that would meet city and state standards was eliminated when public access easements were granted to the City of Bozeman from Wheat Avenue and Flora Lane to the south and over the adjoining DNRC land. Even though neither of these streets have been built, and their development will be subject to the conditions outlined by the City of Bozeman Development Review Committee, the subject property is one step closer to being developed with a light industrial use. As previously explained in the functional adequacy section of this appraisal report the eagle's nest located on the DNRC land directly to the south could temporarily delay development of this land but a developer could just accept the liability associated with the potential disturbance of the eagle's nest and continue to develop the land. Therefore, an industrial use is not only legally permissible but it is one step closer to being physically possible. Financially Feasible Bozeman has been experiencing strong growth again and particularly in the past three years. The city of Bozeman is naturally expanding to the north and west and the subject property is in direct proximity to some of the most recent development along the N. 19th Ave. corridor which lies directly across Interstate 90. To the best of my knowledge the financial feasibility of the conceptual North Park Development which includes the subject property and the DNRC land to the south was never put to test per se. As previously mentioned one of the primary hurdles of this development was gaining better access which has been accomplished. The Master Site Plan application for this development is approved with the city of Bozeman however this development is by no means in its final stages of approval. J. Michael Joki, MAI, SRA HELENA, MONTANA 53 Most likely development of the subject site would be relatively expensive when considering extension of city services, development of roads and the cost of the City of Bozeman impact fees. A light industrial development at this location also has the potential of a long holding/sellout period and I suspect the development expenses would be difficult to overcome considering the price of a typical light industrial lot near this location. Maximally Productive The use that conforms with the requirements of the first three tests is for an interim agricultural use until it is feasible to develop this land to a higher and better use which could be for a light industrial develoment. 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 could be for a light industrial use, however in the interim it is likely the land will remain in an agricultural use until development with a higher and better use can be justified. 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 most likely be purchased by a speculative investor who would purchase the subject property and develop it to its highest and best use when it is found to be feasible. J. Michael Joki, MAI, SRA HELENA, MONTANA 54 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 only land is being valued. The remaining building improvements on this land do not provide any contributory value not are they impacted by this project therefor the Cost and Income Approaches to value are not applicable. SITE VAL 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 m 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. Fin ancing.• 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 December 15, 2015. Bozeman was experiencing significant J. Michael Joki, MAI, SRA HELENA, MONTANA 6TI decline 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 outweighing its supply. I will utilize four comparables in the following analysis with two sales closing in 2012, one sale closing in 2014, and one sale closing in 2015. 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 people I interviewed were consistently of the opinion that value of unimproved sites, particularly those with a highest and best use for multi family, have conservatively appreciated 20% since 2013 and at least 30% since 2012. To provide some support to the information given to me in the 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. Comparable #1 and #2 sold within 16 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. I will rely on the information I received during my interviews and will apply the aforementioned appreciation adjustments to comparable #3 and #4. 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, creek/wetland, city services and zoning. The land sales adjustment grid can be seen on the following page. J. Michael Joki, MAI, SRA HELENA, MONTANA 57 LAND SALE LOCA TIONMAP J. Michael Joki, MAI, SRA HELENA, MONTANA m rn Ln d. p W C p" OGD u-i p O M oow 7 O O O v > U b y O v v CZI PQ zW v H y O �f aj a1 r \o o IdQ w �� °o �" � m to Q+ v O .d .�� "�� in C7 cn cn °E to z V v 'O N o cl O cli O v O O v OC O O C 'C ? -_v wC C w O z vTJj w H � i� W oO o o r 00 r 0 d o 0 v N r v o v o va C C7 a z a v° G a r L4 o n n > n cn � U a3 0 V wo ', o c1l fA w W r� m � w v C� 0 O A z P4 > V cd cd a 3 n cn b y q a ul � � a a ed cd cd a a cl c�3 a a U a x H o u u v o a v 8 a w v „ v A o o v o 0 o V H U o V U 0 U 0 N 0 U > O (n cn a C .a U rp U C U H rn Ln Sales Analysis: The subject property is now 86.19 acres after adding the abandoned area. This site is located at the northern fringe of the Bozeman city limits where N. 7th Ave. transitions into Frontage Road. Currently there is unimproved access from Wheat Avenue and Flora Lane but even upon completion of these roads this will be a circuitous route to access the subject property. North 7th Ave. and Frontage Road are still the major traffic streets abutting the subject property but access from these roads will have to be significantly improved before it could be utilized for a higher density development. The subject property has limited Interstate 90 exposure. Even though the subject property has M-2 zoning its interim use is agricultural. Mandeville Creek passes through the eastern 1/3 of this site which has created some low-lying land or wetland area. A city sewer transmission main serves the eastern 25% of the subject property but the western 75% currently has no server service. A city water main crosses thru the subject property next to the sewer transmission main but could only serve a portion of the property and a second feed would be required to develop the entire property. The Yellowstone Pipeline Company gas line easement passes through the subject property in an east/west direction which also creates some limitations to the future development of this property. Comparable No. 1 is a 79.87 acre site that sold on July 24, 2014 at $2,000,000 or $25,041 /acre. This sale does not require a market conditions adjustment. Comparable No. 1 is located at the western fringe of the Bozeman city limits which is considered to be a slightly inferior location when compared to the subject property. Comparable No. 1 has superior access and there are no wetland issues on this property. When this sale closed it was annexed into the city limits and adopted a zoning ordinance that allowed for public use. On an overall basis Comparable No. 1 is considered to be superior to the subject property. Comparable No. 2 is the recent sale of a 122.48 acre site that sold for $1,650,000 or $13,472/acre. This sale does not require a market conditions adjustment. Comparable No. 2 is located west of the Bozeman city limits which is considered to be an inferior location when compared to the subject property. Access to Comparable No. 2 is also rather circuitous and is considered to be similar to the subjects access. Comparable No. 2 has a significant amount of I-90 frontage but is not close to an interchange. There are no wetland area issues on this comparable which is this sales only superior aspect when compared to the subject property. Comparable No. 2 is a larger site than the subject property and it has no city services. Reportedly this is a J. Michael Joki, MAI, SRA HELENA, MONTANA M speculative development piece of land with plat approval for 177 residential lots that is good through 2017 and apparently this land is being held by the buyers and will not be developed immediately. Comparable No. 3 is the sale of a 54.28 acre site that sold on October 1, 2012 at $800,000 or $14,738/acre. The time adjusted price is $19,160/acre . This sale is located on the western fringe of the Bozeman city limits and is a slightly inferior location when compared to the subject property. Comparable No. 3 has good access from the west side of Davis Lane which is superior to the subjects access. Baxter Creek crosses through this site and it was estimated that 24 of the 54 acres, or 44%, is not developable because of the wetland issues. This site is zoned R-3 and R-4 which has higher demand and higher density development potential than the subjects M-2 zoning. City water and sewer service are adjacent to this site. When compared to the subject property Comparable No. 3 has slightly superior access and superior zoning. However Comparable No. 3 has a slightly inferior location and there is more land affected by wetland which allows for less land to be developed. Overall Comparable No. 3 is considered to be similar to the subject property. Comparable No. 4 is the sale of the 78.06 acre site that sold on November 20, 2012 for $1,050,000 or $13,451 /acre. The time adjusted price is $17,487/ acre. Comparable No. 4 is also located on the western fringe of the Bozeman city limits and as compared to the subject property is considered to be a slightly inferior location. Comparable No. 4 has slightly superior access from Durston Road. Baxter Creek crosses through most of this property and because of the setback requirements from the creek there will be challenges and potentially higher development costs will be realized when the site is developed. This site has a single family residential — low density zoning which is considered to be similar to the subject property. City water and sewer service are adjacent to this site. Comparable No. 4 has slightly superior access when compared to the subject property but it has a slightly inferior location and there appears to be more water issues on this property. Overall this sale is considered to be similar or slightly inferior when compared 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. J. Michael Joki, MAI, SRA HELENA, MONTANA C -M BRACKETING THE SUBIECT PROPERTY Comparable Adjusted Price Per Acre Overall Comparability 1 $25,041 Superior 3 $19,160 Similar Subject Property 4 $17,487 Slightly Inferior 2 $13,472 Inferior These comparables range in price from $13,472/acre to $25,041/acre with a median price of $18,790/acre. As shown in the chart above the most similar comparable is Comparable No. 3 which shows a price of $19,160/acre. I have given additional emphasis to comparable No. 1 and No. 2 because they are the most recent sales used in this analysis and also have many similarities when compared to the subject property. Considering this information it is my opinion the current market value of the subject site is $19,500/Acre. As previously explained there is an existing natural gas pipeline easement on this land that totals .67 acres and the new or relocated easement area is .87 acres. In my opinion the property owner has very little or 5% of their property rights remaining in these areas. The existing natural gas pipeline easement is .67 acres, the new easement area is .87 acres, and the un -encumbered area is 84.65 acres. The value of the subject property is as follows: 84.65 acres x $19,500/acre = $1,650,675 .67 acres x $19,500/acre x 5% = $653 .87 acres x $19,500/acres x 5% = $848 Total $1,652,176 J. Michael Joki, MAI, SRA HELENA, MONTANA 62 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: $1,635,796 - $1,652,176 = $-16,380 The negative number shown above is a reflection of the easement area being abandoned so after the project the land owner will have more land in fee title than before the project. Therefore, there is no depreciation to the current fair market value of these tracts. 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 63 RECAPULA TION OF COMPENSATION Value of the acquisition: $ 0 Site Improvements: $ 0 Temporary Construction Easement: 3.84 acres x $19,500/acre x 10% x 1 Year: $ 7,488 New/Relocated Easement: .87 acres x $19,500/acre x 95% $ 16,117 Depreciation of Fair Market Value: None $ 0 Cost to Cure: None Total Compensation as of December 15, 2015 $ 23,605 Compensation, rounded: $ 23,650 Total Compensation: $ 23,650 Lessee Interest: Not applicable LessorInterest. Not applicable J. Michael Joki, MAI, SRA HELENA, MONTANA 64 ADDENDA J. Michael Joki, MAI, SRA HELENA, MONTANA 2522521 ClIheryryrllIllolnnte Mtll((s O1Galia0in 0 2 lu'28tY10'QMTM Fee: E28ISC Right of Way Application No. 16720 Affecting a 60 -foot strip through E2SW4, W2SE4, Sec. 36, Twp. 1S. Rge. 5E Gallatin County, Montana EASEMENT NO. D-15258 RIGHT OF WAY DEED IN THE NAME AND BY THE AUTHORITY OF THE STATE OF MONTANA TO ALL TO WHOM THESE PRESENTS SHALL COME: Know ye that the State of Montana (hereinafter referred to as "Grantor"), in consideration of the sum of Sixty Seven Thousand Seven Hundred Twenty Nine and No/100 Dollars ($67,729.00), now paid, grants to City of Bozeman (hereinafter referred to as "Grantee") a right of way upon and across State lands for a public access road, known as Wheat Drive, including utilities, as follows: A 60 -foot strip through E2SW4, W2SE4, Section 36, Township 1S, Range 5E, Principal Meridian Montana, Gallatin County, Montana, as shown and depicted on the Exhibit attached hereto and made a part hereof and containing 3.76 acres, more or less. The grant of this easement is subject to the following conditions: The Grantee shall comply with the Montana Antiquities Act, Title 22, Chapter 3, MCA. In particular, Sections 22-3, Parts 4 and 8. It is also agreed that the Grantee shall comply with such rules or regulations as may be hereafter imposed by the State Board of Land Commissioners to insure that the environment will be adequately protected and the public health and safety not be endangered. The Grantee shall be responsible for controlling any noxious weeds introduced by Grantee's activity on State-owned land. The Grantee's methods of control must be reviewed by the,Grantor's Area Field Office that has jurisdiction for that locale. The Grantee shall comply with the Montana County Noxious Weed Management Act, Section 7-22=2101 MCA, as follows: The Grantee shall notify the local weed board that is responsible for that geographical area that the project is located in. If the Grantee disturbs vegetation for any reason, Grantee shall be required to revegetate the disturbed area. The Grantee shall submit to the local weed board a written plan specifying the methods to be used to accomplish revegetation. The plan must describe the time and method of seeding; fertilization, recommended plant species, use of weed -free seed, and the weed management procedures to be used. This plan is subject to approval by the local weed board, and therefore must be signed by the chairman of the board. It is further agreed by the Grantee that Grantee shall backfill, grade and revegetate all disturbed areas that are not part of the road 2522521 Page 2 of 4 08/24/201 5 02:28:10 PM surface to the satisfaction of the State. If the first seeding of compatible grass species does not germinate to the satisfaction of the Department, the Grantee may be required to reseed in those areas open to erosion and weeds. Upon termination of this easement, Grantee shall reclaim the entire area in accordance with this paragraph. Provided, further, that the right of way deed granted herein shall be assignable by Grantee only with the written approval of the Director, Department of Natural Resources and Conservation. Provided, further, that permission must be obtained in writing, from the Director, Department of Natural Resources and Conservation, prior to the construction of any improvements on the right of way herein granted. Provided, however, that the right of way granted herein is not exclusive and Grantee shall not interfere with the Grantor and its successors, assigns, lessees or other parties authorized to use State lands, in their right, at all times to go upon, cross and re -cross the land covered by said right of way and any road thereon, at any point, for any and all purposes in a manner that will not unreasonably interfere with the rights granted to the Grantee. Provided further that the Grantee agrees that it shall indemnify and reimburse the State of Montana for all future assessments made upon Section 36, Township 1S, Range 5E, Gallatin County, pursuant to Title 7, Chapter, 12, MCA for the creation or maintenance of a rural improvement district or special improvement district. This condition shall apply only so long as the lands are held by the state or until waived in writing by the state. Provided further, the Grantee shall provide an "as built" survey upon completion of Wheat Drive. Provided, that Grantor may terminate this right of way for a material breach of any of the conditions or provisions of this deed. Before termination, the Board shall give Grantee written notice of intent to terminate and a reasonable period to cure the breach. It is further provided that whenever said lands herein granted as a right of way shall cease to be used for such purpose, the right of way shall terminate upon notice to that effect being given to the said grantee named herein. IN TESTIMONY WHEREOF, the State of Montana has caused these presents to be executed by the Governor, and to be attested by the Secretary of State, and countersigned by the Director, Department of Natural Resources and Conservation, and the Great Seal of the State, and the Seal of the State Board f Lanl Commissioners to be hereunto affixed this iU�% day of (-- A.D. 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Governor of the State of Montana ,"•ATTEST: \' ,T, tl `J Secretary of State Counterssgned by: � ; 1kp ~`. ... . .... ...... . Director, Department of Natural i Resources and Conservation •.a f. nn.n' 2522521 Page 3 of 4 08/24/2015 02:28:10 PM Accepted and Approved: ............. Applicant ........ ......... Printed NAMA 2522521 Page 4 of 4 08/24/201 5 02:28:10 PM SECTION I I \ SEE DETAIL 2 1 1 t j—H i I 1 I I I NE 1/4 SW 1/4 411, /4 SE 1/4 Easement A— 1.11 Aare. ( I Easement Mew M79 Avec Rem index. 38.89 Awe. I Remainder. 39.21 Awas 1 I 1 1 N 58W15 W 762- 1 1 I 1 i —_--I I I 1 Rw300' �+1602'24' L=7&79' SW 7 4 SE 1/4 Easement Mao: 1.62 Acres It 1 Remainder. 311.38 Awa Fa,r--aE TO iW$ >t:a< d svawv W ---.I w1 c. 1` i T_— I ' x aA ae r } I ( I EASEMENT DESCRUMON A 60 fool wWe putdie access and uU[ity easement 30' eithe ode of the tdiorip centerine desv7pUan with the aaecmant aider es foreshortened and t=."ed a neee..ary to pwdld the new easemcm% centvrnK Commeneko at the BouU 7 4 Comer of SwUan 38, Townahp 1 South Range 5 ask FMN WoUn Canty, Nanlona Thence North WW25' East a distance of 196.08; Thence North OW4724' Eoat. o dhtana of 57.- to the true point of boal.I.p of tints casement. GNy a point an the nodh4dy R/W line of Mandeville tont:Thults North 0'31.36' W. o dbtoncs of 300.15; Th—e along a tw4ent .1,Ww Oxus to the kit with a radAls of 300', o eentrwl angle of 14'S6'Or. an oro distance of 7&19;Thena North 152739' West. a dietaries of 699.97; Thence dan9 a U""' eleuiw arve to the right wRh a rod'. of 300.0', a eentroi angle of 1502'24', an we d'rlonoe of 7&7WI Thenea North 02515' Week a d'utonce of 76268': Thenen_ North 02115' Weak o dhtanu of 601.12 Peat ThenceNorth '72' North O40' W, o distance of 9.11' mora or Ieae to the point of temte's of this casement, said Font hinq an the o.st-west midsection Me of sold Section 36, from whits the center 1/4 comer of We section On Sauth 6921'43' Eat. 5.20 Fat. Cantainhy 3.76 Awe. mora w Tau. STATE OF MONTANA. SS. gg COUNTY OF GALLATIN SE t/4 SW t/4 i i\ t N 181997• W ��� M%SCNt, bring lob exam ea>x chat M ie the Prv(e.ebntl FwpN<w Easement Area. 024 Aw<a ( t `•(�, rho mode the plot el fin nylt et ray shown harem; thot the Plot was Remoindr. 34.78 Ava CamUY and acaurowy mad.. that the trar3n9 ar Flat thereof Is tine and oaaurote aha that it awremuy shows the quontRy o/ land requYxd for Ne rtmht of way In each IMy-oaa trxt dr govanvnent tot and tlw the -..1 krd I mabinp in eoah portion ch testy- aci w --t IOL ad.and aeon m before me ties $Ydoy of30D4'S6'03' Notary le for the 4 f Mant7&19' Res9tGtrNy CanmNsion E>@Y<1w=30038' W ``C`P'�lOrlr��SOUTH { COR',SEC. 36 DETAIL t '•9i v ' I/I011m1101U0 TRUE POINT OF BEGINNING i \% N 0* 32f' E 19538�� S } CORNER SECTION36 DETAIL 1 N.T.S. ` PUBLIC ACCESS & I EXHIBIT A I ENGINEERING 2E0ARTMENT I 2522520 Page: i of 4 08/2472015 02:28:10 PM Fee: $28.00 ilatin County MT ISN'111111111� 11111111111111111111�N�IIIIII�MI�IN MISC Right of Way Application No. 16719 Affecting a 60 -foot strip through NE4SE4, Sec. 36, Twp. 1S, Rge. 5E Gallatin County, Montana EASEMENT NO. D-15257 RIGHT OF WAY DEED IN THE NAME AND BY THE AUTHORITY OF THE STATE OF MONTANA TO ALL TO WHOM THESE PRESENTS SHALL COME: Know ye that the State of Montana (hereinafter referred to as "Grantor"), in consideration of the sum of Twenty Seven Thousand Twenty and No/100 Dollars ($27,020.00), now paid, grants to City of Bozeman (hereinafter referred to as "Grantee") a right of way upon and across State lands for a public access road known as Flora Lane, including utilities, as follows: A 60 -foot strip through NE4SE4, Section 36, Township 1S, Range 5E, Principal Meridian Montana, Gallatin County, Montana, as shown and depicted on the Exhibit attached hereto and made a part hereof and containing 1.5 acres, more or less. The grant of this easement is subject to the following conditions: The Grantee shall comply with the Montana Antiquities Act, Title 22, Chapter 3, MCA. In particular, Sections 22-3, Parts 4 and 8. It is also agreed that the Grantee shall comply with such rules or regulations as may be hereafter imposed by the State Board of Land Commissioners to insure that the environment will be adequately protected and the public health and safety not be endangered. The Grantee shall be responsible for controlling any noxious weeds introduced by Grantee's activity on State-owned land. The Grantee's methods of control must be reviewed by the Grantor's Area Field Office that has jurisdiction for that locale. The Grantee shall comply with the Montana County Noxious Weed Management Act, Section 7-22-2101 MCA, as follows: The Grantee shall notify the local weed board that is responsible for that geographical area that the project is located in. If the Grantee disturbs vegetation for any reason, Grantee shall be required to revegetate the disturbed area. The Grantee shall submit to the local weed board a written plan specifying the methods to be used to accomplish revegetation. The plan must describe the time and method of seeding; fertilization, recommended plant species, use of weed -free seed, and the weed management procedures to be used. This plan is subject to approval by the local weed board, and therefore must be signed by the chairman of the board. It is further agreed by the Grantee that Grantee shall backfill, grade and revegetate all disturbed areas that are not part of the road surface to the satisfaction of the State. If the first seeding of 2522520 Page 2 of 4 08/24/2015 02:28:10 PM compatible grass species does not germinate to the satisfaction of the Department, the Grantee may be required to reseed in those areas open to erosion and weeds. Upon termination of this easement, Grantee shall reclaim the entire area in accordance with this paragraph. Provided, further, that the right of way deed granted herein shall be assignable by Grantee only with the written approval of the Director, Department of Natural Resources and Conservation. Provided, further, that permission must be obtained in writing, from the Director, Department of Natural Resources and Conservation, prior to the construction of any improvements on the right of way herein granted. Provided, however, that the right of way granted herein is not exclusive and Grantee shall not interfere with the Grantor and its successors, assigns, lessees or other parties authorized to use State lands, in their right, at all times to go upon, cross and re -cross the land covered by said right of way and any road thereon, at any point, for any and all purposes in a manner that will not unreasonably interfere with the rights granted to the Grantee. Provided further that the Grantee agrees that it shall indemnify and reimburse the State of Montana for'all future assessments made upon Section 36, Township 1S, Range 5E, Gallatin County, pursuant to Title 7, Chapter, 12, MCA for the creation or maintenance of a rural improvement district or special improvement district. This condition shall apply only so long as the lands are held by the state or until waived in writing by the state. Provided further, the Grantee shall provide an "as built" survey upon completion of Flora Lane. Provided, that Grantor may terminate this right of way for a material breach of any of the conditions or provisions of this deed. Before termination, the Board shall give Grantee written notice of intent to terminate and a reasonable period to cure the breach. It is further provided that whenever said lands herein granted as a right of way shall cease to be used for such purpose, the right of way shall terminate upon notice to that effect being given to the said grantee named herein. IN TESTIMONY WHEREOF, the State of Montana has caused these presents to be executed by the Governor, and to be attested by the Secretary of State, and countersigned by the Director, Department of Natural Resources and Conservation, and the Great Seal of the State, and the Seal of the State Board cif Land Commissioners to be hereunto affixed this 0 --day of v��,.S�t , A.D. 2015. Governor of the State of Montana (;!`b{` ATTEST: ';V aw w Secretary of State (j Countersigned by: Director, Department of Natural „� '•, ,, ;•'.` Resources and Conservation 2522520 Page 3 of 4 08/24/2015 02:28:10 PM Accepted and Approved: J�L...... ............... Applicant .................... Printed Name C.O.S. 2153 TRACT 4-A 28.360 Acres 2522520 Page 4 of 4 08/24/2015 02:28:10 PM I I POINT OF TERMINUS I I I t I I 1 (I PROPOSED 60' PUBLIC ACCESS $ UTILITY EASEMENT NOOe 18' 00.00"E 1 I 1088.7 (I POINT OF Fr,INNwra —� 1 I I N00' 18' N89' 42' 00.00 W NCO' 18' L& r tot a tote Lot tate Ia OF Wt 4 t tat 11 Lot 3 Lot 12 EASEMENT DESCRIPTION A 60 foot wide public access and utility easement 30' either side of the following centerline description with the easement sidelines foreshortened and lengthened as necessary to parallel the new easement cantariine: Commencing at the Northwest comer of lot 6 of the Gordon Mandeville State School Section Subdivision, Located In Section 36, Township 1 South, Range 5 East of the Montana Principal Meridian, In the County of Gallatin, State of Montana: Thence North 89'42'00' West, a distance of 30.00 Thence North 00'18'00' East, a distance of 160.00' to the true point of beginning of this easement, being a point on the northerly right of way line off Flora Lane; Thence North 0'18'00' East a distance of 1088.7' more or less to the terminus of this Easement at the Intersection with the southern property boundary of Tract 4-A of Certificate of Survey No. 2153, Situated In the Section 36, T.1.S., R.5.E., P.M.M., Gallatin County, Montana. Containing 1.50 Acres more or less. RICHARD HIXSON, being duly sworn says: That he Is the Professional Engineer who made the plat of the right of way shown hereon; that the plat was correctly and accurately made: that the tracing or plat thereof Is true and accurate and that it correctly shows the quantity of land requlred for the right of way in each forty -acre tract or government at and also the amount of land remaining in each portion of such forty-oree tract or government lot. Subscribed and sworn to before me this -ZAISToy of MOL20_L±j� STATE OF MONTANA ) ) SS. COUNTY OF GALLATIN ) Helene Greninger ry, Notary Public NOTAnftti for the State of on ) �� _ Residlna at: 4 -SEAL---- Bozeman, Montana My Comimission Explrenllc tart'- Public for the State of Montana "h..,....Ci March 25, 2018 C _Residing at D ejW _ } My Commission Expires- .; AWLC C9 � S W . PROPOSED PUBLIC ACCESS °'TC' a/26/14 THE CITY OF BOZEMAN & UTILITY EASEMENT DRA1fN Dr: artaI is ao a. arm -- M ata rasa PR076CT No.: rwm (aee� )�eet.aae — its ( aes-au GALL.AT(N COUNTY, MONTANA filed for record dotobar 29th, 2925 at 1:00 o'clock P it tong Fowlers deputy J If_ )iarris, Recorder' _l I LEASE ¢ 27034. R. 17.2909 CL-' The NORTRIItIf PACIFIC RAILYIAT 00VPAIZY, a Rieconsin corporation, in to it in hand the receipt I consideration of the surf of;ono dollar ((11:00 paid, vhereof is hereby acknowledged, and of thea semonts herein oontd4nbd ¢000 State boreby grant to the County of Gallatin, in the of Rontoati, psYMInvion as herein limited to nee for a publio road and for no otbor purpose those .gave portions of the gTOntorle right of vay in said county and state, deaoribed'no follows: A strip of 1 d sixty (60) foot wide in the 8outhaent quarter Twenty-�fiva (25)r H�oor,,t�jh half ltortbaodt southwest tar (Spt,a") of Section waiter tiorthwast Quarter Sa'+C), Southwest QuaYter (A�p), Sontbcaot quarter 11ortheant Quarter (Blt 0and Nartbweet ttutlFter Southeast quarter Tbirtq-si:c Tomiship Ona (11 South, Itfigo Five, (5) (Nt7 �.) cf eaot}on C%p 8autont"arid Principal Nerldian, the oecter line of which is described in a Beginning at on the east line of trgid North.- 9440,6- tray' as to11ojiffI a point treat Quarter Southeaet Quar%ter (Atr 5q) where tbo oome in intevaeotbd by a line draft psralial vith and dictant one hundred five (105) feet acutbirocterly, Shen meaeored at right angles, frown the center line of the main track of the northern Paoifio Railtiay dompanp ae the same is nor constructed and operated; thence narthttostarly Mang" "aid psrallol Zine toe oLet in the Northweet quarter gorthwest Quarter SIi1�y of said Beoticn thirty-six (36) thence nntving'to ,7 the right and oraeaing,said center, line of main track at a point fifty-tbrpa (53) foot coutb�,e_g���ttQQFly from the north line of raid Rorthaest Quarter Rorth�veat Quarter (AfliX4) alien measured along raid contort line of main tisok. (Approved so to donoription J E T ) For a more particular daooripption, and ns explanatory hares, to "ienttaobed platy w}tLoh is hereby node a part hareof roforonos is meds and shows'ooVored rad tbo strip & vg desoribed. The grtntee.oholl not. grant to any person or company Pormiasion of the above deooribed right to oonatruet of tiiiIhtain a pole line on any pertidn of Fay and; the RailwaY'66nppany reserves to itbsit Aha right to ggroot such Men with the use pexmits provided the plrlo' are ab lboated ad n6t to intorfove of the street or road for public travel. In the event that the grcntor shoii.find that the right Of Way, or be for any part -thereof, the use of vhich>is hereby permitted, will re4nirod xaiiroad ppurpoeeay said grantor trill give to the grantee six months:notloo of the highway ori s nen its intention to rename poeeeoeian;. and, will rb-establish it the time of taking poaaeaeion, Pro- I l00%tion in as good condition as was at vided that a new right of way therefor is furnished by the County or State, I Dated thin 19th day of October, 1925; 7 gitnesoess Edwin Irle ITGS-`1IERN PACIFIQ R&IL1iAY 00HPART, Dy d,w. Sunni 41tioe.Presidanti dLff 0 O Flynn A>ti�Rt: P. y Ralf, Assistant. Aeoratrsv (00"IPOFIATE SEAL) f rTAT9 OF ItTIMESOTA sc+ County of Asmsey On this 19th day of October in the year 1925, before me rAvrin Irle, kctin to be the Vico. I n p a notary public, porsonallq appeared 0. W. Sunni to me PPaoifio Railway Company, the corporation wbiob executed Prasid-6nt of the Northern the foyoping inetrument,.and abo being duly. anorn did ea , tl,ntthe ae"1 affixed aeal,of said corporation, end that said.. to.vald netrnaiant, 1s the corporate R4a signed and oealecd 14 behalf of said corporation by authority of inst ant its 'bcord of Diraotoro, and the paid C. 77* Penn aoknoxledge¢ said-indtrumant is Wtbe free act and deed of aaid,00rporation. Edirin Irla Notary ppublic, Hennepin bounty inn. (8rA'L)' W oommieaion expiros Dov Ed, 929 filed for record dotobar 29th, 2925 at 1:00 o'clock P it tong Fowlers deputy J If_ )iarris, Recorder' _l I 1111111Hill11111111111�IE1111111111ill11111111111Illi 9/ 0�®SP Shelley Vance -Gallatin Co MT DEED 12.00 WARRANTY DEED THIS INDENTURE is made and entered into on the Q1 day of 2003, by and between JOHN M. MANDEVILLE and DONNA R. MANDEVILLE, 1121 Mandeville Lane, Bozeman, MT 59715, Grantors, and CITY OF BOZEMAN of 411 East Main, Bozeman, MT 59715, Grantee. WITNESSETH: That the Grantors do by these presents grant, bargain, sell, convey, warrant, and confirm unto the Grantee, and to its successors and assigns, forever, that certain real property, situated in the County of Gallatin, State of Montana, particularly described as follows: TRACT 1-A, TRACT 3-A AND TRACT 4-A OF CERTIFICATE OF SURVEY NO. 2153, SITUATED IN THE NW1/4 OF SECTION 36, TOWNSHIP 1 SOUTH, RANGE 5 EAST, P.M.M., GALLATIN COUNTY, MONTANA, ACCORDING TO THE OFFICIAL PLATTHEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE COUNTY CLERK AND RECORDER OF GALLATIN COUNTY, MONTANA. TOGETHER WITH all tenements, hereditaments, and appurtenances thereunto belonging or in anyway appertaining. THIS CONVEYANCE IS SUBJECT TO THE FOLLOWING: (a) Real property taxes and assessments for 2003, and real property taxes and assessments for all subsequent years; (b) Easements for utilities, ditches, streams, canals, or roads as they may be located over, along, and across the subject property, now of record or apparent from physical examination and inspection of the premises; (c) All outstanding interests and reservations pertaining to oil, gas, coal, and other minerals reserved or conveyed by Grantors' predecessors in title, if any; (d) Federal, state, and local laws and regulations, including zoning, building, and land use regulations affecting the premises, if any; (e) Matters shown on Certificate of Survey Nos. 939, 1723 and 2153; (f) Relinquishment of access to State Highway, and of light, view and air by deed to the State of Montana, recorded February 6, 1964, Book 144 of Deeds, page 583, official records; (g) Terms and Conditions of the Waiver of Annexation, recorded May 29, 1980, Film 56, Page 1020, official records; (h) Terms and conditions of the State of Montana Department of Health and Environmental Sciences Certificate of Subdivision Plat Approval, recorded October 31, 1980, Film 59, page 495, official records; (i) Designation of a controlled groundwater area by Department of Natural Resources recorded July 27, 1998 in Film 187, page 2329, official records; (j) Memorandum of Lease with Option, dated May 15, 2000, by and between, John M. Mandeville and Donna R. Mandeville, as Lessor, and WWC Holding Co., Inc., as Lessee, H: \63090\001 \S K5424. W P D Warranty Deed - Page 1 IIIIIl1111lI �� 272 She lley ®IIIIIIIIIIIIII�llllllllllllli1111111 Pae.: 2 Of 2�l nca-Callatin Co M7 DEED 12,002,00 07/29/2003 01:89p recorded October 15, 2001, as Document No. 2050420, official records, and on the terms and conditions contained therein and an unrecorded lease referred to therein; (k) Statement of covenants and the conditions and provisions set forth therein, recorded January 9, 2001, as Document No. 2028101, official records; (I) The terms, conditions and provisions as contained in the Agreement entitled "Water Pipeline and Access Easement and Agreement", by and between John M. Mandeville and Donna R. Mandeville, and City of Bozeman, dated June 13, 2001, as Document No. 2066505, official records; recorded April 17, 2002, (m) Lack of means of ingress and egress to a public road due to the location of a railroad right-of-way between the subject property and a public land; and (n) Access and utility easement over Tract 1-A of Certificate of Survey No. 2153 dated J111)z 29 , 2003, and recorded as Document No. 21 1_ 2?5 _ of the official records of Gallatin County, Montana. TO HAVE AND TO HOLD, all and singular, the above described premises unto Grantee, and to its successors and assigns FOREVER. And the Grantors do hereby covenant that they warrant and defend all right, title, and interest in and to the said premises and to quiet and peaceable possession thereof, unto the Grantee and its successors and assigns, against the acts and deeds of the Grantors, and all and every person or persons, whomsoever, lawfully claiming or to claim the same. IN WITNESS WHEREOF the Grantors have executed this instrument the day and year first hereinabove written. 1 OH�MMA�N�VI�LLC'? DONNA R. MANDEVILLE STATE OF MONTANA ) COUNTY OF GALLATIN jss. On this,2�Z6'aay of personally appeared John K MandGfville , 2003, before me, the undersigned officer, and Donna R. Mandeville, known to me to be the Persons whose names are subscribed to the within instrument and that they executed the same for the acknowledged to me purposes therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year in\t�jRuir)Qument first above written. Notary Pu'State of Montana :;��• `'1 ._•, _ ,- ` Print Name: Residing at: My Commission Expires: . -),I Gail D. Huts s: t �a�ootast«za.wPQ Notary Public fcr tttn St?te of Montana Residing at Ooze.,. n Fno:rtana My Commission u���Lafl.NiQ@W2M%e 2 UV I (VIII VIII VIII llllll llllll 111 lllllll III hill Illi Illi fte 07/29/2003 f 2 Shelley Vanoe-Oal W in Co MT DEED 12.00 - WARRANTY DEED THIS INDENTURE is made and entered into on the A day of 2003, by and between CRAIG A. MANDEVILLE and CONNIE J. MANDEVIL E4. , of 1225 Red Wing Drive, Bozeman, MT 59718, Grantors, and CITY OF BOZEMAN of 411 East Main, Bozeman, MT 59715, Grantee. WITNESSETH: That the Grantors do by these presents grant, bargain, sell, convey, warrant, and confirm unto the Grantee, and to its successors and assigns, forever, that certain real property, situated in the County of Gallatin, State of Montana, particularly described as follows: TRACT 2-A OF CERTIFICATE OF SURVEY NO. 2153, SITUATED IN THE NW/4 OF SECTION 36, 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 OF GALLATIN COUNTY, MONTANA. TOGETHER WITH all tenements, hereditaments, and appurtenances thereunto belonging or in anyway appertaining. THIS CONVEYANCE IS SUBJECT TO THE FOLLOWING: (a) Real property taxes and assessments for 2003, and real property taxes and assessments for all subsequent years; (b) Easements for utilities, ditches, streams, canals, trails, or roads as they may be located over, along, and across the subject property, now of record or apparent from physical examination and inspection of the premises; (c) All outstanding interests and reservations pertaining to oil, gas, coal, and other minerals reserved or conveyed by Grantors' predecessors in title, if any; (d) Federal, state, and local laws and regulations, including zoning, building, and land use regulations affecting the premises, if any; (e) Matters shown on Certificate of Survey Nos. 939, 1723 and 2153; (f) Terms and Conditions of the Waiver of Annexation, recorded May 29, 1980, Film 56, page 1020, official records; (g) Terms and Conditions of the State of Montana Department of Health and Environmental Sciences Certificate of Subdivision Plat Approval, recorded October 31, 1980, Film 53, page 495, official records; (h) Designation of a controlled groundwater area by Department of Natural Resources recorded July 27, 1998 in Film 187, page 2329, official records; (i) Lack of means of ingress and egress to a public road due to the location of a railroad right-of-way between the subject property and a public land; and (j) Grantors shall be entitled to retain possession of said premises until May 15, 2004, at no cost or rent due from the Grantors to the Grantee. H A63090\0011SK5423. WPD Warranty Deed - Page 1 , 2003 111111 IIIII IIIII IIIIII HE III IIIIIII 1111II IIII IIII 0 ,29172B58P Molloy Vanee-Gallatin Co MT DEED 12.00 TO HAVE AND TO HOLD, all and singular, the above described premises unto Grantee, and to its successors and assigns FOREVER. And the Grantors do hereby covenant that they warrant and defend all right, title, and interest in and to the said premises and to quiet and peaceable possession thereof, unto the Grantee and its successors and assigns, against the acts and deeds of the Grantors, and all and every person or persons, whomsoever, lawfully claiming or to claim the same. IN WITNESS WHEREOF the Grantors have executed this instrument the day and year first hereinabove written. r" ._ 4. / "&/ CRAIG A. M NDEVILLE CONNIE 1.9ANDEVILLE STATE OF MONTANA :ss. COUNTY OF GALLATIN ) On this. day of �.��. 2003, before me, the undersigned officer, personally appeared Craig A. Ma deville and Connie J. Mandeville, known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same for the purposes therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year in this instrument first above written. 7 -\ \M111111111111/11j/ NotAry PuW for the State of Montana :'NOTAR/�'.`r Print Name: A'. — = Residing at: My Commission Expires: O ' ' ' SP ,� \ Gail D. Huls Notary Public for the State of Montana Residing at Bozeman, Montana My Commission Expires July 29, 2006 N,A63o9o\o01\SK5423.WPD warranty Deed - Paga 2 1VIdMJVNINIIE]8d NOISIARIens 31IIA3(]NVW 0 WN 43N�t53UA NVWaZOG =10 ADO:INMID W0 z c; i Hl 0 04 04 (1) ti, 8 O > 'd LL Z 0 L LL Im L) LU od z d 0 to .1 l2t C. UJ4;L LL LU Cl) 0 —j LOL 9 Q co Z .40 F Z V z z 93 LU 1, R 2 uj Ld a. 0 z L) 2 CM 0 IL J 'V '4R A" A R A rag i K gom S 289. Ell 8 �E Vay AAi wpgv- AGRICULTURAL LEASE _ THIS AGREEMENT, made and entered into this day of , 201_, by and between the CITY OF BOZEMAN, a municipal corporation located at 121 North Rouse Avenue, Bozeman, Montana 59715, hereinafter referred to as LESSOR, and BILL TATARKA, of 19 Lake Road, Bozeman, Montana 59718 hereinafter referred to as LESSEE. WITNESSETH: Premises Leased: For and in consideration of the rents to be paid and the covenants to be performed by Lessee as hereinafter set forth, Lessor does hereby demise, lease and let unto Lessee those certain lots, pieces or parcels of real property situated, lying and being in the County of Gallatin, State of Montana, and more particularly described as follows: Tract 1-A, Tract 2-A, Tract 3-A and Tract 4-A of Certificate of Survey No. 2153, situated in the NW 1/4 of Section 36, Township 1 South, Range 5 East, P.M.M, Gallatin County, Montana, excepting the homestead and cell tower area. The grain bin, corrals and the steel sided shop building are available for Lessee's use. 2. Term: To have and to hold said premises according to the provisions hereof for a period of fifteen (15) months from and after January 1, 2014, and unless terminated upon notice in writing given by either party to the other not less than sixty (60) days prior to the end of the initial term or any annual extension thereof, unless sooner terminated as herein provided. This lease and all terms therein, will be transferred along with the property when sold. Consideration: Lessee shall pay to the Lessor, as rental for the demised premises, a cash amount equal to 25% of the value of any crop harvested from the premises, based on market prices at the time said crop is harvested, for each year that this Lease remains in full force and effect. If chemicals are used to control weeds in the grazing pasture, the Lessor will reimburse the Lessee for the cost of the chemicals, in an amount not to exceed $200 annually. Payment shall be made to Lessor on January 1 at Lessor's office located at 121 North Rouse Avenue, Bozeman, Montana 59715, or mailed to: City of Bozeman, P.O. Box 1230, Bozeman, Montana 59771. 4. Repairs and Improvements: Lessee agrees to protect all improvements upon said premises and to keep the same in as good condition and state of repair as the same shall be at the time this Lease is executed, with reasonable wear, tear and damage by the elements excepted. 5. Use of Premises: Tatarka — Mandeville Farm Lease Page 1 of 5 Lessee agrees to utilize said premises in a good farmer -like manner and according to the ordinary methods of husbandry employed in the area and to commit no waste upon the property. Lessee agrees that he will not use, or permit to be used, any part of said premises for any other purpose than normal farming purposes without the prior written consent of the Lessor. Lessee further agrees to conduct his activities in compliance with all State or County laws and regulations regarding the control of noxious weeds. 6. No Assignment or Sublease: Lessee agrees that he will not assign this Lease, nor will he sublet the premises, or any part thereof, without the prior written consent of the Lessor. Surrender of Premises to Lessor: Lessee further agrees that at the termination of this Lease, whether by expiration of its term, by default or as otherwise provided herein, he will immediately surrender possession of said premises to Lessor with the improvements thereon in as good condition and state of repair as the same now are, with reasonable wear, tear and damage from the elements alone excepted. Lessor's Right to Terminate: Lessor hereby reserves, and Lessee grants to Lessor, the right to terminate this Lease at any time upon sixty (60) days' written notice; provided, however, that if the Lessee has seeded and fertilized the premises and said sixty (60) days run prior to grain harvest or first cutting, this Lease shall be extended until the harvest or first cutting has been completed. 9. Notice to Lessee: Notice may be given by Lessor to Lessee by mailing the same to Lessee at the address provided herein. Notice shall be deemed delivered when the notice is deposited with the United States Post Office, first class postage, prepaid, addressed to the following: Bill Tatarka, 19 Lake Rd, Bozeman, Montana 59718. 10. Defaults: Should Lessee default in the payment of any rental, or otherwise default in the performance of any term or condition of this agreement, Lessor may immediately re-enter and re -take possession of the premises, or any part thereof, without notice and without,the necessity of resorting to any legal action whatsoever, without such re-entry working a forfeiture of the rents to be paid, or at its option, Lessor may cancel this lease and re-enter and re -take possession. 11. Access: There is further reserved unto the Lessor, its successors and assigns, the right of access and entry upon the lands to make field inspections, examinations, soil tests, and other evaluations in connection with a determination of the highest and best use of the lands herein leased. Should any such testing be disruptive of planted crops, Lessee will be notified and fairly Tatarka — Mandeville Farm Lease Page 2 of 5 compensated for damaged crop. 12. Hold Harmless: Lessor shall not be liable in any manner to the Lessee, or to any other party or parties, for any loss, cost, damage or injury arising out of or in any manner connected with the use of said leased premises, or any part thereof, or arising out of or in any manner connected with the condition thereof or the previous maintenance thereof. Lessee shall indemnify and Bold Lessor harmless from any and all injury, cost, loss, liability, expense or damage, or claim thereof, including reasonable attorney's fees. 13. Anti -Discrimination: Lessee agrees not to discriminate in the fulfillment of this agreement on the basis of race, color, religion, creed, sex, age, marital status, national origin, or actual or perceived sexual orientation, gender identity or disability. 14. Miscellaneous Covenants and Provisions: a. Lessee agrees that he will not use or permit the use of the demised premises contrary to any valid laws of the State of Montana or ordinance of the County of Gallatin or City of Bozeman and will save Lessor harmless from any and all claims for damages which may be sustained by reason of anything which may occur upon said premises or arise from the use or occupancy thereof by the Lessee. b. The covenants and conditions of this Lease shall be deemed continuing and any forbearance by Lessor to enforce forfeiture on the occasion of one or more breaches thereof shall not be construed as a waiver of the right to enforce such forfeiture on any subsequent breach. C. It is mutually agreed and understood that in the event either parry hereto shall bring any legal action against the other to enforce any right or obligation based upon this Lease, the successful parry in such legal action shall be entitled to recover in such action a judgment for all costs and expenses of any kind and nature whatsoever incident to the prosecution or defense of such action or the preparation thereof, including reasonable attorney's fees. d. It is mutually understood and agreed that time shall be of the essence of this agreement and that the terms hereof shall bind the heirs, personal representatives, successors and assigns of the parties hereto, but nothing in this paragraph shall be construed as a consent by the Lessor to any assignment of this Lease, or any interest therein by the Lessee, except as provided in paragraph 6 of this Lease. e. It is mutually understood and agreed that all prior understandings of the parties, either written or oral, are merged herein and this document constitutes the entire understanding of the parties. IN WITNESS WHEREOF, the parties hereto have set their hands and seal the day and year first above written. Tatarka — Mandeville Farm Lease Page 3 of 5 ATTEST: Stacy Ulman City Clerk LESSOR: CITY OF BOZEMAN By: Chris A. Kukulski City Manager LESSEE: Bill Tatarka STATE OF MONTANA ) ss. County of Gallatin ) On this day of , 2013, before me, the undersigned a Notary Public for the State of Montana, personally appeared , known to me to be the person whose name is subscribed to within of the aforementioned agreement and the person whose name is subscribed to within the instrument and acknowledged to me that he/she executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. (SEAL) Notary Public for the State of Montana, residing at My commission expires STATE OF MONTANA County of Gallatin On this ss. day of Tatarka — Mandeville Farm Lease Page 4 of 5 2013, before me, the undersigned, a Notary Public for the State of Montana, personally appeared , known to me to be the persons whose name(s) are subscribed to the within instrument and acknowledged to me that they executed the same. TN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. (SEAL) Notary Public for the State of Montana residing at My commission expires Tatarka — Mandeville Farm Lease Page 5 of 5 i :I 2375124 Page: 1 of 3 11/12/2010 08:39:39 RM Fee: $21.00 IIIIIIIIIIIIIIItlllIN11llllil11111IN1111111lllllllillltlfllllllllllllll MISG UTILITY EASEMENT City of Bozeman, a municipal corporation of the State of Montana, with offices at 121 North Rouse Avenue, Bozeman, Montana 59715GRANTOR, grants to the public, a perpetual utility easement for the use of each and every person, firm or corporation, whether public or private, providing or offering to provide telephone, electric power, gas, internet, cable television or other similar utility or service, the right to the joint use of an easement for the construction, maintenance, repair, and removal of their lines and other facilities, in, through, and across a strip of land situated in Gallatin County, Montana, twen20 feet wide to be located on the following described real property: Tract 4-A, Certificate of Survey 2153, located in the northwest `/ of Section 36, T. 1 S., R. 5 E., P.M.M., City of Bozeman, Gallatin County Montana. The easement is more particularly described on the attached Exhibit A which by this reference is made a part hereof. The GRANTOR states that they possess the real property described above and that they have a lawful right to grant an easement thereon. The GRANTOR further agrees that the public may peaceably hold and enjoy the rights and privileges herein granted without any interruption by the GRANTOR. 2375124 Page 2 of 3 11/12/2010 08:39:39 AM The terms, covenants, and provisions of this easement shall extend to and be binding upon the heirs, executors, administrators, personal representatives, successors, and assigns of the GRANTOR. luf DATED this day of DCALtr , 2010 . By: of 13OZk*,�, rT1 \ �J ♦" E 'Kle T • ��`. STATE OF MONTANA )ss. County of Gallatin ) CITY OF BOZEMAN -Grantor by City Manager On this I day of Qc4p6ey- , 2o(4, before me, a Notary Public for the State of Montana, personally appeared CHRIS KUKULSKI and STACY ULMEN, known to me to be the City Manager and City Clerk, respectively, of the City of Bozeman and the persons whose names are subscribed to the within 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 Notarial Seal the day and year first above written. (SEAL) X,E- tvornrtt,��,•�.� =� SEAL � No4y Public for the State of Montana (Printed Name) Residing at My Commission Expires / /20 AIMEE KISSEL N07'AKV i�Vk3 Lt 4' FQR Y TH Ri !�tt INCC"f.A <7NnNn F3UZE_Ml1N. M��NTANA MY CUMMI�.tiIUry (;.XF'1 FtR'� 2375124 Page 3 of 3 11 /12/2010 08:39:39 AM O _ o y # w oc oz �, o o Z _ 3 0 O .0 U O— 0, O a .0 i O N C O.. W O N I W ILO C v i O in rn 1* I V1 'd' N 0O d 1, Q it 0 0 N E a, I C x M M rz O U (n M o D v c V <t o Q 100 v ago C t v 0 w v 1` v "�' ° oo I 0 O o '�dza -15 Z: II y � o v° w v U O 0O M W c N c •° v I v- O U O O to U C O a 0 O NVS _ E C0 C O -c 0 N 6 °_ 2_ o 0 c N E o F-� o v c -4--J 0:2 0 :3 �r-O o o" i p M c a v 3 O o r` -0 O 7 T O -0 E w C U) UO� .v., O M ..y. C to � 3 U _ C E U _C 0. U y 3 y V) 2 N O r O N ai OIN Z -t0 W . Q v0- NO 016 0 y O .0.'_ n '° rn W 04 I rn W 01nI J Q t2 Q Z U V) I O N QO I W O I O O_ I II I I O O I N I O O W I II _J (�~i(1 I O3 I o O L1..LUYJ N ,00'SL 3„L1,8£.00N O Proposed 20'Utility DAT$: 9/21/2010 THE CITY OF BOZEMAN Easement DRAWN BY: WFS 1NODI99MG DEPARnMT 201, ou” -- P.O. Box 1230 Exhibit A PROJECT No. t PHOMI: BOMBUN, MONTANA 69771-1230 'r (406) bat -2260 -- FAM (06) 662-2243 •� 1 2 3 4 5 6 7 8 9 10 11 12 1.3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 (LAND) BUY -SELL AGREEMENT M rCU12HJi3: �V RrALTOi$ cFeaan4lrr This Agreement stipulates the terms of sate of this property. Read carefully before signing. This is a legally binding contract. If not understood, seek competent advice. Date: January 27, 201 Micropolitan Ent, LLC & Powder, River Comp LLC and/or assigns as E]joint tenants with rights of survivorship, ❑ tenants In common, El single in his/her own right, ® Other (hereinafter called "Buyer'") agrees to purchase, and the Seller agrees to sell the following described real property (hereinafter referred to as "Property"), commonly known as North Park in the City of Bozeman County of Gallatin _ Montana, legally:described.as: Tracts 1-A, 2--A 3-A, 4-A of Certificate of 8urvey. 2153, Gallatin County, City of Bozeman, Montana TOGETHER with all interest of Seller in vacated streets and alleys adjacent thereto, all easements and other appurtenances thereto, uncut timber and non -harvested crops and all improvements thereon except: PERSONAL PROPERTY: The following items of personal property, free of liens and without warranty of condition, are included and shall be transferred by the bill of sale: PURCHASE PRICE AND TERMS: Total purchase price is one U.S. Dollars ($ 142,80,1550 i,00 $ 10 , 000:00 earnest me as addition _ 1, 270, 650.. 00 balance of p Conventional 00 theffinancin M.L.i.xon, Two__Piundred Eighty Thousand, _F _ ) payable as follows: iney to be applied at closing. al cash payment, payable on or before closing. the purchase price. will be financed as follows: g ❑ Seller Financing 0 Assumption 0 Home �� =u ++r ­�J r WAX,4 11 uv�r' ".s 1e,s, our- in no case less than 90% of appraised value so Iona as buver abnroves of anv ncrraa�la Mira* fit oan ren at CLOSING DATE: The date of closing shall be (date) see dine 155-156. (t he "Closing, Date"), The: parties may, by mutual agreement, close the transaction anticipated by this Agreement at any time prior to the date specified. The Buyer and Seller will deposit with the closing agent all instruments and funds necessary to complete the purchase in accordance with this Agreement. If third party financing isrequired required by the terms. of this Agreement (including assumptions, contracts for deed, and lender financing), the Closing Date may be extended without amendment ,by not more than N/A days to accommodate delays attributable solely to such third partyfinancing. 50 POSSESSION: Seller shall deliver to Buyer possession of the property and allow occupancy: 51 ❑when the closing agent is in receipt of all required, signed; documents and -all funds necessary 52 for the purchase; OR 53 0 on the date of recording the deed, notice of purchaser's interest, OR 54 p 55 Seller shall provide keys and/or means to operate locks, mailboxes, security systems, alarms; garage door opener(s), 56 and Homeowner's Association facilities, if applicable; X� J Q%Q VMONTANA ASSOCIATION OF REALTORS@ Buyer's Initials Land Buy -Sell Agreement, March 2013 page 1 of 7>- Seller's Initials NA lanrin>.uk Ifi11 1ti' nickcnun i:l i nniimtan, NIT 5 715 1$00c �tr7G S3G. (x15 F „- d06 586 1321 north {'=u1: per 1.>:wn Lecp Produced with zipFornYD by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 480128 _ ,7ioLooix com 57 RECEIPT OF EARNEST MONEY: Buyer agrees to provide Earnest Money in the amount of T9n Thousana 58 U.S. Dollars ($ 10, 000. 00 } as evidenced by C Cash, 59 the receipt of which is acknowledged by the undersigned Broker/Salesperson; OR ❑ Check, the receipt of which is 60 acknowledged by the undersigned BrokeriSalesperson; p OR, to be deposited with 3 business days of 61 fully executed buy sell agreement 62 if Buyer fails to pay the Earnest Money as set forth above, Buyer will be in default of this Agreement and Seller shall be 63 entitled to immediately terminate this Agreement and declare any Earnest Money already paid by Buyer to be forfeited. 64 65 All parties to this transaction agree, unless otherwise provided herein, that the earnest monies will be deposited 66 pursuant to Montana law OR within ( 3 ) business days of the date all parties have signed the Agreement or 67 68 and such funds will be held in a trust account by _ security Title company 69 Parties agree, that interest accruing on earnest money, if any, while deposited shall be payable to: N/A 70 71 if interest is payable to the Broker it is agreed that sums so paid are consideration for services rendered. 72 73 (BrokedSalespetson's Printed Name and Phone Number) (Signatur6 of Broker/Salesperson) 74 To be signed only if in actual receipt of Cash or Check. 75 76 The parties authorize the hoiden of the earnest money to forward to the closing agent, upon its request, all or any 77 portion of the earnest money required to complete the closing of the transaction. 78 79 FINANCING CONDITIONS AND OBLIGATIONS; 80 81 BUYER'S REPRESENTATION OF FUNDS: Buyer represents that they have sufficient funds for the down 82 payment and closing costs to close this sale in accordance withthis Agreement and are not relying upon any 83 contingent source of such funds unless otherwise expressly set forth herein. 84 85 LOAN APPLICATION: if Buyer fails to make written ;application for financing and pay to the lender any 86 required fees, apply for assumption. of an existing, Ioan or .contract; or initiate any action required for 87 completion of:a contract for deed by 5`00 P.M.. (Mountain Time) (date) 88 Buyer will be in breach of this Agreement and.Seller can exercise Seller's. remedies under this Agreement. 89 90 CONTINGENCIES: The contingencies set forth in. this Agreement or on attached addenda shall; be deemed to have 91 been released; waived, or satisfied, and the transaction shall continue to closing, unless, by 5:00 p.m. (Mountain Time) 92 on the date specified for each contingency, the party requesting that contingency has notified the other party or the 93 other party's Broker/Salesperson in writing that the contingency is not released, waived, or satisfied. If a party has 94 notified the other party on or before the release date that .a contingency is not :released; waived, or satisfied, the 95 transaction is terminated, and the earnest money will be returned to the Buyer, unless the parties negotiate other terms 96 or provisions. 97 98 FINANCING CONTINGENCY- 99 ❑ This Agreement is contingent upon Buyer obtaining the financing specified in the section of this Agreement 100 entitled "PURCHASE PRICE AND TERMS". If financing cannot be obtained by the Closing. Date this Agreement 101 is terminated and the earnest money will be refunded to the Buyer; OR 102 103 p This Agreement is contingent upon Buyer obtaining the financing specified in the section of this Agreement 104 entitled "PURCHASE PRICE AND TERMS." Release Date: 105 106 APPRAISAL CONTINGENCY: 107 ® Property must appraise for at least ($ purchase Rrice ). if the Property does hot: appraise for at least the 108 specified amount, this Agreement is terminated and earnest money refunded to the Buyer unless the Buyer 109 elects to proceed with closing this Agreement without regard to appraised value, Written notice of Buyer's 110 election to proceed shall be given to Seller or Seller's Broker/Salesperson within io days of Buyer or 111 Buyer's Broker/Salesperson receiving notice of appraised value; OR 112 0 Property must appraise for at least ($ ). Release Date., C @MONTANA ASSOCIATION OF REALTORSO atiyer's Initials Land Buy -Sell Agreement, March 2013 Rage 2 of 7 - Seller's Initials Produced with zipFormU by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48028 wnv _gi com nntihpafl Pur 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 14.5 TITLE CONTINGENCY: This offer is contingent upon Buyer's receipt and approval (to Buyer's satisfaction) of the preliminary title commitment, Release Date: 10 _ days from Buyer's or Buyer's representative's receipt of preliminary title commitment, PROPERTY INVESTIGATION: This offer is contingent upon Buyer's independent investigation of the following conditions relating to the property, including but not limited to; covenants, zoning, access, easements, well depths, septic and sanitation restrictions, surveys or other means of establishing the corners and boundaries, special improvement districts, restrictions affecting use, special building requirements, future assessments, utility hook up and installation costs, environmental hazards, airport affected area, road maintenance obligations or anything else Buyer deems appropriate, Buyer agrees that any investigations or inspections undertaken by Buyer or on his/her behalf shall not damage or destroy the property, without the prior written consent of Seller. Further, Buyer agrees to return the property to its original condition and to indemnify Seller from any damage or destruction to the property caused by the Buyer's investigations or inspections, if Buyer does not purchase the property, Release Date: 30 days after pre. plat approval This offer Is contingent upon The Buyer and seller, along with the appropriate State of Montana agency, entering into an acceptable memorandum of understanding regarding the fundina, design, and construction Of. Release Date: 96 clays' .from execution This offer Is contingent upon The Buyer and. Se3jer, entering into a memorandum of understanding z'.egardinq the extension of the exi:stind TTF>± rli'atrirfi -4 4-1— ADDITIONAL from Bozeman Solven se tate: 90 days from- execution the Buyer;, prior to t. -This 146 mor the if the prelizinary plat review process is 'underway, Said 'extensions shall not 147 be unreasonably witheld. 148 149Buyer to be in subdivision review rocess (loraliminary Plat rocess by submitting a 150 pre -application plan to the Clty.of Bozeman within 36 days of the contingencies on 151 Imes 127--138 being satisfied. Buyer .shall work diligently to resr:iond t o the City's 152 pre -application review.:comments and shall submit a preliminary plat application within 153 a reasonable amount .of time after receiving said review comments or 'shall notify the 154 city if it intends to not continue the trocess= 155 Closi:nq Date is within .60 days of thesatisfaction of the contingencies on lines 156 140-1.47. 157 See.Addendums for Additional Provisions for items I -S 159 , 160 CONVEYANCfw: The Seller shall convey the real property by warranty deed 161 deed, free of all liens and encumbrances except those described in; the title insurance commitment, as approved by 162 Buyer, The Seller shall convey the personal property by Bill of Sale; 163 164 WATER All water, including surface water or ground water, any legal entitlement to water, including statements of 165 claim, certificates of water rights, permits to appropriate water, exempt existing rights, decreed basins or any ditches; 166 ditch rights, or ditch easements appurtenant to and/or used in connection with the Property are included with the 167 Property; except 168 169 Filing or transfer fees will be paid by ixJ` Seller, i] Buyer, ❑ split equally between Buyer and Seller, 170 Documents for transfer will be prepared by Seller 0, -MONTANA ASSOCIATION OF RBALTORS® Page 3 of 7 I Buyer's �lnittas Lend Buy -Sell "Agreement, March 2013 Sel ers initials Produced with zipForrrO 5y zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 vnwi.zieLo4ix.com north park pur 171 WATER RIGHT OWNERSHIP UPDATE DISCLOSURE: By Montana law, failure of the parties at closing or transfer 172 of real property to pay the required fee to the Montana Department of Natural Resources and Conservation for 173 updating water right ownership may result in the transferee of the property being subject to a penalty. Additionally, in 174 the case of water rights being exempted, severed, or divided, the failure of the parties to comply with section 85-2-424, 175 MCA, could result in a penalty against the transferee and rejection of the deed for recording. 176 177 CLOSING AGENTS FEES: Closing agents fees will be paid by ❑ Seller ❑ Buyer d Equally Shared, 178 179 TiTLE INSURANCE: Seller, at Seller's expense and from a title insurance company chosen by Seller, shall furnish 180 Buyer with an ALTA Standard Coverage Owners Title Insurance Policy (as evidenced by a standard form American 181 Land Title Association title insurance commitment) in an amount equal to the purchase price. Buyer may purchase 182 additional owner's title insurance coverage in the form of "Extended Coverage" or "Enhanced Coverage" for an 183 additional cost to the buyer. It is recommended that buyer obtain details from a title company. 184 185 CONDITION OF TITLE: All mortgages, judgements and liens shall be paid or satisfied by the Seller at or prior to 186 closing unless otherwise provided herein. Seller agrees that no additional encumbrances; restrictions, easements or 187 other adverse title conditions will be placed against the title to the property subsequent to the effective date of the 188 preliminary title commitment approved by the Buyer. 189 190 SPECIAL IMPROVEMENT DISTRICTS: Special Improvement Districts (including rural STDs), including those that 191 have been noticed to Seller by CiWCounty but not yet spread or currently assessed, if any, will be: 192 ®paid off by Seller at closing; 193 0 assumed by Buyer at closing; OR 194 D. 195 All perpetual STDs shall be assumed by Buyer. 196 197 ASSOCIATION SPECIAL ASSESSMENTS: Any special or non-recurring assessments of any non-governmental 198 association, including those that have been approved: but not yet billed or assessed, will be: 199 © paid off by Seiler at closing; 200 ❑ assumed by Buyer at closing; OR 201 Q 202 203 PRORATION OF TAXES AND ASSESSMENTS: Seller and Buyer agree to prorate taxes, Special improvement 204 District assessments for the current tax year, as welt as pre -paid rents, water and sewer system charges, heating fuel 205 and tank rental, irrigation assessments, Homeowner's Association: dues and/or common maintenance fees, if any, as 206 of the date of closing unless otherwise agreed and: 207 208 209 210 211, CONDITION OF PROPERTY: Seller agrees that the Property shall be in the same condition, normal wear and tear 212 excepted from the date of the execution of this Agreement. up to the time Buyer takes possession of the Property. 213 Seller will remove all personal property not included in this sale prior to closing. 214 215 NOXIOUS WEEDS DISCLOSURE: Buyers of property in the state of Montana should be aware that some properties 216 contain noxious weeds. The laws of the State of Montana require owners of property within this state to control, and to 217 the extent possible.; eradicate noxious weeds. For information concerning noxious weeds and your obligations as an 218 owner of property, contact either your local County extension agent or Weed Control Board. 215 220 MEGAN'S LAW DISCLOSURE: Pursuant to. the provisions of Title 46; Chapter 23 Part 6 of the Montana Code 221 Annotated, certain individuals are required to register their address with the local taw enforcement agencies as part of 222 Montana's Sexual and Violent Offender Registration Act. In some communities, law enforcement offices will make the 223 information concerning registered offenders available to the public. If you desire further information please contact the 224 local County Sheriffs office, the Montana Department of Justice, in Helena, Montana, and the probation officers 225 assigned to the area. jF /MONTANA ASSOCIATION OF REALTORSO. - Land Buy Sell Agreement, March 2013 Page 4 of 7 Buyer's Initials Seller's Initials Produced with iipForn* by zipLogix 18070 FlIteen Mile Road, Fraser, Michigan 48026 ynN,JiRt ix_cQM north park pur 226 BUYER'S REMEDIES: (A) if the Seller fails to accept the offer contained in this Agreement within the time period 227 provided in the BUYER'S COMMITMENT section, all earnest monies shall be returned to the Buyer. (B) If the Seller 228 accepts the offer contained in this Agreement, but refuses or neglects to consummate the transaction within the time 229 period provided in this Agreement, the Buyer may: 230 (1) Demand immediate repayment of all monies that Buyer has paid as earnest money, and upon the return of 231 such money, the rights and duties of Buyer and Seller under this Agreement shall be terminated; OR 232 (2) Demand that Seller specifically perform Seller's obligation under this Agreement; OR 233 (3) Demand monetary damages from Seller for Seller's failure to perform the terms of this Agreement. 234 235 SELLER'S REMEDIES: If the Seller accepts the offer contained in this Agreement and Buyer refuses or neglects to 236 consummate the transaction within the time period provided in this Agreement, the Seiler may: 237 (1) Declare the earnest money paid by Buyer be forfeited; OR 238 (2) Demand that Buyer specifically perform Buyer's duties and obligations under this Agreement; OR 239 (3) Demand that Buyer pay monetary damages for Buyer's failure to perform the terms of this Agreement. 240 241 BUYER'S AND SELLER'S CERTIFICATION: By entering into this Agreement, each person or persons executing this 242 Agreement; as Buyer or Seiler, represents that he/she is eighteen (18) years of age or older; of sound mind, and 243 legally competent to own or transfer real property in the State of Montana; and, if acting on behalf of a. corporation, 244 partnership,, or other non -human entity, that he/she Is duly authorized to enter into this Agreement on behalfof such 245 entity. 246 247 FOREIGN PERSON OR ENTITY: Sellers are not foreign persons, non-resident aliens, foreign corporations, foreign 248 partnerships; foreign trusts, or foreign estates, as those 'terms are defined in the Internal Revenue Code and the 249 Income Tax Regulations promulgated thereunder. Unless the purchase price of the Property rices not exceed 250 $30Q;000 and the Buyer is purchasing the Pr for use by Buyer as a personal residence,. Sellers shall deliver to 251 Buyer a certificate of non -foreign status in the. form required by the income Tax Regulations and reasonably 252 acceptable to Buyer and/or Buyer's attorney. in the event Sellers do not deliver the certificate to Buyer at or before 253 closing, Sellers acknowledge and agree that Buyer may withhold ten percent (10%) of: the Purchase Price and submit 254 this amount to the Internal Revenue. Service, pursuant to Section- 1445 of the Internal Revenue Cade, 255 256 CONSENT TO DISCLOSE INFORMATION: Buyer and Seiler hereby consent to the procurement and disclosure by 257 Buyer, Beller;. and Salespersons and their attorneys; agent, and other parties having interests essential to this 258 Agreement; of any and all information reasonably necessary to consummate the transaction described in this 259 Agreement; specifically including access to escrows for review of contracts,. deeds, trust indentures; or similar 260 documents concerning this property or underlying obligations pertaining thereto.. 261 262 RISK OF LOSS: A1I loss or damage to any of the above-described real property or personal property to any cause is 263 assumed by Seiler through the time of closing unless otherwise specified. 264 265 TIME IS OF THE ESSENCE: Time Is of the essence as to the terms and provisions of this agreement. 266 267 BINDING EFFECT AND NON ASSIGNABILITY: This Agreement is binding upon the heirs, successors and assigns 268 of each of the parties hereto however, Bayer's rights under this Agreement are not assignable without the Seller's 269 express written consent. 270 271 ATTORNEY FEES: in any-aetienbrpttggt-by Fhe t ye' ", Q :„Gu iTer to enfofee­-atly-of the-ter;ls.o ii i.. n. . T,,�,,r 272 �,T— 273 deterf*rie fast. ;�r�ltt�hef small 274 275 COMMISSION: The Seller's and/or Buyer's commitment to pay a commission in connection with this transaction is an 276 integral part of this Agreement. 277 278' FACSIMILE: The parties agree that a facsimile copy of this Agreement to Sell and. Purchase which contains the 279 parties' signatures may be used as the original. @MONTANA ASSOCIATION OF REALTORS0 e pag$ of 7_ t Buyer s Initials Land Buy -Sell Agreement: March 2013 SeIler s Initials Produced with zipFormr+J by ApLogix 18070 Fifteen Mile Road. Fraser. Michigan X18028 vnvy� zioE ogiz cab iintialput 280 ENTIRE AGREEMENT: This Agreement, together with any attached exhibits and any addenda or amendments 281 signed by the parties, shall constitute the entire agreement between Seller and Buyer, and supersedes any other 282 :written or oral agreements between Seller and Buyer. This Agreement can be modified only in writing, signed by the 283 Seller and Buyer. 284 285 COUNTERPARTS: A copy of this document may be executed by each individual/entity separately, and when each 286 has executed a copy thereof, such copies, taken together, shall be deemed to be a full and complete contract. between 287 the parties. 288 289 EARNEST MONEY DISPUTES: Buyer and Seller agree that, in the event or any controversy regarding the earnest 290 money .and things of value held by the Broker, closing agent, or any person or entity holding such money or property, 291 unless mutual written instructions are received by the holder of the earnest money and things of value, Broker or 292 closing agent shall not be required to take any action, but may await any proceedings, or, at Broker's or closing 293 agent's option and sole discretion, may interplead all parties and deposit any monies or things of value In a Court of 294 competent jurisdiction and may utilize as much of the earnest money deposit as may be necessary to advance the 295 cost and 'fees required for filing such action, 296 297 ADDENDA ANA/OR DISCLOSURES ATTACHED:(Check all that apply.) 298 D Sale of Buyer's Property ®1031 Tax Deferred Exchange 209 p Addendum for Additional Provisions p Back-up Ofrer 300 Q Water Rights Acknowledgement 301 p 302 303 RELATIONSHIP CONFIRMATION: The parties to this agreement confirm that the reap estate licensees identified 304 hereafter have been involved in this transaction in the capacities indicated below and the parties have previously 305 received the required statutory disclosures setting forth the licensees duties and the Limits of their obligations to each 306 party' 307 308 Mike Elliot of CHRE. 309 (name of licensee) (name of Brokerage company) 310 is acting as ® Seller's Broker/Salesperson; El Dual Broker/Salesperson: D Statutory Broker.. 311 312 Jason Leep. of NAI Landmark 313 (name, of licensee) - (name of Brokerage company) 314 is acting as ® Buyer's Broker/Salesperson; p Dual'Broker/Salesperson; ❑ Statutory Broker; 315 D Seller's Broker/Salesperson (includes Seller's Sub -Broker or Salesperson). 31.6 317 BUYER'S ACKNOWLEDGMENT: Buyer acknowledges that he/she has examined the real and personal property; 318 that Buyer enters into this Agreement In full reliance upon his/her independent investigation and judgement, that prior 31.9 verbal representations by the Seller or Seller's agent or representatives do. not modify or affect this Agreement, and 320 that by signing this Agreement Buyer acknowledges having read and understood this entire Agreement, 321 322 BUYER'S COMMITMENT:,1/We agree to purchase the above-described Property on the terms and conditions set 323 forth in the above offer and grant to said Salesperson until (date)_ see additional. provisions 44-, 324 at D a.m. D p,m, (Mountain Time) to secure Seller's written acceptance, whether nor not that 325 deadline falls on a Saturday, Sunday or holiday. Buyer may withdraw this offer at any time prior to Buyer being 326 notified of Seller's written :acceptance. If Seller has not accepted by the time specified, this offer is automatically 327 withdrawn. 328 The parties hereto, all agree that the transaction contemplated by this document may be conducted by electronic 329 means in accordance with the Montana Uniform Electronic. Transaction Act. @MONTANA ASSOCIATION OF RBALTORS® f Page 6 of 7 r Buyer's Initials Land Buy -Sell Agreement, March 2013 Seller's' Initials Produced with zipForm9 by zipLogix 18070 Fifteen Mile Road, Fraser, M;chigan 48026 vn w.zioloaiz. n north park Pur 330 IME HEREBY ACKNOWLEDGE receipt of a copy of this Agreement bearing my/our signature(s). 331 332 Buyer's Address: City 333 334 State _. Zip Code Phone Number 335 336 Buyer's Name Printed:Micropolitan Ent, LLC & Powder River Comp LLC and/or assigns 337 338 Dated this at p am EJ pm (Mountain Time). 339 ` 340. 341 (Buyer's Signature) (Buyer's Signature ,. hj. $tsWa?�ttV 342 t r <r x t :. r5 r'/' t... f t 343 344 OFFER PRESENTATION: This offer was presented to the Seller(s) on 345 346 Date: Time p am ❑ pm By, 347 (Signature of person presenting the offer) 348 SELLER'S COMMITMENT: VWe agree to sell avid convey to Buyer the above-described Property on the terms 349 and conditions herein above stated. UWe acknowledge a receipt of a copy of this Agreement bearing my/our 350 signature(s) and that; of the Buyer(s) named above, 351 352 Seller's Address: city 353 354 State Zip Code _ Phone Number 355 356 Seller's Name Printed: City of Bozeman; MT 357 358 Dated this at, 0 am 0 pm (Mountain Time). 359 360 361 (Seller's Signature) (Seller's Signature) 362 363 ACTION TAKEN, IF OTHER THAN ACCEPTANCE: 364 365I/We acknowledge receipt of this. Agreement bearing my/our initial(s) and the signature(s) of the Buyer(s) named 366 above. 367 ( Lt 368 0 Rejected by Seller 1 I Modified per Attached Counter 369 Seller's initials Date� X Seller's Initials Date NOTE: Unless othenvise expressly stated the term "Days" means calendar days and not business days. Business days are defined as all days as except Sundays and holidays. Any performance which is required to be completed on a Saturday; Sunday or a holiday can be performed on the next business day. Cc -MONTANA ASSOCIATION OF REALTORSO Land Buy -Self Agreement, March 2013 Page 7 of 7 Produced with zipForntO by zipLogix 18070 Fifteen Mile Road; Fraser, Michigan 48026 p �v,�laaix"cq�F north part pur COUNTER OFFER This Counter Offer (the "Counter Offer") to that certain (Land) Buy -Sell Agreement dated January 27, 2014 (" Bu eIIr submitted to the City u Bozeman ("Seiler") by Micrapalitan Enterprises, LLC & Powder, River Company LLC and/or assigns (collectively "Bu er") dated January 27, 2014. The Buy -Sell is acceptable by Seller with the changes set forth below, and Seller hereby makes the following Counter Offer incorporating those changes: Purchase Price and Terms: a. fines 30 32, inclusive,. are deleted and replaced. with' the following: "Purchase Price is the greater of (i) S1,284,554 or (ii) 140% of appraised value, as determined by an appraisal ordered by -Se er laid appraisal to have`an effectiy_e date within one 1) year of the_.Clesing�TDate, if IOQ%. of ttie appxaised valve exceeds $1,284 b re than ten percent (IO%), Buyer may within ten (]p) days of Xts recezpt of a copy of the appraisal elect to terminate this Agreement by giving written notice of such terminatiozi to Seller, and upon termination pursuant to this paragraph, the Earnest: Money shall be promptly returned to Buyer. If Buyer fails to give notice of such election with n the ten (14) day time period, Buyer will be deemed to have waived its right to terminate this Agreement fox the reasons set forth in this paragraph, and the Purchase Price shall be 1.00% of the Property's appraised value. If. Appraisal Contingency: a. Lines 106-112, inclusive,'shall be deleted in their. entirety; III, Property Investigation: a. The contingency in lines 127 — 130, inclusive, addressing a memorandum of understanding concerning a proposed Interstate 90 overpass, shall be deleted. The release date on line 132 shall be deleted:: IV. Additional Provisions: a. Lines 140 — 1.47, inclusive; regarding preliminary ;plat approval to be revised to read: `"This offer is contingent on the City of 'Bo I ' An approving a prelimiztary plat with conditions acceptable to Buyer prior to the Closing bate. This offer is also contingent on vehicular and pedestrian access that is acceptable to Buyer. Nothing in the previous two sentences, however, shall be construed to require that the City of Boneman approve any particular conditions or access proposed by Buyer, it being understood by Buyet;that the City will review Buyer's application for preliminary plat in its governmental and regulatory capacities, applying Its normal development review criteria and procedures as it would in rev awing any other application. Contingency release date for prelim inaryplat approval and access approval is 18: months from the date all parties > have execote& the Buy -Sell, if the preliminary plat review process is underway and the Buyer is proceeding. diligently, either partymay apply to have the contingency release date extended for up to an additional 12 months, and the other party shall not unreasonably withhold consent to such extension request. Page I oft CBRE AGREED AND ACCEPTED CITY OF BOZEMAN 13y:_ Name; Chris A. Kukulsld Title: City Manager Date; February 28: 2014 Metropolitan Enterprises, LLC By Name:o lln"e A? Title: W ke., Date-. , y .Page 2 of 2. ADDENDUM TO BUY -SELL AGREEMENT [B 1:2� FOR ADDITIONAL PROVISIONS REALTOR' UPPAIVOTY 1 This is an addendum to a Buy/Sell Agreement dated January 27 2014 2 3 between City of Bozeman MT (Seller) 4 5 and Micropolitan Ent,LLC & Powder River Comp LLC and/ assigns (Buyer) 6 7 and concerning the following described property: North mark Bozeman 8 9 10 11 Additional provisions:1) Buyer recognizes. the City has a Phase .1 Environmental site 12Assessment Report for the :real property prepared by Hyalite Environmental LLP 13 and dated September, 2012: Upon entering into this Agreement Buyer may, inspect 14 this report and may obtain a copy of it at Buyer's ioxpense. 152)Buyer recognizes the City has a Preliminary Engineering Report for the real 16 Property Prepared, by CTA Architects & Engineers dated December 4 2013 Upon 17 entering into this Pcgreement Buyer may inspect this report and may obtain a copy 18.of it at Buyer's expense, 193)Nothing in this agreemont may be construed to obligate the Bozeman City 20 Commission to approve a preliminary plat:or be construed to abrogate or waive 21 the.Bozeman City Commission Is authority to impose reasonable conditions of 22 approval under: the Montana Subdivision and Platting Act (Title 76 Chpt 3 MCA)_ 23 or the Cityyrs Unified- Development Code (Copt, 38,, BMC); . 24 25 continued for items -4-5 26 27 28 29 C4A 30C 31 BuyerMicropolitan Enf.i LLC 6 Powder nate Seller city. of 'Bozeman, bdT Date 33,C 32 j� 343L� d u 35 Buyer River Comp. LLC acid/or assigns Date Seller Date NOTE: unless otherwise expressly statedtheterm "Days means calendar days and not business days. Business days are defined as all days as except Sundays and holidays. Any performance which is required to be completed on a Saturday. Sunday or a holiday can be performed on the next business day. ©MONTANA ASSOCIATION OF REALTOR80, March 2006 NAI Landmark 18 11 W. Dickerson #17 Bozeman, MT 59715 Phonc:406,S56.5605 Fax: 406.586.1321 Jason Leepuutth par - pur Produced with ZipFomr_Z by zipLogiz 18070 Fifteen Mile Road, Fraser, Michigan 48026 ww .ziot.00ix.cotn ADDENDUMSIC f2� FOR ADDITIONAL PROVISIONS W41M 1 This is an addendum to a Buy/Sell Agreement dated January 27 2o14 2 3 between City of -Bozeman MT (Seller) 4 5 and Mioropolitan'Ent, LLC & Powder River Coinp LLC and/or assigns (Buyer) 6 7 and concerning the following described property: North Park Bozeman s 9 10 11 Additional provisions: 4) Buyer recognizes and agrees the saleof the Pro erty is 12 contingent upon the Bozeman Cit :Commission's ratification of the Cit tanager's 13 approval of this, Agreement by duly adopted ordinance of the Bozeman Citv 14 Commission :pursuant to the requirements of Section 2 11 of the Bozeman City 15 Charter and Chpt; 2, Art, 6, Div. 5, HMC. Final, ratification of this Agreement 16 shall not bez effective until 30 (thirty) days after final adoption of such 17 ordinance. Should the Bozeman City Commission fail to ratify the City'Manager's 18 approval of this Agreement -for whatever reason this Agree3nent shall be 19 terminated, arid :the City shall have no further obligations to Raver except 26 return of -Buyer. Is earnest money. Su ,ers csommittment line 322' amended: Cit 21 Manager apprbval.of this Agreement by February 7, 2019 at 5 p ;:it or this offer 22 is withdrawn) 23 5)The purchase will be subject to all encumbrances of record Mayer shall honor 24 any existincr, or future agricultural lease on the real prope"rtZV entered into o 25 the City, prior to closing: 26 continued for items 6-8 27 28 29 30 1AX S 31 Buyer Micropalit4n Ent, LLC & Powder Date ' Seller City of Bozeman; MT Dale 3233 iW 34—­ 35 Buyerptiver Comp. LLC and/or assigns Date Sellbr [date NOTE: Unless otherwise expressly stated the term "Days' means calendar days and not business days. Business days are defined as alt days as azceptSundays and holidays. Any Performance which is required to tie completed on a Saturday, Sunday or a holiday can be performed on the next business; day. bMONTANA ASSOCIATION OF RE=ALTORS®, March 2006 NAI Landmark 1811 W. Dickcrson #17 Bozeman, MT 59715 phone, 406,556:5005 Fax; 406.536.1321 Jason Lei) north Park par Produced with ZlpFormO by zipLogix 18070 Fifteen Mile' Road; Fraser, Michigan 48026 wvmv,2iot oatx. om ADDENDUM TO BUY'SELL AGREEMENT FOR ADDITIONAL PROVISIONS 1 This is an addendum to a Buy/Sell Agreement dated January 27 2014 2 3 between __-_- City of Bozeman MT (Seller) 4 5 and Micropolitan Ent LLC .& Powder River Comp LLC and/or assicrns (Buyer) 6 7 and concerning the following described property: North Park. Bozeman; 8 s [ 10 11 Additional provisions, 15)A11 of _Seller Is rights and interests in the Site Lease with 12 Option Agreement dated May 15 2000 by and between John'`M. Mandeville and Donna i 13 R. Mandeville, as lessors, and WWC molding Co. as lessee recorded October 15, 14 2001 as Document No. 2050420 with the Gallatin County Clerk and Recorder shall 15 be conveyed. by Seller to Huyer at closing. 16 7?The Seller •shall convey the real- nroperrtvbv warranty deed free of all liens 17 and encumbrances, except those described in the title insurance commitment, as 18 approved by the Buyer, :The warranty deed will be sub ect to, at a Minimum the 19 items listed in the warrantX deeds as filed in the records of the Gallatin 20 County Clerk and Recorder as Document Nos, 21-17281. and 2117282 21 8) The parties agree to not discriminate in the fulfillment of this-ActreeMent on 22'the basis of race color, religion creed, sex ace- marital status national 23'origin, :or actual or. perceivedsexual orientation,;gender- identity or 24 disability. 25 26 end of additional provisions 27 NOTE: Unless otherwise expressly stated the term "Days' means calendar days and notbusiness days. Business days are defined as alt days as except Sundays and holidays. Any performance which is required to be completed on a Saturday, Sunday ora holiday can be performed on the next business day, ©MONTANA ASSOCIATION OF REALTORS0, March 2006 NAI Landmark 181 1 w; Dickerson #17 Bozeman, 4i'r 59715 Mone:406,556.5005 Fax: 006.586,132 t Jason Leep north park pur Produced with ZpForm? by xipLogix 18070 Fifteen Mile Road, Fraser, Michigan 4806 www,ziuLooix.com. TAMOUNT ST ,j Y$LSi 1 s' .. CATNON 3T , F.— r• �O,yj 9URKE ST a > f rCA7AIL_ST-' D �p u �. 4 _=_s�,-t" GALLAnt4'PARK OR r _ DEAD MANS GULCH "ORVK.LE WAYIV a p F �• ,1 y •:� a x TO tXWHIDE ROO W . f s :.:�- r. 'rte '9 • a BBOT HiI J �>.. MANOFVB 1-E 1 W: iGHIFfIF! [-'F' '4 y � O _ - - wllcnr oR g t. �@ e� .5.96All e` A nu�$gE Gp 5 mer E B:�E p'E 6.Bn B EB 8E .6 ," � � � � � S � 5i a •3 .� � �' Iasi I J,wah Q IL Whil 11111 s• p B�Rg 5 � a a a M '1411" n S Ay �- o ,�' 9 & � ^"d.dd10...R 11o 8 a 'S will oR•8 <• n• b b. "3g8 �. t� g�� 80 1 8E� k : all, 8 �' "� o�.I� 010 s11112 1' � 3"������-���1:; A���g�a�,B� 4-R6 8�8 .gn � � X• @��d� tt��,� ��'R{`'� 4 �..ga E �till 11m lit 11 p O 3 Nu , Z Z � � p.� �'�.� a • � Y .8 � a, � a d�'a s f WIN fL1 UT ge ge.H og� a re.� a� p -11, Hill 11 jI LL �a vv &fib tlGC 4ko� �k� R�1k ��Gc �o �2 �s Nr 3o e4 aC Nam a N`oG o iJn ifN �f `o o `a _N x0 0 uv.y.s y r .�.�.a•e .$.�.e.G .G � .$v'u�F8 I � sgt I g .� '�* pxx�"N� p ,®�••�� ��`�• g...�l �aIg,.� � ,�� •� Sao ��g .. 911 j n E If 003 a a as s aes ig � IN a 3 3 t � 9� a �a�a� �'�s z �p a n�'a '�� a�� .e 9 •{g 8s K �� S � � �� § ilk a@$u. �F 51 4F aggasi .$ @�da5 9 3 99 isle$ 9 �F� we3 �yypIi{v$ .—p a§�•gg C.e '" 7`ft A�p�eC.� —11�.�p�0g0[�� �$ Aa'•d1 ga .d $• �Yo��& y @8`� �$ppP L°a ��gggggg�• he'.og lyE �g�ggld�9g `p 8�P C @egH22�J 3�. 84 9� yy�2ai S 87IS Y••Yae'9q jEHgyggpGE� E�3 C 3 bgy5 B.a 8R �• iC�.' ia'aSctr �In, •r�' y's 11.1 Z Z � � p.� �'�.� a • � Y .8 � a, � a d�'a s f WIN fL1 UT ge ge.H og� a re.� a� p -11, Hill 11 jI LL Nest 'i r . - p g v Montana Bald Eagle Management Guidelines: An Addendum to Montana Bald Eagle Management Plan (19 94) Prepared by: Christopher A. M. Hammond Montana Fish, Wildlife and Parks In Cooperation with the Montana Bald Eagle Working Group Suggested Citation: Montana Bald Eagle Working Group. 2010. Montana Bald Eagle Management Guidelines: An Addendum to Montana Bald Eagle Management Plan, 1994, Montana Fish, Wildlife and Parks, Helena, Montana. PURPOSE AND INTENT This addendum to the Montana Bald Eagle Management Plan (1994) was prepared to address recent changes in federal bald eagle regulations. The 1994 Plan still provides the most comprehensive discussion of bald eagle conservation in Montana. Information covered in the 1994 Plan is not repeated here. Bald eagles (Haliaeetus leucocephalus) in Montana were removed from the U.S. Fish and Wildlife Service (USFWS) list of Threatened and Endangered Species in 2007. Although bald eagles no longer receive protection from the Endangered Species Act, two pieces of federal legislation still provide protection: 1) the Bald and Golden Eagle Protection Act (BGEPA) and 2) the Migratory Bird Treaty Act (MBTA), These two acts provide the legal foundation for the National Bald Eagle Management Guidelines developed by the USFWS (2007) and prohibit killing, selling, or otherwise harming eagles, their nests, or their eggs. The national guidelines provide landowners and land managers with a set of recommendations to reduce the potential of disturbing eagles and to encourage land management practices that may benefit eagles. Although the USFWS guidelines are applicable throughout the United States, more protective state guidelines are often appropriate in areas where bald eagles have displayed greater sensitivity to human activity, and in the relatively open landscapes of the western states (USFWS 2007). This document addresses those concerns and establishes recommended guidelines for bald eagles in Montana. . Although compliance with federal and state guidelines is voluntary, disturbance of eagles is prohibited by law. These guidelines are recommendations based on the best available science and proven conservation measures that minimize disturbance to bald eagles. They are designed to provide land management agencies, land use planners, biologists, developers, and others with recommendations for minimizing the. potential of violating federal and state regulations. Compliance with these guidelines does not remove liability if bald eagles are disturbed while completing an activity or project. However, federal and state agencies may focus on investigating and prosecuting individuals and companies that disturb bald eagles without regard for their actions or fail to implement conservation measures recommended in these guidelines. REGULATORY MECHANISMS Bald and Golden Eagle Protection Act The Bald and Golden Eagle Protection Act (BGEPA) prohibits anyone from taking bald eagles, their eggs, bald eagle parts, or their nests without a permit issued by USFWS. A recently clarified definition explicitly defines disturbance (72 Federal Register 31132) and protects bald eagles from impacts of human initiated activities primarily around active, alternate, and historic nest sites. The definition of "disturb" includes any activity that will cause, or is likely to cause, based on the best scientific information available, 1) injury to an eagle, 2) a decrease in its productivity, by substantially interfering with normal breeding, feeding, or sheltering behavior, or 3) nest abandonment, by substantially interfering with normal breeding, feeding, or sheltering behavior. Civil penalties for violation of BGEPA start at $100,000 or two years imprisonment or both for a first violation. Felony convictions carry a maximum fine of $250,000 or two years imprisomnent or both. Fines are doubled for organizations. New regulations under BGEPA allow for the limited take of bald eagles, or their nests, when the take is associated with otherwise lawful activities and the take would be compatible with the preservation of the bald eagle (74 Federal Register 46835). Take is defined as actions including to pursue, shoot, shoot at, poison, wound, kill, capture, trap, collect or molest or disturb bald eagles. Compatible with the preservation of the bald eagle means the actions would have to be consistent with the goal of stable or increasing populations. Under these regulations the USFWS may issue take permits, based on regional population thresholds, to allow take that results in mortality of eagles or an eagle nest under special circumstances. The final rule regarding take permits was published in the Federal Register on September 11, 2009. Information on the types of permits, permit application process, required monitoring, mitigations requirements, and the application review process are available on the USFWS website. Federal permits are only valid if the permit holder complies with all state and tribal regulations. A state permit may be required. Contact your nearest Montana Fish, Wildlife and Parks office for information on Montana's current regulations with respect to eagles. Migratory Bird Treaty Act The Migratory Bird Treaty Act (MBTA) makes it illegal for anyone to take any migratory bird, their eggs, their part, or any bird nest except as permitted (such as waterfowl hunting licenses, falconry licenses, or bird banding permits) by USFWS. The definition of take under the MBTA includes any attempts or acts of pursuing, hunting, shooting, wounding, killing, trapping, capturing, possessing, or collecting. Misdemeanor convictions_ carry a $15,000 fine or six-month imprisonment or both. The maximum penalty per violation of the MBTA is two years imprisonment and a $250,000 fine. State Regulations The State of Montana also has regulations in place to protect bald eagles. The Nongame and Endangered Species Act (MCA 87-5) mandates that the state "provide adequate remedies for the protection of the environmental life support system from degradation and provide adequate remedies to prevent unreasonable depletion and degradation of natural resources." This Act has similar language to the MBTA and states "it is unlawful for a person to hunt, capture, kill, possess, purchase, offer or expose for sale, ship, or transport any wild bird, other than a game. bird, or any part of the plumage, skin, or body of the bird, irrespective of whether the bird was captured or killed within the state, or to take or destroy the nest or eggs of a wild bird, except under a certificate, falconer's license, or permit issued by the director" (MCA 87-5-201). The penalty for a first conviction is a fine of up to $250. Penalties increase and may include jail terms with subsequent convictions. A state pen -nit may be required for activities related to take or disturbance of eagles. Interested parties are encouraged to contact Fish, Wildlife and Parks rp for to applying for a federal take permit. RECOMMENDED GUIDELINES The USFWS National Bald Eagle Management Guidelines recommend relatively small buffers around important eagle habitat and may be more appropriate for management of bald eagles in eastern states like Florida and Michigan. Both these states have much higher bald eagle (>1,100 nests) and human populations. In Montana, most bald eagle nests are located in rural areas with lower levels of development and disturbance. Bald eagles nesting in rural areas often are more sensitive to human activity than eagles that have chosen to build nests in the vicinity of pre- existing human activity (Millsap et al. 2004). Any activity that disrupts breeding, feeding, sheltering, and roosting behavior and causes, or is likely to cause, nest abandonment or reduced productivity, is considered disturbance and.is a violation of the BGEPA and state regulations. Appropriate management recommendations must consider when and why bald eagles respond to human activity. Some seemingly benign human activities, such as hiking, may have greater potential to disturb bald eagles than watercraft, vehicles, or loud activities (Grubb and King 1991). Regardless of the activity type, the underlying common factor in most cases where bald eagles show response to human disturbance is that the disturbing activity was visible from the nest. Vegetative cover often conceals human activities and may reduce disturbance potential on bald eagles (Stalmaster and Newman 1978). In areas where dense vegetative understory and overstory are absent eagles respond to human activity at great distances. Disturbance may result when human activity is unusually loud (e.g. fireworks or personal watercraft) or the activity breaks from the normal pattern of human use in the vicinity of the nest. For example, eagles nesting in agricultural areas may tolerate the operation of loud farm equipment nearby, but become defensive when a person walks close to the nest tree. We recommend seasonal restrictions and visual and distance buffers around nest, foraging, and roost sites to minimize disturbance to bald eagles. Some activities may warrant a combination of seasonal restrictions and buffers to ensure compliance with regulations. The first buffer is a visual buffer that is based on whether the human activity is visible from the nest. The second buffer is a distance buffer determined by the type of activity. We provide our recommendations in the following text and summarized in Table 1. Modifications of these guidelines are allowable through the development of site-specific management plans. A framework for the development of the site-specific plan is presented in Appendix VII of the Montana Bald Eagle Management Plan (1994). We recommend a biologist familiar with bald eagle management and ecology develop the site-specific management plan. Seasonal Restrictions Responses of bald eagles to human activities can be highly variable. Regardless of this variability there are well-established time -periods during which bald eagles are more sensitive to land management and human activities and are particularly vulnerable to disturbance (Fig. 1). Seasonal buffers provide individuals and organizations options to conduct activities outside of the sensitive periods (Fig. 1) so that short-term disturbance may be mitigated or avoided. The recommended primary seasonal restriction is from approximately February 1 through August 15th. However, bald eagles nesting in habitat with later nest initiation dates due to E elevation or weather (e.g. Glacier and Yellowstone National Parks) may benefit from activity limitations beyond August 15`h due to later nest initiation dates. Note: Seasonal restrictions will not apply to unoccupied or alternate nest sites. Seasonal restrictions also do not apply if eagles have fledged, nesting has failed, eagles have left the nesting area, or if eagles have demonstrated a tolerance to the activity. Unoccupied or alternate nest sites should be protected from longer-term disturbance by implementing appropriate distance buffers (see below). Recommended seasonal restrictions from approximately February lst through August 15th for the following activities (See Table 1): o Construction and maintenance including buildings roads, trails, or any other outside construction within direct line of sight of an active nest. o Loud noises including fireworks, blasting, and operation of forest harvest machinery (skidders, trucks, chainsaws, etc.), jackhammers, construction equipment, etc. o Forest management activities, thinning, and fuels reduction including all activities associated with the removal forest vegetation around occupied nests. o Concentrated recreation including, but not limited to, hiking, bird -watching, fishing (on and offshore), hunting, boating and use of personal watercraft. Figure 1. Time periods for relative sensitivities of bald eagles to human activities in Montana. Visual Buffers Bald eagles exhibit greater sensitivity to disturbance when activities occur within full view of the bird (Grubb and Ding 1991). Therefore, existing visual buffers within 1/4 mile of nest sites should not be removed, but enhanced if possible. (See Table 1 for distance conversions.) Effective visual buffers should take into consideration topography, ecological characteristics, historical and proposed land use, human activity patterns, and the nesting pair's level of tolerance for disturbance. In some cases this may deviate from the standard recommendation. Examples of alterations to visual buffers include, but are not limited to land clearing, the construction of new houses, power line construction, timber harvest, and fuels reduction. Recommended activities for visual buffer maintenance and enhancement (See Table 1): • Managing forest and riparian habitats to protect and enhance important habitat components (i.e. perch trees, visual screening, etc.). • Thinning around large potential or active bald eagle nest trees to protect them from crown fires. Thinning should be done so as not to compromise visual buffers between nest trees and potential human disturbance. • Placing new construction (homes, buildings, trails, boat launches/marinas, etc.) only in areas where visual buffers around nests can be retained. Retaining a natural buffer around active nests, alternate nests, and large live trees and. snags during fire protection activities that meet Wildland Urban Interface safety requirements and recommendations while providing visual security for bald eagles. A CE Figure 1. The house in these figures represents a human activity that may disturb bald eagles. Any activity that may disturb bald eagles can replace the house in the illustration. Example A represents a scenario where the visual buffer is inadequate. Example B represents a scenario where the visual buffer is adequate. Notice how the line of sight in Example B is obstructed by existing vegetation. The distance between a disturbing activity and bald eagles depends on a variety of factors. rel Distance Buffers Potentially disturbing activities should not occur within 1/2 mile of active and alternate nests (for territories occupied within the last five years), although some activities may produce less disturbance and recommended distances might be decreased in areas where visual buffers obstruct the direct line of sight between activities and nests, perches, and roosts (Table 1). In addition, in areas where sources of disturbance pre -date eagle occupancy, where eagles have developed a tolerance for routine human activities, or where activities similar to the proposed activity exist distance buffers may be reduced (Table 1). Any reductions to our recommended distance buffers should be done in consultation with a qualified biologist and justified in site- specific plans. Distance buffers are intended to apply to activities near nest sites, concentrated foraging areas, and communal roost sites during the appropriate season of eagle use (Fig. 1). Bald eagles concentrate in areas with abundant food resources during the non -breeding seasons. Roost sites near open rivers and lakes can be used routinely in winter. These concentrated foraging areas and associated roost sites, when used, should receive similar protection as nest sites during the appropriate season of use. Extending distance buffers may be necessary in open landscapes where visual buffers within 1/2 mile of nests are not possible. Buffers based on tolerance for routine human activities may be assessed through consultation with a qualified biologist. Tolerance may be evaluated based on proximity at which an eagle displays vigilance or avoidance behavior,.agitation, and/or flushing. Reductions in distance buffers should be justified in site-specific management plans. Note that unoccupied nests are still protected by law and that destroying nests would violate both state and federal regulations. Recommended distance buffers of in the absence of a visual buffer (See Table 1): • % mile for the following activities: o Any activity that will result in more than one house or permanent construction to include commercial use, buildings 3 or more stories high, activity that would increase human use, or project with a footprint greater than ''/z acre. o Construction of new marinas with routine use by 6 or more boats. o Any use of explosives or activities that produce extremely loud noise, such as blasting, use of jackhammers or gravel crushing equipment, or fireworks. o Forest management activities that include harvesting and heavy truck traffic in areas that don't normally have that type of activity. o Construction of new above ground power and utility lines. • % mile for the following activities: o Any pennanent construction to include single home properties (<3 stories tall) and outbuildings. o Any construction of infrastructure such as roads and trails including dozer lines for fire management activities, except when specifically constructed to save a bald eagle nest from fire. o Forest management activities to including timber harvest layout, snag removal, prescribed fires, planting, and thinning. '/ mile for recreation during the breeding season such as non -motorized activities including hiking, fishing, hunting, camping, rafting, wildlife watching, biking, as well as motorized activities including automobile use, off-road vehicle use, and boat and personal watercraft use. Note: Recreational activities that involve continued movement through an eagle territory (e.g., rafting) have minimal impacts on nesting bald eagles compared to activities that include stopping (e.g., camping, anchoring fishing boats) or constant human use within a bald eagle territory (e.g., popular hiking trails). ® '/4 mile or 1000 feet above nests for helicopters and aircraft during the breeding season except for biologists conducting bald eagle nest surveys. Attempts should be made to coordinate bald eagle nest surveys between agencies/companies to reduce the potential for disruption of nesting activities due to duplicate surveys. Table 2. Conversion table for recommended distance buffers. Miles Feet Meters 1 5280 1600 . 1/2 2640 800 1/4 1320 400 1/8 66 1200 1/16 330 1 100 ADDITIONAL RECOMMENDATIONS FOR BALD EAGLE CONSERVATION A more comprehensive discussion of bald eagle conservation recommendations can be found in the Montana Bald Eagle Management Plan (1994). Reduce the potential for human caused mortality ® Use lead free, non-toxic birdshot, bullets, and fishing tackle throughout Montana. • Remove road -killed animals from alongside major roadways. ® Avoid pesticides where bald eagles may scavenge. To reduce secondary poisoning limit the use of anti -coagulants and other pesticides and ensure all herbicides, pesticides, and fertilizers are disposed of properly. All use of chemicals, including the application and handling, shall follow applicable state and federal laws. Conserve Habitat ® Protect and preserve habitat as described in Montana Bald Eagle Management Plan (1994) especially within %2 anile of water. • Protect patches of habitat for nesting and winter roosting. • Actively manage forest stands to provide future nesting and foraging sites, and winter roost sites with an emphasis on retaining large trees and snags, and protecting habitat for fisheries, which are an important food source for eagles. • Stimulate cottonwood regeneration with natural flow regimes, exclosures, and other tools. • Encourage coordination among agencies and landowners to identify opportunities to modify land stewardship practices that may benefit bald eagles and improve bald eagle habitat. • Evaluate effectiveness of bald eagle habitat enhancement activities and share effective management strategies with others. Minimize impacts of new and existing energy and communication infrastructure Additional conservation and management recommendations regarding utilities and avian interactions are available from the Avian Power Line Interaction Committee. • In areas where mid -span collisions are a problem, near rivers and streams, nest areas, or other flight corridors, bury powerlines whenever possible and ensure proper spacing and marking for above ground powerlines. Orient parallel transmission lines horizontally over stream crossings—don't stack transmission lines vertically. • Use anti -perching devices in areas of high prey abundance and concentrated powerlines to reduce electrocution of eagles. • Position wind farms, communication towers, and high voltage power lines away from nests, foraging areas (areas with high populations of ground squirrels, fish, waterfowl, etc.), winter roost sites, areas where bald eagles may concentrate, or in migration corridors. • Erect power transmission structures with a minimum of 60 in. between lines for bald eagles to minimize eagle electrocution. • Ensure power transmission equipment installations are raptor safe by insulating bushing conductors, using covered jumper conductors, and covering arrestors and cutouts. • Use existing roads and right-of-ways rather than build new ones whenever possible to reduce habitat fragmentation that can negatively affect eagle prey populations. CONTACT INFORMATION FOR ASSISTANCE Montana Fish, Wildlife & Parks Region 1 490 North Meridian Road Kalispell, MT 59901 406-752-5501 Montana Fish, Wildlife & Parks Region 2 3201 Spurgin Road Missoula, MT 59801 406-542-5500 Montana Fish, Wildlife & Parks Region 3 1400 South 19" Bozeman, MT 59718 406-994-4042 Montana. Fish, Wildlife & Parks Region 4 4600 Great Springs Road Great Falls, MT 59405 406-454-5840 Montana Fish, Wildlife & Parks Region 5 2300 Lake Elmo Drive Billings, MT 59105 406-247-2940 Montana Fish, Wildlife & Parks Region 6 54078 US Hwy 2 W Glasgow; MT 59230 406-228-3700 Montana Fish, Wildlife & Parks Region 7 352 I-94 Business Loop Miles City, MT 59301 406-234-0900 10 U. S. Fish and Wildlife Service Montana Field Office 585 Shepard Way Helena, MT 59601 406-449-5225 U. S. Fish and Wildlife Service Billings Field Suboffice 29004 1h Avenue North, Room 301 Billings, MT 59101 406-247-7367 U. S. Fish and Wildlife Service Kalispell Field Suboffice 780 Creston Hatchery Road Kalispell, MT 59901 406-758-6868 0 w U Cd N b0 bD N ob 0 O U `Vrn b0 ' by ' '0 q +� .�! N • � y ai O. Cd c . 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N oco U by N cd O0 `Fddif. . a .� U C1 w N Pb m q - 0 O N c* �t n '+� R r4" L� cd c„ N N i G O ry � fn •D N O REFERENCES Anthony, R. G. and F. B. Isaacs. 1989. Characteristics of Bald Eagle Nest Sites in Oregon. Journal of Wildlife Management 53:148-159. Anthony, R. G., R.W. Frenzel, E B. Isaacs, and M. G. Garrett. 1994. Probable causes of nesting failures in Oregon's bald eagle population. Wildlife Society Bulletin 22:576-582. APLIC (Avian Power Line Interaction Committee). 1994. Mitigating bird collisions with power lines: the state of the art in 1994. Edison Electric Institute, Washington, D. C. 73 pp. APLIC (Avian Power. Line Interaction Committee). 1996. Suggested practices for raptor protection on power lines: the state of the art in 1996. Edison Electric Institute, Washington, D. C. 125 pp. APLIC (Avian Power Line Interaction Committee). 2006. Suggested practices for avian protection on power lines: the state of the art in 2006. Edison Electric Institute, APLIC, the California Energy Commission. Washington, D. C. and Sacramento, CA. 207 pp. Arnett, E. B., R.J. Anderson, C. Sokol, F. B. Isaacs, R. G. Anthony, and W. P. Erickson. 2001. Relationships between Nesting Bald Eagles and Selective Logging in South -Central Oregon. Wildlife Society Bulletin 29:795-803. Aron, C. 2005. South Dakota bald eagle (Haliaeetus leucocephalus) management plan. South Dakota Department of Game, Fish and Parks, Pierre, Wildlife Division Report No. 2005- 01, 33 pp. Becker, J. M. 2002. Response of Wintering Bald Eagles to Industrial Construction in Southeastern Washington. Wildlife Society Bulletin 30:875-878. Chandler, S. K., J. D. Fraser, D. A. Buehler, and J. K. D. Seegar. 1995. Perch Trees and Shoreline Development as Predictors of Bald Eagle Distribution on Chesapeake Bay. Journal of Wildlife Management 59:325-332. Florida Fish and Wildlife Conservation Commission. 2008. Bald eagle management plan; Haliaeetus leucocephalus. Tallahassee, FL, 60 + xii pp. Fraser, J. D., L. D. Frenzel, AND J. E. Mathisen. 1985. Effects The Impact of Human Activities on Breeding Bald Eagles in North-Central Minnesota. Journal of Wildlife Management 49:585- 592. Grubb, T.G., W. L. Robinson, and W.W. Bowerman. 2002. Effects of Watercraft on Bald Eagles Nesting in Voyageurs National Park, Minnesota. Wildlife Society Bulletin 30:156-161. Grubb, T. G. and R. M. King. 1991. Assessing human disturbance of breeding bald eagles with classification tree models. J. Wildlife Management 55(3): 500-511. 12 MBEWG (Montana Bald Eagle Working Group). 1991. Habitat management guide for bald eagles in northwestern Montana. USDA Forest Service Northern Region. 29 pp. MBEWG (Montana Bald Eagle Working Group). 1994. Montana bald eagle management plan, 2nd edition. Bureau of Reclamation. 104 pp. Millsap, B. A., T. Breen, E. McConnell, T. Steffer, L. Phillips, N. Douglas, and S. Taylor. 2004. Comparative fecundity and survival of bald eagles fledged from suburban and rural natal areas in Florida., J. Wildlife Management 68(4): 1018-1031. Richardson, C. T. and C. K. Miller. 1997. Recommendations for Protecting Raptors from Human. Disturbance: A Review. Wildlife Society Bulletin 25:634-638. Stahnaster, M. V., and J. R. Newman. 1978. Behavioral responses of wintering bald eagles to human activity. J. Wildlife Management 42:506-513. Stalmaster, M. V. and J. L. Kaiser. 1999. Effects of Recreational Activity on Wintering Bald Eagles. Wildlife Monographs 137:3-46. Steidl, R. J. and R. G. Anthony. 1996. Responses of Bald Eagles to Human Activity During the Summer in Interior Alaska. Ecological Applications 6:482-491. Stinson, D. W., J. W. Watson, and K. R. McAllister. 2007. Washington state status report for the bald eagle. Washington Department of Fish and Wildlife. 86 + viii pp. USFWS [Department of the Interior, Fish and Wildlife Service]. 2007. National Bald Eagle Management Guidelines. May 2007. 23 pp. WEB SITES VISITED htlp://www.fws.jzov/IL/pdffiles/BEPA.pd http://www.fws.Qov/migratorybirds/baldea lg e.htm http://www.fws. govhnigra.ton birds/CurTentBirdIssues/Manageinent/BaIdEaglg/ApplicationandR eports.html 13 ;bi -- M Cl) < < CU M 0 0 0 F— "for— oa O x - C) W Cl) L) U co UJ After Recording. Return To: _ NorthWestern Energy Lands & Permitting Dept. 4o East Broadway Butte, MT 59701 EASEMENT MODIFICATION AGREEMENT This Easement Modification Agreement ("Agreement"), dated the day of 20_, is made and entered into by and between NorthWestern Corporation, d/b/a NorthWestern Energy, a Delaware corporation, of 4o East Broadway, Butte, Montana 59701-9394 ("NorthWestern"), and the City of Bozeman, a political subdivision of the State of Montana, of P.O. Box 123o, Bozeman, MT 59771 ("Owner"), and provides as follows: Recitals 1. Owner is the owner of certain real property, located in Gallatin County, Montana, which is described as follows: Tract 1-A and Tract 4-A of Certificate of Survey No. 2153, situated in the NW1/4 of Section 36, 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 of Gallatin County, Montana. (the "Real Property") 2. NorthWestern is the holder of a Right of Way Deed for a natural gas pipeline, affecting the Real Property, dated April 12, 195o and recorded on May 17, 1950 in Book 1o1, at Page 444, in the records of the Gallatin. County Clerk and Recorder (the "Easement"). 3. NorthWestern desires to relocate a segment of the natural gas pipeline from its present location the Real Property to a new location on the Real Property, subject to the terms and conditions of this Agreement. Agreement Now therefore, for and in consideration of the sum of $1.00, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, NorthWestern and Owner agree as follows: 1. Relocation of Pipeline. The segment of the pipeline to be relocated, including both the existing location to be abandoned (the "Abandoned Easement") and the new EASEMENT MODIFICATION AGREEMENT PAGE 1 OF 7 location where the pipeline will be built (the "Relocated Easement"), are depicted on the attached Exhibit "A". Subject to the other provisions of this Agreement, NorthWestern shall use reasonable efforts to ensure that the relocation of the pipeline segment is completed in an expeditious manner. All costs and expenses of relocating the segment of the pipeline shall be paid for by NorthWestern. It is understood that the existing pipeline, now located underneath the area to be abandoned, shall remain buried in the ground and that NorthWestern shall have no obligation to remove it. 2. Release of Easement. Effective immediately at the time the relocated pipeline is put into operation NorthWestern shall be deemed to release, remise and quitclaim, without warranty of any kind, that segment of the Easement located upon the Real Property and depicted on Exhibit "A" as "Abandoned Easement". Nothing herein shall be deemed to release or in any way affect any other easement which may benefit NorthWestern, other than the Easement as expressly identified herein, and then solely as is described herein. Further, nothing herein shall affect the Easement in the event it should burden lands other than the Real Property. 3. Grant of Easement. Owner hereby grants unto NorthWestern, for its benefit, and that of its successors, assigns and permittees, a perpetual, non-exclusive easement forty (40) feet in width, upon which to construct, operate, maintain, replace, upgrade and remove one natural gas pipeline, no more than sixteen (16) inches in diameter, and necessary appurtenances, over, under, along and across those portions of the Real Property which are depicted on the attached Exhibit "A" as "Relocated Easement", together with reasonable right of access to and from the easement area over lands of the Owner using existing roads and trails where practicable; the right to use and keep the easement area free and clear of any and all obstructions or structures, except fences; and the right to clear and remove all timber, brush, or vegetation from the easement area that may in Grantee's opinion endanger the pipeline, or necessary appurtenances. It is agreed that the pipeline, and necessary appurtenances shall all be located within the forty (40) foot easement area, and other than the signage and cathodic protection test leads as required under federal regulation, the pipeline, and appurtenances shall be buried. Owner reserves all right to utilize its Real Property provided such use does not unreasonably interfere with the easement granted herein. 4. Reclamation. NorthWestern shall at its own cost and expense and within a reasonable amount of time following initial construction of the pipeline and any subsequent maintenance or repairs to the pipeline, replace or repair all roads, drainage, fences, and other property damaged by the construction, maintenance or repairs to substantially the same condition as existed prior to such work. 5. Abandonment. If at any time after the pipeline is put into operation, NorthWestern, its successors or assigns, intentionally and voluntarily ceases to operate the pipeline for a period of more than five (5) years, the easement as granted herein shall terminate and be of no further force or effect. EASEMENT MODIFICATION AGREEMENT PAGE 2 OF 7 6. Indemnification. NorthWestern agrees to indemnify and save Owner harmless from any claims or demands for injury, loss or damage to any person, entity or property resulting from NorthWestern's, its contractor's, and subcontractor's, use of the easement granted herein for the construction, operation, maintenance or repair to the pipeline and any appurtenances. NorthWestern maintains insurance, including self-insured retention and excess coverage, as set out on Exhibit "B". 7. Modifications. This Agreement supersedes all prior discussions and agreements between the parties with respect to the subject matter hereof and contains the sole and entire agreement between the parties with respect to such subject matter. This Agreement may not be modified or terminated unless in writing signed by the party against whom the same is sought to be enforced. 8. Controlling Law. This Agreement shall be interpreted under and governed by the laws of the State of Montana, without regard to conflict of law rules. 9. Interpretation. This Agreement has been reviewed by both parties, each of whom has had the opportunity to consult with independent counsel regarding it and has done so to the extent that such party desired. No. stricter construction or interpretation of the terms hereof shall be applied against either party as the drafter hereof. 10. Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. 11. Headings. The headings of sections and paragraphs of this Agreement are for convenience of reference only and are not intended to restrict, affect or be of any weight in the interpretation or construction of the provisions of such sections or paragraphs. 12. Certification. Owner represents that it is the sole owner of the Real Property, and has the right to enter into this Agreement. NorthWestern represents that it is the owner of the Easement, and has the right to enter into and perform this Agreement. Further, the individuals signing for the parties each hereby represent that they are duly authorized and empowered to execute this Agreement on behalf of the party for whom each signs, and that once signed that this will be binding on the parties hereto. 13. Attorneys' Fees. In the event either party finds it necessary to employ counsel in order to enforce or rescind any term or provision of this Option Agreement, including any proceeding in bankruptcy before any officer or judge of the U.S. Bankruptcy Court or any proceeding pertaining thereto, the prevailing party shall be entitled to recover from the other party in addition to costs and disbursements allowed by law, the prevailing party's reasonable attorneys' fees. Attorneys' fees shall include any attorneys services rendered prior to the institution of litigation or proceedings in bankruptcy and include all matters pertaining to litigation, or EASEMENT MODIFICATION AGREEMENT PAGE 3 OF 7 proceedings in bankruptcy and include all matters pertaining to litigation, or proceedings in bankruptcy as may be necessarily incurred in such proceedings and shall include an estimate of the attorneys' fees to be incurred by the prevailing party following any initial decision or judgment entered in connection with that matter. 14. Effect. The Easement, as modified hereby, and the additional grants and agreements made by the parties shall run with the land and shall be binding on and shall inure to the benefit of the parties to this Agreement and their respective successors, assigns and permittees. Except as expressly set forth herein, the Easement remains unchanged and in all other respects any other easements held by NorthWestern which are not referenced herein remain unchanged. Signatures and Notary Acknowledgements on Next Page EASEMENT MODIFICATION AGREEMENT PAGE 4 OF 7 City of Bozeman, a political subdivision of the State of Montana By: Jeff Krauss Its: Mayor STATE OF MONTANA ) ).ss COUNTY OF SILVER BOW ) NorthWestern Corporation d/b/a Northwestern Energy a Delaware Corporation By: Patrick Asay Its: Manager - Land & Permitting This instrument was acknowledged before me on , 2o_, by Patrick Asay, known to me to be the Manager - Land & Permitting for NorthWestern Corporation, d/b/a NorthWestern Energy. Printed Name: Notary Public for the State of Montana Residing at: My Commission Expires: STATE OF MONTANA ) )ss. COUNTY OF GALLATIN ) This instrument was acknowledged before me on , 20_1 by , known to be the for The City of Bozeman, a Montana municipal corporation. t\7jTif.`�1�I luE,iJ; Printed Name: Notary Public for the State of Montana Residing at: My Commission Expires: Project: Bozeman East Dr_y Creels Pipeline Agent: Jeff Harmon SAP No: PR 1o8813 - 6o17262-0110 E# EASEMENT MODIFICATION AGREEMENT PAGE 5 OF 7 o*0 r Exhibit A City Of Bozeman No Photo North Park REV. 10-27-15.pdf EASEMENT MODIFICATION AGREEMENT PAGE 6 OF 7 EXHIBIT "B" Proof of Self-btsurance Coverage's 2014-2015 NorthWestern Corporation (dba NorthWestern Energy) Insurance Coverage's NorthWestern Corporation • Is a large publicly traded (Delaware) corporation: o Federal Tax ID number: 46-0172280 • Is self-insured to $1 million for property and property of others in our care, custody, and control • Is self-insured to $2 million for general liability • Is self-insured to $1 million for auto liability • Is self-insured to $2 million for workers compensation liability and is duly registered with the State of Montana as a self-insured entity • Maintains excess liability coverage above the self-insured amounts for catastrophic situations Additional info may be obtained from: Chad Wilde Risk Analyst NorthWestern Energy 600 Market St. W Huron, SD 57350 605-353-7620 Cell 605-354-2705 chad.wilde@northwestem.com EASEMENT MODIFICATION AGREEMENT PAGE 7 OF 7 COMPARABLE LAND SALE NO. 1 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 Location: SWC of Flanders Mill Road and East Baxter Lane in Bozeman, Montana Site Data: 1. Size: 79.87 acres 2. Zoning: See Comments Current Use: Unimproved Legal Description: Northern portion of Tract 1A1 as shown on Certificate of Survey No. 2554A, Gallatin County, Montana. Grantor: Vesta Anderson Sales Price: $2,000,000 Instrument: Warranty Deed Recorded: July 24, 2014 Recording Info.: 2486778 Financing. Cash to the Seller Grantee: City of Bozeman Confirmed Sales Price: $2,000,000 Confirming Party & Phone No.: Broker -Paul Rubright (406) 580-9163 Confirmed By: J. Michael Joki, MAI, SRA Confirmation Date: March 14, 2014 Property Description: This 79.87 acre site is located at the intersection of Flanders Mill Road and East Baxter Lane and at the western fringe of the Bozeman city limits. The broker confirmed this site lies adjacent to the Bozeman city limits and will be annexed into the city upon closing. City sewer and water mains lie adjacent to this site. Once the sale has closed and the site is annexed into the city limits it will adopt a city zoning ordinance that will allow public use as the intended use for this site is to be developed with a soccer facility. Reportedly there are no wetland or high water table issues on this land. The broker reported that this site has been marketed for sale for at least 2 years. Indication At Time Of Sale: $2,000,000 - 79.87 acres= $25,041 /acre. Return to; FirstnY . Stoner do e Dr Suift i Bozeman, MT 59718 rvmtp 9i i When recorded, return to: Pam Spillane Escrow Officer First American Title Company 924 Stoneridge Drive, Unit I Bozeman, MT 59718 Pagel of 3 07/24/2014 11:39:06 AM Fee: $21.00 Charlotte Mills - Gallatin County, MT DEED FOR VALUABLE CONSIDERATION, the receipt of which is acknowledged, the undersigned, BAXTER RANCH HOLDINGS, LTD and ESTATE OF VESTA F. ANDERSON, Spencer Neil Anderson, Personal Representative, parties of the fust part, hereby grant(s) unto: of PO Box 1230, Bozeman, MT 59771 THE CITY OF BOZEMAN, MONTANA party of the second part, all of theirright, title and interest in and to certain real property in Gallatin County, Montana, described as follows: Tract lAl of Certificate of Survey No. 2554B, located in the NW % and SW'/, of Section Three, Township 2 South, Range 5 East, P.M.M., Gallatin County, Montana, acconiing to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana Together with the following interest in Grantors' water rights: 1 share of Grantors' interest in the Farmers Canal Company decreed right 41H 120530-120537 and Sixteen and 6110th percent (15.6 %) interest in Grantor's interest in West Gallatin decreed right 41H 138937-00 Warranty Deed Baxter Ranch Holding Ud/Estate of Vesta Anderson to City of Bozeman Page 1 SUBJECT TO and RESERVING to Grantors all of Grantors' right, claim or interest in Baxter Creek decreed right 41H 126871-00. Togetherwithanyreversion(s),renWnder(s), rents, issues andproBtsthereof, and also all the estate right, title and interest, and right of homestead, possession, claim and demand whatsoever, as well as in l , aw as in equity, of the said parties of the firstpart in or the said premises, and everypart and parcel thereof, with the appurtenances thereto belonging; TO HAVE AND TO HOLD, all the above mentioned and described premises unto the said parties of the second part; SUBJECT pO: a) Reservations and exceptions in patents from the United States or the State of Montana; b) All existing easements and rights-of-way; d) All building, use and zoning restrictions. IN WITNESS WHEREOF, the said parties) ofthe firstpart ha(s)(ve) hereunto settheirhand(s) and seal(s) the day and year first hereinbefore written. STATE OF TEXAS :ss. County of —aILG ,1W BAXTER RANCH HOLDINGS, LTD. ANN MARIE ALLEN, Manager ESTATE OF V/ESTA. F RSON BY: J " SPEN ERSON, Personal Representative On this day of July, 2014 before me, the undersigned, a Notary Public for the State of Texas, personally appeared ANN MARIE ALLEN, Manager, Baxter Ranch Holding, Ltd., known to me to be the person whose name is subscn1W to this instrument and acknowledged to me that she executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed day notarial seal the day and year in this certificate first above written. jpnnt imZ--w-4U .4 Warrnnty Deed (*WESLEY WAYNE MMING kBaxter Ranch Holding Ltd/E,state of Vesta Anderson to Notary Public> City ofBozcman tg State of TexasPa e 2 y Comm. Expires 11-18.2117 Notary Public for the State of Texas Residing at Texas MY Commission Expires: STATE OF MONTANA } County of Gallatin } On this day of July, 2014, before me, the undersigned, a Notary Public for the State of Montana, Personally appeared SPENCER N. ANDERSON, Personal Representative of the ESTATE OF VESTA F. ANDERSON, known tonne to be the person whose name is subscribed to this instrument and acknowledged to me that he executed the saute. IN WITNESS WHEREOF, I have' to set my hand and affixed my notarial seal the day and year in this certificate fust above written. PAMELA J sPILLANE V • NOTARY PUBLIC for the [print name] State of tA,,nlana e "70Ljk Residingal f?e1+1tIIor.• k'� ^lana SEAL ; Notary Public for the State of Montana SEAL My Comm aEion EXIX(as 16 Residing at Montana �} '' Ju 20MY Commission Expires• warranty Doed Baxter Ranch Holding Ltd/Estate of Vesta Anderson to City of Bozeman Page 3 Location: Site Data: COMPARABLE LAND SALE NO. 2 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 East side of Harper Pucket Road at the intersection of East Cameron Bridge Road in Bozeman, Montana. 1. Size : 122.48 Acres 2. Zoning: None Current Use: Unimproved Legal Description: Tract 2 and 3 of Certificate of Survey #1410, located in the SW 1/4 of Section 16 and the NW 1/4 of Section 21, Township 1 South, Range 5 East, Gallatin County, Montana. Grantor: Robert and Gary Gates Recorded Sales Price: $1,650,000 Instrument: Warranty Deed Recorded: December 1, 2015 Recording Info.: 2531721 Financing: Cash to the Seller Grantee: Ron Pike and Shawn Sime Confirmed Sales Price: $1,650,000 Confirming Party & Phone No.: Broker - Brett Tudsburry (406) 209-4500 Confirmed By: J. Michael Joki, MAI, SRA Confirmation Date: December 21, 2015 Property Description: This 122.48 acre site is located at the North end of Harper Pucket Road at the intersection of East Cameron Bridge Road just northwest of the Bozeman city limits. This site has significant I-90 frontage but there is no close by access. The broker confirmed there is plat approval for 177 residential lots which is good through 2017 however it is reportedly the buyers intent to leave this site undeveloped for the foreseeable future. Apparently the issue with developing this site for a residential use is the cost extending water and sewer service. Indication At Time Of Sale: $1,650,000 / 122.48 acres =$13,472 per acre t Return TO Security Title Company P.O. Box 6550 Bozeman, MT 59771-6550 2531721 G115��iCa''�t CharinttefMilts i2Ga11at�in Coun$tY32�AM Fee: $20.00 After Recording 111111111811111111111111111111111I 11111111111111111811111111lIIIIIIIIIIIIIIIIIIIIIIIII Ron Pike Shawn Sime 190 Ratnshom Drive Bozeman, MT 59715 WARRANTY DEED FOR VALUE RECEIVED, ROBERT GATES of and GARY GATES herein referred to as Grantors, does hereby grant, bargain; sell, convey and confirm unto RON PIKE and SHAWN SIMS, of 190 Ramshom Drive, Bozeman, Montana 59715, herein referred to as Grantees, as joint tenants with rights of survivorship, the following described premises in Gallatin County, Montana, to -wit, Tracts 2 and 3 of Certificate of Survey No. 1410, located in the SWI/4 of Section 16 and the NWl/4 of Section 21, Township 1 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. SUBJECT TO reservations and restrictions in federal patents and prior conveyances, mineral reservations, 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 Grantees as joint tenants with rights of survivorship forever. And the said Grantors does hereby covenant to and with the said Grantees that the Grantees are the owners as joint tenants with rights of survivorship of said premises; that Grantees shall enjoy the same without any lawful disturbance; that the same is free from all encumbrances except those limitations set forth above; that the Grantors and all persons acquiring any interest in the same through or from Grantors will, on demand, execute and deliver to the Grantees, at the expense of the Grantees, any further assurance of the same that may be reasonably required; and that the Grantors will warrant to the Grantees all the said property against every person lawfully claiming the same. Ix� �, �h IN 'WITNESS WMREOF, this instrument is executed this 5? day of • 2015. Robert Gates STATE OF MONTANA ) �',,`:ss p. U County o f (,�V d L f This instrument was acknowledged before me on th day o£Aeeam4er, 2015, by KRY e .Ak tA oZ�� Notary ,Public 4 ` Zr �pTAAIq�. for the State of Montana l Residing at: „ , SEAL. Q _ Helena, Montana Printed Name of Notary 9 P� My Commission Expires: Notary Public for the State of Montana oFM� December 18 2018 , Residing at: (SEAT,) My Commission Expires: G at STATE OF MONTANA ) County o (✓i + is� 61j% 6r '/ - NCN�6t� This instrument was acknowledged before me on th day e Beeembef015, by Gary Gates. j Printed Name of Notary Notary Public for the State of Montana Residing at: (SEAL) My Commission Expires: KRYSTA DZIAK : rXoT^Arq4' • ' Notary Public for the State of Montana *o-' ; SEAL. .: �. ��* Residing at: Helena, Montana .,, of rn0 •��M Y Commission Expires: December 18, 2018 COMPARABLE LAND SALE NO. 3 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 Location: West side of Davis Lane and just north of East Baxter Lane in Bozeman, Montana. Site Data: 1. Size : 54.28 acres 2. Zoning: R -3/R-4 Photo Data: 1. Date: February 28, 2014 2. Taken From: Davis Lane 3. Facing: West 4. Taken By: J. Michael Joki, MAI, SRA 5. Comp: Boz 014 Current Use: Unimproved Legal Description: Lot 2A1 of COS No. 2202C, City of Bozeman, Gallatin County, Montana. Grantor: First Interstate Bank Grantee: Michael Tracy Recorded Sales Price: $800,000 Confirmed Sales Price: $800,000 Instrument: Warranty Deed Confirming Party & Phone No.: Broker -Jason Leap Recorded: October 1, 2012 (406) 556-5005 Recording Info.: 2427941 Confirmed By: J. Michael Joki, MAI, SRA Financing: Cash to the Seller Confirmation Date: March 13, 2014 Property Description: This 54.28 acre site is located on the west side of Davis Lane just north of East Baxter Lane and at the western fringe of the Bozeman city limits. This site is accessed from a city maintained street and is zoned with a combination of R-3 and R-4 multi -family residential zoning. A nearby lift station provides city sewer service to the edge of the property and city water lines are adjacent to the site. Approximately 24 of the 54.28 acres is undevelopable due to high ground water and/or wetlands which leaves approximately 30 acres for development. This property was bank owned however it was still on the market- for over 750 days. Indication At Time Of Sale: $800,000 - 54.28 acres = $14,738/acre http://svc.mt.gov/msl/mteadastral/layout.aspx?19 3/18/2014 CzarT AoWrANATITLE AND �c`�,t�' Return to Michael Tracy 31922 Paseo Monte Vista San Juan Capistrano, CA 92675 MTE #7001-11517 2427941 /2012 01:22:53 PM Fee: 314.00 Charlotte Mills - Gallatin County, MT DEED 11111111111111111111111111111 IIII III! 1111111111111111111111111111111111111111 WARRANTY DEED FOR VALUE RECEIVED., FIRST INTERSTATE BANK, a Montana banking corporation, the Grantor, does hereby grant, bargain, sell, convey and confirm unto MICHAEL TRACY of 31922 Paseo Monte 'Vista, San Juan Capistrano, California 92675 the Grantee and his assigns, the following described premises in Gallatin County, Montana, to -wit: Lot 2A1 of Certificate of Survey No. 2202C, a tract of land being remainders of Tract 2A of COS No. 2202A and Tract. 4A-1 of COS No. 2202B, located in the SEI! of Section 34, Township 1 South, Range 5 East, P.M.M., City of Bozeman, 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. TO HAVE AND TO HOLD the said premises, with their tenements, hereditaments, and appurtenances unto the said Grantee and his assigns forever. And the said Grantor does hereby covenant to and with the said Grantee that it 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 Grantor, 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. 2427941 Page 2 of 2 10/01/2012 01:22:53 PM DATED this � day of n �+� 2012. FIRST INTERSTATE BANK, a Montana banking corporation, by STATE OF MONTANA ) ss. County of UP/lau/S/ 0)1� ) On this day of 2012, before me, a Notary Pu is and for said �Sta ,., personally appeared ,. 1% of FIRST INTERSTATE BANK, a Montana banking corporation, known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that the corporation executed the same. oe ANN KOSER Print9d Name : t Pi NOTARY PUBLIC for the NOTARIA STATE OF MONTANA IMY j Notary Public os the State of Montana SEAL #asicangat Billings, Montana Residing at Montana �T`OF�� My 0mmii lonEpites commission expir s: COMPARABLE LAND SALE NO.4 JOKI & ASSOCIATES REAL ESTATE APPRAISERS PO Box 281, Helena, MT 59624, (406) 442-2159 Location: 3662 Durston Road in Bozeman, Montana. This site is located on the north side of Durston Road and just east of Gooch Hill Road. Site Data: 1. Size : 78.06 acres 2. Zoning: SFR -Low Density Photo Data: 1. Date: February 28, 2014 2. Taken From: Durston Road 3. Facing: North 4. Taken By: J. Michael Joki, MAI, SRA 5. Comp: Boz 015 Current Use: Unimproved Legal Description: Lot 2 and Lot 3 of Minor Subdivision No. 201, City of Bozeman, Gallatin County, Montana. Grantor: Hinsley Family LTD Partnership Recorded Sales Price: $1,050,000 Instrument: Trustees Deed Recorded: November 20, 2012 Recording Info.: 2432709 Financing: Cash to the Seller Grantee: Four Corners Construction, LLC Confirmed Sales Price: $1,050,000 Confirming Party & Phone No.: Grantee - John Rosa - Four Corners Construction Confirmed By: Keith O'Reilly, MAI Property Description: This 78.06 acre site is located on the north side of Durston Road and at the western fringe of the Bozeman city limits. This site has good access from a city street, has level topography and was zoned Single Family Residential -Low Density. City sewer service is available from a nearby lift station and city water lines are adjacent to the site. Baxter Creek flows through the southern portion of Lot 3 and the northern portion of Lot 2 and has 70' watercourse setbacks and makes a portion of this site undevelopable. Indication At Time Of Sale: $1,050,000 = 78.06 acres = $13,451 /acre Printing: Layout Page Page l of 1 httn: //svc.mt. Lyov/msl/mtcadastral/lavout.asnx? 15 3/18/2014 'f 1 a 3 \ 1 zR L ., httn: //svc.mt. Lyov/msl/mtcadastral/lavout.asnx? 15 3/18/2014 Aker Recording Please Retum To: Four Corners Construcdon 125 Central Avenue,. Unit lA Bozeman, MT 59718 --^rrrnnAT(TUE t o •Scgn�.� TRUSTEE'S DEED A voluntary petition in bankruptcy was filed in the United States Court for the District of Montana by Debtor(s) Hinesley Family Ltd Partnership Not in Case No. 10-61822 and the administration of said Debtor's estate was duly referred to the Honorable Ralph B. Kirscher, United States Bankruptcy Judge, who thereafter approved the appointment of Joseph V. Womack as Trustee of the Debtor's estate. On the 14" day of November, 2012, the United States Bankruptcy Court entered an Order approving the Motion to Sell Property Free and Clear of Liens and Interests concerning that property described herein below. THEREFORE, the undersigned Joseph V. Womack, Trustee of the bankruptcy estate of Debtor(s) Hinesley Family Ltd Partnership Not, by virtue of the title and powers vested in him by the provisions of the Bankruptcy Code and the Order of the United States Bankruptcy Court for the District of Montana, for good and valuable consideration to him in hand paid, as Grantor, whose address is US Bank Building, Suite 805, 303 North Broadway, Billings, Montana 59101, CONVEYS and QUITCLAIMS to Grantee, Four Corners Construction, LLC of 125 Central Avenue, Unit IA, Bozeman, Montana 59718, all right, title, and interest which he may have in and to the following described real property, situated in the County of Gallatin, State of Montana: SUBJECT TO all of the terms, conditions and provisions of the Order approving Trustee's sale of property dated November 14, 2012, in the above referenced 'bankruptcy matter. TOGETHER WITH all and singular, the tenements, hereditaments and appurtenances thereunto belonging or in anywise apperta' ing. DATED this -�C day of November, 2012. GRANTOR/:/ VC q0S, HV. WOMACK stee for Bankruptcy Estate of Hinsley Family Ltd Partnership No I THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF MONTANA, COUNTY OF GALLATIN, CITY OF BOZEMAN, AND IS DESCRIBED AS FOLLOWS: ao �o LOT 2 OF PLAT OF MINOR SUBDIVISION NO. 201, LOCATED IN THE o S1/2 OF SECTION 4, TOWNSHIP 2 SOUTH, RANGE 5 EAST, P.M.M., LL = GALLATIN COUNTY, MONTANA, ACCORDING TO THE OFFICIAL PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE COUNTY �£= CLERK AND RECORDER OF GALLATIN COUNTY, MONTANA. mr= EXCEPTING THEREFROM: ALL OF LAUREL GLEN SUBDIVISION PHASE eU_= I AND PHASE II, GALLATIN COUNTY, MONTANA. IV C m�— n�= AND a�= 0) w. ®`c= LOT 3 OF MINOR SUBDIVISION NO. 201, LOCATED IN THE S1/2 OF SECTION 4, 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 CLERK AND Nam" RECORDER OF GALLATIN COUNTY, MONTANA. SUBJECT TO all of the terms, conditions and provisions of the Order approving Trustee's sale of property dated November 14, 2012, in the above referenced 'bankruptcy matter. TOGETHER WITH all and singular, the tenements, hereditaments and appurtenances thereunto belonging or in anywise apperta' ing. DATED this -�C day of November, 2012. GRANTOR/:/ VC q0S, HV. WOMACK stee for Bankruptcy Estate of Hinsley Family Ltd Partnership No I STATE OF MONTANA ) ss. County of Yellowstone } This instrument was signed and acknowledged before me on this l6" day of November, 2012, by Joseph V. Womack as Trustee of the HINESLEY FAMILY LTD PARTNERSHIP N01 & Bankruptcy Estate (Case No. 10-61822). SUBSCRIBED AND SWORN TO before me this 1 day of November, 2012. /s/ Vickie Tir V r tom_ Print Vickie Tir i 2 i Notary Public for the State of Montana Residing at Laurel. Montana My Commission Expires 01/30/2016 .. I- �p1AH/ .• YKAW TWY WTAW PUBW fa Mu SEAL ; Myr Vk" /s/ Vickie Tir V r tom_ Print Vickie Tir i 2 i Notary Public for the State of Montana Residing at Laurel. Montana My Commission Expires 01/30/2016 J. MICHAEL JOKI, MAI, SRA State of Montana, Certified General #152 P.O. Pox 281 Melena, 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., ageneral 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 Education Chaitman, Montana Chapter of the A Januaiy, 1996 to September, 2000. P ppraisal Institute, -k Appointed to National Educational Programs Convnittee, 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, 2009-201 CLIENTS: 3 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 Film 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 Ptickly Pear Land Trust The Trust for Public Land Numerous private investors and attorneys. State of Montana Business Standards Division Board of Real Estate Appraisers Uense #: REA-RAG-LIC=152 Status. Active ExpirationDate: 3/31/2016 JOHN MICHAEL JOKI JOKI AND ASSOCIATES PO BOX 281 HELENA, MT 59624 This certificate verifies licensure as: CERTIFIED GENERAL APPRAISER Endorsement: REAL ESTATE APPRAISER MENTOR RI'NEIV oft VERIFY YOUR LICE',�L,:�f 6 tkps a'!c b ii; t rI L �ohlln� lr'' To use license as a Wall License, cutoff excess paper and affix the above to wall for display. Remember to renew online if possible. Benefits of renewing online include: The ability to change an address (for most professions) The ability to print license(s) the same day as the renewal 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:Hebiz.mt.gov/pol