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

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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
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