HomeMy WebLinkAboutEAR25-0012 - 2nd Submittal 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-26-01-7982
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 and information provided by Allison Engineering.
The parts abandoned are based on the plat provided by our client & documentation provided by Allison Engineering.
• The appraisal is based on the specific assumption that no underground improvements or infrastructure exists, and the easement
area was only reserved by the city for potential future use.
• 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: C/o Clint Brock
Carmen Custom Homes
SUBJECT PROPERTY: 16 ft. Utility Easement Abandonment located at
NEC US 377 & Fairway Drive
Denton, Texas 76225
DATE OF REPORT: February 10th, 2026
EFFECTIVE DATE: February 6th, 2026
INTENDED USE: Determine Market Value of Utility Easement Abandonment
INTENDED USER: Carmen Custom Homes
C/o Clint Brock
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-26-01-7982
Carmen Custom Homes
C/o Clint Brock
Clint@carmenhomes.com
Dear Mr. Brock:
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 February 6th, 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 6.483 ac +\- or 282,399 square feet +\-, of land. According to the documentation provided, there is a ~ 16
ft. utility easement abandonment. The proposed utility easement abandonment is described for the purpose of this report as
follows:
A below ground 16ft. Utility Easement consisting of ~ 0.377 acres +\-, or 16,422 SF +/- in the H.H. Haygood Survey,
Abstract No. 517, City of Denton, Texas and physically located at NEC of US 377 & Fairway Drive, Denton, Texas.
Subject Characteristics and Remainder Impact are detailed as follows.
Denton CAD, deed records, and plat maps are utilized to determine the whole site and indicate that the subject is ~ 6.483
acres in size. There are no existing above ground improvements that are directly impacted by the proposed project. The
subject utility easement is located underground along the northern portion of the property boundary, and generally follows
the property line boundary, extending in an east-west orientation between the US 377 and Clubview Drive (See Exhibits).
It is our understanding that there are no existing underground improvements, and no underground improvements were
installed. The area was reserved by the city for future use of a utility easement which is in the process of being abandoned.
The purpose of the proposed project is to abandon the existing 16 ft. utility easement.
1. 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 a water
feature improvement located at the entry as well as native grass and soil cover. The subject site has been re-platted into
6 lots, 4 of which are improved with a single-family improvement. The site improvements are not impacted by the
proposed utility abandonment project. As such, the whole property's highest and best use of the remainder property will
be similar to the current use which is single family residential use.
3. According to our client, the transfer of title has not yet occurred; however, the intended user of this report 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 northeast corner of US 377 & Fairway Drive. The whole parcel does not have a
physical address. 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 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 and information provided by Allison Engineering.
The parts abandoned are based on the plat provided by our client & documentation provided by Allison Engineering.
• The appraisal is based on the specific assumption that no underground improvements or infrastructure exists, and the easement
area was only reserved by the city for potential future use.
• 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.
*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
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 and information provided by Allison Engineering. The parts
abandoned are based on the plat provided by our client & documentation provided by
Allison Engineering.
• The appraisal is based on the specific assumption that no underground improvements or
infrastructure exists, and the easement area was only reserved by the city for potential future
use.
• 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.
TM APPRAISAL ASSOCIATES Introduction - Page 2
• 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
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 February 6th, 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 Clint Brock/Carmen Custom Homes and
no other. This appraisal report is prepared for use only by Clint Brock/Carmen Custom Homes.
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 considered personal property during the most recent
inspection.
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
Improved Sales Comparison Approach
Not Applicable
Income Capitalization Approach Not Applicable
Valuation Approaches Remainder After Applicability
* Remainder Parcel is unchanged – See Site Analysis
Land Sales Comparison Approach
Not Applicable
Cost Approach
Not Applicable
Improved Sales Comparison Approach
Not Applicable
Income Capitalization Approach Not Applicable
INSPECTION
On or about January 20th, 2026, our office was contacted, and our services were engaged thereafter
by a Clint Brock with Carmen Custom Homes. We were engaged to complete an appraisal on the
following: A proposed abandonment of a 16 ft. utility easement. The proposed easement is
described for the purpose of this report as ~0.377 ac or 16,422 SF +\-, utility easement, legally
described as 0.377 ac +-\ in the H.H. Haygood Survey, Abstract No. 517, City of Denton, Texas
and physically located at NEC of US 377 & Fairway Drive, Denton, Texas.
No contact information was provided to formally inspect the property. However, due to the nature
of the engagement 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 February 6th, 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 northeast corner of US 377 & Fairway Drive, in the City of
Denton. The subject does not have a physical address but is legally described as land in the H.H.
Haygood Survey, Abstract No. 517, City of Denton, Texas and also partially described as Lots 1-6
Block A, Country Club Village, Phase 3A, City of Denton, Denton County, Texas.
The Whole parcel consists of ~6.483 acres or 282,399 SF +\-. The remainder property will have
similar access and exposure.
The subject of this report is identified by the client as:
A below ground 16ft. utility easement consisting of ~ 0.377 acres +\- or 16,422 SF +\-, in H.H.
Haygood Survey, Abstract No. 517, City of Denton, Texas and physically located along the northern
boundary of the subject whole property. It is our understanding that there are no existing
underground improvements. The area was reserved by the city for future use as a utility easement
which is in the process of being abandoned.
The parent is ~6.483 acre +\- parent tract, or the “whole property”. The remainder property
immediately after the taking is 6.483 +\-.
The purpose of the proposed project is to abandon the existing 16 ft. utility easement.
The proposed utility easement is depicted and described in the exhibits provided by the client on the
following page.
TM APPRAISAL ASSOCIATES Introduction - Page 13
Survey of 16 Ft. Utility Easement
TM APPRAISAL ASSOCIATES Introduction - Page 14
Legal Description of 16 Ft. Utility Easement
TM APPRAISAL ASSOCIATES Introduction - Page 15
Aerial & Approximate Location 16 Ft. Utility Easement (Client Provided)
TM APPRAISAL ASSOCIATES Introduction - Page 16
The subject land area & utility easement (s) is summarized in the table below.
Subject Land & Proposed Utility Easement Abandonment Areas
Whole Property Acres Square Feet
6.483 +\- 282,399 +\-
Part(s) to Be Abandoned Acres Square Feet
Below Ground Utility Easement (1%
Interest)
0.377 +\- 16,422+\-
Remainder Property Acres Square Feet
6.483 +\- 282,399 +\-
Temporary Construction Easements Acres Square Feet
NA NA NA
TM APPRAISAL ASSOCIATES Section A - Page 1
SECTION A
SUBJECT PROPERTY OVERVIEW
TM APPRAISAL ASSOCIATES Section A - Page 2
EXECUTIVE SUMMARY TMA File A-26-01-7982
Property Type: 6.483 ac (282,399 SF +/-) of land per plat & Allison Engineering Group
Address: TBD – No Physical Address
County/State: Denton/Texas
Location: NEC of US 377 & Fairway Drive, Denton, Texas
Legal Description: Land in the H. H. Haygood Survey,
Abstract No. 517, City of Denton, Denton County, Texas
& also partially described as Lots 1-6 Block A, Country
Club Village, Phase 3A, City of Denton, Denton County,
Tx
Date of Report: February10th, 2026
Effective Date of Value: February 6th, 2026
Highest and Best Use: Hold for single family development as warranted by demand 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 utility easement Appraisers: Tracy Runnels, Principal Jana Newburn, Associate Appraiser
SITE DATA
Land Area (Acres):
Whole – 6.483 ac or 282,399 SF +/-
Part to Be Abandoned 0.377 ac, or 16,422 SF +\- (1%) – below ground utility easement Remainder – 6.483 Ac +\-, or 282,399 SF +\- Temporary Construction Easements: NA
Zoning: “PD-R2 & “R2” – Planned Development Residential 2 & Residential 2 Shape: Irregular Topography/Site: Gently sloping at street grade, concrete drives, sidewalks, parking, typical residential landscape, grass/soil cover and water feature
Frontage: ~ 245’ along the east side of US 377 & ~1,200’ along the south side of Fairview Drive (~per GIS measurement) Soil Conditions: Assumed adequate; rely on geo-technical report Utilities: All city utilities available Flood Plain: None; Zone X, FEMA Map 48121C0370G, Dated 4/18/2011
TM APPRAISAL ASSOCIATES Section A - 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 A - Page 4
PHOTOGRAPHS OF SUBJECT PROPERTY
TM APPRAISAL ASSOCIATES Section A - Page 5
PHOTOGRAPHS OF SUBJECT PROPERTY
TM APPRAISAL ASSOCIATES Section A - Page 6
~Location of 16 Ft. Underground Utility Easement
TM APPRAISAL ASSOCIATES Section A - 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 currently assessed under
account numbers 990750, 990751, 990752, 990753, 990754, 990755, and part of 64737. The
subject of this report is a total of ~6.4883 acres +\- and related improvements and is part of a larger
parent tract. The subject parent tract was reported to be ~148 acres, was purchased 1998-1999, and
was re-platted into a single-family development in the early 2000s. The development consists
currently of 3 phases and ~103 lots, with additional phase potentially planned in the future.
Account 990750 – Lot 1 - 1.01 ac +\- + Improvements: Currently entitled to Mark & Mistee
Provenson, purchased from Carmen Investments Inc on or about 2/27/2025, recorded in deed 2025-
20138. Sold on or about 2/27/2025 per MLS 20847152 with a SFR and pool.
Account 990751 – Lot 2 - 0.73 ac +\- + Improvements: Currently entitled to Carmen Investments
Inc, purchased as part of the parent tract and re-platted.
Account 990752 – Lot 3 - 0.75 ac +\- + Improvements: Currently entitled to Carmen Investments
Inc. purchased as part of the parent tract and re-platted.
Account 990753 – Lot 4 - 0.78 acres +\-: Currently Entitled to Carmen Investments Inc, purchased
as part of the parent tract and re-platted.
Account 990754 – Lot 5 - 0.76 acres +\-: Currently Entitled to Carmen Investments Inc, purchased
as part of the parent tract and re-platted.
Account 990755 – Lot 6 - 0.67 acres +\-: Currently entitled Carmen Investments Inc , purchased
as part of the parent tract and re-platted.
Account 64737 – 29.1362 acres +/-: Currently, entitled to Carmen Investments Inc, the subject is
a portion of this tract (1.783 acres – NEC US 377 & Fairview Drive). This tract was purchased as
part of the larger parent tract.
No listing or prior sales of the underlying land were found on NTREIS, COSTAR, or public record
search during the previous 3-year reporting period. To the best of our knowledge no current or prior
listings are known and/or were found during our research.
TM APPRAISAL ASSOCIATES Section A - Page 8
The subject property whole parcel (6.483 acres +\-) is physically located on the northeast corner of
US 377 & Fairview Drive.
The subject land area & utility easement (s) is summarized in the table below.
Subject Land & Proposed Utility Easement Abandonment Areas
Whole Property Acres Square Feet
6.483 +\- 282,399 +\-
Part(s) to Be Abandoned Acres Square Feet
Below Ground Utility Easement (1%
Interest)
0.377 +\- 16,422+\-
Remainder Property Acres Square Feet
6.483 +\- 282,399 +\-
Temporary Construction Easements Acres Square Feet
NA NA NA
TM APPRAISAL ASSOCIATES Section B - Page 1
SECTION B
SUBJECT PROPERTY ANALYSIS
TM APPRAISAL ASSOCIATES Section B - Page 2
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 3
North Texas Council of Governments Population Summarized in the below graphics
TM APPRAISAL ASSOCIATES Section B - Page 4
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 5
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 6
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 7
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 8
SITE ANALYSIS- WHOLE PROPERTY & PART(S) TO BE ACQUIRED ANALYSIS
The size of the whole property is based on the owner-provided plat as well as information provided
by Allison Engineering Group. This size is assumed to be accurate for purposes of this assignment.
The whole property includes the following land area: 6.483 acres +\-.
The subject site consists of 6.483 acres (282,399 SF +/-) of gross land area and is located on the
northeast corner of US 377 & Fairway Drive, City of Denton. The subject whole parcel does not
have a physical address; however, it is legally described as Land in the H. H. Haygood Survey,
Abstract No. 517, City of Denton, Denton County, Texas and also partially described as Lots 1-6
Block A, Country Club Village, Phase 3A, City of Denton, Denton County, Tx
The subject has good road frontage with ~ 245’ along the east side of U.S. 377 & ~1200’ along the
north side of Fairway Drive (~per GIS measurement). U.S. 377 is a highly traveled roadway with
above average visibility, traffic, and access. Uses along E. U.S. 377 are primarily commercial or mixed
used commercial uses. Fairway Drive 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
good location with good overall visibility and access.
The following is a summary of the whole site size, part to be abandoned, remainder, location, and
other site characteristics.
Property Type: 6.483 ac (282,399 SF +/-) of land per plat & Allison Engineering Group
Address: TBD – No Physical Address
County/State: Denton/Texas
Location: NEC of US 377 & Fairway Drive, Denton, Texas
Legal Description: Land in the H. H. Haygood Survey, Abstract No. 517, City of Denton, Denton
County, Texas & also partially described as Lots 1-6 Block A, Country Club Village, Phase 3A,
City of Denton, Denton County, Tx
Land Area (Acres):
Whole – 6.483 ac or 282,399 SF +/-
Part to Be Abandoned 0.377 ac, or 16,422 SF +\- (1%) – below ground easement
Remainder – 6.483 Ac +\-, or 282,399 SF +\-
Temporary Construction Easements: NA
TM APPRAISAL ASSOCIATES Section B - Page 9
Zoning: “PD-R2 & “R2” – Planned Development Residential 2 & Residential 2
Shape: Irregular
Topography/Site: Gently sloping at street grade, concrete drives, sidewalks, parking, typical
residential landscape, grass/soil cover, and water feature
Frontage: ~ 245’ along the east side of U.S. 377 & ~1200 along the south side of Fairview Drive
(~per GIS measurement)
Soil Conditions: Assumed adequate; rely on geo-technical report
Utilities: All city utilities available
Flood Plain: None; Zone X, FEMA Map 48121C0370G, Dated 4/18/2011
The micro-locale is residential considered to be of average development intensity. The subject location
offers good frontage on an interior roadway (Fairway Drive) that is concrete paved with concrete curbs,
sidewalks, and drainage. Traffic levels are considered average for residential development. The site
is irregular and has a gently sloping topography, to level at street grade, concrete drives, sidewalks,
parking, and has typical residential landscape, native grass/soil cover. The frontage-to-depth ratio and
ingress/egress are considered average for residential 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 along U.S. 377 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 Abandonment Areas
Whole Property Acres Square Feet
6.483 +\- 282,399 +\-
Part(s) to Be Abandoned Acres Square Feet
Below Ground Utility Easement (1%
Interest)
0.377 +\- 16,422+\-
Remainder Property Acres Square Feet
6.483 +\- 282,399 +\-
Temporary Construction Easements Acres Square Feet
NA NA NA
TM APPRAISAL ASSOCIATES Section B - Page 10
The parent is ~6.483 acre +\-, or the “whole property”. The remainder property immediately after the
abandonment is ~6.483 acre +\-.
Proposed Utility Abandonment – 0.377 Acre +\_
The abandonment is ~ 16 ft. wide and containing a total area of ~0.377 acres or 16,422 SF +\- (see
exhibits). The abandonment area only partially encumbers the subject site. 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.
The purpose of the proposed project is to abandon an existing 16 ft. utility easement. The abandoned
part consists of approximately 0.377 acres, representing the encumbered area reserved for an
underground utility easement. The subject utility easement is located underground along the
northern portion of the property boundary, and generally follows the property line boundary,
extending in an east-west orientation between the US 377 and Clubview Drive (See Exhibits). It is
our understanding that there are no existing underground improvements, and no underground
improvements were installed. The area was reserved by the city for future use of a utility easement
which is in the process of being abandoned. We have made the assumption that no underground
improvements are infrastructure exists and the easement area was only reserved by the city for
potential future use.
After the proposed abandonment of the 0.377 the owner will regain some of the bundle of rights
(access, maintenance, ad valorum taxes, pride of ownership). However, the area is directly
encumbered with a ~ 6 foot wood fence which runs along the northern boundary line of the subject
site, and portions include wrought iron fencing near both the eastern and western boundaries. Further,
due the zoning setbacks and requirements, the 0.377-acre area will have little to no utility for further
development. The encumbered land would still hold a market value because the owner will still
possess a portion of the bundle of rights. Due to the existing fence improvements, zoning requirements,
and the overall shape, utility, and location of the area, an appropriate discount would be typically
applied to account for the overall use and utility of the area. Demolishing the existing fence
improvement would not result in a different highest and best use and would not yield any additional
value.
After discussion with industry peers a discount for this type of abandonment would typically range
from 75-99% depending on a number of factors such as location, physical characteristics, surrounding
uses, zoning requirements, overall utility of the area, and encumbrances to name a few. In this case
due to zoning setbacks and existing fence improvements the area retains very little overall utility other
than access, maintenance, and ad valorum taxes. Due to significantly limited utility, we took a
conservative approach and reconciled at a 99% discount or 1% overall utility of the easement area.
The easement interest is assumed to represent 1% of the fee simple value, reflecting the limited
nature of the underground and above ground encumbrances, the shape, and zoning setback
requirements.
TM APPRAISAL ASSOCIATES Section B - Page 11
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.
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: 6.483 Ac
Part to Abandoned 0.377 AC Remainder: 6.483 AC
Source of Site Area: Plat/Allison Engineering – Whole
Survey- Part Abandoned
Shape: Irregular
Access/Frontage: NEC of US 377 & Fairway Drive
Topography/Site: Gently sloping at street grade, concrete drives, sidewalks,
parking, typical residential landscape, grass/soil cover and
water feature
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
Flood Map:
Date:
Description:
48121C0370G
Dated 4/18/2011
Zone X; outside the flood
Zoning “PD-R2 & “R2” – Planned Development Residential 2 &
Residential 2
Utilities:
Electric
Water
Sewer
Gas
Telephone & Internet
City
City
City
Atmos
Multiple providers
TM APPRAISAL ASSOCIATES Section B - Page 12
SUBJECT AERIAL VIEW (*LINES ARE APPROXIMATE)
TM APPRAISAL ASSOCIATES Section B - Page 13
SUBJECT LOCATION *APPROXIMATE
TM APPRAISAL ASSOCIATES Section B - Page 14
SURVEY OF 16 FT. UTILITY EASEMENT
TM APPRAISAL ASSOCIATES Section B - Page 15
LEGAL DESCRIPTION OF 16 FT. UTILTIY EASMENT
TM APPRAISAL ASSOCIATES Section B - Page 16
AERIAL OF SITE & CLIENT PROVIDED
~LOCATION OF 16 FT. UTILITY EASEMENT
TM APPRAISAL ASSOCIATES Section B - Page 17
ADDITIONAL AERIAL - APPRAISER DRAWING OF
~16 FT. UTILITY EASEMENT LOCATION
(*LINES ARE APPROXIMATE)
TM APPRAISAL ASSOCIATES Section B - Page 18
The plat map recorded with the City of Denton, as well as communication with Allison Engineering
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.
The “whole” site as 6.483 acres +\- (Lots 1-6 & Lot located at the NEC US 377 & Fairway Dr.)
TM APPRAISAL ASSOCIATES Section B - Page 19
TM APPRAISAL ASSOCIATES Section B - Page 20
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 48121C0370G, 4/18/2011. The subject flood map is presented below.
SUBJECT FLOOD MAP *LINES ARE APPROXIMATE
TM APPRAISAL ASSOCIATES Section B - Page 21
IMPROVEMENTS ANALYSIS
The subject Lots 1-3 & 6 are improved with single-family residential homes and related improvements.
The remaining Lots 4-5 are unimproved, and the hard corner is improved with a water feature and
development entry features. Additionally, there is a ~ 6’ foot wood fence which runs along the northern
boundary line of the subject site, and portions of the site include wrought iron fencing near both the
eastern and western boundaries. The single-family homes improvements are set back from the
easement area; the underlying 16 foot utility easement does not appear to affect the above ground
improvements. No improvements are included in our analysis.
The proposed subject utility easement to be abandoned is located underground along the northern
portion of the property boundary, and generally follows the property line boundary, extending in
an east-west orientation between the US 377 and Club View Drive (See Exhibits). It is our
understanding that there are no existing underground improvements, and no underground
improvements were installed. The area was reserved by the city for future use of a utility easement
which is in the process of being abandoned. The purpose of the proposed project is to abandon the
existing 16 ft. utility easement.
The valuation of the unaffected above ground improvements is not necessary in some cases for a
credible assignment result. In this case, the subject is land only. No improvements are expected to
be directly impacted. As such, the valuation is limited to the land valuation only.
TM APPRAISAL ASSOCIATES Section B - Page 22
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 there are no existing
underground improvements, and no underground improvements were installed. The area was
reserved by the city for future use of a utility easement which is in the process of being abandoned.
We have made the assumption that no underground improvements are infrastructure exists and the
easement area was only reserved by the city for potential future use.
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 or atypical
improvements, other than the improvements noted in our analysis. 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 23
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 “PD-R2 & “R2”. The subject development is currently utilized for single family development and appears to conform to the current zoning. Zoning use and requirements are summarized in the addenda.
Primary surrounding land use in the immediate area consists of a few vacant tracts, single family
residential on secondary roadways, and mixed-use commercial 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 *LINES ARE APPROXIMATE
TM APPRAISAL ASSOCIATES Section B - Page 24
TAX AND ASSESSMENT ANALYSIS
The subject property is within the tax jurisdictions of Denton County, Argyle ISD, and the City of
Denton.
We utilized the 2025 tax rates and the value conclusion reconciled in the Land Sales Comparison
Approach to estimate the current tax burden. The site has a market value of $1,553,197 (6.483 acres
+\- land). Utilizing the market value the estimated tax burden is ~$32,553/annually without
exemptions.
The above analysis is provided to demonstrate a tax assessment and analysis based on the “Whole”
site ~6.483 acres +\- (282,399 SF +-).
TM APPRAISAL ASSOCIATES Section B - Page 25
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 “PD R2” – Planned Development R2 & “R2” –
Residential 2. Lots 1-3, and 6 are improved with single family home improvements and appear to
conform to the current zoning. The remaining lots are not improved as of the effective date.
Physically Possible
The subject property contains ~6.483 ac, is irregular in shape, and is gently sloping to street grade
topography and site are described as follows: concrete drives, parking, sidewalks, residential
landscape, grass/soil, and water entry feature. The site has access to all utilities. The subject’s
single-family improvements are set back from proposed utility abandonment. Given these factors,
the subject property is best suited for residential development. Continued residential use until
warranted by demand is considered physically possible.
Financially Feasible
Based on our analysis of the market, there is currently adequate demand for single-family
development as demand warrants. Therefore, continued use as residential development until further
development is warranted.
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
residential 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 single family residential development until further development is warranted.
1The Appraisal of Real Estate, Fifteenth Edition, Appraisal Institute, 2020, Pages 305-315
SECTION C
VALUATION ANALYSIS
TM APPRAISAL ASSOCIATES Section C - 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 Land Sales Comparison Approach
in making a purchase decision.
TM APPRAISAL ASSOCIATES Section C - 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 6.483 Ac +\- (282,399 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 C - Page 3
COMPARABLE SALES ADJUSTMENT GRID – WHOLE 6.483 Ac +\- (282,399 SF +/-)
TM APPRAISAL ASSOCIATES Section C - Page 4
COMPARABLE SALES 1-4 LOCATION MAP
TM APPRAISAL ASSOCIATES Section C - Page 5
COMPARABLE SALE 1-3 PARCEL MAP & LOCATION – LINES ARE APPROXIMATE
TM APPRAISAL ASSOCIATES Section C - Page 6
COMPARABLE SALE 4 PARCEL MAP & LOCATION – *LINES ARE APPROXIMATE
TM APPRAISAL ASSOCIATES Section C - Page 7
ANALYSIS OF COMPARABLE SALES – WHOLE 6.483 Ac +\- (282,399 SF +/-)
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 subject site is physically located in the City of Denton but is within the Argyle ISD. The
site is physically located on the NEC of US 377 & Fairway Drive. The area adjacent to US 377 is utilized
for access & entry features to the development. The overall location is considered to be good as it is
located in an ongoing developing area, Argyle ISD is a highly sought after school district. According to
recent U.S. Census Bureau–based data for the Argyle Independent School District (TX), the median
household income in the district is approximately $167,549 based on the American Community Survey
5-year estimates.
Sales 1, 3 and 4 are all located within the Argyle ISD. No adjustment is considered necessary. Sale 2 is
located in Denton ISD. Based on the most recent U.S. Census Bureau–derived data for the Denton
Independent School District in Texas, the median household income in that school district area is
approximately $87,906 per year. A modest 10% adjustment is considered appropriate to account for
household income difference between the districts.
Size: The subject property consists of ~6.483 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 acres 5.005 – 6.471. No more similar, more recent, or proximate comparable sales were
located in the normal course of business. Sales 2-3 are the most similar in size, at ~6.471 ac and 6.022
ac, respectively. No adjustment is necessary. The remaining sales, 1 and 4, are slightly smaller in size, at
~5 acres each, a slight 5% adjustment is applied to each.
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. Sales 1-2 are considered similar in utility availability.
No adjustments are warranted. Sales 3-4 require private septic; a 5% adjustment is applied to each.
TM APPRAISAL ASSOCIATES Section C - Page 8
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 subject is being analyzed as vacant land. All four sales are vacant tracts with no
improvements that offer contributory value. 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 gently sloping topography with native
grass/soil and is irregular in shape with good overall utility for development. Sales 2-3 are considered
to have similar overall utility and overall topography with no notable differences. No adjustments are
necessary. Sale 1 has a pond in the middle of the site which could limit development/utility, and/or
add development expense. A 5% adjustment is applied. Sale 4 has limited frontage/access, a 10%
adjustment is applied.
VALUE CONCLUSION BY UNIT – WHOLE 6.483 Ac +\- (282,399 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 $4.29-$7.23 per SF, with an average price per square foot of
$5.79 and median price per square foot of $5.81. A sales price per square foot of $5.80/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. 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 6.483 acres in fee simple
ownership. The proposed action involves the abandonment of an existing underground utility
easement affecting approximately 0.377 acres (16,422 SF +/-) of the property.
Summary of Abandonment
• Type of Abandonment: Utility abandonment (extinguishment of underground utility ease-
ment rights)
• Area of Easement Abandoned: 0.377 acres (16,422 SF +/-)
• Fee Simple Land Value: $5.80 per square foot
TM APPRAISAL ASSOCIATES Section C - Page 9
• Easement Valuation Assumption: 1% of fee simple value - The easement interest is assumed
to represent 1% of the fee simple value, reflecting the limited nature of the underground and
above ground encumbrances, the shape, and zoning setback requirements. See site section for
details.
• Remainder Impacts: None
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
abandonment of the underground utility 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: $952
TM APPRAISAL ASSOCIATES Section C - Page 10
LAND VALUATION – REMAINDER 6.483 Ac +\- (282,399 SF +/-)
The purpose of the proposed project is to abandon an existing 16-foot sewer easement. The abandoned
part consists of approximately 0.377 acres (16,422 SF +/-), representing the area previously
encumbered by the underground utility 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 utility easement rights only.
TM APPRAISAL ASSOCIATES Section D - Page 1
SECTION D
FINAL RECONCILATION, CONCLUSIONS, EXTRAORDINARY ASSUMPTIONS,
HYPOTHETICAL CONDITIONS, MARKETING TIME
TM APPRAISAL ASSOCIATES Section D - Page 2
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 Abandoned, 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 3
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 February 6th, 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 4
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 5
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 6
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 7
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 and information provided by Allison Engineering. The parts abandoned are
based on the plat provided by our client & documentation provided by Allison Engineering.
• The appraisal is based on the specific assumption that no underground improvements or
infrastructure exists and the easement area was only reserved by the city for potential future
use.
• 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.
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 8
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
TM APPRAISAL & ASSOCIATES Section E – Page 7
City of Denton R2 – Residential Purpose and Requirements
TM APPRAISAL & ASSOCIATES Section E – Page 8
City of Denton R2 – Residential Purpose and Requirements
TM APPRAISAL & ASSOCIATES Section E – Page 9
City of Denton PD – Planned Development Purpose and Requirements