3011 Michoud Boulevard New Orleans, LA 70129 + Lot 13ͲB5A

3011MichoudBoulevard EFFECTIVEDATEOFMARKETVALUE:June29,2016 NewOrleans,LA70129+Lot13ͲB5A(Parcel1) &ŽƌŵĞƌ:Ăǌǌ>ĂŶĚх^ŝǆ&ůĂŐƐdŚĞŵĞWĂƌŬ^ŝƚĞнǆĐĞƐƐ>ĂŶĚ FILE#16Ͳ1357

PREPAREDFOR: PREPAREDBY: IndustrialDevelopmentBoardoftheCityofNewOrleans,Inc. P.M.McEnery,MAI,CRE Careof:Mr.DavidM.Wolf S.ParkersonMcEnery,MAI AdamsandReese,LLP TheMcEneryCompany OneShellSquare 810UnionStreet,FourthFloor 701PoydrasStreet,Suite4500 NewOrleans,LA70112 NewOrleans,LA70139 AppraisalReport|ASISMarketValue+DemolitionAnalysis The McEnery Company

Established 1980 Real Estate Appraisal, Brokerage and Consulting www.mceneryco.com

August4,2016 IndustrialDevelopmentBoardoftheCityofNewOrleans,Inc. Careof:Mr.DavidM.Wolf AdamsandReese,LLP OneShellSquare 701PoydrasStreet,Suite4500 NewOrleans,Louisiana70139 Re: 3011MichoudBoulevard NewOrleans,LA70129–The“MainSite” 55195MichoudBoulevard, NewOrleans,LA70129–“Parcel1Ͳ(Lot13ͲB5A)” &ŽƌŵĞƌ:Ăǌǌ>ĂŶĚх^ŝǆ&ůĂŐƐdŚĞŵĞWĂƌŬ^ŝƚĞнǆĐĞƐƐ>ĂŶĚ OurFileNumber:16Ͳ1357 DearMr.Wolf: In accordance with your letter of engagement, we have physically examined the referenced property and analyzed matters applicable to the determination of its current market value. Enclosedisourreportthatdescribesourmethodofapproachandcontainsrelevantdatagathered andusedtoreachourfinalopinionofmarketvalue.Thisappraisalcomplieswiththereporting requirements mandated by the 2016Ͳ2017 Edition of the United Standards of Professional AppraisalPractice(USPAP)adoptedbytheAppraisalStandardsBoardofTheAppraisalFoundation. Additionally, as per Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) minimumappraisalstandards,wehavecompletedpreviousappraisalsofnumerousspeculative developmenttractscomparabletothesubjectpropertyinmarketsacrossLouisiana,Mississippi, AlabamaandTexas. Additionally,wehavealsocompletedpriorappraisalsoflargeͲscopespecialpurposeproperties similartotheamusementparkwhichformerlyoperatedonthesubject’sprimarysitearea.These priorassignmentsincludepropertiessuchasoneoftheonlypavedandlicensedautomobilerace tracksinLouisiana,multiplewaterparks,numerousmovietheatres,licensedgamingpropertyand similaruseentertainmentͲorientedrealestate. This report is intended for use only by the Industrial Development Board of the City of New Orleans,Inc.,asrepresentedbyMr.DavidM.WolfofAdamsandReese,LLP.

810 Union Street, Fourth Floor 170 Moores Road New Orleans, Louisiana 70112 Mandeville, Louisiana 70471 Telephone: 504-274-2701 Telephone: 985-246-3900 Facsimile: 504-274-2702 Facsimile: 985-246-3901

Real Estate Licenses and Certifications held in Louisiana, Mississippi, Alabama, Florida, Texas and Arkansas Mr.Wolf Page2 August4,2016 Wearenotresponsibleforunauthorizeduseofthisreport.Perthetermsofourengagement letter,thepurposeofthisappraisalistodeterminetheASISmarketvalueoftheFeeSimple Interestinandtosubjectproperty.Ourappraisalreportcontainsatotalof152numberedpages. ThesubjectofthisreportiscomprisedoftwoparcelsofrealpropertylocatedinNewOrleansEast, justnorthofLakeForestBoulevard,justwestofInterstate510andsouthofInterstate10.The municipal address attached to the primary land area comprising the subject of this appraisal report,knownthroughoutthisreportasthe“MainSite”,is3011MichoudBoulevard,NewOrleans, Louisiana70129.The“MainSite”,whichalsoincludessignificantpersonalproperty,measuresan estimatedtotallandareaofapproximately162.02acres,whichincludesanestimated16.13acres oflandareasubmergedbeneathexistingwaterfeaturesonͲsite,therebyresultinginanestimated netusableareaofapproximately145.89acres.ThemainsitewasoriginallythelocationofaSix Flagsamusementpark,formerly“JazzLand”.Theamusementparkhasbeenclosedsincethedate ofHurricaneKatrina,August29,2005.Allelementsoftheamusementparkcampusinclusiveof thepermanentbuildingimprovementsandrideshaveremainedopentotheelementsandsubject tovandalismandbroadneglect.Thereareanestimated26totalnumberofridesstillonͲsite,as wellasapproximately180,088squarefeetofguttedbuildingstructuresinoverallpoorcondition. Thesecondparcel,isanareaofundevelopedlandreferredtoas“Parcel1”.Thisareaofland measuresapproximately65.35acres,anddoesnotappeartohaveeverbeendeveloped.Thissite willlikelyrequireprocurementofa404WetlandsPermitfromtheArmyCorpsofEngineersprior todevelopment,whichcouldbeaccompaniedbysignificantwetlandsmitigationcostsnecessary inadvanceofpermitprocurement.Betweenthispossibilityandthecostassociatedwithfillofthe sitetostreetgrade,thecurrentperacremarketvalueofthiscomponentofthesubjectproperty willbegreatlydepressedcomparedtotheperacreopinionofmarketvalueofthe“MainSite” underlyingland. There is significant movable, personal property located on “Main Site”.This property has remainedonͲsiteandgenerallyunͲtouchedandcompletelyexposedsinceHurricaneKatrina.In advanceofourengagementforappraisalservicesrelatedtothesubjectproperty,therehasbeen onͲgoingpublicdebateastotheapplicabilityanddurabilityofthisonͲsitepersonalpropertyasit relatestothepotentialtoreͲopenanotheramusementparkonͲsitewithincorporationandreturn oftheexistingrides,rollercoasters,personalpropertyandverticalrealpropertyimprovements intoanultimatelyreintroducedamusementpark. InordertoconfirmtheplausibilityofanypossiblevalueoftheexistingonͲsitepersonalproperty withincorporationintoanewamusementparkconcepttobedevelopedonthe“MainSite”,we engagedtheservicesofasubͲcontractor,ZĞǀWƌŽΘƐƐŽĐŝĂƚĞƐ,todeterminethemarketvalueof thepersonalpropertyonͲsite.OnJuly29,2016,withappropriatesecuritydetail,wetouredthe amusementparkcampuswiththreerepresentativesfromZĞǀWƌŽΘƐƐŽĐŝĂƚĞƐtoprovideaccess andvisualinspectionofthepropertyinquestion.

Mr.Wolf Page3 August4,2016 ZĞǀWƌŽΘƐƐŽĐŝĂƚĞƐ was founded in 1982, and is a regionally respected movable property appraisalfirmwithextensiveexperienceinthevaluationofmovablepropertycomparabletothe property onͲsite. More information regarding ZĞǀWƌŽΘƐƐŽĐŝĂƚĞƐ can be found at http://www.revproandassociates.com/home.On July 18, 2016, Andrew Badeaux, ASA, with RevPro&AssociatesprovidedanOpinionLetterwhichprovidesanopinionstatingthefollowing, whichispresentedinsummarizedform: ϭ͘ dŚĞĂƐƐĞƚƐŽŶͲƐŝƚĞĂƌĞŝŶĂ͞ƐĐƌĂƉ͟ĐŽŶĚŝƚŝŽŶ Ϯ͘ tŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞƐƚƌƵĐƚƵƌĂů͕ĞůĞĐƚƌŝĐĂůĂŶĚƉŽǁĞƌƚƌĂŝŶĐŽŵƉŽŶĞŶƚƐ͙ƚŚĞƐĞŝƚĞŵƐǁŽƵůĚ ŶĞǀĞƌďĞƵƐĂďůĞĂƐĂŵƵƐĞŵĞŶƚƉĂƌŬƌŝĚĞĐŽŵƉŽŶĞŶƚƐĂŐĂŝŶ͘ ϯ͘ ^ŝŵŝůĂƌůǇƐƚƌŝŶŐĞŶƚŝŶĚƵƐƚƌŝĞƐǁŽƵůĚƉƌŽŚŝďŝƚƌĞͲƵƐĞŽŶĂƐĂĨĞƚǇĂŶĚůŝĂďŝůŝƚǇďĂƐŝƐ͘ ϰ͘ tŚŝůĞĂĨĞǁŽĨƚŚĞŶŽŶͲƐƚƌƵĐƚƵƌĂůŝƚĞŵƐƐƵĐŚĂƐĂƌŝĚĞΖƐĨŝďĞƌŐůĂƐƐĐĂƌƐŵĂǇŚĂǀĞĂŶŽŶͲ ǌĞƌŽ ĨĂŝƌ ŵĂƌŬĞƚ ǀĂůƵĞ ĂƐ ŶŽǀĞůƚŝĞƐ͕ ƚŚĞ ƐŵĂůů ƉŽƚĞŶƚŝĂů ŵĂƌŬĞƚ ĂŶĚ ƚŚĞ ĚŝĨĨŝĐƵůƚǇ ŝŶ ƌĞŵŽǀŝŶŐ ĂŶǇ ŝƚĞŵƐ ĨƌŽŵ ƚŚĞ ĐĂŵƉƵƐ ǁŽƵůĚ ƌĂŝƐĞ ƚŚĞ ůŝƋƵŝĚĂƚŝŽŶ ĐŽƐƚƐ ƐƵďƐƚĂŶƚŝĂůůǇ͘ ŽƵƉůĞĚǁŝƚŚƚŚĞĐŚƌŽŶŽůŽŐŝĐĂůĂŐĞŽĨƚŚĞŝƚĞŵƐ͕ǁŚŝĐŚŝƐĂƚůĞĂƐƚϭϰǇĞĂƌƐ͕ĂŶĚĂŵƵĐŚ ŚŝŐŚĞƌĞĨĨĞĐƚŝǀĞĂŐĞĚƵĞƚŽŶĞŐůĞĐƚĂŶĚŽƚŚĞƌĨĂĐƚŽƌƐŶŽƚĞĚĂďŽǀĞ͕ƚŚĞĨĂŝƌŵĂƌŬĞƚǀĂůƵĞŝƐ ĂŶƚŝĐŝƉĂƚĞĚƚŽďĞƐŽůŽǁƚŚĂƚƚŚĞƌĞǁŽƵůĚďĞŶŽŶĞƚůŝƋƵŝĚĂƚŝŽŶǀĂůƵĞ͘dŚĞƌŝĚĞƐΖĐĂƌƐǁŽƵůĚ ŶŽƚŶŽƌŵĂůůǇďĞĂŶŝƚĞŵŽĨĚŝƐƚŝŶĐƚŝŶƚĞƌĞƐƚ͕ďĞĐĂƵƐĞŝŶĂŶŽƌŵĂůůŝƋƵŝĚĂƚŝŽŶƐĐĞŶĂƌŝŽƚŚĞǇ ǁŽƵůĚƌĞŵĂŝŶƉĂƌƚŽĨĞĂĐŚǁŽƌŬŝŶŐƌŝĚĞ͘ AcompletecopyoftheOpinionLetterprovidedbyZĞsWƌŽΘƐƐŽĐŝĂƚĞƐisincludedintheattached addenda. WithrelianceontheopinionrenderedbyZĞǀWƌŽΘƐƐŽĐŝĂƚĞƐ,ourappraisalmakesnoconsideration foranyarguablevalueinuseortraditionallyinterpretedmarketvalueconceivablyassociatedwith themovablepersonalpropertyonͲsite.ZĞǀWƌŽΘƐƐŽĐŝĂƚĞƐconfirmedthatthevalueoftheexisting movablepropertyandsteelridecomponentsexistinasalvage,orscrap,valuestate. Thus,implicitinthe“RevProLetter”isthatthereissignificantremainingsteelonsitewhichcan beextractedforsaleinasalvageorscrapmetalform.Thatbeingsaid,theprocessofextraction and the cost associated with removal and sale of the steel is significant.In order to fully understandtheimpactofthevaluecontributionoftheexistingsteelonͲsite,wehaveworked directly with a local demolition contractor, dŚĞ ĞŵŽ ŝǀĂ ĞŵŽůŝƚŝŽŶ͕ >>, as well as an internationalscrapmetalcompanywithalocationinNewOrleans.dŚĞĞŵŽŝǀĂĞŵŽůŝƚŝŽŶ͕ >>isaverysuccessfulandreputablelocaldemolitionfirm,andmoreinformationregardingdŚĞ ĞŵŽ ŝǀĂ ĞŵŽůŝƚŝŽŶ͕ >> can befound at http://demodiva.com/.During the course of this appraisalprocess,weconductedtwoseparatesitevisitswiththedemolitioncontractor,aswellas representativesfromthescrapmetalcompanytoascertainthemarketabilityofthesteelonͲsite withdueandcarefulconsiderationforthecostandprocessofdisassemblingthesteelstructures onͲsite.

Mr.Wolf Page4 August4,2016 Thepurposeofourmeetingswithbothpartieswasultimatelytodeterminethenetadd,ornet loss,tothepropertythattheexistingsteelstructuresandrideequipmenthavetotheunderlying valueoftheland.BetweentheridesonͲsite,andtheextensivestructures,thereisasignificant demolitionandremovalexpensethathastobeconsideredbyanyprospectivepurchaserofthe property. Forreasonsrelatedtoourdeterminationofthehighestandbestuseoftheproperty,wedonot findtheexistingverticalimprovementstoprovideanycontributorymarketvaluetothesubject property.Effectively,theideathatthesestructurescanbeadaptedintoanyreͲdevelopmentplan ishighlysuspectasitcomparestowhatthemarketwillultimatelydictaterelativetoanyeventual newlanduseintroducedontheproperty.Forinstance,ifanindustrial/distributionusewould provetobeafeasibledevelopmentoptionforthesite,theexistingstructureswouldverylikelybe viewedasanimpediment.Thesamegoesfor,say,alowͲincomehousingtaxcreditmultiͲfamily conceptonaportionofthesite.Accordingly,inadditiontodemolitionandsaleoftheexisting rideimprovements,ouranalysisalsoconsidersthecostassociatedwithdemolitionoftheexisting verticalpermanentrealpropertyimprovementsonͲsite. The conclusion of the site and building assessments performed by ĞŵŽůŝƚŝŽŶ ŝǀĂ, as accompaniedbythelocalsteel/scrapcompany,yieldedadetailedestimatereflectiveofthecost ofremovalofallverticalrealandpersonalpropertyimprovementslocatedonͲsite.Thetotal estimatedcostofthisworkandprocess,whichaccountsforthecontributorynetadditionofvalue providedbytheopportunitytosellthescrapmetalis$1,311,903.Thisestimateisbasedvisual siteinspectionandinventoryofnearlyeveryverticalimprovementonͲsite.Thiscostisacostthat anyprospectivepurchaserofthesubject“MainSite”willhavetoaddressunderanalternateuse planforthesubjectproperty.Giventherealprobabilitythanthenextgenerationuseofthisland areamaynotmatchwiththeexistingbuildingandrideplanonͲsite,thiscostmustbededucted fromtheopinionoftheunderlyinglandvaluereportedforthesubjectproperty.Thebasisforthis methodology relies on the reality that the most applicable comparable sales indicative of the marketvalueofthesubjectpropertydidnotpossessthesamedevelopmentalchallengeswith respecttothesignificanceofthesubject’sexistingstate“asimproved”. Thus,basedonourdeterminationofhighestandbestuseasaspeculativelandplay,ascoupled withexpertopinionsrelatedtothelimitednatureofthesalvagevalueofonͲsitepersonalproperty to include the amusement park related infrastructure, our appraisal report concludes to an opinionoftheASISmarketvaluetobedeterminedbyasubtractionofdemolitioncostsassociated with removal of the existing vertical improvements to the “Main Site”, which includes the amusement park rides and roller coasters.Effectively, given the speculative nature of the developmentoptions,itisouropinionthatanyprudentbuyerwilldulyaccountforremovaland demolitionofallpropertyonͲsitewhichwouldpotentiallybeanimpedimenttoanalternateuse.

Mr.Wolf Page5 August4,2016 Accordingly,withinthisappraisal,wehavedevelopedatraditionalland/sitevaluationindicativeof theunderlyingvalueofthesubjectproperty–withtwoseparatecomparablesets:onepertinent tothe“MainSite”asanalreadydevelopedtractwithsignificantexistinginfrastructureandfillin place,andasecondsetofcomparablesalesreflectiveofthemarketvalueof“Parcel1”asaraw developmenttractstilllackingwetlandsmitigationandpermittingaswellasnecessaryfill.Integral to the conclusions herein are the inferences drawn from the included Level B market and marketability analysis.The opinions of value expressed in this report are conditioned on the StatementofCertificationandtheStatementofAssumptionsandLimitingConditionsthatare includedwithinthereport.Basedonthedataandanalysescontainedherein,itisouropinionthat theASISMARKETVALUEoftheFeeSimpleInterestofthesubjectofthisreport,includingBOTH “TheMainSite”and“Parcel1”,andwithdueconsiderationforthesignificantcostofdemolitionand removalofallpersonalandrealpropertyasweightedagainstanysalvagevalueofthepropertyonͲ site,asofJune29,2016is: THREEMILLIONTWOHUNDREDANDSIXTYTHOUSANDDOLLARSANDNO/100* ($3,260,000)* TheMainSite: $3,000,000(afterdeductionsfordemolition) Parcel1: $260,000 Thisistocertifythatwehavenointerest,presentorcontemplated,intheappraisedproperty.Our opinionsofvaluearesubjecttotheGeneralandSpecialAssumptionsandLimitingConditions, CertificationandRestrictionUponDisclosureandUsewhicharestatedinthebodyofthereport. Respectfullysubmitted,

______ ______ P.M.McEnery,MAI,CRE S.ParkersonMcEnery,MAI LouisianaStateCertifiedGeneral LouisianaStateCertifiedGeneral RealEstateAppraiser#G1102 RealEstateAppraiser#G1526 *ThisvalueissubjecttotheExtraordinaryAssumption(s)asstatedintheScopeoftheAppraisal.

SUMMARYOFSALIENTFACTSANDCONCLUSIONS GENERAL PropertyAddresses: 3011MichoudBoulevard NewOrleans,LA70129–“TheMainSite” 55195MichoudBoulevard, NewOrleans,LA70129–“Parcel1”(Lot13ͲB5A) Client: Industrial Development Board of the City of New Orleans,Inc.(“TheIDB”) Ownership: Industrial Development Board of the City of New Orleans,Inc.(“TheIDB”) Purchaser: Notapplicable Borrower: Notapplicable InterestAppraised FeeSimple TypeofValue: MarketValue–ASIS DateofReport: August4,2016 PropertyInspectedBy: P.M.McEnery,MAI,CRE,S.ParkersonMcEnery,MAI, andNathanProsser IntendedUse: Theintendeduseisforassetmanagementrelatedtoa potentialdispositionoftheproperty. IntendedUser(s): TheintendeduserisIndustrialDevelopmentBoardofthe CityofNewOrleans,Inc.,asrepresentedbyMr.DavidM. WolfwithAdamsandReese,LLP. SaleHistory: The current owner, “The IDB”, officially acquired all property now comprising the subject property in Novemberof2009.Thisprocesswassecuredthrougha settlementagreementwithSixFlags,Inc.,underwhich SixFlags,Inc.madeapaymentof$3,000,000totheCity of New Orleans, as per termination and guaranty agreementsdatedNovember13,2009.Additionally,the CityofNewOrleansalsoagreedtoguarantyaloaninthe amountofapproximately$11,550,000.

vi The current balance on the note according to City recordsis$4,555,000. TheactualpropertytransferisrecordedunderNotarial Archive #2009Ͳ45319, and the lease cancellation agreements and guaranty are recorded under NA #’s 2009Ͳ45317and2009Ͳ45316. Thesubjectpropertyhasnotchangedownershipwithin the past three years, and has not changed ownership sincetheformalacquisitionnotedin2009.Tothebestof our knowledge, the subject property has not been recently marketed for sale, nor is it known to be encumberedbyapendingsale/purchaseagreement. Except for the ongoing asset management related processes, we are unaware of any other transactions thatmayaffecttheproperty. LegalDescription: Lots 13ͲB5A, J2ͲDͲ1, JZL, J2ͲB, and 13B4BͲ1, Section 1, Township11South,Range13East,ThirdDistrictoftheCity ofNewOrleans,OrleansParish,StateofLouisiana Specifically,thesitesizesandlegaldescriptionsarebroken downasfollows: Parcel# Lot# Acres Parcel1 65.3548 DĂŝŶ^ŝƚĞ Parcel2 LotJ2ͲDͲ1 13.2268 Parcel3 LotJZL 139.9462 Parcel4 LotJ2ͲB 7.9703 Parcel5 Lot13B4B 0.8724 MainSiteTotal 162.0157 Zoning: GPD General Planned District, CͲ2, AutoͲOriented CommercialDistrict (CityofNewOrleansPlanningandZoning)

vii FloodZone: A1 HighestandBestUse(AsVacant): Speculativedevelopmenttractwithpotentialrepositioning towardanindustrial/distributionuse HighestandBestUse(AsImproved): Demolitionofexistingimprovementswithcreationofaclean andcleartractsuitablefornewdevelopmentalignedwith thehighestandbestuse“asvacant” Marketing&ExposureTime: LessthantwentyͲfourmonths VALUEINDICATIONS LandValue–The“MainSite”: $4,376,700–“AsIFVacant” LessNETDemolitionCost: ($1,311,903) LessNETDemolitionCostImpactAdjustment: ($21,277)–SeeReportPage7 LessNETProjectManagement/Profit: ($39,357)–3%ofdemolitioncost ASISMarketValue–The“MainSite”: $3,004,163–roundedto: $3,000,000 LandValue–“Parcel1”: $260,000–“AsVacant” ReconciledValue(s): AsIsMarketValue–ENTIREPROPERTY ValueConclusion(s) $3,260,000 EffectiveDate(s) June29,2016 PropertyRights FeeSimple

viii AERIALVIEWS

Parcel1

MainSite

Subject Property

Ͳ^ŝƚĞŽƵŶĚĂƌŝĞƐƌĞƉƉƌŽǆŝŵĂƚĞͲ

ix SiteMaps–“MainSite”

x SiteMaps–“MainSite”

&ƵůůďƌĞĂŬĚŽǁŶŽĨŝŵƉƌŽǀĞŵĞŶƚƐĂŶĚƌŝĚĞŝŶǀĞŶƚŽƌǇŝŶĐůƵĚĞĚŝŶĞƐĐƌŝƉƚŝŽŶŽĨ/ŵƉƌŽǀĞŵĞŶƚƐ

iii SiteMaps–“Parcel1”(Lot13ͲB5A)

iv SiteMaps–“Parcel1”(Lot13ͲB5A)

v SITEVIEWS–MAINSITE

iii

vii SITEVIEWS–PARCEL1

viii TABLEOFCONTENTS SummaryofSalientFactsandConclusions...... vi AerialViews...... ix SiteViews–MainSite...... iii SiteViews–Parcel1...... viii TableofContents...... ix Certification...... 1 ScopeofWork...... 2 AssessmentandTaxes...... 10 Zoning...... 11 SubjectPropertyDescription...... 12 SiteAnalysis...... 12 DescriptionoftheImprovements...... 15 MarketAreaAnalysis...... 29 RegionalandLocalMarketandMarketabilityAnalysis...... 43 HighestandBestUse...... 70 Land/SiteValuation...... 78 “MainSite”Land/SiteValuation...... 79 “Parcel1”Land/SiteValuation...... 126 FinalReconciliation...... 151 AssumptionsAndLimitingConditions...... Addenda...... Glossary......

ix 1 CERTIFICATION tĞĐĞƌƚŝĨǇƚŚĂƚ͕ƚŽƚŚĞďĞƐƚŽĨŽƵƌŬŶŽǁůĞĚŐĞĂŶĚďĞůŝĞĨ͗ x Thestatementsoffactcontainedinthisreportaretrueandcorrect. x Thereportedanalyses,opinions,andconclusionsarelimitedonlybythereportedassumptionsandlimitingconditions, andareourpersonal,impartial,andunbiasedprofessionalanalyses,opinionsandconclusions. x Wehavenopresentorprospectiveinterestinthepropertythatisthesubjectofthisappraisalreportandwehaveno personalinterestorbiaswithrespecttothepartiesinvolved. x We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. x Ourengagementinthisassignmentwasnotcontingentupondevelopingorreportingpredeterminedresults. x Our compensation for completing this assignment is not contingent upon the development or reporting of a predeterminedvalueordirectioninvaluethatfavorsthecauseoftheclient,theamountofthevalueopinion,the attainmentofastipulatedresult,ortheoccurrenceofasubsequenteventdirectlyrelatedtotheintendeduseofthis appraisal. x Wehaveperformednootherservices,asanappraiserorinanyothercapacity,regardingthepropertythatisthesubject ofthisreportwithinthethreeͲyearperiodimmediatelyprecedingacceptanceofthisassignment. x Thereportedanalyses,opinionsandconclusionsweredeveloped,andthisreporthasbeenprepared,inconformitywith therequirementsoftheCodeofProfessionalEthicsandStandardsofProfessionalAppraisalPracticeoftheAppraisal Institute. x Ouranalyses,opinions,andconclusionsweredeveloped,andthisreporthasbeenprepared,inconformitywiththe hŶŝĨŽƌŵ^ƚĂŶĚĂƌĚƐŽĨWƌŽĨĞƐƐŝŽŶĂůƉƉƌĂŝƐĂůWƌĂĐƚŝĐĞ. x TheuseofthisreportissubjecttotherequirementsoftheAppraisalInstituterelatingtoreviewbyitsdulyauthorized representatives. x Nooneotherthanassociatesinthisofficeoroutsideconsultantsasnotedprovidedsignificantprofessionalassistancein thepreparationofthisreport. x AsaccompaniedbySharonMartin,AdministratorwiththeIndustrialDevelopmentBoardofNewOrleans,Inc.,P.M. McEnery,MAI,CRE,S.ParkersonMcEnery,MAI,andNathanProssermademultiplepersonalinspectionsofthesubject property.TheinspectiondatesincludeapreliminarysitevisitonApril28,2016,aswellastwoadditionalsitevisitson June29,2016andJuly13,2016.Wealsoperformedanadditionalsitevisittotheexteriorpropertyboundariesofthe “MainSite”andalso“Parcel1”onJuly30,2016.DuringthesitevisitsonJune29,2016andJuly13,2016,wewere accompaniedbySimoneBruniCrouerewithTheDemoDivaDemolition,LLC,aswellasrepresentativesofEMRUSA Holdings. x NathanProsserprovidedsignificantprofessionalassistanceinthepreparationofthisreport.Asummaryofthisassistance maybefoundwithintheScopeoftheAppraisal. x Asofthedateofthisreport,P.M.McEnery,MAI,CREhascompletedthecontinuingeducationprogramforDesignated MembersoftheAppraisalInstitute. x Asofthedateofthisreport,S.ParkersonMcEnery,MAIhascompletedthecontinuingeducationprogramforDesignated MembersoftheAppraisalInstitute. x P.M.McEnery,MAI,CREisalicensedrealestatebrokerandS.ParkersonMcEnery,MAIisalicensedrealestateagent. Bothareactiveinthebuyingandsellingofrealestate. DateSigned:August4,2016

______ ______ P.M.McEnery,MAI,CRE S.ParkersonMcEnery,MAI LouisianaStateCertified LouisianaStateCertified GeneralRealEstateAppraiser#G1102 GeneralRealEstateAppraiser#G1526

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 2 SCOPEOFWORK AccordingtotheUniformStandardsofProfessionalAppraisalPractice,itisourresponsibilityto developandreportascopeofworkthatresultsincredibleresultsthatareappropriateforthe appraisalproblemandintendeduser(s).Therefore,wemustidentifyandconsider: භtheclientandintendedusers; භtheintendeduseofthereport; භthetypeanddeĮniƟonofvalue; භtheeīecƟvedateofvalue; භassignmentcondiƟons; භtypicalclientexpectations;and භtypicalappraisalworkbypeersforsimilarassignments. Thepurposeoftheappraisalistoestimatethecurrent'AsIs'marketvalueforassetmanagement purposesoftheFeeSimpleInterestinandtothesubjectproperty. SCOPEOFWORK Client: Industrial Development Board of the City of New Orleans,Inc.,asrepresentedbyMr.DavidM.Wolfwith AdamsandReese,LLP. IntendedUse: Theintendeduseisforassetmanagement. IntendedUser(s): TheintendeduserisIndustrialDevelopmentBoardof the City of New Orleans, Inc., as represented by Mr. DavidM.WolfwithAdamsandReese,LLP. TypeofValue: MarketValue EffectiveDateofValue: June29,2016 ReportType: This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under StandardsRule2Ͳ2(a).Thisformatprovidesasummary or description of the appraisal process, subject and marketdataandvaluationanalyses.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 3 Inspection: AsaccompaniedbySharonMartin,Administratorwith theIndustrialDevelopmentBoardofNewOrleans,Inc., P.M.McEnery,MAI,CRE,S.ParkersonMcEnery,MAI, and Nathan Prosser made multiple personal inspectionsofthesubjectproperty. Theinspectiondatesincludeapreliminarysitevisiton April28,2016,aswellastwoadditionalsitevisitson June29,2016andJuly13,2016.Wealsoperformedan additionalsitevisittotheexteriorpropertyboundaries ofthe“MainSite”andalso“Parcel1”onJuly30,2016. DuringthesitevisitsonJune29,2016andJuly13,2016, wewereaccompaniedbySimoneBruniCrouerewith The Demo Diva Demolition, LLC, as well as representativesofEMRUSAHoldings. MarketAnalysisLevel: LevelB ValuationAnalyses: Withinthisappraisal,wehavedevelopedatraditional land/sitevaluationindicativeoftheunderlyingvalueof thesubjectproperty–withtwoseparatecomparable sets: one pertinent to the “Main Site” as an already developedtractwithsignificantexistinginfrastructure andfillinplace,andasecondsetofcomparablesales reflective of the market value of “Parcel 1” as a raw developmenttractstilllackingwetlandsmitigationand permittingandnecessaryfillaswell. Giventhetwodistinctlydifferentnaturesofthe“Main Site”and“Parcel1”,wehavereliedontwodistinctly differentdatasetsonwhichtodevelopanopinionof marketvalueforeachtractasfollows: A. The“MainSite”DataSet:Intheanalysisof theprimarydatasetforthe“MainSite”,we havereliedonsalesofsimilarlypermitted, situatedandpreppedurbanacreageparcels purchased with a similar highest and best useinmind.Themajorityofthiscomparable data is geographically situated within JeffersonandOrleansParishes.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 4 Additionally, to augment the analysis, and giventheextremescarcityoftrulylikeͲkind tractswithsimilarsizeandscope,wehave also included sales of development tracts from within the broader regional marketplace. B. The“Parcel1”DataSet:Intheanalysisof the“Parcel1”dataset,wehavereliedon salesofmoreimmediatelylocallandsales andlistingsthatrequiresimilarlevelsoffill andwetlandsmitigationrelatedpermitting necessarytoaccommodatedevelopmentof thetract. Per the extraordinary assumption stated withinthisappraisal,ourappraisalassumes that the “Main Site” has no wetlands mitigationorpermittingrelatedissueswith theArmyCorpsofEngineers.Conversely, “Parcel 1” appears completely raw, and accordingly unͲtouched.Based on the documentation available, this site likely requires significant fill in addition to procurement of a 404 Wetlands Permit from the Army Corps of Engineers – a processthatwillbeaccompaniedbylikely verycostlypurchaseofwetlandsmitigation credits.Assuch,thecomparabledataset wehaveanalyzedforParcel1iscomprised ofsalesthatpossesssimilarfillandwetlands permittingissues,aswellascorrespondingly lowerpricing. Ourfinalopinionofmarketvalueisderivedthrougha sumofthetwoopinionsofvaluerenderedforthetwo sites in question – with due consideration for the demolition estimate provided by dŚĞ ĞŵŽ ŝǀĂ ĞŵŽůŝƚŝŽŶ͕>>.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 5 CostApproach: Acostapproachwasnotappliedasitisnotnecessary toproducecredibleresultswithrespecttotheintended useandintendeduser.Furthermore,giventhelimited salvagevalueassignabletotheimprovementsonͲsite, anyattemptatacostapproachisgoingtobeflawed with extreme estimates on clearly present levels of obsolescenceandexcessivedepreciationpresentinthe existingimprovements.Infact,therespectivelevelsof depreciationandobsolescencearesoextremethatthe existing vertical real property improvements have no market value that exceeds salvage value of the steel components, and overall, given the cost of removing the improvements, the demolition and removal expenseactuallyresultsinanegativevalueimpactto theunderlyinglandvalue.Assuch,ourappraisaldoes notincorporateacostapproachanalysis. SalesComparisonApproach: Atraditionalimprovedsalescomparisonapproachwas not applied as there is inadequate market data to develop a value estimate for this approach. Furthermore, for the reasons stated within the Cost Approach,anyattemptatanalysisthatassignsvalueto the existing improvements would result in an overͲ statementofvalue.Ourland/sitevaluation,thedetails of which have already been outlined, is a traditional sales comparison approach methodology which duly segregatesseparatecomparabledatasetsforeachof the two distinctly different property components comprisingthesubjectproperty. IncomeApproach: Anincomeapproachisnotanapplicableapproachto value,andthereforehasnotbeenappliedinthiscase. For the same reasons that the cost approach and improvedsalescomparisonapproacheshavenotbeen applied, the income approach is also duly excluded fromthisanalysis.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 6 ExtraordinaryAssumptions: Ourappraisalreportandtheopinionsofmarketvalue rendered herein are contingent on the following extraordinaryassumptions: x AnExtraordinaryAssumptionofthisappraisalis thattheestimatesmadeforthegrossandnet usableareasestimatedforboth“Parcel1”and the“MainSite”areaccurateandreflectiveof theactuallandareas.Theclientofthisreport was unable to furnish a full property survey noting specific dimensions of all tracts, and measurement using aerial view software against provided legal descriptions is the only option.Accordingly,werecommendthatany prospectivepurchaserofthepropertyprocure asurveyofbothtractscomprisingthesubject property. x AnExtraordinaryAssumptionofthisappraisalis that the estimates made for the total gross building area onͲsite are in fact accurate.In lightoftheunavailabilityofactualbuildingand site plans, these estimates were made using aerial imagery measurement.Given the immaterial value contribution of these structures,thepurposeofthisestimateofgross buildingareaistodeterminecostofdemolition. x AnExtraordinaryAssumptionofthisappraisalis thatthe“MainSite”doesnothaveanymaterial wetlandsissueswithintheestimatednetusable areaswhichwouldimpactthemarketabilityof thislandarea. x AnExtraordinaryAssumptionofthisappraisalis that the subject property is not presently contaminatedwithanyonͲsiteenvironmentally hazardous conditions which would inhibit the marketabilityoftheproperty.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 7 Given the history of the property, and the extentandnatureofthepropertyonthe“Main Site”, we recommend that an Environmental Site Assessment be performed on both properties to confirm the current environmentalconditionofbothtracts. x The“MainSite”isclearlyimpactedbyregular ponding and ultimate flooding, and we have beenprovidedwithnodocumentationrelated to the apparent problem.This could be the cause of the nature of the design of the infrastructureinplacefortheexistingrides.The drainage of the “Main Site” is at this time a questionableissuewithasignificantportionof the site holding wateralong its western most portions.Wehavebeentothesitethreetimes overthepastfortyͲfivedaysandhavenoticed significantareasthatremainflooded.Itisnot knownifthisisstrictlyduetoafailedpumping system with the main site or is related to a SewerageandWaterBoardissueͲorboth. Without any more knowledge regarding this flooding problem, our appraisal is made with theExtraordinaryAssumptionthattheflooding problemisatemporaryconditionthatiseasily curedwithnominalimpacttothemarketvalue oftheproperty. DemolitionEstimateNote:TheĞŵŽŝǀĂĞŵŽůŝƚŝŽŶ͕>>estimateisbasedoffatotalgross buildingareaestimateof172,351squarefeet,whereasthefinalestimateoftotalbuildingarea onͲsite measures closer to 180,088 square feet of gutted building structures in overall poor condition.At $2.75 per SF, this difference of 7,737 square feet equates to a cost impact of $21,277.Accordingly,wehavemadethisadjustmenttotheestimateinthedeductionappliedin thevaluationofthemainsite.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 8 MarketingandExposureTime: ThedefinitionofMarketValueisbasedonareasonabletimeallowedforexposuretothemarket. Reasonable time is a subjective time period and will vary depending on the type property, marketingeffortandprice.MarketingTimeisaprospectiveperspectiveorprovidesaperspective that is futuristic for the date of valuation with a presumed sale of the property under the assumptionthepropertywillsellatmarketvalue.ExposureTimeisretrospectiveinperspective andprovidesaperspectivethatishistoricforthedateofvaluationwithapresumedsaleofthe propertyundertheassumptionthatthepropertywillsellatmarketvalue.Forpurposesofthis appraisal,itisassumedthatthepropertywouldbereasonablypricedandaggressivelymarketed. TheMarketingandExposureTimeforthesubjectpropertyisestimatedtobelessthantwentyͲ fourmonthsifpricedtothemarketandaggressivelymarketed.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 9 Comments: x Werequestedcopiesofactualbuildingplansandsiteplansfortheproperties;butnone wereevermadeavailable.Accordingly,pleaseseetheExtraordinaryAssumptioninthe previouspagesregardingourestimateofthetotalgrossbuildingarea. x In the process of concluding a value, data has been gathered and analyzed by the undersigned appraisers. Comparable sales and listings have been analyzed in the developmentofmarketvalue. x Thescopeisfurtheraugmentedbytheapplicableapproachestovalueemployedinthis assignment, the analyses resulting in value conclusion(s) rendered which is dependent upon all known information about the subject property and marketing conditions and availablemarketdata. x Nathan Prosser provided significant professional assistance in the preparation of this report.Thisassistanceincludestheresearchofapplicablesubjectpropertyattributesand theinputofthisinformationintothisreport.Theseattributesincludethemarketingand sales history, ad valorem taxes, zoning designation, legal description, and flood zone. Additionally,assistancewasgivenbyformattingandinsertingsubjectphotographs,the subjectsketch,aerialimagesandotherrelevantdocuments.Allpertinentpropertydata hasbeenverifiedbyasignatoryappraiser.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 10

ASSESSMENTANDTAXES TaxingAuthority NewOrleansBureauofTreasury AssessmentYear 2016 RealEstateAssessmentandTaxes TaxID Land Improvements Total TaxRate Taxes Assessor's MarketValue 39W909544 $210,670 $0 $210,670 $151.78 $0 $2,106,700 39W019511 $109,060 $0 $109,060 $151.78 $0 $1,090,600 39W965110 $516,760 $6,978,810 $7,495,570 $151.78 $0 $51,693,000 39W019508 $25,690 $0 $25,690 $151.78 $0 $256,900 39W909542 $4,730 $0 $4,730 $151.78 $0 $47,300 Totals $866,910 $6,978,810 $7,845,720 $0 $55,194,500 AccordingtotheNewOrleansBureauofTreasury,thesubjectpropertyisexemptfromproperty taxes.Acopyofeachparcel’sassessmentisincludedintheĚĚĞŶĚĂofthisreport.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 11

ZONING According to the City of New Orleans Planning and Zoning Department the subject property, includingboththeMainSiteandParcel1,issituatedinaGPDGeneralPlannedDistrict.However, thereisastripoftheMainSitealongMichoudBoulevardthatissituatedinaCͲ2,AutoͲOriented CommercialDistrict.Thecurrentuseofthesubjectpropertyisaconforminguse.Acopyofthe districtregulationsislocatedintheĚĚĞŶĚĂtothisreport.Azoningmapisbelow.

Parcel1

CͲ2,AutoͲOriented CommercialDistrict Portion

MainSite

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 12 SUBJECTPROPERTYDESCRIPTION SITEANALYSIS Location: ThesubjectpropertyislocatedjustsoutheastoftheInterstate 10 and Interstate 510 interchange, with access via Michoud BoulevardandLakeForestBoulevard,intheNewOrleansEast neighborhoodofNewOrleans,Louisiana CurrentUseofProperty: Shutteredthemepark+vacantland SiteSize: Total:227.3705acres;9,904,237squarefeet MainSite:162.0157acres(gross) MainSite:145.8857acres(usable) The Main Site features a total gross area of 162.0157 acres; however,thesitealsoincludesanapproximately14acrelake anda2.13acrelagoon.Therefore,theeffectivesiteareaforthe mainsiteis145.8857acres. Parcel1:65.3548acres Shape: Irregular BoththeMainSiteandParcel1areirregularlyshapedtracts. Frontage/Access: The Main Site has good access via Lake Forest Boulevard, a dividedboulevardthatisaconnectorarterybetweenthe510 interchange along the western boundary of the site and Michoud Boulevard to the east of the site.There are main access points on Lake Forest and Michoud Boulevards, which allowforaccessfromthesouthandeastrespectively. The Main Site is also bounded by IͲ10 along its northern boundary.Of note, there is a temporary access point for emergencyvehiclesalongtheeastboundlaneoftheinterstate system that is kept chained and is used only by the various policingenforcementunits. TheMainSitehasfrontagesasfollows: x LakeForestBoulevard:128feet x MichoudBoulevard:57feet

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 13 Parcel1hasaverageaccesswithapproximately1,798feetof frontagealongMichoudBoulevard. Parcel1alsohasvisiblefrontagealongInterstate10butdoes nothaveanyaccessviaI10. Topography: Varied–significantareaswithlowͲlyingwetlands MainSite:Asidefromthepreviouslymentionedlakeandlagoon, andsomeisolatedareasoflowͲlyingwetlands,theMainSitehas beenfilledtostreetgradeandisgenerallylevel.Thenorthern andsouthernareasdonotappeartobefilledtostreetgrade. Parcel1:Thissiteremainsunfilledandundeveloped.Assuchits naturaltopographyisgenerallylowͲlyingwithsignificantareas ofswampyterrain. Utilities: Electricity:Entergy Sewer:Citysewer Water:MunicipalSupply NaturalGas:Entergy UndergroundUtilities:ThesiteisservicedbyaboveͲgroundand undergroundutilities. Adequacy:Thesubject'sutilitiesaretypicalandadequateforthe marketarea. FloodZone: Thesubject,boththeMainSiteandParcel1,islocatedinFEMA floodzoneA1,whichisclassifiedasafloodhazardarea. Thepreliminaryfloodzonemapfortheareashowsthatthesubject propertyissituatedinbothAEandXfloodzones.FloodzoneAEis classifiedasafloodhazardarea,whilezoneXisnotclassifiedasa hazard area.NOTE: Significant areas along the southwestern portionsofthesiteremainflooded. FEMAMapNumber:2252030110E FEMAMapDate:March1,1984 ZonesAEandA1Ͳ30arespecialfloodhazardareasininundatedby 100Ͳyear floodplains, and include areas in which base flood elevations are determined. Mandatory flood insurance requirementsapply.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 14 EnvironmentalIssues: WewerenotprovidedaPhaseIEnvironmentalImpactAssessment. Please see our Extraordinary Assumption in the ^ĐŽƉĞ ŽĨ ƚŚĞ ƉƉƌĂŝƐĂůregardingenvironmentalconditionoftheproperty. Encumbrance WehavenotreviewedadetailedALTAsurveyofeithersite,andone Easements: does not appear to be available.Accordingly, we recommend a thoroughtitlesearchbeconductedbyanyprospectivepurchaserof thepropertytoensurenoencumberingtitleissuesarepresent.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 15 DESCRIPTIONOFTHEIMPROVEMENTS The subject property, located south of the interchange of Interstates 10 and 510 in the New OrleansEastneighborhoodofNewOrleans,Louisiana,featuresextensiveimprovements,including numerousbuildingsandamusementparkrides.Basedonaphysicalinspectionoftheproperty andtheuseof'ŽŽŐůĞĂƌƚŚimagerytools,wehavedeterminedthatthesiteincludesanestimated 68 structures totaling approximately 180,088 square feet as well as 26 amusement rides. All structuresareinoveralldeplorablecondition,beinggutted,heavilyvandalized,neglected,and generallyopentotheelements.Allridesareinasimilardeplorablecondition,astheyarenotin workingconditionandmanyoftheridesaresoovergrownorsurroundedbysittingwaterastobe inaccessible. Inordertogiveamorecomprehensiveandthoroughdescriptionofthesubjectimprovements, wehavebrokenthecampusupintoeightareaslooselybasedonthesectionsofthepreviousSix Flagspark.Alabeledoverviewoftheparkisfeaturedbelow.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 16 MainStreet/Entrance

Entrance/MainSt. Bldg.#BuildingsSF 1ZydecoZingerEntranceBldg. 1,029 2MainSt.RestaurantBldg.11,241 3MainSt.RestaurantBldg.21,246 4MainSt.Bldg.15,000 5 Auditorium 9,943 6MainSt.Bldg.22,178 7GuestRelationsBldg. 4,995 8TicketCounters 4,343 9MainEntrance 2,418 10 SecurityBldg. 3,077 11 SeasonPassCenter 1,957 12 MainSt.Bldg.34,629 TOTAL 42,056

Rides Present ZydecoZinger Yes

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 17 Thisportionoftheparkwasthemainentranceofthethemepark.Itwasdesignedtomimicthe architecturalstyleandfeelofatypicalstreetofNewOrleans’FrenchQuarterandtofitthetheme oftheoriginalJazzLandpark.ItremainedthesameafterSixFlagstookoverthepark.MainStreet wouldusherguestsfromtheparkinglottothecentralwalkingloopofthepark. Italsoopenedupontoaverandaareaoverlookingthelagoon;thisareaisnowheavilyovergrown andchokedwithbrush.

ViewofMainEntrance MainStreet Themainimprovementofthissectionoftheparkistheauditoriumbuilding.Dailyperformances andothereventswereheldherewhentheparkwasrunning.Liketheotherbuildingsinthissection andtherestofthepark,theauditoriumisinaguttedconditionandisheavilyvandalized,with brokenwidowsandplentyofgraffiti.Theotherbuildingsinthisareawereusedasadministration offices,restaurants,andshops.

Auditorium Interior

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 18 Thereisonerideinthissection—theZydecoZinger,whichisasuspendedswingride.Whilethis rideisnotconsideredtobesalvageable,itisworthnotingthatitfeaturesanumberofpainted panels that appear to be in relatively good condition and could potentially have value if sold individually as memorabilia items. All the panels have a Jazz music theme with depictions of famousjazzmusicians,suchasLouisArmstrong,EllaFitzgerald,andMilesDavis.Thedemolition contractorhasconsideredthesalvagevalueofthesepotentiallyvaluablepiecesinthesubmitted bid.

ZydecoZinger CloseͲupofpanels CajunCountry/PontchartrainBeach

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 19 CajunCountry/PontchartrainBeach Bldg.# Buildings SF 1Burger/PoBoyBldg. 2,695 2BigEasyEntranceBldg. 908 3GamesBldg.1 1,595 4GamesBldg.2 5,218 5RestaurantBldg. 711 6BumperCartsBldg. 5,715 7DocksideCafé 10,369 8MuskratScamblerEntranceBldg. 2,013 9 SpongebobBldg. 8,690 10 MiscellaneousBldg.1 1,298 11 MiscellaneousBldg.2 1,139 12 GeneralStore 3,558 13 Lafitte'sMarket 2,363 14 OzarkaSplashEntranceBldg. 4,436 15 PaddleBoatBldg. 851 16 PirateShipEntranceBldg. 1,047 17 MiscellaneousBldg.3 623 18 PretzelStand 1,087 19 GatorBaitEntranceBldg. 667 20 MiscellaneousBldg.4 1,106 21 Rita'sCreoleKitchen 2,485 TOTAL 58,574

Rides Present GatorBait Yes OzarkaSplash Yes Lafittle'sPirateship Yes MuskratScrambler Yes TheBigEasy Yes Headingsouthintothecampusfromthemainentrance,oneenterstheCajunCountrysectionof thepark.Asthenamesuggests,thesectionisdesignedtoreflectasouthernLouisiana/swamp theme,withallthebuildingsdesignedtolooklikeshacksandfeaturingwoodexteriorsandmetal roofs.Thesection,likeMainStreet,wasoriginaltotheJazzLandthemeparkandwascarriedover bySixFlags.Therearenumerousbuildingsinthisportionofthepark,whichweregenerallyutilized forrestaurants,shops,rideentrances,andcarnivalgames.TheSpongebobͲthemedbuildinginthis sectionfeaturedaninterior,interactivedigitalride,whichisstilllocatedwithinthebuilding.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 20

ViewofCajunCountry SpongebobBuilding Therearealsoanumberofrideslocatedinthissection.ThebiggestofwhichistheOzarkaSplash, awaterͲthemedlogride.ThereisalsotheMuskratScrambler,asmallerrollercoastermodeledoff ofapreviousridefromtheformerPontchartrainBeachthemepark,aswellasafewothersmaller ridesinthissection,whicharefeaturedbelow.

GatorBait Lafitte’sPirateShip Continuingonthewalkingloop,whichcirclesthelagoon,onecomestothepark’sPontchartrain Beachsection.AnotheroriginalportionoftheJazzLandthemepark,thissectionwasnamedand modeled after the iconic former Pontchartrain Beach theme park, which was located on the Pontchartrainlakefrontandclosedin1983.Thebuildingsinthissectionfeaturedcarnivalgames— includingbumpercarts—andrestaurantuses.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 21

ViewofPontchartrainBeach BumperCars The main attraction in this section is the Big Easy Ferris wheel, one ofthe most recognizable featuresofthewholepark.Liketherestofthepark’srides,theBigEasyisnotinastatetobe economicallyrefurbished.

TheBigEasy

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 22 DCComicsSuperheros

DCComicsSuperheros Bldg.# Buildings SF 1 PontchartrainFlyerEntranceBldg. 1,003 2 MiscellaneousBldg.1372 3IvertatronEntranceBldg. 172 4Catwoman'sWhipEntranceBldg. 971 5Joker'sJukeboxEntranceBldg. 651 6 Miscellaneousbldg.2641 TOTAL 3,810

Rides Present Joker'sJukebox Yes Catwoman'sWhip Yes ZydecoScream Yes Invertatron Yes BatmanThrillSpectacular Remains BatmantheRide No PontchartrainFlyer No LocatedsouthofCajunCountryandPontchartrainBeachandoffofthemainwalkingloop,DC ComicsSuperheros,asthenamesuggests,wasacomicbookͲthemedsectionofthepark,with ridesthemedaftersuchsuperheroesasBatman.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 23 ThissectionwasinstalledunderSixFlagsmanagementafteritacquiredtheparkfromtheoriginal JazzLandowners.Thebuildingsinthissectionareratherminimalandconsistonlyofrideentrance buildings. Themainfeatureofthisportionaretherides.ThelargestremainingrideistheZydecoScream,a steelVekomaBoomerangmodelrollercoasterandoriginalrideofJazzLand.Otherremainingrides includethetwospinningrides—theJoker’sJukeboxandCatwoman’sWhip—aswellasadoubleͲ armspinningridecalledtheInvertatron.Withinthissection,therearealsotheremainsofthe BatmanThrillSpectacular,astuntshowstage.

ZydecoScream ZydecoScream IntheaftermathofHurricaneKatrina,tworidesfromthisareawereremovedbySixFlags.Batman: TheRide,asteelrollercoasterandoneofthesignatureridesintroducedtotheparkbySixFlags, wasrelocatedtoSixFlagsFiestaTexasinSanAntonio,Texas.ThePontchartrainFlyer,aswingride, hasalsobeenremovedfromthepark.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 24 MardiGras/MegaZeph/Rear

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 25 AerialViewofNorthEndofthePark

MadriGras/MegaZeph/Rear Bldg.#BuildingsSF 1WarehouseBldg.1 18,004 2WarehouseBldg.23,732 3JesterEntranceBldg. 1,335 4MegaZephEntranceBldg. 3,190 5GamesBldg.1 1,281 6MiscellaneousBldg.1918 7RestroomsBldg. 1,261 8RestaurantBldg.14,607 9GamesBldg.26,239 10 SkycoasterEntranceBldg. 1,380 11 MadRexEntranceBldg. 778 12 MiscellaneousBldg.2167 13 MiscellaneousBldg.3773 14 KingChaosEntranceBldg. 697 15 SpillwaySplashoutEntranceBldg. 3,133 16 MiscellaneousBldg.4952 17 PhotoStandBldg. 446 18 RestaurantBldg.2802 19 VoodooVolcanoEntranceBldg. 769 20 RestaurantBldg.3822 21 GamesBldg. 5,793 22 DizzyLizzyEntranceBldg. 1,210 23 RemoteControlBoatsBldg. 230 24 SonicSlamBldg. 476 25 OutlyingBldg.14,706 26 OutlyingBldg.23,031 TOTAL 66,732

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 26 Thissectionrepresentsthebackportionofthepark.Continuingthelocalculturalthemes,thisarea waslabeled“MardiGras”andfeaturedNewOrleansandCarnivalͲthemedrestaurantsandshops. TheMegaZeph,thesteelandwoodrollercoaster,isthemostvisibleandiconicfeatureofthis section,aswellasofthewholeproperty.ModeledaftertheZephyr,thefamousPontchartrain Beach roller coaster, the Mega Zeph was the park’s largest ride and its signature attraction. Despitebeingovergrown,itisstillclearlyvisiblethroughoutthepropertyandbeyond.

ViewfromtheInterstate TheMegaZephinthebackground TheothermainridesofthissectionincludethesteelrollercoasterTheJesterandareversefreeͲ fallswingcalledtheSkycoaster.TheJokerwasrelocatedtothepropertyfromSixFlagsFiestaTexas afterSixFlagsacquiredJazzLandin2002.TheSkycoasterwasalsoinstalledafterSixFlagstook overthepark.

TheJester TheSkycoaster OtherridesinthissectionoftheparkincludethewaterrideSpillwaySplashout,theswingingride DizzyLizzy,andthespinningridesMadRexandKingChaos.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 27

TheSpillwaySplashout TheDizzyLizzy AfterKatrina,SixFlagsremovedtheBayouBlasterandSonicSlam,adoubledroptowerride,from thissection.TheridewasmovedtotheGreatEscapeparkinQueensbury,NewYorkandreopened astheSasquatch. WehavealsoincludedwithinthissectiontwosteelͲframedwarehousestructureslocatedatthe rear entrance to the park, as well as two other outlying steel frame buildings located in the undevelopedareanorthofthemainparkcampus. LooneyTunesAdventures

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 28 LooneyTunesAdeventures Bldg.# Buildings SF 1RoadRunnerEntranceBldg. 2,072 2 TasmanianDevilEntranceBldg. 620 3 LooneyTunesMixedUseBldg. 6,224 TOTAL 8,916

Rides Present MardiGrasMenagerie Yes BugsBunnyBarnstormers Yes PepelePew:TheSwingsdeParis Yes TechnocolorTweetyBalloons Yes TasmanianDevilRumbleintheJungle Yes DaffyDuck&theBackLotTourBus Yes YosemiteSam&theWildWestWheel Yes RoadRunnerExpress No LocatedinbetweentheMardiGrasandMainStreetsectionsofthepark,LooneyTunesAdventures wasachildrenͲorientedsectionofparkaddedbySixFlagsafterits2002takeoverofthepark.The buildings include a large games and restaurant building, as well as a couple of ride entrance buildings.

Playground MardiGrasMenagerie TheremainingrideswithinthissectionincludethespinningridesBugsBunnyBarnstormers,Pepe le Pew: The Swings of Paris, and Yosemite Sam & and the Wild West Wheel, the cart ride TasmanianDevilRumbleintheJungle,andtheremainsofDaffyDuck&theBackLotTourBus.All oftheseridesaregrownoverand,asoffthedateofourinspection,werehardlyvisible.Wehave alsoincludedwithinthissectionthemerryͲgoͲroundrideMardiGrasMenagerie. TheRoadrunnerExpress,ajuniorVekomarollercoaster,wasremovedfromtheparkafterKatrina andrelocatedtoSixFlagsMagicMountaininValencia,California.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 29 MARKETAREAANALYSIS ;ĐŽŶŽŵŝĐĂƐĞŶĂůǇƐŝƐͿ Anessentialpartofeveryappraisalisananalysisofthesubject'sregionalorlocalmarketareawith the focus on the neighborhood in which the appraised property is situated along with the componentsoftheeconomicbaseinnotonlyageneralmanner,butwithspecificityastheymay relate to the property being appraised.Regions, neighborhoods and the market area are all studiedundervaryingdegreesofanalysis.Abroadregionalanalysisistypicallyareportonthe climate,topography,naturalfeatures,governmentalframeworks,economicbaseandtheinterͲ relationsofthesetothenationalandglobaleconomiesinwhichweinteract. ĞĨŝŶŝƚŝŽŶƐĂŶĚŶĂůǇƐŝƐdǇƉĞ͗ AregionalanalysisisconsideredunderanĞĐŽŶŽŵŝĐďĂƐĞĂŶĂůǇƐŝƐwhichisdefinedas:“Asurvey oftheindustriesandbusinessesthatgenerateemploymentandincomeinacommunityaswellas therateofpopulationgrowthandlevelsofincome,bothofwhicharefunctionsofemployment. Economicbaseanalysisisusedtoforecastthelevelandcompositionoffutureeconomicactivity. Specifically,therelationshipbetweenbasicemployment(whichbringsincomeintoacommunity) andnonͲbasicemployment(whichprovidesservicesforworkersinthebasicemploymentsector) isstudiedtopredictpopulation,income,orothervariablesthataffectrealestatevaluesorland utilization.” Amorespecificanalysisisthatoftheimmediateareaorneighborhoodinwhichapropertyis located.Theterm"neighborhood"isdefinedintheDictionaryofRealEstateAppraisal,6thEdition, published by the Appraisal Institute, dated 2015, as "a group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises." The boundaries of a neighborhoodcanbeidentifiedbydeterminingtheareawithinwhichthefourforcesaffectall propertiesinthesamemanner.Acleardistinctioncanbedrawnbetweenaneighborhoodanda district.Adistrictisatypeofneighborhoodthatischaracterizedbyhomogeneouslanduse.A residential neighborhood, for example, may contain singleͲfamily homes and commercial properties that provide services for local residents. Districts are commonly composed of apartments, commercial, or industrial properties. The four forces which create, modify, and destroythevalueofrealestateare:socialtrends,economiccircumstances,governmentcontrols andregulations,andenvironmentalconditions. A“marketareaanalysis”isdefinedas:“Theobjectiveanalysisofobservableorquantifiabledata indicatingdiscerniblepatternsofurbangrowth,structure,andchangethatmaydetractfromor enhance property values; focuses on four sets of considerations that influence value: social, economic,governmental,andenvironmentalfactors.”Underthehedonicmodeltestingforthe marketandthemarketabilityofthesubjectbeingappraised,thefoursetsofconsiderationsthat influencevaluearethenanalyzedusinganyoffourlevelsofanalysiswhicharecommonlyknown asLevelA,B,CorD.LevelsAandBareinferredanalysesinwhichverybasicdatasetsmaybe analyzed and from which inferences may be drawn regarding value.Inferred analyses are applicablewithinastaticdatasetortheabsenceofmajorshiftsintrendlines.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 30 LevelsCandDanalysesaremorecomplexandareconsideredfundamentalinthattheydrawon confirmedandverifieddatawhichrelatestothefourconsiderationsimpactingvaluefromwhich obviousconclusionsresultandarenotdependentoninferencealone.Basedonthe^ĐŽƉĞŽĨtŽƌŬ underwhichthisappraisalassignmentismade,oneofthefourlevelsofanalysisisperformed,and inthiscase,aLevelBAnalysishasbeenperformed. ĐŽŶŽŵŝĐĂƐĞĂŶĚdƌĞŶĚƐ;EĂƚŝŽŶĂůͿ͗ Themostrelevanttrends,forourpurposeofanalyzingtheeconomicbase,areinterestrates,real propertyprices,theillusiveissuesofGDPandconsumption,andemployment.Realestatemarkets nationwidearesubjecttothemultitudeofpressuresandinfluencescreatedbythisinterplay. /ŶƚĞƌĞƐƚZĂƚĞƐ͗ Inawidelyanticipatedmove,TheFederalReserveraisedinterestratesforthefirsttimeinnearly adecadeinDecemberof2015.Whiletheraisewassmall,aquarterofapercent,fromarangeof 0%Ͳ0.25%to0.25%Ͳ0.5%,immediateeffectswerefeltinmanyindustries.TheDowinitially ralliedaftertheannouncementbytheFed,butsubsequentlyplummetedasmoreeffectsofthe interestratehikebecameapparent.Theoilindustrysawthepriceofcrudeoildropasthemove by the Fed strengthened the dollar, pushing dollar priced crude oil lower. Both the market indices and oil have shown remarkable resiliencies in the face of global headwinds,includingincreasedterroriststrikes,asevidencedbytheDOWreaching18,000and thepriceofoilreboundingcloseto$50perbarrel.AccordingtoReuters,callsforfurtherratehikes haveevaporatedinwhatamountstotheworststartevertoayearforfinancialmarketsinJanuary of2016.Themarket’svolatilityisalsobeingfueledbyaslowingChineseeconomyandworries aboutChina’scurrencyandstockmarkets.InlightofrecentGDPnumbersandthe“Leave”vote in the UK with respect to Brexit, forecasts of further increases due in June of 2016 will in all probabilitybeonholdwithsomesuggestingwewillnotseeanotherratehikeuntil2017. Even with the December 2015 interest rate increase by the Fed, interest rates have been at historicallylowlevels,withUSTreasurieshittinganallͲtimelowwiththe10yearnoteunder1.5%. Interest rates are expected to generally remain low through the sorting out of Brexit related volatility. Thechartonthefollowingpage,ascompiledbyandexcerptedfromtheU.S.Departmentofthe Treasury,recordstheyieldcurveatpresentascomparedtoJanuary2016.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 31

Clearly,theonlyinferencetobedrawnfromthischartisthefirsthalfoftheyearsawdiminished yield prospects offered by Treasuries; yet and with the offering of a safe haven in treasuries, moneymanagersandinvestorsareunderpressureto“chaseyield”.Theresultingeffectofthis causecanmanifestincapratecompression,higherPEratios,andperhapsadeadenedsenseto being“riskoff”whenwarrantedinthepursuitofyield.Althoughlowinterestratesareviewedas generally positive for real estate, the resulting bubble mania that can result leads to major problemsassociatedwithcyclicalcorrections.Thebigquestionremains,whenwillthemusicstop? EconomicactivityintheUnitedStateshascontinuedtoexpandatamoderateifsomewhatuneven pace. At the start of 2014, Janet Yellen became the new head of the Federal Reserve, as QE purchaseswerewaning.AsofJune2014theFederalOpenMarketCommitteehastrimmedbond buyingdownto$35billionpermonth.YellenfacesthechallengestosuccessfullyendtheQE purchasepracticeandsubsequentlyshrinktheFed’sbalancesheetwhileavoidingdisruptionof thefinancialmarkets.Withasuspensionofpurchasesofbondsandmortgagebackedsecurities asoftheendoflastyear,theFED(FOMC/4.29.15)willmaintainitsexistingpolicyofholdingshort termratesdownandholdingitsportfolioofbondsandmortgagebackedsecurities.Withrevised GDPnumbersof1.1%asoftheendofQ2,2016,notmuchshouldbeexpectedinregardstogrowth intheeconomyoverthenextsixmonths. TheU.S.economystayedafloatthefirsthalfoftheyeardespiteglobalturmoil;anditappearsthe continued struggle is to break out of the slowͲgrowth pace that has plagued the economic expansion.AccordingtotheU.S.CommerceDepartment,theeconomygrewatamodest1.5% seasonally adjusted annual rate from July 2015 through September 2015.That marked a deceleration from the 2nd Quarter 2015, when U.S. gross domestic product—the broadest measureofeconomicoutput—expandedata3.9%pace.Thefollowingchartrevisestheoutlook.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 32

Asisdepictedabove,ratherthanholdingatoraboveanannualized2.0%growthrate,wemayend theyearwellunder2.0%shouldthetrendlinecontinue. Solid consumer outlays and increased spending on business equipment and home building through2015andinto2016propelledtheeconomyagainstoverseasheadwindsweighingonU.S. manufacturers.In the preceding calendar year, overall GDP growth was reported at an approximately2%rate—showingtheeconomyremainslockedintoarestrainedexpansionmore thansixyearsaftertherecessionended. Withthesuperstarstatusofthedollar,domesticproductionofmanufacturedgoodsintendedfor exportmaybehurt,asthedollarnowstandsatthehighestit’sbeeninquitesometime.Thiswill causesomedisturbanceinannualizedearningsforthatsectorofcorporateAmericathatisclosely linkedtoglobaltradeandexports. ZĞĂůWƌŽƉĞƌƚǇWƌŝĐŝŶŐ͗ Realpropertyvaluesappreciatedapproximately85%from1997Ͳ2006,theonlytimeinhistorythat realpropertyvaluesoutpacedinflationbymorethan25%.However,inmidͲ2007therealestate bubbleburst,resultinginthelargestcollapseintherealestatemarketinalmost100years.The NationalAssociationofRealtorsstatedthat2007wasthelargestdropinexistinghomesalesin25 years. Theextremeexpansioninrealestatepricingbeginningmorethanadecadeagowascreatedbya varietyoffactors,butnonebiggerthantheloosecreditstandardsofmajorlendersinresponseto thegrowingpopularityofriskymortgageͲbackedsecurities,calledcollateralizeddebtobligations (CDO’s).Thisaddedtotheincreaseinhouseholddebtthatwasfueledbymassiveconsumer

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 33 borrowing,lowinterestrates,speculativefever,andexcessivelyhighdebtlevelsassociatedwith homemortgages.

AccordingtotheĂŶŬƌĞĚŝƚŶĂůǇƐƚ,November2010,theratioofdebttohouseholdincome nearlydoubledfrom68%in1980toapeaklevelof130%in2007.Theseextremelyhighlevelsof debtledtheUnitedStates,aswellastherestoftheworld,intooneofitslongestanddeepest recessionsinitshistory. Aggregatehouseholddebtbalancesincreasedinthe3rdquarterof2015.AsofSeptember30, 2015, total household indebtedness was $12.07 trillion, a $212 billion increase from the 2nd quarterof2015. Aggregatehouseholddebtbalancesincreasedagaininthefirstquarterof2016.AsofMarch31, 2016,totalhouseholdindebtednesswas$12.25trillion,a$136billionincreasefromthefourth quarterof2015. Overallhouseholddebtremainsfrom5%to3.3%belowitspeakof$12.68trillioninthe3rdQuarter 2008. AsindicatedfromdatafromtheendofQ12016,mortgagebalances,thelargestcomponentof householddebt,increasedinthefourthquarter.Mortgagebalancesshownonconsumercredit cardsstoodat$8.37trillion,a$120billionincreasefromthefourthquarterof2015.Balanceson

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 34 homeequitylinesofcredit(HELOC)droppedby$2billion,to$485billion.Onthefollowingpage isachartasexcerptedfromtheFederalReserveBankofNewYork.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 35 Generallyspeaking,theUSrealestatemarketbottomedoutinearly2012andhassinceundergone aslowrecovery.However,itisimportanttorealizethatahealthyrecoverydoesnotmeanthat realestatemarketswillreverttothesamecharacteristicsasseenadecadeago.Althoughthe existingsupplyofnewhomesforsaleintheUSisshrinkingandhomepricesaretrendingup,2015 isbelievedtobeacontinuationoftheprioryearwiththehousingmarketstillinastateofrecovery. Notably,homeownershipfellinthe3rdquarter2015andyearoveryearisdownslightlyasof March31,2016depictedinthechartbelow.

,ŽƵƐĞŚŽůĚ/ŶĐŽŵĞ͗ Americanhouseholdincomehasbeenproblematicasithasbeenoutpacedbyinflation.According to a h^ ĞŶƐƵƐ ƵƌĞĂƵ report, /ŶĐŽŵĞ͕ WŽǀĞƌƚǇ͕ ĂŶĚ ,ĞĂůƚŚ /ŶƐƵƌĂŶĐĞ ŽǀĞƌĂŐĞ ŝŶ ƚŚĞ hŶŝƚĞĚ ^ƚĂƚĞƐ͗ϮϬϭϮ͕therealmedianhouseholdincomewas8.3%lowerthanin2007,theyearbeforethe most recent recession. However, between 2011 and 2012 median household income only decreased by 0.2% suggesting stabilization.Even with the announced economic recovery, it appearsthetrendformedianhouseholdincomeiscontinuingitsslowgrowththrough2015as showninthegraphonthenextpage. The2012povertyratewas15%,whichis2.5percentagepointshigherthanin2007.The2014 announcedpovertyratedroppedto14.8%downfromtheprevioushighbutstillataveryelevated level.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 36 Althoughtheofficialpovertyrateremainedessentiallythesamebetween2011and2014,the numberofpeopleinpovertyincreasedforpeopleaged65andolder,peoplelivingintheSouth, andpeoplelivingoutsidemetropolitanstatisticalareas. Withareported46.7millionpersonsnowclassifiedaslivinginpoverty,aloomingissuepresents itselfintermsoftheongoingeconomicrecovery.

Thefollowingchartmeasuresmedianhouseholdinccomeandunemployment.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 37 hŶĞŵƉůŽǇŵĞŶƚͬ/ŶĨůĂƚŝŽŶ͗ Accordingtotheh^ƵƌĞĂƵŽĨ>ĂďŽƌ^ƚĂƚŝƐƚŝĐƐ,totalnonfarmpayrollemploymentroseby292,000 inDecember,andtheunemploymentratewasunchangedat5.0percent.Employmentgainswere ledbyprofessionalandbusinessservices,construction,healthcare,andfoodservicesanddrinking places.Miningemploymentcontinuedtodecline.FromOctoberthroughDecember2015,the unemployment rate has remained at the lowest point since May 2008.The number of unemployedpersons,7.9million,alsoremainedessentiallyunchangedinDecember2015.Over thepast12months,theunemploymentrateandthenumberofunemployedpersonsweredown by0.6percentagepointand800,000,respectively. The following graph, as excerpted from the Bureau of Labor Statistics, shows the seasonally adjustedunemploymentratefromJanuaryof2005toDecemberof2015.

ThecurrentrateforunemploymentasofJune28,1016is4.7%,down0.03%fromthepriormonth. The number of longͲterm unemployed (those jobless for 27 weeks or more) was essentially unchangedat2.1millioninDecember2015andhasshownlittlemovementsinceJune.These individualsaccountedfor26.3%ofthetotalunemploymentrateinDecember2015.Itisimportant torecognizethisnumberdoesnotincludethenumberofpeoplewhoarenolongerreceiving unemploymentbenefits,thosewhohavesimplystoppedlookingforwork,andthosewhoare marginallyemployed. Asreportedby^ŚĂĚŽǁ'ŽǀĞƌŶŵĞŶƚ^ƚĂƚŝƐƚŝĐƐthecurrent,alternateunemploymentrateforMay 2016is23percentormorethan4timestheofficialmonthlyreportedunemploymentrate.When theofficialunemploymentandinflationratesarepairedasa“painthresholdindex”,theofficial ratesandthoseportrayedby^ŚĂĚŽǁ'ŽǀĞƌŶŵĞŶƚ^ƚĂƚŝƐƚŝĐƐ͕differwidelyasisdepictedinthe chartsonthefollowingpage.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 38

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 39 ŽŵŵĞƌĐŝĂůZĞĂůƐƚĂƚĞDĂƌŬĞƚƐ͗ DespiteseeminglyneverendingbadnewsaboutEuropeandnowAsia,America’srecorddebt levels,acompleteabsenceofpoliticalleadershipatthelocal,stateandfederallevelstoaddress thenation’sunsustainabledeficits,andstagnantemployment,UScommercialrealestate(CRE) valuesappeartohavetroughedinearly2012andrealestateindistressedregionsoutperformed treasuriesforthefirsttimesincetherecessionbegan.GrowthslowedwithrespecttotheU.S. economyin3rdQuarter2015,andprojectionsfortheChineseandEuropeaneconomieshavebeen loweredaswell.Asweprogressthrough2016,weseecontinueddeclinesthroughtheendofQ2. According to a March 22, 2016 report, a Z survey found that 37% of market participants surveyedsuggestedtherewillbeawideningspreadbetweenprimeandsecondaryyields.Ifthis comes to pass, it further suggests prime CRE under net leased scenarios with national credit tenantswillstillbeattractiveasinvestmentgradewheremorelocalizedandlesswellsecuredCRE assetswillseeanincreasefromthecurrentlowsforgoinginOAR’srelatedtovaluation.Asof theendofQ1,2016͕ZĞĂůƚǇZĂƚĞƐreportsitsweightedcompositeCapRateIndexsawalowering by10basispointsfrom9.46%to9.36%duringQ1,2016.Thefollowingchartillustratescurrent andhistoriccapratescoveringthespectrumofCRE.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 40 TherehasgenerallybeenaslightdeclineinQ12016forCapRateswhichreflectsthecontinued trend of the lower interest rates.Notably, as of this writing, the 10Ͳyear Treasury is yielding 1.3833%,anearrecordlowforthisinstrument.Asareflectionofthetrendingtonegativeinterest rates,interestratecostsforborrowedmoneyareexpectedovertheneartermtoremainlow. Correspondingly,thereisseriousconcernovercentralbanks’positoninnegativeyieldterritoryas asignalofcomingglobalrecession. AMarch2016articleinthetĂůů^ƚƌĞĞƚ:ŽƵƌŶĂůsuggestsamarketcorrectioniscomingquotingSitu RERC,arealestateresearchfirm,asstating“Thereisgoingtobeamarketcorrection”. Ingeneral,thedownwardpressureoncapratesoverthepastseveralyearsisattributableto greater buyer interest coupled with affordable financing for qualified buyers.This trend accelerates as a result of the Federal Reserve’s efforts tokeep interest rates at historic lows. Lookingforward,capratesareexpectedtoshiftupwardsasinterestratesareexpectedtosteadily rise,and/orcorrectionsoccur. ŽŶĐůƵƐŝŽŶ͗ “Betterdaysahead”hasbeenamantraofforecasterssincetheGreatRecession,and2016may besettobeadecidingyearfortheUSeconomyansweringmanylingeringquestionsaboutthe directionitisheaded.However,anypredictionsmustbeviewedthroughalensofskepticism.In 2013debtlimitbrinksmanship,agovernmentshutdown,ongoingfinancialcrisesinEuropeand unemploymentallcontributedtopreventingthearrivaloftheseillusivebetterdays.Headinginto 2016,manyoftheserestraintsdatingfromseveralyearsagoremainthebiggestobstaclesfor economicgrowth. “Kickingthecandowntheroad”wasanappropriateandheavilyusedanalogyforgovernmental actions on debt issues throughout the aftermath of the Great Recession. Two debt ceiling suspensions and one shortͲterm debt increase occurred to ward off a United States Treasury defaultandmoredeadlinesloomedinearly2014.Bytheendof2014,thenewcongresswas hurriedly passing the 2015 fiscal budget before the Christmas break.While the possibility of another federal government shutdown was averted once again, the debt ceiling and related politicalposturinghasandwillcontinuetorearitsheadiftheCongressandtheExecutivebranches ofgovernmentcannotfindawaytocompromiseandagree.Asweenterthefinalstretchofthis year’s presidential election season, we do not expect any difference in the seeming lack of government’sabilitytoaddressthelingeringconcernsabouttheeconomyingeneral. ShortͲtermfixesappeartohavebecomethenorminrecentyearsasaresultoftheongoing“fiscal cliff”crisis’sandhavesentmixedeconomicmessagestobothWallStreetandMainStreet.The privatesectorhasbeenreluctanttoorwillnotmakeanydecisionsoncapitalexpendituresuntil the government can implement a sound, long term economic plan. To accomplish this, party memberswillneedtocastasidethepracticeofbrinksmanship.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 41 Whiletheeconomy’soverallperformanceasweclosethefirsthalfof2016reflectslossesinthe morevolatilefinancialsectorsincludingtheretailsectorofrealestaterelatingtobigboxfailures andlargestoreclosings,wecanalsonotesignificantvolatilityinthemajorstockmarketindices, aswellasotherreturnsthatserveas“safeharbor”investmentsincludingprivateequityrealestate and10ͲyearTreasuries,whichcanexpectrationalperformance. Irrespectiveofthedatasourcesurveyed,thereislittledoubttheU.S.recoveryinrealestatewas as fragile, if not more so, than the general economic recovery. When the frequency of the economic cycle accelerates and its range increases, business and money conditions change drastically and rapidly, an unattractive economic environment for longͲterm investments is created.ForthepastseveralyearstheUSeconomyhasseenthesamepatternofatwoͲstep shuffle...“twostepsforwardandtwostepsback.”AlthoughgrowthintheUShasbeenmoderately expandingandtheofficialunemploymentratehasfallenfromahighof10%inOctober2009,most agreethisisduetoincreasedgovernmentstimulusthatwillnotbesustainableinthelongterm. Currently the unemployment rate among educated Americans is far lower than overall unemploymentintheUS.Increasingemploymentamongtheprimarysectorsoftheeconomic baseiscrucialfortheUStofinallymakeastrongupwardturn.TheoverallworkforceintheUS decreasedduringtherecessionanditsaftermath,duetoindividualssimplynotlookingforwork. Today the unemployment rate is at its lowest since 2008, and the current pickup in hiring is spurringanincreaseinthelaborforce,asmorewouldͲbeworkersareencouragedtoonceagain startlookingforjobs.Ifhiringcontinuestoincrease,optimismamongoutͲofͲworkindividualswill increase,andtheoverallworkforcewillexpand.ThismeanstheunemploymentratewilltickͲup temporarily before it can trend down over the long term because of the return of many job seekers. Manyprivatesectorbalancesheetsareflushwithcashduetoincreasedprofitsandthehaltin significant capital expenditures, which could lead to higher compensation for corporate executives.Homeownersintheuppertierpricingofthemarkettendtofollowtheschoolcalendar yearwhenbuyingorsellinghomesandrecreationalproperties,andlastsummerwasbullishfor theveryhighendrealestatemarket.Ontheotherhand,therelativelackofcorporatecapital expenditure,whichincludeshiring,hasanegativetrickleͲdowneffecttothemediantolowlevel housingmarket. Althoughperceivedasarelativelysafe,transparentinvestmentindustry,themarketforrealestate isstillconsideredassomewhatstagnantinmanyareasofthecountryduetorecordnumbersof homeforeclosures,tightenedcreditavailability,andastilllowerlevelofnewconstructionactivity inboththehousingandcommercialrealestatemarkets.Althoughspeculativerealestateinvestors havestartedincreasingallocationstorealestateacquisitionsanddevelopment,manywouldͲbe investorsremainonthesidelinesorarecommittedtohighqualityincomeproducingrealestate inlargemarkets.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 42 Asfortheoutlookforrealestate,cautionisthebyword.“Thecommercialrealestatebusinesshas beenaboutasgoodasitgetsoverthepasteighteenmonths,soit’shardtopaintapicturethat there won’t be at least some kind of pullback within the next year or so..” (dŚĞ ZĞĂů ƐƚĂƚĞ ZŽƵŶĚƚĂďůĞ͛ƐϭƐƚƋƵĂƌƚĞƌϮϬϭϱ^ĞŶƚŝŵĞŶƚ^ƵƌǀĞǇͿ With a seemingly tentative Fed policy, huge public debt levels, unsettled global flash points includingmajorconcernsaboutthebankingsystemintheEU,USunemployment,inflationand investmentyieldconsiderations,aprudentanalystmightwellperhapsportendtoastablegrowth view for real estate; yet, there are unsettled financial and geopolitical issues which must be factoredintoanyvaluationstrategywherethestrategyisoneofchasingyield.Inthisregard, expectationsremainthatinvestormotivationsmaybecometemperedbycautionandpossibly concern regarding sustainability of the enduring present trend for the commercial real estate marketplace.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 43

REGIONALANDLOCALMARKETANDMARKETABILITYANALYSIS ;>ĞǀĞůŶĂůǇƐŝƐͿ Throughthefirsthalfof2016,theUSrealestatemarketcontinueditsrecoveryafterbottoming outinearly2012.Theprevailingopinionamongmarketparticipantsisthattheeconomywillstay onitscurrentcoursefortheforeseeablefutureandthattheslowandspottyrecoveryisthenew normalatthenationallevel.InLouisiana,thegeneralsentimentiscautiouslyoptimisticwhile awaitingthereboundoftheoilandgasindustry.Thefocusofouranalysisisfocusedmainlyonthe marketplace for speculative development tracts, industrial tracts and larger land parcels with significantwetlandsand/orlowͲlyingtopography. Puttingthesnapshotofthenationaleconomicbaseintheproperperspectiveisthebackdropof theregionaleconomicbase.Giventhesomewhatoptimisticyetfragileoutlookfortheeconomy, itisimportanttofocusonthehistoricnatureoftheregionalbase,onetiedtotourism,thepublic employmentsector,naturalresources,andagriculture. At present, the State of Louisiana is undergoing significant budgetary problems with looming shortfallsinitsbudget.Spendingcutsacrossalllinesappeartosparenothingwithforecastedcuts affectinghighereducation,thepublicemploymentsectors,medicalfundingfortheDepartment ofHealthandHospitals,andtheeliminationorcurtailingoftaxcreditssuchasthemovieindustry relatedtaxcreditsinanefforttobalancethebudget.Itappearsthatenoughcutsinspending haverecentlybeenrealizedtoprovideforashorttermfix.Asisshownbelow,thegraphindicates acontinuedbudgetshortfall,suggestingthecurrentfixwasaidedinnosmallmeasurewith$826 millioninonetimedollarsthatonlypluggedahole.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 44 Alookintothefuturesuggestslongtermstructuralreformsmustbeimplemented.Itisimportant thatsignificantrevenuetothestatetreasuryhashistoricallybeenintheformofoilandgasmineral royaltiesonlandsandwaterbottomsownedbythestate.Thisrevenuestreamhasbeengreatly diminishedwiththefalloffinthepriceofoilandnaturalgas.Manybelieveonlydiversification withalessenedemphasisanddependenceonoilandgasisthedirectionweshouldtake. Inthisregard,amorebalancedapproachwithcontinuedexplorationactivities,refiningandits port related components will certainly be a key component of the economic base for the foreseeablefuture.Asforeconomicdiversification,effortstolurehightech,themovieindustry (whichnowappearstohaverelocatedtoAtlanta),andotherinnovationsarebelievedtobean alternative to the main components of our economic base.The immediate outlook is for a tighteningofpublicsectorexpenditures.Webelievethistrendwillnotbearresteduntilagreater diversificationintheeconomicbaseoccursandorareturntoastabilizedhigherpriceofoil. On the following pages, we present analyses of the subject’s market area with regard to demographics,incomestatisticsandotherpertinentdatawithin30,60,and90Ͳminutedrivetimes andalsoanalyzespecificdemographicsofOrleansParish.Thedemographicdatacontainedonthe following pages is shown as excerpted from reports generated using the ^ŝƚĞƚŽĚŽƵƐŝŶĞƐƐ (www.STDBonline.com). TheSubjectNeighborhood:Thesubjectissituatedwithinaneighborhoodthatisinmanyregards stillinastateofrecoveryfollowingthedestructionandfloodingofHurricaneKatrina.MostofNew OrleansEastwasinundatedwithsubstantialfloodwaters,witheightplusfeetbeingrecordedin someareas.Duetothisfact,aswellasthecreditcrisisandresultingcollapseofthemarketsin 2008,speculationaboutthefuturesustainabilityoftheareahasresultedinarecoverythatis spottyandslowatbest.Thereisanongoingstrugglebetweentheforcesofresidentsnotwanting tomovebackuntilmoreservicesareavailableandlocalbusinessinterestswhoarehesitantto movebackuntilthepopulationbasereturnstosupporttheiroperations. Afterrecentlynotingthetenthanniversaryofthestorm,afullrecoveryandredevelopmentofthe areahasyettooccur,asevidencedbythecountlessabandonedhomesanddarkbusinessesthat arealltoocommoninthearea.Withthatsaid,marketconditionshavedefinitelyimprovedin recentyears.StreetretailisreͲstabilizingalongprimarycommercialcorridorsandanumberofthe older apartment complexes have been renovated in addition to the occasional ground up developmentprojects,thoughthesearemainlytaxcreditdriven. Positive signs of redevelopment in the Eastern New Orleans market are limited to major commercialcorridorssuchasChefMenteur,Read,LakeForest,BullardandCrowderBoulevards. ThebiggestnewsforthebroaderareaconsistsoftheintroductionofaSuperWalͲMart,andthe much anticipated opening of New Orleans East Hospital at the site of the former Methodist Hospital.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 45 Thesearetwoprojectsthatcouldbreathemorepermanentlifeintothelocalcommunity,though itisworthmentioningthattheNewOrleansEastHospitalisopeningatareducedcapacityof80 beds.MethodistHospitalformerlyservicedNewOrleansEastwithatotalof300beds. The subject site is a key remaining development or redevelopment site and completion of a successfuldevelopmentonthesubjectsitewouldbringNewOrleansEastthatmuchclosertoa truly recovered state.The question that remains is the viability and sustainability of the neighborhoodinlightofagenerallynegativeperceptionoftheredevelopmentpatternsofNew OrleansEastingeneral.Specifically,thesubjectsitehasbeentheobjectofmuchcriticismfrom the local and national press, although when it operated as Jazz Land and Six Flags, the local populationappearstohavehadagenerallyfavorableopinionofthevenueifnotthelocation,of theactualoperatingvenueasanamusementpark.With1,230,000'ŽŽŐůĞ©hitsfor“SixFlags NewOrleans”and83,500hitsfor“JazzLandNewOrleans”,thereisnoshortageofopinionand notablementionofthesiteontheinternet. CommercialRealEstateMarketSummaryͲNewOrleansEast:AmarketanalysisprovidedbyŽ^ƚĂƌ Ξhasbeenperformedthatreportsonmarketactivitythroughthe2ndQuarterof2016forthis partofouranalysis.Wehavefocusedonretail,office,andindustrialactivity. Retail:Inthe2ndQuarter,theabsorptionofretailspacetotaled355,875squarefeetoverallfor themetropolitanmarket.Averagerentalratesacrossthemetropolitanareawere$14.41per squarefoot.ThesubͲmarketofEŽƌƚŚƐŚŽƌĞͬEĞǁKƌůĞĂŶƐĂƐƚhadnonewconstructionstarts recorded.Thissubmarketalsoreported2,742,702squarefeetor5.7%ofthetotalretailspaceof 48,086,174squarefeet.Averagerentalrateswere$9.12persquarefoot,or$5.29persquarefoot below the metropolitan average rental rate.This submarket reports a 5.5% vacancy rate in comparisontothemetropolitanaverageof3.1%. Office:Inthe2ndQuarter,theabsorptionofofficespaceinthemetropolitanareawas85,368 squarefeetatanaveragerentalrateof$16.90persquarefoot.Nonewconstructionisrecorded fortheEŽƌƚŚƐŚŽƌĞͬEĞǁKƌůĞĂŶƐĂƐƚmarket.Thissubmarkethas440,278squarefeetofoffice spacewithanetlossyeartodateof17,600squarefeetinoccupancy.Overallthissubmarket contains2.72%ofthe16,202,489squarefeetofClassBofficespaceacrossthemetropolitanarea. Theaveragerentalrateinthissubmarketisreportedas$13.09or$3.81belowtheaveragerental ratereported.Thesubmarketalsoholds588,567ClassCsquarefeetofofficespacewithan averagerentalrateof$6.53persquarefoot.NewOrleansEastalsoreportsatotalvacancyrate of 1,128,847 square feet for all classes of office area with a vacancy rate overall of 31.2% in comparisontotheaverageofficevacancyrateforthemetropolitanareaof8.6%. Industrial:In the 2nd Quarter, absorption of industrial space was 455,612 square feet in the metropolitan area with a reported average vacancy rate of 4.1%.Average rental rates were reportedas$5.83persquarefoot.NonewconstructionisreportedfortheEŽƌƚŚƐŚŽƌĞͬEĞǁ KƌůĞĂŶƐĂƐƚsubmarket.Existinginventoryofspaceisreportedas6,669,484squarefeetofthe 66,194,720squarefeetinthemetropolitanareaor10.08%.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 46 Thissubmarketofindustrialpropertytypesreportsdirectabsorptionatalossof10,120square feetduringthe2ndQuarterwithatotalvacancyrateof4.0%.Theaveragerentalrateisreported as$5.59persquarefoot. SummaryConclusions:Overall,themetropolitanareahasshownmarkedimprovementoverthe pastdecadeintermsofnewconstructionstarts,occupancylevelsandrentalratesforallstripes of commercial real estate.Notably, the submarket identified by Ž^ƚĂƌ as EŽƌƚŚƐŚŽƌĞͬEĞǁ KƌůĞĂŶƐĂƐƚhasnotfaredaswellintheretailandofficecategories. Intheindustrialsector,thissubmarketaccountsfor10%ofthetotalwarehouseinventoryinthe metropolitanareaandalsoshowsstrongoccupancylevelsandsustainablerentalrates.Although below the other submarkets in reported average rental rates, the New Orleans East market outperformsSt.BernardParishandtheWestbank. Of the three markets surveyed, the industrial market appears to be the healthiest with the brightestneartermprospects–amarketconditionwellmatchedwithlongerͲtermprospectsfor thesubjectsite. Thefivestepsemployedtoassessthemarketandmarketabilityforthesubjectpropertyaretitled asfollows: ¾ DĂƌŬĞƚƌĞĂĞůŝŶĞĂƚŝŽŶ ¾ WƌŽƉĞƌƚǇWƌŽĚƵĐƚŝǀŝƚǇŶĂůǇƐŝƐ ¾ ^ƵƉƉůǇĂŶĚĞŵĂŶĚŶĂůǇƐŝƐ ¾ /ŶƚĞƌĂĐƚŝŽŶŽĨ^ƵƉƉůǇĂŶĚĞŵĂŶĚ ¾ &ŽƌĞĐĂƐƚŽĨ^ƵďũĞĐƚĂƉƚƵƌĞ Atruncationofthesesetspresentstheanalysisinthreebroadcategories,namelythemarketarea delineation,theproperty’sproductivityalongwithitscompetitiveadvantagesanddisadvantages, andfinally,asupply/demandanalysisandtheinteractionthereinwithourforecastforabsorption orsubjectcapturerate. To aid in the analysis, research has been performed on similarly positioned large tracts of commerciallyorientedsiteswithanexusofsimilarityatornearinterstateinterchangesalongthe IͲ10andIͲ12interstatesystemswithdiscussion,technicalanalysis,andthereconciliationofhow thesetractscomparetothesubjectunderconsideration.Butfirst,wemustbeginwiththesubject anditsinteractionswiththefivecategoriesnotedabove. MarketAreaDelineationandPropertyProductivityAnalysis:Onthefollowingpages,wepresent an analysis of the subject’s market area with regard to the neighborhood delineation, demographics,incomestatisticsandotherpertinentdatawithin30minute,60minute,and90Ͳ minutedrivetimesfromthesubjectaswellasforNewOrleansorOrleansParish.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 47 OverviewͲTheNewOrleansEastNeighborhoods:Thefollowingsatelliteimagery('ŽŽŐůĞĂƌƚŚ©) highlightsNewOrleansEastneighborhoods.

TheneighborhoodsthatcompriseNewOrleansEastfromtheDownmanRoadareatoIrishBayou andChefMenteur(Hwy90)toLittleFarmsonthelakefrontofLakePontchartrainareoldandwell established neighborhoods dating to the aftermath of the War of 1812 and the immediate aftermathofTheBattleofNewOrleans.The“ChefHighway”asmanyrefertoHwy190extends fromGentillytoChefMenteurPassandwasconstructedafter1815bythemilitaryastheaccess roadtoconstructFortsMcCombandPikeattheChefPassandTheRigolets.Uponcompletionof theroad,NewOrleanianshaddirectaccesstothemarshesandwaterwaysoftheeasternportion ofOrleansParishthatbecamethehallmarksofrecreationallandusesforthelocalcitizenry. OvertimewiththedevelopmentofGentillyTerracebythedeMontzulinfamily,areasproximate to and east and north of the Industrial Canal became known as “The Orange Groves” in a promotionaleffortofthe1920’s.Stilllaterwiththeadventoftheinterstatesystem,IͲ10began itscourseofconstructioninthisneighborhoodinthemid1960’sthroughtheearly1970’s.With thisdevelopment,themarsheswereburnedoffanddrainedinanefforttobringdevelopmentto “TheEast”.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 48 HeavycommercializationbeganalongtheDownman,Read,LakeForestandBullardinterchanges and corridors.Multifamily development was initiated along the interstate service road with adjoiningsinglefamilyresidentialneighborhoodsspringingup;andofcourse,theEastoverGolf and Country Club became a major draw for upscale residential development along the IͲ10 Corridor.Whilethisdevelopmentwasongoing,TheChefMenteurCorridor,HayneBoulevard,and TheLittleFarmsneighborhoodsalsogrew,althoughataslowerpace. As of 2005, development activity had taken these development trends to the 510 split with extensionalongtheChefHighwaycorridortothenodeofdevelopmentattheChefPass.Eastof the 510 split was then and still is mostly fresh water marsh, brackish marsh, and swamp. PredominantlargelandusesidentifiedinNewOrleansEastotherthanresidentialandgeneral commercialandindustrialdevelopmentincludeTheMichoudAssemblyplant,theBayouSauvage WildlifeRefuge,andprivatelandholdings,thelargestofwhichissome3,000acresheldbyalocal landinvestor. In2005,thesinglemostimportantinterveningeventtoimpactthisregioninalifetimeoccurred with the destruction wrought by Hurricane Katrina.Hundreds of thousands of persons were displaced, some apparently permanently.Over one thousand individuals lost their lives.The extentofpropertydestructiontothisdayisnotfullyunderstoodandappreciated. Withtheaftermathofthishorrificevent,governmentandtheprivatesectorworkedtogetherto rebuild.Several billions of dollars were channeled in to the rebuilding efforts with massive expendituresonpublicinfrastructureincludingupgradingofleveesthroughouttheregion,the constructionof“TheGreatWall”totheimmediatesouthofthesubjectattheconfluenceofthe IntercostalWaterwayandtheMRGO,andgeneralredevelopmentofprivateinterests.Itwasthis eventthatcausedthesubjecttoremainclosedandeventuallyterminateditsuseasanamusement park.Although prior to the storm, there had been financial issues associated with the developmentoftheparkasJazzLandasdevelopedbylocalinvestorsinajointventurewithOgden Companies.Subsequently, Six Flags came in and opened after the failure of the Jazz Land operation. Afterelevenyears,wenowcometothepresentdayandpresentthefollowingdiscourseonthe neighborhoodthatisknownas“TheEast”. WƌĞĚŽŵŝŶĂŶƚ>ĂŶĚhƐĞƐ͗Otherthanthe227acresallocatedtothesubjectpropertywithsome 162acresintheactualdevelopmentcampusandsome65acresinexcessasanundeveloped,nonͲ contiguoussite,themajorityofNewOrleansEast,thoseareaslayingeast,north,andsouthofthe propertyaremostlyundevelopedareasoffreshandbrackishwatermarshandswamp. x ĂǇŽƵ^ĂƵǀĂŐĞEtZͲThisveryimportantnaturalresourceownedbytheUnitedStates GovernmentandmanagedundertheauspicesoftheDepartmentofInterior,USFishand Wildlifeiscomprisedof24,000acresoffreshandbrackishmarshboundedtothenorthby LakePontchartrainandthesouthandeastbyChefMenteurPassandLakeBorgne.Tothe

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 49 immediatewestisthesubjectpropertyandthereachesofNewOrleansEastasitspreads itsdevelopmentpatternsbacktotheInnerHarborNavigationCanal.

x DŝĐŚŽƵĚƐƐĞŵďůǇ&ĂĐŝůŝƚǇ͗Thisfacilityplayedcriticalrolesinournation’shistorydating to1940astheassemblyplantforHigginsCͲ76cargoplanesandtheirfamouslandcrafts. In 1961 the facility came under the management of NASA with its use dedicated to productionandassemblyofcomponentsforthespaceprogram.Boastingsome1,870,000 squarefeetunderroof,itissituatedonan832acresitethatislocatedsoutheastofthe subjectpropertyalongtheMichoudBoulevardcorridor.Thefollowingaerialphotograph givesasenseofthescaleofthefacility.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 50 TheMichoudAssemblyFacilityisnowmarketedbyNASAasamultiͲtenantopportunityfor manydifferentusesincludingamovieproductionsoundsetaswellasothernonͲrelated uses.ThisisadirectresultofcutstoNASA’sbudgetsandanoverallscalingbackonmanned andunmannedspacecraftexploratoryventuresinitiatedbytheUnitedStatesofAmerica. x >ĂŶĚ ĂƚĞŐŽƌŝǌĂƚŝŽŶƐ͗For the most part, the subject property is in or contiguous to jurisdictionalwetlands.Inreality,mostofNewOrleansEastwasawetlandpriortoitsrapid developmentinthesecondhalfofthe20thcentury.Notably,withtheadoptionofthe 1972CleanWaterActthatgrantedtheEPAjurisdictionover“wetlands”,mitigationand anyresultingdevelopmentisnowunderthejurisdictionofandisadministeredbythe UnitedStatesArmyCorpsofEngineers.Astimepassed,permitting404wetlandareashas notonlybecomemoredifficult,butvastlymoreexpensivewithcoststhatcaneasilyreach $15,000peracreofmitigatedland.Thefollowingmapoverlayshowsthejurisdictional wetlandareasnotingthelocationofthetwoparcelsthatcomprisethesubjectproperty.

Ascanbeseenfromthedepictionshownabove,thereappearstobeacleardistinctionofland useswestofthesubjectastheredoeseastofthesubject.Forthemostpart,allthelandareas to the west of the subject are thought to be easily developed due to prior development activitieswithoutissuesassociatedwithwetlands.Ontheotherhand,alllandsproximateto thesubjectandeastofthesubjectpresentaverydifferentpicture.Inonesense,thesubject’s maincampusconstitutesoneofthelargertractsoflandthatcanbedevelopedduetoprior mitigationanddevelopmenthavingoccurred.Parcel1,ortheexcesssite,isnotsofortunate fromaprospectivedevelopmentanalysis.Thissitewouldverylikelyhavetobepermittedvia a404permitissuedfromtheUSACEpriortothedestructionofanywetlandspresent.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 51 o DĂƌŬĞƚĞŵŽŐƌĂƉŚŝĐƐ͗Thedemographicdatacontainedonthefollowingpagesisshown asexcerptedfromareportgeneratedusingthe^ŝƚĞƚŽĚŽƵƐŝŶĞƐƐ(www.STDBonline.com), whichprovidesafurtherunderstandingofthedemographicswithinamarketdefinedarea outsideoftheimmediateneighborhood.Itistothismarketthatthepropertycanappeal aswellaswithintheconfinesofNewOrleansEast. 30–60Ͳ90MinuteDriveTimeMap

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 52 DemographicAnalysis SixFlags/Jazzland Population 30minutes 60minutes 90minutes 2010Population 610,576 1,215,599 2,134,959 2016Population 666,229 1,293,839 2,277,235 2010Ͳ2016AnnualRate 1.41% 1.00% 1.04% 2021Population 710,185 1,357,635 2,394,872 2016Ͳ2021AnnualRate 1.29% 0.97% 1.01%

MedianHouseholdIncome 30minutes 60minutes 90minutes 2016MedianHouseholdIncome $41,982 $47,256 $48,819 2021MedianHouseholdIncome $45,195 $51,830 $53,066 2016Ͳ2021AnnualRate 1.49% 1.86% 1.68%

AverageHouseholdIncome 30minutes 60minutes 90minutes 2016AverageHouseholdIncome $65,486 $69,269 $68,931 2021AverageHouseholdIncome $70,314 $74,741 $74,488 2016Ͳ2021AnnualRate 1.43% 1.53% 1.56%

PerCapitaIncome 30minutes 60minutes 90minutes 2016PerCapitaIncome $27,521 $27,710 $27,189 2021PerCapitaIncome $29,666 $30,048 $29,489 2016Ͳ2021AnnualRate 1.51% 1.63% 1.64% Our2016drivetimepopulationsrangefrom666,000toover2,277,000.Ouraverageincome demographicsremainremarkablysteadythroughoutnotinganupwardstrendasthedrivetime from the subject increases. Juxtaposed with the preceding data set is the New Orleans demographicdatasetasdepictedonthefollowingpage.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 53

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 54

Perhapsthemostnoticeabledifferenceinthetwodatasetsofthedrivetimeanalysisextending outwardsfor90minutesversustheOrleansParishdatasetisthepopulationbase.OrleansParish hasa2016populationofsome388,540versusthe30Ͳminutedrivetimeof666,229andofover 2,200,000 for the 90Ͳminute drive time.This suggests for a property such as the subject, dependence on the local population or even the immediate neighborhood is not sufficient to providesupportforanylargescaledevelopment.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 55 Hence,thelikelyconclusionisaregionalorevenlargergeographicareawouldbenecessaryto supportthissite.Theconclusionisthatbasedinametroarea,thesitewillrequiresupportfrom outsidethelocalbase. Forinstance,foranyuseotherthanmorelocalizedusessuchasresidentialdevelopment,thelikely marketparticipantscouldverywellcomefrombeyondthemetropolitanareaandfromaregional orevennationalareaofsupport. Clearly arguments can be made for retail or mall development, parks and recreation uses, or residentialuses,allofwhichmaywellbesupportedbyalocalpopulation;yet,intheanalysesto follow,wewilldetermineifinfacttheseusescancompetegiventheexistingdevelopmentof similar uses in the immediate neighborhood based on the very uneven recovery of the neighborhoodincomparisontootherareasoftheregion. Akeyconsiderationofthemarket,asdelineated,isthehealth,character,andtrendingofthe immediateneighborhoodwhichforourpurposeisNewOrleansEastasadistinctdistrictofthe citycomprisedofseveraluniqueneighborhoods. AccordingtoanarticlethatappearedindŚĞĚǀŽĐĂƚĞnewspaper,thefollowingchartdelineates therecoveryoftheregioningeneralandNewOrleansEastinparticularasshownatthebottom ofthechart.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 56

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 57 Interestingly,allneighborhoodsthroughouttheregionshowedsomelevelofincreaseexcepting St.BernardParish,PlaqueminesParishandNewOrleansEast.Notably,intheperiodfrom2000 through2010,NewOrleansEastshoweddecreasesacrosstheboardrangingfromͲ25%tooverͲ Ͳ50%.ThisdecreaseisnodoubtthedirectresultofHurricaneKatrina.Althoughthisstudyisbased onUSCensusBureaudatathrough2010isdated,thereisstillanoticeablelaginredevelopment withlittlenoticeablegrowthsincethen. WeconcludethepopulationoftheimmediateneighborhoodisdepressedandwellbelowitspreͲ Katrinahighs.St.BernardandPlaqueminesParishesalsohavenotrecoveredtotheextentofthe regionalarea.ThisisnoteworthybecauseSt.Bernardistheclosestparishtothesiteandisdirectly connectedtothesouthviathe510interstatesplitthatcrossestheIntercostalWaterway. With a depressed population, an overall slower redevelopment trend, and existing competing marketsintheimmediateneighborhoodcateringtoretailtrade(theTowneCenterdevelopment inSlidell,multiͲfamilyhousing(westalongIͲ10),andsinglefamilyhousing,theredoesnotappear to be a sustainable argument that suggests redevelopment of a retail or multifamily due to demandsofthelocalpopulation.Wedonotethatwhilethesayingof“buildit,andtheywillcome” presentsanicetalkingpoint,itdoesnotadequatelyaddresstheunderlyinglackofgrowthrequired tosupportdevelopmentschemesdependentonthelocalpopulation.Hence,wemustlookto otherusesforthesubjectthatarebothsustainableandfinanciallyfeasible. DĂƌŬĞƚĞůŝŶĞĂƚŝŽŶŽŶĐůƵƐŝŽŶƐ͗ x dŚĞůĂƌŐĞƌůĂŶĚƵƐĞƐŝŶƚŚĞŝŵŵĞĚŝĂƚĞŶĞŝŐŚďŽƌŚŽŽĚĂƌĞĞŵƉůŽǇĞĚ͗ o ŝŶƌĞĐƌĞĂƚŝŽŶĂůĂŶĚƉƌĞƐĞƌǀĂƚŝŽŶƵƐĞƐƐƵĐŚĂƐƚŚĞĂǇŽƵ^ĂƵǀĂŐĞEtZ o ƐĂŵŝǆĞĚƵƐĞŐŽǀĞƌŶŵĞŶƚĂůŽĨĨĞƌŝŶŐƐƵĐŚĂƐƚŚĞDŝĐŚŽƵĚƐƐĞŵďůǇ&ĂĐŝůŝƚǇ o ƐƐƉĞĐƵůĂƚŝǀĞůĂŶĚŚŽůĚŝŶŐƐďǇƉƌŝǀĂƚĞŝŶǀĞƐƚŽƌƐ x >ĂŶĚŚĂƌĂĐƚĞƌŝƐƚŝĐƐĂƌĞŚĞĂǀŝůǇŝŶĨůƵĞŶĐĞĚďǇƚŚĞƚŽƉŽŐƌĂƉŚǇ͕ĨůŽƌĂĂŶĚĨĂƵŶĂ͘ o tĞƚůĂŶĚƐĞǆŝƐƚ o DŝƚŝŐĂƚŝŽŶĐŽƐƚƐĨŽƌĚĞǀĞůŽƉŵĞŶƚĂƌĞĂĐŽƐƚůǇŝŵƉĞĚŝŵĞŶƚƚŽĚĞǀĞůŽƉŵĞŶƚ o &ŝůůŵĂƚĞƌŝĂůƚŽďƌŝŶŐƚŽŐƌĂĚĞĂŶĚĂďŽǀĞƚŽƐĂƚŝƐĨǇ&DĨůŽŽĚƌĞƋƵŝƌĞŵĞŶƚƐŝƐĂŶ ĞǆƉĞŶƐŝǀĞŝŵƉĞĚŝŵĞŶƚƚŽĚĞǀĞůŽƉŵĞŶƚ͘ x DĂƌŬĞƚĚĞŵŽŐƌĂƉŚŝĐƐƐƵŐŐĞƐƚĂůĂŐŐŝŶŐƚƌĞŶĚŽĨƌĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞŶĞŝŐŚďŽƌŚŽŽĚ͘ o tŝƚŚůŽǁĞƌƌĞƉŽƉƵůĂƚŝŽŶĂŶĚĚĞǀĞůŽƉŵĞŶƚ͕ůŽĐĂůƉŽƉƵůĂƚŝŽŶƐĐĂŶŶŽƚƐƵƉƉŽƌƚůĂƌŐĞ ƐĐĂůĞĚĞǀĞůŽƉŵĞŶƚĂƚƚŚĞůĞǀĞůŽĨĨŝŶĂŶĐŝĂůůǇĨĞĂƐŝďůĞůĂŶĚƵƐĞƐĐĂƚĞƌŝŶŐƐŽůĞůǇƚŽ ůŽĐĂůƉŽƉƵůĂƚŝŽŶƐ͘ o dŚĞĚĞůŝŶĞĂƚĞĚŵĂƌŬĞƚĂƌĞĂŝƐĂŶĞǆƉĂŶĚĞĚƌĞŐŝŽŶĂůĂƌĞĂŽĨĂƉƉĞĂůĨŽƌƚŚĞůŝŬĞůǇ ŵĂƌŬĞƚƉĂƌƚŝĐŝƉĂŶƚĂŶĚĞŶĚƵƐĞŽĨƚŚĞƉƌŽƉĞƌƚǇƵŶĚĞƌĐŽŶƐŝĚĞƌĂƚŝŽŶ͘

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 58 WƌŽƉĞƌƚǇWƌŽĚƵĐƚŝǀŝƚǇŶĂůǇƐŝƐ͗Thefollowingaerialdepictionidentifiesthetwositesthatcomprise thefocusofouranalysis. Note: It is both critical and central to the reader’s understanding of the nature of the improvements and the limited level of contributory value they contribute to the site in their currentstateofdisrepair.Inessencemuchofthesiteotherthanthoseareasthatarecleared, filled, and paved are considered under a land analysis than as a fully improved site with the functionality of the benefits normally associated with approximately 180,000 square feet of buildingsandancillarystructuresincludingtherides.Forafulloutlineoftheimprovements,refer totheDescriptionofImprovementssectionofthisreport.

Area Acres MainSiteArea(gross) 162.0157 Lake 14 Lagoon 2.13 NoncontiguousParcel 65.3548 Asisillustratedabove,thepropertyiscontainedintwononͲcontiguousparcels.Theprimary parcelnotedastheMainSitecontains162.0157acres.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 59 Thesecondarysite(Parcel1)contains65.3548acres.TheMainSitehastwoprimarypublicpoints ofaccessviaLakeForestandMichoudBoulevards.Parcel1hasprimaryaccesssolelyviaMichoud Boulevard. Thetotalbuildingareasofallofthevariouscomponentsareestimatedtocontain180,088square feetinnonͲcontiguousandcontiguousspaces. Anothercomponentoftheimprovementinfrastructureistheparkingareaalongtheeasternside ofthedevelopment.Thislandareameasuresanestimated2,660feetnorthtosouthand560feet easttowestandisentirelypaved.Theentirelandareaofpavedparkingiscalculatedtobean estimated1,489,000squarefeetor34.20acresofpavedparkingareas.Thisalonerepresentsa significantcostcomponenttoconsiderfromastandpointofbothfillandthecosttopave.Itis alsoperceivedtobeoneofthemoreimportantcomponentsofthedevelopmentassumingthe parkingareasareabletobereadilyreͲemployedineithercontinueduseoranalternateuseoverall withrespecttoaredevelopmentplan. MainSite:Thediscussionofthemainsiteisnowsegregatedfromthetotallandareaforthe purposeofanalysis.Parcel1orexcesssiteisanalyzedlaterinthesalescomparativeapproachas anundevelopedparcel.Thefollowingimageryclearlypresentsthemainsitewhichisthefocusof thefollowingdiscourse.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 60 PhysicalAttributes:Fromtheprospectiveofproductivity,themainsitebenefitsbyitsdirectvisual exposuretotheinterstatesystemwithvisibleidentificationfrombothIͲ10andthe510splitand interchange.AccessisviaLakeForestBoulevard,adividedboulevardthatisaconnectorartery betweenthe510interchangealongthewesternboundaryofthesite,andMichoudBoulevardto theeastofthesite.Thesetwoaccesspointsaretheprincipalpointsofpublicingressandegress. Michoud Boulevard and Lake Forest Boulevard are somewhat developed with single family subdivisionsinterspersedwithlargetractsofundevelopedlandareasthatwouldrequireclearing andfillpriortoanyfuturedevelopment. With162.0157acresofwhich16.13acresarebodiesofwaterintheformofalakeandalagoon, theresulting145.8857acresisafullydevelopedparcelformallyusedasanamusementparkwhich hasbeenleftinagreatstateofdisrepairduetothedestructivefloodingwroughtbyHurricane Katrinaandthesubsequentabandonment,vandalism,anddecay. Area Acres MainSiteArea(gross) 162.0157 Lake 14 Lagoon 2.13 In addition to the lake and lagoon areas there are at least, an estimated 17 to 20 acres of undevelopedareas.Theareasarefoundinthenorthernandnorthwesternportionofthemain siteborderingtheeasternline,theleveealongthewestlineandthenortherncomponentsofthe developedareas.Thereisalsoanestimated2.2acresofthesitethatisundevelopedaccessroad connecting to Michoud Boulevard.The undeveloped areas are noted on the aerial depiction below. UndevelopedAreasofMainSite

AcreageEstimates: NorthernArea:15acres(460’x670’;1305’x270’) SoutheasternArea:2.2acres(200’x480’)

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 61 ThesubjectisalsoboundedbyIͲ10alongitsnorthernboundary.Ofnote,thereisatemporary accesspointforemergencyvehiclesalongtheeastboundlaneoftheinterstatesystemthatiskept chainedandisusedonlythevariouspolicingenforcementunits.ThisroadisaccessedviaLake ForestBoulevard. OtherpertinentandproximateelementsofthestreetgridareBullardtothewestandtheChef MenteurHighwayandtheOldGentillyRoadnetworktothesouth. From a purely physical perspective the site is large enough to allow for any large scale developmentorredevelopment.Itssizeandshapeisthatofanirregularlyshapedrectanglethat borderstheeasternrightofwayof510,withlimitedfrontagesandaccessalongLakeForestand MichoudBoulevards.Thisisconsideredadequate,butnotnecessarilyideal.Ahardcorneror significantly greater linear street frontages is preferable for a parcel of this size from a developmentorredevelopmentprospective. ThezoningofthetwositesisGeneralPlannedDistrict(GDP),withastripofthemainsitealong Michoud Boulevard zoned CͲ2, Auto Oriented Commercial District.The zonings allow for a multitude of land uses, the purpose of which is “to provide flexibility in the site design and developmentoflandinordertopromoteitsmostenvironmentallysensitiveuseandtopreserve thenaturalandscenicqualitiesofwetlandsandothernaturallandfeatures.”TheAutoͲOriented Commercial(CͲ2)classificationcomesundertheACͲ3OverlayDistrictwhich“isintendedtocreate acommercialenvironmentwithadditionalpermissionsforliveentertainmentsnotingaminimum sizeoftwocontiguousblocks”. Within the broader framework of Open Space Districts (OSD), the permitted uses range from residential uses and commercial uses, including Amusement FacilityͲOutdoor, hotels, Casino/GamingEstablishment,truckrepair,truckstop,truckterminal,warehouse,etc. Inaddition,institutionalusesarepermittedincludingthegamutofusesfromchurches,university, governmentoffices,pumpingstation,transmissionandtelecommunicationantenna,utilities,etc. Withinthetwoseparatezoningclassifications,thewiderangeofpermittedusessuggeststhesite is ideally zoned for development within the overarching backdrop of being within an environmentallycompatibleuse. Thedrainageofthesiteisatthistimeaquestionableissuewithasignificantportionofthesite holdingwateralongitswesternmostportions.Wehavebeentothesitethreetimesoverthepast fortyͲfivedaysandhavenoticedsignificantareasthatremainflooded.Itisnotknownifthisis strictlyduetoafailedpumpingsystemwiththemainsiteorisrelatedtoaSewerageandWater BoardissueͲorboth.ThesefloodedareasappeartobeboundedbytheleveeandIͲ10alongthe westernpropertyline;but,wedonotethattheareaͲwideimpactcouldextendbeyondtheactual propertylinesandwouldbethoughttobecontainedintheareaboundedbyIͲ10,the510split, LakeForestBoulevardandMichoudBoulevard.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 62 CompetitiveProductivity:Aswaspreviouslymentioned,the34acresofparkingisanattractive elementoftheimprovementsduetobothitscapacityaswellascondition.Sadly,mostofthe otherimprovementscomponentscontainingsome180,088squarefeetofgrossbuildingareaare inverypoorconditionandbasedontheopinionsofotherexperts(ZĞǀƉƌŽĂŶĚƐƐŽĐŝĂƚĞƐandthe ĞŵŽŝǀĂĞŵŽůŝƚŝŽŶcompany),thereislittlecontributoryvalueassociatedwiththebuildingsor theotherimprovementsincludingtheridesandtheequipment. Revpro’sconclusionintheirreportissuedJuly6,2016andsignedbyAndrewBadeauxAccredited SeniorAppraiser(ASA)states: ͞/ŶĐŽŶĐůƵƐŝŽŶ͕ŝƚŝƐŽƵƌŽƉŝŶŝŽŶƚŚĂƚƚŚĞďĞƐƚĐŽƵƌƐĞŽĨĂĐƚŝŽŶĨŽƌƚŚĞŵĂĐŚŝŶĞƌǇĂŶĚĞƋƵŝƉŵĞŶƚĂƚ ƚŚĞĐĂŵƉƵƐŝƐƚŽƐĐƌĂƉŝƚ͘͟ TheDemolitionDivacompanyhasprovidedaquotefordemolitionwhichisnetofanyassociated salvage value of all of the structures and rides and the removal and disposal thereof of $1,311,903.39. Notingtheusable(netoflake/lagoon)underlyinglandareaofthesiteofsome145.886acres zonedasaGDPandCͲ2districtsorunderthelanduseordinancesandregulationsoftheCityof New Orleans, and that this site is a wellͲknown site from the years of exposure and news associatedwithitsuseasanamusementpark,thereareindeedattractiveelementsofinterest relatedtothesitethatcouldcompetereadilywithotherproximateofferingintheNewOrleans Eastmarket. Correspondingly,thegeneralmarket’sknowledgeofthepropertyisnotnecessarilypositivenoting thenotorietythesitehasgarneredasadevelopedandfailedsiteundertwoownerships. A'ŽŽŐůĞsearchof“JazzLandNewOrleans”returns80,900hits.A'ŽŽŐůĞSearchof“SixFlags NewOrleans”returnshitsof1,050,000.Arefinementofthe“SixFlagsNewOrleans2016”returns 955,000hits.Thehitsunder“JazzLandNewOrleans2016”returnsanadditional275,000hits. Althoughnotallofthereturnsarenegative,thereissignificantnegativeopinionassociatedwith thesiteunderthenamesofitstwooperatingentities.Thereturnsonsearchesfeatureeverything fromarecentdroneflyoverofthesitetosuggestionsthesitewillbesoldorauctioned. Some of the more recent coverage on the internet relates to the ongoing debates over management of the property and sales or auctions of the property, with a largely negative backdropofanegativeperspectiveduetotheabandonedstateofthepropertyanditscurrent condition. There has been much said about the political factions involved as this relates to managementandmaintenance.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 63 PropertyProductivityConclusions: x Themainsiteisadevelopedsitewithtwobodiesofwater,significantparking,multiple amusementrides,andseveralbuildingandrelatedstructures,allofwhichareinverypoor condition.Themainsiteoffersatotalof145.9netacresofwhichsome17to20acresare undevelopedareasthatwouldrequireclearingandfillfordevelopment.Inaddition,a wetlands determination may have to be performed were these acreages included in a developmentplan. x TheexcesslandorParcel1offers65acresoflandarea.Thissiteisundeveloped,would requireclearing,fill,andispotentiallyimpactedasawetlandthatwouldrequireatthevery leastawetlandsdeterminationtodetermineifsomeportionsorevenallofthesitewould requiremitigation. x Bothsites,thoughnonͲcontiguous,areaccessedfromMichoudBoulevard.Themainsite alsohasaccessviaLakeForestBoulevard. x Themainsiteisadevelopedsitewithapproximately34acresofparkingarea,multiple structures,etc. o Thebenefitsofthisisthesiteispresumedtonotbenegativelyimpactedwithany issuesassociatedwithwetlanddelineationmatters,404permitting,andassociated mitigation expenses.in addition, there is no presumption of the need of fill material for the purpose of development other than those requirements that would be site specific to any contemplated structures with respect to flood elevations. x Accesstothemainsiteisadequate,butdoessufferfromlimitedlinearstreetfrontages givenitssizeandshape.AccesstoParcel1isfromMichoudBoulevardandappearstobe adequate. o PrimaryaccesstotheMainSiteislimitedtoaccesscorridorstoMichoudandLake Forest,withaddtionalfrontagealongLakeForest,anditsrearentranceorservice entrancefromthe510easternserviceroad. x Floodingisaproblem,particularlyalongthewesternportionsoftheMainSite. x Zoningisapositivebenefitforbothsitesduetothebroadscopeofusesthatarepermitted underthelanduseordinance. Ifaprospectivepurchaserwerenotabletousetheimprovementsasconfiguredandbewillingto restoresame,thereispresentlya$1,311,903.39costestimatenetofsalvagetodemolishthe currentimprovements.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 64 Supply/DemandAnalysis:Intheprocessofperformingresearchtodeterminethecurrentlevelof offeringsintheNewOrleansEastmarket,weperformedasearchonLACDB,arealtordriven commercialpropertydatabase.Theparametersofoursearchoflistingswerelandofferingsof 10to200acres.Wefound14suchlandofferingsintheNewOrleansEastmarketplace.These offeringsrunthegamutoflandusesfromsinglefamilylandfordevelopmenttoindustrialofferings alongtheChefMenteurHighway. Interestingly,twoacreagelistingsalongMichoudBoulevardareofferedfor$10,000peracrefora tenͲacreresidentialparceland$41,459peracrefora12.06Ͳacreparceladjacentto“SixFlags”, thesubjectofourconsideration. Wealsoranasearchforsoldcomparablesaleswiththesameparameters.Thereare14suchsales datingto2006.Thissuggestsanaverageabsorptionfrom2006topresentof1.4salesperyear. Conversely,with14currentlistings,thiswouldsuggesta10Ͳyearsupplyofpropertyofferings. KeepinginmindthatLACDB,althoughthepreferredlistingserviceofcommercialrealtors,isonly onesource.OmittedfromtheselistsarenonͲlistedpropertiesandpropertiesthataresolddirectly bytheowner. Oneparcelzonedforsinglefamilyresidentialdevelopmentcontaining9acressoldtwiceforan undisclosedpriceeachoccasiononMichoud. Theaverageexposuretimeforthefourteensoldparcelsoflandwas709.57daysoralmosttwo yearsat23.65monthsonthemarket.Itwouldnotbeunusualforthesubjectproperties,ifoffered forsale,toexperienceasimilarexposuretimetothemarket.AllofthesalesandlistingsonLACDB tendtoberangeboundinpricebetween$1.00/SF,andincertaincasesconsiderablyless,with pricingat$0.23/SF,toahighof$4.50persquarefoot.Intheimmediateneighborhoodthereare offeringsof$10,000to$43,000peracreforsmalleracreageparcelsof10orsoacres. Othersaleshavealsobeenresearched.IntheNewOrleansmarketplacetwohighdollarsalesare noted.A11.34ͲacresitesoldontheWestbankExpresswayfor$7.09persquarefootandanother saleof12.21acresonChefMenteurfor$6.58persquarefoot. AnothernotablesaleisthatoftheoldColonialGolfCountryClublocatedinHarahaninJefferson Parish.This 87.57Ͳacre site sold for $97,065 per acre.And yet another larger acreage sale occurredinAlgiers.ThesaleoftheArborsofEnglishTurnwasthatofa92.22acresitesellingfor $25,374peracre. WehavealsointerviewedmarketparticipantsincludingMr.TomWiningderandJohnCummings, bothofwhomholdsignificantlandinterestsintheimmediateneighborhood;andofcourseMr. Winingderwastheoriginaldeveloperofthesubjectsite. Mr.Cummings,alandspeculatoranddeveloper,holdsatotalofapproximately3,000acresinthe NewOrleansEastmarket.Ourinterviewfocusedonhisownershipinterestsandknowledgeof

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 65 thismarket.Heispresentlyfilling100acresofcommerciallyzonedlandalongMichoudBoulevard thatheplanstosellandordevelopatsomefuturepoint.Inaddition,hementionedthesalesof parcelsof10acresat$20,000and$25,000peracreacrossthe510splitfromthemainsite.He mentionedthatgovernmentagencieshavetakenservitudesforthedredgingofclaymaterialsfor theconstructionoflevees,andhealsoopinedthatadragstripdevelopmentonhisholdingsin conjunctionwiththeamusementridecomponentsofthesubjectmightholdsomeinterest. Anothernoteofinterestishisassertionthatthefloodingthatisoccurringonthesubjectproperty iscausingfloodingintoadjoiningtractssomeofwhichheowns.Henotedinthisregard,thata pumpisnotworking,andthatheishopefulofgettingtheSewerageandWaterBoardtoaddress thisissue. Additional interviews were held with Tom Winingder, the original developer of Jazz Land and DonniePate,thedeveloperofEastoverEstates.Mr.Winingderindicatedhestillownsa70Ͳacre parceladjacenttothemainsite.Althoughhehasnoplansforthesite,hisinterestappearstobe elsewherewithnospecificplansinNewOrleansEastfortheforeseeablefuture. Mr.PateontheotherhanddoeshavespecificplansforEastover.Thefollowingsiteplansdetail proposedexpansionsforEastoveralongthewestrightͲofͲwayofthe510splitaswellasanew phaseonthesouthsideofLakeForestBoulevardasdepictedinthefollowingdevelopmentplans:

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 66

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 67 Theseproposedphasesarejustthat;but,theplansdosuggestthatEastoverisoptimisticregarding futureexpansioninthecomingyears.Anotherindicationofvalueortheperceptionthereof,is Mr.Pate’sconsiderationforavalueasanofferingofaportionoftheEastoverpropertytothe homeowners’association.Hehasofferedthe180acresthatcomprisethegolfcourseandclub housefacilitiesasapackageof:theclubhousefacilityand10acresatapriceof$500,000.The golfcoursehasbeenofferedorwouldbesoldtothehomeowners’associationfor$2,200,000for the170acresthatconstitutethegolfcourse.Justthegolfcourseofferingequatestoavalue,as offered,of$12,941.18peracreforlandwithgoodaccessthatispermitted,drained,andfilled. Mr.PatealsoindicatedthereisnospeculativeconstructionofhousingoccurringatEastover. Giventhewiderangeofpricingonaperacrebasisacrosstheregionforthesaleoflandbothas undeveloped tracts and as redevelopment candidates, it is important to note undeveloped acreagesnearthesitehavesoldand/orareofferedforsalerangingfrom$10,000to$12,000per acre upwards to $20,000 to $25,000 per acre.Another interesting note is the surmising and musingsofsomeoftheinterviewedmarketparticipantswhostatedthattheyseethevalueofthe mainsiteinthe$0.50persquarefootrangeorroughly$25,000peracreoverall. Supply/Demand/Absorption (Subject Capture) Conclusions:Having researched the market for offerings and sales of land, and reviewed and analyzed these offerings, we may conclude the following: x dŚĞƌĞĂƌĞϭϰĂĐƚŝǀĞŽĨĨĞƌŝŶŐƐŽĨůĂŶĚŝŶƚŚĞEĞǁKƌůĞĂŶƐĂƐƚDĂƌŬĞƚůŝƐƚĞĚŽŶ>͘ x tĞĐĂŶĂƐƐƵŵĞƚŚĞƌĞĂƌĞĂĚĚŝƚŝŽŶĂůĂĐƌĞĂŐĞƐƚŚĂƚĂƌĞŽƌǁŽƵůĚďĞĂǀĂŝůĂďůĞŝŶƚŚĞŵĂƌŬĞƚ ďĂƐĞĚŽŶĚŝƐĐƵƐƐŝŽŶƐǁŝƚŚŵĂƌŬĞƚƉĂƌƚŝĐŝƉĂŶƚƐ͘ x dŚĞƌĞŚĂǀĞďĞĞŶϭϰƐĂůĞƐŽĨůĂŶĚůŝƐƚĞĚŝŶ>ƚŚĂƚŚĂǀĞŽĐĐƵƌƌĞĚƐŝŶĐĞϮϬϬϲ͘ x dŚĞĂǀĞƌĂŐĞĞǆƉŽƐƵƌĞƚŝŵĞĂŶĚĂŶĞƐƚŝŵĂƚĞĚŵĂƌŬĞƚĞĚƚŝŵĞŽĨƚǁŽǇĞĂƌƐĨŽƌĂŶŽĨĨĞƌŝŶŐ ƐƵĐŚĂƐƚŚĞƐƵďũĞĐƚƐŚŽƵůĚďĞĂŶƚŝĐŝƉĂƚĞĚ͘ x >ŽĐĂů ŵĂƌŬĞƚ ƉĂƌƚŝĐŝƉĂŶƚƐ ǁŝƚŚ ŶĞŝŐŚďŽƌŝŶŐ ůĂŶĚ ŝŶƚĞƌĞƐƚƐ ŝŶĐůƵĚĞ :ŽŚŶ ƵŵŵŝŶŐƐ ǁŝƚŚ ĂƉƉƌŽǆŝŵĂƚĞůǇ ϯ͕ϬϬϬ ĂĐƌĞƐ͖ ŽŶŶŝĞ WĂƚĞ ǁŝƚŚ ϭϴϬ ĂĐƌĞƐ ;ĐůŽƐĞĚ ŽĨĨĞƌŝŶŐͿ͖ ĂŶĚ͕ dŽŵ tŝŶŝŶŐĚĞƌǁŝƚŚϳϬĂĐƌĞƐ͘ x tĞƉƌĞĚŝĐƚƚŚĞůŝŬĞůǇƉƵƌĐŚĂƐĞƌŽĨƚŚĞƐƵďũĞĐƚƉƌŽƉĞƌƚǇƚŽďĞĂƐƉĞĐƵůĂƚŽƌŝŶůĂŶĚ͖ĂŶĚŽƌ͕Ă ƵƐĞƌŽĐĐƵƉĂŶƚǁŚŽƌĞĐŽŐŶŝǌĞƐƚŚĞǀĂůƵĞŽĨƚŚĞĞǆŝƐƚŝŶŐŝŶĨƌĂƐƚƌƵĐƚƵƌĞďĞŝŶŐĐŽŶĚƵĐŝǀĞƚŽĂ ƌĞĚĞǀĞůŽƉŵĞŶƚƐĐŚĞŵĞƚŚĂƚŵĂǇŝŶĐůƵĚĞƐŽŵĞƐŽƌƚŽĨŵŝǆĞĚůĂŶĚƵƐĞƐ͘ MarketandMarketabilityAnalysisConclusions:Ingeneral,theNewOrleansmetropolitanareahas seensignificantgrowthandrecoveryinthepostKatrinatimeframe. ThenotableexceptionisthelaggingdevelopmentandredevelopmenteffortsintheNewOrleans East neighborhoods.Although significant public infrastructure work has been performed to minimizethethreatoffloodingfrommajorstormevents,theimmediateneighborhoodhasseen littletonogrowth.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 68 Thefollowingbulletedpointssummarizethediscussionthroughouttheprecedinganalysis. x dŚĞůĂƌŐĞƌůĂŶĚƵƐĞƐŝŶƚŚĞŝŵŵĞĚŝĂƚĞŶĞŝŐŚďŽƌŚŽŽĚĂƌĞĞŵƉůŽǇĞĚ͗ o ŝŶƌĞĐƌĞĂƚŝŽŶĂůĂŶĚƉƌĞƐĞƌǀĂƚŝŽŶƵƐĞƐƐƵĐŚĂƐƚŚĞĂǇŽƵ^ĂƵǀĂŐĞEtZ o ƐĂŵŝǆĞĚƵƐĞŐŽǀĞƌŶŵĞŶƚĂůŽĨĨĞƌŝŶŐƐƵĐŚĂƐƚŚĞDŝĐŚŽƵĚƐƐĞŵďůǇ&ĂĐŝůŝƚǇ o ƐƐƉĞĐƵůĂƚŝǀĞůĂŶĚŚŽůĚŝŶŐƐďǇƉƌŝǀĂƚĞŝŶǀĞƐƚŽƌƐ x >ĂŶĚŚĂƌĂĐƚĞƌŝƐƚŝĐƐĂƌĞŚĞĂǀŝůǇŝŶĨůƵĞŶĐĞĚďǇƚŚĞƚŽƉŽŐƌĂƉŚǇ͕ĨůŽƌĂĂŶĚĨĂƵŶĂ͘ o tĞƚůĂŶĚƐĞǆŝƐƚ o DŝƚŝŐĂƚŝŽŶĐŽƐƚƐĨŽƌĚĞǀĞůŽƉŵĞŶƚĂƌĞĂĐŽƐƚůǇŝŵƉĞĚŝŵĞŶƚƚŽĚĞǀĞůŽƉŵĞŶƚ o &ŝůůŵĂƚĞƌŝĂůƚŽďƌŝŶŐƚŽŐƌĂĚĞĂŶĚĂďŽǀĞƚŽƐĂƚŝƐĨǇ&DĨůŽŽĚƌĞƋƵŝƌĞŵĞŶƚƐŝƐĂŶ ĞǆƉĞŶƐŝǀĞŝŵƉĞĚŝŵĞŶƚƚŽĚĞǀĞůŽƉŵĞŶƚ͘ x DĂƌŬĞƚĚĞŵŽŐƌĂƉŚŝĐƐƐƵŐŐĞƐƚĂůĂŐŐŝŶŐƚƌĞŶĚŽĨƌĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞŶĞŝŐŚďŽƌŚŽŽĚ͘ o tŝƚŚůŽǁĞƌƌĞƉŽƉƵůĂƚŝŽŶĂŶĚĚĞǀĞůŽƉŵĞŶƚ͕ůŽĐĂůƉŽƉƵůĂƚŝŽŶƐĐĂŶŶŽƚƐƵƉƉŽƌƚůĂƌŐĞ ƐĐĂůĞĚĞǀĞůŽƉŵĞŶƚĂƚƚŚĞůĞǀĞůŽĨĨŝŶĂŶĐŝĂůůǇĨĞĂƐŝďůĞůĂŶĚƵƐĞƐĐĂƚĞƌŝŶŐƐŽůĞůǇƚŽ ůŽĐĂůƉŽƉƵůĂƚŝŽŶƐ͘ o dŚĞĚĞůŝŶĞĂƚĞĚŵĂƌŬĞƚĂƌĞĂŝƐĂŶĞǆƉĂŶĚĞĚƌĞŐŝŽŶĂůĂƌĞĂŽĨĂƉƉĞĂůĨŽƌƚŚĞůŝŬĞůǇ ŵĂƌŬĞƚƉĂƌƚŝĐŝƉĂŶƚĂŶĚĞŶĚƵƐĞŽĨƚŚĞƉƌŽƉĞƌƚǇƵŶĚĞƌĐŽŶƐŝĚĞƌĂƚŝŽŶ͘ x dŚĞŵĂŝŶƐŝƚĞŝƐĂĚĞǀĞůŽƉĞĚƐŝƚĞǁŝƚŚƚǁŽďŽĚŝĞƐŽĨǁĂƚĞƌ͕ƐŝŐŶŝĨŝĐĂŶƚƉĂƌŬŝŶŐ͕ŵƵůƚŝƉůĞ ĂŵƵƐĞŵĞŶƚƌŝĚĞƐ͕ĂŶĚƐĞǀĞƌĂůďƵŝůĚŝŶŐƐĂŶĚƌĞůĂƚĞĚƐƚƌƵĐƚƵƌĞƐ͕ĂůůŽĨǁŚŝĐŚĂƌĞŝŶǀĞƌǇƉŽŽƌ ĐŽŶĚŝƚŝŽŶ͘ dŚĞ ŵĂŝŶ ƐŝƚĞ ŽĨĨĞƌƐ Ă ƚŽƚĂů ŽĨ ϭϰϱ͘ϵ ŶĞƚ ĂĐƌĞƐ͘ KĨ ƚŚŝƐ ĂĐƌĞĂŐĞ͕ ƚŚĞƌĞ ĂƌĞ ƵŶĚĞǀĞůŽƉĞĚĂƌĞĂƐŽĨĂƉƉƌŽǆŝŵĂƚĞůǇϭϳƚŽϮϬĂĐƌĞƐƚŚĂƚǁŝůůƌĞƋƵŝƌĞĐůĞĂƌŝŶŐĂŶĚĨŝůůŝĨƚŚĞƐĞ ƐŝƚĞƐǁĞƌĞƚŽďĞĚĞǀĞůŽƉĞĚ͘ x dŚĞǆĐĞƐƐůĂŶĚŽƌWĂƌĐĞůϭŽĨĨĞƌƐϲϱĂĐƌĞƐŽĨůĂŶĚĂƌĞĂ͘dŚŝƐƐŝƚĞŝƐƵŶĚĞǀĞůŽƉĞĚ͕ǁŽƵůĚ ƌĞƋƵŝƌĞĐůĞĂƌŝŶŐ͕Ĩŝůů͕ĂŶĚŝƐƉŽƚĞŶƚŝĂůůǇŝŵƉĂĐƚĞĚĂƐĂǁĞƚůĂŶĚƚŚĂƚǁŽƵůĚƌĞƋƵŝƌĞĂƚƚŚĞǀĞƌǇ ůĞĂƐƚĂǁĞƚůĂŶĚƐĚĞƚĞƌŵŝŶĂƚŝŽŶƚŽĚĞƚĞƌŵŝŶĞŝĨƐŽŵĞƉŽƌƚŝŽŶƐŽƌĞǀĞŶĂůůŽĨƚŚĞƐŝƚĞǁŽƵůĚ ƌĞƋƵŝƌĞŵŝƚŝŐĂƚŝŽŶ͘ x ŽƚŚƐŝƚĞƐ͕ƚŚŽƵŐŚŶŽŶͲĐŽŶƚŝŐƵŽƵƐ͕ĂƌĞĂĐĐĞƐƐĞĚĨƌŽŵDŝĐŚŽƵĚŽƵůĞǀĂƌĚ͘dŚĞŵĂŝŶƐŝƚĞ ĂůƐŽŚĂƐĂĐĐĞƐƐǀŝĂ>ĂŬĞ&ŽƌĞƐƚŽƵůĞǀĂƌĚ͘ x dŚĞ ŵĂŝŶ ƐŝƚĞ Ă ĚĞǀĞůŽƉĞĚ ƐŝƚĞ ǁŝƚŚ ĂƉƉƌŽǆŝŵĂƚĞůǇ ϯϰ ĂĐƌĞƐ ŽĨ ƉĂƌŬŝŶŐ ĂƌĞĂ͕ ŵƵůƚŝƉůĞ ƐƚƌƵĐƚƵƌĞƐ͕ĞƚĐ͘ o dŚĞďĞŶĞĨŝƚƐŽĨƚŚŝƐŝƐƚŚĞƐŝƚĞŝƐƉƌĞƐƵŵĞĚƚŽŶŽƚďĞŶĞŐĂƚŝǀĞůǇŝŵƉĂĐƚĞĚǁŝƚŚĂŶǇ ŝƐƐƵĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚǁĞƚůĂŶĚĚĞůŝŶĞĂƚŝŽŶŵĂƚƚĞƌƐ͕ϰϬϰƉĞƌŵŝƚƚŝŶŐ͕ĂŶĚĂƐƐŽĐŝĂƚĞĚ ŵŝƚŝŐĂƚŝŽŶĞǆƉĞŶƐĞƐ͘ŝŶĂĚĚŝƚŝŽŶ͕ƚŚĞƌĞŝƐŶŽƉƌĞƐƵŵƉƚŝŽŶŽĨƚŚĞŶĞĞĚŽĨĨŝůůŵĂƚĞƌŝĂů ĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĚĞǀĞůŽƉŵĞŶƚŽƚŚĞƌƚŚĂŶƚŚŽƐĞƌĞƋƵŝƌĞŵĞŶƚƐƚŚĂƚǁŽƵůĚďĞƐŝƚĞ ƐƉĞĐŝĨŝĐƚŽĂŶǇĐŽŶƚĞŵƉůĂƚĞĚƐƚƌƵĐƚƵƌĞƐǁŝƚŚƌĞƐƉĞĐƚƚŽĨůŽŽĚĞůĞǀĂƚŝŽŶƐ͘

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 69 x ĐĐĞƐƐƚŽƚŚĞŵĂŝŶƐŝƚĞŝƐĂĚĞƋƵĂƚĞ͕ďƵƚĚŽĞƐƐƵĨĨĞƌĨƌŽŵůŝŵŝƚĞĚůŝŶĞĂƌƐƚƌĞĞƚĨƌŽŶƚĂŐĞƐ ŐŝǀĞŶŝƚƐƐŝǌĞĂŶĚƐŚĂƉĞ͘ĐĐĞƐƐƚŽWĂƌĐĞůϭŝƐĨƌŽŵDŝĐŚŽƵĚŽƵůĞǀĂƌĚĂŶĚĂƉƉĞĂƌƐƚŽďĞ ĂĚĞƋƵĂƚĞ͘ o WƌŝŵĂƌǇĂĐĐĞƐƐƚŽƚŚĞDĂŝŶ^ŝƚĞŝƐůŝŵŝƚĞĚƚŽĂĐĐĞƐƐĐŽƌƌŝĚŽƌƐƚŽDŝĐŚŽƵĚĂŶĚ>ĂŬĞ &ŽƌĞƐƚ͕ǁŝƚŚĂĚĚŝƚŝŽŶĂůĨƌŽŶƚĂŐĞĂůŽŶŐ>ĂŬĞ&ŽƌĞƐƚ͕ĂŶĚŝƚƐƌĞĂƌĞŶƚƌĂŶĐĞŽƌƐĞƌǀŝĐĞ ĞŶƚƌĂŶĐĞĨƌŽŵƚŚĞϱϭϬĞĂƐƚĞƌŶƐĞƌǀŝĐĞƌŽĂĚ͘ x &ůŽŽĚŝŶŐŝƐĂƉƌŽďůĞŵ͕ƉĂƌƚŝĐƵůĂƌůǇĂůŽŶŐƚŚĞǁĞƐƚĞƌŶƉŽƌƚŝŽŶŽĨƚŚĞDĂŝŶ^ŝƚĞ͘ x ŽŶŝŶŐŝƐĂƉŽƐŝƚŝǀĞďĞŶĞĨŝƚĨŽƌďŽƚŚƐŝƚĞƐĚƵĞƚŽƚŚĞďƌŽĂĚƐĐŽƉĞŽĨƵƐĞƐƚŚĂƚĂƌĞƉĞƌŵŝƚƚĞĚ ƵŶĚĞƌƚŚĞůĂŶĚƵƐĞŽƌĚŝŶĂŶĐĞ͘ x dŚĞƌĞĂƌĞϭϰĂĐƚŝǀĞŽĨĨĞƌŝŶŐƐŽĨůĂŶĚŝŶƚŚĞEĞǁKƌůĞĂŶƐĂƐƚDĂƌŬĞƚůŝƐƚĞĚŽŶ>͘ x tĞĐĂŶĂƐƐƵŵĞƚŚĞƌĞĂƌĞĂĚĚŝƚŝŽŶĂůĂĐƌĞĂŐĞƐƚŚĂƚĂƌĞŽƌǁŽƵůĚďĞĂǀĂŝůĂďůĞŝŶƚŚĞŵĂƌŬĞƚ ďĂƐĞĚŽŶĚŝƐĐƵƐƐŝŽŶƐǁŝƚŚŵĂƌŬĞƚƉĂƌƚŝĐŝƉĂŶƚƐ͘ x dŚĞƌĞŚĂǀĞďĞĞŶϭϰƐĂůĞƐŽĨůĂŶĚůŝƐƚĞĚŝŶ>ƚŚĂƚŚĂǀĞŽĐĐƵƌƌĞĚƐŝŶĐĞϮϬϬϲ͘ x dŚĞĂǀĞƌĂŐĞĞǆƉŽƐƵƌĞƚŝŵĞĂŶĚĂŶĞƐƚŝŵĂƚĞĚŵĂƌŬĞƚĞĚƚŝŵĞŽĨƚǁŽǇĞĂƌƐĨŽƌĂŶŽĨĨĞƌŝŶŐ ƐƵĐŚĂƐƚŚĞƐƵďũĞĐƚƐŚŽƵůĚďĞĂŶƚŝĐŝƉĂƚĞĚ͘ x >ŽĐĂů ŵĂƌŬĞƚ ƉĂƌƚŝĐŝƉĂŶƚƐ ǁŝƚŚ ŶĞŝŐŚďŽƌŝŶŐ ůĂŶĚ ŝŶƚĞƌĞƐƚƐ ŝŶĐůƵĚĞ :ŽŚŶ ƵŵŵŝŶŐƐ ǁŝƚŚ ĂƉƉƌŽǆŝŵĂƚĞůǇ ϯ͕ϬϬϬ ĂĐƌĞƐ͖ ŽŶŶŝĞ WĂƚĞ ǁŝƚŚ ϭϴϬ ĂĐƌĞƐ ;ĐůŽƐĞĚ ŽĨĨĞƌŝŶŐͿ͖ ĂŶĚ͕ dŽŵ tŝŶŝŶŐĚĞƌǁŝƚŚϳϬĂĐƌĞƐ͘ x /Ŷ ƚŚĞ ŝŶĚƵƐƚƌŝĂů ƐĞĐƚŽƌ ŽĨ EĞǁ KƌůĞĂŶƐ ĂƐƚ ĂĐĐŽƵŶƚƐ ĨŽƌ ϭϬй ŽĨ ƚŚĞ ƚŽƚĂů ǁĂƌĞŚŽƵƐĞ ŝŶǀĞŶƚŽƌǇŝŶƚŚĞŵĞƚƌŽƉŽůŝƚĂŶĂƌĞĂĂŶĚĂůƐŽƐŚŽǁƐƐƚƌŽŶŐŽĐĐƵƉĂŶĐǇůĞǀĞůƐĂŶĚƐƵƐƚĂŝŶĂďůĞ ƌĞŶƚĂůƌĂƚĞƐ͘ x tĞƉƌĞĚŝĐƚƚŚĞůŝŬĞůǇƉƵƌĐŚĂƐĞƌŽĨƚŚĞƐƵďũĞĐƚƉƌŽƉĞƌƚǇƚŽďĞĂƐƉĞĐƵůĂƚŽƌŝŶůĂŶĚ͖ĂŶĚŽƌ͕Ă ƵƐĞƌŽĐĐƵƉĂŶƚǁŚŽƌĞĐŽŐŶŝǌĞƐƚŚĞǀĂůƵĞŽĨƚŚĞĞǆŝƐƚŝŶŐŝŶĨƌĂƐƚƌƵĐƚƵƌĞďĞŝŶŐĐŽŶĚƵĐŝǀĞƚŽ ƐŽŵĞůĞǀĞůŽĨŝŶĚƵƐƚƌŝĂůĚĞǀĞůŽƉŵĞŶƚ͘

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 70 HIGHESTANDBESTUSE Themostrecentinterpretationoftheconceptofthehighestvalueassociatedwithaspecificuse ofrealestateisdefinedasthehighestandbestuseofapropertyaccordingtoTheAppraisalof RealEstate,TheFourteenthEdition,Page332,as"thereasonablyprobableuseofpropertythat resultsinthehighestvalue.”TheFourteenthEditiongoesontosay“tobereasonablyprobable,a usemustmeetcertainconditions: x TheusemustbeƉŚǇƐŝĐĂůůǇƉŽƐƐŝďůĞ(oritisreasonablyprobabletorenderitso). x TheusemustbeůĞŐĂůůǇƉĞƌŵŝƐƐŝďůĞ(oritisreasonablyprobabletorenderitso). x TheusemustbeĨŝŶĂŶĐŝĂůůǇĨĞĂƐŝďůĞ. Uses that meet the three criteria of reasonably probable uses are tested for “economic ƉƌŽĚƵĐƚŝǀŝƚǇ͕andthereasonablyprobableusewiththehighestvalueisthehighestandbestuse.” ThelevelofanalysisundertheHighestandBestUseforthesubjectsiteisderivedfromtheLevel “B”analysisbasedontheprecedingmarketandmarketabilityanalyses. Intheprecedingsetofanalyses,wehaveclearly: o delineatedthemarketinwhichthepropertyissituatedanddeterminedthemaximum marketgeographyasaregionalmarket,andtheimmediatemarketneighborhoodwas defined; o presentedasanoverviewofthepopulationdemographicsfortheregionina90Ͳminute drivetimeanalysisaswellasthegeographicboundariesofthelandmassthatconstitutes NewOrleansEastareconsidered; o wehavealsopresentedafulldescriptionofthesite’sareadimensions,thegrosslandareas ofthetwosites,thenetusablelandareaandestimatesoftheactualclearedandfilled areas; o weaddresstheimprovementsandthelikelyneedtodemolishsame; o we have also presented market conditions with conclusions as to applicability to the subjectastheserelatetoretail,officeandindustrialuses. o weinterviewedindividualswhomwebelievetobeknowledgeablemarketparticipants; o and,wesurveyedthemarketforbothofferingsandlistingsaswellassalesdatingto2006. Alloftheforegoingresearchandanalysesallowustoproperlyaddressthethreeconditionsof physical attributes, legally permissible uses, and financial feasible uses as are explored in the followingpages–first,weanalyzethesubjectpropertyasifthesite(s)werevacantparcelsofland inour“asvacant”analysis,andthen,weanalyzetheimprovedsiteforthemaincampusinour“as improved” analysis concluding to the highest and best use under both “as vacant” and “as improved”.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 71 ƐsĂĐĂŶƚ͗ When determining the highest and best use of the subject property, the three conditions mentionedaboveareusedtoconcludetothepenultimateexpressionofhighestandbestuse, namelythemaximallyproductiveuseconclusionwhichallowsforouropinionofthehighestand bestusetobeexpressed. x >ĞŐĂůWĞƌŵŝƐƐŝďŝůŝƚǇ͗thefirstconsiderationrelativetodeterminationofthehighestand bestuse"asvacant"istodeterminewhetherornotaproposedusewouldbeallowed underthezoningdesignationinwhichthesubjectpropertyissituated. Under this zoning classification, it is noteworthy to say, many, many legal uses are permitteduses;but,fromourperspective,retail,office,industrial,andmultiͲfamilyuses would be permitted uses accompanied by many other uses including hospitality, institutional, and a long list of other property specific uses.The subject property is primarilyzonedGPDGeneralPlannedDistrict,withastripofthemainsitealongMichoud BoulevardzonedCͲ2,AutoͲOrientedCommercial.TheCͲ2zoningandtheGPDzoning classificationsarecomplementaryinnatureanddonotdetractfromtheoverallpotential uses of the sites.The CͲ2 component of the zoning is the access road from Michoud Boulevardtotheparkingareas.Thiszoningisasignificantadvantageduetothelength scopeofallowedorpermitteduses.Acopyofthelanduseordinanceforthiszoning classificationiscontainedintheAddendumsectionofourreport.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 72 Situated in Planning District 10, this zoning district is bounded to the north by Lake Pontchartrain,tothesouthbyDistrict11,andtothewestbyDistrict9asisdepictedbelow.

x WŚǇƐŝĐĂůWŽƐƐŝďŝůŝƚǇ͗thenextconsiderationrelativetodeterminationofthehighestand bestuse"asvacant"isthedeterminationofwhetherornotaproposedusewouldbe physicallypossiblerelativetotheshapeandsizeofthesubjectsite.Thesubjectproperty contains 227.37 acres or 9,904,237 square feet. This land area is in two distinct and separateparcels.WedesignatetheMainCampussiteasthedevelopedareasoftheold Six Flags Amusement Park.Originally developed as Jazz Land, the property was subsequentlyacquiredbySixFlagsandoperatedasSixFlagsNewOrleansuntilAugust29, 2005,thedateofHurricaneKatrina. Subsequenttothis,themaincampushasbeenclosedtothegeneralpublicandhasonly seeninterimcommercialactivityasamoviesetforshotsfromproductioncompaniesthat wereshootingmoviesinthisarea.WiththereductionoftheLouisianaTaxCreditProgram related to movies that are shot here, the movie industry activity has dropped by an estimated90%. GiventhesizeandshapeofthemainsiteaswellastheaccompanyingyetnonͲcontiguous excess site, it is inconceivable that most if not all considered uses could not be accommodatedbythelandareasinquestion.Thesizeandshapeofbothsitesarecapable of supporting large scale operations such as residential subdivisions, a large industrial

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 73 facility(maincampus),aretailmall(maincampus),oranyotherlargescaleoperations includinganamusementpark(maincampus). ThesecondaryorExcessSiteisaccessedviaMichoudBoulevardandislocatedslightlyto thenortheastoftheMainCampus.Thefollowingmapandgridgiveabreakoutofthe acreages and is accompanied by an aerial that pins the undeveloped land areas with acreageestimatesfortheMainCampus. UndevelopedAreasofMainSite

AcreageEstimates: NorthernArea:15acres(460’x670’;1305’x270’) SoutheasternArea:2.2acres(200’x480’) The main campus contains approximately 162 acres with 16.13 acres in water and an estimated17to20acresofundevelopedareas.Notingthesiteisalargesite,thereare somedrawbacksrelatedtousableareas(waterandundevelopedlands)aswellasaccess. TheExcesssitewith65.3548acresisanundevelopedsitethatisaccessedfromMichoud Boulevard.ThissitewillrequireclearingandfillandmaypossiblyrequireSection404 mitigation program under a wetlands delineation study if or when development is contemplated. AproblemoffloodingispresentlyadetrimenttothedevelopmentorreͲdevelopmentof thesite.Aslongasthisconditionpersists,thesitewillsufferunderanadditionalfinancial burdenintermsofpricingwerethesitetobeofferedforsale. Accessfromtheinterstateisexcellentforthemainsiteandverygoodfortheexcessland site.Withverygoodtoexcellentaccesstotheinterstate,bothsitesarewellpoisonedfrom

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 74 acompetitivestandpoint.Thedrawbackforthemaincampusgiventheoverallsizeofthe siteisthelackofstreetfrontage.TheprimaryaccessisfromMichoudandLakeForest Boulevardsintheformoftwoaccessroads.Themainsitedoesnothavesufficientstreet frontagestoallowforaccessfromthefourpointsofthecompass.Withlimitsastoaccess, thisdoesprovidesomeanticipatedincreasesincostwithrespecttotheneedforinterior drivinglanesthatwouldreplicate360degreesofaccesspoints. Theexcesssiteisalsosomewhatcompromisedinthisregard,butwiththesurrounding landusessuggestingresidentialdevelopment,thisdoesnotpresentaconcern. x &ŝŶĂŶĐŝĂů&ĞĂƐŝďŝůŝƚǇ͗thisconsiderationisintegralindeterminingtheproposeduseofa vacantsite.Thistestdetermineswhetherornotconstructioncostsandlandacquisition arejustifiedbytheanticipatedcashflowsassociatedwithaproposedsubjectproperty. Based on our research of listings and sales, discussions with knowledgeable market participants and recognition of the costs of clearing, filling and potential wetlands mitigation,thefollowingissurmisedregardingfinanciallyfeasibleuses: o Anyandalluseswillhavetocomplywiththeunderlyinglanduseordinances.This isnotconsideredaproblemgiventheliberalzoningoftheproperty. o ClearingandfillwillbenecessaryfortheExcesssite.Thesamewillberequiredfor twoportionsoftheMainCampus.Thecostsofthiscanbeonerous.Ifthereisany portionofthesite(s)thatwouldrequiremitigation,thenanadditionalcostwould beaddedintoanydevelopmentscenario. o Thesite(s)willcompetewithproximateandneighboringsites.JohnCummingsis preparing100acrestothenortheastoftheExcessSitealongMichoudBoulevard asitintersectswiththeinterstatesystem. o TherearetwocurrentlistingsonMichoud–a10acreparcelandtheothera12 acreparcel.Theofferingsare$10,000peracreand$41,459peracrerespectively withthe$41,459peracrebeingviewedasoverͲpriced. o BasedontheŽ^ƚĂƌZĞƉŽƌƚ,therehasbeennosignificantconstructionorplanned constructionintheretail,office,andindustrialsegmentsofthissubmarket. o Based on conversations with Donnie Pate, the developer of Eastover, the residentialmarketsareslowinthisneighborhoodwithlittletonospechousing beingbuilt. Theconsiderationslistedabovesuggestlimitedappealandcompetingpricingforthe twosubjectsites.FinancialfeasibilitywouldappeartobelimitedtononͲspeculative

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 75 development for an owner user or as a long term land holding opportunity for an investorasalandspeculation. Themaximallyproductiveuseofthesitebecomesequallychallengedunderthetestforfinancially feasibleuseswithstrictlimitsunderthemarketconditionsasanalyzed. Thesite(s)mightbeacquiredforsomenonͲspeculativeusesuchasinstitutionaldevelopmentfor achurchorschoolcampus,orgovernmentaluse. Althoughspeculativeinnature,aproductionhomebuilderorsomelevelofmultiͲuseresidential includingmultiͲfamilywithasinglefamilydevelopmentlanduseplanmightprovetobemaximally productivewereprovenmarketacceptanceapparent. Withthecurrentstateofaffairsonhomebuildinginthismarket,itwouldbelikelythatwerea housingdevelopmentcontemplated,therewouldbeeitherspecializedtaxincentivesatplay,such astheLowIncomeHousingTaxCredit(LIHTC)program.ThiswouldsuggestlargescalemultiͲ familydevelopment.Ifthisweretooccur,thereisthenthepossibilitythatsomeotherformsof residentialdevelopmentmightoccuraswell. PerhapsthebestnonͲspeculativeuseisthedevelopmentofthemainsiteasanindustrial,ownerͲ usersitewhichappearstobethebestpositionedsegmentofthemarketinthisregard.Itisalso concludedthatthelowestvalueattributableunderthemaximallyconcludedusesisthatofaland speculation.Giventhecurrentmarketconditionsinthisneighborhood,thismaywellbethe highestandbestuse. Thus,thehighestandbestuseofthesubjectsite"asvacant"isasanownerͲusersitewithindustrial usessuchasatruckterminal,distributionfacilityorsomeformofprocessingormanufacturing use. Theonlyotherlikelyuseisthatofanacquisitionasalandholdingbyaninvestorwithaminimum ofdebtfinancingand“patientmoney”.Lackinganowneroperatorofthesite,landspeculationis highlylikelywhichovertimecouldresultintheeventualdevelopmentofcertaincomponentsof thesite(s)withprobableselloffsoverandextendedholdingperiod. Ɛ/ŵƉƌŽǀĞĚ͗ Whendeterminingthehighestandbestuseofthesubjectproperty“asimproved”,thesamethree factorsareconsideredagain. Thesite(s)arediscussedseparatelytodistinguishtheMainCampusͲdevelopedsiteandrawland orExcessSite. TheMainCampushasexperiencedadvanceddecayoftheimprovements.Granted,thestructural steelcomponentsofthebuildingsappeartobesound,butthereislittlelefttosaywithregardto

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 76 the overall condition of the improvements other than that they have no contributory value. Rather,theypresentaveryrealfinancialliabilitytothepropertyintermsofthecostofdemolition netofsalvagevalue. Theprimaryvaluecontributionoftheimprovementsarethesiteimprovementsthemselvesrather thanthestructures,remnantsoftherides,etc.Otherthanthewateracresandtheunimproved acreageareas,significantportionsofthesitethatareclearedandfilledandalreadymitigatedwith respecttoany404issuesandarereadyforreͲdevelopment.Therearelargeareasofpaving; adequateaccessroutestothesite,andvisualidentityfromtheintersectinginterstatesystems. Accessviatheinterstateisverygoodwithaninterchangeatthesite.Withthelocation,zoning, and“readyforretail”natureofthesite(exceptingofcoursedemolition),thesitepresentsasvery realreͲdevelopmentopportunityinthissubmarket.Thesameconsiderationsarepresentasthe “asvacant”analysissuggestsandarerepeatedbelow: o Anyandalluseswillhavetocomplywiththeunderlinglanduseordinances.This isnotconsideredaproblemgiventheliberalzoningoftheproperty. o ClearingandfillwillbenecessaryfortheExcesssite.Thesamewillberequiredfor twolowͲlyingportionsoftheMainCampus.Thecostsofthiscanbeonerous.If thereisanyportionofthesite(s)thatwouldrequiremitigation,thenanadditional costwouldbeaddedintoanydevelopmentscenario. o Thesite(s)willcompetewithproximateandneighboringsites.JohnCummingsis preparing100acrestothenortheastoftheExcessSitealongMichoudBoulevard asitintersectswiththeinterstatesystem. o TherearetwocurrentlistingsonMichoud–a10acreparcelandtheothera12 acreparcel.Theofferingsare$10,000peracreand$41,459peracrerespectively. o BasedontheŽ^ƚĂƌZĞƉŽƌƚ,therehasbeennosignificantconstructionorplanned constructionintheretail,office,andindustrialsegmentsofthissubmarket. o Based on conversations with Donnie Pate, the developer of Eastover, the residentialmarketsareslowinthisneighborhoodwithlittletonospechousing beingbuilt. Theasimprovednatureofthesitealsopresentsaveryrealissue–thefloodingthatiscurrently occurringonthesite.Withvacantland,adrainageplancanbedevelopedandimplemented.With theimprovedelementsofthesite,thesourceandcauseofthefloodingisprobablyrelatedto eitherinadequatepumpinganddrainageinfrastructureinplaceoranissuewiththeareasrelated togeneralstreetfloodinganddrainage.Uponseveralinspections,thefloodingappearstobe containedtothemaincampussitesotheformerisprobablytheissue.Thecosttocorrectthis wouldalsohavetobecontemplatedandknownpriortotheassignmentofsignificantvaluetothe

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 77 floodedareasofthesouthwesternportionsofthesite.Thehighestandbestuseofthesubject “asimproved”isnotsurprisinglythesameaswasconcludedinthe“asvacant”analysis:Asa speculative land hold given the nature and condition of the improvements and the general conditionsandnatureofthecurrentmarket.Theonlylikelymarketparticipantwhowouldcreate thehighestandbestuseoverallisthoughttobeanownerͲoccupantinneedofalargeindustrial orienteduse. Withoutappearingtostatetheobviousviaomission,wegoontherecordtostatethereisnoviable considerationunderthisanalysisthatredevelopmentofthesiteasanamusementpark,orthe continueduseofthesiteasanamusementpark,isaviableconsideration. Themarketparticipant(s)likelytopurchasethesubjectpropertywouldlandinvestor/speculatorsor owner/occupantindustrialusers. Thelikelyexposureandmarketingtimeisestimatedtobetwentyfour(24)months.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 78 LAND/SITEVALUATION ŽŵƉĂƌĂďůĞĂƚĂŝƐĐƵƐƐŝŽŶ As was outlined within the ^ĐŽƉĞ ŽĨ ƚŚĞ ƉƉƌĂŝƐĂů, we have applied two separate land/site valuationsanalysespertinenttothefollowingcomponentsofthesubjectproperty: 1. “TheMainSite”beingcomprisedoffourmostlydevelopedparcelstotalingagrossareaof 162.0157acreswithanestimatednetusableareaof145.8857acres. 2. “Parcel1”measuringapproximately65.3548acresofraw,unͲdevelopedlandinneedof significantphysicaladditionsandalsopossiblypermittingrelatedprocessesnecessaryto activatethesiteasa“developmentready”tract. Duetothenotablydifferentstateofeachofthetwositescomprisingthesubjectproperty,and forreasonsfullydetailedwithinthe^ĐŽƉĞŽĨƚŚĞƉƉƌĂŝƐĂů,wehaveselectedseparatesetsof comparabledataforeachsitetodulyaddressthedifferentstatesofthetwoparcels. The“MainSite”datasetisprimarilycomprisedoflocallyspeculativelandacquisitionsoflikeͲkind siteswithsomeinfrastructureinplace,reasonablelevelsofentitlementsinplace,andgenerally limitedfillrequirements.Thisdatasetisalsoaugmentedbysalesofindustriallyorientedtracts fromacrosstheregion–duemainlytodemonstratetheconsistencyinpricingbetweenthemore geographicallyproximatesalestosalesofindustrialsiteswithinabroadergeographicfootprint, whichshareasimilarhighestandbestusetothesubject“MainSite”aspossiblecandidatesfor industrial/distributionrelateddevelopment. Conversely,the“Parcel1”datasetisprimarilycomprisedofsalesandcurrentlistingsofraw,truly comparablesites–requiringsimilarlevelsoffill,permittingandsitepreparationnecessaryto support development.In both cases, the sales comparison approach is the only applicable approachtovalue;andthedatasetsrequireconsiderationofclosedsales,pendingsalesandalso currentlistings. Inthecaseofbothsites,duemainlytothesheersizeofthetracts,itisnecessarytoexpandour comparabledatasearchͲbothgeographicallyandalsochronologically.Therearesimplysofew tractssimilarinsizetothesubjectparcels,muchlesssalesthathaveactuallyclosedthatcouldbe considered truly comparable.Accordingly, we have conducted exhaustive searches both historicallyandregionallyinordertodevelopcomparabledatasetsreflectiveofthevalueofthe subjectparcelsgiventheirrespectivehighestandbestuses.Ofnotewithrespecttotheageof someofthecomparablesalesisthatlandpricinghasremainedstagnantinNewOrleansEast– datingbacktopreͲKatrinamarketconditions.Ifanything,pricingmayhavebeenhigherbefore thestorm.Assuch,relianceonthesesalesisstillapplicabletodayinthevaluationofthesubject sites.Whenthismarketdataispairedwithmorecurrentsalesandlistingsinthemarketplace, thedataprovesmutuallysupportive.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 79 SalesComparisonApproach–LandValuation TheSalesComparisonApproachisbasedonthepremisethatabuyerwouldpaynomorefora specificpropertythanthecostofobtainingapropertywiththesamequality,utility,andperceived benefitsofownership.Itisbasedontheprinciplesofsupplyanddemand,balance,substitution and externalities. The following steps describe the applied process of the Sales Comparison Approach. x The market in which the subject property competes is investigated; comparable sales, contractsforsaleandcurrentofferingsarereviewed. x The most pertinent data is further analyzed and the quality of the transaction is determined. x Themostmeaningfulunitofvalueforthesubjectpropertyisdetermined. x Eachcomparablesale isanalyzedandwhereappropriate,adjustedto equatewiththe subjectproperty. x Thevalueindicationofeachcomparablesaleisanalyzedandthedatareconciledforafinal indicationofvalueviatheSalesComparisonApproach. “MAINSITE”LAND/SITEVALUATION Includedwithinthefollowingpagesisthecomparabledatacomprisingthemarketdataonwhich wehavebasedthevaluationof“TheMainSite”asdepictedbelowinasamplephoto:

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 80 ComparableLandSaleNumber1

OntheMichoudCanalandIntracoastalDrive NewOrleans,Louisiana70129

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 81 ComparableLandSaleNumber1

NAME WaterfrontIndustrialSiteSale

ADDRESS 15100IntracoastalDrive,NewOrleans,LA70129

DATE April4,2014

RECORDATION Instrument#2014Ͳ13613

PARISH Orleans

VENDOR DundeeCementCompany

VENDEE AgricoSales,Inc.

SALESPRICE $1,000,000.00

TERMS CashSale

ZONING HͲI,HeavyIndustrial

VERIFICATION OrleansParishClerkofCourt

LINEARFRONTFEET 813.63linearfeetalongtheeastsideoftheMichoudCanal

TOTALUNITPRICE $37,300PerAcre

NETUNITPRICE $37,300PerAcre

SITEDIMENSIONS Generallyrectangularwith813.63linearfeetalongtheeastside oftheMichoudCanal

PRICEPERFF $1,229perfrontfoot

TOTALACREAGE 26.81Acres

USABLEACREAGE 26.81Acres

HIGHESTANDBESTUSE WaterfrontIndustrial

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 82

LEGALDESCRIPTION A 26.81 acre portion of ground bounded on the west by the Michoud Canal, on the east by the Intracoastal Drive. Chef MenteurHighwayistothenorthandtheIntracoastalWateris tothesouth.

COMMENTS ThisisthesaleofawaterfrontindustrialsiteontheMichoud Canal,justoffoftheIntracoastalWaterwayinNewOrleansEast. It was purchased for the development of a large production facility.

CONFIRMATION OrleansParishClerkofCourt.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 83 ComparableLandSaleNumber2

CornerofLapalcoBoulevardandWestwoodDrive,Marrero,LA70072

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 84 ComparableLandSaleNumber2

ADDRESS CornerofLapalcoBoulevardandWestwoodDrive,Marrero,Louisiana 70072

DATE Friday,September27,2013

RECORDATION InstrumentNumber:11348600

PARISH Jefferson

VENDOR iBERIABank

VENDEE People'sCommunitySubsidiary,Inc.

SALESPRICE $1,600,000.00

TERMS CashSale

ZONING RͲ1A, Single Family Residential; RͲ1TH, Townhome District; MUCD, MixedͲUseCorridor

FLOODZONE According to the FIRM Flood Zone Map, Community Number 5199 revisedasofMarch23,1995,thesubjectappearstobesituatedin FloodZoneAE.Thisdistrictisclassifiedasahighfloodrisk.

VERIFICATION PropertyManager,Mr.StevenHebert(504)207Ͳ3025

SITEUNITPRICE $1.18PSF (perSF)

SITEUNITPRICE $51,563.00PerAcre (perAcre)

SITESIZE(SF) 1,351,833sf

SITESIZE(ACRES) 31.03acres

UNITCOUNT 152

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 85

PRICEPERUNIT 7,829

SURVEYDATE Thursday,August15,2013

BOUNDING CornerofLapalcoBoulevardandWestwoodDrive STREETS

LEGAL 87DevelopedResidentialLots:LotJͲ19Ͳ3,JͲ15ͲB,JͲ16,JͲ17,andJͲ18, DESCRIPTION oftheAmesFarmSubdivision,furtherreͲsubdividedintoWestwood SubdivisionLots1Ͳ87,JeffersonParish,StateofLouisianaCommercial Lot: Lot 1A, of Square A, of the Westwood Crossing Subdivision, JeffersonParish,StateofLouisianaCommercialLot:Lot1A,ofSquare B, of the Westwood Crossing Subdivision, Jefferson Parish, State of Louisiana65PaperLots:LotJͲ13andapartofLotJͲ15ͲBoftheAmes FarmSubdivision(lessLot1ofSquareA),furtherreͲsubdividedinto RueOrleansSubdivision,JeffersonParish,StateofLouisiana

DESCRIPTIONOF Theprimaryelementofthepropertyisadevelopedsubdivisionthatis IMPROVEMENTS plattedfor87residentiallots.Thelotsrangeinsizefrom6,600square feetto10,630squarefeetwithanaveragelotsizeof7,481squarefeet. Theexistinglotsgenerallyrangeinsizefrom50’to70’widthswith averagedepthsbeingapproximately110’.Thenecessaryinfrastructure has been completed for the subject subdivision including concrete pavedstreets,rollovercurbs,andsubsurfacedrainage.Thefrontofthe property (along Lapalco Boulevard) has a large metal gate and an entrancewithanicelyappointedguardpost.Therearealsodecorative streetlampsalongthestreetswithinthedevelopment,althoughatthe timeofoursitevisitthedevelopedlotswereovergrownandthegates tothedevelopmentwerechainedshut.Alsoincludedinthepending saleare65plattedlotsthatwereneverfullydeveloped.Theareaofthe 65paperlotsmeasures8.03acres.The65paperlotsneverhadthe necessaryroadwaysputintoplace.Noteworthyaboutthepaperlot siteareaistheacknowledgementbythecurrentpropertymanagerof potentialwetlandsalthoughheisunsureofexactlyhowmuchofthe siteisimpacted.Finally,thesaleincludestwocommerciallotsthatare designatedasLot1AofSquareAandLot1AofSquareB.Theselots measure47,905squarefeetand54,313squarefeet,respectively;and are zoned MUCD, MixedͲUse Corridor District. The lots are situated directlyinfrontofresidentiallotsalongLapalcoBoulevard.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 86

COMMENTS AccordingtoMr.StevenHebert,withHGIPropertyManagement,the development was originally under contract for a little less than $1,800,000.Thebuyerisalargehomebuilder.Mr.Hebert’smarketing strategy for the property was to approach different home building companiesabouttheproperty.Thenegotiationsforthecontractprice tookapproximately6months.Forcomparablepurposes,weconsider thecommerciallotstohaveacontributablevalueof$610,000.This assumesavalueof$6.00persquarefootforeachofthecommercial lots.Assumingasalespriceof$1,800,000,thevalueattributedtothe residentiallotsis$1,190,000.With28.69acresofresidentialland,and apotential152lots;theresidentiallandindicatorsare$41,482peracre and$7,829perlot.

CONFIRMATION PreviousAppraisal,S.ParkersonMcEneryͲMarch2013

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 87 ComparableLandSaleNumber3

Highway23atMyrtleGroveLane,PortSulphur,LA70083

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 88 ComparableLandSaleNumber3

ADDRESS Highway23atMyrtleGroveLane,PortSulphur,Louisiana70083

DATE Wednesday,April24,2013

RECORDATION DeedBook1293,Page474

PARISH Plaquemines

VENDOR CLLLimitedPartnership,Ltd.

VENDEE NOLAOilTerminal,LLC

SALESPRICE $4,400,000.00

TERMS Cash

ZONING FP,FloodPlain(Subsequentlypermittedforindustrialuse)

VERIFICATION PlaqueminesParishClerkofCourt

SITEUNITPRICE $28,792.04PerAcre (perAcre)

SITEDIMENSIONS Irregularlyshapedtractfronting4,645linearfeetalongthenorthern rightͲofͲwayofHighway23and5,350linearfeetalongtheWestBank oftheMississippiRiver.Accordingtoasurveyofthepropertyprepared byHughMcCurdyIII,PLSonJuly21,2004,38.29acresoftheproperty iscomprisedofbattureandlevee,whiletheremaining114.53acresis composedofusablesiteareafrontingalongHighway23.

SITESIZE(ACRES) 152.82acres

HIGHESTAND RiverfrontIndustrialDevelopment BESTUSE

LEGAL A152.82acreparceloflandlocatedinSection10,Township17South, DESCRIPTION Range25East,TownofMyrtleGrove,Louisiana

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 89

COMMENTS Thisisthesaleofa152.82acretractoflandsituatedonthenorthside ofHighway23andfronting5,350linearfeetontheWestBankofthe Mississippi River. The site has 114.53 acres of usable area between Highway23andthelevee,withthebalanceconsistingoftheleveeand riverbatture.Forpurposesofcomparison,thebatturehasbeenvalued at$400.00perfrontfoot,or$2,140,000,withthebalanceof$2,260,000 assignabletothe114.53acresofusablesitearea. Since the acquisition of the site, the current ownership has invested significant time and funds to permit the site for use as a riverfront petrochemical storage, distribution, and transfer facility. It is the first suchfacilitypermittedinLowerPlaqueminesParishinover40years.This involvedengineering,surveys,andwetlandsdelineationandmitigation on the site itself, plus significant expenditures for the proposed oil terminalitself.AsofSummer2014,siteworkisunderwayandtheproject appearstobemovingforward.

CONFIRMATION PreviousAppraisalͲS.ParkersonMcEneryandAdamW.CouchͲ November2013

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 90 ComparableLandSaleNumber4

LouisianaHighway18,St.James,Louisiana70086

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 91 ComparableLandSaleNumber4

NAME MississippiRiverfrontSite

ADDRESS LouisianaHighway18,St.James,Louisiana70086

DATE Friday,January11,2013

RECORDATION Book458Page302

PARISH St.James

VENDOR Berwick,LLC(WhitneyHoldingCorporation)

VENDEE GavilonAgriculture,LLC

SALESPRICE $10,405,118.00

TERMS Cash

ZONING NozoninginunincorporatedSt.JamesParish

FLOODZONE C

VERIFICATION St.JamesParishClerkofCourt

TOTALUNITPRICE $13,822PerAcre

NETUNITPRICE $19,524PerAcre

SITEDIMENSIONS 1,202linearfeetofMississippiRiverfrontage

PRICEPERFF $8,657perfrontfoot

TOTALACREAGE 752.80Acres

USABLEACREAGE 532.94Acres

BOUNDINGSTREETS LouisianaHighway18,LouisianaHighway3127

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 92

LEGALDESCRIPTION AcertainparceloflandsituatedinSections59and63,Township 11South,Range15EastandSections4,5,27,29,39,40and47 Township 12 South, Range 15 East, St. James Parish, State of Louisiana

COMMENTS Thiscomparablepertainstoa752.8acresitethatis1/3ofthe former Winchester Plantation. The property fronts 1,202 linear feetonthewestbankoftheMississippiRiverandwasvacantand undevelopedatthetimeofsale. Ofthetotalacreage,24.86acresofthesiteisconsideredbatture, 5acresliesintheTexasandPacificRailroadrightofway,and190 acresiswetland/woodedareathatliessouthofLAHighway3127 to the rear of the property line, leaving 532.94 acres of usable land. Thesellerretainedmineralrightsandatthetimeofsaletherewas noactivehydrocarbonproductionontheproperty. Thispropertywasonthemarketfor1,311daysatanaskingprice of$13,350,000beforesellingattheabovepriceof$10,405,118. Thelistingagentnotedthattherewasnoactivityuntillate2012 whenmultipleofferscamein.Thebuyerintendedtoutilizethe siteforlargescaleindustrialpurposes;howevertheseplanshave sincebeenputonhold.

CONFIRMATION ListingAgentͲBobbyTalbot,(504)525Ͳ9763

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 93 ComparableLandSaleNumber5

APortionoftheEdenborneTND,SWQuadrantofIͲ10andHighway44,Gonzales,LA70737

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 94 ComparableLandSaleNumber5

ADDRESS A Portion of the Edenborne TND, SW Quadrant of IͲ10 and Highway44,Gonzales,Louisiana70737

DATE Wednesday,November07,2012

RECORDATION InstrumentNumber811548

PARISH Ascension

VENDOR EdenborneDevelopmentCo.,LLC

VENDEE StateofLouisiana

SALESPRICE $2,000,000.00

TERMS Cash

ZONING TND

VERIFICATION AscensionParishClerkofCourt

SITEUNITPRICE $46,511.63PerAcre/$1.07perSF

SITEDIMENSIONS Irregularwithatotalof2,437.12feetonthesouthsideofWest EdenborneParkway

SITESIZE(ACRES) 43acres

HIGHESTANDBESTUSE CommercialorInstitutionalDevelopment

LEGALDESCRIPTION TractEBͲ3,inSections15and45,Township10South,Range3 East,CityofGonzales,AscensionParish,Louisiana

COMMENTS Thisisthesaleofa43.0acresitelocatedwithintheEdenborne TNDinthesouthwestquadrantofInterstate10andHighway 44withintheCityofGonzales.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 95

Atthetimethattheoriginaldealwasputtogether,therewas noaccesstothesite,butthesellersconstructedaroadway which provides access to this property, as well as their remaininglandswhicharewithinwhatwasoriginallya340.03 acretract. Thissitewaspurchasedforthedevelopmentofanewcampus for River Parishes Community College, which is now underway. The site does include a drainage servitude in its southwest cornerwhichisapartofBayouConway.Thispartofthesiteis notusablefordevelopment,buthasbeenreservedasgreen space.

CONFIRMATION PreviousAppraisalͲS.ParkersonMcEnery,MAI

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 96 ComparableLandSaleNumber6

NicholsonDrive,acrossfromGSRIAvenue,BatonRouge,LA70820

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 97 ComparableLandSaleNumber6

ADDRESS NicholsonDrive,acrossfromGSRIAvenue BatonRouge,Louisiana70820

DATE Thursday,December22,2011

RECORDATION Original434,Bundle12377

PARISH EastBatonRouge

VENDOR Yendalg,LLC

VENDEE SugarcaneProperty,LLC

SALESPRICE $4,200,000.00

TERMS Cash+SellerFinancing(SeeComments)

ZONING RuralandPUD(ZoningChangedAfterSale)

VERIFICATION EastBatonRougeParishClerkofCourt

SITEUNITPRICE $34,042.00PerAcre

SITEDIMENSIONS Slightlyirregularwith1,295.46'onthesouthsideofNicholson Drive,and1,095.4'onthenorthsideofRiverRoad

SITESIZE(ACRES) 123.38acres

HIGHESTANDBESTUSE MultiͲUseDevelopment

LEGALDESCRIPTION Tract B of Chatsworth Plantation (40.013 acres) and an Undesignated83.364acreportionoftheBeverlyLyleEastTract, in Sections 78 and 79, Township 8 South, Range 1 East and Section73,Township8South,Range1West,GreensburgLand District,ParishofEastBatonRouge,Louisiana

COMMENTS This is the sale of a 123.377 acre tract situated between NicholsonDriveandRiverRoad.ThesiteisacrossNicholsonDrive

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 98

fromitsintersectionwithGSRIAvenue,andisjustafewhundred yardsnorthwestoftheL'AubergeCasinoandHotelsite.Thesale waspartiallyownerͲfinanced,withthebuyerpaying$3,600,000 incashandthebalanceof$600,000mortgagedbytheseller.The termsoftheagreementindicatethattheprincipalsummustbe paiddownbyatleast$200,000peryearoverthefirstthreeyears, andthereforepaidinfullbythethreeͲyearanniversaryofthe note.Thebalanceistoaccrueinterestatarateof4.0%inyear one,5.0%inyeartwo,and6.0%inyearthree. The purchaser intends to develop the site with a multiͲuse developmentwhichislikelytoincludeanRVpark,apartments, andpossiblyahotel.Theyarestillworkingoutplansforthesite basedonwhattypeofdemandresultsfromtherecentopening ofthecasino. Thesitewassituatedentirelyinaruralzoningdistrictatthetime of the sale, but most has since been reͲzoned to a PUD to accommodate the proposed development.According to the broker,itwasknownthatthiswasadistinctpossibility,asthe purchasersplanwouldnotnecessarilyhavebeenpermittedin theRuralDistrict.

CONFIRMATION BrokerwhohandledtransactionͲBenSkillmanͲ225Ͳ343Ͳ1313

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 99 ComparableLandSaleNumber7

Highway941,Gonzales,LA70737

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 100 ComparableLandSaleNumber7

NAME VacantLand

ADDRESS Highway941,Gonzales,Louisiana70737

DATE Thursday,October27,2011

RECORDATION InstrumentNumber784444

PARISH Ascension

VENDOR TheEstateofMerrittEvans

VENDEE AscensionParishSchoolBoard

SALESPRICE $1,512,000.00

TERMS CashSale

ZONING C,Conservation(AscensionParishͲAtTimeofSale) SitehassincebeenincorporatedandissituatedinanRͲ15District

FLOODZONE AE

VERIFICATION AscensionParishClerkofCourt

SITEUNITPRICE $24,000.00PerAcre

SITESIZE(SF) 2,744,280sf

SITESIZE(ACRES) 63.0acres

BOUNDINGSTREETS Highway941,Highway44,Interstate10

LEGALDESCRIPTION A certain parcel of ground located in Section 12, Township 10 South,Range3East,AscensionParish,StateofLouisiana

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 101

COMMENTS Thisisa63acretractoflandthatwaspurchasedasaspeculative acquisitionbytheAscensionParishSchoolBoard.Thepropertyis locatedjustoffofHighway44,southofInterstate10,andfronts alongthenorthsideofHighway941. TheDirectorofPlanningandBuilding,Mr.ChadLynch,notedthat there are no immediate plans to develop the site although the propertywaspurchasedforfuturedevelopmentofahighschool. Withseveralnewsubdivisionsinthearea,heanticipatestheneed foranewhighschoolintheneighborhoodsometimeinthenext10 years. Theschoolboardwentaheadandpurchasedthesitenowbeforea singlefamilyresidentialdeveloperacquiredthepropertybecause theylikethecentrallocationofthetract.Thelandisapproximately onehalfmileeastofHighway44.

CONFIRMATION AscensionParishSchoolBoardDirectorofPlanningandBuilding, ChadLynch(225)391Ͳ7303

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 102 ComparableLandSaleNumber8

4801GeneraldeGaulleDrive,NewOrleans,LA70131

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 103 ComparableLandSaleNumber8

NAME VacantLandSale

ADDRESS 4801GeneraldeGaulleDrive,NewOrleans,Louisiana70131

DATE Friday,May09,2003

RECORDATION InstrumentNumbers258223and258222

PARISH Orleans

VENDOR LakewoodCountryClub&FireLake,LLC

VENDEE LakewoodRestorationPartners,LTD

SALESPRICE $6,000,000.00

TERMS Cash

ZONING RSͲ1,SingleFamilyResidential

VERIFICATION OrleansParishClerkofCourt

SITEUNITPRICE $0.89PSF (perSF)

SITEUNITPRICE $38,910.51PerAcre (perAcre)

SITEDIMENSIONS Irregularshapedtractofland

SITESIZE(SF) 6,718,564sf

SITESIZE(ACRES) 154.24acres

HIGHESTAND Highdensityresidentialdevelopment BESTUSE

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 104

LEGAL FourcertainparcelsoflanddesignatedasLotsT,U,Z,andT2situatedin DESCRIPTION Sections17and32,Township13South,Range24Eastandwithinthe FifthMunicipalDistrictoftheCityofNewOrleans,StateofLouisiana

COMMENTS ThisisthesaleoftheLakewoodGolfCoursesituatedinNewOrleans. Thepropertywasacquiredforacompleterenovationandnovaluewas giventoanyinfrastructureorimprovementsasallwereremoved.The course has been completely reͲdesigned / renovated and opened in early2009. Thepropertywasrecentlylistedforsalewithpricingofferedatcloseto $15million,althoughanonymouspartyclosetothelistingindicatedthat therealpricewouldactuallybeclosertothe2003purchaseprice.

CONFIRMATION Previousappraisal–S.ParkersonMcEnery

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 105 ComparableLandSaleNumber9

64490Highway434,NorthofIͲ12,Lacombe,Louisiana70433

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 106 ComparableLandSaleNumber9 AME Highway434ͲFolgersCoffeePlant

ADDRESS 64490Highway434,NorthofIͲ12,Lacombe,Louisiana70433

DATE Monday,February24,2003

RECORDATION 1350880

VENDOR DavidAcquistapace

VENDEE FolgersCoffeeCompany

SALESPRICE $1,850,000.00

ZONING SA,SuburbanAgricultural(reͲzonedtoindustrialpriortosale)

VERIFICATION ClerkofCourt’sOffice,Deedfaxandappraisers’inspection

UNITPRICE $25,440.00peracre

SITESIZE 72.75acres (ACRES)

GPS 30.3119,Ͳ89.9389 COORDINATES

LEGAL AcertainparcelofgroundlocatedinSection8,Township8South,Range DESCRIPTION 13East,St.TammanyParish,Louisiana

COMMENTS ThesitewaspurchasedforthedevelopmentofthenewFolgersCoffee Company Plant situated on Highway 434 north of the Louisiana Heart Hospital.ThesiteislocatedapproximatelytwomilesfromtheInterstate 12interchangewithHighway434.AccordingtoFIRMCommunityPanel No.2252050385C,lastrevisedasofOctober17,1989,thesiteappears tobeissituatedinFloodZonesC.ZoneCisnotaclassifiedfloodhazard area.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 107

At the time of the sale no portion of the site had been mitigated. AccordingtoMr.DavidAcquistapace(Vendor),20%ofthesiterequired mitigation. He was not aware of the exact mitigation costs, thus the appraiserswillassumethemarketcostsof$3,500peracrewouldalsobe required.Thus,thetotalcostsofmitigationforthesitewouldindicatea totalcostof$50,925(14.55acresx$3,500peracre).

CONFIRMATION Vendor–DavidAcquistapace

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 108 ComparableLandSaleNumber10

EnglishTurnParkway,NewOrleans,LA70131

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 109 ComparableLandSaleNumber10

NAME TheArborsofEnglishTurn

ADDRESS EnglishTurnParkway,NewOrleans,Louisiana70131

DATE Monday,January13,2003

RECORDATION InstrumentNumber251229

PARISH Orleans

VENDOR RepresentativesoftheGuminaFamily,etal

VENDEE ArborsofEnglishTurn,LLC

SALESPRICE $2,340,000.00

TERMS CashSale

ZONING RSͲ2&RSͲ1

FLOODZONE B

VERIFICATION OrleansParishCDC,purchaser

SITEUNITPRICE $0.58PSF (perSF)

SITEUNITPRICE $25,374.00PerAcre (perAcre)

SITEDIMENSIONS Various

SITESIZE(SF) 4,017,103sf

SITESIZE(ACRES) 92.22acres

HIGHESTAND Residentialdevelopment BESTUSE

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 110

LEGAL LotsXͲ1ͲAandXͲ2,PortofCouret&StantonPlantations,OrleansParish, DESCRIPTION StateofLouisiana

COMMENTS This is the sale of a 92.22 acre tract of land that was subsequently developed into the English Turn subdivision and golf course. The developmentboastedhigherend,largerlotsthatrangefromhalfacreto acreinsize.Inaddition,therearesometownhomelotsandan18hole golfcoursewithadrivingrange.ThislandislocatedintheOrleansParish sectionoftheWestBankaccessedbyGeneralDeGaulleandWoodland Highway.

CONFIRMATION TheMcEneryCompanydatabaserecords

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 111

CurrentLandListingA

13693RiverRoad,NewOrleans,LA70131

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 112 CurrentLandListingA

MCECOID 25466

ADDRESS 13693 River Road, New Orleans, LA 70131 – Lower Coast Algiers

DATE CurrentListing

RECORDATION CurrentListing–Norecordation

PARISH/COUNTY Orleans

VENDOR StantonPlantationCorp.

VENDEE CurrentListing–nopendingbuyer

SALESPRICE $2,150,000

TERMS/FINANCING CashtoSeller

ZONING RRERuralResidentialEstate

FLOODZONE B

VERIFICATION OrleansParishAssessor'sOffice

SITEUNITPRICE $24,432peracre

SITESIZE 88.00acres/3,833,280SF

LEGALDESCRIPTION AparceloflandsituatedinSection11,Township13South, Range 25 East, being a portion of Stanton Plantation and formerly known as Navy Air Field, City of New Orleans, OrleansParish,StateofLouisiana

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 113

COMMENTS Thislistingrepresentsoneofthelargestcurrentofferingsof vacantlandintheNewOrleansarea.Thesiteislocatednear English Turn, on the West Bank of Orleans Parish in a relativelyrural/residentialarea. Weinterviewedthelistingagent,Ms.CaraRaymond,who confirmed that there has been limited interest in the offeringtodate.Thepropertyhasbeenonthemarketfor lessthanthreemonths.Thesiteiszonedforresidentialuse, andiscurrentlyutilizedasanagriculturalparcel. Thepropertyhasbeeninthesameownershipfordecades.

CONFIRMATION CaraRaymond,ListingAgent–504.267.9405

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 114 CurrentLandOffering&PendingSaleB

EastoverCountryClubFormerGolfCourseandClubHouseSite, EastoverEstates,NewOrleans,LA70128

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 115 CurrentLandOffering&PendingSaleB

ADDRESS EastoverCountryClubFormerGolfCourseandClubHouse Site,EastoverEstates,NewOrleans,LA70128

DATE PendingSale&CurrentOffering/Ongoingnegotiation

RECORDATION Notyetclosed

PARISH/COUNTY Orleans

VENDOR Eastover Country Club, Inc. and/or Eastover Estates Investors,LLC,asrepresentedbyDonaldE.Pate

VENDEE EastoverHomeowner’sAssociation

SALESPRICE $500,000–currentlypendingpriceonapproximately10.49 acresitewithclubͲhouseandpool $2,200,000–discussedpricingonremaining+/Ͳ170acres ofdefunctgolfcourseproperty Totalpotentialpurchasepriceof$2,700,000

TERMS/FINANCING CashtoSeller

ZONING SͲRS,SuburbanSingleFamilyResidentialDistrict

SITEUNITPRICE $14,960peracre

SITESIZE Approximately180.49acresintotal

LEGALDESCRIPTION MultipleparcelsoflandwithinEastoverEstates,CityofNew Orleans,OrleansParish,StateofLouisiana

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 116

COMMENTS In a recent interview with Donald E. Pate, developer of Eastover Estates, we confirmed that the approximately 10.49Ͳacreclubhousesiteispresentlyundercontractfora considerationof$500,000.ThepurchaseristheEastover HomeownerAssociation.Thebalanceofanapproximately 170acrelandareaformerlydevelopedasagolfcourseisalso potentiallygoingtobesoldtotheEastoverHomeowner’s Association. Theland,alongwiththeclubhouse,hasremainedlargely unͲtouchedsinceHurricaneKatrina.

CONFIRMATION PropertyOwner/SellerDonaldE.Pate504.994.6013 Developer–EastoverEstates

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 117 LandComparablesMap–LocalLandSales

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 118 LandComparablesMap–RegionallySourcedLandSales

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 119 LandComparablesAnalysisGrid Sale# Subject 1 2 3 4 5 6 7 8 9 10 A B

Date 6/29/2016 5/4/2014 9/27/2013 4/24/2013 1/11/2013 11/7/2012 12/22/2011 10/27/2011 5/9/2003 2/24/2003 1/13/2003 Current Current

Eastover Michoud& 15100 Lapalco& Highway23at Highway18 Edenborne NicholsonͲ Highway941 4801Gen. 64490Hwy English 13693 Location Golf LakeForest Industrial Westwood MyrtleGrove ͲSt.James Gonzales BatonRouge ͲGonzales deGaulle 434 Turn RiverRoad Course

SalesPrice ͲͲͲ $1,000,000 $1,600,000 $4,400,000 $10,405,118 $2,000,000 $4,200,000 $1,512,000 $6,000,000 $1,850,000 $2,340,000 $2,150,000 $2,700,000

SiteSize(SF) 6,354,968 1,167,844 1,351,667 6,656,839 23,214,866 1,873,080 5,374,433 2,744,280 6,718,694 3,168,990 4,017,103 3,833,280 7,862,144

SiteSize(Acres) 145.89 26.81 31.03 152.82 532.94 43.00 123.38 63.00 154.24 72.75 92.22 88.00 180.49 RͲ1A,RͲ CͲ SA> RSͲ2 Zoning GPD&CͲ2 HͲI 1TH& FP>Industrial Nozoning TND Rural&PUD RSͲ1 RRE SͲRS Conservation Industrial &RSͲ1 MUCD Accessibility/ Good Good Good Good/Riverfont Average Excellent Good Average Good Average Average Average Average RoadFrontage Price/Acre $37,300 $51,563 $28,792 $19,524 $46,512 $34,041 $24,000 $38,900 $25,430 $25,374 $24,432 $14,959

Adjustments

Size Ͳ10.00%Ͳ10.00% 0.00% 10.00%Ͳ10.00% 0.00%Ͳ7.50% 0.00%Ͳ7.50%Ͳ5.00%Ͳ5.00% 5.00%

Zoning 0.00% 0.00% 0.00% 10.00% 0.00% 0.00% 10.00% 10.00% 0.00% 10.00% 10.00% 10.00%

Accessibility 0.00% 0.00%Ͳ5.00% 10.00%Ͳ10.00% 0.00% 10.00% 0.00% 10.00% 10.00% 10.00% 10.00%

Location 0.00%Ͳ15.00% 0.00% 5.00%Ͳ10.00%Ͳ5.00% 5.00%Ͳ15.00% 5.00% 0.00% 10.00% 10.00%

Composite Ͳ10.00%Ͳ25.00%Ͳ5.00% 35.00%Ͳ30.00%Ͳ5.00% 17.50%Ͳ5.00% 7.50% 15.00% 25.00% 35.00% Adjustment AdjustedPrice $33,570 $38,672 $27,352 $26,357 $32,558 $32,339 $28,200 $36,955 $27,337 $29,180 $30,540 $20,195 perAcre

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 120

DISCUSSIONOFCOMPARABLESALEADJUSTMENTS Thecomparablelandsalesincludedintheanalysisofthe“MainSite”representthemostreliable comparabledatasetonwhichtobaseavalueconclusionforthisportionofthesubjecttract.As outlinedwithinthisappraisal,thesubjectisaveryuniqueparceloflandandcarefulselectionof likeͲkind speculative development tracts that have sold or are currently offered for sale is necessaryinthiscase. Duetotherelativelylargersizeofthe“MainSite”,ascoupledwiththeextremescarcityoftruly likeͲkindsitesintheNewOrleansmarketplace,ourdatasetiscomprisedoflargerlandtradesfrom bothwithinandalsooutsideofOrleansParish.Ourdatasetiscomprisedoften(10)closedsales, onecurrentlistingandalsoapending/potentiallyofferedtractlocatedwithintheimmediate subject neighborhood (Eastover).In keeping with our highest and best use conclusion as a speculativedevelopmenttractwiththepotentialforeventualreͲpositioningtowardindustrialuse, wehaveincludedthefollowingclassificationsoflandsaleswithinthisanalysis: 1. Larger,industriallyzonedlandsales 2. Speculativelandtradeswithmixedzoninginplace 3. PermitteddevelopmenttractspurchasedwithlongͲtermspeculativeintentions 4. Adefunctgolfcourse 5. Anoldersaleof72.75acresinSt.TammanyParishpurchasedfordevelopmentofaFolger’s CoffeePlant–asimilarpossibleapplicationofthe“MainSite”. 6. Residentiallyzonedtractspurchasedwithspeculativedevelopmentplansinmind 7. Institutionallyfundedacquisitions(educationalfacilities). Globally,thepricingdemonstratedbythesesalesspeakstothetemperamentandtolerancefor riskexhibitedbylandinvestors.Landinvestorsaretypicallypatient,wellcapitalizedandshrewd. Inthisregard,weexpectthepurchaserofthesubject’s“MainSite”tomeeteachofthesecriteria. Giventheconsistencyinthemotivationsoftherespectivepurchasersofeachoftheindicators includedinthisdatatotheexpectedapproachofanyprudentpurchaserofthesubject,thepricing rangesetbytheseindicatorsprovidesareliableandtightlybracketedpotentialrangeofvalue. Theunadjustedrangesetbytheindicatorsshowsalowendof$14,959peracreforaresidentially zonedtractinEastover(pending)toahighendof$51,563peracreforamostlydevelopedtract inadenselypopulatedareaoftheWestBankofJeffersonParish.Themeanoftheunadjusted rangesetbyalltwelveindicatorsis$30,902peracre.Nineofthetwelveindicatorsfallwithin approximately $20,000 to $40,000 per acre, and six of the twelve indicators fall between approximately$20,000and$30,000peracre. Theaveragesizeofalltwelveindicatorsis130.06acres,andthedatasetrepresentsanaggregate totalof1,560.68acresinsurveyedlandsaleactivity.Theaveragegrosssalepriceofthetwelve indicatorsis$3,346,427.FiveoftheindicatorsarelocatedwithinOrleansParish,sevenarelocated withintheimmediatemetropolitanarea,andalltwelvearelocatedwithinSoutheastLouisianain similarlysituatedimmediatelysuburbanmarkets.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 121 Whilethesalesprovideafairlytightrangeofindicatorsfromwhichtoconcludeapointofvalue forthesubjectproperty,thesalesdorequireadjustmentforcertaincriteria.Accordingly,find below a discussion of the various reasons for adjustment as well as explanation of those adjustmentsultimatelyapplied. ŽŶĚŝƚŝŽŶƐŽĨ^ĂůĞ͗ Typically,intheevaluationofcomparablesales,conditionsofsaleisacriteriathatcanrequire adjustment.Inthecaseoftheindicatorsutilizedinthisanalysis,noonetransactionreallycallsfor adjustmentduetoatypicallymotivatedsellerand/buyermotivations.Meaning,thatnoneofthe pricesrepresentedbytheseindicatorspresentsasignificantdeviationfrommarketvalueandas such,noadjustmentforthisconsiderationisnecessaryinthiscase. DĂƌŬĞƚŽŶĚŝƚŝŽŶƐ͗ Adjustmentformarketconditionspresentsaninterestingquestionatthisjuncture.Sevenofthe tenclosedsales,closedwithinthepastfiveyears.Asdevelopmenttractsareconcerned,pricing hasgenerallyremainedfairlystagnantonparcelscomparabletothesubject–especiallythosethat fallintothemorehighlyspeculativecategory.Thus,theseseventransactionsdonotdemonstrate pricing comparisons that warrant adjustment.The listing and the pending indicator are both currentandclearlyrequirenoadjustment.Threeoftheclosedsalesareverydated,buttruly comparableinlocation,scopeandsizetothesubjectmaintract.Ofnoteisthestagnantpricing indicatedbytherecentlistingofSale#8whichclosedin2003.Furthermore,intheselectionof these comparables we have also considered the fact that pricing in the New Orleans East marketplaceisstillyettoreturntopreͲKatrinalevels.Infact,thesethreedatedsalesdemonstrate pricinggenerallyalignedwiththemeanandmedianoftheunadjusteddatasetandwellaligned withrecentpricingachievedinthesamemarkets.Duetotheconsistencyinthepricingoffered bythethreemostdatedsalestothatofthebalanceofthedataset,weseenojustificationforthe applicationofmarketconditionadjustmentstoanyofthesales. ^ŝǌĞŝƐĐƵƐƐŝŽŶ͗ Thetwelveindicatorsprovideaneatlybracketedsizerangewithalowof26.81acres,ahighof 532.94acresandameanof130.06acres.Ofnoteisthatthemeanofthetractsizesofthetwelve indicators is within 10% of the net usable acre call on the subject property at 145.89 acres. Speaking to net usable acre calculations, all nonͲusable areas have been removed from the comparableswherenecessarysoastocreatealevelcomparisontothevaluationofthesubject’s estimatednetusableareacall.Regardingsize,thesalescomparebeautifullytothesubjectsite. Noonesizeadjustmentexceeds10%,andoverallthelevelofadjustmentforsizeisgenerally modest.Theadjustmentsaccountfortheimpactofeconomiesofscale,aforcereadilyapparent inthepricingoflargerlandacquisitions.Naturally,largertractsultimatelycallformoresignificant overallpricepotential;buttheimpactonunitcostisusuallyreadilyapparentinthecomparison ofcomparabletractsales.Thus,thosetractsthatmeasureasmallerareatothesubjecthavebeen adjusteddownwardtoaccountfortheprobabilityofhigherperunitcost;whereasthelargersales havebeenadjustedupwardtoaccountfortheinverse.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 122 Threeofthesalesrequirenoadjustmentforsize,andfiveofthesalesrequiredlessthan10% adjustmentforsize. ŽŶŝŶŐŝƐĐƵƐƐŝŽŶ͗ The subject is favorably zoned with broad potential for land use provisions and ultimate developmentpossibilities.Thezoninginplacecompareswelltoaheavycommercialorindustrial zoning classification.Those comparables with similar zoning to heavy commercial, mixed use and/orindustrialdonotrequireadjustmentinthisanalysis.Thecomparablesthatareeithernot zoned,residentiallyzonedorzonedforconservationdorequireupwardadjustmenttoaccount for the greater flexibility in land uses afforded by the subject tract.That being said, our adjustmentsforzoningaremollifiedtowardloweroveralladjustmentforthefollowingreasons: 1. Acomparisonofthepricingachievedbythecommercially/industriallyzonedtractsshows onlymodestlyhigherpricingthanthepricingindicatedbytheresidential/conservation zonedtracts. 2. ThesubjecttractisoverͲpermitted–meaningmostoftheallowableusesarenotfinancially feasible,andlikelywillnotbeforsometime. Sales#4,#7,#8,#10,AandBallrequireupwardadjustmentforzoning. ĐĐĞƐƐŝďŝůŝƚǇŝƐĐƵƐƐŝŽŶ͗ In order to develop a method for adjustment to the sales for considerations related to road frontageandgeneralaccessibility,wehaverankedthesubjectsiteagainstthecomparablesas eitheraverage,goodorexcellentwithrespecttoaccessibilityandroadfrontagerelateddetail. Thisrankingincludeslocationrelatedcharacteristicslikeproximitytotheinterstateandlinkages inplacethatprovideaccessandenhancementofthepotentialfunctionofanyonetract.With due weighting for these considerations, we rank the subject as “good” – given mainly the interstateaccessanddualpointsofaccessalongLakeForestandMichoud. Only one sale ranks superior to the subject in this category: Sale #5, the Edenborn Tract in Gonzales.This sale sold with significant infrastructure delivered to the site and also with immediateroadaccesstoHighway44atitsinterchangewithInterstate12.Thus,thissalehas been adjusted downward for its superior position.Sale #3 has direct frontage along the Mississippi River, which as a competitive industrial tract is a superior characteristic when comparedtothesubject.Whenthisisweighedagainstthelackofinterstateaccess,thesaleonly requiresmodestdownwardadjustmentforaccessibilityrelatedconsiderations.Sixofthetwelve indicatorsrequireupwardadjustmentfortheirrespectiveclassificationas“average”versusthe subject’s“good”classification.Theremainingsalesarealsoclassifiedas“good”andrequireno adjustment.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 123 >ŽĐĂƚŝŽŶŝƐĐƵƐƐŝŽŶ͗ Forthemostpart,wehaveincludedcomparablesalesthatsharesimilarlocationrelatedsitusto thatofthesubject–proximitytotheinterstateisamajorfactor.Ouradjustmentsforaccessibility /roadfrontageadjustaccordinglyforthisdisparitywherepresent.Ouradjustmentsforlocation are really more related to surrounding land use and immediately local demand drivers for a developmenttract.Inthisregard,wehaveaccountedforthefactthattheimmediatesubject neighborhoodhassignificantpocketsofdesolatelandscapewithmarginallysuccessfulrealestate developmentsinterspersedbetweenopenpatchesofmostlywetandlowͲlyingland.Thus,such tractsasSale#2,whichislocatedattheintersectionoftwomajorthoroughfaresinafairlydensely populatedneighborhood,requiredownwardadjustmentforlocation.Thissalerepresentspricing paidforaspeculative,mixedusetractinamarketthatissimplydeeperandmoredevelopedthan theNewOrleansEastneighborhoodinwhichthesubjectissituated. ThesameisthecasewithSale#8,whichisalargeacreagesaleinadenselypopulatedareaofthe WestBankofOrleansParish(Lakewood).Experiencedlandinvestorswillassignadiscounttothe subjectlocationinNewOrleansEastforamyriadofreasons:floodrelatedconcerns,thestillunͲ recoveredstateofthemarket,asignificantoverͲsupplyofavailableland,andlastly,generally pessimisticoutlookforanymarkedchangeintrending.Ifthesubjectsitewaslocatedintheheart ofNewOrleansEastnearsayReadandLakeForest,thepricepotentialwouldbemuchhigherthan thesubject’slocationasa“bookͲend”developmenttract.Essentially,thesubjectlocationisthe laststopbeforethelandscapeturnstowideopenmarshlandandwildliferefugeacreages. Forthesereasons,someofthesalesrequiredownwardadjustmentforlocation.Conversely,we dostillviewthesubjectlocationassuperiortosomeofthemoresuburbanlocationsrepresented byanumberofthecomparables.Thesecomparablesrequiremodestlevelsofupwardadjustment toaccountfortherelativelymoreurbanlocationofthesubjectasadevelopmenttract.Our locationadjustmentsalsoaccountforthelimitsonuseplacedonasiteliketheEastovertract whichwillultimatelybelimitedinusegivenitsplacementwithinanalreadydevelopedresidential subdivision.WiththezoningpreͲrequisitemet,thesubjectsiteisclearlyfarmoresuitableforan alternateusetowardindustrial,wherehigherpricingmaybeachieved. ^ŝƚĞ/ŵƉƌŽǀĞŵĞŶƚƐ͗ Inourfinalreconciliationofmarketvalueforthesubjecttract,wehaveconsideredtheareasof the subject site that remaining lowͲlying and unͲdeveloped; but we have also considered the significantareaswithextensivepavingandsiteimprovementinplace.Weviewthecomparison ofthetwotocreateanetzerotothevalueoftheproperty–meaningthatwhencomparedtothe comparables,someofwhichhaveextensiveinfrastructurewhileothersstillrequiresignificantsite improvement,thenegativeimpactassociatedwiththelowͲlyingareasisultimatelyneutralizedby theextensiveareasofpavingandsiteimprovementinplace.Forthesereasonsstated,weseeno measurable justification for the application of adjustment to the sales to account for site improvementrelatedconsiderations.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 124 FinalReconciliationofValue–“TheMainSite”: Following the application of previous explained adjustments, the adjusted range represents a muchtighterrangeofvalue.Theadjustedrangesuggestsarangewithalowof$20,195peracre, ahighendof$38,672peracre,ameanof$30,271peracre,amedianof$29,860peracreanda standarddeviationof$5,002peracre. Inanalyzingtheadjusteddataset,thetwobestsales(orthesalesthatrequiretheleastadjustment) areSales#1and#3,whichindicaterespectiveadjustedpricingof$33,570peracreand$27,352per acre.Bothofthesesalesclosedwithinthepast40monthsandbothwereacquiredforindustrially orienteduses.AlsoofnoteisSale#6isamoredatedsaleofadevelopmenttractinasimilarly situatedsuburbanareaofBatonRouge.Thissalesuggestsanadjustedindicatorof$32,558peracre withonly5%ofrequiredcompositeadjustment.

These three comparables, as paired with the mean of the adjusted range at $30,271 per acre, providestrongsupportforavalueconclusionat$30,000peracreforthesubject’smainsite.In fact,nearlytheentireadjustedrangeprovidesconvincingevidenceforavalueconclusionat$30,000 peracre–especiallywhenPendingSaleBisexcludedfromthedataset.

Whenthisoutlierisremoved,alongwiththehighsideindicatorsetbySale#2,theadjusteddataset presentsarangewithalowof$26,643peracreandahighof$36,955peracre–withnineindicators thatfallbetweenapproximately$25,000and$35,000peracre.Withprimaryweightassignedtothe mostrecentsales,requiringtheleastoveralladjustment,wereconciletoafinalopinionofvalueat $30,000 per net usable acre. This value conclusion is well supported by all of the preceding discourseandnearlydirectlyalignedwiththemeanofboththeadjustedandunadjustedrangesset bythecomparabledataset.

Aswasaddressedwithinthe>ĞƚƚĞƌŽĨdƌĂŶƐŵŝƚƚĂů,thisopinionofmarketvalueat$30,000peracre isan“ASIFVacant”valueconclusion,anddeductionofthedemolitionestimatefromthisvalue conclusionisnecessarytoreportanASISMarketValueforthesubject’s“MainSite”. Inadditiontothisfigure,wehavealsoaccountedforthepotentialcostimpactassociatedwiththe grossbuildingarearelieduponinthedemolitionestimate,aswellasanadditional3%project management fee paid to the party responsible for managing the bidding, engagement and completionofthedemolitionwork.Thisisoverandaboveinternalprojectmanagementcharges withinthedemolitionquoteitself.Themanagementofthedemolitionprocesswillrequiretime andexpertiseandsomepartywillbeduecompensationaccordingly.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 125 Thus,ourASISMarketValueforthe“MainSite”iscalculatedasfollows: “MainSite”NetUsableAcreCountat145.89x$30,000peracre = $4,376,700 LessDemolitionCostEstimate(seeattachedaddenda) = ($1,311,903) LessDemolitionCostImpactAdjustment(SeeReportPage7) = ($21,277) LessAdditionalProjectManagementFeeat3% = ($39,357) ASISMarketValue= $3,004,163 Roundedto: $3,000,000 INDICATIONOFMARKETVALUEVIALAND/SITEVALUATION–“MainSite”: $3,000,000

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 126

“PARCEL1”LAND/SITEVALUATION Includedwithinthefollowingpagesisthecomparabledatacomprisingthemarketdataonwhich wehavebasedthevaluationof“Parcel1”asdepictedinthebelowsamplephotos:

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 127 ComparableLandSaleNumber1

RivetBoulevardatLiveOakBoulevard–Multipleparcels,Waggaman,LA70094

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 128 ComparableLandSaleNumber1 MCECOID 23188

ADDRESS RivetBoulevardatLiveOakBoulevard–Multipleparcels, Waggaman,LA70094

DATE October28,2014

RECORDATION InstrumentNumber11445420

PARISH/COUNTY Jefferson

VENDOR CapitalOneBank,NationalAssociation

VENDEE CoastBuilders,LLCasrepresentedbyLarryKornman

SALESPRICE $250,000

TERMS/FINANCING Conventional

ZONING SͲ1&CͲ2

FLOODZONE AE

VERIFICATION JeffersonParishClerkofCourt

SITEUNITPRICE $2,926peracre

SITESIZE 85.43acres/3,721,330SF

LEGALDESCRIPTION Acertainparcelofland containing13.37acres, beingLots 201Ͳ228,ofSquare3,LiveOakPlantationEstates,Addition3 previouslyaportionoftractDͲ2,oftheLiveOakPlantation, JeffersonParish,StateofLouisianaAcertainparcelofland containing59.77acres,beingLots111Ͳ200,ofSquare3,Live Oak Plantation Estates, Addition 3, apportion of previous tractUͲ2,oftheLiveOakPlantation,JeffersonParish,State of Louisiana Parcel A, containing 6.0059 acres, Live Oak PlantationEstates,JeffersonParish,StateofLouisianaParcel

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 129

B, containing 6.269 acres, Live Oak Plantation Estates, JeffersonParish,StateofLouisiana

COMMENTS ThisisanREOsaleofan84.43acretractlocatedonthenorth sideofLiveOakBoulevardandbisectedbyRivetBoulevard. Thepropertyconsistsoffourtracts:a6.01acrecommercial parcel, a 6.28 acre commercial parcel, a 59.77 acre residentialparcel,anda13.37acreresidentialparcel.The commercial and residential sections were marketed separately.Thecommercialparcelswereoriginallylistedfor $630,000 ($51,261 per acre) before being decreased to $140,048 ($11,395 per acre).The residential section was originally listed for $490,000 ($6,699 per acre).After approximately7monthsonthemarket,bothparcelswere placedundercontractfor$250,000($2,926peracre). The purchaser was actually the developer from which the land had originally been repossessed.The listing agent indicatedthattheyhadto'beg'thedevelopertopurchase the land back.The purchaser has no immediate plans to develop the site and intends to hold until development becomesmoreeconomicallyviable.

CONFIRMATION ListingAgent,BillNeitzer,(985)246Ͳ1940

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 130 ComparableLandSaleNumber2

17944RiverRoad,Montz,Louisiana70068

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 131 ComparableLandSaleNumber2

ADDRESS 17944RiverRoad,Montz,Louisiana70068

DATE January21,2014

RECORDATION Book797Page546

PARISH St.Charles

VENDOR CarolynBadeaux

VENDEE TerryPerrilloux

SALESPRICE $52,000.00

TERMS CashSale

ZONING RͲ1AMandRͲ1B,botharesinglefamilyresidential

FLOODZONE X

VERIFICATION St.CharlesParishAssessor

SITE UNIT PRICE (perAcre) $6,311PerAcre

SITEDIMENSIONS 73.8'alongRiverRoadbyadepthof7,334'

SITESIZE(SF) 358,934sf

SITESIZE(ACRES) 8.24acres

BOUNDING STREETS RiverRoadandThoroughbredAvenue

LEGAL DESCRIPTION AtractoflandinWard6measuring1/2arpentsalongthefrontby40 arpentsindepth,St.CharlesParish,Louisiana

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 132

COMMENTS Thisisaverydeeptractofpartiallywoodedlandlocatedalongthenorth sideofRiverRoad.Thepropertyisaccessedvia73.8'offrontagealong RiverRoad,buthadadepthof7,334'.Thesitedonenothavea73.8' widththeentiredepthofthetract,ratherthesiteisshapedlikethestate ofOklahoma,andthepanhandleisthemeanofingressandegress. Thesiteispartiallywooded,butalsototallyclearinsomeareas,andthe previousownerusedandapproximately115'x375'areaforagarden. Thesiteiszonedforresidentialuseandissurroundedbysinglefamily residentialhomes. Thelistingagentconfirmedthatthebuyeracquiredthepropertytoplant andharvestfruittrees. Thepropertysoldfor$52,000afterbeinglistedforfourmonthsatalist priceof$80,000.

CONFIRMATION ListingAgent,Ms.MaryStrickland(985)651Ͳ6681

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 133 ComparableLandSaleNumber3

10639WillowDrive,NewOrleans,LA70131

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 134 ComparableLandSaleNumber3

NAME VacantLand

ADDRESS 10639WillowDrive,NewOrleans,Louisiana70131

DATE Monday,November25,2013

RECORDATION NA#2013Ͳ45334

PARISH Orleans

VENDOR PaulAnthonyandPaulKarbin,Sr.

VENDEE RobbieJeannePounds

SALESPRICE $110,000.00

TERMS CashSale

ZONING RSͲ1,SingleFamilyResidential

FLOODZONE AE

VERIFICATION OrleansParishClerkofCourt

SITEUNITPRICE $11,156.19PerAcre (perAcre)

SITEDIMENSIONS 207.3'x2,080'x

SITESIZE(SF) 429,502sf

SITESIZE(ACRES) 9.86acres

LEGAL FarmNo.BͲ13,FifthDistrict,OrleansParish,Louisiana DESCRIPTION

COMMENTS Thissaleincludeda9.86acreparcelofwoodedacreage.Thelistingagent wasunsureofwetlandsbutwedidconfirmthesitetobeinFloodZone

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 135

AE.Thepropertyistotallywoodedwiththeexceptionofaclearingatthe frontdriveoftheproperty.Thepropertywaslistedfor$139,000when itsoldfor$110,000,andhadbeenontheoverayearandahalf.The propertywasacquiredforconstructionofasinglefamilyhome.

CONFIRMATION ListingAgent,Ms.JaneHicks(504)439Ͳ1601

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 136 ComparableLandSaleNumber4

LafitteLaroseHighway,Marrero,Louisiana70072

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 137 ComparableLandSaleNumber4

ADDRESS LafitteLaroseHighway,Marrero,Louisiana70072

DATE December7,2012

RECORDATION InstrumentNumber11257765

PARISH Jefferson

VENDOR TheRomanCatholicChurchoftheArchdioceseofNewOrleans

VENDEE DavidandAnnaJouandot

SALESPRICE $192,610.00

TERMS CashSale

ZONING RͲ1A,SingleFamilyResidentialDistrict

VERIFICATION JeffersonParishClerkofCourt

SITEUNITPRICE(perAcre) $8,277.00PerAcre

SITESIZE(SF) 1,013,554sf

SITESIZE(ACRES) 23.27acres

BOUNDINGSTREETS JustnorthofDestrehanAvenue

LEGALDESCRIPTION LowerEstellePlantation,Section85,Township14South,Range 23 East, Southeastern District of Louisiana, Jefferson Parish, StateofLouisiana

COMMENTS The 23.268 acre cleared site is located just north of the DestrehanAvenueintersectionandhada17daybidperiodthat ended November 28, 2012.We confirmed with the agent handlingthebid,Mr.JohnGilbert,thattheyreceivedtwobids forthesite.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 138

Onebidwasforthefullofferingpriceof$295,000,or$12,826 peracretobeimprovedwithachurch.Henotedthattheoffer was“flaky”andthedealfellthrough. Theotherofferwasforapproximately$177,000,or$7,696per acre.Thelowerofferwasmadebythevendeetouseasasingle familyhomesite.Mr.GilbertnotedthathereͲapproachedthe lowbidderaboutuppinghisbidandtheyagreedonanallcash salespriceof$196,210,or$8,278peracre.

CONFIRMATION ListingAgent,Mr.JohnGilbert(912)547Ͳ4464

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 139 ComparableLandSaleNumber5

660MagnoliaRidgeRoad,Boutte,Louisiana70039

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 140 ComparableLandSaleNumber5

ADDRESS 660MagnoliaRidgeRoad,Boutte,Louisiana70039

DATE January12,2012

RECORDATION InstrumentNumber379538

PARISH St.Charles

VENDOR PostStreet,LLC

VENDEE MelissaDutreix&HarrisMatherneIII

SALESPRICE $108,000.00

TERMS Conveyance

ZONING OL,OpenLandDistrict

VERIFICATION St.CharlesClerkofCourt

SITEUNITPRICE $6,125.92PerAcre

SITESIZE(ACRES) 17.63acres

LEGALDESCRIPTION A certain parcel of land, Township 14 South, Range 21 East, Magnolia Meadows,ParishofSt.Charles,StateofLouisiana.

COMMENTS Thispropertyisa17.63acretractoflandsituatedalongMagnoliaRidge RoadinaruralsettingofSt.CharlesParish.Thesiteisirregularshapedand fronts 546 along Magnolia Ridge Road. According to the listing, the propertyhadbeenlistedforsalesinceJuly2009andwaspreviouslybeing marketedat$150,000,or$8,508.22peracre.

CONFRIMATION: ListingAgent

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 141 ComparableLandSaleNumber6

Anapproximately177.80acreparceloflandlocatedbetweenMichoudandBayouSauvage NewOrleans,LA70129–“Tract100”

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 142 ComparableLandSaleNumber6

MCECOID 25468

ADDRESS Anapproximately177.80acreparceloflandlocated betweenMichoudandBayouSavage NewOrleans,LA70129–“Tract100”

DATE November15,2011

RECORDATION NotarialArchiveNumber2011Ͳ42400

PARISH/COUNTY Orleans

VENDOR Little Pine Island Limited Partnership, A Partnership in Commendam

VENDEE OrleansLeveeDistrict

SALESPRICE $800,000

TERMS/FINANCING CashSale

ZONING GPDGeneralPlannedDistrict

FLOODZONE A1

VERIFICATION OrleansParishNotarialArchives

SITEUNITPRICE $4,499peracre

SITESIZE 177.80acres/7,744,968SF

LEGALDESCRIPTION Tract 100, Section 1, Township 11 South, Range 13 East, OrleansParish,StateofLouisiana

COMMENTS The property consists of mainly lowͲlying land and some marsh.Thepropertywasacquiredforborrowpituserelated toleveeconstructioninNewOrleansEast.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 143

Thisisasaletoagovernmentagency,whichmayattemptto reflectmarketvalue;butcanalsobearelementsofataking acquisitionwhichsometimesresultsinaninflatedindication ofvalue.

CONFIRMATION Orleans Notarial Archives and Conversation with RepresentativeoftheSeller,Mr.JohnJ.Cummings,III

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 144 ComparableLandListingA

Subject

EastsideofMichoudBoulevard,NewOrleans,LA70129

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 145 ComparableLandListingA MCECOID 25464

ADDRESS EastsideofMichoudBoulevard,NewOrleans,LA70129

DATE Currentlisting

PARISH/COUNTY Orleans

VENDOR The Roman Catholic Church of the Archdiocese of New Orleans

VENDEECurrentlisting

SALESPRICE $100,000

TERMS/FINANCING CashtoSeller

ZONING SͲRDSuburbanTwoͲFamilyResidential

FLOODZONE A1

VERIFICATION OrleansParishNotarialArchives

SITEUNITPRICE $10,000peracre

SITESIZE 10.00acres/435,600SF

LEGALDESCRIPTION Lot38ͲA,ThirdDistrictoftheCityofNewOrleans,Orleans Parish,StateofLouisiana

COMMENTS The listing broker, Richard Juge confirmed that there has beenlimitedtonointerestinthisoffering.ThelandislowͲ lying wetlands and requires significant fill.According to LACDB, the property has been listed for sale for multiple years.

CONFIRMATION ListingBrokerMr.RichardJuge(504)838Ͳ0001

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 146 LandComparablesMap–Parcel1

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 147 LandComparablesAnalysisGrid–Parcel1 Sale# Subject 1 2 3 4 5 6 ListingA Date 5/4/2014 1/21/2014 11/25/2013 12/7/2012 1/12/2012 11/15/2011 Current

Westsideof RivetandLive 17944River 10639Willow LafitteLarose 660Magnolia Michoud& Eastsideof Location Michoud OakBoulevard RoadͲMontz Drive Highway RidgeRoad BayouSavage Michoud SalesPrice ͲͲͲ $250,000 $52,000 $110,000 $192,610 $108,000 $800,000 $100,000 SiteSize(SF) 2,846,855 3,721,331 358,934 429,502 1,013,641 767,963 7,744,968 435,600 SiteSize(Acres) 65.35 85.43 8.24 9.86 23.27 17.63 177.80 10.00 Zoning GPD SͲ1andCͲ2 RͲ1MandRͲ1B RSͲ1 RͲ1A OL GPD SͲRD Accessibility/RoadFrontage Average Average Average Average Average Average Average Average Price/Acre $2,926 $6,311 $11,156 $8,277 $6,126 $4,499 $10,000 ListingAdjustment 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Ͳ25.00% AdjustedPriceperAcre $2,926 $6,311 $11,156 $8,277 $6,126 $4,499 $7,500 Adjustments Size 0.00%Ͳ15.00%Ͳ15.00%Ͳ10.00%Ͳ10.00% 10.00%Ͳ15.00% Zoning 0.00% 5.00% 5.00% 5.00% 5.00% 0.00% 5.00% Accessibility 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Location 20.00% 0.00%Ͳ15.00% 0.00% 0.00% 0.00% 0.00% CompositeAdjustment 20.00%Ͳ10.00%Ͳ25.00%Ͳ5.00%Ͳ5.00% 10.00%Ͳ10.00% AdjustedPriceperAcre $3,512 $5,680 $8,367 $7,863 $5,820 $4,949 $6,750 WƌŝĐĞƉĞƌĐƌĞ ĚũƵƐƚĞĚ hŶĂĚũƵƐƚĞĚ DĞĂŶ Ψϲ͕ϭϯϰ Ψϳ͕ϬϰϮ DĞĚŝĂŶ Ψϱ͕ϴϮϬ Ψϲ͕ϯϭϭ ^ƚ͘Ğǀ͘ Ψϭ͕ϲϴϬ ΨϮ͕ϵϰϯ

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 148

DISCUSSIONOFCOMPARABLESALEADJUSTMENTS The comparable land sales included in the analysis of “Parcel 1” represent the most reliable comparabledatasetonwhichtobaseavalueconclusionforthisportionofthesubjecttract.As previously discussed, “Parcel 1” is a lowͲlying and poorly located parcel of land with limited prospects for near term development. Accordingly, we have selected comparable sales which possesssimilarlimitationsoneventuallanduse. Ourdatasetiscomprisedofsix(6)closedsalesandonecurrentlistingacrossMichoudfromthe subject.Ofnoteinthedatasetisa2011saleofanapproximately177.80acretractsoldbyJohn CummingstotheOrleansLeveeBoardforapriceof$4,499peracre.Thissale,alongwiththe mostrecentsale(Sale#1)whichclosedat$2,926peracrearethetwomostcomparablesalesin ourdataset. Theindicatorsrelieduponinthisanalysisrepresentpricingpaidforsiteslimitedtospeculative landholdsand/ormodestresidentialapplications–whichmatchesthehighestandbestuseofthe subject’s“Parcel1”site.Theunadjustedrangesetbytheindicatorsshowsalowendof$2,926 peracreforamixedzoningtractintheWaggamanareatoahighendof$11,156peracrefora higheranddryerresidentialparcellocatedontheWestBankofOrleansParish.Themeanofthe unadjustedrangesetbyallsevenindicatorsis$7,042peracre–afigurewhichisinflatedbythe inclusionofSale#3andalsoListingA(acrossthestreetfromthesubject).OfnoteregardingListing Aisthatthelistingagentconfirmedthatthepriceislikelyabovewhatisachievable.Accordingly, ListingArequiressignificantdownwardadjustmentforitsunͲsoldstatus.Sale#1isthebestsale in the data set.It is the most recent sale; it is very similar to “Parcel 1” in size and also in topography(lowͲlyingland). Whilethesalesprovideafairlytightrangeofindicatorsfromwhichtoconcludeapointofvalue for the subject property, the sales do require adjustment for certain criteria.Find below a discussion of the various reasons for adjustment as well as explanation of those adjustments ultimatelyapplied. ŽŶĚŝƚŝŽŶƐŽĨ^ĂůĞ͗ Typically,intheevaluationofcomparablesales,conditionsofsaleisacriteriathatcanrequire adjustment.Inthecaseoftheindicatorsutilizedinthisanalysis,noonetransactionreallycallsfor adjustmentduetoatypicallymotivatedsellerand/buyermotivations.Meaning,thatnoneofthe pricesrepresentedbytheseindicatorspresentsasignificantdeviationfrommarketvalueandas such,noadjustmentforthisconsiderationisnecessaryinthiscase. >ŝƐƚŝŶŐĚũƵƐƚŵĞŶƚ͗ Aspreviouslynoted,ListingAismarketedatapriceabovewhatislikelyachievable,asadmitted bythelistingbroker;andthislistingrequiresdownwardadjustmentforthisconsideration.

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 149 DĂƌŬĞƚŽŶĚŝƚŝŽŶƐ͗ Adjustmentformarketconditionspresentsaninterestingquestionatthisjuncture.Allsixofthe salesclosedwithinthepastfiveyears.AsfaraslowͲgradelandtractsareconcerned,pricinghas generallyremainedfairlystagnantonparcelscomparabletothesubject.Thus,thesixclosedsales donotdemonstratepricingcomparisonsthatwarrantadjustment. ^ŝǌĞŝƐĐƵƐƐŝŽŶ͗ Thesevenindicatorsprovideaneatlybracketedsizerangewithalowof8.24acres,ahighof 177.80acresandameanof47.46acres.Regardingsize,thesalescomparegenerallywelltothe subjectsite.Noonesizeadjustmentexceeds15%,andoverallthelevelofadjustmentforsizeis generallymodest.Theadjustmentsaccountfortheimpactofeconomiesofscale,aforcereadily apparentinthepricingoflargerlandacquisitions.Naturally,largertractsultimatelycallformore significantoverallpricepotential;buttheimpactonunitcostisusuallyreadilyapparentinthe comparison ofcomparabletractsales.Thus,thosetracts thatmeasureasmaller areatothe subject have been adjusted downward to account for the probability of higher per unit cost; whereasthelargersaleshavebeenadjustedupwardtoaccountfortheinverse. Sale #1 requires no adjustment for size, and the remaining sales require positive or negative adjustmentamounttoeither10or15%inadjustment. ŽŶŝŶŐŝƐĐƵƐƐŝŽŶ͗ The subject is favorably zoned with broad potential for land use provisions and ultimate developmentpossibilities.Thezoninginplacecompareswelltoaheavycommercialorindustrial zoning classification.Those comparables with similar zoning to heavy commercial, mixed use and/orindustrialdonotrequireadjustmentinthisanalysis.Thecomparablesthatareeithernot zoned,residentiallyzonedorzonedforconservationdorequireupwardadjustmenttoaccount for the greater flexibility in land uses afforded by the subject tract.That being said, our adjustmentsforzoningaremollifiedtowardloweroveralladjustmentforthefollowingreasons: 1. Acomparisonofthepricingachievedbythecommercially/industriallyzonedtractsshows onlymodestlyhigherpricingthanthepricingindicatedbytheresidential/conservation zonedtracts. 2. ThesubjecttractisoverͲpermitted–meaningmostoftheallowableusesarenotfinancially feasible,andmayneverbecomefeasibleatthislocation. Sales#2,#3,#4,#5andListingAallrequireupwardadjustmentforzoning. ĐĐĞƐƐŝďŝůŝƚǇŝƐĐƵƐƐŝŽŶ͗ In order to develop a method for adjustment to the sales for considerations related to road frontageandgeneralaccessibility,wehaverankedthesubjectsiteagainstthecomparablesas eitheraverage,goodorexcellentwithrespecttoaccessibilityandroadfrontagerelateddetail. Thisrankingincludeslocationrelatedcharacteristicslikeproximitytotheinterstateandlinkages

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 150 inplacethatprovideaccessandenhancementofthepotentialfunctionofanyonetract.With dueweightingfortheseconsiderations,werankthesubjectas“average”–giventhemainlythe longerdistanceofthistracttotheinterstateaccessintheneighborhood. All six of the sales and the current listing compare equally to the subject with respect to accessibilityandnooneindicatorrequiresadjustmentforthisconsideration. >ŽĐĂƚŝŽŶŝƐĐƵƐƐŝŽŶ͗ Forthemostpart,wehaveincludedcomparablesalesthatsharesimilarlocationrelatedsitusto thatofthesubject–inthiscaseonlySale#1andSale#3requireadjustmentforlocation.Sale#1 isevenmoreremotelylocatedthanthesubject,andupwardadjustmentof20%stillonlyputsthis saleatanadjustedpriceperacreof$3,512.Conversely,Sale#3isbetterlocatedinamore establishedresidentialneighborhoodandthissalerequiresdownwardadjustmentforlocation. FinalReconciliationofValue–“Parcel1”: Following the application of previous explained adjustments, the adjusted range represents a muchtighterrangeofvalue.Theadjustedrangesuggestsarangewithalowof$3,512peracre, ahighendof$8,367peracre,ameanof$6,134peracre,amedianof$5,820peracreanda standarddeviationof$1,680peracre.

Inanalyzingtheadjusteddataset,thetwobestsalesareSales#1and#6,whichindicaterespective adjustedpricingof$3,512peracreand$4,949peracre.Sale#6isagovernmentagencyrelated salefordevelopmentofaborrowpit,andthesesalesarenotalwaysindicativeofmarketvalue– inspiteofattemptstodoso.Sale#6islocatedwithintheimmediatesubjectneighborhood,and Sale#1isarecentandverysimilarsalereflectiveofthepricingpotentialofthesubjectproperty. Sale#1isacriticalsaleinthisanalysis,asthistracthadverysimilarfillanddevelopmentrelated concernstothesubjectsite;butispresentlypermittedtosupportsignificantcommercialand residential development.The recent sale of Sale #1 is demonstrative of the irrelevance of permittingonasitethatphysicallyandlocationallyisultimatelynotsuitablefordevelopment. Accordingly,significantweighttoSale#1isnecessaryinthisanalysis.Withdueconsiderationfor thesetwocriticalsales,wereconciletoapriceperacreconclusionof$4,000.

Withatotalareaof65.35acresandavalueconclusionof$4,000peracre,wereconciletoafinal valueconclusionof$261,400. ASISMarketValue–“Parcel1”= $261,400 Roundedto: $260,000 INDICATIONOFMARKETVALUEVIALAND/SITEVALUATION–“Parcel1”: $260,000

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 151 FINALRECONCILIATION Aswasdiscussedwithinthe^ĐŽƉĞŽĨƚŚĞƉƉƌĂŝƐĂů,ourland/sitevaluationiscomprisedoftwo distinctly separate analyses duly aligned with the varying highest and best use and land uses possibleforboththesubject“MainSite”andalsotheareaofexcesslandknownas“Parcel1”. Theland/sitevaluationanalysisofthe“MainSite”iscomprisedofatotaloften(10)closedsales, acurrentlistingandalsoapendingofferingwithintheimmediatesubjectneighborhood.The rangeofvaluesindicatedbythecomparablesoffersaconvincingandcredibledatasetfromwhich toconcludeanopinionofmarketvalueforthe“MainSite”.Uponconclusionofthe“ASIFvacant” opinionofmarketvalue,itisofcoursenecessarytodeductthecostsassociatedwiththesignificant demolitionandremovalofallverticallyobtrusivematerial,realpropertyandpersonalproperty onͲsite.Given the highest and best use as a speculative land hold with future potential for distributionorinstitutional/governmentuserelatedapplications,theexistingimprovementsand personalpropertywilllikelybeviewedbyanyprospectivepurchaserasworthless.Assuch,we havedeductedthedemolitioncostsplusassociatedmanagementcostsfromtheopinionofthe “ASIFvacant”marketvalueofthe“MainSite”.Again,giventhenetallocationsaccountedforin thecalculationoftherespectivenetusableareasofthecomparablesales,ourperacrevaluecall isapplicableonlytothesubject’sestimatednetusableareaatapproximately145.89acresas demonstratedinthebelowcalculation.Thisprocessresultedinthefollowingconclusionforthe subject’s“MainSite”: “MainSite”NetUsableAcreCountat145.89x$30,000peracre = $4,376,700 LessDemolitionCostEstimate(seeattachedaddenda) = ($1,311,903) LessDemolitionCostImpactAdjustment(SeeReportPage7) = ($21,277) LessAdditionalProjectManagementFeeat3% = ($39,357) ASISMarketValue= $3,004,163 Roundedto: $3,000,000 Regarding“Parcel1”,wehaveresearchedandcollectedapplicablesalesoftrulycomparableland withsimilarlowͲlyingtopographysituatedinsimilarlyunͲdesirableandlowͲdemandareasofthe NewOrleansmetropolitanarea.Theapplicablecomparabledata,asreallystrengthenedbya recentsaleofaverysimilartractinWaggaman,LAanda2011salefromwithintheimmediate subjectneighborhood,providesstrongsupportforavalueconclusionof$4,000peracre,which resultsinafinalASISmarketvalueconclusionasfollows: ASISMarketValueof“Parcel1”asroundedto: $260,000 Thus,whencombinedtogetherasoneproperty,thesubjectpropertypossessesanASISmarket valueinaggregatesummedasfollows:

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING 152 ASISMarketValueofthe“MainSite”asroundedto: $3,000,000 ASISMarketValueof“Parcel1”asroundedto: $260,000 TotalASISMarketValue $3,260,000 With a total of approximately 227 gross acres between both tracts, our value conclusion at $3,260,000resultsinablendedvalueconclusionthatequatestoapproximately$14,300peracre, a blended or weighted indicator heavily impacted by the significantly lower per unit value possessedbyParcel1. Thus,basedonalloftheprecedingdiscourse,presentedmarketdataandanalysisofthesame,it isouropinionthattheASISMarketValueoftheFeeSimpleInterestofthesubjectofthisreport, includingBOTH“TheMainSite”and“Parcel1”,andwithdueconsiderationforthesignificantcost ofdemolitionandremovalofallpersonalandrealpropertyasweightedagainstanysalvagevalue ofthepropertyonͲsite,asofJune29,2016is: THREEMILLIONTWOHUNDREDANDSIXTYTHOUSANDDOLLARSANDNO/100* ($3,260,000)* TheMainSite: $3,000,000(afterdeductionsfordemolition) Parcel1: $260,000

THE MCENERY COMPANY REALESTATEAPPRAISAL,BROKERAGEANDCONSULTING ASSUMPTIONSANDLIMITINGCONDITIONS Thisreportissubjecttothefollowingconditionsandtosuchspecificationsandlimitingconditions thatalsomightbesetforthinthisreport.Theseconditionsaffecttheanalyses;opinions,and valueconclusionscontainedinthisreport. 1.ItisassumedthatthepropertyisownedinFeeSimpleTitle.FeeSimpleTitleimpliesthatthe propertyisownedfreeandclear,unencumberedandunlessotherwisespecified.Therearetobe noleases,liens,easements,encroachmentsorotherencumbrancesonthesubjectpropertythat havenotbeenspecifiedinthisreport. 2.Noresponsibilityisassumedformattersofalegalnatureaffectingtheappraisedpropertyor title.Thisappraisalassumesthatthesubjectpropertyispresentedwithagoodandmarketable titleunlessotherwisespecified.Theappraiserhasnotrenderedanopinionastothetitleanddoes nothavetheexpertisetodoso.Dataonownershipandlegaldescriptionswereobtainedfrom sourcesgenerallyconsideredreliable. 3.Thepropertyisappraisedassumingitistobeunderresponsibleownershipandcompetent management.Unlessotherwisespecified,thepropertyisassumedtobeavailableforitshighest andbestuse. 4.Anysurveycontainedinthisreportisassumedtobetrueandcorrect,anditisalsoassumed thattherearenohiddenencroachmentsuponthepropertyappraisedexceptasnoted.Anysketch preparedbytheappraiserandincludedinthisreportmayshowapproximatedimensionsandis includedtoassistthereaderinvisualizingthepropertyonly.Theappraiserhasnotmadeasurvey ofthepropertyanddoesnotwarrantanysurveysorotherpresentedplansorsketches. 5.Theappraiserassumesthattherearenohiddenorunapparentconditionsoftheproperty, subsoil,orotherstructures,whichwouldrenderitmoreorlessvaluable.Theappraiserassumes noresponsibilityforsuchconditionsorforengineeringwhichmightberequiredtodiscoverthese factors.Thisincludesthepresenceofunusual/extraordinarymineraldepositsorsubsurfacerights nottypicallytransferredwithnormalcomparabledata(i.e.valuablemineralrightsassociatedwith oil/gasproduction,etc.,arenotpartofthisassignment). 6.Anydistributionsofthevaluationofthereportbetweenlandandimprovementsapplyonly undertheexistingprogramofutilization.Theseparatevaluationforlandandbuildingmustnot beusedinconjunctionwithanyotherappraisalandareinvalidifusedinconjunctionwithany otherappraisal. 7.Noresponsibilityisassumedforchangesinmattersthatarelegal,political,social,oreconomic whichcouldaffectrealestatevaluesthattakeplaceaftertheeffectivedateofthisevaluation.

8.Information,estimates,andopinionsfurnishedtotheappraiser,andcontainedinthereport, wereobtainedfromsourcesconsideredreliableandbelievedtobetrueandcorrect.However, no responsibility for the accuracy of such information furnished to the appraiser during the appraisalprocessiswarrantedbytheappraiser.Theappraiserassumesnoresponsibilityforthe accuracyofsuchinformationasmeasurements,survey,titleinformation,andotherinformation furnishedbycomparablesalesdatafoundincourthouserecordsandinformationobtainedfrom Realtorsandotherpartiesduringanytypeofcomparablesurvey. 9. This report is predicated upon the assumption that the property has reached a stabilized occupancyasofthedateofvaluation,unlessotherwisenoted. 10.Onallappraisals,subjecttosatisfactorycompletion,repairs,oralterations,theappraisalreport and value conclusion are contingent upon completion of the improvements in a workmanlike mannerandinaccordwiththereferredtoplansandspecifications. 11.Theappraiserwillnotgivetestimonyorappearincourtbecauseheorshemadeanappraisal ofthepropertyinquestion,unlessrequiredtodosobyacourt. 12.DisclosureofthecontentsofthisappraisalreportisgovernedbytheByͲLawsandRegulations oftheAppraisalInstitute. 13.Neitherallnoranypartofthecontentsofthisreport,especiallyanyconclusionsastovalue, identityoftheappraiserorthefirmwithwhichhe(they)isconnectedoranyreferencetothe AppraisalInstituteshallbedisseminatedtothepublicthroughadvertisingmedia,publicrelations media, news media, sales media, or any other public means of communication without prior consentoftheundersigned. 14.Unlessotherwisestatedinthisreport,theexistenceofhazardousmaterial,whichmayormay not be present on the property, was not observed by the appraiser. The appraiser has no knowledgeoftheexistenceofsuchmaterialsonorintheproperty.Theappraiser,however,is not qualified to detect such substances. The presence of substances such as asbestos, ureaͲ formaldehydefoaminsulation,orotherpotentiallyhazardousmaterialsorgasesmayaffectthe valueoftheproperty.Thevalueestimateispredicatedontheassumptionthatthereisnosuch materialonorinthepropertythatwouldcausealossinvalue.Noresponsibilityisassumedfor suchconditions,orforanyexpertiseorengineeringknowledgerequiredtodiscoverthem.The clientisurgedtoretainanexpertinthisfield,ifdesired.Thisreportfurtherassumesthatthere arenounder/abovegroundstoragetanksofanykindontheproperty(unlessotherwisenoted). Possibleleakageproblemshavenotbeenaddressed.Thesitehistoryofthesubjectpropertyhas not been explored, nor has the historical land use patterns of surrounding properties been investigated.Again,theappraiserhasnotaddressedanyenvironmentalissuesthatmightaffect value.ThisreportassumesthatnosuchissuesofanykindarepresentoraffectingtheFeeSimple Valueinanymanner(unlessotherwisenoted).Theappraiserurgestheclienttoretainanoutside environmentalexperttodeterminethesubjectproperty’sstatusfromthisperspective.

15. We have personally inspected the property and found no obvious evidence of structural deficienciesexceptasstatedinthereport.However,noresponsibilityforhiddenorunnoticed defectsisassumed.Noresponsibilityforconformitytospecificgovernmentalrequirements(such asfire,buildingandsafety,earthquake,oroccupancycodes)canbeassumedwithoutprovisions ofspecificprofessionalorgovernmentalinspections. 16.Wehavepersonallyinspectedthesubjectpropertyandfoundnoevidenceoftermitedamage orinfestation(unlessotherwisenoted).Notermiteinspectionreportwasmadeavailabletothe appraiser; the appraiser is not responsible for damages resulting from any type of insect infestationwhatsoever.Thisisbeyondthescopeoftheappraisalassignment. ACCEPTANCEOFANDUSEOFTHISAPPRAISALREPORTCONSTITUTESACCEPTANCEOFABOVE

ADDENDA LetterofEngagement QualificationsoftheAppraisers LegalDescription Survey Assessments DemolitionEstimate MoveablePropertyOpinion ZoningOrdinance FloodMaps RegionalMap NeighborhoodMap SubjectPhotos

LetterofEngagement

CurriculumVitaeofPeterM.McEnery,MAI,CRE ƵƐŝŶĞƐƐĨĨŝůŝĂƚŝŽŶƐ͗ x FarnsworthͲSamuel,Ltd.ͲCommercialSalesManager(1976–1980) x Murphy,McEneryandCompany,LLC–MemberͲManager(2002ͲMarch,2010) x TheMcEneryCompany,Incorporated,President(1980ͲPresent) ZĞůĂƚĞĚƵƐŝŶĞƐƐǆƉĞƌŝĞŶĐĞ͗ x FirstFinancialBank,FSB,NewOrleans,Louisiana–BankingOfficer(1986Ͳ1988) ZĞĂůƐƚĂƚĞWƌĂĐƚŝĐĂůǆƉĞƌŝĞŶĐĞ͗ x Appraisalofalltypesofcommercialpropertiesincluding: o Acreage(timber,swamp,marsh,agricultural) o LandMitigationBanks o USWF–NWR(environmentallysensitivelargeacreagetracts–LA,MS,AL,AR) o SubdivisionAnalysis o ShoppingandRetailCenters o ConvenienceStores/TruckStops/Casinos o Office o Industrial o MultiͲfamily o HistoricRestorations o DeepWaterPortFacilities o Hotels/NursingHomes/Hospitals o Expropriation(condemnation):LouisianaDOTD;LouisianaTimedManagers x LitigationSupportServices x QualifiedasExpertWitness:FederalDistrictCourt;FederalBankruptcyCourt;StateDistrictCourts x Brokerage/Development: o TheMcEneryCompanyIncorporatedͲbrokerageanddevelopmentinterests x FinanceandConsulting: o IndustrialRevenueBonds(historicrestorationfinancing) o TaxCreditConsulting o GeneralRealEstateConsulting x Banking: o ManagedCommercialREOPortfolio DĞŵďĞƌƐŚŝƉƐ͕>ŝĐĞŶƐĞƐ͕ƚĐĞƚĞƌĂ͗ x Member–TheCounselorsofRealEstate®,awardeddesignationofCRE x Member–TheAppraisalInstitute®,awardeddesignationofMAI x Member–TheNationalAssociationofRealtors® x StateofLouisianaCertifiedGeneralRealEstateAppraiserNo.:GͲ1102 x StateofMississippiCertifiedGeneralRealEstateAppraiserNo.:GAͲ802 x StateofAlabamaCertifiedGeneralRealPropertyAppraiserNo.:G00778 x StateofFloridaCertifiedGeneralAppraiserNo.:RZ3357 x StateofArkansasCertifiedGeneralAppraiserNo.CG3898 x StateofTexasCertifiedGeneralAppraiserNo.:1380008 x LouisianaRealEstateBrokerLicenseͲBrokerNo.:23772 x MississippiRealEstateBrokerLicenseͲBrokerNo.:B17298 x AlabamaRealEstateBrokerLicenseͲBrokerNo.:95787Ͳ0 x ArkansasRealEstateBrokerLicenseͲBrokerNo.:PB00079104 x LouisianaDOTD:RealEstateAgentConsultantPanel

x LouisianaDOTD:RealEstateAppraiserPanel x SoutheasternLouisianaUniversity,Instructor,REPandP(2001) x LRECapprovedinstructor:SpecialSeminarCEinstructor(2003) x LandUseCommittee,NewDirection2025,St.TammanyParish,Louisiana x CentralSt.TammanyLandOwner’sAssociation x Member/Manager–McEneryManagement,LLC x Member/ManagerͲMcEneryProperties,LLC x Member/ManagerͲIolarHoldings,LLC ĚƵĐĂƚŝŽŶ͗ RealEstateContinuingEducationͲthru2016 AppraisalInstitute–Chicago,Illinois x Course00A(1ͲA):BasicAppraisalPrinciples,MethodsandTechniques x Course00B(1ͲB):CapitalizationTheoryandTechniques x Course410ͲA:StandardsofProfessionalAppraisalPractice x Course420ͲB:StandardofProfessionalAppraisalPractice x Course510:AdvancedIncomeCapitalization x Course520:HighestandBestUseandMarketAnalysis x Course530:AdvancedSalesComparisonandCostApproaches x Course540:ReportWriting x Course550:AdvancedApplications x Course/Seminar–PartialInterestValuation–Divided x Course/Seminar–AppraisalConsultation x Course/Seminar–RealEstateDisclosure x Course/Seminar–ScopeoftheWork x Course/Seminar–AppraisingConvenienceStores x Course/Seminar–ValuationofConservationEasements x Course/SeminarͲAnalyzingtheEffectsofEnvironmentalContaminationonRealProperty x CourseͲTheAppraiserasanExpertWitness x CourseͲLitigationAppraising:SpecializedTopicsandApplications x USPAP–2014Ͳ2015 InternationalRightofWayAssociation x Course501ͲResidentialRelocationAssistance x Course502ͲBusinessRelocation x Course505ͲAdvancedRelocationAssistanceI(Residential) CommercialInvestmentRealEstateInstituteChicago,Illinois x CourseCI101:FinancialAnalysisforCommercialRealEstate x CourseCI202:MarketAnalysisforCommercialRealEstate x CourseCI301:DecisionAnalysisforCommercialRealEstate x CourseCI404:AdvancedTaxPlanningforCommercialRealEstate x CourseCI405/406:Selling/NegotiationAnalysisforCommercialRealEstate TulaneUniversity–NewOrleans,Louisiana x CollegeofArtsandSciences,BachelorofArtsDegree–1976 SaintStanislausCollege–BaySt.Louis,Mississippi–1971 ůŝĞŶƚ^ƵŵŵĂƌǇ͗ x Privateindividuals,corporateclients,institutionallenders,publicjurisdictions x (Referencesavailableuponrequest)

CURRICULUMVITAE S.PARKERSONMCENERY,MAI StateofLouisianaCertifiedGeneralRealEstateAppraiser#G1526 StateofMississippiCertifiedGeneralRealEstateAppraiser#GAͲ900 StateofAlabamaCertifiedGeneralRealPropertyAppraiser#G00878 WƌŝŵĂƌǇZĞĂůƐƚĂƚĞƵƐŝŶĞƐƐǆƉĞƌŝĞŶĐĞ͗ x TheMcEneryCompany,NewOrleans,Louisiana–Appraiser/Agent(November2015) x TheMcEneryCompany,NewOrleans,Louisiana–ExecutiveVP(April2004ͲPresent) x Murphy,McEneryandCompany,LLCͲRegionalManager(May2003Ͳ2009) x Murphy,McEneryandCompany,LLCͲStaffAppraiser2010 WƌĂĐƚŝĐĂůZĞĂůƐƚĂƚĞǆƉĞƌŝĞŶĐĞ͗ x CommercialRealEstateAppraisal(13YearsofExperience)–AllPropertyTypes x ForensicAnalysis: o Consultation–feasibilitystudies o NeedsAnalysisandAlternativeSiteAnalysisassistingintheobtainingofa404Wetlands Permit x BrokerageandRealEstateDevelopment o 2014Ͳ2015BuildtoSuitRenovation:GraciousBakery+CaféCommissary x Procuringagentforresidentialandcommercialrealestatetransactionsinexcessof$25million, withthemostnotablerecenttransactionsincluding: o 301St.CharlesAvenue,NewOrleans,LA:Price$4.75million/8.28.2014 o LakeVistaWrenStreetCondominiumSite:Price$3.50million/10.6.2014 o 734Ͳ736UnionStreet,NewOrleans,LA:Price$2.00million/1.9.2015 o 2101N.Highway190,Covington,LA:Price:Notdisclosed/9.18.2015 o 3100AmbassadorCaffery,Lafayette,LA:Price:Notdisclosed/1.20.2016 Brokerageexperiencealsoincludessalesandleasingactivityrelatedto o ApartmentComplexes o SubdivisionDevelopment(lotssalesandbulkacreage) o CommercialLand o SmallͲscaleindustrialproperties o OfficeLeasing o RetailLeasing o SpecialPurposeProperties(i.e.marina,bedandbreakfast) o HistoricandNewMarketTaxCreditRenovationProjects o OfficeBuildingSales DĞŵďĞƌƐŚŝƉƐ͕>ŝĐĞŶƐĞƐ͕ƚĐĞƚĞƌĂ͗ x Member–TheAppraisalInstitute®,awardeddesignationofMAIin2014 x StateofLouisianaCertifiedGeneralRealEstateAppraiser#G1526 x StateofMississippiCertifiedGeneralRealEstateAppraiser#GAͲ900

x StateofAlabamaCertifiedGeneralRealPropertyAppraiser#G00878 x StateofLouisianaLicensedRealEstateAgent x ManagingMember:S.ParkersonHoldings,LLC x Member/Partner:CentralSt.TammanyLandHoldingCompany,LLC x Member/Partner:7220Earhart,LLC x NationalAssociationofRealtors x NewOrleansMetropolitanAssociationofRealtors x Passedall4ModulesoftheComprehensiveExamforMAIDesignationonfirstattempt x PassedDemonstrationofKnowledgeAppraisalReportonfirstsubmittal x Member–TrinityEpiscopalChurch,NewOrleans,LA YƵĂůŝĨŝĞĚĂƐǆƉĞƌƚtŝƚŶĞƐƐ͗ 29thJudicialDistrictCourt:St.CharlesParishͲJudgeRobertA.Chaisson,EminentDomainCase UnitedStatesBankruptcyCourt:SouthernDistrictofMississippiͲJudgeKatharineM.Samson ĚƵĐĂƚŝŽŶ͗ AppraisalInstitute–Chicago,Illinois–2003–Present ƉƉƌĂŝƐĂů/ŶƐƚŝƚƵƚĞ^ĞŵŝŶĂƌƐ x ScopeofWork:ExpandingYourRangeofServices(NewOrleans,Oct.2003) x AppraisingConvenienceStores(NewOrleans,January2005) ƉƉƌĂŝƐĂů/ŶƐƚŝƚƵƚĞŽƵƌƐĞƐ x Course110:AppraisalPrinciples(Austin,TX,January2004) x Course120:AppraisalProcedures(Plano,TX,March2004) x Course410:NationalUSPAPCourse(Plano,TX,March2004) x Course310:BasicIncomeCapitalization(Atlanta,GA,February2005) x Course330:ApartmentAppraisal:ConceptsandApplications(Online,July2006) x Course320:GeneralApplications(Online,October2006) x Course520:HighestandBestUseandMarketAnalysis(Houston,TX,Oct.2006) x Course510:AdvancedIncomeCapitalization(December2007) x GeneralSiteValuationandCostApproach(Online,December2008) x Course530:AdvancedSalesComparison&CostApproaches(Arlington,TXJuly2009) x Course405G:GeneralAppraiserReportWriting&CaseStudies(Houston,TXMarch2010) x CourseͲAdvancedConceptsandCaseStudies(Houston,TX2011) x USPAP2012Ͳ2013 x USPAP2014Ͳ2015 x DemonstrationReportCapstoneProgram(Louisville,KY2014) CCIMInstitute–Chicago,Illinois–2006–Present /D/ŶƐƚŝƚƵƚĞŽƵƌƐĞƐ x CCIMͲCalculatorCourse:(Memphis,TN,July2006) x CCIM–CIͲIntroCourse:(Memphis,TN,July2006) RhodesCollege–Memphis,Tennessee x CollegeofArtsandSciences,BachelorofArtsDegree–2003 x Major:History;Minor:Business

x RealEstateRelatedCourses: o Finance o FinancialAccounting FranklinRoadAcademy–Nashville,Tennessee(HighSchoolDiploma–1998) Birthday:January13,1980 Birthplace:NewOrleans,Louisiana [email protected] WebsiteProfilehttp://www.mceneryco.com/parkeͲmcenery/ ^ĞůĞĐƚĞĚ>ŝƐƚŽĨůŝĞŶƚƐͬƉƉƌŽǀĞĚƉƉƌĂŝƐĞƌ>ŝƐƚ͗ WhitneyBankWeyerhaeuserCompany UnitedStatesDepartmentoftheInteriorHancockBank IberiaBankJ.P.MorganChaseBank FidelityHomesteadBankFirstNBCBank CoastalCommerceBankAdams&Reese,LLP TecheFederalBankTrustmarkNationalBank CapitalOneBankGulfCoastBank&Trust BBVACompassBankFirstNationalBankUSA FrenchMarketCorporationResourceBank RegionsBankStonePigmanWaltherWittman RealEstateMatrix,LLCBizCapitalBIDCOII,LLC StateInvestorsBankTheCitizensBank(MS) CitizensBankandTrust(Covington) CitizensBankandTrust(BatonRouge) FOCUSValuationAdvisorsHomeBank CharterBank (MS)FirstCommunityBank CoastalCommerceBankMetairieBankandTrust AmericanBusinessLendingLibertySelfͲStorage/BennettBrothers &ƵůůůŝĞŶƚ>ŝƐƚĂŶĚZĞĨĞƌĞŶĐĞƐǀĂŝůĂďůĞhƉŽŶZĞƋƵĞƐƚ

EŽƚĂďůĞŽŵƉůĞƚĞĚZĞĂůWƌŽƉĞƌƚǇƉƉƌĂŝƐĂůƐƐŝŐŶŵĞŶƚƐ͗ NewOrleansCentreDowntownNewOrleans BenderShipbuildingandRepairYardsPortofMobile,Alabama AceMachine&FabricationPortfolioSouthCentralLouisiana MonroeMotorSpeedwayMonroe,Louisiana ProposedStephen’sGarageApartmentProject DowntownNewOrleans ProposedMarignyLoftsApartmentProject NewOrleans,Louisiana TheRouzan–TraditionalNeighborhoodDevelopment BatonRouge,Louisiana TheMaritimeBuildingDowntownNewOrleans DeltaNationalWildlifeRefugeCoastalLouisiana InnbytheSeaPassChristian,Mississippi LindyBoggs/MercyHospitalSiteͲSt.Margaret's NewOrleans,Louisiana NewOrleansExchangeCentre/ChevronBuilding DowntownNewOrleans BossierTowneCenterBossierCity,Louisiana DomainCompaniesLandAcquisitionsDowntownNewOrleans CrossroadsPsychiatricHospitalAlexandria,Louisiana CEMUS–DeepwaterfrontIndustrialTract BatonRouge,Louisiana HighlandCommunityHospitalMedicalBuildings Picayune,Mississippi ParksidePlazaRetailCenterLaurel,Mississippi HubCityLofts–ProposedApartmentProject Hattiesburg,Mississippi BigBranchNationalWildlifeRefugeSt.TammanyParish,Louisiana Tipitina’sNewOrleans,Louisiana LandbetweentheLakes–21½MilesofShoreline LakeMartin,Alabama RiverviewPlazaOfficeTowerDowntownMobile,Alabama CityViewCondosDowntownJackson,Mississippi MobilePressRegisterHeadquartersMobile,Alabama ThePlazaTowerNewOrleans,Louisiana

LegalDescription Parcel1(Lot13ͲB5A)ͲTaxBillNumber39W909544

ACERTAINPARCELOFLANDtogetherwithallimprovementsthereon,situatedinTownship11 South, Range 13 East, Section 1 in the THIRD DISTRICT of the City of New Orleans, State of Louisianawhichsaid13ͲB5Awascreatedpursuanttoresubdivisionof13ͲB5perplanbyW/E ProfessionalSurveysdatedJuly20,1999,andadoptedbytheCityPlanningCommissionunder DocketNo.70/99andbeingmorefullydescribedasfollows:

CommencingatNGSMonument36AͲ002(LDH)havingLouisianaCoordinateSystemof 1983positionofX=3,726,932.32andY=576,014.17thenceS35°12'12"W4626.46feetto thepointofintersectionofthesoutherlylineofParcel13ͲB3withtheeasterlylineof InterstateHighway10andthePointofBeginning;

ThenceS37°03'40"WalongsaideasterlylineofInterstateHighway10,1304.28feet(1304.04 record)tothePointofCurvatureofaNonͲtangentcurveconcavetotheright; ThencecontinuingalongsaideasterlylineofInterstateHighway10,alongsaidNonͲtangent curvehavingaradiusof3014.90feet,achordS39°21'38"W,241.92feet,adistanceof241.98 feet(239.76feetrecord)totheintersectionwiththenortherlylineofParcelJ2ͲDͲ2; Thence along said northerly line of Parcel J2ͲDͲ2, S 52°55'46" E 573.89 feet (572.81 feet record)toapoint; ThencecontinuingalongeasterlylineofParcelJ2ͲDͲ2,S5°42'27"E247.40feet(250.23feet record)tothepointofintersectionwiththenortherlylineofOakIslandII,Phase1ͲSectionA subdivision; Thence along the northerly and easterly lines of said Oak Island II, Phase IͲSection A subdivisionforthenextseven(7)courses: N84°17'33"E105.65feet(105.00feetrecord); ThenceN5°42'27"W2.04feet; ThenceN84°17'33"E159.00feet; ThenceS5°42'27"E105.00feet; ThenceN84°17'33"E10.00feet; ThenceS5°42'27"E699.91feet; ThenceS76°21'25"E481.52feet(481.65feetrecord)tothecurvedwesterlylineofMichoud Boulevard; ThencealongsaidcurvedwesterlylineofMichoudBoulevardconcavetotherighthavinga radiusof5335.00feetachordN24°45'01"E,1782.92feet,adistance1791.32feettothe pointofintersectionwiththesoutherlylineofParcel13ͲB5B; ThencealongthesoutherlylineofsaidParcel13ͲB5B,N53°20'10"W212.26feettoa point;

ThencealongthewesterlylineofsaidParcel13ͲB5B,N36°39'50"E207.98feettothepoint ofintersectionwiththesoutherlylineofParcel13ͲB2; Thence along said southerly lines of Parcel 13ͲB2 and Parcel 13ͲB3, N 53°20'10" W 1327.02 feet to intersection with the easterly line of Interstate Highway 10 and THE POINTOFBEGINNING. BearingsareLambertGridMeridianbasedonNGSMonuments36AͲ001(LDH)and36AͲ002 (LDH).

Theabovedescribedparcelcontains65.3548acres,andisallandmorefullyshownontheMapof ALTA/ACSM Land Title Survey of Lot 13ͲB5A by Wink, Incorporated, certified correct by Hugh McCurdy III, dated July 19, 2002, amended August 9, 2002, bearing Job No. 102380.00 and DrawingNo.380Ͳ02Ͳ4. Parcel2(LotJ2ͲDͲ1)ͲTaxBillNumber39W019511

ACERTAINPARCELOFLANDtogetherwithallimprovementsthereon,situatedinTownship11 South,Range13East,Sections1and30intheTHIRDDISTRICToftheCityofNewOrleans, StateofLouisiana,whichsaidJ2ͲDͲ1wascreatedpursuanttoresubdivisionofLotJ2ͲDper planbyW/EProfessionalSurveysdatedAugust18,1998andadoptedbytheCityPlanning CommissionunderSubdivisionDocketNo.83/98,andbeingmorefullydescribedasfollows:

Commencing at U.S.N.G.S. Station 36A002 having a Louisiana State Plane South Zone coordinateofX=3,726,932.32Y=576,014.17(1983NAD)orX=2,446,130.22Y=515,307.02 (1927NAD),thenceS36°15'41"Wadistanceof7200.97feettothepointofintersection ofthelinebetweenSection1andSection30(alsoknownastheMichoudLine)withthe southerly line of Interstate Highway 10; Thence along the southerly line of Interstate Highway10forthenextfourcourses;N30°05'06"Eadistanceof223.36feettoapoint; N53°20'27"Eadistanceof184.48feettoapoint;N37°14'40"Eadistanceof499.12 feettothepointofnontangentcurveconcavetotheleft;Alongsaidnontangentcurve concavetothelefthavingaradiusof3014.90feetandachordofN42°55'27"E133.03 feet,adistanceof133.04feettothenorthwestcornerofLot13ͲB5A;Thenceleavingthe southerly line of Interstate Highway 10 and following the westerly line of 13ͲB5A, S 52°55'46"Eadistanceof573.89feettoapoint;ThenceS5°42'27"E,alongthewesterly lineofLot13ͲB5AandOakIslandIIPhase1SectionA,adistanceof885.00feettothe northeastcornerofLotJZL;ThenceS84°17'33"W,alongthenortherlylineofLotJZL,a distanceof590.00feettothePOINTOFBEGINNING;

ThenceS5°42'27"E,alongthenortherlylineofLotJZL,adistanceof650.00feettoa corner;

ThencecontinuingalongthenortherlylineofLotJZL,S84°17'33"Wadistanceof992.36feet tothepointofintersectionwiththeeasterlylineofInterstateHighway10;

ThenceN12°21'00"E,alongtheeasterlylineofInterstateHighway10,adistanceof683.67 feettoapoint;

ThenceN84°17'33"Eadistanceof780.44feettothePOINTOFBEGINNING.

LotJ2ͲDͲ1contains13.2268acresandisallandmorefullyshownontheMapofALTA/ACSM LandTitleSurveyofLotJ2ͲDͲ1byWinkIncorporated,certifiedcorrectbyHughMcCurdyIII, datedJuly19,2002,amendedAugust9,2002,bearingJobNo.102380.00andDrawingNo. 380Ͳ02Ͳ3. Parcel3(LotJZL)ͲTaxBillNumber39W965110

ACERTAINPARCELOFLANDtogetherwithallimprovementsthereon,andalloftherights, ways, privileges, servitudes, appurtenances, and advantages thereunto belonging or in otherwiseappertaining,situatedinTownship11South,Range13East,Sections1,30and31 in the THIRD DISTRICT of the City of New Orleans, State of Louisiana, which said JZL was createdpursuanttoresubdivisionofportionsofLotsEX,J2,ENTͲ1(whichisaportionofthe formerEntergyTract),andaportionofLouisianaDOTDParcel11Ͳ02andbeingmorefully describedasfollows:

Commencing at U.S.N.G.S. Station 36A002 having a Louisiana State Plane South Zone coordinateofX=3,726,932.32Y=576,014.17(1983NAD)orX=2,446,130.22Y=515,307.02 (1927NAD),thenceS36°15'41"Wadistanceof7200.97feettothepointofintersection ofthelinebetweenSection1andSection30(alsoknownastheMichoudLine)withthe southerly line of Interstate Highway 10; Thence along the southerly line of Interstate Highway10forthenextfourcourses;N30°05'06"Eadistanceof223.36feettoapoint; N53°20'27"Eadistanceof184.48feettoapoint;N37°14'40"Eadistanceof499.12feet tothepointofnontangentcurveconcavetotheleft;Alongsaidnontangentcurveconcave tothelefthavingaradiusof3014.90feetandachordofN42°55'27"E133.03feet,a distance of 133.04 feet to the northwest corner of Lot 13ͲB5A; Thence leaving the southerlylineofInterstateHighway10andfollowingthewesterlylineofLot13ͲB5A,S 52°55'46"Eadistanceof573.89feettoapoint;ThenceS5°42'27"E,alongthewesterly lineofLot13ͲB5AandOakIslandIIPhaseISectionA,adistanceof885.00feettothePOINT OFBEGINNING; ThenceS84°17'33"Wadistanceof590.00feettoapoint;

ThenceS5°42'27"Eadistanceof650.00feettoapoint;

ThenceS84°17'33"Wadistanceof992.36feettothepointofintersectionwiththeeasterly lineofInterstateHighway10;

ThenceS12°21'00"W,alongtheeasterlylineofInterstateHighway10,adistanceof520.14 feettoapoint;

ThenceS8°58'44"Wadistanceof481.50feettothepointofintersectionwiththeeasterly rightofwaylineoftheDwyerleveeandcanal;

ThenceS84°24'40"Wadistanceof54.75feettothepointofintersectionwiththeeasterly lineofInterstateHighway510;

ThencealongtheeasterlylineofInterstateHighway510forthenextfourcourses; S2°04'05"Wadistanceof262.60feettothepointofnontangentcurveconcavetotheleft;

Alongsaidnontangentcurveconcavetothelefthavingaradiusof5549.58feetandachord ofS2°51'12"E530.37feet,adistanceof530.57feettoapoint;

S84°24'28"Wadistanceof14.91feettoapoint;

S5°35'32"Eadistanceof1300.72feettoapoint; ThenceN84°17'33"Eadistanceof1347.46feettoapoint; ThenceS4°17'33"Wadistanceof320.00feettoapoint;

ThenceS40°00'00"Eadistanceof280.67feettothepointofintersectionwiththenortherly lineofLakeForestBoulevard;

ThenceN50°00'00"E,alongthenortherlylineofLakeForestBoulevardadistanceof128.34 feettoapoint;

ThencecontinuingalongthenortherlylineofLakeForestBoulevard,N45°21'57"Eadistance of21.73feettoapoint; ThenceN40°00'00"Wadistanceof217.86feettoapoint; ThenceN4°17'33"Eadistanceof370.00feettoapoint; ThenceN9°17'33"Eadistanceof330.00feettoapoint;

ThenceN84°17'33"Eadistanceof400.00feettothepointofintersectionwiththewesterly lineofLot25AͲ2;

ThenceN5°42'27"W,alongthewesterlylineofLots25AͲ2,13B4A,13B4B,13B4C,andOak IslandIIPhase1,adistanceof3298.69feettothePOINTOFBEGINNING.

LotJZLcontains139.9462acresandisallandmorefullyshownontheMapofALTA/ACSMLand TitleSurveyofLotJZL&Lot13B4ͲB,byWink,Incorporated,certifiedcorrectbyHughMcCurdy III,datedJuly19,2002,amendedAugust9,2002,bearingJobNo.102380.00andDrawingNo. 380Ͳ02Ͳ1.

Parcel4(LotJ2ͲB)ͲTaxBillNumber39W019508

ACERTAINPARCELOFLANDtogetherwithallimprovementsthereon,situatedinTownship11 South,Range13East,Section1intheTHIRDDISTRICToftheCityofNewOrleans,Stateof LouisianawhichsaidJ2ͲBwascreatedpursuantto resubdivisionof LotsEX,J2,ENTͲ1,and DOTDParcel11Ͳ02perplanbyW/EProfessionalSurveyslastdatedMay1,1998,andadopted bytheCityPlanningCommissionunderSubdivisionDocketNo.15/98andbeingmorefully describedasfollows:

Commencing at U.S.N.G.S. Station 36A002 having a Louisiana State Plane South Zone coordinateofX=3,726,932.32Y=576,014.17(1983NAD)orX=2,446,130.22Y=515,307.02 (1927NAD),thenceS36°15'41"Wadistanceof7200.97feettothepointofintersection ofthelinebetweenSection1andSection30(alsoknownastheMichoudLine)withthe southerly line of Interstate Highway 10; Thence along the southerly line of Interstate Highway10forthenextfourcourses;N30°05'06"Eadistanceof223.36feettoapoint; N53°20'27"Eadistanceof184.48feettoapoint;N37°14'40"Eadistanceof499.12 feettothepointofnontangentcurveconcavetotheleft;Alongsaidnontangentcurve concavetothelefthavingaradiusof3014.90feetandachordofN42°55'27"E133.03 feet,adistanceof133.04feettothenorthwestcornerofLot13ͲB5A;Thenceleavingthe southerlylineofInterstateHighway10andfollowingthewesterlylineofLot13ͲB5A,S 52°55'46"Eadistanceof573.89feettoapoint;ThenceS5°42'27"E,alongthewesterly lineofLot13ͲB5A,OakIslandIIPhase1SectionA,andLots13B4C,13B4B,13B4A,and 25AͲ2,adistanceof4183.69feettothePOINTOFBEGINNING; ThenceS84°17'33"Wadistanceof400.00feettoapoint; ThenceS9°17'33"Wadistanceof330.00feettoapoint; ThenceS4°17'33"Wadistanceof370.00feettoapoint;

ThenceS40°00'00"Eadistanceof217.86feettothepointofintersectionwiththenortherly lineofLakeForestBoulevard;

ThenceN45°21'57"E,alongthenortherlylineofLakeForestBoulevard,adistanceof332.83 feettothepointofnontangentcurveconcavetotheright;

Thencealongsaidnontangentcurveconcavetotherighthavingaradiusof1995.33feet andachordofN55°03'43"E192.50feet,adistanceof192.57feettosouthwestcornerof Lot25AͲ2; ThenceN5°42'27"W,alongthewesterlylineofLot25AͲ2,adistanceof560.00feettothe POINTOFBEGINNING.

LotJ2ͲBcontains7.9703acresandisallandmorefullyshownontheMapofALTA/ACSM LandTitleSurveyofLotJ2ͲBbyWink,Incorporated,certifiedcorrectbyHughMcCurdyIII,

datedJuly19,2002,amendedAugust9,2002,bearingJobNo.102380.00andDrawingNo. 38Ͳ002Ͳ2. Parcel5(Lot13B4B)ͲTaxBillNumber39W909542 ACERTAINPARCELOFLANDtogetherwithallimprovementsthereon,andalloftherights,ways, privileges, servitudes, appurtenances, and advantages thereunto belonging or in otherwise appertaining,situatedinTownship11South,Range13East,Section1intheTHIRDDISTRICTof theCityofNewOrleans,StateofLouisianaandbeingmorefullydescribedasfollows: Commencing at U.S.N.G.S. Station 36A002 having a Louisiana State Plane South Zone coordinateofX=3,726,932.32Y=576,014.17(1983NAD)orX=2,446,130.22Y=515,307.02 (1927NAD),thenceS36°15'41"Wadistanceof7200.97feettothepointofintersection ofthelinebetweenSection1andSection30(alsoknownastheMichoudLine)withthe southerly line of Interstate Highway 10; Thence along the southerly line of Interstate Highway10forthenextfourcourses;N30°05'06"Eadistanceof223.36feettoapoint; N53°20'27"Eadistanceof184.48feettoapoint;N37°14'40"Eadistanceof499.12feet tothepointofnontangentcurveconcavetotheleft;Alongsaidnontangentcurveconcave tothelefthavingaradiusof3014.90feetandachordofN42°55'27"E133.03feet,a distance of 133.04 feet to the northwest corner of Lot 13ͲB5A; Thence leaving the southerlylineofInterstateHighway10andfollowingthewesterlylineofLot13ͲB5A,S 52°55'46"Eadistanceof573.89feettoapoint;ThenceS5°42'27"E,alongthewesterly lineofLot13ͲB5A,OakIslandIIPhase1SectionA,andLot13B4C,adistanceof3064.60 feettothesouthwestcornerofLot13B4CandthePOINTOFBEGINNING; ThenceN84°17'33"E,alongthesoutherlylineofLot13B4C,adistanceof380.17feetto thepointofintersectionwiththewesterlylineofMichoudBoulevard; ThencealongthecurvedwesterlylineofMichoudBoulevardconcavetothelefthavingaradius of5335.00feetandachordofS5°28'33"E43.14feet,adistanceof43.15feettothepointof tangency; ThencecontinuingalongthewesterlylineofMichoudBoulevardS5°42'27"Eadistanceof 56.85feettothepointofintersectionwiththenortherlylineofLot13B4A; ThenceS84°17'33"W,alongthenortherlylineofLot13B4A,adistanceof380.00feettothe northwestcornerofLot13B4A; ThenceN5°42'27"W,alongthewesterlylineofLotJZL(formerLotEX)adistanceof100.00 feettothePOINTOFBEGINNING Lot13B4Bcontains0.8724acresandisallandmorefullyshownontheMapofALTA/ACSM LandTitleSurveyofLotJZL&Lot13B4B,byWink,Incorporated,certifiedcorrectbyHugh

McCurdyIII,datedJuly19,2002,amendedAugust9,2002,bearingJobNo.102380.00and DrawingNo.380Ͳ02Ͳ1.

Survey

Assessments

DemolitionEstimate

MoveablePropertyOpinion

ZoningOrdinance

FloodMaps

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RegionalMap

NeighborhoodMap

SubjectPhotographs

GLOSSARY This glossary contains the definitions of common words and phrases, used throughout the appraisalindustry,asappliedwithinthisdocument.Pleaserefertothepublicationslistedinthe WorksCitedsectionbelowformoreinformation. WorksCited: Appraisal Institute. dŚĞ ƉƉƌĂŝƐĂů ŽĨ ZĞĂů ƐƚĂƚĞ͘ 13th ed. Chicago: Appraisal Institute, 2008.Print. AppraisalInstitute.dŚĞŝĐƚŝŽŶĂƌǇŽĨZĞĂůƐƚĂƚĞƉƉƌĂŝƐĂů͘5thed.2010.Print. BandofInvestment x CAM can refer to all operating Atechniqueinwhichthecapitalizationrates expenses. attributable to components of a capital x CAMcanrefertothereimbursement investment are weighted and combined to bythetenanttothelandlordforall deriveaweightedͲaveragerateattributable expenses reimbursable under the to the total investment. (Dictionary, 5th lease. Sometimes reimbursements Edition) havewhatiscalledanadministrative load. An example would be a 15% CommonArea additiontototaloperatingexpenses, 1. The total area within a property that is which are then prorated among not designed for sale or rental but is tenants.Theadministrativeload,also availableforcommonusebyallowners, called an administrative and tenants, or their invitees, e.g., parking marketingfee,canbeasubstitutefor anditsappurtenances,malls,sidewalks, oranadditiontoamanagementfee. landscaped areas, recreation areas, 2. Theamountofmoneychargedtotenants publictoilets,truckandservicefacilities. fortheirsharesofmaintainingacenter’s 2. Inashoppingcenter,thewalkwaysand commonarea.Thechargethatatenant areas onto which the stores face and pays for shared services and facilities which conduct the flow of customer such as electricity, security, and traffic.(ICSC)(Dictionary,5thEdition) maintenanceofparkinglots. CommonAreaMaintenance(CAM) The area maintained in common by all 1. The expense of operating and tenants, such as parking lots and maintainingcommonareas;mayormay common passages. The area is often not include management charges and definedintheleaseandmayormaynot usually does not include capital includeallphysicalareatobepaidforby expendituresontenantimprovementsor all tenants. Items charged to common otherimprovementstotheproperty. area maintenance may include cleaning x CAMcanbealineͲitemexpensefora services, parking lot sweeping and group of items that can include maintenances, snow removal, security, maintenance of the parking lot and and upkeep. (ICSC) (Dictionary, 5th landscapedareasandsometimesthe Edition) exteriorwallsofthebuildings.

DebtCoverageRatio(DCR) assuming a competitive and open Theratioofnetoperatingincometoannual market.(Dictionary,5thEdition) debtservice(DCR=NOI/Im),whichmeasures therelativeabilityofapropertytomeetits ExcessLand debt service out of net operating income; Landthatisnotneededtoserveorsupport also called debt service coverage ratio the existing improvement. The highest and (DSCR). A larger DCR indicates a greater bestuseoftheexcesslandmayormaynot ability for a property to withstand a bethesameasthehighestandbestuseof downturninrevenue,providinganimproved theimprovedparcel.Excesslandmayhave safety margin for a lender. (Dictionary, 5th the potential to be sold separately and is Edition) valuedseparately.(Dictionary5thEdition) DiscountRate ExternalObsolescence Ayieldrateusedtoconvertfuturepayments Anelementofdepreciation;adiminutionin or receipts into present value; usually value caused by negative externalities and considered to be a synonym for yield rate. generallyincurableonthepartoftheowner, (Dictionary,5thEdition) landlord,tenant.(Dictionary,5thEdition) EffectiveAge ExtraordinaryAssumption The age of property that is based on the Anassumption,directlyrelatedtoaspecific amount of observed deterioration and assignment,which,iffoundtobefalse,could obsolescenceithassustained,whichmaybe altertheappraiser’sopinionsorconclusions. different from its chronological age. Extraordinary assumptions presume as fact (Dictionary,5thEdition) otherwise uncertain information about physical,legal,oreconomiccharacteristicsof EffectiveDate the subject property; or about conditions 1. Thedateonwhichtheanalyses,opinion, external to the property such as market and advice in an appraisal, review, or conditionsortrends;orabouttheintegrityof consultingserviceapply. datausedinananalysis.(USPAP,2014Ͳ2015 2. Inaleasedocument,thedateuponwhich ed.)(Dictionary,5thEdition) theleasegoesintoeffect.(Dictionary,5th Edition) FeeSimpleEstate Absolute ownership unencumbered by any ExposureTime otherinterestorestate,subjectonlytothe 1. The time a property remains on the limitations imposed by the governmental market. powersoftaxation,eminentdomain,police 2. The estimated length of time the power,andescheat.(Dictionary,5thEdition) propertyinterestbeingappraisedwould havebeenofferedonthemarketpriorto FunctionalObsolescence thehypotheticalconsummationofasale The impairment of functional capacity of a atmarketvalueontheeffectivedateof property according to market tastes and the appraisal; a retrospective estimate standards.(Dictionary,5thEdition) based on an analysis of past events

FunctionalUtility and best use must meet are legal The ability of a property or building to be permissibility, physical possibility, financial usefulandoperformthefunctionforwhich feasibility, and maximum productivity. it is intended according to current market Alternatively, the probable use of land or tastes and standards; the efficiency of a improvedproperty—specificwithrespectto building’suseintermsofarchitecturalstyle, the user and timing of the use—that is design and layout, traffic patterns, and the adequately supported and results in the sizeandtypeofrooms.(TheAppraisalofReal highest present value. (Dictionary, 5th Estate,13thEdition) Edition) GoingConcernValue Highest and Best Use of Land or a Site as 1. The market value of all the tangible and ThoughVacant intangible assets of an established and Among all reasonable, alternative uses, the operatingbusinesswithanindefinitelife,as use that yields the highest present land ifsoldinĂŐŐƌĞŐĂƚĞ͖moreaccuratelytermed value, after payments are made for labor, theŵĂƌŬĞƚǀĂůƵĞŽĨƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶ͘ capital, and coordination. The use of a propertybasedontheassumptionthatthe 2. The value of an operating business parcel of land is vacant or can be made enterprise. Goodwill may be separately vacant by demolishing any improvements. measured but is an integral component of (Dictionary,5thEdition) goingͲconcern value when it exists and is recognizable.(Dictionary,5thEdition) HighestandBestUseofPropertyasImproved Theusethatshouldbemadeofapropertyas GrossBuildingArea(GBA) itexists.Anexistingimprovementshouldbe Total floor area of a building, excluding renovated or retained as is so long as it unenclosed areas, measured from the continuestocontributetothetotalmarket exteriorofthewallsoftheaboveͲgradearea. valueoftheproperty,oruntilthereturnfrom This includes mezzanines and basements if anewimprovementwouldmorethanoffset and when typically included in the region. thecostofdemolishingtheexistingbuilding (Dictionary,5thEdition) andconstructinganewone.(Dictionary,5th Edition) GrossLeasableArea(GLA) Totalfloorareadesignedfortheoccupancy HypotheticalCondition and exclusive use of tenants, including Thatwhichiscontrarytowhatexistsbutis basementsandmezzanines;measuredfrom supposed for the purpose of analysis. thecenterofjointpartitioningtotheoutside Hypothetical conditions assume conditions wallsurfaces.(Dictionary,5thEdition) contrarytoknownfactsaboutphysical,legal, or economic characteristics of the subject Highest&BestUse property;oraboutconditionsexternaltothe The reasonably probable and legal use of property, such as market conditions or vacantlandoranimprovedpropertythatis trends;orabouttheintegrityofdatausedin physicallypossible,appropriatelysupported, ananalysis.(Dictionary,5thEdition) financially feasible, and that results in the highest value. The four criteria the highest InvestmentValue

The value of a property interest to a pricethatthespecifiedpropertyinterest particularinvestororclassofinvestorsbased should sell for in a competitive market on the investor’s specific requirements. afterareasonableexposuretime,asofa Investment value may be different from specified date, in cash, or in terms marketvaluebecauseitdependsonasetof equivalent to cash, under all conditions investment criteria that are not necessarily requisitetoafairsale,withthebuyerand typicalofthemarket(Dictionary,5thEdition) seller each acting prudently, knowledgeably, for selfͲinterest, and LeasedFeeInterest assumingthatneitherisunderduress. A freehold (ownership interest) where the possessory interest has been granted to 2. MarketvalueisdescribedintheUniform another party by creation of a contractual Standards of Professional Appraisal landlordͲtenant relationship (i.e., a lease). Practice (USPAP) as follows: A type of (Dictionary,5thEdition) value, stated as an opinion, that presumesthetransferofaproperty(i.e., LeaseholdInterest arightofownershiporabundleofsuch Thetenant’spossessoryinterestcreatedbya rights),asofacertaindate,underspecific lease.(Dictionary,5thEdition) conditions set forth in the definition of the term identified by the appraiser as MarketArea applicableinanappraisal.(USPAP,2014Ͳ Theareaassociatedwithasubjectproperty 2015 ed.) USPAP also requires that that contains its direct competition. certain items be included in every (Dictionary,5thEdition) appraisalreport.Amongtheseitems,the following are directly related to the MarketRent definitionofmarketvalue: The most probably rent that a property x Identificationofthespecificproperty should bring is a competitive and open rightstobeappraised. market reflecting all conditions and x Statementoftheeffectivedateofthe restrictionsoftheleaseagreement,including valueopinion. permitted uses, use restrictions, expense x Specification as to whether cash, obligations,term,concessions,renewaland terms equivalent to cash, or other purchaseoptions,andtenantimprovements precisely described financing terms (TIs).(Dictionary,5thEdition) are assumed as the basis of the appraisal. MarketValue x If the appraisal is conditioned upon The major focus of most real property financingorotherterms,specification appraisal assignments. Both economic and astowhetherthefinancingorterms legaldefinitionsofmarketvaluehavebeen are at, below, or above market developedandrefined. interestratesand/orcontainunusual conditionsorincentives.Thetermsof 1. Themostwidelyacceptedcomponentsof above—or below—market interest market value are incorporated in the ratesand/orotherspecialincentives following definition: The most probable must be clearly set forth; their

contributionto,ornegativeinfluence 4. The International Valuation Standards on, value must be described and Council defines market value for the estimated; and the market data purpose of international standards as supportingtheopinionofvaluemust follows:Theestimatedamountforwhich be described and explained. apropertyshouldexchangeonthedate ofvaluationbetweenawillingbuyerand 3. Thefollowingdefinitionofmarketvalueis a willing seller in an arm’sͲlength usedbyagenciesthatregulatefederally transaction after proper marketing insuredfinancialinstitutionsintheUnited wherein the parties had each acted States: The most probable price that a knowledgeably, prudently, and without property should bring in a competitive compulsion. (International Valuation and open market under all conditions Standards,8thed.,2007) requisitetoafairsale,thebuyerandthe seller each acting prudently and 5. Marketvalueistheamountincash,oron knowledgeably,andassumingthepriceis termsreasonablyequivalenttocash,for notaffectedbyunduestimulus.Implicitin which in all probability the property thisdefinitionistheconsummationofa wouldhavesoldontheeffectivedateof saleasofaspecifieddateandthepassing the appraisal, after a reasonable of title from seller to buyer under exposure of time on the open conditionswhereby: competitive market, from a willing and x Buyer and seller are typically reasonably knowledgeable seller to a motivated; willing and reasonably knowledgeable x Bothpartiesarewellinformedorwell buyer, with neither acting under any advised, and acting in what they compulsion to buy or sell, giving due considertheirbestinterests; consideration to all available economic x A reasonable time is allowed for uses of the property at the time of the exposureintheopenmarket; appraisal.(UniformStandardsforFederal Land Acquisitions) (Dictionary, 5th x Paymentismadeintermsofcashin Edition) U.S. dollars or in terms of financial arrangements comparable thereto; MarketingTime and An opinion of the amount of time it might x The price represents the normal take to sell a real or personal property consideration for the property sold interestattheconcludedmarketvaluelevel unaffected by special or creative during the period immediately after the financing or sales concessions effective date of the appraisal. Marketing granted by anyone associated with time differs from exposure time, which is thesale.(12C.F.R.Part34.42(g);55 always presumed to precede the effective Federal Register 34696, August 24, dateofanappraisal.(AdvisoryOpinion7of 1990, as amended at 57 Federal the Standards Board of The Appraisal Register 12202, April 9, 1992; 59 Foundation and Statement on Appraisal FederalRegister29499,June7,1994) StandardsNo.6,“ReasonableExposureTime in Real Property and Personal Property

Market Value Opinions” address the For office buildings, the tenant’s pro rata determination of reasonable exposure and portion of the entire office floor, excluding marketingtime).(Dictionary,5thEdition) elements of the building that penetrate throughthefloortotheareasbelow. NetOperatingIncome(NOI) Therentableareaofaflooriscomputedby The actual or anticipated net income that measuring to the inside finished surface of remains after all operating expenses are the dominant portion of the permanent deducted from effective gross income but building walls, excluding any major vertical before mortgage debt service and book penetrations of the floor. Alternatively, the depreciation are deducted. (Dictionary, 5th amountofspaceonwhichtherentisbased; Edition) calculated according to local practice. (Dictionary,5thEdition) Obsolescence Onecauseofdepreciation;animpairmentof ReplacementCost desirability and usefulness caused by new Theestimatedcosttoconstruct,atcurrent inventions, changes in design, improved prices as of the effective appraisal date, a processesforproduction,orexternalfactors substitute for the building being appraised, that make a property less desirable and using modern materials and current valuableforacontinueduse;maybeeither standards, design, and layout. (Dictionary, functional or external. (Dictionary, 5th 5thEdition) Edition) RetrospectiveValueOpinion ParkingRatio A value opinion effective as of a specified Aratioofparkingareaorparkingspacesto historical date. The term does not define a aneconomicorphysicalunitofcomparison. type of value. Instead, it identifies a value Minimumrequiredparkingratiosofvarious opinion as being effective at some specific land uses are often stated in zoning prior date. Value as of a historical date is ordinances.(Dictionary,5thEdition) frequently sought in connection with propertytaxappeals,damagemodels,lease ProspectiveOpinionofValue renegotiation, deficiency judgments, estate A value opinion effective as of a specified taxandcondemnation.Inclusionofthetype futuredate.Thetermdoesnotdefineatype of value with this term is appropriate, e.g., ofvalue.Instead,itidentifiesavalueopinion “retrospective market value opinion.” as being effective at some specific future (Dictionary,5thEdition) date.Anopinionofvalueasofaprospective dateisfrequentlysoughtinconnectionwith ScopeofWork projects that are proposed, under Thetypeandextentofresearchandanalyses construction,orunderconversiontoanew inanassignment.(Dictionary,5thEdition) use, or those that have not yet achieved sellout or a stabilized level of longͲterm occupancy.(Dictionary,5thEdition) RentableArea StabilizedOccupancy

Anexpressionoftheexpectedoccupancyof a property in its particular market considering current and forecasted supply anddemand,assumingitispricedatmarket rent.(Dictionary,5thEdition) SurplusLand Landthatisnotcurrentlyneededtosupport the existing improvement but cannot be separated from the property and sold off. Surpluslanddoesnothaveanindependent highest and best use and may or may not contribute value to the improved parcel. (Dictionary5thEdition) TenantImprovements(TIs) 1. Fixed improvements to the land or structuresinstalledandpaidforusebya lessee. 2. Theoriginalinstallationoffinishedtenant spaceinaconstructionproject;subjectto periodic change for succeeding tenants. (Dictionary,5thEdition) VacancyandCollectionLoss A deduction from potential gross income (PGI)madetoreflectincomereductionsdue to vacancies, tenant turnover, and nonͲ payment of rent; also called vacancy and creditlossorvacancyandcontingencyloss. Often vacancy and collection loss is expressedasapercentageofpotentialgross income and should reflect the competitive market.Itstreatmentcandifferaccordingto theinterestbeingappraised,propertytype, capitalization method, and whether the property is at stabilized occupancy. (Dictionary,5thEdition)