Loading...
Appraisal Mineral Hills TURKEY HILL Jedoron Realty 6.24.2011Appraisal Co., Inc A Summary Report of an Appraisal for The Real Estate Located at Turkey Hill Road Florence, MA Date of Appraisal June 24, 2011 Prepared for Ms. Sarah L LaValley Conservation, Preservation and Land Use Planner City of Northampton Prepared by Daniel J. Gleason, MA Licensed Appraiser Trainee #102916 Stephen A. Brunelle, MA Certified General Appraiser #233 P. O. Boa 1267, Noilhainpton, MA 01061- 1267413 -.586 -5252 FAX: 413 - 584 -0490 e- mail,` hifo tx fsiapptaisal.com Cz Appf•Ais,a[ Cu_ Inc June 29, 2011 Ms. Sarah 1. LaValley Conservation, Preservation and Land Use Planner City ofNorthampton Office of Planning and Development 210 Main Street, Room 11 Northampton, MA MOW RE: Turkey Hill Road, Florence, MA Northampton Assessors' Map 34, Lot 35 Owner: Jedoron Realty, Inc. Dear Ms. LaValley: At your request we have personally inspected the land owned by Jedoron Realty, Inc. The subject consists of a single parcel of vacant land that contains approximately 5.2881 -acres located along Turkey Hill Road in the Florence section of Northampton, MA. The subject has been proposed for possible acquisition in its entirety by the City of Northampton. According to Wayne Fieden, Director of Planning and Development for the City of Northampton, there is no signed formal agreement, only an Option for the Purchase of Land. The subject is currently not listed for sale. A site inspection was conducted on June 24, 2011. The inspection was conducted by the appraisers, Daniel J. Gleason and Stephen Brunelle. The owner's representative Ron Dahle was contacted and offered an opportunity to participate in the inspection, but declined. This Appraisal Report is based on site conditions that were evident at the time of inspection. According to the city's zoning map the subject site is located in the RR- Rural Residential Zoning District, which calls for a minimum frontage of 175 -feet and a minimum lot size of 80,000 square feet. The site frontage of 893.60 -feet is located along Turkey Hill Road, a public way. Turkey Hill Road, in the area of the subject is little more than a dirt road, passable by off road vehicles only. There are several rudiment access roads /paths throughout the property, but none are suitable for automobiles. 1'_ 0, Boi /` ?67, Nortltwoplon, AIA 010,)1-1207 413-586-5252 FAT: 413-584-04QO C -r lad: i1716 caj iappraisal.co1r) 2 The purpose of this Appraisal is to offer an opinion of Market Value for the subject parcels. This Appraisal was performed in accordance with the Uniform Standards of Professional Appraisal Practices (USPAP) and the Commonwealth of Massachusetts Executive Office of Energy ,& Environmental Affairs (EOEEA), Department of Environmental Protection Grant Program in formulating the value conclusions contained within this Summary /Appraisal Report. The analysis and conclusions within the attached Summary /Appraisal Report are based on field research, interviews with market participants and publicly available data collected by the appraisers. This is a Summary /Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2 -2 (b) of the Uniform Standards of Professional Appraisal Practices. INTENDED USE OF THIS REPORT This Appraisal is intended to assist the client, the City of Northampton, by offering an opinion of Market Value for possible acquisition. In the scope of this Appraisal, we researched the City of Northampton and the surrounding Market Area and were able to locate adequate, comparable sales of vacant, developable land with which to develop the Sales Comparison Approach for offering an opinion of the "as is" Market Value for the subject site. This included an in -depth analysis of the Highest and Best Use for the subject. Turkey Hill road, Northampton, MA 6 -11 3 It is our opinion that the "as is" Market Value of the fee simple interest the subject site, as of June 24, 2011, is: FINAL OPINION OF VALUE CONCLUSION ONE, HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,000) This opinion of value is subject to the Certification, Contingent and Limiting Conditions and Restriction upon Disclosure contained in this report. Respectfully submitted, Duel I G eason MA Licensed Trainee Appraiser License #102916 Sty en A. BAinelle MA Certified General Appraiser License #233 DJG /SAB /cvb Turkey Hill Road, Northampton, MA 6-11 Turkey Hill Road, Northampton, MA 6 -11 5 TABLE OF CONTENTS Letter of Transmittal, Intended Use ................................................... ............................1 -3 Tableof Contents ............................................................................ ............................... 5 Certificate of Value, Additional Certification .................................... ...........................7 -10 Statement of Limiting Conditions, Executive Summary, Plan of Land ...................... .11 -14 Identification of Real Estate, Real Estate Taxes, Sales History ....................... ............. 15 -16 Market Value Defined, Scope of the Appraisal ................................... ..........................17 -19 Location, Market and Area Analysis ................................................... ..........................19 -27 Site Description, Subject Photographs ................................................. ..........................28 -30 Factors Affecting Use of the Property ................................................. ..........................31 -36 Highestand Best Use ................................................. ..................................................... 37 -38 Methods of Approach to Value, Valuation Methodology .............. ............................... 39 -40 The Sales Comparison Approach to Value .......................... .......................................... 41 -50 Reconciliation and Final Value of Opinion ...................................... .............................51 Addenda........................................................................................... ............................... 52 Turkey Hill Road, Northampton, MA 6 -11 Turkey Hill Road, Northampton, MA 6 -11 VA Owner(s): Jedoron Realty, Inc. Address/Location of Property: 364 Turkey Hill Road, Florence, MA CERTIFICATE OF VALUE We, Daniel J. Gleason and Stephen A. Brunelle HEREBY CERTIFY TIIE FOLLOWING: THAT ON June 24, 2011, WE PERSONALLY MADE A FIELD INSPECTION OF THE PROPERTY HEREINAPPRAISED and PROVIDED THE OWNER THE OPPORTUNITY TO OCCOMPANY THE APPRAISERS ON THE INSPECTION, HOWEVER, THEY DECLINED; That, to the best of our knowledge and belief, the statements contained in the Appraisal here set forth are true and the information upon which the opinions expressed herein are based, is correct, subject to the Limiting Conditions therein set forth; That, we understand that such an Appraisal may be used in connection with the acquisition of'the subjectproperty by the City of Northampton, Massachusetts; That such Appraisal has been made in conformity with the appropriate state laws, regulations, policies, specifications and procedures; That, neither our employment nor our compensation for making this Appraisal Report is in any way contingent upon the values reported herein; That, we have no direct or indirect, present or contemplated future personal interest in said property or in any benefitfrom the acquisition ofsaid property appraised; and That„ we have not revealed the findings and results of said Appraisal to anyone other than the proper officials of the City of Northampton and, we will not do so until so authorized by the City of Northampton or until we are required to do so by due process of law or until we are released from this obligation by having publicly testified in a court of law as to such findings; and Turkey Hill Road, Northampton, MA 6 -11 THAT, OUR OPINION OF THE VALUE FOR THE PROPERTY AFFECTED BY THE PROPOSED ACQUISITION, AS OF THE 20 day of June, 2011 is $125,000 for the 5.2881 -acres of land and buildings (if any) thereon. THE CONCLUSIONS SET FORTHEV THIS APPRAISAL ARE BASED ON THE EXERCISE OF OUR INDEPENDENT, PROFESSIONAL JUDGEMENT. DATE: �';% �� /.�f% SIGNATURE.- �'`� . Sd'L Daniel J. G4feason MA Licensed Trainee Appraiser License #102916 DATE: Co 70 go// SIGNATURE: St hen A. runelle MA Certified General Appraiser License #233 Turkey Hill Road, Northampton, MA 6 -11 W ADDITIONAL CERTIFICATION We, Daniel J. Gleason and Stephen A. Brunelle, certify that to the best of our knowledge and belief that: •. The facts and data reported and used in the valuation process are true and correct; •. The reported analyses, opinion and conclusions are limited only by the reported Assumptions and Limiting Conditions and are our personal, unbiased professional analyses and conclusions; We have no present or prospective interest in the property that is the subject of this report and we have no personal interest or bias with respect to the parties involved; •: The value opinion found within was not based on a requested minimum valuation, a specific valuation or the approval of a loan; Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result or the occurrence of a subsequent event directly related to the intended use of this Appraisal; •. Our analyses, opinions and conclusions were developed and this report has been prepared, in accordance with the requirements of the Code of Professional Ethics and Standards of Professional Practices of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practices (USPAP) as adopted by the Appraisal Standards Board of the Appraisal Foundation; This report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives; Turkey Hill Road, Northampton, MA 6 -11 10 e• Appraisers, Daniel J. Gleason and Stephen A. Brunelle personally inspected the property that is the subject of this report, No one provided significant professional assistance to the persons signing this report; .• Appraiser, Stephen A. Brunelle has completed the requirements under the continuing education program of the Appraisal Institute; s FSI Appraisal Company, Inc. has not performed any services regarding the subject property within the prior three- years; as appraisers or in any other capacity Daniel J. Gleason MA Licensed Trainee Appraiser License #102916 St-Of hen A. brunelle MA Certified General Appraiser License #233 Turkey Hill Road, Northampton, MA 6 -11 11 STATEMENT OF GENERAL AND LIMITING CONDITIONS This report has been prepared under the following Assumptions and Limiting Conditions: 1. Information funushed by others is assumed to be true, factually correct and reliable. No effort has been made to verify such information and no responsibility for its accuracy is assumed by the appraisers. Should there be any material error in the Assumptions within this report the results of this report are subject to review and revision. 2. All mortgages, liens and encumbrances (except lease documents) have been disregarded unless so specified within this report. The subject site is analyzed as though under responsible ownership and competent management. It is assumed in this analysis that there were no hidden or apparent conditions at the property's subsoil or structures, which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering, which may be required to discover them. No responsibility is assumed for legal matters existing or pending, nor is opinion rendered as to title, which is assumed to be good. 3. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless non - compliance is noted. 4. It is assumed that all applicable zoning and use regulations have been complied with, unless a non - conformity has been stated, defined and considered in the analysis. 5. It is assumed that all licenses, consents or other legislative or administrative authorities from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in this report is based. 6. Possession of this report or a copy there -of does not carry with it the right of publication. 7. The appraisers assume that there is no hazardous waste contaminating the sub - soils. The appraisers are not qualified to detect such substances on the site or to value the affects of such substances on the value of the property. 8. Unless prior arrangements have been made, the appraisers, by reason of this report, are not required to give ftiuther consultation or testimony or to be in attendance in court with reference to the property that is the subject of this report. Turkey Hill Road, Northampton, MA 6 -11 12 9. The conclusions apply only to the property specifically identified and described herein. 10. The appraisers have made no legal survey nor have they commissioned one to be prepared. Therefore, references to a sketch, plat, diagram or previous survey appearing in this report is only for the purpose of assisting the reader to visualize the site. 11. Disclosure of the contents of this report is governed by the by -laws and regulations of the Appraisal Institute.. 12. Stephen Brunelle is a fully qualified commercial appraiser who has been involved in the valuation and/or review of many similar properties. The education and experience in valuing and reviewing similar properties satisfies the competency provision of USPAP. The qualification of the appraisers are in the Addenda section of this report Extraordinary Assumptions or Limiting Conditions are: This Appraisal makes the Assumption that at least one successful percolation test is possible, which is based on a conversation with the owners representative, the City of Northampton Planning Department, a visual site inspection and that at least one building lot will be approved by the City of Northampton. Daniel J. Gleason MA Licensed Trainee Appraiser License #102916 St hen A. Arunelle MA Certified General Appraiser License #233 Turkey Hill Road, Northampton, MA 6 -11 13 EXECUTIVE SUMMARY PROPERTY LOCATION: Turkey Hill Road, Florence, MA INTERESTS APPRAISED: Fee Simple Interest OWNER OF RECORD: Jedoron Realty, Inc. DEED REFERENCE: Hampshire County Registry of Deeds Book 2875, Page 165 ASSESSORS' REFERENCE: Map 34, Lot 35 ASSESSMENT (FY 2011) $253,500 ZONING: Rural Residential (RR) Zoning District SITE: 5.2881 -acres IMPROVEMENTS: None HIGHEST AND LEST USE: Residential Development EFFECTIVE DATE: June 24, 2011 OPINION OF VALUE: $125,000 Turkey Hill Road, Northampton, MA 6 -11 14 PLAN OF LAND (5zi r 2'3t4 ROAD �lFS J Turkey Hill Road, Northampton, MA 6-11 15 IDENTIFICATION OF THE REAL ESTATE The subject site is located along the southerly side of Turkey Hill Road in Florence, MA. The property consists of a single parcel of undeveloped land. The site is identified in the Northampton Assessors' Office as Map 34, Lot 35. The subject is currently owned by Jedoron Realty, Inc. A legal reference is recorded in the Hampshire County Registry of Deeds in Book 2875, Page 165 and Plan Book 211, Page 12 and Plan Book 214, Page 21. A copy of the deed and is included in the Addenda section of this report. Assessors' Mgp A portion of the site lies within the Water Shed. Protection area, shaded area within yellow highlighted area. Turkey Hill Road, Northampton, MA 6 -11 16 REAL ESTATE TAXES According to the city of Northampton Tax Assessors' Office the subject site is located on Map 34, Parcel 35, According to the FY 2011 tax assessment the site is assessed at $253,500. The FY 2011 tax rate is $12.96 per thousand dollars of valuation. In addition, there is a Community Preservation Act (CPA) tax assessed to all properties within the city. The rate is 3% of the tax based on the assessed value less $100,000 for residential properties and full assessment for commercial properties. Therefore the total tax burden for the subject is $3,345.04. According to the city of Northampton Tax Collector's Office, there are no back taxes owed on the subject site. SALES HISTORY Jedoron Realty, Inc. acquired the subject site (5.2881- acres), as a portion of a larger parcel (approximately 53 -acres) of land from James F. and Christine Wzorek for $80,000 consideration via warranty deed on December 18, 1986. This transaction is recorded in the Hampshire County Registry of Deeds in Book 2875, Page 165, The City of Northampton has an option to purchase the subject, from Jedoron Realty, Inc. Under the terms of the option the City of Northampton has established a purchase price of $131,400. The subject is not currently being marketed for sale nor has it been offered for sale within the past year, PURPOSE AND INTENDED USE The Purpose of the Appraisal is to offer an opinion of the "as is" Market Value of the fee simple interest for the subject site. The Intended Use of the Appraisal is to provide an opinion of value that will assist the client in establishing an "as is" Market Value for possible acquisition and funding of that acquisition utilizing the Commonwealth of Massachusetts Land Grant program. DEFINITION OF FEE SIMPLE ESTATE Absolute ownership unencumbered by any other interest or estate; subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, escheat. (Source: The Dictionary of Real Estate Appraisal, 5t` edition, Appraisal Institute). Turkey Hill Road, Northampton, MA 6 -11 17 EFFECTIVE DATE OF THE APPRAISAL The Effective Date of this Appraisal Report is June 24, 2011, the date of the last inspection. General Assumptions and Limiting Conditions applicable to this Appraisal Report are attached to this report. EXPOSURE PERIOD AND MARKETING TIME The property sales indicated that Exposure Time, i.e., the length of time the subject site would have been exposed for sale in the market, had it sold at Market Value, would be approximately six to twelve- months. The estimated Marketing Time is the amount of time required to sell the subject parcels if exposed in the market. We estimate that the Marketing Time would be six to twelve- months beginning on the date of this valuation. DEF SITION OF MARKET VALUE The most probable cash price, which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably and, assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and, the passing of title from seller to buyer under conditions whereby; 1) Buyer and seller are typically motivated, (i.e., motivated by self - interest). 2) Both parties are well informed or well advised and acting in what they consider their own best interests. 3) As reasonable time is allowed for exposure in the open market. 4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto. 5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. [Federal RegisterNolume 75, No, 237, December 10, 20101 Turkey Hill Road, Northampton, MA 6 -11 is SCOPE OF THE APPRAISAL This valuation is an Appraisal presented in a Summary Report. Scope of the Assignment: The development of this Appraisal Report included, but was not limited to, the following: .• An inspection of the subject site on June 24, 2011 by Daniel J. Gleason and Stephen Brunelle :• A review of the zoning ordinances that governs the subject parcel Gather information on comparable land sales of similar properties in Northampton and the surrounding Market Area e• Confirm and analyze the data and apply the Sales Comparison Approach Determine that the Cost Approach and Income Approach were not applicable in the valuation of the subject, due to the fact that the property is not amenable to either of these two approaches Determine the Highest and Best. Use for the subject site ❖ Determine a conclusion relating to a Market Value opinion and the writing of this Appraisal/Summary Report The information sources have included public records, city /town websites and commercial data collection services. We have also consulted reports concerning real estate and general economic conditions prepared by other professionals. We have spoken with other real estate professionals, owners, tenants and/or managers of other properties in the area as part of the ongoing survey of the market that is maintained for all appraisals. We have obtained some publicly available information from area governments, including other cities, counties and the State of Massachusetts. Regional and city data was also based in part on publicly available demographic information. Miscellaneous data pertaining to the local real estate market was researched through the local media. Comparable sales data was researched in the Hampshire and Franklin County Registry of Deeds, Banker and Tradesman and MLS, as well as from appraisals we have performed. A reasonable attempt was made to confirm the comparable sales and market data with principals, representatives, informed third parties and/or public records. A drive -by of the comparables as well as other properties considered but not used was performed. An inspection of the subject was made for the purpose of describing it and considering its value relative to the comparable properties. This however, is not to be construed as a formal building or site inspection or survey. Throughout this Appraisal, nominal dollar and square foot figures are used. All amounts and figures are believed and assumed to be accurate, but are to be considered as the amount stated more or less, approximately or plus or minus, as appropriate, even when not specifically expressed as such, Turkey Hill Road, Northampton, MA 6 -11 19 All information used in the preparation of this report is believed and assumed but not guaranteed, to be fully and completely accurate. It is assumed that the data, statistics, estimates and opinions furnished by others is correct. Sales comparable data is assumed to be reliable. In some cases we have received data on sales from parties not directly involved in the transactions, but whom we believe are reliable. However, buyers and sellers and others involved in real estate transactions will often not discuss the pertinent facts with outside parties and when they do they do not always relate complete or totally accurate information. LOCATION, MARKET AND AREA ANALYSIS SUMMARY General Market Conditions As reported in MassBenchmarks, a publication of the University of Massachusetts Donahue Institute in cooperation with the Federal Reserve Bank of Boston, reported that "the Leading Economic Index for March was 4.4% and the three -month average for January through March was 4.8 %. The leading index is a forecast of the growth in the current index over the next six- months, expressed as an annual rate." The first quarter 2011 was considered robust but the economy is still considered to be fragile. "Between March 2010 and March 2011, the state's economy grew an estimated 3.7 %. During 2010, the Commonwealth grew at revised annual rates of 6.1% in the first quarter, 0.9% in the second quarter, 3.0% in the third and 3.3% growth in the fourth quarter. The state's pace of growth during the last three quarters of 2010 was very similar to that of the U.S. during the same period. Payroll employment revisions, released earlier this year, reveal that the state's recession was relatively shorter and less severe than the nation experienced. As a result, Massachusetts thus far has performed somewhat better than the U.S. during this recovery." "According the MassBenchmarks Current Economic Index, the state's recession began in June of 2008 and ended thirteen- months later in July of 2009. In contrast, the National Bureau of Economic Research dates the U.S. recession as lasting eighteen- months (December 2007 through June 2009). From peak of employment to its trough, Massachusetts lost 4.3% of its payroll jobs while the nation lost 6.3% during the recession. Payroll employment in the Bay State has grown by 1.6% from its trough as compared to 1.2% for the nation." The housing market continues to struggle and has been characterized as a buyer's market. There are signs of a modest recovery. However, foreclosures continue to place additional burdens on the market. Much of the early 2010 real estate activity was a result of the $8,000 federal tax credit offered to first time home buyers on properties that went under contract by April 30, 2010. Many of the closings took place during the second and third quarter of 2010. Other government action, like lower interest rates and an infusion of capital has done little to improve on bank lending for real estate, Turkey Hill Road, Northampton, MA 6 -11 20 Mortgage rates remain mixed by strength of credit rating. Buying activity in the region for the different real estate types is slower than what has been experienced in years past, there is no consensus yet about the continuing pace or ultimate extent of the present real estate cycle. Changes imposed by the secondary mortgage market underwriting requirement's and the failure of FNMA and FHLMC have placed additional pressure on the real estate market. Many economists believe the recovery of the residential real estate market will be very slow and protracted. National and Regional Commercial Market The credit crisis and recession has dragged commercial real estate markets into a difficult period, marked by value losses, rising foreclosures and reduced property values. Late in the game investors who heavily leveraged acquisitions at peak market prices face significant hurdles to meeting department set-vice requirements as weakening tenant demand results in rising vacancies and slackening rents across most property sectors. Long term owners employing reasonable financing strategies have managed their way through the downturn. Lender problems have extended from residential portfolios into commercial real estate loans, the results of lacks lending policies. Developers are currently confronted with dwindling capital market participants. Always favored, industrial properties have weakened in the consumer downturn as fewer goods are shipped and distributed. Businesses have stop expanding or are downsizing, which in turn has hurt the office market. Hotels suffer because businesses and tourists cut back from discretionary travel. As reported in U.S. Capital Trends "low interest rates are responsible for much of the improvement in the investment markets in 2010. However, it appears that 2011 could be characterized by rising interest rates. But this does not mean that capitalization rates too, will rise. Rising interest rates would certainly put upward pressure on capitalization rates, but there will not be a one -to -one relationship between the two. Much of how capitalization rates react will depend on why interest rates are going up in the first place, but in the most likely scenarios, the correlation between interest rates and capitalization rates will be low. Moreover, there is a cushion in spreads of both property yields and mortgage rates that can absorb much of any initial increases in base rates and possibly allow capitalization rates to fall a bit more if the rise in rates is not too steep. Turkey Hill Road, Northampton, M.A. 6 -11 21 Aerial Photo Area Anal Northampton is located in Hampshire County, in western Massachusetts. It is bordered to the east by the Connecticut River and Hadley, the south by Easthampton, the west by Westhampton and the north by Williamsburg and Hatfield. The city covers an area of 34.69 square miles. Northampton was founded as a town in 1654 and was granted a city charter in 1883. The cities elected officials who oversee its day to day operation are the mayor and the nine - member city council. According to the 2010 United States Federal Census, the population of Northampton was 28,549, a 2.1% decrease from the 2000 United States Federal Census figure of 28,978. This calculates to a density of 823 people per square mile. Turkey Hill Road, Northampton, MA 6 -11 22 According to information provided by the Department of Housing and Community Development, there are a total of 19,575 registered voters in Northampton, with Democrats comprising (48.5 %), Republicans comprising (7.4 %), other parties (.02 %) and unenrolled voters comprising (43.9 %) people, Additional DHCD information puts the total number of housing units at 12,405, with 11,880 of the housing units occupied, which is a 95.8% occupancy rate. There are 508 state subsidized housing units and 110 federally subsidized public housing units. In terms of rental assistance, there are 41 state subsidized rental units and 128 federally subsidized rental units. Of Northampton residents, approximately 77.5% work in Hampshire County and 57% work within their own community. Approximately 4,110 people work in Northampton who commutes from other towns. Williamsburg, Hatfield and Easthampton supply the highest proportion of commuting workers. Of the counties within. Western Massachusetts, Hampshire County has the lowest unemployment rate. Northampton is serviced by a good highway system. Interstate Route 91, which runs north and south, offers access in three locations within the city. Route 9 runs east and west, connecting Northampton with other surrounding communities and employment centers. Northampton is a member of the Pioneer Valley Transit Authority (PVTA), which provides fixed route service and offers Para - transit services to the elderly and disabled. The city offers a variety of employment opportunities. According to the Division of Employment and Training (DET), over the past year, the labor force in Northampton has ranged from a low of 16,206 to a high of 16,647 people. The unemployment rate from May of 2010 to April 2011 ranged from a low of 5.1% (April 2011) to a high of 6.6% (July 2010) and has been consistently lower than the state average, which ranged from a low of 7.4% (May 2011) to a high of 89% (January 2011) over the same timeframe. State and Local Unemployment Rate 10 - 9 -- .. j 8 �- 7 — - m 6 - —° 4 - - CL E 3 r- 2 -- 1 p - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N c-! '�I rl r-I r-I rl e-i -I i 3 W n O!1 H rH r!i N m dam' �rY Area Rate Massachusetts Rate Turkey Hill Road, Northampton, MA 6 -11 23 Historically, the three major employment sectors in Northampton have been government agencies at all levels, manufacturing jobs and trade jobs. The school system is regarded as one of the best in the state. There are nine schools, with grades ranging from kindergarten to grade - twelve of high school. Smith College, one of the oldest and most prestigious women's colleges in the country, is located in the heart of the city. Other colleges located less than fifteen -miles away include the University of Massachusetts, Amherst College, Hampshire College and Mount Holyoke College. The city provides an attractive location for retail firms, business support services and restaurants. The Hampshire County Courthouse not only brings people into the city, but its activities necessitate the location of professional offices and services nearby. Location Map Subject 4 6 t) rP a �� + Northatlipton, I n� ��ltrllles jt �v. 6 RY an � Turkey Hill Road, Northampton, MA 6 -11 V9 Market Area The subjects' Market Area is considered to be the western section of Northampton in what is referred to as the Upper Reservoir in the village of Leeds. The subject is more specifically located along the southerly side of the Chesterfield Road and Montague Road intersection. The parcel is located approximately five -miles west of the center of Northampton. The Market Area is almost exclusively residential in nature with a rural character to the surrounding landscape. The dwellings in the immediate area range from affordable to high -end houses, with some upscale developments branching off of Kennedy Road. The Upper Reservoir and Roberts Meadow Reservoir, which provides drinking water to the Northampton community, are located nearby. The city has taken an aggressive approach to purchasing surrounding properties for the purpose of restricting development and preserving open space for recreational use. The City of Northampton owns several parcels in the immediate area. The regional landfill and transfer station is located roughly four -miles southeast of the subject. Plans to expand the landfill operation have had a profound impact on the marketing of residential properties in the immediate area. Within the past year the city has purchased two abutting properties of the landfill from homeowners who were vocal opponents of its expansion. A Preliminary Subdivision Plan Approval was granted by the planning board on December 10, 2009 for a residential development located off Westhampton Road called Kensington Estates. In a memorandum from the Department of Public Works to the Office of Planning and Development dated December 9, 2009, it was stated that "The subdivision is proposed within close proximity to the existing Northampton Sanitary Landfill and the proposed landfill expansion. Deed or covenant language shall be required that informs each property owner of the existence of this facility and restricts each landowner from bringing suit against the city regarding the landfill as long as the facility is in compliance with Massachusetts DEP regulations ". According to the Kensington Estates subdivision plan, there will be twenty -four residential building lots with 1,751 linear feet of roadway that will run between Westhampton Road and Glendale Road. The lots vary in size from 14,300 to 38,283 square feet with the vast majority of the lots in the 17,000 to 26,000 square foot range. The property is located in the RR -Rural Residence Zoning District, which requires a minimum of 80,000 square feet for a building lot. In addition, the property is in the WS- Watershed Protection Overlay District and the WSP -Water Supply Protection Overlay District. An Open Space Residential Development allows for 10,000 square foot lots with 85 -feet of frontage as long as at least fifty (50) percent of the total tract area, of which at least seventy -five (75) percent shall be neither wetlands nor floodplains, shall be set aside as Common Open Space with no buildings allowed. Other- projects either approved or in the development process in Northampton include the following: Turkey Hill Road, Northampton, MA 6 -11 25 A subdivision off Evergreen Road in Leeds called Beaver Brook Estates is under construction. The project consists of a twenty -five lot cluster development. The project received final approval on April 9, 2008. The road, base coat and utilities have been installed. The lots range in size from 10,000 square feet to over an -acre. The project is sited on 68.99 -acres of which 28.49 -acres is to be developed and 40.50 -acres to be donated to the city as conservation land. The development is underway and has been actively marketed through various sources. Another project is the North Campus portion of the Village at Hospital Hill, which has eight building lots that are scheduled to be developed with a total of one - hundred - thirty -nine residential units in addition to the thirty -three existing units at the Hilltop Apartments and the twenty -six units already built at the Iee Pond subdivision. The eight lots are to be developed with a combination of sale units (ninety -nine) and rental units (forty) that will be composed of either townhouse units, mansion units (apartment style) or single - family houses. As of the writing of this report a total of seventy -three apartments units have been constructed with the recent completion of six buildings, which houses forty of these apartments. A total of fifty -eight apartment units are designated as affordable and the remaining fifteen apartment units are rented at market rates. Eight single - family homes have been constructed or are in various stages of construction by Wright Builders along Olander Drive. Twelve condominium units have been built or are in the process of being built along the Eastveiw Lot, located at the southwest corner of Moser and Olander Streets. All but one of these units are sold or under agreement. The developers have completed the extension of Mosher Street and an RFP has been issued for the construction of twenty -six residential lots. Emerson Way, formerly known as The Oaks subdivision, is comprised of fifty -five building lots in a cluster development located off of Burts Pit Road in Northampton. One of the lots ( #56) was sold in a non - market sale. The lots vary in size from 9,672 to 57,941 square feet, with the vast majority of lots in the 10,000 to 14,000 square foot range. There are forty -five (45) single - family lots, four (4) duplex lots for affordable housing and five (5) flag lots within the subdivision. The site is located off of Burts Pit Road, along Emerson Way in the SR- Suburban Residence Zoning District, which requires a minimum of 30,000 square feet for a building lot. However, a cluster development allows for 10,000 square foot lots as long as at least fifty (50) percent of the total tract area, of which at least seventy -five (75) percent shall be neither wetlands nor floodplains, shall be set aside as Common Open Space with no buildings allowed. The planning board however, did allow one of the lots ( #14) to be undersized at 9,672 square feet. The five flag lots are also undersized at less than the required 60,000 square feet (twice the required zoning minimum). The Emerson Way subdivision has access from two curb cuts off of Burts Pit Road. The site is located just west of the Platinum Circle intersection. Turkey Hill Road, Northampton, MA 6 -11 26 The developer had planned to bring the development on line in three phases. According to that plan twenty -eight lots would be serviced by the Northampton municipal water and sewer system and twenty -six lots would be serviced by a private water system but will have public sewer. All underground utilities have been installed. Paving that includes the base coat is installed on roughly two- thirds of the road. Both the entryway and emergency access road is finished and the detention pond has been completed. The subjects' Market Area, which is mostly rural in character, is currently stable and should remain so for the foreseeable future. According to Bankers and Tradesman the average price for lots in Northampton for 2001 through the current date is as follows: Year # of Lot Sales Ave Sale Price 2001 14 $ 75,892 2002 27 $ 83,885 2003 23 $103,185 2004 22 $ 93,977 2005 19 $132,710 2006 9 $134,222 2007 3 $131,667 2008 9 $150,278 2009 7 $118,571 2010 9 $119,411 2011(YTD) 5 $117,000 According to MLS Property Information System the average price for lots in Northampton for 2005 through 2010 is as follows: Year # of Lot Sales Average Sale Price DOM 2005 13 $141,808 70 2006 6 $158,442 153 2007 7 $179,714 164 2008 5 $134,400 248 2009 4 $115,938 318 2010 9 $119,411 153 2011(YTD) 3 $116,500 231 According to the Warren Information Systems, the median sales price for single - family homes in Northampton is presented on the following page. Warren Information Systems bases its statistics on any transfers with prices greater than $1,000 and that foreclosure deeds have been excluded from these statistics. Turkey Hill Road, Northampton, MA 6 -11 II�II III 27 N- th —pt.., MA - 411 prep.01 Number W SM.. I., Cafendwr Vewr � HHA. n °« Nurrinamplon, MA � 51n91u Fondly Med1An SAIe P'im Par CAlendnr near Capyrtght 2011 The Wnlren Gf.up Cupgripht 2011 rile War n Group The data suggests that the median price of single - family homes in Northampton was stable from the time period beginning in 1987 through 1999, then progressively increased through 2001 -2005 indicating a strong demand for single - family homes. Single - family home prices peaked during the 2005 year and has been steadily declining since, although has stabilized somewhat in the previous twenty -four months. In the past, Northampton has enjoyed a reputation as an active housing market. However, according to MLS and The Warren Group statistics, there has been a slowing trend in the market. Currently there are one- hundred- thirty -one active listings of single- family homes. The average list price is $397,482 with an average of 106 -days on the market. The home prices range from $111,000 to $1,295,000. In the past twelve- months there were one - hundred -sixty -four single - family home sales in Northampton. The average list price was $329,855 and the average sale price was $317,090 with an average marketing period of 113 -days. In the past six - months there have been eighty -six single - family home sales. The average list price was $356,307 and the average sale price was $343,580 with an average of 115 -days on the market. There are currently twenty - seven homes under agreement having an average list price of $360,719 with an average marketing time of 78 -days. Turkey Hill Road, Northampton, MA 6 -11 SITE DESCRIPTION The subject site is referred to as Map 34, Parcel 35 on the Northampton Assessors' map and is located along the southerly side of Turkey Hill Road. The road surface of Turkey Hill Road changes from paved to gravel approximately 50 -fect before the subject's frontage. The site is 5.2881 -acres and is irregular in shape with approximately 893.60 -feet of frontage along Turkey Hill Road, which is a very rudimentary dirt road, passable only with off -road vehicles. The site has sufficient frontage and lot size to meet zoning requirements. Public utilities along Turkey Hill Road includes electric, cable television, internet connection and telephone, but end at the paved portion of the road. Additional utility poles would be needed to be installed to bring services to any potential building site.. The subject site would need to be serviced by private well and septic system, which is typical for this area. The frontage along Turkey Hill Road represents the lowest and flattest area of land on the site. All other land on the parcel is higher or elevated from the road. Except for areas that have been cleared for vehicles to access remote section of the parcel, the site is woodlands. Large Oak and Maple trees are the principle large specimen tree vegetation with Mountain Laurel and other shrub and bushes vegetation growing near rock out cropping's and other small open areas. During a site inspection, it was noted that there are several small marshy areas along a brook that travels west to east. The brook appears to originate west of the subject parcel and travels a course that parallels Turkey Hill Road from Westhampton. We are unaware of any wetland studies having been performed on the site, but with brook and marshy areas near or on the subject it appears likely that there would be some limitation to the land. It is unknown whether or not an environmental study has been performed on the site. This Appraisal Report and the value opinion contained herein assumes no potential liability resulting from any soil contamination due to the storage of hazardous waste materials and/or chemical spills that may have occurred on this site over the years. No evidence of contamination or hazardous materials used in the construction or maintenance of any improvements was observed on the date of inspection. The appraisers however, are not qualified to detect such substances, including the existence of urea- formaldehyde, radon gas, foam insulation, asbestos or other potentially hazardous waste materials that may have an effect on the value of the site. We urge the client to retain an expert in this field, if desired. Turkey Hill Road, Northampton, MA 6 -11 24 Topographical Mgp According to the Flood Insurance Rate Map, the subject property is located in Zone C, Map 250167- 0001 -A, which is not considered a flood prone area. Flood Insurance Rate Man Turkey Hill Road, Northampton, MA 6 -11 ' _I usY.vYwsvESe +z9 Vii+ +nYU s amx. - _ I 'UIM C.o Wt as W 91 ;M �l0NMARP UN. f�lf -t - VABStldCill ©SF.775 : 4f'fMfYF Nl�,9ft Y11 r1tlIN3 4 �• ft - = fY Turkey Hill Road, Northampton, MA 6 -11 Ca SCTBJBCT PHOTOGRAPHS View of subject site View of subject site View along Turkey Hill Road View along Turkey Hill Road Turkey Hill Road, Northampton, MA 6 -11 31 FACTORS AFFECTING THE USE OF THE PROPERTY Three types of factors affect the development of raw land, i.e. Physical, Legal and Economic. Physical Characteristics includes wetlands, the drainage classification, structure of the soils and topography. If city water and/or sewer are available, poor soil conditions or difficult topography is less of an impediment to potential development. Zoning and Subdivision Regulations According to the town assessors' zoning map, the subject site is located in a Rural Residential (RR) Zoning District, which requires a minimum lot size of 80,000 square feet for a single - family residence and a minimum lot frontage of 175 -feet. The minimum front setback is 40 -feet, minimum side setback is 20 -feet and rear setbacks are 50 -feet, with a site depth requirement of 200 -feet. Zoning Map a W 0 t 2 O Z 0 Board of Health Regulations Municipal Zoning Districts AT'- BUSinessPw•k C13 - Central Business 1� l:B - General Business } GI - General Industry I Bt - Highway Business AI - Medical NJI - Neighborhood Business Wt - Rural Residential SC ' Special Conservancy Sl. - Special Industry [R , Suburban Residential tilt -.1 -Urban Residence A UR -ii - Urban Residence B t!R• C'- Urban Residence C The board of health follows the Massachusetts State Sanitary Code, Title V for septic systems. The Title V regulations in affect as of March of 1995, requires greater distances between wells and septic systems and requires larger leach fields. We are unaware of any current percolation test at the subject property. The appraisers are making an Extraordinary Assumption that the subject site could be successful perc'd, based on research of soil conditions. Turkey Hill Road, Northampton, MA 6 -11 32 Wetland Regulations The local conservation commission enforces the Massachusetts Wetlands Protection Act that regulates all construction activity within 100 -feet of wetlands, streams and water bodies. Permits must be obtained for all activities including well drilling, excavations and driveways before construction can take place. The wetlands district shall consist of land defined as wetlands by the provisions of the Massachusetts Wetlands Protection Act, M.G.L. Chapter 131, Section 40. The purpose of this district is to protect the wetlands for the City of Northampton by controlling activities deemed to have a significant effect on wetland values. For work proposed to take place in the wetlands district a site plan review must be obtained in the following manner: a submission to the planning board for a determination of non applicability for the Massachusetts Wetlands Protections Act, issued by the conservation commission or an order of conditions covering the work proposed as issued by the conservation commission. Anyone intending to fill, dredge, grade, drain or otherwise alter land within the wetland district must obtain a permit from the building commissioner. A portion of the site lies within the Water Shed Protection area. A brook and marshy areas exist on a portion of the parcel, accordingly, it is likely that these wetland areas may pose some concerns and /or add additional costs to the development potential of the subject site. Massachusetts Rivers Protection Act The Rivers Protection Act, Chapter 258 was enacted in 1996. The law creates a 200 -foot buffer that extends on both sides of rivers and streams. The law does not create a new permitting process, but acts on the strength of the existing procedures under the Wetlands Protection Act. An intermittent stream appears to run through the subject parcel, along the frontage with a possible vernal pool located at the rear of the site. The intermittent stream may pose a concern when developing the subject site. The possible vernal pool at the rear of the site does not appear to impact the property's development potential. Soil Cnndition Soils and topography affect the adaptability of property to be developed. An inspection of the site and research from the United States Department of Agriculture Soil Survey Maps, has determined that the subject site has the following soil conditions: Turkey Hill Road, Northampton, MA 6 -11 33 Approximately 20% of the site or 1 -acre is a gravel pit with most of the natural characteristic removed or shifted. The balance of the site is relatively undisturbed and is made of soils in the Paxton, Sandy -Loam family. Most of the soil, approximately 70 % is Paxton, Fine, Sandy -Loam. PcD- Paxton, Fine, Sandy -Loam (15 -25% slopes) The PeD- Paxton, Fine, Sandy -Loam (15 -25% slopes) is very deep, moderately steep and well drained. The permeability of this soil is moderate in the subsoil and slow or very slow in the substratum. Available water capacity is moderate. Slopes and surface stones make this soil poorly suited to farming. Most areas are in woodlands and some are used as home sites. A seasonal high water table and slope are the main limitation as home sites, roads and septic tank absorption. fields. The 15 -25 % slope accounts for the sites' rugged hilly terrain and woodland. quality. Many developers find this soil easy to work with, because it's easy to move with the proper equipment, but it generally requires bringing in additional, more suitable soils for septic leach fields. Soil Map GCE CaCt � WxG � � F ,,. Wa EE fib i �. �"I D a GnC CFO Pro W,r- Pcc Cn[i a \\ NOg MQfi 'VA / SrA A, HF WPB P PtB ! r id Pe Hap 44 Turkey Hill Road, Northampton, MA 6 -11 N 9M, Supply Sppply and Demand As described in the Market Analysis, there appears to be limited demand for single - family development within Northampton at the present time. According to MLS statistics there are fifty - nine residential building lots currently on the market and fifteen sales in the last twenty -four- months. ADDRESS TOWN Sale Date ACRE DOM SALE PRICE $ /ACRE 110 Cardinal Way Florence, MA 07/09/2009 1.51 253 $135,000 $89,404 Lot 10 Ridge View Road Florence, MA 10/14/2009 0.41 503 115,000 $280,487 Lot 11 Ridge View Road Florence, MA 10/14/2009 0.67 503 $85,000 $126,865 57 Woodland Road Florence, MA 04/19/2010 1.31 191 $100,000 $76,335 Lot 3 Westhampton Rd Florence, MA 05/28/2010 3.78 4 $125,000 $33,068 Lot B Fort Street Northampton 06/28/2010 0.44 36 $110,000 $250,000 Lot 2 Spring Street Florence, MA 07/27/2010 1.83 48 $121,700 $66,502 Lot 3 Spring Street Florence, MA 07/27/2010 1.83 48 $120,000 $66,573 Lot 1 & 2 Spring Street Florence, MA 08/10/2010 1.00 15 $250,000 $250,000 158 Balser Hill Road Florence, MA 11/01/2010 1.50 85 $180,000 $120,000 Lot 4 Ridge View Road Florence, MA 11/05/2010 1.86 848 $105,000 $90,300 Spring Street Florence, MA 08/10/2010 40.00 106 $910,000 $22,750 135 Hillcrest Drive Florence 04/07/2010 0.50 85 $140,000 $280,000 32 Walnut Street Northampton 04/12/2011 0.19 257 $120,000 $631,578 70 Chestnut Ave, Lot 12 Leeds, MA 06/07/2011 0.52 353 $85,000 $163,461 There are currently fifty -nine residential lots available through Multiple Listing Service. The average listing price is $152,665 with an average of 406 -days on market. MLS# Status Street Address Town Acre DOM List Price 70498677 ACT Reservoir Road Northampton, MA 2.57 1657 $189,900 70498678 ACT Reservoir Road Northampton, MA 1.85 1656 $169,900 70605939 ACT Dimock Street Northampton, MA 4.8 1457 $35,000 70736925 ACT Florence Road Northampton, MA 13.36 1179 $475,000 70746391 ACT Turkey Hill Rd Northampton, MA 13.18 1160 $399,900 70790607 ACT Baker Hill Road Northampton, MA 2.36 957 $400,000 70934123 ACT Westhampton Rd Northampton, MA 4.12 739 $225,000 70934124 ACT Westhampton Rd Northampton, MA 3.83 739 $225,000 70952653 PCG Coles Meadow Rd. Northampton, MA 1.07 696 $89,900 70984754 ACT Dunphy Dr L:3 Northampton, MA 2.1 622 $125,000 71005409 ACT AUDUBON RD Northampton, MA 13.66 573 $250,000 Turkey Hill Road, Northampton, MA 6 -11 35 71030720 EXT Westhampton Road Northampton, MA 4.43 499 $213,000 71030727 ACT Westhampton Road Northampton, MA 4,11 499 $213,000 71030728 ACT Westhampton Road Northampton, MA 3.51 499 $213,000 71065227 ACT Chestnut Ave, Ext. Northampton, MA 0.39 430 $92,750 71074057 UAG Upland Rd. Northampton, MA 0.27 392 $99,900 71122448 ACT Ridge View Rd Northampton, MA 0.88 317 $120,000 71122481 ACT Ridge View Rd Northampton, MA 0,65 316 $120,000 71122486 ACT Ridge View Rd Northampton, MA 0.42 316 $120,000 71122501 ACT Ridge View Rd Northampton, MA 0.41 316 $120,000 71122502 ACT Ridge View Rd Northampton, MA 0.5 316 $120,000 71122504 ACT Ridge View Rd Northampton, MA 0,46 316 $120,000 71162197 ACT Westhampton Rd Northampton, MA 3.49 217 $225,000 71174039 ACT Nutting Ave Northampton, MA 0.18 173 $119,000 71200754 ACT 64 Chestnut Avenue Extension Northampton, MA 0.25 101 $99,750 71200755 ACT 74 Chestnut Avenue Extension Northampton, MA 1.02 101 $169,100 71200865 ACT Chestnut Avenue Extension Northampton, MA 0.17 101 $75,240 71201358 ACT Chestnut Avenue Ext Northampton, MA 0.81 100 $142,120 71204178 ACT [site 241 Chestnut Ave Ext. Northampton, MA 0.46 93 $153,900 71213934 ACT Spring ,Street Northampton, MA 0,5 76 $149,000 71222088 ACT Spring Street Northampton, MA 1.84 59 $137,000 71222481 ACT Emerson Way Northampton, MA 0.29 58 $105,000 71222482 ACT Emerson Way Northampton, MA 0,28 58 $95,000 71222483 ACT Emerson Way Northampton, MA 0.29 58 $105,000 71222485 ACT Emerson Way Northampton, MA 0.26 58 $110,000 71222486 ACT Emerson Way Northampton, MA 0.28 58 $95,000 71222487 ACT Emerson Way Northampton, MA 0,29 58 $110,000 71222489 ACT Emerson Way Northampton, MA 0.33 58 $115,000 71222490 ACT Emerson Way Northampton, MA 0.31 58 $115,000 71222491 ACT Emerson Way Northampton, MA 0.22 58 $95,000 71222492 ACT Emerson Way Northampton, MA 0.24 58 $100,000 71222493 ACT Emerson Way Northampton, MA 0.26 58 $115,000 71222495 ACT Emerson Way Northampton, MA 0.25 58 $115,000 71222496 ACT Emerson Way Northampton, MA 0,24 58 $115,000 71222497 ACT Emerson Way Northampton, MA 0,25 58 $115,000 71222498 ACT Emerson Way Northampton, MA 0.27 58 $115,000 71222499 ACT Emerson Way Northampton, MA 0.28 58 $115,000 71222500 ACT Emerson Way Northampton, MA 0.27 58 $115,000 71222501 ACT Emerson Way Northampton, MA 0.26 58 $115,000 Turkey Hill Road, Northampton, MA 6 -11 36 71222502 ACT Emerson Way Northampton, MA 0.27 58 $115,000 71222503 ACT Emerson Way Northampton, MA 0.27 58 $115,000 71223359 ACT Spring Street Northampton, MA 1,84 58 $132,000 71224114 ACT South Street Northampton, MA 0.14 57 $99,000 71232495 ACT Bunts Pit Road Northampton, MA 13.6 42 $349,900 71233933 ACT Park Hill Road Northampton, MA 1.86 38 $110,000 71237594 ACT Kennedy Road Northampton, MA 15.13 31 $300,000 71242008 ACT Park Hill Rd Northampton, MA 44 22 $150,000 71252235 NEW Sylvester Rd. Northampton, MA 14.5 2 $150,000 71252558 NEW Emerson Way Northampton, MA 2.79 1 $115,000 With fifteen lot sales in the last twenty- four - months and the current supply of fifty -nine building lots, market data suggests an oversupply and a saturation of inventory that will take years for the market to absorb. Turkey Hill Road, Northampton, MA 6 -11 37 HIGHEST AND BEST USE Real estate is valued in terms of its Highest and Best Use. The Highest and Best Use of the land or site, "if vacant" and available for use, may be different from the Highest and Best Use of the improved property. This will be true when the improvements are not an appropriate use and yet make a contribution to total property value in excess of the value of the site. Highest and Best Use may be defined as that reasonable and probable use that will support the highest present value as of the date of the Appraisal. Alternatively, it is the most profitable, likely use to which a property may be put; it may be measured in term of the present worth of the highest net return that the property may be expected to produce over a stipulated long -range period of time. The Highest and Best Use is that use from among one or more proposed uses that has been found to be legally permissible, physically possible, appropriately supported and financially feasible that is expected to generate the highest rate of net return over a given income forecast period at the time the decision is made. The appraiser must estimate the highest, best and most probable use for the property with its existing improvements unless cessation of uses and/or demolition of existing improvements appear necessary. Although the public sector establishes the pool of possible uses, the imperfect market determines the feasible uses, the probable uses and actual use. The market in terms of supply and demand also influences which specific use or typical uses would be most needed in the market analyzed. The Highest and Best Use of the property both "as vacant" land and "as improved" must meet criteria that are identified and described as follows; Physically Possible This reflects those uses for which the subject site is physically suited. Factors such as size, shape, terrain, availability of public utilities and soil conditions are relevant in determining a Highest and Best Use for land "as though vacant ", since they affect its physical utility and adaptability. For improved properties, physical characteristics such as size, design and condition of the improvements are also analyzed. Legally Permissible This concerns those uses that are physically possible and permitted on the site. Legal permission depends on public and private restrictions, zoning, building codes, environmental regulations and any other governmental law and/or regulations that pertain to the property. Turkey Hill Road, Northampton, MA 6 -11 38 Financially Feasible This relates to an examination of alternative uses that are physically possible and legally permissible in order to determine which will produce an income or return equal to or greater than the amount needed to satisfy operating expenses, financial obligations and capitalization amortization. All alternative uses anticipated to produce a positive return are regarded as financially feasible. Maximally Productive Among financially feasible uses, the use that produces the highest price or value consistent with the rate of return warranted by the market is the maximally productive use. Subject Property "As Vacant" The site is 5,2881 - acres, with 893.60 -feet of frontage along Turkey Hill Road, a public way. Turkey Hill Road, in the area of the subject is little more than a dirt road, passable by off road vehicles only. There are several rudimentary access roads /paths throughout the parcel, but none are suitable for automobiles. Site size is similar to nearby residential development, where builders and homeowners choose larger parcels of land, which offers the flexibility to position the improvements for reason of privacy, possible views and percolation and well sites. There are a few development scenarios that could be considered under the current zoning and subdivision regulations. However, as previously expressed, there is limited demand for new residential construction as evidenced by the fifteen building lot sales over the past twelve to twenty- four - months. It is therefore our opinion that the Highest and Best Use for the subject is as a single residential building lot. Turley Hill Road, Northampton, MA 6 -11 39 METHODS OF APPROACH TO VALUE Cost Approach to Value In the Cost Approach to Value, the purchaser /investor is assumed to consider producing through new construction a substitute, competing property with the same utility as the property being appraised. To estimate the present worth of the improvements it is necessary to identify the size, condition, effective age and the estimate of Accrued Depreciation. The estimated site value is then added to the Depreciated Value. Sales Comparison Approach The Sales Comparison Approach to real property valuation is based on the premise that the informed, prudent and rational purchaser will pay no more for a property than the cost of acquiring a similar, competitive property with the same utility as of the valuation date. This approach is predicated on the assumption that there is, in fact, an active market for the type of property being appraised. This approach involves selecting a number of sales of similar properties that have recently transferred on the local market. These are then adjusted to provide indications of the most probable selling price for the subject. Income Approach to Value In the Income Approach to Value, the purchaser /investor assumes that the property will generate a net income in order to support their investment and to provide them with at least a competitive rate of return on that investment over the projected investment holding period. The emphasis in valuing future income receipts rests in the Capitalization Process. The value of income property is the present worth of the anticipated future net income receipts forecasted to be produced by the property over a specified period of time. The Capitalization Technique of income analysis is generally a fundamental measurement of income property value. Turkey Hill Road, Northampton, MA 6-11 I ' VALUATION OF THE SUBJECT We have considered all three approaches to value and one of the three will be used in this Appraisal Report. The Cost Approach to Value is a meaningful method of analysis when appraising vacant land with proposed new construction. This approach is typically used to test the feasibility of a property that is relatively free of Accrued Depreciation or to test the reliability of a developer's construction cost estimates. Because cost and Market Value are usually closely related when properties are new, the Cost Approach is a valid and highly reliable approach. This approach is not valid for the subject because it is vacant land. The Sales Comparison Approach will be used because there are adequate sales of properties similar to the subject that required sufficiently few adjustments in order to yield a defensible and convincing indication of Market Value. This method of valuation is considered to be highly relevant, when applicable, as this approach best reflects the actions of the buyers and sellers who constitute the market for properties such as the subject. The Income Approach to Value will not be used in this report because vacant land such as the subject is seldom, if ever, leased or purchased specifically for its income generating potential. Occasionally this type of property might be leased for logging as a means of paying the real estate taxes on the property. This would be considered an interim use and not its Highest and Best Use. Turkey Hill Road, Northampton, MA 6 -11 41 THE SALES COMPARISON APPROACH TO VALUE The Sales Comparison Approach to Value is based on the premise that the informed, prudent and rational purchaser will pay no more for a property than the cost of acquiring a similar, competitive property with the same utility as of the valuation date. This approach is predicated on the assumption that there is, in fact, an active market for the type of property being appraised. This approach involves selecting a number of sales of similar properties that have recently transferred on the local market. These sales are then adjusted to provide indications of the most probable selling price for the subject, under specified market conditions. We have conducted a thorough investigation of the real estate market for similar land sales with residential development potential in Northampton Market Areas in order to identify transactions of properties offering similar physical characteristics to those of the subject. The search area for sales data included the community of Northampton with the greatest consideration given to those parcels located closest to the subject lots or those with the most similar land characteristics. The research also included conversations with owners of area subdivisions and local contractors who are typically the purchasers of vacant building lots. The following sales were given the greatest consideration in the estimate of value for the subject lots. The following sales were chosen for comparison.. Sale Location Lot size Utilities Sale Price Sale Date Book/Page Plan Book 1. Lot 3 Westhampton Road, 3.78 -acre Private Water $125,000 05/28/10 10188/101 Florence Private Sewer 192/51 2. Lot 2 Spring Street, 1.84 -acres Public Water $120,850 07/27/10 10244/108 FIorence Public Sewer 223/5 3. Lot 3 Spring Street, 1.84 -acres Public Water $120,850 07/27/10 10244/114 Florence Public Sewer 223/5 4. Crooked Ledge Road, 5.067 -acres Private Water $65,000 10/28/10 10350/308 Southampton Private Sewer 97/19 5. Lot 8 (158) Baker Mill Road, 1.86 -acres Public Water $180,000 11/01/10 10335/339 Northampton Public Sewer 124/40 6 Lot 4 Ridge View Road, 1.87 -acres Public Water $105,000 11 /05/10 10362/107 Northampton Private Sewer 205/7 / 7. 75 Gilbert Road, 19.52 -acres Public Water $130,000 05118M 10550/310 Southampton I I Private Sewer I 1 1 224/120 Turkey Hill Road, Northampton, MA 6 -11 42 Comparable Sale #1 is located along Westhampton Road, Florence, MA. This property is located approximately a- half -mile west of the West Farms Road intersection and consists of one contiguous parcel of land with a total land area of 3.78 - acres. There are approximately 198 -feet of frontage along the northerly side of Westhampton Road. The property sold as one approved building lot. No utilities are on -site and the parcel would be serviced via public electricity, private well and septic. A common driveway and percolation test was completed prior to the close of sale. The site is mostly covered with trees and brush. Topography is elevated from the road. The property is located in the Rural Residential Zoning District. The property was listed in MLS #71075789 for $125,000 and on the market for 4 -days. The parcel transferred from Scott A. Walker to Eva C. Fierst for $125,000 on May 28, 2010. This transaction is recorded in the Hampshire County Registry of Deeds in Book 10188, Page 101 and Plan Book 192, Page 51. The prior sale took place on May 31, 2002 and is recorded in the Hampshire County Registry of Deeds in Book 9599, Page 186. Turkey Dill Road, Northampton, MA 6 -11 43 Comparable Sale ##2 is located along Lot 2 Spring Street, Florence, MA. This property is located approximately one- quarter -mile west of the Meadow Street intersection and consists of one contiguous parcels of land with a total land area of 1.84 - acres. There are approximately 200 - feet of frontage along the northerly side of Spring Street. The property sold as one approved building lot. All town services and utilities are available at the street. The site has some cleared area, but is mostly covered with trees and brush. Topography is fairly level and at street grade in the front half, but then slopes downward at the rear. The property is located in the Urban Residential A Zoning District. The property was listed in MLS #71058672 for $129,000 and on the market for 48 -days. The parcel transferred from Lawrence H. Bean, Cordis L. Bean, Susan A. Libby, Marilyn Everett and Ruby Lois Bean to Benneth G. Phelps and Luke A. Strzegowski for $1.20,850 on July 27, 2010. This transaction is recorded in the Hampshire County Registry of Deeds in Book 10244, Page 108 and Plan Book 223, Page 5. The prior sale took place on October 10, 1978 and is recorded in the Hampshire County Registry of Deeds in Book 2058, Page 225. Turkey Hill Road, Northampton, MA 6-11 r i t 1 - - }, ��•. ��y, 1..� _ �k' . _ 1 1',64 � �y,,{j){� #_'. It 6 -;, Turkey Hill Road, Northampton, MA 6-11 M-1 Comparable Sale #3 is locates! along Lot 3 Springy; Street, Florence, MA. This property is located approximately a- quarter -mile west of the Meadow Street intersection and consists of one contiguous parcel of land with a total land area of 1.83- acres. There are approximately 245 -feet of frontage along the northerly side of Spring Street. The property sold as one approved building lot. All town services and utilities are available at the street. The site has some cleared area, but is mostly covered with trees and brush. Topography is fairly level and at street grade in the front half of the lot, but then slopes downward at the rear. The property is located in the Urban Residential A Zoning District. The property was listed in ML,S #71058793 for $129,900 and on the market for 48 -days. The parcel transferred from Lawrence H. Bean, Cordis L. Bean, Susan A. Libby, Marilyn Everett and Ruby Lois Bean to Charles J. Readinger and Mary Lou Gallup for $120,850 on July 27, 2010. This transaction is recorded in the Hampshire County Registry of Deeds in Book 10244, Page 114 and plan book 223, page 5. The prior sale of this parcel took place on October 10, 1978 and is recorded in the Hampshire County Registry of Deeds in Book 2058, Page 225. i�44J d Turkey Hill Road, Northampton, MA 6 -11 45 Comparable Sale #4 is located along Crooked Ledge Road, Southampton, MA. This property is located along the northerly side of Crooked Ledge Road, at the Delisle Road intersection and consists of one contiguous parcel of land with a total land area of 5.067- acres. There are approximately 296 -feet of frontage along the northerly side of Crooked Ledge Road. The property sold as one approved building lot. Electricity, telephone, cable television and internet connection are available at the street, but the site requires a private well and sewerage. The site is mostly covered with trees and brush. Topography is fairly level and at street grade. The property is located in the Residential -Rural Zoning District. The property was listed in MLS #71037956 for $89,900 and on the market for 224 -days. The parcel transferred from Roger and Lisa L. Goudreau to Mary Ann Jenkins for $65,000 on October 28, 2010. This transaction is recorded in the Hampshire County Registry of Deeds in Book 10350, Page 308 and Plan Book 97, Page 19. The prior sale took place on July 15, 2004 and is recorded in the Hampshire County Registry of Deeds in Boob 8036, Page 44. Turkey Hill Road, Northampton, MA 6 -11 I k I �I Fr•� - r j� yyam= . Turkey Hill Road, Northampton, MA 6 -11 .o Comparable Sale #5 is located along Baker Hill Road, Florence, MA. This property is located on land known as Baker Hill in the Baystate section of Northampton and consists of one contiguous parcels of land with a total land area of 1.86 - acres. There are approximately 75 -feet of frontage along the easterly side of Riverside Drive. The property sold as one approved building lot. The site is serviced by city water and sewer, electricity, telephone and cable media. The site is mostly covered with trees and brush. Topography is elevated from the road. The property is located in the Urban .Residential B Zoning District. The property was listed in MLS #71067138 for $195,000 and on the market for 85 -days. The parcel transferred from Constance V. Whalen, by Lawrence P. Whalen, Attorney in fact for Constance V. Whalen to Paul J. Helmuth, Jr. and Joseph A Greer for $180,000 on November 1, 2010. This transaction is recorded in the Hampshire County Registry of Deeds in Book 10355, Page 339 and Plan Book 124, Page 40. The prior sale took place on July 26, 1983 and is recorded in the Hampshire County Registry of Deeds in Book 2371, Page 22. Turkey Hill Road, Northampton, MA 6 -11 47 Comparable Sale #6 is located at 4 Ridge View Road, Northampton, MA. This property is located approximately a- half -mile west of the West Farms intersection. The site consists of one contiguous parcel of land with a total of 1.87 - acres. There are approximately 86 -feet of frontage along the southerly side of Ridge 'View Road. The property sold as one approved building lot. Underground utilities are at the street and the site will be serviced by a private well and septic. A percolation test was completed prior to the close of sale. The site is mostly covered with trees and brush. Topography is slightly below street grade. The property is located in the Rural Residential Zoning District. The property was listed in MLS #70755254 for $110,000 and on the market for 41 -days, under the current listing, but had been previously offered under listing AILS #70755254 since August of 2009. The parcel transferred from Sovereign Builders, Inc. to Mark A. and Hillary Cronin for $105,000 on November 5, 2010. This transaction is recorded in the Hampshire County Registry of Deeds in Book 10362, Page 107 and Plan Book 205, Page 76. The prior sale took place on May 26, 2005 and is recorded in the Hampshire County Registry of Deeds in Book 8281, Page 84. Turkey Hill Road, Northampton, MA 6 -11 48 Comparable Sale #7 is located along 75 Gilbert Road, Southampton, NIA. This property is located approximately a- quarter -mile west of the Brickyard Road intersection and consists of one contiguous parcel of land with a total land area of 19.52 - acres. There are approximately 140 -feet of frontage along the easterly side of Gilbert Road. The property sold as one approved building lot. Town water, electricity, cable television, internet connection and telephone are available at the street, but the site requires private sewerage. The site is mostly covered with trees and brush. Topography is fairly level and at street grade. The property is located in the Residential - Neighborhood Zoning District. The property was listed in MLS #71175828 for $145,000 and on the market for 62 -days. The parcel transferred from Edward H. Gwinner to Kathryn M. Daviau for $130,000 on May 18, 2011. This transaction is recorded in the Hampshire County Registry of Deeds in Book 10550, Page 310 and Plan Book 224, Page 120. The prior sale took place on October 31, 2005 and is recorded in the Hampshire County Registry of Deeds in Book 8494, Page 88. ` J4 Turkey Hill Road, Northampton, MA 6 -11 49 AD USTMENT PROCESS — The adjustment process involves the appraisers attempt to answer the following questions: What would the comparable property have sold for if it had possessed identical characteristics with that of the subject, instead of the characteristics it possessed at the time of the sale? In this sense, characteristics included market conditions, terms of financing and conditions of sale, as well as physical characteristics of the property. How much variance in sale price did these differences in characteristics cause? The answer to this question usually indicates the amount of adjustment made for each difference. Adjustments to the comparables for differences in quality has been made in terms of perceived relevance and importance. In the Sales Comparison Approach the subject is taken as the baseline or norm in the adjustment process. Differences between the comparable property and the subject are adjusted only in the comparable property. If the comparable property is superior to the subject in a characteristic, the adjustment is downward. In other words, because of this superior characteristic, the comparable property sold for more than it would have if it had been identical to the subject, with respect to the specific attribute. Because of this, its sales price must be adjusted downward by the appropriate amount for this category of difference. Similarly, if the comparable property is inferior to the subject in some characteristic, the adjustment in the sales price of the comparable property is upward. A qualitative adjustment grid follows that outlines the differences of the sales as they compare to the subject, Comparable Sale #1 is deemed to be the most similar sale to the subject, because it shares the similar location and development cost attributes. Comparable Sales #2, #3 and #5 are smaller lots in a more established section of Northampton with town water and sewer, making development costs and access to utilities less expensive. Comparable Sale #4 is in a less desirable location, with high development costs. Turkey Hill Road, Northampton, MA 6 -11 Address Sale Price Date of Sale Location Fee Simple Size View Dev. Cost Over all 364 D4Le 11iI1 Road, Florence N/A N/A MR. Fee Sim le 5,28 ae Au lrt 1. Lot Westharmton Road, Florence $125,000 05128110 Avg, Fee Simple 3.78 ac ( +1_ Avg. 111 2, Lott 5pring Street Florence $120,850 _ 07127/10 Avg. _ Fee Sim ie 7.84 ac +L Avg. Low - 1. Jot Skdn�Sttcct,Florencen $120,8_50 _ 07127/10 Avg, Fee Simple 1.8_4ae - Av . L9w - 4. Crooked Ledge Road Sou Lflop on $65,000 10128/10 ln£ + Fee Sim Le 5.07 ac Av . High + BakerHill Road,Nortl�a ton $180,000 11/41 /10 S . ) Fee S le 1,86 ac -r Av , Low (- U7. Rid e Vlew Road Nortlra ton L750ilbat $105,000 $130,000 11103!1 p 05/18/11 _ AYE. h± ( +) Fee Simple 1.87 ac +) A . �4Sodtate - Road, S ton Fee Simple 19.52 ac Av . Moderate - Comparable Sale #1 is deemed to be the most similar sale to the subject, because it shares the similar location and development cost attributes. Comparable Sales #2, #3 and #5 are smaller lots in a more established section of Northampton with town water and sewer, making development costs and access to utilities less expensive. Comparable Sale #4 is in a less desirable location, with high development costs. Turkey Hill Road, Northampton, MA 6 -11 50 Comparable Sale #7 is a larger parcel, but much of the land is impacted by wetlands, reducing the amount of useable acreage, therefore no adjustment for difference in size is warranted. The comparable sales presented range from $65,000 to $180,000 per lot and represents building lots in remote areas to lots in developed neighborhoods. The median sale price of the building lots presented is $120,850 and the average sale price is $120,957, with the majority of the lots being smaller in size than the subject. It is our opinion that subject's price is just above the median and average price of the comparable sales presented and closest to Comparable 'Sale 41, which has a similar lot size, location and development cost attributes. Therefore, after analyzing the above data, it is our opinion that the Market Value via the Sales Comparison Approach for the approximately 5.2881 -acre building lot is: M[CATED OPIMON OF VALUE VLA, THE SALES COMPARISON APPROACH ONE HUNDRED T07ENTY -FIVE Tf10II&AND DOLLARS ($125,000) Turkey Hill Road, Northampton, MA 6 -11 51 RECONCILITON AND FINAL VALUE OF OPINION INDICATED OPINION OF VALUE VIA THE SALES COMPARISON APPROACH ONE H[TNDRED TWENTY -FIVE THOUSAND DOLLARS ($125,000) The subject consists of a single vacant parcel of land that contains approximately 5.2881 -acres of land located along the southerly side of Turkey Hill Road in Florence, Massachusetts. The valuation of the subject based on this Highest and Best Use premise was accomplished with the use of the Sales Comparison Approach. After considering all possible uses it is our opinion that the Highest and Best Use for the subject is for its use as one residential building lot. The Sales Comparison Approach was used exclusively in the searching of similar land sales with residential development potential in Northampton and competing Market Areas in establishing a per acre value to arrive at a final "as is" opinion of value conclusion. Therefore, it is our opinion that the "as is" Market Value for the approximately 5,2881 -acres of vacant land as of June 24, 2011 is: FINAL OPINION OF VALUE CONCLUSION ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,000) Turkey Hill Road, Northampton, MA 6 -11 52 ADDENDA Turkey Hill Road, Northampton, MA 6 -11 81slwo MITI A,13! 6 6 Fyn s Z e �hweafRd * IV O66Y C P a COMPARABLE SALES MAP "16aty- t .'I �+ vatu° °0 � MSy T Wllllsmebwg, Town Ole Haydenville i eeds � 46 � a % i P s fly 'Nhutj I SBildpe �+t _`• `� ° ul park E" m p S y T L tl1U F/ N our PN 4wing Street. adpton ea 6e Rd VJa psni NAl Ra Oxbow LaAen la td Mount Tan 'Haa Ridge View IC. Road 5 Ai pion ro NI P „ H k E dts Ferry a� Y W u omen Wnhgy 161';' $ 'loo"t tom W °n a Maln St Z3 ra :.............I by Ir 8 'sr Southampton p N q R�� hlonlpomery, Tman Of 0 gi� H oghlendL .._..{ a9 Z ut°� South Ha(kyy F n 2/01 ' % Ruseeti411M E .r °d° d'lolyb es Ra { q+ co ., oakdole m @,r Wust Forms East Fa,rne 0&1 Q0 o m S North Wybon Rd o F angtlaslda c ekyr °(H f o OPTION FOR PURCHASE OF LAND Affected Property: Turkey Hill Road, Northampton NOTICE CONTRACT NUMBER: # BUDGET CODES: ,$"COO--3 VOV;? _ VENDOR NUMBER: QPTTON FUR P, 1:IRCHASE QF LAND Northampton Map ID 34435; 364 Turkey Hill Road This Option made by and between JEDORON Realty, Inc„ having an address of 164 Brickyard Road, Farmington, Connecticut ( "Optionor ") and the City of Northampton, ATTN: Wayne Feiden, Office of Planning and Development, 2 10 Main Street, Room 11, Northampton, MA 01060, a Massachusetts municipal corporation or its assigns ( "Optionee "). For and in consideration of the Sum of One Dollar ($1.00), the receipt and sufficiency of which is hereby acknowledged, the Optionor hereby grants to the Optionee an exclusive right and option to purchase a certain parcel of LAND with an address of 364 Turkey Hill Road, Northampton, Massachusetts which parcel contains 5,52 acres. Being the land described as Lot 2 on a plan prepared for Jedoron Realty, Inc., dated June 11, 2006, by Holmberg & Howe, Inc., Land Surveyors and Civil Engineers, which plan is recorded in the Hampshire Registry of Deeds in Plan Book 211, Page 12, subject to the easements shown on a plan recorded at Plan Book 214, Page 21 and described in deeds and easements on record at said Registry. Purchase Price aridTrs. The purchase price for the LAND shall be One Hundred and Thirty One Thousand Four Hundred Dollars ($131,400.00), by certified or bank check, check from the City of Northampton, or wire transfer of funds. The Optionor shall pay off all real estate taxes due and parable as of the date of closing, together with interest and penalties thereon, if any. OPTION FOR PURCHASE OF LAND The pat#ies acknowledge that although the purchase price was negotiated on a willing buyer /willing setter negation and the City never raised or suggested any eminent domain action if an agreement could not be reached, other than the "friendly" eminent domain to clear title, if necessary, discussed in this Option. The Optionor agrees that they are voluntarily donating the diff- erence, if any, between the appraised value of the property and the agreed upon purchase prico. The Optionee agrees that this donation is for a public purpose. Optionee shall not assume any of the Optionoe's tax liabilities, including, without limitation, Optionor's responsibility to pay costs, if any, for land removed from M.G.L,. Chapters 61 and 61 A, stumpage fees, land transfer tax (tax stamps), and any other applicable tax, fee or assessment. The Optionor agrees that upon payment of tile purchase price, Optionor shall execute and deliver to the Optionee a good and sufficient grant of a quit claim deed running to the Optionee free of any liens and encumbrances, other than encumbrances of record which do not materially affect the value or intended use of the LAND, and free of tenants and occupants. NOptionor cannot convey the LAND free of encumbrances as provided for herc4 Optionee may still elect to purchase the LAND. Optionee reserves the right to acquire the LAND by eminent domain to clear title or for any other reason, in accordance with the terms of this option, Optionor shall agree to waive any rights to contest the taking or the award, provided the price paid is not less than the option price contained herein, the LAND is taken prior to the expiration of this option or any extensions which may be agreed upon, and all terms of this Option remain the same as provided herein.. Closin . The Optionee's commitment to exercise the Option shall be delivered no later than March 30, 2012. The Option shall be exercised by mailing, certified mail, or hand delivering written notice of Optionee's intent to exercise this Option to Optionee's address fisted above, said mailing; to occur on or before said date. The Optionee may assign its right to purchase all or a portion of the LAND upon giving written notice of such assignment to Optionor, provided it arranges for simultaneous closing on the LAND and all terms of this Option remain the same. Optionor and Optionee agree that this Option may be recorded in the Hampshire Registry of Deeds. Right ofEntrv. During the term of this Option, the Optionee and the Optionee's authorized agents shall have the right to enter upon the Land for any and all purposes consistent with suweying, inspection, testing, measurement, permit applications, vernal pool certifications, or other considerations of Optionee relating to the use of the Land, including such limited cutting ortrees and brush as are needed to allow measurements. Optionor hereby grants the Optionee permission to apply for any necessary permits and approvals necessary for the Optionee's reuse of the property. OPTION FOR PURCHASE OF LAND Non - Exercise of 0 Lion, In the event this Option is not exercised in accordance with the terms herein contained, the consideration paid simultaneously with the execution hereof shall be forfeited by the Optionee to the Optionor and shall be liquidated damages to the Optionor. Such forfeiture, together with any other benefits accruing to Optionor under the terms of this Option shall preclude the imposition of liability at law or in equity against either party and no further obligation hereunder; and the Option granted herein shall expire without the necessity of any further action or recording by either party. The Optionor agrees not to out timber on the property or remove any minerals during the term of this Option without the prior written approval of the Optionee. Purchase price shall be reduced by twice the sum received by Optionor for any timber or minerals removed from the hand, No Broker. Optionee and Optionor each represent and warrant that they did not hire or enter into any agreement with any real estate broker nor any other person who could be entitled to a real estate commission with respect to the transactions contemplated herein, Hgz �trdaus Materials. Optionor represents and warrants that to the best of its knowledge and belief, there are no underground storage tanks on the LAND, nor of any release or threat of release of oil or hazardous materials on the Land, as these terms are defined by XG.I, c.21l✓. This provision shall survive the closing. Entire Agreement. 'I'his Option contains each and every agreement and understanding existing between the parties relating to the subject matter hereof and supersedes all previous negotiations, representations, commitments and writings. Any changes, modifications or additions to this Option shall be in writing and signed by Optionor and Optionee. Except as specifically set forth herein, each party shall bear all its own costs of this transaction, including without limitation legal fees and if the Optionee desires or is required to obtain a new survey, Optionee shall pay such surveying costs. Governing Law This Option shall be construed under the laws of the Commonwealth of Massachusetts and shall inure to the benefit of and bind the parties and their respective heirs, executors, administrators, personal representatives, successors and assigns. Pursuant to M.G.L. Chapter 62C, Section 49A, I certify under the penalties of perjury that I have, to my best knowledge and belief, complied with the law of the Commonwealth relating to taxes, reporting of employees and contractors, and withholding and remitting child support. r further authorize the City of Northampton to deduct from the amounts due under this contract, any overdue taxes, real or personal, or any other fees due to the City of Northampton from the vendor which become due and payable by the vendor or its officers, directors or agents during the terra of this contract or until fie final amounts due under this contract are paid in Full. OPTION FOR PURCHASE OF LAND IN WITNESS WI- EREOI<, Optionor and Optionee have executed this Option as a sealed instrument this day of JEDORON Realty, Inc. O ionor: Ronald K. Dalile, President and Treasurer, Taxpayer Id or Social Security Number: 06- 1091766 Cill or-Northampton, O tionee; Wayne Feid&, FAICP, Director of Planning and Development Joyce Karpin ski, City Auditor, as to appropriation Joe rfl7M��Irlr to procurement and to f /rim] J/ OPTION FOR PURCHASE OF LAND CERTIFICATE OF-CORPORATE VOTE Jedoron Realty, Inc. At a meeting of the board of directors of Jedoron Realty, Inc., duly called and held on May 25, 2411, with the majority of the board of directors being present and voting thereon and in favor thereof, consented to the following resolution: Voted: That the President and Treasurer of the corporation be authorized to execute on behalf of the corporation any and all documents reasonable and necessary to effectuate the conveyaltce to the City of Northampton of a certain parcel of real estate with an address of 364 Turkey Hill Road, Northampton, Massachusetts, which parcel contains 5.52 acres. Being the land described as Lot 2 on a plan prepared for Jedoron Realty, Inc., dated June 11, 2006, by Holmberg & Howe, Inc., Land Surveyors and Civil Engineers, which plan is recorded in the Hampshire Registry of Deeds in Plan Book 211, Page 12. The undersigned, Richard N. Dahle, being the secretary of Jedoron Realty, Inc., hereby certifies that the foregoing is a true and complete copy of a. vote adopted at a special meeting of the directors of said corporation, that the vote has not been rescinded, and that Ronald K. Dahle is currently the President and Treasurer of said corporation. A true exact record. e ?ZJ- / / I lod,l.G. Richard N. Dahle, Secretary 01`il 1705 enx 2875 mi 0165 THAT WE, JAMES F. WZOREK, SR. and CHRISTINE WZOREK, husband and wife, both of 383 Westhampton Road, Northampton, Aampmhire County, Miiaathusetts, In conaiderstion of - EIGHTY THOUSAND (580,000.00)- DOLLAR; grant to JEDORON REALTY, INC, a CONNECTICUT CORPORATION WITH XTS CORPORATE OFFICES AT BRICAYARD ROAD, FARMINGTON, CONNECTICUT • �,..;:1' , tT:t OF SiSh;SAC�i115�TT5 L S f with marrontg roarmAni'1 ti- n t�rotb>,tiaia The land in Northampton, Hampshire County, Mas6achu0etts, =16CT I The certain tract or parcel of land situated on the Southwesterly side of Turkey Hill Road, in said Northampton, bounded and described as followsz z Beginning at a point, paid point being situated thirteen hundred (1,300) feet., more or less, southea.9terly from the intersection of the Southwesterly line of •,aid Turkey Hill Road E- and the Northampton-Westhampton town line; thence running 0 forty -nine and five tenths (45.5) feet, More or lens, to a pointy thence running s. W. on land formerly of Theodore Strong and land formerly of Lunan Bartlett twelvo hundred a eighty-seven (1,287) feet, more or less, to a + paint act in the Northampton- Sesthampton town liner thence running W NOR:ZHE.AST'RLY along said Northampton- weathampton town line five hundred forty (540) feet, more or lens, to a point set in the Southwesterly line of maid Turkey Hill Read; thence running UQT�TiiEASTERLX along said Turkey 1lill Road thirteen hundred (1,3(10) feet, more or less, to the point of beginning, containing eight (8) acres, more or less. TRACT 2 A certain tract or parcel of land situated at west rarma in said Northampton, bounded and described as follows, vial NOURtm by highway formerly leading from Northampton to Saesthanpton in part, and partly by land of Charles Andercon and Charles M. Wright, being the first parcel herein deacribedf EASTERLY by land of E. P. Bartlett,} S'f85TF. X by land of said Charlen M. Wright and Sand formerly of Abner Barnard; SQIITHERLY by land of E.P. Bartlett and land formerly of J. Smith Parsons, containing forty -five (45) sores, More ar less„ DEED Dank 2875 ;ASE 0166 EXCEPTING, however, iron TRACT 2 a certain tract or parcel of land with the buildings thereon, containing one (1) acre, more or less, conveyed by bred E. Challet to Warren E. Edwards by deed dated September 30, 1952, recorded in said Hampshire Registry of needs in Book 1136, Page 450, to which reference may be had for further description. EXCEPTING, also, from TRACT 2 a certain tract or parcel of lend, containing four and twelve one - hundredths (4.12) acres, more or less, conveyed by Elgie P. Challet to Willard Thomas et ux, bounded and described as followsi Beginning at a point in a stone wall in the Southwesterly line of Turkey Hill noad, in said Northampton, said point being situated at the most northerly corner of land formerly of Marren E. Edwards, now of Evelyn C. Scanlon; thence JULCTJ= along said stone wall on land of said Scanlon two hundred forty (240) feet to a point set in the Northwesterly line of land of one Morin; thence S. 44 251 W, along land of said rimorin two hundred ninety (290) feet to an iron pin; thence ji _48" five hundred seventeen (517) feet to an iron pins thence N._4.4 2_5' E. four hundred ten (410) feet to an iron pin set in the Southwesterly line of said Turkey Bill Road; thence SOUTHEASTERLY alone Turkey Hill Road two hundred sixty (2+60) feet to a atone wall and the point of beginning, Being the same premises described in deed of Bernard P, Gawle, Aloyaius K. Marczyk and Barbara A. Marczyk to James F. Wzorek and Christine FJzorek dated August 17, 1971 and recorded in the Hampshire County Registry of Deeds, Book 1603, Page 472. Subject to all outstanding encumbrances of record including but not limited to the several tax liens filed by the Commonwealth of Massachusetts Department of Revenue. sm 2871' PAGE 0167 Executed u a sealed inatmment this Pighteerith day of December, 19 86 �E5 F�W7X CHRIST NE WZQRFK . &&1111f1OUumahofMos utts HAMPSHIRE,. Then personally appeared the Above named CHRISTINE WZbRZK and acknowledged the foregoing inatniment to be before me, �11 DECEMBER 18, 1986 ,TAMES F. WZOR,EK, SR. and their free art and deed, A. MIRANDA,, > fy oommiaaion exnirea MAY 9, 1986 at-2 -- *lock arA- A.imnufes f M., Atc`d. ent'd and euWil QUALIFICATIONS OF THE APPRAISER DANIEL J. GLEASON Education: B.S. Accounting (1975) Providence College, Providence, RI Courses taken: Basic Appraisal Principals (Appraisal Institute) February 2007- Passed Exam Basic Appraisal Procedures (Appraisal Institute) March 2007 - Passed Exam Uniform Standards of Professional Appraisal Practice (Appraisal Institute) March 2007- Passed Exam Residential Market Analysis and Highest and Best Use (Appraisal Institute) April 2007 - Passed Exam Residential Site Valuation and Cost Approach (Appraisal Institute) April 2007- Passed Exam Residential Sales Comparison and Income Approach (Appraisal Institute) May 2007 - Passed Exam General Site Valuation and Cost Approach (MA. Board of Real Estate Appraisers) November 200$- Passed Exam General Appraiser Income Approach, Part 1 (MA. Board of Real Estate Appraisers) November 2008- Passed Exam Statistics, Modeling and Finance (MA, Beard of Real Estate Appraisers) March 2009 - Passed Exam General Report Writing and Case Studies (MA. Board of Real Estate Appraisers) May 2009 - Passed Exam General Market Analysis and Highest and Best Use, (MA. Board of Real Estate Appraisers) May 2009- Passed Exam General Sales Comparison Approach, (MA. Board of Real Estate Appraisers) October 2009 - Passed Exam Advanced Income Property Appraising, (JMB Real Estate Academy) November 2009 - Passed Exam Business Experience: CFO — Don Gleason's Camping Supply, Inc. 30 years Executive Trustee — Heldon Realty Trust