APPRAISAL REPORT Prepared For: Daniel A. Rosemond CRA Director/Deputy City Manager City of Hallandale Beach 400 S Federal Hwy Room 124 Hallandale Beach, FL 33009 Property Appraised: 605 N Dixie Hwy Hallandale Beach, FL 33009 Date of Valuation: October 16, 2013 Date of Appraisal: October 24, 2013 Prepared by: L. B. Slater and Company, Inc. 603 N Federal Highway Suite 1 Hollywood, Florida 33020 L.B. Slater & Company Inc. 13678 Real Estate Appraisers & Consultants October 24, 2013 Dear Mr. Rosemond: As requested, we’ve inspected and appraised the one-story building located at 605 N Dixie Hwy, Hallandale Beach, FL 33009 for the purpose of estimating the current market value. We understand the intended use of this report is to assist with an internal decision for the City of Hallandale Beach. Based on the data gathered and analyzed by the appraiser, current market conditions suggest the market value of the fee simple interest as of October 16, 2013 is: Six Hundred Fifty Six Thousand Dollars or $ 656,000 This transmittal letter is followed by our certification and with a Summary Appraisal Report, our PDF file 13678 containing 42 pages. The report further describes the subject property and contains the reasoning and pertinent data leading to the estimated value. Additional Certification required in the new edition of USPAP regarding a revision of Standard 2 that requires all appraisal reports to include a certification statement to disclose any services regarding the subject property performed by the appraiser within the 3 years prior to the assignment. That disclosure to the client at the time of the assignment was added in the last edition of USPAP. The new edition of USPAP now requires the appraiser to disclose whether or not any such prior services were provided as an additional certification statement. Thus: "I have performed one service, as an appraiser, regarding the subject property of this report within the three year period immediately preceding acceptance of this assignment." Respectfully submitted, L. B. SLATER & COMPANY, INC. Murdo Mackenzie State-Certified General Real Estate Appraiser RZ2779 FL L.B. Slater & Company Inc. 13678 Real Estate Appraisers & Consultants CERTIFICATION I hereby certify that to the best of my knowledge and belief, and except as otherwise noted in this appraisal report: The statements of fact contained in this appraisal report are believed to be true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, unbiased, professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. Neither the appraisal assignment nor our compensation is contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. My analyses, opinions and conclusions were developed, and this report has been prepared in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice. The following person(s) signing this report has made a personal inspection of the subject property on October 16, 2013. Murdo Mackenzie No person, unless so stated, provided significant professional assistance to the person signing this report. L.B. SLATER & COMPANY, INC. Murdo Mackenzie State-Certified General Real Estate Appraiser RZ2779 FL L.B. Slater & Company Inc. 13678 Real Estate Appraisers & Consultants TABLE OF CONTENTS C O N D I T I O N S O F THE A P P R A I S A L ...................................................................................................... 1 S U M M A R Y O F S A L I E N T F A C T S A N D C O N C L U S I O N S .......................................................... 4 I N T E N D E D U S E O F T H E R E P O R T........................................................................................................ 5 P U R P O S E OF T H E A P P R A I S A L..................................................... ... .... ........................................ …..6 S C O P E O F T H E A P P R A I S A L………………………………………………………… …………………...7 P R O P E R T Y R I G H T S A P P R A I S E D ....................................................................................................... 7 P R O P E R T Y I D E N T I F I C A T I O N ............................................................................................................. 8 O W N E R S H I P ......................................................................................................................................... 8 P R O P E R T Y H I S T O R Y .................................................................................................................... 8 LOCATION MAP……………………………………………………………………………………………………. 9 REGIONAL ANALYSIS ............................................................................................................................. 10 NEIGHBORHOOD ANALYSIS .................................................................................................................. 10 S I T E D A T A ........................................................................................................................................................ 11 PLAT MAP……………………………………………………………………………………………………………12 Z O N I N G ................................................................................................................................................................ 13 D E S C R I P T I O N O F T H E I M P R O V E M E N T S ................................................................................ 14 S U B J E C T P H O T O G R A P H S & SKETCH ................................................................................. 15 H I G H E S T A N D B E S T U S E ....................................................................................................................... 20 D I S C U S S I O N O F T H E A P P R A I S A L P R O C E S S ........................................................................ 22 SALES COMPARISON A P P R O A C H ................................................................................................................ 23 INCOME APPROACH…...…………………………………………………………………………………………..32 R E C O N C I L I A T I O N A N D V A L U E C O N C L U S I O N ................................................................. 35 R E S U M E & L I C E N S E………………………………………………………………………………………..36 L.B. Slater & Company Inc. 13678 Real Estate Appraisers & Consultants 1 CONDITIONS OF THE APPRAISAL: GENERAL UNDERLYING ASSUMPTIONS Legal Matters: The legal description used in this report is assumed to be correct, but it may not necessarily have been confirmed by survey. No responsibility is assumed in connection with a survey or for encroachments or overlapping or other discrepancies that might be revealed thereby. Any sketches included in the report are only for the purpose of aiding the reader in visualizing the property and are not necessarily a result of a survey. No responsibility is assumed for an opinion of legal nature, such as to ownership of the property or condition of title. The appraisers assume the title to the property to be marketable; that, unless stated to the contrary, the property is appraised as an unencumbered fee which is not used in violation of acceptable ordinances, statutes or other governmental regulations. Unapparent Conditions: The appraisers assume that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable than otherwise comparable property. The appraisers are not experts in determining the presence or absence of hazardous substances, defined as all hazardous or toxic materials, waste, pollutants or contaminants (including, but not limited to, asbestos, PCB, UFFI, or other raw materials or chemicals) used in construction or otherwise present on the property. The appraisers assume no responsibility for the studies or analysis which would be required to conclude the presence or absence of such substances or for loss as a result of the presence of such substances. The client is urged to retain an expert in this field, if desired. The value estimate is based on the assumption that the subject property is not so affected. Information and Data: Information, estimates, and opinions furnished to the appraisers and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the appraisers can be assumed by the appraisers. All mortgages, liens, encumbrances, and servitudes have been disregarded unless so specified within the appraisal report. The subject property is appraised as though under responsible ownership and competent management. Zoning and Licenses: It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconforming use has been stated, defined and considered in the valuation. It is assumed that the subject property complies with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the valuation.