900 and 906 College Ave RFP - April 2024.pdf

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Request for Proposals

Rusk County Owned Waterfront/Highway Adjacent Property

900 and 906 College Avenue, Ladysmith, WI 54848

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Contact Information:

Ashley Heath

Administrative Coordinator

(715) 532-2257 aheath@ruskcountywi.us

Table of Contents

Disclosure & Disclaimer

Introduction & Background

Site Data

Location

City of Ladysmith TID #9 and TID #13

Tourism and Recreation

Desired Proposals

Purchase Price and Contract Requirements

Proposal Requirements

Selection Criteria

Submission of Proposals

Timeline

Contact Information

Exhibit A: Site Photos

Exhibit B: Inspection Report – 906 College Ave W

Exhibit C: January 2023 Appraisal – 906 College Ave W

Exhibit D: April 2024 Appraisal – Land Parcels

Exhibit E: Tax Incremental District #9 Report

Exhibit F: Tax Incremental District #13 Report mailto:aheath@ruskcountywi.us

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Disclosure & Disclaimer

This Request for Proposals (“RFP”) is being furnished to recipients by Rusk County (“County”) for the recipient’s convenience. Any action taken by the Rusk County Board of Supervisors (“County Board”) in response to submissions to this RFP, made pursuant to this RFP, or in making any awards or failure or refusal to make any award pursuant to such submissions, or in any cancellation of awards, or in any withdrawal or cancellation of this RFP, either before or after issuance of any awards, shall be without any liability or obligation on the part of the County and its employees, officers, agents, supervisors or other elected officials.

The County, at its discretion, may at any time withdraw this RFP, may accept or decline any submissions, and may waive any abnormality if the County deems appropriate and if it is in the County’s best interest.

The County has the ability to determine the responsiveness and acceptability of any submitted proposal.

The County reserves the right to reject any and all proposals without cause and in its sole discretion.

It is the responsibility of the interested respondent to fully understand and interpret all applicable laws, ordinances and building codes when preparing and submitting proposals.

The County and the selected respondent will be bound only if and when a submission, as the same may be modified, and any applicable definitive agreements and budgetary authorizations pertaining thereto, are approved by the Rusk County Board of Supervisors and then only pursuant to the terms of the definitive agreements executed among the parties.

1. Introduction and Background

The County is soliciting proposals for the purchase or long-term lease arrangement for the redevelopment of a prime property within the City of Ladysmith. The property consists of several parcels, which are depicted in Exhibit A and referred to throughout the RFP as the “Property.” The Property is located on the west side of State Highway 27 between College Avenue and the Flambeau River.

This RFP provides respondents with contextual information to develop and submit a successful proposal.

The County welcomes proposals that will that maximize the value and use potential of the Property while preserving its natural, recreational, and historical character.

2. Site Data

Address: 900 College Avenue West, 906 College Avenue West

Parcel Numbers: 246-03596-000, 246-03597-000, 246-03598-000, 246-

03599-000, and 246-03658-005, 246-03560-000 (lie to the north of College Avenue)

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Aerial Image of Entire Site (taken February, 2024):

Tax Key Map of Entire Site (taken prior to demolition of hospital building):

The 900/906 College Avenue West parcels encompass approximately seven (7) acres (Parcel Nos. 246-

03596-000, 246-03597-000, 246-03598-000 and 246-03599-000):

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Aerial image of 900/906 College Avenue West (7 acres) (taken February, 2024)

Tax Key Map of 900/906 College Avenue West (7 acres) (taken prior to demolition of hospital building):

An additional two (2) acres of County-owned property lie adjacent to the north across College Avenue

(Parcel Nos. 246-03658-005 and 246-03560-000). These parcels may also be considered for redevelopment and may be included in the RFP.

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Aerial Imagine (2 acres) (taken February, 2024):

Tax Key Map (2 acres) (taken prior to demolition of hospital building):

Zoning: R-3 Multi-Family Residential (Parcel Nos. 246-03598-000, 246-

03599-000)

C Commercial (Parcel Nos. 246-03596-000, 246-03658-005, 246-

03597-000, 246-03560-000)

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Tax Increment District: #9 (Parcel Nos. 246-03658-005, 246-03560-000, 246-03597-000, 246-03599-000

Tax Increment District: #13 (Parcel Nos. 246-03658-005, 246-03560-000, 246-03598-000, 246-03599-000)

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Population of Rusk County: 14,186

Population of the City of Ladysmith: 3,414

Prior Use: The Property was formerly occupied by a nursing home and hospital facility. These connected facilities were demolished in late

2023/early 2024. A decommissioned clinic structure still stands on one parcel of the Property: 246-03597-000.

Waterfront: The Property abuts Flambeau River on the southern Property boundary.

3. Location

In addition to its being adjacent to the Flambeau River, the Property has other location benefits. The

Property is close to several businesses, including Walmart, O’Reilly Auto Parts, and the newly-opened

Marshfield Clinic Health Systems hospital. The Property boasts high visibility from State Highway 27, and has access to both State Highway 27 and College Avenue1.

4. City of Ladysmith TID #9 and TID #13

The City of Ladysmith approved TID #9 in 2020 and TID #13 in 2021. TID #9 includes Parcel Nos. 246-

03658-005, 246-03560-000, 246-03597-000, 246-03599-000 #13 includes Parcel Nos. 246-03658-005, 246-03560-000, 246-03598-000, 246-03599-000, which include the parcel abutting the Flambeau River.

Attached hereto is the TID #9 and TID #13 Project Plans, which include helpful information regarding development incentives that may be available. Proposers are encouraged to communicate with the City of Ladysmith for additional information.

1 The Respondent will be required to obtain any needed access permits as part of its development approvals.

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5. Tourism and Recreation

Rusk County enjoys an active four-season tourism industry. The recreation opportunities in the warmer months are endless. Rusk County has been called a “paddler’s paradise” with its four major rivers and numerous lakes and flowages providing diverse waters for every paddler, from seasoned athlete to families with young children. The County is home to many trails for hiking and biking, including the

Sisters' Farm Trail System and the Blue Hills Trail System. It's easy to explore the land of four rivers by

ATV. You can ride from the front door of many Rusk County lodging properties into the far reaches of the area's backcountry, and you can find trails close to Ladysmith. ATV road routes are located throughout the county, allowing riders to travel from one community to another and access key trailheads. Camping areas and other lodging are located throughout the County.

When the weather cools, the County’s tourist season heats up with more than 300 miles of snowmobile trails through the Blue Hills and along the wild Flambeau, Chippewa, Jump and Thornapple rivers. Cross-country skiing, snowshoeing and ice fishing are popular draws for many winter tourists on the Sisters'

Farm Trail System and the Blue Hills Trail System.

The Property’s location adjacent to the Flambeau River creates many opportunities for development that may incorporate the natural beauty of this land while still transforming its use for many to enjoy.

There is even a possibility of beach and dock access to the Flambeau River on the south side of the

Property.

6. Desired Proposals

The County desires to obtain proposals that maximize the value and use potential of the Property while emphasizing its natural and recreational value. Proposals may include the following uses:

• Retail

• Hotel or other tourism-based use

• Housing/residential development

• Recreation

• Green space that capitalizes on the County’s “Four Rivers, For Everyone” tourism slogan

• Incorporate historically/locally relevant design elements

7. Purchase Price and Contract Requirements

A copy of an appraisal completed in 2024 is attached hereto as Exhibit D. Land cost shall be determined on the overall value and score of the submitted proposal. Successful submittals must include a potential acquisition price of the Property. The County reserves the right to negotiate the purchase price after submittal of proposals with the prospective respondent.

https://ruskcountywi.com/lodging/

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The acquisition contract/offer to purchase or lease document shall be negotiated after the County’s selection of the proposal. However, each proposal must include an agreement to the contract terms summarized below:

• Indemnification of the County, its officers, employees, agents and elected officials.

• An acknowledgement that the County will not provide an indemnification of the purchaser.

• Agreement to complete all due diligence, testing, inspections and other site investigations at purchaser’s sole cost and expense. The County will agree to cooperate in the purchaser’s due diligence, testing, inspections and other site investigations within the County’s reasonable discretion and at no cost to the County.

• Agreement to secure any and all licenses, permits, or other approvals for the anticipated use and operation at purchaser’s sole cost and expense. The County will agree to cooperate in the purchaser’s approval processes within the County’s reasonable discretion and at no cost to the

County.

• An acknowledgement that the County makes no representations or warranties regarding the

Property, and acceptance of the Property “as-is.”

• The County will make available documents and records in its actual possession relating to any site improvements or conditions at no cost to the County.

• Any costs or fees incurred by the County due to purchaser’s due diligence, testing, inspections, securing of approvals, or otherwise prior to closing of the purchase shall be reimbursed by purchaser no later than closing.

The County reserves the right to require additional contract terms and provisions.

8. Proposal Requirements

Successful proposals will include all of the following (or a brief explanation of missing information) in this order:

a. Narrative Response to the RFP including background of the company and/or business submitting the proposal.

b. Summary of the proposed development and anticipated use(s) of the Property.

c. Development Team

a. Personnel assigned to the project and a bio for each.

b. Expertise and related experience of the development team.

d. Proposed Development

a. Preliminary site and building plans.

b. Building elevations and sketches.

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c. Indication of land use(s), prospective businesses, housing types, etc. with a breakdown of individual aspects or use(s).

d. Total value of the proposed project.

e. Narrative describing the development’s compatibility with the surrounding neighborhood and the community in general.

e. Project Timeline

a. Project schedule for construction and occupancy in the form of a timeline or timetable.

b. Management intentions for the Property once complete.

f. Financials

a. Explain the financial strategy for funding (including sources) and demonstrate project feasibility. Explain any grants, loans, or financial assistance programs being accessed and the team’s experience with these programs.

b. Explain financial assistance desired such as TID funding, upgrade/installation of utilities, street improvements, etc.

g. Additional Information

a. Examples of similar development projects if applicable.

b. Summary of the overall impact and tangible benefits for Rusk County including tax base generation, sales tax potential, temporary construction jobs/local economic boost, and permanent jobs.

c. Marketing approach/plan if applicable.

9. Selection Criteria

The County’s Property Committee will serve as the selection committee to evaluate proposals based on the following criteria:

• Development team’s experience.

• Financial capacity.

• Overall quality and attractiveness of the proposed development.

• Density and design.

• Neighborhood compatibility.

• Value of the estimated tax base of the proposed development.

• Use(s) suitability to the land.

• Economic impact to the City of Ladysmith and Rusk County.

• Job creation.

• Overall responsiveness to the RFP requirements.

• Other such criteria as deemed necessary.

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The County Property Committee will be assisted by the County’s Administrative Coordinator and any other professionals it deems necessary. The County Property Committee may conduct interviews with respondents. It’s anticipated that a summary presentation will be made by the chosen respondent to the County in the final selection process.

Upon selection, the County Property Committee will make a final recommendation to the County Board of Supervisors for review and approval.

The County reserves the right to reject any or all proposals, including any portion of a proposal, for any reason at the County’s sole discretion, or to accept the proposal considered most advantageous to the

County following final negotiations, evaluations and review.

The County reserves the right to combine development proposals and suggest development partnerships between development proposals.

If no development proposal is selected or the respondents are unable to finalize an agreement with the

County, the County reserves the right to advance development proposals as they come forward or to select an alternative development proposal.

This is a negotiated procurement. Negotiation is a procedure that includes the receipt of a proposal from offerors, permits bargaining, and usually affords an opportunity to revise offers before award of a contract. Bargaining, in the sense of discussion, persuasion, alteration of initial assumption and positions may apply to price, schedule, technical requirements, type of contract or other terms of a proposed contract unless modified terms are prohibited by law. Award may be made on the basis of the original proposal without negotiations with any offer.

10. Submission of Proposals

Proposals must be submitted electronically in PDF format by 5:00 PM on Friday, July 12, 2024 to:

Ashley Heath Administrative Coordinator aheath@ruskcountywi.us

Subject Line: 900 and 906 College Ave Proposal

Proposals shall be submitted on 8.5” x 11” paper with tab sections clearly separating the proposal requirements outlined previously. Any images, site plans, renderings, elevations, etc. should be scaled appropriately and displayed on 11” x 17” paper.

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11. Timeline

RFP published: Monday, April 15, 2024

Deadline for questions: Friday, June 21, 2024

Proposal due date: Friday, July 12, 2024 at 5:00 PM

Internal reviews: July 2024

Interviews with Property Committee: August 2024

Final recommendation and presentation to County Board: August or September 2024

Selection of proposal: August or September 2024

Agreement approval: Late 2024

Development proceeds for construction: 2025

Timeline is tentative and subject to change.

12. Contact Information

All questions regarding this RFP should be submitted in writing to:

Ashley Heath Administrative Coordinator aheath@ruskcountywi.us

Rusk County

311 Miner Ave E.

Ladysmith, WI 54848

(715) 532-2257

Addendums to this RFP will be posted on the County’s website: www.ruskcounty.org.

Site Photos

Property Condition Assessment

906 College Avenue W Ladysmith, WI

54848

Prepared for: Rusk County

Prepared by: Top Down Home Inspection LLC

Table of Contents Definitions 2

General Information 2

Agreement 3

Site 5

Structural Frame & Building Envelope 7

Roof 8

Plumbing 8

HVAC 9

Electrical 11

Life Safety/Fire Protection 11

Interior Elements 12

Summary 13

Top Down Home Inspection LLC

Palm-Tech Inspector, Copyright © 1998-2023, PDmB, Inc.

Definitions NOTE: All definitions listed below refer to the property or item listed as inspected on this report at the time of inspection. The inspection only includes items listed in the report, as defined by the Standards of Practice of the State of Wisconsin. SPS 131.32.

Inspected / Functional Denotes item, system, or component of system was inspected and unless otherwise noted, is performing its function and its condition is appropriate for its age/or use.

Improve/Maintenance 1. Maintenance of the item is recommended to prevent premature failure or to maintain its functionality.

2. Client to consider improving item or condition to meet today's standards. (Items marked for improvement are not required.)

Repair/Differed Costs The condition of the item warrants repair but does not pose a health or safety concern nor rise to the level of Defect.

Defect / Safety concern / Further evaluation A condition of any component of an improvement that a home inspector determines, on the basis of the home inspector's judgment on the day of an inspection, would significantly impair the health or safety of occupants of a property or that, if not repaired, removed, or replaced, would significantly shorten or adversely affect the expected normal life of the component of the improvement. Items require further evaluation by a qualified contractor.

Not Inspected Item was unable to be inspected for safety reasons or due to lack of power, inaccessible, or disconnected at time of inspection or was not within the scope of this inspection.

Not Present Item not present or not found at time of inspection.

General Information

Property Address:

Property Address:

Building Front Faces: North

Client Name:

Client Phone:

Client E-Mail:

Inspector Name Company Name Address:

Inspectors Phone: E-Mail:

Inspector License #:

File Number:

Inspection Date: Start Time:

Electric On Gas/Oil On Water On

Date:

Top Down Home Inspection LLC

Agreement 1.

Top Down Home Inspection LLC

COMMERCIAL PROPERTY WALK-THROUGH SURVEY AGREEMENT

(PLEASE READ CAREFULLY)

THIS AGREEMENT is made this 27th day of October 2023 between Top Down Home Inspection LLC 2858 116th Street Chippewa Falls, WI 54729 Name & address of Client: Rusk County Administration 311 Miner Ave East Ladysmith, WI 54848 C/O Ashley Heath - Administrative Coordinator The property to be inspected is located at: 906 College Avenue West, Ladysmith, WI 54848 The inspection is scheduled for: November 9th, 2023 at 10:00 AM

1) SCOPE OF SERVICES. The CONSULTANT will employ a qualified field observer who will conduct a Walk-Through Survey of the subject property and prepare a PROPERTY CONDITION REPORT (PCR) that contains the CONSULTANTS observations and opinions as to the subject propertys condition. The Walk-Through Survey is (a) limited in scope, (b) not a building code or ADA (Americans with Disabilities Act) compliance inspection, and (c) conducted in accordance with all conditions and provisions listed here on these pages and that are a part of and included with the PCR. The Walk-Through Survey is conducted during the field observers site visit of the subject property and consists of non-intrusive visual observations and survey of readily accessible, easily visible components and systems of the subject property. Concealed physical deficiencies are excluded. The Walk-Through Survey is performed in accordance with the most current edition of ASTM E-2018 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process, with the exception of Section 7 - Document Reviews and Interviews (Section 7 in its entirety and all related subsections), subsection 8.4.8 -Vertical Transportation and Section 9 - Opinions of Probable Costs (Section 9 in its entirety and all related subsections), which are excluded from this Walk-Through Survey and PCR. Copies of this document are available upon request. The Walk-Through Survey is performed by a field observer who will report the conditions and symptoms observed, but not the causes, remedies, and/or costs of correction.

2) THE WALK-THROUGH SURVEY. The Walk-Through Survey should not be considered technically exhaustive.

In the Walk-Through Survey, the field observer will not: remove floor or wall coverings, move furniture, fixtures, equipment or stored items, open walls or perform any type of destructive testing. The field observer will not dismantle equipment, operate shut-off valves, engage pilot lights or survey systems that have been shut down. Any general comments which may appear about these systems and conditions are provided as a courtesy only and DO NOT represent or form a part of the Walk-Through Survey. Additionally, the field observer will not survey items inaccessible because of soil, vegetation, walls, floors, carpets, furnishings, fixtures or equipment, water, ice, snow, or any conditions that would present a hazard to the field observer.

3) DUE DILIGENCE. The Walk-Through Survey and resultant PCR are only a part of the overall Due Diligence process that should be undertaken or contracted for by the CLIENT. The PCR recites the general physical condition of the property AT THE TIME OF THE WALK-THROUGH SURVEY ONLY. It is usual and customary for the CLIENT (or the CLIENTS employees and/or other consultants) to perform Due Diligence items that are not included in the scope of the Walk-Through Survey, including, but not limited to, document review, tenant and staff interviews, permit and zoning research, code compliance, insurance risk assessments, status of life safety and equipment inspections, environmental studies, energy audits, determination of costs and procedures to repair deficiencies indicated in the PCR, and ongoing maintenance costs. The CLIENT is advised to obtain a separate Phase One Environmental Assessment (ASTM E-1527), performed by others.

FEE FOR SERVICES

4) CLIENT agrees to pay CONSULTANT a Walk-Through Survey fee in the amount of $3,000.00 The fee for the survey is due upon delivery of the PCR. A $50.00 fee will be applied to all returned checks and to any invoice outstanding 30 days or more from the time of the survey. Any follow-up visit to the surveyed Premises shall be a minimum charge of $150.00 due at the time of the follow-up visit.

5) USE BY CLIENT. The Walk-Through Survey and resultant PCR as described herein are performed and prepared for the confidential and exclusive use and possession of the CLIENT and are NOT intended to provide complete information about the subject property. The PCR should not be solely relied upon and/or used to make decisions as to whether or not the subject property should or should not be purchased. The PCR is the sole property of the CLIENT and is not transferable to any other party.

6) ITEMS NOT INCLUDED. The Walk-Through Survey (a) is limited to the major systems of the building and improvements, (b) renders only the opinion of the field observer and (c) is based upon items readily accessible

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Agreement (Continued) and observable. The Walk-Through Survey is essentially visual and does not imply that every defect will be discovered. The parties agree that the ASTM E-2018 standards, most current edition, shall define the standard of duty and the conditions, limitations, and exclusions of the Walk-Through and are incorporated by reference herein. Latent and concealed defects and deficiencies, including but not limited to, basement flooding, basement seepage and roof leakage, are excluded from this inspection. The Walk-Through Survey and PCR exclude and do not cover those items indicated as untested or not observed and the Walk-Through Survey is not intended to detect, identify, alert, or disclose any health or environmental concerns regarding the building(s) and/or adjacent property, including, but not limited to, the presence of asbestos, radon, lead, urea formaldehyde, fungi, mold, conditions related to mold, bio-organic growth, conditions related to animals, rodents, insects, wood-destroying insects or organisms, pathogenic organisms, PCB's, or any other toxic materials or substances contained in the water, air, soils, or building materials or products. The Walk-Through Survey specifically excludes flammable materials; water testing; telephone systems; intercom systems;

security systems; antennas; swimming pools and pool equipment; spas; energy efficiency measurements;

underground storage tanks; underground drainage; irrigation; outdoor grills; low voltage exterior lighting;

remote overhead door transmitters and receivers; concealed or underground electric and plumbing; systems which are shut down or otherwise secured; private sewer systems; water wells; chimney draft; zoning or other ordinances; and building code conformity. All items indicated as being excluded in the ASTM E-2018 standards are also excluded herein. The CLIENT understands that these systems and conditions and information about them are excluded from this Inspection and Report. Any general comments which may appear about these systems and conditions are provided as a courtesy only and DO NOT represent or form a part of the Walk-Through Survey.

7) LIMITATION OF LIABILITY. It is understood and agreed that in the event of any claim whatsoever against CONSULTANT, its employees, field observers, or other agents, whether based on contract, negligence or other tort, statute, or otherwise, in any way directly or indirectly resulting from or relating to the Walk-Through Survey, the PCR or performance or nonperformance of services by CONSULTANT, that, any liability of CONSULTANT, its employees, field observers or other agents shall be solely and exclusively limited to the amount of the fee actually paid by CLIENT.

8) LIMITATION OF ACTIONS. No action shall be maintained by CLIENT against CONSULTANT unless written notice, sent by certified mail return receipt requested, setting forth that an installed system or component of the Premises which was surveyed by the field observer was not in the condition reported by the field observer, is delivered by CLIENT to CONSULTANT within ten (10) business days after the discovery of such defect becomes known to CLIENT. CLIENT agrees that, with the exception of emergency conditions, CLIENT or CLIENTS agents, employees or independent contractors will make no alterations, modifications, or repairs to the claimed discrepancy prior to a re-examination by CONSULTANT. Furthermore, any action must be commenced by CLIENT within one (1) year after the date of the Walk-Through Survey or will be deemed waived and forever barred.

9) ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement between the parties and supersedes any and all prior agreements between the parties. CLIENT agrees that any representation, promise, condition, or warranty, express or implied, not included in this Agreement shall not be binding on any party.

10) INTERPRETATIONS. It is mutually understood and agreed that all provisions herein are severable and that, in the event that any of them shall be held to be invalid, any competent court may modify or reform any such provisions to make it enforceable and that the remaining provisions hereof shall nevertheless be valid and binding.

11) ASSIGNMENT. The rights and obligations under this Agreement may not be assigned by any of the parties hereto without the prior written consent of the other party.

12) ATTORNEYS FEES. The prevailing party in any dispute arising out of this Agreement, the Walk-Through Survey, or Property Condition Report shall be awarded reasonable attorneys fees and other costs.

IN WITNESS WHEREOF the parties have executed this Agreement on the day and year first written above.

By: David A. Welch and _____________________________________________ Member: Top Down Home Inspection LLC CLIENT (OR AUTHORIZED REPRESENTATIVE):

Top Down Home Inspection LLC

Site During the site visit, and in accordance with the principles of conducting representative observations, the field observer should conduct a walk-through survey of the subject property to observe material systems and components and identify physical deficiencies and any unusual features. Testing, measuring, or preparing calculations for any system or component to determine adequacy, capacity, or compliance with any standard is outside the scope of this guide.

1. Topography:

2. Storm Water Drainage:

3. Paving, Curbing, & Parking:

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Site (Continued)

4. Ingress & Egress:

5. Stairs (Exterior):

6. Landscaping & Appurtenances:

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Structural Frame & Building Envelope Observations of the buildings exterior generally are to be limited to vantage points that are on-grade or from readily accessible balconies or rooftops.

1. Type of structure:

2. Foundation/Footings:

3. Bearing Walls:

4. Piers/Posts:

5. Beams:

Main Building Exterior Surface

6. Wall Claddings:

7. Sealants/Flashing:

Roof border Exterior Surface

8. Wall Claddings:

9. Sealants/Flashing:

10. Soffit:

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Roof Inspector not required to enter/walk any roof areas that appear to be unsafe, or roofs without built-in access.

Main Building Roof Surface

1. Method of Inspection:

2. Slope:

3. Material:

4. Approximate Age:

5. Evidence of Ponding/Leaks:

6. Flashings:

7. Parapets:

8. Drainage:

Plumbing

Interior

1. Service Line:

2. Water Lines:

3. Drain Pipes:

4. Vent Pipes:

5. Toilets:

6. Faucets/Traps:

Main Water Heater

7. Water Heater Operation:

8. Manufacturer: Type/Fuel: Build Date:

9. Flue Pipe:

10. TPRV and Drain Tube:

Gas Service

11. Gas Meter:

12. Gas Service Line:

13. Main Gas Valve:

Top Down Home Inspection LLC

HVAC

Inspector is not required, and therefor does not comment on the condition of systems that are shut down at the time of the survey.

Inspector also is not required to, and therefor does not comment on flue connections, interiors of chimneys, flues, or boiler stacks.

Roof Top Heating System

1. Manufacturer: Type/Fuel: Build Date:

2. Heating System Condition:

3. Distribution:

Roof Top Heating System

4. Manufacturer: Type/Fuel: Build Date:

5. Heating System Condition:

6. Distribution:

Roof Top Heating System

7. Manufacturer: Type/Fuel: Build Date:

8. Heating System Condition:

9. Distribution:

Roof Top Heating System

10. Manufacturer: Type/Fuel: Build Date:

11. Heating System Condition:

12. Distribution:

Roof Top Heating System

13. Manufacturer: Type/Fuel: Build Date:

14. Heating System Condition:

15. Distribution:

Roof Top Heating System

16. Manufacturer: Type/Fuel: Build Date:

17. Heating System Condition:

18. Distribution:

Roof Top Heating System

19. Manufacturer: Type/Fuel: Build Date:

20. Heating System Condition:

21. Distribution:

Roof Top Heating System

22. Manufacturer: Type/Fuel: Build Date:

23. Heating System Condition:

24. Distribution:

Roof Top Heating System

25. Manufacturer: Type/Fuel: Build Date:

26. Heating System Condition:

27. Distribution:

Roof Top Heating System

28. Manufacturer: Type/Fuel: Build Date:

29. Heating System Condition:

30. Distribution:

Roof Top Heating System

31. Manufacturer: Type/Fuel: Build Date:

32. Heating System Condition:

33. Distribution:

Roof Top Heating System

34. Manufacturer: Type/Fuel: Build Date:

35. Heating System Condition:

36. Distribution:

Roof Top Split System AC System

37. Manufacturer: Type/Fuel: Build Date:

38. A/C System Condition:

Top Down Home Inspection LLC

HVAC (Continued) A/C System Condition: (continued)

39. Distribution:

40. Unable to Inspect:

Roof Top Split System AC System

41. Manufacturer: Type/Fuel: Build Date:

42. A/C System Condition:

43. Distribution:

44. Unable to Inspect:

Roof Top Split System AC System

45. Manufacturer: Type/Fuel: Build Date:

46. A/C System Condition:

47. Distribution:

48. Unable to Inspect:

Roof Top Split System AC System

49. Manufacturer: Type/Fuel: Build Date:

50. A/C System Condition:

51. Distribution:

52. Unable to Inspect:

Roof Top Split System AC System

53. Manufacturer: Type/Fuel: Build Date:

54. A/C System Condition:

55. Distribution:

56. Unable to Inspect:

Roof Top Split System AC System

57. Manufacturer: Type/Fuel: Build Date:

58. A/C System Condition:

59. Distribution:

60. Unable to Inspect:

Roof Top Split System AC System

61. Manufacturer: Type/Fuel: Build Date:

62. A/C System Condition:

63. Distribution:

64. Unable to Inspect:

Roof Top Split System AC System

65. Manufacturer: Type/Fuel: Build Date:

66. A/C System Condition:

67. Distribution:

68. Unable to Inspect:

Top Down Home Inspection LLC

HVAC (Continued)

Electrical Inspector is not required to, and therefor does not enter into electric distribution panels

1. Service Entrance:

2. Meter(s):

3. Ground:

4. Conductor Type:

5. Lighting:

6. 120 VAC Outlets:

7. 240 VAC Outlets:

Service panels located throughout the building Electric Panel

8. Manufacturer:

9. Maximum Capacity:

10. Main Breaker Size:

11. Breakers:

12. GFCI:

13. Are the panels bonded?

Life Safety/Fire Protection

1. Sprinkler Systems:

2. Fire Alarms:

3. Interior doors:

4. Fire Hydrants:

5. Fire Extinguishers:

Top Down Home Inspection LLC

Interior Elements

General Interior

1. Entry doors:

2. Interior doors:

3. Windows:

4. Ceilings/Walls:

5. Floors:

6. Water Penetrations:

Top Down Home Inspection LLC

Improve/Maintenance Summary This summary is not the entire report. The complete report may include additional information of concern to the client. The client must read the ENTIRE report. The summery pages are provided as a convenience, not a substitute for reading the entire report and should not be relied upon as a complete list for reference. Items in the report are not all in the summary.

Site

1. Landscaping & Appurtenances:

Top Down Home Inspection LLC

Repair/Differed Costs Summary This summary is not the entire report. The complete report may include additional information of concern to the client. The client must read the ENTIRE report. The summery pages are provided as a convenience, not a substitute for reading the entire report and should not be relied upon as a complete list for reference. Items in the report are not all in the summary.

Site

1. Paving, Curbing, & Parking:

2. Landscaping & Appurtenances:

Structural Frame & Building Envelope

3. Foundation/Footings:

Top Down Home Inspection LLC

Repair/Differed Costs Summary (Continued)

4. Roof border Exterior Surface Wall Claddings:

Electrical

5. Lighting:

Top Down Home Inspection LLC

Defect / Safety concern / Further evaluation Summary This summary is not the entire report. The complete report may include additional information of concern to the client. The client must read the ENTIRE report. The summery pages are provided as a convenience, not a substitute for reading the entire report and should not be relied upon as a complete list for reference. Items in the report are not all in the summary.

Site

1. Stairs (Exterior):

Top Down Home Inspection LLC

Not Inspected Summary Item was unable to be inspected for safety reasons, lack of power, inaccessible, not visible, disconnected at the time of inspection, was not within the scope of the home inspection, or at the request of the client.

HVAC

1. Roof Top Split System AC System A/C System Condition:

2. Roof Top Split System AC System A/C System Condition:

3. Roof Top Split System AC System A/C System Condition:

4. Roof Top Split System AC System A/C System Condition:

5. Roof Top Split System AC System A/C System Condition:

6. Roof Top Split System AC System A/C System Condition:

7. Roof Top Split System AC System A/C System Condition:

8. Roof Top Split System AC System A/C System Condition:

Life Safety/Fire Protection

9. Sprinkler Systems:

10. Fire Alarms:

11. Fire Hydrants:

12. Fire Extinguishers:

Top Down Home Inspection LLC

APPRAISAL REPORT ON

MARSHFIELD CLINIC LADYSMITH CENTER PROPERTY

906 COLLEGE AVENUE WEST

LADYSMITH, WISCONSIN

GARY J. HOLT, MAI, SRA

J.C. NORBY & ASSOCIATES, INC.

1107 REGIS COURT

SUITE 200

EAU CLAIRE, WISCONSIN

J. C. Norby & Associates, Inc.

Real Estate Valuation & Consultation.

1107 Regis Court, Suite 200

Eau Claire, WI 54701

Phone: 715-834-3953 Fax: 715-834-5101

Email: info@jcnorby.com Website: www.jcnorby.com

January 19, 2023

Marshfield Clinic, Inc.

Attn: Mr. James Lynn, Vice President – Facilities Services

1000 North Oak Avenue

Marshfield, WI 54449

RE: Marshfield Clinic Ladysmith Center Property Appraisal

906 College Avenue West

Ladysmith, Wisconsin

Dear Mr. Lynn:

At your request, I have completed an appraisal intended to comply with Standard 1 of the Uniform

Standards of Professional Appraisal Practice (USPAP). This appraisal report is prepared under

Standards Rule 2-2(a). The legal description of the property is included in the enclosed report.

I have observed the property, researched data, and considered matters pertinent to its value. The

Market Value of the property as of the date of observation (January 5, 2023) is stated at $1,970,000.

ONE MILLION NINE HUNDRED SEVENTY THOUSAND DOLLARS

This appraisal includes the land and improvements. It does not include any furniture, fixtures, or equipment. It also does not include any personal property or inventory located on the premises.

Finally, this appraisal does not include the market value of the going concern (if any) of the property.

There are no hypothetical conditions associated with this appraisal assignment.

The property is valued based on its current As Is condition as of the date of observation.

The only extraordinary assumption included in this report is there are no adverse environmental conditions on or around the property that would have a negative impact on the overall utility, and hence value. Any deviation from this extraordinary assumption may have a significant effect on the market value opinion stated in this report.

http://www.jcnorby.com/

Marshfield Clinic, Inc.

RE: Marshfield Clinic Ladysmith Center Property Appraisal

January 19, 2023

As a result of the recent COVID-19 virus, the market’s reaction to this pandemic has been evaluated. After discussions with local and regional market participants in this type of property, there is insufficient data available to support a conclusion as to the effect on market value at this point. As of yet, there have been no rent concessions advertised or increase in vacancies for this type of real estate in the local market. Also, to my knowledge, there have been no proposed medical clinic properties put on hold or postponed as a result of the virus.

This appraisal report presents brief discussions of the data, reasoning and analyses that are used in the appraisal process to develop the opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained in the appraisal file. The depth of discussion is specific to the needs of the client and for the intended use stated in this report. I am not responsible for unauthorized use of this report.

Respectfully submitted, Gary J. Holt, MAI, SRA

WI Certified General Appraiser #1028

Expiration Date: December 14, 2023

J. C. NORBY & ASSOCIATES, INC.

GJH/asr/mm

Enclosure

F:\DATA\NARRATIVES\2023\22186CI 906 COLLEGE AVE W LADYSMITH MARSHFIELD CLINIC

Copyright © 2023 by J. C. Norby & Associates, Inc. All rights reserved.

Real Estate Valuation & Consultation ~ i ~

TABLE OF CONTENTS

PAGE

PURPOSE OF APPRAISAL

DEFINITION OF AS IS MARKET VALUE

DEFINITION OF HYPOTHETICAL CONDITION

DEFINITION OF EXTRAORDINARY ASSUMPTION

FUNCTION OF THE APPRAISAL

INTENDED USE OF REPORT

INTEREST VALUED

EFFECTIVE DATE OF REPORT

DATE OF REPORT

SCOPE OF WORK

STATE MAP

CITY MAP

AERIAL PHOTOGRAPH

SUBJECT PHOTOGRAPHS

TYPE AND CLASS OF PROPERTY

DATE OF OBSERVATION

LEGAL DESCRIPTION

MARKET AREA DATA

SITE DATA

ENVIRONMENTAL CONDITIONS

SALES HISTORY

ASSESSED VALUATION AND TAXES

ZONING

FLOOD PLAIN

HIGHEST AND BEST USE

IMPROVEMENT ANALYSIS

LAND VALUATION

VALUATION BY COST APPROACH

VALUATION BY SALES COMPARISON APPROACH

VALUATION BY INCOME CAPITALIZATION APPROACH

CORRELATION OF VALUE OPINIONS

FINAL OPINION OF VALUE

VALUE OF PROPERTY AS GENERAL OFFICE SPACE

VALUATION BY SALES COMPARISON APPROACH

VALUATION BY INCOME CAPITALIZATION APPROACH

CORRELATION OF VALUE OPINIONS

FINAL OPINION OF VALUE

ASSUMPTIONS AND LIMITING CONDITIONS

CERTIFICATION

QUALIFICATIONS

ADDENDUM

ZONING CODE

APPRAISAL CONTRACT

~ 1 ~

APPRAISAL REPORT ON

MARSHFIELD CLINIC LADYSMITH CENTER PROPERTY

906 COLLEGE AVENUE WEST

LADYSMITH, WISCONSIN

CLIENT: Marshfield Clinic, Inc.

1000 North Oak Avenue

Marshfield, WI 54449

APPRAISER: Gary J. Holt, MAI, SRA

J.C. NORBY & ASSOCIATES, INC.

1107 Regis Court, Suite 200

Eau Claire, WI 54701

SUBJECT: Marshfield Clinic Ladysmith Center Property

906 College Avenue West

Ladysmith, WI 54848

PURPOSE OF THE APPRAISAL:

The purpose of this appraisal is to provide the appraiser's best estimate of the market value of the subject real property as of the effective date. Market value is defined by the federal financial institutions regulatory agencies as follows:

Market value means the most probable price which a property should bring in a competitive and open market under all condition’s requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

(1) buyer and seller are typically motivated;

(2) both parties are well informed or well advised, and acting in what they consider their own best interests;

(3) a reasonable time is allowed for exposure in the open market;

(4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

(5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

(Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions [f].)

~ 2 ~

DEFINITION OF AS IS MARKET VALUE:

As is market value is defined as follows:

The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.

(Source: The Dictionary of Real Estate Appraisal, 7th Edition, Appraisal Institute)

DEFINITION OF HYPOTHETICAL CONDITION:

A hypothetical condition is defined as follows:

A condition that is presumed to be true when it is known to be false. A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.

Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.

DEFINITION OF EXTRAORDINARY ASSUMPTION:

An extraordinary assumption is defined as follows:

An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions.

Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.

FUNCTION OF APPRAISAL:

The function of this report is to present the data and reasoning employed to form a professional opinion of the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate to facilitate a decision. The objective of this report is to communicate the conclusions to the client.

~ 3 ~

INTENDED USE OF REPORT:

This appraisal is intended to assist the client, Marshfield Clinic, Health Systems Inc., in establishing a market value of the property. The intended user of this report includes the client only. This report is not intended for any other use or users.

DEFINITION OF FEE SIMPLE INTEREST:

Fee simple estate is defined as follows:

Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

EFFECTIVE DATE OF VALUE: January 5, 2023

DATE OF REPORT: January 19, 2023

SCOPE OF WORK:

The scope of work includes a number of independent investigations and analysis including an observation of the property on January 5, 2023. This appraisal includes the real estate only. It does not include any furniture, fixtures, or equipment. It also does not include any inventory or personal property located on the premises. Finally, this appraisal does not include the market value of the going concern (if any) of the property.

Site size and dimensions are obtained from the certified survey map and other public records outlining the property. Building size and dimensions are obtained from my measurements of the building exterior walls as taken during my onsite visit to the property.

Research sources utilized to gather data regarding the subject include the Rusk County

Register of Deeds and Treasurer Offices; the city of Ladysmith Zoning and Assessor

Offices; other public records; representatives of the property owner; and from my personal observation as part of this appraisal assignment.

Research sources utilized to gather general market data include the Northwest Wisconsin and Northstar Multiple Listing Service agencies (MLS), Marshall Valuation Service, Price

Waterhouse Coopers Real Estate Investor Survey, CoStar sales database, the Wisconsin

Department of Revenue sales database, RealtyRates.com, other real estate professionals located throughout the area, and the internal records database of this appraisal office.

The research sources used are sufficient for the discovery of comparable market data to provide a reliable value opinion for the property being appraised.

~ 4 ~

Appraisal Process:

According to the Appraisal Institute, an appraisal is defined as “an act or process of developing an opinion of value.” The intent of an appraisal is to assist in decision making purposes regarding a specific property.

The appraisal process is a systematic method of developing an opinion of value.

Depending on the nature of the property and purpose of the assignment, three valuation approaches are considered:

▪ Cost Approach

▪ Sales Comparison Approach

▪ Income Capitalization Approach

Each approach applies data derived from the market.

In the Cost Approach, the component parts of the subject property are analyzed and an estimate of what it would cost in the market to replace them with property of like utility and value is made. Land is broken into use classes, each evaluated on its value in the market. The value of the improvements are estimated based on cost new, less depreciation. Depreciation is defined as loss in value from any cause and may be physical wear, functional and/or external obsolescence.

The Sales Comparison Approach involves market analysis of properties which have sold. Each property is compared to the property being appraised on numerous factors; some being time of sale, size, location, quality of improvements. The concept of comparative analysis is the process by which a value indication is derived. This analysis may employ quantitative adjustment techniques or qualitative analysis, either separately or in combination. This comparative analysis is based on the appraisal principal of substitution, which states “when several similar or commensurate commodities, goods, or services are available, the one with the lowest price will attract the greatest demand and widest distribution.”

(Source: Dictionary of Real Estate Appraisal 7th Edition, Appraisal Institute)

The Income Approach typically involves the capitalization of net income. Annual income under typical use and management is outlined using market derived income and expenses. The capitalization rate is derived from the market, using actual data from similar properties and similar investment criteria.

The final process is correlation of the approaches and selection of the approach or approaches that most accurately represent market value.

The Cost Approach is considered, however, is not utilized in this appraisal assignment due to the subject’s age and the subjective nature of estimating depreciation from all causes. This valuation method is most applicable with newer

~ 5 ~ improvements. The subject building is an older structure that likely does suffer from the various forms of recognized depreciation, which are extremely difficult to accurately measure in buildings of this vintage. Therefore, the Cost Approach is given no further consideration in this assignment. The omission of the Cost

Approach does not prohibit credible valuation results for the property.

To adequately complete the Sales Comparison Approach, sales of other medical clinic buildings in the area are researched and analyzed. Of all the sales researched, those considered most representative of the subject are included in this analysis.

Adjustments are made to the comparable properties to reflect differences between them and the subject. For this analysis, sales of other similar types of property that have occurred within the past few years and located in the region are considered.

The property is currently owner occupied. To estimate a reasonable market rent for this subject, an analysis of other medical related clinic buildings which are being leased is required. This is the first step in necessary in completing the Income

Capitalization Approach, which also requires research and analysis of typical operating expenses and capitalization rates for similar types of properties that are being leased.

The final step in the reconciliation process is to correlate the various valuation approaches utilized into Fee Simple market value opinion for the property being appraised.

There are no hypothetical conditions associated with this appraisal assignment.

The property is valued based on its current As Is condition as of the date of observation.

The only extraordinary assumption included in this report is there are no adverse environmental conditions on or around the property that would have a negative impact on the overall utility, and hence value. Any deviation from this extraordinary assumption may have a significant effect on the market value opinion stated in this report.

As a result of the recent COVID-19 virus, the market’s reaction to this pandemic has been evaluated. After discussions with local and regional market participants in this type of property, there is insufficient data…