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WESTGATE DRIVE IMPROVEMENT PROJECT PARCELS 2 & 41 N/L OF WINDSOR DRIVE, WEST OF CLARENDON DRIVE DENTON, TEXAS 76207 CBRE GROUP, INC. FILE NO. CB25US013550-3 HALFF ASSOCIATES, INC. CBRE VALUATION & ADVISORY SERVICES APPRAISAL REPORT © 20 CBRE, Inc. VALUATION & ADVISORY SERVICES 500 West 2nd Street, Suite 1700 Austin, TX 78701 T 512-499-4900 F 512-499-4999 www.cbre.com March 18, 2025 Mr. Mark Janicki HALFF ASSOCIATES, INC. 1201 N Bowser Rd Richardson, Texas 75081 RE: Appraisal of: Westgate Drive Improvement Project: Parcels 2 & 41 N/L of Windsor Drive, West of Clarendon Drive Denton, Denton County, Texas CBRE, Inc. File No. CB25US013550-3 Dear Mr. Janicki: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. The analysis is presented in the following appraisal report. The subject is a 27.2600-acre (1,187,315 sq. ft.) tract of vacant land located along the north line of Windsor Drive, west of Clarendon Drive in Denton, Texas. The site is improved with an oil and gas well-site and related site improvements. As such, our valuation is limited to the land and impacted site improvements. The purpose of this assignment is to develop an opinion of market value of the fee simple interest in the property and the recommended compensation for Parcel 2 which includes a right of way fee acquisition that consists of 0.1355 acre (5,902 SF) and a temporary construction easement located along the southern property line/W. Windsor Drive frontage. Parcel 41 includes a right of way fee acquisition that consists of 0.5216 acre (22,722 SF), a drainage easement that consists of 0.1163 acre (5,065 SF) and a slope easement that consists of 0.0052 acre (225 SF) along with a temporary construction easement located along the eastern property line/Westgate Drive frontage. The City of Denton intends to acquire this right of way and various easements for the Westgate Drive Improvement project. © 20 CBRE, Inc. Based on the analysis contained in the following report, the appraiser’s opinion of total compensation is concluded as follows: CONCLUDED MARKET VALUE Market Value Compensation Larger Parcel (Land and Affected Improvements)$1,313,359 Part(s) Being Acquired $43,974 Remainder Before Consideration of Damages $1,269,385 Remainder After Consideration of Damages $1,269,301 Net Damages or (Benefits) $84 Net Cost to Cure (Temporary Damages) $10,993 Temporary Easements $1,248 Total Compensation $56,299 The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The appraisal problem, as applied to the subject, is to determine the property’s market value. “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obligated to sell, and is bought by one who is under no necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within the reasonable future.” City of Austin v. Cannizzo, 267 S.W.2d 808 (Tex. 1954) The intended use and user of our report are specifically identified in our report as agreed upon in my contract for services and/or reliance language retained in the appraiser’s workfile. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). The report is not the appraisal but is the reporting of the appraisal to the named client or named intended user. Anyone else who attempts to rely on an appraisal report that is not a named user may be misled by the report. If you are not the client, you have no way of knowing if a later appraisal was done that replaces this report. Any changes will result in a different report date. © 20 CBRE, Inc. Accordingly, this document may no longer contain the appraisers’ opinions. Any subsequent reports, with a later report date, voids this document even to the client or intended user. It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Allison Jackson, SR/WA, R/W-AC Executive Vice President TX 1336636 G Phone: 512-499-4911 Fax: 512-499-4999 Email: cathy.thomas@cbre.com Vice President TX 1380451 G Phone: 817-806-1042 Fax: 817-335-6001 Email: allison.jackson@cbre.com © 20 CBRE, Inc. Subject Aerial 1 Subject Aerial with Acquisition Overlay Aerial View of Subject and Acquisitions The right of way acquisition (Parcel 41) is noted in green, the drainage easement acquisition (Parcel 41) is noted in blue, the slope easement acquisition (Parcel 41) is noted in purple, the two temporary construction easements are noted in pink, and the subject outline is noted in yellow. The image and outlines above are presented to merely assist the reader in visualizing the subject. They are not a legal representation or considered to represent a survey of the subject. SUBJECT TCE – Parcel 2 TCE – Parcel 41 ROW – Parcel 2 ROW – Parcel 41 Slope Esmt. – Parcel 41 Drainage Esmt. – Parcel 41 © 20CBRE, Inc. Certification 2 Table of Contents Subject Aerial with Acquisition Overlay ................................................................................ 1 Table of Contents ................................................................................................................ 2 Certification ........................................................................................................................ 3 Executive Summary ............................................................................................................. 4 Scope of Work ................................................................................................................... 11 Subject Photographs .......................................................................................................... 14 Zoning .............................................................................................................................. 28 Tax and Assessment Data .................................................................................................. 31 Highest and Best Use ........................................................................................................ 32 Appraisal Methodology ..................................................................................................... 34 Land Value ........................................................................................................................ 36 Reconciliation of Value – Whole Property ........................................................................... 43 Part to be Acquired ........................................................................................................... 44 Remainder After ................................................................................................................ 55 Land Value After – Remainder ........................................................................................... 58 Remainder After Value Conclusion .................................................................................... 60 Temporary Easements ....................................................................................................... 62 Summary of Compensation ............................................................................................... 65 Assumptions and Limiting Conditions ................................................................................ 66 ADDENDA A Land Sale Data Sheets B Project Informations C Qualifications © 20 CBRE, Inc. Certification 3 Certification We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 6. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Texas. 7. 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 and Standards of Professional Appraisal Practice of the Appraisal Institute. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. As of the date of this report, Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC has completed the continuing education program for Designated Members of the Appraisal Institute. 10.As of the date of this report Allison Jackson, SR/WA, R/W-AC has completed the Standards and Ethics Education Requirements for Associate Members of the Appraisal Institute. 11. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC and Allison Jackson, SR/WA, R/W-AC have made personal inspections of the property that is the subject of this report. 12. No one provided significant real property appraisal assistance to the persons signing this report. 13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 14. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC and Allison Jackson, SR/WA, R/W-AC have not provided 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 acceptance of this assignment. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Allison Jackson, SR/WA, R/W-AC TX 1336636 G TX 1380451 G © 20 CBRE, Inc. Executive Summary 4 Executive Summary INTRODUCTION CBRE File No.:CB25US013550-3 Date of the Report March 18, 2025 Effective Date February 17, 2025 Valuation Date Type Current Client City of Denton, its employees, agents, and assigns ROW Provider Name Halff Associates, Inc. Representative Mr. Mark Janicki Address 1201 N Bowser Rd Richardson, TX 75081 Parcel Number Parcels 2 & 41 Subject Location N/L of Windsor Drive, West of Clarendon Drive Denton, Denton County, TX Owner Carol Jean Gaede and Roland Edward Payne Legal Description 27.257 acres of land situated in the Francis Batson Survey, Abstract No. 43, City of Denton, Denton County, Texas Assessor IDs (Impacted Only)35018 Property Rights Appraised Fee Simple Estate subject to existing encumbrances Rights Being Acquired Fee Simple Right of Way Current Use of Subject Effectively Vacant Land Highest and Best Use As Vacant Residential As Improved The subject is effectively vacant land of Acquisition As part of the Whole Property Estimated Exposure Time 6 - 12 Months Buyer Profile Owner-User or Developer Whole Property 27.2570 AC 1,187,315 SF Fee Area 27.2570 AC 1,187,315 SF Part Acquired ROW - Parcel 2 0.1355 AC 5,902 SF ROW - Parcel 41 0.5216 AC 22,722 SF Drainage Easement - Parcel 41 0.1163 AC 5,065 SF Slope Easement - Parcel 41 0.0052 AC 225 SF Total Acquired in Fee 0.6571 AC 28,624 SF Total Acquired in Easement 0.1215 AC 5,290 SF Remainder Property Fee Area Remaining 26.4784 AC 1,153,401 SF Drainage Easement Remaining - Parcel 41 0.1163 AC 5,065 SF Slope Easement Remaining - Parcel 41 0.0052 AC 225 SF Remainder Total Size 26.7214 AC 1,163,981 SF TCE - Parcel 2 0.0125 AC 546 SF TCE - Parcel 41 0.1177 AC 5,128 SF LAND AREAS CONCLUDED MARKET VALUE Market Value Compensation Larger Parcel (Land and Affected Improvements)$1,313,359 Part(s) Being Acquired $43,974 Remainder Before Consideration of Damages $1,269,385 Remainder After Consideration of Damages $1,269,301 Net Damages or (Benefits) $84 Net Cost to Cure (Temporary Damages) $10,993 Temporary Easements $1,248 Total Compensation $56,299 © 20 CBRE, Inc. Executive Summary 5 SALIENT POINTS x The proposed right of way and easements are part of the Westgate Drive Improvement project which is connecting existing rights-of-way such as Bronco Way to Westgate Drive and expanding other rights-of-way such as Westgate Drive and West Windsor Drive. EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS An extraordinary assumption is defined as “an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” 1 A hypothetical condition is defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purposes of analysis.” 2 The use of extraordinary assumptions and hypothetical conditions may affect assignment results. 1 The Appraisal Foundation, USPAP 2 The Appraisal Foundation, USPAP © 20 CBRE, Inc. Executive Summary 6 SPECIAL ASSUMPTIONS •We have relied on public records for the whole land area and the client-provided survey for the acquisition areas utilized in this assignment and we assume these sizes to be correct. Absent this assumption, the value opinion could be different. • The site improvement measurements have been estimated utilizing the survey provided by the client and Google Earth measuring tools, and/or on-site measurements. We assume these estimates to be correct. Absent this assumption, the value opinion could be different. • A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use. • It is assumed that any underground improvements or other improvements which are not visible to the appraiser will not be impacted by the project. Any impact to such improvements will require modification of this analysis or separate agreement between the property owner and the client. • The valuation of subsurface mineral rights is outside the scope of this assignment. CBRE is aware that some properties in the area may benefit from the sub-surface mineral development. These potentially contain oil, natural gas and other resources which, if extracted, could contribute to the value of the property. We suggest the client contact an appropriate geological professional to determine the possible benefits, if any, of the subject’s subsurface rights. The value conclusion(s) presented in this report, specifically exclude any subsurface mineral rights. The assumption is made that the comparable sales utilized in this report excluded mineral rights and/or value attributed to mineral rights, unless otherwise stated in the Discussion/Analysis of Sales section(s). • The value of the remainder considers that the easement has been executed in acordance with the rights that were communicated to the appraiser at the commencement of this appraisal. Additionally, it considers the construction of the proposed pipeline is completed by the construction period provided by the client and any temporary workspace easement and additional temporary workspace easements have reverted back to the owner in the specified time provided by the client. This is common appraisal practice. • Certain elements of damage cannot be considered in the appraisal of the remainder although these elements may reduce the value of the remainder tract. This is in accordance with State v. Schmidt, 867 S.W. 2d 769, 781 (Tex. 1993), wherein the Supreme Court ruled that damages due to diversion of traffic, circuitry of travel, increased noise, reduced visibility to passers byes, and inconvenience due to construction activities are non-compensable and are thus not considered in the valuation of the remainder. See also Texas Property Code, Chapter 21, Subchapter C, Section 21.042 (d). EXTRAORDINARY ASSUMPTIONS: uncertain information; could alter conclusions HYPOTHETICAL CONDITIONS: contrary to what is known but used for purpose of analysis © 20 CBRE, Inc. Scope of Work 7 MARKET CONDITIONS Inflationary pressures began in 2022 and led to higher interest rates, slower job growth, and stress in banking systems. These factors increased the potential for constrained credit markets, negative capital value movements, and increased volatility in property markets. Nevertheless, recent cuts in the federal funds rate and the expectation of future reduction may help bolster future commercial real estate investment activity. However, the risk of near-term market volatility remains. The impacts on real estate markets will be uneven across property types and vary by location. It is important to note that the conclusions set out in this report are valid only as of the valuation date. MARKET VOLATILITY We draw your attention to a combination of inflationary pressures beginning in 2022, which led to higher interest rates during this period, slowing job growth, stress in banking systems, which have significantly increased the potential for constrained credit markets, negative capital value movements, and enhanced volatility in property markets. Beginning in September of 2024, the Fed lowered the federal funds rate by 100 basis points over the course of three FOMC meetings. Although the extent and timing of any future reductions are uncertain, two additional rate cuts are widely expected in 2025. While this may help bolster future commercial real estate investment activity, the risk of near-term market volatility remains. Experience has shown that consumer and investor behavior can quickly change during periods of such heightened volatility. Lending or investment decisions should reflect this heightened level of volatility and the potential for changing market conditions. It is important to note that the conclusions set out in this report are valid as of the valuation date only. Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events. © 20 CBRE, Inc. Scope of Work 8 IDENTIFICATION OF THE SUBJECT The subject is a 27.2600-acre (1,187,315 sq. ft.) tract of vacant land located along the north line of Windsor Drive, west of Clarendon Drive in Denton, Texas. The site is improved with an oil and gas well-site and related site improvements. As such, our valuation is limited to the land and impacted site improvements. The purpose of this assignment is to develop an opinion of market value of the fee simple interest in the property and the recommended compensation for Parcel 2 which includes a right of way fee acquisition that consists of 0.1355 acre (5,902 SF) and a temporary construction easement located along the southern property line/W. Windsor Drive frontage. Parcel 41 includes a right of way fee acquisition that consists of 0.5216 acre (22,722 SF), a drainage easement that consists of 0.1163 acre (5,065 SF) and a slope easement that consists of 0.0052 acre (225 SF) along with a temporary construction easement located along the eastern property line/Westgate Drive frontage. The City of Denton intends to acquire this right of way and various easements for the Westgate Drive Improvement project. IDENTIFICATION OF THE LARGER PARCEL The value of a property cannot be estimated without a determination of the property to be appraised. In some cases, multiple tax parcels are utilized together in one use or a larger tract of land may be legally, economically and physically divisible into smaller economic units. The three tests to determine the “larger parcel” to be valued in an appraisal are: x Unity of Title - control by a single entity, individual, or group. Title is largely a legal question. x Unity of Use - an integrated highest and best use separate from surrounding land. Multiple tracts can have the same use but be separate tracts, such as platted lots. Use is an economic question that is dependent upon supply and demand, availability of substitutes and other economic principles. x Proximity - contiguous tracts or proximate tracts that are used together. Subordinate to Unity of Use. In this case, the subject identified for valuation purposes of this assignment is 27.2570 acres, or 1,187,315 SF square feet of land, that is under the same owner and use. © 20 CBRE, Inc. Scope of Work 9 OWNERSHIP Based on research, the most recent conveyance was in 1989 and is not relevant for this analysis. To the best of my knowledge there has been no ownership transfers of the property during the previous three years. The subject is not known to be listed for sale or under contract. The summary of ownership information is listed in the table below. OWNERSHIP SUMMARY Current Owner:Carol Jean Gaede and Roland Edward Payne Date Purchased: May 18, 1989 Purchase Price: Not Disclosed Legal Reference Volume 2593, Page 217 County/Locality Name:Denton Pending Sale:No Change of Ownership - Past 3 Years No Compiled by CBRE OWNER CONTACT The appraisers established contact with the property owner, Mr. Roland Payne, who requested to accompany the appraiser on the inspection. Thus, Catherine A. Thomas, MAI, SRA, AI-GRS, R/W- AC conducted an inspection on February 17, 2025, accompanied by the property owner and Gentry Hubbard, Halff Associates, Inc. Allison Jackson, SR/WA, R/W-AC inspected from the right of way and surrounding public areas at a later date. OWNER AND CONTACTS Owner Name Carol Jean Gaede and Roland Edward Payne Owner Address 2701 Westgate Drive Owner City, State, Zip Denton, Texas 76207-1316 Primary Contact Roland Edward Payne Contact Phone (940) 597-0910 Secondary Contact Carol Jean Gaede Contact Phone (336) 749-1498 Occupancy Vacant Compiled by CBRE © 20 CBRE, Inc. Scope of Work 10 FURNITURE, FIXTURES AND EQUIPMENT (PERSONAL PROPERTY) There is a sign located within the proposed acquisition area. This sign (shown below) would be considered personal property; therefore, it has not been valued in our analysis herein. © 20 CBRE, Inc. Scope of Work 11 Scope of Work APPRAISAL ASSIGNMENT Guidance - The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), USPAP reporting Standard 2-2, and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. - Texas Property Code, Title 4, Chapter 21, Subchapter A Project Name - Westgate Drive Improvement Project Intended User - This appraisal is to be used by the City of Denton, its employees, agents and assigns. This project is administered under an agreeement between the City of Denton and Halff Associates, Inc., and no other user may rely on our report unless as specifically indicated in the report. Intended Use This appraisal intended to estimate compensation for the proposed acquisition. Market Value Definition - “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obligated to sell, and is bought by one who is under no necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within the reasonable future.” City of Austin v. Cannizzo, 267 S.W.2d 808 (Tex. 1954) CLIENT The client is the City of Denton through a subcontract with Halff Associates, Inc. INTEREST APPRAISED INTERESTS APPRAISED 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. Dictionary of Real Estate Appraisal, Seventh Edition, 2022, page 73. Easement The right to use another’s land for a stated purpose. Dictionary of Real Estate Appraisal, Seventh Edition, 2022, page 58 Temporary Easement $QHDVHPHQWJUDQWHGIRUDVSHFLÀFSXUSRVHDQGDSSOLFDEOHIRUDVSHFLÀF time period. A construction easement, for example, is terminated after the construction of the improvement and the unencumbered fee interest in the land reverts to the owner. Dictionary of Real Estate Appraisal, Seventh Edition, 2022, page 189 © 20 CBRE, Inc. Scope of Work 12 The interest appraised includes the value of the rights to the fee owner, considering existing easements, encumbrances, and restrictions. The value of any mineral estate is excluded from this valuation, unless otherwise stated. Extent to Which the Property is Identified The property is identified through the following sources: x postal address x assessor’s records x legal description Extent to Which the Property is Inspected The extent of the inspection included a personal site visit with photography. Inspections were conducted as follows: Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC personally conducted an inspection on February 17, 2025 with the property owner, Mr. Roland Payne and Gentry Hubbard, Half and Associates, Inc., present. Allison Jackson, SR/WA, R/W-AC conducted an inspection at a later date. Effective Date The effective date is the most recent date of inspection. Type and Extent of the Data Researched CBRE reviewed the following: x deed records x applicable tax data x zoning requirements x flood zone status x demographics x comparable data Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section. © 20 CBRE, Inc. Scope of Work 13 Data Resources Utilized in the Analysis DATA SOURCES Item: Source(s): Site Data Whole Property and Acquisition Size Public Records and Client-Provided Survey Remainder Size Appraiser Calculations Floodplain FEMA Zoning City of Denton Easements Deed Records, Title Commitment and Client-Provided Survey Compiled by CBRE © 20 CBRE, Inc. Subject Photographs 14 Subject Photographs View looking north at the subject and proposed Parcel 2 acquisitions from near the southern boundary of the subject View looking north at the recessed entrance from the interior of the site View looking west along the proposed right of way acquisition (Parcel 2) View looking east along the proposed right of way acquisition (Parcel 2) W. Windsor Drive right-of-way, facing west from southern boundary of the subject W. Windsor Drive right-of-way, facing west from the southern boundary of the subject © 20 CBRE, Inc. Subject Photographs 15 View of the north end of the site from near the eastern property boundary View of the low-lying area in the northern portion of the site from near the eastern property boundary View looking southwest at the subject from near the northeast corner of the site View looking northwest at the subject from near the northern southeast corner of the site Westgate Drive right-of-way, facing south at the eastern boundary of the subject Westgate Drive right-of-way, facing north at the eastern boundary of the subject © 20 CBRE, Inc. Area Analysis 16 Area Analysis POPULATION Compiled by CBRE; Source: Esri The subject is located in Denton County. Key information about the area is provided in the following tables. The area has a population of 1,002,553 and a median age of 35, with the largest population group in the 30-39 age range and the smallest population in the 80+ age range. Population has increased by 340,383 since 2010, reflecting an annual increase of 3.24%. Population is projected to increase by an additional 106,120 by 2028, reflecting 2.03% annual population growth.662,170 1,002,553 1,108,673 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2010 2023 2028 POPULATION BY YEAR 0 50,000 100,000 150,000 200,000 -79 80+ AREA POPULATION BY AGE Subject © 20 CBRE, Inc. Area Analysis 17 INCOME EDUCATION EMPLOYMENT Compiled by CBRE; Source: Esri The area includes a total of 549,676 employees and has a 3.2% unemployment rate. The top three industries within the area are Prof/Scientific/Tech Services, Health Care/Social Assistance and Retail Trade, which represent a combined total of 32% of the population. The area features an average household income of $136,351 and a median household income of $101,372. Over the next five years, median household income is expected to increase by 7.7%, or $1,562 per annum. A total of 51.1% of individuals over the age of 24 have a college degree, with 34.6% holding a bachelor's degree and 16.5% holding a graduate degree. $101,372 $109,180 $96,000 $98,000 $100,000 $102,000 $104,000 $106,000 $108,000 $110,000 2023 2028 MEDIAN INCOME BY YEAR 34.6% 16.5% 48.9% POPULATION BY DEGREE Bachelor's Degree Graduate Degree Other 0% 2% 4% 6% 8% 10% 12% Other Services (excl Publ Adm) Construction Transportation/Warehousing Accommodation/Food Services Manufacturing Finance/Insurance Educational Services Retail Trade Health Care/Social Assistance Prof/Scientific/Tech Services CONCLUSION Denton County has an average growth rate compared to similar markets in the State of Texas with a population growth average of 3.24% since 2010. The Denton County area is expected to continue its positive performance and continued growth. © 20 CBRE, Inc. Neighborhood Analysis 18 Neighborhood Analysis LOCATION The subject is located in Denton County, Texas, in an area known as the DFW Metroplex. BOUNDARIES The neighborhood boundaries are detailed as follows: North: Denton city limits South: Denton city limits East: Denton city limits West: Denton city limits LAND USE Land uses are predominately commercial and residential in the vicinity of the subject, with industrial and mixed uses nearby. Larger uses in the area include auto dealers, Medical City Denton, and the University of North Texas. Additional demand generators for the City of Denton Subject © 20 CBRE, Inc. Neighborhood Analysis 19 include Texas Woman’s University, Peterbilt Motos, Texas Health Presbyterian Hospital Denton, Josten’s, Inc., and Sally Beauty Supply, Inc., among others. Rayzor Ranch Rayzor Ranch Town Center is a newer area of commercial development located at the southeast quadrant of Interstate Highway 35 and U.S. Highway 380 in the northwestern portion of the neighborhood. This area includes approximately 600,000 square feet of open-air shopping, dining and entertainment. In addition to retail stores such as Alamo Draft House Cinema, Cotton Patch Café, Houlihan’s Restaurant and Bar and Andy B’s Bowl Social, this area includes outdoor gathering spaces and an amphitheater with the design inspired by historic regional urban architecture. The Rayzor Ranch Market Place is located in the northeast quadrant of Interstate 35 and U.S. Highway 380 includes a concentration of retail development. Tenants include Walmart, PetCo, Sam’s Club, Kohl’s, Ross Dress for Less, JoAnn Fabric and Craft, Tuesday Morning, Marshalls, Famous Footwear and others. University of North Texas Noted as one of the nation’s largest universities, University of North Texas (UNT) currently offers 106 bachelor’s, 88 master’s and 36 doctoral programs. The UNT main campus is located in the southwestern portion of the subject neighborhood. However, the 550,000 square foot University of North Texas Discovery Park (formerly Research Park) is located north of the main campus in Denton and in the northwest potion of the subject’s neighborhood. The facility houses leading edge research projects in biomedicine, nanotechnology, materials composition and others. It is also home to the UNT School of Engineering, supports teaching and research of STEM (science- technology-engineering-mathematics) disciplines and partners in regional economic development initiatives that promote technology innovation in North Texas. The most recent certified enrollment as of the Fall of 2020 was 40,653 students, the fifth largest in the State of Texas. In addition, for the December 2019, May 2020 and August 2020 graduations, the university awarded 8,030 bachelor’s degrees, 1,930 master’s degrees, and 311 doctoral degrees. The five-year average for degrees awarded at the university is 9,448. Texas Woman’s University Texas Women’s University is also located in the central portion of the subject neighborhood. In the U.S. News and World Report's 2013 Best Colleges issue, TWU was ranked in the top three institutions in the state and ten nationally for universities that have the most diverse student populations. TWU’s graduate program in Physical Therapy is the only physical therapy program in Texas that is consistently ranked as a top Physical Therapy program by U.S. News and World Report. Finally, TWU is among the nation’s leading providers of healthcare professionals and produces more nurses than any Texas program. © 20 CBRE, Inc. Neighborhood Analysis 20 Golden Triangle Mall The Golden Triangle Regional Mall is the largest regional mall in the area and is located at the northeast quadrant of Interstate Highway 35 and Loop 288. This regional mall features approximately 75 stores and is anchored by Macy’s, JCPenney, Barnes & Noble, Dillard’s and H&M. This mall features a food court, WIFI hotspots, and children’s play area. Also, within the Golden Triangle Mall area is the Denton Community Theatre, which presents dozens of productions throughout the year. Finally, Golden Triangle Mall also includes Silver Cinemas, which is a full-service movie theater with five screens. GROWTH PATTERNS Growth patterns have occurred primarily along area arterials such as Interstate Highway 35. Growth patterns have also occurred along primary commercial thoroughfares such as SR North Loop 288, Teasley Lane, Mingo Road, South Woodrow Lane, South Bell Avenue, North Elm Street, East McKinney Street, US Highway 380, North Locust Street, East Sherman Drive, and Carroll Boulevard. Retail development in the subject neighborhood is comprised primarily of community retail centers located at the intersections of major neighborhood thoroughfares. ACCESS Primary access to the subject neighborhood is provided by Interstate Highway 35. Interstate Highway 35 is primarily a four-lane, variable width right-of-way, traversing the neighborhood in a north/south and east/west direction. This arterial splits into Interstate Highway 35 East and Interstate Highway 35 West in the southern Denton area, providing a direct route to both the Dallas and Fort Worth Central Business Districts. Interstate Highway 35 West connects the subject neighborhood with the Fort Worth Central Business District, while Interstate Highway 35 East connects the subject neighborhood with the Dallas Central Business District. The SR North Loop 288 encircles the eastern portion of the neighborhood and intersects with Interstate Highway 35 in the southern portion of the subject neighborhood. Additional major thoroughfares include Teasley Lane, Mingo Road, South Woodrow Lane, South Bell Avenue, North Elm Street, East McKinney Street, U.S. Highway 380, North Locust Street, East Sherman Drive, and Carroll Boulevard. © 20 CBRE, Inc. Neighborhood Analysis 21 DEMOGRAPHICS Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table: N/L of Windsor Drive, West of Clarendon Drive Denton, TX 76207 Population 2028 Total Population 3,989 44,829 103,176 1,108,673 2023 Total Population 2,843 40,798 94,431 1,002,553 2010 Total Population 1,174 31,028 76,890 662,170 2000 Total Population 925 26,935 66,639 432,069 Annual Growth 2023 - 2028 7.01% 1.90% 1.79% 2.03% Annual Growth 2010 - 2023 7.04% 2.13% 1.59% 3.24% Annual Growth 2000 - 2010 2.41% 1.42% 1.44% 4.36% Households 2028 Total Households 1,949 18,254 41,310 405,119 2023 Total Households 1,426 16,608 37,830 364,866 2010 Total Households 518 12,250 29,409 240,132 2000 Total Households 406 10,930 25,596 158,504 Annual Growth 2023 - 2028 6.45% 1.91% 1.78% 2.12% Annual Growth 2010 - 2023 8.10% 2.37% 1.96% 3.27% Annual Growth 2000 - 2010 2.47% 1.15% 1.40% 4.24% Income 2023 Median Household Income $85,068 $58,816 $54,601 $101,372 2023 Average Household Income $101,891 $76,563 $74,985 $136,351 2023 Per Capita Income $42,215 $31,246 $30,210 $49,653 2023 Pop 25+ College Graduates 905 10,510 22,471 334,214 Age 25+ Percent College Graduates - 2023 43.7% 41.7% 40.8% 51.1% Source: ESRI SELECTED NEIGHBORHOOD DEMOGRAPHICS Denton County1 Mile Radius 3 Mile Radius 5 Mile Radius CONCLUSION The subject is well-positioned within the central portion of Denton County. The population within the subject neighborhood has shown positive growth over the past several years. The outlook for the neighborhood is relatively stable performance with moderate improvement over the next several years. © 20 CBRE, Inc. Site Analysis 22 TAX MAP Source: Denton Central Appraisal District Subject © 20CBRE, Inc. Site Analysis 23 FLOOD PLAIN MAP Source: FEMA N Subject © 20 CBRE, Inc. Site Analysis 24 SITE ANALYSIS The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY AND ANALYSIS Physical Description Gross Site Area 27.2570 Acres 1,187,315 Sq. Ft. Primary Road Frontage Westgate Drive 699 Feet Secondary Road Frontage W. Windsor Drive 106 Feet Shape Topography Zoning District Flood Map Panel No. & Date 48121C0360G April 18, 2011 Flood Zone Zone X (Shaded) Ingress/Egress Points Comparative Analysis Access Visibility Functional Utility Traffic Volume Adequacy of Utilities Landscaping Drainage Utilities Availability Water Yes Sewer Yes Natural Gas Yes Electricity Yes Telephone Yes Other Yes No Unknown Detrimental Easements X Encroachments X Deed Restrictions X Source: Various sources compiled by CBRE Rating Average Average Average Irregular Generally Level R2 - Residential W. Windsor Drive Average City of Denton Atmos Energy Various Various Average Average Provider City of Denton Appears adequate © 20 CBRE, Inc. Site Analysis 25 SHAPE AND FRONTAGE The subject exhibits an L-shape and has frontage along Westgate Drive which comprises the eastern property line and W. Windsor Drive which comprises the southern property line. INGRESS/EGRESS Ingress and egress are available to the site via gates on Westgate Drive and a driveway to W. Windsor Drive. Westgate Drive, at the subject, is a north/south undivided interior thoroughfare with one lane of traffic in each direction. Street improvements include asphalt paving and open ditch drainage. Street parking is not permitted. W. Windsor Drive, at the subject, is an east/west divided secondary arterial (based on City of Denton mobility maps) with two lanes of traffic in each direction. Street improvements include concrete paving, concrete curbing, concrete and sidewalks. Street parking is not permitted. TOPOGRAPHY AND DRAINAGE The subject is generally level. The topography of the subject is not seen as an impediment to the development of the property. During inspection of the subject, no drainage problems were observed, and it is assumed that none exist. FLOOD ZONE We are not experts in determining flood zone elevations and we were not provided with a flood zone certificate for the subject. The reader is encouraged to consult with a professional engineer to determine the subject's actual flood zone status. Based on a review of FEMA Flood Panel No. 48121C0360G, the property appears to be in Zone X (Shaded), which is a low risk area. Zones B and X (shaded) are areas of 0.2-percent-annual-chance floodplain, areas of 1-percent- annual-chance (base flood) sheet flow flooding with average depths of less than 1 foot, areas of base flood stream flooding with a contributing drainage area of less than 1 square mile, or areas protected from the base flood by levees. No Base Flood Elevations (BFEs) or depths are shown in this zone, and insurance purchase is not required. EASEMENTS AND ENCROACHMENTS Based on the title commitment and survey provided by the client, there are multiple public utility easements and public drainage easements traversing the site. These are considered typical easements; thus, they are not considered to impact the marketability or the highest and best use. There are no known easements or encroachments impacting the subject that are considered to affect the marketability or highest and best use. © 20 CBRE, Inc. Site Analysis 26 COVENANTS, CONDITIONS AND RESTRICTIONS Based on the title commitment, there are no known covenants, conditions or restrictions impacting the subject that are considered to affect the marketability or highest and best use. ENVIRONMENTAL ISSUES - SITE CBRE, Inc. is not qualified to detect the existence of any potentially hazardous materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other potentially hazardous construction materials on or in the improvements. The existence of such substances may affect the value of the property. No hazardous substances which would affect value were noted by the appraiser (see Assumptions and Limiting Conditions). CONCLUSION The subject is suitable for uses commensurate with the surrounding neighborhood. The subject is well-located and has average visibility and access from roadway frontage. The size of the subject is typical for the area and there are no known detrimental uses in the immediate vicinity. There are no known factors which are considered to prevent the subject from development to its highest and best use, as vacant. © 20 CBRE, Inc. Improvements Analysis 27 IMPROVEMENTS ANALYSIS The subject is a 27.2600-acre (1,187,315 sq. ft.) tract of vacant land located along the north line of Windsor Drive, west of Clarendon Drive in Denton, Texas. The site is improved with an oil and gas well-site and related site improvements. As such, our valuation is limited to the land and impacted site improvements. The subject has a recessed entrance on the Windsor Drive frontage located ±82 feet from the existing property line. The recessed entrance (metal gates) is located outside the part to be acquired; however, after the proposed acquisition, the recessed entrance will now be located ± 27 feet from the new property line. In order for the property to function as optimally as before the acquisition in the remainder condition, the metal gates will need to be recessed ± 55 feet from the new property line so the recessed entrance will have the same depth after the proposed acquisition. Therefore, the recessed entrance and associated improvements are considered to have no contributory value to the land after the proposed acquisition and will be damaged in the remainder. Site improvements impacted by the partial acquisition area are presented in the following chart: IMPROVEMENT CONDITION RATINGS Improvement Condition Metal Gates - Parcel 2 ROW - Recessed Entrance 2 EA Average Gravel Paving - Parcel 2 ROW 1,162 SF Average 6-Strand Barbed Wire Fencing - S/L Parcel 2 ROW 216 LF Average 5-Strand Barbed Wire Fencing - E/L Parcel 41 ROW 678 LF Poor Wire Mesh Fencing - N/L Parcel 41 ROW 23 EA Average Metal Gates - N/L Parcel 41 ROW 1 EA Average Metal Gates - E/L Parcel 41 ROW 3 EA Average Compiled by CBRE The site improvement measurements have been estimated utilizing the survey provided by the client, Google Earth measuring tools, and/or on-site measurements. The value of the subject’s site improvements located in the part to be acquired only have been added to the land value in the cost approach. © 20 CBRE, Inc. Zoning 28 Zoning The following chart summarizes the subject’s zoning summary. ZONING SUMMARY Current Zoning Legally Conforming Uses Permitted Zoning Change Future Land Use Category Category Zoning Requirement Existing Conditions Minimum Lot Size 16,000 Sq. Ft. Minimum Lot Width 80 Feet Lot Depth 100 Feet Maximum Height 40 Feet Minimum Setbacks Front Yard 20 Feet Street Side Yard 10 Feet Interior Side Yard 10 Feet Rear Yard 10 Feet Maximum Bldg. Coverage 40% Source: Planning & Zoning Dept. R2 - Residential N/A - Land The R2 district is intended to preserve existing single-family neighborhoods. The R2 district is intended to ensure that any new development promotes walkability, access to parks, open space, and recreation amenities and is compatible with existing land uses and development patterns. The R2 district can be used as a transitional district between large lot residential neighborhoods and medium lot residential neighborhoods. Not Likely Low Residential ANALYSIS AND CONCLUSION The above information is based upon publicly-available data and is not a substitute for a site- specific development plan that has been reviewed and approved by the municipality. Additional information may be obtained from the appropriate governmental authority. For purposes of this appraisal, CBRE has assumed the information obtained is correct. © 20 CBRE, Inc. Zoning 29 ZONING MAP Source: City of Denton Subject © 20CBRE, Inc. Zoning 30 FUTURE LAND USE MAP Source: City of Denton Subject © 20CBRE, Inc. Tax and Assessment Data 31 Tax and Assessment Data The following summarizes the local assessor’s estimate of the subject’s market value, assessed value, and taxes, and does not include any furniture, fixtures or equipment. TAX INFORMATION Assessor Account ID(s)35018 Tax Year 2024 Assessed Land Acres 27.257 AC Assessed Land SF 1,187,315 SF Assessor Land Value $1,964,888 Assessor Land Value/SF $1.65 Tax Rate 1.930189 Total Taxes $37,926 Tax Exemption The subject benefits from a special use exclusion. Based on our analysis, the assessed land value appears to be above market value. The local Assessor’s methodology for valuation is fee simple market value. Under the Texas Property Tax Code, assessed value is supposed to represent 100% of market value via the use of all three approaches to value. However, this rarely happens. First, Texas is a non-disclosure state and the sales price is not on any public document and does not have to be divulged. In addition, the owners of the subject property have the ability to protest the subject’s valuation in any given tax year regardless of whether or not there is an increase. Notifications of preliminary assessed value as of January 1st are mailed in March and April and the Appraisal District has to be notified of a value protest by June 1. Tax rates, set by the individual taxing authorities, are determined in September of that year. CONCLUSION The total taxes for the subject have been estimated as $37,926 for the base year of our analysis, based upon an assessed value of $1,964,888 or $1.65 per square foot. The assessed value was stable from 2023 to 2024 after an increase of $1,623,978 from the 2022 assessed value. The property benefits from a special use exclusion of $1,962,898, which reduces the net appraised/assessed value to $1,990. For purposes of this analysis, CBRE, Inc. assumes that all taxes are current. © 20 CBRE, Inc. Valuation Analysis – Whole Property 32 Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: x legally permissible; x physically possible; x financially feasible; and x maximally productive. The highest and best use analysis of the subject is discussed below. AS IF VACANT Legal Permissibility As discussed previously, the subject is located within the City of Denton and is subject to the R-2 Residential zoning restrictions. According to the Future Land Use Map, the subject is located within the Low Residential designation. As noted previously, there are multiple utility and drainage easements traversing the site. These easements are considered typical easements; thus, they do not impact the marketability or highest and best use. There are no known easements or encroachments impacting the subject that are considered to affect the marketability or highest and best use. There are also no known covenants, conditions, or restrictions impacting the subject that are considered to affect the marketability or highest and best use. Physical Possibility The subject is adequately served by public utilities with water and wastewater available and has an adequate shape and size to be a separately developable site. The subject has average access and visibility. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Existing structures on similar sites within the subject neighborhood is additional evidence for the physical possibility of development. Financial Feasibility The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable and physically possible land uses versus the cost to create the uses. Consideration to existing land use trends has been given in determining feasible uses and only those uses that are physically possible and legally permissible are given further consideration. From a financially feasible perspective and given the Whole Property’s location, size, and the surrounding development, the financially feasible use for the Whole Property is for a residential use. © 20 CBRE, Inc. Valuation Analysis – Whole Property 33 Maximum Productivity - Conclusion Based on the information presented above and upon information contained in the market and neighborhood analysis, it is concluded that the highest and best use of the subject as vacant would be the development of a residential use. Analysis of the subject and its respective market characteristics indicate the most likely buyer, as vacant, would be an owner-user or developer. © 20 CBRE, Inc. Valuation Analysis – Whole Property 34 Appraisal Methodology In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Cost Approach The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties. Sales Comparison Approach The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons. Income Capitalization Approach The income capitalization approach reflects the subject’s income-producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis. Methodology Applicable to the Subject • CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The sales comparison approach for land is utilized to develop an opinion of land value because market participants rely on this method. The subject is valued as vacant land and so the cost approach is not applicable. The subject is valued as vacant land and so the sales comparison approach for improved property is not applicable. Being valued as vacant land, the income approach for improved property is not applicable. Furthermore, surface rights in this area are not purchased based on income production. • The 'summation method' for valuation of a partial acquisition is utilized, as is required in the State of Texas. Total compensation is estimated as the value of the partial acquisition, plus © 20 CBRE, Inc. Valuation Analysis – Whole Property 35 damages to the remainder (which may be offset by special benefits), plus any necessary costs to cure and temporary easements if they are part of the scope of the assignment. It is worth noting here that the fee simple interest of the subject property is appraised, and unified fee at that. This means that all interests and title are valued together. In reality, the leased fee valuation of the property may be different from the fee simple value because of the terms of existing leases. This appraisal follows the so-called unit rule which includes the valuation of all rights of any parties who may have an interest (such as tenants, life estate holders, remaindermen, leaseholders, etc.) in the subject as one. The exception is consideration of existing easement encumbrances. © 20 CBRE, Inc. Valuation Analysis – Whole Property 36 Land Value Based on the comparative analysis, the following chart summarizes the adjustments warranted to each comparable. A detailed description of each transaction is included in the addenda. LAND SALES ADJUSTMENT GRID Subject Comp No. 1 Comp No. 2 Comp No. 3 Comp No. 4 Grantor Dustin V. Devine Penny Lee Darby Martha A. Saldana and Belinda Saldana MLIP, LLC Grantee Ron Laningham and Elizabeth Laningham LNS Signs, Inc. 3 Farmers LLC Ernesto Navarrete Transaction Type Sale Sale Sale Sale Date of Sale Mar-22 Oct-24 Nov-23 May-23 Jul-22 Address N/L of Windsor Drive, West of Clarendon Drive N/L of Pecan Creek Road, East of FM 2164 Terminus of Darby Smith Road 4014 Seaborn Circle N/L of FM 1173, West of Barnett Road City, State Denton, TX Denton, TX Denton, TX Ponder, TX Krum, TX Gross Acres 27.2570 11.1800 14.5530 14.4540 31.2010 Gross Square Feet 1,187,315 487,001 633,929 629,616 1,359,116 Actual Sale Price $495,000 $650,000 $690,000 $434,700 Adjusted Sale Price 1 $500,000 $650,000 $690,000 $434,700 Unit Price Per SF $1.03 $1.03 $1.10 $0.32 Property Rights Conveyed Financing Conditions of Sale Market Conditions (Time) 8% 0% 0% 0% 0% Adjusted $/SF $1.03 $1.03 $1.10 $0.32 Location 10% 10% 10% 25% Size -10% -10% -10% Shape -5% -5% -5% -5% Frontage/Access 5% 5% 5% Zoning/Use Flood/Topography 20% Utilities 10% 10% 5% 5% Net Adjustment 10% 10% 5% 45% Indicated Unit Value $1.13 $1.13 $1.16 $0.46 Estimated Unit Value $1.10 Compiled by CBRE © 20 CBRE, Inc. Valuation Analysis – Whole Property 37 The following map summarizes the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda. SUMMARY OF COMPARABLE LAND SALES Actual Sale Adjusted Sale Size Size Price No. Property Location Type Date Zoning Price Price 1 (Acres) (SF) Per SF 1 N/L of Pecan Creek Road, East of FM 2164 Denton, TX 76207 Sale Oct-24 City of Denton ETJ $495,000 $500,000 11.1800 487,001 $1.03 2 Terminus of Darby Smith Road Denton, TX 76207 Sale Nov-23 City of Denton ETJ $650,000 $650,000 14.5530 633,929 $1.03 3 4014 Seaborn Circle Ponder, TX 76259 Sale May-23 City of Denton ETJ $690,000 $690,000 14.4540 629,616 $1.10 4 N/L of FM 1173, West of Barnett Road Krum, TX 76249 Sale Jul-22 Not Zoned $434,700 $434,700 31.2010 1,359,116 $0.32 Subject N/L of Windsor Drive, West of Clarendon Drive, Denton, Texas --- --- R2 - Residential --- --- 27.2570 1,187,315 --- 1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE Transaction © 20 CBRE, Inc. Valuation Analysis – Whole Property 38 DISCUSSION OF ADJUSTMENTS Based on the comparative analysis, the following discussion summarizes the adjustments warranted to each comparable. CONDITIONS OF SALE/FINANCING All sales were indicated to be cash-to-seller transactions or financed by a third party at market terms and none appeared to occur under duress. As such, no adjustments for cash equivalency were necessary. In addition, the sales reflected arm’s length transactions; therefore, no adjustments for conditions of sale were warranted. MARKET CONDITIONS The transactions occurred between July 2022 and October 2024. According to area brokers and analysis of land sales in this market, appreciation rates had been trending upward prior to Federal interest rate increases which began in March 2022. An upward adjustment at a rate of 8% per year has been applied until March 2022, with 0% growth thereafter. No market conditions adjustments were warranted. LOCATION Location can have a significant impact on value. All of the comparables are considered inferior with regard to location compared to the subject as they are located further from the path of development. Upward adjustments were warranted. SIZE Typically, there is an inverse relationship between unit price and size, as larger properties generally sell for less per square foot than smaller tracts. Comparables 1, 2, and 3 are adjusted downward for their smaller sizes compared to the subject. Comparable 4 is considered similar in size compared to the subject and no adjustment was necessary. SHAPE The subject exhibits an L-shape which is considered to restrict portions of the site. All comparables are considered superior with regard to shape and downward adjustments were warranted. FRONTAGE/ACCESS Comparables 1, 2 and 3 are considered inferior with regard to frontage/access due to subject having frontage along two roadways. Upward adjustments were warranted. Comparable 4 exhibits similar frontage/access and no adjustments were warranted. FLOOD/TOPOGRAPHY Comparable 4 is considered inferior with regard to flood/topography compared to the subject based on the flood encumbrance on the site. An upward adjustment was warranted. No other adjustments for flood/topography were warranted. © 20 CBRE, Inc. Valuation Analysis – Whole Property 39 ZONING/USE The subject is zoned for residential uses. All of the comparables are considered similar with regard to zoning/use compared to the subject and no adjustments were warranted. UTILITIES The subject has access to public water and wastewater. All comparables are inferior with regard to utility access compared to the subject as Comparables 1 and 2 lack access to public water and sewer while Comparables 3 and 4 lack access to public sewer. Upward adjustments were applied accordingly. CONCLUSION Based on the preceding analysis, each of the sales comparables is considered representative of the subject site subsequent adjustment. The adjusted sales indicate a range of approximately $0.46 per sf to $1.16 per sf, and demonstrate a mean and median of $0.97 per sf $1.13 per sf, respectively. Least consideration was given to Comparable 4 based on its inferior location and flood encumbrance. Comparables 1, 2 and 3 demonstrate a mean and median of $1.14 per sf and $1.13 per sf, respectively. In conclusion, a reconciled value slightly below the central tendency of the tighter range is reconciled for the subject in consideration of the specific location, zoning regulations, and frontage. The following table presents the valuation conclusion for the whole property. CONCLUDED LAND VALUE $ PSF SF Unrounded Total Fee Area $1.10 x 1,187,315 $1,306,047 = $1,306,047 Indicated Value:$1,306,047 Compiled by CBRE © 20 CBRE, Inc. Valuation Analysis – Whole Property 40 Cost Approach – Whole In estimating the replacement cost new for the subject, the following methods/data sources have been utilized (where available): x the comparative unit method, utilizing the Marshall Valuation Service (MVS) cost guide, published by Marshall and Swift, LLC; x the subject’s actual construction costs (where available); and x cost estimates from local contractors MARSHALL VALUATION SERVICE Direct Cost Salient details regarding the direct costs are summarized in the Cost Approach Conclusion at the end of this section. The MVS cost estimates include the following: 1. average architect’s and engineer’s fees for plans, plan check, building permits and survey(s) to establish building line; 2. normal interest in building funds during the period of construction plus a processing fee or service charge; 3. materials, sales taxes on materials, and labor costs; 4. normal site preparation including finish grading and excavation for foundation and backfill; 5. utilities from structure to lot line figured for typical setback; 6. contractor’s overhead and profit, including job supervision, workmen’s compensation, fire and liability insurance, unemployment insurance, equipment, temporary facilities, security, etc.; 7. site improvements (included as lump sum additions); and 8. initial tenant improvement costs are included in MVS cost estimate. However, additional lease-up costs such as advertising, marketing and leasing commissions are not included. Base building costs (direct costs) are adjusted to reflect the physical characteristics of the subject. Accessory improvements that are not generally counted as rentable area are also analyzed by the square-foot method. Items not included in the primary building or accessory improvement cost estimates such as parking, walks, signage, landscaping, and miscellaneous site improvements are analyzed by the Unit-in-Place method based on the typical units for these items in which their costs are typically quoted. After estimating the base cost, multipliers are applied to account for local cost differences and the time since the estimates were made. After estimating the base cost, multipliers are applied to account for local cost differences and the time since the estimates were made. © 20 CBRE, Inc. Valuation Analysis – Whole Property 41 Local Contractor Estimates Where possible, local contractor estimates are utilized instead of estimates from cost manuals. This estimate is local and is not subject to the same indirect costs and local multipliers that apply to the MVS figures. The additional sources for cost(s) is/are below: •Fencing Costs o Phillip’s Fences (469) 309-9062 •Paving Costs: o XIT Paving and Construction, Inc. (972) 351-9906 Indirect Cost Several indirect cost items are not included in the direct building cost figures derived through the MVS cost guide. These items include entrepreneurial incentives or developer’s overhead (general and administrative costs), land planning, property taxes, legal and insurance costs, local development fees and contingencies. An estimate of 10% has been included in the unit costs for indirect costs. Entrepreneurial Profit Entrepreneurial profit represents the return to the developer and is separate from contractor’s overhead and profit. An estimate of 15% has been included in the unit costs for entrepreneurial profit. Cost New Similar methodology is employed to estimate the cost new for ancillary and site improvements. Where possible, local contractor estimates are utilized instead of estimates from cost manuals. Several local contractors were contacted to provide cost estimates. These estimates are local and are not subject to the same indirect costs and local multipliers that apply to the MVS figures. Depreciated Cost Estimate To complete the analysis of the improvements and arrive at a value indication for the subject, depreciation is estimated and applied to the estimated Cost New. Depreciation is generally estimated on a straight-line basis for newer construction and or by the Age-Life method for older properties, which takes into consideration ongoing maintenance and renovations. The current condition and apparent ages of the subject improvements provides the appraiser with fundamental criteria for estimating depreciation. There is no substantial functional or external obsolescence noted in the subject. Depreciation is primarily a function of the effective age and condition of the improvements. © 20 CBRE, Inc. Valuation Analysis – Whole Property 42 The following table summarizes the depreciated value estimates for the subject improvements. COST APPROACH SUMMARY Improvement Source/MVS Sec & Pg Reconciled Unit Cost Quantity Cost New Phys. Dep. % Total Depreciation Value Metal Gates - Parcel 2 ROW - Recessed Entrance Contractor $70.00 2 EA $140 40% $56 $84 Gravel Paving - Parcel 2 ROW Contractor $3.70 1,162 SF $4,299 40% $1,720 $2,579 6-Strand Barbed Wire Fencing - S/L Parcel 2 ROW Contractor $16.00 216 LF $3,456 40% $1,382 $2,074 5-Strand Barbed Wire Fencing - E/L Parcel 41 ROW Contractor $15.00 678 LF $10,170 80% $8,136 $2,034 Wire Mesh Fencing - N/L Parcel 41 ROW Contractor $27.00 23 EA $621 40% $248 $373 Metal Gates - N/L Parcel 41 ROW Contractor $70.00 1 EA $70 40% $28 $42 Metal Gates - E/L Parcel 41 ROW Contractor $70.00 3 EA $210 40% $84 $126 Total $7,312 Compiled by CBRE COST APPROACH CONCLUSION The value estimate is calculated as follows. COST APPROACH CONCLUSION - WHOLE PROPERTY Depreciated Value of Improvements $7,312 Land Value $1,306,047 Total Value by the Cost Approach $1,313,359 Compiled by CBRE © 20 CBRE, Inc. Reconciliation of Value – Whole Property 43 Reconciliation of Value – Whole Property The value indications from the approaches to value are summarized as follows: SUMMARY OF VALUE CONCLUSIONS Land Value $1,306,047 Cost Approach N/A Sales Comparison Approach N/A Income Capitalization Approach N/A Compiled by CBRE The sales comparison approach for land is utilized to develop and opinion of land value because market participants rely on this method. The subject is valued as vacant land so the cost approach is not applicable. The subject is valued as vacant land and so the sales comparison approach for improved property is not applicable. Being valued as vacant land, the income approach for improved property is not applicable. Furthermore, surface rights in this area are not purchased based on income production. © 20 CBRE, Inc. Part to be Acquired 44 Part to be Acquired Part to be Acquired – Parcel 2 The right of way acquisition is noted in green, the temporary construction easement is noted in pink, and the subject outline is noted in yellow. The image and outlines above are presented to merely assist the reader in visualizing the subject. They are not a legal representation or considered to represent a survey of the subject. TCE – Parcel 2 ROW – Parcel 2 SUBJECT © 20CBRE, Inc. Part to be Acquired 45 Part to be Acquired – Parcel 41 The right of way acquisition is noted in green, the drainage easement acquisition is noted in blue, the slope easement acquisition is noted in purple and the temporary construction easement is noted in pink, and the subject outline is noted in yellow. The image and outlines above are presented to merely assist the reader in visualizing the subject. They are not a legal representation or considered to represent a survey of the subject. SUBJECT TCE – Parcel 41 ROW – Parcel 41 Slope Esmt. – Parcel 41 Drainage Esmt. – Parcel 41 © 20CBRE, Inc. Part to be Acquired 46 DESCRIPTION AND HIGHEST AND BEST USE – PART TO BE ACQUIRED Part to be Acquired – Proposed Right of Way (Parcel 2) © 20 CBRE, Inc. Part to be Acquired 47 Part to be Acquired – Proposed Right of Way (Parcel 41) © 20 CBRE, Inc. Part to be Acquired 48 Part to be Acquired – Proposed Drainage Easement (Parcel 41) © 20 CBRE, Inc. Part to be Acquired 49 Part to be Acquired – Proposed Slope Easement (Parcel 41) © 20 CBRE, Inc. Part to be Acquired 50 ACQUISITION SUMMARY Parcel ID/Number Parcels 2 & 41 Acquisition Length W/L - 697.58 feet; E/L - 698.94 Acquisition Width N/L - 32.56 feet; S/L - 32.74 Highest and Best Use of Acquisition Area The acquisition does not have sufficient physical characteristics to support independent development. Therefore, its highest and best use is to serve as part of the whole property. ACQUISITION INTEREST ROW - Parcel 2 Acquisition Type Roadway - Fee Simple Right of Way Rights Being Acquired Surface Only Percent of Fee Encumbered 100% (Majority of Rights Acquired) Balance of Rights Remaining 0% ROW - Parcel 41 Acquisition Type Roadway - Fee Simple Right of Way Rights Being Acquired Surface Only Percent of Fee Encumbered 100% (Majority of Rights Acquired) Balance of Rights Remaining 0% Drainage Easement - Parcel 41 Acquisition Type Drainage Easement Rights Being Acquired Surface Only Percent of Fee Encumbered 90% (Majority of Rights Acquired) Balance of Rights Remaining 10% Slope Easement - Parcel 41 Acquisition Type Slope Easement Rights Being Acquired Surface and Subsurface Percent of Fee Encumbered 99% (Majority of Rights Acquired) Balance of Rights Remaining 1% ACQUISITIONS The client has provided exhibits with the size and configuration for the proposed (± 5,902 SF) Right of Way for Parcel 2, the proposed (± 22,722 SF) Right of Way for Parcel 41, the proposed (± 5,065 SF) Drainage Easement for Parcel 42 and the proposed (± 225 SF) Slope Easement for Parcel 41. Please refer to the following pages for specific and additional terms. © 20 CBRE, Inc. Part to be Acquired 51 Drainage Easement According to the client-provided easement document, the intended use of the drainage easement will be for “constructing, reconstructing, installing, repairing, relocating, operating, and perpetually maintaining drainage and all drainage related facilities and appurtenances, respectively, in, along, upon, under, and across said Property Interest, including without limitation, the free and uninterrupted use, liberty, passage, ingress, egress and regress, at all times in, along, upon, under, and across the Property Interest to Grantee herein, its agents, employees, contractors, workmen, and representatives, for the purposes set forth herein, including without limitation, the making additions to, improvements on and repairs to said facilities or any part thereof.” In the subject’s case, the drainage easement is located along a portion of the eastern property line. The key consideration is the impact the easement has on the use and utility of the “bundle of rights” of the real property. Considering the location and potential use of the easement area, an easement allocation of 90% would be estimated. Slope Easement According to the client-provided easement document, the intended use of the slope easement will be for “constructing, reconstructing, installing, repairing, relocating, operating, and perpetually maintaining slope and all slope related facilities and appurtenances, respectively, in, along, upon, under, and across said Property Interest, including without limitation, the free and uninterrupted use, liberty, passage, ingress, egress and regress, at all times in, along, upon, under, and across the Property Interest to Grantee herein, its agents, employees, contractors, workmen, and representatives, for the purposes set forth herein, including without limitation, the making additions to, improvements on and repairs to said facilities or any part thereof.” In the subject’s case, the slope easement is located along a portion of the eastern property line. The key consideration is the impact the easement has on the use and utility of the “bundle of rights” of the real property. Considering the location and potential use of the easement area, an easement allocation of 99% would be estimated. © 20 CBRE, Inc. Part to be Acquired 52 Acquisition Valuation The value of the land is based upon their pro-rata contributory value to the whole property. The acquisitions do not have the requisite characteristics to function as an independent economic unit due to small size and shape. The highest and best use of the acquisition areas is as an integral part of the whole site. As such, the land value in the part to be acquired is based on same unit value as the whole property. VALUATION OF PARTIAL ACQUISITION - LAND Partial Acquisition Unit Value Acquired Unrounded Value (Rounded) ROW - Parcel 2 5,902 SF x $1.10 100%= $6,492.20 $6,492 ROW - Parcel 41 22,722 SF x $1.10 100%= $24,994.20 $24,994 Drainage Easement - Parcel 41 5,065 SF x $1.10 x 90% = $5,014.35 $5,014 Slope Easement - Parcel 41 225 SF x $1.10 x 99% = $245.03 $245 Total $36,745 Compiled by CBRE Area As previously discussed, the recessed entrance will no longer have the same entry depth from the new property after the acquisition. We have determined that the utility cannot be economically restored in the remainder; thus, the recessed entrance and associated improvements are considered to have no contributory value after the acquisition and are damaged out in the remainder analysis. The reestablishment of this recessed entrance will be addressed in the cost to cure section. Photos of the site improvement(s) in the acquisition area are shown below. The itemized value(s) are shown on page 4. Gravel Paving – Parcel 2 ROW 6-Strand Barbed Wire Fencing – S/L of Parcel 2 ROW © 20 CBRE, Inc. Part to be Acquired 53 5-Strand Barbed Wire Fencing – E/L of Parcel 41 ROW Wire Mesh Fencing and Gate Metal Gate – E/L of Parcel 41 ROW Metal Gates – E/L of Parcel 41 ROW VALUATION OF PARTIAL ACQUISITION - IMPROVEMENTS Gravel Paving - Parcel 2 ROW 1162 SF x $2.22 /SF $2,580 6-Strand Barbed Wire Fencing - S/L Parcel 2 ROW 216 LF x $9.60 /LF $2,074 5-Strand Barbed Wire Fencing - E/L Parcel 41 ROW 678 LF x $3.00 /LF $2,034 Wire Mesh Fencing - N/L Parcel 41 ROW 23 EA x $16.22 $373 Metal Gates - N/L Parcel 41 ROW 1 EA x $42.00 $42 Metal Gates - E/L Parcel 41 ROW 3 EA x $42.00 $126 Total Value of Improvements in Acquisition Area $7,229 Compiled by CBRE VALUATION OF PARTIAL ACQUISITION - TOTAL Land in Acquisition Area $36,745 Improvements in Acquisition Area $7,229 Total Acquisition Value $43,974 © 20 CBRE, Inc. Part to be Acquired 54 VALUATION OF THE REMAINDER BEFORE THE ACQUISITION The value of the remainder before the acquisition is a mathematical computation where the value of the acquisition is subtracted from the value of the whole property. The cost, sales comparison, and income capitalization approaches are not analyzed in the appraisal of the remainder before the acquisition. The resultant value is the remainder immediately before the acquisition, as set forth in the following table; it is compared to the value of the remainder after the taking to determine potential damages or enhancements to the remainder. Contributory Value of Improvements (Itemized) Metal Gates - Parcel 2 ROW - Recessed Entrance $84 Total Contributory Value of Improvements $84 $1,268,741 $558 * $2 $1,269,301 TOTAL VALUE AS A UNIT $1,269,385 The value of the Drainage Easement - Parcel 41 is rounded up. This is done to ensure correct calculation of the Whole Property less the Part to be Acquired, relative to the Remainder. Total Land Fee Area Remaining (1,153,401 SF) Drainage Easement - Parcel 41 (5,065 SF) @ 10% Slope Easement - Parcel 41 (225 SF) @ 1% REMAINDER BEFORE VALUATION SUMMARY Value of Whole Property Value of Partial Acquisition Value of Remainder Before the Acquisition $1,313,359 - $43,974 = $1,269,385 © 20 CBRE, Inc. Remainder After 55 Remainder After Remainder After Aerial The valuation of the remainder after the acquisition takes into consideration any severance damage accruing to the remainder as a result of the condemnation. Impacts to the remainder that are considered to be community damages in the State are excluded. TCE – Parcel 41 Slope Esmt. – Parcel 41 Drainage Esmt. – Parcel 41 TCE – Parcel 2 © 20CBRE, Inc. Remainder After 56 The intended use of the acquisition will be in conjunction with the construction of the Westgate Drive Improvement Project. Remainder Access No change in access is expected as a result of the acquisition of the report. Legal Conformance The subject was legally conforming before the acquisition and the acquisitions will not change that status for the Remainder. Market Conformance The Remainder will be functional for its intended use and typical for the neighborhood after the acquisition is complete. The following chart summarizes the salient characteristics of the Remainder property. REMAINDER SUMMARY ANALYSIS - REMAINDER COMPARISON Physical Description Whole Property - Before Acquisition Remainder After the Acquisition Gross Site Area 27.2570 Acres 1,187,315 Sq. Ft. 27.2570 Acres 1,187,315 Sq. Ft. New Easements 0.1214 Acres 5,290 Sq. Ft. Primary Road Frontage Westgate Drive 699 Feet Westgate Drive 699 Feet Secondary Road Frontage W. Windsor Drive 106 Feet W. Windsor Drive 106 Feet Shape Topography Ingress/Egress Points Zoning District Flood Zone Comparative Analysis Access Visibility Functional Utility Traffic Volume Adequacy of Utilities Landscaping Drainage Utilities Availability Water Yes Sewer Yes Natural Gas Yes Electricity Yes Telephone Yes Other Yes No Unknown Yes No Unknown Detrimental Easements 00 X 0 X Encroachments 00 X 0 X Deed Restrictions 00 X 0 X Source: Various sources compiled by CBRE W. Windsor Drive Zone X (Shaded) Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Average Unchanged Zone X (Shaded) Irregular Generally Level R2 - Residential Rating Provider Average Average Average Average W. Windsor Drive Average Appears adequate Irregular Generally Level R2 - Residential Unchanged Unchanged Unchanged Unchanged Unchanged City of Denton City of Denton Atmos Energy Various Various Rating © 20 CBRE, Inc. Remainder After 57 HIGHEST AND BEST USE – REMAINDER PROPERTY AS IF VACANT Legally Permissible The acquisition will not affect the legal conformance of the Remainder to current zoning regulations. Physically Possible The Remainder will be similarly suited for the legally permissible uses that were achievable in the whole property before the acquisition. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Financially Feasible Given the remainder’s size, zoning, and its surrounding development, the financially feasible use for the remainder property after the acquisition is similar to that of the whole property. Accordingly, residential use is considered feasible. Maximally Productive - Conclusion Based on the information presented above and upon information contained in the Area and Neighborhood analysis, the highest and best use of the Remainder property after the acquisition, as vacant, would be for residential use. Analysis of the subject and its respective market characteristics indicate the most likely buyer, as vacant, would be an owner-user or developer. © 20 CBRE, Inc. Land Value – Remainder After 58 Land Value After – Remainder Based on comparative analysis, the following chart summarizes the adjustments warranted to each comparable. A detailed description of each transaction is included in the addenda. REMAINDER - LAND SALES ADJUSTMENT GRID Remainder Comp No. 1 Comp No. 2 Comp No. 3 Comp No. 4 Grantor Dustin V. Devine Penny Lee Darby Martha A. Saldana and Belinda Saldana MLIP, LLC Grantee Ron Laningham and Elizabeth Laningham LNS Signs, Inc. 3 Farmers LLC Ernesto Navarrete Date of Sale Mar-22 Oct-24 Nov-23 May-23 Jul-22 Address N/L of Windsor Drive, West of Clarendon Drive N/L of Pecan Creek Road, East of FM 2164 Terminus of Darby Smith Road 4014 Seaborn Circle N/L of FM 1173, West of Barnett Road City, State Denton, TX Denton, TX Denton, TX Ponder, TX Krum, TX Gross Acres 26.4784 11.1800 14.5530 14.4540 31.2010 Gross Square Feet 1,153,401 487,001 633,929 629,616 1,359,116 Actual Sale Price $495,000 $650,000 $690,000 $434,700 Adjusted Sale Price 1 $500,000 $650,000 $690,000 $434,700 Unit Price Per SF $1.03 $1.03 $1.10 $0.32 Property Rights Conveyed 0% 0% 0% 0% Financing 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% Market Conditions (Time) 8% 0% 0% 0% 0% Adjusted $/SF $1.03 $1.03 $1.10 $0.32 Location 10% 10% 10% 25% Size -10% -10% -10%0% Shape -5% -5% -5% -5% Accessory Improvements 0% 0% 0% 0% Frontage 0% 0% 0% 0% Frontage/Access 5% 5% 5%0% Zoning/Use 0% 0% 0% 0% Utilities 10% 10% 5% 5% Net Adjustment 10% 10% 5% 45% Indicated Unit Value $1.13 $1.13 $1.16 $0.46 Estimated Unit Value $1.10 Compiled by CBRE The same comparables and adjustments that were applicable in the valuation of the whole property before the acquisition are applicable in the valuation of the Remainder After. The following table represents the value conclusion of the Fee Area Remainder: CONCLUDED LAND VALUE $ PSF SF Unrounded Total Fee Area Remaining $1.10 x 1,153,401 100% 100%$1,268,741.10 = $1,268,741 Drainage Easement Remaining - Parcel 41 $1.10 x 5,065 @ 10%100%$557.15 =$558 * Slope Easement Remaining - Parcel 41 $1.10 x 225 @ 1%100%$2.48 =$2 Indicated Value:$1,269,301 Compiled by CBRE The value of the Drainage Easement - Parcel 41 is rounded up. This is done to ensure correct calculation of the Whole Property less the Part to be Acquired, relative to the Remainder. © 20 CBRE, Inc. Cost Approach – Remainder After 59 REMAINDER AFTER COST APPROACH As noted previously, the utility of the recessed entrance (metal gates) cannot be economically restored in the remainder without reconfiguration; thus, this item is considered to have no contributory value after the acquisition and has been damaged out in the remainder analysis by applying a 100% depreciation. The reestablishment of this recessed entrance will be addressed in the cost to cure section. COST APPROACH SUMMARY (REMAINDER) Improvement Source/MVS Sec & Pg Reconciled Unit Cost Quantity Cost New Phys. Dep. % Total Depreciation Value Metal Gates - Parcel 2 ROW - Recessed Entrance Contractor $70.00 2 EA $140 100% $140 $0 Total $0 Compiled by CBRE COST APPROACH CONCLUSION - REMAINDER PROPERTY Depreciated Value of Improvements $0 Land Value $1,269,301 Total Value by the Cost Approach $1,269,301 Compiled by CBRE © 20 CBRE, Inc. Reconciliation – Remainder After 60 Remainder After Value Conclusion The Remainder After valuation is conducted under a hypothetical condition consisting of the valuation of the subject property as if the proposed project has already been completed. Based on our research and analysis, we have concluded that the Remainder After is not adversely impacted by the proposed permanent easement. A summary of the valuation of the Remainder After the acquisition is provided in the table below. VALUATION SUMMARY - REMAINDER Contributory Value of Improvements (Itemized) Metal Gates - Parcel 2 ROW - Recessed Entrance 2 EA $0 Total Contributory Value of Improvements $0 Contributory Land Value (Itemized) Fee Area Remaining (1,153,401 SF) $1.10 $1,268,741 Drainage Easement Remaining - Parcel 41 (5,065 SF) @ 10% of 100% $1.10 $558 * Slope Easement Remaining - Parcel 41 (225 SF) @ 1% of 100% $0.00 $2 Reconciled Final Value $1,269,301 Compiled by: CBRE The value of the Drainage Easement - Parcel 41 has been rounded up to ensure correct calculation of the Whole Property less the Remainder. MARKET IMPACT/DAMAGES The difference between the Remainder Before and the Remainder After results in the indicated damages associated with the proposed acquisition, if any. In this instance, the Remainder Before is greater than the Remainder After resulting from the loss in functionality of the recessed entrance in the remainder. The table below presents the damages valuation summary. REMAINDER IMPACT/DAMAGE VALUATION SUMMARY Value of Remainder Before the Acquisition Value of Remainder After the Acquisition Market Impact/ Damage $1,269,385 - $1,269,301 = $84 © 20 CBRE, Inc. Cost to Cure 61 COST TO CURE In order for the property to function as optimally as before the acquisition in the remainder, it is necessary to remove the recessed entrance that is located outside of the proposed acquisition, but rendered obsolete by the acquisition. Once this recessed entrance has been removed, it is necessary to reestablish the recessed entrance back on the remainder at the depth it existed prior to the acquisition. This recessed entrance includes the metal gates. Further, it is also necessary to replace the 6-strand barbed wire fencing along the southern property line, and the 5-strand barbed wire fencing and metal gates along the eastern property line. The appraisers believe there is ample room to do this. The costs to cure for these improvements are based on the same costs used in the Whole Property. However, in order to avoid double compensation, the contributory value of the improvements in the part acquired (and/or any damages) are deducted from the replacement cost new (RCN) to result in the appropriate Cost to Cure. Lastly, a 10% contingency cost is added to the Cost New subtotal to reflect contractor price changes and/or overruns. The calculation of the Cost to Cure is given below: COST TO CURE Improvement #Units Cost per Unit RCN (Rounded) Compensation Paid Net Cost Due Metal Gates - Parcel 2 ROW - Recessed Entrance 2 EA $70.00 $140 ($84) $56 6-Strand Barbed Wire Fencing - S/L Parcel 2 ROW 109 LF $16.00 $1,744 ($2,074) $0 5-Strand Barbed Wire Fencing - E/L Parcel 41 ROW 635 LF $15.00 $9,525 ($2,034) $7,491 Metal Gates - E/L Parcel 41 ROW 3 EA $70.00 $210 ($126) $84 Demolition of Metal Gates 1 EA $2,000 $2,000 $2,000 Subtotal $13,619 $9,631 Contingency 10% $1,362 Total Cost to Cure $10,993 Compiled by CBRE © 20 CBRE, Inc. Temporary Easements 62 Temporary Easements Temporary Construction Easement – Parcel 2 © 20 CBRE, Inc. Temporary Easements 63 Temporary Construction Easement – Parcel 41 © 20 CBRE, Inc. Temporary Easements 64 Temporary easements are utilized during the duration of a project for construction purposes. It is a temporary lease of the land and does not represent a permanent acquisition of rights. However, it affects the utility of the affected land during the duration of the easements and as such, a lease payment is due for the lifetime of the temporary easements. The client has provided surveys with the size and configuration for the proposed Temporary Construction Easements, as well as information regarding the duration of the easement. Please refer to the following pages for specific and additional terms. Temporary Construction Easements The intended use of the temporary construction easements shall be used to facilitate the construction of public infrastructure, which shall include use of the easement property for access, construction staging and storage, and other construction activities. The easement area is needed for a construction period of ±24 months (±2 years). The City of Denton indicated that the easement area will be restored to a condition similar to the whole property condition (prior to the project) upon completion of construction. Therefore, no additional compensation beyond the estimated temporary construction easement ground lease is warranted. The temporary construction easements are generally rectangular-shaped areas. Parcel 2 Temporary Construction Easement contains ±546 SF, and Parcel 41 Temporary Construction Easement contains ±5,128 SF. Temporary Easement Valuation The temporary construction easement does not have the requisite characteristics to function as an independent economic unit due to its small size and shape. The highest and best use of the acquisition area is as an integral part of the whole site. As such, the land value in the temporary construction easement is based upon the value of the Whole Property. Considering the intended use of the temporary construction easement, encumbrances of this nature are similar to a land lease, which is typically based on a specified annual rate of return on the value of the land. A range of annual returns for all property types from 3.79% to 17.85% was indicated by RealtyRates.com (4th quarter 2024 data), with an average of 9.38%. A rate higher than the average is applied to the subject due to the nominal value of the temporary easements. Given the scope of the temporary construction easement, a 10% rate of return is considered appropriate: TEMPORARY WORKSPACE EASEMENT Area $ PSF Rental Rate Temp Esmt Value TCE - Parcel 2 546 SF $1.10 x 10% @ 2 Yr $120 TCE - Parcel 41 5,128 SF $1.10 x 10% @ 2 Yr $1,128 $1,248 Compiled by CBRE TermSize © 20 CBRE, Inc. Summary of Compensation 65 Summary of Compensation In the final accounting, the estimate of total compensation includes the value of the acquisition, the difference between the appraisers’ opinion before and after the acquisition, and any potential curative costs or temporary construction easements. These opinions are based upon market data available as of the effective date of the appraisal. These estimates are totaled to arrive at the opinion of total compensation as follows. CONCLUDED MARKET VALUE Market Value Compensation Larger Parcel (Land and Affected Improvements)$1,313,359 Part(s) Being Acquired $43,974 Remainder Before Consideration of Damages $1,269,385 Remainder After Consideration of Damages $1,269,301 Net Damages or (Benefits) $84 Net Cost to Cure (Temporary Damages) $10,993 Temporary Easements $1,248 Total Compensation $56,299 © 20 CBRE, Inc. Assumptions and Limiting Conditions 66 Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently, nor super-efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property’s compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. © 20 CBRE, Inc. Assumptions and Limiting Conditions 67 (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property, nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE’s attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report and any conclusions stated therein. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or on behalf of the client, property owner or owner’s representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report and any conclusions stated therein. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including, without limitation, any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. This Report has been prepared in good faith, based on CBRE's current anecdotal and evidence-based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this Report, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE's control. In addition, many of CBRE's views are opinion and/or projections based on CBRE's subjective analyses of current market circumstances. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. Further, other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE's current views to later change or be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE’s independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge including, but not limited to, environmental, social, and governance principles (“ESG”), beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. © 20 CBRE, Inc. Assumptions and Limiting Conditions 68 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user’s failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. © 20 CBRE, Inc. Addenda ADDENDA © 20 CBRE, Inc. © 20 CBRE, Inc. Addenda Addendum A LAND SALE DATA SHEETS © 20 CBRE, Inc. © 20 CBRE, Inc. Sale Land - Single Unit Residential No. 1 Property Name 11.18 Acres of Vacant Land Address N/L of Pecan Creek Road, East of FM 2164 Denton, TX 76207 County Denton Govt./Tax ID 111258 Area Measurement(NRA) Land Area Net 11.180 ac/ 487,001 sf Land Area Gross 11.180 ac/ 487,001 sf Site Development Status Raw Utilities Electric, No Water or Sewer Maximum FAR N/A Max Allow Bldg Units/Density N/A Min Land Bldg Ratio N/A Shape Rectangular Primary Frontage N/A Secondary Frontage N/A Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0220G/ Apr 2011 Zoning City of Denton ETJ Entitlement Status N/A Proposed Use or Development Residential Development Transaction Details Type Sale Primary Verification Listing Broker, Chrissy Mallouf Interest Transferred Fee Simple Transaction Date 10/29/2024 Condition of Sale None Recording Date 10/30/2024 Recorded Buyer Ron Laningham and Elizabeth Laningham Sale Price $495,000 Buyer Type N/A Financing Cash to Seller Recorded Seller Dustin V. Devine Cash Equivalent $495,000 Marketing Time N/A Capital Adjustment $5,000 Listing Broker Chrissy Mallouf (940) 206-7555 % Interest Purchased 100% Doc # 117722 Adjusted Price $500,000 Adjusted Price / ac and / sf $44,723 / $1.03 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This is the sale of 11.18 acres of vacant land located along the north line of Pecan Creek Road, east of FM 2164 in the City of Denton ETJ, Texas. The site has a rectangular shape, is generally level and is situated within the City of Denton ETJ. The site has access to electric, but lacks access to public water and sewer; thus a water well and septic is required. The broker noted that access was via a dirt road and there was a small residence on the site that inhabitable and needed to be demolished. Thus, we have added $5,000 to the sale price of $495,000 to conclude to a sale price of $500,000, or $1.03 per square foot. © 20 CBRE, Inc. © 20 CBRE, Inc. Sale Land - Single Unit Residential No. 2 Property Name 14.553 Acres of Vacant Land Address Terminus of Darby Smith Road Denton, TX 76207 County Denton Govt./Tax ID 1058396 Area Measurement(NRA) Land Area Net 14.553 ac/ 633,929 sf Land Area Gross 14.553 ac/ 633,929 sf Site Development Status Raw Utilities Electric, No Water or Sewer Maximum FAR N/A Max Allow Bldg Units/Density N/A Min Land Bldg Ratio N/A Shape Rectangular Primary Frontage N/A Secondary Frontage N/A Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0355G/ Apr 2011 Zoning City of Denton ETJ Entitlement Status N/A Proposed Use or Development Residential Development Transaction Details Type Sale Primary Verification Lising Broker, Brad McKissack Interest Transferred Fee Simple Transaction Date 11/29/2023 Condition of Sale None Recording Date 11/29/2023 Recorded Buyer LNS Signs, Inc. Sale Price $650,000 Buyer Type N/A Financing Cash to Seller Recorded Seller Penny Lee Darby Cash Equivalent $650,000 Marketing Time N/A Capital Adjustment $0 Listing Broker Brad McKissack (940) 383-6683 % Interest Purchased 100% Doc # 126480 Adjusted Price $650,000 Adjusted Price / ac and / sf $44,664 / $1.03 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This is the sale of 14.553 acres of vacant land located at the terminus of Darby Smith Road in the City of Denton ETJ, Texas. The site has a rectangular shape, is generally level and is situated within the City of Denton ETJ. The site has access to electric, but lacks access to public water and sewer; thus a water well and septic is required. There is a power line traversing the wester property line, but the broker noted that this did not impact the sale price. Additionally, the conveyance included approximately 1.002 acres designated as an ingress/egress easement. According to the broker, the buyers intended to put a small warehouse on the site. The site sold in November 2023 for $650,000, or $1.03 per square foot. © 20 CBRE, Inc. © 20 CBRE, Inc. Sale Land - Single Unit Residential No. 3 Property Name 14.45 Acres along Seaborn Circle Address 4014 Seaborn Circle Ponder, TX 76259 County Denton Govt./Tax ID 45338 Area Measurement(NRA) Land Area Net 14.454 ac/ 629,616 sf Land Area Gross 14.454 ac/ 629,616 sf Site Development Status Platted Utilities Public Water and Electric, No Sewer Maximum FAR N/A Max Allow Bldg Units/Density N/A Min Land Bldg Ratio N/A Shape Rectangular Primary Frontage 450 ft on Seaborn Road Secondary Frontage 1,200 ft on Seaborn Circle Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0345G/ Apr 2011 Zoning City of Denton ETJ Entitlement Status N/A Proposed Use or Development Single Family Residential Transaction Details Type Sale Primary Verification Listing Broker, Alvin Reed Interest Transferred Fee Simple Transaction Date 05/12/2023 Condition of Sale Arms-Length Recording Date 05/15/2023 Recorded Buyer 3 Farmers LLC Sale Price $690,000 Buyer Type N/A Financing Cash to Seller Recorded Seller Martha A. Saldana and Belinda Saldana Cash Equivalent $690,000 Marketing Time 1 Month(s) Capital Adjustment $0 Listing Broker Alvin Reed (817) 846-2226 % Interest Purchased 100% Doc # 2023-49528 Adjusted Price $690,000 Adjusted Price / ac and / sf $47,738 / $1.10 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This sale represents approximately 14.45 acres of vacant land at 4014 Seaborn Circle, Ponder. The site has generally level topography, contains no areas of floodplain, has public water and electric available, and is currently located within the City of Denton's ETJ. According to the listing broker, approximately 12.5 acres of land is developable due to a pond in the southern portion of the site. The broker indicated that there were no known restrictions prohibiting subdivision development. Volume 1097, Page 764 of the Denton County Records states that "no tracts can be divided into smaller than five acres unless approved by developer for a period of ten years." This document is dated July 22, 1981; thus, this restriction is assumed to have expired. The property was purchased for single family residential use in May 2023 for a reported sale price of $690,000, or $1.10 per square foot. © 20 CBRE, Inc. © 20 CBRE, Inc. Sale Land - Single Unit Residential No. 4 Property Name 31.201 Acres of Vacant Land Address N/L of FM 1173, West of Barnett Road Krum, TX 76249 County Denton Govt./Tax ID 963329 Area Measurement(NRA) Land Area Net 31.201 ac/ 1,359,116 sf Land Area Gross 31.201 ac/ 1,359,116 sf Site Development Status Raw Utilities Public Water and Electric, No Sewer Maximum FAR N/A Max Allow Bldg Units/Density N/A Min Land Bldg Ratio N/A Shape Rectangular Primary Frontage N/A Secondary Frontage N/A Topography Generally Level Flood Zone Class Zone A Flood Panel No./ Date 48121C0190G/ Apr 2011 Zoning Not Zoned Entitlement Status N/A Proposed Use or Development Residential Development Transaction Details Type Sale Primary Verification Listing Broker, Jamie Adams Interest Transferred Fee Simple Transaction Date 07/01/2022 Condition of Sale None Recording Date 07/06/2022 Recorded Buyer Ernesto Navarrete Sale Price $434,700 Buyer Type N/A Financing Cash to Seller Recorded Seller MLIP, LLC Cash Equivalent $434,700 Marketing Time N/A Capital Adjustment $0 Listing Broker Jamie Adams (817) 235-4535 % Interest Purchased 100% Doc # 99228 Adjusted Price $434,700 Adjusted Price / ac and / sf $13,932 / $0.32 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This is the sale of 31.201 acres of vacant land located along the north line of FM 1173, east of Barnett Road in Krum, Texas. The site has a rectangular shape, is generally level and is not zoned. The site has access to electric and public water, but lacks access to public sewer; thus a septic is required. The site sold in July 2022 for $434,700, or $0.32 per square foot. © 20 CBRE, Inc. © 20 CBRE, Inc. Addenda Addendum B PROJECT INFORMATIONS © 20 CBRE, Inc. © 20 CBRE, Inc. 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City Project: City Project Number: Parcel Number: NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. DRAINAGE EASEMENT THE STATE OF TEXAS, § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON § THAT __________________________ (“Grantor”), of Denton County, whose mailing address is _____________________________________ in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration in hand paid by the City of Denton, receipt of which is hereby acknowledged, has GRANTED, BARGAINED, SOLD and CONVEYED and does by these presents GRANT, BARGAIN, SELL and CONVEY unto the City of Denton (“Grantee”) a ___________ acre drainage easement, in, along, upon, under, and across the following described property (the “Property Interest”), owned by Grantor, and situated in Denton County, Texas, located in _________________Survey, Abstract Number _______: PROPERTY AREAS DESCRIBED AND DEPICTED IN EXHIBITS A & B, ALL ATTACHED HERETO AND MADE A PART HEREOF For the following purposes: Constructing, reconstructing, installing, repairing, relocating, operating, and perpetually maintaining drainage and all drainage related facilities and appurtenances, respectively, in, along, upon, under, and across said Property Interest, including without limitation, the free and uninterrupted use, liberty, passage, ingress, egress and regress, at all times in, along, upon, under, and across the Property Interest to Grantee herein, its agents, employees, contractors, workmen, and representatives, for the purposes set forth herein, including without limitation, the making additions to, improvements on and repairs to said facilities or any part thereof. This Easement is subject to the following: 1. Structures. No buildings, fences, structures, signs, facilities, improvements or obstructions of any kind, or portions thereof, shall be constructed, erected, reconstructed or placed in, along, upon, under, or across the Property Interest. Further, Grantor stipulates and acknowledges that the Grantee, in consideration of the benefits above set out, may remove from © 20 CBRE, Inc. © 20 CBRE, Inc. 2 the Property Interest, such buildings, fences, structures, signs, facilities, improvements and other obstructions as may now or hereafter be found upon said Property Interest and dispose of any such buildings, fences, structures, signs, facilities, improvements or obstructions in any manner it deems appropriate without liability to Grantee. 2. Maintenance of Lateral Slope. No activity, of any kind, shall be conducted on the Property by Grantor that may impair, damage or destroy the lateral slope established for drainage, including without limitation, excavation or movement of soil or other material. 3. Access. For the purpose of exercising and enjoying the rights granted herein, the Grantee shall have access to the Property Interest by way of existing public property or right-of-way. 4. Trees and Landscaping. No shrub or tree shall be planted upon the Property Interest or that may encroach upon the Property Interest. Grantee may cut, trim, or remove any shrubs or trees, or portions of shrubs or trees now or hereafter located within or that may overhang upon the Property Interest without liability to Grantee, including without limitation, the obligation to make further payment to Grantor. 5. Grantor’s Rights. Grantor shall have the right, subject to the restrictions contained herein, to make use of the Property Interest for any purpose that does not interfere with the City’s rights granted to it herein for the purposes granted. 6. Successors and Assigns. This grant and the provisions contained herein shall constitute covenants running with the land and shall be binding upon the Grantor and Grantee, and their heirs, successors and assigns. Upon completion of construction, all surplus excavation, debris, trash or litter resulting from construction shall be cleaned up and hauled off the premises, and the easement property, including any fences disturbed, shall be restored to its original contour and condition. TO HAVE AND TO HOLD unto the said City of Denton as aforesaid for the purposes aforesaid the premise above described. Witness its hand, this the __________day of _______________________________, 20___. GRANTOR: ____________________________ Printed name: © 20 CBRE, Inc. © 20 CBRE, Inc. 3 ACKNOWLEDGMENT THE STATE OF _________________ § COUNTY OF ____________________ § This instrument was acknowledged before me on _____________________________, 20___, by. ________________________________________ Notary Public, in and for the State of __________ My commission expires: __________________ © 20 CBRE, Inc. © 20 CBRE, Inc. City Project: City Project Number: Parcel Number: NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. SLOPE EASEMENT THE STATE OF TEXAS, § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON § THAT __________________________ (“Grantor”), of Denton County, whose mailing address is _____________________________________ in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration in hand paid by the City of Denton, receipt of which is hereby acknowledged, has GRANTED, BARGAINED, SOLD and CONVEYED and does by these presents GRANT, BARGAIN, SELL and CONVEY unto the City of Denton (“Grantee”) a ___________ acre slope easement, in, along, upon, under, and across the following described property (the “Property Interest”), owned by Grantor, and situated in Denton County, Texas, located in _________________Survey, Abstract Number _______: PROPERTY AREAS DESCRIBED AND DEPICTED IN EXHIBITS A & B, ALL ATTACHED HERETO AND MADE A PART HEREOF For the following purposes: Constructing, reconstructing, installing, repairing, relocating, operating, and perpetually maintaining slope and all slope related facilities and appurtenances, respectively, in, along, upon, under, and across said Property Interest, including without limitation, the free and uninterrupted use, liberty, passage, ingress, egress and regress, at all times in, along, upon, under, and across the Property Interest to Grantee herein, its agents, employees, contractors, workmen, and representatives, for the purposes set forth herein, including without limitation, the making additions to, improvements on and repairs to said facilities or any part thereof. This Easement is subject to the following: 1. Structures. No buildings, fences, structures, signs, facilities, improvements or obstructions of any kind, or portions thereof, shall be constructed, erected, reconstructed or placed in, along, upon, under, or across the Property Interest. Further, Grantor stipulates and acknowledges that the Grantee, in consideration of the benefits above set out, may remove from © 20 CBRE, Inc. © 20 CBRE, Inc. 2 the Property Interest, such buildings, fences, structures, signs, facilities, improvements and other obstructions as may now or hereafter be found upon said Property Interest and dispose of any such buildings, fences, structures, signs, facilities, improvements or obstructions in any manner it deems appropriate without liability to Grantee. 2. Maintenance of Lateral Slope. No activity, of any kind, shall be conducted on the Property by Grantor that may impair, damage or destroy the lateral slope established for drainage, including without limitation, excavation or movement of soil or other material. 3. Access. For the purpose of exercising and enjoying the rights granted herein, the Grantee shall have access to the Property Interest by way of existing public property or right-of-way. 4. Trees and Landscaping. No shrub or tree shall be planted upon the Property Interest or that may encroach upon the Property Interest. Grantee may cut, trim, or remove any shrubs or trees, or portions of shrubs or trees now or hereafter located within or that may overhang upon the Property Interest without liability to Grantee, including without limitation, the obligation to make further payment to Grantor. 5. Grantor’s Rights. Grantor shall have the right, subject to the restrictions contained herein, to make use of the Property Interest for any purpose that does not interfere with the City’s rights granted to it herein for the purposes granted. 6. Successors and Assigns. This grant and the provisions contained herein shall constitute covenants running with the land and shall be binding upon the Grantor and Grantee, and their heirs, successors and assigns. Upon completion of construction, all surplus excavation, debris, trash or litter resulting from construction shall be cleaned up and hauled off the premises, and the easement property, including any fences disturbed, shall be restored to its original contour and condition. TO HAVE AND TO HOLD unto the said City of Denton as aforesaid for the purposes aforesaid the premise above described. Witness its hand, this the __________day of _______________________________, 20___. GRANTOR: ____________________________ Printed name: © 20 CBRE, Inc. © 20 CBRE, Inc. 3 ACKNOWLEDGMENT THE STATE OF _________________ § COUNTY OF ____________________ § This instrument was acknowledged before me on _____________________________, 20___, by. ________________________________________ Notary Public, in and for the State of __________ My commission expires: __________________ © 20 CBRE, Inc. © 20 CBRE, Inc. CityProjectName: CityProjectNumber: ParcelNumber:TCE# NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER. TEMPORARY CONSTRUCTION GRADING & ACCESS EASEMENT STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON § That __________, whose mailing address is _____ (“Grantor”), for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00), and other good and valuable consideration to Grantor in hand paid by the City of Denton, a Texas home rule municipal corporation (“Grantee”), 215 E. McKinney, Denton, Texas 76201, the receipt and sufficiency of which are hereby acknowledged and confessed, has GRANTED, SOLD, and CONVEYED, and by these presents does GRANT, SELL, and CONVEY, unto Grantee a temporary construction, grading and access easement being a ____ acre tract in, along, upon, under, over and across the following described property, owned by Grantor, and situated in Denton County, Texas, located in the ________ Survey, Abstract Number _____, (the “Property”), to wit: PROPERTY AREA DESCRIBED IN EXHIBIT “A” AND DEPICTED IN EXHIBIT “B” BOTH ATTACHED HERETO AND MADE A PART HEREOF It is agreed that the City of Denton, in consideration of the benefits above set out, will remove from the Property above described, such fences, signage, buildings and other obstructions as may now be found upon said Property, for the purpose of construction activities, grading activities and access in, along, upon, under and across said Property. It is specifically stipulated by Grantor that the scope of the access, construction and grading activities shall include the clearing and removal of vegetation and trees that exist within the Property. The City of Denton, its agents, employees, contractors, workmen, and representatives shall have the right of ingress, egress and regress in, along, upon, under and across said Property for the purpose of construction activities or any part thereof. The term of this grant shall commence on ______, 20__ (the “Effective Date”) and shall expire two years from the Effective Date unless extended by written agreement of the parties, which consent shall not be unreasonably withheld. TO HAVE AND TO HOLD unto the said City of Denton, Texas as aforesaid for the purposes aforesaid the Property above described. © 20 CBRE, Inc. Page 2 of 2 CityProjectName: CityProjectNumber: ParcelNumber:TCE# EXECUTED the day of , 202_. GRANTOR: GRANTOR: By: __________________________ By: __________________________ ACKNOWLEDGMENT STATE OF ________________ § COUNTY OF ______________ § BEFORE ME, the undersigned, a Notary Public in and for the said County and State, on this day personally appeared _________________________, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same in the capacity and for the purpose and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ___ day of ____________ 202_. __________________________________________ Notary Public, State of Texas My commission expires: _______________ ACKNOWLEDGMENT STATE OF ________________ § COUNTY OF ______________ § BEFORE ME, the undersigned, a Notary Public in and for the said County and State, on this day personally appeared _________________________, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same in the capacity and for the purpose and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ___ day of ____________ 202_. __________________________________________ Notary Public, State of Texas My commission expires: _______________ Upon Filing Return To: City of Denton-Real Estate 401 N. Elm St. Denton, TX 76201 © 20 CBRE, Inc. Addenda Addendum C QUALIFICATIONS © 20 CBRE, Inc. © 20 CBRE, Inc. 1 ©2022 CBRE, INC. PROFILES RIGHT OF WAY APPRAISAL TEAM LEAD / TEXAS Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Director, Austin, TX T +1 512 499 4911 E cathy.thomas@cbre.com Lic. TX 1336636 G Professional Experience Catherine Thomas is an Executive Vice President with CBRE’s Valuation & Advisory Services group in Austin, Texas and co-manages the Texas Right of Way Appraisal Team. Ms. Thomas has over twenty years of real estate appraisal and consulting experience with the majority of her experience being in right-of-way. Her appraisal background includes analysis and appraisal of properties for litigation, right-of-way and other purposes under eminent domain, as well as lending. She is a MAI, SRA and AI-GRS designated member of the Appraisal Institute and holds the Right-of-Way Appraiser certification (R/W-AC) of the International Right of Way Association (IRWA). Ms. Thomas has served on the board of directors for IRWA Austin Chapter 74 since 2014, being elected Chapter Secretary in 2021, Chapter Treasurer in 2022 and Chapter Vice President in 2023; she currently serves as Chapter President 2024-2025. Ms. Thomas is well versed in providing litigation support for ongoing cases and has provided expert testimony in numerous special commissioners’ hearings across Texas; her eminent domain experience includes appraisal of full and partial fee and easement acquisitions for numerous utility providers, municipalities and governmental entities, as well as property owners, throughout Texas. Awards IRWA Chapter 74 Professional of the Year (2020) Pro Affiliations / Accreditations Certified General Appraiser, State of Texas Appraisal institute, Designated Member (MAI, SRA, AI-GRS) International Right of Way Association (R/W-AC) Certified Department of Transportation Appraiser, State of Texas American Taekwondo Association, 3rd Degree Black Belt Education St. Edward’s University, Master of Arts in Human Services The University of Texas at Austin, Bachelor of Arts Continuing Education, various Appraisal Courses © 20 CBRE, Inc. © 20 CBRE, Inc. Appraiser: Catherine A Thomas License #: TX 1336636 G License Expires: 01/31/2027 Chelsea Buchholtz Executive Director Certified General Real Estate Appraiser Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser For additional information or to file a complaint please contact TALCB at www.talcb.texas.gov. CATHERINE A THOMAS 500 W 2ND STREET, SUITE 1700 AUSTIN, TX 78701 © 20CBRE, Inc. 1 ©2022 CBRE, INC. PROFILES RIGHT OF WAY APPRAISAL – FORT WORTH Allison Jackson, SR/WA, R/W-AC Vice President, Fort Worth, TX T +1 817 806 1042 M +1 817 899 6440 E Allison.jackson@cbre.com Lic. TX 1380451-G Professional Experience Allison Jackson, SR/WA, R/W-AC, is a Vice President of the Valuation & Advisory Services Group within the South-Central Region. Located in the Fort Worth office, Ms. Jackson has over a decade of real estate appraisal and consulting experience throughout the State of Texas, with a primary focus on right of way valuations and expert witness testimony support. Prior to joining CBRE in 2018, Ms. Jackson was with JLL after their 2016 acquisition of her previous employer, Integra Realty Resources. Ms. Jackson was with Integra Realty Resources for over eight years serving as an Analyst before being promoted to Senior Analyst. During her tenure, she assisted in valuation and consulting services on various property types, working extensively on eminent domain assignments. Ms. Jackson’s experience in appraisal includes projects for the Texas Department of Transportation (TxDOT), various local municipalities, Trinity River Authority (TRA), ONCOR, Dallas Area Rapid Transit, Tarrant Regional Water District, TEXRail and various other pipeline and electrical transmission line companies. Ms. Jackson is a senior right of way professional within the International Right of Way Association as she holds the SR/WA, nd R/W-AC designations. In addition, Ms. Jackson is a Candidate for Designation within the Appraisal Institute actively pursuing her MAI designation. Pro Affiliations / Accreditations Certified General Appraiser, State of Texas International Right of Way Association, Chapter 36 Member (SR/WA,R/W-AC Designations) Appraisal Institute, Candidate for Designation Education Texas A&M University, College Station, Texas Master of Real Estate (2009) Bachelor of Business Administration, Marketing (2008) Successfully completed numerous real estate related courses and seminars sponsored by the International Right of Way and the Appraisal Institute © 20 CBRE, Inc. © 20 CBRE, Inc. 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