Loading...
HomeMy WebLinkAboutEAR25-0011 - 2nd Submittal - A-25-12-7950 5101 McKinney Denton_16ft utility easement_AppraisalTM APPRAISAL ASSOCIATES Real Estate Appraisers & Consultants 101 S. Locust, Ste. 600 P.O. Box 158 Denton, Texas 76202 Phone: (940) 243-2387 tracy@tma-appraisal.com www.tma-appraisal.com TMA File: A-25-12-7950 This is an Appraisal Report intended to comply with the reporting requirements set forth under Standards Rule 2-2 of the USPAP. The report presents practical explanations of the data, reasoning, and analysis incorporated in the appraisal process to develop the opinion of value, and includes descriptions of the subject property, the regional and local property market, and the opinion of highest and best use. The firm is not responsible for unauthorized use of this report. Specific/extraordinary assumptions & hypothetical conditions utilized in the value opinion: • It is a specific assumption of this report that the subject has no environmental or structural conditions which could adversely affect its marketability or market value. • It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. • It is a specific assumption of this report that the land size(s) reported for the subject is sufficiently correct as to not adversely affect the value opinion. • It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. • It is a specific assumption of this report that the intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance. • It is a specific assumption of this report the project will be completed as indicated on the project plans provided by the client in a timely and workmanlike manner. • It is a specific assumption of this report that the land size, along with the portion of land that is proposed to be abandoned as a result of the project, is accurate. The whole size is based on public records. The parts abandoned are based on the survey provided by our client. • The appraisal is based on the specific assumption that the abandoned easement will be properly capped in compliance with all regulatory requirements and that no adverse environmental conditions will result from the proposed project. • It is a specific assumption of this report that the that no site or other improvements will be impacted as a result of the proposed project. And/or any site improvements impacted will be replaced with similar or better-quality improvements upon completion of the project. • It is our specific assumption after the abandonment the owner will have access to build across with no limitations. • The appraisal of a remainder property assumes that the proposed public or private improvements were complete as of the effective date of valuation, when in fact it is known that they are not. • In addition, in the before condition, the value of the property is estimated as if the market has no knowledge of the proposed public project. This condition is assumed for the purpose of analysis, when in fact market participants may have knowledge of the proposed public project as of the effective date of the appraisal. CLIENT: Denton ISD C/o Marc DeGenaro P.O. Box 686 Denton, TX 76202 SUBJECT PROPERTY: 16 ft. Utility Easement Abandonment located at 5101 E. McKinney Street Denton, Texas 76208 DATE OF REPORT: January 19th, 2026 EFFECTIVE DATE: January 7th, 2026 INTENDED USE: Determine Market Value of a Sewer Utility Easement Abandonment INTENDED USER: Denton ISD: C/o Marc DeGenaro TM APPRAISAL ASSOCIATES Page 1 TM APPRAISAL ASSOCIATES Real Estate Appraisers & Consultants 101 S. Locust, Ste. 600 P.O. Box 158 Denton, Texas 76202 Phone: (940) 243-2387 tracy@tma-appraisal.com www.tma-appraisal.com TMA File: A-25-12-7950 Denton ISD C/o Marc DeGenaro P.O. Box 686 Denton, TX 76202 Dear Mr. DeGenaro: TM Appraisal Associates is pleased to submit the accompanying appraisal of the referenced property. The intended use of this appraisal is to assist the client in their determination of adequate compensation due as of January 7th, 2026, the effective date of the appraisal. The appraisal is intended to conform with the Uniform Standards of Professional Appraisal Practice (USPAP), The Texas Property Code and any other applicable state appraisal regulations. To report the assignment results, we use the Appraisal Report option of Standards Rule 2-2(a) of USPAP. It summarizes the information analyzed, the appraisal methods employed, and the reasoning that supports the analyses, opinions, and conclusions. The whole property contains 78.2780 ac +\- or 3,409,790 square feet +\-, of land with associated improvements (DISD Ryan High School Complex, drives, and parking). According to the documentation provided, there is a ~ 16 ft. sewer utility abandonment easement. The proposed utility easement is described for the purpose of this report as follows: A below ground 16ft. Sewer Utility Easement consisting of ~ 0.403 acres +\-, or 17,555 SF +/- in the M. Forrest Survey, Abstract No. 417, Denton County, Texas and physically located at 5101 E. McKinney Street, in the City of Denton. Subject Characteristics and Remainder Impact are detailed as follows. 1. Denton CAD, Deed records, and Google maps are utilized to determine the whole site and indicate that the subject is ~ 78.278 Acres in size The existing improvements do not appear to be directly impacted by the proposed project. The subject utility easement is located underground along the western portion of the property, generally following the main driveway and extending in a north–south orientation between the stadium and the DISD Transportation building (See Exhibits). The improvements are mentioned as part of our description but are not included in our analysis. It is a specific assumption of this report that the that no site or other improvements will be impacted as a result of the proposed project. And/or any site improvements impacted will be replaced with similar or better-quality improvements upon completion of the project. 2. The subject property whole is irregular in shape, and the topography is gently rolling to street grade with concrete paving and parking with some grass and some trees located mostly along entry at E. McKinney Street, and along the borders of the site. The site improvements do not appear impacted by the proposed project. As such, the whole property's highest and best use of the remainder property will be similar to the current use which is institutional use. 3. According to our client, the transfer of title has not yet occurred; however, DISD intends to use this appraisal report in order to determine the value for the proposed utility project. 4. The subject property is located on the north side of E. McKinney Street, ~1,800 feet east of Mayhill Drive adjacent to the Ashli Oaks Mobile Home Park The whole parcel has a physical address of 5101 E. McKinney St, Denton, Texas. The remainder property will have similar access and exposure. TM APPRAISAL ASSOCIATES Page 2 5. A hypothetical condition* is “that which is contrary to what exists but is supposed for the purpose of analysis.” The purpose of the appraisal is to estimate the market value associated with the proposed taking. In order to estimate the value of the remainder after, it is appraised as and assumes the project is complete and developed to the specifications outlined in the petition and/or provided documentation; whereas it is known that it is not. We have made the following specific assumptions based on a hypothetical condition: • The appraisal of a remainder property assumes that the proposed public or private improvements are complete as of the effective date of valuation, when in fact it is known that they are not. • In addition, in the before condition, the value of the property is estimated as if the market has no knowledge of the proposed public project. This condition is assumed for the purpose of analysis, when in fact market participants may have knowledge of the proposed public project as of the effective date of the appraisal. 6. An extraordinary assumption* is an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. We have made the following specific extraordinary assumptions in addition to the typical general assumptions and limiting conditions. • It is a specific assumption of this report that the subject has no environmental or structural conditions which could adversely affect its marketability or market value. • It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. • It is a specific assumption of this report that the land size(s) reported for the subject is sufficiently correct as to not adversely affect the value opinion. • It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. • It is a specific assumption of this report that the intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance. • It is a specific assumption of this report the project will be completed in a timely and workmanlike manner as indicated on the project plans provided by the client. • It is a specific assumption of this report that the land size, along with the portion of land that is proposed to be abandoned as a result of the project, is accurate. The whole size is based on public records. The parts abandoned are based on the survey provided by our client. • The appraisal is based on the specific assumption that the abandoned easement will be properly capped in compliance with all regulatory requirements and that no adverse environmental conditions will result from the proposed project. • It is a specific assumption of this report that no site area or existing improvements will be impacted because of the proposed project. And/or any site improvements impacted will be replaced with similar or better-quality improvements upon completion of the project. • It is our specific assumption after the abandonment the owner will have access to build across the easement area with no limitations. *Reliance upon these extraordinary assumptions and hypothetical conditions may have affected our assignment results. 7. Damage or enhancements to the remainder property are detailed in our analysis, if applicable, no cost to cure is expected as no improvements are expected to be affected because of the project. TM APPRAISAL ASSOCIATES Page 3 8. Based on the analysis and conclusions in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed herein, it is our opinion that the compensation herein described property as of the effective date is as follows: If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted, TM APPRAISAL ASSOCIATES Introduction - Page 1 DEFINITION OF MARKET VALUE Market Value is defined by City of Austin v. Cannizzo, 267 S.W. 2d 808 (Tex 1954) as being: “The price the property would bring when offered for sale by one who desires to sell, but is not obliged to sell, and is bought by one who desires to buy, but is under no necessity of buying, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is, or, in all reasonable probability, will become available within the reasonable future”. SPECIFIC/EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. Extraordinary assumptions are specific to the assignment, as opposed to general assumptions, which could be applicable to any assignment. In this assignment, we have assumed typical general assumptions and limiting conditions. Specific/extraordinary assumptions & hypothetical conditions utilized in the value opinion: • It is a specific assumption of this report that the subject has no environmental or structural conditions which could adversely affect its marketability or market value. • It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. • It is a specific assumption of this report that the land size(s) reported for the subject is sufficiently correct as to not adversely affect the value opinion. • It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. • It is a specific assumption of this report that the intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance. • It is a specific assumption of this report the project will be completed as indicated on the project plans provided by the client in a timely and workmanlike manner. • It is a specific assumption of this report that the land size, along with the portion of land that is proposed to be abandoned as a result of the project, is accurate. The whole size is based on public records. The parts abandoned are based on the survey provided by our client. • The appraisal is based on the specific assumption that the abandoned easement will be properly capped in compliance with all regulatory requirements and that no adverse environmental conditions will result from the proposed project. • It is a specific assumption of this report that the that no site or other improvements will be impacted as a result of the proposed project. And/or any site improvements impacted will be replaced with similar or better-quality improvements upon completion of the project. • It is our specific assumption after the abandonment the owner will have access to build across with no limitations. • The appraisal of a remainder property assumes that the proposed public or private improvements were complete as of the effective date of valuation, when in fact it is known that they are not. TM APPRAISAL ASSOCIATES Introduction - Page 2 • In addition, in the before condition, the value of the property is estimated as if the market has no knowledge of the proposed public project. This condition is assumed for the purpose of analysis, when in fact market participants may have knowledge of the proposed public project as of the effective date of the appraisal. HYPOTHETICAL CONDITIONS A hypothetical condition is “that which is contrary to what exists but is supposed for the purpose of analysis.” Appraisal reports prepared for eminent domain purposes may recognize one or more hypothetical conditions. The use of hypothetical conditions derived from public policy and case law does not result in a process that is limited or renders the results no longer credible. • The appraisal of a remainder property assumes that the proposed public or private improvements are complete as of the effective date of valuation, when in fact it is known that they are not. • In addition, in the before condition, the value of the property is estimated as if the market has no knowledge of the proposed public project. This condition is assumed for the purpose of analysis, when in fact market participants may have knowledge of the proposed public project as of the effective date of the appraisal. Reliance upon these extraordinary assumptions and hypothetical conditions may have affected assignment results. JURISDICTIONAL EXCEPTION RULE If any part of the Uniform Standards of Professional Appraisal Practice is contrary to the law or public policy of any jurisdiction, only that part shall be void and of no force or effect in that jurisdiction. For the purposes of this assignment, in valuing the whole property before the acquisition, we have disregarded any increase or decrease in the market value of the property caused by the public improvement for which part of the property is being acquired, or by the likelihood that the property would be acquired for such improvement in estimating the compensation in this appraisal. PURPOSE OF APPRAISAL The purpose of the appraisal is to develop an opinion of real property compensation due, which includes the market value of the whole and the part to be abandoned, plus any applicable damages to the remainder property (if any), as of the effective date of the appraisal, January 7th, 2026. Market value is based upon the analysis of the underlying fee simple interest in the property. In some assignments, the market value of permanent or temporary easement interest(s) is required. The appraisal is valid only as of the stated effective date of value. TM APPRAISAL ASSOCIATES Introduction - Page 3 INTENDED USE/USER The intended use of this appraisal is to assist the client in their determination of adequate compensation due, in compliance with the Texas Constitution Article 1, Section 17, to be paid for the acquisition of Real Property interest for a public purpose as described herein. Others may receive a copy of this report due to legal requirements of disclosure, but the report is not intended for any other use or user. The client and intended user are Denton ISD and no other. This appraisal report is prepared for use only by Denton ISD. OTHER DEFINITIONS *Right-of-way – A privilege to pass over the land of another in some particular path; usually an easement over the land of another; a strip of land used in this way for railroad or highway purposes, for pipelines or pole line and for private or public passage. *Source: The Appraisal Institute Dictionary of Real Estate Appraisal 4th Edition page 250 *Utility Easement – The rights granted to use a portion of a property for utility lines. *Source: The Appraisal Institute Dictionary of Real Estate Appraisal 4th Edition page 303 *Bundle-of-Rights Theory- The concept that compares property ownership to a bundle of sticks with each stick representing a distinct and separate right of the property owner, e.g. the right to use real estate, sell it, to lease it, to give it away, or to choose to exercise all or none of these rights. *Source: The Appraisal Institute Dictionary of Real Estate Appraisal 4th Edition page 37 *Abandonment - The voluntary relinquishment of all rights, title, and interest in real property with no intention of reclaiming or resuming ownership or use. This includes giving up associated rights (such as easements) when supported by an owner’s conduct demonstrating intent to abandon. *Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Edition (2022) APPLICABLE REQUIREMENTS This appraisal is intended to conform to the requirements of the following:  This report is prepared under the Appraisal Report option of Standards Rule 2-2(a) of USPAP.  Code of Professional Ethics of the Appraisal Institute; and Standards of Professional Ap- praisal Practice (USPAP) of the ASB/Appraisal Foundation.  Applicable state appraisal regulations including Texas Property Code, Title 4, Chapter 21. TM APPRAISAL ASSOCIATES Introduction - Page 4 SCOPE OF WORK Conduct a visual survey of the subject, regional area and market area. Analyze secondary data sources to assist in assessing market conditions, zoning and tax information in the market area. Estimate the highest and best use of the property. Research market data on comparable properties confirmed by participants in the regional market area. Develop a credible opinion of the defined value for the subject property utilizing the applicable approaches to value. Present the opinion in the appropriate format. The type and extent of our research and analysis is detailed in individual sections of the report. In general, the following steps were taken to perform this assignment: Physically inspected the subject property and the surrounding market area. The inspection of the property is limited to those things readily observable without the use of special testing or equipment. Subject information may be sourced 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. 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 value indication via each applicable approach to value. In certain partial right-of-way projects and/or condemnations, if it has been determined that the proposed project will not result in permanent damage to the remainder property, the opinion of compensation can be limited to the valuation of the land and affected improvements. TM APPRAISAL ASSOCIATES Introduction - Page 5 The valuation of the unaffected improvements is not necessary in some cases for a credible assignment result. In this case, the subject is land. No improvements are expected to be impacted. As such, the valuation is limited to the land valuation. Because of the numerous mathematical calculations that are inherent for partial acquisition and/or condemnation valuations, very little rounding of interim value calculations is made in this report. Although unrounded value estimates are required to prevent rounding errors, value opinions contained in this report are not intended to be exact, but opinions of approximate value only. Partitioned the Whole Property value opinion between the Part(s) to be Acquired and the Remainder. If applicable, the part to be acquired and/or abandoned and remainder before estimates are prorated allocations of the whole property (e.g., If the whole property is 100% and the part to be acquired is 10%, the remainder before the acquisition is 90%). Performed a highest and best use analysis on the Remainder After, with consideration to the impact on the residual property as a result of the proposed project. The appraisal of a remainder property is performed as though the proposed public or private improvements are complete as of the effective date of valuation. The cost to cure and restore the functionality of the Remainder After was estimated, if necessary. Derived an estimate of the total compensation due as the result of a proposed project by summation of the part to be acquired and any damages. The damages were calculated based on the difference in the value opinion for the remainder before and remainder after, if applicable. Prepared an appraisal report summarizing our analyses, opinions and conclusions. Other elements of the scope of work undertaken to perform this assignment are outlined throughout the narrative of the report. TM APPRAISAL ASSOCIATES Introduction - Page 6 RESEARCH AND ANALYSIS The extent of research and analysis conducted is detailed in the individual sections of this assignment. However, the steps can be summarized as follows: Researched area market unimproved, and improved sales and listing, researched replacement cost data, income, expense data, rates of returns, researched zoning, tax, property history, reviewed and researched property and comparable data site, improvement and other characteristics, and reviewed and research other relevant information pertaining to the subject, data used in analysis, and the market area. The type and extent of our research and analysis is detailed in individual sections of the report. In general, the following steps were taken to perform this assignment:  Physically inspected the subject property and the surrounding market area. The inspection of the property is limited to those things readily observable without the use of special testing or equipment. Subject information may be sourced 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 re- gional 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.  Based upon the subject property characteristics, prevailing market dynamics, and other in- formation, 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 value indication via each applicable approach to value.  If Applicable, partitioned the whole property value opinion between the Part(s) to be Ac- quired and/or abandoned, and the Remainder Before the acquisition. If applicable, the part to be acquired and/or abandoned, and remainder before estimates are prorated allocations of the whole property (e.g., If the whole property is 100% and the part to be acquired is 10%, the remainder before the acquisition is 90%). TM APPRAISAL ASSOCIATES Introduction - Page 7  Performed a highest and best use analysis on the Remainder After, with consideration to the impact on the residual property as a result of the proposed project. The appraisal of a re- mainder property is performed as though the proposed public or private improvements are complete as of the effective date of valuation. The cost to cure and restore the functionality of the remainder after was estimated, if applicable.  Derived an estimate of the total compensation due as the result of a proposed project by summation of the part(s) to be acquired and any damages, if applicable.  Prepared an appraisal report summarizing our analyses, opinions and conclusions. Other elements of the scope of work undertaken to perform this assignment are outlined throughout the narrative of the report. TM APPRAISAL ASSOCIATES Introduction - Page 8 CASE LAW AND LEGISLATIVE PRECEDENTS For right-of-way projects in the State of Texas, there are also several cases that may establish compensable and non-compensable elements resulting from a project. For example, regarding the compensation for landscaping, the Texas Supreme Court stated in the case of White vs. Natural Gas that “in eminent domain proceedings our courts have consistently held that the landowner cannot recover for damage to crops, loss of trees, ornamental shrubs, etc., as separate items. These features can be taken into consideration in determining compensation only insofar as they affect the market value of the land, as land.2” A necessary component of right-of-way appraisal is the exclusion of project influence. Project influence is any decrease or increase in the market value of real property caused by the project for which the property is to be acquired, or by the likelihood that the property would be acquired for the project. (See 49 CFR 24.103—Code of Federal Regulation (CFR), Title 49 (Transportation), Chapter A, Part 24, Subpart B, Section 24.103) The US Department of Transportation also utilizes this same rule and directs local public agencies to do the same (USDOT, Federal Highway Administration, Real Estate Acquisition Guide for Local Public Agencies, Section 24.103 “Criteria for Appraisals” 2(b)). Furthermore, Texas case law also requires project influence to be excluded. See City of Fort Worth v. Corbin, Texas Supreme Court (504 S.W.2d 828. Texas, 1974) and City of El Paso v. Coffin (88 S.W. 502. Texas, 1905). As pertaining to so-called “community damages”, Subsection (d), Section 21.042, of Title 4 the Texas Property Code states: (d) In estimating injury or benefit under Subsection (c), the special commissioners shall consider an injury or benefit that is peculiar to the property owner and that relates to the property owner's ownership, use, or enjoyment of the particular parcel of real property, including a material impairment of direct access on or off the remaining property that affects the market value of the remaining property, but they may not consider an injury or benefit that the property owner experiences in common with the general community, including circuity of travel and diversion of traffic. In this subsection, "direct access" means ingress and egress on or off a public road, street, or highway at a location where the remaining property adjoins that road, street, or highway. 2 White v. Natural Gas Pipeline Company of America, 444 S.W.2d 298, 301 (Tex. 1969) TM APPRAISAL ASSOCIATES Introduction - Page 9 PERSONAL PROPERTY AND TRADE FIXTURES The estimate of compensation in this report is for real property interest or real estate, which includes the physical land and improvements attached to the land. This report does not include a value estimate for personal property or trade fixtures unless represented otherwise in this report. According to the Code of Federal Regulations (CFR), Title 49 – Transportation, Section 24.103(a)(1), “The appraisal report should identify the items considered in the appraisal to be real property, as well as those identified as personal property.” The real property or real estate is described in other sections of this report, or the Description and Analysis of the Land and in the Description and Analysis of the Improvements. The appraisers did not observe any items during the most recent inspection considered personal property. VALUATION METHODOLOGY- 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. Use of the approaches in this assignment are summarized as follows: Applicability and utilization of the approaches in this assignment are described as follows. 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. 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. 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. TM APPRAISAL ASSOCIATES Introduction - Page 10 Valuation Approaches Whole Property Applicability Land Sales Comparison Approach Utilized Cost Approach Not Applicable Sales Comparison Approach Not Applicable Income Capitalization Approach Not Applicable Valuation Approaches Remainder After Applicability Land Sales Comparison Approach Utilized Cost Approach Not Applicable Sales Comparison Approach As Improved Not Applicable Income Approach As Improved Not Applicable INSPECTION On or about December 12th, 2025, our office was contacted, and our services were engaged thereafter by a representative of the Coleman & Associates Land Surveying, Marc DenGenaro, and/or others on before of Denton ISD. We were engaged to complete an appraisal on the following: A proposed abandonment of a 16 ft. sewer easement. The proposed easement is described for the purpose of this report as ~0.403 ac or 17,555 SF +\-, sewer easement, legally described as 0.403 ac +-\ in the M. Forest Survey, Ab. No. 417, Denton County, Texas and physically located at 5101 E. McKinney Street, in the City of Denton. No contact information was provided to formally inspect the property. However, due to the nature of the engagement being on public property we were able to inspect the property from the roadway and drives near the roadway. Additionally, county plat maps, aerials, online GIS mapping, and provided survey(s), drawing(s), and other client documentation were also viewed throughout the appraisal process. Jana Newburn personally inspected the subject property on January 7th, 2026, from the roadway and drives. Tracy Runnels did not personally inspect the property. TM APPRAISAL ASSOCIATES Introduction - Page 11 PRIOR SERVICES STATEMENT 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 valuations, consulting, property management, brokerage, and any other services. We have not performed any services, as an appraiser or in any other capacity, regarding the subject property of this report within the three- year reporting period immediately preceding acceptance of this assignment. COMPETENCY OF APPRAISERS Jana Newburn has been active in real estate appraisal in North Texas since 2000. She obtained her Texas Certified General Real Estate Appraiser’s license in 2002 and has over 24 years of experience appraising and reviewing both commercial and residential real estate. She began her career with Tommy Marshall & Associates in 2000 and has recently returned to TM Appraisal Associates. She has worked for a variety of institutions over the years, including banks, mortgage lenders, AMCs, private lending institutions, attorneys, and individuals. Her expertise and competency include a variety of commercial and residential properties, including 1-4 family, farm/ranch, commercial land, religious facilities, light industrial, office, retail, development analysis, and a variety of eminent domain, utility and right-of-way analysis. Tracy Runnels has been active in real estate appraisal in North Texas since 2005. She obtained her Texas Certified General Real Estate Appraiser’s license in 2008. She has 20 years of experience with Tommy Marshall & Associates/TM Appraisal Associates and has appraised properties throughout North Central Texas and Oklahoma. Her expertise and competency encompass 19+ years of appraisal in religious facilities, manufacturing, single and multi-family residential, hotel/motel, farm/ranch, industrial, single family subdivision developments, retail, and office buildings. TM APPRAISAL ASSOCIATES Introduction - Page 12 IDENTIFICATION OF SUBJECT AND PROJECT The subject property is located on the north side of E. McKinney Street, ~1,800 feet east of Mayhill Drive, and adjacent to the Ashli Oaks Mobile Home Park, the whole property has a physical address is 5101 E. McKinney St, Denton, Texas. The remainder property will have similar access and exposure. The subject of this report is identified by the client as: A below ground 16ft. sewer utility easement consisting of ~ 0.403 acres +\- or 17,555 SF +\-, in the M. Forrest Survey, Abstract No. 417, Denton County, Texas and physically located at 5101 E. McKinney Street, in the City of Denton, for the purpose of abandonment and relocation. The parent is ~78.278 acre +\- parent tract, or the “whole property”. The remainder property immediately after the taking is 78.278 +\-. The purpose of the proposed project is to abandon an existing 16 ft. sewer utility easement. The proposed utility easements are depicted and described in the exhibits provided by the client below. TM APPRAISAL ASSOCIATES Introduction - Page 13 PURPOSE OF ABANDONMENT TM APPRAISAL ASSOCIATES Introduction - Page 14 16 FT. SEWER EASEMENT LEGAL DESCRIPTION TM APPRAISAL ASSOCIATES Introduction - Page 15 SURVEY TM APPRAISAL ASSOCIATES Introduction - Page 16 AERIAL OF ~ 16 ft. SEWER EASEMENT TM APPRAISAL ASSOCIATES Introduction - Page 17 The subject land area & utility easement (s) is summarized in the table below. Subject Land & Proposed Utility Easement Areas Whole Property Acres Square Feet 78.278 +\- 3,409,790 +\- Part(s) to Be Abandoned Acres Square Feet Below Ground Sewer Easement (10% Interest) 0.403 +\- 17,555+\- Remainder Property Acres Square Feet 78.278 +\- 3,409,790 +\- Temporary Construction Easements Acres Square Feet NA NA NA TM APPRAISAL ASSOCIATES Section B - Page 1 SECTION A SUBJECT PROPERTY OVERVIEW TM APPRAISAL ASSOCIATES Section B - Page 2 EXECUTIVE SUMMARY TMA File: A-25-12-7950 Property Type: 78.278 ac (3,409,790 SF +/-) of land per DCAD Address: 5101 E. McKinney Street County/State: Denton/Texas Location: North side of E. McKinney Street, ~1,800 feet east of Mayhill Drive adjacent to the Ashli Oaks Mobile Home Park Legal Description: Land in the M. Forrest Survey, Abstract No. 417, Denton County, Texas Date of Report: January 19th, 2026 Effective Date of Value: January 7th, 2026 Highest and Best Use: Hold for development with institutional use until further development with mixed use development is warranted on excess land Estimated Exposure/Marketing Time: 12 Months Purpose of Appraisal: Estimate the market value of the fee simple interest “whole”, “abandoned part(s)”, and any damages or enhancements that result for purpose of abandoning an underground sewer easement Appraisers: Tracy Runnels, Principal Jana Newburn, Associate Appraiser SITE DATA Land Area (Acres): Whole – 78.278 ac or 3,409,790 SF +/- Per DCAD Part to Be Abandoned 0.403 ac, or 17,555 SF +\- (10%) – below ground easement Remainder – 78.278 Ac +\-, or 3,409,790 SF +\- Temporary Construction Easements: NA Zoning: “PF” – Public Facility Shape: Irregular Topography: Gently rolling concrete drives, parking, and some landscape, grass tree cover Frontage: ~ 1,180’ along the north side of N. Side of E. McKinney St & ~590’ along the south side of Mill St. (~per GIS measurement) Soil Conditions: Assumed adequate; rely on geo-technical report Utilities: All city utilities available Flood Plain: None; Zone X, FEMA Map 48121C0380G, Dated 4/18/2011 TM APPRAISAL ASSOCIATES Section B - Page 3 VALUE CONCLUSIONS & TOTAL COMPENSATION Explanation of value conclusions & compensation as of the effective date of value is detailed in the table below: TM APPRAISAL ASSOCIATES Section B - Page 4 PHOTOGRAPHS OF SUBJECT PROPERTY TM APPRAISAL ASSOCIATES Section B - Page 5 PHOTOGRAPHS OF SUBJECT PROPERTY TM APPRAISAL ASSOCIATES Section B - Page 6 ~Location of 16 Ft. Underground Sewer TM APPRAISAL ASSOCIATES Section B - Page 7 HISTORY OF THE SUBJECT PROPERTY As required by the Code of Professional Ethics and Standards of Professional Appraisal Practice established by the Appraisal Institute, the appraisal report must consider and analyze any current agreement of sale, options, listings, and any prior sales within the past three years. This analysis should reasonably disclose and verify: a. Grantor(s) - Grantee(s) b. Sale Date(s) c. Sale Price(s) and terms of financing, discounting the sale to a cash equivalent, when necessary. d. Any interrelated parties to each transaction. The subject data is reported in compliance with USPAP and no other pertinent information was noted other than is reported below. The data should not be used in lieu of a title search and is not a guarantee to the chain of title. According to the Denton Central Appraisal District, the subject property is assessed under account number 959120 and is currently entitled to Denton ISD. According to Denton County Real Property Records, the subject was platted in 1987 for the purpose of building the high school currently situated on the site. Denton ISD has owned the property for a period exceeding 3 years. No listing or prior sales were found on NTREIS, COSTAR, or public record search. To the best of our knowledge no current or prior listings are known and/or were found during our research. The subject property whole parcel is located on the north side of E. McKinney Street, ~1800 feet east of Mayhill Drive, and adjacent to the Ashli Mobile Home Park, and has a physical address is 5101 E. McKinney St. Denton. The subject land area & utility easement (s) is summarized in the table below. Subject Land & Proposed Utility Easement Areas Whole Property Acres Square Feet 78.278 +\- 3,409,790 +\- Part(s) to Be Abandoned Acres Square Feet Below Ground Sewer Easement (10% Interest) 0.403 +\- 17,555+\- Remainder Property Acres Square Feet 78.278 +\- 3,409,790 +\- Temporary Construction Easements Acres Square Feet NA NA NA TM APPRAISAL ASSOCIATES Section B - Page 8 SECTION B SUBJECT PROPERTY ANALYSIS TM APPRAISAL ASSOCIATES Section B - Page 9 MARKET AREA ANALYSIS The subject market area is considered to be the City of Denton, the county seat of Denton County, as well as outer lying areas in Denton County. The market area is 70-80% developed and the area is in the slow growth stage of the real estate cycle. New construction is occurring, and land uses consist of retail/commercial on primary thoroughfares and in the city center, light industrial uses near railroad spurs and airports, recreational uses located on nearby lakes, and residential on acreage and agricultural uses located in the ETJ and in unincorporated Denton County. No external adverse conditions were noted in the area. The market area is bound by the Denton city limits to the north, south, east, and west. MARKET AREA MAP TM APPRAISAL ASSOCIATES Section B - Page 10 North Texas Council of Governments Population Summarized in the below graphics TM APPRAISAL ASSOCIATES Section B - Page 11 Denton County Profile Summary: Denton County, Texas, is a rapidly growing and diverse area located in the Dallas-Fort Worth metropolitan region. Here’s a detailed community profile of Denton County: Location: Denton County is situated in North Texas, bordered by Cooke County to the north, Collin County to the east, Tarrant County to the south, and Wise County to the west. TM APPRAISAL ASSOCIATES Section B - Page 12 Economy Industry: The economy of Denton County is diverse, with strong sectors in education, technology, manufacturing, and healthcare. The area has seen substantial growth in business and industry due to its proximity to the Dallas-Fort Worth metroplex. Employment: Major employers include the University of North Texas, Texas Woman’s University, and several large corporations in technology and manufacturing. Education Schools: The county is served by multiple independent school districts (ISDs), including Denton ISD, Lewisville ISD, and Flower Mound ISD, among others. The schools are known for their strong academic programs and extracurricular activities. Higher Education: Denton County is home to several higher education institutions, including the University of North Texas (UNT) and Texas Woman’s University (TWU) in Denton, as well as campuses of Collin College. Culture and Recreation Parks and Recreation: The county offers numerous parks, trails, and recreational facilities. Lake Lewisville and Lake Ray Roberts are popular spots for boating, fishing, and outdoor activities. Cultural Attractions: Denton County has a vibrant cultural scene with various museums, theaters, and music venues. The city of Denton is particularly known for its music festivals and historic downtown area. Community Events: The county hosts a range of community events and festivals throughout the year, celebrating local culture, arts, and heritage. Housing and Real Estate Housing Market: The real estate market in Denton County is diverse, with options ranging from suburban neighborhoods to rural properties. The county has seen a surge in new residential developments due to its growing population. Development: New housing and commercial developments are ongoing, with a focus on accommodating the increasing demand from new residents and businesses. Transportation Roads: Denton County is well connected by major highways, including Interstate 35E, which provides access to Dallas and other areas of the metroplex. State highways and local roads also facilitate regional travel. Public Transit: The county is served by the Denton County Transportation Authority (DCTA), which provides bus and commuter rail services connecting Denton to neighboring areas, including Dallas. TM APPRAISAL ASSOCIATES Section B - Page 13 Community and Lifestyle Demographics: Denton County is diverse, with a mix of urban, suburban, and rural populations. It attracts a range of residents, from young professionals and families to retirees. Lifestyle: The county offers a blend of suburban and rural lifestyles, with access to urban amenities and a high quality of life. The area is known for its strong community spirit, good schools, and recreational opportunities. Overall, Denton County is a dynamic and growing region that combines the benefits of proximity to the Dallas-Fort Worth metroplex with a diverse and thriving local community. Its strong economy, educational institutions, and quality of life make it a desirable place to live and work. City of Denton, Texas - Community Profile Denton, Texas, located in the northern part of the Dallas-Fort Worth (DFW) metroplex, is a growing city with a rich history, vibrant community, and strong economic prospects. Here's an overview of the community: Population & Demographics: Population: Denton has an estimated population of around 160,000 as of 2023, making it one of the larger cities in North Texas. The city has experienced consistent growth in recent years, fueled by its proximity to the DFW metro area, local universities, and expanding job opportunities. Demographics: The population is diverse, with a median age of about 29 years, reflecting the large student population. Denton is home to two major universities: the University of North Texas (UNT) and Texas Woman’s University (TWU), contributing to a significant portion of its residents being students. Economy & Employment: Key Industries: Denton's economy is driven by education, healthcare, retail, and manufacturing. UNT and TWU are major employers, along with Denton Independent School District and various healthcare providers. Employment Growth: The city's employment base is steadily growing, with opportunities in higher education, government, and healthcare leading the way. Its proximity to DFW International Airport and other key hubs also supports logistics and transportation industries. TM APPRAISAL ASSOCIATES Section B - Page 14 Education: Higher Education: The University of North Texas is a leading public research university with over 40,000 students, and Texas Woman's University focuses on healthcare and education programs. These institutions play a significant role in shaping Denton's cultural and economic landscape. Public Schools: Denton is served by the Denton Independent School District, known for its quality education offerings and serving over 30,000 students across the city and surrounding areas. Housing & Cost of Living: Housing: Denton offers a range of housing options, from single-family homes in suburban neighborhoods to student apartments near the university campuses. The median home price is around $355,000, making it relatively affordable compared to other parts of DFW. Cost of Living: While housing prices are on the rise, Denton remains more affordable than central Dallas or Fort Worth. The overall cost of living in Denton is about 5-10% lower than the national average, with lower housing costs but slightly higher transportation expenses due to its suburban nature. Culture & Recreation: Cultural Scene: Denton is known for its music and arts scene, often called the "Austin of North Texas" because of its vibrant live music culture. The city hosts the annual Denton Arts & Jazz Festival, which attracts thousands of visitors. Parks and Recreation: Denton offers numerous parks, trails, and outdoor activities, including Lake Ray Roberts and Clear Creek Natural Heritage Center. The city is also working to expand its green spaces and recreational facilities as its population grows. Transportation: Connectivity: Denton is well-connected via Interstate 35, providing easy access to Dallas, Fort Worth, and Oklahoma. The Denton County Transportation Authority (DCTA) operates bus and rail services, including the A-train, which connects Denton to the DFW light rail system. Outlook: Denton continues to experience strong population and economic growth. It retains its small-town charm while offering the amenities of a larger urban center, driven by its universities, arts, and evolving infrastructure. Denton’s blend of education, affordability, and cultural vibrancy makes it a desirable place to live for students, professionals, and families alike. Overall, Denton County is a dynamic and growing region that combines the benefits of proximity to the Dallas-Fort Worth metroplex with a diverse and thriving local community TM APPRAISAL ASSOCIATES Section B - Page 15 SITE ANALYSIS- WHOLE PROPERTY & PART(S) TO BE ACQUIRED ANALYSIS The size of the whole property is based on Denton CAD records. This size is assumed to be accurate for purposes of this assignment. The whole property includes the following land area: 78.278 acres +\-. The subject site consists of 78.278 acres (3,409,790 SF +/-) of gross land area and is located on the north side of E. McKinney Street, ~1,800 feet east of Mayhill Drive, and adjacent to the Ashli Oaks Mobile Home Park. The subject whole parcel has a physical address of 5101 E. McKinney Street, Denton, Texas, and is legally described as land in the M. Forrest Survey, Abstract No. 417, Denton County, Texas. The subject has above average road frontage with~ 1,180’ along the north side of N. Side of E. McKinney St & ~590’ along the south side of Mill St. (~per GIS measurement). E. McKinney Street is a high traveled roadway with above average visibility, traffic, and access. According to TXDOT traffic maps the portion of E. McKinney at the subject site sees a daily traffic count of ~10,000 cars. Uses along E. McKinney are primarily commercial or mixed used commercial uses. Mill Street is a secondary interior street with average traffic and visibility. The area is considered a good location for future development, and the frontage is considered to be above average location offering two points of entry and good overall visibility and traffic. The following is a summary of the whole site size, part to be acquired, remainder, location, and other characteristics. Property Type: 78.278 ac (3,409,790 SF +/-) of land per DCAD Address: 5101 E McKinney Street County/State: Denton/Texas Location: North side of E. McKinney Street, ~1800 feet east of Mayhill Drive, and adjacent to the Ashli Mobile Home Park. Site backs to Mill Street on the northern boundary. Legal Description: Land in the M. Forrest Survey, Abstract No. 417, Denton County, Texas Land Area (Acres): Whole – 78.278 ac or 3,409,790 SF +/- Per DCAD Part to Be Abandoned 0.403 ac, or 17,555 SF +\- (10% Fee) – below ground easement Remainder – 78.278 Ac +\-, or 3,409,790 SF +\- Temporary Construction Easements: NA TM APPRAISAL ASSOCIATES Section B - Page 16 Zoning: “PF” – Public Facility Shape: Irregular Topography: Gently rolling concrete drives, parking, and some landscape, grass tree cover Frontage: ~ 1180’ along the north side of N. Side of E. McKinney St & ~590’ along the south side of Mill St. (~per GIS measurement) Soil Conditions: Assumed adequate; rely on geo-technical report Utilities: All city utilities available Flood Plain: None; Zone X, FEMA Map 48121C0380G, Dated 4/18/2011 The micro-locale is rural residential considered to be of average development intensity. The subject location offers above average frontage on a primary roadway (E. McKinney) that is concrete paved with concrete curbs, sidewalks, and drainage. Traffic levels are considered above average. The site is irregular and has a gently rolling topography, to level at street grade, and has concrete drives, parking, landscape, grass with some tree cover. The frontage-to-depth ratio and ingress/egress are considered good for commercial usage. The site is considered to offer adequate utility availability in sufficient quantities for development with all city utilities and services available. Surrounding land uses consist of a few vacant tracts, single family residential on secondary roadways, and mixed-use commercial and institutional uses along E. McKinney and primary roadways. Description of proposed easements, whole, remainder property The subject of this report is identified by the client as: Subject Land & Proposed Utility Easement Areas Whole Property Acres Square Feet 78.278 +\- 3,409,790 +\- Part(s) to Be Abandoned Acres Square Feet Below Ground Sewer Easement (10% Interest) 0.403 +\- 17,555+\- Remainder Property Acres Square Feet 78.278 +\- 3,409,790 +\- Temporary Construction Easements Acres Square Feet NA NA NA TM APPRAISAL ASSOCIATES Section B - Page 17 The parent is ~78.278 acre +\-, or the “whole property”. The remainder property immediately after the abandonment is 78.278 acre +\-. The purpose of the proposed project is to abandon an existing 16 ft. sewer easement. The abandoned part consists of approximately 0.403 acres, representing the area previously encumbered by the underground sewer easement. Because the abandonment involves the extinguishment of easement rights only, the part abandoned is valued as a percentage of the underlying fee simple value, consistent with accepted appraisal practice for subsurface utility easements. Proposed Sewer Abandonment – 0.403 Acre +\_ The 0.403-acre abandonment is ~ 16 ft. wide and ~1,103 ft. in length (see exhibits). The abandonment area only partially encumbers the subject site. It is our understanding that the sewer line will be capped and/or contained in accordance with applicable standards. Accordingly, this appraisal is based on the specific assumption that the abandoned easement will be properly capped in compliance with all regulatory requirements and that no adverse environmental conditions will result from the proposed project. The owner will retain some of the bundle of rights (access, maintenance, pride of ownership). The encumbered land would hold a still hold a market value because the owner will still possess a portion of the bundle of rights. (i.e. access, maintenance, pride of ownership). After discussion with industry peers a discount for this type of abandonment would typically range from 10-90% depending on a number of factors such as location, physical characteristics, surrounding uses, and encumbrances to name a few. In this case we took a conservative approach and reconciled at a 10% discount for the portion of rights retained (i.e. paying taxes, maintenance, pride of ownership). The easement interest is assumed to represent 10% of the fee simple value, reflecting the limited nature of the underground encumbrance and the absence of exclusive surface use. Typical access and utility are assumed to exist along borders. The appraisers have not considered any material impact due to right of way easements being considered typical with similar properties. No sub-surface and/or mineral rights have been valued in this report and none of the comparable sales included any known sub-surface and/or mineral rights. No gas well or pipelines noted per an aerial view of the Texas Railroad online GIS Mapping. See map depicting subject location later in this section. No other adverse easements or encroachments other than those discussed in our analysis were noted at the time of inspection. It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. It is a specific assumption that the subject is not affected by the flood area, other than what is indicated in this report. TM APPRAISAL ASSOCIATES Section B - Page 18 The proposed 16 ft. easement abandonment is depicted in the exhibits contained in this section and provided for a visual representation. Based on the observed site conditions, market interviews with industry peers, and overall impact to utility and marketability, no damage to the remainder property is expected to result from the project. Site Characteristic Summary Item Description Land Area, Permanent, and Temporary Easements Whole: 78.278 Ac Part to Abandoned 0.403 AC Remainder: 78.278 AC Source of Site Area: Denton CAD – Whole Survey- Part Abandoned Shape: Irregular Access/Frontage: North side of E. Mckinney & South side of Mill St. Topography: Gently rolling to sloping at street grade, concrete drives, and parking, landscape, grass, some tree cover Drainage: Drainage appears adequate from a visual inspection from the street on date of inspection Environmental Hazards: Other Easements: None reported or observed during site inspection Typical access and utility easements assumed; existing above ground gas utility easement Flood Map: Date: Description: 48121C0380G Dated 4/18/2011 Zone X; outside the flood Zoning “PF” – Public Facility Utilities: Electric Water Sewer Gas Telephone & Internet City City City Atmos Multiple providers TM APPRAISAL ASSOCIATES Section B - Page 19 SUBJECT AERIAL VIEW (*APPROXIMATE) TM APPRAISAL ASSOCIATES Section B - Page 20 SUBJECT LOCATION *APPROXIMATE TM APPRAISAL ASSOCIATES Section B - Page 21 16FT. SEWER EASEMENT LOCATION * APPROXIMATE TM APPRAISAL ASSOCIATES Section B - Page 22 16FT. SEWER EASEMENT LOCATION * APPROXIMATE TM APPRAISAL ASSOCIATES Section B - Page 23 COLEMAN & ASSOC. LEGAL OF 16 SF. SEWER TM APPRAISAL ASSOCIATES Section B - Page 24 COLEMAN & ASSOC. SURVEY OF 16 FT. SEWER TM APPRAISAL ASSOCIATES Section B - Page 25 Denton CAD is the source of the land size – Whole. The survey provided is the source of the part to be abandoned. It is a specific assumption of this report that the land size(s) reported for the subject is sufficiently correct as to not adversely affect the value opinion. The subject site appears to have typical utility and right-of-way easements along the site borders at the road. Surrounding land uses consist of a few vacant tracts, single family residential on secondary roadways, and mixed-use commercial and institutional uses along primary roadways. Denton CAD indicates the total site as 78.278 acres +\- Account No. 959120 – 78.278 Ac +\-: TM APPRAISAL ASSOCIATES Section B - Page 26 TXDOT GIS MAP TM APPRAISAL ASSOCIATES Section B - Page 27 The subject site lies outside the FEMA Flood Hazard area, in Zone X, outside the 100-year flood area. It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. The applicable map number is FEMA Map 48121C0380G, 4/18/2011. The subject flood map is presented below. SUBJECT FLOOD MAP *LINES ARE APPROXIMATE TM APPRAISAL ASSOCIATES Section B - Page 28 IMPROVEMENTS ANALYSIS The subject is improved with the Ryan High School drives, parking, associated school facilities, signage, and landscape. The improvements are set back a significant distance from the roadway. The proposed project does not appear to affect the improvements. No improvements are included in our analysis. The valuation of the unaffected improvements is not necessary in some cases for a credible assignment result. In this case, the subject is land. No improvements are expected to be directly impacted. As such, the valuation is limited to the land valuation. TM APPRAISAL ASSOCIATES Section B - Page 29 DAMAGE CONSIDERATION It should be noted that undesirable land uses tend to affect the 3 human senses – sight, hearing, and smell. For example/explanation purposes, a correctional facility, surrounded by a high fence topped with razor wire, primarily affects sight. An airport generally affects the sense of hearing, and a sanitary landfill most likely affects the sense of smell. Some land uses affect more than one human sense, as in the case of a petrochemical refinery that may be unpleasant to look at, create significant noise levels, and emit order. In addition to their effects on the human senses, undesirable land uses may also be perceived to present a threat to human health. As in the case of an industrial facility emitting pollutants into the air, ground, or water, or high-power electrical lines emitting electrical current into the air. Additionally, a potential threat of safety (as in a prison) may be perceived as undesirable. Further, undesirable land uses may have a relatively short tenure, as in the case of contaminated property in the final stages of cleanup, while other undesirable land uses may be relatively long lived as in the case of an airport. Thus, the tenure of the undesirable land use may be an indication of whether the price is temporary or permanent. In the subject’s case, no such land or surrounding characteristics were noted. No such characteristic will result as of the proposed abandonment of the utility line. Utility lines such as the one that is proposed to be abandoned is considered typical It is our understanding that the sewer line will be capped and/or contained in accordance with applicable standards. Accordingly, this appraisal is based on the specific assumption that the abandoned easement will be properly capped in compliance with all regulatory requirements and that no adverse environmental conditions will result from the proposed project. It is our specific assumption after the abandonment the owner will have access to build across with no limitations. There is no visual above ground equipment or other utility items noted in the documentation provided by our client. There is no expected permanent impact to subject improvements or site improvements. As a result, no damage is expected because of the proposed utility easement. TM APPRAISAL ASSOCIATES Section B - Page 30 ZONING ANALYSIS Municipalities typically regulate land use within their municipal jurisdiction by the implementation and enforcement of zoning ordinances. Zoning ordinances purportedly screen and control urban development, promote consistency, compatibility, and contribution to the community, and define the quality and character of the neighborhood area. The subject site is situated within the City of Denton municipality. According to the online zoning GIS map the subject is zoned “PF” – Public Facility. The subject improvement “Ryan High”, used for institutional use appears to conform to the current zoning. Primary surrounding land use in the immediate area consists of a few vacant tracts, single family residential on secondary roadways, and mixed-use commercial and institutional uses along primary roadways. It is a specific assumption of this report that the intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance or subject to any ordinances that may result in annexation in the future. A snapshot of City of Zoning Map & Subject Location is depicted in the exhibit below. ZONING MAP TM APPRAISAL ASSOCIATES Section B - Page 31 TAX AND ASSESSMENT ANALYSIS The subject property is within the tax jurisdictions of Denton County, Denton ISD, and the City of Denton. According to Denton CAD, the subject is assessed under 959120 We utilized the 2025 tax rates and the assessed market value to estimate the current tax burden. The site has a total assessed value of $3,409,790 (land). Utilizing the market value the estimated tax burden is ~$67,768/annually without exemptions. Currently, the subject does have an EX-XV exemption listed. Utilizing the EX-XV exemption the tax liability is $0. The subject enjoys an EX-XV “Other Exemption” – Including public property, religious organizations, charitable organizations, and other property not reported elsewhere. Due to the subject being owned by Denton ISD no taxes are currently assessed. The above analysis is provided to demonstrate a tax assessment and analysis should the EX-XV exemption be removed or lost. TM APPRAISAL ASSOCIATES Section B - Page 32 HIGHEST AND BEST USE – WHOLE AND REMAINDER PARCEL The concept of Highest and Best Use can be defined as being: “The reasonably probable use of property that results in the highest value.” “To be reasonably probable, traditionally a use must meet certain conditions:  The use must be physically possible (or it is reasonably probable to render it so).  The use must be legally permissible (or it is reasonably probable to render it so).  The use must be financially feasible. Uses that meet the three criteria of reasonably probable uses are tested for economic productivity, and the reasonably probable use with the highest value is the highest and best use.” 1 Legally Permissible The subject is located in Denton County, in the City of Denton municipality. According to the online zoning GIS map the subject is zoned “PF” – Public Facility. The subject improvement “Ryan High School”, used for institutional use appears to conform to the current zoning. Physically Possible The subject property contains 78.278 ac, is irregular in shape, and is gently rolling to street grade topography, with concrete drives, parking, landscape, grass and some tree cover. The site has access to all utilities. The subject improvements are set back from the roadway. Given these factors, the subject property has a variety of utilities and is suited for a variety of commercial development. Continued institutional use until further development is warranted is considered physically possible. Financially Feasible Based on our analysis of the market, there is currently adequate demand for a variety of commercial or mixed-use development as demand warrants. Therefore, continued use as institutional development on acreage until further mixed-use development is warranted on excess land. Maximally Productive At this time there does not appear to be any reasonably probable use of the site that would generate a higher residual land value than is currently used. Accordingly, it is our opinion that continued institutional use is the maximally productive use of the subject property. Due to the size, shape, and surrounding uses the highest and best use of the subject site “as is” is continued use as institutional development on acreage until further mixed-use development is warranted on excess land. 1The Appraisal of Real Estate, Fifteenth Edition, Appraisal Institute, 2020, Pages 305-315 TM APPRAISAL ASSOCIATES Section C - Page 1 SECTION C VALUATION ANALYSIS TM APPRAISAL & ASSOCIATES Section D - Page 1 APPROACHES TO VALUE In traditional valuation theory, the three approaches to estimating the value of an asset are the cost approach, sales comparison approach, and income capitalization approach. Each approach assumes valuation of the property at the highest and best use. From the indications of these analyses, an opinion of value is reached based upon expert judgment within the outline of the appraisal process. Based on the subject’s specific characteristics and the interest appraised, this appraisal developed the Land Sales Comparison Approach. The values presented represent the value of the Whole Property, Part Abandoned and Remainder After, in order to estimate Just Compensation associated with the proposed project. This appraisal does not develop the Cost Approach, Income Approach, or Improved Sales Comparison Approach as the subject reflects vacant land, and these approaches are not warranted. A prospective purchaser would likely only consider the Sales Comparison Approach in making a purchase decision. TM APPRAISAL & ASSOCIATES Section D - Page 2 SALES COMPARISON APPROACH This approach to value, also termed the Market Approach, requires a comparison of similar competitive properties that have recently sold to the subject property. In this market area, the most typically used unit of comparison is the Sale Price per Square Foot (SP/SF). The unit of comparison is obtained by dividing the property’s sale price by the applicable unit. Since this unit of comparison involves a comparison of physical attributes, adjustments must be made for any differences that affect sale prices. These differences include financing conditions, market conditions, location, size, and various utility attributes. This is a reliable unit of comparison, assuming a high degree of comparability. LAND VALUATION – WHOLE 78.278 Ac +\- (3,409,790 SF +/-) Recent sales of relatively similar properties within the market area are analyzed as a basis for valuation of the subject property. Those sales, which are considered to be the most reliable and comparable to the subject, are presented on the following pages. TM APPRAISAL & ASSOCIATES Section D - Page 3 COMPARABLE SALES ADJUSTMENT GRID – WHOLE 78.278 Ac +\- (3,409,790 SF +/-) TM APPRAISAL & ASSOCIATES Section D - Page 4 COMPARABLE SALES LOCATION MAP – WHOLE 78.278 Ac +\- (3,409,790 SF +/-) TM APPRAISAL & ASSOCIATES Section D - Page 5 ANALYSIS OF COMPARABLE SALES – WHOLE The unit of comparison developed in this approach from the comparable vacant land sales to estimate value is considered to be one primarily utilized by market participants for this property type. The adjustments warranted for the comparable vacant land sales are discussed below. Property Rights Conveyed: Each of the comparable vacant land sales involved the sale of a fee simple or leased fee interest. When considering the subject property rights appraised, no adjustment for property rights conveyed of the comparable sales is warranted. Financing Terms: All of the vacant land sales are reported to have market terms or cash to seller transactions; therefore, adjustment consideration is not warranted. Conditions of Sale: All of the vacant land sales utilized in this analysis are reported to be arms-length transactions. Therefore, none of the sales warrant adjustment consideration for conditions of sale. Market Conditions: The comparable sales are considered to have transacted in current market conditions and do not warrant adjustment consideration. Location: The site is physically located in the City of Denton. The physical address of the whole is 5101 E. McKinney St, Denton, Texas. The subject has above average road frontage with ~1,180’ along the north side of E. McKinney, and ~590 ft. along the south side of Mill St. E. McKinney St is a highly travelled roadway with above average visibility, traffic and access. According to TXDOT traffic maps the portion at the subject site sees a daily traffic count of ~10,000 cars. Mill Street is a secondary interior street with average traffic and visibility. The area is considered a good location for future development, and the frontage is considered to be an above average location offering two points of entry and good overall visibility and traffic. The immediate area is experiencing ongoing development, primarily a variety of high-density single- family development, commercial, mixed use, office, with some vacant land scattered throughout the area. The overall area is considered in the growth phase of the real estate cycle and is of above average development intensity. Due to the larger site of the subject (78.278 ac) it was necessary to travel outside the immediate area of Denton to find comparable sales of similar size, exposure, and surrounding development. Sale 2 is considered the most similar in location and development, traffic, and ongoing development. No adjustment is applied. Sale 1 is considered modestly inferior; a 10% upward adjustment is applied. Sales 3-4 are considered moderately to significantly superior; a 10-15% downward adjustment is applied. Size: The subject property consists of ~78.278 acres of land area. Smaller sites tend to sell for higher prices per unit than similar larger sites due to economies of scale. The size range of the sales is approximately 17-75acres. No more similar, more recent, or proximate comparable sales were located in the normal course of business. Sales 1 and 4 are adjusted downward 10-20% for the modestly to moderately smaller sizes. The remaining sales are the most similar in size requiring no adjustment. TM APPRAISAL & ASSOCIATES Section D - Page 6 Zoning: The subject property and all the comparable sales have similar zoning or highest and best potential use. No adjustment consideration is warranted. Utilities: The subject site is considered to offer adequate utility availability in sufficient quantities for development with all city utilities and services. The sales are considered similar in utility availability. No adjustments are warranted. Flood Hazard: Based on the available FEMA maps, the subject does not exhibit flood prone areas. The sales are all considered similar with no or minimal flood. No adjustment is applied. Improvements: The sales utilized are either vacant or may have improvements. Due to the scope and interest of this appraisal the improvements are not considered. The improvements are set back a significant distance from the roadway and are not anticipated to be impacted by the proposed utility easement. Further, the high and best use is considered for mixed use development of excess land as demand is warranted, making the underlying land value the primary driving factor for area developers and potential buyers. No adjustment is considered necessary. Easements: The subject and all sales have typical access and utility easements. No adjustment is necessary. Shape/Topography: The subject property is considered to have rolling topography with native grass and trees and is irregular in shape. All sales are considered to have similar overall utility and overall topography with no notable differences that could be measured. No adjustments are necessary. TM APPRAISAL & ASSOCIATES Section D - Page 7 VALUE CONCLUSION BY UNIT – WHOLE 78.278 Ac +\- (3,409,790 SF +/-) The Sales Price per SF Method (SP/SF Method) is utilized to develop an opinion of the subject property value in this approach. The adjusted range of comparable sales is $9.23-$13.44 per SF, with an average price per square foot of $11.13 and median price per square foot of $10.92. A sales price per square foot of $11.00/SF is considered appropriate for the subject after adjustments are taken into consideration and considering the subject’s position in an area of ongoing development. A sales price per acre of $11.00/SF is well within the adjusted range and is supported by our analysis. The comparable sales are felt to best represent the subject property site value after adjustment consideration. The following paragraphs summarize our conclusion. The subject property consists of a single, contiguous tract containing 78.278 acres in fee simple ownership. The proposed action involves the abandonment of an existing underground sewer easement affecting approximately 0.403 acres (17,555 SF +/-) of the property. Summary of Taking  Type of Taking: Easement abandonment (extinguishment of underground sewer easement rights)  Area of Easement Abandoned: 0.403 acres (17,555 SF +/-)  Fee Simple Land Value: $11.00 per square foot  Easement Valuation Assumption: 10% of fee simple value  Remainder Impacts: None TM APPRAISAL & ASSOCIATES Section D - Page 8 Before and After Valuation Summary: Compensation Conclusion The before and after values of the whole property are equal, as the abandonment does not reduce the site area, alter the configuration, or adversely affect the remainder. The taking is limited to the removal of underground sewer easement rights only. No damages to the remainder and no special benefits are identified. Therefore, just compensation is limited to the value of the easement interest abandoned and is concluded as follows: Just Compensation: $19,310 TM APPRAISAL & ASSOCIATES Section D - Page 9 LAND VALUATION – REMAINDER 78.278 Ac +\- (3,409,790 SF +/-) The purpose of the proposed project is to abandon an existing 16-foot sewer easement. The abandoned part consists of approximately 0.403 acres (17,555 SF +/-), representing the area previously encumbered by the underground sewer easement. The abandonment involves only the extinguishment of easement rights; therefore, the whole property and remainder site size remain unchanged. Accordingly, the part abandoned is valued as a percentage of the underlying fee simple value, consistent with accepted appraisal practice for subsurface utility easements. The before and after values of the whole property are equal, as the abandonment does not reduce the site area, alter the configuration, or adversely affect the remainder. The taking is limited to the removal of underground sewer easement rights only. TM APPRAISAL & ASSOCIATES Section D - Page 10 SECTION D FINAL RECONCILATION, CONCLUSIONS, EXTRAORDINARY ASSUMPTIONS, HYPOTHETICAL CONDITIONS, MARKETING TIME TM APPRAISAL & ASSOCIATES Section D - Page 11 RECONCILATION AND FINAL OPINION OF VALUE The Sales Comparison Approach is considered a generally reliable method because the units of comparison are market based. The units of comparison are direct, which renders the comparison highly indicative of market behavior and the primary approach utilized by market participants. Overall, this approach is applicable and utilized in this analysis since the property type is typically traded in the market area. This appraisal developed the Land Sales Comparison Approach. The Cost Approach utilizes replacement cost estimated by using actual builder costs for comparable facilities and/or Marshall and Swift Valuation Services. Indirect costs associated with property are also determined, if applicable. The land value is estimated by analyzing current land sales within the area. The estimated land value is added to indicate the value estimate by this approach. The Cost Approach is not applicable due to the specific characteristics and interest appraised; no improvements were considered or were affected by the proposed taking. The Income Approach is generally considered to be an appropriate valuation method when the property has rental income-producing potential. The potential gross income, stabilized vacancy rate and operating expenses are estimated from market data. The income capitalization approach is not applicable as the subject is appraised as vacant land and is not typically bought and sold for income producing abilities. Based on the subject’s specific characteristics and the interest appraised, this appraisal developed the Land Sales Comparison Approach. The values presented represent the value of the Whole Property, Part Acquired, Remainder Before and After, and Damages/Enhancements, (if any), to estimate Just Compensation associated with the proposed project. This appraisal does not develop the Cost Approach, Income Approach, or Improved Sales Comparison Approach as the subject reflects vacant land and these approaches are not warranted. A prospective purchaser would likely only consider the Land Sales Comparison Approach in making a purchase decision. TM APPRAISAL & ASSOCIATES Section D - Page 12 Based on the analysis and conclusions in this report, and subject to the definitions, assumptions, and limiting conditions expressed herein, it is our opinion that the compensation herein described property as of January 7th, 2026, is calculated as follows: We appreciate the opportunity to provide this appraisal for you. Should you have any questions regarding the appraisal, contact the firm at (940) 243-2387. Respectfully submitted, TM APPRAISAL & ASSOCIATES Section D - Page 13 MARKETING PERIOD/EXPOSURE TIME Per USPAP the exposure period for the subject property must be analyzed. Five factors must be considered in the exposure period, the ability of those marketing the property, the type of property, the listing price, the size and location of the market and the comparability of available market data. An adept marketer will tend to move the property in a shorter period than will an average one and an inept marketer may require twice as much. Exposure period must be assessed in terms of whether the property was originally listed reasonably close to its true value as perceived by the market. Any property listed significantly above its true value will tend to attract no interested parties due to the perception that it is a waste of time pursuing its purchase. Further, a property listed noticeably below the market's perception of the value will tend to sell in a shorter period than may otherwise be required and therefore distort the concept of "reasonable marketing period". A study by M/PF, a real estate market research firm in Dallas, polled real estate brokers as to the "reasonable marketing period" for various types of real estate. The response was 9 - 12 months. Implicit in this response is that the property is listed reasonably close to the market's perception of its true value. Historically, purchasers of any property which is considered by the market to have value, are available regardless of product oversupply, availability of financing or lack thereof. The definition of market value specifically requires that there exist a potential buyer and potential seller, each acting prudently and knowledgeably and implies a consummation of a sale. Therefore, an additional factor to be considered in analyzing the marketing period is the size and location of the market. For very large industrial properties or for very specialized properties such as petrochemical refining, large granaries, etc., the market may be relatively small, specialized and national or international rather than local or regional. More typical real estate such as apartments, shopping centers, office buildings and vacant land has a market that is local, regional national or international implying a shorter marketing period and exposure time. The date of the comparable sales must be considered. If no data is available to indicate current expectations of current market conditions and is only available for market conditions unlike current conditions, the value indicated by the data may not necessarily reflect current expectations and the analysis must include these circumstances. Properties similar to the subject in the market area are marketable to a wide group of potential purchasers in the local region, state, and nation. Exposure time is considered to be twelve months. Without exception, all real estate offices contacted expressed, if offered at or near market value and had the property been correctly exposed to the market for the past twelve months, the property should sell for a reasonable price. After development of the preceding pages of market data, it is our opinion that had the property been offered at or slightly above the market value conclusion an exposure period from 9 - 12 months is considered necessary for the property to potentially consummate a sale closer to the appraised market value. An exposure period of 9-12 is considered applicable for the subject property. TM APPRAISAL & ASSOCIATES Section D - Page 14 ASSUMPTIONS AND LIMITING CONDITIONS 1. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report. 2. The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report. 3. Responsible ownership and competent property management are assumed unless otherwise stated in this report. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been reported, stated, defined, and/or considered in this appraisal report. 9. It is assumed that all required license, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based. 10. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report. 11. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report. TM APPRAISAL & ASSOCIATES Section D - Page 15 12. The firm is not qualified to detect hazardous waste and/or toxic materials. Any comment by the firm that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The descriptions and comments are the result of the routine observations made during the appraisal process. 13. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with disabilities act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability, or utility. 14. Any proposed improvements are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications. 15. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 16. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the firm, and in any event, only with proper written qualification and only in its entirety. TM APPRAISAL & ASSOCIATES Section D - Page 16 Specific/extraordinary assumptions & hypothetical conditions utilized in the value opinion: • It is a specific assumption of this report that the subject has no environmental or structural conditions which could adversely affect its marketability or market value. • It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. • It is a specific assumption of this report that the land size(s) reported for the subject is sufficiently correct as to not adversely affect the value opinion. • It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. • It is a specific assumption of this report that the intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance. • It is a specific assumption of this report the project will be completed as indicated on the project plans provided by the client in a timely and workmanlike manner. • It is a specific assumption of this report that the land size, along with the portion of land that is proposed to be abandoned as a result of the project, are accurate. The whole size is based on public records. The parts abandoned are based on the survey provided by our client. • The appraisal is based on the specific assumption that the abandoned easement will be properly capped in compliance with all regulatory requirements and that no adverse environmental conditions will result from the proposed project. • It is a specific assumption of this report that the that no site or other improvements will be impacted because of the proposed project. And/or any site improvements impacted will be replaced with similar or better-quality improvements upon completion of the project. • It is our specific assumption after the abandonment the owner will have access to build across with no limitations. • The appraisal of a remainder property assumes that the proposed public or private improvements were complete as of the effective date of valuation, when in fact it is known that they are not. • In addition, in the before condition, the value of the property is estimated as if the market has no knowledge of the proposed public project. This condition is assumed for the purpose of analysis, when in fact market participants may have knowledge of the proposed public project as of the effective date of the appraisal. Hypothetical Conditions:  The appraisal of a remainder property assumes that the proposed public or private improvements were complete as of the effective date of valuation, when in fact it is known that they are not.  In addition, in the before condition, the value of the property is estimated as if the market has no knowledge of the proposed public project. This condition is assumed for the purpose of analysis, when in fact market participants may have knowledge of the proposed public project as of the effective date of the appraisal. Reliance upon these extraordinary assumptions and hypothetical conditions may have affected our assignment results. TM APPRAISAL & ASSOCIATES Section D - Page 17 CERTIFICATION OF THE APPRAISERS I certify that, to the best of my 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 personal, unbiased professional analyses, opinions, and con-clusions. 3. I have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. 4. The compensation is not contingent upon the 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. 5. The appraisal is not based on a requested minimum valuation, a specific valuation, or the ap-proval of a loan. 6. The analyses, opinions, and conclusions are developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. 7. I, Jana Newburn, have made a limited personal inspection of the property that is the subject site of this report. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 9. As of the date of this report, I, Jana Newburn, am a State Certified General Real Estate Ap- praiser. 10. As of the date of this report, I, Tracy Runnels, am a State Certified General Real Estate Ap- praiser. 11. The appraisers have not appraised or provided other valuation services for the subject property in the past three years. 12. The value estimate is not valid unless this certification is included in the appraisal. Respectfully submitted, TM APPRAISAL & ASSOCIATES Section E – Page 1 SECTION E ADDENDA TM APPRAISAL & ASSOCIATES Section E – Page 2 APPRAISER QUALIFICATIONS TM APPRAISAL & ASSOCIATES Section E – Page 3 APPRAISER QUALIFICATIONS TM APPRAISAL & ASSOCIATES Section E – Page 4 APPRAISER LICENSES TM APPRAISAL & ASSOCIATES Section E – Page 5 Appraisal Agreement Page 1 TM APPRAISAL & ASSOCIATES Section E – Page 6 Appraisal Agreement Page 2