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Leuthauser Ltd 0 2017 Appraisal Report Prepared For Iowa Natural Heritage Foundation Property Owned By Thomas and Phyllis Jenness Property Identification: 55.01-acre tract in SW ¼ 26-92-40 Cherokee County, Iowa Inspection Date: August 16, 2017 Effective Date: August 16, 2017 Vander Werff & Associates, Inc. 215 Main Street, P.O. Box 529 Sanborn, Iowa 0 APPRAISAL REPORT AGRICULTURAL REAL ESTATE “AS IS” “MARKET VALUE” APPRAISAL PREPARED IN COMPLIANCE WITH THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE 2016/2017 EDITION AND FIRREA APPRAISAL PREPARED FOR MR. ROSS BAXTER IOWA NATURAL HERITAGE FOUNDATION 505 5TH AVENUE, SUITE 444 DES MOINES, IOWA 50309 REAL ESTATE APPRAISED OWNED BY THOMAS AND PHYLLIS JENNESS PROPERTY IDENTIFICATION: 55.01-ACRE TRACT IN SW ¼ 26-92-40 CHEROKEE COUNTY, IOWA PREPARED BY GREG TRITLE CERTIFIED GENERAL REAL PROPERTY APPRAISER LICENSED IN IOWA, MINNESOTA, AND SOUTH DAKOTA LICENSE #CG02732 VANDER WERFF AND ASSOCIATES, INC. 215 MAIN SANBORN, IOWA 51248 INSPECTION DATE: AUGUST 16, 2017 EFFECTIVE DATE: AUGUST 16, 2017 REPORT DATE: AUGUST 29, 2017 1 TABLE OF CONTENTS APPRAISAL REPORT AGRICULTURAL REAL ESTATE IOWA NATURAL HERITAGE FOUNDATION PROPERTY LOCATION CHEROKEE COUNTY, IOWA Photograph Views .................................................................................................................................. 3 Transmittal Letter ................................................................................................................................... 9 Vander Werff and Associates, Inc. Privacy Policy .............................................................................. 12 Assumptions and Limiting Conditions.................................................................................................. 13 Certification .......................................................................................................................................... 15 Agricultural Appraisal Report ............................................................................................................... 16 Summary of Salient Facts and Scope of Work .................................................................................... 17 Intended Appraisal Use and User........................................................................................................ 20 Assessor’s Parcel Numbers and Tax Data .......................................................................................... 21 Environmental Supplement and FEMA Flood Map Information .......................................................... 21 Interest Being Appraised ..................................................................................................................... 21 Zoning Ordinance Data ........................................................................................................................ 22 History of Ownership............................................................................................................................ 22 Competency Provision ......................................................................................................................... 22 “Market Value” Definition ..................................................................................................................... 23 Discussion of Appraisal Approaches ................................................................................................... 24 Corn Suitability Rating ......................................................................................................................... 25 Highest and Best Use .......................................................................................................................... 25 General Nature of the Area Being Appraised ...................................................................................... 26 General Description of Cherokee, Iowa .............................................................................................. 30 General Description of Immediate Neighborhood ............................................................................... 32 Current Market Conditions ................................................................................................................... 32 Discussion Concerning Exposure Time .............................................................................................. 32 Personal Property ................................................................................................................................ 33 Direct Sales Comparison Approach .................................................................................................... 34 Discussion Concerning Direct Sales Comparison Approach .............................................................. 47 2 Discussion Concerning Income Approach .......................................................................................... 50 Discussion Concerning Cost Approach ............................................................................................... 50 Final Recommended "Market Value" ................................................................................................... 51 Discussion Concerning Marketing Time .............................................................................................. 51 Addendum: Engagement Letter Legal Documents Maps 3 Photograph Views Old Highway 3-west elevation Land-south elevation South field-south elevation 4 Photograph Views Little Sioux River-south elevation Land-south elevation North field-west elevation 5 Photograph Views South non-cropland north elevation Pond-south elevation Barn-south elevation 6 Photograph Views Land-west elevation Sumner Street-west elevation Land-north elevation 7 Photograph Views Land-north elevation Frame shed-east elevation Barn-east elevation 8 Photograph Views Lean-to east elevation Barn interior Owned access lot off Park Street- west elevation 9 Transmittal Letter Appraisals – Auctions – Real Estate 215 Main Street, P.O. Box 529 Sanborn, Iowa 51248 Phone: 712-729-3264 Fax: 712- 729-5676 August 29, 2017 Mr. Ross Baxter Iowa Natural Heritage Foundation 505 5th Avenue, Suite 444 Des Moines, Iowa 50309 RE: Appraisal of Real Estate owned by Thomas and Phyllis Jenness Dear Mr. Baxter: At your request an appraisal has been completed on the agricultural real estate owned by the above named and located on the east side of Cherokee, Iowa. The property has been inspected and appraised for purposes of determining my opinion of the “as is” "Market Value" as of the date of inspection, August 16, 2017. This appraisal has been prepared in compliance with the 2016/2017 Uniform Standards of Professional Appraisal Practice (USPAP) and in compliance with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). This appraisal report is being prepared in conjunction with the Gramm-Leach Bliley Privacy Act. This Act became effective July 1, 2001. Property Identification (not to be utilized on legal documents): 55.01 acres located in the SW ¼ Section 26, Township 92 North, Range 40 West of the 5th P.M., Cherokee County, Iowa. Please see aerial map following this transmittal letter for delineation of property borders. The property is further identified as assessor parcel ID #’s: • 0726376001 • 0726328006 • 0726355026 The subject property comprises 55.01 acres, more or less. After an investigation of the available information pertinent to the value of the subject property, my opinion of the “as is” “Market Value” as of the date of inspection, August 16, 2017 is: $233,800 or $4,250 per acre (Two Hundred Thirty-three Thousand Eight Hundred Dollars) This valuation is NOT a guarantee of the “sales price”. The valuation developed herein is “Market Values” as defined within this report. The “real estate/business” market is NOT a 10 “perfect” market. The actual sales price for the subject property may be higher or lower than the reported valuation. The property interest being appraised is “fee simple” interest. The value is considered to be in “as is” condition. In addition, the value is considered to be in “as clean” condition. The valuation does not take into account any environmental hazards or potential cleanup costs from these. Clean up costs must be deducted from the “as clean” valuation in order to determine current valuation on this property, if applicable. No warranties or assumptions concerning any mechanical condition of the property are provided herein. Your attention is invited to the data and discussion contained within this report from which, in part, this conclusion was derived. Thank you for the opportunity to prepare this appraisal for you. Respectfully submitted, Certified General Real Property Appraiser Licensed in Iowa, Minnesota, and South Dakota License #CG02732 GT:an 11 12 Vander Werff and Associates, Inc. Privacy Policy The implementation of the Gramm-Leach-Bliley Act, effective July, 2001 requires all financial service companies (including appraisers) to notify their clients of their (the company’s) policies to protect your non-public information. If you have questions you can contact us at 712-729-3264 _________________________________________________________________________________________ Vander Werff and Associates, Inc. understands our clients’ concerns about the privacy of their information collected. Our company is dedicated to protecting the confidentiality and security of nonpublic personal information we collect about our customers
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