CTR054964_Contractor_Proposal.pdf

Procurement

OFFER AND ACCEPTANCE

Solicitation No: BPM002912 Available online at https://app.az.gov

Rev 04/2020

OFFER

TO THE STATE OF ARIZONA:

The undersigned hereby offers and agrees to perform in compliance with all terms, conditions, specifications and amendments of this solicitation and any written exceptions in the offer. Signature also acknowledges receipt of all pages indicated in the Table of Contents.

Offeror (Company) Name Signature of Person Authorized to Sign Offer Dennis L. Lopez & Associates, LLC

Address Printed Name Date

8631 South Priest Drive, Suite 103

Dennis L. Lopez 11-3-2020

City State Zip Title Tempe, Arizona 85284

Managing (Sole) Member

Email Address Phone Number dennis@lopezappraisal.com 480-838-7332

Company Email Address Fax Number dennis@lopezappraisal.com NA

By signature in the Offer section above, the Offeror certifies that the submission of the Offer did not involve collusion or other anticompetitive practices.

ACCEPTANCE OF OFFER (FOR DEPARTMENT USE ONLY)

The Contractor is now bound to perform based upon Contract Number ____________________________including all terms, conditions, specifications, amendments, etc., and the Contractor's offer as accepted by the state.

The Contractor is hereby cautioned not to commence any billable work or provide any material, service or construction under this contract until contractor receives a purchase order document.

State of Arizona

Effective this day of 20

Procurement Officer Awarded Date https://app.az.gov/

PARTICIPATION IN BOYCOTT OF ISRAEL

SPO Form 205 (rev 10-2019)

Boycott of Israel Disclosure Please note that if any of the following apply to this Solicitation, Contract, or Contractor, then the Offeror shall select the

“Exempt Solicitation, Contract, or Contractor” option below:

The Solicitation or Contract has an estimated value of less than $100,000;

Contractor is a sole proprietorship;

Contractor has fewer than ten (10) employees; OR

Contractor is a non-profit organization.

Pursuant to A.R.S. §35-393.01, public entities are prohibited from entering into contracts “unless the contract includes a written certification that the company is not currently engaged in, and agrees for the duration of the contract to not engage in, a boycott of goods or services from Israel.”

Under A.R.S. §35-393:

1. "Boycott" means engaging in a refusal to deal, terminating business activities or performing other actions that are intended to limit commercial relations with entities doing business in Israel or in territories controlled by Israel, if those actions are taken either:

(a) Based in part on the fact that the entity does business in Israel or in territories controlled by Israel.

(b) In a manner that discriminates on the basis of nationality, national origin or religion and that is not based on a valid business reason.

2. "Company" means an organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company or other entity or business association, including a wholly owned subsidiary, majority-owned subsidiary, parent company or affiliate, that engages in for-profit activity and that has ten or more full-time employees.

5. "Public entity" means this State, a political subdivision of this State or an agency, board, commission or department of this State or a political subdivision of this State.

The certification below does not include boycotts prohibited by 50 United States Code Section 4842 or a regulation issued pursuant to that section. See A.R.S. §35-393.03.

In compliance with A.R.S. §§35-393 et seq., all offerors must select one of the following:

The Company submitting this Offer does not participate in, and agrees not to participate in during the term of the contract, a boycott of Israel in accordance with A.R.S. §§35-393 et seq. I understand that my entire response will become public record in accordance with A.A.C. R2-7-C317.

☐ The Company submitting this Offer does participate in a boycott of Israel as described in A.R.S. §§35-393 et seq.

Exempt Solicitation, Contract, or Contractor.

Indicate which of the following statements applies to this Contract:

☐ Solicitation or Contract has an estimated value of less than $100,000;

☐ Contractor is a sole proprietorship;

☐ Contractor has fewer than ten (10) employees; and/or

☐ Contractor is a non-profit organization.

Company Name Signature of Person Authorized to Sign

Address Printed Name

8631 South Priest Drive, Suite 103

Dennis L. Lopez

City State Zip Title

Tempe Arizona 85284 Managing (Sole) Member

ADOT CONFIDENTIALITY AND TRADE SECRETS

Rev 04/2020

All materials submitted as part of a response to a solicitation are subject to Arizona public records law and will be disclosed if there is an appropriate public records request at the time of or after the award of the contract.

Recognizing there may be materials included in a solicitation response that is proprietary or a trade secret, a process is set out in A.A.C. R2-7-103 (attached) that will allow qualifying materials to be designated as confidential and excluded from disclosure. For purposes of this process the definition of “trade secret” will be the same as that set out in A.A.C. R2-7-101(52).

This form must be completed and returned with the response to the solicitation and any supporting information to assist the State in making its determination as to whether any of the materials submitted as part of the solicitation response should be designated confidential because the material is proprietary or a trade secret and therefore not subject to disclosure.

All offerors must select one of the following:

X My response does not contain proprietary or trade secret information. I understand that my entire response will become public record in accordance with A.A.C. R2-7-C317.

My response does contain trade secret information because it contains information that:

1. Is a formula, pattern, compilation, program, device, method, technique or process, AND

2. Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; AND

3. Is the subject of efforts by myself or my organization that are reasonable under the circumstances to maintain its secrecy.

Please note that failure to attach an explanation may result in a determination that the information does not meet the statutory trade secret definition. All information that does not meet the definition of trade secret as defined by A.A.C. R2-7-101(52) will become public in accordance with A.A.C. R2-7-C317. The State reserves the right to make its own determination of Proposer’s trade secret materials through a written determination in accordance with A.A.C. R2-7-103.

If the State agrees with the proposer’s designation of trade secret or confidentiality and the determination is challenged, the undersigned hereby agrees to cooperate and support the defense of the determination with all interested parties, including legal counsel or other necessary assistance.

By submitting this response, proposer agrees that the entire offer, including confidential, trade secret and proprietary information may be shared with an evaluation committee and technical advisors during the evaluation process. Proposer agrees to indemnify and hold the State, its agents and employees, harmless from any claims or causes of action relating to the State’s withholding of information based upon reliance on the above representations, including the payment of all costs and attorney fees incurred by the State in defending such an action.

8631 South Priest Drive, Suite 103 Dennis L. Lopez

Tempe Arizona 85284 Managing (Sole) Member

ADOT CONFIDENTIALITY AND TRADE SECRETS

Rev 04/2020

R2-7-103. Confidential Information

A. If a person wants to assert that a person's offer, specification, or protest contains a trade secret or other proprietary information, a person shall include with the submission a statement supporting this assertion. A person shall clearly designate any trade secret and other proprietary information, using the term "confidential". Contract terms and conditions, pricing, and information generally available to the public are not considered confidential information under this Section.

B. Until a final determination is made under subsection (C), an agency chief procurement officer shall not disclose information designated as confidential under subsection (A) except to those individuals deemed by an agency chief procurement officer to have a legitimate state interest.

C. Upon receipt of a submission, an agency chief procurement officer shall make one of the following written determinations:

1. The designated information is confidential and the agency chief procurement officer shall not disclose the information except to those individuals deemed by the agency chief procurement officer to have a legitimate state interest;

2. The designated information is not confidential; or

3. Additional information is required before a final confidentiality determination can be made.

D. If an agency chief procurement officer determines that information submitted is not confidential, a person who made the submission shall be notified in writing. The notice shall include a time period for requesting a review of the determination by the state procurement administrator.

E. An agency chief procurement officer may release information designated as confidential under subsection (A) if:

1. A request for review is not received by the state procurement administrator within the time period specified in the notice; or

2. The state procurement administrator, after review, makes a written determination that the designated information is not confidential.

ADOT LOBBYING CERTIFICATE

SOLICITATION NO: BPM002912 Available online at https://appstate.az.gov/

ARIZONA DEPARTMENT OF TRANSPORTATION

LOBBYING CERTIFICATION

CERTIFICATION FOR FEDERAL AID CONTRACTS

Applies to: Federal-aid contractors, and consultants, as well as lower tier sub-contractors and sub-consultants

The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:

(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000, and that all such sub recipients shall certify and disclose accordingly.

November 3, 2020

SIGNATURE DATE

TITLE

Not applicable for Dennis DISCLOSURE OF LOBBYING ACTIVITIES L. Lopez or Dennis L. Lopez Complete this form to disclose lobbying activities pursuant to 31 U.S.C. 1352

& Associates, LLC, as neither has been (See next page for public burden disclosure.)

Involved in lobbying activities

1. Type of Federal Action:

2. Status of Federal Action:

3. Report type:

a. Contract

b. Grant

c. Cooperative agreement

d. Loan

e. loan guarantee

f. loan insurance

a. bid/offer/application

b. initial award

c. post-award

a. initial filing

b. material change

For Material Change Only:

year quarter date of last report

4. Name and Address of Reporting Entity:

Prime Subawardee

5. If Reporting in No. 4 is a Subawardee, Enter Name and

Address of Prime:

Congressional District, if known: Congressional District, if known:

6. Federal Department Agency:

7. Federal Program Name/Description:

CDFA Number, if applicable:

8. Federal Action Number, if known:

9. Award Amount, if known:

10.a. Name and Address of Lobbying Entity

(if individual, last name, first name, MI):

b. Individuals Performing Services

(including address if different from No. 10a)

(last name, first name, MI):

11. Amount of Payment (check all that apply):

13. Type of Payment (check all that apply):

actual planned

a. retainer

b. one-time fee

c. commission

d. contingent fee

e. deferred

f. other, specify

12. Form of Payment (check all that apply):

a. cash

b. in-kind; specify nature value

14. Brief Description of Services Performed or to be Performed and Date(s) of Service, including officer(s), employee(s), or Member(s) contacted, for Payment indicated in Item 11:

(attach Continuation Sheet(s) SF-LLL-A, if necessary)

15. Continuations Sheet(s) SF-LLL-A attached Yes No

16, Information requested through this form is authorized by title 31 U..S.C. section

1352. This disclosure of lobbying activities is a material representation of fact upon which reliance was placed by the ties above when this transaction was made or entered into. This disclosure is required pursuant to 31 U.S.C. 1352.

This information will be reported to the Congress semi-annually and will be available for public inspection. Any person who fails to file the required disclosure shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

Signature:

Print Name:

Dennis L. Lopez

Title:

Telephone No.: 480-838-7332 Date: 11-3-2020

Federal Use Only

Authorized for Local Reproduction

Standard Form - LLL

INSTRUCTIONS FOR COMPLETION OF SF-LLL, DISCLOSURE OF LOBBYING ACTIVITIES

This disclosure form shall be completed by the reporting entity, whether subawardee or prime Federal recipient, at the initiation or receipt of a covered Federal action, or a material change to a previous filing, pursuant to title 31 U.S.C. section 1352. The filing of a form is required for each payment or agreement to make payment to any lobbying entity for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with a covered Federal action. Use the SF-LLL-A Continuation Sheet for additional information if the space on the form is inadequate. Complete all items that apply for both the initial filing and material change report. Refer to the implementing guidance published by the Office of Management and Budget for additional information.

1. Identify the type of covered Federal action for which lobbying activity is and/or has been secured to influence the outcome of a covered Federal action.

2. Identify the status of the covered Federal action.

3. Identify the appropriate classification of this report. This is a follow-up report caused by a material change to the information previously reported, enter the year and quarter in which the change occurred. Enter the date of the last previously submitted report by this reporting entity for this covered Federal action.

4. Enter the full name, address, city, state and zip code of the reporting entity. Include Congressional District, if known. Check the appropriate classification of the reporting entity that designates if it is, or expects to be, a prime or subaward recipient. Identify the tier of the subawardee, e.g., the first subawardee of the prime is the 1st tier. Subawards include but are not limited to subcontracts, subgrants and contract awards under grants.

5. If the organization filing the report in item 4 checks "Subawardee", then enter the full name, address, city, state and zip code of the prime Federal recipient. Include

Congressional District, if known.

6. Enter the name of the Federal agency making the award or loan commitment. Include at least one organizational level below agency name, if known. For example, Department of Transportation, United States Coast Guard.

7. Enter the Federal program name or description for the covered Federal action (item 1). If known, enter the full Catalog of Federal Domestic Assistance (CFDA) number for grants, cooperative agreements, bans, and loan commitments.

8. Enter the most appropriate Federal identifying number available for the Federal action identified in hem 1 (e.g., Request for Proposal (RFP) number; Invitation for Bid

(IFB) number; grant announcement number; the contract, grant, or ban award number; the application/proposal control number assigned by the Federal agency).

Include prefixes, e.g., "RFP-DE-90-001".

9. For a covered Federal action where there has been an award or loan commitment by the Federal agency, enter the Federal amount of the award/loan commitment for the prime entity identified in item 4 or 5.

10. (a) Enter the full name, address, city, state and zip code of the lobbying entity engaged by the reporting entity identified in hem 4 to influence the covered

Federal action.

(b) Enter the full names of the individual(s) performing services, and include full address if different from 10 (a). Enter Last Name, First Name, and Middle Initial (Ml).

11. Enter the amount of compensation paid or reasonably expected to be paid by the reporting entity (item 4) to the lobbying entity (item 10). Indicate whether the payment has been made (actual) or will be made (planned). Check all boxes that apply. If this is a material change report, enter the cumulative amount of payment made or planned to be made.

12. Check the appropriate box(es). Check all boxes that apply. If payment is made through an in-kind contribution, specify the nature and value of the in-kind payment.

13. Check the appropriate box(es). Check all boxes that apply. If other, specify nature.

14. Provide a specific and detailed description of the services that the lobbyist has performed, or will be expected to perform, and the date(s) of any services rendered.

Include all preparatory and related activity, not just time spent in actual contact with Federal officials. Identify the Federal official(s) or employee(s) contacted or the officer(s), employee(s), or Member(s) of Congress that were contacted.

15. Check whether or not a SF-LLL-A Continuation Sheet (s) is attached.

16. The certifying official shall sign and date the form, print his/her name, title, and telephone number.

Public reporting burden for this collection of information is estimated to average 30 minutes per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget. Paperwork Reduction Project (0348~046), Washington, D.C. 20503.

DISCLOSURE OF LOBBYING ACTIVITIES

CONTINUATION SHEET

Reporting Entity:

None (not applicable)

Page of

ECS - Form 90-3

BUY AMERICA CERTIFICATION - FHWA

A bidder or offeror must submit the appropriate Buy America certification (below) with all bids or offers on FHWA funded contracts, except those subject to a general waiver. Bids or offers that are not accompanied by a completed Buy America certification must be rejected as nonresponsive. This requirement applies to lower tier subcontractors.

Certification requirement for procurement of steel, iron, or manufactured products.

Certificate of Compliance with 23 U.S.C 313 - The bidder or offeror hereby certifies that it will meet the requirements of 23 USC 313 and the applicable regulations in 23 CFR 635.410

Signature______ ______________________________ Date ___11-3-2020__________

Company Name___Dennis L. Lopez & Associates, LLC______________________________________

Title _____Managing (Sole) Member____________________________________________________

PRICE INCREASE PERCENTAGES

Rev. 04/2020

The offeror should use the space below to identify the maximum price increase percentage that they may want to request at the time of renewal if ADOT exercises its option per the applicable provisions under any resultant contract(s).

1st Renewal Period ________5___________% Maximum Increase

2nd Renewal Period _______10___________% Maximum Increase

3rd Renewal Period _______ 15____________% Maximum Increase

4th Renewal Period _______ 20___________% Maximum Increase

The offeror is cautioned that each renewal period’s increase percentage shall be computed against the ORIGINAL contract price. If information is not provided in the space above, prices shall remain the same as the original contract term. Please see the following example for further clarification.

Example: If the offeror anticipates requesting a 2% increase at each renewal period per Special Terms and Conditions, they should enter 2%, 4%, 6%, and 8% in the attachment. Each percentage increase is calculated using the original contract price.

See example in table below.

Renewal Period

% Maximum Increase from Attachment

Original Contract Price

Maximum Increase Allowed

Maximum Contract Price

1 2% $100.00 $2.00 $102.00

2 4% $100.00 $4.00 $104.00

3 6% $100.00 $6.00 $106.00

4 8% $100.00 $8.00 $108.00

Furthermore, the offeror is advised that the State of Arizona does not automatically grant any increase when renewing the contract. If an increase is requested, documentation of need must be provided at the time of renewal.

Two Sample Appraisal Reports Completed within the Last 10 Years

1) Eminent Domain Appraisal Report – 3 Approaches to Value – Complete Acquisition

2) Eminent Domain Appraisal Report – 2 Approaches to Value – Partial Acquisition

I, , performed the primary appraisal analyses and determined the final valuation and compensation conclusions in this submitted report.

PROJECT: 060 MA 143/H848501R

HIGHWAY: US 60

SECTION: Bell Road TI

PARCEL NO.: 7-11811

OWNER: Francisco and Marie A. Oroz, et al.

ASSESSOR'S PARCEL NOS.: 503-66-055, 056

ADDRESS/LOCATION: 13420 West Bell Road, northwest corner of Bell Road and 134th Drive, Surprise, Arizona

TYPE: Multi-tenant Retail Shopping Center

EFFECTIVE DATE OF

THE APPRAISAL: September 10, 2014

CLIENT: Mr. Jim Stoleson R/W Project Management Section Arizona Department of Transportation 205 South 17th Avenue, Suite 612E Phoenix, Arizona 85007

APPRAISER: Dennis L. Lopez, MAI, SRA

OUR FILE NO.: 140505

September 22, 2014

Mr. Jim Stoleson R/W Project Management Section Arizona Department of Transportation 205 South 17th Avenue, Suite 612E Phoenix, Arizona 85007

Re: Assignment: Estimate Market Value of the Undivided Fee Simple Interest

Project: 060 MA 143/H848501R Highway: US 60 Section: Bell Road TI Parcel No.: 7-11811 APNs: 503-66-055, 056 Owner: Francisco and Marie A. Oroz, et al.

Address/Location: 13420 West Bell Road; northwest corner of Bell Road and 134th

Drive, Surprise, Arizona Our File No.: 140505

Dear Mr. Stoleson:

As you requested, I have inspected the above-referenced property for the purpose of estimating the market value of the fee simple interest in the subject property as of the effective date of the appraisal (date of valuation), September 10, 2014. The intended use of the appraisal will be for eminent domain purposes. I expect that the intended user of the appraisal will be you (the client) and others involved with this project.

My opinion of market value assumed a cash transaction or one involving financing at market terms after a reasonable exposure time as of the effective date of the appraisal.

The opinion expressed was subject to the underlying assumptions and limiting conditions, definitions and certification set forth in the body of the accompanying appraisal report. The appraisal and report were prepared in conformity with the appraisal guidelines of Arizona Department of Transportation and the Uniform Standards of Professional Appraisal Practice, 2014-2015 (USPAP) and the Uniform Relocation Assistance & Real Property Acquisition Policies Act (“Uniform Act”) (49 CFR Part 24) and amendments.

Mr. Jim Stoleson September 22, 2014

During the course of the appraisal and analysis, I became thoroughly familiar with the subject property and its location. Documented market data from the applicable market segment to which the subject belongs were analyzed and I spoke with well-informed persons familiar with current real estate values, all for the purpose of estimating the market value of this property.

Based on the information found in my investigation and by my professional analysis as presented in the accompanying appraisal report, my opinion of the market value of the undivided fee simple interest in the subject property as of the effective date of the appraisal, September 10, 2014, was:

TWO MILLION THREE HUNDRED THOUSAND DOLLARS

Allocation:

Land $ 575,000 Improvements $1,725,000 $2,300,000

My opinion of market value was subject to a special limiting condition stated on page 15 of the accompanying report.

The opportunity to assist you has been appreciated.

Respectfully submitted, DLL:wjg

PART I - INTRODUCTION

Underlying Assumptions and Limiting Conditions Summary of Important Facts and Opinions Subject Property Photographs Scope of Work Special Limiting Conditions Description of the Project Property Identification Legal Description Ostensible Owner Ownership and Marketing History Owner Contact and Property Inspection Leasehold Interest Purpose of the Appraisal Intended Use and Users of the Appraisal Definitions Date of Inspection Effective Date of the Appraisal Date of the Report

PART II - FACTUAL DATA

Regional Analysis Neighborhood Analysis Site Analysis Improvement Analysis Zoning and Legal Restrictions Analysis Real Estate Tax and Assessment Analysis

PART III - ANALYSIS AND CONCLUSIONS

Highest and Best Use Analysis Valuation Process

The Cost Approach Vacant Land Comparables Factors Affecting Marketability and Discussion of Adjustments Opinion of Market Value

Exposure Time

The Sales Comparison Approach Improved Comparables Factors Affecting Marketability and Discussion of Adjustments Opinion of Market Value Exposure Time

The Income Approach Rent Comparables Opinion of Market Rent Operating Expense Identification and Analysis Net Operating Income Direct Capitalization Opinion of Market Value 179

Reconciliation and Opinion of Market Value Exposure Time

Certification

Title Report

Letter of Notification Qualifications of the Appraiser

1. This report is the confidential and private property of the client and the appraiser.

Neither all nor any part of the contents of this report shall be conveyed to any person or entity, other than the appraiser's or firm's client, through advertising, solicitation materials, public relations, news, sales, or other media without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraiser or firm with which the appraiser is connected, or any reference to the Appraisal Institute or the MAI and SRA designations. Further, the appraiser or firm assumes no obligation, liability, or accountability to any third party. If this report is placed in the hands of anyone but the client, client shall make such party aware of all the assumptions and limiting conditions of the assignment.

2. Neither this report, nor any of its contents, may be used for the sale of shares or similar units of ownership in the nature of securities, without specific prior approval of the appraiser. No part of this appraisal may be reproduced in any promotional materials without the permission of the appraiser.

3. The information furnished by the property owner, agent, management or the client is assumed to be correct as received.

4. The appraiser is not responsible for the accuracy of the opinions furnished by others and contained in this report, nor is he responsible for the reliability of government data utilized in the report.

5. The title to the property is assumed to be marketable and free and clear of all liens.

6. The property is appraised as if owned in fee simple title without encumbrances, unless otherwise mentioned in this report.

7. The fee simple estate in the property contains the sum of all fractional interests which may exist.

8. The legal description obtained by the appraiser was assumed correct and descriptive of the subject property. No responsibility is assumed for the legal description provided or for matters including legal or title considerations. A survey and title report should be obtained to verify its accuracy.

9. No site survey was provided to the appraiser unless otherwise noted. It is assumed that the sources for dimensions and size relied upon are correct.

10. The utilization of the land by the improvements is assumed to be within the boundaries or property lines described and that no encroachments exist unless otherwise noted in the report.

11. No hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable were assumed to exist. No responsibility is assumed for such conditions or arranging engineering studies that may be required for their discovery.

12. Subsurface rights (mineral, oil, etc.) and their potential impact upon value were not considered in this appraisal, unless stated otherwise.

13. This appraisal assumes the subject property, as vacant or as improved, has no historical or archeological significance. The value estimate is predicated on the assumption that no such condition exists. Should the client have a concern over the subject's status, he or she is urged to retain the services of a qualified independent specialist to determine the extent of either significance, if any, and the cost to study the condition or the benefit or detriment such a condition brings to the property. The cost of inspection and study must be borne by the client or owner of the property. Should the development of the property be restricted or enhanced in any way, the appraiser reserves the right to modify the opinion of value indicated by the market.

14. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined and considered in the appraisal report.

15. This appraisal assumes the subject property complies with the requirements under the ADA, Americans With Disabilities Act. The appraisers are not qualified to detect each and every item of compliance or lack thereof. The value estimate is predicated on the assumption that there is no lack of compliance that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them.

Should the client have a concern over the subject's state of compliance, he or she is urged to retain the services of a qualified independent ADA specialist to determine the extent of compliance and the cost to bring the property into compliance if needed. The cost of inspection, study and compliance must be borne by the client or owner of the property. The cost could be deducted from the estimate of market value of the subject property if indicated by the market.

16. The subject property is assumed not to be in violation of any government regulations or laws pertaining to the environment.

17. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property.

The appraiser, however, is not qualified to detect such substances as asbestos, PCB transformers, urea-formaldehyde foam insulation, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (containing hazardous materials). Mold may be present in areas the appraiser cannot see. The value estimate is predicated on the assumption that there is no such material or growth on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them.

Should the client have a concern over the existence of such substances, he or she is urged to retain the services of a qualified independent environmental specialist to determine the extent of the contamination, if any, and the cost of treatment or removal. The cost of detection, treatment or removal and permanent storage must be borne by the client or owner of the property. This cost can be deducted from the estimate of market value of the subject property if requested by the client.

18. Responsible ownership and competent management is assumed to exist for the subject property.

19. The values assigned to the improvements, if shown in this report, are in proportion to the contribution they make to the value of the property as a whole. The separate estimates of value for the land and building must not be used in conjunction with any other appraisal and are invalid if so used, or if used separately.

20. All furnishings and equipment (or other personal property), except those specifically indicated and/or typically considered as a part of real property (under common accepted definitions) have been disregarded in this valuation. Only the real estate, as permanently affixed to the subject site, has been valued herein.

21. This report is not considered a legal document and the appraiser assumes no responsibility for matters of a legal nature except for his obligations under the contract to provide the appraisal and report.

22. The appraiser is not required to testify regarding this report in deposition or in court unless arrangements were previously made.

23. The appraiser cannot predict or evaluate the possible effects of future wage or price control actions of the government upon rental income or financing of the subject property; hence, it is assumed that no controls will apply which would nullify contractual agreements, thereby changing property values.

24. The appraiser did not base a conclusion or opinion of value on the following:

a. Racial, ethnic, or religious homogeneity of the inhabitants of an area or of a property

b. Racial, religious, and ethnic factors as predictors of value trends or price variance

c. Neighborhood trends analyzed upon stereotyped or biased presumptions relating to race, color, religion, sex, or national origin, or upon unsupported presumptions relating to the effective age or remaining life of the property being appraised or the life expectancy of the neighborhood in which it is located.

REGIONAL MAP

North

AERIAL PHOTOGRAPH

North

SUMMARY OF IMPORTANT FACTS AND OPINIONS

PROJECT: 060 MA 143/H848501R

PCN/PROJECT NO.: 060 MA 143

ITEM NO.: 7-11811

ASSESSOR’S PARCEL NOS.: 503-66-055, 056

OWNER: Francisco and Marie A. Oroz, et al.

ADDRESS/LOCATION: 13420 West Bell Road, northwest corner of Bell Road and 134th Drive, Surprise, Arizona

TYPE: Strip shopping center

OWNER CONTACT AND

PROPERTY INSPECTION: A letter of notification was sent to the owners on August

6, 2014. No response was received until August 14, 2014, when the owner’s property manager, Ms. Jenny Adams, Senior Property Manager, Kitchell Property Management, 602-212-6619, jadams@kitchell.com, e-mailed on August 14, 2014, promising to collect the information I had requested regarding the subject property, its rent roll and income and operating expense information. Mr. David Nevin, an owner representative, 415-827-5100, intervened on September 5, 2014, and denied me pertinent information regarding the existing leases, the attempt to lease the vacant space and historical income and operating expense information.

As such, I had to rely on market information with which to estimate the subject’s market value. On September 10, 2014, I met Ms. Adams at the property and she allowed an exterior and interior inspection. She provided no other information.

PURPOSE AND INTENDED

USE AND USER: The purpose of this appraisal was to estimate the market value of the fee simple interest in the subject property, as of the effective date of the appraisal, September 10, 2014. The intended use of the appraisal will be for eminent domain purposes. I expect that the intended user will be you (the client) and others involved with this project.

SITE AREA: 60,505 square feet or 1.389 net acres (per Assessor)

GROSS AND LEASABLE

BUILDING AREA (GBA): 15,070 square feet GBA and LBA (per measurement)

LAND-TO-BUILDING RATIO: 4.01:1 (60,505 s.f. of NSA ÷ 15,070 s.f. of GBA/LBA)

FLOOR AREA RATIO: 0.25 (15,070 s.f. of GBA/LBA ÷ 60,505 s.f. of NSA)

ZONING: C-3, Regional Commercial

IMPROVEMENTS: Multi-tenanted 15,070 square foot strip center and associated improvements built in 2002

HIGHEST AND BEST USE:

As Vacant Commercial/retail development As Improved Existing use

INDICATIONS OF MARKET

VALUE:

Cost Approach $2,230,000 Sales Comparison Approach $2,250,000 Income Approach $2,350,000

FINAL OPINION OF

MARKET VALUE OF THE

UNDIVIDED FEE SIMPLE

INTEREST: $2,300,000 or $152.62 per square foot of GBA/LBA

(package price)

My opinion of market value was subject to a special limiting condition stated on page 15.

EXPOSURE TIME: 6 months

TYPE OF REPORT: Appraisal Report

DATE OF INSPECTION: September 10, 2014

EFFECTIVE DATE OF THE

APPRAISAL: September 10, 2014 (date of valuation)

DATE OF THE REPORT: September 22, 2014 (transmittal of the report)

APPRAISER: Dennis L. Lopez, MAI, SRA

8631 South Priest Drive, Suite 103 Tempe, Arizona 85284 480-838-7332 dennis@lopezappraisal.com

SUBJECT PROPERTY PHOTOGRAPHS

Subject Looking Northwest from the Intersection of Bell Road and 134th Drive

Subject Looking Northeast from Bell Road

Subject Looking Southeast from the Northwest Corner and South from the North Property Line

Bell Road Looking West and East - Subject on Right and Left

134th Drive Looking North and South – Subject on Left and Right

Shared West Driveway Looking North and South – Subject on Right and Left

South and North Parking Lots with Entrance from West Driveway

Shared Rear Driveway Looking East and West

Shared 3 Parking Spaces, Drainage and Driveway Looking West from 134th Drive

Business Identification Sign

Trash Container Enclosures

Scope of work is defined by USPAP as follows:

The type and extent of research and analyses in an assignment.

This written appraisal report leads the reader through the appraisal of a parcel of real property in Surprise, Arizona. I provided an appraisal report which provides all the introduction, description, data, analysis and conclusions that the reader requires to understand the opinion of market value. The appraisal and report adhere to requirements of the Uniform Standards of Professional Appraisal Practice, 2014-2015 (USPAP) and the Uniform Relocation Assistance & Real Property Acquisition Policies Act (“Uniform Act”).

This appraisal report has an accompanying workfile. A workfile is defined by USPAP as:

Documentation necessary to support an appraiser’s analyses, opinions and conclusions

Thus, where my description, data, analysis and conclusions are summarized in the report, my workfile contains supporting documentation. The scope of work included an analysis of the physical and legal characteristics of the subject, the influences of the surrounding region and neighborhood on the property, and supply and demand in the subject's market segment which led to my opinion of highest and best use.

Once my opinion of highest and best use was established, I studied recent sales and current listings of comparable properties in the subject’s market segment and I spoke with knowledgeable market participants who are familiar with properties like the subject. How the market viewed the subject was critical to my supported opinion of market value and a reasonable exposure time. Their comments also helped provide further support for quantitative and qualitative sales adjustments.

The appraisal documented in this report supported a final opinion of market value by the Sales Comparison Approach, the Income Approach and the Cost Approach. Sufficient data were contained within this report for an adequate understanding of the data considered, as well as the methodology and reasoning utilized to reach my opinion of market value.

Assumptions and limiting conditions plus my certification set forth the boundaries in which my opinion of market value was contained. William “Bill” Gasson provided significant assistance with the appraisal by researching and confirming market data, assembling the report and assisting in the estimation of market value.

Extraordinary Assumptions

According to USPAP 2014-2015, 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 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. My opinion of market value was not subject to any extraordinary assumptions.

Hypothetical Conditions

According to USPAP 2014-2015, a hypothetical condition is defined as follows:

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 assume conditions 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. My opinion of market value was subject to the following hypothetical condition:

Project Influence - In forming my opinion of value, I have disregarded any decrease or increase in the market value of the real property to be acquired, prior to the date of valuation, caused by the project for which the property is to be acquired, or by the likelihood that the property would be acquired for such project, other than that due to physical deterioration within the reasonable control of the owner.

The use of this special limiting condition was required to develop a reasonable and credible analysis. Its use may have affected the assignment results.

The Arizona Department of Transportation requires right-of-way for the construction of the US 60 Grand Avenue/Bell Road interchange. The subject property is required in its entirety for the project.

The property appraised was first studied for ownership and common use characteristics which defines the "whole" or "larger" parcel for study purposes. For eminent domain valuation purposes, the whole parcel is defined by the following:

In governmental land acquisitions, the tract or tracts of land that are under the beneficial control of a single individual or entity and have the same, or an integrated, highest and best use. Elements for consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use. In most states unity of ownership, contiguity, and unity of use are the three conditions that establish the larger parcel for the consideration of severance damages. In federal and some state cases, however, contiguity is sometimes subordinated to unitary use.1

The whole parcel was defined to be a 60,505-square foot or 1.389-acre parcel of land at the northwest corner of Bell Road and 134th Drive in Surprise, Arizona, as it met the three tests. The land was improved with a multi-tenanted 15,070-square foot commercial/retail strip center and supporting site improvements built in 2002. The property was referred to as the "subject" in the body of the report.

Lots 2 and 3, N.W.C. of 134th DRIVE AND BELL ROAD

According to the title report and Assessor’s records, the property was owned by Francisco and Marie A. Oroz, et al.

According to public records, the property has been under the current ownership for over five years. My research found no evidence that the subject whole parcel was listed for sale in the past five years.

A letter of notification was sent to the owners on August 6, 2014. No response was received until August 14, 2014, when the owner’s property manager, Ms. Jenny Adams, Senior Property Manager, Kitchell Property Management, 602-212-6619, jadams@kitchell.com, e-mailed on August 14, 2014, promising to collect the information I had requested regarding the subject property, its rent roll and income and operating expense information. Mr. David Nevin, an owner representative, 415-827-5100, 1 Appraisal Institute, The Dictionary of Real Estate Appraisal, Fifth Edition, (Chicago, Illinois: Appraisal Institute, 2010), page

160.

intervened on September 5, 2014, and denied me pertinent information regarding the existing leases, the attempt to lease the vacant space and historical income and operating expense information. As such, I had to rely on market information with which to estimate the subject’s market value. On September 10, 2014, I met Ms. Adams at the property and she allowed an exterior and interior inspection. She provided no other information.

The building is is built out for five tenancies. Neither the property manager nor the owner representative provided a full rent roll, copies of leases, and full income and operating expense history. Mr. Nevin provided only the following:

CSK Auto/Checker #413 occupies Suite 100 and leases 7,000 square feet.

Perfection Communications occupies Suite 110 and leases 1,600 square feet.

Enterprise Leasing occupies Suite 120 and leases 1,800 square feet.

Money Mart occupies Suite 130 and leases 1,780 square feet.

Suite 140 was previously occupied by Octane Lounge that leased 3,000 square feet but has been vacant since late July, 2014.

Please note that the individual suite sizes he reported total 15,180 square feet. My measurement of the building and calculation of size indicated a total of 15,070 square feet, or 110 square feet less.

According to the rent roll, the total monthly rent including the now vacant Octane Lounge was $23,408, or $18.50 per square foot per year, on a triple net basis (assumed), based on the total square footage indicated on the rent roll of 15,180 square feet.

Mr. Nevin indicated that triple net reimbursement charges (operating expenses) collected from the tenants were $3,800 per month, $45,600 per year, or $3.00 per square foot per year, using the 15,180 square foot building size indicated on the rent roll.

It should be noted that Mr. Nevin declined to provide me with lease or any other income and expense information.

The purpose of this appraisal was to estimate the market value of the undivided fee simple interest in the subject property as of the effective date of the appraisal.

The written report is the vehicle which transmits the data and reasoning to the reader in support of my opinion of market value. The intended use of the appraisal will be for eminent domain purposes. I expect that the intended user will be you (the client) and others involved in this project.

Market Value

"Market Value" means the most probable price estimated in terms of cash in United States dollars or comparable market financial arrangements which the property would bring if exposed for sale in the open market, with reasonable time allowed in which to find a purchaser, buying with knowledge of all of the uses and purposes to which it was adapted and for which it was capable.2

Fee Simple Interest

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.3

Exposure Time

The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal (Comment: a retrospective estimate based on an analysis of past events assuming a competitive and open market.) 4

September 10, 2014

September 10, 2014 (date of valuation)

September 22, 2014 (date of transmittal)

2 Arizona Revised Statutes 28-7091 3 Appraisal Institute, The Dictionary of Real Estate Appraisal, Fifth Edition, (Chicago, Illinois: Appraisal Institute, 2010), page

78.

4 Uniform Standards of Appraisal Practice 2014-2015, Appraisal Standards Board, Definitions, page U-2.

As real estate is fixed in location, it is important to analyze the external forces, which affect its value. This section introduces the four interrelated forces that have both a direct and indirect effect upon the marketability of real estate in metropolitan Phoenix:

Environmental Forces: This category of market forces includes an analysis of topography, climate, land-use patterns, water availability, transportation and street patterns as well as constraints on future growth and development potential.

Economic Forces: This category includes an analysis of population and employment trends, wage levels, local market trends (including supply/demand characteristics of major market segments), availability of financing, and the availability of goods and services.

Governmental Forces: This…