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Appraisal of Development Site Parcels A, B, C, D & E Port Renfrew, British Columbia

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Appraisal of Development Site Parcels A, B, C, D & E Port Renfrew, British Columbia APPRAISAL OF DEVELOPMENT SITE PARCELS A, B, C, D & E PORT RENFREW, BRITISH COLUMBIA VALUATION DATE February 3, 2017 PREPARED FOR Port Renfrew Management Ltd. Our File: 7626-V-LSA-LMS896 March 2, 2017 Port Renfrew Management Ltd. 96 Gleneagles View Cochrane, Alberta T4C 1P2 Attention: Mr. Karl Ablack Dear Sir: Re: Appraisal of Subdivision Site ±435 Acres of Parcels A, B, C, D, and E, Port Renfrew, British Columbia As requested, we have completed an analysis in order to provide our opinion of the current market value of the above noted property properties. We have valued the properties under two (2) separate components. Component One (1) - We have completed an analysis in order to provide our opinion of the current market value assuming the Parcels A, B, C & D have been assembled into one (1) large parcel, taking into consideration the development potential of the property under the current CR-1, Community Residential Zoning. These parcels combined have a total square footage of ±367 acres (rounded). We have valued this parcel based on the Subdivision Development Approach. Component Two (2) - We have completed an analysis in order to provide our opinion of the current market value of Parcel E under the current RL, Resource Land Zoning. This parcel is ±69 acres (rounded). We have valued this parcel based on the Direct Comparison Approach. The effective date of the value estimate is the date of inspection, February 3, 2017. -2- It is our considered opinion that, subject to the critical assumptions, contingent and limiting conditions detailed in this report, the current market value of the subject property as at February 3, 2017 is: Value Estimates Current market value assuming the Parcels A, B, C & D have been assembled into one (1) large parcel, taking into Component (1) $35,000,000 consideration the development potential of the property under the current CR-1, Community Residential Zoning. Current market value of Parcel E under Component (2) $ 620,000 the current RL, Resource Land Zoning. A detailed description, summary and analysis leading to the conclusion of value is included herein. Should you require further information with regard to this report, please do not hesitate to contact us. Yours very truly, D.R. COELL & ASSOCIATES INC. Per: Inspected & Prepared By: Inspected & Prepared By: Mishelle Martin, AACI, P.App, RI Alanna Gagliani, B.Sc, AIC Candidate TABLE OF CONTENTS Section Page Executive Summary ........................................................................................................ 1 Definition of Market Value ............................................................................................... 3 Property Rights Appraised .............................................................................................. 4 Relevant Dates ................................................................................................................ 4 Scope of the Report ........................................................................................................ 5 Sales History of the Property ........................................................................................... 6 Contingent and Limiting Conditions ................................................................................. 7 Critical Assumptions ........................................................................................................ 9 Area Description ............................................................................................................ 11 Site Photographs of Subject Parcels ............................................................................. 16 Description of Parcels ................................................................................................... 17 Site Photographs ........................................................................................................... 19 View of Site ................................................................................................................... 19 Description of Proposed Development Site ................................................................... 20 Assessment and Taxation ............................................................................................. 22 Land Use Controls......................................................................................................... 23 Highest and Best Use .................................................................................................... 25 Valuation Procedure ...................................................................................................... 27 The Subdivision Development Approach of Parcels A Through D ................................ 29 Sales Summary and Analysis ........................................................................................ 41 The Subdivision Development Approach – Land Valuation ........................................... 45 Direct Comparison Approach ........................................................................................ 50 Sales Summary and Analysis ........................................................................................ 55 Final Estimate of Value ................................................................................................. 58 Exposure Time .............................................................................................................. 59 Appraiser's Certification ................................................................................................ 60 Addenda: Title Search Prints CR – Community Residential Zone RL – Resource Land Zone 7626-V-LSA-LMS896 1 EXECUTIVE SUMMARY Civic Address: Parcel A, B, C, D and E, Port Renfrew, BC Legal Description: Parcel A PID: 009-592-423 Parcel A (DD 143426i) of Section 97, Renfrew District, Except That Part in Plans 15462, VIP77871 and EPP2497 Parcel B PID: 009-565-787 West ½ of northwest ¼ of Section 36, Township 13, Renfrew District Except Plan 5109, 24267, 24755 Parcel C PID: 000-468-291 East ½ of Northwest ¼ of Section 36, Township 13, Renfrew District Except Parts in Plan 22475, 24267, 24755, 29515, 41154, 50189 VIP59967 Parcel D PID: 009-565-752 Portion Northeast ¼, Section 36, Township 13, Renfrew District Parcel E PID: 009-565-817 Portion Fraction of the Southwest ¼, Section 36, Township 13, Renfrew District Electoral Area: Juan de Fuca Electoral Area H Parcel Size: Parcel A: 87.2 acres Parcel B: 52.1 acres Parcel C: 67.0 acres Parcel D: 159.3 acres Parcel E: 69.4 acres Total: ±435 acres Zoning: Component One (1): CR-1, Community Residential Zone on Parcels A to D Component Two (2): RL, Resource Land Zone on Parcel E 7626-V-LSA-LMS896 2 Highest & Best Use: As at the appraisal date, the highest and best use of the site is concluded to be for a residential development, in accordance with the properties’ zoning provisions. Valuation Approach: Component One (1): Subdivision Development Approach Component Two (2): Direct Comparison Approach Effective Date: February 3, 2017 Final Value Estimates: Value Estimates Current market value assuming the Parcels A, B, C & D have been assembled into one (1) large parcel, taking into consideration the Component (1) $35,000,000 development potential of the property under the current CR-1, Community Residential Zoning. Current market value of Parcel E under the current RL, Resource Component (2) $ 620,000 Land Zoning. PARCEL B PARCEL C PARCEL D PARCEL A PARCEL E 7626-V-LSA-LMS896 3 PURPOSE AND INTENDED USE OF THE APPRAISAL The purpose of this appraisal is to estimate the current market value of the development site described as follows: Component (1) - We have completed an analysis in order to provide our opinion of the current market value assuming the Parcels A, B, C & D have been assembled into one (1) large parcel, taking into consideration the development potential of the property under the current CR-1, Community Residential Zoning. These parcels combined have a total square footage of ±367 acres (rounded). We have valued this parcel based on the Subdivision Development Approach. Component (2) - We have completed an analysis in order to provide our opinion of the current market value of Parcel E under the current RL, Resource Land Zoning. This parcel is ±69 acres (rounded). We have valued this parcel based on the Direct Comparison Approach. The intended use of this appraisal is to provide valuation guidance to the owner(s) who are the clients. DEFINITION OF MARKET VALUE Market value is defined by the Appraisal Institute of Canada as follows: “The most probable price which a property should bring in a competitive and open market as of the specified date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.” Implicit in this definition is the consummation of a sale as of the specified date and the passing of title from seller to buyer under conditions whereby: 1) Buyer and seller are typically motivated; 2) Both parties are well informed or well advised and acting in what they consider their best interests; 3) A reasonable time is allowed for exposure in the open market; 4) Payment is made in terms of cash in Canadian dollars or in terms of financial arrangements comparable thereto; and 5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 7626-V-LSA-LMS896
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