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Home My WebLink AboutItem 07 Gateway Area Surplus Real Property AGENDA ITEM SUMMARY Meeting Date: 6/21/2021 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 GATEWAY AREA SURPLUS REAL PROPERTY ACTION REQUESTED: Conduct a Public Hearing and Adopt/Not Adopt the following Resolution: A RESOLUTION AUTHORIZING THE SALE OF SURPLUS REAL PROPERTY LOCATED NEAR THE INTERSECTION OF RANDY PAPE BELTLINE AND GATEWAY BLVD ISSUE STATEMENT: The Council is requested to declare an approximately 0.5 acre unaddressed property adjacent to 3494 Gateway Blvd, Springfield, Oregon near the southwest corner of Randy Pape Beltline and Gateway Blvd (Map 17-03-22-20, Tax Lot 1300 and 1201 before property line adjustment), to be surplus property. The property is zoned Community Commercial and currently unimproved with some paving. ATTACHMENTS: 1. Resolution Exhibit A – Property Description 2. Purchase and Sale Agreement with BOEV, LLC 3. Appraisal Report (February 2020) DISCUSSION/ FINANCIAL IMPACT: On April 12, 2021, the City Council approved entering into a conditional Purchase and Sale Agreement for approximately 0.5 acre of unaddressed property adjacent to 3494 Gateway Blvd near the southwest corner of Randy Pape Beltline and Gateway Blvd. The surplus property is a portion of an overall 0.77 acre site that the City acquired from ODOT in February 2021, including Tax Lots 1300 and 1201, where the Springfield Flame Sculpture is located. The City paid ODOT $345,000 ($10.31 per square foot) for the property, based on the February 2020 appraised real market value (Attachment 1). The surplus property is approximately 0.5 acres of the property obtained from ODOT that is not necessary for the City to retain for its purpose of maintaining the Springfield Flame Sculpture. The property lacks legal vehicular access from Gateway Blvd and would be reliant on future access from the adjacent property owner, BOEV LLC. For that reason, the City proposes to sell the surplus property to BOEV LLC under the terms of the Purchase and Sale Agreement (Attachment 2), for a price of $224,552 ($10.31 per square foot). Note that there was a minor error in the Purchase and Sale Agreement; the reference to Tax Lot 1200 should be a reference to Tax Lot 1201. The City has obtained approval of a tentative property line adjustment to transfer approximately 0.03 acres from Tax Lot 1201 to Tax Lot 1300 (Case No. 811-21-000094-TYP1), to facilitate sale of the surplus property. Before closing the sale of the property to BOEV LLC, the City Council must hold a public hearing and declare the subject property to be not needed for public use. PAGE 1 of 2 CITY OF SPRINGFIELD, OREGON RESOLUTION NO. ___________ A RESOLUTION AUTHORIZING THE SALE OF SURPLUS REAL PROPERTY LOCATED NEAR THE INTERSECTION OF RANDY PAPE BELTLINE AND GATEWAY BLVD 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, in February 2021, the City acquired property at Assessor’s Map 17-03-22-20, Tax Lots 1201 and 1300, from the Oregon Department of Transportation (ODOT) to facilitate City ownership of the Gateway Flame sculpture on Tax Lot 1201 and to provide for its future maintenance, and not all of the property is needed for that public purpose; WHEREAS, Tax Lots 1201 and 1300 lack legal street access and must take ingress and egress from the adjacent property owned by BOEV, LLC; WHEREAS, the purpose of the sale to BOEV, LLC is to allow redevelopment of the surplus property in conjunction with the adjacent property also owned by BOEV, LLC; WHEREAS, the City Council has determined that Tax Lot 1300 and a portion of Tax Lot 1201, shown 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 adjacent property owner, BOEV, LLC; WHEREAS, BOEV, LLC has proposed to purchase the property for $224,552 ($10.31 per square foot), which is the price per square foot that the City paid to ODOT to acquire the property; and WHEREAS, the City Council held a public hearing on June 21, 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 shown in Exhibit A, as surplus and authorizes its sale to BOEV, LLC for a price of $224,552. 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 2 PAGE 2 of 2 EXHIBIT A – PROPERTY DECLARED SURPLUS Property shown within the red dotted line is declared surplus. Attachment 1, Page 2 of 2 Attachment 2, Page 1 of 13 Attachment 2, Page 2 of 13 Attachment 2, Page 3 of 13 Attachment 2, Page 4 of 13 Attachment 2, Page 5 of 13 Attachment 2, Page 6 of 13 Attachment 2, Page 7 of 13 Attachment 2, Page 8 of 13 Attachment 2, Page 9 of 13 Attachment 2, Page 10 of 13 Attachment 2, Page 11 of 13 Attachment 2, Page 12 of 13 Attachment 2, Page 13 of 13 Submitted To: Courtney Griesel Economic Development Director City of Springfield 225 Fifth Street Springfield, Oregon 97477 Submitted By: Clint C. Becraft, MAI Duncan & Brown, LLC 260 West 12th Avenue Eugene, Oregon 97401 Duncan & Brown File No. 19‐286 Date of Report: February 7, 2020 Date of Value: January 28, 2020 A PPRAISAL R EPORT ODOT File #PM220A‐006 ODOT Land located at the southwest corner of Randy Pape Beltline and Gateway Street Springfield, Lane County, Oregon Map 17-03-22-20, Tax Lots 1200 and 1300 Attachment 3, Page 1 of 79 February 7, 2020 Courtney Griesel Economic Development Director City of Springfield 225 Fifth Street Springfield, Oregon 97477 RE: ODOT File #PM220A‐006 ODOT Land located at the southwest corner of Randy Pape Beltline and Gateway Street Springfield, Lane County, Oregon Map 17-03-22-20, Tax Lots 1200 and 1300 Dear Ms. Griesel: As per our agreement, I have completed an appraisal of the above-captioned property. The subject of this report consists of a 33,477-square-foot (0.77-acre) site zoned CC, Community Commercial. A site survey provided by the Oregon Department of Transportation (ODOT) indicated the site size is 33,477 square feet. The subject is located at the southwest corner of Randy Pape Beltline and Gateway Street in Springfield, Lane County, Oregon and is further identified by the Lane County Department of Assessment and Taxation as Tax Lots 1200 and 1300 on Map 17-03-22-20. There is no legal vehicular access to the subject property. The subject has frontage on the west side of Gateway Street and the south side of Randy Pape Beltline. There are no driveway approaches to the subject from the street frontage at the property lines. The ODOT appraisal specifications also indicate access is completely restricted to Beltline Highway and Gateway Street. This would be included as a deed restriction upon any conveyance of ownership of the property. The purpose of this inspection and subsequent analysis was to estimate the fee simple market value of the subject property as of the latest date of inspection. The highest and best use of the subject property is for assemblage with the adjacent property to the west (Tax Lot 1600) for interim use and future redevelopment. Given the concluded highest and best use, the only potential buyer of the property is the owner of the adjacent property to the west. As such, the valuation of the subject surplus property was based upon an analysis of the “Across the Fence” value of the adjacent property. The across the fence value was adjusted by what is concluded to be the most appropriate market-derived discount to reflect the contributory value of the surplus property for assemblage with the adjacent property. The valuation of the property is also subject to the following hypothetical conditions: The north portion of the site is improved with a piece of artwork known as the Springfield Flame, which is a 62-foot-tall metal flame sculpture on a concrete slab. A plaza and seatwall area have been proposed to be installed around the sculpture for future public use. The existing sculpture is not Attachment 3, Page 2 of 79 Duncan & Brown Ms. Courtney Griesel, City of Springfield February 7, 2020 included in the valuation of the property, as per the appraisal specifications provided by ODOT. Therefore, the value conclusion is based on a hypothetical condition that the sculpture does not exist on the site and the site is bare land with no improvements as of the effective date of value, January 28, 2020. The application of this hypothetical condition may affect the assignment results. The subject property is known to have contamination. The site contamination is not to be considered in the valuation of the property, as per the appraisal specifications provided by ODOT. Therefore, the value conclusion is based on a hypothetical condition that the subject is clean, as per the Oregon Department of Environmental Quality residential exposure criteria. The application of this hypothetical condition may affect the assignment results. After an inspection of the subject property, subsequent research and analysis of pertinent market data, and consideration of the hypothetical conditions described herein, it is my opinion the fee simple market value of the subject property for assemblage with Tax Lot 1600, as of January 28, 2020, was: FOUR HUNDRED SEVENTY THOUSAND DOLLARS $470,000 This appraisal conforms to the current edition of the Uniform Standards of Professional Appraisal Practice (USPAP), as adopted by the Appraisal Standards Board of the Appraisal Foundation. In addition, this report complies with the current Oregon Department of Transportation appraisal policy and procedures, as outlined in ODOT’s Right of Way Manual; ODOT’s Guide to Appraising Real Property, and the Appraisal Specification Worksheet(s) provided from ODOT. I 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. I certify I have no present or contemplated interest in the property and the fee for making this appraisal is not predicated upon reporting any specified value or value range. Please contact me at your convenience if any additional data or information is required. Respectfully submitted, DUNCAN & BROWN, LLC Clint C. Becraft, MAI clint@duncanbrown.com CCB, Certification No. C000856, Exp. 04/30/20 CCB/cp Attachment 3, Page 3 of 79 Duncan & Brown T ABLE OF C ONTENTS LETTER OF TRANSMITTAL AERIAL PHOTOGRAPH EXECUTIVE SUMMARY INTRODUCTION Assumptions & Limiting Conditions ................................................................................. 8 Pertinent Definitions ............................................................................................................ 10 Preliminary Information ..................................................................................................... 11 Regional Map ........................................................................................................................... 13 Market Area Description..................................................................................................... 14 Neighborhood Map ............................................................................................................... 21 Neighborhood Description ................................................................................................ 22 PROPERTY DATA Legal Description ................................................................................................................... 26 Owner of Record .................................................................................................................... 26 Pertinent Conditions of Title ............................................................................................. 27 Tax & Assessment Data ....................................................................................................... 27 Zoning ......................................................................................................................................... 27 Zoning Map ............................................................................................................................... 28 Subject Photographs ............................................................................................................. 29 Property Description ............................................................................................................ 33 Site Survey ................................................................................................................................ 37 ANALYSES AND CONCLUSIONS Highest and Best Use ............................................................................................................ 39 Appraisal Process .................................................................................................................. 42 Sales Comparison Approach ............................................................................................. 43 Value Conclusion .................................................................................................................... 50 ADDENDA Certificate of Appraiser Certification Plat Map Preliminary Title Report Legal Lot Determination Comparable Sale Details Appraisal Specifications Appraiser’s Qualifications Attachment 3, Page 4 of 79 Duncan & Brown - 5 - A ERIAL P HOTOGRAPHS Lane County Aerial Photographs Attachment 3, Page 5 of 79 Duncan & Brown - 6 - E XECUTIVE S UMMARY Name/Location: ODOT Land located at the southwest corner of Randy Pape Beltline and Gateway Street Springfield, Lane County, Oregon Map 17-03-22-20, Tax Lots 1200 and 1300 ODOT File No.: PM220A-006 (Sunset Investments) Section: Beltline at I-5 Interchange Highway: I-5 Owner of Record: Oregon Department of Transportation 4040 Fairview Industrial Drive SE MS#2 Salem, Oregon 97302 Assessor’s Identification: Tax Lots 1200 and 1300 on Map 17-03-22-20 Tax and Assessment Data (2019‐20)— IDENTIFICATION REAL MARKET VALUE ASSESSED VALUE TAXES* Tax Lot Account Land Improvements Total Total 1200 0188191 $635,551 $0 $635,551 $238,702 $0.00 1300 0188217 $729,555 $0 $729,555 $219,237 $0.00 Total: $1,365,106 $0 $1,365,106 $457,939 $0.00 *The subject is exempt from taxation as it is publicly owned. Parcel Size: 33,477 square feet, or 0.77 of an acre, per the site survey provided to the appraiser, dated December 28, 2018. Tax Lot 1200 is indicated to be 13,098 square feet and Tax Lot 1300 is indicated to be 20,379 square feet. The Lane County Assessor records and information in the preliminary title report legal description indicate the site size to be 0.97-of-an-acre. The larger site size does not take into consideration that a portion of site is located within retained public right-of-way. A deed relinquishing the retained right of way area to the city was recorded on January 21, 2020 (Deed No. 2020-003155). The 0.77-of- an-acre site size in the survey provided will be utilized in the analysis of the subject property. Flood Hazard Area: According to FEMA Map 41039C1133F, effective June 2, 1999, the subject is located in Zone X, areas determined to be outside the 500-year floodplain. Access: There is no legal vehicular access to the subject property. The subject has frontage on the west side of Gateway Street and the south side of Randy Pape Beltline. There Attachment 3, Page 6 of 79 Executive Summary Duncan & Brown - 7 - are no driveway approaches to the subject from the street frontage at the property lines. The ODOT appraisal specifications also indicate access is completely restricted to Beltline Highway and Gateway Street. This would be included as a deed restriction upon any conveyance of ownership of the property. The nearest existing driveway approach is located approximately 100 to 110 feet south of the south property line of the subject on the adjacent property (Tax Lot 1600). This driveway provides a physical access to the subject property across the adjacent property; however, it is not a legal access to the subject property as there is no known access easement agreement to provide legal access to the subject site across the adjacent property. Zoning: CC, Community Commercial Utilities: Public electricity, water, sewer, natural gas and telephone service are available to the property. Present Use/Site Improvements: The north portion of the site is improved with a piece of artwork known as the Springfield Flame, which is a 62- foot-tall metal flame sculpture on a concrete slab. There are gravel ground coverings on the north portion of the site surrounding the sculpture. The south portion of the site is unimproved land with remnants from the former use including some asphalt paving and gravel ground coverings. There is approximately 215 feet of temporary concrete construction barriers on the site along the edge of the asphalt paving on the southern portion of the site. These barriers are considered personal property and are not included in the valuation. Highest & Best Use: Assemblage with the adjacent improved property to the north (Tax Lot 1600) for interim use and future redevelopment. Market Value Conclusion— Assemblage Value (with TL 1600): $460,000 (subject to hypothetical conditions on page 8) Date of Value: January 28, 2020 Date of Report: February 7, 2020 Appraiser: Clint C. Becraft, MAI Attachment 3, Page 7 of 79 Duncan & Brown - 8 - A SSUMPTIONS & L IMITING C ONDITIONS Hypothetical Conditions 1. The north portion of the site is improved with a piece of artwork known as the Springfield Flame, which is a 62-foot-tall metal flame sculpture on a concrete slab. A plaza and seatwall area have been proposed to be installed around the sculpture for future public use. The existing sculpture is not included in the valuation of the property, as per the appraisal specifications provided by ODOT. Therefore, the value conclusion is based on a hypothetical condition that the sculpture does not exist on the site and the site is bare land with no improvements as of the effective date of value, January 28, 2020. The application of this hypothetical condition may affect the assignment results. 2. The subject property is known to have contamination. The site contamination is not to be considered in the valuation of the property, as per the appraisal specifications provided by ODOT. Therefore, the value conclusion is based on a hypothetical condition that the subject is clean, as per the Oregon Department of Environmental Quality residential exposure criteria. The application of this hypothetical condition may affect the assignment results. General Assumptions 1. 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. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated in this report. 3. Responsible ownership and competent property management are assumed unless otherwise stated in this report. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. Any plot plans or illustrative materials in this report are included only to assist the reader in visualizing the property. 6. 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. 7. 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. 8. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser 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 presence of hazardous materials may affect the value of the property. Unless a Phase I Environmental Assessment has been provided and Attachment 3, Page 8 of 79 Assumptions & Limiting Conditions Duncan & Brown - 9 - referenced within the report, the appraiser’s 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. 9. 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. 10. It is assumed all required licenses, certificates of occupancy, consents or other legislative or administrative authority from any local, state or national government, private entity or organization have been or can be obtained or renewed for any use on which the value estimated contained in this report is based. 11. It is assumed the utilization of the land is within the boundaries or property lines of the property described and there is no encroachment or trespass unless otherwise stated in this report. 12. 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 reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. 13. It is assumed that no conditions of title exist which would restrict and/or inhibit development of the property in its highest and best use. 14. It is assumed that, inasmuch as a detailed soils survey was not provided, the soil conditions found within the subject property would not excessively restrict and/or inhibit its development when compared to competing sites. General Limiting Conditions 1. 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 appraiser, and in any event only with proper written qualification and only in its entirety. 2. The appraiser is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question by reason of this appraisal, unless arrangements have been previously made. 3. Neither all nor any part of the contents of this report, including any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is 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 appraiser. Attachment 3, Page 9 of 79 Duncan & Brown - 10 - P ERTINENT D EFINITIONS Fair Market Value The amount of money, in cash, that property would bring if offered for sale by one who desired but was not obliged to sell, and was bought by one willing but not obliged to buy. It is the actual value of the property on the date of the taking, with all its adaptations to general and special uses, that is to be considered.1 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.2 Highest and 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. 1. Oregon Department of Transportation. ODOT Right of Way Manual, Chapter 5, Rev. August 31, 2018. 2. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015). 3. Ibid. Attachment 3, Page 10 of 79 Duncan & Brown - 11 - P RELIMINARY I NFORMATION Subject Property The subject of this report consists of a 33,477-square-foot (0.77-acre) site zoned CC, Community Commercial. A site survey provided by the Oregon Department of Transportation (ODOT) indicated the site size is 33,477 square feet. The subject is located at the southwest corner of Randy Pape Beltline and Gateway Street in Springfield, Lane County, Oregon and is further identified by the Lane County Department of Assessment and Taxation as Tax Lots 1200 and 1300 on Map 17-03-22- 20. Purpose and Intended Use The purpose of this appraisal is to estimate the fee simple fair market value of the subject property as of the date of property inspection. The intended use of this appraisal report is to assist the client with establishing market value for the purpose of a potential acquisition of the property. Client and Intended Users The client is the City of Springfield. The intended users are the client, the City of Springfield and the Oregon Department of Transportation (ODOT). 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 an estimate of market value of the subject property. This appraisal assignment has included a complete investigation of all pertinent data in relation to the subject property. This investigation included, but was not limited to:  Personal inspection of the subject property;  Review of Lane County property records;  Interview with Courtney Griesel, Economic Director for the City of Springfield;  Interview with Steven Eck, property agent with ODOT;  Review of the ODOT Appraisal Specifications provided;  Research of market conditions;  Research and analysis of sale transactions of comparable properties; sources utilized include sales and listing data from real estate brokers, information from knowledgeable market participants, and real estate database services. Comparable sales analyzed in the appraisal report were confirmed either by a party to the transaction, or an agent or representative of a party to the transaction, or information from other real estate professionals and from public records;  Application of the applicable approaches to value;  Preparation of the written report conveying the appraiser’s analyses and conclusions. In this assignment, the Sales Comparison Approach is the only applicable valuation method for the land area. The Cost Approach and Income Capitalization Approach are not applicable in estimating a unit value of the parcel. Attachment 3, Page 11 of 79 Preliminary Information Duncan & Brown - 12 - Compliance & Competency Rule This appraisal has been prepared in compliance with the most recent revisions of the Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Standards Board of the Appraisal Foundation. Clint C. Becraft, MAI has the knowledge and experience to complete this assignment competently, in compliance with the stated regulations. Inspection Data Clint C. Becraft, MAI inspected the subject property on January 28, 2020. Attachment 3, Page 12 of 79 Duncan & Brown - 13 - R EGIONAL M AP Attachment 3, Page 13 of 79 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 2019 1980- 1990 1990- 2000 2000- 2010 2010- 2019 Eugene 105,664 112,669 137,893 156,185 171,210 6.63% 22.4% 12.3% 9.6% Springfield 41,621 44,683 52,864 59,403 61,355 7.35% 18.3% 12.4% 3.2% Lane County 275,226 282,912 322,977 351,715 378,880 2.79% 14.2% 8.90% 7.7% Oregon 2,633,149 2,842,337 3,421,399 3,831,074 4,236,400 7.94% 20.3% 12.0% 10.5% Attachment 3, Page 14 of 79 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 the last few years 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.4 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 4. Bechtoldt, Felicia “Oregon’s 2018 Natural Population Increase Was the Lowest on Record”, Worksource Oregon, 26 April 2019. Web. Attachment 3, Page 15 of 79 Market Area Description Duncan & Brown - 16 - construction has increased more recently, but not to pre-recession levels due mostly to high construction costs and a constrained land supply. 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 5,000 new apartment units have been constructed in Eugene and Springfield since 2010 with approximately 50% of those units being University of Oregon campus-oriented development. 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 most recent building permit data shows a drop in single- family construction and an increase in multi-unit buildings.5 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.6 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. 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 5. Rooney, Brian. “Lane County Building Permits Rebound in 2018”. Worksource Oregon, 12 March 2019. Web. 6. Ibid. Attachment 3, Page 16 of 79 Market Area Description Duncan & Brown - 17 - 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.7 It has expanded its brewing and storage capacity in downtown Eugene and extended its distribution network to 14 states and Canada.8 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.9 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.10 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 7. “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>. 8. Russo, Ed. “Food and beverage providers seek niche in 2016.” Blue Chip Magazine, February 2016. 9. Rooney, Brian. “Lane County is Finally Back to Prerecession Employment Levels”. Worksource Oregon, 6 June 2017. Web. 10 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 79 Market Area Description Duncan & Brown - 18 - 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 major cities in six western states.11 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.12 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 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. 11. Eugene Airport Media Guide, Eugene Airport website, http://flyeug.com. 12. Oregon International Port of Coos Bay, “Navigation & Channel Data,” http://www.portofcoosbay.com. Attachment 3, Page 18 of 79 Market Area Description Duncan & Brown - 19 - 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 2015.13 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.14 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 rely 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 13. Carillo, Angelica. “New psychiatric hospital in Junction City to welcome first patients this week.” KMTR. 8 March 2015. Web. 14. McDonald, Sherri Buri. “Veterans, medical staff celebrate Eugene VA clinic’s grand opening.” The Register‐Guard. 26 Jan. 2016. Attachment 3, Page 19 of 79 Market Area Description Duncan & Brown - 20 - 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 79 Duncan & Brown - 21 - NEIGHBORHOOD MAP SUBJECT PROPERTY Attachment 3, Page 21 of 79 Duncan & Brown - 22 - N EIGHBORHOOD D ESCRIPTION Gateway / RiverBend subarea The subject property is located in the Gateway/RiverBend subarea of northwest Springfield. The neighborhood boundaries are generally Interstate 5 on the west, the McKenzie River on the north and east, and Harlow Road on the south. The topography of the neighborhood is flat with a series of benches stepping down to the level of the McKenzie River to the north and east. Historically, the neighborhood was agricultural area due to the high-quality soils and water availability. The area has experienced extensive urban development beginning in the early 1970s, and the neighborhood is currently about 80% built-up, composed of a mix of residential, commercial, industrial, and agricultural land uses. The various land uses in the neighborhood are described below. Residential Development Residential development includes both single- and multiple-family land uses. Single-family development consists primarily of homes built prior to 1975, located on streets to the east and west of Game Farm Road. This housing stock ranges from older farm dwellings to mid-life single-level ranch-style tract homes. The area is known for large lots, many ranging up to several acres. In the northern portion of the neighborhood, on Deadmond Ferry, Game Farm East and Baldy View Roads, homes on small to large acreage parcels are common. The quality and condition of the homes range from poor to good. The neighborhood was extensively developed with large apartment complexes in the 1970s, with four projects developed with a total of 690 units. These projects are all wood-frame, wood-sided, two-story, garden court style complexes of average quality, located on Gateway Street and Harlow Road. During that same period, more single-family housing was developed in the area immediately south of the neighborhood, south of Harlow Road. A condominium complex was developed in the late 1970s on Harlow Road. The complex is apartment quality and many of the units are used as rentals. There was no new multi-family development in the neighborhood in the 1980s. More recent development includes a 100-unit, good-quality, subsidized apartment complex and a 150-unit average-quality apartment complex, both located on Oakdale Street and built in the 1990s. A residential care facility was developed on Harlow Road in 1993. The neighborhood has a large amount of vacant multi-family land and homes on small acreage parcels and large lots that are zoned for multi-family use. Limited multi-family development has occurred in the last two decades in this neighborhood. Commercial Development Commercial development in the subject neighborhood is primarily freeway-oriented and is distributed between the Beltline/Gateway intersections and the Gateway/Harlow intersections. There are auto service stations with convenience stores, stand-alone conveniences stores, motels/hotels, quick-serve and eat-in restaurants on this commercial strip. The neighborhood has a significant amount of office development located on Gateway Loop, typically one- and two-story, wood-frame, average-quality structures built in the late 1970s. Other development in the neighborhood includes the Gem Top canopy sales facility, furniture stores, a television station, a U.S. Postal Service facility, banks and credit union branch offices and medical office buildings. Attachment 3, Page 22 of 79 Neighborhood Description Duncan & Brown - 23 - Newer commercial development has occurred along Beltline Road, east and west of Gateway Street. The northern area is home to the Royal Caribbean office/call center, the PeaceHealth RiverBend Annex (formerly the Sony manufacturing space), flex-type commercial space, neighborhood strip retail, motels, and quick-serve and eat-in national chain restaurants. Along the southern boundary of the neighborhood, motels, office buildings and a mini-storage facility have been constructed. Other commercial development in the neighborhood includes the 825,000-square-foot Gateway Mall, originally constructed in 1982 with expansions in 1998-99 and 2006. Sears, Target, Kohl’s, and Cabela’s outdoor store anchor the mall, which in 2016 completed a $43 million remodel to “de- mall” the property and accommodate new retail and restaurant tenants.15 The center, rebranded as The Shoppes at Gateway, was reported to be 94% leased as the largest power center between Portland and Sacramento.16 A sale of the center closed in March 2017 for a reported price of $107,500,000, one of the largest transactions recorded for Lane County. Industrial Development Industrial development between 1990 and 2008 in the Gateway area created new infrastructure for specialized uses. Symantec completed Phase I of its construction of a two-story, 198,000-square- foot call center building in 2001 with Phase II, which mirrors the Phase I construction, completed in 2006. Sony Corporation constructed and operated a disc manufacturing facility in the area for 10 years, closing in 2003. Shorewood Packaging, which built a facility in 1995 to provide packaging materials for the Sony plant, closed its doors in December 2008. Richardson Sports, a local sports cap manufacturer with 150 employees, purchased the 136,000-square-foot Shorewood building in 2012 and moved its operations to the facility following renovation of the building. With the addition of Richardson Sports, the total employment in the Gateway area is currently estimated at 10,000. Industrial use in the area has significantly added to the demand for new commercial and residential developments within the area. Agricultural Development The subject neighborhood has traditionally been an agricultural area due to the very high quality and depth of the soils. The area located north of Game Farm East and Deadmond Ferry Road remains in transitional agricultural use. At this location, the land is used for orchards, annual crops and hay. The majority of this area has been rezoned Campus Industrial for industrial development, though areas adjacent to the river that lie outside the city limits and within the McKenzie River floodway will likely remain in agricultural use. Transportation The subject neighborhood is well served by major transportation alternatives. The western border of the neighborhood is formed by the Interstate 5 freeway (I-5), which also serves as the boundary between the cities of Eugene and Springfield. I-5 is the major north/south freeway through the state of Oregon. Interstate 105 (I-105) is located one mile south of the Beltline Road interchange on I-5. I-105 is a linking freeway providing access from east Springfield to central Eugene. Beltline Road/Randy Pape Beltline is a four-lane limited access freeway providing access from I-5 to the Pacific Highway (99N) and West Eugene. The Beltline Road/Interstate 5/Gateway Street intersection had been one of the most congested areas in the Eugene/Springfield metropolitan area 15. “Rouse Properties Announces Grand Opening of The Shoppes at Gateway”. BusinessWire. 6 Jan. 2016. Web. 16. “Rouse Properties Unveils The Shoppes at Gateway, Eugene”. Zacks Equity Research. 6 Jan. 2016. Web. Attachment 3, Page 23 of 79 Neighborhood Description Duncan & Brown - 24 - and was redesigned to accommodate the additional traffic anticipated as future development occurs. Game Farm Road is also an arterial traveling east from Gateway Street in the northern portion of the neighborhood, then south to Harlow Road in the eastern portion. Harlow Road is a four-lane road forming the southern boundary of the neighborhood. Harlow Road connects with Coburg Road to the west, providing access to downtown Eugene within 10 minutes, and connects with Pioneer Parkway/Martin Luther King, Jr. Boulevard to the east, providing access to downtown Springfield within 10 minutes and SHMC at RiverBend in less than 5 minutes. Major transportation improvements in the area include upgrading Game Farm Road East and Deadmond Ferry Road to urban standards, the extension of Beltline Road to Game Farm Road South and improvement of the Beltline Road/Gateway Street intersection, as noted previously. Lane Transit District (LTD), the local municipal bus service, serves the subject neighborhood. Fully improved streets are also developed with bicycle lanes and sidewalks to encourage those forms of transportation. Overall, the neighborhood is well served by major transportation alternatives. SHMC RiverBend Development Completed in 2008, the new Sacred Heart Medical Center (SHMC) at RiverBend campus includes approximately 160 acres located along the McKenzie River, at the northeast corner of the neighborhood. This development was completed under a master plan that includes the regional hospital of approximately 1,000,000 square feet, as well as 200,000 square feet of medical office buildings, 800 to 1,200 dwelling units and related mixed use commercial development. Much of the land remains available, due in part to the impact of the late-2000s economic recession. The development also included extending and improving transportation in this portion of the neighborhood, which began with the installation of a new traffic circle at Harlow Road and Pioneer Parkway and extension of Martin Luther King, Jr. Boulevard to provide access to the hospital campus and immediate surrounding area. Additional upgrades include the addition of new lanes, turn lanes and medians to Beltline Road and Gateway Street near the I-5 interchange. In 2011, Lane Transit District completed the region’s Bus Rapid Transit system (EmX) service corridor along Pioneer Parkway connecting downtown Springfield with the Gateway neighborhood and SHMC at RiverBend. Fully improved streets are also developed with bicycle lanes and sidewalks to encourage those forms of transportation. Summary The Gateway neighborhood continues to transition from agricultural uses to urban development. Presently, the neighborhood is less than 25% undeveloped (including agricultural land). The Attachment 3, Page 24 of 79 Neighborhood Description Duncan & Brown - 25 - neighborhood is a mixed-use area with single- and multi-family development, as well as commercial and light industrial development. The neighborhood benefits from close proximity to major transportation arterials providing access to all parts of the metropolitan area, as well as the interstate freeway system. The neighborhood is expected to experience continued development in all sectors and has a higher rate of development than the city of Springfield as a whole. In summary, the subject property is well located in the northwest area of Springfield with easy arterial access to other neighborhoods within the Eugene/Springfield community, as well as the I-5 corridor. The Gateway neighborhood has been continually developed over the past 15 to 20 years. Attachment 3, Page 25 of 79 Duncan & Brown - 26 - P ROPERTY D ATA Legal Description The subject is identified by Lane County Department of Assessment and Taxation Map 17-03-22-20, Tax Lots 1200 and 1300. The legal description provided from the survey of the property is as follows: Owner of Record According to Lane County records, title to the subject property is vested in: Oregon Department of Transportation Sale History—Given According to Lane County records, there have been no sale transactions involving ownership of the subject property in the past five years. Attachment 3, Page 26 of 79 Property Data Duncan & Brown - 27 - Pertinent Conditions of Title A Preliminary Title Report prepared by Evergreen Land Title Company, dated December 3, 2019, was provided. The report includes 5 general exceptions to title and three current exceptions. Exceptions 1 through 5 are standard general exceptions issued in a title policy regarding taxes or assessments, facts, rights, interests or claims, easements, or claims of easements, any encroachments, liens or right of liens not shown by the public records. Exception 6 references the subject property being exempt from property taxation as it is owned by the State of Oregon. Exception 7 references a public utility easement shown on the recorded plat. Exception 8 references access restrictions contained in a deed recorded in 1966. None of the exceptions in the preliminary title report are considered to adversely affect the overall marketability of the property. However, it is noted that the ODOT Appraisal Specifications indicate that access to the subject property is completely restricted to Beltline Highway and Gateway Street. There are also no noted access easements indicated in the preliminary title report that would provide legal access to the subject property from the adjacent property. The lack of legal vehicular access to the property will be further discussed in the appraisal report. During the physical inspection of the subject, no other 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 affect the subject property. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Tax and Assessment Data The Lane County Department of Assessment and Taxation identifies the subject property as Tax Lots 1200 and 1300 on Map 17-03-22-20. The 2019-20 certified real market value, assessed value and taxes by the Lane County Department of Assessment and Taxation are as follows: IDENTIFICATION REAL MARKET VALUE ASSESSED VALUE TAXES* Tax Lot Account Land Improvements Total Total 1200 0188191 $635,551 $0 $635,551 $238,702 $0.00 1300 0188217 $729,555 $0 $729,555 $219,237 $0.00 Total: $1,365,106 $0 $1,365,106 $457,939 $0.00 *The subject is exempt from taxation as it is publicly owned. Zoning Designation The subject is located within the city limits of Springfield. According to the City of Springfield, the subject is zoned CC, Community Commercial. The subject has a comprehensive plan designation of Commercial. The following is a summary of the zoning ordinance extracted from the Springfield Land Use Code. Community Commercial District (CC) The CC District establishes sites to provide for a wide range of retail sales, service and professional office use and also includes all existing strip commercial areas. Attachment 3, Page 27 of 79 Duncan & Brown - 28 - Z ONING M AP SUBJECT PROPERTY Attachment 3, Page 28 of 79 Duncan & Brown - 29 - S UBJECT P HOTOGRAPHS Photographs taken by Clint C. Becraft, MAI on January 28, 2020 Viewing north from the southeast portion of the subject property. Viewing west from the southeast portion of the site. Attachment 3, Page 29 of 79 Subject Photographs Duncan & Brown - 30 - Northwest view from the southeast portion of the site. Viewing north along the east property line. Attachment 3, Page 30 of 79 Subject Photographs Duncan & Brown - 31 - Viewing west from the east property line on the northern portion of the site. Viewing south at the northeast corner of the site. Attachment 3, Page 31 of 79 Subject Photographs Duncan & Brown - 32 - Viewing west along the north property line. Viewing south at the northwest corner of the site. Attachment 3, Page 32 of 79 Duncan & Brown - 33 - P ROPERTY D ESCRIPTION The following is a summary description of the subject site. For visualization, your attention is directed to the subject photographs, plat map and site survey included in this report. Parcel Size: The gross site area is 33,477 square feet, or 0.77 of an acre, per the site survey provided to the appraiser, dated December 28, 2018. Tax Lot 1200 is indicated to be 13,098 square feet and Tax Lot 1300 is indicated to be 20,379 square feet. The Lane County Assessor records and information in the preliminary title report legal description indicate the site size to be 0.97 of an acre. The larger site size does not appear to take into consideration that a portion of site is located within retained public right-of-way. A deed relinquishing the retained right of way area to the city was recorded on January 21, 2020 (Deed No. 2020-003155). The 0.77-of-an- acre site size in the survey provided will be utilized in the analysis of the subject property. Shape/Topography: The subject site is an irregular-shaped parcel with frontage on the west side of Gateway Street and the south side of Randy Pape Beltline. The topography is level and at grade with the adjacent streets. Attachment 3, Page 33 of 79 Property Description Duncan & Brown - 34 - Utilities: Public electricity, water, sewer, natural gas and telephone service are available to the property. Street Improvements: The subject abuts Randy Pape Beltline to the north, which is a State of Oregon, limited access highway serving as am outer quarter-loop in Eugene and Springfield. It is 9.90 miles long and runs east–west. The subject is located at the eastern end near the interchange with Interstate-5. Beltline becomes a local road at Gateway Street. The I-5 interchange was upgraded in 2008, which included a flyover bridge and upgrades to the Gateway Street intersection. Gateway Street is listed as an arterial street in the Springfield transportation plan and includes four traffic lanes and a center turning lane, as well as bike lanes and concrete curbs, gutters and sidewalks. Exposure: Exposure to traffic is excellent from the adjacent streets. Available traffic counts from ODOT as of 2015 indicate 41,700 cars per day on Beltline at mile post 12.97 near the subject site. Available traffic counts from the City of Springfield as of 2008 indicate 13,672 cars a day travel on Gateway Street to the north of Beltline near the subject site. The ODOT counts are shown on the graphic including Beltline and the I-5 ramp areas. Accessibility: There is no legal vehicular access to the subject property. The subject has frontage on the west side of Gateway Street and the south side of Randy Pape Beltline. There are no driveway approaches to the subject from the street frontage at the property lines. The ODOT appraisal specifications also indicate access is completely restricted to Beltline Highway and Gateway Street. This would be included as a deed restriction upon any conveyance of ownership of the property. The nearest existing driveway approach is located approximately 100 to 110 feet south of the south property line of the subject on the adjacent property (Tax Lot 1600). This driveway provides a physical access to the subject Attachment 3, Page 34 of 79 Property Description Duncan & Brown - 35 - property; however, it is not a legal access to the subject property as there is no known access easement agreement to provide legal access to the subject site across the adjacent property. Easements: A Preliminary Title Report prepared by Evergreen Land Title Company, dated December 3, 2019, was provided. The report includes 5 general exceptions to title and three current exceptions. None of the exceptions in the preliminary title report are considered to adversely affect the overall marketability of the property. However, it is noted that the ODOT Appraisal Specifications indicate that access to the subject property is completely restricted to Beltline Highway and Gateway Street. There are also no noted access easements indicated in the preliminary title report that would provide legal access to the subject property from the adjacent property. The lack of legal vehicular access to the property will be further discussed in the appraisal report. During the physical inspection of the subject, no other 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 affect the subject property. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Flood Plain: According to FEMA Map 41039C1133F, effective June 2, 1999, the subject is located in Zone X, areas determined to be outside the 500-year floodplain. Hazardous Wastes: The subject property is known to have contamination. The south portion of the site (Tax Lot 1300) was previously improved with a Shell fueling station (PANOCO #10) as shown in the Oregon Department of Environmental Quality (DEQ) Log #20-90-4057. The contamination stop date and cleanup start date are indicated to be April 2, 1990 with a cleanup end date of December 18, 1990. A No Further Action (NFA) letter was obtained in September of 1990, but subsequent monitoring found additional contamination. A remediation plan was put in place but was never completed. The south portion of the site (Tax Lot 1200) was previously improved with an ARCO fueling station (ARCO 4441) as shown in the Oregon Department of Environmental Quality (DEQ) Log #20-90-4280. The contamination stop date is indicated to be May 5, 1992 with a cleanup start date of March 8, 1992 and end date of November 4, 1996. An NFA letter was obtained in October of 1996. The site contamination is not to be considered in the valuation of the property, as per the appraisal specifications Attachment 3, Page 35 of 79 Property Description Duncan & Brown - 36 - provided by ODOT. Therefore, the value conclusion is based on a hypothetical condition that the subject is clean, as per the Oregon Department of Environmental Quality residential exposure criteria. The application of this hypothetical condition may affect the assignment results. Site improvements: The north portion of the site is improved with a piece of artwork known as the Springfield Flame, which is a 62-foot- tall metal flame sculpture on a concrete slab. A plaza and seatwall area have been proposed to be installed around the sculpture for future public use. The existing sculpture is not included in the valuation of the property, as per the appraisal specifications provided by ODOT. Therefore, the value conclusion is based on a hypothetical condition that the sculpture does not exist on the site and the site is bare land with no improvements as of the effective date of value, January 28, 2020. The application of this hypothetical condition may affect the assignment results. Attachment 3, Page 36 of 79 Duncan & Brown - 37 - SITE SURVEY Attachment 3, Page 37 of 79 Site Survey Duncan & Brown - 38 - Attachment 3, Page 38 of 79 Duncan & Brown - 39 - H IGHEST AND B EST U SE The term “Highest and Best Use” was previously defined, and the definition 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 its 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 was analyzed. Legal Considerations—The legal considerations primarily focus on the zoning of the site, which is CC, Community Commercial. The CC zoning allows a wide variety of commercial uses. The intent of the zoning is to establish sites to provide for a wide range of retail sales, service and professional office use and also includes all existing strip commercial areas. Overall, the legal considerations allow commercial use, but use of the parcel is limited by its physical characteristics, as described in the following section. Physical Considerations—The physical characteristics of the subject site were previously described. The subject is an irregular-shaped parcel with frontage on the west side of Gateway Street and the south side of Randy Pape Beltline. The topography is level and at grade with the adjacent streets. There is no legal vehicular access to the subject property. The subject has frontage on the west side of Gateway Street and the south side of Randy Pape Beltline. There are no driveway approaches to the subject from the street frontage at the property lines. The ODOT appraisal specifications also indicate access is completely restricted to Beltline Highway and Gateway Street. This would be included as a deed restriction upon any conveyance of ownership of the property. The nearest existing driveway approach is located approximately 100 to 110 feet south of the south property line of the subject on the adjacent property (Tax Lot 1600). This driveway provides a physical access to the subject property from across the adjacent property; however, it is not a legal access to the subject property as there is no known access easement agreement to provide legal access to the subject site across the adjacent property. As such, the lack of access to the property precludes development of the site with any building structures as a stand- alone parcel. The subject parcel has only one abutting site with which it could be assembled, Tax Lot 1600, which is improved with a hotel building structure, a restaurant building and paved parking area. There are no other sites for which assemblage could occur (refer to plat map). Without legal access to the subject, physical uses would be limited to providing additional parking for the adjacent property via a lease agreement, or potential for use for commercial monument signage for local business or other community-oriented signage uses. Use for monument signs would likely necessitate a temporary access from the adjacent property to install such signs, unless such signs could be installed from the pedestrian access at the sidewalk along the street. Economic Considerations—Demand for commercial development sites has increased over the past several years, as demonstrated by an increase in market activity, such as the recent sales of commercial sites presented in this report. The long-term outlook is for continuing demand for commercial land in the greater Eugene-Springfield metropolitan area as the economy continues a growth cycle. As a stand-alone parcel, the subject would have very limited demand, if any, in the general market as it has no greater stand-alone use than for surplus parking area for the adjacent hotel and Attachment 3, Page 39 of 79 Highest and Best Use Duncan & Brown - 40 - restaurant uses on the adjacent property or for potential monument signage uses. The lack of legal vehicular access to the subject surplus property prevents productive use of the site as a stand-alone parcel for building structures. Potential buyers of the subject would be very limited other than an adjacent owner who could assemble the site with the adjacent property; however, there is only one adjacent owner. Other potential buyers could be a nearby property owner who would want to control the site to prevent nuisances such as illegal camping or dumping of debris, or a buyer who would attempt to hold and resell the property to an adjacent owner for a profit. None of the scenarios for buyers other than the adjacent property owner are considered, since they are unlikely to occur. The subject parcel, however, provides some level of utility for the abutting property to the west (Tax Lot 1600). The subject parcel has street frontage on the corner of Gateway Street and Randy Pape Beltline. Assemblage of the subject property with the adjacent property would allow the adjacent owner to control the street frontage area and utilize this area to maximize the visibility of the adjacent property from vehicular traffic. The site, as assembled, could also provide some utility for small commercial uses such as a coffee drive-thru or small retail-oriented use; however, the single access to the adjacent property may preclude the feasibility of some uses. The adjacent owner would also be able to enclose the site to prevent any illegal uses. Therefore, the subject has a greater value for assemblage with the adjacent property than as a stand-alone parcel. The surplus site is not necessarily needed for the adjacent property to function on its own. The adjacent property is improved with a hotel, restaurant and asphalt-paved parking area. Vehicular access to the adjacent property is provided from a driveway approach from Gateway Street at the southeast portion of the site. As such, there are no adverse consequences to the adjacent property in terms of access from not assembling with the subject property. The adjacent improved site is also of a size large enough to accommodate parking for a variety of potential uses if redevelopment were to occur. In terms of redevelopment, the adjacent property improvements (the building structures) are under separate ownership subject to ground leases of the site. The adjacent property land was acquired in 2014 by a group of investors as a hold for long-term development, which could be as long as a couple decades from the purchase. The ground lease for the hotel building is indicated to have renewal options that could extend to approximately 2060. The ground lease options for the restaurant are indicated to be much shorter, but still extending for several years to the mid-2020s. Therefore, redevelopment of the site is not likely in the near future due to the existing ground lease and renewal options. As such, the most probable use would be for surplus parking as an interim use for the hotel and restaurant, and/or for commercial monument signage for local businesses or public signage use. Any leases for such uses would be anticipated to be for shorter terms than the ground leases for the hotel and restaurant as to not preclude development if the hotel and restaurant operators were to vacate the buildings. Conclusion—Given the legal, physical and economic factors described above, the subject property (Tax Lots 1200 and 1300) does not provide utility for development as a stand-alone parcel with building structures given the lack of legal vehicular access, but does provide some benefit for assemblage with the adjacent property (Tax Lot 1600) for interim use until redevelopment occurs. Assembling the subject property is not essential to the existing use of the adjacent property but would provide some interim benefit for surplus parking and longer-term benefit for redevelopment. Therefore, the highest and best use of the subject property is concluded to be for assemblage with the adjacent property. Given the concluded highest and best use, the only potential buyer of the property is the owner of the adjacent property to the west. Therefore, a bilateral monopoly exists. A bilateral monopoly is “a Attachment 3, Page 40 of 79 Highest and Best Use Duncan & Brown - 41 - market in which a single seller (a monopoly) is confronted with a single buyer (a monopsony). Under these circumstances, the theoretical determination of output and price will be uncertain and will be affected by the interdependence of the two parties.”17 Therefore, the value of the subject property becomes a question of contribution. The concept of contribution is that the value of a particular component is measured in terms of the amount it adds to the value of the whole property or as the amount that its absence would detract from the value of the whole. Within a contribution value, there is typically a minimum and maximum value of the parcel which represents a negotiating range. The true value or selling price becomes a matter of seller motivations to dispose of the property and buyer motivations to purchase the property. As such, the following valuation for the subject property will be based on an “Across the Fence” methodology with the concluded market value reflecting the contributory value of the surplus property to the adjacent property for assemblage. The full across the fence value will be adjusted by what is concluded to be the most appropriate market-derived discount to reflect any potential discount based on market activity data that could be commanded during negotiations as of the current date. 17 Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015). Attachment 3, Page 41 of 79 Duncan & Brown - 42 - A PPRAISAL P ROCESS The next portion of this appraisal process deals directly with the valuation of the property. The appraisal process that is applied to most real estate properties is designed to evaluate all factors that influence value. Regional and neighborhood information has been presented to inform the reader of general outside influences that may affect value. In addition, the subject property has been described in detail. 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. In this assignment, the Sales Comparison Approach is the only applicable valuation method for the subject property. The Cost Approach and Income Capitalization Approach are not applicable in estimating the value of the property. As previously noted, the valuation of the subject surplus property will be based upon an analysis of the “Across the Fence” value of the adjacent property. The full across the fence value will then be adjusted by what is concluded to be the most appropriate market-derived discount to reflect the contributory value of the surplus property for assemblage with the adjacent property. The percentage discount is based on historical sales of properties purchased for assemblage and reflects the discount of full across the fence values that willing buyers and sellers agreed upon. Attachment 3, Page 42 of 79 Duncan & Brown - 43 - S ALES C OMPARISON A PPROACH The Sales Comparison Approach is based on the principle that an informed purchaser would pay no more for a property than the cost of acquiring an existing property with the same utility. In active markets with a large number of physically similar comparables, this approach is generally considered a good indicator of value. For analysis purposes, a common unit of comparison, which would be the most common method utilized by purchasers for the type of property being appraised, is established. The adjacent property is zoned CC, Community Commercial. Commercial land is typically valued on a per-square-foot basis, which will be utilized in this analysis. An extensive search was made in the immediate area of the subject property for comparable sales that share similarities with the adjacent property, as well as the surrounding areas including the greater Eugene-Springfield metropolitan area. Given the lack of recent land sales in the immediate area of Springfield, it was necessary to expand the geographic search parameters. A qualitative analysis reflecting market behavior is utilized to determine which comparables are superior or inferior to the adjacent parcel. This analysis establishes value parameters for the site, allowing for a conclusion of the across the fence unit value. Consideration will be given to differences in location and market conditions, as well as typical physical characteristics of the sale properties in comparison to the adjacent parcel. The sales presented share similarities to the property on an overall basis and are considered to provide a reasonable comparison. The selected sales are considered the best available comparable data. The sales are summarized on the following page. Transaction details for each sale, including photographs and maps, are included within the Addenda of this report. A sales location map is also provided. Attachment 3, Page 43 of 79 Duncan & Brown - 44 - SALES LOCATION MAP Attachment 3, Page 44 of 79 Sales Comparison Approach Duncan & Brown - 45 - LAND SALES SUMMARY CHART NO. LOCATION/ADDRESS SALE DATE SITE SIZE ZONING SALE PRICE PRICE/ SQ. FT. COMMENTS 1 Harlow Rd. & Beverly St. Springfield 17-03-27-22-00200 & 300 11/19 12/16 53,143 sf (1.22 acres) GO $1,750,000 $770,000 $32.93 $14.49 Sale and resale of a redevelopment parcel. The site has had extensive site development work completed since the prior sale including asphalt paving for 73 vehicles, excavation and site work for an office, construction drawings for an office and site review approval. Has a shared driveway area. 2 198 Hwy 99, Eugene Map 17-04-26-13-04200 & 4300 6/19 64,469 sf (1.48 acres) C-2 $1,110,780 $17.23 The site was purchased for development with a gas station and the old buildings will be demolished. The property has good exposure to traffic from Highway 99 and Roosevelt Boulevard. Access is available from both streets. There is asphalt paving that was in overall average condition. A billboard was also on the site subject to a ground lease that provided some additional income to the property. 3 6th and Chambers St., Eugene Map 17-04-36-12-12300, 12400, 12500, 12600, 12700, 12800 11/18 40,075 sf (0.92 acre) C-2 $796,040 $19.86 The site is a rectangular one-half of a city block. All utilities are available to the site. The western portion of the property was previously improved with a small motel that was removed a few years ago. The remainder of the parcel was used as a vehicle towing and storage yard; much of the evidence of past usage of the lot has been removed. The property was purchased by an investor and is being marketed for development. 4 1834 5th Street & 400-450 Q Street, Springfield Map 17-03-26-24, Tax Lots 2200, 2300, 2400, 2500 10/17 57,935 sf (1.33 acres) CC $1,200,000 $20.71 The site has access from Q Street and N. 5th Street and is located across the street from Fred Meyer and adjacent to several other complementary commercial and residential developments. Purchased for development with a Domino’s Pizza. Purchased in two transactions to assemble the development site. 5 3663 Gateway St. Springfield Map 17-03-15-32-01000 Map 17-03-15-33-01800 4/17 67,082 sf (1.54 acres) CC $1,117,523 $16.66 Sale of two adjacent tax lots with a combined area of 1.54 acres. All utilities are available to the site. The buyer owns an office building across the street and will use this property for additional parking area. Attachment 3, Page 45 of 79 Sales Comparison Approach Duncan & Brown - 46 - Sales Discussion and Across the Fence Unit Value Conclusion A comparable sale adjustment grid is provided below. The physical characteristics of the adjacent parcel are summarized in the chart. Qualitative analysis reflecting market behavior is utilized to determine which comparables are superior or inferior to the adjacent parcel. 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 the across the fence per-square-foot unit value. LAND SALES ADJUSTMENT CHART ADJACENT PROPERTY TL 1600 SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 Market Conditions (Sale Date) Current 11/19 6/19 11/18 10/17 4/17 Comparison to Subject Similar Similar Similar Sl. Inferior Sl. Inferior Location Springfield (Gateway) Springfield (Gateway) Eugene (Hwy 99) Eugene (6th/7th Ave.) Springfield (Q Street) Springfield (Gateway) Comparison to Subject Similar Inferior Similar Similar Similar Access Average (1 street/ 1 approach) Average (1 street & Shared driveway) Average+ (2 streets/ 2 approaches but near intersection) Good (3 streets/ 2 approaches) Good (2 streets/ 2 approaches) Good (2 streets/ 2 approaches) Comparison to Subject Similar Sl. Superior Superior Superior Superior Exposure Excellent Good Very Good Very Good Good Good Comparison to Subject Inferior Sl. Inferior Sl. Inferior Inferior Inferior Shape/Topography L-shaped/ Level Near Rectangle/ Level Irregular/ Level Rectangular/ Level Near Rectangle/ Level Panhandle/ Level Comparison to Subject Similar Similar Similar Similar Inferior Size 173,369 sf (3.98 acres) 53,143 sf (1.22 acres) 64,469 sf (1.48 acres) 40,075 sf (0.92 acre) 57,935 sf (1.33 acres) 67,082 sf (1.54 acres) Comparison to Subject Superior Superior Superior Superior Superior Zoning CC GO C-2 C-2 CC CC Comparison to Subject Similar Similar Similar Similar Similar Utilities All Utilities Available All Utilities Available All Utilities Available All Utilities Available All Utilities Available All Utilities Available Comparison to Subject Similar Similar Similar Similar Similar Sale Price/Sq. Ft. $20.89* $17.23 $19.86 $20.71 $16.66 Unit Value Conclusion Slightly High Indicator Low Indicator Reasonable Indicator Slightly High Indicator Low Indicator *Sale price adjusted to exclude contribution of site development improvements, excavation and entitlements. The land sales indicate a range of value from $16.66 to $20.89 per square foot. The adjusted price for Sale 1 reflects the bare land value excluding the contributory value of the site development improvements, excavation and entitlements. The qualitative adjustments are summarized on the adjustment chart above. The sales presented occurred between 2017 and 2019. Sales 4 and 5 occurred in 2017 and are inferior in terms of market conditions. There is insufficient data to quantify an adjustment for market conditions and subjective adjustment is not considered appropriate, so no quantified adjustment is made due to older sale dates. Sales 2 is considered to be inferior in general location as Attachment 3, Page 46 of 79 Sales Comparison Approach Duncan & Brown - 47 - compared to the subject given the observed characteristics of surrounding properties in the respective locations. Sales 3, 4 and 5 are superior in terms of access considering the ability of entering and exiting the property. Sale 2 is slightly superior in access. Although Sale 2 has multiple access points, the accesses are very close to an intersection and ingress can be impeded due to traffic back-ups. The qualitative exposure to traffic adjustments to the sales reflect the observed site visibility and amount of traffic as compared to the subject site. In terms of site size, the identification of the comparable properties as superior to the subject is based on the premise that smaller sites typically sell for a higher price per square foot than larger sites, all else being equal, (and larger sites typically sell for a lower price per square foot than smaller sites, all else being equal), rather than being an indicator of physical superiority or inferiority. Overall, the appropriate unit value for the adjacent parcel should fall slightly below the indications of Sales 1 and 4 at $20.89 and $20.71 per square foot, above Sales 2 and 5 at $17.23 and $16.66 per square foot and near Sale 3 at $19.86 per square foot in the range of $19.50 to $20.00 per square foot. With consideration given to the physical and locational characteristics as compared to the sales presented, including location, access, exposure to traffic, shape, topography, site size, zoning and available utilities, the unit value for the adjacent parcel (Tax Lot 1600), and the across the fence value to apply to the subject parcel, is concluded to be at the high end of the concluded $19.50 to $20.00 per square foot range at $20.00 per square foot. Subject Property Assemblage Value Conclusion In determining the appropriate assemblage value of the subject property, an extensive search was made in the local market and other market areas for sales of parcels that were purchased by adjacent property owners for assemblage purposes. Given the limited number of transactions that were found in the greater Eugene-Springfield market area, it was necessary to utilize a sale in another market area that the appraiser is familiar with, as well as a pending sale and a sale offering in the immediate market area. The sale properties represent differing property types with differing parcel sizes and per-square-foot property values. The sales are not directly comparable to the subject based on physical and locational considerations and are not used to determine an appropriate price per square foot for the subject, but do provide an indication of the percentage of discount from full across the fence values that willing buyers and sellers agreed upon. Each of the sales are similar in terms of having only one adjacent buyer who made a purchase of the property. The percentage of discount indicated is based on the unit price of each sale and the full across the fence unit value of the adjacent property. The latter value estimates are based on an analysis of comparable market data with similar characteristics to each sale parcel, as well as estimated values from the tax assessment rolls in the respective counties and input from buyers and sellers when available. The percentage range of discounts is representative of the various levels of utility that the assemblage sale properties provided to the adjacent properties. The sales are presented on the following page. Attachment 3, Page 47 of 79 Sales Comparison Approach Duncan & Brown - 48 - ASSEMBLAGE LAND SALES SUMMARY CHART NO. COMMENTS LOCATION/ADDRESS SALE PRICE DATE SITE SIZE ZONING PRICE/ SQ. FT. DISCOUNT 1 Springfield Map 17-03-35-32-06101 $21,600* Pending (1/20) 2,391 sf (0.05 acre) MUC $9.03 50% 2 Eugene Map 17-04-35-20-02200 Deed No.: 2015-045848 $3,500 (9/15) 3,580 sf (0.08 acre) I-2 $0.98 75% 3 Springfield 18-02-04-11-05500 Deed No.: 2015-44929 $25,213 (9/15) 19,602 sf (0.45 acre) LD $1.29 40%‐60% (est.) 4 Springfield 3rd St. & S. A St. Map 17-03-35-31 (untaxlotted) 2018 (offer and counteroffer) 1,950 sf (0.045 acre) (approx..) None $15.00 (offer by seller) $3.00 (counteroffer by buyer) 80% 5 Ashland Map 38-1E-32-05800 Deed No.: 2019-1356 $120,000 (1/19) 13,631 sf (0.31 acre) GC $8.80 25% *Sale price adjusted. Sale 1 is the sale of a remnant parcel from a former right-of-way that was sold to the adjacent property owner. The parcel was not developable as a stand-alone site due to the small size and configuration. There was only one adjacent property owner. The buyer wanted to assemble the parcel with his adjacent ownership to control its use and add as landscaped yard area to his existing adjacent property. The sale terms required the buyer to complete concrete work at his own cost to remove the existing driveway approach and replace the approach with a sidewalk, curb and gutter to meet city construction standards. The pending sale price is $3,900 which is adjusted upward $17,700 to $21,600 to reflect the necessary expenditures buy the buyer as part of the conditions of the sale. The sale is based on a 50% discount from the across the fence land value. Attachment 3, Page 48 of 79 Sales Comparison Approach Duncan & Brown - 49 - Sale 2 is a remnant parcel from a former right-of-way that was sold to the adjacent property owner. The parcel was not developable as a stand-alone site due to the small size and configuration. There was only one adjacent property owner. The parcel had very limited utility for the adjacent parcel other than to add setback area to the corner of the adjacent site. The sale was based on a 75% discount from the across the fence land value due to its limited utility. Sale 3 is a sale of a residential zoned remnant parcel that appears to have very limited development potential due to its size and configuration with a narrow shape and narrow pan-handle access. The property was purchased by an adjacent property owner. The abutting property was developed with a single-family residence. The sale parcel adds utility to the adjacent property for additional yard area. The buyer could not be reached for confirmation of the sale and there was very limited information available from the seller. The percentage discount is estimated as a range based on information available to the appraiser. Sale 4 represents an offer and counteroffer to purchase a right-of-way strip that was formerly used for railroad tracks. The adjacent buyer owns a restaurant property and approached the railroad owner to purchase the strip. The buyer wanted to use the site for additional outdoor seating area for the restaurant. The seller was willing to sell the strip but asked for a value of $15.00 per square foot. The buyer was willing to pay approximately $3.00 per square foot as they are the only adjacent property owner that could use the site. The offerings by the buyer and seller represent an 80% discount. The sale, however, did not occur at this price, which suggests this discount was too steep for a property that provided utility to the adjacent property owner. Sale 5 is a sale of a commercial parcel that was undevelopable due to not being created as a legal parcel. The site was improved with asphalt paving and had been leased to the adjacent property owner for use as parking area. Although not developable on its own as a stand-alone parcel, the sale property provided utility to the adjacent property for parking area as the adjacent site did not have adequate parking area for the existing use as an auto body shop. The sale price indicates a discount of 25% from the full across the fence value. Conclusion—In the case of the subject property, each party (buyer – adjacent property owner, seller – subject property owner) has the potential to have the monopolistic advantage depending on the motivations of each party. For example, if the adjacent property owner wishes to develop their property in the immediate future, the seller would have the monopolistic advantage as the property owner would be highly motivated to acquire the subject to move forward with development. In that case, the maximum contributory value could likely be achieved. However, if the adjacent property owner wishes to hold the property for future development and has no immediate or contemplated plans for development, the buyer holds the monopolistic advantage, particularly if the seller is motivated to sell. The sales, pending sale and sale offering demonstrate a range of discounted values from 25% to 80% of full across the fence value. Sale 1 at a 50% discount and Sale 2 at a 75% discount are high indicators for the subject as the subject site provides more utility and benefit to its adjacent property than the Sale 1 and Sale 2 properties add to their adjacent properties. The subject parcel allows the adjacent property owner to control street frontage on a very busy commercial corner and utilize the site for surplus parking to enhance the existing improved use. Sale 3 at an estimated range of 40-60% represents a sale that provided usable yard area to an adjacent residential property, but the yard area is not developable. The sale has an inferior potential for use to its adjacent property than the subject and is considered a high indicator for the subject. The Sale 4 offering is utilized a secondary supporting information. The remnant parcel would provide usable area to the adjacent property, but the 80% discount appears to have been too steep to consummate a sale. Sale 5 provides a superior level of utility to its adjacent property, which was in need of Attachment 3, Page 49 of 79 Sales Comparison Approach Duncan & Brown - 50 - additional parking and driveway area to effectively operate. There was also a more immediate need for the additional parking area as compared to the subject site where the motivation to acquire the property is influenced more by the future redevelopment of the combined property. Thus, the 25% discount indicated by Sale 5 is considered to be a slightly low indicator to apply to the subject property. Therefore, the appropriate discount for the subject should fall above Sale 5 at 25%, but below Sales 1 and 2 at 50% to 75%, the Sale 3 offering at 80% and the 40-60% range indicated by Sale 2. Based on the market data presented and consideration of the physical characteristics of the subject property, a discount of 30% of the across the fence value is concluded for the subject property. The full across the fence value for the subject equates to $669,540 (33,477 sf x $20.00/sf), rounded to $670,000. Applying a 30% discount to the across the fence value equates to a market assemblage value of $469,000 ($670,000 x 0.70), rounded to $470,000. This concluded value represents the subject’s land value for assemblage with the adjacent property. Attachment 3, Page 50 of 79 A DDENDA ODOT Land located at the southwest corner of Randy Pape Beltline and Gateway Street Springfield, Lane County, Oregon Map 17‐03‐22‐20, Tax Lots 1200 and 1300 CERTIFICATE OF APPRAISER CERTIFICATION PLAT MAP PRELIMINARY TITLE REPORT LEGAL LOT DETERMINATION COMPARABLE SALE DETAILS APPRAISAL SPECIFICATIONS APPRAISER’S QUALIFICATIONS Attachment 3, Page 51 of 79 Duncan & Brown C ERTIFICATE OF A PPRAISER I hereby certify: that on *January 28, 2020, I personally made a field inspection of the property herein appraised. I also inspected any comparable sales relied upon in making this appraisal. The subject and comparable sales relied upon in making the appraisal were as represented in this appraisal report. That to the best of my knowledge and belief the statements contained in the appraisal herein set forth are true, and the information upon which the opinions expressed herein are based is correct; subject to the limiting conditions herein set forth. That such appraisal has been made in conformity with the appropriate State laws, regulations, and policies and procedures applicable to appraisal of property for such purposes. That neither my employment nor my compensation for making this appraisal is in any way contingent upon the values reported herein. That I have no direct or indirect present or contemplated future personal interest in such property or in any benefit from the acquisition of such appraised property. That I have not revealed the findings and results of this appraisal to anyone other than the proper officials of the Oregon Department of Transportation and that I will not reveal the findings and results of this appraisal to anyone until so authorized by said State officials, or until I am required to do so by due process of law. That my opinion of market value of the property is based upon my independent appraisal and the exercise of my professional judgment. The conclusion(s) set forth in this appraisal were reached without collaboration or direction as to value as of ** January 28, 2020 and are indicated below: $470,000 Assemblage Value. 2/7/2020 (Signature) Clint C. Becraft (Date) (Bus Phone) 541-995-7025 * Date(s) subject was inspected ** Date of Valuation Attachment 3, Page 52 of 79 Duncan & Brown C ERTIFICATION I, Clint C. Becraft, 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 my personal, impartial, and unbiased professional analyses, opinions and conclusions.  I 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.  I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.  My engagement in this assignment was not contingent upon developing or reporting predetermined results.  My 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.  Clint C. Becraft, MAI made a personal inspection of the property that is the subject of this report.  No one provided significant professional assistance to the person signing this report.  Clint C. Becraft, MAI has performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment.  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, Clint C. Becraft, MAI has completed the requirements of the continuing education program for Designated Members of the Appraisal Institute. Clint C. Becraft, MAI Certification No. C000856 Expiration 4/30/20 Attachment 3, Page 53 of 79 Duncan & Brown P LAT M AP Attachment 3, Page 54 of 79 1570 Mohawk Boulevard • Springfield, OR 97477 P.O. Box 931 • Springfield, OR 97477 Phone: 541.741.1981 Fax: 541.741.0619 260 Country Club Rd, Ste 120 • Eugene, OR 97401 P.O. Box 10211 • Eugene, OR 97440 Phone: 541.687.9794 Fax: 541.687.0924 TITLE INSURANCE SERVICES • ESCROW CLOSINGS December 03, 2019 Order No. 19-19120 PRELIMINARY TITLE REPORT City of Springfield 225 5th St. Springfield, OR 97477 Attn: Linda J. Craig e-mail: lcraig@springfield.or.gov Dear Linda J. Craig: Partial Billing Additional Chain TOTAL $300.00 $300.00 We are prepared to issue on request and on recording of the appropriate documents, a policy or policies as applied for, with coverage's as indicated, based on this preliminary report. LEGAL DESCRIPTION: SEE EXHIBIT "A" ATTACHED HERETO Showing fee simple title as of November 25, 2019, at 8:00 a.m., vested in: STATE OF OREGON, by and through its Department of Transportation Subject only to the exceptions shown herein and to the terms, conditions and exceptions contained in the policy form. No liability is assumed until a full premium has been paid. Order No.: 19-19120 Page 1 of 4 Attachment 3, Page 55 of 79 SCHEDULE B GENERAL EXCEPTIONS 1. 2. 3. 4. 5. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. Facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. Easements, or claims of easement, not shown by the public records; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. Discrepancies, conflicts in boundary lines, shortage in area, encroachments or other facts which a correct survey would disclose. Any lien, or right to a lien, for services, labor, material, equipment rental or workers compensation heretofore or hereafter furnished, imposed by law and not shown by the public records. CURRENT EXCEPTIONS: 6. 7. 8. The real property taxes for the fiscal year 2019-2020 are exempted by virtue of State ownership. The company assumes no liability should the exempt status be lifted and taxes levied. Map No. 17-03-22-20-01200, Code 19-00, Account No. 0188191 Map No. 17-03-22-20-01300, Code 19-00, Account No. 0188217 Public Utility Easement as shown on the recorded plat. Access Restrictions as contained in Deed Recorded November 25, 1966, Reception No. 67649, Lane County Oregon Records. NOTE: The addresses of the properties to be insured herein is: 3494 Gateway Street, Springfield, OR 97477. (Parcel 1) and 3484 Gateway Street, Springfield, OR 97477. (Parcel 2) NOTE: A Judgment/Lien/Bankruptcy Search was done for the name(s) STATE OF OREGON, and as of November 25, 2019, none were found. NOTE: As of November 25, 2019, there are no liens for the City of Springfield. INFORMATIONAL NOTE: The current vesting deed and all changes back to the deed which vests ownership 24 months ago are as follows: STIPULATED FINAL JUDGMENT RECORDED DECEMBER 7, 1999, IN FAVOR OF STATE OF OREGON, BY AND THROUGH ITS DEPARTMENT OF TRANSPORTATION, RECEPTION NO. 1999-099025. Order No.: 19-19120 Page 2 of 4 Attachment 3, Page 56 of 79 NOTE: Due to current conflicts or potential conflicts between state and federal law, which conflicts may extend to local law, regarding marijuana, if the transaction to be insured involves property which is currently used or is to be used in connection with a marijuana enterprise, including but not limited to the cultivation, storage, distribution, transport, manufacture, or sale of marijuana and/or products containing marijuana, the Company declines to close or insure the transaction, and this Preliminary Title Report shall automatically be considered null and void and of no force and effect. Very truly yours, EVERGREEN LAND TITLE COMPANY HOME OFFICE By: Andrew Rollins Title Officer cc: NO LIABILITY IS ASSUMED HEREUNDER UNTIL POLICY IS ISSUED AND PREMIUM PAID. IF FOR ANY REASON THE REPORT IS CANCELLED, A MINIMUM CANCELLATION FEE OF $200.00 WILL BE CHARGED. Order No.: 19-19120 Page 3 of 4 Attachment 3, Page 57 of 79 EXHIBIT "A" LEGAL DESCRIPTION TAX LOT 1200: Beginning at a point North 89∞55' 35" East 415.7 feet from a point on the West line of the William Stevens Donation Land Claim No. 46, Township 17 South, Range 3 West of the Willamette Meridian, 614.68 feet South 0∞04' 25" East from the Northwest corner of said Claim; run thence South 0∞04' 25" East 150.00 feet; thence South 89∞55' 35" West 150.00 feet; thence North 0∞04' 25" West 150.00 feet; thence North 89∞55' 35" East 150.00 feet to the Point of Beginning, all in Lane County, Oregon. EXCEPT that portion of the above to be deeded to the Oregon State Highway Commission for State Highway purposes, more particularly described as follows: Beginning at the point as described above; thence South 0∞04' 25" East 5.58 feet; thence South 83∞35' 10" West 150.92 feet; thence North 0∞04' 25" West 22.25 feet; thence North 89∞55' 35" East 150.00 feet to the Point of Beginning, in Lane County, Oregon, being Lot 1, Block 2, PUERTA SUBDIVISION, as platted and recorded in Volume 53, Page 2, Lane County Oregon Plat Records, Lane County, Oregon. EXCEPTING that portion deeded to the City of Springfield by instrument Recorded October 26, 1994, Reel 2006R, Reception No. 94-76210, Lane County Oregon Records. TAX LOT 1300: Beginning at a point 415.70 feet North 89∞55' 35" East of a point on the West line of the William Stevens Donation Land Claim No. 46, in Township 17 South, Range 3 West of the Willamette Meridian, 764.68 feet South 0∞04' 25" East from the Northwest corner of said Claim No. 46; thence continuing South 0∞04' 25" East 150.00 feet along the Westerly line of that road deeded to Lane County, Oregon by instrument Recorded January 12, 1967, Clerk's File No. 71908, Lane County Oregon Records; thence South 89∞55' 35" West 150.00 feet; thence North 0∞04' 25" West 150.00 feet; thence North 89∞55' 35" East 150.00 feet to the Point of Beginning, in Lane County, Oregon, more recently described as Lot 2, Block 2, PUERTA SUBDIVISION, as platted and recorded in Volume 53, Page 2, Lane County Oregon Plat Records, in Lane County, Oregon. Order No.: 19-19120 Page 4 of 4 Attachment 3, Page 58 of 79 Attachment 3, Page 59 of 79 Attachment 3, Page 60 of 79 Attachment 3, Page 61 of 79 Duncan & Brown L EGAL L OT D ETERMINATION Attachment 3, Page 62 of 79 Duncan & Brown C OMPARABLE S ALES SALE 1 Location: Harlow Road and Beverly Street Springfield, Lane County, Oregon Assessor ID: Map 17-03-27-22-00200 & 300 Transaction— Grantor: Beverly Street, LLC Grantee: Chimaera Holdings, LLC Date: November 7, 2019 Recording: 2019-52753 Sale Price: $1,750,000 Terms: Cash to Seller Real Estate— Land Area: 53,143 square feet, 1.22 acres Zoning: GO, General Office Unit of Comparison— Price/SF: $32.93 Confirmation: Jeff Elder, broker, Evans, Elder, Brown & Seubert, Commercial Real Estate Attachment 3, Page 63 of 79 Comparable Sales Duncan & Brown Property Description This is the sale and resale of an office development site with site work and entitlements. The site has generally level topography at grade with the adjacent streets. All public utilities are available to the property. There is frontage on Beverly Street, and it is visible from Harlow Road. The site has had extensive site development work completed since the prior sale including asphalt paving for 73 vehicles, excavation and site work for an office, construction drawings for an office and site review approval at a reported cost of $640,000. The bare land price excluding the $640,000 equates to $20.89 per square foot. The site has a shared driveway area at the north side of the site. The buyer intended to build a medical office building. The property had been listed for sale at an asking price of $1,950,000. I consider this sale representative of the market. This sale is not a sale of a remainder property from a former right-of-way or other eminent domain taking. 1/29/2020 Clint C. Becraft, MAI (Date Inspected) Attachment 3, Page 64 of 79 Comparable Sales Duncan & Brown SALE 2 Location: 198 Hwy 99 Eugene, Lane County, Oregon Assessor ID: Map 17-04-26-13-04200 & 4300 Transaction— Grantor: Roosevelt Development, LLC Grantee: Premium Petroleum Group, LLC Date: June 13,2019 Recording: 2019-23811 Sale Price: $1,110,780 Terms: Cash to Seller Real Estate— Land Area: 64,469 square feet, or 1.48 acres Zoning: C-2, Community Commercial Unit of Comparison— Price/SF: $17.23 Confirmation: Darren Stone, broker, Jennings Company Attachment 3, Page 65 of 79 Comparable Sales Duncan & Brown Property Description The property is a 1.48-acre commercial site located at 198 Hwy 99 in Eugene. The site is improved with some old retail buildings that were of no value. The site was purchased for development with a gas station and the old buildings will be demolished. The property has good exposure to traffic from Highway 99 and Roosevelt Boulevard. Access is available from both streets. There is asphalt paving that was in overall average condition. A billboard was also on the site subject to a ground lease that provided some additional income to the property. I consider this sale representative of the market. This sale is not a sale of a remainder property from a former right-of-way or other eminent domain taking. 6/27/2019 Clint C. Becraft, MAI (Date Inspected) Attachment 3, Page 66 of 79 Comparable Sales Duncan & Brown SALE 3 Location: 6th Avenue and Chambers Street Eugene, Lane County, Oregon Assessor ID: Map 17-04-36-12-012300, 12400, 12500, 12600, 12700 & 12800 Transaction— Grantor: Richard M. G. Scott Family Trust Grantee: LTE- 1642 W. 6th Ave., LLC Date: November 15, 2018 Recording: 2018-53213 Sale Price: $796,040 Terms: Cash to Seller Real Estate— Land Area: 40,075 square feet, or 0.92 acre Zoning: C-2, Community Commercial Unit of Comparison— Price/SF: $19.86 Confirmation: Gary Martin, CCIM, broker, C.W. Walker & Associates. Attachment 3, Page 67 of 79 Comparable Sales Duncan & Brown Property Description The property is a 0.92-acre commercial site located at the southeast corner of West 6th Avenue and Chambers Street. The site is a rectangular one-half of a city block with 140 feet of frontage on Fillmore Street, 275 feet of frontage on West 6th Avenue and 140 feet of frontage on Chambers Street. The property also has access to West 6th Alley. All utilities are available to the site. The western portion of the property was previously improved with a small motel that was removed a few years ago. The remainder of the parcel was used as a vehicle towing and storage yard; much of the evidence of past usage of the lot has been removed. The property was purchased by an investor and is being marketed for development. The property is listed as a build-to-suit or available for a ground lease at $5,000 per month. The proposed lease amount equates to a land value of approximately $25.00 per square foot. I consider this sale representative of the market. This sale is not a sale of a remainder property from a former right-of-way or other eminent domain taking. 12/11/2019 Clint C. Becraft, MAI (Date Inspected) Attachment 3, Page 68 of 79 Comparable Sales Duncan & Brown SALE 4 Location: 1834 5th Street and 400-450 Q Street Springfield, Lane County, Oregon Assessor ID: Map 17-03-26-24-02200, 2300, 2400 & 2500 Transaction— Grantor: Jodi Marie Strausbaugh and Hamid Madani Grantee: PRP, Inc. Date: October 20, 2017 Recording: 2017-52614 and 2017-52615 Sale Price: $1,200,000 Terms: Cash to Seller Real Estate— Land Area: 57,935 square feet, or 1.33 acres Zoning: CC, Community Commercial Unit of Comparison— Price/SF: $20.71 Confirmation: Gary Martin, CCIM, broker, CW Walker & Associates Attachment 3, Page 69 of 79 Comparable Sales Duncan & Brown Property Description The property is zoned CC, Community Commercial with all utilities available. The site has access from Q Street and N. 5th Street and is located across the street from Fred Meyer and adjacent to several other complementary commercial and residential developments. Purchased for development with a Domino’s Pizza. Purchased in two transactions to assemble the development site. I consider this sale representative of the market. This sale is not a sale of a remainder property from a former right-of-way or other eminent domain taking. 3/19/2019 Clint C. Becraft, MAI (Date Inspected) Attachment 3, Page 70 of 79 Comparable Sales Duncan & Brown SALE 5 Location: 3663 Gateway Street Springfield, Lane County Assessor ID: Map 17-03-15-32, Tax Lot 1000 & 17-03-15-33, Tax Lot 1800 Transaction— Grantor: Weston Investment Co. LLC Grantee: Roseburg Forest Products Co. Date: April 2017 Recording: 2017-017714 Sale Price: $1,117,523 Terms: Cash to Seller Real Estate— Land Area: 67,082 square feet, or 1.54 acres Zoning: C-C, Community Commercial Unit of Comparison— Price/SF: $16.66 Confirmation: Seller, Weston Investment Company. Attachment 3, Page 71 of 79 Comparable Sales Duncan & Brown Property Description Sale of two adjacent tax lots with a combined area of 1.54 acres. All utilities are available to the site. The buyer owns an office building across the street and will use this property for additional parking area. I consider this sale representative of the market. This sale is not a sale of a remainder property from a former right-of-way or other eminent domain taking. 6/16/2017 Clint C. Becraft, MAI (Date Inspected) Attachment 3, Page 72 of 79 APPRAISAL SPECIFICATIONS TO: Prospective Appraiser Contracted by the City of Springfield DATE: 01/08/2020 FROM: Steve Eck Senior Property Agent Oregon Department of Transportation 4040 Fairview Industrial Dr. SE Salem, OR 97302-1142 File No: PM220A-006 Name: Sunset Investments Section: Beltline at I-5 Interchange Highway: I-5 County: Lane The following are the specifications upon which your appraisal of the property herein described is to be based. Any assumptions or limiting conditions contrary to these specifications are null and void. (1)Format: The appraisal report is to be submitted on forms supplied by or in the format specified by the State Department of Transportation in “The Guide to Appraising Real Property”. It appears that the most logical form to use is: Full detailed appraisal - Report Form 20 or- Narrative Report (2)Description: The appraisal is to be based precisely on the areas specified in Property Description - Exhibit “A”, dated 11/27/2019. (3)Subject Property Description and Documentation. Photos, sketches, plot plans and other descriptive material depicting the subject property including the improvements thereon. (4)Appraiser is to determine and address the property’s Highest and Best Use through consideration of the property’s assemblage to the most appropriate adjoining property(s). (5)Existing easements and/or other encumbrances (both of record and observed) and their effect on the value of the property are to be addressed by the appraiser. (6)Access: Access is completely restricted to Beltline Highway and Gateway Street. (7)Valuation Approach. Unless specified otherwise below, the valuation of the subject shall be based upon the Market Data Approach only. If utilization of an approach not specified will provide significant substantiation for the final conclusion of value, or if there is insufficient comparable market data available to establish a reliable indication of value by exclusive use of the market approach, the State Property Management Section should be consulted. Arrangements should then be made to obtain a modification of the appraisal specifications. (8)Documentation Standards. The level of documentation shall be in compliance with Chapter 5 of the Oregon Department of Transportation Right of Way Manual and the Oregon Department of Transportation “Guide to Appraising Real Property”. Failure to meet these criteria is grounds for rejection of the appraisal. (9)Due Date. To be determined by contract administrator: Courtney Griesel, Economic Development Director, City of Springfield. (10)Special Conditions. The following special conditions apply to the subject property and are to be specifically addressed in the appraisal report: 1) Appraiser is to value the property as ‘clean, as per the Oregon Department of Environmental Quality residential exposure criteria’. 2) Appraiser is to value the parcel as ‘bare land with no improvements’. 3) Appraiser is to consider the parcel as a ‘legal lot of record’ as noted in the attached Statement of Conformance’. 4) ODOT is to be included as an intended user of the appraisal report. (11)Compliance Certification. Sign a copy of these specifications and attach it to the original of your report as an acknowledgement that your appraisal has been made in accordance with the above specifications. I hereby represent that this assignment has been completed, the arithmetic checked, and the report submitted herewith in accordance with the foregoing specifications. I certify that I have no direct or indirect, present or contemplated future personal, financial or family interest in the subject property, nor will I in any manner benefit from the appraisal thereof such as to constitute a conflict of interest. I further agree to disclose any personal interest that I have, or that I later acquire, in any other properties within the zone of immediate influence of the highway project involved until such time as that project has been completed. Date Appraiser 2/7/2020 Attachment 3, Page 73 of 79 Attachment 3, Page 74 of 79 212+20 SKETCH MAP S33°23'31"E65.48'N87°59'11"W 138.34'S87°58'13"E 84.94'98.50' 98.50' P.O.B. LOT 2 S.W. COR WESTERLY LINE BLOCK 2 SOUTHERLY LINE BLOCK 2S6°04'45"E 84.54'PUERTAO.D.O.T. PROPERTY TO BE SOLD - 33,477 Ft | PRELIMINARY AND MAY BE SALE. THE LINES SHOWN ARE PROPOSED SURPLUS PROPERTY THIS DRAWING SHOWS A 13098 Ft | 20379 Ft | S0°23'17"W 125.63' N2°00'49"E 262.66' ACCESS CONTROL LINE"BL" {OREGON DEPARTMENT OF TRANSPORTATION Beltline at I-5 Interchange Section See Drawings 1R-3-1669 & 11B-3-15Proposed Sale Lane County Beltline Highway 6709002A 1" = 50' J# 16-9821717 O.D.O.T. Instr. No. 1999099025 "BL" 360+00 November, 2019 ENGINEERING RIGHT OF WAY Section Highway County Purpose Scale Date File SEC. 22, T. 17 S., R. 3 W., W.M.BELTLINE HIGHWAYGATEWAY ST. Attachment 3, Page 75 of 79 FILE ADDENDUM File 6709002A (NOT to be included with Exhibit A) Drawing 1R-3-1669 & 11B-3-15 Mike Fallert, PLS – ODOT 11/27/2019 Beltline at I-5 Interchange Section Beltline Highway Lane County Non-Throughway O.D.O.T. Sale Parcel access language: Access restricted to highway (Beltline Highway) and restricted to Gateway Street. This parcel lies within the NW¼ of Section 22, T 17 S, R 3 W, W.M. This parcel lies within tax lots 17032220-1200 & 1300 of Lane County. Remainder: 7985 square feet, more or less, of Lots 1 and 2 lie within active right of way of the Beltline Highway and Gateway Street and are not a part of this sale. [Note: Remainder area is all of grantor’s property lying outside any fee takings. All easements being acquired are included within the remainder area] (EXHIBIT A - NEXT PAGE) Attachment 3, Page 76 of 79 Attachment 3, Page 77 of 79 Duncan & Brown C LINT C. B ECRAFT, MAI Qualifications PROFESSIONAL DESIGNATIONS MAI – Appraisal Institute 2013 APPRAISAL EDUCATION Appraisal Institute 7 Hour Equivalent USPAP Update Course 2020 Business Practices and Ethics 2019 Uniform Appraisal Standards for Federal Land Acquisitions: Practical Applications 2017 Valuation of Conservation Easements 2015 Advanced Concepts & Case Studies 2011 General Appraiser Report Writing and Case Studies 2011 Eminent Domain and Condemnation 2010 Rates and Ratios 2010 Marshall & Swift Commercial Cost Training 2010 Small Hotel/Motel Valuation 2008 Appraising Convenience Stores 2008 Real Estate Finance, Value and Investment Performance 2007 Apartment Appraisal (Course 330) 2006 Advanced Income Capitalization (Course 510) 2005 Highest and Best Use and Market Analysis (Course 520) 2005 Basic Income Capitalization (Course 310) 2003 State of the Valuation Profession 2001 Foundations of Real Estate Appraisal 1993 Appraising the Single-Family Residence 1993 College Courses Real Estate Taxation and Exchange, Lane Community College 2002 Real Estate Investments, Lane Community College 2001 Real Estate Appraisal II, Chemeketa Community College 1994 Real Estate Law, Real Estate School of Oregon 1992 Real Estate Finance, Real Estate School of Oregon 1992 Real Estate Practice, Real Estate School of Oregon 1992 Continuing Education Courses Eminent Domain, The Seminar Group 2019 Board of Property Tax Appeals Training, Oregon Department of Revenue 2004 Magistrate Training, Oregon Department of Revenue 2004 Non-USPAP Regulatory Compliance, Bob Keith Appraiser Seminars 2004 Model Appraisal Report, Oregon Department of Revenue 2002 Real Estate Law, American College of Real Estate 2000 Mass Appraisal Principles, Oregon Department of Revenue 2000 Introduction to Review Appraisal, McKissock Data Systems 1998 LICENSES Certified General Appraiser – State of Oregon, 2006 Certificate No. C000856 Licensed Residential Appraiser – State of Oregon, 1996-2006 License No. L000980 Attachment 3, Page 78 of 79 Clint C. Becraft, MAI Qualifications page 2 Duncan & Brown FORMAL EDUCATION Associate of Arts Degree 1998 Lane Community College Eugene, Oregon PROFESSIONAL EXPERIENCE General Appraiser 2006 – Present Duncan & Brown Real Estate Analysts Appraiser Assistant 2005 – 2006 Duncan & Brown Real Estate Analysts General/Residential Appraiser 2000 – 2005 Lane County Department of Assessment & Taxation Residential Appraiser 1999 – 2000 Becraft Appraisal Service Residential Appraiser 1996 – 1999 R. H. Timpe Real Estate Appraisers Appraiser Assistant 1994 – 1996 R. H. Timpe Real Estate Appraisers Attachment 3, Page 79 of 79