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HomeMy WebLinkAbout092716wsa 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 092716wsa HC BOC Page 1 "° n 0 "" 1.11 n L.. 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X >-(]J Q) i... ..__... +-' Q) ~ C :::) C C 0 0 _J u 092716wsa HC BOC Page 18 092716wsa HC BOC Page 19 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. C:\Users\C42MLI\AppD1:1.tn\Locn l\M icrosoft\Wi nd ows\T i:mporn ry Internet 1:i1cs\Col'lten t.Outlook\GCR4X X I B\e.gi:nd llform2016 . doc Pugel of2 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 , Page-2 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, Page-3 ~ 007 /009 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 ~ 008/009 092716wsa HC BOC Page 24 09/09 /2016 12 :02 FAX 9 10814 456 0 Harnett_Clerk_of_Court 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 C o u n t y V e t e r a n s T r e a t m e n t C o u r t J O I N T Substan c e A b u s e & M e n t a l H e a l t h Se r v i c e s A d m i n i s t r a t i o n B u r e a u o f J u s t i c e A s s i s t a n c e U . S . D e p a r t m e n t o f J u s t i c e T I T L E O F G R A N T J O I N T A D U L T D R U G C O U R T S O L I C I T A T I O N T O E N H A N C E S E R V I C E S , C O O R D I N A T I O N , A N D T R E A T M E N T 0 9 2 7 1 6 w s a H C B O C P a g e 2 6 BACKGR O U N D The Hamett C o u n t y V e t e r a n s T r e a t m e n t C o u r t r e q u e s t e d a n d i s g r a n t e d f r o m Joint Adult D r u g C o u r t G r a n t P r o g r a m f u n d s i n t h e a m o u n t o f $ 9 6 9 , 1 1 0 f r o m SAMHSA an d $ 4 0 0 , 0 0 0 f r o m B J A f o r a c o m b i n e d c o s t o f $ 1 , 3 6 9 , 1 1 0 t o enhance an a d u l t d r u g c o u r t t o a s s i s t n o n v i o l e n t o f f e n d e r s w i t h s u c c e s s f u l rehabilitation f r o m t h e u s e o f d r u g s a n d / o r a l c o h o l . T h e p o p u l a t i o n t o b e served is Vete r a n s . F o r t y - f i v e c l i e n t s w i l l b e s e r v e d w i t h S A M H S A f u n d i n g each year of t h e g r a n t f o r a t o t a l o f 1 3 5 c l i e n t s o v e r t h e l i f e t i m e o f t h e p r o j e c t . Forty-five cli e n t s w i l l b e s e r v e d w i t h B J A f u n d i n g e a c h y e a r o f t h e g r a n t f o r a total of 135 cl i e n t s o v e r t h e l i f e t i m e o f t h e p r o j e c t . 0 9 2 7 1 6 w s a H C B O C P a g e 2 7 GOALS • Goal 1. To provi d e c r i s i s r e s p o n s e a n d c r i s i s s t a b i l i z a t i o n s e r v i c e s t o a l l r e q u e s t i n g V e t e r a n s . T h i s g o a l w i l l b e accomplished th r o u g h t h r e e o b j e c t i v e s a n d s e v e n b e s t p r a c t i c e s t a n d a r d s r e l a t e d t o t h e t a r g e t p o p u l a t i o n ; historically disa d v a n t a g e d g r o u p s ; r o l e s a n d r e s p o n s i b i l i t y o f t h e j u d g e ; i n c e n t i v e s , s a n c t i o n s , a n d t h e r a p e u t i c adjustments; sub s t a n c e a b u s e t r e a t m e n t ; m u l t i d i s c i p l i n a r y t e a m ; a n d c e n s u s a n d c a s e l o a d . • Goal 2:To provi d e m a n d a t e d s u b s t a n c e u s e d i s o r d e r s ( S U D s ) o u t p a t i e n t t r e a t m e n t a n d / o r e v i d e n c e - b a s e d psychotherapy a n d c o r r e s p o n d i n g p s y c h i a t r i c m e d i c a t i o n m a n a g e m e n t . T h i s g o a l w i l l b e a c c o m p l i s h e d through three ob j e c t i v e s a n d f o u r b e s t p r a c t i c e s t a n d a r d s r e l a t e d t o s u b s t a n c e a b u s e t r e a t m e n t ; complementary t r e a t m e n t a n d s o c i a l s e r v i c e s ; d r u g a n d a l c o h o l t e s t i n g ; a n d m o n i t o r i n g a n d e v a l u a t i o n . • Goal 3.To provi d e p e e r s u p p o r t s e r v i c e s t o e a c h p a r t i c i p a t i n g V e t e r a n . T h i s g o a l w i l l b e a c c o m p l i s h e d t h r o u g h the best practice s t a n d a r d r e l a t e d t o c o m p l e m e n t a r y t r e a t m e n t a n d s o c i a l s e r v i c e s . • Goal 4. To offer e v i d e n c e - b a s e d s k i l l - b u i l d i n g p r a c t i c e s . T h i s g o a l w i l l b e a c c o m p l i s h e d t h r o u g h t h e b e s t practice standard r e l a t e d t o c o m p l e m e n t a r y t r e a t m e n t a n d s o c i a l s e r v i c e s . • Goal 5. To offer e v i d e n c e - b a s e d s k i l l - b u i l d i n g p r a c t i c e s . T h i s g o a l w i l l b e a c c o m p l i s h e d t h r o u g h t h e best practice sta n d a r d r e l a t e d t o c o m p l e m e n t a r y t r e a t m e n t a n d s o c i a l s e r v i c e s . 0 9 2 7 1 6 w s a H C B O C P a g e 2 8 Talking Po i n t s Prior to this grant, ho w d i d t h e V e t e r a n s T r e a t m e n t C o u r t o p e r a t e ? The Team operated w i t h c o l l a b o r a t i o n f r o m t h i r t y d i f f e r e n t o r g a n i z a t i o n s v o l u n t e e r i n g t h e i r t i m e a n d e n e r g y with one priority in m i n d : T o p r o v i d e t h e V e t e r a n s w h o e l e c t t o p a r t i c i p a t e i n o u r p r o g r a m t h e b e s t m e n t a l health and substance u s e d i s o r d e r s e r v i c e s a v a i l a b l e w i t h t h e p r i m a r y t r e a t m e n t f a c i l i t y b e i n g t h e V e t e r a n s Administrative Medic a l C l i n i c s o r V A C o m m u n i t y B a s e d O u t p a t i e n t C l i n i c s ( C B O C s ) . U s i n g a G o v e r n o r s C r i m e Commission grant at $ 7 5 , 0 0 0 a n n u a l l y s i n c e O c t o b e r o f 2 0 1 3 , t h e t e a m h a d o n e f u l l t i m e c o o r d i n a t o r a n d t h e ability to receive ann u a l t r a i n i n g a t t h e n a t i o n a l l e v e l ( N A D C P a n d J F V ) . Why was the grant wr i t t e n ? It was written becaus e t h e V e t e r a n s T r e a t m e n t C o u r t T e a m r e c o g n i z e d t h e u r g e n t n e e d t o p r o v i d e m e n t a l health and substance u s e d i s o r d e r s e r v i c e s f o r n o n - v i o l e n t v e t e r a n s i n c r i s i s w h o a r e u n a b l e t o u t i l i z e t h e Veterans Administrati o n M e d i c a l F a c i l i t i e s d u e t o t h e i r M i l i t a r y d i s c h a r g e s t a t u s , u n a v a i l a b i l i t y o f t i m e l y intervention of Veter a n s A d m i n i s t r a t i v e s e r v i c e s , o r l o g i s t i c a l c h a l l e n g e s t h a t p r e v e n t s c o m p l i a n c e w i t h Veterans Administrati v e t r e a t m e n t p r o g r a m s . ( N O T E : W e a r e t r e a t i n g a V e t e r a n w i t h d i a g n o s e d P T S D , depression, and subst a n c e u s e d i s o r d e r s . T h i s V e t e r a n r e c e i v e d a l e s s t h a n h o n o r a b l e d i s c h a r g e s t a t u s f o r being absent without L e a v e o r A W O L . T h e r e a s o n h e w a s A W O L w a s t h a t h e c h e c k e d h i m s e l f i n t o t h e military mental healt h c l i n i c . 0 9 2 7 1 6 w s a H C B O C P a g e 2 9 Talking Po i n t s What will the grant b e u s e d f o r ? The funds from the t w o f e d e r a l g r a n t s w i l l e n a b l e o u r V e t e r a n s T r e a t m e n t C o u r t t e a m t o i d e n t i f y a n d t r e a t more Veterans usin g c o m m u n i t y m e n t a l h e a l t h s e r v i c e s w h i l e e n s u r i n g t h e y a r e a d d r e s s i n g t h e i r substance use disor d e r s . How will the grant b e n e f i t t h e C i t i z e n s o f H a r n e t t a n d s u r r o u n d i n g C o u n t i e s ? This grant will increa s e o u r a b i l i t y t o t r e a t a l m o s t d o u b l e t h e n u m b e r o f v e t e r a n s i n c r i s i s t h e r e b y reducing the numbe r o f c r i m e s a s s o c i a t e d w i t h i l l e g a l d r u g u s e ( s e l f - m e d i c a t i n g ) a n d m e n t a l h e a l t h associated criminal a c t i v i t i e s . N O T E : A s o f 1 4 S E P T E M B E R T w e n t y V e t e r a n s h a v e s u c c e s s f u l l y g r a d u a t e d from our Veterans tr e a t m e n t p r o g r a m a n d w e h a v e a z e r o p e r c e n t r e a r r e s t s r a t e . What can the Vetera n s T r e a t m e n t C o u r t T e a m a n t i c i p a t e i n e n s u r i n g t r e a t m e n t w i t h t h e s e V e t e r a n s ? Based on our experi e n c e , V e t e r a n s w h o h a v e c o u r t i n v o l v e d v i o l a t i o n s a n d h a v e n e v e r a d d r e s s e d t h e i r P T S D , Mental Health, or su b s t a n c e u s e d i s o r d e r s n e e d i m m e d i a t e m e n t a l h e a l t h a n d s u b s t a n c e u s e i n t e r v e n t i o n . A clinical assessment i s c r i t i c a l t o i d e n t i f y i n g t h e a p p r o p r i a t e c o m m u n i t y s e r v i c e r e s p o n s e . M e n t a l H e a l t h a n d Substance use Inten s i v e O u t p a t i e n t t r e a t m e n t w i t h o v e r s i g h t f r o m n u m e r o u s m e m b e r s o f t h e t e a m a n d a n assigned mentor wil l b e o u r i n i t i a l t r e a t m e n t p r o t o c o l a n d i f n e e d e d I n - r e s i d e n c e t r e a t m e n t . 0 9 2 7 1 6 w s a H C B O C P a g e 3 0 Talking Po i n t s What will the Harnet t C o u n t y V e t e r a n s T r e a t m e n t C o u r t l o o k l i k e i n t h e n e x t 6 t o 9 m o n t h s ? This court will contin u e t o g r o w w i t h a d e d i c a t e d t e a m o f b o t h p a i d a n d v o l u n t e e r m e m b e r s o f t h e community with the a b i l i t y t o i d e n t i f y , r e a c h o u t , a n d b r i n g i n f i l l n o n - v i o l e n t M i l i t a r y V e t e r a n s w i t h m e n t a l health and substance u s e d i s o r d e r s a n d t o p r o v i d e t i m e l y e v i d e n c e b a s e d t r e a t m e n t r e s u l t i n g i n h e a l t h y Veterans giving back t o t h e i r c o m m u n i t i e s . This grant will allow y o u t o o p e r a t e a t a g r e a t e r d e g r e e f o r t h e n e x t t h r e e y e a r s . H o w w i l l y o u s u s t a i n t h i s level after the grant e n d s ? We have already tak e n m e a s u r e s t o p l a n f o r t h a t d a y . W e a r e a c t i v e l y c o l l a b o r a t i n g w i t h t h e s t a t e a n d county government t o d e t e r m i n e w a y s t o s u s t a i n t h i s l i f e c h a n g i n g t r e a t m e n t c o u r t . 0 9 2 7 1 6 w s a H C B O C P a g e 3 1 -Position Requests Backup information forthcoming 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. C:\Users\gwheeler\AppData\Local\M icroso ft\W ind ows\JNetCache\Content.Outl ook\TPTEQCLV\Ame nd Ordinance 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 I f -; -~~;~o;~v·;;~~N ,-, I I . .i A20~ I t ~ ·; ~-.. --y- ---.!..:..:..:. ~;~1,.1.•..:.;."'~-1 !''!..~ .. J,,, E!..r:•.;_r;,, ... ~-;:.(;:'.'. :.'ti - 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. I \ \ I ' I J I : J I S eag le & Associates IDENTIFICATION OF THE SUBJECT PROPERTY t•. 0 ,1 0 CY i?"'"' t,NcU-- ,.,_##f fflllW r'f r""'ll •H I,\ p .11 1!.!J.">,M' ..,....,r-,• ,,,.\ _.,.,-.,.,,.,.-........ r,11 ..,•M r;.·.~ • ....:-~:.,./.~' .. ., .. ,}, ... ,. ....... 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 Seagle & Associates ~ubjett location ?/ IJ Pineview 27 I NC-27 W ·eubecue Alpine Dr " er C .. a, C '?-,6 I\AiCl'O io'H« Kran,o , Rd 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 I z~~c 1?!~!.:RicT:::=:::: ::~:::~: :-i!;i:~~.11.m1 1:~~ .. :~C'., · .. ';l~:;~:_c-fret ......... . :'.llllwmm L ot \','~dtll :'.lilllllll\trn F10:1 t Y.ud Sttlncl: .......... .......... .. ........ . :'.11ll.i.imnm Rear Y .u:d Se tb:1ck . . ·• :\1utimn1:n Siclt Y :ud Setbac\: :'.l i .~.Xmnm Bi.i'iJcti11g H ·,i{gfi-r. l "1.Jt ;$ Otllerwise Pecminffi 1 :\,[;;:i:iJ.1_nu11 $J.~).t .Y :1rd ~~t!?.,>.d: Corne, Lo t JND f ;O ft 0 ft,. J! ft LI -t:),!,GO I ;c, ft 30 ;r 25 it, .. i! 11•· ... I C'OO .... ~oo··~I t::.~·&l l ~O~~:::r.· H~O -·1 J .J ~ .tCu·'.. .r),0~ \. 0 ........ . ....... , __ _ JC•'.• it DP IC•Cl ft t·o .,., it'' I 3(• rt ......... , ____ _ ~ ft >· \."D 0 :"t =· 10 ft>" l"D .;:;. ft l'D _;: .. ~.!··-.I •• 7~~ ~- .\ I· shall ,nean the h sted 1e quae m e11t st:rnds uulcc H ad ):.lC t".:.lt p1openy 1s zont tl 1t ~1c\e11u .. ~l: then tlic se ?b ack shill b e 50 fre-t . Fi ""· <-h""ll1 n""l r11 , tht-1,c.r ,.A ,,...r11t·~,.1nc"n~ <.t~r.c\c.. 11111,-c.."' ·u·\\:ir-,..n • p1ripi--1~· i , 7nn,.r1 ,,.~arlr--i·ni11 th.--,, rh,. St"t bnck ~h:\ll b l" 20 it·et C }· s.h .. 111 rne:,::: t:1:i t r!1e l i-:red r~qtt1r erne:H s r.,nd~ :-.nd :ipphe-s. ,o '!1:-~gl~ :-:\,~1ilr d-:"\·~UJ:1g-~ -:r1". e::,ep:-10:1 t!l~: vhe:1 the si:1gle fomil•· cl··,e llin~ y~1 cl :s lc,otecl ocl ,"C"e nt to s"icl ri··-ers o r c reel:s Ii H e el bekn·1 the ~-~,·cl re q11:re me:n sh:,11 bt> :,s ioll,~"·s: !. ).Lu"4i,.ini Y.H:cl fc., C;,1).: !F c"c ~31) it. _; )-!,:1:m·.:m Y r.i:d io1 o:he1· cre>eks· 100 fr. D ..i · !h.l.11 .:x:.c:l.n the l::tcd 1C C}t'l.!.1cn1c-i:t ~t.1l:d~~ lHtlCi! :he k•:: l ! :,d1:1cc1:: tc, :\ll ::'I.CCC'~~ <-:t~e!-:.lc-:1: :u:d CJ L ;,1,··:1:<" 1:1 t"c-t. rhc-n the sc:bic!: sl.~l) b" I ~ frc-1 E l"D <h.,J! '-:.,1:<i i o f ··t·:1cleil:-u:g Zc,:;.,:g D:<a:c " :1:.-C11:n:!? r:::n -~:H·re-::1ctc~t<"<l. :he i:eg-,1bt1e>n' c,: :b t-tinclt-r)y!:1g :011H :~ d1Hl'1C't ~h:l!.l p.i:~-:11! F DP d::;l! ~ :~;.i:: . .:t :·c ,1 ·'Df'--1:'!o p;l\t-.:.~: Pl.,.:.1 1:".'C'i1 :.:.1:.:.g :l:.u ... -·::e 1e .:.:.:.cl.:c :~::~ct. r~e i:itf!U~.1 n o 1! ~ :0 1. :h.c !J)tc1i:t-ci 1te:1: sb.,J.I b e ~r":eci i.::: the 1ecit,:1ecl De·,e:,,p,:1c11: Pl.1:1 Seagle & Associates 26 092716wsa HC BOC Page 57 Central Ca rolina Community College 18.235 acres IARHCTT COUNTY or R.~.un/tt1 1,.ll!'.s p.,,.,.,, 03·9576· · r~c-!~:: 00 \'i 0~ :-:n ru r.fF. FAA.M nn r.:.u mR.tJ :,71.1: f-lAT: I.ti!·~ l '.J ;c,c :)J10C¢ :,, ·~~ 1<~,i..~nn, rr N<)• •~:, H ir.n1 nr,1 f!fN;-.A\F N FI1F A ... N ;. O~F t1 Tt.X {J or.1 RFl\...<i/.'l.F N ;i=~Cllf:.. "'Jt/ T~>: (l(•O) C+'>tltlT"" .... mf l.it..-i.:,r-.u . l of ~W~LL'RLM ,.,_, (100), ~'JULl \\'A~l LILL ~J LI.J \V.lvlL (I ) I IRcv•I Yu ,: =~o, Tu LTl!:ll Wf;TE RI, H',1'<1/ETT V.l)U.•P .t:008·1 00 6 l.!tO ~.C. <r.r .• f~•1 . :NG ~ ...... ~ ~y :6 U I l lf:,lf:0 15 ( U ~O l'J .. t luJUl\!UI P4r ~ T'/,·Ol Ci -F R-El<· ,·,r-.AST ,\,:.,c~ '.'"fJ1 tl'.l'l \'."l') (UN~I IIUCIIU~ l>llAll :~ ~I :~·vi:~ I :?:J~ IJU'KU'IA uun CO MRU.AUONOI VAi.UL FnuMillin n • u.:: v,.1nder J 0 .t,0001 r.;,r,u1 rllctn,9 ~.n, "'om.lr1.t.l1 .. ,11 S..b noor ~y~tem -: HOD t.rr, QU~1 q ATf ACN I ~'tt'l--da"" I U.VlO QI ·x F:rF P\t:F T() Ml\f'tf<l"'FT $-1,t, v 11 C,r 4J•-6 .N tt 'Ji U.l•:tO n 4 !..~1; )~t'U l4 Y. :i():)tl IVJ.l lllf'll. I.IU1ll\1Nb VA'-UL -l..tRU .:~u t,!l t W.t:.k ~~it Jr...c,'l'Y'T":'-d•I E,lr1101 W,lb • :1 1"1PEr C~MY.EP.CIAL t..OMHL..C.•".lt.l ~rl'r.. 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I J I I I I • I I > I ••~i"":~ .Ii .J 0 11d1>r:!CUPTIONC OVll.lT..L...l,11nsl IIHJT I ontr.'\lo L~.l l\YD1r.n1 AN.N n Fr k.,J % I O R/XF Ofrn ,IU'Ct COM> Rll'fe V COit!> W'l.lUI l _.1"1 AMI A "\\. ua•& l •, l 'I ',I' l'~VH,l . ~, :.l"',U'il ·,:.I ":~ -T:"ii:'"'1 ''] I ":~ C'Jll ',!f e:;:r:------t 6 SC ~OC ?5'°n,.~. r:~u,11,; '•"'"' r ,, ',l ;) 0 fll ,n •, ,~1r ''',l lt FIREPLACE ,l -1/u:i 0 c \£~, LI!., :, IAl;, r. :o l ',;/J r, 10. -~; :~~i ·;~ l ~ 1:,~1· ~URARIA ,J~? ~U I U IAl U UI JII VALU L ~J o:.d TOTAi .~ ,.~s AIJllnlN<. OJHFN<.tON«. Ft..f.-\'t I ;~r"oF 17.ll:li(S . U\NP JNtO M I\TIQN Htr.HF .. T ANll ll~F ,or"' FAON nFPTH INll <ONn IANll lffl'Tffi A UliTT I ANn IOTHER l\ruUSlNEHUF ~ U\ltO ;-~ TOTAi. UNI' TnTl•\j An1H'iTFIIF I , ANn nw-11~mF IANll !lfW !.~'--f:_n'l_F MJ!.l!lf, TAr,F nF~I l.f_,'il7F !;!!ID fArT .J!F_AC_) f~TO OT TYrF _!'_R iff _ IINIT!'. _TVJ". ~!!._T UHITP~lr.F ~~YJ' VAIUF Hi>TF.!'i ~Q~t.Kl:JAL 0/W Jl"fl ' J u 1.UU)U l• ioooii i ::!.,,OO U 'J J J l' ~·-:.ouc :::t.01.:u.c.~l nr .. t .. fOTAL KN\Kr:TU,ND DI\TI\ ),IIC T7,7~, fOTAI rRP",~NJ u .. , nu A 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 Ce n t r a l Ca r o l i n a Co m m un i t y Co l l e g e 18 . 2 3 5 ac r e s La n d Sa l e s An a l y s i s Ce n t r a l Ca r o l i n a Co m m u n i t y Co l l e 2 e Su b j e c t Pr o p e r t y Co mp a r a bl e Co m p a r a b l e Co m p a r a b l e Co m p a r a b l e La n d S a l e O n e La n d Sa l e Tw o L a n d Sa l e Th r e e La n d Sa l e Fo u r Lo c a t i o n Ol i \ · e Fa n n R d N C 2 1 0 O f f KC 21 0 Ti p p e t R d E Ja c k s o n Bl v d Ha m e t t Co u n t y Ha m e t t Co u n t y Ha m e t t Co u n t y Ha m e t t Co u n t y Er w i n S: l ! e D a t e "> . I A F~ b . I i . 20 1 2 Ju n . 2 i . 20 1 . t No \ · . 13 . 20 1 5 Ja n . 20 . 20 1 5 S3 l e Pr i c e "> . I A $3 9 , 0 0 0 S1 2 5 . 0 0 0 S9 5 . •)0 0 S2 0 5 . 0 0 0 Zo n i n g Mu l t i p l e Co m m GB - G e n Bu s a G C G e t C o m m B2 Bu s i n e s s Si z e in Ac r e s 3. 1 1 1. 0 0 1 4. 0 i 2. S I 6. 3 6 0 Pr i c e Pr r Ac r e N I A 53 8 ,9 6 1 SJ 0 . 7 3 5 S3 3 . 8 0 8 S3 2 . 2 3 3 Se q u e n t i a l Ad j u s t m e n t s Fo r El e m e n t s or Sa l e Pr o p e r t y Ri g h t s N I A :e e Si m p l e Fe e Si m p l e Fe e Si m p l e Fe e Si m p l e Ad j u s t m e n t X I A 0% 00 . . b o<·o 0% Ad j u s t e d Va l u e N I A S3 8 , 9 6 1 $3 0 , 73 5 $3 3 , 8 0 8 S3 2 . 2 3 3 Fi n a n c i n g . Te m i s N I A Ma r k e t ~l a r k e t Ma r k e t Ma r k e t Ad j u s t m e n t N I A 0% 0% OV o 0% .' \ d j u s t ed Va l u e N I A S3 S . 9 6 1 $3 0 , 73 5 S3 3 ,80 S $3 2 , 2 3 3 Co n d i t i o n s o f Sa l e / t i n N I A Fe b . li . : : ! 0 1 : : ! Ju n . 27 . 20 1 . t }: o Y . 13 . 20 1 5 Ja n . 20 . 2 0 1 5 Ad j u s o n e u t N I A () 0 ,4 0% 0% o~ o Ad j u s t e d \' a l u e N I A $3 S .96 1 S3 0 . i 3 5 $3 3 . 8 0 8 $3 2 . 2 3 3 Co m u l a t h · e Ad j u s t m e n t s Fo r Ph n i c : a l Ch a r a c t e r i s t i c s L x :at i o n A v c r a ~ c 0 % 2 0 , 0 O <o 0 % Ac c e s s O l i , ; e f a n u R d 0% 0% 0 % 00 / o Si z e in Ac r e s 3. 1 1 0% 0% O' o 0% To p o g r a p h y le \ · e l 0% 0% 0 % 0% Mu n i c i p a l ut i l i t i e s \ \ · at e r /Se w e r 1 El e ! T el e 0% 0% o<·o 0% ll , e t Ad j u s t m e n 1 . 't ' - I A oo o 20 % oo . o o~ o At l j . l" n l t Pr i c e /Ac N I A S3 8 . 9 6 1 S3 6 .88 2 S3 3 . 8 0 8 S3 2 , 2 3 3 A, · g . Ad j . Pr l c e J A c S3 6 . 3 I 3 Se a g l e & As s o c w t e s Co m p a r a b l t Comparable La u d Sa l e FiTe Land Sale Sli US 42 1 / P r o s p e c : Ch .tOI South Ha m e t t County Hamett County Ja n . 2 8 . 2 0 1 6 May. 12. 2015 S1 0 5 . 0 0 0 Sl.J0.000 Co m m Ind 2. S . 3 0 2.S80 S3 7 . 1 0 2 548,611 Fe e Si m p l e Fee Simple o~ o 0% $3 7 . 1 0 2 S4S,611 Ma r k e t !\•farket o, -~ 0% S3 i . 1 0 2 S-tS ,611 Ja n . 2S . 2016 May . 12. 2015 0% o•,'i, S3 i . 1 0 2 S48.6ll o~ o -20% 0% 0%, 0% 0% 0 % 0% 0% 0% 0% -20% S3 7 , 1 0 2 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 )lost n ·n·nl da,;w,;ls("min an compktl·d Rt·.al Es tati: Fmam.·i:. Valu~·. &. luH·~tm ~·u t Pc·rlbmrnun· .Jsi mr< \"r rnr-.r i\ I Al Phn .\~lwvillr N(" .ln1m11"' ,o 1, lntrod11cti~,11 to G1ccn Buildiup_r;: Principles ,r..; C'on~cp;!> Sa:.idm .4.dNU:lti5, SR,A R akigh . NC l\fa_y 20 l ~ Bu siu.:>!>s Pract ices &. Ethi.:>~ folm Bl)~worth , :X1Al . Greeusbo r,,, );C ':-eptemb:-1· 201 ~ Aual)Ziill!! the Effrc·t; oi E11\'iro11111m t1-1l Ct,utnmiuatiou 011 Real J'r(lper1y Ni('k Tillema . }.l.,\I , Pinehmst. NC Nlwemher 12. 20 I ~ Uuifonu St:mdmds of Pn.,fo;sivual Apprnisa l J>rncti1:I.' 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LLP fi.;lditJ I3 nnk .I: irsl hnancial B:iil ey & Dixc n . I.LP C:trnliua First Bauk l't•) lit'! & sv1 uill St,,te Fn rm Rnuk Th.:· loynl O r(l .:-1 of ~,fo ,,~(' I OWII o f (.",:,melil1S Ho:rrin~ '.\lcBe1 111ett. LLP S11u T111 ~1 Baul, Cdlio:1:-, luh:1 uali vrn,1 EG&G Th,1111n~ n.uefont. P . .-\ Wnstc Jlln11ngcmcu1 Peachtr.:-.:> Fin:-iucinl W:il}.1:111 D(l uk 011.:- .Kl::K" (.'ent\lrn Fnqu:.y Partner» F L•m Oaks Bank \';illi:) ~aliL•u;1l 1:3auk WNC & :\;.s<'Cl~tes C"e111rnl ('amlina ("n1 111111111i1y Hospital He1 sy Jolt11!.0 11 1\lemonal Hn,pi ra l F o.:ndl (ias Cn11pm1y Rnlci1'-l1 ~l nsoni c l.od~..: NC Rnilw;icl Co111 pm1~ New Ce11 111ry Ra ul,: Trnrn llff11q1rny-\"aii1 1.1 R1 icl!!ev iew Capit:,I Snl111io1H F:ti r-Yi ew C'i >11u11t>1cial :'>IC T11m11il.e ,\nlh mitv Silwr r i11 am::.il (irnnp Smith ,\11cl erso11 I.aw Finn NC fJt'p:1r1111enl of Rew1111~ Rowe11 s T.mv . PT.T.C · Tvwu t,f Cury \\'ra k 1: <:c-11111y .Ud. {>f I.:tl. Q111:~t l>ingnc•~ti c:, 'St>htn~ L:1b :, Syno\'C'lll. Financi.11 Fi1 ;.1 nr111k C:ir,,l in~ I .nnd :\('qui sitit,n=- lJS !\a\·a 1 Fac ili1ies US l>t'pm 1me11I o f l11t e1i m lJS fi:.h :u1d \\'iltlliie App1;1is~l st.'n·ic.,, inclml.,, 1ml ant not lirni t ... cl l o r .. tail 11,.,s. umllif:1111il~ :1111 1 !}tmernl c1·11 1m,m :i:il irn:mne p1 \,dt1 ci11 ~ pn,pe1tie;.. Spec i.1111 ,e i:ro1,e11ies .111:l marl:et smdies n:·e .,ccepted ,,11 a case by cn~e bnsis . Ri~ht ,-.1 ""Y ,111al~sis ;n1d 11eg,>l1,11 i :m~ tilt 1ig l1t or way me .1cceJHt>tl 111 11le 1 c1111trac111.il !Iasis. l\ly t''-ptriem:~ e~.lt>111b IP rL·mk1i 11µ kslinwny in ,·,,urt rn~c-s ii~ ,·:di a s publit' Li~·nriu~~ aud dd>,1k on·r 1•1l'J>L·1ty j~~1K·~- 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 @ I I s E :r .. Sanford @ill ~ IT@ .. ~ @ ~ ~ @!) •""" Western Hill• @ill .f .. .-r\, I ' @ill .. @ill Broadway @ill 'l,, . ' i Tramway @ . .p @3 l §] @ I .. \ @3 Semmole Traf.s End j { [Iili] @ill i @) .. ' ' "' '® l .. [§] ~ ~ I . mill . ~ §1 CD tillTI I ~® @) Lemon Spnngs ~ \ ' o:@ ')' ~~..., ~ ~ • ~ ¥, (§] • I ~ Ohv1a [ill!] [!llil ,; , ' . @ill [§] ·~ .... CD . E@) , • ~ 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 I ; • -CA I • I i -.. i \. , 1·111,•,;,·;~l-"! ' i• II II II iJ1~~1111111•j I '11,jcl1• ! 111 I Shackelford & Associates ------ -------.. ________ -- 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 092716wsa HC BOC Page 86 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 092716wsa HC BOC Page 88 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 092716wsa HC BOC Page 92 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 092716wsa HC BOC Page 94 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 092716wsa HC BOC Page 95 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. Shackelford & Associates Ex isting Industrial Shell Page l 49 092716wsa HC BOC Page 98 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. Shackelford & Associates Existing Industrial Shell Page I 51 092716wsa HC BOC Page 99 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. Shackelford & Associates Existing Industrial Shell Page j 53 092716wsa HC BOC Page 100 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. Shackelford & Associates Existing Industrial Shell Page I 55 092716wsa HC BOC Page 101 . -. 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 Shackelford & Associates Existing Industrial Shell Page 157 092716wsa HC BOC Page 102 $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. Shackelford & Associates Existing Industria l Shell Page I 59 092716wsa HC BOC Page 103 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. Shackelford & Associates Existing Industrial Shell Page j 61 092716wsa HC BOC Page 104 . ... 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 Shackelford & Associates Existing Industrial Shell Page J 63 092716wsa HC BOC Page 105 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. Shackelford & Associates Existing Industrial Shell Page I 65 092716wsa HC BOC Page 106 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%. Shackelford & Associates Existing Industrial Shell Page 167 092716wsa HC BOC Page 107 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. Shackelford & Associates Existing Industrial Shell Page 169 092716wsa HC BOC Page 108 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. Shackelford & Associates Existing Indu strial Shell Page 17 1 092716wsa HC BOC Page 109 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. Shackelford & Associates Existing Industrial Shell Page 173 092716wsa HC BOC Page 110 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. Shackelford & Associates Existing Industrial Shell Page J 75 092716wsa HC BOC Page 111 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. Shackelford & Associates Existing Industrial Shell Page 177 092716wsa HC BOC Page 112 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. Shackelford & A s sociates Existing Industrial Shell Page 179 092716wsa HC BOC Page 113 ' 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. Shackelford & Associates Existing Industrial Shell Page I 81 092716wsa HC BOC Page 114 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. Shackelford & Associates Existing Industrial Shell Page I 83 092716wsa HC BOC Page 115 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 Shackelford & Associates Existing Industri al Shell Page 185 092716wsa HC BOC Page 116 . . ,. . : .. : 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. Shackelford & Associates Existing Industrial Shell Page j 87 092716wsa HC BOC Page 117 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 Existing Industrial Shell Page 189 092716wsa HC BOC Page 118 • 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 Shackelford & Associates Existing Industrial Shell Page 191 092716wsa HC BOC Page 119 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. $haoe/DHlanl 2 I RKtanale 1nnn SALES DATA ilH ls;rel S.z< ll.980 ""· 1.,, I L OTAL ill>JUSTMENT FACTOR 0 .98 IA.ECORD ATE DUD INDICATE. ~OTAL QUAIITY 1ND£X 7 IIOOOAc-nn·R I TYPE 1/l SA.US PRICE + -• • -------• • • -• • • 1 7 3 • ----• -• • --• ----• • + g:~~~~I ~ ~~ :g I ~ I! I 402700C C II A S I I I I I 5 5 0 0 BUILDING AAEA 8,650 I I I I Hons I I • •••••••••••• --• • • 1 7 3 • • • • • • • • • • • • • • • • • • + SUBAlWI, oD.l.fSCIUPflON~OUN,l THL.....l ~....I ~rt I OAIG 'V. ~LDG.IAY elrva AHN DEP bvJ c~o I 08 /Xf D£PR. I~ 1.,.1.,.Lcs COND ltAn VA.LU TYPl 1)9 EPAVING 18,l] ~-~ !3 -E f3 ~~ I ~3 3905 8 6SCIIOCI 39781 ,.. 1> crs l·~I soo. -!250 !REPLACE 1 • None -AROLTS S.000 IS !O '"' S111W1£' I a.•S<j "91.a, iuTAL 08 Xf VALUE SJ OS TOTALS UITlDlNG DU4ENSIONS BA5•Wt7)S50E173N501 . .AND INFORMATION OTHER ~DJUSTMfNTS AND LAND TOTAi. HIGH UT AND us • LOCAL FRON DEPTH LND CONO "OTIS "OAO UNn LAND UNT TOTAL AOJUSTEO LAND OV£RRIOI LAND lST US£ CODE ZONING TAGE DB'TH / SIZE MOD fACT AF AC LC TO OT TYPE PRICE UNl'Ts TYP ADJST UNIT PRICE VALUl VALUE N OTU OMMER:CW.. 0700 0 0 1.0000 0 I 0000 2S,OOO .oc 3.110 AC '·= 25,000 oc 7775( 0 TOTAL MAltk.Er LAND DATA 1).11( 77,75Cl roTAL PA£$ENT USI DATA Shackelford & Associates Existing Industrial Shell Page 193 092716wsa HC BOC Page 120 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: Shackelford & Associates Existing Industrial Shell Page 195 092716wsa HC BOC Page 121 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 Existing Industrial Shell Page I 97 092716wsa HC BOC Page 122 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. Shackelford & Associates Existing Industrial Shell Page 199 092716wsa HC BOC Page 123 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 Shackelford & Associates Existing Industrial Shell Page I 101 092716wsa HC BOC Page 124 Engagement Letter Shackelford & Associates Existing Industrial Shell Page 1103 092716wsa HC BOC Page 125 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 Shackelford & Associates Existing Industrial Shell Page J 105 092716wsa HC BOC Page 126 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 Existing Industrial Shell Page I 107 092716wsa HC BOC Page 127 Appraiser License NORTH CAROLI. A APPRAlSl~.L BOAR Shackelford & Associates MA ITHEW PHILLIPS HA WK, MAI CERTIFIED GENERAL, A6797 Existing Industrial Shell Page I 109 092716wsa HC BOC Page 128