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HomeMy WebLinkAboutRisk Mgmt Appraisal 909 Loop 288 TB Rev FinalValuation Advisory Client: City of Denton Property Name: Our Daily Bread Property Address: 909 North Loop 288, Denton, TX 76209 Report Date: March 16, 2023 JLL File #: VA-23-240891 Our Daily Bread 909 North Loop 288 Denton, TX 76209 March 16, 2023 Mrs. Deanna Cody Program Manager City of Denton 401 N. Elm Street Denton, Texas 76201 Re: Appraisal Our Daily Bread 909 North Loop 288 Denton, Denton County, TX 76209 File Number: VA-23-240891 Dear Mrs. Cody: At your request, we have prepared an appraisal for the above referenced property, which may be briefly described as follows: The subject is a renovated office building, constructed in 1975 and renovated in 2022. The site is now a special use building, serving as a homeless shelter. It contains a commercial kitchen to that end, and multiple units of housing. It is a Class D space, and is in average condition. We have appraised the Market Value As Is of the subject following renovation from an office building to a homeless shelter, and we have appraised the Retrospective Market Value As Is of the unrenovated office space at the time of acquisition. The appraisal is intended to conform with the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and applicable state appraisal regulations, appraisal requirements of Title XI of the Financial Institutions reform, Recovery and Enforcement Act of 1989 (FIRREA), revised June 7, 1994, and Interagency appraisal and Evaluation Guidelines issued December 10, 2010. Based on the appraisal described in the accompanying report, subject to the Limiting Conditions and Assumptions, Extraordinary Assumptions and Hypothetical Conditions (if any), we have made the following value conclusion(s): Value Conclusions Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value As Is Fee Simple February 9, 2023 $9,720,000 Retrospective Market Value As Is Fee Simple August 27, 2020 $5,290,000 2401 Cedar Springs Road, Suite 100 Dallas, Texas 75201 Phone: 214 438 6100 Your attention is directed to the Limiting Conditions and Assumptions section of this report. Acceptance of this report constitutes an agreement with these conditions and assumptions. In particular, we note the following: The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in the analysis which, if found to be false, could alter the appraiser’s opinions of conclusions. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. A hypothetical condition is 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 purpose of analysis. Extraordinary Assumptions & Hypothetical Conditions If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted, JLL Valuation & Advisory Services, LLC Thomas Bogdon, MAI, R/W-AC, MRICS Executive Vice President General Certified Appraiser Texas Certificate #: 1321143G Telephone: +1 214 395 2787 Email: thomas.bogdon@jll.com Our Daily Bread Real Estate Appraisal Contents Certification Statement 1 Summary of Salient Facts and Conclusions 3 Introduction 4 Ownership and Transaction History 4 Scope of Work 5 Applicable Requirements 6 Client, Intended Use, and User(s) 6 Purpose of the Appraisal 6 Approaches to Value 6 Prior Services 7 Report Option 8 Definition of Values 8 Definition of Property Rights Appraised 9 Area Demographics and Market Analysis 10 Area Demographics 10 Dallas MSA Area Demographics 10 Market Area Analysis 21 Office Market Area Analysis 21 Surrounding Area Analysis 27 Property Description 30 Site Description 30 Improvements Description 34 Assessment and Taxes 39 Highest and Best Use 39 Valuation Methodology 41 Land Valuation 42 Cost Approach 49 Sales Comparison Approach 54 Final Reconciliation 61 Insurable Value 63 Limiting Conditions and Assumptions 64 Our Daily Bread Real Estate Appraisal Appendices A.Appraiser Qualifications B.Definitions C.Financials and Property Information D.Comparable Data E.Engagement Letter Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 1 Certification Statement We certify that, 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 future interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved. 4. We have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. 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 estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. We certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the appraisal firm. 11. We have not performed any services, as an appraiser or in any other capacity, regarding the subject property within the three-year period immediately preceding acceptance of this assignment. 12. Thomas Bogdon, MAI, R/W-AC, MRICS, has made an inspection of the subject property 13. Significant real property appraisal assistance was provided by Michael macon who has not signed this certification, consisting of conducting research on the subject and transactions involving comparable properties, performing appraisal analyses, and assisting in report writing. 14. As of the date of this report, Thomas Bogdon, MAI, R/W-AC, MRICS has completed the continuing education program for Designated Members of the Appraisal Institute. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 2 15.As of the date of this report, Thomas Bogdon, MAI, R/W-AC, MRICS has completed the Standards and Ethics Education Requirements for Candidates/Practicing Affiliates of the Appraisal Institute. Thomas Bogdon, MAI, R/W-AC, MRICS Executive Vice President General Certified Appraiser Texas Certificate #: 1321143G Telephone: +1 214 395 2787 Email: thomas.bogdon@jll.com Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 3 Summary of Salient Facts and Conclusions Property Name Our Daily Bread Address 909 North Loop 288 Property Type Other Owner of Record City of Denton Tax ID Land Area 5.11 acres; 222,417 SF Gross Building Area (SF)33,766 SF Year Built 1975 Zoning Designation Highest & Best Use - As If Vacant Highest & Best Use - As Improved Exposure Time; Marketing Period Value Conclusions Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value As Is Fee Simple February 9, 2023 $9,720,000 Retrospective Market Value As Is Fee Simple August 27, 2020 $5,290,000 3 to 6 months; 3 to 6 months Special Purpose Special Purpose PF, Publicly Owned Property Denton, Denton County, Texas 76209 35796 The values reported above are subject to definitions, assumptions and limiting conditions set forth in the accompanying report of which this summary is a part. No party other than the client and intended users may use or rely on the information, opinions and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions and limiting conditions contained therein. The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in the analysis which, if found to be false, could alter the appraiser’s opinions of conclusions. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. A hypothetical condition is 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 purpose of analysis. Extraordinary Assumptions & Hypothetical Conditions Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 4 Introduction The subject is a renovated office building, constructed in 1975 and renovated in 2022. The site is now a special use building, serving as a homeless shelter. It contains a commercial kitchen to that end, and multiple units of housing. It is a Class D space, and is in average condition. Subject Identification Name Our Daily Bread Address 909 North Loop 288, Denton, Denton County, TX 76209 Tax ID 35796 Owner of Record City of Denton Legal Description See Addenda Ownership and Transaction History The most recent closed sale of the subject is summarized as follows: Most Recent Sale (Closed) Grantor: Saratan Corporation I Grantee: City of Denton Sale Date: August 27, 2020 Sale Price: $5,200,000 Document Number: 20-837 We note that is the sale of the subject site as an office building . We also note that of the $5,200,00, $3,395,000 of the price was not paid by the City of Denton. The Saratan Corporation I donated that portion of the sale price. We also note that our ‘As Is’ market value conclusion is based upon the improved site as a special use homeless shelter following extensive renovation. However, our Sales Approach compares the subject as it was prior to renovation, an office building. That approach is approximately even with the previous closed sales price, and therefore we have concluded that the former sales price was reflective of market value. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 5 Scope of Work According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser’s responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Scope of work is the type and extent of research and analyses involved in an assignment. To determine the appropriate scope of work for the assignment, we considered the intended use of the appraisal, the needs of the user, the relevant characteristics of the subject property, and other pertinent factors. Our concluded scope of work is summarized below, and in some instances, additional scope details are included in the appropriate sections of the report. Summary Research ■ We have inspected the property and its environs. Physical information on the subject was obtained from the property owner’s representative, public records, and/or third-party sources. ■ Regional economic and demographic trends, as well as the specifics of the subject’s local area were investigated. Data on the local and regional property market (supply and demand trends, rent levels, etc.) was also obtained. This process was based on interviews with regional and/or local market participants, primary research, available published data, and other various resources. ■ Other relevant data was collected, verified, and analyzed. Comparable property data was obtained from various sources (public records, third-party data-reporting services, etc.) and confirmed with a party to the transaction (buyer, seller, broker, owner, tenant, etc.) wherever possible. It is, however, sometimes necessary to rely on other sources deemed reliable, such as data reporting services. Analysis ■ Based upon the subject property characteristics, prevailing market dynamics, and other information, we developed an opinion of the property’s Highest and Best Use. ■ We analyzed the data gathered using generally accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. ■ The results of each valuation approach are considered and reconciled into a reasonable value estimate. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 6 Applicable Requirements This appraisal is intended to conform to the requirements of the following: ■Uniform Standards of Professional Appraisal Practice (USPAP); ■Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; ■Applicable state appraisal regulations; ■Appraisal requirements of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), revised June 7, 1994; ■Interagency Appraisal and Evaluation Guidelines issued December 10, 2010; ■Appraisal guidelines of City of Denton. Client, Intended Use, and User(s) Client: City of Denton Intended Use: The intended use of the appraisal is for internal decision making. Intended User(s): The intended user(s) of the appraisal is the City of Denton The appraisal is not intended for any other use or user. No party or parties other than the City of Denton may use or rely on the information, opinions, and conclusions contained in this report. Purpose of the Appraisal The purpose of the appraisal is to estimate the Subject’s: Appraisal Premise Interest Appraised Date of Value Market Value As Is Fee Simple February 9, 2023 Retrospective Market Value As Is Fee Simple August 27, 2020 The date of the report is March 16, 2023. The appraisal is valid only as of the stated effective date or dates. Approaches to Value Appraisers usually consider the use of three approaches to value when developing a market value opinion for real property. These are the cost approach, sales comparison approach, and income capitalization approach. Applicability and utilization of the approaches in this assignment is described as follows. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 7 Approach Description Applicability Utilization Cost A cost approach is most applicable in valuing new or proposed construction when the improvements represent the highest and best use of the land and the land value, cost new and depreciation are well supported. Applicable Utilized Sales Comparison A sales approach is most applicable when sufficient data on recent market transactions is available and there is an active market for the property type. Applicable Utilized Income An income approach is most applicable when the subject is an income producing property or has the ability to generate income in the future as an investment. Not Applicable Not Utilized The income approach is not applicable due to the limited marketability of the subject property as an investment property and the lack of demand from tenants in the market. Further, market participants do not rely on this approach for properties like the subject. The omission of this approach does not impact the credibility of the results of this analysis. Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. ■We have not performed any services, as an appraiser or in any other capacity, regarding the subject property within the three-year period immediately preceding acceptance of this assignment. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 8 Report Option Based on the intended users understanding of the subject's physical, economic and legal characteristics, and the intended use of this appraisal, an appraisal report format was used, as defined below. Appraisal Report This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. Definition of Values Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: ■Buyer and seller are typically motivated; ■Both parties are well informed or well advised, and acting in what they consider their own best interests; ■A reasonable time is allowed for exposure in the open market; ■Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and ■The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[g]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal’s effective date. Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015); also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77471 Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 9 Definition of Property Rights 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. Leased fee estate A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease). Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015) Inspection Thomas Bogdon, MAI, R/W-AC, MRICS, personally performed an inspection on February 9, 2023. Significant Appraisal Assistance It is acknowledged that Michael Macon made a significant professional contribution to this appraisal, consisting of conducting research on the subject and transactions involving comparable properties, performing appraisal analyses, and assisting in report writing, under the supervision of the persons signing the report. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 10 Area Demographics and Market Analysis Area Demographics Dallas MSA Area Demographics The subject is located in the Dallas-Fort Worth-Arlington, TX Metropolitan Statistical Area, hereinafter called the Dallas MSA, as defined by the U.S. Office of Management and Budget. The Dallas MSA is 8,673 square miles in size, and is the fourth most populous metropolitan area in the nation. Population The Dallas MSA has an estimated 2022 population of 7,961,535, which represents an average annual 2.1% increase over the 2020 census amount of 7,637,387. Dallas MSA added an average of 162,074 residents per year over the 2020 - 2022 period, and its annual growth rate is greater than that of the State of Texas. Looking forward, the Dallas MSA’s population is projected to increase at a 1.1% annual rate from 2022 - 2027, equivalent to the addition of an average of 86,327 residents per year. The Dallas MSA growth rate is expected to exceed that of Texas, which is projected to be 0.9%. Employment The current estimate of total employment in the Dallas MSA is 4,108,625 jobs. Since 2013, employment grew by 933,050 jobs, equivalent to a 29.4% gain over the entire period. There were gains in employment in eight of the past ten years despite the national economic downturn and slow recovery. The Dallas MSA's rate of change in employment significantly outperformed the State of Texas, which experienced an increase in employment of 19.5% or 2,192,575 over this period. Population Trends Population Area 2010 Census 2020 Census 2022 Est.2027 Est. 1 mi. radius 6,307 7,597 7,479 8,086 -0.8% 1.6% 3 mi. radius 52,341 59,691 61,738 67,782 1.7% 1.9% 5 mi. radius 109,591 128,455 134,583 146,205 2.4% 1.7% Denton County 662,170 906,422 974,915 1,073,834 3.7% 2.0% Dallas MSA 6,366,542 7,637,387 7,961,535 8,393,172 2.1% 1.1% Texas 25,145,561 29,145,505 30,157,100 31,502,395 1.7% 0.9% United States 308,745,538 331,449,281 335,707,897 339,902,796 0.6% 0.2% Source: Esri 2023. Compiled by JLL Valuation & Advisory Services, LLC. Compound Ann. % Chng Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 11 Employment Trends Year Denton County Change Dallas MSA Change Texas Change United States Change Denton County Dallas MSA Texas United States 2008 168,766 - 3,044,083 - 10,644,600 - 137,223,667 - 4.4% 4.9% 4.9% 5.8% 2009 165,848 -1.7% 2,931,717 -3.7% 10,343,967 -2.8% 131,295,833 -4.3% 7.1% 7.8% 7.5% 9.3% 2010 171,620 3.5% 2,931,875 0.0% 10,377,908 0.3% 130,344,500 -0.7% 7.1% 8.1% 8.2% 9.6% 2011 178,197 3.8% 3,006,083 2.5% 10,608,392 2.2% 131,914,333 1.2% 6.8% 7.8% 8.0% 9.0% 2012 185,015 3.8% 3,085,600 2.6% 10,918,067 2.9% 134,157,333 1.7% 5.7% 6.5% 6.7% 8.1% 2013 194,160 4.9% 3,175,575 2.9% 11,244,625 3.0% 136,363,250 1.6% 5.4% 6.2% 6.3% 7.4% 2014 204,489 5.3% 3,288,108 3.5% 11,597,317 3.1% 138,939,250 1.9% 4.5% 5.1% 5.2% 6.2% 2015 218,585 6.9% 3,404,300 3.5% 11,869,825 2.3% 141,824,250 2.1% 3.6% 4.1% 4.5% 5.3% 2016 227,819 4.2% 3,507,883 3.0% 12,017,600 1.2% 144,335,333 1.8% 3.4% 3.9% 4.6% 4.9% 2017 239,187 5.0% 3,600,783 2.6% 12,232,233 1.8% 146,606,917 1.6% 3.4% 3.7% 4.4% 4.4% 2018 246,363 3.0% 3,688,675 2.4% 12,523,317 2.4% 148,908,333 1.6% 3.2% 3.6% 3.9% 3.9% 2019 260,697 5.8% 3,790,533 2.8% 12,813,733 2.3% 150,904,333 1.3% 3.0% 3.3% 3.5% 3.7% 2020 257,745 -1.1% 3,670,083 -3.2% 12,275,517 -4.2% 142,185,833 -5.8% 6.5% 7.1% 7.7% 8.1% 2021 277,270 7.6% 3,841,033 4.7% 12,705,483 3.5% 146,284,500 2.9% 4.4% 5.1% 5.7% 5.4% 2022 290,291 4.7% 4,108,625 7.0% 13,437,200 5.8% 152,575,583 4.3% 3.1% 3.6% 4.1% 3.7% 10 Yr Change 96,131 49.5% 933,050 29.4% 2,192,575 19.5% 16,212,333 11.9% Avg Unemp. Rate 2013-2022 4.0% 4.6% 5.0% 5.3% Unemployment Rate - Dec 2022 2.9% 3.2% 3.6% 3.3% Total Employment (Annual Average) Source: Bureau of Labor Statistics. County employment is from the Quarterly Census of Employment & Wages (QCEW), all other areas use the Current Employment Survey (CES). Unemployment rates use the Current Population Survey (CPS). Data is not seasonally adjusted. Unemployment Rate (Ann. Avg.) Employment / Unemployment Historical Trends Source: Bureau of Labor Statistics. County employment is from the Quarterly Census of Employment & Wages (QCEW), all other areas use the Current Employment Survey (CES). Unemployment rates use the Current Population Survey (CPS). Data is not seasonally adjusted. 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2020 2021 2022 UnemploymentEmployment [x 1,000]Denton County Emp.Dallas MSA Emp.Texas Emp. Denton County Unemp.Dallas MSA Unemp.Texas Unemp. US Unemp. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 12 Employment Sectors The composition of the Dallas MSA job market is illustrated in the chart below, paired with that of Texas. Total employment for the areas is stratified by eleven major employment sectors, ranked from largest to smallest based on the percentage of Dallas MSA jobs in each sector. Employment % Growth Year-Over-Year Source: Bureau of Labor Statistics. County employment is from the Quarterly Census of Employment & Wages (QCEW), all other areas use the Current Employment Survey (CES). Unemployment rates use the Current Population Survey (CPS). Data is not seasonally adjusted. -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2020 2021 2022 Employment GrowthDenton County Emp.Dallas MSA Emp.Texas Emp.US Emp. Employment Sectors - 2022 Source: Esri 2023. Compiled by JLL Valuation & Advisory Services, LLC. 0%5%10%15%20%25% Natural Resources, Mining Information Government Leisure, Hospitality Construction Manufacturing Professional, Business Services Financial Activities Other Services Education, Health Services Trade, Transportation, Utilities Denton County Dallas MSA Texas United States Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 13 The Dallas MSA has a greater percentage employment than Texas in the following categories: 1. Trade, Transportation, Utilities - which accounts for 21.7% of Dallas MSA payroll employment compared to 20.8% for Texas as a whole. This sector includes jobs in retail trade, wholesale trade, trucking, warehousing, and electric, gas, and water utilities. 2. Other Services - which accounts for 9.4% of Dallas MSA payroll employment compared to 9.2% for Texas as a whole. This sector includes establishments that do not fall within other defined categories, such as private households, churches, and laundry and dry cleaning establishments. 3. Financial Activities - which accounts for 9.3% of Dallas MSA payroll employment compared to 7.2% for Texas as a whole. Banking, insurance, and investment firms are included in this sector, as are real estate owners, managers, and brokers. 4. Professional, Business Services - which accounts for 9.1% of Dallas MSA payroll employment compared to 7.8% for Texas as a whole. This sector includes legal, accounting, and engineering firms, as well as management of holding companies. The Dallas MSA is underrepresented in the following categories: 1. Education, Health Services - which accounts for 19.5% of Dallas MSA payroll employment compared to 21.6% for Texas as a whole. This sector includes employment in public and private schools, colleges, hospitals, and social service agencies. 2. Natural Resources, Mining - which accounts for 0.8% of Dallas MSA payroll employment compared to 2.3% for Texas as a whole. Agriculture, mining, quarrying, and oil and gas extraction are included in this sector. 3. Government - which accounts for 3.0% of Dallas MSA payroll employment compared to 4.2% for Texas as a whole. This sector includes public administration at the federal, state, and county level, as well as other government positions. 4. Construction - which accounts for 8.6% of Dallas MSA payroll employment compared to 9.2% for Texas as a whole. This sector includes construction of buildings, roads, and utility systems. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 14 Major Employers The table below contains major employers in the Dallas MSA. Major Employers - Dallas MSA Name Employees 1 Walmart Inc.34,000 2 American Airlines 33,000 3 AMR/American Airlines 25,000 4 Baylor Scott & White Health 24,088 5 Lockheed Martin 20,500 6 UT Southwestern Medical Center 18,666 7 AT&T 17,000 8 Medical City Healthcare 17,000 9 Bank of America Corp.14,465 10 Lockheed Martin 13,690 11 Texas Instruments Inc.12,901 12 JPMorgan Chase & Co.12,600 13 Texas Health Resources 12,000 14 HCA North Texas Division 11,612 15 Parkland Hospital 10,361 16 NAS - Fort Worth - JRB 10,000 17 Arlington ISD 10,000 18 Southwest Airlines Co.9,500 19 Target Brands Inc.8,270 20 Verizon 8,100 Sources(s): City of Dallas Economic Profile, 2019; Dallas Business Journal, 2019; Dallas Business Journal, Book of Lists, 2017; Dallas Office of Economic Development, 2016; Dallas Regional Chamber, 2017; Fort Worth Chamber of Commerce, 2017 Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 15 Gross Domestic Product Based on Gross Domestic Product (GDP), the Dallas MSA ranks #6 out of all metropolitan area economies in the nation. The Dallas MSA has a per capita GDP of $65,654, which is 8.0% greater than Texas's GDP of $61,032. This means that the Dallas MSA industries and employers are adding relatively more value to the economy than their peers in Texas. Gross Domestic Product Year Dallas MSA Change Texas Change United States Change Dallas MSA Texas United States 2012 $377,846 - $1,421,180 - $16,253,970 - $56,970 $54,701 $51,890 2013 $388,536 2.8% $1,484,700 4.5% $16,553,348 1.8% $57,431 $56,242 $52,469 2014 $402,788 3.7% $1,529,617 3.0% $16,932,051 2.3% $58,390 $57,041 $53,290 2015 $422,048 4.8% $1,605,902 5.0% $17,390,295 2.7% $60,026 $58,967 $54,348 2016 $435,498 3.2% $1,619,954 0.9% $17,680,274 1.7% $60,789 $58,585 $54,869 2017 $450,467 3.4% $1,659,453 2.4% $18,076,651 2.2% $61,734 $59,121 $55,711 2018 $469,741 4.3% $1,728,304 4.1% $18,609,078 2.9% $63,223 $60,671 $56,957 2019 $486,572 3.6% $1,779,781 3.0% $19,036,052 2.3% $64,338 $61,575 $57,866 2020 $480,618 -1.2% $1,747,562 -1.8% $18,509,143 -2.8% $62,453 $59,599 $55,883 2021 $513,979 6.9% $1,815,064 3.9% $19,609,812 5.9% $65,654 $61,032 $58,807 10 Yr Change $136,133 3.5% $393,883 2.8% $3,355,842 2.1% $8,684 $6,331 $6,917 GDP per Capita ($) Source: Bureau of Economic Analysis. The release of state and local GDP data has a longer lag time than national data. The data represents inflation-adjusted 'real' GDP stated in 2012 dollars. Per Capita GDP data are calculated by dividing the area GDP by its estimated population for the year shown. Gross Domestic Product ($ mil) Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 16 Gross Domestic Product Historical Trends Source: Bureau of Labor Statistics. County employment is from the Quarterly Census of Employment & Wages (QCEW), all other areas use the Current Employment Survey (CES). Unemployment rates use the Current Population Survey (CPS). Data is not seasonally adjusted. $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2020 2021 GDP per CapitaGDP [$ mil]Dallas MSA GDP Texas GDP Dallas MSA GDP per Cap.Texas GDP per Cap.US GDP per Cap. GDP % Growth Year-Over-Year Source: Bureau of Labor Statistics. County employment is from the Quarterly Census of Employment & Wages (QCEW), all other areas use the Current Employment Survey (CES). Unemployment rates use the Current Population Survey (CPS). Data is not seasonally adjusted. -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 2020 2021GDP GrowthDallas MSA GDP Texas GDP US GDP Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 17 Household Income The Dallas MSA has a much higher level of household income than Texas. Median household income for the Dallas MSA is $79,627, which is 12.4% higher than Texas. The Dallas MSA has a smaller concentration of households in the lower income levels than Texas. Specifically, 18% of the Dallas MSA households are below the $35,000 level in household income as compared to 23% of Texas households. A greater concentration of households exists in the higher income levels, as 53% of the Dallas MSA households are at the $75,000 or greater levels in household income versus 48% of Texas households. Median Household Income Compound Ann. % Chng Area 2022 Est.2027 Est.2022 - 2027 Denton County $99,674 $109,109 1.8% Dallas MSA $79,627 $91,205 2.8% Texas $70,834 $81,850 2.9% United States $72,414 $84,445 3.1% Source: Esri 2023. Compiled by JLL Valuation & Advisory Services, LLC. Med. Household Income 2022 Median Household Income Area Comparison Source: Esri 2023. Compiled by JLL Valuation & Advisory Services, LLC. $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 United States Texas Dallas MSA Denton County Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 18 2022 Median Household Income Distribution Source: Esri 2023. Compiled by JLL Valuation & Advisory Services, LLC. 0%5%10%15%20%25% $200,000 or greater $150,000-$199,999 $100,000-$149,999 $75,000-$99,999 $50,000-$74,999 $35,000-$49,999 $25,000-$34,999 $15,000-$24,999 Denton County Dallas MSA Texas United States Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 19 Education and Age Residents of the Dallas MSA have a higher level of educational attainment than those in Texas. An estimated 38.9% of the Dallas MSA residents are college graduates with four-year degrees or higher, while Texas residents have an estimated 33.4% with at least a four-year degree. People in the Dallas MSA are similar in age to their peers in Texas. The median age of both the Dallas MSA and Texas is 35 years. Conclusion The Dallas MSA's economy will benefit from a rapidly growing population base, and higher income and education levels. The Dallas MSA saw an increase in the number of jobs in the past 10 years and has maintained a lower unemployment than Texas during the past decade. Furthermore, the Dallas MSA is well- positioned from being the fourth most populous metropolitan area in the country and having both a higher rate of GDP growth in the past nine years and a higher level of GDP per capita than Texas overall. We project that the Dallas MSA’s economy will improve and employment will grow, strengthening the demand for real estate overall. Population % with at least 4-Year Degree Median Age Source: Esri 2023. Compiled by JLL Valuation & Advisory Services, LLC. 0%10%20%30%40%50%60% United States Texas Dallas MSA Denton County 5 mi. radius 3 mi. radius 1 mi. radius 45 Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 20 Area Map Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 21 Market Area Analysis Office Market Area Analysis Dallas-Fort Worth Metro Area Trends and Analysis The subject is located in the Dallas-Fort Worth metro area, as defined by JLL Research. Supply and demand metrics, including inventory levels, vacancy, completions, absorption, and rental rates for all classes of space are presented in the following table. ■ Inventory is currently 1,798 buildings. In the past eleven complete years, inventory averaged 1,718 buildings annually and increased 10.8%. Over that same time frame, inventory increased from a minimum of 1,623 buildings in 2012 and attained a high of 1,798 buildings in 2022. ■ The most recent data shows 2,342,563 SF were added to the market. On average 3,693,091 SF have been added to the market over the last eleven complete years and increased 306.2%. During the same period, completions rose from a minimum of 576,731 SF in 2012 and experienced a maximum of 6,303,207 SF in 2017. Dallas-Fort Worth Office Market Trends (All Classes of Space) Year Inventory (Bldgs)Inventory (SF) Vacancy (SF)Vacancy (%) Completions (Bldgs) Completions (SF) Absorption (SF) Inventory, Under Cons (Bldgs) Inventory, Under Cons (SF) Asking Rent ($/SF/MO) 2012 1,623 222,596,561 43,083,340 19.4%5 576,731 3,398,344 14 1,758,337 $1.60 2013 1,630 223,674,560 41,490,047 18.5%12 1,400,040 2,671,292 33 6,730,701 $1.67 2014 1,651 225,421,481 39,122,544 17.4%23 2,983,095 4,242,721 39 8,282,237 $1.75 2015 1,683 229,928,479 39,135,712 17.0%35 5,639,686 4,384,949 42 7,466,976 $1.90 2016 1,703 233,491,861 40,831,998 17.5%30 4,465,748 1,926,148 48 10,825,425 $1.95 2017 1,729 239,364,614 43,441,313 18.1%34 6,303,207 3,400,835 33 8,127,592 $2.03 2018 1,745 244,593,210 46,781,492 19.1%21 3,842,512 2,308,195 30 6,957,799 $2.22 2019 1,760 250,024,462 45,247,955 18.1%24 5,757,832 6,641,861 44 6,959,836 $2.29 2020 1,785 254,802,202 53,587,573 21.0%29 2,972,632 -4,744,430 27 6,013,149 $2.38 2021 1,796 258,354,884 57,992,032 22.4%19 4,339,960 -742,058 21 4,622,043 $2.46 2022 1,798 258,638,366 60,082,485 23.2%13 2,342,563 -2,046,971 33 6,468,312 $2.55 2012 - 2022 Avg. 1,718 240,080,971 46,436,045 19.3%22 3,693,091 1,949,171 33 6,746,582 Source: JLL Valuation & Advisory Services, LLC 2023. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 22 ■ Completions are currently 13 buildings. In the past eleven complete years, completions averaged 22 buildings annually and rose 160.0%. Over that same time frame, completions increased from a minimum of 5 buildings in 2012 and attained a high of 35 buildings in 2015. ■ Vacancy rates are presently 23.2%. Over the past eleven complete years, vacancy rates had an annual average of 19.3% and increased 388 bps. During the same period, vacancy rates saw a low of 17.0% in 2015 and attained a high of 23.2% in 2022. ■ Currently, absorption is -2,046,971 SF. During the past eleven complete years, absorption averaged 1,949,171 SF annually and decreased 160.2%. Over that same time frame, absorption reached a low of -4,744,430 SF in 2020 and achieved a peak of 6,641,861 SF in 2019. Source: JLL Valuation & Advisory Services, LLC 2023. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% -6,000,000 -4,000,000 -2,000,000 0 2,000,000 4,000,000 6,000,000 8,000,000 2020 2021 2022 Supply and Demand Trends Completions (SF)Absorption (SF)Vacancy (%) Vacancy Rate vs. Asking Rent Source: JLL Valuation & Advisory Services, LLC 2023. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2020 2021 2022 $0 $1 $1 $2 $2 $3 $3 Asking Rent ($/SF/MO)Vacancy (%) Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 23 Lewisville/Denton Submarket Synopsis The subject is located in the Lewisville/Denton submarket, as defined by JLL Research. To effectively gauge investor interest in the subject’s submarket, we evaluate key supply and demand metrics in comparison to other areas for all classes of space in the following table. ■ Over half of the total inventory in the Dallas-Fort Worth metro area is contained in just the top four of its 19 submarkets. The Lewisville/Denton submarket is ranked number 16 in inventory in the metro area. It accounts for 2.6% of overall building inventory in the market, which represents 1.3% of the unit inventory. ■ The submarket's asking rent is $24.21/SF, which is 20.8% less than the metro area average of $30.55. Dallas-Fort Worth Submarket Overview (All Classes of Space) Submarket Inventory (Bldgs) Inventory (SF) Asking Rent ($/SF)Vacancy (%) Vacancy (SF) Completions (SF) Absorption (SF) Inventory, Under Cons (SF) Inventory, Under Cons (Bldgs) Far North Dallas 385 55,502,900 $36.73 25.0%13,888,461 553,622 -48,047 2,233,684 11 Las Colinas 256 39,114,514 $27.93 23.4%9,167,905 652,877 -386,250 988,269 4 North US 75 Corridor 219 27,229,106 $25.61 18.9%5,158,430 335,718 150,801 285,000 2 Dallas CBD 63 27,134,938 $29.23 32.9%8,915,373 0 -1,173,640 0 0 LBJ Freeway 114 17,856,207 $26.00 28.1%5,015,926 0 -451,164 0 0 Uptown/Oak Lawn 80 14,400,866 $58.51 19.3%2,778,113 0 182,009 1,855,494 8 North Central Expressway 59 10,428,097 $37.27 24.8%2,591,229 0 -424,539 0 0 Fort Worth CBD 57 9,658,702 $28.96 17.3%1,670,074 0 47,927 0 0 Westlake/Southlake 78 8,512,659 $34.02 18.6%1,581,361 228,752 32,284 143,500 1 HEB/East Fort Worth 64 8,427,005 $23.80 24.7%2,078,377 0 -15,566 0 0 Stemmons Freeway 60 7,877,171 $23.65 28.0%2,204,830 0 -28,001 278,938 3 South Fort Worth 85 6,913,425 $26.06 12.1%835,667 48,594 -68,445 168,000 1 North Fort Worth 56 6,297,606 $24.79 10.6%668,109 54,000 -20,628 135,295 1 Arlington/Mansfield 76 5,936,327 $22.31 14.3%849,439 0 -168,088 61,500 1 Preston Center 33 4,727,461 $53.68 9.0%425,271 0 137,880 318,632 1 Lewisville/Denton 46 3,287,199 $24.21 20.9%686,280 0 4,861 0 0 East Dallas 27 2,388,521 $36.63 40.1%958,863 469,000 119,883 0 0 South Dallas 28 1,865,311 $22.94 24.9%464,337 0 11,408 0 0 Grand Prairie/South Irving 12 1,080,351 $18.07 13.4%144,440 0 50,344 0 0 Market Totals/Averages 1,798 258,638,366 $30.55 23.2% 60,082,485 2,342,563 -2,046,971 6,468,312 33 Source: JLL Valuation & Advisory Services, LLC 2023. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 24 ■ The submarket's vacancy rate is 20.9%, which is less than the average of 23.2% across the metro area. ■ The submarket has vacancy averaging 686,280 SF, which is 1.1% of the metro area total 60,082,485 SF. ■ There were no completions registered in the subject's submarket. ■ The submarket has absorption averaging 4,861 SF, which is -0.2% of the metro area total - 2,046,971 SF. ■ There was no construction in the subject's submarket. When evaluated in comparison to the other submarkets in the area, Lewisville/Denton receives the following ratings: Lewisville/Denton Submarket Trends and Analysis Supply and demand statistics, for all classes of space in the Lewisville/Denton submarket are presented in the following table. Source: JLL Valuation & Advisory Services, LLC 2023. Dallas-Fort Worth Submarket Overview (All Classes of Space) 0% 20% 40% 60% 80% 100% 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Inventory (SF)Cumulative % Inventory Lewisville/Denton Submarket Attribute Ratings Metric Rating Market Size/Stature Market Demand Vacancy Trends Threat of New Supply Rental Trends Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 25 ■ Inventory is currently 46 buildings. In the past eleven complete years, inventory averaged 44 buildings annually and rose 9.5%. Over that same time frame, inventory increased from a minimum of 42 buildings in 2012 and experienced a maximum of 46 buildings in 2020. ■ There were no completions in the current period. On average 32,806 SF have been added to the market over the last eleven complete years and decreased 100.0%. During the same period, completions experienced a maximum of 225,149 SF in 2020. ■ There were no completions in the current period. In the past eleven complete years, completions averaged 0 buildings annually and dropped 100.0%. Over that same time frame, completions experienced a maximum of 2 buildings in 2020. Dallas-Fort Worth: Lewisville/Denton Submarket Trends (All Classes of Space) Year Inventory (Bldgs)Inventory (SF) Vacancy (SF)Vacancy (%) Completion s (Bldgs) Completions (SF) Absorption (SF) Inventory, Under Cons (Bldgs) Inventory, Under Cons (SF) Asking Rent ($/SF) 2012 42 2,959,336 441,432 14.9%1 33,000 36,245 0 0 $16.87 2013 42 2,959,336 512,544 17.3%0 0 -71,112 0 0 $17.30 2014 42 2,959,336 310,583 10.5%0 0 201,961 1 80,964 $16.15 2015 43 3,040,300 394,534 13.0%1 80,964 -2,987 0 0 $21.07 2016 43 3,040,300 205,795 6.8%0 0 188,739 0 0 $17.11 2017 43 3,040,300 501,224 16.5%0 0 -295,429 1 21,750 $21.64 2018 43 3,040,300 252,925 8.3%0 0 248,299 1 21,750 $22.59 2019 44 3,062,050 172,911 5.6%1 21,750 101,764 2 225,149 $25.76 2020 46 3,287,199 427,196 13.0%2 225,149 -29,136 0 0 $26.55 2021 46 3,287,199 691,141 21.0%0 0 -263,945 0 0 $25.87 2022 46 3,287,199 686,280 20.9%0 0 4,861 0 0 $24.21 2012 - 2022 Avg.44 3,087,532 417,870 13.5% 0 32,806 10,842 0 31,783 $21.37 Source: JLL Valuation & Advisory Services, LLC 2023. Source: JLL Valuation & Advisory Services, LLC 2023. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% -400,000 -300,000 -200,000 -100,000 0 100,000 200,000 300,000 2020 2021 2022 Supply and Demand Trends Completions (SF)Absorption (SF)Vacancy (%) Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 26 ■ Vacancy rates are presently 20.9%. Over the past eleven complete years, vacancy rates had an annual average of 13.5% and rose 596 bps. During the same period, vacancy rates saw a low of 5.6% in 2019 and experienced a maximum of 21.0% in 2021. ■ Currently, absorption is 4,861 SF. During the past eleven complete years, absorption averaged 10,842 SF annually and dropped 86.6%. Over that same time frame, absorption saw a low of - 295,429 SF in 2017 and achieved a peak of 248,299 SF in 2018. Office Market Summary and Conclusions A summary of vacancy rates across various market segments analyzed is shown in the ensuing table: Based on influential overall market and submarket area trends, construction outlook, and the performance of competing properties, JLL expects the mix of property fundamentals and economic conditions in the Dallas- Fort Worth metro area to have a positive impact on the subject property’s performance in the near-term. Vacancy Rate vs. Asking Rent Source: JLL Valuation & Advisory Services, LLC 2023. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2020 2021 2022 $0 $5 $10 $15 $20 $25 $30 Asking Rent ($/SF)Vacancy (%) Vacancy Rate Summary Market Segment Vacancy Rate Dallas-Fort Worth Metro Area 23.2% Lewisville/Denton Submarket Area 20.9% Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 27 Surrounding Area Analysis Surrounding Demographics A snapshot of the surrounding area demographics, including population, households, and income data, is displayed in the following table. As illustrated above, the current population within a three-mile radius of the subject is 61,738, and the average household size is 2.4. Population in the area has risen since the 2020 census, and this trend is expected to continue in the ensuing five years. The pace of population growth within a three-mile radius is projected to exceed that of the Dallas MSA overall. Median household income is $57,074, which is considerably lower than the household income for the Dallas MSA as a whole. The populace within a three-mile radius is comparably educated to residents in the Dallas MSA, while median home values in the area are substantially lower. The following table presents a summary of the convenience of walking and biking to amenities in the neighborhood around the subject property, as well as its accessibility to public transportation. Surrounding Area Demographics 1 mi. radius 3 mi. radius 5 mi. radius Denton County Dallas MSA Texas United States Population 2010 6,307 52,341 109,591 662,170 6,366,542 25,145,561 308,745,538 2020 7,597 59,691 128,455 906,422 7,637,387 29,145,505 331,449,281 2022 7,479 61,738 134,583 974,915 7,961,535 30,157,100 335,707,897 2027 8,086 67,782 146,205 1,073,834 8,393,172 31,502,395 339,902,796 Compound Chg 2020 - 2022 -0.78% 1.70% 2.36% 3.71% 2.10% 1.72% 0.64% Compound Chg 2022 - 2027 1.57% 1.89% 1.67% 1.95% 1.06% 0.88% 0.25% Density 2,383 2,184 1,714 1,110 918 115 95 Households 2010 2,274 20,229 41,407 240,132 2,296,410 8,922,933 116,716,292 2020 2,709 23,262 49,666 328,884 2,760,991 10,491,147 126,817,580 2022 2,756 24,207 52,299 353,777 2,877,711 10,870,372 128,657,669 2027 2,979 26,572 56,779 389,643 3,031,792 11,377,128 130,651,872 Compound Chg 2020 - 2022 0.86% 2.01% 2.62% 3.72% 2.09% 1.79% 0.72% Compound Chg 2022 - 2027 1.57% 1.88% 1.66% 1.95% 1.05% 0.92% 0.31% Other Demographics Med. Household Income $62,422 $57,074 $62,276 $99,674 $79,627 $70,834 $72,414 Avg. Household Size 2.7 2.4 2.4 2.7 2.7 2.7 2.6 College Graduate %29.2% 38.5% 41.4% 48.8% 38.9% 33.4% 35.1% Median Age Owner Occupied %46% 40% 46% 67% 60% 63% 65% Renter Occupied %54% 60% 54% 33% 40% 37% 35% Med. Home Value $225,448 $256,466 $279,094 $346,146 $286,886 $238,757 $283,272 Source: Esri 2023. Compiled by JLL Valuation & Advisory Services, LLC. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 28 Demand Generators Major employers in the area include University of North Texas, Peterbilt Motors Company, Texas Health Denton. The closest major commercial corridor to the subject is downtown Denton providing average supporting retail and entertainment services. Development activity in the immediate area has been predominantly of suburban uses. In addition, development has been increasing in the last three years. Finally, the subject has average area linkages providing access to Dallas job centers and surrounding commercial districts. Access and Linkages North Loop 288 provides access to the subject from the greater Dallas metro area. The subject is most commonly accessed via car. Safety and Support Services Police and fire is provided by the City of Denton Outlook and Conclusion The subject’s area has not experienced recent employment growth and construction activity has been moderate contributing to our conclusion that the subject’s area is in the stability stage of its life cycle. Walk, Bike, and Transit Information Metric Rating (0-100)Description Walk Score 21 Car-Dependent Bike Score 33 Somewhat Bikeable Transit Score 20 Minimal Transit Mass Transit Mi. from Subj. Location Nearest Bus Stop < 0.5 mi. Sb Loop 288 Across From Dps Summary: 1 nearby routes: 1 bus, no rail/other Source: Walkscore.com, updated 01/26/2023. Compiled by JLL Valuation & Advisory Services, LLC. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 29 Surrounding Area Map Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 30 Property Description Site Description Land Summary Parcel ID Parcel Description Parcel Ownership Gross Land Area (Acres) Gross Land Area (Sq Ft)Topography Shape 35796 See Addenda City of Denton 5.11 222,417 Level Square Totals 5.11 222,417 Source: Public Records Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 31 Land Description Shape Rectangular Corner Location No Primary Street Frontage North Loop 288 Access Rating Average Visibility Rating Average Functional Utility Average Topography Level Landscaping Typical Drainage No drainage problems were observed or disclosed to us during our inspection. This appraisal assumes that surface water collection is adequate. Soil Conditions Adequate for development Wetlands/Watershed No Flood Zone X FEMA Map Number 48121Co38OG FEMA Map Date Flood Insurance Required 4/18/2011 No Utilities All public utilities are available to the site including public water and sewer, gas, electric, and telephone Utilities Adequacy Adequate Environmental Hazards An environmental assessment was not provided for review. No environmental hazards were apparent from inspection and it is assumed the subject is free and clear of any environmental hazards including, without limitation, hazardous waste, toxic substances and mold. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 32 Zoning Summary Zoning Jurisdiction Denton County Zoning Code PF Zoning Description Publicly Owned Property Permitted Uses Public Usage Zoning Density/FAR None Stated Actual Density of Use 0.15 Current Use Legally Conforming Yes Zoning Change Likely A zoning change is unlikely. Maximum Building Height 100 Feet Maximum Site Coverage 90% Set Back Distance (Feet) None Stated Side Yard Distance (Feet) 5 Feet Rear Yard Distance (Feet) 10 Fee Parking Requirement None Stated Other Land Use Regulations We are not aware of any other land use regulations that would affect the property. Source Denton County According to the local planning department, there are no pending or prospective zoning changes. It appears that the current use of the site is a legally conforming use. We are not experts in the interpretation of zoning ordinances. An appropriately qualified land use attorney should be engaged if a determination of compliance is required. Encumbrance/Easements/Restrictions Based upon a review of the deed and property survey, there do not appear to be any easements, encroachments, or restrictions that would adversely affect value. Our valuation assumes no adverse impacts from easements, encroachments, or restrictions, and further assumes that the subject has clear and marketable title. Overall Site Utility Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses including those permitted by zoning. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 33 Tax Map Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 34 Improvements Description The subject is a renovated office building, constructed in 1975 and renovated in 2022. The site is now a special use building, serving as a homeless shelter. It contains a commercial kitchen to that end, and multiple units of housing. It is a Class D space, and is in average condition. Improvements Description Subject General Description Building Name / Type Our Daily Bread General Property Type Special Purpose Property Type Other Competitive Property Class B Occupancy Type Overall Number of Buildings 1 Stories 1 Year Built 1975 Construction Class D Construction Type Wood Frame Construction Quality Average Condition Average Building Areas and Ratios Gross Building Area (SF)33,766 Land Area (SF)222,417 Floor Area Ratio (GBA/Land SF)0.15 Building Area Source Public Records Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 35 Construction Description Building Name / Type Subject Foundation, Frame, and Exterior Foundation Slab on Grade Structural Frame Wooden frame Exterior Brick Windows Wood frame Roof/Cover Flat Building Features Interior Features Interior Layout Functional Lobby/Common Area Yes Floor Cover Concrete Walls Painted drywall Ceilings Drywall Lighting Fluorescent, Incandescent Restrooms Adequate Mechanical Systems Heating Central Cooling Central Electrical Adequate Plumbing Adequate Elevators None Security None Unit Features Entry Type Interior hallway Interior Walls Painted drywall Floor Cover Concrete Ceiling Height (Feet)9 Kitchen Equipment Standard Laundry Facilities None Bathroom Fixtures Standard Garages None Doors Standard Lighting A mix of fluorescent and incandescent lighting. Parking Building Name / Type Subject Total Parking Spaces 85 Surface Spaces 85 Covered Spaces 0 Garage Spaces 0 Parking Type Asphalt Source of Parking Count Hand Count Parking Spaces/Unit Parking Spaces/1,000 SF GBA 2.5 Parking Spaces/1,000 SF RA 2.6 Parking Condition Average Parking Adequacy Adequate Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 36 Effective Age and Economic Life Building Name / Type Our Daily Bread Year Built 1975 Actual Age (Yrs.)48 Estimated Effective Age (Yrs.)20 Estimated Economic Life (Yrs.)55 Remaining Economic Life (Yrs.)35 Improvements Conclusion On balance, the condition, quality, and functional utility of the improvements are typical for their age and location. Note any important positive or negative attributes of the subject improvements that have an impact on property value. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 37 Subject Photographs Exterior Parking Lot (Photo Taken on February 9, 2023) Entrance (Photo Taken on February 9, 2023) Bathroom (Photo Taken on February 9, 2023) Dining Area (Photo Taken on February 9, 2023) Dorm (Photo Taken on February 9, 2023) Interior Hallway (Photo Taken on February 9, 2023) Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 38 Kitchen (Photo Taken on February 9, 2023) Laundry facility (Photo Taken on February 9, 2023) Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 39 Assessment and Taxes The subject is a special use property owned by the City of Denton and operated by a third-party charity. As such, it is not subject to the taxing jurisdiction of the county. Highest and Best Use Highest and best use may be defined as the reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. ■ Legally Permissible: What uses are permitted by zoning and other legal restrictions? ■ Physically Possible: To what use is the site physically adaptable? ■ Financially Feasible: Which possible and permissible use will produce any net return to the owner of the site? ■ Maximally Productive: Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)? Highest and Best Use of the Site Legally Permissible The site is zoned PF, Publicly Owned Property. To our knowledge, there are no legal restrictions such as easements or deed restrictions that would effectively limit the use of the property. Given prevailing land use patterns in the area, only Public Use is given further consideration in determining highest and best use of the site, as though vacant. Physically Possible The physical characteristics of the site do not appear to impose any unusual restrictions on development. Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses. Financially Feasible Based on our analysis of the market, there is currently adequate demand for Public Use in the subject’s area. It appears that a newly developed Public Use on the site would have a value commensurate with its cost. Therefore, Public Use is considered to be financially feasible. Maximally Productive There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than Public Use. Accordingly, it is our opinion that Public Use, developed to the normal market density level permitted by zoning, is the maximally productive use of the property. Conclusion Development of the site for Public Use is the only use that meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as if vacant. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 40 Highest and Best Use as Improved The subject site is developed with Public Use, which is consistent with the highest and best use of the site as if it were vacant. The existing improvements are currently unleased and produce a no cash flow, and we expect that will continue. However, the purpose of the development is Public Use and does not depend on cash flow. Based on our analysis, there does not appear to be any alternative use that could reasonably be expected to provide a higher present value than the current use, and the value of the existing improved property exceeds the value of the site, as if vacant. For these reasons, Public Use is concluded to be maximally productive and the highest and best use of the property as improved. Most Probable Buyer Taking into account the functional utility of the site and area development trends, the probable buyer is a municipal government. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 41 Valuation Methodology Three basic approaches may be applicable and utilized, then reconciled to arrive at an estimate of market value. An approach to value is included or eliminated based on its applicability to the property type being valued and the information available. The reliability of each approach depends on the availability and comparability of market data as well as the motivation and thinking of purchasers. Applicable approaches and whether or not they were utilized are summarized below: Cost Approach The Cost Approach is based on the proposition that an informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. In the Cost Approach, the appraiser forms an opinion of the cost of all improvements, depreciation from physical, functional and external causes. The land value, entrepreneurial profit and depreciated improvement costs are then added, resulting in indication of value. Sales Comparison Approach The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. A gross income multiplier and / or effective gross income multiplier may also be analyzed. By process of correlation and analysis, a final indicated value is derived. Income Approach In the Income Capitalization Approach the income-producing capacity of a property is estimated by using contract rents on existing leases and by estimating market rent from rental activity at competing properties for the vacant space. Deductions are then made for vacancy and collection loss and operating expenses. The resulting net operating income is divided by an overall capitalization rate to derive an opinion of value for the subject property. The capitalization rate represents the relationship between net operating income and value. This method is referred to as Direct Capitalization. Related to the Direct Capitalization Method is the Yield Capitalization Method. In this method periodic cash flows (which consist of net operating income less capital costs) and a reversionary value are developed and discounted to a present value using a discount rate or an internal rate of return. The Income Approach converts the anticipated flow of future benefits (income) to a present value estimate through a capitalization and or a discounting process. Final Reconciliation The appraisal process concludes with the Final Reconciliation of the values derived from the approaches applied for a single estimate of market value. Different properties require different means of analysis and lend themselves to one approach over the others. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 42 Analyses Applied Applicability and utilization of the approaches in this assignment is described as follows. Approach Description Applicability Utilization Cost A cost approach is most applicable in valuing new or proposed construction when the improvements represent the highest and best use of the land and the land value, cost new and depreciation are well supported. Applicable Utilized Sales Comparison A sales approach is most applicable when sufficient data on recent market transactions is available and there is an active market for the property type. Applicable Utilized Income An income approach is most applicable when the subject is an income producing property or has the ability to generate income in the future as an investment. Not Applicable Not Utilized The income approach is not applicable due to the limited marketability of the subject property as an investment property and the lack of demand from tenants in the market. Further, market participants do not rely on this approach for properties like the subject. The omission of this approach does not impact the credibility of the results of this analysis. Land Valuation The subject’s land value has been developed via the sales comparison approach. The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. This approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. By process of correlation and analysis, a final indicated value is derived. We have researched comparables for this analysis, which are documented on the following pages followed by a location map and analysis grid. All sales have been researched through numerous sources and, when possible, verified by a party to the transaction. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 43 Land Sales Summary No.Name;Sale Date;Land Type Square Feet;Usable SF;Zoning Topography;Sale Price;$/SF;$/Usable SF;$/Unit Address Status;Acres Usable Acres Shape;$/Acre $/Usable Ac. Prop. Rights Flood Zone 1 1020 Willowwood St 12/13/2022 144,184 Level $825,000 $5.72 1020 Willowwood Street Closed Sale 3.31 Rectangular $249,244 Denton, TX 76205 Fee Simple 2 1729 Georgetown Dr 1/25/2022 289,238 289,238 Level $1,375,000 $4.75 $4.75 1729 Georgetown Drive Closed Sale 6.64 6.64 Irregular $207,079 $207,079 Denton, TX 76201 Fee Simple 3 The Enclave on Sherman 4/21/2021 Retail 164,657 164,657 Level $700,000 $4.25 $4.25 707 Sherman Dr Closed Sale 3.78 3.78 Irregular $185,185 $185,185 Denton, TX 76209 Fee Simple S Our Daily Bread 222,417 909 North Loop 288 5.11 Denton, TX 76209 *If applicable, prices per SF/unit and capitalization rates and/or income multipliers based on effective sale price. Special Use Sale Comments: Confirmed Via reliable Third Party. This sale, $4.25/sf, is for a proposed mixed development site. Potential uses include retail and office. Frontage on Sherman Drive and is half a mile from Texas Women's University. Sale Comments: Confirmed via reliable third party. This sale was for the acre plot zoned for commercial use, for $6.31/2f. Sale Comments: Confirmed via reliable Third Party for the sale of 1729 Georgetown Drive which sold for $4.75/SF. Commercial NRMU SC Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 44 Land Sale Comparable Photographs Land Sale #1 1020 Willowwood St Land Sale #2 1729 Georgetown Dr Land Sale #3 The Enclave on Sherman Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 45 Land Sales Map No.Name Miles From Subject Land SF Price/Land SF 1 1020 Willowwood St 3.7 144,184 $5.72 2 1729 Georgetown Dr 3.5 289,238 $4.75 3 The Enclave on Sherman 2.2 164,657 $4.25 S Our Daily Bread 222,417 Analysis and Adjustment of Sales On the following page is a sales comparison grid displaying the subject property, the comparables and the adjustments applied. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 46 Land Grid Name Address City County State Date Price Acres Land SF Land SF Unit Price Transaction Adjustments Property Rights Financing Conditions of Sale Market Trends Through Feb-23 3.0% Adjusted Land SF Unit Price Location Access/Exposure Size Shape/Topography Zoning Flood Zone Utilities Entitlements Adjusted Land SF Unit Price Net Adjustments Gross Adjustments Comparables - Unadjusted $4.25 - $5.72 $4.91 $4.75 Comparables - Adjusted $4.26 - $5.75 $4.97 $4.90 $4.75 $0.00 land sfReconciled Unit Value:$5.50 10%3%10% $5.75 $4.90 $4.26 0%3%0% ––– ––– ––– ––– ––– -5%–-5% ––– $5.75 $4.90 $4.48 5%–– 0%3%5% Arm's Length Arm's Length Arm's Length Cash to Seller Cash to Seller Cash to Seller Fee Simple Fee Simple Fee Simple Fee Simple $5.72 $4.75 $4.25 222,417 144,184 289,238 164,657 5.11 3.31 6.64 3.78 $825,000 $1,375,000 $700,000 Feb-2023 Dec-2022 Jan-2022 Apr-2021 TX TX TX TX Denton Denton Denton Denton Denton Denton Denton Denton 909 North Loop 288 1020 Willowwood Street 1729 Georgetown Drive 707 Sherman Dr Our Daily Bread 1020 Willowwood 1729 Georgetown The Enclave on Subject Comp 1 Comp 2 Comp 3 Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 47 Comparable Land Sale Adjustments Property Rights This adjustment accounts for differing property rights such as fee simple, leased fee, leasehold, partial interest, etc. No adjustments for real property rights were required. Financing This adjustment accounts for seller financing, or assumption of existing financing, at non-market terms. No adjustments for financing terms were required. Conditions of Sale This adjustment accounts for extraordinary motivation of buyer or seller, assemblage, or forced sale. No adjustments for conditions of sale were required. Expenditures After Sale This adjustment accounts for atypical economics of a transaction, such as demolition cost, impact fees, remediation, or other expenditures by buyer at time of purchase. No adjustments for expenditures after sale were required. Economic Trends This adjustment accounts for changes in the economic environment over time that affect the appreciation and depreciation of real estate. The land sales took place from April 2021 to December 2022. Market conditions generally have been strengthening over this period through the effective date of value. As a result, we apply upward adjustments of 3.0% per year to account for this trend. Location This adjustment accounts for market or submarket area influences on sale price or rental rate and/or surrounding land use influences. Comparable 1 has been adjusted upward due to its inferior location when compared to the subject property. Comparables 2 and 3 have not been adjusted. Comparable 1 is located in a desirable location near a university campus. Access/Exposure This adjustment accounts for convenience to transportation facilities, ease of site access, visibility, and/or traffic counts. No adjustments for access/exposure were required. Size This adjustment accounts for the inverse relationship that often exists between size and unit value. Comparables 1 and 3 have been adjusted downward due to their smaller size when compared to the subject property. Comparable 2 has not been adjusted. Shape/Topography This adjustment accounts for primary physical factors that affect the utility of a site for its highest and best use. No adjustments for shape/topography were required. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 48 Zoning This adjustment accounts for government regulations that affect the types and intensities of uses allowable on a site. No adjustments for zoning were required. Flood Zone This adjustment accounts for impact on value due to presence of flood plains. No adjustments for flood zone status were required. Utilities This adjustment accounts for impact on land value due to presence or absence of public utilities such as water, sewer, and electricity. No adjustments for utilities were required. Entitlements This adjustment accounts for the specific level of governmental approvals attained pertaining to development of a site. No adjustments for entitlements were required. Land Valuation Conclusion All of the value indications have been considered, and in the final analysis, comparables 1 and 2 have been given most weight in arriving at our final reconciled value as they are the most recent sales and both required few gross adjustments. Premise Value Indicated Value per Land SF $5.50 Subject Land SF 222,417 Indicated Stabilized Value $1,223,295 Rounded Value $1,220,000 Upon Stabilization Land Value Reconciliation Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 49 Cost Approach The Cost Approach is based on the principle of substitution - that a prudent and rational person would pay no more for a property than the cost to construct a similar and competitive property, assuming no undue delay in the process. The Cost Approach tends to set the upper limit of value before depreciation is considered. The applied process is as follows: 1. Estimate the land value according to its Highest and Best Use. 2. Estimate the replacement cost of the building and site improvements. 3. Estimate the physical, functional and/or external depreciation accrued to the improvements. 4. Sum the depreciated value of the improvements with the value of the land for an indication of value. Replacement Cost Replacement cost is the current cost to construct improvements with equivalent utility to the subject, using modern materials and current standards, design, and layout. Estimates of replacement cost for the purpose of developing a market value opinion include three components: direct costs, indirect costs (also known as soft costs) and entrepreneurial profit. Direct Costs In order to estimate the direct replacement cost, we will utilize several sources. 1. Marshall & Swift 2. Developer’s Costs Marshall Valuation Service (MVS), a nationally recognized source for cost data, is utilized to estimate direct costs for the subject, which includes expenditures for labor, materials, supervision, contractors’ profit and overhead, architects’ plans and specifications, sales taxes and insurance. MVS’ Square Foot Commercial Methodology determines the property’s base costs, which are then adjusted, if applicable, for differences in heating/cooling costs, and the presence of sprinklers and elevators. The adjusted base costs are then further adjusted, if applicable, to account for building height, interior wall height, building perimeter, current costs, location variations, and prospective value multipliers. Beyond the base building costs, specialty components or site improvements are provided by the segregated cost sections of the MVS Commercial Cost Explorer. In addition to direct costs, MVS includes certain indirect costs such as architectural and engineering fees, and interest on building loan funds during construction. Our direct cost estimate using MVS is shown below. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 50 Unit Costs Name MVS Sec./Page or Source MVS Building Type Construction Class MVS Quality Base Cost Building Improvements Our Daily Bread 15/17 Office D Average $138.00 Site Improvements Site Work Developer N/A Average $59,860.00 Source: MVS, Developer Direct Cost Estimate Name Adjusted Base Cost Current Multiplier Local Multiplier Story Ht. Multiplier Perimeter Multiplier Unit Cost Estimate Quantity Units Direct Cost Estimate Building Improvements Our Daily Bread $138.00 0.950 0.930 1.000 1.000 $121.923 33,766 SF $4,116,852 Subtotal- Building Improvements $4,116,852 Site Improvements Site Work $59,860.00 1.000 0.930 1.000 1.000 $55,669.800 1 Site $55,670 Subtotal- Site Improvements $55,670 Total $4,172,522 MVS Direct Cost Summary Type Cost Estimate Building Improvements $4,116,852 Site Improvements $55,670 Total MVS Direct Costs $4,172,522 Total MVS Direct Costs per SF $123.57 Developer’s Construction Budget The developer’s budget for the subject property is summarized below. The developer’s complete budget is included in the Appendices of this report. Direct Cost Estimate - Developer Cost Type Direct Costs Cost per SF Project Size (SF)33,766 Site Work Site Work $59,860 $1.77 Demolition $165,920 $4.91 Subtotal Site Work $225,780 $6.69 Construction Construction Cost $4,933,707 $146.11 Subtotal Construction $4,933,707 $146.11 Subtotal FF&E $0 $0.00 Other Contigency $1,500,000 $44.42 Alternates $2,177,886 $64.50 Subtotal Other $3,677,886 $108.92 Totals $8,837,373 $261.72 Source: Developer Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 51 The two estimates of direct costs indicate the following: Direct Cost Reconciliation Cost/Source Direct Costs Direct Cost per SF MVS Estimate $4,172,522 $123.57 Developer Budget $8,837,373 $261.72 Reconciled Direct Cost $8,837,373 $261.72 Subject Size (GBA)33,766 Note that the Marshall & Swift cost figure includes some indirect costs, while the developer’s costs and cost comparables are direct costs only. Therefore, the comparison is not completely apples to apples. The cost estimates using Marshall & Swift and those from the developer are the most reliable cost estimate because they are based on the subject’s specific location, construction type, construction quality, and size. Therefore, we reconcile between these two approaches and utilize a direct cost estimate of $261.72 per square foot for the subject building. Indirect Costs MVS does not include all of the indirect costs (soft costs) that are appropriate in a replacement cost estimate. Therefore, we add an allowance for the following indirect costs that are not contained within our direct cost estimate: taxes and carrying costs on land during construction; legal and accounting fees; and marketing and finance costs prior to stabilization. Entrepreneurial Profit The final component of the replacement cost estimate is entrepreneurial profit, the financial reward that a developer would expect to receive in addition to recovering all direct and indirect costs. This is the expected compensation that would be necessary to motivate a developer to undertake the project. Replacement Cost New The following tables show our replacement cost estimates for the subject building improvements and site improvements. Replacement Cost New Estimate Name Direct Cost Estimate Indirect Costs (%) Indirect Costs ($) Replacement Cost + Indirect Cost Entreprenurial Incentive (%) Entreprenurial Incentive ($) Replacement Cost Estimate Building Improvements Our Daily Bread $4,116,852 50.00% $2,058,426 $6,175,278 ––$6,175,278 Subtotal- Building Improvements $4,116,852 50.00% $2,058,426 $6,175,278 ––$6,175,278 Site Improvements Site Work $55,670 50.00% $27,835 $83,505 ––$83,505 Subtotal- Site Improvements $55,670 50.00% $27,835 $83,505 ––$83,505 Total $4,172,522 50.00% $2,086,261 $6,258,783 0.00%–$6,258,783 If you are using a reconciled cost instead of solely Marshall and Swift, use the following table in place of the one above. If not, delete this paragraph and the table following it. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 52 Reconciled Replacement Cost New Estimate Name Cost Direct Cost Estimate $8,837,373 Plus: Indirect Costs at 50.0%$4,418,687 Plus: Entrepreneurial Incentive at 0.0%$0 Total Replacement Cost $13,256,060 Depreciation Analysis Depreciation may be defined as any loss of value from any cause. It is the difference between the market value of a structural improvement or piece of equipment and its reproduction or replacement cost as of the date of valuation. There are three general areas of depreciation: physical deterioration, functional obsolescence and external obsolescence. Depreciation may be curable or incurable, the test being that money spent to cure the depreciation be gained in value. If the depreciation costs more to fix than will be gained in value, then the depreciation is considered incurable. Physical Deterioration This results from deterioration from aging and use. This type of depreciation may be curable or incurable. No items of deferred maintenance are identified; thus, no deductions for this form of depreciation are necessary. After deducting deferred maintenance, if any, we use the age-life method to estimate depreciation applicable to the remaining replacement costs. This method indicates the loss in value due to physical deterioration and some functional obsolescence based on the age and condition of the improvements. The age-life method is applied on a straight-line basis, by dividing the subject’s effective age by its economic life. Age-life depreciation for the site improvements is estimated separately from the building improvements, based on their shorter economic lives. Functional Obsolescence This results from a lack of utility or desirability due to design or market perception of the improvements. This type of depreciation may be curable or incurable. Functional obsolescence is a loss in value due to changes in market tastes and standards. In the case of the subject, it is not necessary to make a deduction for additional functional obsolescence over and above that accounted for in the age-life method. External Obsolescence This is due to circumstances outside the property itself, such as industry, demographic and economic conditions or an undesirable proximate use. This type of depreciation is rarely curable. A deduction for external obsolescence is not considered necessary for the subject. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 53 Final Estimate of Depreciation Our estimate of depreciation and calculation of depreciated replacement cost is shown in the following table. Depreciation Estimate Name Replacement Cost Estimate Effective Age Economic Life Age-Life Depreciation (%) Deferred Maintenance Functional Obsolescence (%) External Obsolescence (%) Total Depreciation (%) Depreciated Replacement Cost Depreciated Unit Cost Building Improvements Our Daily Bread $6,175,278 20 55 36.4%–––36.4%$3,929,722 $116.38 Subtotal- Building Improvements $6,175,278 36.4%–––36.4%$3,929,722 Site Improvements Site Work $83,505 –––––––$83,505 $83,504.70 Subtotal- Site Improvements $83,505 –––––$83,505 Total $6,258,783 35.9%$0 ––35.9% $4,013,227 MVS Depreciated Replacement Cost Estimate Type MVS Replacement Cost New Total Depreciation Total Depreciation % MVS Depreciated Replacement Cost Building Improvements $6,175,278 $2,245,556 36.4% $3,929,722 Site Improvements $83,505 $0 –$83,505 Total Cost $6,258,783 $2,245,556 35.9% $4,013,227 Total Cost per SF $185.36 $66.50 $118.85 Depreciated Replacement Cost Estimate Type Total Costs Total Costs per SF Reconciled Replacement Cost New $13,256,060 $392.59 Total Depreciation % 35.9% Total Depreciation $4,756,072 $140.85 Total Depreciated Replacement Cost $8,499,988 $251.73 Cost Approach Conclusion By combining our land value conclusion with the depreciated replacement cost of the subject, we arrive at a value indication by the cost approach as shown in the following table. We note that is the Market Value following renovation to the properties current status of a Homeless Shelter. Cost Approach Valuation Upon Stabilization Projection 1 Concluded Land Value $1,220,000 Depreciated Cost of Improvements $8,499,988 Indicated As Is Value $9,719,988 Rounded As Is Value $9,720,000 Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 54 Sales Comparison Approach The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution and externalities. The following steps describe the applied process of the Sales Comparison Approach. 1. The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed. 2. The most pertinent data is further analyzed and the quality of the transaction is determined. 3. The most meaningful unit of value for the subject property is determined. 4. Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject property. 5. The value indication of each comparable sale is analyzed and the data reconciled for a final indication of value via the Sales Comparison Approach. We have researched comparables for this analysis, which are documented on the following pages, followed by a location map and analysis grid. All sales have been researched through numerous sources and, when possible, verified by a party to the transaction. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 55 Improved Sales Summary - Office No.Name;Sale Date;Year Blt.;GBA;Sale Price;$/GBA; Address Status;Yr. Renov.Rentable Area Effective Price;$/RA; Prop. Rights 1 Former Forest Green Library10/7/2021 1973 9,087 $2,184,000 $240.34 9015 Forest Lane Closed Sale 9,087 $240.34 Dallas, TX 75201 Leased Fee 1 2 Woodhaven Square 9/13/2021 1985 10,500 $783,000 $74.57 1215 Country Club Ln Closed Sale 10,500 $74.57 Fort Worth, TX 76112 Leased Fee 1 3 Office Warehouse Aeronca Ln1/4/2021 1997 2,500 $455,000 $182.00 10035 Aeronca Ln Closed Sale 2,500 $182.00 McKinney, TX 75071 N/A 1 4 Eurpac Building 4/16/2020 1981 20,090 $1,700,000 $84.62 3001 N. Skyway Cir. Closed Sale 20,090 $84.62 Irving, TX 75038 Leased Fee 1 S Our Daily Bread 33,766 909 North Loop 288 32,078 Denton, TX 76209 1.1 *If applicable, prices per SF/unit and capitalization rates and/or income multipliers based on effective sale price. Sale Comments: On September 13th, 2021 this 10,500 square foot property at 1215 Country Club Ln in Fort Worth was sold by First Gibraltar Bank. Advisors Commercial represented the seller on the deal. The building was vacant at the time of sale. Sale Comments: This property was purchased at auction with a 4% buyers premium. The buyer planned to convert the former library building for an owner occupied office use. Sale Comments: This sale was confirmed via reliable third party. Sale Comments: The property was 77.4% occupied at the time of sale. This sale was confirmed via a reliable third party. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 56 Improved Sale Comparable Photographs Improved Sale #1 Former Forest Green Library Improved Sale #2 Woodhaven Square Improved Sale #3 Office Warehouse Aeronca Ln Improved Sale #4 Eurpac Building Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 57 Improved Sales Map No.Name Miles From Subject GBA Price/GBA 1 Former Forest Green Library 29.5 9,087 $240.34 2 Woodhaven Square 33.0 10,500 $74.57 3 Office Warehouse Aeronca Ln 20.1 2,500 $182.00 4 Eurpac Building 25.1 20,090 $84.62 S Our Daily Bread 32,078 Analysis and Adjustment of Sales On the following page is a sales comparison grid displaying the subject property, the comparables and the adjustments applied. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 58 Sales Grid Subject Name Address City County State Date Price Price Adjustment Adjusted Price GBA GBA Unit Price Transaction Adjustments Property Rights Financing Conditions of Sale Market Trends Through Aug-20 2.0% Adjusted GBA Unit Price Location Access/Exposure Size Building Quality Age/Condition Economic Characteristics Adjusted GBA Unit Price Net Adjustments Gross Adjustments Summary Indicators Range Average Median Comparables - Unadjusted $74.57 - $240.34 $145.38 $133.31 Comparables - Adjusted $74.57 - $168.24 $118.41 $115.42 $133.31 $1,241,500.00 $165.00 gba Denton Oct-2021 Collin Aug-2020 Jan-2021 Dallas TX TXTX 11% -5% Cash to Seller Cash to Seller $0 $2,184,000 $0 $455,000$783,000 $0 $783,000 McKinney Apr-2020 $1,700,000 $0 $1,700,000 2,5009,087 $240.34 TX Sep-2021 Tarrant Dallas Fort Worth Irving 10,500 $74.57 Arm's LengthArm's Length $182.00 $84.62 30%20%20% – $145.60$74.57$168.24 -20% – – -30% $85.23 1% –– Comp 4 – Dallas Leased Fee – 20,090 $2,184,000 Arm's Length Leased FeeLeased Fee 909 North Loop 288 Our Daily Bread 3001 N. Skyway Cir. Comp 3 1215 Country Club Ln Comp 1 Comp 2 Former Forest Woodhaven Office Warehouse Eurpac Building 9015 Forest Lane 10035 Aeronca Ln – $455,000 Leased Fee Cash to Seller Reconciled Unit Value 5% $85.23$74.57 $182.00 1% Cash to Seller – -10% 32,078 TX Denton – Arm's Length – 10% – – $240.34 -10% – -20% –– -15% – -5% – – – Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 59 Comparable Sale Adjustments Property Rights This adjustment accounts for differing property rights such as fee simple, leased fee, leasehold, partial interest, etc. No adjustments for real property rights were required. Financing This adjustment accounts for seller financing, or assumption of existing financing, at non-market terms. No adjustments for financing terms were required. Conditions of Sale This adjustment accounts for extraordinary motivation of buyer or seller, assemblage, or forced sale. No adjustments for conditions of sale were required. Expenditures After Sale This adjustment accounts for atypical economics of a transaction, such as demolition cost, impact fees, remediation, or other expenditures by buyer at time of purchase. No adjustments for expenditures after sale were required. Economic Trends This adjustment accounts for changes in the economic environment over time that affect the appreciation and depreciation of real estate. The sales took place from April 2020 to October 2021. Market conditions generally have been strengthening over this period through the effective date of value. As a result, we apply upward adjustments of 2.0% per year to account for this trend. Location This adjustment accounts for market or submarket area influences on sale price or rental rate and/or surrounding land use influences. Comparable 1 has been adjusted downward due to its superior location when compared to the subject property. Comparables 2 and 4 have been adjusted upward due to their inferior location when compared to the subject property. Comparable 3 has not been adjusted. Access/Exposure This adjustment accounts for convenience to transportation facilities, ease of site access, visibility, and/or traffic counts. Comparable 1 has been adjusted downward due to its superior access/exposure when compared to the subject property. The remaining three comparables have not been adjusted. Size This adjustment accounts for the inverse relationship that often exists between size and unit value. All four comparables have been adjusted downward due to their smaller size when compared to the subject property. Building Quality This adjustment accounts for construction quality, amenities, market appeal, and/or functional utility. No adjustments for building quality were required. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 60 Age/Condition This adjustment accounts for effective age and/or physical condition. No adjustments for age/condition were required. Economic Characteristics This adjustment accounts for non-stabilized occupancy, above/below market rents, and other economic factors but excludes differences in rent levels that are already considered in previous adjustments, such as for location or quality. No adjustments for economic characteristics were required. Sales Comparison Approach Conclusion We note that our approach compares the subject as an office to determine the value of the subject at the time of aquisition. Our value indication is about even with the purchase price of the original office building, and therefore, we have concluded it to be a fair representation of value despite the donation portion of the transaction. Comparable 1 is considered the most comparable value to the subject as it is the most recent sale most reflective of current market conditions. Premise Value Indicated Value per GBA $165 Subject GBA 32,078 Indicated Stabilized Value $5,292,821 Adjustments Rounded As Is Value $5,290,000 Sales Approach Valuation Upon Stabilization Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 61 Final Reconciliation The process of reconciliation involves the analysis of each approach to value. The quality of data applied, the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. Finally, each is considered separately and comparatively with each other. Based on the preceding valuation analysis and subject to the definitions, assumptions, and limiting conditions expressed in the report, our value opinion follows: Value Indications Summary of Value Indications Market Value As Is Retrospective Market Value As Is Cost Approach $9,720,000 Not Utilized Sales Comparison Approach $5,290,000 $5,290,000 Income Capitalization Approach Not Utilized Not Utilized Reconciled $9,720,000 $5,290,000 Cost Approach The cost approach is most reliable for newer properties that have no significant amount of accrued depreciation. The subject represents new construction, and there is a relatively active market for land. As a result, the cost approach is applicable to the subject and is applied in our analysis. Nonetheless, it does not directly reflect market behavior, and is given secondary weight. Sales Comparison Approach The sales comparison approach is most reliable in an active market when an adequate quantity and quality of comparable sales data are available. In addition, it is typically the most relevant method for owner-user properties, because it directly considers the prices of alternative properties with similar utility for which potential buyers would be competing.Due to the unique, special use nature of the subject property, there is a lack of sales of properties that would be considered comparable to the subject. As such, we have not developed the sales comparison approach within this analysis. The omission of this approach does not impact the credibility of the results of this analysis. Income Approach The income capitalization approach is usually given greatest weight when evaluating investment properties. The value indication from the income capitalization approach is supported by market data regarding income, expenses and required rates of return. The income approach is not applicable due to the special use of the property by the city, as such it does not generate revenue. Further, market participants do not rely on this approach for properties like the subject. The omission of this approach does not impact the credibility of the results of this analysis. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 62 Value Conclusion Based on the data and analyses developed in this appraisal, we have reconciled to the following value conclusion(s), subject to the Limiting Conditions and Assumptions of this appraisal. Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value As Is Fee Simple February 9, 2023 $9,720,000 Retrospective Market Value As Is Fee Simple August 27, 2020 $5,290,000 The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in the analysis which, if found to be false, could alter the appraiser’s opinions of conclusions. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. A hypothetical condition is 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 purpose of analysis. Extraordinary Assumptions & Hypothetical Conditions Exposure Time Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Exposure time is always presumed to precede the effective date of the appraisal. Based on our review of recent sales transactions for similar properties and our analysis of supply and demand in the local Special Purpose market, it is our opinion that the probable exposure time for the subject at the concluded market value stated previously is 3 - 6 months. Marketing Time Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. Given the market uncertainty and volatility, marketing times are currently difficult to predict. It is our opinion that a reasonable marketing period for the subject is likely to be the same as the exposure time. Accordingly, we estimate the subject’s marketing period at 3 - 6 months. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 63 Insurable Value An estimate of insurable replacement cost based on the calculator method of Marshall Valuation Service is shown in the following table. This estimate is based on the replacement cost new of the building improvements. From the total of these amounts, we deduct insurance exclusions, such as foundations, piping below ground, and architect’s fees. Land value, site improvement costs, entrepreneurial profit, depreciation, and costs to raze damaged structures are not considered in the following estimate. JLL Valuation & Advisory Services are not insurance underwriters. We have not viewed the specific policy or policies that may cover the subject property, nor have we been given specific instructions by the client on inclusions and/or exclusions to the insurable replacement cost estimate. Methodologies for developing insurable replacement cost estimates vary between underwriters. The client should independently determine that the items included in our estimate are consistent with the terms of the subject’s insurance coverage. Failure by the client to independently verify proper methodology with respect to calculation of the replacement cost in accordance with the subject’s insurance coverage shall not be deemed negligence in the provision of these estimates. We are not experts in estimating replacement costs for insurable value purposes. We recommend the engagement of an appropriately qualified professional if a definitive estimate of insurable replacement cost is required. Insurable Value Building Name MVS Building Type MVS Building Class Quality Quantity Unit Unit Cost Cost New Our Daily Bread Office D Average 33,766 SF $121.92 $4,116,852 Subtotal $4,116,852 Less Insurance Exclusions: Piping Below Ground 2.0%$82,337 Foundation 3.0%$123,506 Architect's Fees 5.0%$205,843 Subtotal: Insurance Exclusions $411,685 Insurable Replacement Cost $3,705,167 Rounded $3,710,000 Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 64 Limiting Conditions and Assumptions 1. All reports and work product we deliver to you (collectively called “report”) represent an opinion of value, based on historical information and forecasts of market conditions. Actual results may vary from those forecast in the report. There is no guaranty or warranty that the opinion of value reflects the actual value of the property. 2. The conclusions stated in our report apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. Assessed values may change significantly and unexpectedly over short periods. We are not liable for any conclusions in the report that may be different if there are subsequent changes in value. We are not liable for loss relating to reliance upon our report more than three months after its date. 3. There may be differences between projected and actual results because events and circumstances frequently do not occur as predicted, and those differences may be material. We are not liable for any loss arising from these differences. 4. We are not obligated to predict future political, economic or social trends. We assume no responsibility for economic factors that may affect or alter the opinions in the report if the economic factors were not present as of the date of the letter of transmittal accompanying the report. 5. The report reflects an appraisal of the property free of any liens or encumbrances unless otherwise stated. 6. We assume responsible ownership and competent property management. 7. The appraisal process requires information from a wide variety of sources. We have assumed that all information furnished by others is correct and complete, up to date and can be relied upon, but no warranty is given for its accuracy. We do not accept responsibility for erroneous information provided by others. We assume that no information that has a material effect on our appraisal has been withheld. 8. We assume the following, unless informed to the contrary in writing: Each property has a good and marketable title. All documentation is satisfactorily drawn and that there are no encumbrances, restrictions, easements or other adverse title conditions, which would have a material effect on the value of the interest under consideration. There is no material litigation pending involving the property. All information provided by the Client, or its agents, is correct, up to date and can be relied upon. We are not responsible for considerations requiring expertise in other fields, including but not limited to: legal descriptions, interpretation of legal documents and other legal matters, geologic considerations such as soils and seismic stability, engineering, or environmental and toxic contaminants. We recommend that you engage suitable consultants to advise you on these matters. 9. We assume that all engineering studies are correct. The plot plans and illustrative material in the report are included only to help the reader visualize the property. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 65 10. We assume that there are no hidden or unapparent conditions of the property, subsoil or structures that render it more or less valuable. We are not responsible for such conditions or for obtaining the engineering studies that may be required to discover them. 11. We assume that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the report. We have not made or requested any environmental impact studies in conjunction with the report. We reserve the right to revise or rescind any opinion of value that is based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the report assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 12. Unless otherwise stated in the report, you should assume that we did not observe any hazardous materials on the property. We have no knowledge of the existence of such materials on or in the property; however, we are not qualified to detect such substances, and we are not providing environmental services. The presence of substances such as asbestos, urea-formaldehyde foam insulation and other potentially hazardous materials may affect the value of the property. Our report assumes that there is no such material on or in the property that would cause a loss in value. We do not assume responsibility for such conditions or for any expertise or engineering knowledge required to discover them. We encourage you to retain an expert in this field, if desired. We are not responsible for any such environmental conditions that exist or for any engineering or testing that might be required to discover whether such conditions exist. We are not experts in the field of environmental conditions, and the report is not an environmental assessment of the property. 13. We may have reviewed available flood maps and may have noted in the report whether the property is generally located within or out of an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property. Any opinion of value we include in our report assumes that floodplain and/or wetlands interpretations are accurate. 14. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether it is in compliance with the ADA. We claim no expertise in ADA issues, and render no opinion regarding compliance of the property with ADA regulations. 15. We assume that the property conforms to all applicable zoning and use regulations and restrictions unless we have identified, described and considered a non-conformity in the report. 16. We assume that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in the report is based. 17. We assume that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 66 18. We have not made any investigation of the financial standing of actual or prospective tenants unless specifically noted in the report. Where properties are valued with the benefit of leasing, we assume, unless we are informed otherwise, that the tenants are capable of meeting their financial obligations under the leases, all rent and other amounts payable under the leases have been paid when due, and that there are no undisclosed breaches of the leases. 19. We did not conduct a formal survey of the property and assume no responsibility for any survey matters. The Client has supplied the spatial data, including sketches and/or surveys included in the report, and we assume that data is correct, up to date and can be relied upon. 20. Unless otherwise stated, the opinion of value included in our report excludes any additional value attributable to goodwill, or to fixtures and fittings which are only of value, in situ, to the present occupier. We have made no allowance for any plant, machinery or equipment unless they form an integral part of the building and would normally be included in a sale of the building. We do not normally carry out or commission investigations into the capacity or condition of services being provided to the property. We assume that the services, and any associated controls or software, are in working order and free from defect. We also assume that the services are of sufficient capacity to meet current and future needs. 21. In the case of property where construction work is in progress, such as refurbishment or repairs, or where developments are in progress, we have relied upon cost information supplied to us by the Client or its appointed experts or upon industry accepted cost guides. In the case of property where construction work is in progress, or has recently been completed, we do not make allowance for any liability already incurred, but not yet discharged, in respect of completed work, or obligations in favor of contractors, subcontractors or any members of the professional or design team. We assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 22. Any allocation in the report of value between the land and the improvements applies only under the stated program of utilization. The separate values allocated to the land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 23. The report is confidential to the party to whom it is addressed and those other intended users specified in the report for the specific purpose to which it refers. Use of the report for any other purpose or use by any party not identified as an intended user of the report without our prior written consent is prohibited, and we accept no responsibility for any use of the report in violation of the terms of this Agreement. 24. We are not required to testify or provide court-related consultation or to be in attendance in court unless we have agreed to do so in writing. 25. Neither the whole report, nor any part, nor reference thereto, may be published in any manner without our prior written approval. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 67 26. We may rely on, and will not verify, the accuracy and sufficiency of documents, information and assumptions provided to it by the Client or others. We will not verify documents, information and assumptions derived from industry sources or that JLL or its affiliates have prepared in the regular course of business. We are not liable for any deficiency in the report arising from the inaccuracy or insufficiency of such information, documents and assumptions. However, our report will be based on our professional evaluation of all such available sources of information. 27. JLL IS NOT LIABLE TO ANY PERSON OR ENTITY FOR LOSS OF PROFITS, CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR SIMILAR DAMAGES IN CONNECTION WITH THIS AGREEMENT. IN NO EVENT SHALL THE LIABILITY OF JLL AND ITS AFFILIATES IN CONNECTION WITH THIS AGREEMENT EXCEED THE FEE PAID TO JLL HEREUNDER. 28. Unless expressly advised to the contrary, we assume that appropriate insurance coverage is and will continue to be available on commercially acceptable terms. 29. We assume that no material changes in any applicable federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 30. This report is subject to the following Extraordinary Assumptions and Hypothetical Conditions: The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in the analysis which, if found to be false, could alter the appraiser’s opinions of conclusions. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. A hypothetical condition is 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 purpose of analysis. Extraordinary Assumptions & Hypothetical Conditions Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Appendix A Appraiser Qualifications Appraiser: THOMAS MICHAEL BOGDON License #: TX 1321143 G License Expires: 06/30/2023 Chelsea BuchholtzCommissioner 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. THOMAS MICHAEL BOGDON 1717 MCKINNEY AVENUE SUITE 900 DALLAS, TX 75202 Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Appendix B Definitions Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Definitions The source of the following definitions is the Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015), unless otherwise noted. Amenity A tangible or intangible benefit of real property that enhances its attractiveness or increases the satisfaction of the user. Natural amenities may include a pleasant location near water or a scenic view of the surrounding area; man-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities. As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. Class of Apartment Property For the purposes of comparison, apartment properties are grouped into three classes. These classes represent a subjective quality rating of buildings, which indicates the competitive ability of each building to attract similar types of tenants. Combinations of factors such as rent, building finishes, system standards and efficiency, building amenities, location/accessibility, and market perception are used as relative measures. Class A apartment properties are the most prestigious properties competing for the premier apartment tenants, with rents above average for the area. Buildings have high-quality standard finishes, architectural appeal, state-of-the-art systems, exceptional accessibility, and a definite market presence. Class B apartment properties compete for a wide range of users, with rents in the average range for the area. Class B buildings do not compete with Class A buildings at the same price. Building finishes are fair to good for the area, and systems are adequate. Class C apartment properties compete for tenants requiring functional space at rents below the average for the area. Class C buildings are generally older, and are lower in quality and condition. (Adapted from “Class of Office Building” in The Dictionary of Real Estate Appraisal.) Deferred Maintenance Needed repairs or replacement of items that should have taken place during the course of normal maintenance. Depreciation A loss in property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. Discounted Cash Flow (DCF) Analysis The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Disposition Value The most probable price that a specified interest in real property should bring under the following conditions: 1. Consummation of a sale within a future exposure time specified by the client. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. An adequate marketing effort will be made during the exposure time specified by the client. 8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 10. This definition can also be modified to provide for valuation with specified financing terms. Effective Date of Appraisal The date to which the appraiser’s analyses, opinions, and conclusions apply; also referred to as date of value. Entrepreneurial Profit A market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur’s compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. In economics, the actual return on successful management practices, often identified with coordination, the fourth factor of production following land, labor, and capital; also called entrepreneurial return or entrepreneurial reward. Excess Land; Surplus Land Excess Land: Land that is not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land may have the potential to be sold separately and is valued independently. Surplus Land: Land that is not currently needed to support the existing improvement but cannot be separated from the property and sold off. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Exposure Time An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in the analysis which, if found to be false, could alter the appraiser’s opinions of conclusions. 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. Floor Area Ratio (FAR) The relationship between the above-ground floor area of a building, as described by the building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the region. Highest and Best Use The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Alternatively, the probable use of land or improved property – specific with respect to the user and timing of the use – that is adequately supported and results in the highest present value. Hypothetical Condition 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 purpose of analysis. Lease A contract in which rights to use and occupy land or structures are transferred by the owner to another for a specified period of time in return for a specified rent. Leased Fee Interest A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e, a lease). Leasehold Interest The tenant’s possessory interest created by a lease. Liquidation Value The most probable price that a specified interest in real property should bring under the following conditions: Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing effort is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars, or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 10. This definition can also be modified to provide for valuation with specified financing terms. Marketing Time An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. Market Rent The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements. Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[g]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Multifamily Property Type Residential structure containing five or more dwelling units with common areas and facilities. (Source: Appraisal Institute Commercial Data Standards and Glossary of Terms, Chicago, Illinois, 2004 [Appraisal Institute]) Multifamily Classifications Garden/Low Rise Apartments: A multifamily development of two- or three-story, walk-up structures built in a garden-like setting; customarily a suburban or rural-urban fringe development. (Source: Appraisal Institute) Mid/High-Rise Apartment Building: A multifamily building with four or more stories, typically elevator- served. (Source: Appraisal Institute) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Rentable Floor Area (RFA) Rentable area shall be computed by measuring inside finish of permanent outer building walls or from the glass line where at least 50% of the outer building wall is glass. Rentable area shall also include all area within outside walls less stairs, elevator shafts, flues, pipe shafts, vertical ducts, air conditioning rooms, fan rooms, janitor closets, electrical closets, balconies and such other rooms not actually available to the tenant for his furnishings and personnel and their enclosing walls. No deductions shall be made for columns and projections unnecessary to the building. (Source: Income/Expense Analysis, 2013 Edition – Conventional Apartments, Institute of Real Estate Management, Chicago, Illinois) Replacement Cost The estimated cost to construct, at current prices as of the effective appraisal date, a substitute for the building being appraised, using modern materials and current standards, design and layout. Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. Room Count A unit of comparison used primarily in residential appraisal. No national standard exists on what constitutes a room. The generally accepted method is to consider as separate rooms only those rooms that are effectively divided and to exclude bathrooms. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Stabilized Income Income at that point in time when abnormalities in supply and demand or any additional transitory conditions cease to exist and the existing conditions are those expected to continue over the economic life of the property; projected income that is subject to change, but has been adjusted to reflect an equivalent, stable annual income. Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Appendix C Financials and Property Information Document A133™ – 2019 Exhibit A Guaranteed Maximum Price Amendment Init. / AIA Document A133™ – 2019 Exhibit A. Copyright © 1991, 2003, 2009, and 2019 by The American Institute of Architects. All rights reserved. The “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are registered trademarks and may not be used without permission. This document was produced by AIA software at 11:39:31 ET on 11/08/2021 under Order No.4786552496 which expires on 05/13/2022, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail copyright@aia.org. User Notes: (1297692784) 1 This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. AIA Document A201™–2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. This Amendment dated the day of in the year Two Thousand Twenty- , is incorporated into the accompanying AIA Document A133™–2019, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price dated the day of in the year Two Thousand Twenty-One (the "Agreement") (In words, indicate day, month, and year.) for the following Work, which is a portion of the PROJECT: (Name and address or location) Loop 288 – The Junction 909 North 288 Denton, TX 76209 THE OWNER: (Name, legal status, and address) City of Denton 215 East McKinney StreetDenton, TX 76201 (940) 349-8307 THE CONSTRUCTION MANAGER: (Name, legal status, and address) Balfour Beatty Construction, LLC 3100 McKinnon Street, 6th Floor Dallas, TX 75201 TABLE OF ARTICLES A.1 GUARANTEED MAXIMUM PRICE A.2 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION A.3 INFORMATION UPON WHICH AMENDMENT IS BASED A.4 CONSTRUCTION MANAGER’S CONSULTANTS, CONTRACTORS, DESIGN PROFESSIONALS, AND SUPPLIERS ARTICLE A.1 GUARANTEED MAXIMUM PRICE § A.1.1 Guaranteed Maximum PricePursuant to Section 3.2.6 of the Agreement, the Owner and Construction Manager hereby amend the Agreement to establish a Guaranteed Maximum Price. As agreed by the Owner and Construction Manager, the Guaranteed Maximum Price is an amount that the Contract Sum shall not exceed. The Contract Sum consists of the Construction Manager’s Fee plus the Cost of the Work, as that term is defined in Article 6 of the Agreement. Init. / AIA Document A133™ – 2019 Exhibit A. Copyright © 1991, 2003, 2009, and 2019 by The American Institute of Architects. All rights reserved. The “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are registered trademarks and may not be used without permission. This document was produced by AIA software at 11:39:31 ET on 11/08/2021 under Order No.4786552496 which expires on 05/13/2022, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail copyright@aia.org. User Notes: (1297692784) 2 § A.1.1.1 The Contract Sum is guaranteed by the Construction Manager not to exceed nine million seven hundred eighty-four thousand seven hundred one dollars ($ 9,784,701.00 ), subject to additions and deductions by Change Order as provided in the Contract Documents. § A.1.1.2 Itemized Statement of the Guaranteed Maximum Price. Provided below is an itemized statement of the Guaranteed Maximum Price organized by trade categories, including allowances; categories; the Construction Manager’s contingency; alternates; Contingency; the Owner’s Contingency; the Construction Manager’s Fee; and other items that comprise the Guaranteed Maximum Price as defined in Section 3.2.1 of the Agreement. (Provide itemized statement below or reference an attachment.) See Exhibit "N" - Itemized Statement of the Guaranteed Maximum Price and Clarifications § A.1.1.3 The Construction Manager’s Fee is set forth in converted to and fixed as a lump sum in accordance with Section 6.1.2 of the Agreement. § A.1.1.4 The method of adjustment of the Construction Manager’s Fee for changes in the Work is set forth in Section 6.1.3 Sections 6.1.2.1 and 6.1.2.3 of the Agreement. § A.1.1.5 Alternates § A.1.1.5.1 Alternates, if any, included in the Guaranteed Maximum Price: Item PriceSee Exhibit "J" – Alternates with Costs and Expiration Dates § A.1.1.5.2 Subject to the conditions noted below, the following alternates may be accepted by the Owner following execution of this Exhibit A. Upon acceptance, the Owner shall issue a Modification to the Agreement. (Insert below each alternate and the conditions that must be met for the Owner to accept the alternate.) Item Price Conditions for Acceptance See Exhibit "J" – Alternates with Costs and Expiration Dates § A.1.1.6 Unit prices, if any: (Identify the item and state the unit price and quantity limitations, if any, to which the unit price will be applicable.) Item Units and Limitations Price per Unit ($0.00) See Exhibit "K" – Unit Costs ARTICLE A.2 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION § A.2.1 The date of commencement of the Work shall be: (Check one of the following boxes.) [ ]The date of execution of this Amendment. [ X ]Established as follows: (Insert a date or a means to determine the date of commencement of the Work.) The date the Notice to Proceed, the building permit and the executed Amendment are all received by the Contractor. If a date of commencement of the Work is not selected, then the date of commencement shall be the date of execution of this Amendment. § A.2.2 Unless otherwise provided, the Contract Time is the period of time, including authorized adjustments, allotted in the Contract Documents for Substantial Completion of the Work. The Contract Time shall be measured from the date of commencement of the Work. Init. / AIA Document A133™ – 2019 Exhibit A. Copyright © 1991, 2003, 2009, and 2019 by The American Institute of Architects. All rights reserved. The “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are registered trademarks and may not be used without permission. This document was produced by AIA software at 11:39:31 ET on 11/08/2021 under Order No.4786552496 which expires on 05/13/2022, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail copyright@aia.org. User Notes: (1297692784) 3 § A.2.3 Substantial Completion § A.2.3.1 Subject to adjustments of the Contract Time as provided in the Contract Documents, the Construction Manager shall achieve Substantial Completion of the entire Work:Work by the date set forth in: (Check one of the following boxes and complete the necessary information.) [ X ]Not later than three hundred and twenty three ( 323 ) calendar days from the date of commencement of the Work. [ ]By the following date: § A.2.3.2 Subject to adjustments of the Contract Time as provided in the Contract Documents, if portions of the Work are to be completed prior to Substantial Completion of the entire Work, the Construction Manager shall achieve Substantial Completion of such portions by the following dates: If the Construction Manager fails to achieve Substantial Completion as provided in this Section A.2.3, liquidated damages, if any, shall be assessed as set forth in Section 8.6 of the General Conditions of the Agreement.. Portion of Work Substantial Completion Date § A.2.3.3 If the Construction Manager fails to achieve Substantial Completion as provided in this Section A.2.3, liquidated damages, if any, shall be assessed as set forth in Section 6.1.6 of the Agreement. ARTICLE A.3 INFORMATION UPON WHICH AMENDMENT IS BASED § A.3.1 The Guaranteed Maximum Price and Contract Time set forth in this Amendment are based on the Contract Documents and the following: The language of Section 7.7.8 of the Agreement is amended as shown in Exhibit "Q" – Contract Language Amendment § A.3.1.1 The following Supplementary and other Conditions of the Contract: AIA A201 – General Conditions (2017) as amended and included in the original AIA A133 – O-CMaR Agreement, which shall remain unchanged by this Amendment. Document Title Date Pages § A.3.1.2 The following Specifications: (Either list the Specifications here, or refer to an exhibit attached to this Amendment.) See Exhibit "C" – Scope of Work Section Title Date Pages § A.3.1.3 The following Drawings: (Either list the Drawings here, or refer to an exhibit attached to this Amendment.) See Exhibit "C" – Scope of Work Number Title Date § A.3.1.4 The Sustainability Plan, if any: (If the Owner identified a Sustainable Objective in the Owner’s Criteria, identify the document or documents that comprise the Sustainability Plan by title, date and number of pages, and include other identifying information. The Sustainability Plan identifies and describes the Sustainable Objective; the targeted Sustainable Measures; Init. / AIA Document A133™ – 2019 Exhibit A. Copyright © 1991, 2003, 2009, and 2019 by The American Institute of Architects. All rights reserved. The “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are registered trademarks and may not be used without permission. This document was produced by AIA software at 11:39:31 ET on 11/08/2021 under Order No.4786552496 which expires on 05/13/2022, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail copyright@aia.org. User Notes: (1297692784) 4 implementation strategies selected to achieve the Sustainable Measures; the Owner’s and Construction Manager’s roles and responsibilities associated with achieving the Sustainable Measures; the specific details about design reviews, testing or metrics to verify achievement of each Sustainable Measure; and the Sustainability Documentation required for the Project, as those terms are defined in Exhibit C to the Agreement.) Title Date PagesNot Applicable Other identifying information: § A.3.1.5 Allowances, if any, included in the Guaranteed Maximum Price: (Identify each allowance.) Item Price See Exhibit "L" – Allowances § A.3.1.6 Assumptions and clarifications, if any, upon which the Guaranteed Maximum Price is based: (Identify each assumption and clarification.) See Exhibit "N" - Itemized Statement of the Guaranteed Maximum Price and Clarifications § A.3.1.7 The Guaranteed Maximum Price is based upon the following other documents and information:information, all of which are attached to this Amendment and incorporated by reference herein for all purposes: (List any other documents or information here, or refer to an exhibit attached to this Amendment.) Exhibit "A" – Guaranteed Maximum Price AmendmentExhibit "B" – Insurance and BondsExhibit "C" – Scope of Work Exhibit "D" – Construction Manager’s Project Schedule Exhibit "E" – Construction Manager’s Soft Costs and Fee Exhibit "F" – Key Personnel Exhibit "G" – Confidentiality of the Project Exhibit "H" – Customary and Usual Labor Rates Exhibit "I" – Rental Rates Exhibit "J" – Alternates with Costs and Expiration Dates Exhibit "K" – Unit Costs Exhibit "L" – Allowances Exhibit "M" – Schedule of Values Exhibit "N" – Itemized Statement of the Guaranteed Maximum Price and Clarifications Exhibit "O" – Escrow and Financing Conditions Exhibit "P" – Disputed Work Schedule Exhibit "Q" – Contract Language Amendment Exhibit "Z" – Schedule of Exhibits ARTICLE A.4 CONSTRUCTION MANAGER’S CONSULTANTS, CONTRACTORS, DESIGN PROFESSIONALS, AND SUPPLIERS § A.4.1 The Construction Manager shall retain the consultants, contractors, design professionals, and suppliers, as may (or may not) be identified in the Exhibit referenced below: (List name, discipline, address, and other information.) See Exhibit "N" - Itemized Statement of the Guaranteed Maximum Price and Clarifications This Amendment to the Agreement entered into as of the day and year first written above. Init. / AIA Document A133™ – 2019 Exhibit A. Copyright © 1991, 2003, 2009, and 2019 by The American Institute of Architects. All rights reserved. The “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are registered trademarks and may not be used without permission. This document was produced by AIA software at 11:39:31 ET on 11/08/2021 under Order No.4786552496 which expires on 05/13/2022, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail copyright@aia.org. User Notes: (1297692784) 5 OWNER (Signature)CONSTRUCTION MANAGER (Signature) (Printed name and title)(Printed name and title) Init. / AIA Document A133™ – 2019 Exhibit A. Copyright © 1991, 2003, 2009, and 2019 by The American Institute of Architects. All rights reserved. The “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are registered trademarks and may not be used without permission. This document was produced by AIA software at 11:39:31 ET on 11/08/2021 under Order No.4786552496 which expires on 05/13/2022, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail copyright@aia.org. User Notes: (1297692784) 6 THIS AGREEMENT HAS BEEN BOTH REVIEWED AND APPROVED as to financial and operational obligations and business terms. _______________ ________________ SIGNATURE PRINTED NAME __________________________________ TITLE __________________________________ DEPARTMENT ATTEST: ROSA RIOS, CITY SECRETARY By;_______________________________ APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY By;_______________________________ CONSTRUCTION MANAGER BY: _______________________________ AUTHORIZED SIGNATURE Date: _______________________________ Printed Name: W. Pleas Mitchell, Jr. Title: President _______________________________ PHONE NUMBER _______________________________ EMAIL ADDRESS _______________________________TEXAS ETHICS COMMISSION CERTIFICATE NUMBER CITY OF DENTON, TEXASA Texas Municipal Corporation By: _________________________SARA HENSLEYINTERIM CITY MANAGER AIA Document D401™ – 2003. Copyright © 1992 and 2003 by The American Institute of Architects. All rights reserved. The “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are registered trademarks and may not be used without permission. This document was produced by AIA software at 11:39:31 ET on 11/08/2021 under Order No.4786552496 which expires on 05/13/2022, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail copyright@aia.org. User Notes: (1297692784) 1 Certification of Document’s Authenticity AIA® Document D401™ – 2003 I, Chris Squadra, hereby certify, to the best of my knowledge, information and belief, that I created the attached final document simultaneously with this certification at 11:39:31 ET on 11/08/2021 under Order No. 4786552496 from AIA Contract Documents software and that in preparing the attached final document I made no changes to the original text of AIA® Document A133™ – 2019 Exhibit A, Guaranteed Maximum Price Amendment, as published by the AIA in its software, other than changes shown in the attached final document by underscoring added text and striking over deleted text. _____________________________________________________________ (Signed) _____________________________________________________________ (Title) _____________________________________________________________ (Dated) Chris Squadra, Principal 08-NOV-2021 Page 1 of 1 City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner – CMAR Agreement – Exhibit B – Insurance and Bonds This Amendment is not intended to change the Exhibit B - Insurance & Bonds in place with the original A133 - Owner-CMAR Agreement, which remain in full force and effect. END OF EXHIBIT B – Insurance and Bonds Page 1 of 9 City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner – CMAR Agreement – Exhibit C – Scope of Work / List of Documents Drawings Sheet Number and Title GENERAL G0.00 - COVER 09/17/2021 G1.00 - ACCESSIBILITY 09/07/2021 G2.00 - ACCESSIBILITY 09/07/2021 G3.00 - CODE COMPLIANCE & EGRESS PLAN 09/07/2021 CIVIL C1.01 - GENERAL NOTES 09/07/2021 C1.02 - SITE PLAN 09/17/2021 C1.03 - DEMOLITION PLAN 09/07/2021 C1.04 - PLAN 09/07/2021 C1.05 - GRADING PLAN 1 09/17/2021 C1.06 - GRADING PLAN 2 09/17/2021 C1.07 - DRAINAGE AREA MAP 09/07/2021 C1.08 - STORM SEWER PLAN & PROFILE 09/17/2021 C1.09 - PLAN 09/07/2021 C1.10 - NOTES 09/07/2021 C2.01 - SIDEWALK DETAILS 09/07/2021 C2.02 - PAVING DETAILS 09/07/2021 C2.03 - DETAILS 09/07/2021 C2.04 - EMBEDMENT DETAIL 09/07/2021 C2.05 - STORM SEWER DETAILS 09/07/2021 C2.06 - DETAILS 09/07/2021 C2.07 - CITY DETAILS 09/07/2021 LANDSCAPE NONE STRUCTURAL S0.0 - CONTENTS: GENERAL NOTES 09/17/2021 S0.1 - CONTENTS: STATEMENT OF SPECIAL INSPECTIONS 09/07/2021 S1.1 - CONTENTS: OVERALL FOUNDATION PLAN 09/07/2021 Page 2 of 9 City of Denton The Junction Project Denton, Texas October 8, 2021 S1.1A - CONTENTS: BLDG A FOUNDATION PLAN 09/17/2021 S1.1B - CONTENTS: BLDG B FOUNDATION PLAN 09/17/2021 S2.1 - CONTENTS: OVERALL ROOF FRAMING PLAN 09/07/2021 S2.1A - CONTENTS: BLDG A ROOF FRAMING PLAN 09/17/2021 S2.1B - CONTENTS: BLDG B ROOF FRAMING PLAN 09/17/2021 S3.1 - CONTENTS: TYPICAL CONCRETE DETAILS 09/17/2021 S5.1 - CONTENTS: TYPICAL STEEL DETAILS 09/07/2021 S6.1 - CONTENTS: TYPICAL WOOD FRAMING DETAILS 09/17/2021 S6.2 - CONTENTS: TYPICAL WOOD FRAMING DETAILS 09/17/2021 ARCHITECTURAL A1.00 - GENERAL NOTES AND LEGENDS 09/07/2021 AD2.01A - DEMOLITION PLAN AREA - A 09/17/2021 AD2.01B - DEMOLITION PLAN AREA - B 09/17/2021 A2.01 - OVERALL FLOOR PLAN 09/07/2021 A2.01A - FLOOR PLAN AREA - A 09/17/2021 A2.01B - FLOOR PLAN AREA - B 09/17/2021 A2.01 C - FLOOR PLAN ALT.10 09/17/2021 A2.02A - REFLECTED CEILING PLAN AREA - A 09/07/2021 A2.02A-ALT - REFLECTED CEILING PLAN AREA - ALTERNATE 09/07/2021 A2.02B - REFLECTED CEILING PLAN AREA - B 09/17/2021 A2.02B-AL - REFLECTED CEILING PLAN AREA - B ALTERNATE 09/17/2021 A2.03A - ROOF PLAN AREA A 09/07/2021 A2.03B - ROOF PLAN AREA B 09/07/2021 A3.01 - ENLARGED FLOOR PLANS 09/17/2021 A3.02 - ENLARGED FLOOR PLANS 09/17/2021 A3.03 - ENLARGED FLOOR PLANS 09/17/2021 A3.04 - ENLARGED FLOOR PLAN ALTERNATE 09/07/2021 A3.05 - ENLARGED FLOOR PLANS 09/07/2021 A3.06 - ENLARGED FLOOR PLAN 09/07/2021 A4.01 - EXTERIOR ELEVATIONS 09/07/2021 A4.02 - EXTERIOR ELEVATIONS 09/17/2021 A4.03 - EXTERIOR ELEVATIONS 09/07/2021 A5.01 - WALL SECTIONS 09/07/2021 A7.01 - INTERIOR ELEVATIONS 09/17/2021 A7.02 - INTERIOR ELEVATIONS 09/17/2021 A8.01 - ROOM FINISH SCHEDULE 09/07/2021 A8.02 - DOOR SCHEDULE 09/17/2021 A9.01 - PARTITION TYPES AND DETAILS 09/17/2021 MECHANICAL MP0.0 - LEGEND AND GENERAL NOTES - MECHANICAL / PLUMBING 09/07/2021 M0.1 - SCHEDULES - MECHANICAL 09/07/2021 M0.2 - SCHEDULES - MECHANICAL 09/07/2021 M2.1 A - FIRST FLOOR PLAN AREA A -MECHANICAL 09/17/2021 Page 3 of 9 City of Denton The Junction Project Denton, Texas October 8, 2021 M2.1 B - FIRST FLOOR PLAN AREA B -MECHANICAL 09/17/2021 M2.1 B - ALT - FIRST FLOOR PLAN AREA B -MECHANICAL 09/17/2021 M2.2 A - ROOF PLAN AREA A -MECHANICAL 09/07/2021 M2.2B - ROOF PLAN AREA B -MECHANICAL 09/17/2021 M4.1 - DETAILS - MECHANICAL 09/07/2021 M4.2 - CONTROLS DIAGRAM - MECHANICAL 09/07/2021 M4.3 - KITCHEN HOOD DRAWINGS 09/07/2021 M4.4 - KITCHEN HOOD DRAWINGS 09/07/2021 M4.5 - KITCHEN HOOD DRAWINGS 09/07/2021 M4.6 - KITCHEN HOOD DRAWINGS 09/07/2021 M4.7 - KITCHEN HOOD DRAWINGS 09/07/2021 M4.8 - KITCHEN HOOD DRAWINGS 09/07/2021 PLUMBING P0.1 - SCHEDULES - PLUMBING 09/17/2021 P2.0 A - UNDERFLOOR PLAN AREA A -WASTE AND VENT 09/17/2021 P2.0 B - UNDERFLOOR PLAN AREA B -WASTE AND VENT 09/17/2021 P2.1 A - FIRST FLOOR PLAN AREA A -WASTE AND VENT 09/17/2021 P2.1 B - FIRST FLOOR PLAN AREA B -PLUMBING 09/17/2021 P3.1 A - FIRST FLOOR PLAN AREA A -PRESSURE PIPE 09/17/2021 P3.1 B - FIRST FLOOR PLAN AREA B -PRESSURE PIPE 09/17/2021 P3.2 A - ROOF PLAN AREA A - GAS 09/07/2021 P3.2 B - ROOF PLAN AREA B - GAS 09/07/2021 P4.1 - DETAILS - PLUMBING 09/07/2021 P4.2 - DETAILS - PLUMBING 09/17/2021 P5.1 - ENLARGED PLANS -PLUMBING 09/17/2021 P5.2 - ENLARGED PLANS -PLUMBING 09/07/2021 P5.3 - ENLARGED PLANS -PLUMBING 09/17/2021 ELECTRICAL E0.0 - LEGEND AND GENERAL NOT - ELECTRICAL 09/07/2021 ED1.0 - SITE DEMOLITION PLAN -ELECTRICAL 09/17/2021 ED3.1 A - FIRST FLOOR DEMOLITION PLAN AREA A - POWER 09/07/2021 ED3.1 B - FIRST FLOOR DEMOLITION PLAN AREA B - POWER 09/07/2021 E0.1 - ONE LINE 09/17/2021 E0.2 - ONE LINE / PANELBOARDS 09/17/2021 E0.3 - PANELBOARDS 09/07/2021 E0.4 - PANELBOARDS 09/07/2021 E0.5 - SCHEDULES 09/07/2021 E1.0 - SITE PLAN -ELECTRICAL 09/17/2021 E2.1 A - FIRST FLOOR PLAN AREA A LIGHTING 09/17/2021 Page 4 of 9 City of Denton The Junction Project Denton, Texas October 8, 2021 E2.1 B - FIRST FLOOR PLAN AREA B LIGHTING 09/17/2021 E3.1 A - FIRST FLOOR PLAN AREA A POWER 09/17/2021 E3.1 B - FIRST FLOOR PLAN AREA B POWER 09/17/2021 E4.1 B - FIRST FLOOR PLAN AREA B POWER TO MECHANICAL 09/17/2021 E4.2 A - ROOF PLAN AREA A - POWER MECHANICAL 09/07/2021 E4.2 B - ROOF PLAN AREA B - POWER MECHANICAL 09/07/2021 E5.1 - DETAILS - ELECTRICAL 09/17/2021 E6.1 - ENLARGED KITCHEN PLAN -POWER AND LIGHTING 09/17/2021 E6.2 - PARTIAL AND ENLARGED PLAN - ALTERNATE 09/17/2021 FIRE PROTECTION FP2.1 A - FIRST FLOOR PLAN AREA A -FIRE PROTECTION 09/07/2021 FP2.1 B - FIRST FLOOR PLAN AREA B -FIRE PROTECTION 09/07/2021 KITCHEN EQUIPMENT 11.1 - FOOD FACILITIES EQUIPMENT ARRANGEMENT PLAN 09/07/2021 11.2 - FOOD FACILITIES EQUIPMENT VENTILATION PLAN 09/07/2021 11.3 - FOOD FACILITIES EQUIPMENT ELECTRICAL PLAN 09/07/2021 11.4 - FOOD FACILITIES EQUIPMENT PLUMBING PLAN 09/07/2021 11.5 - FOOD FACILITIES EQUIPMENT CONSTRUCTION PLAN 09/07/2021 11.6 - WALK IN COOLER FREEZER REFRIGERATION DETAILS 09/07/2021 11.7 - EXHAUST HOOD & FIRE SUPPRESSION DETAILS 09/07/2021 11.8 - FOOD FACILITIES EQUIPMENT ELEVATIONS & DETAILS 09/07/2021 11.9 - FOOD FACILITIES EQUIPMENT ELEVATIONS & DETAILS 09/07/2021 Specifications Specification Number and Title DIVISION 00 - PROCUREMENT AND CONTRACTING REQUIREMENTS 00 01 01 PROJECT TITLE PAGE 09/07/2021 00 01 02 PROJECT INFORMATION 09/07/2021 00 01 03 PROJECT DIRECTORY 09/07/2021 00 01 10 TABLE OF CONTENTS 09/07/2021 00 21 13 INSTRUCTIONS TO BIDDERS 09/07/2021 00 31 00 AVAILABLE PROJECT INFORMATION 09/07/2021 00 41 00 BID FORM 09/07/2021 00 43 25 SUBSTITUTION REQUEST FORM – DURING PROCUREMENT 09/07/2021 00 63 25 SUBSTITUTION REQUEST FORM – DURING CONSTRUCTION 09/07/2021 Page 5 of 9 City of Denton The Junction Project Denton, Texas October 8, 2021 00 72 00 GENERAL CONDITIONS 09/07/2021 DIVISION 01 - GENERAL REQUIREMENTS 01 10 00 SUMMARY 09/07/2021 01 22 00 UNIT PRICING 09/07/2021 01 23 00 ALTERNATES 09/16/2021 01 25 00 SUBSTITUTION PROCEDURES 09/07/2021 01 30 00 ADMINISTRATIVE REQUIREMENTS 09/07/2021 01 32 33 PHOTOGRAPHIC DOCUMENTATION 09/07/2021 01 40 00 QUALITY REQUIREMENTS 09/07/2021 01 41 00 REGULATORY REQUIREMENTS 09/07/2021 01 42 19 REFERENCE STANDARDS 09/07/2021 01 45 33 CODE-REQUIRED SPECIAL INSTRUCTIONS AND PROCEDURES 09/07/2021 01 5000 TEMPORARY FACILITIES AND CONTROLS 09/07/2021 01 51 00 TEMPORARY UTILITIES 09/07/2021 01 52 13 FIELD OFFICES AND SHEDS 09/07/2021 01 55 00 VEHICULAR ACCESS AND PARKING 09/07/2021 01 56 39 TEMPORARY TREE AND PLANT PROTECTION 09/07/2021 01 57 13 TEMPORARY EROSION AND SEDIMENT CONTROL 09/07/2021 01 57 19 TEMPORARY ENVIRONMENTAL CONTROLS 09/07/2021 01 78 00 CLOSEOUT SUBMITTALS 09/07/2021 01 79 00 DEMONSTRATION AND TRAINING 09/07/2021 DIVISION 02 - EXISTING CONDITIONS 02 41 00 DEMOLITION (ARCHITECTURAL) 09/07/2021 02 41 00 SELECTIVE DEMOLITION (CIVIL) 09/07/2021 DIVISION 03 - CONCRETE 03 11 00 CONCRETE FORMING 09/07/2021 03 11 13 STRUCTURAL CONCRETE FORMING 09/07/2021 03 15 00 CAST-IN ANCHORS AND EMBEDS 09/07/2021 03 20 00 CONCRETE REINFORCING (CIVIL) 09/07/2021 03 20 00 CONCRETE REINFORCING (STRUCTURAL) 09/07/2021 03 30 00 CAST-IN-PLACE CONCRETE 09/07/2021 03 31 00 STRUCTURAL CONCRETE 09/07/2021 03 35 11 CONCRETE FLOOR SEALERS 09/07/2021 03 62 14 GROUTING STEEL BASE PLATES 09/07/2021 DIVISION 04 - MASONRY 04 05 11 MORTAR AND MASONRY GROUT 09/07/2021 Page 6 of 9 City of Denton The Junction Project Denton, Texas October 8, 2021 04 20 01 BRICK VENEER 09/07/2021 DIVISION 05 - METALS 05 12 00 STRUCTURAL STEEL FRAMING 09/07/2021 05 50 00 METAL FABRICATIONS 09/07/2021 05 52 13 STEEL PIPE AND TUBE RAILINGS 09/07/2021 DIVISION 06 - WOOD, PLASTICS AND COMPOSITES 06 10 00 ROUGH CARPENTRY 09/07/2021 06 10 15 STRUCTURAL WOOD FRAMING 09/07/2021 06 41 00 PLASTIC LAMINATE CLAD CABINETS 09/07/2021 06 64 00 FIBERGLASS REINFORCED PLASTIC PANELS 09/07/2021 DIVISION 07 - THERMAL AND MOISTURE PROTECTION 07 21 10 BATT INSULATION 09/07/2021 07 21 19 SPRAYED FOAM INSULATION 09/07/2021 07 28 26 FLUID-APPLIED MEMBRANE AIR BARRIERS 09/07/2021 07 46 46 FIBER CEMENT SIDING AND SOFFITS 09/07/2021 07 84 00 FIRESTOPPING 09/07/2021 07 90 00 JOINT SEALERS 09/07/2021 DIVISION 08 - OPENINGS 08 11 13 HOLLOW METAL DOORS AND FRAMES 09/16/2021 08 14 15 FLUSH WOOD DOORS 09/21/2021 08 14 16 PLASTIC LAMINATE-CLAD WOOD DOORS 09/07/2021 08 31 00 ACCESS DOORS AND PANELS 09/07/2021 08 33 00 COILING COUNTER SHUTTERS 09/16/2021 08 41 00 ALUMINUM-FRAMED ENTRANCES AND STOREFRONTS 09/07/2021 08 51 13 ALUMINUM WINDOWS 09/07/2021 08 71 00 DOOR HARDWARE 09/16/2021 08 80 00 GLAZING 09/07/2021 DIVISION 09 - FINISHES 09 21 16 GYPSUM BOARD ASSEMBLIES 09/07/2021 09 30 00 TILING 09/07/2021 09 51 00 ACOUSTICAL CEILINGS 09/07/2021 09 65 00 RESILIENT FLOORING 09/07/2021 09 87 00 CONCRETE STAINING 09/07/2021 09 90 00 PAINTING AND COATING 09/07/2021 09 94 50 ELASTOMERIC COATINGS 09/07/2021 Page 7 of 9 City of Denton The Junction Project Denton, Texas October 8, 2021 09 97 25 CONCRETE FLOOR SEALER 09/07/2021 DIVISION 10 - SPECIALTIES 10 14 23 INTERIOR PANEL SIGNS 09/07/2021 10 21 13 PHENOLIC TOILET COMPARTMENTS 09/07/2021 10 26 00 WALL AND CORNER GUARDS 09/07/2021 10 28 00 TOILET AND BATH ACCESSORIES 09/07/2021 10 44 13 FIRE EXTINGUISHERS AND CABINETS 09/07/2021 10 73 00 PROTECTIVE COVERS 09/07/2021 DIVISION 11 - EQUIPMENT 11 40 00 KITCHEN AND FOOD SERVING EQUIPMENT 09/07/2021 DIVISION 12 - FURNISHINGS 12 21 13 HORIZONTAL LOUVER BLINDS DIVISION 13 - SPECIAL CONSTRUCTION NONE DIVISION 14 - CONVEYING EQUIPMENT NONE DIVISION 21 - FIRE SUPPRESSION 20 15 00 COMMON WORK RESULTS FOR FIRE SUPPRESSION 09/21/2021 21 00 10 FIRE SUPPRESSION SUBMITTAL PROCESS 09/07/2021 21 05 00 COMMON WORK RESULTS FOR FIRE SUPPRESSION 09/07/2021 21 10 00 FIRE PROTECTION SYSTEMS 09/07/2021 21 13 00 WET-PIPE SPRINKLER SYSTEMS 09/07/2021 DIVISION 22 - PLUMBING 22 00 10 PLUMBING SUBMITTAL PROCESS 09/07/2021 22 05 00 COMMON WORK RESULTS FOR PLUMBING 09/07/2021 22 05 13 COMMON MOTOR REQUIREMENTS FOR PLUMBING EQUIPMENT 09/07/2021 22 05 16 EXPANSION FITTINGS AND LOOPS FOR PLUMBING FITTINGS 09/07/2021 22 05 19 METERS AND GAGES FOR PLUMBING PIPING 09/07/2021 22 05 23 GENERAL-DUTY VALVES FOR PLUMBING PIPING 09/07/2021 22 05 29 HANGERS AND SUPPORTS FOR PLUMBING PIPING AND EQUIPMENT 09/07/2021 22 05 53 IDENTIFICATION FOR PLUMBING PIPING AND EQUIPMENT 09/07/2021 22 07 00 PLUMBING INSULATION 09/07/2021 22 11 00 FACILITY WATER DISTRIBUTION 09/07/2021 22 11 23 DOMESTIC WATER PUMPS 09/07/2021 22 13 00 FACILITY SANITARY SEWERAGE 09/07/2021 22 14 23 REINFORCED CONCRETE STORM SEWERS 09/07/2021 22 34 36 COMMERCIAL GAS DOMESTIC WATER HEATER 09/07/2021 22 42 00 COMMERCIAL PLUMBING FIXTURES 09/07/2021 Page 8 of 9 City of Denton The Junction Project Denton, Texas October 8, 2021 DIVISION 23 - HEATING, VENTILATING AND AIR CONDITIONING 23 00 10 MECHANICAL SUBMITTAL PROCESS 09/07/2021 23 05 00 COMMON WORK RESULTS FOR HVAC 09/07/2021 23 05 13 COMMON MOTOR REQUIREMENTS FOR HVAC EQUIPMENT 09/07/2021 23 05 29 HANGERS AND SUPPORTS FOR HVAC PIPING AND EQUIPMENT 09/07/2021 23 05 53 IDENTIFICATION FOR HVAC PIPING AND EQUIPMENT 09/07/2021 23 05 93 INSTRUMENTATION AND CONTROL FOR HVAC 09/16/2021 23 05 93 TESTING-ADJUSTING- BALANCING FOR HVAC 09/07/2021 23 07 00 HVAC INSULATION 09/07/2021 23 09 00 INSTRUMENTATION AND CONTROL FOR HVAC 09/07/2021 23 11 23 FACILITY NATURAL-GAS PIPING 09/07/2021 23 23 00 REFRIGERANT PIPING 09/07/2021 23 31 13 AIR DISTRIBUTION 09/07/2021 23 31 50 HANGERS AND SUPPORTS FOR DUCT WORK 09/07/2021 23 34 23 HVAC POWER VENTILATORS 09/07/2021 23 37 13 DIFFUSERS, REGISTERS AND GRILLES 09/07/2021 23 38 13 COMMERCIAL KITCHEN HOODS 09/07/2021 23 74 00 PACKAGED OUTDOOR HVAC SYSTEMS 09/07/2021 23 82 39 UNIT HEATERS 09/07/2021 DIVISION 25 - INTEGRATED AUTOMATION NONE DIVISION 26 - ELECTRICAL 26 00 10 ELECTRICAL SUBMITTAL PROCESS 09/07/2021 26 05 00 COMMON WORK RESULTS FOR ELECTRICAL 09/07/2021 26 05 01 ELECTRICAL DEMOLITION 09/07/2021 26 05 02 ELECTRICAL WORK IN EXISTING FACILIITIES 09/07/2021 26 05 03 FIRE STOPPING 09/07/2021 26 05 05 SITE ELECTRICAL 09/07/2021 26 05 19 LOW VOLTAGE ELECTRICAL POWER CONDUCTORS AND CABLES 09/07/2021 26 05 26 GROUNDING AND BONDING FOR ELECTRICAL SYSTEMS 09/07/2021 26 05 29 HANGERS AND SUPPORTS FOR ELECTICAL SYSTEMS 09/07/2021 26 05 33 RACEWAYS AND BOXES FOR ELECTRICAL SYSTEMS 09/07/2021 26 05 33.16 BOXES FOR ELECTRICAL SYSTEMS 09/07/2021 26 05 36 CABLE TRAYS FOR ELECTRICAL SYSTEMS 09/07/2021 26 05 53 IDENTIFICATIONS FOR ELECTRICAL SYSTEMS 09/07/2021 26 06 20 DISCONNECT SWITCHES 09/07/2021 26 09 23 LIGHTING CONTROL SYSTEM 09/07/2021 26 09 55 OCCUPANCY SENSORS 09/07/2021 26 21 16 LOW VOLTAGE UNDERGROUND ELECTRICAL SERVICE ENTRANCE 09/07/2021 26 22 00 LOW VOLTAGE TRANSFORMERS 09/07/2021 26 24 13 SWITCHBOARDS 09/07/2021 26 24 16 PANELBOARDS 09/07/2021 26 27 16 ELECTRICAL CABINETS AND ENCLOSURES 09/07/2021 26 27 26 WIRING DEVICES 09/07/2021 26 29 13 ENCLOSED CONTROLLERS 09/07/2021 26 32 13 PACKAGED ENGINE GENERATORS 09/07/2021 Page 9 of 9 City of Denton The Junction Project Denton, Texas October 8, 2021 26 36 00 TRANSFER SWITCHES 09/07/2021 26 51 19 LED LIGHTING INTERIOR 09/07/2021 26 55 64 TELEPHONE DATA RACEWAY 09/07/2021 DIVISION 27 - COMMUNICATIONS NONE DIVISION 28 - ELECTRONIC SAFETY AND SECURITY 28 05 00 COMMON WORK FOR ELECTRONIC SAFETY AND SECURITY 09/16/2021 28 10 00 ACCESS CONTROL SYSTEM 09/16/2021 28 15 00 INTEGRATED ACCESS CONTROL HARDWARE 09/16/2021 28 15 00.30 DATA ON CENTRAL ACCESS CONTROL DEVICES 09/07/2021 28 31 10 FIRE DETECTION AND ALARM SYSTEMS 09/07/2021 DIVISION 31 - EARTHWORK 31 00 00 EARTHWORK 09/07/2021 31 05 13 SOILS FOR EARTHWORK 09/07/2021 31 05 16 AGGREGATES FOR EARTHWORK 09/07/2021 31 11 00 CLEARING AND GRUBBING 09/07/2021 31 14 00 SITE PREPARATION 09/07/2021 31 23 33 TRENCHING AND BACKFILLING 09/07/2021 31 25 00 EROSION AND SEDIMENTATION CONTROLS 09/07/2021 31 41 33 TRENCH SHIELDING 09/07/2021 DIVISION 32 - EXTERIOR IMPROVEMENTS 32 13 13 CONCRETE PAVING 09/07/2021 32 13 73 SEALANTS AND CAULKINGS 09/07/2021 32 17 23 PAVEMENT MARKINGS 09/07/2021 DIVISION 33 - UTILITIES 33 41 00 STORM UTILITY DRAINAGE PIPING 09/07/2021 ADDITIONAL DOCUMENTS PERMIT SET 08/06/2021 PRECON RFI LOG RESPONSES 08/29/2021 ADDENDUM 1 09/17/2021 PRE-BID RFI RESPONSES 09/17/2021 MEMO 1 09/21/2021 END OF EXHIBIT C – Scope of Work / List of Documents Page 1 of 4 City of Denton The Junction Project Denton, Texas November 1, 2021 A133 Owner – CMAR Agreement – Exhibit D – Construction Manager’s Project Schedule Page 2 of 4 City of Denton The Junction Project Denton, Texas November 1, 2021 Page 3 of 4 City of Denton The Junction Project Denton, Texas November 1, 2021 Page 4 of 4 City of Denton The Junction Project Denton, Texas November 1, 2021 END OF EXHIBIT D – Construction Manager’s Project Schedule Page 1 of 24 City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner – CMAR Agreement – Exhibit E – Construction Manager’s Soft Costs and Fee Exhibit E - Fee & Cost Proposal in the Original Agreement was based on a nominal $6,000,000 Contract Sum and a 9 month schedule. The Fees & General Conditions used in Exhibit N - Itemized GMP have been updated to reflect that new Contract Sum and the current 10.5 month schedule, using the percentages & unit costs shown in the original Exhibit E, with one exception. That exception is the Construction Manager's fee, which has been increased from $5,000 to $25,000 based on the Construction Manager's increased level of preconstruction effort required by the Alternates. Page 1 of 1 City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner-CMAR Agreement – Exhibit F – Key Personnel END OF EXHIBIT F – Key Personnel Page 1 of 1 City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner – CMAR Agreement – Exhibit G – Confidentiality of the Project To Be Provided as Mutually Agreed by the Contractor and the Owner by 30 NOV 2021. END OF EXHIBIT G – Confidentiality of the Project Page 1 of 1 City of Denton The Junction Project Denton, Texas November 1, 2021 A133 Owner – CMAR Agreement – Exhibit H – Customary and Usual Labor Rates PROJECT TEAM MEMBER BURDENED RATES (49.99%) PROJECT MANAGER: MARCUS SANCHEZ $2,855.58 / week SUPERINTENDENT: RYAN TAYLOR $2,942.11 / week PROJECT ENGINEER: APRIL JONES $2,274.70 / week PROJECT ACCOUNTANT: MARIA AMARO $2,099.87 / week NOTES: 1) Rates shown are Contractor’s billing purposes when employees are assigned full time to the project. 2) In the event these employees are providing less than full time services to the project, their billing will be adjusted to reflect the percentage of effort provided. 3) All rates above include direct costs plus payroll taxes and other labor burdens, but not include the Contractors Fee or cost of other insurances and bonds, which are in addition to these rates. END OF EXHIBIT H – Customary and Usual Labor Rates City of Denton The Junction Project Denton, Texas Balfour Beatty Equipment, LLC Dallas Rates 2021-2022 Effective June 1, 2021 - December 31, 2022 Air Compressors Daily Weekly Monthly Purchase Air Compressor - 120v 4.2 CFM 29.00 97.00 263.00 1,578.00 Air Compressor Hose 3/8 x 100'1 3 9 110.00 Air Compressor Hose 3/8 x 50'1 2 6 70.00 Pancake Air Compressor 1 4 13 150 Air Movement Daily Weekly Monthly Purchase 36" High Volume Fan 8.33 24.99 74.96 1,799.00 48" High Volume Misting Fan 12.03 36.10 108.29 2,599.00 Heater Vulcan VH-230 50A 220V 37k BTU 23.15 69.44 208.33 2,500.00 30KW Salamander Heater (240/480 3 Phase)16.67 50.00 150.00 1,800.00 1000 CFM Negative Air Scrubber 14.81 44.44 133.33 1,600.00 2000 CFM Negative Air Scrubber 23.15 69.44 208.33 2,500.00 Carpentry/Metal Daily Weekly Monthly Purchase Cordless Circular 18 v 2.77 8.31 24.92 299.00 Electric Circular 1.85 5.56 16.67 200.00 Cordless Jig Saw 1.84 5.53 16.58 199.00 A133 Owner – CMAR Agreement – Exhibit I – Rental Rates Equipment will be billed at the rates shown in the Balfour Beatty rate table, when such equipment is available from this Balfour Beatty. If the equipment is not available from Balfour Beatty, it will be rented from at the current market rates. Rental billing and payment terms and conditions will be per Section 7.5.2 of the Agreement now in place; nothing in this Exhibit I is intended to supersede or modify those term, which shall govern. 2021 Rates Page 1 of 5 October 8, 2021 Cordless Drill/Impact Drill Set 18v 1.47 4.42 13.25 159.00 Drill- Electric 3/8"0.92 2.75 8.25 99.00 Drill- Electric Right Angle 1/2"1.47 4.42 13.25 159.00 Nail Gun- ALL 2.31 6.92 20.75 249.00 Router- Wood, Heavy Duty 0.92 2.75 8.25 99.00 Reciprocating Saw 1.85 5.56 16.67 100.00 Band Saw- Portable 3.05 9.14 27.42 329.00 Abrasive Cutoff Saw 115v (Chop Saw Metal)1.84 5.53 16.58 199.00 4" Angle Grinder 1.04 3.11 9.33 56.00 Cleaning Daily Weekly Monthly Purchase 44 Gal Trash Can 0.73 2.19 6.58 79.00 HEPA Vacuum 1.84 5.53 16.58 199.00 Walk Behind Floor Sweeper Battery Powered 12.73 38.19 114.58 1,375.00 Riding floor sweeper vac 99.06 297.19 891.58 10,699.00 Concrete Roto Hammers Daily Weekly Monthly Purchase SDS MAX Roto Hammer 10.92 32.75 98.25 1,179.00 Roto Hammer 20V Cordless 1"8.88 26.64 79.92 959.00 Radios Daily Weekly Monthly Purchase MOTOROLA XPR3300E W/MIC 9.50 10.00 30.00 MOTOROLA HT750/1000 W/MIC 9.50 10.00 30.00 Electrical/Lighting Daily Weekly Monthly Purchase 75 KVA TEMPOWER DISTRIBUTION CENTER 110.00 295.00 825.00 15,000.00 Temp Power Cord Splitter 4.00 10.00 31.00 186.00 Temp Power Cord Pigtail Female 4.00 10.00 31.00 186.00 Temp Power Cord 100'9.22 27.67 83.00 498.00 Temp Power Cord 50'7.37 22.11 66.33 398.00 GFCI Power Distribution Box (Spider Box)12.12 36.35 109.04 654.26 100' 12/3 Extension Cord 1.61 4.83 14.50 87.00 50' 12/3 Extension Cord 1.17 3.50 10.50 63.00 Portable Light 500w w/ Pedestal 3.13 9.39 28.17 169.00 Tiger Light 400w 7.35 22.06 66.17 397.00 Light Tower Towable 4000 Watt 361.11 1,083.33 3,250.00 19,500.00 LED Light Sting 100' w/ Baskets 8.68 26.03 78.08 937.00 Generators Daily Weekly Monthly Purchase HONDA EB5000 PORTABLE 5000 Watt 42.57 127.72 383.17 2,299.00 HONDA E6500 PORTABLE 6500 Watt 64.81 194.44 583.33 3,500.00 Grounds Maintenance Daily Weekly Monthly Purchase 2200 Psi 2.5 GPM Pressure Washer 6.28 18.83 56.50 339.00 Page 2 of 5 October 8, 2021 Pressure Washer Floor Cleaner 44.83 134.50 403.50 2,421.00 Pressure Washer Hose 50'1.11 3.33 10.00 60.00 Back Pack Blower Gas 3.69 11.08 33.25 399.00 String Trimmer (Weed Eater)2.78 8.33 25.00 150.00 Lawn Mower 7.76 23.28 69.83 419.00 Chainsaw 16" Gas 3.69 11.06 33.17 199.00 Ladders Daily Weekly Monthly Purchase 4' Step Ladder Fiberglass 8.33 25.00 75.00 175.00 6' Step Ladder Fiberglass 2.08 6.25 18.75 225.00 8' Step Ladder Fiberglass 2.55 7.64 22.92 275.00 10' Step Ladder Fiberglass 3.47 10.42 31.25 375.00 12' Step Ladder Fiberglass 3.94 11.81 35.42 425.00 10' Extension Ladder 1.97 5.92 17.75 213.00 16' Extension Ladder 2.31 6.92 20.75 249.00 20' Extension Ladder 2.73 8.19 24.58 295.00 24' Extension Ladder 2.92 8.75 26.25 315.00 Adjust-a-Stair (see related tab)52.89 158.67 476.00 5,712.00 Material Handling Daily Weekly Monthly Purchase Dolly/ Hand Truck 3.04 9.11 27.33 164.00 Drywall Carts 3.70 11.11 33.33 200.00 Pallet Jacks 2k-5k lbs 9.26 27.78 83.33 500.00 Camlever 2 ton Forklift Dumpster 185.19 555.56 1,666.67 10,000.00 TRASH 1/2 YD RUBBERMAID.1.46 4.39 13.17 79.00 TRASH 1 YD RUBBERMAID 3.33 10.00 30.00 180.00 Wheel Barrow 1.37 4.11 12.33 74.00 Office Daily Weekly Monthly Purchase Folding Chair 0.19 0.56 1.67 20.00 Folding Table 0.28 0.83 2.50 30.00 Desk w/ Side Drawer 4.31 12.93 38.78 349.00 Desk w/out Side Drawer 1.48 4.44 13.33 120.00 Bookcase 6'1.84 5.52 16.56 149.00 Rolling Desk Chairs 1.11 3.33 10.00 90.00 Conference Table 8'3.24 9.72 29.17 350.00 Conference Chairs 0.93 2.78 8.33 50.00 Refrigerator 4.63 13.89 41.67 500.00 4 Drawer File Cabinet 0.74 2.22 6.67 80.00 2 Drawer File Cabinet 0.65 1.94 5.83 70.00 TV 60"9.25 27.75 83.25 999.00 Microwave 0.92 2.75 8.25 99.00 Pumps/Hoses Daily Weekly Monthly Purchase Page 3 of 5 October 8, 2021 Godwin 110v 2" Submersible Pump 5.19 15.56 46.67 280.00 Trash Pump 5.56 16.67 50.00 300.00 Safety/Scaffolding Daily Weekly Monthly Purchase Safety Job Box Knaack 100 Yellow 20.43 61.28 183.83 2,206.00 10lb Fire extinguisher 1.30 3.89 11.66 69.97 20lb fire extinguisher 2.08 6.25 18.75 112.49 Red Fire Extinguisher Stand 2.14 6.41 19.23 115.39 Spill Kit 55 Gallon Emergency Response 2.78 8.33 24.99 299.89 Sprinkler Emergency Spill Kit 0.46 1.39 4.16 49.95 Guardian Retractable Safety Line 50'11.11 33.33 100.00 599.99 Baker Scaffold 2'x4'x6' Complete Section 7.31 21.94 65.83 395.00 Safety Rail (Slab Grabber)0.17 0.50 1.50 9.00 Alpha Edge Post 42"With Panel 80.00 Alpha Edge Post 60"With Panel 90.00 Alpha Panel 42" x 8'-6"1.78 5.33 16.00 100.00 Alpha Half Panel 42" x 4'-3"0.89 2.67 8.00 60.00 Guard Rail Base 75# (each)3.89 11.67 35.00 210.00 Alpha Panel 60" x 8'-6"2.67 8.00 24.00 135.00 Alpha Panel 84" x 8'-6"3.11 9.33 28.00 165.00 Alpha Self-closing Elevator Lobby Gate (each)8.33 25.00 75.00 400.00 Storage Daily Weekly Monthly Purchase Storage Box 8x20 (Conex)46.91 140.74 422.22 3,800.00 Storage Box 8x40 (Conex)54.86 164.59 493.78 4,444.00 Knaack 4824 7 cu ft 28x24x48 11.26 33.77 101.31 607.85 KNAACK 69 35 cu ft 34x30x60 15.37 46.11 138.33 830.00 Knaack 89 47.8 cu ft Piano Lid 46x30x60 20.24 60.71 182.13 1,092.76 Knaack 109 Double Door 45 cu ft 60x24x60 19.27 57.81 173.42 2,081.00 BBC Smartbox 10.49 31.48 94.44 850.00 Traffic Control Daily Weekly Monthly Purchase Barricade Corner Piece 7.39 22.17 66.50 399.00 Safety Barricade Water 72x16x24 3.70 11.11 33.33 399.95 Water Barrier Top Fencing 3.24 9.72 29.17 350.00 Temporary Fencing with Free-Standing Posts 4.96 14.88 44.65 267.92 FODS Track Out Mats 19.44 58.33 175.00 2,500.00 Guard Shack - 8'x10'43.21 129.63 388.89 3,500.00 Directional Signage - Electric on Trailer 49.38 148.15 444.44 4,000.00 Vehicles Daily Weekly Monthly Purchase 1/2 Ton Truck 127.78 383.33 1,150.00 39,838.64 Page 4 of 5 October 8, 2021 Electric Cart (Golf Cart)59.49 178.46 535.38 12,849.00 Utility Vehicle 4 seat AWD Gator 70.55 211.65 634.96 15,239.00 16' Bumper Pull Trailer - 10k Capacity 56.47 169.42 508.25 6,099.00 Vacuums Daily Weekly Monthly Purchase HEPA SHOP VACUUM 10.17 30.50 91.50 549.00 Wet/Dry Vacuum 2.94 8.83 26.50 159.00 Upright Floor/Office Vacuums 2.78 8.33 25.00 150.00 Drones and 360 Cameras Daily Weekly Monthly Purchase Drones - Service One Time Visit 200.00 1,748.00 Drones - Service Weekly Recuring 866.00 Drones - Service Twice Monthly Recuring 400.00 Drones - Service Monthly Recuring 200.00 Drones - On Site 55.56 166.67 500.00 3,000.00 360 Camera + Open Space 9.26 27.78 83.33 500.00 Open Space ( 0.0183% of Contract amount billed up front) Laser Scanner + Processing Per Half Day 1,900.00 Thermal Camera 92.59 277.78 833.33 5,000.00 Concrete Scanner 370.37 1,111.11 3,333.33 20,000.00 END OF EXHIBIT I – Rental Rates Required for 360 Camera * Rental rates are established by Associated Equipment Distributors (AED Equipment Watch Online Services) Retail Rental Green Book rates - an industry standard in rental equipment management. ** Taxes and delivery charges are not included above. *** Excessive damage or replacement is not included above, Page 5 of 5 October 8, 2021 Page 1 of 2 City of Denton The Junction Project Denton, Texas October 27, 2021 A133 Owner – CMAR Agreement – Exhibit J – Alternates with Expiration Dates The cost adjustment items are provided as an order of magnitude cost and will be confirmed after acceptance by the Owner and incorporated into the documents by the design team via ASI. The costs indicated on the Budget Tracker Summary includes all associated adjustments to the cost of work as well as applicable burdens and fees. Reference Exhibit E for the complete list of Accepted Alternates. ALTERNATE DESCRIPTION ALTERNATE AMOUNT EXPIRATION DATE ALTERNATE NO. 01 - PAINT ALL BRICK WITH MASONRY GRADE PAINT $47,806 REJECTED on October 14, 2021 ALTERNATE NO. 02 - REPLACE ALL WINDOWS WITH NEW ALUMN WINDOW UNITS AND LOW E GLAZING $149,099 ACCEPTED on October 14, 2021 ALTERNATE NO. 03 - REMOVE BRICK, REPLACE ALL EXTERIOR SHEATHING, INSTALL FLUID APPLIED AIR/MOISTURE BARRIER, FLASHING, BRICK TIES AND INSTALL BRICK NON PAINTED $535,137 ACCEPTED on October 14, 2021 ALTERNATE NO. 04 - INSTALL 1 1/2" FURRING AT 16 INCHES OC WITH ADDITIONAL SPRAY FOAM INSULATION AT PERIMETER WALLS $128,330 ACCEPTED on October 14, 2021 ALTERNATE NO. 05 - PROVIDE PLAM DOORS IN LIEU ON PAINTED DOORS THROUGHOUT $8,149 ACCEPTED on October 14, 2021 ALTERNATE NO. 06 - PAINT EXISTING MANSARD ROOF $53,991 ACCEPTED on October 14, 2021 ALTERNATE NO. 07 - PROVIDE 500KW GENERATOR $211,123 REJECTED on October 14, 2021 ALTERNATE NO. 08 - PROVIDE 750 KW GENERATOR $387,241 ACCEPTED on October 14, 2021 ALTERNATE NO. 09 - LARGE OPEN DINING HALL WITH ADDED STEEL $31,101 REJECTED on October 14, 2021 ALTERNATE NO. 10 - PROVIDE TRUCK COVER $111,171 REJECTED on October 14, 2021 ALTERNATE NO. 11 - PROVIDE SCALE IN RECEIVING $26,144 November 15, 2021 ALTERNATE NO. 12 - DRAINAGE IMPROVEMENTS $243,784 ACCEPTED on October 14, 2021 Page 2 of 2 City of Denton The Junction Project Denton, Texas October 27, 2021 ALTERNATE NO. 13 - IN ALL RESTROOMS, PROVIDE MOSAIC TILE (T2) FLOORING IN LIEU OF STAINED CONCRETE (SC-1) $75,154 ACCEPTED on October 14, 2021 ALTERNATE NO. 14 - IN KITCHEN B22 AND B25, PROVIDE WALL TILE IN LIEU OF FRP PANELING $23,244 ACCEPTED on October 14, 2021 ALTERNATE NO. 15 - PROVIDE ACOUSTIC BATT ABOVE CEILING PER A2.02C $13,127 ACCEPTED on October 14, 2021 ALTERNATE NO. 16 - IN CORRIDOR A36 AND A367, PROVIDE 4'-0" HEIGHT WALL PANEL (ACROVYN OR SIMILAR) $43,318 ACCEPTED on October 14, 2021 PROVIDE & INSTALL NEW FOOD SERVICE EQUIPMENT $619,498 ACCEPTED on October 14, 2021 PROVIDE AND INSTALL DATA ALLOWANCE (BACK BOXES, STUB UPS, J-HOOK TREES, NO CABLE TRAYS, BASED ON $0.65/SQFT) $22,038 November 19, 2021 PROVIDE AND INSTALL AUDIO VISUAL ALLOWANCE (FLATSCREEN TV AT 9 LOCATIONS, BASED ON $800/EACH) $7,200 November 19, 2021 PROVIDE AND INSTALL PUBLIC ANNOUNCEMENT ALLOWANCE (SIMPLE LOCALIZED INTERCOMS, BASED ON $0.55/SQFT) $18,648 November 19, 2021 SAWCUT, REMOVE EXISTING SANITARY PIPING, INSTALL NEW SANITARY PIPING, AND POURBACK NEW SLAB ON GRADE (ASSUMING 955 LNFT) $228,629 December 17, 2021 END OF EXHIBIT J – Alternates with Expiration Dates Page 1 of 1 City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner – CMAR Agreement – Exhibit K – Unit Costs Unit costs per Specification 01 22 00 Unit Prices Unit price for additional duplex receptacle on existing circuit. $150.00 / EACH Unit price for additional duplex receptacle on new circuit. $400.00 / EACH Unit price for additional quadplex receptacle on existing circuit. $160.00 / EACH Unit price for additional quadplex receptacle on new circuit. $410.00 / EACH Unit price for additional 2x4 junction box with 3/4" conduit stubbed-up to above ceiling, provide pull string. $85.00 / EACH Unit price for additional 4x4 junction box with 3/4" conduit stubbed-up to above ceiling, provide pull string. $85.00 / EACH END OF EXHIBIT K – Unit Costs Page 1 of 1 City of Denton The Junction Project Denton, Texas October 08, 2021 A133 Owner – CMAR Agreement – Exhibit L – Allowances Miscellaneous Concrete Items as noted on C1.03. $5,000 Repairing of existing masonry $5,312 Reception Desk $8,500 Roof Truss Repairs $5,000 Signage $10,000 Markerboards $4,800 Refrigerators $4,650 To be provided with the GMP as mutually agreed by the Owner and Contractor END OF EXHIBIT L – Allowances Page 1 of 1 City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner – CMAR Agreement – Exhibit M – Schedule of Values To Be Provided as Mutually Agreed by the Contractor and the Owner by 30 NOV 2021. END OF EXHIBIT M – Schedule of Values Page 1 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 A133 Owner – CMAR Agreement – Exhibit N – Itemized Statement of the Guaranteed Maximum Price and Clarifications Guaranteed Maximum Price Summary Page 2 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 Guaranteed Maximum Price Detail Page 3 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 Page 4 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 Page 5 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 Clarifications and Assumptions The following clarifications and assumptions, organized by CSI division, are included as part of the deliverable. General Notes 1. This budget is based upon the 100% construction documents as prepared by Kirkpatrick Architects dated August 6, 2021 including consultant drawings from Ponce-Fuess Engineering, MD Engineering, MJ Thomas Engineering, and DM Food Service, as well as the following Addenda and Exhibits. Reference tab Exhibit A for a complete listing of documents and dates. a. Revised 100% Set Dated August 31, 2021 b. Addendum 1 Dated September 14, 2021 c. Memo 1 Dated September 22, 2021 2. This GMP includes the responses to Request for Information issued on August 20, 2021, August 26, 2021, and September 14, 2021 which were included in the above listed Addenda. 3. This deliverable includes a list of potential cost adjustment items and/or Owner requested Alternates. Cost adjustment items are incidental services involving construction consulting, including pre-construction consultation and value analysis. The Owner acknowledges that, notwithstanding any other provision of the Agreement, such services are advisory and are not to be considered professional design services. Owner will refer such matters to its own design professional(s) for professional guidance, and accordingly, the Construction Manager will not have liability to the Owner with respect to any such professional design services. The cost adjustment items will be confirmed after acceptance by the Owner and incorporated into the documents by the design team via ASI. Reference Exhibit J for the complete list of Alternates which include fee; acceptance of Alternates will not constitute an additive Change as contemplated in Section 6.1.2.1 and 6.1.2.3 of the Agreement. Construction Manager reserves the right to re-evaluate the durations of alternates once accepted as it relates to the critical path and Substantial completion. 4. A separate Allowance attachment (Exhibit L) has been included for undefined scope of work as it relates to the project. If for any reason the scope of work is over the Allowance, the funds necessary for that scope will be drawn from Owner Contingency. In the event the Owner Contingency is exhausted, GMP will be increased for the difference in the total cost and the Allowance. 5. This GMP assumes that all subcontracts (excluding major material purchase orders) will have performance security. Construction Manager reserves the right to require bonds from any subcontractor, rather than enroll in Subcontractor Default Insurance, if their financial condition materially changes and deduct the cost of that bond from the amount budgeted for insurance. Division 1 General Requirements This GMP includes: 1. General conditions based on a 10.5-month schedule. 2. General liability insurance at a fixed rate of 1.04% of the Contract Sum. Page 6 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 3. Subcontractor default insurance at a fixed rate of 1.35% based of the Contract Sum. 4. Pre-construction reimbursable services at a fixed fee of $25,000. 5. Payment and performance bond at a fixed rate of 0.085% of the Contract Sum. 6. Insurance and bonds will be billed within the first 3 months of the project. 7. Owner Contingency in the amount of $1,500,000 for the Owner’s exclusive use per the Section 7.7.8.3 of the Agreement. 8. Preconstruction Contingency of 0.5% of contract sum per will be managed per the Agreement’s Section 7.7.8.1. 9. The Additional Marketplace Risk of ninety-one thousand six hundred and two dollars ($91,602.00) in the base cost of work, plus thirty-two thousand six hundred and sixty-nine dollars ($32,669) included within the total accepted alternates, for a total of additional marketplace risk reserve of one hundred twenty-four thousand two hundred seventy-one dollars ($124,271) which will used to protect the Cost of Work per the Agreement’s Section 7.7.8.2. 10. The Construction Contingency of of one hundred fifty-two thousand six hundred and seventy dollars ($152,670.00) in the base cost of work, plus fifty-four thousand four hundred forty-seven dollars ($54,447) included within the total accepted alternates, for a total of Construction Contingency reserve of two hundred seven thousand one hundred eighteen dollars ($207,118). 11. A Construction Manager salaried employee at a weekly rate per Exhibit H – Customary & Usual Labor Rates. No hourly employees are anticipated to be billed to the project. 12. Safety costs at a fixed rate of 0.19% of the Contract Sum. The Parties mutually agree that corrective actions regarding safety will be provided per the terms of the Agreement. 13. IT costs as Cost of Work at the fixed rate of 0.10% of the Contract Sum. 14. An assumption that the Architect is required to use submittals that will result in a change to the Contract Documents by incorporating them into changes and releasing the changes to Construction Manager in the form of an ASI. An assumption that if scope changes are made during the review process of submittals, the Architect will issue an ASI to incorporate these changes into the Contract Documents. 15. The following schedule related clarifications and assumptions: a. This GMP is based on Exhibit D – CM’s Project Schedule a 10.5-month project schedule with a 1-month owner move-in period. b. The schedule is based on an assumption that work will be performed in a 40-hour workweek throughout the course of the Project. Construction Manager recognized the City has restricted work hours per ordinance However, Construction Manager has the ability to perform work 24 hours per day, seven days per week if Construction Manager gets permission in advance for writing from the City on a case by case basis. No shift work or overtime is included unless specifically identified herein . c. The Substantial Completion date is based on the assumption that all permits have been obtained, a Notice to Proceed has been issued to Construction Manager by November 17, 2021, and a fully executed GMP Amendment has been signed as shown in Exhibit D – CM’s Project Schedule by November 17, 2021. Page 7 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 d. The project schedule includes five planned weather days. Additional weather impacts will be granted per the terms of the Agreement 16. To the extent the specifications do not involve design elements performed by different trades and is otherwise a customary proprietary design or engineered component requiring a professional engineer’s stamp on shop drawings such as fire suppression systems, fire alarm systems and other similar activities, Construction Manager’s liability for design errors and omissions is limited to amounts we recover from the subcontractor or its insurance carriers. 17. Reusing and maintaining the existing security system during construction. No additional costs have been included for security personnel, additional cameras, or sensors outside of the existing system. This GMP excludes: 18. Additional cost to account for material escalation and future pandemic related issues will be provided by the Contractor per the terms of the Agreement. Such items are considered unavoidable delays and/or change events that could not reasonably have been foreseen by Construction Manager and may result in a change in the Contract Time and Contract Sum. Our plan to mitigate this for the Owner is to procure materials early and secure pricing with Letter of Intents by the end of October 2021. 19. Sales tax within the cost of work. 20. Builder’s risk insurance. This is to be carried by the Owner. 21. Building Permit. This is to be carried by the Owner. 22. Construction and material testing. Testing assumed to be paid for by the Owner. 23. Temporary utilities for building, site and jobsite offices. It is assumed the Construction Manager will use permanent power, HVAC, and water from the existing building. Utilities assumed to be paid for by the Owner. 24. Parking expenses for subcontractors during construction. It is assumed the Construction Manager will park on-site at no cost. 25. Full-Time dedicated Quality Control personnel. 26. Mockups not required by the Contract Documents. 27. Materials testing and special inspections, including but not limited to Energy Compliance Inspections, soils testing, as well as , Texas Accessibility Standards (TAS), and third party materials testing and special inspections required by the Contract Documents. 28. Engaging a design professional to prepare repair and or replacement procedures for non-conforming work other than the designer-of-record for the aspect of work that needs repair or replacement. 29. Design responsibility inherent in performance specifications that involve assemblies or interfaces among design elements performed by different trades or are otherwise not customary proprietary specifications obtained from single manufacturers. 30. With the exception of 220516 Expansion Fittings and Loops for Plumbing Fixtures, and 260529 Hangers and Supports for Electrical Systems, specifications that state 1) “delegated design: design assembly or interface, including comprehensive engineering analysis by a qualified professional engineer, using performance Page 8 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 requirements and design criteria indicated”; 2) requirements for code compliance and design features “whether or not indicated on the drawings,” and 3) references to design “by others” on the drawings. We will notify architect of non-code compliant conditions; however, we do not have any cost to deal with any non-code compliant items 31. Preparing and furnishing a full set of corrected digital data files of the Contract Drawings . Electronic as-builts and redlined PDF’s of drawings, will be provided per the Agreement The Construction Manager will not, however, be providing and updated BIM model with as-built information. Division 2 Existing Construction This GMP includes: 1. Demolition as indicated in the contract documents. All demolished materials become property of the Construction Manager unless specifically called out salvage or reuse in the contract. This GMP excludes: 2. Contaminated material removal and disposal. 3. Pest control and removal. 4. Salvaging of any materials not specifically indicated on the drawings. Division 3 Concrete This GMP includes: 1. An assumption that the building has a slab on grade foundation for purposes of concrete slab pour backs. 2. A $5,000 budget for "Miscellaneous Concrete Items" as noted on C1.03. 3. Additional Concrete associated with Alternate #12. This GMP excludes: No items to clarify. Division 4 Masonry This GMP includes: 1. Rebrick the exterior skin per Accepted Alternate #3. This GMP excludes: 2. No items to clarify. Page 9 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 Division 5 Metals This GMP includes: 1. No items to clarify. This GMP excludes: 2. Steel columns and base plates associated with Open Dining Hall Alternate #9. Division 6 Wood and Plastics This GMP includes: 1. A $8,500 budget for a new reception desk assumed to receive quartz countertops. No details given. This GMP excludes: 2. Architectural Woodwork Institution (AWI) certification per Specification 064100 Plastic-Laminate Clad Cabinets. Division 7 Thermal and Moisture Protection This GMP includes: 1. Roof patch-back for new rooftop RTUs with a certified Firestone installer per roof warranty. 2. Warrantable water-tight building envelope and workmanship warranty associated with building leaks will be provided per accepted Alternate # 3. This GMP excludes: 3. Any additional waterproofing not expressly dictated in the Construction Documents. Division 8 Doors and Windows This GMP includes: 1. Salvaging of existing windows as noted on plans and indicated in Keynote #11. Items to be stored in Owner-provided off-site location. 2. All hollow metal door frames per Pre-Bid RFI #6. 3. Replacing all exterior windows per Accepted Alternate #2. 4. Provide plastic laminate finish on doors throughout per Accepted Alternate #5. Page 10 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 This GMP excludes: 1. Re-using of existing doors. The current doors are not in a suitable condition for re-use. Division 9 Finishes This GMP includes: 1. Exterior sheathing repair and replacement per Exterior Keynotes on A2.01A and A2.01B and Exterior Elevations on A4.01, A4.02, and A4.03. 2. A $5,000 budget for roof truss repairs. 3. Tile in restrooms in lieu of sealed concrete per Accepted Alternate #13 4. Subway tile in lieu of FRP in Kitchen B22 & Corridor B25 per Accepted Alternate #14 5. Acoustical Batt Insulation per Accepted Alternate #15. 6. Acrovyn Wall Protection in Corridor A36 & A37 per Accepted Alternate #16. This GMP excludes: 7. Moisture mitigation of existing concrete slab. 8. Fire-rated ceilings. Assumed not required because all rated walls go to deck per Partition Details on A9.01. 9. Any responsibility for STC or other acoustical performance specifications. Because STC and other similar acoustical performance specifications generally are laboratory standards that cannot be verified by field measurements, we assume that the Architect and/or their consultant(s) have provided all sound-rated assembly details as indicated by the Contract Documents. 10. Continuous monitoring and moisture testing of materials exposed to moisture during construction operations or after installation. Division 10 Specialties This GMP includes: 1. A $10,000 allowance for signage per Precon RFI #66. 2. A $4,800 budget for Markerboards at Classrooms and Offices. None currently shown or specified. This GMP excludes: 3. Prefabricated Avadek canopy. Reference Alternate #10. 4. Directories. None shown or assumed. Page 11 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 Division 11 Equipment This GMP includes: 1. A $4,650 budget for two refrigerators at the Breakroom per Precon RFI #20. 2. Foodservice equipment per Accepted Alternate #17. 3. Floor scale per Accepted Alternate #11. This GMP excludes: 4. Foodservice equipment. Reference Alternate #17. 5. Any repairs or replacement of existing food service equipment discovered during the commissioning process within Alternate #17. 6. Commercial laundry equipment. Assumed to be By Owner. 7. Projectors and screens. Assumed to be By Owner. 8. Healthcare equipment. Assumed to be By Owner. 9. Residential appliances unless listed above per Precon RFI #20. Division 12 Furnishings This GMP includes: 1. No items to clarify. This GMP excludes: 2. Furnishings of any kind. All furnishings assumed to be provided by the Owner. 3. Entrance floor mats and grilles. None shown. Division 21 Fire Suppression This GMP includes: 1. Re-using existing fire sprinkler mains and re-routing existing branch lines and sprinkler heads as required for the building layout. 2. Replacing the ceiling uprights. 3. Fire Pump with 500gpm, 100psi, 40HP, 3 phase, 480 volt. A flow test will need to be performed to determine if this is required for the project. Page 12 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 This GMP excludes: 4. Raising sprinkler lines. Assuming the existing location is sufficient. Division 22 Plumbing This GMP includes: 1. Re-using the existing plumbing lines in ENH Guest Rooms A11 – A30. 2. Abandoning existing floor drains that are not being re-used. 3. New cast-iron sanitary sewer line where indicated on P2.0A & P2.0B 4. Condensate lines to new rooftop RTUs. 5. Draining and removal of the existing grease trap. 6. An assumption that coordination has occurred between the Design Professionals, and if discrepancies occur between the MEP (including Technology) and Architectural Drawings, an RFI will be requested, and if RFI is not available within a timely manner, the Construction Manager will inform the Architect and Owner per 3.1.21 and, the Construction Manager will request to use MEP drawing as the controlling document. 7. Further camera testing of the sanitary lines has been included. This GMP excludes: 8. Unforeseen repairs of existing sanitary lines. Division 23 Heating, Ventilating and Air-Conditioning (HVAC) This GMP includes: 1. Replacing all branch lines. 2. An assumption that coordination has occurred between the Design Professionals, and if discrepancies occur between the MEP (including Technology) and Architectural Drawings, an RFI will be requested, and if RFI is not available within a timely manner, the Construction Manager will inform the Architect and Owner per 3.1.21 and will request to use MEP drawing as the controlling document. This GMP excludes: 3. Removal of surface dust from limited access spaces to include roofs, plenums, shafts, trenches, equipment vaults, attics, and similar spaces. Page 13 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 Division 26 Electrical This GMP includes: 1. An assumption that coordination has occurred between the Design Professionals, and if discrepancies occur between the MEP (including Technology) and Architectural Drawings, an RFI will be requested, and if RFI is not available within a timely manner, the Construction Manager will inform the Architect and Owner per 3.1.21 and will request to use MEP drawing as the controlling document. 2. 750kw Generator per Accepted Alternate #8. This GMP excludes: 3. Continuing any existing circuits, conduits, and wiring per Keynote #6 on AD2.01. Assume all new electrical. 4. Upgrading transformer. New building requires 1600 amp service and the existing transformer is not large enough and would be upgraded. It is assumed the utility provider will be responsible for that cost. Division 27 & 28 Communications and Security This GMP includes: 1. Fire Alarm with a Silent Knight Addressable Voice Evacuation Fire Alarm Control Panel (FACP). 2. CO2 Duct detectors, not specified but assumed required. 3. Access Control with a security system to be determined to be acceptable to the City, its consultants, and its tenants. The Access Control system is currently carried as an allowance in the GMP until this system is selected. This GMP excludes: 4. Data cabling. This is an allowance per PPV on October 5, 2021. 5. Audio Visual. This is an allowance per PPV on October 5, 2021. 6. Paging and Sound. This is an allowance per PPV on October 5, 2021. 7. Security cameras. Electrical junction boxes will be provided for owner furnished, owner installed cameras. Division 31 Earthwork This GMP includes: 1. Re-grading required for positive drainage flow. 2. Drainage improvements per Accepted Alternate #12 This GMP excludes: 3. No items to clarify. Page 14 of 14 City of Denton The Junction Project Denton, Texas November 2, 2021 Division 32 Exterior Improvements This GMP includes: 1. Place-back of sodding and irrigation at disturbed areas from construction. This GMP excludes: 2. Screening devices. None shown. 3. Fencing. None shown. 4. Design-build services to salvage existing trees in courtyards. C1.03 notes trees to be removed. Division 33 Utilities This GMP includes: 1. Re-using existing domestic water, sanitary sewer, and gas lines. 2. Drainage improvements per Accepted Alternate #12 This GMP excludes: 3. Gas meter. Assume using existing meter. 4. New manholes. Details provided on C2.05 but assumed not required on this project. END OF EXHIBIT N – Itemized Statement of the Guaranteed Maximum Price and Clarifications Page 1 of 1 City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner – CMAR Agreement – Exhibit O – Escrow and Financing Conditions To be provided with the GMP as mutually agreed by the Owner and Contractor END OF EXHIBIT O – Escrow and Financing Conditions Page 1 of 1 City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner – CMAR Agreement – Exhibit P – Disputed Work Schedule To be provided in the event the Owner and Contractor have Work in dispute per the Agreement END OF EXHIBIT P – Disputed Work Schedule Exhibit Q – Contract Language Amendment The Owner and Construction Manager agree to amend the AIA A133 Owner-Construction Manager Agreement as follows: § 7.7.8 The Contingencies shown in each Control Estimate, and ultimately in Exhibit "A" – Guaranteed Maximum Price Amendment are lump sums provided within the Guaranteed Maximum Price for use by the Construction Manager and Owner as follows: .1 Preconstruction Contingency The Construction Manager’s “Preconstruction Contingency” is for the Construction Manager’s use during the Preconstruction Phase in protecting the Control Estimates and the final Guaranteed Maximum Price from estimating errors and the market conditions at the time of Subcontractor bidding. The initial Preconstruction Contingency in the first Control Estimate will be ten percent (10.0%), which initially will be inclusive of the Contractor’s Construction Contingency identified in Section 7.7.8.3 below. As the Preconstruction Contingency is not provided for the Construction Manager’s access or use during the Construction Phase, it shall be reduced to the zero (0) within seventy (70) days after the Owner’s execution of Exhibit "A" – Guaranteed Maximum Price Amendment, and the Owners’ Contingency will be adjusted accordingly. .2 Additional Marketplace Risk After the Owner has executed Exhibit "A" – Guaranteed Maximum Price Amendment, the Construction Manager will award Subcontractors’ contracts. Eighty percent (80%) of those subcontracts (by value) will be awarded within thirty (30) days of the Owner’s execution of the Exhibit Y - Guaranteed Maximum Price Amendment; and ninety-five percent (95%) of those subcontracts will be awarded within sixty (60) days of that date. The five percent (5%) of the unawarded subcontracts remaining (60) days after the Owner’s execution of the Exhibit “A” - Guaranteed Maximum Price Amendment shall be those bid packages the Owner and Construction Manager agreed in advance are either not sufficiently documented to award, or do not pose a significant risk for remaining unawarded. Within seventy (70) days after the Owner’s execution of the Exhibit “A”, a reconciliation of the Guaranteed Maximum Price and the awarded subcontracts will be performed by the Construction Manager, identifying savings beneath the Guaranteed Maximum Price (if any). These savings shall be reallocated to the Owner’s Contingency; except as mutually agreed by the Owner and Construction Manager to be collated into “Additional Marketplace Risk” line item(s) in the Schedule of Values, which has been initially set at ninety-one thousand six hundred and two dollars ($91,602.00) in the base cost of Work, plus thirty-two thousand six hundred and sixty-nine dollars ($32,669) included within the total accepted Alternates, for a total of Additional Marketplace risk Reserve of one hundred twenty-four thousand two hundred seventy-one dollars ($124,271). This Additional Marketplace Risk is to (i) protect the Cost of the Work from known and unknown scope gaps between subcontracts, as well as uncommitted commodities subject to future price changes (if any),. This amount will remain as Additional Marketplace Risk for the duration of the project and will expire at Substantial Completion, at which time these savings will be reallocated to the Owner’s Contingency. Prior to use of Additional Marketplace Risk Contingency, the Construction Manager will obtain approval in writing by the Owner. not to exceed 1.0% of the Guaranteed Maximum Price; and (ii) protect the Guaranteed Maximum Price from specific Subcontractor(s)’ risk profile(s); and (iii) and such use will be allocated accordingly in the Schedule of Values. .3 Construction Contingency The Construction Manager’s “Construction Contingency” is of one hundred fifty-two thousand six hundred and seventy dollars ($152,670.00) in the base cost of Work, plus fifty-four thousand four hundred forty-seven dollars ($54,447) included within the total accepted Alternates, for a total of Construction Contingency reserve of two hundred seven thousand one hundred eighteen dollars ($207,118)., and is provided for the Construction Manager’s use during the construction of the Work., and will not exceed the sum of one percent (1.0%) of the projected Cost of the Work for new construction plus two point five percent (2.5%) of the projected Cost of the Work for renovation(s) to existing building(s). The Construction Manager’s Construction Contingency calculations shall not include the Owner’s Contingency. The Construction Manager’s Construction Contingency is allowed to be used for items associated with performance of the Work, including but not limited to, estimating accuracies/inaccuracies based on quantities assumed or measured, interfacing omissions between work categories, schedule performance, expediting material deliveries or labor to install late delivered item(s), and other items associated with matters that were unforeseen by Construction Manager. Any use of the Construction Contingency will be at Construction Manager’s discretion. No amounts have been included for unforeseen conditions, Owner- initiated changes, scope changes, design changes, etc. Additionally, the Construction Manager’s Contingency is not to be used for items described in Allowances. Under no circumstances is the Construction Manager’s Construction Contingency to be used by the Owner for increases in the scope, quality or quantity of the Work; nor by the Construction Manager for correcting nonconforming Work; Work items discovered during the Construction Phase not to be coordinated among the Subcontractor’s scope of work due to an oversight of the Construction Manager; or similar Construction Manager’s errors or omissions. The Construction Manager’s access to the Construction Manager’s Construction Contingency shall be approved in writing by the Owner on a per instance basis by the Owner as being in compliance with the above requirements, such approval not to be unreasonably withheld. .4 Owner’s Contingency The “Owner’s Contingency” shall be an amount specified by the Owner; and is for the Owner’s exclusive use in absorbing the increased scope of Cost of the Work items (if any) within the Construction Manager’s Guaranteed Maximum Price. Any Owner’s authorization of use of the Owner’s Contingency shall be in writing; and will ultimately require documentation in a Change Order, showing both the amount reallocated to Cost of the Work, and the balance remaining in the Owner’s Contingency Page 1 of 1 Guaranteed Maximum Price City of Denton The Junction Project Denton, Texas October 8, 2021 A133 Owner – CMAR Agreement – Exhibit Z – Schedule of Exhibits EXHIBIT EXHIBIT DESCRIPTION ORIGINATOR DUE DATE EXHIBIT A GMP AMENDMENT PPV N/A – Attached EXHIBIT B INSURANCE AND BONDS BBC N/A – Attached EXHIBIT C SCOPE OF WORK BBC N/A – Attached EXHIBIT D CONSTRUCTION MANAGER’S SCHEDULE BBC N/A – Attached EXHIBIT E CONSTRUCTION MANAGER’S FEE & COSTS BBC N/A – Attached EXHIBIT F CONSTRUCTION KEY PERSONNEL BBC N/A – Attached EXHIBIT G CONFIDENTIALITY OF THE PROJECT BBC & PPV NOV 30, 2021 EXHIBIT H CUSTOMARY AND USUAL LABOR RATES BBC N/A – Attached EXHIBIT I RENTAL RATES BBC N/A – Attached EXHIBIT J ALTERNATES BBC N/A – Attached EXHIBIT K UNIT COSTS BBC N/A – Attached EXHIBIT L ALLOWANCES BBC N/A – Attached EXHIBIT M SCHEDULE OF VALUES BBC & PPV NOV 30, 2021 EXHIBIT N ITEMIZED GMP BBC N/A – Attached EXHIBIT O ESCROW AND FINANCING CONDITIONS TBD TBD EXHIBIT P DISPUTED WORK SCHEDULE TBD TBD EXHIBIT Q CONTRACT LANGUAGE AMENDMENT BBC & PPV N/A – Attached END OF EXHIBIT Z – Schedule of Exhibits Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Appendix D Comparable Data Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Land Sale Comparables Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. LAND SALE COMPARABLE No.1 Property Name: Address: City/State/Zip: County: Tax ID: Comparable ID: Land Units:Encumbrance or Easement:No Land (SF):144,184 Topography:Level Land (ac):3.310 Zoning:Commercial Usable Land (SF):Utilities:All to Site Shape:Rectangular Environmental Issues:No Transaction Summary Transaction Type: Buyer: Seller: Deed Reference: Verified With: Ownership Interest:Deprecated named ranges placeholder Remarks Closed Sale Date:12/13/2022 1020 Willowwood St 1020 Willowwood Street Denton, TX 76205 Denton R34090 1.67895E+12 Rps Ventures LLC Sale Price per Unit: Sale Price:$825,000 Reliable Third Party Financing:Cash to Seller Fee Simple Conditions of Sale:Arm's Length 22-167592 Sale Price per Usable SF: Confirmed via reliable third party. This sale was for the acre plot zoned for commercial use, for $6.31/2f. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. LAND SALE COMPARABLE No.2 Property Name: Address: City/State/Zip: County: Tax ID: Comparable ID: Land Units:Encumbrance or Easement:No Land (SF):289,238 Topography:Level Land (ac):6.640 Zoning:SC Usable Land (SF): 289,238 Utilities:All to Site Usable Land (ac): 6.640 Flood Zone: Shape:Irregular Environmental Issues:No Transaction Summary Transaction Type: Buyer: Deed Reference: Verified With: Ownership Interest: Remarks 1729 Georgetown Dr Closed Sale Date:1/25/2022 Sale Price:$1,375,000 1729 Georgetown Drive Denton, TX 76201 Denton R168117, R34297 1.67895E+12 Fee Simple Conditions of Sale:Arm's Length 22-012803 Sale Price per Usable SF:$4.75 Reliable Third Party Financing:Cash to Seller Confirmed via reliable Third Party for the sale of 1729 Georgetown Drive which sold for $4.75/SF. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. LAND SALE COMPARABLE No.3 Property Name: Address: City/State/Zip: County: Tax ID: Comparable ID: Property Subtype: Proposed Use: Land Units:Encumbrance or Easement:No Land (SF):164,657 Topography:Level Land (ac):3.780 Zoning:NRMU Usable Land (SF): 164,657 Utilities:All to Site Usable Land (ac): 3.780 Flood Zone: Shape:Irregular Environmental Issues:No Transaction Summary Transaction Type: Buyer: Seller: Deed Reference: Verified With: Ownership Interest: Remarks 405724093 Retail Commercial, Mixed Use, MultiFamily, Office, Retail Closed Sale Date:4/21/2021 The Enclave on Sherman 707 Sherman Dr Denton, TX 76209 Denton R145435 Walker Builders LLC Sale Price per Unit: Domus Sherman Village Llc Sale Price:$700,000 Reliable Third Party Financing:Cash to Seller Fee Simple Conditions of Sale:Arm's Length 04212021 Sale Price per Usable SF:$4.25 Confirmed Via reliable Third Party. This sale, $4.25/sf, is for a proposed mixed development site. Potential uses include retail and office. Frontage on Sherman Drive and is half a mile from Texas Women's University. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Improved Sale Comparables Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. IMPROVED SALE COMPARABLE No. 1 Property Name: Address: City/State/Zip: Tax ID: Comparable ID: Property Subtype: Year Built:1973 Rentable Area (SF): 9,087 Buildings:1 Quality: Floors:1 Investment Class:B Construction Class: D Land (ac):0.871 Med (5mi) Home Val: $343,965 Median (5mi) Income: $51,951 Transaction Summary Transaction Type: Buyer: Seller: Deed Reference: Verified With: Ownership Interest: Financing: Marketing Time (Months): Financial Period Utilized: Financial Analysis No No Remarks Closed Sale Date:10/7/2021 Sale Price:$2,184,000 Former Forest Green Library 9015 Forest Lane Dallas, TX 75201 00000810968400000 Blank Reliable Source EGIM: Leased Fee Occupancy at Sale: Price/GBA:$240.34 202100299729 Capitalization Rate: 161 Recorded Price (Deed):N/A Cash to Seller Deferred Maintenance: Financial Period:Appraiser Appraiser Projected IRR: NOI Includes Mgt. Fee NOI Includes Reserves This property was purchased at auction with a 4% buyers premium. The buyer planned to convert the former library building for an owner occupied office use. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. IMPROVED SALE COMPARABLE No. 2 Property Name: Address: City/State/Zip: Tax ID: Comparable ID: Property Subtype: Year Built:1985 Rentable Area (SF): 10,500 Buildings:1 Quality: Floors:1 Investment Class:B Construction Class: D Land (ac):1.450 Transaction Summary Transaction Type: Buyer: Seller: Deed Reference: Verified With: Ownership Interest: Financing: Marketing Time (Months): Financial Analysis Yes Yes Remarks Woodhaven Square Closed Sale Date:9/13/2021 Sale Price:$783,000 1215 Country Club Ln Fort Worth, TX 76112 03618161 4.12779E+17 Blank Reliable Source EGIM: Leased Fee Occupancy at Sale: Price/GBA:$74.57 D221269327 Capitalization Rate: 319 Recorded Price (Deed):N/A Cash to Seller Deferred Maintenance: NOI Includes Mgt. Fee NOI Includes Reserves On September 13th, 2021 this 10,500 square foot property at 1215 Country Club Ln in Fort Worth was sold by First Gibraltar Bank. Advisors Commercial represented the seller on the deal. The building was vacant at the time of sale. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. IMPROVED SALE COMPARABLE No. 3 Property Name: Address: City/State/Zip: Tax ID: Comparable ID: Property Subtype: Year Built:1997 Rentable Area (SF): 2,500 Buildings:1 Quality: Floors:1 Investment Class:B Construction Class: D Land (ac):0.160 Transaction Summary Transaction Type: Buyer: Seller: Deed Reference: Verified With: Ownership Interest: Financing: Financial Period Utilized: Financial Analysis No No Remarks Office Warehouse Aeronca Ln Closed Sale Date:1/4/2021 Ryan John & Lindsey Ryan Sale Price:$455,000 10035 Aeronca Ln McKinney, TX 75071 2691374 Blank Reliable Source EGIM: N/A Occupancy at Sale: Price/GBA:$182.00 20210104000011480 Capitalization Rate: Cash to Seller Deferred Maintenance: Financial Period:Appraiser Appraiser Projected IRR: NOI Includes Mgt. Fee NOI Includes Reserves This sale was confirmed via reliable third party. Our Daily Bread Real Estate Appraisal Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. IMPROVED SALE COMPARABLE No. 4 Property Name: Address: City/State/Zip: Comparable ID: Property Subtype: Year Built:1981 Rentable Area (SF): 20,090 Buildings:1 Quality: Floors:1 Investment Class:B Construction Class: D Land (ac):1.524 Location:Occupancy:77% Transaction Summary Transaction Type: Buyer: Seller: Deed Reference: Verified With: Ownership Interest: Financing: Financial Analysis Yes Yes Remarks Eurpac Building Closed Sale Date:4/16/2020 Dexperts, Inc.Sale Price:$1,700,000 3001 N. Skyway Cir. Irving, TX 75038 Blank Reliable Source EGIM: Leased Fee Occupancy at Sale:77% Price/GBA:$84.62 20200101370 Capitalization Rate: Cash to Seller Deferred Maintenance: NOI Includes Mgt. Fee NOI Includes Reserves The property was 77.4% occupied at the time of sale. Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. Appendix E Engagement Letter Real Estate Division 401 N. Elm Street, Denton, TX 76201 January 12, 2023 Thomas Bogdon, MAI, R/W-AC, MRICS PO VENDOR #:_____________ Executive Vice President JLL Valuation & Advisory Services, LLC M+1 214 395 2787 2401 Cedar Springs Road, Suite 100 thomas.bogdon@am.jll.com Dallas, Texas 75201 Re: 909 N Loop 288 City Owned Building Project Account # 100278409.1365.40100 DCAD # 35796 This is a request by the City of Denton for professional appraisal services for the above listed Project. This appraisal assignment must be prepared in accordance with the reporting requirements set forth under Standard Rule 2-2(a) of Uniform Standards of Professional Appraisal Practice (USPAP), and all local, state, and federal requirements, except to the extent that the “Uniform Appraisal Standards for Federal Land Acquisition requires invocation of USPAP’s Jurisdictional Exception Rule, as described in Section D-1 of the Uniform Appraisal Standards for Federal Land Acquisitions.” In addition, the appraisals must conform to the specific conditions contained herein. The appraiser shall certify in each report that the appraisal is prepared in strict accordance with the URA appraisal requirements. Authorization: This is your authorization to proceed with this assignment. On 12/29/2023 DCAD information and the property address was provided of the subject “non-eminent domain” property. Confidentiality: The City of Denton is your confidential client. You are to take all reasonable steps to ensure that you and your organization divulge no information concerning your report to any other persons other than the City of Denton without written authorization to do so. Purpose of Appraisal: We request that you provide the following value estimate. Market Value “As Is” Effective Date: The date of valuation must be within (30) thirty days of the delivery, unless instructed otherwise. Scope: The scope of the service must be included in the full appraisal process report. Should you find reporting requirements different than indicated here, please contact the undersigned for authorization to proceed. The appraisal is to be completed and presented as a self-contained and stand-alone document. Your acceptance of this appraisal assignment will confirm that the City of Denton owns the report(s), which you provide, and the City of Denton will be under no restrictions regarding their redistribution to other interested parties of its choice. Addressee and Contact: Please address reports as follows: Project Name - Project Account Number 100278409.1365.40100 City of Denton-Real Estate Division Attn: Deanna Cody, Deputy Director 401 N. Elm Street Denton, Texas 76201 Commitment: It is our understanding that (1) electronic copy of the appraisal report(s) is to be submitted to the addressee by February 13, 2023 together with a statement of services in the amount not to exceed $5,800.00 for the referenced parcel. Your statement should include your Federal Tax ID Number and should reference the Project Name: 909 N Loop 820 – City Owned Building In an effort to comply with the Texas State Library and Archives Commission and the passing of recent Senate Bill 18, the City of Denton is required to retain appraisals for ten years. Therefore, we require appraisers to electronically submit appraisals. This will assist the City of Denton in continuing to remain in compliance with record retention requirements. The City of Denton reserves the right to accept the appraisals and will not be responsible for any expenses incurred by the assignment if wording or disclaimers are included limiting your professional liability to the City of Denton. Conflict of Interest: All members and/or appraisal subcontractors of your organization certify that they have no personal, business, or other relationship with the property’s ownership, or have attached an explanation disclosing the nature of such relationship(s). Further, your acceptance of this assignment certifies you agree not to accept or pursue the appraisal, or related assignments, of the subject property, or other assignments with the subject property’s ownership (excluding limited partners and other financial institutions), for a period extending one year from the later of the date of this letter agreement, its delivery date, or the conclusion of ongoing or pending litigation without prior written consent of the City of Denton. A penalty of $ 100.00 per business day will be deducted from the fee for reports delivered after the date stipulated above. No penalties will be imposed for delays resulting from circumstances beyond the appraiser’s control; such circumstances judged for their validity solely by the City of Denton, Real Estate office. Your original signature of this letter is required and returned to the undersigned, which will confirm our mutual understanding. SUBMITTED: ACCEPTED BY: Laura B. Morales for Deanna Cody _______________________ _______________ Program Manager Appraiser Signature Date Please do not proceed with the appraisal assignment until you are in receipt of a copy of this engagement letter signed by all the above and an assigned PO Vendor#. Copyright © Jones Lang LaSalle IP, Inc. 2023. All Rights Reserved. JLL Valuation Advisory 200 E. Randolph, 47th Floor Chicago, IL 60601 +1 312 252 8930 +1 312 252 8914