092716wsa Agenda Package9:00 am
10:00 am
11 :00 am
11:15am
11:30 am
11:45 am
12:00 am
12:30 pm
Harnett County Board of Commissioners
Closed Session
Work Session
Tuesday, September 27, 2016
9:00 am
Partners in Economic Development, Economic Development Consultant Lee
Anne Nance
Harnett County Veterans Treatment Court -Authorization to receive from Joint
Adult Drug Court Grant Program funds in the amount of $969,110.89 from
SAMHSA and $397,006.58 from BJA for a combined amount of $1,366,117.47,
Clerk of Superior Court Marsha Johnson
Position requests
Discussion regarding the Harnett County Employee Benefits Committee including
proposed bylaws, Human Resources Director John Rankins
Amendment to the Personnel Ordinance, Human Resources Director John
Rankins
Discuss Resolution of CCCC Board of Directors Accepting Offer of Hamett
County to Convey Real Property
County Manager's Report:
1) October 3, 2016 Regular Meeting agenda review
12:45 am Adjourn
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09 /09 /20 18 12 :01 FAX 9 108 144 580 Harne t t _Cl e r k _of_Cou r t
Board Meeting
Agenda Item
@ 0 03 /009
MEETING DATE: October 3, 2016
TO : HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Authorization to receive from Joint Adult Drug Court Grant Progra1n funds
in the amount of $969,110 .89 from SAMHSA and $397,006.58 from BJA for a combined
amount of$1,366,117.47
REQUESTED BY: Marsha Johnson, Clerk of Superior Court on behalf of Harnett
County Veterans Treatment Court
REQUEST:
Hamett Col.lnt y Veterans Treatment Court (aka District l lA Veterans Treatment Court)
would like authorization to receive from Joint Adult Drug Court Grant Program funds in the
amount of $969 ,110.89 from SAMHSA and $397 ,006 .58 from BIA for a combined cost of
$1 ,366,117 .47 to e11.hance the existing veterans treatment court that has operated in Harnett
County since November of 2013 . These grant monies will enable the court to order mental
health and substance use disorder services for non-violent veterans in crisis who are unable to
utilize the Veterans Administration services, or have logistical challenges that prevents
compliance with VA services.
There are only 10 of these grants awarded across the United States and this court is extremely
fortunat e to have received the grant award. This is a three (3) year grant and will expire on
October 1, 2019 . No county matching funds required.
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092716wsa HC BOC Page 20
08 /08/2016 1 2 :01 FA X 8108144560 Harnett_Clerk_of_Court ~ 005/008
Notice of Award
BJA Drug Court 2016 Issue Date : OB/31/2016
Department of Hea lth and Human Services
Substance Abuse and Mental Health Services Administration
Center for Substance Abuse Treatment
Grant Number; 1 H79TI026778-01
FAIN: TI026778
Program Director: Mark Teachey
Project Title: The Harnett County Veterans Treatment Court
Grantee Address
COUNTY OF HARNETI VETERANS
TREATMENT COURT
Harnett Cnty Courthouse -VTC Admin Office
301 West Cornellus Harnett Blvd
Lill ington, NC 275460008
Budget Period: 09/30/2016 -09/29/2017
Project Period: 08/30/2016 -09/29/2019
Dear Grantee :
Business Address
District 11A Veterans Treatment Court
Clerk of Court
301 West Cornelius Harnett Blvd
LIiiington , NC 275460008
The Substance Abuse and Mental Health Services Administration hereby awards a grant in the am1>unt of
$322,277 (see "Award Calculation " fn Section I and "Terms and Conditions" in Section Ill) to COUN'TY OF
HARNETI VETERANS TREATMENT COURT in support of the above referenced project. This award Is
pursuant to the authority of 42 USC 3797u et seq. & 509 of the PHS Act as amended and is subject to the
requirements of this statute and regulation and of other referenced , Incorporated or attached terms and
conditions .
Award recip ients may access the SAMHSA website at www.samhsa .gov (click on "Grants " then SAMHSA
Grants Management), whfch provides information relating to the Division of Payment Management
System, HHS Division of Cost Allocation and Postaward Administration Requ ire ments. Please use your
grant number for reference .
Acceptance of this award lncludlng the ''Terms and Conditions" is acknowledged by the grantee whan
funds are drawn down or otherwise obtained from the grant payment system.
If you have any questions about this award , please contact your Grants Management Specia li st and your
Government Project Officer llsted In your terms and conditions .
Sincerely yours ,
Roger George
Grants Management Officer
Division of Grants Management
See additional information below
092716wsa HC BOC Page 21
09/09/2016 12 :0 1 FAX 9108144560 Harnet t_Cl erk of Court
SECTION I-AWARD DATA-1H79TI026778-01
Award Calculation (U.S. Dollars)
Salarles and Wages
Fringe Benefits
Personnel Costs (Subtotal)
Supplles
Consortium/Contractual Cost
Travel Costs
Other
Direct Cost
Approved Budget
Federal Share
Cumulatlve Prior Awards for this Budget Period
AMOUNT OF THIS ACTION (FEDERAL SHARE)
1
2
3
SUMMARY TOTALS FOR ALL YEARS
AMOUNT
$322 ,277
$323 ,052
$323,782
$98,831
$31,3~.e
$130,179
$4,825
$117,099
$3,735
$66,439
$322,277
$322 ,277
$322,277
$0
$322,277
"Recommended future year total cost support, subject to the availability of funds and satisfactory
progress of the project.
Fiscal Information:
CFOA Number:
EIN:
Document Number:
Fiscal Year:
IC
Tl
IC CAN
CAN
C96N304
Tl C96N304
Tl Administrative Data:
93 .243
1566000306A1
16Tl26778A
2016
322 277
PCC; EADC-SCT I OC : 4145
Amount
$322,277
323 052
SECTION 11-PAYMENT/HOTLINE INFORMATION -1H79TI026778-01
323 782
Payments under this award wil l be made available through the HHS Payment Management
System (PMS). PMS is a centralized grants payment and cash management system, operated by
the HHS Program Support Center (F'SC), Division of Payment Management (DPM). Inquiries
regarding payment should be directed to : The Division of Payment Management System , PO Box
6021, Rockville , MD 20852 , Help Desk Support -Telephone Number: 1-877-614-5533 .
The HHS Inspector General maintains a toll-free hotl ine for receiving information concerning
fraud , waste, or abu se under grants and cooperative agreements . The telephone number is : 1-
600-HHS-TIPS (1-800-447-8477). The malling address is: Office of Inspector General ,
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14] 006/009
092716wsa HC BOC Page 22
0 9 /09 /2016 12 :02 FAX 9108144560 Harne tt_Cl er k_of_Cour t
Department of Health and Human Services , Attn : HOTLINE , 330 Independence Ave ., SW,
Washington, DC 20201 .
SECTION Ill-TERMS AND CONDITIONS-1H79TI026778-01
This award is based on the application submitted to. and as approved by, SAMHSA on the
above-tltle project and is subject to the terms and conditions incorporated either directly or by
reference in the fol lowlng :
a. The grant program legislation and program regulation cited In this Notice of Award .
b. The restrictions on the expenditure of federal funds In appropriations acts to the extent
those restrictions are pertinent to the award .
c. 45 CFR Part 75 as applicable.
d. The HHS Grants Policy Statement.
e. This award notice, INCLUDING THE TERMS AND CONDITIONS CITED BELOW.
Treatment of Program Income:
Additional Costs
In accordance with the regulatory requirements provided at 4S CFR 75 . 113 and Append ix XII to
45 CFR Part 75 , recipients that have currently active Federal grants , cooperative agreements ,
and procurement contracts with cumulative total value greater than $10 ,000,000 must report and
maintain information in the System for Award Management (SAM) about civil , criminal , and
administrat ive proceedings in connection with the award or performance of a Federal award that
reached final disposition within the most recent five-year period . The recipient must also make
semiannual disclosures regarding such proceedings . Proceedings information will be made
publlcly available In the designated integrity and performance system (currently the Federal
Awardee Performance and Integrity Information System (FAPIIS)). Full reporting requirements
and procedures are found In Appendix XII to 4S CFR Part 75 .
SECTION IV-Tl Speclal Terms and Conditions -1H79TI026778-01
REMARKS:
As a reminder all SAMHSA official notifications wi ll be electronically malled to your organization's
Bus iness Official address es identified in the HHS Checl<llst. Part C.
This award reflects approval of the revised budget submitted on 8/16/16 as part of the application .
SPECIAL TERM(s) OF AWARD :
Disparity Impact Statement (DIS):
By November 30, 2016 , you must:
Submit an electronic copy of a disparity impact statement to the Government Project Officer
(GPO) and Grants Management Specialist (GMS) as identified under Contacts on this notice of
award . The disparity impact statement should be consistent with Information in your application
regarding access. ·service use and outcomes for the program and include three components as
described below , Questions about the disparity Impact statement should be directed to your GPO .
Examples of disparity impact statements can be found on the SAMHSA website at
http ://www.samhsa.gov/grants/grants-management/d lspar1ty-1mpact-statement.
*Service use is inclusive of treatment services, prevention services as well as outreach,
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092716wsa HC BOC Page 23
0 9 /09/20 16 12 :02 FA X 9108144560 Harnett_Clerk of Court
engagement, training and/or technica l assistance act ivities .
The disparity impact statement , in response to the Special Term of Award, consists of three
components :
1. Proposed number of indlvlduals to be served by subpopulations in the grant implementation
area should be provided in a table that covers the entire grant period. The disparate population(s)
should be identified In a nar rative that includes a descri ption of the population and rationale for
how the determination was made .
2. A quality improvement plan for how you will use your program (GPRA) data on access , use
and outcomes to monitor and manage program outcomes by race, ethnicity and LGBT status,
when possible . The quality i mprovement plan shou ld include strategies for how processes andfor
programmatic adjustments will support efforts to reduce disparities for the identified sub -
populations .
3. The quality Improvement plan should include methods for the development and
implementation of policies and procedures to ensure adherence to the Enhanced Culturally and
Ungulstlcally Appropriate Services (CLAS) Standards and the provision of effective care and
services that are respons ive to :
a. Diverse cultural health be liefs and practices ;
b. Preferred languages ; and
c. Health literacy and other commun ication needs of all sub-populations within the proposed
geographic region .
Defense of Marriage Act (DOMAl:
On June 26, 2013, in United States v. Windsor , the Supreme Court held that section 3 of the
Defense of Marriage Act (DOMA), which prohibited federal recognition of same-sex
spouses/marriages, was unconstitutional.
As a result of that decision, SAMHSA is no longer prohibited from recognizing same sex
marr iages . Consistent with HHS policy and the purposes of SAMHSA programs. same-sex
spouses/marriages are to be recognized in the Joint Adult Drug Court Program to Enhance
Serv ices, Coordination, and Treatment. This means that . as a recipient of Joint Adult Drug Court
program funds you are required to treat as valid the marriages of same-sex couples whose
marriage was legal when entered Into .
Th is applles regardless of whether the coup le now !Ives In a Jurisdiction that recognizes same-sex
marriage or a jurisdiction that does not recognize same-sex marriage . Any same-sex marriage
legally entered into in one of the 50 states. the District of Columbia, a U.S. territory or a foreign
country wlll be recognized. However, this does not apply to registered domestic partnerships , civil
unions or simi lar formal relationships recogni zed under state law as something other than a
marriage .
SPECIAL CONDITIONS OF AWARD:
None
STANDARD TERMS OF AWARD:
Refer to the follow ing SAMHSA website for Standard Terms of Award :
Page~4
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http ://www.samhsa .gov/grants/grants-manaqement/notjce-award-noa/standard-terms-
condltlons (NEW)
Key staff are listed below:
Mark Teachey, Project Director@ 20% level of effort (In-ki nd)
All changes in key staff including level of effort must be sent electronlcally to the GPO Includ in g a
biographical sketch and other documentation and information as stated above who wll l make a
recommendation for approva l or disapprova l to the ass igned Grants Management Speciali st. Only
the GMO, SAMHSA may approve Key Staff Changes .
REPORTING REQUIREMENTS:
Submission of a Programmatic Semi -annual Report is due no later than the dates as follo ws:
1st Report -Apri l 30. 2017
2nd Report -October 31 , 2017
Please submit your Programmatic Semi-annual Reports to
DGMProgressReports@samhsa .hhs .gov andcopy your Program Offlclal . (HARD COPIES
SUBMISSION 1$ NOT REQUIRED)
Failure to comply with the above stated terms and conditions may result in suspension,
classlflcatlon as High Risk status, termination of this award or denial of funding In the
future.
All responses to speclal terms and conditions of award and post award requests may be
electronica lly ma iled to the Grants Management Spec ialist and to the Program Official as identified
on your Notice of Award .
It Is essential that the Grant Number be included in the SUBJECT line of the email.
CONTACTS :
Jon Berg , Program Official
Phone: (240) 276 -1609 Emall : Jon .Berg@samhsa.hhs .gov
Doug Lees , Grants Spec ia list
Phone : (240) 276 -1 653 Emall: Ooug .Lees@samhsa .hhs.gov
Page-S
~ 009 /0 09
092716wsa HC BOC Page 25
Harnett
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GOALS • Goal 1. To provi
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092716wsa HC BOC Page 32
Board Meeting
Agenda Item
MEETING DATE: October 3, 2016
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Adopt bylaws for the Harnett County Employee Benefits Committee
REQUESTED BY: John Rankins, Director of Human Resources
REQUEST:
Harnett County Human Resources requests adoption of the proposed bylaws for the Harnett
County Employee Benefits Committee
FINANCE OFFICER'S RECOMMENDATION:
COUNTY MANAGER'S RECOMMENDATION:
C:\User s\gwh eeler\AppData\Local\Microsoft\ Wind ows\INetCache\Content.Outlook\TPTEQCL V\bylaws.doc Page
1 of! 092716wsa HC BOC Page 33
Bylaws of
The Employee Benefits Committee
ARTICLE I
Name
Section 1. Name -the name of this committee shall be The Employee Benefits Committee,
herein referred to as "Committee".
ARTICLE II
Purpose and Powers
Section 1. Purpose -the Harnett County Board of Commissioners (herein referred to as "the
Board") have created this Committee in order to facilitate communications between county
employees and county administration within the area of healthcare and employee benefits.
This Committee is charged with providing recommendations to the Board regarding health,
wellness, medical care, and benefits for County of Harnett employees. The Committee has the
power to receive input from employees about benefits and in turn, voice those concerns to the
Board. The Committee may also, in collaboration with county administration and the Board, seek
alternative healthcare options that will best serve the needs of the employees of the County.
ARTICLE III
Members
Section 1. Members-Members of this Committee will consist of five (5) volunteers
appointed by the Board. In addition to the five Board-appointed members, the Committee will
also consist of one (1) County Commissioner, County Finance Director or designee, and the
County Manager or designee. Of these members, one will serve as the secretary.
Each Commissioner will select one (1) of the five Board-appointed members. Commissioners
will choose a member who live in their respective districts and is an employee of the County of
Harnett.
Section 2. Terms -Each Committee member shall serve a one-year term and may not serve
more than four ( 4) consecutive terms of office unless approved by the Board to serve longer.
Each Committee member's term of office shall begin upon the adjournment of the board meeting
at which appointed and shall end upon the adjournment of the board meeting during which a
successor is appointed. Each Committee member's term will run concurrent with the Board
member who appointed them.
Would the board like to include a retiree or spouse?
Section 3. Vacancies -The Bo ard may fill vacancies due to the expiration of a member's
term in office, resignation, death, or removal of a member. V acancies shall be filled by the Board
for the balance of the term of the member being replaced:
092716wsa HC BOC Page 34
Section 4. Officers-The officer of the Committee shall be a secretary, whom shall be
chosen by, and serye at the pleasure of the Committee. The secretary shall have the authority and
shall perform the duties set forth in these Bylaws or by resolution of the Board.
Section 5. Compensation for Service -As stated throughout these Bylaws, the individuals
that have accepted the appointment to the Committee are volunteers, and thus, will not be
compensated for carrying out their duties as members.
ARTICLE VI
Officers and Staff
Section 1. Director of Human Resources -The Human Resources Director shall lead the
committee in performing its duties and responsibilities and shall perform all other duties incident
to the office or properly required by the Board.
Section 2 . Benefits Coordinator -In the absence of the Director of Human Resources, the
Benefits Coordinator shall perform the duties of the Director. Shall keep or cause to be kept a
book of minutes of all meetings and actions of members. The minutes of each meeting shall state
the time and place that it was held and such other information shall be necessary to determine the
actions taken and whether the meeting was held in accordance with these Bylaws
Section 3. Secretary -The s ecretary shall serve as the spokesperson for the committee. The
secretary shall present the committee's recommendations to the Board.
ARTICLEV
Meetings
Section 1. Regular Meetings -The Committee shall meet at times and places fixed by the
members. The Committee will seek to accommodate all member's schedules as much as
possible. Absent members will be notified o f the meeting date by the Secretary in a timely
manner.
ARTICLE VI
Manner of Acting
Section 1. Quorum -A majority of the members on the Committee immediately before a
meeting shall constitute a quorum for the transaction of business at that meeting of the
committee. No business shall be considered at any meeting at which a quorum is not present.
Section 2 . Majority Vote -The act of the majority of the members present at a meeting at
which a quorum is present shall be the act of the Committee.
092716wsa HC BOC Page 35
Section 3. Participation -Members may participate in a regular or special meeting through the
use of any means of communication by which all committee members participating may
simultaneously hear each other during the meeting, including in person, internet video, or by
telephonic conference call.
ARTICLE VII
Miscellaneous
Section 1. Conflict of Interest -The Committee shall adopt and periodically review a conflict
of interest policy to protect the Committee 's interest when it is contemplating any transaction or
arrangement, which may benefit any officer, member, or closely associated person of the
Committee.
Section 2. Nondiscrimination Policy -The officers, members, and persons served by this
committee shall be selected entirely on a nondiscriminatory basis with respect to age, sex, race,
religion, national origin, and sexual orientation.
It is the policy of this Committee not to discriminate on the basis of race, creed, ancestry, marital
status, gender, sexual orientation, age, physical disability, veteran's status, political service or
affiliation, color, religion, or national origin.
Section 3. Bylaw Amendment -These Bylaws may be amended, altered, repealed, or restated
by a vote of the majority of the committee members in office at any meeting.
092716wsa HC BOC Page 36
ARTICLE VIII
CONFLICT OF INTEREST POLICY AND AGREEMENT
It is important for the Employee Benefits Committee, its officers, and members to be aware that
both real and apparent conflicts of interest sometimes occur in the course of conducting the
affairs of the committee and that the appearance of the conflict can be troublesome even if there
is in fact no conflict whatsoever. Conflicts occur because the many persons associated with the
committee should be expected to have , and do in fact, generally have multiple interests and
affiliations and various positions of responsibility within the community. In these situations, a
person will sometimes owe identical duties of loyalty to two or more people. The purpose of the
conflict of interest policy is to protect the committee's interest of when it is contemplating
entering into a transaction or arrangement that might benefit the private interest of office or
member of the committee or might result in a possible excess benefit transaction. The conflict of
interest policy is intended to supplement but not replace any applicable state and federal law.
Conflicts are undesirable because they potentially or eventually place the interests of others
ahead of the committee's obligations to its charitable purposes and to the public interest.
Conflicts are also undesirable because they often reflect adversely upon the person involved and
upon the institutions with which they are affiliated, regardless of the actual facts or motivations
of the parties. However, the long-range best interests of the corporation do not require the
termination of all association with persons who may have real of apparent conflicts that are
harmless to all individuals involved.
Each member of the committee has a duty ofloyalty to the committee. The duty of loyalty
generally requires a member to prefer the interest of the committee over member's interest or the
interests of others. In addition, members of the committee shall avoid acts of self-dealing which
may adversely affect the purpose of reputation of this committee.
Committee Member Name
Committee Member Signature
Secretary
Date
092716wsa HC BOC Page 37
Board Meeting
Agenda Item
MEETING DATE: October 3, 2016
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Amend the Personnel Ordinance
REQUESTED BY: John Rankins, Director Human Resources
REQUEST:
Article IV . Recruitment and Employment
Section 3. Recruitment & Advertisement
When new or vacant full time positions are to be filled within the County, Supervisors or
Department Heads shall notify the Human Resources Department and provide them a
complete Position Overview. Such an overview is to include the appropriate salary, grade,
qualifications, and description of the new or vacant position.
The Human Resources Department shall publicize full time opportunities for employment
with the County by posting the provided Position Overviews along with instructions for
submitting applications and assurances of equal employment and non-discriminatory
practices in the Human Resources Department and on the internet at www.Harnett.org.
Amend to include
In some instance s the Department Head ma y requ est that the position be initially posted for
only internal candidates. If no internal candidates are selected, then the position may become
open to the public.
Information on job openings and hiring practices shall also be provided to recruitment
sources including the Employment Security Commission ("ESC") and other organizations,
news media, job websites, and other sources as deemed appropriate by the Human Resources
Department.
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recrui tment.d oc Page I of2
092716wsa HC BOC Page 38
RESOUHTON OF CENTRAL CAROLINA CO:i\1..\,1l."~!TY COLLEGE
BOARD OF TRUSTEES ACCEPTLNG OFFER
OF HARJ'-:ETT COUNTY TO crn,rVEY REAL PRO P ERTY
WHEREAS, Ha rnett County, one of t he counties of th e State or ·orth Carolina . a body
both poli ti c and corporate. owns a 3 11 acre parcel of land with a 8.60 0 square -foot building
1hereon locmed in the \.V estern Harnett Industrial Park on Highway 87. 22 0 Oliv1: Farm Road:
A \'D Vil IEREAS , the Harnett County Board of Com mi ssioner5 has offered to corn·ey
said parcel of land and building to the Trustees of Central Carolina Commun ity College without
consideration pursuam to the au t ho rit y of NC G S I 60A -274 , free and c lea r of all liens and
encumbrances
~OW, THEREFORE, be it re solved by the l3oard of Trustees of Central Carolina
Commun it.-, College, a body corporate created under the laws of !\011h Carolina. as follows
Suhject to the prior approva l of the State J3 oard of Community Colleges !h e Board of
Trustees gratefu lly accepts the on er of th e Harnett County Hoard of Commissioners
to con ve)' the real property and bui l ding hereinabove described .
2 Th e Boa rd of Trustees expresses its sincere ap preciation of1he Commissioners
conti nu ed suppon
3 The ChaH ma n of the Board of Trustees and its Secreta1v are authorr zed to rrocced on
behalf of and ill the name of Trustees to acquire ownership l)f the real propertv
here ina bo\-C describ ed an d to execute all necessary documents on hehalf of C cntrai
Ca10 !i na Com mun it:, College .
Adop ted thc 4-¢~ay o~ . 2016,~on otio n of -~-(f.)o~lP~.r.4'1/ ,
sccnndcci by -~/(. Co11tr1,~==-{[__ at th . 2-6 , 201b regula r meeting uf
th:: Board ofTmstce!> of Central Carolina Com mu 1ty G lege
092716wsa HC BOC Page 39
Appraisal Report
of the Fee Simple Interest
In the Property Located at
220 Olive Farm Road in the
Western Harnett Industrial Park
Sanford, NC
Prepared For:
~
CENTRAL
CAROLINA
COMMUNITY
COLLEGE
Central Carolina Community College
c/o Donnie Lowder
Construction Manager
1105 Kelly Drive
Sanford, NC 27330
Date of Inspection: July 10, 2016
Date of Valuation: July 10, 2016
Appraised By:
Timothy S. Allen, MAI, CCIM
Seagle & Associates
209 South Fuquay Avenue,
Suite 115
Fuquay-Varina, North Carolina 27526
Office (919) 577-0490 • Fax (919) 577-0489
092716wsa HC BOC Page 40
Central Carolina Commun ity College 220 Olive Farm Rd
This value estimate is supported by the data and reasoning set forth in the attached
narrative. Your attention is directed to the Assumptions and Limiting Conditions attached and
made a part of this report. I certify that I have no present or contemplated future interest in the
property appraised and that the fee for this assignment, is in no way contingent upon the value
estimates concluded . Seagle and Associates and Tim Allen would like to thank Mr. Lowder and
the Central Carolina Community College for the confidence expressed in us to report on behalf
of this property. If there are any questions regarding this parcel and the report enclosed, please
call.
Seagle & Associates
Yours very truly,
SEAGLE & AS SOCIA TES
W,~~1);1t~ v11"11 te}i,i .
Timothy . Allen, MAI, CCIM
tsall n 1 I 5@gmail.com
919-577-0490
NORTH C/\ROLINA APPRAISAL BOARD
Al'l"nAtf.[R QIJAI lrlCATIO~• CAAi>
E>.pires June 30, 2017
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092716wsa HC BOC Page 41
Central Carolina Community College 220 Olive Farm Rd
P~1ysically Possible ............................................................................................................................................ 29
Legally Pennissible ........................................................................................................................................... 30
Fina ncially Feasible .......................................................................................................................................... 30
Maxilnu111 Produc ti vity ...................................................................................................................................... 31
AS IMPROVED ......................................................................................................................................................... 31
Physically Possible ............................................................................................................................................ 31
Legally Permissible ............................................................................................................................................ 32
Financially Feasible .......................................................................................................................................... 32
Maximum Productivity ....................................................................................................................................... 3 2
PREFACE TO VALUE .......................................................................................................................................... 33
SALES COMPARISON ........................................................................................................................ 34
COMPARABLE LAND SALE ONE ............................................................................................................................... 36
COMPARABLE LAND SALE Two .............................................................................................................................. 38
COMPARABLE LAND SALE THREE .......................................................................................................................... .40
COMPARABLE LAND SALE FOUR ............................................................................................................................. 42
COMPARABLE LAND SALE FIVE .............................................................................................................................. 44
COMPARABLE LAND SALE SIX ............................................................................................................................... .46
ANALYSIS OF ADJUSTMENTS ..................................................................................................... 49
PROPERTY RIGHTS ................................................................................................................................................... .49
FINANCING TERMS .................................................................................................................................................... 49
CONDJTJONS OF SALEITIME ...................................................................................................................................... .49
P HYS ICAL Al>JUSTMENTS ...................................................................................................................................... 49
location ............................................................................................................................................................. 49
Size ..................................................................................................................................................................... 50
Topography ........................................................................................................................................................ 5 0
Zoning ................................................................................................................................................................ 50
Municipal Utilities ............................................................................................................................................. 50
RECONCILIATION ........................................................................................................................... 50
lmproven1ent Costs .................................................................................................................................................. 5 I
771e wmbination of thesemlues fanned a total Cill1 new o/$428,140 ......................................... : .......................................... 5 3
Depredalio11 Esti1110les ............................................................................................................................................ 5 3
QUALTFICA TIONS ...................................................................................................................................................... B
Seagle & Associates, LLC Page II
092716wsa HC BOC Page 42
Central Carolina Community College 220 Olive Farm Rd
Assumptions and Limiting Conditions
The certification of the appraiser appearing in this appraisal report is subject to the following
conditions and to such other specific and limiting conditions as set forth by the appraiser in the
report.
I. The appraiser assw11es no responsibility for matters of a legal nature affecting the property
appraised or the title hereto, nor does the appraiser render any opinions as to the title, which is
assumed to be good and marketable. The property is appraised as though under reasonable
ownership.
2. Any sketch in the report may show approximate dimensions and is included to assist the reader
in visualizing the property. The appraiser has made no survey of the property.
3. The appraiser is not required to give testimony or appear in court because of having made the
appraisal with reference to the property in question, unless arrangements have been previously
made therefore.
4. Any distribution of the valuation in the report between land and improvements applies only
under the existing program for utilization. Any separate valuations for land and building must
not be used in conjunction with other appraisals and are invalid if so used.
5. The appraiser assumes that there are no hidden or unapparent conditions of the property, or
subsoil, wruch would render the property more or less valuable. The appraiser assumes no
responsibility for such conditions, or for engineering which might be required to discover such
factors.
6. Information, estimates and opinions furnished to the appraiser, and contained in the report,
were obtained from sources considered reliable and believed to be true and correct. However,
no responsibility for accuracy for such items furnished to the appraiser can be assumed by the
appraiser.
7. Disclosure of the contents of the appraisal report is governed by the by-laws and regulations of
the professional appraisal organizations with which the appraiser is affiliated.
8. Neither all, nor any part of the contents of the report, or copy thereof (including conclusions as
to the property value, the identity of the appraiser, professional designations, reference to any
professional appraisal organizations, or the finns with which the appraiser is connected) shall
be used for any purpose by anyone but the client specified in the report, the borrower if
appraisal fee paid by same, consultants, professional appraisal organizations, any state or
federally approved financial institution, any department, agency or instrumentality of the
United States or any State or District of Columbia, without the previous written consent of the
appraiser, nor shall it be conveyed by anyone to the public through advertising, public relations ,
news, sales, or other media, without the written consent and approval of the appraiser.
Seagle & Associates, LLC Page IV
092716wsa HC BOC Page 43
Cenn·al Carolina Community College 220 Olive Farm Rd
Summary of Salient Facts and Conclusions
Property Location:
Property Owner:
Date of Appraisal:
Purpose of Appraisal:
Property Rights Appraised :
Zoning:
Utilities:
Land Area:
Access:
I mprovernents:
Present Use:
Highest and Best Use :
Appraisal Procedures:
Valuation: Sales Comparison
Final Indicated Value:
Appraiser:
220 Olive Fann Road, Sanford, NC
County of Hamett, North Carolina
July 10, 2016
Estimate Market Value
Fee Simple Interest
Industrial -Harnett County
Water, Sewer, Electric & Telephone
3.11 acres
471 LFt of frontage along Olive Farm Road
One story commercial/industrial Shell Bldg. w/ 8,650 SF
Vacant
Commercial/Industrial use.
Sales Comparison Approach
$432,000
$432,000
Timothy S. Allen, MAI, CCIM
State Certified General Appraiser #A206
This property is not listed for sale to the knowledge of this appraiser.
Seagle & Associa tes, L LC P age VI
092716wsa HC BOC Page 44
Central Carolina Community College 18.235 acres
3. General front view of the subject
4. Rear view of the subject
Seagle & Associates 2 092716wsa HC BOC Page 45
Central Carolina Community College 18.235 a cres
7. Typica1 view of an ac.c.ess JX)int looking inside to outside.
8. Typical overhead door
Seagle & Associates 4 092716wsa HC BOC Page 46
Central Carolina Community College 18.235 acres
11. Front view of the parking Jot
12. View of a lift station that is not a part of this report.
S eag le & A ssociates 6 092716wsa HC BOC Page 47
Central Carolina Community College 18.235 acres
THE ASSIGNMENT
In June 2016, this office had received an email regarding the need for an appraisal of the
3.11 acres that are the subject of this reporting along with the improvements located on the
property. The email resulted in a phone call from Mr. Donnie Lowder with the Central Carolina
Community College which resulted in a drafted contract.
On July 10, 2016, an inspection of the property took place. Notes concerning the subject as
well as the immediate neighborhood were gathered. Tim Allen, MAI, CCIM was present. After
this initial date of inspection another visit was made to the property with Chris McNeill of
Central Carolina Community College . Mr. McNeill and Mr. Allen toured the interior of the
subject and fmther notes were taken. Information regarding the SUJTOunding neighborhoods and
the current market has been retrieved from a variety of sources. Pertinent zoning and tax
information were also gathered during this investigation. A discussion of the land and the
overall market has been prepared.
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IDENTIFICATION OF THE SUBJECT PROPERTY
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8 092716wsa HC BOC Page 48
Central Carolina Community College 18.235 acres
that may have been knowledgeable of the item being investigated. This is an Appraisal Report as
defined by the reporting option of the Uniform Standards of Professional Appraisal Practice.
DEFINITION OF MARKET VALUE
The definition of Market Value used in this rep01t is defined by the lnteragency Appraisal
and Evaluation Guidelines (December 2, 2010) as follows:
"The most probable 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 are the consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:
• Buyer and seller are typically motivated;
• Both parties are well informed or well advised, and acting in what they consider their
own best interests;
• A reasonable time is allowed for exposure in the open market;
• Payment is made in terms of cash in U.S. dollars or in terms of financial atTangements
comparable thereto; and
• 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.
INSPECTION AND DATE OF APPRAISAL
The date of inspection is July 10, 2016. The date of valuation will be the same, July 10,
2016
PROPERTY RIGHTS APPRAISED
The appraiser will estimate the fee simple interest in the subject property as of the date of
the appraisal. Fee simple interest is described as follows:
Seag le & Ass ociates JO 092716wsa HC BOC Page 49
Central Carolina Community College 18.235 acres
METROPOLITAN DATA FOR HARNETT COUNTY
The following regional analysis focuses on the social, economic, governmental, and
environmental forces that shape the elements of supply and demand, and subsequently affect
local real estate values. The metropolitan area that is the subject of this appraisal is located in
the central /eastern part of North Carolina. Harnett County will be a focus of this report.
According to the U.S. Census Bureau, Hamett County has a total area of 595 square miles.
There is some influence within the county from neighboring Cumberland County and the
activities within the community of Fayetteville. Fayetteville, NC is the fifth largest metro area
for North Carolina. Fayetteville is also the county seat of Cumberland County. The City of
Dunn is part of the Dunn Micropolitan Area and is the largest city in Harnett County. Lillington
is second to Dmm in population and is the county seat. Angier is another community within
Harnett County that rivals Lillington. However, Angier is on the Hamett/Wake line and a
portion of the community lies within Wake County. The subject is within the rural stretch of
highway between Spout Springs in Hamett County and Sanford , which is in Lee county. Spout
Springs is in Harnett County and it is near the Cumberland County line with Hamett County in
the western portions of the county.
Social Forces
The 2014 US
Census estimate of
population for Hamett is
126,666 which is an
increase of 10.45% since
the 2010 census. Growth
in the county has been at
twice the state rate. Most
of this is accountable for
its location between
Wake County and
Cumberland County.
Wake County
Seag le & Associates
Harnett County's Major Employers
Organization Specialization
Harnett County Public Schools Education
Harnett Health System Healthcare
Harnett County Government Local Government
Food Lion Distribution Center Warehouse and Shipping
Campbell University University/Education
Harnett Correctional Institution Correctional Facility
Edwards Brothers, Inc. Hard and Soft-Bound Books
Wal-Mart Mass Retail
Carlie C's IGA Grocery Chain
SAAB Barracuda, LLC Defense Mechanisms
Gray Metal South, Inc. Heating and Cooling
Gray Flex Systems, Inc. Flexible Air Ducts
Champion Homes Homes
Esterline Defense Technologies Defense Countermeasures
Godwin Manufacturing Company Truck Bodies & Hydraulics
# Employees
2,132
1,050
887
758
750
381
280
270
185
167
160
140
108
93
70
12 092716wsa HC BOC Page 50
Central Carolina Community College 18.235 acres
from the county location near Raleigh and the Fort Bragg Area. However, there hasn't been a
great deal of growth during the past year.
Governmental Forces
A Board of Commissioners governs Hamett County with a chairman and four
commissioners. The county also has a county manger in their support system as well as an
economic development commissioner. The Town of Lillington is the county seat. Lillington has
five town commissioners and a mayor presiding. The town manager is responsible for the
implementation of policies set forth by the mayor and commission members. The municipalities
within the county are fully zoned as is Harnett County. The subject is inside the jurisdiction of
Hamett County.
Utilities
Public water and sewer access are limited within the county to primarily areas within the
municipalities . Some properties within the county are serviced by wells and septic systems.
Some schools are serviced by municipal sewer. Hamett County has a regional water treatment
plant that not only provides water within Hamett County; but, it also provides water to purveyors
within Lee, Cumberland, Wake, Johnston and Moore Counties.
Time Warner Cable provides cable modem access for Fayetteville and in limited areas
within the county. Embarq provides telephone service to the county. There are four providers of
electricity within the county. They are Public Works Commission Power/Water/Sewer, Duke
Progress Energy, formerly Progress Energy, or formerly Carolina Power and Light (CP&L),
South River Electric Power and Lumbee River Electric Power.
Medical Services
Hamett Health's Betsy Johnson Regional
Hospital is a 101 bed hospital located in Dunn which
is a short drive from the subject. The Cape Fear Valley CAPE FEAR VALLEY HEALTH
Health System is a regional health system with 765 beds, 5 hospitals, and primary care offices
throughout Cumberland County and the surrounding area. Cape Fear is rumored to be making a
bid to purchase the hospital facility located in Lillington known as Central Harnett Hospital.
S eagle & Associates 14 092716wsa HC BOC Page 51
Central Carolina Community College 18.235 acres
identify the various
property types and the
generalities of those
types within the market.
This generalization
limits the scope of
consideration of the
assessed value as being
an indication of market.
Thus, to consider tax
value as a basis for the
current market value of
real estate is imprudent.
The tax rates are set by
the county every year.
2016 H.A.RNEIT COUNTY TAX RATES
DISlRICT CODE 201E 20H 2014 2013 2012
COUNTY WIDE o.n o.n 0.7! 0.72' 0.725
AVERASBORO SCHOOL SC20 o.o, 0.02 0.0:i 0.02 O.o2
ANOFR!iON C:RFFK FIRF FR)O n.11 0.11 0.11 0.11 0.11
ANGIERl8LACK RIVER FIRE FR~O 0.07 0.07 0.07 0.07 0.07
QAIINER FIRE FR90 o.or 0.07 0.07 0.07 0.07
BENHA\IEN FIRE FR24 o.o~ 0.0£ o.os 0.09 0.06
BOONE TRAIL EMERGENCY FR21 0,07 0.07 0.07 0 .07 0.07
t:IU!cS t.:l<l:.t:K • 11<t ~l<ijU U.H U.H u.,~ U.11 U.1U
t:IUIINLl:Vl:L Mf<t . Ml:HutU IN W1 l FR70 0.0( o.oc 0.0( 0.00 0.08
OATS,GROVE FIRE FR14 o.o~ 0.0£ O.Of O.OQ 0.08
CRAINS CREEK FIRE FR50 0.1( 0.1( 0.1( 0.10 0.10
CYPRESS POINTE FIRE FR26 0.085 0.08~ 0.085 0.085 0.085
!DUKE FIRE FR80 O.OE 0.07 0.07 0.07 0.07
DUIINIAVERAS80RO FIRE FR22 o.o~ 0.0~ 0,07 0.07 0.07
~RWIN TOWN FIRE-MOTOR VEHICLES ONLY -R02 O.OE 0.07 0.07 0.07 0.07
ERWIN TOWN FIRE UN TOWN REAL ONLY FR61 O.OE 0.07 0.07 0.07
i.L.ll.TBRANCH FIRE FR10 0.1, 0.12 0.12 0.12 0.12
Fl ATWOOO!i FtRF l'R17 0.1, 0 .17 0.1, 0.17 n.11
GODWll>IIFALCON FIRE l'R91 0.1{ 0.1( 0.1C 0.10 0.10
Environmental Forces
The climate of the Harnett County area is described as being mild with practically "snow-
less" winters. The rainfall is evenly distributed throughout the year and averages 44.75 inches.
Of the 44.75 inches of precipitation only 7.6 inches is usually from snowfall. The average
temperature is 62.0 degrees Fahrenheit.
Hamett County is located within central North Carolina. Geographically, it is located
150 miles west of the Atlantic Ocean, 190 miles
east of the Great Smoky Mountains, 370 miles
north of Atlanta, Georgia and 250 miles south of
Washington, DC. Major highways include
Interstates 95, and 40, which are major highways
a-. U.S. l)eportmenJ o( Troospor1ahon 'f".-, Federal Highway Administration
I A STATE OF NORTH CAROLINA
~ DEPARTMENT OF TRANSPORTATION
running south to Savannah, Georgia and north to Richmond, Virginia and to points beyond in
both directions. Interstate 40, which begins in Wilmington, NC runs west to Asheville and
extends across the USA. US Highways within the county include US 301, US42 l and US401.
No1th Carolina routes 24, 27, 42, 55 , 82, 87,210 and 217 also provide direct Jinks throughout
Hamett County.
Seagle & Associates 16 092716wsa HC BOC Page 52
Central Carolina Community College 18.235 acres
located. A neighborhood is a portion of the larger community and usually lies within a district.
The area of influence to be defined is the area within which the forces affect all surrounding
properties in the same way they affect the prope1ty being appraised.
Neighborhood Boundaries
For many types of properties, the best way to define neighborhood boundaries is based on
a change in property types. Thus, for areas with specific property types, i.e. industrial properties
in industrial parks, the neighborhood boundaries are very distinctive. At other times, the
neighborhood boundaries can be extremely difficult to define.
The subject is north of the intersection of where NC Highway 27 intersects with NC 87.
Approximately one mile north of this intersection is the entrance to the Western Harnett
Industrial Park. The subject is an interior lot within the industrial park. It fronts along Olive
Fann Road which eventually leads to a dead end away from the NC 24/87 corridor. It is one lot
removed from being exposed to the right of way of NC 87 which is the main con-idor for traffic
between Sanford, NC and Spout Springs. Sanford is the county seat for Lee County and it is
approximately 7 miles north of the subject. Cumberland County is approximately 11 miles south
of the subject which is the home of Fort Bragg Army Post. Spout Springs is about 8 to 10 miles
from the subject to the south. The subject is surrounded by land that is vacant.
87
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18 092716wsa HC BOC Page 53
Central Carolina Community College 18.235 acres
SITE ANALYSIS
Size/Shape/Dimensions
The size of the subject has been referenced previously at 3.11 acres according to the county
assessor's office. The shape is i1Tegular. Access to the property is by way of an access point
along Olive Fann Road. It fronts along Olive Fann Road for approximately 469 '. The northern
boundary is approximately 295'. Its eastern boundary is approximately 524' and its southern
border is approximately 283'.
Topography
According to United States Geological Survey maps, the subject is in the vicinity of an
elevation that levels at 284' above sea level and migrates down to 272' above sea level. This
transition is modest as one walks across the property due to the engineering that has been
introduced on this property as a result of the construction of the primary improvement.
Seag le & A ssociates 20 092716wsa HC BOC Page 54
Central Carolina Community College 18.235 acres
required to discover them. The site has a wide range of topography with the majority of the
property having varying degrees of slope with some being too severe for development.
Easements/Rights-of-Way/Deed Restrictions
There are no known easements restricting the subject. There is right of way along the NC
Highway 24/87 con-idor; however, that does not affect the subject. Olive Fam1 Road fronts the
subject and its boundaries are clear. A review of the deed did not produce any known
restrictions. No other restrictions were noted.
Floodplain Map
The subject is referenced on
Federal Emergency
Management Agency
(FEMA) Flood Insurance
Rate Maps under panel
3 710956600.T dated October
3 , 2006. This mapping
system the subject in an area
designated as Zone X. In this
mapping system the subject
in an area designated as Zone
X which is described as a
500 year flood zone noted
for having only minimal
flooding. As discussed
previously, there is a pond on
a portion of the subject. Although present, it doesn't appear to be caused by a force of nature
relati ve to the regional flow of water. It has the appearance of being a man-made feature tha t
was integrated in to farm operations from the past.
Seagle & Associates 22 092716wsa HC BOC Page 55
Central Carolina Community College 18.235 acres
Roof:
Doors :
Windows:
Doors:
Floor Cover:
The roof was not observed. Given its age and the manner in which the
improvement was constructed it is most l ikely that the roof is a membrane
surface over steel decking with four inch, hardboard insulation between
the deck and the roof membrane . This is the content of a modern roof
system
There are three types of exterior doors. In the rear of the improvement are
metal security doors hou sed in metal framing. Next to these are 1 O' x l O'
overhead doors that manually roll up using a pulley mechanism. In the
front of the building is a fixed pane, aluminum housed door attached to an
aluminum framing system. Each door has a dead bolt locking
mechanism . This is the same for the metal security doors in the rear. The
overhead doors have a single sliding locking mechanism on each door.
There are fixed plate glass next to each door opening in the front of the
building. These fixed plates are housed in aluminum framing and the
framing is attached to the exterior brick
Interior features:
There are no interior doors.
Walls/Ce ilings:
The floor is concrete and no fonnal covering is prese nt.
There are no interior walls .
HVAC:
Plumbing:
Electric:
Mechanicals:
No HV AC is present.
There is plumbing in the form of a main line in to the building for sewer. Just
how far this line runs is not known. There are spots on the surface of the concrete
that indicate that PVC might be at the surface in spots; however, the locations of
the blemishes on the surface are not uniform. There is a $tub out on both sides of
the building for sewer. In front of the building are water meters . Copper pipe has
been stubbed out at six locati ons within the building which is one stub per
dedicated space. There are six overhead doors, six front doors and six security
door entrances. The base of the design was to have s ix spaces for operations.
Minimum electrical is in place. A formal control panel was not seen on the
inside. There is a tiunk box on the outside with one meter base to the trunk box.
Seagle & Associates 24 092716wsa HC BOC Page 56
Central Carolina Community College 18.235 acres
20 spaces in the rear. The area of asphalt to support this layout is approximately 21,430 square
feet. The asphalt does not extend around the building to provide 360 degrees of vehicular travel.
Tractor trailer movement is restricted to and from the subject. In the rear is a 1,730 square foot
concrete apron. There are 2,292 square feet of concrete sidewalk and 200 square feet of concrete
pad for a dumpster. Additionally, there is modest landscaping. The lift station is not a part of
this reporting.
ZONING
A singular jurisdiction governs the subject and that is Hamett County Planning and
Zoning. They have designated the subject as Industrial-IND. The foundation for this Industrial
zoning begins in Article IV, Section 3 of the Unified Development Ordinance or UDO. It
extends into Article V.
SECTION 3 .0 INDUST RIAL DISTRICT -IND
'lhe purp:>se of th.i s distric t . l ndustiial (l.ND ), is to promote and protect both exi,ting iudnstrial
11ctiYities and potential 5ites \Yhich are consicle:·ecl suitable for industr:al me. t o prohibit mes o f hnd
which would substantid ly interfrre with the contimrnt:011 of uses permitted m the di strict. and to
promote the ope ratio n o f well-planned and mru.n:ained .indm trial facilities.
14..t Nonresidential Zoning l\Iininmm Dimens:ional Requirements
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Seagle & Associates 26 092716wsa HC BOC Page 57
Central Ca rolina Community College 18.235 acres
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IDGHEST AND BEST USE
The highest and best use for real property can be defined as follows:
"th e reasonably probable use and legal use of vacant land or an improved pr operty, which is p hy sically p oss ible,
appropriately supported, finan cially feasible, and that results in th e hig hest value. "3
3 The Di ctionary o f Real Estate Appraisal , Fifth Edition ; (Appraisal Institute, Chicago, Ill.) c 201 0, page 9 3
Seag le & A ssociates 28
092716wsa HC BOC Page 58
Central Carolina Community College 18.235 acres
Legally Permissible
The legal restrictions impacting the subject as a vacant parcel stem from one jurisdiction,
Harnett County. As has been demonstrated within this report, the county requires a minimum
setback for industrial use . As well, they require minimum space or lot size before development is
considered. On both counts, the subject can meet the minimum requirements with ease. There
are a host of legally permitted uses along with many conditional uses. Any desired form of use
will have to go before the county commissioners as well as through the county planning and
zoning office for consideration. This is the administrative process that is in place for
consideration to develop.
Without the sanction of these levels of government, the use of the prope1ty cannot change.
Without there being a meeting of the minds, development or a change in use cannot occur. A
proposal for change is not before any administrative board known to this appraiser. Pressure was
not observed within this location to suggest that a change in use were on the horizon.
The only other legal restrictions associated with the subject would be related to the existing
right of way along Olive Farm Road and the overhead power being brought on to the property
via Duke Progress Energy.
Financially Feasible
Land can either lease or sell when vacant. Most pre valent in this market has been the sellin g
of land in acres. Land in this area has been purchased by individuals for residential occupation.
Other acres have been purchased for commercial use. However; the commercial use of land has
been isolated to areas of concentrated activity. Transactions with the zoning background similar
to the subject have not been prevalent in the greater market within this county. Although the
legal use of the property is broad, this specific form of zoning has not attracted many within the
market to purchase.
Within the current market, the selling of vacant parcels for commercial use has been limited.
The financial feasibility is present based on the knowledge of these past transfers and the
knowledge that the price that was paid was founded on the actions of the buyers and sellers. Each
was acting with knowledge and in one 's own self interest.
There is very little market evidence to suppo1t any type of ground lease regardless of the
type of zoning. In some cases, the lands have been leased for agricultural use but not for enough
to equate to market valu e when capitalized . There isn't enough economic pressure to support a
Seagle & Associates 3 0 092716wsa HC BOC Page 59
Central Carolina Community College 18.235 acres
a good job. The building is well constructed. It has several points of access and the options of
using overhead doors for access. The only thing that is not present is radius for tractor trailer
maneuverability around the building for delivery options. As for the building, it was designed as
a shell feature to allow for options in use. The ceiling height is adequate for a host of use
options. It has steel framing and a brick exterior to which all has been insulated. Additionally,
the economic development committee brought municipal water and sewer to this location for
support.
Legally Permissible
As an industrial property, there are limitations in use. However, there are not so many
that this property and the improvement present cannot be used. The improvement was erected
and approved for construction before the necessary governing bodies within the County. Any
interior up fit would have to be approved through the same governing process. This is not
considered a hindrance. The building code cannot be superseded. The legal possibilities begin
with the industrial classification; however, they may not rest there if the right occupant needed a
change to commercial to accommodate occupation. However, that is speculative. Industrial use
is the legally defined use for this improvement.
Financially Feasible
Financial feasibility of an improved parcel is based on the ability of the property to sell as
improved as well as potentially lease as improved. The rate of lease is usually tethered to the
type of costs employed to create the investment. The subject has been advertised for lease since
its construction in 2009. This has not produced a tenant. Why this has not occurred is moot
when considering the valuation being presented. Financially, an improvement constructed in the
manner that is reflected within the subject has the potential to sell. A meeting of the minds can
produce a closing. However, for that meeting of the minds to occur, a host of considerations are
reviewed by all so as to achieve satisfaction. It is possible; however, it has not manifested itself
to a formal close as of the date of valuation.
Maximum Productivity
The maximum productivity for the subject will be defined by the erected improvement
and the options that are present for end users to achieve their goals. The improvement is of
Seagle & Associates 32 092716wsa HC BOC Page 60
Central Carolina Community College 18.235 acres
The income approach is based on the capitalization of the income stream and is used
primarily in income producing properties. Vacancy and collection losses are two items
subtracted from the gross income in order to arrive at an effective gross income. From the
effective gross income, other expenses are subtracted in order that a clear picture of the net
income can be analyzed. The net income is capitalized using rates extracted from market data.
This computation indicates an estimate of value for the subject property by the income approach.
Another form of review within the income approach is explored through the use of the
"discounted cash flow". This explores incomes streams that are anticipated over a set period of
time. From these income streams, deductions are applied for various expenses related to the
investment criteria. The net income that results may or may not require consideration for profit.
These periodic incomes, when netted per period, are discounted from their point out in time to
the present day. The sum total of the discounted periods results in an anticipated value for a
parcel. In determining the value of the subject, the Sales Comparison Approach for the land will
be presented. With no value attributed to the dwelling, the cost approach does not apply nor
does the income approach.
SALES COMPARISON
Under the Sales Comparison Approach, vacant land sales have been reviewed within the
market in order to achieve a value of the land. The qualities of the sales are highlighted and
compared to the qualities found within the subject. A transfer of property from one individual or
entity to another is usually a "meeting of the minds ". It assumes that an informed buyer would
pay no more for a property than the cost of acquiring an existing or substitute property with
equal utility. This aspect is important with regards to the subject. Even with the availability of
municipal water and sewer, the Jots within the greater industrial park have not transfened. This
indicates that this is a location issue . The location is not exposed. Other locations, with less
municipal support, have been found to have closed. In Spout Springs, the locations along NC 87
are closing based on a price per square foot. The difference is that these Spout Springs locations
have exposure to 36,000 vehicles per day. This is not the subject.
Sales have been found along corridors oflesser concentrated populations than the NC 87
corridor at Spout Springs . These sales are without the influence of the military base and the
economic boon this injects into the surrounding population. As well, the sales are not found
Seagle & A ssociates 34 092716wsa HC BOC Page 61
Central Carolina Community College
Comparable Land Sale One
Property Identification
Record ID:
Property Type:
Address:
REID /PIN:
Sales Data
Grantor:
Grantee:
Sale Date:
Deed Book/Page:
Property Rights:
Verification:
Sales Price:
Cash Equivalent:
Revenue Stamps:
Land Data
Land Size:
Zoning:
Topography:
Utilities:
Shape:
Drainage:
Frontage:
Indicators
Sales Price per Acre:
Comments:
03052016
Commercial
18.235 acres
532 feet south of NC 210 & Matthews Mill Pond Rd in Hamett Co.
0673-25-3310.000
Mario Petruzzo & wife Carmela Petruzzo
Mark Wortman & wife Tanya Wortman
February 17, 2012
Deed Book 2958, Page 98, Harnett Co.
Fee Simple
Mario Petruzzo
$39,000
$39,000 Cash to seller
$78.00
1.001 acres
General commercial-Angier
Level
County water, elect. , telephone near/no sewer
Irregular
Adequate
160' along NC 210 south of Matthews Mill Pond Road.
$38,961 /acre
This property fronts along NC 210 and abuts property that is owned by Ken's Muffler Service
along Matthews Mill Pond Road. Mr. Petruzzo had plans to erect a restaurant on the property
before he sold to Mr. Wortman. Mr. Wortman plans to put a shop on the·property according to
Mr. Petruzzo.
Seagle & Associates 36 092716wsa HC BOC Page 62
Central Carolina Community College
Comparable Land Sale Two
Pro1>erty Identification
Record ID:
Property Type:
Address:
REID/PIN:
Sales Data
Grantor:
Grantee:
Sale Date:
Deed Book/Page:
Property Rights:
Verification:
Sales Price:
Cash Equivalent:
Revenue Stamps:
Land Data
Land Size:
Zoning:
Topography:
Utilities:
Shape:
Drainage:
Frontage:
Indicators
Sales Price per Acre:
03082016
Commercial
18.235 acres
Behind 1808 North main Street, Lillington, Harnett County
0660-08-03 5 3. 000
Timothy Nipper & wife Robin Nipper, et ux
Matthews Oil Company
February 4, 2014
Deed Book 3190, Page 485, Harnett Co.
Fee Simple
Joan Lanier-Grantee
$125,000
$125,000 Cash to seller
$250.00
4.067 acres
General Business-Lillington
Level
No utility to the property at closing
Irregular
Adequate
No road frontage.
$30, 735 / Acre
Comments: this was an assemblage parcel. A greater parcel containing 23.59 acres was to the
west of this parcel. The greater property has the access to municipal water and sewer.
S eagle & Associa tes 38 092716wsa HC BOC Page 63
Central Carolina Community College
Comparable Land Sale Three
Property Identification
Record ID:
Property Type:
Address:
REID /PIN:
Sales Data
Grantor:
Grantee:
Sale Date:
Deed Book/Page:
Property Rights:
Verification:
Sales Price:
Cash Equivalent:
Revenue Stamps:
Land Data
Land Size:
Zoning:
Topography:
Utilities:
Shape:
Drainage:
Frontage:
Indicators
Sales Price per Acre:
03082016
Commercial
122 Tippett Road, Angier, NC
0019741
Sharon H. Hart, widow
Nunez Concrete, Inc.
November 13, 2015
J 8.235 acres
Deed Book 3355, Page 76, Harnett Co.
Fee Simple
Gasper Nunez
$95,000
$95,000 Cash to seller
$190.00
2.81 acres
GC-General Commercial, Angier
Level
County water, elect., telephone, no sewer
Irregular
Adequate
443' along Tippet Road
$33,808/Acre
Comments: A portion of this property is wet in the southeast corner. They are erecting a new
office on to the property at this time.
S eag le & Associates 40 092716wsa HC BOC Page 64
Central Carolina Community College
Property Identification
Record ID:
Property Type:
Address:
REID /PIN:
Sales Data
Grantor:
Grantee:
Sale Date:
Deed Book/Page:
Property Rights:
Verification:
Sales Price:
Cash Equivalent:
Revenue Stamps:
Land Data
Land Size:
Zoning:
Topography:
Utilities:
Shape:
Drainage:
Frontage:
Indicators
Sales Price per Acre:
Comparable Land Sale Four
03092016
General Commercial-Erwin
405 E. Jackson Blvd, Erwin, NC
0004348
Jarlock, LLC
Miller's Lawn and Landscaping, Inc.
January 20, 2015
18.235 acres
Deed Book 3276, Page 740, Harnett Co.
Fee Simple
Wayne Barbour-broker
$205,000
$205 ,000 Cash to seller
$410.00
6.36 acres
B2-Bus iness Highway-Erwin, NC
Level
County water, elect, telephone, no sewer
Irregular
Adequate
641' along East Jackson Blvd.
$32,233/Acre
Comments: The background on this property was jaded. It was purchased in 2011 for
$115,462/acre at auction. In 2013, the property sold again for $23,349/acre . The grantor's
above resold the property for the reflected price of $32,233/acre. After the purchase, the new
owners have discovered that the NCDOT will require them to install a deceleration Jane to State
specified standards.
Seagle & Associates 4 2 092716wsa HC BOC Page 65
Central Carolina Community College
Comparable Land Sale Five
Property Identification
Record ID:
Property Type:
Address:
REID /PIN:
Sales Data
Grantor:
Grantee:
Sale Date:
Deed Book/Page:
Property Rights:
Verification:
Sales Price:
Cash Equivalent:
Revenue Stamps:
Land Data
Land Size:
Zoning:
Topography:
Utilities:
Shape:
Drainage:
Frontage:
Indicators
Sales Price per Acre:
03092016
Commercial-Harnett County
7499 Highway 421, Buies Creek, NC
0034580 & 0034577
Byrd Realty Company, Inc.
Raise the Roof Builders, LLC
January 28, 2016
18.235 acres
Deed Book 3372, Page 890, Harnett Co.
Fee Simple
C.L. Byrd-grantor
$105,000
$105,000 Cash to seller
$210.00
3.52 acres with 2.83 net ofR/W
Commercial-Hamett County, NC
Level
County water, elect, telephone, no sewer
Irregular
Adequate
342' US Hwy 421,605'
$37,102/Acre (net)
Comments: Mr. Byrd bought the property and had the zoning changed from R20M to
commercial. As well he got an "ABC" privilege extended to the property thinking that a C-store
might find this location attractive. The buyers are thinking of building townhomes for students
at Campbell University.
Seag le & Associates 44 092716wsa HC BOC Page 66
Central Carolina Community College
Comparable Land Sale Six
Property Identification
Record JD:
Property Type:
Address:
REID /PIN:
Sales Data
Grantor:
Grantee:
Sale Date:
Deed Book/Page:
Property Rights:
Verification:
Sales Price:
Cash Equivalent:
Revenue Stamps:
Land Data
Land Size:
Zoning:
Topography:
Utilities:
Shape:
Drainage:
Frontage:
Indicators
Sales Price per Acre:
08182016
Industrial-Harnett Comity
Lot #8 Spencer Mill Industrial Park
0654-57-5216.000
18.235 acres
Scott D . Gilchrist & wife, Bridget Gilchrist
Sears Land Holdings, LLC
May 6, 2015
Deed Book 3305 , Page 450, Hamett Co.
Fee Simple
Barbara Marcioni-Real Estate Broker
$140,000
$140,000 Cash to seller
$280.00
2.88 acres
Industrial-Harnett County, NC
Level
County water, elect, telephon e, no sewer
Irregular
Adequate
245' along US Hwy 401 & 512 ' along Pamela Ct.
$48,611/Acre (net)
Comments: this was a purchase of 2.88 acres. After the purchase, the buyer learned that the
County would not allow them to build over the entire site due to the condition of th e soil. They
modified their plan and went forward with construction on a garage facility.
Seagle & Associates 46 092716wsa HC BOC Page 67
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S38.889 48 092716wsa HC BOC Page 68
Central Carolina Community College 18.235 acres
The subject and sales are similar in size. No adjustment has been applied.
Topography
All of the sales have modest topographical concerns. No adjustment could be
distinguished for this quality .
Zoning
All of the sales have some form of commercial or industrial zoning. Sales Three and Six
have been developed with light industrial facilities even though the zoning is commercial. For
this reason , the sales were not adjusted.
Municipal Utihties
None of the sales had immediate access to sewer. Sewer is regional to one or two sales ;
but, it is not readily available. The subject has access. Even with access to a full complement of
municipal services, it hasn't been enough to draw attention to the location. For this reason , no
adjustment has been applied. There are vacant lands available within this industrial park and
there have been no sales. There are lots available in the Jarco Industrial Park off US 401 near
Sale Six and there hasn't been any exchange among the available lot. This proves that location is
central to the closings taking place.
RECONCILIATION
Final reconciliation is defined as the process of evaluating alternate conclusions and
selecting a final estimate of value from the approaches used in the report: The appraisers weigh
the relative significance, applicability, and defensibility of the indications of value estimated
from each approach and places the greater weight upon the one which, in his/her professional
judgment, best approximates the value most likely to be recognized by the market.
Each of the sales was zoned for commercial or industrial us e. Th e subject 3.11 acres are
zoned industrial. Some of the concepts in use overlap between the two zoning classes. The
majority of the sales had frontage along a highway. The subject does not. It is located on a
Seagle & A ssociates 50 092716wsa HC BOC Page 69
Central Carolina Community College 18.235 acres
In Section 15, page 35 of the cost service data was found on shell structures. A low oost C-Class structure
similar to the subject was estimated to have a base cost fuctor of $37.37 /sf Once the base oost factor is established,
the subscnber has to apply a series of factors provided by the service to accommodate for differing regions of the
country. As well, the service interjects factors to accoW1t for different perimeter measurements.
1l1e cost service breaks down its data by first comparing the base rate with the region of the county the data is
being considered h1 this case, the data is in the eastern section of the US and the factor of l .03 is applied as the
ctnrent multiple. The region within North Carolina that the subject is noted is the Fayetteville Metro market This is
referred to as the local multiplier. As an additional measure, the perimeter of the building is tallied and the factor is
interpo1ated from a range of data presented by the service regarding perimeter adjusting. Below is the combination
of the factors as they have been applied to the base cost resulting in an estimated cost new of$293,960.
Shell Building Cos1
Base Cost $37.37 Section 15, pg. 35
Ct11Tent Cost Multiplier 1.03 Sec 99, Pg 3
Local Cost Multiplier 0.90 Sec. 99 Pg 9
Pe11meter Cost MultiElier Q:.2fil. Sec 15~ ~Q 38
Adjusted Base Cost $33.98
SF of the Subject 8.650
Estimated Cost New $293 ,960
Site Improvements
To this estimate of cost new for the building are added the costs for the various site improvements such as
concrete, asphalt paving. lights and landscaping. In this office, we have contracted to have concrete formed, poured
and floated for approximately $5 .00/sf. The same is applied to the asphalt paving. Half the cost per square foot is
for the actual cover and the other is for the underlayrnent of crush and 1ui1. Again, this was estimated at $5 .00/sf
The lighting is pole moW1ted and takes into consideration the purchase of the light and pole, the construction of the
base and the electrical necessaiy to have the unit wotk This cost is estimated at $1 ;200/ light There is modest
landscaping in front of the subject. This was estimated at $1,000 given the shrub in place and the limited space to
cover.
Yard Improvements
Concrete $5 .00 X 4 ,006 $20,030
Asphalt $5.00 X 21-430 $107,150
Pole halogt>ns $1 ,200.00 X 5 $6,000
!Landscaping (estimated) $1.000 X $LOOO
Summarv of the Yard Imorn,·emeats $134,180
Seagle & Associates 52 092716wsa HC BOC Page 70
Central Carolina Community College 18.235 acres
management of such subs is not unfamiliar with this office. Taking the knowledge from what this office has paid
and applying it to the cost levels identified by Marshall Valuation has led to satisfaction with the estimates for the
yard improvements as well as for the main building. The application of the agellife method of depreciation resulted
in a depn:ciated cost of$320,472 or $37.05/sf. With the added value of the land at $36,000/acre, tl1e total estimated
valueindicationbytheCostappraochwas$432,000or$49.94/sf As this is a shell structure, the sales
comparison was not extracted from any sales reviewed. As well, the income approach was not
applied due to lack of data as well. The value estimate as of the date of inspection is estimated
as follows:
$432,000
Thank you for the opportunity to be of service.
SEAGLE & ASSO CIATES
~~;112f ;1t,l l/l!J'{ &!_r~
Timot../s. Aile~, MAI, CCIM
919-577-0490
tsallenl l5@gmail.com
Seag le & A ssociates 54 092716wsa HC BOC Page 71
Central Carolina Community College 18.235 acres
Qualifications
Seagle & Associates B
092716wsa HC BOC Page 72
Central Carolina Community College 18.235 acres
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Seagle & Associates D
092716wsa HC BOC Page 73
REAL ESTATE APPRAISAL REPORT
Of
Existing Industrial Shell
220 Olive Farm Drive
Sanford, Hamett County, North Carolina 27732
As of
June 27, 2016
Prepared for
Phillip Price
Central Carolina Community College
1105 Kelly Drive
Sanford, North Carolina 27330
Prepared by
Matt Hawk, MAI
Shackelford & Associates
3750-A S. Evans Street
Greenville, NC 27834
092716wsa HC BOC Page 74
SHACKELFORD & AssocIATEs
Your Appraisal & Brokerage Experts
Commercial am/ Residential Appraisals * Full Service Brokerage * County Revaluation Services
admin@sa-res.c om www.sa-res.com
June 30, 2016
Page2
There are no Hypothetical Conditions or Extraordinary Assumptions.
All value opinions are affected by all the information, extraordinary assumptions, hypothetical
conditions, limiting conditions, facts , descriptions, and disclosures stated in the attached appraisal
report. If the pertinent information is altered in any way, the subject's value may be affected and
this report may be unreliable.
Based on the appraisal described in the accompanying report, subject to the limiting conditions
and assumptions, extraordinary assumptions and hypothetical conditions (if any), I have made the
following value conclusion(s):
Current "As Is" Market Value:
The current "as is" m arket value of the fee simple estate of the property, as of June 27, 2016, is
$385,000
The market exposure time preceding June 27, 2016 would have been 350 days based on the days
on market of similar properties that have so ld recently.
It has been a pleasure working with you on this assignment. If you have any questions concerning
my analys is, or if I can be of further service, please do not hesitate to call.
Respectfully submitted,
Matt Hawk, MAI, Certified General Real Estate Appraiser, A6797
Greenville
3750 A So uth Eva ns Street
Greenvill e, NC 2783 4
Ph . (252) 2 15 -22 5 0
R aleigh
65 12 Six Fo rks Road, U nit 502 8
Ral e igh , NC 276 15
Ph . (9 19) 998-9997 092716wsa HC BOC Page 75
Income Approach Summary ..................................................................................................... 88
Final Reconciliation ...................................................................................................................... 89
Value Indications ...................................................................................................................... 89
Value Conclusion ...................................................................................................................... 89
Certification Statement ................................................................................................................. 90
Addenda ........................................................................................................................................ 92
Tax Card .................................................................................................................................... 92
Deed .......................................................................................................................................... 94
Engagement Letter .................................................................................................................. 103
Appraiser Qualifications ......................................................................................................... 107
Appraiser License ................................................................................................................... 109
092716wsa HC BOC Page 76
Sales History:
Current Listing/Contract:
Land Area:
Improvements:
The subject was sold by Hamett Forward Together
Committee, et al to the current owner on August 28 , 2015, for
a reported price of $4,027,000. This was a transfer that
included several properties.
Prior to this transaction the subject sold for $0 on July 1, 2002 .
Research of the applicable public records, private data
services, and an interview of the current owner, revealed that
the subject property is not under current agreement or option
and is not offered for sale on the open market.
PROPERTY
Total: 3.106 acres or 135 ,282 square feet
Usable: 2.206 acres or 96 ,078 square feet
Approximately .9 acres on the eastern property line is either
subject to a sewer easement of in wetlands and could not be
improved .
Property Type: Industrial shell
Quality: Average
Year Built: 2009
Condition: Good
Gross Building Area (GBA): 8,650
Gross Leasable Area (GLA): 8,650
Number of Units: 6
VALUE INDICATIONS
Land Value:
Cost Approach:
Income Approach:
R econciled Value(s): Current
Value Conclusion(s) $385,000
Effective Date(s) June 27 , 2016
Property Rights Fee Simple
Shackelford & Associates Ex isting Indu stria l Shell
$88 ,000
$390,000
$378,000
Page J 7
092716wsa HC BOC Page 77
Rentable Area:2
For office or retail buildings, the tenant's pro rata portion of the entire office floor, excluding
elements of the building that penetrate through the floor to the areas below. The rentable area
of a floor is computed by measuring to the inside finished surface of the dominant portion of
the permanent building walls, excluding any major vertical penetrations of the floor.
Alternatively, the amount of space on which the rent is based; calculated according to local
practice.
Exposure Time:3
Estimated length of time that the property interest being appraised would have been offered on
the market prior to the hypothetical consummation of a sale at market value on the effective
date of the appraisal.
3 Source: USP AP
Shackelford & Associates Existing Industrial Shell Page 19
092716wsa HC BOC Page 78
The appraiser(s) are not required to give testimony in Court in connection with this appraisal. If
the appraisers are subpoenaed pursuant to a court order, the client agrees to pay the appraiser(s)
Shackelford & Associates ' regular per diem rate plus expenses.
Appraisals are based on the data available at the time the assignment is completed.
Amendments/modifications to appraisals based on new information made available after the
appraisal was completed will be made, as soon as reasonably possible, for an additional fee.
Americans with Disabilities Act (ADA) of 1990
A civil rights act passed by Congress guaranteeing individuals with disabilities equal opportunity
in public accommodations, employment, transportation, government services, and
telecommunications. Statutory deadlines become effective on various dates between 1990 and
1997. Shackelford & Associates has not made a determination regarding the subject's ADA
compliance or non-compliance. Non-compliance could have a negative impact on value;
however, this has not been considered or analyzed in this appraisal.
Shackelford & Associates Existing Industrial Shell Page 111
092716wsa HC BOC Page 79
Highest and Best Use Analysis:
Personal Property:
Valuation Analyses
Cost Approach:
Sales Comparison
Approach:
Income Approach:
Hypothetical Conditions:
Extraordinary Assumptions:
Shackelford & Associates
A complete highest and best use analysis for the subject
property has been made. Legally permissible, physically
possible, and financially feasible uses were considered, and
the maximally productive use was concluded.
This appraisal does not include any personal property, trade
fixtures, or intangible items that are not real property.
A cost approach was applied as there is adequate data to
develop a land value and the depreciation accrued to the
improvements can be reasonably measured.
A sales comparison approach was considered, but not applied
as shell buildings are not typically sold in a shell condition.
The more common practice of developers is to lease the
building. Consequently, the income approach will provide a
more accurate opinion of value than the sales comparison.
An income approach was applied as the subject is an income
producing property and there is adequate data to develop a
value estimate with this approach.
There are no hypothetical conditions for this appraisal.
There are no extraordinary assumptions for this appraisal.
Existing Industrial Shell Page 113
092716wsa HC BOC Page 80
Site Improvements:
Flood Zone:
Encumbrance /
Easements:
• No public street lights
• No public sidewalks
• Parking lot has curb and gutter
• Average landscaping
The subject is located in an area mapped by the Federal Emergency
Management Agency (FEMA). The subject is located in FEMA
flood zone FEMA Zone X, which is not classified as a flood hazard
area.
FEMA Map Number: 37109566001
FEMA Map Date: October 3, 2006
None noted beyond typical public utility easements
Surrounding Land Uses: Vacant industrial park, community college
Site Comments: The site has average and typical utility.
Shackelford & Associates Existing Industrial Shell Page I 15
092716wsa HC BOC Page 81
Local Map
t -
~ '(ill} IT@
@ l @
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Tramway @ . .p @3 l
§] @ I .. \ @3 Semmole
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~ 220 O~•• Farm Rd ' ® .
Shackelford & Associates Existing Industrial Shell Page 117
092716wsa HC BOC Page 82
Survey
/ ~
hi ~!Gi I ' . ~~ '---R
Zft;J,.f
•w e~t
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1·111,•,;,·;~l-"! ' i• II II II iJ1~~1111111•j I '11,jcl1• ! 111 I
Shackelford & Associates
------
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Existing Industrial Shell Page 119
092716wsa HC BOC Page 83
Flood Map
STDB
,,
MAP DATA
Map Number : 3710956600J
Panel Date
FIPS Code
October 03,2006
37085
Shackelford & Associates
You ate currently logged in as (CUST10_20764) o."l 24.Jun-2016
220 Olive Farm Road, Sanford, NC
220 OLIVE FARM RD , SANFORD, NC
SubJe ct
ab
Census Tract : 0713.01
Geo Result : S8 (Most Accurate) -
single valid address match, point
located at a single known address
point candidate (Parcel)
Existing Industrial Shell
Flood
0 '<01 C Z'lni!
0 X$00 o• 8 Zo,,e
0 AZon•
11:1 V Zone
D 0201'~
0 /vu H ot Mappeo
Page I 21
092716wsa HC BOC Page 84
Foundation:
Basement/Sublevels:
Basement Use:
Structural Frame:
Exterior:
Roof/Cover:
Service Access/
Overhead Doors:
Parking Type:
Number of Spaces:
Condition:
Parking Index:
Shackelford & Associates
FOUNDATION, FRAME & EXTERIOR
Concrete slab
0 square feet; 0 sublevel(s)
N I A
Steel frame
Brick
Sloping / Metal
The building is served by six overhead doors, one for each possible
unit
PARKING
Asphalt paved open surface parking
58
Good
6. 7 spaces per 1,000 sq. ft. of building area
Existing Industrial Shell Pag e I 23
092716wsa HC BOC Page 85
Subject Photographs
Front View
Front View
Shackelford & Associates Existing Industrial Shell Page I 25
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Rear View
Rear View
Shackelford & Associates Existing Industrial Shell Page l 27
092716wsa HC BOC Page 87
Interior View
Interior View
Shackelford & Associates Existing Industrial Shell Page I 29
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Assessment and Taxes
REAL ESTATE ASSESSMENT AND TAXES
Taxing Authority
Assessment Year
Tax Identification Number
Land Assessed Value
Building Assessed Value
Other Property Assessed Value
Total Assessed Value
Totals
Total Land Assessed Value
Total Building Assessed Value
Total Other Assessed Value
Total Assessment
Total Assessment per OBA
Total Assessment per Land Acre
Rates, Taxes, More
County Tax Rate
City Tax Rate
Benhaven Fire District T ax Rate
Combined Tax Rate
Total Tax Amount
Property Tax Comments
Shackelford & Associates
Hamett County
2015
ASSESSED VALUES
0072382
$77,750
$238,690
$53,060
$369,500
$77,750
$238,690
$53 ,060
$369,500
$42.72
$118 ,97 7
0.7500
0.0000
0.0900
0 .8400
$3 ,104
Tax amount is based upon every $100 of assessed
va lue. The subject property is assessed similarly to
comparable properties in the area.
Existing Industrial Shell Page I 31
092716wsa HC BOC Page 89
Market Area Analysis
Location and Boundaries
The market area is shown in the figure below. The three delineated areas represent driving
distances from the subject property of five, ten, and fifteen minutes.
/
_., .. ,/
.......
·--.... -.. -·
\ . __ .....
:
!
I
0 I 2 .,· ,
i:=*===l Miles
..._., V
f( .
I >tC=.·; I /
Shackelford & Associates Existing Industrial Shell Page I 33
092716wsa HC BOC Page 90
Oesri· Demographic and Income Profile
220 Oli ve Farm Dr. San ford, North Carolina, 27332
Dri ve Time: 5 minute radius
Summary
Population
Households
fam ilies
Aver age H ousehold Size
Owner Occupied Housing Uni ts
Renter Occupied Housing Uni ts
Median Ag e
Trend5: 2016 · 2021 AN\ual Rate
Popu latio n
Households
Families
Owner HH s
Median Household Income
Hou•etlold• by Income
<$15,000
$15,000 • $24,999
$25,000 -$34,999
$35,000 -$49,999
$50,000 -$74,999
$75,000 -$99,999
$100,000 -$1 49,999
$150,000 -$199,999
$200,000+
Median Household Income
Average H ousehold I ncome
Per Capita Income
Population by Age
0 -4
5.9
J O -14
1 5 • 19
20 -24
25 -34
35 -44
45-54
55 • 64
65 -74
75 · 84
85+
Race and Ethnldty
White Alone
Blad< Alone
American Indian Al one
Asian Al one
Pacific I slander Al one
Some Other Race Alone
T ~o or More Races
Hi spanic Or igin (Any Race)
Data Note: tncome is e_.:pressied In current doll a ~
Census 2010
1,437
5 15
399
2.79
379
136
32.3
Area
1.94%
2.0 5%
1.88%
1.82%
2.11%
Census 2010
Number Percent
117 8.1%
123 8.6%
119 8.3%
109 7.6%
88 6.1%
226 15.7%
209 14.5%
199 13.8%
12 7 8.8%
78 5.4%
35 2 .4%
7 0 .5%
Census 2010
Number Percent
1,002 69.7%
286 19.9%
16 1.1%
13 0.9%
0.1%
62 4 .3%
57 4 .0%
133 9.3%
Source: US Census 6ure.:,u , Census 2 010 Summar.,., f ile l f sri forecasts for 20 16 and 2021
Number
68
57
94
7 1
132
61
56
16
7
$47,559
$58,271
$20,558
Number
123
120
122
108
107
238
227
202
175
10 1
4 1
10
Number
1,066
3 17
16
19
8 1
72
17 1
Shackelford & Associ ates Existin g Industrial Shell
Prepared by Esri ..
L
2016 2021
1,573 1,732
562 622
430 472
2.80 2.78
402 440
160 182
33.7 34.1
State Nallonal
1.16% 0.84%
1.10% 0 .79%
1.00% 0.72%
1.04% 0 .73%
2.16% 1 .86%
2016 2021
Pe r cent Number Percent
12.1% 82 13.2%
10.1% 59 9.5%
16.7% 69 11.1%
12.6% 73 11 .7"11>
23.5% 159 25.6%
10 .9% 75 12.1%
10.0% 73 1 1.7%
2.8% 23 3.7%
1.2% 8 1.3%
$52,781
$63,869
$22,608
2016 2021
Pe rcent Number Pe rcent
7.8% 134 7.7%
7 .6% 132 7 .6%
7.8% 1 29 7.4%
6.9% 119 6.9%
6.8% 103 5.9%
15.1% 276 15.9%
14.4% 252 14.5%
12.8% 204 1 1.8%
11.1% 192 11.1%
6 .4% 124 7 .2%
2.6% 55 3.2%
0.6% 13 0.8%
2016 2021
Percent Number Percent
67.8% 1 ,145 66.1%
20.2% 347 20.0%
1.0% 18 1.0%
1.2% 26 1.5%
0.1% 2 0.1%
5 .2% 104 6.0%
4.6% 9 1 5.3%
1 0.9% 2 16 12.5%
June 2 4 , 2016
P agel35
092716wsa HC BOC Page 91
Oesri· Demographic and Income Profile
220 Olive Fam, Dr, Santoro, North Carolina, 27332
Drive nme: 1 O minute radiu s
Summary
Population
Households
f am ilies
Average H ousehold Size
O'n'ner Occupied Housing Umts
Renter Occupied Housing Units
Median Age
Trendo: 2016 -2021 Annual Rate
Population
Households
familie s
O wner HHs
Median Household Income
Hous eholds by Income
<$1 5,000
$15,000 -$24,999
$25,000 -$34,999
$35,000 -$49,999
$50,000 • $74,999
$75,000 -$99,999
$100,000 -$149,999
$150,000 • $199,999
$200,000+
Median Ho u sehold I n come
Average Household l nrome
Per Capita Inco me
Population by Age
0 -4
5 • 9
10 -14
15 -19
20 -24
2 5 -34
35 -44
45-5 4
55 -64
65 -74
75 -84
8 5 +
Race and Ethnldty
Whitr, Alone
Blad< A lone
American Indian Al a ne
Asian AJ ane
Pacific I slander Alone
Some other Ra ce Al one
Tw o or More Ra ces
Hispanic Orog on {Any Race)
Data Note: Incom e is e ,cpresse d in curre nt dol:a r,
Cen11us 2010
1 0,879
3,729
2,938
2.92
2,443
1 ,286
30.0
Area
2.67%
2.54%
2.49'\I,
2.24%
2.00%
Census 2010
Number Percent
1,096 10.1%
1,066 9.8%
971 8.9%
822 7.6%
622 5 .7%
1,798 1 6 .5%
1,592 1 4 .6 %
1,297 11 .9 %
817 7.5%
521 4.8%
225 2.1%
5 1 0.5%
Census 2010
Number Percent
7,205 66.2%
2,405 22.1%
105 1.0%
1 44 1.3%
2 1 0.2%
491 4.5%
5 09 4.7%
1,155 10.6 %
Source: u S . C111rtSus Bureau, Census 2010 Summary r ile 1 f sri foreu1 sts for 20 16 iYld 2 021
Number
524
367
601
638
878
528
460
76
43
$47,756
$58,240
$19,502
Number
1 ,15 1
1 ,109
1,060
868
788
1,758
1,840
1 ,4 14
1,107
661
282
68
Number
7,757
2 ,704
112
213
39
637
642
1 ,491
Shackelford & Associates Existing Industrial Shell
Prepar ed by Esr1
2016 2021
12,104 1 3,811
4,117 4,668
3,207 3,626
2.94 2.96
2,581 2,883
1,536 1 ,785
3 1.3 3 1.2
State National
1.16% 0.84%
1 .10% 0.79%
1.00% 0 .72%
1.04% 0 .73%
2 .1 6% 1 .86%
2016 2021
Percent Number Percent
12.7% 6 18 1 3.2%
8.9% 380 8.1%
14.6% 485 1 0.4%
15.5% 679 1 4.5%
21.3% 1 ,049 22.5%
12 .8% 664 1 4.2%
11.2% 626 13.4%
1.8% 113 2.4%
1.0% 53 1.1 %
$52,721
$63,860
$21 ,249
2016 2021
Percent Number Percent
9.5% 1 ,302 9.4%
9.2% 1,274 9.2%
8 .8% 1 ,221 8.8%
7 .2% 1,03 1 7.5%
6.5% 811 5.9%
1 4.5% 2,036 14.7%
1 5.2% 2 ,033 1 4.7%
11.7% 1 ,561 11.3%
9.1% 1 ,270 9.2%
5.5% 808 5.8%
2.3% 376 2.7%
0.6% 89 0.6%
2016 2021
Percen t Number Percent
64.1% 8,556 62.0%
22.3% 3,088 22.4%
0.9% 125 0.9o/,
1.8% 308 2.2%
0.3% 55 0.4%
5.3% 8 2 9 6 .0%
5.3% 850 6.2%
1 2.3% 1 ,953 14.1%
June 24 , 2016
Page 137
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Oesri· Demographic and Income Profile
220 Olive Farm Dr, Sanford, North Carolina, 27 332
Drive Time: 15 minute r adi us
Summary
Population
Households
Fam 1l1 es
Average H ousehold Size
Owner Occupied Housing Umts
Renter Occupied Housing Units
Median Age
Trends: 2016 -2021 Annual Rate
Population
Households
Families
Owner HHs
Median Hauseh:1ld Income
Householda by Income
<$1 5,000
$15,000 -$24,999
$25,000 • $34,999
$35,000 -$49,999
$50,000 • $74,999
$75,000 -$99,999
$100,000 • $149,999
$150,000 -$199,999
$200,000+
Median Hou sehold I ncome
Average Household Income
Per Capita Income
Population by Age
0 • 4
5-9
10 · 14
15 · 19
20 • 24
25 -34
35 · 44
45 • 54
55 -64
65 -74
75 • 84
85+
Race and Ethnldtv
White Al one
Black Atone
American Indian Atone
Asian Alone
Pacifi c I stander Alone
Some Other Ra ce Alone
Two or Mor e Ra ces
Hispanic Orogin (Any Ra::,,)
Di!lta Note: Income is e(pressed in current dollar.i
Ce1111us 2010
29,527
10,234
7,875
2.88
7,133
3,10 1
3 1.5
Area
2.35%
2.17%
2.15%
2 .01%
1.73%
Census 2010
Number Percent
2,847 9 .6%
2,644 9.0%
2,492 8.4%
2,111 7.1%
1,646 5.6%
4,709 1 5.9%
4,211 14.3%
3,394 11 .5%
2,528 8.6%
1,803 6.1%
9 11 3.1%
23 1 0.8%
Census 2010
Number Percent
1 9,231 65.1%
6,380 21.6%
294 1.0%
359 1.2%
38 0 .1%
1 ,946 6 .6%
1,280 4.3%
4,330 14. 70/o
Source: U S Census Bure.-.i, Census 2010 Summary f tle 1 Esri forecasts f or 2016 ar1d 2021
Number
1,501
1 ,069
1 ,598
1,734
2,563
1,6 17
1 ,344
2 12
114
$49,696
$58,781
$20,123
Number
3,186
3,060
2,830
2,373
2,1 23
4,860
5,129
3,914
3,186
2,289
1,116
305
Number
2 1 ,658
7,495
347
580
75
2,468
1 ,749
5,588
Shacke lford & Associates Existing Industrial Shell
Prepared by Esrl
2016 2021
34,371 38,6 13
11,751 13,084
8,998 10,009
2 .92 2.95
7,946 8,777
3,805 4,306
32.6 32.2
Stat,, National
1.1 6% 0.84%
1.10% 0.79%
1 .00% 0.72%
1 .04% 0.73%
2.16% 1 .86%
2016 2021
Percent Number Percent
12.8% 1 ,710 13.1%
9.1% 1 ,051 8 .1)",!,
1 3.6% 1 ,226 9.4%
1 4.8% 1,826 14.0%
2 1.8% 3,019 23.1%
13.8% 1,986 1 5.2%
11.4% 1,823 13.9%
1.8% 309 2.4%
1.0% 134 1.0%
$54,156
$64,707
$2 1,932
2016 2021
Percent Number Per cent
9.3% 3,572 9.3%
8 .9<\lo 3,475 9.0%
8.2% 3,344 8.7%
6.9% 2,720 7 .0%
6 .2% 2,1 92 5.7%
14.1% 5,559 14.4%
14.9% 5,655 14.6%
1 1.4% 4,277 11.1%
9.3% 3,473 9 .0%
6 .7% 2,609 6.8%
3.2% 1 ,367 3.5%
0.9% 371 1.0%
2016 2021
Percent Number Percent
63.0% 23,624 6 1.2%
21.8% 8,369 2 1.7%
1.0% 391 1.0%
1.7% 824 2.1%
0.2% 104 0.3%
7.2% 3,016 7.8%
5.1% 2,285 5 .9%
1 6.3% 6,952 1 8.0%
June 24 , 2016
Page 139
092716wsa HC BOC Page 93
Conclusion
The demographics indicate in strong increase in population, at average annual rates significantly
higher than state and national averages. This would likel y translate into greater demand. The
graphs below illustrate the trend in industrial properties in the market area.4 The vacancy rate has
leveled after an increase and the asking price has also leveled after a decrease. This may represent
an overabundance of supply. Net absorption is negative over the last five years , which also
indicates a possible excess of supply. The probability of leasing reaches 50% at eighteen months,
which is longer than most markets, again indicating a large supply.
The leveling of the vacancy rate and asking rent may indicate supply is moving toward equilibrium,
but despite the possible increase in demand, the oversupply may indicate an above average risk to
the typical investor.
Vacancy Rate ~ Asking Rent Per SF
20 % $2 80
15 %
S2 60
10%
5% $2 40
0 o/o $2 20 11 12 13 14 15 11 12 13 14 15
Net Absorption Probability of Leasing in Months
500 100 %
l.J..
(fJ 0 v,
-0
C 50 % "' "' :,
0 -500 .i:: f-
-1 000 0 %
11 12 13 14 15 16 3 9 18 36 60 >60
4 Source : CoStar Real Estate Servic es
Shac kelford & Associates Existin g Indu stria l She ll Page I 41
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Highest and Best Use as Though Vacant
Legally Permissible
To apply the test of legal permissibility, an appraiser determines which uses are permitted by
current zoning, which uses could be permitted if a zoning change were reasonably probable, and
which uses are precluded by private restrictions on the site.
The subject site is zoned IND, Industrial District. This district allows industrial uses, including
manufacturing, warehouses, and self-storage. The restrictive covenants recorded in deed book
1921 , page 17 5 prohibit animal farms, quarries, and salvage yards/landfills.
Physically Possible
The physical possibilities of vacant land can be constrained by factors such as site size, shape,
frontage, availability of utilities, topography, soil composition, and other site conditions and
environmental factors.
The subject site has 453.77 feet of frontage along Olive Farm Road, which is an asphalt-paved
neighborhood street. The site is roughly rectangular, nearly level at grade, and is well drained to
the storm ditch system in the street. All necessary municipal public utilities are available to the
site. There are no physical limitations that would prevent development of the subject site with any
of the legally permissible uses.
Financially Feasible
Financial feasibi lity is the capability of a physically possible and legal use of a property to produce
a positive return to the land after considering risk and all costs to create and maintain use.
The surrounding uses are the industrial park lots , which are vacant with the exception of one lot
roughly across the street that was developed by Central Carolina Community College. As
mentioned in the Market Area Analysis section, the industrial market is relatively soft due to an
abundance of supply. Consequently, the absorption period for an industrial use might be too long
to provide the sufficient yield to a typical investor and immediate development of the land may
not be financially feasible.
Maximally Productive
The maximally productive use is the use that produces the highest residual land value consistent
with the market's acceptance of risk and with the rate ofreturn warranted by the market for that
use.
An industrial use is not currently financially feasible , so the highest and best use is a speculative
hold for future development when the market improves, likely with the absorption of the excess
supply.
Shackelford & A ssociates Existing Industrial Shell Page 143
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Valuation Methodology
Three basic approaches may be used to arrive at an estimate of market value. They are:
I. The Cost Approach
2. The Income Approach
3. The Sales Comparison Approach
Cost Approach
The cost approach is summarized as follows:
Cost New
-Depreciation
+ Land Value
= Value
Income Approach
The income approach converts the anticipated flow of future benefits (income) to a present value
estimate through a capitalization and or a discounting process.
Sales Comparison Approach
The sales comparison approach compares sales of similar properties with the s ubject property.
Each comparable sale is adjusted for its inferior or superior characteristics. The values derived
from the adjusted comparable sales form a range of value for the subject. By process of correlation
and analysis, a final indicated value is derived.
Final Reconciliation
The appraisal process concludes with the final reconciliation of the values derived from the
approaches applied for a singl e estimate of market value. Different properties require different
means of analysis and lend themselves to one approach over the others.
Analyses Applied
A cost approach was applied as there is adequate data to develop a land value and the depreciation
accrued to the improvements can be reasonably measured.
A sales comparison approach was considered, but not applied as shell buildings are not typically
sold in a shell condition. The more common practice of developers is to lease the building.
Consequently, the income approach will provide a more accurate opinion of value than the sales
comparison.
An income approach was applied as the subject is an income producing property and there is
adequate data to develop a value estimate with this approach.
Shackelford & Associates Existing Industrial Shell Page I 45
092716wsa HC BOC Page 96
Sales Comparison Approach -Land Valuation
The sales comparison approach is based on the premise that a buyer would pay no more for a
specific property than the cost of obtaining a property with the same quality, utility, and perceived
benefits of ownership. It is based on the principles of supply and demand, balance, substitution
and externalities. The following steps describe the applied process of the sales comparison
approach.
• The market in which the subject property competes is investigated; comparable sales,
contracts for sale and current offerings are reviewed.
• The most pertinent data is further analyzed and the quality of the transaction is determined.
• The most meaningful unit of value for the subject property is determined.
• Each comparable sale is analyzed and where appropriate, adjusted to equate with the
subject property.
• The value indication of each comparable sale is analyzed and the data reconciled for a final
indication of value via the Sales Comparison Approach.
Land Comparables
I have chosen 4 comparables for this analysis; these are documented on the following pages
followed by a location map and analysis grid. All sales have been researched through numerous
sources and veri fied by a party to the transaction when possible.
Unit of Comparison
Several units of comparison are available for land valuation including square foot , front foot, and
potential dwelling unit. One important consideration when determining the appropriate unit of
comparison is that productivity creates value. In this case, a developer is primarily concerned with
the size of th e site, making acreage/square footage th e primary unit of comparison.
Shackelford & Associates Existing Industrial Shell Page I 47
092716wsa HC BOC Page 97
Sale Price
Land Data
Zoning
Topography
Utilities
Shape
Flood Info
Cleared Percentage
Depth
Land Size Information
Gross Land Size
Front Footage
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Sale Price/Front Foot
Remarks
Land Sale No. 1 (Cont.)
$80,000
IND, Industrial
Level
EW
Rectangular
FEMAZoneX
100%
288
1.001 Acres or 43 ,604 SF
152 ft Total Frontage: I 5 I .54 ft Jarco Drive
$79,920
$1.83
$526
Vacant lot located in Tri South Industrial Park in North Harnett County, south of the city of
Fuquay Varina and north of the town of Lillington. Property is an assemblage to expand business
on adjacent lot, which is a light manufacturing use.
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Sale Price
Land Data
Zoning
Topography
Utilities
Shape
Flood Info
Cleared Percentage
Land Size Information
Gross Land Size
Front Footage
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Remarks
Land Sale No. 2 (Cont.)
$140,000
IND, Industrial
Level
EW
Rectangular
FEMAZoneX
0%
2.970 Acres or 129,373 SF
250 ft US Highway 401 ;500 ft Pamela Court
$47,138
$1.08
Vacant industrial lot located at northwest comer or US Hwy 401 and Pamela Court in Spence
Mill Industrial Park in north Hamett County, south of the city of Fuquay Varina. Property
purchased for development into an auto repair facility s pecializing in tire repair. Buyer felt road
frontage along US Highway 421 was valuable.
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Financing
Verification
Sale Price
Land Data
Zoning
Topography
Utilities
Shape
Flood Info
Cleared Percentage
Land Size Information
Gross Land Size
Front Footage
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Remarks
Land Sale No. 3 (Cont.)
Market
Meda Williams; Tilghman & Company, Other sources: Tax
Records/ROD,
$100,000
IND, Industrial
Level
EWSG
Rectangular
FEMAZoneX
100%
5 .230 Acres or 227,819 SF
230 ft Emmett Road
$19,120
$0.44
Vacant lot located in Edgerton Industrial Park in Hamett County, south of the city of Dunn.
Property purchased to develop light industrial manufacturing facility for Kerney & Associates.
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Property Identification
Property Type
Address
Tax ID
Longitude, Latitude
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Recorded Plat
Property Rights
Conditions of Sale
Financing
Verification
Sale Price
Land Data
Zoning
Topography
Utilities
Shape
Flood Info
Cleared Percentage
Land Size Information
Gross Land Size
Front Footage
Indicators
Sale Price/G ross Acre
Sale Price/G ross SF
Remarks
Land Sale No. 4 (Cont.)
Indu strial , Light Industrial
275 Fish Dr, Angier, Harnett County, North Carolina 27501
48947
W-78.748144, N35.506801
Billy and Sandra Surles
Shelley's Mom's Bakery, Inc.
July3l ,20I4
3234/827
98 /327, lots 12 & 13
Fee simple
Arm's length
Market
Guadalupe Vega; Other sources: Tax Records/ROD
$109,000
GC, General Commercial, Commercial
Level
EWSG
Polygon
FEMA Flood Zone X
100%
1.628 Acres or 70,916 SF
400 ft Fish Drive;l 14 ft NC Hwy 2 10
$66,953
$1.54
Vacant lot in Honeycutt Industrial Park in town of Angier. Purchased with intent to build a
bakery.
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. -.
Land Sales Summary ~nd Adjustment Grid -
Subject Comparable I Comparable 2 Comparable 3 Comparable 4
Location: 220 Olive Farm 192 Jarco Drive 80 Pamela Court 150 Emmett Road 275 Fish Dr Drive
City: Sanford Fuquay Varina Fuquay Varina Dunn Angier
County: Hamett Hamett Hamett Hamett Hamett
Date of Sale: May-16 May-15 Apr-14 Jul-14
Sales Price: $80,000 $140,000 $100,000 $109,000
Gross Acres: 2.21 1.00 2.97 5.23 1.63
Price/Gross Acre: $79,920 $47,138 $19,120 $66,953
Adjustments
Rights Transferred : Fee Simple Fee simple Fee s imple Fee simple Fee simple
Adjustment
Adjusted Sales Price $80,000 $140,000 $100,000 $109,000
Financial Considerations: Market Market Market Market
Adj ustment
Adjusted Sales Pric e $80,000 $140,000 $100,000 $109,000
Conditi ons of Sale: Assemb lage Arm's length Arm's length Arm's length
Adjustment
Adjusted Sales Price $80,000 $140,000 $100,000 $109,000
Market Conditions: Current May-16 May-15 Apr-14 Jul -14
Adjustment 0% 0% 0% 0%
Adj usted Sales Price $80,000 $140,000 $100,000 $109,000
Adjusted Sales Price per Acre $79,920 $47,138 $19,120 $66,953
Location : Superior Superior Similar Similar
Adjustment 0% 0% 0% 0%
Site Size (Acres): 2.2 1 1.00 2.97 5.23 1.63
Adjustment -20% 0% 30% -10%
Cleared Percentage: 100% 100% 0% 100 % 100%
Adj ustment $0 $4,000 $0 $0
Zo ning: IND IND IND IND GC
Adjustment Simil ar Similar Simi lar Su perior
Adjusted Sales Price per Acre $63,936 $51,138 $24,857 $60,258
Overall Compari son Sig Superior Superior Similar S uperior
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$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0 .
0
Cleared Percentage
1
Size Adjustment
2 3 4 5 6 7
The cost to clear land is an expense to a developer, thus an adjustment for cleared percentage is
necessary. The current market trend is to clear the majority of land for construction of
improvements and then landscape afterwards. The adjustment is based on the actual cost to clear
property.
Zoning
Comparable 4 is given a superior qualitative rating for its superior zoning, which is less restrictive
than the subject's.
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Cost Analysis
The next step in the cost approach _is to estimate the replacement cost of the buildings and site
improvements. The replacement cost of the subject site and building improvements are based on
Marshall and Swift Valuation Service, a nationally recognized cost service. Construction costs are
compiled on a national basis and adjusted for time and location through use of multipliers. Where
appropriate, we have used local cost data to supplement the Marshall and Swift data.
The following soft costs are included in these calculations.
• Engineering
• Architectural
• Permits and Legal
• Contingency
• Builder's Profit
The cost value analysis is on the following page and the cost figures are from the # 14: Garages,
Industrials, & Warehouses Section, with Class S construction, of average to good quality and being
a shell building only, with no interior finish . The base cost per square foot for this type of structure
is $28.48, which is applied to the gross square feet after cost multipliers are factored in to account
for certain differences as explained below .
• Area -used to account for the gross area of the building as compared to the perimeter
• Local -used to account for differences in regional labor rates
• Current Cost -used to account for the recentness of the cost figures in the guide
• Story Height -used to account for differences in story heights
When the base cost is applied to the gross building area and the multiplier, it comes to a total cost
of$242,933.
Entrepreneurial Incentive
This factor reflects the profit necessary for the developer to undertake the management,
responsibility and risks of construction associated with the s ubject property. Current valuation
theory states that the four components that create value are land, labor, capital and coordination.
Developer's profit as used in the cost approach reflects the coordination component of value.
Typically, developer's profit runs 10% to 20%: I have computed developer's profit at I 0% of
construction costs.
Depreciation Analysis
Depreciation may be defined as any lo ss of value from any cause. There are three general areas
of depreciation: physical deterioration, functional obsolescence and external obsolescence.
Depreciation may be curable or incurable, the test being that money spent to cure the depreciation
be gained in value. If the depreciation costs more to fix than will be gained in value, then the
depreciation is considered incurable.
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. ...
Cost Approach Grid .. . ....... -..
Marshall & Swift Cost Data
Bu ilding Classification: Industrial Flex B ui ldings (Shell)
Cost Section : # 14: Garages, Industrials, & Warehouses
Building Class: S Quality: Average/Good
Local Multiplier: 0 .880 Current Cost Multiplier: 1 .030
Height/Story Multiplier: 1.036 Other Multiplier: 1.000
Area/Perimeter Multiplier: 1.050 Combined Multipliers: 0.986
Cost Analysis of Improvements
Item Unit Type Cost Quantity Multiplier Total
Flex Building Per SF $28.48 8,650 0.986 $242,933
Total Building Improvement Costs $242,933
Cost Analysis of Site Improvements
Item Unit Type Cost Quantity Multiplier Total
Parking Lot Per Space $1,400.25 58 0.889 $72,183
Total Site Improvement Costs $72,183
Subtotal: Building & Site Costs $315,116
Entrepreneurial Incentive 10% $31 ,512
Replacement Cost New Of Improvements $346,628
Physical Depreciation of Improvements
Component Eff.Age Life Percent Amount
Flex Building 5 40 13% $33,403
Physical Depreciation of Site Improvements
Component Eff.Age Life Percent Amount
Parking Lot 1 7 14% $1 1,34 3
Total Physical Depreciation of Improvements $33,403
Total Physical Depreciation of Site Improvements $11,343
Fu nctional Obsolescence $0
External Obsolescence $0
Total Depreciation and Obsolescence $44,746
Depreciated Value of Improvements $301 ,881
Land Value
Land Value $88,000
Cost Approach Value Indication $389,881
Rounded $390,000
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Market Rent
Market Rent Comparables
I have researched 5 comparables for this analysis; these are documented on the following pages
followed by a location map and analysis grid. All comparables have been researched through
numerous sources and verified by a party to the transaction when possible.
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General Tenant Summary
Owner
Verification
Tenant Expenses
Rent Analvsis
Actual Rent
Remarks
Improved Lease No. 1 (Cont.)
Caman Properties, LLC
Ray Rhodes; Caman Properties, Other sources: Tax Records
Utilities
$6.00/SF Average
Multi-tenant flex space located on Cameron Drive in central Sanford. Each 1,500 square foot
space has a bathroom, two offices, an entry door, and a I O'wx 1 O'h roll up door and pays $750 per
month. The property consists of two buildings with five units in each building. Occupancy runs
between 90 and 100%.
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Tenant Name
Ivivey Mechanicals
General Tenant Summary
Owner
Verification
Escalations
Remarks
Improved Lease No. 2 (Cont.)
Tenant Rent Roll
Size Rent/SF Lease Type Beg. Date Term
1,800 $6.00 Gross 9/1 /2014
Stoney Run Properties, LLC
Johnson Tilghman; Tilghman & Company
CPI
3 years
Flex space located in industrial park in the town of Benson. Park is approximately one quarter
mile from Exit 73 on Interstate 95. Per Johnson Tilghman, property is full as of third quarter
2015. Each 1,800 sf unit comes with one drive in door and one drive in door with loading dock.
Most suites have some office space.
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SF
Construction Type
Roof Type
Foundation
Electrical
Stories
Year Built
Condition
Tenant Name
Cealay Plumbing
General Tenant Summary
Owner
Verification
Escalations
Remarks
Improved Lease No. 3 (Cont.)
3,657
Class S, average quality, metal
Metal/sloping
Concrete slab
Adequate
I
2008
Average to good
Tenant Rent Roll
Size Rent/SF Lease Type Beg. Date Term
3,657 $4.92
Reedy Branch Farms
Thurman McLamb;
CPI
Gross 6/1/2013 3 years
Flex space located along Old Roberts Road in 319 Commercial Park in the McGee Crossroads
area north of Benson and east of Angier. Space had small amount of office and includes two roll-
up doors, one with a loading dock.
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Parking
Construction Type
Roof Type
Foundation
Electrical
Stories
Year Built
Condition
Tenant Name
First Choice
Community Health
Pit Stop Marine
General Tenant Summary
Owner
Verification
Remarks
Improved Lease No. 4 (Cont.)
Open concrete
Class S, average quality, metal
Gable/metal
Concrete s lab
Adequate
1
2006
Average
Tenant Rent Roll
6
Size Rent/SF Lease Type Beg. Date Term
3,000
3,000
$4.80
$4.80
Gross
Gross
Tag Investment Group, LLC
Gary Adcock; Other sources: Lease
9/1/2012
7/1 /2012
Metal building located in industrial park in city of Angier. Each space has two roll-up, dri ve -in
doors, two at each end of the building.
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Comparables Map
@
~ 5onfo,d 9 Comp~
( ~pl
1way @ § s~runole
®
Ol1v1a
,:::::,;, 8"'bKu• 'lR.J SubJe<l
®
Pmeview
®
JohMotw,tw
@
Analysis Grid
Mamer~
®
Anderson
Creek
Duncan
Lun,t
Wilbon
fuquay Varina
Ho<IIHMI
@
8 ®
Chal~ate
SpU1l9S
Qeomp4
.\ngl~ ®
'
®
c~rH,
®
@
6uMlevcl
ronv1!~
Lt1ldtn
Coats
®
Erwtn
@)
@
.
@ w
.s..
'f
' Willow @ Sl)f,ngs
Qeomp3
Mc:Gtt @ Cross1oadsf
®\
~
® iU
Benson ij[i
I
The above rentals have been analyzed and compared with the subject property. I have considered
adjustments in the areas of:
• Lease Terms • Economic Trends (time)
• Conditions of Lease • Location
• Other • Physical Characteristics
On the following page is a rental comparison grid displaying the subject property, the comparables
and the adjustments applied.
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Comparable Rent Adjustments
The comparables have received adjustments for various characteristics that influence value.
Downward, or negative, adjustments have been made when a comparable possesses a superior
characteristic, while upward, or positive, adjustments are made for inferior characteristics. The
intent of this process is to bring the comparables to approximate parity with the subject. For
characteristics with enough available market data, a quantitative adjustment was extracted from
market data and used to make an appropriate adjustment. For situations without sufficient market
data, a qualitative adju stment was used ba se d o n the apprai sers ' experience and opinion with input
from market participants and brokers.
Conditions of Lease
All Lease Comparables had normal conditions of lease, so no adjustment is required.
Market Conditions
All leases are current leases, having been signed in the last few years.
Type of Lease/Expense Structure
All lease types are gross, where the typical expenses associated with owning real estate, such as
property taxes, real estate insurance, and maintenance and repairs, are paid for by the landlord.
Consequently, no adjustment is necessary.
Location
Comparables I and 5 are given a slightly s uperior rating for location.
Size (SF Leased)
An adjustment is necessary for siz e because larger buildings tend to lease for a lesser amount per
square foot than smaller buildings. This is due primarily because of the greater amount of potential
users of s maller buildings, and thus greater demand, and also the greater amount of holding costs
associated with larger buildings.
Construction Quality
An average building is representative of the majority of buildings of its occupancy. Higher-than-
average buildings have a better appearance with more ornamental work and/or fenestration. Lower
than average quality are built with a minimum investment in mind with little ornamentation with
interior finish and partitioning is minimal and/or of low quality.
Condition
This is an adjustment for the general condition of the improvements. This takes into account the
state of repair of the comparables as well as the remaining life as of the effective date of the
appraisal.
The subject is in good condition, having had no use since construction.
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Market Rent Reconciliation
The range is $5.40 to $5.91 , while the average is $5.64 and the median is $5.70. Two of the
comparables had on overall superior rating based on the location, so the reconciled rental rate
would likely be below the median.
Ranges & Reconciled Rent
Low: $5.40
High: $5.91
Average: $5.64
Median: $5.70
Reconciled Market Rent: $5.60
Based on the above analysis, I have reconciled to a market rent of $5.60 per square foot, annually,
as of June 27 , 2016. Multiplying the reconciled market rent by the subject 's total area produces a
PGI of $48 ,440.
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' Expenses ..
Min Max Median Mean Reconciled
Insurance %EGI 1.01% 3.43% 2.62% 2.45%
$/SF $0.10 $0.18 $0.14 $0.14 $0.14
Management
%EGI 3.43% 4.73% 3.77% 3.92% 4.00%
$/SF
Mtc/Repairs %EGI 0.89% 5.77% 1.47% 2.39% 1.00%
$/SF $0.04 $0.48 $0.10 $0.19
Utilities %EGI 0.59% 2.66% 1.29% 1.48% 1.30%
$/SF $0.03 $0.11 $0.09 $0.08
Misc %EGI 0.08% 3.30% 0.84% 1.09% 1.00%
$/SF $0.01 $0.39 $0.03 $0.09
Below is the income statement. Reserves for capital expenditures such as roof or HY AC system
replacement are not used because the capitalization and yield rates used in the analysis do not take
into account reserves and investors in this area do not include reserves in their analysis.
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Capitalization Rate
The capitalization rate is the factor that converts the stabilized net operating income (NOD to a
present value. It is the ratio of net income to value or sale price.
NOi + Sale Price= Capitalization Rate
For example, if a property sells for $500,000, and has a stabilized NOi of $50,000, the indicated
capitalization rate is 10%.
Overall cap rates can be estimated with various techniques; the techniques used depend on the
quantity and quality of data available as well as the type of property being appraised.
Market Extracted Rates
Deriving capitalization rates from comparable sales is a preferred technique when sufficient data
of similar, competitive properties are available. There are several limitations to this technique.
One limitation is lack of recent sales of similar, competitive properties in a particular market,
especially in a non-metropolitan area. Another limitation is lease information may not be available
for a particular property that has recently sold, either due to the property being owner-occupied or
because the parties involved consider the information to be confidential and are unwilling to share
the lease information with outside parties. Further, cap rates derived from sales occurring several
months prior are limited in relevance to an analysis of a similar property today as capitalization
rates change over time based on both local and national influences in the marketplace.
When rates derived from comparable sales are used, the overall capitalization rate is applied to the
subject property in a manner consistent with its derivation. In other words, if the market-derived
capitalization rates are based on the properties ' net operating income expectancies for the first
year, the capitalization rate for the subject property should be applied to its anticipated net
operating income for the first year of operation.
In this analysis I was unable to locate lease information with sales of similar properties.
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Mortgage-Equity Techniques
These techniques utilize lender and real estate investor investment criteria to develop, or synthesize
a capitalization rate. These methods are applicable only for investments which are typically
leveraged. A primary benefit of this type of analysis is that in leveraged investments, lenders
typically make up 70% to 80% or more of the total investment requirements and current
information on these requirements is readily available.
For these techniques, investment requirements of both the equity investor and the lender are
necessary . The best method for determining these requirements is through surveys.
I have researched mortgage rates and terms typical for the subject within the market area. The table
below details the input necessary for the band of investment analysis calculations. Data dealing
with mortgage terms is obtained from lender surveys , while items dealing with equity returns are
obtained from investor surveys.
Mortgage _a~_d ~9u_!ty Requirements
Loan to Value Ratio 80.00% =M
Equity Ratio 20.00% =E
Equity Dividend Rate 11.500% = Re
Interest Rate 5.500%
Amortization (Yrs) 20
Monthly Constant 0.688%
Annual Mortgage Constant 8.255% =Rm
DCR 1.270 =OCR
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. . ,. . : .. : Banet of Investment Method
Mortgage Constant (Rm)
Equity Divided Rate (Re)
Capitalization Rate (Ro)
Ratios
80%
20%
100%
Rate
8.255%
11 .500%
Value
6.604%
2.300%
8.904%
The NOi will be divided by this cap rate to calculate an opinion of value using the band of
investment technique. The estimated value based on this indicated cap rate and NOI is $395,347.
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Final Reconciliation
The process of reconciliation involves the analysis of each approach to value. The quality of data
applied, the significance of each approach as it relates to market behavior, and defensibility of
each approach are considered and weighed. Finally, each is considered separately and
comparatively with each other.
Value Indications
Land Value:
Cost Approach:
Income Approach:
Reconciliation of the Approaches
$88,000
$390,000
$378,000
I gave the Cost Approach slightly more weight during reconciliation because it uses cost figures
that actually reflect the shell condition of the building. Typically, shell buildings are advertised
for lease and then the lease is negotiated based partly on the buildout costs or the tenant may have
a buildout allowance based on the asking rent.
Value Conclusion
Based on the data and analyses developed in this appraisal , I have reconciled to the following value
conclusion(s), as of June 27, 2016, subject to the limiting conditions and assumptions of this
appraisal.
Reconciled Value:
Shackelford & Associates
Premise: Current
Interest: Fee Simple
Value Conclusion: $385 ,000
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• As of the date of this report, I have completed the continuing education program for Designated
Members of the Appraisal Institute.
Matt Hawk, MAI
Certified General Real Estate Appraiser
A6797
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HAttNETT COUNTY CA.MA
Wl8VJEWtA
!HARNETT COUNTY Of
1220 0UVE fARM OR SA.NFORD 27332
106168000
6 /14/2016 11:34:46 AH
Retum,/ApPf:i'II PwuJ: Ol•IS76• •
Not.es· •0035· -02
~LAT: UNJQ ID
2008/ L088279"45S
10 NO ; 9577· 36-1007 000
BENHA~N FIRE AOVALOA.EM TA>C (100), BENHAVEN RESCUE AD'v\. TAX ( 100). COUNTY WIDE AOVALOREM CAA.ONO. I
TAX ( 100), SOUD W"'5TE FEE SOUO WASTE ( l} oft
Reval Year l009 Tu LTt' 2A WESTERN HAANEn lNOMAPt' 2008-1088 Year. 2016 3 110 Al:. SRC•
Aoprllsed by 26 on 1 J/24/201S 00390 Wttt tnoustn.11 Patx TW-03 Cl•FR•EX• AT· LAST ACTION
20160520
CONSTRUCTION DETAIL MAJtKET VAlUE DEPRECIATION CORRILAllON o, V.U.Uf
oun&tlon . 4
EYB,AYB
UC ~nder
1
10.60000
:....-ad Footil'\O 6 .D< ulJ m LJ BASE I onstrua10n
,uo Floof" SySU'm • 2 Area A.ATE RCN I Stanctardl 0 .01000 REOENCI: TO MARKET
SI.ab on Gtade· ··= 10 I 07 18 650 I 73 I 45.99 139781 ,~ ... ""GOOD lro.1 l>EPR. BUILDING VALUE -CARD 238 69' Re-scten~VCommM:Sal ~EPR. 01/Xf VALUE · CARO 53,064
~tenor WaAs • 21 TYPE. COMMERCIAL COMMEA.ClAL
'4,UUCET LAND VALUf. • CARO 77.7!,( ace &ick 25.0C STYLE I · I O~ory !TOTAL MAJU(ET VALUE. -CARD 369,SOC
oohn9 Strvaun!: • 10
;c:~el Frame or Truss 11.0(
oof.ng Cover • 12 'fOTAL UPRA.tSlD VALUE -CARD 369::: ite:tal 6 .0C
nte:ncw Wal Construc:bOn • 1 'rOTAL AP,RAISED VALUE • PAJtCR 369,
,t,111~0,Mrimum 2.0<
nteliof" Fk>Or Cover -03 TOTAL PHSEHT LtSI VALUE • PAltCn • Onctttt flnished 1.0( TOTAL YAU.IE. DUIRJtfD -PARCEL • Keating fut"a -Ot TOTAL TAXABLE VALUE -PARCEL 369,SO< ... o.oc
Utit,gType: • 01 PRIOR .... o.oc BUILDING VAUJE : i\lr Cond,hoNng Type -01 OBXF V,uJE .... o.oc LANO VAUJE : Structural Frame -06 !>RESENT USE VAUJE
Ste.I 14.0C DffERREO VALUE (
e:lhng a. lnsul.ation -11 OTALVAWE (
~o Ce,hng • Root and WeN 3.0C
n:sul.lted
>-ta lf·Bl!lthrooms
U<..oFUS· OU..·O
"''"" PEllMn
~-OFUS • OLL · 0 I CODE DATE NOTE NUMBER AMOUNT
rDTAl POIHT VALUf (74.(KK
81.JlLDING ADJUSTMans
IOualltv I l I Averaoe 11 .nnn ~OUT: WTRSHO.
$haoe/DHlanl 2 I RKtanale 1nnn SALES DATA
ilH ls;rel S.z< ll.980 ""· 1.,, I L OTAL ill>JUSTMENT FACTOR 0 .98 IA.ECORD ATE DUD INDICATE.
~OTAL QUAIITY 1ND£X 7 IIOOOAc-nn·R I TYPE 1/l SA.US PRICE
+ -• • -------• • • -• • • 1 7 3 • ----• -• • --• ----• • + g:~~~~I ~ ~~ :g I ~ I! I 402700C
C
II A S I
I I
I I
5 5
0 0 BUILDING AAEA 8,650 I I
I I Hons
I I
• •••••••••••• --• • • 1 7 3 • • • • • • • • • • • • • • • • • • +
SUBAlWI,
oD.l.fSCIUPflON~OUN,l THL.....l ~....I ~rt I OAIG 'V.
~LDG.IAY elrva
AHN DEP bvJ c~o I 08 /Xf D£PR.
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!REPLACE 1 • None -AROLTS S.000 IS !O '"' S111W1£' I a.•S<j "91.a, iuTAL 08 Xf VALUE SJ OS
TOTALS
UITlDlNG DU4ENSIONS BA5•Wt7)S50E173N501 .
.AND INFORMATION
OTHER
~DJUSTMfNTS AND LAND TOTAi.
HIGH UT AND us • LOCAL FRON DEPTH LND CONO "OTIS "OAO UNn LAND UNT TOTAL AOJUSTEO LAND OV£RRIOI LAND
lST US£ CODE ZONING TAGE DB'TH / SIZE MOD fACT AF AC LC TO OT TYPE PRICE UNl'Ts TYP ADJST UNIT PRICE VALUl VALUE N OTU
OMMER:CW.. 0700 0 0 1.0000 0 I 0000 2S,OOO .oc 3.110 AC '·= 25,000 oc 7775( 0
TOTAL MAltk.Er LAND DATA 1).11( 77,75Cl
roTAL PA£$ENT USI DATA
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83334 • P574
IIIDIIUIIIIH
281SIIUI ..
Parcel 2 :
<.: 10650 0005; 110650 0005 OJ; Il0650 0005 05
: JJ 0650 0008 1 O 1/r rouglr ll 0650 0008 13
Parcel3:
Parcel 4:
PArccl 5:
os.: 03 9576 0035; 03 9576 0035 111 llrrougll OJ 9576 003516
.. 021 sos 0/06
OS36 0018
WESTERN HARNETT LNDU
Lillington, N.C . 27546;
and
EMMETT EDGERTON INDUSTRIAL PR
a Nonh Carolina nonprofit corporation
P.O Box 1270
Lillington, N C. 27546
hereinafter called GRANTO RS, and
Lillington, N.C. 27546
hereinafter called GRANTEE.
W I TN ES s E JU:
Tllut the Grantors, for a valuable considerati on paid by the Grantee, th
acknowledged, has and by these presents do grant, bargain, sell an d convey, ,
resttictions, reservations, covenants, and other exception s set fonh in Exhibit B uni
those cenain parcels of land situated in Harnett County, Nonh Carolin, and more
follows:
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STAT
cou
Shackelford & Associates
B3334 -P576
WESTER,'\/ HARNETT INDUSTRIAL PARK, INC.
a North Carolina nonprofi1 corporation
By: -, . .., ,)/.ff/,_y,;if//-
mt• If. Randolph III, Prtsidtnl
3
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B3334. P578
EXHIBIT A
Property Descriptions
8Rl(jH1WATER 8/0TECIINOLOGY AND MEDICAi. CENTER PARJi fPORT{QNJ
OWNED BY HARNE1T FORWARD TOGETHER COMMITTEE
Parcel ID Nos.: 110650 0005; JJ0650 0005 OJ; 110650 OOOS OS
· ni I an existing iron stoke in the northen, righl a/way margin of U.S. Highway 40/ which said
.., ,g iron uJre ls th<! southemm~t point of rhe Salmon and ,',,fa11s tracr as shown on tllQI 1urvey recorded
a =8-67. Hamm County Regislry: thence from ;aid Begin11i11g Point and rumri11~wi1/1 the right of
ay · o U S. J · ay 401 North 5/ degrees 26 minutes 28 seconds Ww l .84J.68/ee11ltrougltw1
is one onum / to a point: thence o new line with 1/,e boundary a/the Gerald Johnson property (. * 392 a /98 ett Courtly Registry) Nor1h 38 degre<'s 32 mimlles] 3 uconds East 417.89 feet to
North 51 degrees 14 minules 35 seconds Wes t 316.32 jut to a point in the
·n ajNCSR U36 (Ma11hews Rood) a 60/oot right of way: thence rwmingwith
gin o/NCSR l 436. North 39 degrees 40 mi nut<> 26 seconds East 490.6::!feet
e · 59 minute• 05 s.c·v11ds East 61 .03 jt'et to a point; th,mce North 32 deg,us
feet 10 a new iron stake; thenc• a ne w line South 88 degree, .f6 minutes J 2
an entting square iron; thence South 85 degrees54 minutes 31 .<ecands East
,r ipe; !hence South 88 degree, -11 mimrtes 32 seconds East 903.53 feet to 011
I de •• 02 minutes 06 seconds West 7 30.38/eet tr.rough an existing iron stau to
an extstmg cone e 011 ; t nee South 60 degrees 40 minutes 49 seconds West 1150.49 feet to an
e:r.isfi11gconcretemo um 11: ti rrc Sout degrees 39 minmes JO seconds Wesl 447.47feerro a11 exi.r1i11g
iron stake; thence So th O e -I · 1111 .32 seconcls West JJ95.43jeetthrougha11existing iron stake 10
the POINT OF BEG 'NIN 9.10 acres more orless.
The ubow, described tract i par.
Mickey R. Benner,, PLS r ·o, d
de.rignared a., Tract I and I
tho, surwy dated 6/12/06 by
Registry. 77,is is the same lrac
Book 1251. Pa ge 9 l I. !larne11
a)
bj
c)
ti)
PARCEL 2:
LESS AND EXCEPT THE FOUOWING TRACTS:
a) Those convtya,rces 10 First Choice Community Ilea/th Cm/as recorded
Book 2853. Page 341, Hornell County Registry.
b) That co11veyo11ce to the Srate of North Carolina recorded in Boak305 8. P
Regi1t1y.
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B3334. P580
/, feet 10 an axle. curnerwlrhslJidCEBCO; th<na:Nort// 73 d,•gree.,·09m1m1us 07 seconds West 3,337.13
el r an axle near tht edge of the easlfrn righ1-0j-way afSrate flood No. I I 17, andco11ti11uing. North 73
de es 09 minutes 07 seconds We5129.65 feet ro 1h< center /in~ ,,jsaicl S.R. Nu. I J 17. "l\'urstry Road". ,·aid
inz being near Union ,\,fethudisr Church and 11,arly oppo>ite the center/i11e ofS R. No. I I 7i "Pate Road",
if, e11ded; thence along the centerline of said Sl(,te Road No. I I I 7, the following courus and di!tances:
or :!5 degrees 30 minvies 49 seconds East 396.38 feet; and a curve wi1h a radi,u of/, 696. 7 I feel, a c~ntral
It 36 dts:rus 50 minutes 07 seconds, a distance of/, 090.8 I Jeer; and North 61 degree.r 10 minutes 56
ec nils asr 643.54fur;a11d a c11rve wilh a radivsof 1,191.13 feel, acentrai angle of29degrees 05 minu1cs
sec ds. a distance of 6H.55 feet; uml, Nurth 33 degrees 10 mi1111tes I 2 s~co11ds East 242.13 feel to nail in
r .,aid SR. Nu. I I I 7; thence. departing said cemerlint. North 53 degrees 46 minutes 38 s~conds
137 feet an iron pip, corner: thence North 38 degree., 14 minutes 19 sel·ond.s Ea.st 17./.35 feet to Iron
p· u.ne · ti nee North 15 degrees 18 minllftl 55 seconds EOJt 206/eer to point i11 the centerline of aid
.R o. I J " 11 Road": thence with the cemerli11e of said S .R. No. I 1 I 7, North JJ degrees 20
, in I 2 s 11 · Ea,t '9-1.62 Jett 10 another point ,n said centerline; thence a curve with a radius of
J, 7.24 et cl a al angle of !6 degrees /9 minutes 50 Seconds, a distance of 876.98 /etl to the
cott In the cenler/ine of said S .R. I I 17. cunluin/ng approximately 011e Thou.sw,d
red en acres, ore or ltS5 .
ev 11!at 88.81 acres conveyed to Shaw as set forth on Map #2005 Page 619
. 03 acres also com'Cy <dto Shaw as set forth 011 Map /198 Page 334, Hamett
That 20./. JO acre ,racr known as .4
2011-670 which was com·ey,d to
Harnett County Registry.
Furt/Jermor~. this land wt restrictive cow.mom may be mod,fie 'Y a
Harnett or a11yfi1111re owner, af Parcel 5 or o por1io11 thereo/ ml
recurcled insin,menl.
7
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Engagement Letter
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ANTICIPATED SCOPE OF WORK
External and Internal inspection
Valuation approaches
Sal8$ Comparison Approact,
Income Approach
Note: Appraiser stian use all approaches nae65sary to develop a credible opinion of velue.
APPRAISAL REPORT
Report option
Appraisal Report
Fonn or format:
· Nllmitive
CONTACT FOR PROPERTY ACCESS, IF APPUCA8LE
Provided by client
DELIVERY DATE
Two weeks subsequent to acceptance
DELIVERY METHOD
U.S . mail I E-mail
NUMBER. OF COPIES
2
PAYMENT TO APPRAiSER
$3,000 Three thousand U.S. dollars
PROPERTY 00CUMENTAT10N
Client will provide necessary financial information, leases, plans, maps, and/or specifications to property
complete appraisal. These include but are not limitod to copies of all current leases, operating statements,
and constructions plans (if applicable)
PROPERTIES UNDER CONTRACT FOR SALE
If the property appraised lo CUTTen~y under contract for sale, Client shall provide to Appraiser a copy of said
contract including all addenda.
CoffFtDl:NTIALITY
Appr;iiser shall not provide a copy of the written Appraisal Report lo, or disclose the results of the appraisal
prepared in accordance with this Agreement with. any party ot her than cueni unless Cienl authorizes.
except as stipulated In the Confidentiality Section of the ETH ICS RULE of the Unlfonn Standards of
P/'Qfessional Appraisal Practice (USPAP).
CHANGES TO AGRl!l!l,£NT
Any changes to the assignment as outlined in this Agreement shall necessitate a new Agreement The
identity of the cfient, intended users . or Intended use, tne elate of value. type of value, o r property apprel sed
cannot be Cllanged without a new Agreement.
CANCEL1.ATIOH
Ctient may cancel this Agreement at any time prior to the App ra isers delivery of the Appraisal Report upon
written notification to the .Appraiser. Client shal pay Appraiser for worl< completed on assignment prior to
Appraise(s reoelpt of written cancelation notice, unless otherwise agreed upon by Appraiser arid Client
in writing .
C 2006, Apprai&al ln&litute
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Appraiser Qualifications
Matthew P. Hawk, MAI
E D UCA TI ON
Shackelford & Associates
2005 -Present The Appraisal Institute
• Advanced Income Capitalization (02)
• Advanced Sales Comparison and Cost Approach
• Narrative Report Writing (03)
• Advanced Applications
• General Market Analysis and Highest & Best Use
• Uniform Appraisal Standards for Federal Land
Acquisitions
• Valuation of Conservation Easements
• Advanced Sales Confirmation and Analysis
• The Cost Approach to Commercial Appraising
• Business Practices and Ethics
• Sub-division Analysis
• Condemnation Appraising: Principles and Applications
• The Appraiser as an Expert Witness: Preparation and
Testimony
• Litigation Appraising: Specialized Topics and Applications
• Advanced Spreadsheet Modeling for Valuation
Applications
April 2005 Appraisal Schools by Curtis West
• Introduction to Income Prope rty Appraisal (G l)
December 2004
School
Triangle Appraisal & Real Estate
• Introduction to Real Estate Appraisal (Rl)
• Valuation Principles and Procedures (R2)
• Applied Residential Property Valuation (R3)
• USPAP (R4)
1984 -1987 Embry-Riddle Aeronautical University
• Bachelor of Science in Avionics Engineering
• Associates of Science in Avionics Maintenance T echnology
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Appraiser License
NORTH CAROLI. A APPRAlSl~.L BOAR
Shackelford & Associates
MA ITHEW PHILLIPS HA WK, MAI
CERTIFIED GENERAL, A6797
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