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Item 09 Downtown Area Surplus Real Property
AGENDA ITEM SUMMARY Meeting Date: 4/19/2021 Meeting Type: Regular Meeting Staff Contact/Dept.: Courtney Griesel/CMO Kristina Kraaz/CAO Staff Phone No: 541-726-3700 Estimated Time: 15 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Encourage Economic Development and Revitalization through Community Partnerships ITEM TITLE: PUBLIC HEARING FOR THE DECLARATION OF DOWNTOWN AREA SURPLUS REAL PROPERTY ACTION REQUESTED: Adopt/Not Adopt a resolution declaring certain real property owned by the City of Springfield surplus and directing the City Manager to offer such property for sale. ISSUE STATEMENT: With prior authorization by the City Council, the City is preparing to enter into a purchase and sale agreement with Springfield Utility Board (SUB) for the sale of approximately 0.20 acres of City owned property located at 245 A Street, Springfield, Oregon (Map 17-03-35-32 Tax Lot 02900). The property is zoned mixed-use commercial and currently operating as a parking lot. ATTACHMENTS: 1. Resolution Exhibit A – Property Description Exhibit B – Proposed Purchase & Sale Agreement 2. Vicinity Map of Property 3. Appraisal Report (2019) DISCUSSION/ FINANCIAL IMPACT: The purpose of the sale of 245 A Street (Tax Lot 02900) to SUB is to provide parking to SUB’s employees, rate payers, customers, and visitors. The site is immediately adjacent to existing SUB owned property and provides to SUB land which may support their future expansion or redevelopment. The property is shown on Attachment 2 of this packet. The property is proposed for purchase by SUB at $170,000 which reflects the October 2019 appraisal secured by the City specific to 245 A Street (Tax Lot 02900) (Attachment 3). This transaction includes a three party purchase and sale agreement (Exhibit B to Attachment 1) between the City, SUB, and the City’s urban renewal agency, the Springfield Economic Development Agency (SEDA). The purchase and sale agreement outlines the City sale of 245 A Street property is contingent on the SEDA purchase of three SUB owned properties totaling 0.39 acres and located on the 200 block of Main Street (Map 17-03-35-32 and Tax Lots 04900, 05000, and 05100). CITY OF SPRINGFIELD, OREGON RESOLUTION NO. ___________ A RESOLUION AUTHORIZING THE SALE OF SURPLUS REAL PROPRETY LOCATED AT 245 A STREET (ASSESSOR’S MAP , TAXLOT ) TO SPRINGFIELD UTILITY BOARD WHEREAS, pursuant to ORS 271.310, the City is authorized to sell, exchange, or convey real property in the City’s possession or control that is not needed for public use; WHEREAS, Springfield Municipal Code Section 2.714 provides that the City may dispose of surplus property by any means determined in the best interest of the City wit due regard for the value the city will receive from the disposal of the surplus property; WHEREAS, the Property at 245 A Street is presently used as a surface parking lot; WHEREAS, the purpose of the sale to Springfield Utility Board is to provide parking for the utility board’s employees, rate payers, customers, and visitors and also to secure the possibility of future redevelopment of the Property with adjacent property owned by Springfield Utility Board; WHEREAS, the City Council has determined the Property at 245 A Street, more fully described in Exhibit A, is not needed for public use by the City and it is in the public interest to sell the property to the Springfield Utility Board; WHEREAS, SUB has proposed to purchase the property for $170,000, which sale is also contingent upon the Springfield Utility Board selling other property in Downtown Springfield to the Springfield Economic Development Agency; and WHEREAS, the City Council held a public hearing on April 19, 2021 regarding the sale of this surplus property, which was noticed in the Register Guard at least five days in advance according to ORS 221.725, NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD: Section 1: The City Council hereby declares the property at 245 A Street, described in Exhibit A, as surplus and accepts the terms of sale to Springfield Utility Board, as described in Exhibit B. Section 2: This Resolution will take effect upon adoption by the Council. ADOPTED by the Common Council of the City of Springfield this ___ day of _________, ____, by a vote of _____ for and ____ against. ATTEST: __________________________ City Recorder Attachment 1, Page 1 of 16 Exhibit A Legal Description -245 A Street, Springfield OR The West 51 feet of Lot 1 and the East 20 feet of Lot 2, Block 5, Extended Survey of Springfield, as platted and recorded at Page 1, of Volume I, Lane County Oregon Deed Records, in Lane County, Oregon. Exhibit A, Page 1 of 1 Attachment 1, Page 2 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 1 {00014965:6} AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES WITH SPECIFIC CONDITIONS TO ENHANCE THE ECONOMIC GROWTH OF THE DOWNTOWN URBAN RENEWAL AREA OF THE CITY OF SPRINGFIELD DATED: _______________________, 2021 PARTIES: City of Springfield A Municipal Corporation of the State of Oregon 225 Fifth Street Springfield, Oregon 97477 Hereinafter “City”Owner of the Real Property located at 245 A Street, Springfield, Oregon 97477, Map Identification and Tax Lot No. 17-03-35-32-02900 as more particularly set forth on Exhibit “A” attached hereto and incorporated herein by reference and hereinafter known as the “Parking Lot” City of Springfield, acting by and through Springfield Utility Board 240 A Street Springfield, Oregon 97477 Hereinafter “SUB”Owner of the following parcels of Real Property located on Main Street Springfield, Oregon to wit: 240 Main Street, Springfield, Oregon, Map Identification and Tax Lot No. 17-03-35-32-05100 236 Main Street, Springfield, Oregon, Map Identification and Tax Lot No. 17-03-35-32-05000 226, 228 and 230 Main Street, Springfield, Oregon, Map Identification and Tax Lot No. 17- 03-35-32-04900 all as more particularly described and set forth in Exhibit “B” attached hereto and incorporated herein by reference. Hereinafter known as “Main Street Properties”. And also Purchaser of the “Parking Lot” more particularly described and set forth in Exhibit “A” Springfield Economic Development Agency 225 Fifth Street Springfield, Oregon 97477 Hereinafter “SEDA”A Party to this Agreement and Purchaser of the Main Street Properties more particularly described and set forth in Exhibit “B” Exhibit B, Page 1 of 14 Attachment 1, Page 3 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 2 {00014965:6} NOTE: This Agreement shall specify the responsibility for certain duties and obligations among the parties. If the term “Parties” is used, all Parties have the responsibility for complying with the terms and conditions. Otherwise, responsibilities and obligations will be designated and allocated by the use of the designations “SEDA”, “SUB”, and “City”. Where the terms “Purchaser” or “Owner” are used, those terms correspond to the party designation listed above. RECITALS WHEREAS SUB seeks to acquire from City the real property more particularly described and set forth in Exhibit A, the Parking Lot, for the purpose of providing parking for its employees, rate payers, customers, and visitors and also in order to secure the possibility of future redevelopment of the current SUB Annex property in conjunction with the Parking Lot property. WHEREAS SEDA seeks to acquire from SUB the real property more particularly described and set forth in Exhibit B, the Main Street Properties, for potential redevelopment and development to continue the growth and enhancement of the Urban Renewal Area of Downtown Springfield; WHEREAS, these acquisitions are reciprocally contingent; WHEREAS, the City wishes to facilitate and encourage said reciprocal acquisitions of the Sale of the Parking Lot to SUB, and the sale of the Main Street Properties to SEDA; NOW, THEREFORE, in Consideration of the foregoing Recitals, the Parties enter into this Agreement: AGREEEMENT 1. The Parking Lot (Exhibit A). 1.1 City shall sell to SUB, and SUB shall purchase from City the Parking Lot as more particularly described and set forth in Exhibit A for the sum of $170,000 payable in full in cash on the Closing Date (defined below). 1.2 The sale of the Parking Lot by City to SUB is contingent upon SUB’s sale of the Main Street Properties to SEDA. 1.3 The sale of the Parking Lot to SUB will be subject to certain existing Vehicle Parking Permits which will be addressed as follows: 1.3.1 The City will not issue or renew any vehicle parking permits for the Parking Lot without approval of SUB. 1.3.2 Those vehicle parking permits in effect at time of Closing will be honored by SUB for the remaining duration of the permit; or, reasonable alternative parking for the remaining duration of the permit will be found Exhibit B, Page 2 of 14 Attachment 1, Page 4 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 3 {00014965:6} and arranged for by City. 1.3.3 City will manage those permits existing at the time of Closing until the permit ceases. Remaining permit fees will be paid to City. 1.3.4 SUB will assist City and SEDA in their effort to equitably and fairly transition the owners of permits to alternative parking. 1.3.5 Neither City nor SEDA has a right of first refusal or option to purchase or repurchase the Parking Lot after Closing of this transaction. This subsection applies not withstanding any contractual difficulties or defaults which may occur in any subsequent contract for the sale of the Main Street Properties between SEDA and a Purchaser/Developer. 1.4 The closing of the transaction between City and SUB regarding the Parking Lot is subject to the conditions and contingencies set forth in Section 3 through 28 of this Agreement. 2. The Main Street Properties. 2.1 SUB shall sell and SEDA shall purchase from SUB the Main Street Properties (Exhibit B) as more particularly described and set forth in Exhibit B attached hereto and incorporated herein by reference for the sum of $790,000, payable in full in cash on the Closing Date (defined below). 2.2 Sale of the Main Street properties from SUB to SEDA is contingent upon the sale by City to SUB of the Parking Lot (Exhibit A). 2.3 The Main Street Property sale is subject to the following existing Leases which are each now on a month-to-month tenancy. 2.3.1 Lease dated January 1, 2019 between SUB as Landlord and Lifetime Tattoos for 206 and 230 Main Street. 2.3.2 Lease dated June 1, 2019 between SUB as Landlord and Vino & Vango as Tenants for 236 Main Street. 2.3.3 Lease dated January 1, 2019 between SUB as Landlord and Pauline Hauder as Tenant for 240 Main Street. Copies of each of these Leases have been provided by SUB to City and SEDA. 2.4 SUB will not be responsible for the termination of the Leases or provide eviction notice to existing tenants. Upon request, SUB will relay information from City or SEDA to existing tenants prior to Closing. SUB agrees that SEDA may provide existing tenants with a Notice of Intent to Acquire at any time following the execution of this Agreement and prior to the Closing date. 2.5 SEDA and City understand that SUB is not responsible for and has not agreed to provide City or any potential purchaser/developer of the Main Street Properties with economic aid of any type including, but not limited to, waiver or reduction of electric or water fees, waiver of reduction of systems development charges or any other waivers, incentives or discounts of any type for the provision of water, electricity and fiber optics. Further, City and SEDA will not represent to any prospective Purchaser/Developer, or subsequent owner of the Main Street Exhibit B, Page 3 of 14 Attachment 1, Page 5 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 4 {00014965:6} Properties that SUB would be amenable to or looking favorably upon such waivers, discounts or reductions if inquiry was made to SUB. 2.6 SUB has no responsibility or obligation to repurchase the Main Street Properties from SEDA. 2.7 The closing of the transaction between SUB and SEDA regarding the Main Street Properties is subject to conditions and contingencies set forth in Sections 3 through 28. 3. Conditions to Closing. 3.1 The parties’ obligation to close this transaction is subject to the satisfaction of each of the following conditions: 3.1.1 Approval by the SEDA Board, the Springfield City Council, and SUB Board. 3.1.2 Execution of a Memorandum of Understanding between City and SUB regarding the parties’ negotiations related to Sewer Billing Services and Payment In Lieu of Taxes. 3.1.3 On or before ___________________, 2021, each Purchaser’s approval of the results of a property inspection described in Section 4 below; 3.1.4 The document review and title insurance described in Sections 5 and 6 below; 3.1.5 Satisfactory review and acceptance by SUB and SEDA of a Level 1 Environmental Assessment report, to be commissioned and paid for by each Purchaser; 3.1.6 Each party will have conducted an environmental review and audit (the “Environmental Audit”) of the Property, indicating to the satisfaction of each party that the Property does not contain, either on its surface or in its subsurface or underlying water table, any Hazardous Substances (defined in Section 19.1.3). The Environmental Audit may include a historical review of the use of the Property, review of all regulatory agency permits and compliance and enforcement files and records, soil tests, the acquisition of core samples and water table samples by drilling conducted on the Property, and such other tests and studies as Purchaser may deem appropriate. All tests and studies will be conducted by agents selected by Purchaser and performed as Purchaser directs, subject to the approval of Owner, which must not be unreasonably withheld; see Section 4. Each party will pay the cost of all tests and studies undertaken. 3.1.7 On or before the Closing Date, each party will have performed all the covenants, conditions, agreements, and promises to be performed by it under this Agreement. 3.1.8 Purchaser’s satisfaction and approval of the Title Report described in Section 6. 3.1.9 On the Closing Date, Evergreen Land Title Company will be ready, willing, and able to issue, and will issue to each Purchaser on recordation of the Owner’s deed mentioned below, and the title insurance policy required by Exhibit B, Page 4 of 14 Attachment 1, Page 6 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 5 {00014965:6} Section 6. 3.1.10 City as Owner will deposit in Escrow a properly executed Statutory Warranty Deed conveying the Parking Lot (Exhibit A) to SUB. SUB as Owner will deposit in Escrow a properly executed Statutory Warranty Deed conveying the Main Street Properties (Exhibit B) to SEDA. 4. Property Inspection. City, SEDA, and SUB shall each permit the other parties, their respective agents, and in City/SEDA’s case regarding the Main Street Properties, potential purchasers/developers, to enter their respective owned Properties set forth in Exhibits “A” and “B,” at each parties’ sole expense and risk, at reasonable times. Entry shall be after reasonable prior notice to owner and after prior notice to the tenants of each Property as required by the tenants' leases, if any. Entry by each Purchaser is for the following purpose(s): to conduct any and all inspections, tests, and surveys concerning the structural condition of the improvements, all mechanical, electrical and plumbing systems, hazardous materials, pest infestation, soils conditions, wetlands, Americans with Disabilities Act compliance, and all other matters affecting the suitability of the respective Property for each Purchaser’s intended use and/or otherwise reasonably related to the purchase of each Property, including the economic feasibility of such purchase. Each Purchaser shall indemnify, hold harmless, and defend the respective Owner from all liens, costs, and expenses, including reasonable attorneys' fees and experts' fees, arising from or relating to each Purchaser's entry on and inspection of the respective Property. This agreement by each Purchaser to indemnify, hold harmless, and defend the respective Owner shall survive Closing or any termination of this Agreement. 5. Owner's Documents. Within 14 days of the execution of this Agreement, each Owner shall deliver to the respective Purchaser, at Purchaser's address, legible and complete copies of the following documents and other items relating to the ownership, operation, and maintenance of the Property, to the extent now in existence and to the extent such items are within Owner's possession or control: ALTA survey, environmental reports, all leases that encumber the property, all service agreements, as-built plans, operating expenses for the property for the last three years, and geotechnical reports. 6. Title Insurance. Within 10 days of the execution of this Agreement, each Owner shall open Joint Escrow with Evergreen Land Title Company, Springfield branch, and each Purchaser shall be delivered a Preliminary Title report showing the status of each respective Owner’s Title for property together with complete and legible copies of all documents therein as exceptions to Title. Each Purchaser shall have 10 days after receipt of the Preliminary Commitment and Exceptions within which to give notice in writing to the respective Owner of any objection to such title or to any liens or encumbrances affecting the Property. Within 10 days after the date of such notice from Purchaser, the respective Owner shall give Purchaser written notice of whether it is willing and able to remove the objected-to Exceptions. Within 10 days after the date of such notice from Owner, the respective Purchaser Exhibit B, Page 5 of 14 Attachment 1, Page 7 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 6 {00014965:6} shall elect whether to (i) purchase the respective Property subject to those objected-to Exceptions which Owner is not willing or able to remove or (ii) terminate this Agreement. On or before the Closing Date (defined below), Owner shall remove all Exceptions to which the respective Purchaser objects and which Owner agrees Owner is willing and able to remove. All remaining Exceptions set forth in the Preliminary Commitment and agreed to by Purchaser shall be deemed "Permitted Exceptions." The title Insurance policy to be delivered by Owner to the respective Purchaser at Closing shall contain no Exceptions other than the Permitted Exceptions, any Exceptions caused by Purchaser, and the usual preprinted Exceptions contained in an owner's standard ALTA form title insurance policy. 7. Default: Remedies. In the event that either Owner fails, through no fault of the respective Purchaser, to close the sale of the Property, the respective Purchaser shall be entitled to pursue any remedies available at law or in equity, including, but not limited to, the remedy of specific performance. In no event shall either Purchaser be entitled to punitive or consequential damages, if any, resulting from an Owner's failure to close the sale of the Property. 8. Closing of Sale. Parties agree that the sale and purchase of these properties (the “Closing”) shall be simultaneously closed in escrow on or before _______________, 2021. The escrow for the Closing will be established at the office of Evergreen Land Title Company at 1570 Mohawk Blvd, Springfield, Oregon 97477. 9. Closing Obligations. On the Closing Date, each respective Owner and Purchaser will deposit the following documents and funds in escrow, and the Title Company will close escrow in accordance with the instructions of the Parties. 9.1 Each Owner will deposit the following regarding the respective Property: 9.1.1 The Statutory Warranty Deed described in Section 3.1.11, duly executed and acknowledged; 9.1.2 A duly executed affidavit certifying that Owner is not a foreign person, trust, partnership, or corporation in compliance with the requirements of IRC §1445(b); 9.1.3 Original counterparts or legible photocopies of all documents, feasibility studies, surveys, engineering reports, and other items of a similar nature in the possession of Owner that relate to the Property; 9.1.4 Such documents as Purchaser or the Title Company may require to evidence the authority of Owner to consummate this transaction; and 9.1.5 Such other documents and funds, including (without limitation) escrow instructions, that are required of Owner to close the sale in accordance with this Agreement. 9.2 Each Purchaser will deposit the following regarding the respective Property: 9.2.1 The cash payment specified in Section 1.1 and 2.1, minus any credits due Purchaser under the terms of this Agreement; Exhibit B, Page 6 of 14 Attachment 1, Page 8 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 7 {00014965:6} 9.2.2 Any documents that Owner or the Title Company may require to evidence the authority of Purchaser to consummate the transaction contemplated; and 9.2.3 Any other documents and funds, including (without limitation) escrow instructions, that are required of Purchaser to close the sale and purchase of the Property in accordance with this Agreement. 10. Closing Costs: Prorated. Each Owner shall pay the premium for the Title Insurance Policy for the property they own. Owner and Purchaser shall each pay one-half of the escrow fees charged by Evergreen Land Title Company. Real property taxes for the tax year in which the transaction is closed, assessments, personal property taxes, rents and other Lessee charges arising from existing Tenancies paid for the month of Closing, interest on assumed obligations, and utilities shall be prorated as of the Closing Date. Prepaid rents, security deposits, and other unearned refundable deposits regarding the Tenancies shall be assigned and delivered to Purchaser at Closing. 11. Possession. Except as specified in Sections 1.4 and 1.5, SUB shall be entitled to exclusive possession of the Parking Lot Property on the Closing date. Except as specified in paragraph 2.4, SEDA shall be entitled to exclusive possession of the Main Street Properties on the Closing date. Following the Closing date, SUB as Owner with exclusive possession of the Parking Lot, and SEDA as the Owner with exclusive possession of the Main Street Properties shall be responsible for all obligations and liabilities associated with the ownership of the respective properties, and the Owner of each property shall indemnify all other Parties from claims arising after the Closing date. 12. Condition of Property. SUB and City each represent to the best of their knowledge, without specific inquiry, that the Parking Lot and Main Street Properties have not received written notices of violation of any laws, codes, rules, or regulations applicable to the Property ("Laws"), and Owners are not aware of any such violations or any concealed material defects in the Property to repair or correct. Risk of loss or damage to each Property shall be Owner's until Closing and Purchaser's at and after Closing. No agent of Purchaser or Owner has made any representations regarding the Property. NO REAL ESTATE LICENSEES EMPLOYED BY ANY PARTY HAS MADE REPRESENTATIONS TO ANY PARTY REGARDING THE CONDITION OF THE PROPERTY, THE OPERATIONS ON OR INCOME FROM THE PROPERTY, THE TENANCIES, OR WHETHER THE PROPERTY OR THE USE THEREOF COMPLIES WITH LAWS. Except for each Owner's representations specifically set forth in this Agreement; Each purchaser shall acquire the Property “As Is” with all faults and Purchaser shall rely on the results of its own inspection and investigation in Purchaser's acquisition of the Property. It shall be a condition of Purchaser's obligation to close, and of Owner's right to retain the Earnest Money as of Closing, that all of the Owner's representations and warranties stated in this Agreement are materially true and correct on the Closing Date. Owner's representations and warranties stated in this Agreement shall survive Closing for one (1) year. Exhibit B, Page 7 of 14 Attachment 1, Page 9 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 8 {00014965:6} ). 13. Personal Property. There is no personal property sold. 14. Legal Relationships. 14.1 Relationship of Parties. This Agreement creates only the relationship of Owner and Purchaser, respective to each Property, and no joint venture, partnership, or other joint undertaking is intended hereby. No party hereto will have any rights to make any representations or incur any obligations on behalf of the another. No parties have authorized any agent to make any representations, admit any liability, or undertake any obligation on its behalf. No parties are executing this Agreement on behalf of an undisclosed principal. 14.2 No Third-Party Beneficiaries. No additional parties are intended to be benefited or afforded any legal rights under or by virtue of this Agreement. 14.3 Joint and Several Liability. If any party comprises more than one person or entity, the obligations of each person or entity comprising such party under this Agreement will be joint and several. 14.4 Indemnified Parties. Any indemnification contained in this Agreement for the benefit of a party will extend to the party’s members, directors, shareholders, officers, employees, and agents. 14.5 Assignment. City, SUB and SEDA each shall not assign this Agreement or their rights under this agreement without all Parties’ prior written consent. Such consent may be withheld based upon each parties’ reasonable discretion. Consent for assignments between SEDA and City is hereby provided by SUB. 15. Attorney Fees. In the event a suit, action, arbitration, or other proceeding of any nature whatsoever, including without limitation any proceeding under the U.S. Bankruptcy Code, is instituted, or the services of an attorney are retained, to interpret or enforce any provision of this Agreement or with respect to any dispute relating to this Agreement, the prevailing party shall be entitled to recover from the losing party Its attorneys', paralegals', accountants', and other experts' fees and all other fees, costs. and expenses actually incurred and reasonably necessary in connection therewith (the “Fees”) In the event of suit, action, arbitration, or other proceeding, the amount of Fees shall be determined by the judge or arbitrator, shall Include all costs and expenses incurred on any appeal or review, and shall be in addition to all other amounts provided by law. 16. Statutory Land Use Disclaimer and Measure 37 Disclosure. THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S Exhibit B, Page 8 of 14 Attachment 1, Page 10 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 9 {00014965:6} RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. 17. Cautionary Notice About Liens. UNDER CERTAIN CIRCUMSTANCES, A PERSON WHO PERFORMS CONSTRUCTION-RELATED ACTIVITIES MAY CLAIM A LIEN UPON REAL PROPERTY AFTER A SALE TO THE PURCHASER FOR A TRANSACTION OR ACTIVITY THAT OCCURRED BEFORE THE SALE. A VALID CLAIM MAY 'BE ASSERTED AGAINST THE PROPERTY THAT YOU ARE PURCHASING EVEN IF THE CIRCUMSTANCES THAT GIVE RISE TO THAT CLAIM HAPPENED BEFORE YOUR PURCHASE OF THE PROPERTY. THIS INCLUDES, BUT IS NOT LIMITED TO, CIRCUMSTANCES WHERE THE OWNER OF THE PROPERTY CONTRACTED WITH A PERSON OR BUSINESS TO PROVIDE LABOR, MATERIAL, EQUIPMENT OR SERVICES TO THE PROPERTY AND HAS NOT PAID THE PERSONS OR BUSINESS IN FULL. 18. Notices. Unless otherwise specified, any notice required or permitted in, or related to, this Agreement must be in writing and signed by the party to be bound. Any notice will be deemed delivered (i) when personally delivered or delivered by facsimile transmission (with electronic. confirmation of delivery}, or (ii) on the day following delivery of the notice by reputable overnight courier, or (iii) three (3) days after mailing certified mail, postage prepaid, to the address of the other party shown in this Agreement, unless that day is a Saturday, Sunday, or legal holiday, in which event it will be deemed delivered on the next following business day. If the deadline under this Agreement for delivery of a notice or payment is a Saturday, Sunday, or legal holiday, such last day will be deemed extended to the next following business day. Notice may be given by email transmission to the email address set forth in this Agreement or as such other email address as one party may indicate by written notice to the other party and shall be effective if and when the addressee acknowledges by return email that the addressee has received the email notice. Notices must be delivered, mailed, or sent by email to the following addresses: Exhibit B, Page 9 of 14 Attachment 1, Page 11 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 10 {00014965:6} City and SEDA: Nancy Newton, City Manager City of Springfield 225 Fifth Street Springfield, OR 97477 Email: nnewton@springfield-or.gov SUB: Jeff Nelson, General Manager Springfield Utility Board 250 A Street Springfield, OR 97477 email: jeffn@subutil.com 19. Warranties and Representations of Owners 19.1 Warranties. Each Owner acknowledges that the warranties and representations of Owners contained in this Agreement, including the warranties and representations contained in this section (the “Warranties”), are material inducements to the respective Purchaser to enter into this Option Agreement. All Warranties, and the respective Purchaser’s right to assert a breach of them, survive execution of this Agreement, the Closing, and the execution and delivery of the Closing documents. If, before Closing, Purchaser discovers or is advised that any of the Warranties was untrue when made, then Purchaser will have the option to either (1) terminate this Agreement, without waiving any cause of action that Purchaser may be entitled to assert against the respective Owner by reason of the breach of the Warranty, or (2) continue this Agreement, without waiving any cause of action that Purchaser may be entitled to assert against the respective Owner by reason of the breach of the Warranty. If, after Closing, Purchaser discovers or is advised that any of the Warranties was untrue when made, then Purchaser may pursue any remedy available to Purchaser at law or in equity by reason of the breach of the Warranty. Each Owner warrants and represents to the respective Purchaser that the following matters are true and correct: 19.1.1 No Condemnation or Assessment Proceedings. There is no pending or threatened condemnation or similar proceeding or assessment affecting the respective Property, or any part of it and, to the knowledge of Owner, no such proceeding is contemplated by any governmental entity. 19.1.2 Litigation; Law. There is no litigation, arbitration, or administrative hearing pending before any governmental authority that concerns or affects the Property or any portion of it and, to the knowledge of Owner, no such proceeding is threatened. To the knowledge of Owner, the Property complies with all laws, ordinances, and governmental approvals and decisions that relate to it. 19.1.3 Hazardous Substances. For purposes of this subsection, the phrase “Hazardous Substances” has the same meaning attributed to it in ORS Exhibit B, Page 10 of 14 Attachment 1, Page 12 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 11 {00014965:6} 465.200(16). Owner warrants, represents, and covenants as follows: 19.1.3.1 To the knowledge of Owner, there are no Hazardous Substances in, on, or buried on or beneath the Property, and no Hazardous Substances have been emitted or released from the Property in violation of any applicable laws; 19.1.3.2 Owner has not knowingly brought onto, stored on, buried on, used on, emitted or released from, or allowed to be brought onto, stored on, buried on, used on, or emitted or released from, the Property any Hazardous Substances in violation of any applicable environmental laws; and 19.1.3.3 To the knowledge of Owner, no underground storage tanks are located on the Property, including (without limitation) any storage tanks that contain, or previously contained, any Hazardous Substances, and Owner agrees not to cause or permit any such tanks to be installed in the Property before Closing. 19.1.4 Status of Owner. Owner is not a foreign person, foreign partnership, foreign corporation, or foreign trust, as those terms are defined in IRC §1445. 19.1.5 Breach of Agreements. Neither the execution of this Agreement, nor the execution, delivery, or recordation of any document or agreement referenced herein, nor the exercise of the Option and closing of the transaction contemplated herein, constitutes or will constitute a default under any other agreement or contract that relates to the Property or to which Owner is a party. 19.1.6 Authority. No consents, documents, or approvals that have not been obtained are necessary to the effectiveness of the grant of the Option by Owner. 19.1.7 Contracts and Leases. Owner has disclosed to Purchaser all existing lease agreements, maintenance contracts, service agreements, or other contracts of any nature that pertain to, cover, or affect the properties or any part of the properties. There are no other lease agreements, maintenance contracts, service agreements, or other contracts of any nature that pertain to, cover, or affect the Property or any part of it. 19.1.8 As used herein, the phrase “to the knowledge of Owner” or any variation of that phrase refers to matters within the actual knowledge of Owner and do not include constructive or imputed notice or knowledge; and the use of that phrase does not imply that Owner has undertaken any special inquiry or investigation with respect to the representation modified by the phrase, unless circumstances within the actual knowledge of Owner would warrant a reasonable person to undertake further inquiry when presented with similar circumstances. 19.2 Changed Conditions. If Owner discovers that one or more of the Warranties or one of the conditions referred to in the Warranties has changed after this Agreement is executed, through no fault of Owner, Owner will immediately Exhibit B, Page 11 of 14 Attachment 1, Page 13 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 12 {00014965:6} inform Purchaser, in writing, of that discovery. If the changed condition or Warranty cannot be cured within 10 days of the date Owner discovers the change, then Purchaser may terminate this Agreement (and its exercise of the Option, if any) by giving written notice of termination to Owner within 15 days after receiving the notice from Owner, and the Earnest Money Payment previously paid by Purchaser will be returned to Purchaser. If the changed condition or Warranty can be corrected within 10 days after discovery by Owner, Purchaser will not have the right to terminate this Option Agreement under this section and Owner will correct the changed condition or Warranty within 10 days of the discovery. If Purchaser does not terminate this Agreement and the changed condition or Warranty can be corrected and is not corrected by the Closing Date, then Purchaser will have the right to withhold 150% of the estimated costs of correcting the changed condition or Warranty until the changed condition is corrected, and Owner will correct the changed condition, at Owner’s sole expense and in an expeditious manner, failing which Purchaser may use the withheld sums to make the correction. A change caused by Owner is deemed to be a breach of this Agreement by Owner if the change materially and adversely affects the Property or Purchaser’s rights. 20. Brokerage/Real Estate Commission. Neither party has employed the services of a realtor, broker or real estate salesperson in reaching this Agreement. It is understood that neither party will pay or be responsible for any brokerage commission or fee will be paid on this Purchase Agreement. 21. Risk of Loss. Except as specified in Section 9, each Owner bears the risk of all loss or damage to the respective Property from all causes, through the Closing Date. If, before the Closing Date, all or part of the Property is damaged by fire or by any other cause of any nature or if all or any portion of the Property is taken by condemnation, or if any condemnation is threatened, the respective Owner must give the respective Purchaser written notice of such event. Purchaser may terminate this Agreement by giving written notice to the respective Owner within 15 days after receipt by Purchaser of written notice from Owner of such casualty or condemnation. If Purchaser does not elect to terminate this Agreement, then this Agreement will continue in force and if the respective Property is conveyed to Purchaser, then all interest of the respective Owner in and to any insurance proceeds or condemnation awards that may be payable to Owner on account of the casualty or condemnation will be assigned to the respective Purchaser at Closing. 22. Integration, Modification, or Amendments. This Agreement contains the entire agreement of the parties with respect to each of the Properties and supersedes all prior written and oral negotiations and agreements with respect to each of the Properties. Any modifications, changes, additions, or deletions to this Agreement must be approved by all Parties, in writing. 23. Representation. The Parties have each been represented by legal counsel of choice Exhibit B, Page 12 of 14 Attachment 1, Page 14 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 13 {00014965:6} with respect to this transaction. Except as otherwise provided in Section 15 each party will be responsible for all attorney fees incurred by it with respect to this Agreement. 24. Counterparts; Pronouns. This Agreement may be executed in one or more counterparts, all of which will be considered one and the same Agreement and will be effective when one or more counterparts have been signed by all parties. With respect to any pronouns used, each gender used includes the other gender and the singular and the plural, as the context may require. 25. Governing Law; Interpretation. This Agreement is governed by the laws of Oregon. If a court of competent jurisdiction holds any portion of this Agreement to be void or unenforceable as written, the parties intend that (1) that portion of this Agreement be enforced to the extent permitted by law and (2) the balance of this Agreement remain in full force and effect. 26. Confidentiality. To the extent permitted by law, the Parties and their agents, accountants, lawyers, and consultants will treat this Agreement and all information obtained or exchanged in connection with it as confidential and will not disclose the terms of this Agreement or any information relating to it to any person other than the consultants and the entities engaged to assist in the consummation of this Agreement, such as the Title Company. Nothing contained herein operates to prevent or limited the right of the Parties to disclose the terms of this Agreement or any other information relating to it in conjunction with any litigation, land use proceeding, or other proceeding instituted with respect to this Agreement or the Properties. 27. Time of Essence. Except as otherwise specifically provided in this Agreement, time is of the essence of each and every provision of this Agreement. 28. Survival. In addition to any Section expressly stated to survive Closing, notwithstanding anything in this Agreement to the contrary, obligations, warranties, and representations contained within this Agreement shall survive Closing. 29. Miscellaneous. The facsimile transmission of any signed document including this Agreement, in accordance with Paragraph 18, shall be the same as delivery of an original. At the request of either party, the party delivering a document by facsimile will confirm facsimile transmission by signing and delivering a duplicate original document. This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the same Agreement. This Agreement contains the entire agreement and understanding of the parties with respect to the subject matter of this Agreement and supersedes an prior and contemporaneous agreements between them with respect thereto. Without limiting the provisions of Section 19 of this Agreement, this Agreement shall be binding upon and shall inure to the benefit of the parties and Exhibit B, Page 13 of 14 Attachment 1, Page 15 of 16 AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTIES - Page 14 {00014965:6} their respective successors and assigns. The person signing this Agreement on behalf of each Purchaser and the person signing this Agreement on behalf of each Owner each represents, covenants and warrants that such person has full right and authority to enter into this Agreement and to bind the party for whom such person signs this Agreement to the terms and provisions of this Agreement. This Agreement shall not be recorded unless the parties otherwise agree. Dated: _____________________________ PURCHASER OF MAIN STREET PROPERTIES OWNER OF PARKING LOT ___________________________________ _______________________________ Springfield Economic Development Agency City of Springfield OWNER OF MAIN STREET PROPERITIES PURCHASER OF PARKING LOT ___________________________________ Springfield Utility Board By Jeff Nelson, General Manager Exhibit B, Page 14 of 14 Attachment 1, Page 16 of 16 CITY OF SPRINGFIELD, OREGON DOWNTOWN SURPLUS PROPERTY (MAP AND TAX LOT 17-03-35-32-02900) City Tax Lot 02900 SUB Lot 04900 05000 05100 A Street Main Street Pioneer Parkway West Pioneer Parkway East April 2021 City of Springfield, Oregon Attachment 2, Page 1 of 1 Submitted To: Courtney Griesel Economic Development Director City of Springfield 225 Fifth Street Springfield, Oregon 97477 Submitted By: Zoe R. York, MAI Jasen D. Hansen, MAI Duncan & Brown, LLC 260 West 12th Avenue Eugene, Oregon 97401 Duncan & Brown File No. 19‐242a Date of Report: October 25, 2019 Date of Value: September 23, 2019 A PPRAISAL R EPORT City of Springfield Contract #2445 Surface Parking Lot 245 A Street Springfield, Oregon ATTACHMENT 3, PAGE 1 OF 66 October 25, 2019 Courtney Griesel Economic Development Director City of Springfield 225 Fifth Street Springfield, Oregon 97477 RE: City of Springfield Contract #2445 Surface Parking Lot 245 A Street Springfield, Oregon Dear Ms. Griesel: As requested, we have completed an appraisal of the captioned real estate. The property consists of a 0.20-acre site zoned MUC, Mixed Use Commercial by the City of Springfield. The property is improved with an asphalt-paved surface parking lot. The address is 245 A Street in Springfield, Lane County, Oregon. The subject is identified by the Lane County De partment of Assessment and Taxation as Tax Lot 2900 on Map 17-03-35-32. The purpose of the appraisal was to develop an opinion of the as-is value, as of the latest date of inspection. Based on our inspection and analysis of pertinent market data, it is our opinion the market value of the fee simple interest in the subject property, as of September 23, 2019, was: This report conforms to the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation and complies with the reporting standards set forth under USPAP Standards Rule 2-2(a) for an Appraisal Report. Discussion contained in this report is specific for the stated intended use; supporting documentation concerning the data, reasoning and analyses is retained in the appraisers’ work file. The value opinions in this report are qualified by certain assumptions, limiting conditions, certifications, and definitions. We certify this appraisal has been prepared in accordance with the Code of Professional Ethics and Standards of Professional Practices set forth by the Appraisal Institute. We certify we have no present or contemplated interest in the property and our fee for making this appraisal is not predicated upon reporting any specified value or value range. Date of Value Valuation Premise Conclusion September 23, 2019 As-Is Fee Simple $170,000 Conclusion of Value ATTACHMENT 3, PAGE 2 OF 66 Duncan & Brown Courtney Griesel, City of Springfield October 25, 2019 Please contact us at your convenience if any additional data or information is required. Respectfully submitted, DUNCAN & BROWN Zoe R. York, MAI Jasen D. Hansen, MAI JDH, MAI Certification No. C000719, Exp. 04/30/21 ZRY, MAI Certification No. C001053, Exp. 07/31/20 JDH/ZRY/cp ATTACHMENT 3, PAGE 3 OF 66 Duncan & Brown T ABLE OF C ONTENTS LETTER OF TRANSMITTAL AERIAL PHOTOGRAPHS EXECUTIVE SUMMARY INTRODUCTION Assumptions & Limiting Conditions ................................................................................. 7 Pertinent Definitions ............................................................................................................... 9 Preliminary Information ..................................................................................................... 10 Regional Map ........................................................................................................................... 12 Metro Plan Map ...................................................................................................................... 13 Market Area Description..................................................................................................... 14 City Map ..................................................................................................................................... 21 Neighborhood Map ............................................................................................................... 22 Neighborhood Description ................................................................................................ 23 PROPERTY DATA Legal Description ................................................................................................................... 25 Ownership & Sales History ................................................................................................ 25 Present Use ............................................................................................................................... 25 Pertinent Conditions of Title ............................................................................................. 25 Real Estate Tax Analysis ..................................................................................................... 25 Zoning ......................................................................................................................................... 26 Subject Photographs ............................................................................................................. 28 Site Description ...................................................................................................................... 29 ANALYSES AND CONCLUSIONS Highest and Best Use ............................................................................................................ 32 Appraisal Process .................................................................................................................. 36 Valuation: Sales Comparison Approach ...................................................................... 37 Reconciliation and Final Value Conclusion ................................................................. 47 Marketing Time & Exposure Time .................................................................................. 47 ADDENDA Certification Plat Map Engagement Contract Appraisers’ Qualifications ATTACHMENT 3, PAGE 4 OF 66 Duncan & Brown - 5 - A ERIAL P HOTOGRAPHS Aerial Photographs . T H.H .HI. I \2100 I cm 'A'St] wTtj "1 6i00=5=5 m jW r-fa m Mtcmailjq&s ii h.p^l uill"**r si .*L L L L >pi IjiH"-u ..I 1 Im •j iJM ifyr SSoo - 1100 pr 6|!:'^po.*"3 - . 'irf Imzjrfi•' _'-.•Hi ill if,\&R i ;:"mm•51[DJb]j,., I Hi »WJ [b>k £ f;ar.;;1 I B|s Pa.' I IWM si if s fc.3®S • 6 jal £IPfo.1 ''j-i-1i-lfkTSr Ws? FaTsT]'Tt 4*V1. a ''-3j1 >1 1 1 f a 3 »'' ii **/-i§11 .?»^- r-?jjI n-I [iVlarnTs tl ffIZ * 'iVi ainTSl' *1 ». ~isr3*V J rd fsfATs"^ fcWstfc ~*~T| 1 _»-*A- |s/aTsin 3 * -»L« I M Duncan &Brown 5 ATTACHMENT 3, PAGE 5 OF 66 Duncan & Brown - 6 - E XECUTIVE S UMMARY Name/Location: Surface Parking Lot 245 A Street Springfield, Oregon Owner of Record: City of Springfield Tax and Assessment Data: The subject property is exempt from property taxes under the exemption type Cities and Towns. IDENTIFICATION REAL MARKET VALUE ASSESSED VALUE TAXES Tax Lot Account Land Improvements Total 2900 0314474 $150,364 $20,562 $170,926 $80,324 $0.00 Parcel Size: 8,520 square feet, or 0.20 acre Zoning: MUC, Mixed Use Commercial by the City of Springfield. The property is located in the Downtown Nodal Development Area. Flood Hazard Area: Zone X, outside the 500-year flood, according to FEMA Map 41039C1142F. Improvements: The subject property is improved with an asphalt-paved surface parking lot with 22 spaces and 1 ADA space. Highest and Best Use— As If Vacant: Development as permitted in the MUC zone. As Improved: Continued use as a parking lot as an interim use and redevelopment with an allowable use in the MUC zone when feasibility warrants. Date of Report: October 25, 2019 Date of Value: September 23, 2019 Appraisers: Zoe R. York, MAI and Jasen D. Hansen, MAI Date of Value Valuation Premise Conclusion September 23, 2019 As-Is Fee Simple $170,000 Conclusion of Value ATTACHMENT 3, PAGE 6 OF 66 Duncan & Brown - 7 - A SSUMPTIONS & L IMITING C ONDITIONS General Assumptions and Limiting Conditions 1. This Appraisal Report complies with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice. As such, information and discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraisers’ opinion of value are specific to the needs of the client/intended users and for the intended use stated in this report. The appraisers are not responsible for unauthorized use of this report. 2. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 3. Title to the property is assumed good and marketable unless otherwise stated in this report. No responsibility is assumed for the legal description or for such matters including legal or title considerations. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated in this report. It is assumed the utilization of the land and improvements is within the boundaries or property lines of the property described and there is no encroachment or trespass unless otherwise stated in this report. 4. Responsible ownership and competent property management are assumed unless otherwise stated in this report. It is assumed there is full compliance with all applicable federal, state and local environmental regulations and laws, unless non-compliance is stated, defined and considered in the appraisal report. 5. It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based. 6. Compliance with all applicable zoning and use regulations and restrictions is assumed unless a nonconforming use has been stated, defined and considered in the appraisal report. 7. It is assumed there are no hidden or unapparent conditions of the property, subsoil or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 8. The appraisers are not qualified to detect hazardous waste and/or toxic materials. Any comment in the appraisal report that may suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The appraisers’ value estimate is predicated on the assumption there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraisers’ descriptions and comments are the result of the routine observations made during the appraisal process. ATTACHMENT 3, PAGE 7 OF 66 Assumptions & Limiting Conditions Duncan & Brown - 8 - 9. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report. 10. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraisers, and in any event only with proper written qualification and only in its entirety. 11. The appraisers are not required to give further consultation, testimony, or be in attendance in court with reference to the property in question because of this appraisal, unless arrangements have been previously made. 12. Neither all nor any part of the contents of this report, including any conclusions as to value, the identity of the appraisers, or the firm with which the appraisers are connected, shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraisers. ATTACHMENT 3, PAGE 8 OF 66 Duncan & Brown - 9 - P ERTINENT D EFINITIONS Market Value 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 is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.1 As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.2 Highest & Best Use The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.3 When a site contains improvements, the highest and best use may be determined to be different than the existing use. The existing use will continue unless and until land value in its highest and best use exceeds the sum of the value of the entire property in its existing use, and the cost to remove the improvements. An additional implication is that the determination of the highest and best use results from the appraiser’s judgment and analytical skills, that is, that the use determined from analysis represents an opinion not a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.4 1. 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994. 2. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed., (Chicago: Appraisal Institute, 2015). 3. Ibid. 4. Ibid. ATTACHMENT 3, PAGE 9 OF 66 Duncan & Brown - 10 - P RELIMINARY I NFORMATION Property Appraised The property consists of a 0.20-acre site zoned MUC, Mixed Use Commercial by the City of Springfield. The property is improved with an asphalt-paved surface parking lot. The address is 245 A Street in Springfield, Lane County, Oregon. The subject is identified by the Lane County Department of Assessment and Taxation as Tax Lot 2900 on Map 17-03-35-32. Purpose and Intended Use The purpose of the appraisal was to develop an opinion of the “as-is” market value of the subject property, as of the latest date of inspection. The intended use of this appraisal report is to assist the intended user with decision making related to potential sale of the property. Intended User and Client The client is the City of Springfield and the intended users are the City of Springfield and the Springfield Economic Development Agency. Interest Appraised Fee simple estate. Scope of the Appraisal The scope of the appraisal assignment has been to collect, confirm, analyze and interpret pertinent market data and other market forces so as to arrive at the opinion of market value for the subject property as of the latest date of inspection in the requested valuation premise. As part of the assignment, a complete investigation of all pertinent data in relation to the subject property was conducted. This investigation included, but was not limited to: Personal inspection of the subject property, the immediate neighborhood, and market area to determine marketability of the subject. Zoe R. York, MAI inspected the subject property on September 23, 2019. Jasen D. Hansen, MAI inspected the property at a later date. Review of public property records related to the subject. Review and analysis of property information provided by the client. Research of market conditions that influence value for the subject property, including supply and demand of competing properties, as well as research pertaining to the most likely buyer of the subject property and specific market factors driving purchasing decisions (investor vs. owner-occupant motivations). Real estate brokers, developers and investors with extensive knowledge of the local market were interviewed regarding current market perceptions, recent activity and opinions of future changes, and regional market sector surveys were reviewed. Research and analysis of transactions and listings of comparable properties. All comparable sales presented in the report were confirmed by two or more sources, including a party to the transaction or an agent or representative of a party to the transaction, and information from public records. Data sources for comparable data include CoStar, RMLS, LoopNet, Lane County deed records, and conversations with local brokers. Research and analysis of vacancy and operating expenses of comparable properties. ATTACHMENT 3, PAGE 10 OF 66 Preliminary Information Duncan & Brown - 11 - Research of market conditions that influence value for the subject property. Highest and best use analysis and determination of maximally productive use. Application of the appropriate approaches to value and reconciliation to an opinion of market value. Preparation of the written appraisal report conveying the appra isers’ analyses and conclusions. In preparing this appraisal, information relative to the subject’s region, city, and competitive neighborhoods in Eugene/Springfield was researched and considered. In addition to the work outlined above, interviews with other professionals were conducted and other pertinent factors that affect the value of the subject property, either directly or indirectly, were considered. In conjunction with the highest and best use analysis of the subject, the subject property’s market value was analyzed in two scenarios: A) the value of the land for redevelopment; and, B) the value of the subject as a surface parking lot. These scenarios were analyzed to determine the maximally productive use of the subject site. The Highest and Best Use Section will summarize both scenarios, with the valuation associated with the concluded maximally productive use presented in greater detail within the report. This appraisal has been prepared in compliance with the most recent revision of the Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Standards Board of the Appraisal Foundation. Zoe R. York, MAI and Jasen D. Hansen, MAI are certified general appraisers in the State of Oregon and have the knowledge and experience to complete this assignment competently, in compliance with the stated regulations. ATTACHMENT 3, PAGE 11 OF 66 Duncan & Brown - 12 - R EGIONAL M AP Regional Map ^DeLORME DeLorme Street Atlas USA®2013 Cloverdale.^Daytonl jjtbbaii JPacificCity !Siuslaw NF 18 Fliuslav Molalla AmitySheridan Mount Angel i1 i,..Silverton -% Grand Ronde 101 \i Tin coin City £Salem Dal la *,G|eneden Beach Falls City MonmbutfT •Independence TuTrT&rL Mh.Creek l;t rne-55flametie itrysr -Stayton Mill Cil(El rsonSiletz.Ih>ffe Sit .Eddyvi lie-Newport 1201 Philomath" jiuslaw NF 101 TidewaterWaldport, 'Halsey Sweet Home Cascadia" Brownsville I20J 'Yachats Junction City Vida Mc Siuslaw NF Eugene Springfield Three Sisters Wilderness^Veneca [99]Florence Icresweil 'x ,'Lowel I Pol [Cottage Grove Lake \ ness ...- Oakridge Reedsport .DrainjScottgxfe^ "ILakesideIYoncalla; Diamond Peak Wilderness [99Ur. l 101 Sutherlin "SEg Creek nessGlide h 38] Umpqui Mount Thieisdti f Wilderness Rosebuii Coquille .Ct vVini run 2MyrtlePoint Camas Valley -Umpqua Dividjs Wilderness<>.MyrtleCreei Days Creek .-Tiller v Powers Data use subject to license.mi /©DeLorme.DeLorme Street Atlas USA®201 3.0 6 12 18 24 30 Data Zoom 7-5www.delorme.com MN f 1 5.6°E) Duncan &Brown 12 ATTACHMENT 3, PAGE 12 OF 66 Duncan & Brown - 13 - METRO PLAN MAP Subject MetroPlanMapEugene-SpringfieldMetropolitanAreaGeneralPlanPlanDiagramy)AVrSubjects*4resuI;fl5lm*+\7ffheinterpretationandpurposeofihePlanDiigTSm,anddescriptionsofthelandusesandsymbolsshown,orecontainedinChapterII-G.)LowDerwHyResidentialSpecialHeavyIndustrialSandandCrawlMediumDensityResidcniiaiLightMediumIndustrial^CampusIndustrialUniversityResearchGovernment&EducaUon{£?§Ru-elCommercialParksandOpenSpaceRtralIndustrialAirportReserve%l&nL1/1rUrbanGrowthBoundaryMetroPlanBoundary/\fRailroads/\/RiversandPondsAgricultured-LIForestLand\1J|_J]NodalDevelopmentCommercialfflMajorRetaHCenterHeavyIndustrialiQl.%RiralResidential1Overlays:^MixedUseAreas|N0jNodalDevelopmentAreaQOAllnmotiDGieenwayr*ft£.V...iNaturalResourceHSJaar.tt±w1231'2010[]fr^•*iiWuamvVALIDAT11x17SCALEONLYm!I1!f—.-.L.U.Jtell1fjL/i;UM-?'I!Jr"Nr..»o.k.\^f!—fl:3—T*tr-i;1,'z-INOIir7P"T1Htefi^.jls«i!'5siISSlM.:vi:t'4-S1f:1I..-s^•I1!\t?"II _L-PSA!!\:\.„.f>-4:]rpiZ*rT"'Vw07,000..."Feet.:P;Pb->•'Theinformationoilthis:databasescatLaneCourtmapwasderivedfromdigitalicdlofGovernments'regionalgeographicinformalionsystem.Carevra*takeninthecreationofthismap,butitisprovided"a?it",LCOGcannotacceptanyresponsibilityforerrors,omissions,orpositionalaccuracyinthedigitaldataordieunderlyingrecords.Currentplandesignation,zoning,etc.,forspecificparcelsshouldbeconfirmedwiththeappropriategovernmentalentity-Eugene,field,orLaneCounty-withresponsibilityforiganddevelopmentoftheparcel,Therearenowarranties,expressorimplied,accompanyingthisproduct.However,notificationofanyerrorswillbeappreciated.nV ***'<*,,»****tmiciftcwuKaa.;.: 1 1ring]rinirhI'd.l13Duncan&BrownATTACHMENT 3, PAGE 13 OF 66 Duncan & Brown - 14 - M ARKET A REA D ESCRIPTION Greater Eugene‐Springfield Metropolitan Area The Eugene/Springfield metropolitan area is located in Lane County, in the central, western portion of the state of Oregon. The Willamette Valley is the most densely populated portion of the state, with the three largest metropolitan areas—Portland, Salem and Eugene/ Springfield—located at the north, middle and south ends of the valley, respectively. The community is situated at the confluence of the McKenzie and Willamette rivers at the head of the Willamette Valley. The Willamette River flows northward from the southern valley to its confluence with the Columbia River at Portland and Vancouver, Washington. The Eugene/Springfield metropolitan area is approximately 440 feet above sea level, and the topography of the area is flat valley floor and flood plain land. The head of the Willamette Valley is bordered by the Coast Range on the west and the Cascade Range foothills on the east; the area to the south is mountainous as well. The valley is open to the north. Eugene is home to the University of Oregon and is also known as “Track Town USA” for its abundant running trails and renowned venue, Hayward Field. Springfield, historically a mill town, is situated between the McKenzie River and the middle fork of the Willamette River. The McKenzie River is world famous for fly-fishing and summer steelhead. Bedroom communities within commuting distance of the larger metropolitan area include Veneta, Junction City, Harrisburg, Coburg, Creswell and Cottage Grove. The metropolitan area is popular for its natural beauty and rich recreational opportunities bolstered by its proximity to the Cascade Mountains, Willamette Valley vineyards, and Oregon coast. Population & Demographics Eugene/Springfield is Oregon’s second largest metropolitan area, following Portland/Vancouver and the fifth most populous metropolitan area in the Oregon/Washington/Idaho tri-state region. Approximately 70% of the population of Lane County resides within five miles of the Eugene/Springfield metro area. Population growth, regionally and statewide, has been influenced significantly by economic conditions over the past several decades. Population statistics show rapid population growth in Oregon since 1980, as demonstrated in the table below: Population % Growth 1980 1990 2000 2010 2018 1980- 1990 1990- 2000 2000- 2010 2010- 2018 Eugene 105,664 112,669 137,893 156,185 169,695 6.63% 22.4% 12.3% 8.6% Springfield 41,621 44,683 52,864 59,403 60,865 7.35% 18.3% 12.4% 2.5% Lane County 275,226 282,912 322,977 351,715 375,120 2.79% 14.2% 8.90% 6.7% Oregon 2,633,149 2,842,337 3,421,399 3,831,074 4,195,300 7.94% 20.3% 12.0% 9.5% ATTACHMENT 3, PAGE 14 OF 66 Market Area Description Duncan & Brown - 15 - In-migration has been the driving force behind population growth in Lane County, due to the availability of job opportunities, a relatively affordable cost of living, moderate local climate and appealing lifestyle amenities. The increase in Oregon’s population in 2018 was due largely to net migration, which, at 47,600 people, was one of the largest net migrations since 1996. Over the past 20 years, Oregon had an average net migration of 28,600 people per year. The lowest number of net migrants over the last 20 years was 7,000 in 2010 during the recession. In general, net migration increases as the economy expands and more jobs become available; during recessions, the population becomes less mobile. This fact, combined with Oregon experiencing a deeper recession than the nation as a whole, brought net migration to its lowest levels since the 1980s.5 Real Estate Development Patterns The high economic growth periods in the 1920s, 1960s, 1970s, and 1990s saw the most development activity, with new development extending outward from the city centers. Both Eugene and Springfield saw high levels of residential, commercial and industrial development between 2000 and 2006. The late 2000s economic recession severely curtailed new development in almost all segments of the local market area. In the current expansion cycle, there has been a notable increase in development activity, absorption of vacant lots, and lowered vacancy throughout the market area. Residential Development— Most of the area’s single-family housing was built from 1965 to 1980, and consists primarily of average-quality, ranch-style homes. Residential development slowed during the recession of 1981- 83, with new construction gaining speed beginning in 1988 and continuing until the recession in 2007. New single-family homes constructed since 1988 are of generally higher quality than those of the 1970s, with two-level houses more prevalent due to smaller lots. Between 2008 and 2012, building activity fell well below the historic average for single-family homes. Residential building construction has increased more recently, but not to pre-recession levels due mostly to high construction costs and a constrained land supply. 5 Bechtoldt, Felicia “Oregon’s 2018 Natural Population Increase Was the Lowest on Record”, Worksource Oregon, 26 April 2019. Web. ATTACHMENT 3, PAGE 15 OF 66 Market Area Description Duncan & Brown - 16 - Multi-family development in the area ranges in age from new to 50 years old. Most multi-family structures are wood-frame, garden-court style, suburban apartment complexes. A large number of units were constructed in the 1990s, which resulted in above-average vacancy for an extended period of time as new units were absorbed. Recent building permit data indicates that over 3,000 new apartment units have been constructed in Eugene and Springfield since 2000, with an increase in off- campus construction in the last few years. Nevertheless, vacancy has remained low and rents have been increasing, suggesting an under-supply in the market. New housing construction in Lane County peaked in 2005 before the recession and dropped dramatically from 2006 to 2009. The 2018 building permit data show a slight drop in single-family construction and an increase in multi-unit buildings.6 Multi-unit structures of five or more units grew rapidly in 2013 and 2014 from a boom in student housing associated with the University of Oregon. Construction of single-family units has steadily increased since bottoming out in 2011, although it is still well below pre-recession levels due mostly to lack of available land.7 Overall, building activity is recovering to stable levels, but limited land availability and high construction costs will continue to temper the addition of new units to the area. Commercial and Industrial Development— Commercial development includes a central business district in Eugene’s downtown core, neighborhood shopping centers, two regional malls, and a large lifestyle shopping center, which account for much of the retail space in the market area. Downtown Eugene contains a large amount of office space with city, county, and federal governments occupying the largest share. The downtown Springfield area has a limited supply of general office space, with government agencies occupying the majority of what is available. Over the past 15 years, newer offices have been developed by owner- occupants in the Coburg Road, Chad Drive, and Crescent Avenue subareas in north Eugene, as well as in the Gateway subarea in northwest Springfield. The Eugene/Springfield metropolitan area has several established industrial neighborhoods. The West Eugene industrial neighborhood is the largest and most heavily developed industrial area in the city of Eugene. Industrial development is also occurring near Highway 99N/Airport Road, a developing area with a large amount of vacant land. Industrial development in Springfield is located on the south side of South A Street and in areas near Olympic Street and 42nd Street. Between 2005 and 2007, prior to the late-2000s recession, industrial development had also been occurring at a historically high level. 6. Rooney, Brian. “Lane County Building Permits Rebound in 2018”. Worksource Oregon, 12 March 2019. Web. 7. Ibid. ATTACHMENT 3, PAGE 16 OF 66 Market Area Description Duncan & Brown - 17 - Economic Conditions The Eugene/Springfield metropolitan area is the regional hub for manufacturing, services and government in the southern Willamette Valley. The primary trading area population is approximately 220,000, and retail, wholesale, and professional services serve an overall population of approximately 550,000, which includes all of Lane County and portions of neighboring counties. Forest products manufacturing, once a major economic driver in Lane County, has declined over several decades due to changes in forest practices and global economic conditions. Another major industry, recreational vehicle manufacturing, was substantially impacted by the most recent recession, resulting in the closure of several RV manufacturing plants locally. Consequently, Lane County’s economy has diversified to include an increasing number of jobs in service industries such as retail trade, customer service and health care. The area is home to an expanding artisan food and beverage industry. Regional vineyards, breweries, food manufacturers and retailers are proliferating in the Willamette Valley. Ninkasi Brewing, with over 80 local employees, has risen to the third-largest beer producer in Oregon and 32nd in national beer sales, capturing a portion of the $10.2 billion craft beer industry nationwide.8 It has expanded its brewing and storage capacity in downtown Eugene and extended its distribution network to 14 states and Canada.9 Other organic and artisan food producers include chocolatiers, dairy producers, and other specialized food makers. The Eugene/Springfield metro area has seen a gradual but consistent recovery from the Great Recession of the late 2000s. The area hit a peak unemployment rate of 13.2% in 2009 followed by a steady decrease and stabilization into 2019, generally in line with statewide trends as evident on the chart on the following page After losing approximately 18,000 jobs during the recession, Lane County officially crossed the threshold of the prerecession employment peak in November 2016, having gained back all the jobs lost during the recession.10 By the end of 2016, Lane County was the 86th fastest growing economy out of 382 metropolitan statistical areas (MSAs) in the U.S. in terms of gross domestic product. That growth was fueled primarily by gains in the professional and business services, financial activities, education and health services industries.11 8. “Ninkasi Brewing Continues to Boom and Grow.” Business Oregon. n.d. Web. <http://www.oregon4biz.com/story.php?storyID=71>. "Beer Sales." Brewers Association. N.p., n.d. Web. <http://www.brewersassociation.org/pages/business-tools/craft-brewing- statistics/beer-sales>. 9. Russo, Ed. “Food and beverage providers seek niche in 2016.” Blue Chip Magazine, February 2016. 10. Rooney, Brian. “Lane County is Finally Back to Prerecession Employment Levels”. Worksource Oregon, 6 June 2017. Web. 11 Rooney, Brian. “Lane County’s Economy Grows Faster Than the Overall Growth Rate for U.S. MSAs in 2016.” Worksource Oregon. 21 November 2017. Web ATTACHMENT 3, PAGE 17 OF 66 Market Area Description Duncan & Brown - 18 - According to the Oregon Economic and Revenue Forecast, Oregon’s economy continues to expand, and per capita personal income is rising. The labor market is tightening as businesses report difficulty in finding and retaining workers. Transportation The metropolitan area is served by the Interstate 5 (I-5) freeway, the westernmost interstate freeway system in the U.S., which extends the length of the west coast. This freeway bisects the metropolitan area from north to south and forms the boundary between Eugene and Springfield. Interstate 105 (I- 105), an inter-urban freeway, traverses I-5 and connects Eugene and Springfield. Several major state highways pass through the community and provide a direct route of travel to the major markets throughout the region. The city of Eugene is a major switching area for the Union Pacific and BSNF railroads. Motor freight carriers and the Greyhound bus line also serve the metropolitan area. Eugene Airport, also known as Mahlon Sweet Field, is the fifth-largest airport in the Pacific Northwest and the largest non-hub airport in the nation, providing commercial air service to majo r cities in six western states.12 The Port of Coos Bay, located 120 miles to the southwest, is the largest deep-draft coastal harbor between San Francisco Bay and Puget Sound, and is Oregon’s second- busiest maritime commerce center.13 Education The metropolitan area is served by three school districts: Eugene, Springfield and Bethel, containing a total of 35 elementary schools, three K–8 schools, 15 middle schools, seven comprehensive high schools, four 12. Eugene Airport Media Guide, Eugene Airport website, http://flyeug.com. 13. Oregon International Port of Coos Bay, “Navigation & Channel Data,” http://www.portofcoosbay.com. ATTACHMENT 3, PAGE 18 OF 66 Market Area Description Duncan & Brown - 19 - alternative high schools, an international high school program on multiple campuses, three K-12 language immersion programs, and a life skills program. There are six charter schools among the three districts. The area is also served by several parochial and college preparatory schools. Eugene is the home of the University of Oregon, Lane Community College, Gutenberg College, Northwest Christian University and New Hope Christian College. The University of Oregon (UO) is a four-year state university with an enrollment of approximately 23,000 students. UO has earned national and international recognition for excellence in its law school, business, journalism and music colleges, as well as its chemistry, creative writing, psychology and special education programs. Lane Community College (LCC), a two-year public college, includes general education courses, lower-division college transfer courses, and occupational training. Over 36,000 students take credit or noncredit classes at LCC, which has the third largest enrollment of credit students of the 17 community colleges in Oregon. The main campus is located in south Eugene. LCC’s new $54 million, 90,000-square- foot Downtown Campus Academic Building opened in downtown Eugene in 2012. It features sustainable construction and design elements, housing for 255 students and a sizable retail space. LCC also offers a Flight Technology Center at the Eugene Airport, community learning centers in Cottage Grove and Florence, and several outreach centers in area high schools and other sites. Utilities & Community Services Water and sewerage are provided by local municipalities, while solid waste disposal service falls to various private firms. Eugene Water and Electric Board, Springfield Utility Board, and Northwest Natural Gas serve most areas throughout Eugene and Springfield. The cities have individual police departments and are involved in a phased consolidation of the fire departments, while outlying areas are served by rural fire districts and the county sheriff’s department. Three hospitals serve the region. Sacred Heart Medical Center at RiverBend, located in the Gateway area of Springfield and operated by PeaceHealth, is licensed for 338 beds and is the only Level II trauma center in Lane County. Sacred Heart Medical Center University District, a 104-bed specialty hospital, is located near the University of Oregon campus in central Eugene. Since the opening of RiverBend in 2008, PeaceHealth has invested substantially in the University District hospital. McKenzie-Willamette Medical Center, an investor-owned acute care hospital licensed for 114 beds, is located in the north-central neighborhood of Springfield. Additionally, the State of Oregon opened a 211,000-square- foot, 174-bed state psychiatric hospital in Junction City in 2015.14 In 2016, the U.S. Department of Veterans Affairs opened a 126,000-square-foot hospital in northeast Eugene. The hospital is estimated to have cost $50 million, and services include surgeries, podiatry and dental care. Officials expect to care for close to 14,000 veterans at the new facility.15 14. Carillo, Angelica. “New psychiatric hospital in Junction City to welcome first patients this week.” KMTR. 8 March 2015. Web. 15. McDonald, Sherri Buri. “Veterans, medical staff celebrate Eugene VA clinic’s grand opening.” The Register‐Guard. 26 Jan. 2016. ATTACHMENT 3, PAGE 19 OF 66 Market Area Description Duncan & Brown - 20 - Government Controls & Regulations Eugene and Springfield are both governed by a mayor/city council/city manager form of government. Lane County has a commission form of government with five county commission districts. Eugene is the county seat. Oregon and Lane County re ly on income and property tax receipts for school, local, state and general funding; there is no sales tax in Oregon. Oregon has one of the most comprehensive land use planning systems in the United States. The system was established in the early 1970s as a way to facilitate orderly development, control urban sprawl and preserve farmland. Each local government was required to establish an Urban Growth Boundary (UGB) and develop a plan in which growth outside the boundary cannot take place until the interior of the boundary is filled. The State Land Conservation and Development Commission (LCDC) was established to oversee the process. Local planning departments and commissions retain the authority to direct growth in their respective jurisdictions, and adherence to the goals of the statewide land use planning system varies within in the state. The state Land Use Board of Appeals (LUBA) was established to settle disputes not resolved at the local level. Citizens may challenge local decisions by appealing to LUBA. Summary & Trends Eugene and Springfield are typical western American cities in that they were founded on, and still somewhat depend on, resource-based industries. Major local institutions such as the University of Oregon and government agencies have provided an increased level of stability. The economy has diversified over the past several years and is expected to continue to do so in the future. The local economy tends to parallel national and state business cycles and trends. The metropolitan area is currently experiencing modest population growth, as is the state as a whole, and the majority of the increase is attributable to migration from other states. In the local area, the fastest growing age group is 55+, a trend that is expected to continue and will further spur the health care and retail services sectors of the local economy. Overall, the market area is expected to experience continued population growth in the next five years. Real estate values have appreciated and depreciated with the swings of the local economy and the amount of migration. Real estate values are appreciating in the current economic expansion cycle, with higher transaction volume over the past few years as interest rates have remained low, with some stabilization noted throughout the market. The long-term outlook for the area is for continued stability and modest appreciation following national and state-wide trends. ATTACHMENT 3, PAGE 20 OF 66 Duncan & Brown - 21 - CITY MAP CityMap^DeLORMEDeLormeStreetAtlasUSA®2015tj-iJaJ1V*<;faJ-&£$Hi.BELTLINERDIIJ5s+59<CAMPCREEKRD-55%"^HAYDENBRIDGERD|J-nA<w%I^r:/EE?'=1!MaIfPliFkirT'ia""—,-- —-file1—C. #l4H^MARCOLARDcr--:?:1^126JWc>~7NTENNIALBLVD 1 1nX--/i-CEIA^Thuigpn IMi,.SubjectP^ftff—h®r~T-fetu§t^jfringfield5]|126J±MAINSTMAIN.ST—:main;st=WI{l26B{12CB]fl2CB]LHIffiSjP",isJdJLTfinHITr3\aa9Race&H1IE.£&.tass,-v^5#£f-ft•&[99|34--05'\h•o<3IDorrisRanchHistoryFaLiving?-:TtEBU1®,FR^Si-Avs}o\~nzrIDatausesubjecttolicense.1<rni©DeLorme.DeLormeStreetAtlasUSA®2015.01/4 1/2%11%VAwww.delorme.comDataZoom1 1-7MN(14.6°E)21Duncan&BrownATTACHMENT 3, PAGE 21 OF 66 Duncan & Brown - 22 - NEIGHBORHOOD MAP SUBJECT PROPERTY NeighborhoodMapT].('tiK'VJTilMfcaIrT-,reat1?1•'!brf-•1_HP?!SUBJECTPROPERTY,:Tit,:m-----Ir>xT1:,v>iI'Emr.'lfeS_3w.IL'lrj- -.-:—sTTT.sif*"mffcft.ffc_wrn2£'aI±JV .•:8«djiiifebjpi--'£5''IfiB!u•wI¥Mti335'.->:ssrl.iSS^jp>7-T;-I-a'ar:it*s&liJa.Jin[126]*IBI;jv,"''HIftti?4*i'"L\SiJ-^[*V.-,\'.;/r"ia?-if.cEK?.';-I'IftV3Gt;/uII•i->iii^03Wf.*•opgleEarthM'Ml:rM?oi!™Ufe*:'Ks22Duncan&BrownATTACHMENT 3, PAGE 22 OF 66 Duncan & Brown - 23 - N EIGHBORHOOD D ESCRIPTION Downtown Springfield Downtown Springfield is the historical core of the city and contains the oldest development in Springfield. Downtown streets are dominated by older, storefront-type commercial buildings. The remainder of the neighborhood is a combination of single-family and multi-family residential development that includes the Washburne District, a designated national historical district. Land use and development in the neighborhood are generally described as follows: Commercial Development Commercial development is located primarily along the major east/west arterials of Main and South A Streets. Main Street is a westbound one-way arterial, while South A Street is an eastbound one-way arterial. Development on these two commercial streets includes two- and three-story storefront buildings dating from the late 1800s and early 1900s, as well as a bank building constructed in the 1960s. With the exception of the Springfield City Hall and the new Justice Center, there have been very few buildings constructed in the downtown Springfield area since the 1960s. The 100 through 700 block of Main Street contains the majority of the older buildings, with South A Street and the 800 and higher blocks of Main Street containing the newer buildings (1950s-60s). The older buildings offer the character and appeal of the era of their construction while the newer buildings are utilitarian with minimal visual appeal. Tenants in the downtown core include several restaurants and bars, the Wildish Theater, the Springfield Library (former City Hall building), alternative schools, and assorted small retail tenants. Some of the buildings have second floor office space or apartments, and there has been some subsidized renovation of this type of space into low-income apartment units. Development located west of Pioneer Parkway includes several auto-related uses, as well as the old Springfield railroad depot, which was donated to the city by Southern Pacific Railroad and moved to its current location at South A and 2nd Street in 1990. The city received a large grant to rehabilitate the structure and has worked to make the building the focal point of the downtown neighborhood by naming the area the Depot District. Commercial development is also located on North A Street and the first few blocks of Pioneer Parkway and Mill Street. These buildings are primarily 1950s and 1960s single-story retail and office structures. Springfield launched a downtown beautification program several years ago that included the street reconstruction, wall art, and a façade restoration/rehabilitation program, among other things. The façade program has encouraged and provided support for building owners who restore their building façades to the original appearance. The beautification program has greatly improved the appearance of the downtown area. The City of Springfield has been installing LED streetlights to improve the lighting along Main Street between 5th Street and Pioneer Parkway (2nd Street). Industrial Development There is no industrial development within the neighborhood as defined. However, there is a large industrial development south of South A Street, which includes the Booth-Kelly Center. The Booth- Kelly Center is a former mill complex that was donated to the city and renovated with government funds into a multi-tenant industrial center. The operation of the center is subsidized to attract industrial development to the Springfield area. ATTACHMENT 3, PAGE 23 OF 66 Neighborhood Description Duncan & Brown - 24 - Residential Development Residential development in the subject neighborhood consists of both single-family and multi-family land uses. The single-family development is located north of the commercial area. The housing stock is mostly wood-frame bungalows and two-story structures built in the late 1800s through the 1920s. The Washburne National Historic District is located within the neighborhood. This area is the original Springfield residential neighborhood and contains the oldest homes in the city. Many of the homes have been restored in the past 20 years with the help of the property tax-freeze program. There are newer homes (1930s to 1960s vintage) scattered throughout the neighborhood that were built on infill lots. There has been essentially no new development since the 1960s. Maintenance levels range from poor to very good and are predominantly average, with homes in the Washburne area maintained better than other parts of the neighborhood. Multi-family residential development is concentrated on the east sides of Mill Street and Pioneer Parkway between D Street and H Street, although there are several other apartment complexes scattered throughout the neighborhood. Most of the apartments in the subject neighborhood were constructed in the 1960s and 1970s and are of average quality and condition. Community Development The subject neighborhood is located in the Springfield School District No. 19 and is served by Springfield High School, as well as several elementary and middle schools. Several parks located within the boundaries of the subject neighborhood provide a wide variety of recreational amenities, including playgrounds, baseball/softball fields, picnic areas, etc. Willamalane Park, located on the northern fringe of the neighborhood, offers public swimming facilities. Silke Field, a multi-purpose stadium owned by the school district, is also located just north of the neighborhood at Springfield High School. The Springfield Library is located in the City Hall building at North 5th Street and A Street. Transportation The subject neighborhood is primarily automobile oriented. The area is platted in a lot and block grid fashion. Major arterials are South A Street and Main Street in the east and west directions, and Pioneer Parkway East and Pioneer Parkway West in the north and south directions, respectively. Freeway access is located within one mile of downtown Springfield at the Pioneer Parkway interchange with Interstate 105 to the north and the Glenwood interchange with Interstate 5 to the southeast. Lane Transit District (LTD), the local municipal bus service, also serves the area on Pioneer Parkway and Main/South A Streets. Summary The downtown Springfield neighborhood is a combination of commercial and residential uses that consist of the old city of Springfield. The downtown area is no longer the retail center it once was; however, downtown commercial activity has increased in recent years due in part to efforts to beautify the neighborhood. Overall, the downtown neighborhood is a stable area that is experiencing ongoing revitalization. ATTACHMENT 3, PAGE 24 OF 66 Duncan & Brown - 25 - P ROPERTY D ATA Legal Description The legal description for the subject property is described below: The West 51 feet of Lot 1 and the East 20 feet of Lot 2, Block 5, Extended Survey of Springfield, as platted and recorded at Page 1, of Volume I, Lane County Oregon Deed Records, in Lane County, Oregon. The subject is identified by the Lane County Department of Assessment and Taxation as Tax Lot 2900 on Map 17-03-35-32. Ownership and Sales History The Lane County Department of Assessment and Taxation and provided title report indicate ownership in the subject property is vested in City of Springfield. The property has been under the current ownership for an extended time. Research of available public records and private data services indicates there have been no transactions involving ow nership of the subject property in the past three years. Present Use The subject is presently a surface parking lot with 22 spaces plus an ADA space. The lot is currently utilized as a permitted lot with spaces leased for $15 per month. The lot is at full occupancy with a waiting list. Pertinent Conditions of Title A Preliminary Title Report dated as of September 24, 2019 prepared by Evergreen Land Title Company was provided and reviewed. The report references 5 standard exceptions and only 1 special exception related to taxes. There are no noted exceptions which would encumber the property or impact the utilization under the highest and best use. During the physical inspection, no easements, encroachments or encumbrances were noted that would have a negative impact on the subject property when compared to competing properties. A specific assumption of this report is that no negative easements or encroachments affect the subject property. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Real Estate Tax Analysis Owners of real and business personal property pay property taxes according to the assessed value of taxable residential, commercial, farm, industrial, utility and timber property. County assessors use permanent rates set for all taxing districts in fiscal year 1997-98, when taxes were significantly reduced with a statewide average 17% cut in tax levies. Certain types of levies are outside this reduction. The tax rates cannot exceed $15 per $1,000 of real market value. For 1997-98, all property was valued by county assessors at 90% of the July 1, 1995, levels. For subsequent years, assessed values are limited to a 3% annual growth rate. Construction since July 1, 1995, is valued at the average rate of similar properties in the area. One-third payment is due by November 15. If fully paid by November 15, a 3% discount is allowed. Special exemptions, tax relief programs and deferrals are available. The 2019 certified real market and assessed values via the Lane County Department of Assessment and Taxation are set forth as follows: IDENTIFICATION REAL MARKET VALUE ASSESSED VALUE TAXES Tax Lot Account Land Improvements Total 2900 0314474 $150,364 $20,562 $170,926 $80,324 $0.00 ATTACHMENT 3, PAGE 25 OF 66 Property Data Duncan & Brown - 26 - Zoning The subject property is zoned MUC, Mixed Use Commercial with a designation for C, Commercial and ND, Nodal Development. The MUC zoning allows for a wide variety of uses, including non-profit organizations, gyms and athletic clubs, exercise studios, art studios, recreation centers, community centers, fraternal and civic organizations, taverns and brew pubs, cafeterias, restaurants and cocktail lounges, and public offices. The zone also allows for residential development as long as a minimum of 60% of the ground floor area within a new building is dedicated to commercial use. A minimum floor-area ratio (FAR) of 0.40 to 1 shall be required for all new development in the MUC portion of the Downtown Mixed-Use Area. The location within a Nodal Development Overlay District allows for flexibility of mixing compatible uses on the site, and all uses permitted in the NC, CC, MRC, GO, MUC and MS zones are permitted. The Downtown Mixed-Use Area was previously proposed for code amendments that would re-zone the area, but this project has been postponed indefinitely as of the date of value, according to City Staff. Parking lots and parking structures are a specially permitted use in the MUC zone subject to development standards set forth by Section 4.7-180 Mixed Use Districts. Mixed‐Use Commercial District (MUC). The MUC District is established where a mix of commercial with residential uses is compatible with existing nearby uses. Development within the MUC District shall have a commercial dominance, with residential and public uses also allowed. The primary development objectives of the MUC District are to expand housing opportunities; allow businesses to locate in a variety of settings; provide options for living, working, and shopping environments; facilitate more intensive use of land while minimizing potentially adverse impacts; and to provide options for pedestrian-oriented lifestyles. Development areas one acre or more in size in the MUC District shall have frontage on either an arterial or collector street. Access to any MUC development area may be from a local street, if there is no negative impact on adjacent residential uses. Pertinent Development Standards: For residential developments a minimum of 60% of the ground floor area shall be dedicated to commercial uses and a minimum FAR of 0.40 shall be required for all new development in the MUC portion of the Downtown Mixed Use Area. SUBJECT PROPERTY ATTACHMENT 3, PAGE 26 OF 66 Property Data Duncan & Brown - 27 - Additional Information The City of Springfield development code, which includes building standards and permitted uses, is available at <http://qcode.us/codes/springfield-development/>, the City of Springfield’s development code site. ATTACHMENT 3, PAGE 27 OF 66 Duncan & Brown - 28 - S UBJECT P HOTOGRAPHS Viewing south across the parking lot. Westernmost parking spaces. Easternmost parking spaces. Viewing north across the parking lot. Viewing west at adjacent public alley from the subject lot. Viewing north at Pioneer Parkway from the subject lot. ATTACHMENT 3, PAGE 28 OF 66 Duncan & Brown - 29 - S ITE D ESCRIPTION The following summarized property description is based on a personal inspection of the subject, review of information provided by the owner, and review of Lane County records. For a visualization of the subject site, your attention is directed to the subject photographs and aerial photographs included within this report Site Size: 8,520 square feet, or 0.20 acre. Site Configuration: Rectangular shaped corner parcel. Topography: Level and at grade with abutting streets and properties. ATTACHMENT 3, PAGE 29 OF 66 Site Description Duncan & Brown - 30 - Zoning: The subject property is zoned MUC, Mixed Use Commercial with a designation for C, Commercial and ND, Nodal Development. Linkages & Access: The subject is well-located with respect to Downtown Springfield, supportive and complementary commercial services, residential districts where patrons and employees live, and intercity and interstate highways and mass transportation. The site is currently accessed from A Street and the alleyway to the south. There is no vehicular access from Pioneer Parkway East. Exposure & Frontage: The subject property has good exposure to Pioneer Parkway East and A Street, with frontage on both streets and the alleyway to the south. Utilities: All public utilities are available to the subject property. Abutting Properties— North: A Street followed by commercial development. East: Pioneer Parkway followed by commercial development. South: Public alleyway followed by commercial development. West: Commercial development. Street Improvements: At the subject property, A Street is a bidirectional downtown street, with traffic traveling east/west. The street has short-term on-site parking, sidewalks, concrete curbs, and gutters. Pioneer Parkwa y East is a one-way arterial with traffic traveling north. This street is asphalt paved with two traffic lanes, an EmX rapid transit lane, concrete curbs, gutters and sidewalks. Flood Hazard Area: Zone X, outside the 500-year flood, according to FEMA Map 41019C1142F. It should be understood the appraisers are not experts in this field and if there is further concern with regard to flood hazard areas or insurance requirements, further research is advised. Wetlands/Soils: There are no known wetlands located on the subject property. A soil survey has not been supplied to the appraisers. During the property inspection, there were no conditions observed that would suggest any problem with development of the site. It is assumed there are no soil conditions that would affect development of the subject site to its highest and best use. Hazardous Wastes: A current Environmental Site Assessment of the subject propert y was not available. The appraisal is predicated on the assumption that there are no hazardous wastes on or in the property that would affect the highest and best use of the subject property and/or cause a loss in value. If there is further concern with regard to hazardous materials, further research is advised. Site Rating: Overall, considering physical and locational attributes, the subject is rated as a good quality mixed use parcel in Downtown Springfield. ATTACHMENT 3, PAGE 30 OF 66 Site Description Duncan & Brown - 31 - Improvements: The site is asphalt-paved, with vehicle parking stalls and a central drive lane. The subject improvements consist of asphalt paving marked and configured as a 22-space parking lot with 1 ADA space. Overall, the parking improvements are of average quality and in average condition. No significant items of deferred maintenance were noted and there are no apparent functional issues associated with the configuration of the parking stalls. This overall observed condition was considered in the appraisal analysis. ATTACHMENT 3, PAGE 31 OF 66 Duncan & Brown - 32 - H IGHEST AND B EST U SE The term “Highest and Best Use”, which was previously defined, applies specifically to the highest and best use of land. It is recognized that, in the case where the site has existing improvements, highest and best use may very well be determined to be different from the present use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. In order to pass the test of highest and best use, a property use must be legally permissible, physically possible, and financially feasible or marketable. Therefore, in the measurement of highest and best use the ability of the subject property to meet these criteria, as if vacant and as improved, was analyzed. As If Vacant The legal considerations primarily focus on the zoning of the site, which is MUC, Mixed-Use Commercial. The MUC zoning is designed to allow a wide variety of commercial uses with residential and public uses also allowed. Development within the MUC District is intended to have a commercial dominance, with secondary residential and public uses. Please see the zoning section of this report for a discussion of allowed uses. The physical characteristics of the subject site have previously been described and are supportive of development with an allowable use under the MUC zoning. The site is level and there is a full level of public utilities to the site. Direct access is available from one street and a public alleyway with additional exposure to an additional high traffic street. The highest and best use of the subject, as if vacant, would be to develop as demand warrants with an allowable use under the MUC, Mixed-Use Commercial zoning ordinance. As Improved The site is 100% asphalt-paved, with vehicle parking stalls and drive lanes arranged to maximize the number of stalls. The subject improvements consist of asphalt paving marked and configured as a 22- space parking lot. Overall, the parking improvements are of ave rage quality and in average condition. Legally and physically the property can continue as a surface parking lot with monthly or daily parking rental or could be redeveloped with an allowable use within the MUC zone. Maximally Productive Use— In order to conclude the appropriate maximally productive use of the subject property, consideration must be given to the value as improved and as redevelopment land. The analysis of the maximally productive use of the subject property involves the following steps: 1. Analysis of the land-only value for redevelopment; 2. Analysis of the property as improved – as a surface parking lot; 3. Comparison of the values as improved and as vacant, with consideration given to market perceptions and trends. Analysis as Development Land— Based on the sales presented within this report, the value of the site for redevelopment is estimated at approximately $20 per square foot given the small site size but high utility on a corner with good accessibility and interim use as a parking lot. This equates to $170,000 as redevelopment land. ATTACHMENT 3, PAGE 32 OF 66 Highest and Best Use Duncan & Brown - 33 - Analysis as Improved— The following analysis estimates the value of the property as an improved parking lot. The first step is the estimate of economic rent for the subject property. Based on surrounding lots in the area and demand from commercial users in the immediate area, there is ample demand for monthly permit parking. The following chart summarizes rents for parking spaces in comparable lots in the downtown market area. Competitive Surface Lot Monthly Rental Rates NO. LOCATION LOT TYPE MONTHLY RATES 1 7th Street & A Street Springfield Uncovered $15 2 220 5th Street Springfield Uncovered $15 3 538 Main Street Springfield Uncovered $30 In the local market area, every parking lot functions differently—even lots that are adjacent to each other can generate different space rents or achieve different occupancy levels depending on a wide variety of factors. The forecasted space mix, rates, and occupancy are considered to reflect a realistic analysis a typical market participant would undertake if purchasing the subject. There is potential to designate the spaces at a mix of daily/hourly/monthly uses that maximizes income, taking into account the risk of an as-yet unproven income stream, as the subject has historically been rented at below market rates. For this threshold analysis, an aggressive approach will be taken to reflect the highest possible valuation achievable for the surface parking l ot in order to determine the maximally productive use. Based on the above analysis, potential income is estimated as follows: Parking Spaces: 22 (excluding ADA) Monthly Rate: $30 (highest achieved in immediate area) Occupancy: 95% Annual Income: $7,524 The next step in the maximally productive use analysis is the estimate of typical annual operating expenses to calculate the net operating income for the subject. The forecasted potential gross income reflects a gross basis, with the owner responsible for property taxes, maintenance and management. Expenses for operating the subject property are based on available market data, and are estimated as follows: Real Estate Taxes—The subject’s 2019 property taxes were as follows: IDENTIFICATION REAL MARKET VALUE ASSESSED VALUE TAXES Tax Lot Account Land Improvements Total 2900 0314474 $150,364 $20,562 $170,926 $80,324 $0.00 The property is currently tax exempt. Utilizing the tax code area 01999 millage rate of 17.9123, the taxes would equate to approximately $1,439 or approximately 19% of gross income. Maintenance & Reserves—Typically, daily maintenance for surface parking lots such as the subject is done by a management company. Larger maintenance items as well as reserves for replacement of long-lived items are responsibility of the owner. In this analysis, a maintenance and reserve expense of 3% of gross income is estimated based on the costs reported by other parking lot owners. ATTACHMENT 3, PAGE 33 OF 66 Highest and Best Use Duncan & Brown - 34 - Management—Companies that manage surface lots in the area provide services such as operating the parking lot, collecting cash deposits, issuing violations, and daily maintenance and cleaning. Service fees vary widely depending on the physical features of the lot, as well as its income potential and the structure of the management contract. A local parking management company indicated that for a lot like the subject with low overall gross income, the management expense would either be 50% of net operating expenses or $150 to $200 per month flat fee. In this analysis, a management expense of $2,400 is estimated which is close to the 50% of net income methodology. This reflects 32% of effective gross income. The final step in estimating the maximally productive use analysis is the selection of an appropriate overall capitalization rate to convert the estimate of net operating income into value. The overall capitalization rate is considered a measure of risk. Typically, more risky properties indicate a higher overall rate while less risky properties indicate a lower overall rate. Risk can be in the form of older age, poor condition, an inferior location and other similar factors. The subject is an asphalt-paved parking lot and the risk associated with the remaining economic life is nominal. Additionally, a high percentage of the value is represented by the underlying land, which decreases the risk to the investment if the current use cannot continue. Most parking lots which sell have underlying land value that either exceeds or is nearing the value as an improved parking lot and most often are purchased based on the underlying land value rather than on the income-generating potential for surface parking. There were no sales of parking lots or parking structures with which to extract a reliable overall capitalization rate. According to a local manager of a large company that owns parking lots and manages lots for other owners, market participants make purchasing decisions with the recognition that properties improved as surface lots often have a different highest and best use. Purchasers of surface lots look to pay underlying land value, recognizing the long-term investment. This can sometimes result in a capitalization rate relative to the parking income of 1% to 3% when the highest and best use is redevelopment. When analyzing this type of property, an important component to recognize is not only the locational, physical and market characteristics of the property, but also the perceived investment risk. In selecting the appropriate rate, the property as an investment would also be compared to other investment possibilities. As a long-term investment, the subject lot could be compared to long term ground leased properties or triple net investments, with consideration given to some offsetting risk characteristics such as the lack of improvements on the site and lack of a long-term lease in place, offset by the lower returns typically required for land compared to improved properties and the upside for redevelopment of the site. The chart on the following page lists ground leased properties or long-term net leased properties with significant tenant investment or limited site improvements sold in the last 5 years that essentially reflect similar risk as a land lease from an investor perspective. These sales reflect capitalization rates ranging from 3.7% to 5.5% for a range of sale dates. The lowest indicator is a corporate leased Starbucks and is lower than would be expected for the subject. The remaining sales have capitalization rates ranging from 4.9% to 5.5%. These types of transactions are fairly limited which results in several dated sales. However, the capitalization rates reflected in these sales are generally consistent with more recently observed improved triple net investments in 2018 and 2019 with some downward pressure and stabilization in the last few years compared to 2016 and 2017. ATTACHMENT 3, PAGE 34 OF 66 Highest and Best Use Duncan & Brown - 35 - Ground Lease & Long-Term NNN Lease Investments NO. LOCATION SALE DATE YEAR BUILT SALE PRICE OAR 1 Starbucks 1895 Franklin Blvd. Eugene 3/16 2015 (rebuilt) $3,765,000 0.037 2 KeyBank ground lease 1625 Mohawk Blvd. Springfield 1/16 2014 $3,425,000 0.049 3 US Bank Ground Lease 1400 Highway 99 Eugene 11/17 1975 $980,000 0.050 4 Dutch Bros. Lease 1701 W. 11th Avenue Eugene 8/16 1959/2004 $910,000 0.055 In this analysis, a rate of 5% is utilized which is on the lower end of the range of overall rates for typical investments but is considered appropriate for the threshold analysis. The valuation of the subject property for the maximally productive use threshold is summarized as follows: Conclusion— The value of the subject as development land is concluded to be $20.00 per square foot, as summarized on p. 32 of this report and demonstrated by the analysis in the following section. The value of the subject as improved, based on its income-generating capacity as a surface parking lot, is concluded above to be $8.22 per square foot. Therefore, in the current configuration and considering current and anticipated market demand for parking in the immediate area relative to available supply, the existing improvements cannot generate enough income to support the value of the 8,520 square-foot site as though vacant and available for development under the MUC zoning ordinance. The surface lot does offer income for an interim use, but ultimately the underlying land value exceeds the surface parking lot value and the highest and best use would be redevelopment, when financially feasible. Space Type Total Spaces $/Month Monthly Rent Annual Rent Surface Parking 22 $30.00 $660 $7,920 Potential Gross Annual Income $7,920 Less: Vacancy & Collection Loss 5%–$396 Effective Gross Income $7,524 Taxes 19% $1,439 Maintenance & Repairs 3% $226 Management 32% $2,400 Less: Total Operating Expenses – $4,065 Net Operating Income $3,459 ÷0.0500 $69,180 Rounded to:$70,000 Resulting $/SF Land Value Threshold:$8.22 Pro Forma Income Analysis Surface Parking Lot • 245 A Street • Springfield Divided by Overall Rate: Market Value Indicated by the Income Capitalization Approach: ATTACHMENT 3, PAGE 35 OF 66 Duncan & Brown - 36 - A PPRAISAL P ROCESS The appraisal process that is applied to most real estate properties is designed to evaluate all factors that influence value. Regional, city and neighborhood information has been presented to inform the reader of general outside influences that may affect value. In addition, the site and improvements have been described in detail. The interaction of the site and improvements establishes the utility and desirability of the entire property. The Highest and Best Use section has been provided to evaluate the effect of legal, physical, and market considerations that influence the use of the property. The next portion of this appraisal process deals directly with the valuation of the property. The Cost Approach is based on the principle that the value of the property is significantly related to its physical characteristics, and that no one would pay more for a project than it would cost to build a like project in today’s market on a comparable site. In this approach, the market value of the site is estimated and added to the estimated value of the improvements. The Sales Comparison Approach is based on the principle of substitution. This principle states that no one would pay more for the subject property than the value of a similar property in the market. In active markets with a large number of physically similar comparables, this approach is generally considered a good indicator of value. However, the use of this approach is limited, because many properties have unique characteristics that cannot be accounted for in the adjustment process. In addition, market data is not always available. Both of these factors may reduce the validity of this approach. The Income Capitalization Approach is based on the premise that commercial properties are income- producing, and that investors purchase these properties based on their income-producing ability. In the Income Capitalization Approach, market rent is established for the subject property, net operating income (NOI) is calculated by deducting typical operating expenses and a market-derived capitalization rate is applied in order to convert the estimate of NOI into value. An overall capitalization rate is then from market sales of properties with similar risk characteristics. This approach is typically what an investor would utilize to estimate a value for a property similar to the subject. In the following analysis, the Sales Comparison Approach will be utilized. The Income Capitalization Approach and Cost Approach are not applicable valuation techniques for vacant or redevelopment land. ATTACHMENT 3, PAGE 36 OF 66 Duncan & Brown - 37 - S ALES C OMPARISON A PPROACH Land Value Estimate Research and subsequent analysis was conducted of recent sales of commercial land in the local market, and those considered to offer the best comparison to the subject are presented. All sales were cash or cash equivalent transactions and were arm’s-length, with no noted duress reported by the parties involved. Additionally, the sales were compared to the subject based on the following characteristics: Market Conditions (sale date)—current market conditions compared to market conditions at the time of sale. Location—analyzes the subject site and its immediate surroundings, how it relates to those surroundings, and how it relates to the market area within the community’s land use plan. Site Size—specifically in terms of development potential, giving consideration to land use regulations. The subject site is a typical size for downtown development parcels and is bracketed by the available market data. Zoning—specifically in terms of allowable uses, parking, setbacks, floor area ratios and other development standards. Utilities—impact of available utilities, and/or the costs estimated to bring sufficient utilities to the site for development. The subject property is fully served, as are all the comparable sites. Access—identifying the degree of convenience or inconvenience involved in moving people, goods and services to and from the site. The subject property has good overall access. Exposure—specifically relative to the number of sides a particular site has, then analyzing the degree of exposure, relative to the highest and best use of the site and how it affects the site. The subject property has good exposure. Shape—analyzing the site in terms of development potential. Site Improvements—the subject site includes asphalt paving and has interim use as a parking lot. Overall Rating—a rating summarizing the above characteristics including opinions based on interviews with market participants and the appraiser’s experience and knowledge of local market influences. Adjustments—The lack of uniformity within the market prevents direct extraction of quantitative adjustments from the available market data. Qualitative analysis of market behavior was used to identify which comparables are superior or inferior to the subject based on the relevant elements of comparison. Analysis of the location and other physical similarities and differences between the items of market data and the subject establishes value parameters for the subject property, allowing for a conclusion of value. The land sale transactions summarized in the following table are included on the following land sales location map. ATTACHMENT 3, PAGE 37 OF 66 Sales Comparison Approach Duncan & Brown - 38 - Redevelopment Land Sales Chart NO. LOCATION SALE DATE SITE SIZE ZONING SALE PRICE SALE PRICE /SQ. FT. 1 Speculative Hold Purchase 705 S. A Street Springfield 17-03-35-31, Tax Lots 13600 & 13500 1/18 203,860 sq. ft. (4.68 ac.) MUC $1,250,000 $6.13 2 Church Redevelopment Purchase 687 River Avenue Eugene Map 17-04-13-00, Tax Lot 3400 4/19 58,806 sq. ft. (1.35 ac.) C-2/SR $653,125 $11.11 3 Older Residences: QSR Redevelopment Q Street & 5th Sale Springfield Map 17-03-26-24, Tax Lots 2200, 2300, 2400, 2500 10/17 57,935 sq. ft. (1.33 ac.) CC $1,200,000 $20.26 4 3636 Game Farm Road Springfield Map 17-03-15-33, Tax Lot 1100 Listing 23,522 sf (0.54 acre) CC $450,000 $19.13 5 Improved Hold for Redevelopment Site Downtown Eugene: Improved Special Purpose 1100 Charnelton St. Eugene Map 17-03-31-42, Tax Lots 3700, 3800, 3900 10/16 19,200 sq. ft. (0.44 ac.) C-2/TD $895,000 $46.61 SUPPLEMENTAL SALES A Former Church: Amazon Corner Apartments Redevelopment Site 3195 Hilyard St. Eugene Map 18-03-08-21, Tax Lot 5900 8/16 79,692 sq. ft. (1.83 ac.) C-2 $1,854,000 Adjusted $23.26 B Luxury Apartment Redevelopment Site Improved Office 177 Day Island Road Eugene Map 17-03-29-34, Tax Lot 200 8/18 39,524 sq. ft. usable (1.54 ac. gross) (0.91 ac. usable) C-2/PD/ WR $2,200,000 Adjusted $55.66 C Luxury Apartment Redevelopment Site 35 Club Road Eugene Map 17-03-29-32, Tax Lot 1500 8/17 29,887 sq. ft. (0.69 ac.) C-2/SR $2,018,760 $67.55 D Church Redevelopment Purchase 1062 Main Street Springfield 17-03-35-41, Tax Lots 4800 & 4900 5/17 22,651 sq. ft. (0.52 ac.) MUR $230,000 $10.15 E Entitled Office Development Site Harlow Rd. & Beverly St. Springfield Map 17-03-27-22-00200 & 300 12/16 Listing 40,075 sq. ft. (0.92 acre) CC $770,000 $1,950,000 $19.21 $36.69 Subject 245 A Street Springfield 8,520 sq. ft. (0.20 ac.) MUC ATTACHMENT 3, PAGE 38 OF 66 Duncan & Brown - 39 - LAND SALES LOCATION MAP LandSalesLocationMap*^DeLORMEDeLormeStreetAtlasUSA®2015mLandSale2IS%j'/ouX_svS&Xsp—z/%gLandSale41fj-af:[120]SoodpastureParka3=3^aJUWE.RpQjA^EZftw'&KDa%I%Iv..-S f*<3HARLDWRDIIIIT1o31rxjjH1Y~:FH—?Tr:nFpp:n=37AS3vgLandSale3sMTiS'eh3£s:I¥Mn+y<if.^EEMARCOLARD /iSlBfCENTENNIALBLVD.•WQ_ST_jSF—Ii'ilV?tnttnnial.blvdfEtr^t!e1seR-CENTENNIABLVg5Subjecti43)£LandSale5_tl20B]BakerParkisit-Mar^SjaPo|T~[120]LandSale1."r:H!Uf/51«S5.Springfielg^SA-S.T:'refpFFiff+IMAINST.LM[12CB][i2ee]1%+S==g^sNgJ!Lpw°5.37:7MIeRacefjE1^7_IE„hJx^Datausesubjecttolicense.mi©DeLorme.DeLormeStreetAtlasUSA®2015.0Yay2Ya1 1Ydwww.delorme.comDataZoom12-0IWN(14.6°E)Duncan&Brown39ATTACHMENT 3, PAGE 39 OF 66 Sales Comparison Approach Duncan & Brown - 40 - Land Sale Comparable 1 P ROPERTY D ATA Location 705 S. A Street City, State Springfield, Oregon County Lane County Map & Tax Lot 17-03-35-31, Tax Lots 13500 & 13600 Size (SF) 203,860 Size (Acres) 4.68 Zoning MUC Shape Irregular Topography Generally Level Access A Street; S. 7th right of way Flood Zone Zone X Utilities All available Proposed Use Hold for eventual development. Improvements at Time of Sale None. SALE DATA Sale Date 1/18 Sale Price $1,250,000 Price Per Square Foot $6.13 Deed Record 2018-1700 Grantor Kendall Development Group, LLC Grantee Karotko, LLC Terms Cash to seller Marketing Time Unknown. C OMMENTS Vacant lot located on A Street and abutting the railroad. Purchased as a hold for future development. Buyer planned to ultimately partition the site and sell smaller portions for development. Confirmation Karotko, LLC Buyer ATTACHMENT 3, PAGE 40 OF 66 Sales Comparison Approach Duncan & Brown - 41 - Land Sale Comparable 2 P ROPERTY D ATA Location 687 River Avenue City, State Eugene, Oregon County Lane County Map & Tax Lot 17-04-13-00, Tax Lot 3400 Size (SF) 58,806 Size (Acres) 1.35 Zoning C-2/SR Shape Rectangular Flood Zone Zone X Topography Level Access River Avenue Utilities All available Proposed Use Redevelopment Improvements at Time of Sale Old church building and single-family residence planned for demolition. SALE DATA Sale Date 4/19 Sale Price $653,125 Price Per Square Foot $11.11 Deed Record 2019-017824 Grantor Stolen Land IV, LLC Grantee Byrum Properties, LLC Terms Cash to Seller Marketing Time Listed in June 2018, sale was subject to site review which extended the due diligence period. C OMMENTS Site purchased for redevelopment. Demolition not explicitly deducted but considered in the purchase price. The new development was subject to site review which was paid for and facilitated by the buyers prior to purchase. Confirmation Darren Stone, Selling Broker ATTACHMENT 3, PAGE 41 OF 66 Sales Comparison Approach Duncan & Brown - 42 - Land Sale Comparable 3 P ROPERTY D ATA Location Q Street & 5th City, State Springfield, Oregon County Lane County Map & Tax Lot 17-03-26-24, Tax Lots 2200-2500 Size (SF) 57,935 Size (Acres) 1.33 Zoning CC Shape Irregular Topography Level Flood Zone Zone X Access Q Street & N. 5th Street Utilities All available Proposed Use Redevelopment with Dominos Pizza. Improvements at Time of Sale Older residences planned for demolition; no adjustment considered by buyers. SALE DATA Sale Date 10/17 Sale Price $342,852 $857,148 $1,200,000 Price Per Square Foot $20.26 Deed Record 2017-52615 2017-52614 Grantor Madani Hamid Jodi Marie Straushbaugh Grantee PRP Inc Terms Cash to seller Marketing Time Less than 6 months C OMMENTS Property improved with several single-family residences planned for demolition. Purchased for development with a Dominos Pizza. Purchased in two transactions to assemble the development site. Confirmation Gary Martin, CW Walker ATTACHMENT 3, PAGE 42 OF 66 Sales Comparison Approach Duncan & Brown - 43 - Land Sale Comparable 4 P ROPERTY D ATA Location 3636 Game Farm Road City, State Springfield, Oregon County Lane County Map & Tax Lot Map 17-03-15-33, Tax Lot 1100 Size (SF) 23,522 Size (Acres) 0.54 Zoning CC Shape Rectangular Flood Zone Zone X Topography Level Access Game Farm Road Utilities All available Proposed Use Redevelopment with retail use Improvements at Time of Sale Drive Through Coffee Stand C OMMENTS Retail pad site improved with a coffee drive-thru with all utilities available and asphalt paving. Reciprocal easements in place for ingress/egress as well as parking with adjacent properties. Confirmation Stephanie Seubert, Listing Agent SALE DATA Sale Date Listing Sale Price $450,000 Price Per Square Foot $19.13 Deed Record - Grantor - Grantee - Terms - Marketing Time - ATTACHMENT 3, PAGE 43 OF 66 Sales Comparison Approach Duncan & Brown - 44 - Land Sale Comparable 5 P ROPERTY D ATA Location 1100 Charnelton Street City, State Eugene, Oregon County Lane County Map & Tax Lot 17-03-31-42, Tax Lots 3700, 3800 & 3900 Size (SF) 19,200 Size (Acres) 0.44 Zoning C-2/TD Shape Rectangular Flood Zone Zone X, areas outside 500-year flood Topography Level Access W. 11th Avenue & Charnelton Street Utilities All available Proposed Use Long-term redevelopment land with holding costs offset with income generated by improvements. Has not yet been redeveloped as of date of value, leased to new commercial tenant. Improvements at Time of Sale 11,992-square-foot building constructed in 1908 utilized as a funeral home and apartments. SALE DATA Sale Date 10/16 Sale Price $800,000 Demolition Costs $95,000 Adjusted Price $895,000 Price Per Square Foot $46.61 Deed Record 2016-51103 Grantor Musgrove Charnelton Grantee Our West 11th Holdings, LLC Terms Cash to Seller Marketing Time Listed July 2015 for $850,000. C OMMENTS Buyer will not sell or lease the property to another funeral home or crematorium for a two-year period. Confirmation Tim Campbell, Broker Campbell Commercial Real Estate ATTACHMENT 3, PAGE 44 OF 66 Sales Comparison Approach Duncan & Brown - 45 - Qualitative Adjustment Grid SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 Market Conditions (Sale Date) 9/19 1/18 4/19 10/17 Listing 10/16 Comparison to Subject Sl. Inferior Similar Inferior Sl. Superior; Asking Price Inferior Location Downtown Springfield Downtown Springfield River Road; North Eugene Mid-Town Springfield Gateway/ Riverbend Springfield Downtown Eugene Comparison to Subject Similar Sl. Inferior Sl. Superior Sl. Superior Superior Square Feet 8,520 203,860 58,806 57,935 23,522 19,200 Comparison to Subject Inferior Inferior Inferior Inferior Inferior Zoning MUC MUC C-2/SR CC CC C-2/TD Comparison to Subject Similar Sl. Superior Sl. Inferior; limitations on residential uses Sl. Inferior; limitations on residential uses Sl. Superior Access/Exposure Good Good Average Good Average; shared access Good Comparison to Subject Similar Inferior Similar Inferior Similar Site Improvements Asphalt Paving; Surface Parking Lot; interim use Some paving Church & Single-Family residence; interim use/income Single-family residences; interim income Asphalt paving & Drive-Thru Coffee Shop; interim income Commercial building; interim income Comparison to Subject Sl. inferior Similar overall Similar overall Similar overall Similar; offsetting with higher demolition costs Sale Price/SF $6.13 $11.11 $20.26 $19.13 $46.61 Value Conclusion Low Indicator Low Indicator Good Indicator; offsetting Good Indicator; offsetting High Indicator Size Discussion—Most of the development sites with similar zoning which have sold recently are much larger than the subject site. The subject site benefits from good central location, good utility having exposure to a high traffic street and accessibility from a secondary street and alley, and also has interim use as a surface parking lot. Many of the sales have similar interim uses and good utility but are much larger sites, which puts downward pressure on the price per square foot for the comparable sales compared to the subject’s small site size. A site in Downtown Eugene recently sold for over $100 per square foot for a 16,988-square-foot site, compared to larger commercial sites in the immediate area which have reflected prices in the $60± per square foot range. This recent sale is not a good sale comparable for the subject given the superior location but does offer some evidence to the premium on price per square foot for smaller sites, which is considered in this analysis. Residual Discussion—Very few sales have occurred in the subject’s immediate area, except for Comparable 1 which was a significantly larger site located along the railroad tracks. An improved property with a shell building sold in 2017 for $495,000, with a higher land-to-building ratio. The site was improved with a 3,960-square-foot auto repair building constructed in 1912 on a 13,068- square-foot site zoned CC, Community Commercial, with good exposure but slightly inferior accessibility. Based on a review of similar structures, the auto repair facility and site improvements would be estimated to contribute approximately $50 per square foot to the site, or $200,000 (rounded). This results in $295,000 residual value for the land, or $23 per square foot for a slightly larger site. This is considered in support of the final value conclusion. ATTACHMENT 3, PAGE 45 OF 66 Sales Comparison Approach Duncan & Brown - 46 - Site Value Conclusion—Recognizing the differences in the location and physical features of the comparable properties relative to the subject, including the subject’s zoning, location and size, the available market data supports a value for the subject of $20.00 per square foot, or $170,000 (rounded). ATTACHMENT 3, PAGE 46 OF 66 Duncan & Brown - 47 - R ECONCILIATION & F INAL V ALUE C ONCLUSION Based on the preceding data and analysis, the market value of the as-is fee simple interest in the subject property, as of September 23, 2019, is estimated to be $170,000. Marketing Time and Exposure Time Marketing time is defined as, “An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal.”16 Exposure time is defined as, “The 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; a retrospective opinion based on an analysis of past events assuming a competitive and open market.”17 Exposure time is always presumed to occur prior to the effective date of the appraisal. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. In estimating marketing and exposure time for the subject property, consideration was given to sales that have occurred in the marketplace and properties that have been offered for sale. Based on market information, the exposure time and marketing time for the subject property are each concluded to be 9 to 12 months. 16. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015). 17. Ibid. ATTACHMENT 3, PAGE 47 OF 66 A DDENDA Surface Parking Lot 245 A Street Springfield, Oregon CERTIFICATION PLAT MAP ENGAGEMENT CONTRACT APPRAISERS’ QUALIFICATIONS ATTACHMENT 3, PAGE 48 OF 66 Duncan & Brown C ERTIFICATION We, Zoe R. York, MAI and Jasen D. Hansen MAI do hereby certify that: The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions and conclusions. We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. Zoe R. York, MAI inspected the subject property on September 23, 2019. Jasen D. Hansen, MAI inspected the property at a later date. The appraisers have performed no services, as appraisers or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. No one provided significant professional assistance to the person signing this report. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, Zoe R. York, MAI has completed the requirements of the continuing education program for Designated Members of the Appraisal Institute. As of the date of this report, Jasen D. Hansen MAI has completed the requirements of the continuing education program for Designated Members of the Appraisal Institute. We have had a level of training and experience considered necessary for the formation of a reliable opinion of value of the subject property. Zoe R. York, MAI Jasen D. Hansen, MAI Certification No. C001053 Certification No. C000719 Expiration 7/31/20 Expiration 4/30/21 ATTACHMENT 3, PAGE 49 OF 66 Duncan & Brown P LAT M AP Plat Map 17033532 SPRINGFIELD H:!WM&ZN.W.1/4 S.W.1/4 SEC.35 T.17S.R.3W.W.M. FOR ASSESSMENT AND TAXATION ONLY Lane County 1-=100' LCATJCG -7018-11-08 08 2 0 t 8400 krfc MAP4.94 AC ||7033524 SEE MAP 17033523v.. STREET "B" !"P !®j e Ei•;»to I , SS=!"I TTT CANCELLED 200-500 1300 1700 1800 2000 3700 3800 4400 5400 5600 5800 6000 6300 7100 7700 7803 7900 1601 X\\ m it I-:.I & 46 4L«•&****^-s. -.21 3 i.I AL'1 » •s . jlz»®. tea,53 V, 2500 ri •i U is*3?3 \X 8300 0 77 AC STREET •"A" 4 rT±As£] :?™3600 SiSiK: \ 2 !'i\\4FF :1 i i V\j ;i J I 4&I\ 4300 •^aV 4600 4 6 0 0 Mi*eJ VJ>Jamie tisAo;.A®.\ 1 dK\ "iJ .... .•MAIM'.','rr7>i'......-STREET£ sx "F |s&i sk jwfe si LJ I sfe Ufc- ^;>2-S0tFFH|---—--W-39----w[_- VI SEE MAP ' 3 & N ss »\ 5 •A-6500 1SEEMAP 17033441 20 6W 6800 ;l6600;tete :_g yjSi. 5±;v. Si-. ,fes 6601 | 4 »'i 1 -5U"i 1 sn ?i,-gV-Vd 6700 I 7601 """"»ws&IF> •H m \&K v%\ 1 &38 \ o SEE MAP ,17033444 1 -.T _M a Si \. \ 'Si \ Si u 1iI - SEE MAP 17033834 ss\! 1I SPRINGFIELD 17033532 Duncan &Brown ATTACHMENT 3, PAGE 50 OF 66 ElectronicSignatureCITYOFSPRINGFIELDINDEPENDENTCONTRACTORAGREEMENT(Type3:ForPersonalServicesContractsRequiringProfessionalLiabilityInsurance)Contract#2445Dated:October1,2019Parties:TheCityofSpringfieldAmunicipalcorporationintheStateofOregon225FifthStreetSpringfield,Oregon97477("CITY")andDuncanandBrown,LLC('independentContractor")AdditionalIndependentContractorInformation:A.TypeofEntity:B.Address:C.Telephone:D.FaxNo:E.SSNorFed.I.D.No:F.ProfessionalLicense(s)No:G.Oregon AgencyIssuingLicense:StateofORAppraiserCertificationandLicensureBoardH.ForeignContractor(ForeignmeansnotdomiciledinorregisteredtodobusinessinOregon)SeeExhibitB(11).SoleProprietorshipPartnersfx]LimitedLiabilityCompanyCorporation260West12thAvenue,Eugene,OR9/401541-687-193827-2220881ZoeYork,C001053,VerifiedOct.1,2019Yes[X|MoCITYAccountIslumfaerfs)ToBeCharged(IncludePercentages):Percentage jAccountNumber100-01100-7000-611003 j•100Inconsiderationofthemutualcovenantscontainedherein,thepartiesagreetothefollowingterms,provisionsandconditions:1.PaymentbyCITY.CITYshallpayIndependentContractoraccordingto thesumandscheduledescribedinAttachment1attachedheretoandincorporatedhereinbythisreferenceandinanamountnot toexceed•.2.Invoice.Invoicetobesentto:AccountsPayable-CityofSpringfield,2255thStreet,Springfield,OR97477oremailtoap@spririqfield-or.aov.Invoicewillbepaidonnet30daytermsuponCityacceptanceofgoodsdelivered,workorservicesperformed.Theinvoicemustreferencethiscontract#2445andapprovalcode#010.'3.Sen/icestobePerformedbyIndependentContractor.IndependentContractorshallperformtheservicesdescribedonAttachment1.v•«Page1of12C2445DuncanandBrown,LLCATTACHMENT 3, PAGE 51 OF 66 4.Term.ThisAgreementiseffectiveasofthedatefirstsetforthaboveandshallcontinueuntilDecember1,2019,unlessearlierterminatedinaccordancewiththeprovisionsofthisAgreementorbymutualconsentoftheparties.5.Sourcing.ExemptclassofserviceunderSMCCode2.708(3)(e).6.FirstPointofContact.IndependentContractor:ZoeYork,541-995-7028,zoe@duncanbrown.comCITY:CourtneyGriesel,C:541-954-9722,O:541-726-3700,cgriesel@springfield-or.gov7.IndependentContractorStatus.Byitsexecutionofthis Agreement,IndependentContractorcertifiesitsstatusasan"IndependentContractor"asthattermisusedunderthelawsoftheStateofOregon,andthatallperformanceofanylabororservicesrequiredtobeperformedbyIndependentContractorunderthetermsofthisAgreementshallbeperformedinaccordancewiththestandardsset forthinORS670.600,andasmorespecificallysetforthonExhibit"A"attachedheretoandincorporatedhereinbythisreference.18.ConformancewithOregonPublicContractsLaw(ORSChapter279).IndependentContractorshallcomplywithallapplicableprovisionsofOregonlawforpubliccontracts,including,butnotlimitedtoORS279B.110,ORS279B.220,ORS279B.225,ORS279B.230,andORS279B.235,andasmorefullysetforthonExhibits"A","B"and"C"attachedheretoandincorporatedhereinbythisreference.9.WorkPerformed.TheworktobeperformedbyIndependentContractorincludesservicesgenerallyperformedbyIndependentContractorinhis/her/itsusuallineofbusiness.I(10.TaxdutiesandLiabilities.IndependentContractorshallberesponsibleforallfederal,stateandlocaltaxes,ifany,applicabletoanypaymentsreceivedpursuanttothisAgreement,includingbutnotlimitedtoincometax,payrolltax,socialsecurityandself-employmenttax.CITYshallnotwithhold,pay,orinanyothermannerberesponsibleforpaymentofanytaxesonbehalfofIndependentContractorandasmorespecificallysetforthinExhibitC.11.ReimbursementofExpenses.IndependentContractorshallnot beentitledtoreimbursementbyCITYforanyexpensesincurredbyIndependentContractorunlessotherwiseagreedinwriting.i:si12.MaterialsandSupplies.IndependentContractorshallsupplyallmaterialsandsuppliesneededtoperformtheservicesrequiredunlessotherwiseagreedinwriting.13.NoAuthorityToBindCITY.IndependentContractorshallhavenoauthoritytoenterintocontractsonbehalfofCITY,itsofficers,agentsandemployees.ThisAgreementshallnotcreateapartnershiporjointventureofanysortbetweentheparties.14.FederalEmploymentStatus.IntheeventpaymentmadepursuanttothisAgreementistobechargedagainstfederalfunds,IndependentContractorherebycertifiesthatitisnotcurrentlyemployedbytheFederalGovernmentandtheamountchargeddoesnotexceedIndependentContractor'snormalchargeforthetypeofservicesprovided15.IndemnificationandHoldHarmless.TheIndependentContractorshallassumeallresponsibilitiesforthework,andbearalllossesanddamagesdirectlyorindirectlyresultingtotheIndependentContractor,theCity,ortoothersonaccountofthecharacterorperformanceofthework,unforeseendifficulties,accidents,oranyothercausewhatsoever.TheIndependentContractorshallassumedefenseof,indemnifyandsaveharmlesstheCity, itsofficials,agents,andemployeesfromallclaims,liability,loss,damageandinjuryofeverykind,natureanddescription,directlyorindirectlyresultingfromactivitiesintheperformanceoftheContract,theownership,maintenanceoruseofmotorvehiclesinconnectiontherewith,ortheacts,omissions,operations,orconductoftheIndependentPage2of12C2445DuncanandBrown.LLCATTACHMENT 3, PAGE 52 OF 66 ContractororanySubcontractorundertheContractoranywayarisingoutoftheContract,irrespectiveofwhetheranyact,omissionorconductoftheCityconnectedwiththeContractisaconditionorcontributorycauseoftheclaim,liabilityloss,damageorinjuryandirrespectiveofwhetheract,omission,orconductoftheIndependentContractororSubcontractorismerelyaconditionratherthanacauseofaclaim,liability,lossdamageorinjury.TheIndependentContractorshallnotbeliablefornorberequiredtodefendorindemnify,theCityrelativetoclaimsfordamageordamagesresultingsolelyfromactsoromissionsoftheCity,itsofficials,agentsoremployees.Theabsenceoforinadequacyoftheliabilityinsurancerequiredinsection16belowshallnotnegateIndependentContractor'sobligationsinthisparagraph.i.!16.Insurance.16.1.GeneralInsurance.TheIndependentContractorshallmaintaininforceforthedurationofthisagreementaCommercialGeneralLiabilityinsurancepolicywrittenonanoccurrencebasiswithlimitsnotlessthan$2,000,000peroccurrenceand$3,000,000intheaggregateforbodilyinjuryorpropertydamage.Thepolicywillcontaina"perproject"Aggregateendorsement.AutomobileLiability(owned,non-ownedandhired)insurancewithlimitsnotlessthan$1,000,000peroccurrenceshallbemaintained.TheCity,.itsemployees,officialsandagentswillbenamedasanAdditionalInsuredwhereoperationsarebeingconductedrelatedtothiscontract,ontheGeneralLiabilitypolicyasrespectstoworkorservicesperformedunderthisAgreementtotheextentthatthedeathorbodilyinjurytopersonsordamagetopropertyarisesoutofthefaultoftheIndependentContractororthefaultoftheIndependentContractor'sagents,representativesorsubcontractors.ThisinsurancewillbeprimaryoveranyinsurancetheCitymaycarryonitsown.IndependentContractorunderstandsthatCITYisapublicentitysubjecttotherequirementsoftheOregonGovernmentalTortClaimsAct,ORS30.260etseq.IntheeventthatCITY'SfinancialobligationsorliabilitiesaremodifiedbyanyamendmenttotheliabilitylimitsimposedbytheOregonGovernmentalTortClaimsAct,IndependentContractoragreesthatthelimitsregardingliabilityinsurancesetforthinthisSectionl6.1willbemodifiedtoconformtosuchlimits.IndependentContractorandCITYshallsignanamendmenttothisAgreementincorporatingsuchmodification.16.2.ProfessionalLiability.IndependentContractorshallmaintaininforceduringthedurationofthisAgreement(and,ifitisaclaimsmadepolicy,forayearfollowingcompletionoftheproject)aprofessionalliabilitypolicy,approvedbytheCity'sRiskManagerastoterms,conditionsandlimits.16.3.AsbestosAbatement.(Onlyapplicabletocontractswhereasbestosmaybepresent)TheCommercialGeneralLiabilitypolicyshallbewrittenonaformthatmeetsthefollowingcriteriaandmustbeASBESTOSSPECIFICasfollows:a.Afulloccurrenceform,orb.Alimitedoccurrenceformwithatleastathree-year(3)tail,orc.Aclaimmadeformwithathree-year(3)tail.16.4.Workers'Compensation.IndependentContractorshallprovideandmaintainworkers'compensationcoveragewithlimitsnotlessthan$500,000foritsemployees,officers,agents,orpartners,asrequiredbyapplicableworkers'compensationlawsasdefinedinORS656.027andORS701.035(5).IfIndependentContractorisexemptfromcoverage,awrittenstatementsignedbyIndependentContractorsostatingthereasonforexemptionshallbeprovidedtotheCity.16.5.EvidenceofInsuranceCoverage.EvidenceoftherequiredinsurancecoveragesissuedbyaninsurancecompanysatisfactorytotheCityshallbeprovidedtotheCitybywayofaCityapprovedcertificateofinsurancebeforeanyworkorservicescommence.16.6.NoticeofCancellationorMaterialChangeinCoverage.ThecertificateofinsuranceshallcontainarequirementthattheInsurancecompanynotifytheCity30dayspriortoanycancellationormaterialchangeincoverage.Iftheapprovedinsurancecompanywillnotprovidethis30daynotice,theIndependentContractorshallprovidewrittennoticetotheCitycontractmanagerwithin2calendardaysaftertheIndependentContractorbecomesawarethattheircoveragehasbeencanceledorhasbeenmateriallychanged.TheIndependentJ;iijY'*;'*.iiPage3of12C2445DuncanandBrown,LLCATTACHMENT 3, PAGE 53 OF 66 Contractorshalleitherfax541-726-3782said-noticeoremailitdirectlytoJayneMcMahanGmcmahan@springfield-or.gov),ProcurementandContractsManager.RegardlessofwhatcircumstancescausedIndependentContractorsinsurancecoveragetoceaseorbemodified,itistheIndependentContractor'sresponsibilitytonotifytheCity.FailuretomaintainproperinsuranceorprovidenoticeofcancellationormodificationshallbegroundsforimmediateJlndependentContractorinitials)16.7.EquipmentandMaterial.TheIndependentContractorshallberesponsibleforanyloss,damage,ordestructionofitsownproperty,equipment,andmaterialsusedinconjunctionwiththework.16.8.Subcontractors.TheIndependentContractorshallrequireallsubcontractorstoprovideandmaintaingeneralliability,autoliability,professionalliability(asapplicable),andworkers'compensationinsurancewithcoverage'sequivalenttothoserequiredofthegeneralcontractorinthiscontract.TheIndependentContractorshallrequirecertificatesofinsurancefromallsubcontractorsasevidenceofcoverage.16.9.ExceptionorWaivers.AnyexceptionorwaiveroftheserequirementsshallbesubjecttoreviewandapprovalfromtheCity'sRiskManager.16.10.RailroadProtectiveLiabilityCoverage.Ifworkbeingperformedunderthisagreementisnearrailroadtracks orarailroadrightofwayandtheRailroadrequiresspecialinsurance(forexample:RailroadProtectiveLiabilityCoverage)IndependentContractorwillberesponsibleformeetingtheRailroadinsurancerequirementsbeforeanyworkcommences.AnyinsurancerequiredtobepurchasedbytheRailroadisinadditiontotheinsurancerequiredbytheCity.terminationofthiscontract.I:::I17.Termination.TheperformanceofworkunderthisAgreementmaybeterminatedbyCITY,inwholeorinpart,wheneverforanyreasonCITYshalldeterminethatsuchterminationisinthebestinterestofCITY.AnysuchterminationshallbeeffectedbydeliverytotheIndependentContractorofaNoticeofTerminationspecifyingtheextenttowhichperformanceoftheworkundertheAgreementisterminatedandthedateonwhichsuchterminationiseffective.Upondeliverytothe IndependentContractorofaNoticeofTerminationunderthisparagraph,theIndependentContractorandCITYshall,byagreement,makeanappropriatewrittenmodificationtothisAgreementgoverningcompletionofportionsoftheIndependentContractor'sworkandpaymentthereforebyCITY.i1118.RightsInData.Alloriginalwrittenmaterial,includingprograms,carddecks,tapes,listings,andotherdocumentationoriginatedandpreparedforCITYpursuanttothisAgreement,shallbecomeexclusivelythepropertyofCITY.Theideas,concepts,know-how,ortechniquesdevelopedduringthecourseofthisAgreementbyIndependentContractorpersonnelcanbeusedbyeitherpartyinanywayitmaydeemappropriate.MaterialalreadyinIndependentContractor'spossession,independentlydevelopedbyIndependentContractoroutsidethescopeofthisAgreement,orrightfullyobtainedbyIndependentContractorfromthirdparties,shallbelongtoIndependentContractor.ThisagreementshallnotprecludeIndependentContractorfromdevelopingmaterialswhicharecompetitive,irrespectiveoftheirsimilaritytomaterialswhichmightbedeliveredtoCITYpursuanttothisAgreement.IndependentContractorshallnot,however,useanywrittenmaterialsdevelopedunderthisAgreementindevelopingmaterialsforothers,exceptasprovidedinthissection.I1!I19.Confidentiality.Duringthecourseofperformancehereunder,independentContractororitsagent,employees,orcontractors,mayreceiveconfidentialinformation.IndependentContractoragreestouseitsbesteffortstomaintaintheconfidentialityofsuchinformationandtoinformeachagentandemployeeperformingservicesoftheconfidentialityobligationthatpertainstosuchinformation.20.Assignment/Subcontract.IndependentContractorshallnotassign,sell,transfer,subcontractorsubletrights,ordelegateresponsibilitiesunderthisagreement,inwholeorinpart,withoutthepriorwrittenapprovalofCITY.NosuchwrittenapprovalshallrelieveIndependentContractorofanyobligationsofthisAgreement,andanytransfereeorsubcontractorshallbeconsideredtheagent ofIndependentContractor.IndependentContractorshallremainliableasbetweentheoriginalpartiestothisAgreementasifnosuchassignmenthadoccurred.1:'r.-.1Page4of12C2445DuncanandBrown,LLCATTACHMENT 3, PAGE 54 OF 66 21.SuccessorsInInterest.TheprovisionsofthisAgreementshallbebindinguponandshallinuretothebenefitofthepartiestothisAgreementandtheirrespectivesuccessorsandassigns.22.ComplianceWithAllGovernmentRegulations.IndependentContractorshallcomplywithallFederal,Stateandlocallaws,codes,regulationsandordinancesapplicabletotheworkperformedunderthis Agreement.FailuretocomplywithsuchrequirementsshallconstituteabreachofcontractandshallbegroundsforterminationofthisAgreement.DamagesorcostsresultingfromnoncomplianceshallbethesoleresponsibilityofIndependentContractor.23.AttorneyFees,intheeventalawsuitofanykindisinstitutedonbehalfofCITYtoenforceanyprovisionofthisAgreement,IndependentContractorshallpaysuchadditionalsumsastheCourtmayadjudgereasonableforattorneyfeesplusallcostsanddisbursementsattrialandonanyappeal.24.ForceMajeure.NeitherpartytothisAgreementshallbeheldresponsiblefordelayordefaultcausedbyfire,riot,actsofGodand/orwarwhichisbeyondthatparty'sreasonablecontrol.CITYmayterminatethisAgreementuponwrittennoticeafterdeterminingsuchdelayordefaultwillunreasonablypreventsuccessfulperformanceoftheAgreement.25.AssistanceRegardingPatentAndCopyrightinfringement.IntheeventofanyclaimorsuitagainstCITYonaccountofany allegedpatentorcopyrightinfringementarisingoutoftheperformanceofthisAgreementoroutoftheuseofanymaterialfurnishedorworkorservicesperformedhereunder,IndependentContractorshalldefendCITYagainstanysuchsuitorclaimandholdCITYharmlessfromanyandallexpenses,courtcosts,andattorney'sfeesinconnectionwithsuchclaimorsuit.iSiirIfif26.Severability.IfanyprovisionofthisAgreementisdeclaredbyacourttobeillegalorinconflictwithanylaw,thevalidityoftheremainingtermsandprovisionsshallnotbeaffected;andtherightsandobligationsofthepartiesshallbeconstruedandenforcedasiftheAgreementdidnotcontaintheparticularprovisionheldtobeinvalid.!i27.AccessToRecords.CITYanditsdulyauthorizedrepresentativesshallhaveaccesstobooks,documents,papersandrecordsofIndependentContractorwhicharedirectlypertinenttothisAgreementforthepurposeofmakingaudit,examination,excerptsandtranscripts.28.Waiver.FailureofCITYtoenforceanyprovisionofthisAgreementshallnotconstituteawaiverorrelinquishmentbyCITYoftherighttosuchperformanceinthefuturenoroftherighttoenforceanyotherprovisionofthisAgreement.29.Amendments.ThetermsofthisAgreementshallnotbewaived,altered,modified,supplementedoramendedinanymannerwhatsoever,withoutpriorwrittenapprovalofCITY, NomodificationofthisAgreementshallbindeitherpartyunlessreducedtowritingandsubscribedbybothparties,ororderedbyaCourt.30.Nondiscrimination.IndependentContractorshallcomplywithallapplicablerequirementsofFederalandStatecivilrightsandrehabilitationstatutes,rulesandregulations.31.AmericanswithDisabilitiesActCompliance.IndependentContractorwillcomplywithallapplicableprovisionsoftheAmericanswithDisabilitiesActof1990,42USCSection12101etseq.andSection504oftheRehabilitationActof1973.32.DualPayment.IndependentContractorshallnotbecompensatedforworkperformedunderthiscontractfromanyCITYagencyotherthantheagencywhichisapartytothiscontract.33.ChoiceofLaw,Forum,ConstructionofAgreement.ThisAgreementshallbegovernedandconstruedinaccordancewiththelawsoftheStateofOregon,apartfromchoiceoflawprovisions.ThepartiesagreethattheCircuitCourtfortheCountyofLane,StateofOregon,orthe*-y:V-.0Page5of12C2445DuncanandBrown,LLCvS:ATTACHMENT 3, PAGE 55 OF 66 FederalDistrictCourtoftheStateofOregon(Eugene)isthesoleandproperforumforresolvinganydisputesinvolvingthisAgreement,anybreachofthisAgreement,orrelatingtoitssubjectmatter.ThePartiesagreetosubmitthemselvestothejurisdictionofsuchcourtswithoutchallengetothejurisdictionofthesecourts.ThisAgreementshallnot beconstruedmorefavorablytoCITYduetothepreparationofthisAgreementbyCITY.TheheadingsandsubheadingsinthisAgreementareforconvenience,donotformapartofthisAgreement,andshallnotbeusedinconstruingthisAgreement.34.EntireAgreement.ThisAgreementsignedbybothpartiesistheparties'finalandentireAgreementandsupersedesallpriorandcontemporaneousoralorwrittencommunicationsbetweentheparties,theiragentsandrepresentatives.Therearenorepresentations,promises,terms,conditionsorobligationsotherthanthosecontainedherein.INWITNESSWHEREOFthepartieshaveexecutedthisAgreementtobeeffectivethedatefirstsetforthabove.CITYOFSPRINGFIELD:INDEPENDENTCONTRACTORiUName:1•-'•T(Title:CCt-vxiww1'lYvDate:By:LBy:Name:ZoeR,Yofk,MAITitle:Appraiser Date:10/2/2019OittZKHvuiVvcubyCityContractNoAttorneyReview/W-—n•&ifOf-•..vPage6of12C2445DuncanandBrown,LLC\.ATTACHMENT 3, PAGE 56 OF 66 EXHIBIT"A"INDEPENDENTCONTRACTORSTATUSIndependentcontractorstatesandrepresentsthatcontractorisanindependentcontractorasthattermisdefinedinOregonRevisedStatute670.600andmorespecificallyrepresents,statesandagreesthatinprovidingtheservicesandscopeofworkspecifiedinthiscontract:Independentcontractorprovidesservicesforremuneration;and1.IndependentcontractorisfreefromdirectionandcontroloverthemeansandmannerofprovidingtheservicesandscopeofworksubjectonlytotherightofCitytospecifythedesiredresults;and2.Independentcontractoriscustomarilyengagedinanindependentlyestablishedbusiness;andI3.;!!jIndependentcontractorislicensedwithinthestateofOregontoprovideanyservicesforwhichalicenseisrequiredunderORSChapter671or701andisresponsibleforobtainingotherlicensesorcertificatesnecessarytoprovidetheserviceorscopeofwork;and4.7i!Independentcontractorcomplieswithatleastthreeofthefollowingrequirements:5.i(a)AbusinesslocationismaintainedthatisseparatefromthebusinessorworklocationofCity;orisinaportionoftheindependentcontractor'sresidenceandthatportionisusedprimarilyforthebusiness.=;(b)Theindependentcontractorbearstheriskoflossrelatedtotheprovisionofservicesorscopeofworksuchasenteringintoafixedpricecontract,defectiveworkisrequiredtobecorrected,theservicesprovidedarewarrantedorindemnificationagreements,liabilityinsuranceandperformancebondsanderrorsandomissionsinsurance areprovided.i;(c)Contractedservicesfortwoormoredifferentpersonsorentitieswithinatwelvemonthperiodhavebeenobtained,orroutinelyengagedinbusinessadvertising,solicitation,orothermarketingeffortsreasonablycalculatedtoobtainnewcontractstoprovidesimilarservices.!l(d)Significantinvestmentinthebusinesshasbeenmadesuchaspurchasingtoolsorequipment,payingforpremisesorfacilitieswhereservicesareprovided,payingforlicenses,certificatesorspecializedtraining.I(e)Possessesauthoritytohireotherpersonstoassistinprovidingtheirservicesandhastheauthoritytofirethosepersons.IndependentcontractorwillimmediatelyinformCityintheeventthatitfailstoconductitsservicesinoneormoreparticularsasrepresentedin1through5above.6.Page7of12rfC2445DuncanandBrown,LLCATTACHMENT 3, PAGE 57 OF 66 EXHIBIT"B"CityofSpringfieldPublicContractsConformancewithOregonPublicContractorsLawsPursusinltoOregonlaw,everypubliccontractshallcontainthefollowingconditions:Makepaymentpromptly,asdue,toallpersonssupplyingtothecontractorlaborormaterialfortheperformanceoftheworkprovidedforinthecontract.ORS279B.220(1)I)PayallcontributionsoramountsduetheIndustrialAccidentFundfromthecontractororsubcontractorinclinedintheperformanceof2)thecontract.ORS279B.220(2)Notpermitanylienorclaimtobefiledorprosecutedagainstthestateoracounty,schooldistrict,municipality,municipalcorporationorsubdivisionthereof,onaccountofanylaborormaterialfurnished.ORS279B.220(3).3)PaytotheDepartmentofRevenueallsumswithheldfromemployeesunderORS316.167.ORS279B.220(4).4)Iftheagreementisforlawnandlandscapemaintenance,itshallcontainaconditionrequiringthecontractortosalvage,recycle,compostormulchyardwastematerialatanapprovedsite,iffeasibleandcost-effective.ORS279B.225.5)Promptly,asdue,makepaymenttoanyperson,copartnership,associationorcorporationfurnishingmedical,surgicalandhospitalcareservicesorotherneededcareandattention,incidenttosicknessorinjury,totheemployeesofthecontractor,ofallsumsthatthecontractoragreestopayfortheservicesandallmoneysandsumsthatthecontractorcollectedordeductedfromthewagesofemployeesunderanylaw,contractoragreementforthepurposeofprovidingorpayingfortheservices.Allemployersshallcomply6)!h!|withORS656.017.ORS279B.230.Apersonmaynotbeemployedformorethan10hoursinanyoneday,or40hoursinanyoneweek,exceptincasesofnecessity,emergencyorwhenthepublicpolicyabsolutelyrequiresit,andinsuchcases,exceptincasesofcontractsforpersonalservicesdesignatedunderORS279A.055,theemployeeshallbepaidatleasttimeandahalfpay:7)I•l!Forallovertimeinexcessofeighthoursadayor40hoursinanyoneweekwhentheworkweekisfiveconsecutivedays;orForallovertimeinexcessof10hoursinanyonedayor40hoursinanyoneweekwhentheworkweekisfourconsecutivedays,MondaythroughFriday;andForallworkperformedonSaturdayandonanylegalholidayspecifiedinORS279B.020.a)b)c)Anemployermustgivenoticeinwritingtoemployeeswhoworkonapubliccontract,eitheratthetimeofhireorbeforecommencementofworkonthecontract,orbypostinganoticeinalocationfrequentedbyemployees,ofthenumberofhoursperdayanddaysperweekthattheemployeesmayberequiredtowork.ORS279B.235{l)-(2).Iftheagreementisforpersonalservices,thecontractshallcontainaprovisionthattheemployeeshallbepaidatleasttimeandahalfforallovertimeworkedinexcessof40hoursinanyoneweek,exceptforindividualsunderpersonalservicescontractswhoareS)excludedunderORS653.010to653.261orunder29U.S.C.201-209fromreceivingovertime.ORS279B.235(3).ContractsforservicesmustcontainaprovisionthatrequiresthatpersonsemployedundercontractsshallreceiveatleasttimeandhalfpayforworkperformedonthelegalholidaysspecifiedinacollectivebargainingagreementorinORS279B.020(1)(b)(B)-(G)andforalltimeworkedinexcessof10hoursinanyonedayorinexcessof40hoursinanyoneweek,whicheverisgreater.Employershallgivenoticeinwritingtoemployeeswhoworkonacontractforservices,eitherat thetimeofhireorbeforecommencementofworkonthecontract,orbypostinganoticeinalocationfrequentedbyemployees,ofthenumberhoursperdayanddaysperweekthattheemployeesmayberequiredtowork.ORS279B235(5).Ifthisagreementisforapublicimprovement,thecontractshallcontainthefollowingconditions:Makepaymentpromptly,asdue,toallpersonssupplyingtothecontractorlaborormaterialfortheperformanceoftheworkprovidedforinthecontract.ORS279C.505(lXa).9)10)PayallcontributionsoramountsduetheIndustrialAccidentFundfromthecontractororsubcontractorincurredintheperformanceof11)thecontract.ORS279C.505(lXb).Notpermitanylienorclaimtobefiledorprosecutedagainstthestateoracounty,schooldistrict,municipality,municipalcorporationorsubdivisionthereof,onaccountofanylaborormaterialfurnished.ORS279C.505(IXc).PaytotheDepartmentofRevenueallsumswithheldfromemployeesunderORS316.167.ORS279C.505(l)(d).Thecontractorshalldemonstratethatanemployeedrugtestingprogramisinplace.ORS279C.505(2).12)13)14)Page8of12C2445DuncanandBrown,LLCATTACHMENT 3, PAGE 58 OF 66 15)Ifthecontractortails,neglectsorrefusestomakepromptpaymentofanyclaimforlabororservicesfurnishedtothecontractororsubcontractorbyanypersoninconnectionwiththepublicimprovementcontractastheclaimbecomesdue,theproperofficerorofficersrepresentingthestateoracounty,schooldistrict,municipality,municipalcorporationorsubdivisionthereof)asthecasemaybe,maypaysuchclaimtothepersonfurnishinglabororservicesandchargetheamountofthepaymentagainstthefundsdueortobecomeduethecontractbyreasonofthecontract.Ifthecontractororfirst-tiersubcontractorfails,neglectsorrefusestomakepaymenttoapersonfurnishinglaborormaterialstnconnectionwiththepublicimprovementcontractwithin30daysafterreceiptofpaymentfromthecontractingagencyoracontractor,thecontractororfirst-tiersubcontractorshallowethepersontheamountdueplusinterestchargescommencingattheendofthe10-dayperiodthatpaymentisdueunderORS279C.580(4)andissubjecttoa goodfaithdisputeasdefinedinORS279C.580.Ifthecontractororasubcontractorfails,neglectsorrefusestomakepaymenttoapersonfurnishinglaborormaterialsinconnectionwiththepublicimprovementcontract,(bepersonmayfileacomplaintwiththeConstructionContractorsBoard,unlesspaymentissubjecttoagoodfaithdisputeasdefinedinORS279C.580.ORS279C.515.16)Thepaymentofaclaimdoesnotrelievethecontractororthecontractor'ssuretyfromobligationwithrespecttoanyunpaidclaims.ORS279C.S15(4).Apersonmaynotbeemployedformorethan10hoursinanyoneday,or40hoursinanyoneweek,exceptincasesofnecessity,emergencyorwhenthepublicpolicyabsolutelyrequiresit,andinsuchcases,exceptincasesofcontractsforpersonalservicesdesignatedunderORS279C.100,theemployeeshallbepaidatleasttimeandahalfpay:17)a)Forallovertimeinexcessofeighthoursadayor40hoursinanyoneweekwhentheworkweekisfiveconsecutivedays;or,b)Forallovertimeinexcessof10hoursinanyonedayor40hoursinanyoneweekwhentheworkweekisfourconsecutivedays,MondaythroughFriday;and,c)ForallworkperformedonSaturdayand onanylegalholidayspecifiedinORS279B.020.ORS279C.520(l).Anemployershallgivenoticeinwritingtoemployeeswhoworkonapubliccontracteitheratthetimeofhireorbeforecommencementofworkonthecontract,orbypostinganoticeinalocationfrequentedbyemployees,ofthenumberofhoursperdayanddaysperweekthattheemployeesmayberequiredtowork.ORS279B.520(2).(S18)Iftheagreementisforpersonalservices,thecontractshallcontainaprovisionthattheemployeeshallbepaidatleasttimeandahalfforallovertimeworkedinexcessof40hoursinanyoneweek,exceptforindividualsunderpersonalservicescontractswhoareexcludedunderORS653.010to653.261orunder29U.S.C.201-209fromreceivingovertime.ORS279C.520(3).IIIIContractsforservicesmustcontainaprovisionthatrequiresthatpersonsemployedundercontractsshallreceiveatleasttimeandhalfpayforworkperformedonthelegalholidaysspecifiedinacollectivebargainingagreementorinORS279C.540(l)(b)(B)-(G)andforalltimeworkedinexcessof10hoursinanyonedayorinexcessof40hoursinanyoneweek,whicheverisgreater.Anemployershallgivenoticeinwritingtoemployeeswhoworkonacontractforservices,eitheratthetimeofhireorbeforecommencementofworkonthecontract,orbypostinganoticeinalocationfrequentedbyemployees,ofthenumberofhoursperdayanddaysperweekthattheemployeesmayberequiredtowork.ORS279C.520(5)19)ENVIRONMENTALMATTERS:IncompliancewithORS279C.525,theContractorismadeawarethatthefollowingfederal,state,andlocalagencieshaveenactedordinancesorregulationsrelatingtothepreventionofenvironmentalpollutionorthepreservationofnaturalresourceswhichmayaffectperformanceofSUBcontracts.Thisisnotintendedtobeacompletelistingofagencies.Otheragenciesmayhaveenactedordinancesorregulationsthatmayapply.IftheContractorisdelayedormustundertakeadditionalworkbyreasonofexistingordinances,rulesorregulationsofagenciesnotcitedintheContractorduetoenactmentofnewortheamendmentofexistingstatutes,ordinances,rulesorregulationsrelatingtothepreventionofnaturalresourcesoccurringafterthesubmissionofthesuccessfulquote,thecontractingagencymay,atitsdiscretion,terminatetheContract, completetheworkitself;usenon-agencyforcesalreadyundercontractwiththeCity,requirethattheunderlyingpropertyownerberesponsibleforcleanup,solicitquotesforanewcontractortoprovidethenecessaryservicesorissuetheContractorachangeordersettingforththeadditionalworkthatmustbeundertaken.IftheContractorencountersaconditionnotreferredtointheInvitationtoBiddocuments,notcausedbytheContractororanysubcontractoremployedontheprojectandnotdiscoverablepre-bidvisualsiteinspection,andtheconditionrequirescompliancewiththeordinances,rulesorregulationsreferredtounderthisregulation,thecontractorshallimmediatelynotifySUBofthecondition.20)i!FEDERALAGENCIESFishandWildlifeServicesOfficeofSurfaceMiningReclamationandEnforcementBureauofReclamationDepartmentofLaborOccupationalSafetyandHealthAdministrationMineSafetyandHealthAdministrationDepartmentofTransportationFederalHighwayAdministrationEnvironmentalProtectionAgencyDepartmentofAgricultureForestServiceSoilConservationServiceDepartmentoftheArmyCorpsofEngineersCoastGuardDepartmentofHealthandHumanServicesDepartmentoftheInteriorBureauofIndianAffairsBureauofLandManagementBureauofOutdoorRecreationDepartmentofCommerce:STATEAGENCIESDepartmentofHumanServicesLandConservationandDevelopmentCommissionDivisionofStateLandsDepartmentofAgricultureDepartmentofEnergyDepartmentofEnvironmentalQualityaC2445DuncanandBrown,LLCPage9of12ATTACHMENT 3, PAGE 59 OF 66 DepartmentofFishandWildlifeDepartmentofForestryDepartmentofGeologyandMineralsStateSoilandWaterConservationCommissionWaterResonrcesDepartmentOregonDepartmentofTransportationLOCALAGENCIESCommonCouncil,CityofSpringfieldEnvironmentalServices,CityofSpringfieldBoardofCommissioners,LaneCountyLaneRegionalAirProtectionAgencyWillamalanePark&RecreationDistrictRainbowWaterDistrictPlanningCommission,CityofSpringfieldDevelopmentServicesDepartment,CityofSpringfieldPlanningCommission,LaneCountySpringfieldUtilityBoardSpringfieldDowntown&GlenwoodUrbanRenewalDistrictsPromptly,asdue.makepaymenttoanyperson,copartnership,associationorcorporationfurnishingmedical,surgicalandhospitalcareservicesorotherneededcareandattention,incidenttosicknessorinjury,totheemployeesofthecontractor,ofallsumsthatthecontractoragreestopayfortheservicesandallmoneysandsumsthatthecontractorcollectedordeductedfromthewagesofemployeesunderanylaw,contractoragreementforthepurposeofprovidingorpayingfortheservices.Allemployersshallcomply21)withORS656.017.ORS279C.530.Acontractforpublicworksshallcontainaprovisionstatingtheexistingstateprevailingrateandwageand,ifapplicable,thefederalprevailingrateofwagerequired.EverycontractandsubcontractshallcontainaprovisionthatworkersshallbepaidnotlessthanthespecifiedminimumhourlyrateofwageinaccordancewithORS2790.838.ORS279C.830(1).22)-"JIfthisagreementisfordemolition,thecontractshallalsocontainthefollowingconditions:•I:Contractormustsalvageorrecycleconstructionanddemolitiondebris,iffeasibleandcost-effective.ORS279C.510(1)23)1?*•HPage10of12C2445DuncanandBrown,LLC->>.ATTACHMENT 3, PAGE 60 OF 66 EXHIBITCOREGONTAXLAWSCOMPLIANCEANDCERTIFICATIONA.Contractor'sCompliancewithTaxLaws.1 .Contractormust,throughoutthedurationofthisContractandanyextensions,complywithalltaxlawsofthisstateandallapplicabletaxlawsofanypoliticalsubdivisionofthisstate.ForthepurposesofthisSection,'taxlaws"includesalltheprovisionsdescribedinSubsectionB.1.(i)through(iv)ofthisContract.AnyviolationofSubsection1ofthisSectionAshallconstituteamaterialbreachofthisContract.Further,anyviolationofContractor'swarranty,inSubsectionB.1.ofthisContract,thatContractorhascompliedwiththetaxlawsofthisstateand theapplicabletaxlawsofanypoliticalsubdivisionofthisstatealsoshallconstituteamaterialbreachofthisContract.AnyviolationshallentitleCitytoterminatethisContract,topursueandrecoveranyandalldamagesthatarisefromthebreachandtheterminationofthisContract,andtopursueanyoralloftheremediesavailableunderthisContract,atlaw,orinequity,includingbutnotlimitedto:2.5TerminationofthisContract,inwholeorinpart;a.b.Exerciseoftherightofsetoff,andwithholdingofamountsotherwisedue andowingtoContractor,inanamountequaltoState'ssetoffright,withoutpenalty;andInitiationofanactionorproceedingfordamages,specificperformance,declaratoryorinjunctiverelief.CityshallbeentitledtorecoveranyandalldamagessufferedastheresultofContractor'sbreachofthisContract,includingbutnotlimitedtodirect,indirect,incidentalandconsequentialdamages,costsofcure,andcostsincurredinsecuring[replacementServices/replacementGoods/areplacementcontractor].c.Theseremediesarecumulativetotheextenttheremediesarenotinconsistent,andCitymaypursueanyremedyorremediessingly,collectively,successively,orinanyorderwhatsoever.!•'B.Contractor'sRepresentationsandWarranties.ContractorrepresentsandwarrantstoCitythat:-i1.Contractor(tothebestofContractor'sknowledge,afterdueinquiry),foraperiodofnofewerthansixcalendaryearsprecedingthe[dateofClosingof{bids/proposals}for/effectivedateof]thisContract,faithfullyhascompliedwith:':(i)Alltaxlawsofthisstate,includingbutnotlimitedtoORS305.620andORSchaptersji316,317,and318;(ii)AnytaxprovisionsimposedbyapoliticalsubdivisionofthisstatethatappliedtoContractor,toContractor'sproperty,operations,receipts,orincome,ortoContractor'sperformanceoforcompensationforanyworkperformedbyContractor;AnytaxprovisionsimposedbyapoliticalsubdivisionofthisstatethatappliedtoContractor,ortogoods,services,orproperty,whethertangibleorintangible,providedbyContractor;and(ii')(iv)Anyrules,regulations,charterprovisions,orordinancesthatimplementedorenforcedanyoftheforegoingtaxlawsorprovisions....|Any[Goods/ltems/Equipment/Components/Hardware/Software/IntellectualPropertyRights,etc.][deliveredto/grantedto]CityunderthisContract,andContractor'sServicesrenderedintheperformanceofContractor'sobligationsunderthisContract,shallbeprovidedtoCityfreeandclearofanyandallrestrictionsonorconditionsofuse,transfer,modification,orassignment,andshallbefreeandclearofanyandallliens,claims,mortgages,securityinterests,liabilities,charges,andencumbrancesofanykind.»,Page11of12C2445DuncanandBrown,LLCATTACHMENT 3, PAGE 61 OF 66 ATTACHMENT1StatementofWorkandPaymentScheduleSCOPEOFWORKIndependentContractorshallprovideappraisalreviewservicesforCityofSpringfield,CityManager'sOfficeassetoutbelow:Provideappraisalservicesforaportionofpropertylocatedat245AStreet(Map1703-35-32,TaxLot02900).WorkwillincludeanAppraisalReportpreparedinaccordancewiththeAppraisalInstituteandUniformStandardsofProfessionalAppraisalPractice.1.Thereportwillincludethevalueofthepropertyandimprovements.2.IndependentContractorwillprovideoneelectronicfinalappraisalreportinPDFformatandtwohardcopies(uponrequest).3.Ad-hocappraisalservices,asrequested.4.IndependentContractorwillprovideoneelectronicfinalappraisalreportinPDFformatandtwohardcopies(uponrequest).5.TIMELINE•ft.®4weeksfromauthorizationtoproceed.!!COMPENSATIONeAppraisalreviewfeenottoexceed..ForanyPostAppraisaloradditionalservicestheinvoicewillincludethedateanddescriptionofservicesand#ofhours.Therearenoreimbursableexpensesforthisengagement.Page12of12C2445DuncanandBrown,LLCATTACHMENT 3, PAGE 62 OF 66 Duncan & Brown Z OE R. Y ORK, MAI Qualifications PROFESSIONAL DESIGNATIONS MAI – Appraisal Institute 2014 FORMAL EDUCATION Bachelor of Science Degree 2008 University of Oregon, Department of Mathematics APPRAISAL EDUCATION Appraisal Institute 7 Hour USPAP 2018 15 Hour USPAP 2017 Online Cool Tools 2017 Valuation pf Conservation Easements 2015 Uniform Appraisal Standards for Federal Land Acquisitions 2015 Data Verification & Methods 2014 Business Practices & Ethics 2014 Advanced Concepts and Case Studies 2011 Advanced Income Capitalization 2011 Finance Statistics and Valuation Modeling 2010 Business Practices and Ethics 2010 Advanced Applications Course 550 2010 General Appraiser Income Approach Part 2 2009 General Appraiser Income Approach Part 1 2009 General Appraiser Report Writing and Case Studies 2009 General Appraiser Site Valuation & Cost Approach 2008 General Appraiser Sales Comparison Approach 2008 Additional Courses National USPAP Update 2014 National USPAP Update 2011 National USPAP Update 2009 Basic Appraisal Procedures 2007 Basic Appraisal Principles and Practice 2007 Uniform Standards of Professional Practice 2007 Seminars Navigating ODOT Appraisals & Reviews 2013 Eminent Domain 2014 LICENSE Certified General Appraiser – State of Oregon, 2011 Certificate No. C001053 PROFESSIONAL EXPERIENCE Certified General Appraiser 2011 – Present Duncan & Brown, LLC ATTACHMENT 3, PAGE 63 OF 66 Zoe R. York, MAI Qualifications page 2 Duncan & Brown Appraiser Assistant 2008 – 2011 Duncan & Brown, Inc. PROFESSIONAL AFFILIATIONS Appraisal Institute – Member 2014-Present Appraisal Institute – Candidate for designation, Appraisal Institute 2013 Appraisal Institute – general Associate Member of the Appraisal Institute 2011 – 2012 Appraisal Institute – Affiliate Member 2007 – 2011 BUSINESS AFFILIATIONS Zonta International, President Eugene, Oregon Sponsors, Inc., Secretary Eugene, Oregon Eugene Active 20-30 Club Eugene, Oregon Appraisal Institute, Newsletter Editor Oregon ATTACHMENT 3, PAGE 64 OF 66 Duncan & Brown J ASEN D. H ANSEN, MAI Qualifications PROFESSIONAL DESIGNATIONS MAI Member, Appraisal Institute 2009 FORMAL EDUCATION Bachelor of Science Degree 1998 University of Oregon College of Arts and Sciences Minor in Business Administration APPRAISAL EDUCATION Appraisal Institute General Demonstration Appraisal Report Writing 2007 Supervising Appraisal/Appraiser Assistant Training Course 2007 Business Practices & Ethics 2007 540 Report Writing & Valuation Analysis 2006 520 Advanced Sales Comparison & Cost Approaches 2004 530 Highest and Best Use & Market Analysis 2003 510 Advanced Income Capitalization 2001 550 Advanced Income Applications 2001 710 Condemnation Appraising: Basic Principles and Applications 2001 Additional Courses 2012-2013 National USPAP Update Course 2013 REO and Foreclosures 2013 Mortgage Fraud 2013 Environmental Contamination of Income Properties 2013 Environmental Issues for Appraisers 2013 2010-11 National USPAP Update 2011 Foundations in Sustainability: Greening the Real Estate and Appraisal Industries 2011 Risky Business: Ways to Minimize Your Liability 2011 Construction Details & Trends 2011 2008-09 National USPAP Update 2009 Developing & Growing Appraisal Practice 2009 National USPAP Update 2007 Nationally Approved Uniform Standards of Professional Practice 2007 National USPAP Update 2004 Nationally Approved Uniform Standards of Professional Practice 2001 Residential Case Studies 1999 Real Estate Law 1998 Basic Appraisal Principles and Practice 1998 Uniform Standards of Professional Practice 1998 Income Property Principles and Methodology 1998 ATTACHMENT 3, PAGE 65 OF 66 Jasen D. Hansen, MAI Qualifications page 2 Duncan & Brown LICENSE Certified General Appraiser – State of Oregon, 2001 Certificate No. C000719 Approved Appraiser-Federal Housing Association (FHA) PROFESSIONAL EXPERIENCE Partner/ Commercial & Residential Appraiser 2006 – Present Duncan & Brown, Real Estate Analysts Commercial & Residential Appraiser 2001 – 2005 Duncan & Brown, Real Estate Analysts Appraiser Assistant 1998 – 2001 Duncan & Brown, Real Estate Analysts AFFILIATIONS Appraisal Institute - Associate Member/Member 2005 - Present NEDCO (Neighborhood Economic Development Corporation) Board Member 2006 - Present Eugene Area Chamber of Commerce Springfield Area Chamber of Commerce COUNTIES COVERED Lane, Douglas, Jackson, Linn, Benton and Coos ATTACHMENT 3, PAGE 66 OF 66