CTR054970_Contractor_Proposal.pdf

ADOT LOBBYING CERTIFICATE

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

Procurement

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.

10/19/2020

SIGNATURE DATE

President

TITLE

DISCLOSURE OF LOBBYING ACTIVITIES

Complete this form to disclose lobbying activities pursuant to 31 U.S.C. 1352

(See next page for public burden disclosure.)

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:

Title:

Telephone No.:

Date:

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:

Page of

ECS - Form 90-3

BUY AMERICA CERTIFICATION - FHWA

Solicitation No: BPM002912 Available online at

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

10/19/2020 Signature________________________________________________ Date _____________________

Company Name______Paul Hendricks Real Estate Appraisal & Counseling ____

Title _______________President______________________________________________________

PRICE INCREASE PERCENTAGES

Solicitation No: BPM002912 Available online at

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 __________________2% Maximum Increase

2nd Renewal Period __________________4% Maximum Increase

3rd Renewal Period __________________6% Maximum Increase

4th Renewal Period __________________8% 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.

Paul Hendricks <pdhend18@gmail.com>

Bidders List for Paul Hendricks Real Estate Appraisal & Counseling 1 message

ADOT Business Engagement and Compliance Office <AZUTRACS-Support@azdot.gov> Fri, Oct 16, 2020 at 3:34 PM To: pdhend18@gmail.com Cc: ContractorCompliance@azdot.gov

Paul Hendricks Real Estate Appraisal & Counseling, AZUTRACS Number: 10832 has submitted a Bidder/Proposer list for BPM002912 on 08/14/2019 at 3:34 PM MST (UTC - 07:00).

Paul Hendricks Real Estate Appraisal & Counseling submitted a blank bidders/proposers list. This means that they did not list any firms that they reached out to or were contacted by during the preparation of this bid/proposal. NOTE:

Subbing out work is encouraged, where applicable. Under some circumstances, no subbing opportunities are available.

Bank of the West 20-2030-03-1, 2020159 6571 E Tanque Verde, Page 1

PAUL HENDRICKS REAL ESTATE APPRAISAL & COUNSELING

Appraisal Service, Litigation Support, Counseling

Voice & Fax (520) 325-6512 Email pdhend@cox.net

I, (Paul Hendricks), performed the primary appraisal analysis and determined the final valuation and compensation conclusions (if applicable) in this submitted appraisal Report.

Category: General Appraisal/Review Appraisal

COVER PAGE

APPRAISAL REPORT

An Estimate of Market Value of Site and Improvements located at 6571 E Tanque Verde Road, Tucson, Arizona 85715

As of August 12, 2020

Borrower: William Birchard Remodeling LLC Tax Parcel: 133-16-008A

Sec. 6, T14S, R15E

Prepared For Use By Bank of the West, 2050 South Downing Street, Denver, CO 80210

Attention: Timothy J. Lindsey, MAI And U.S. Small Business Administration

Project 20-2030-03-01

Appraisal Prepared By

PAUL HENDRICKS REAL ESTATE APPRAISAL & COUNSELING

Paul D. Hendricks, MAI

Arizona Certified General Real Estate Appraiser 30197

6571 E Tanque Verde, Page 2

HENDRICKS APPRAISAL & COUNSELING

PAUL HENDRICKS REAL ESTATE APPRAISAL & COUNSELING

Appraisal Service, Litigation Support, Counseling

Voice & Fax (520) 325-6512 Email PaulHendricksMAI@gmail.com

Letter of Transmittal

August 20, 2020 Mr. Timothy J. Lindsey, MAI Bank of the West 2050 South Downing Street Denver, CO 80210

Re: Opinion of market value of improvements and site known as 6571 E Tanque Verde Rd.

Tucson, AZ

In response to your request I have completed an analysis of the above referenced property; this letter of transmittal is part of that appraisal report. This report conforms to Uniform Standards of Professional Appraisal Practice (USPAP).

Problem Identification: The purpose of the appraisal is to form an opinion of market value of the As Is Fee Simple interest of the described subject property. The intended use is for underwriting of a federally regulated loan as well as for underwriting of an SBA federally insured loan. Effective date of the appraisal is August 12, 2020, the date of site visit.

Relevant subject characteristics: Site size is indicated to be 12,030sf per assessor’s record. The property is zoned C-2, City of Tucson, Commercial Zone, permitting general commercial uses that serve the community and region. The site is improved with an office/retail use building of approximately 1,839sf an initial section built in 1962, there are related site improvements. The property is currently vacant, purchased for owner occupancy.

Assignment conditions: The property is currently under contract to sell at $273,000 (with $3,000 seller contribution to buyer’s closing costs). Extraordinary assumptions, assessor’s record and plan indicates building size at 1,528sf; it appears that there was an addition/extension on the building front (south side) that was not picked up by the assessor. Per agent, the owner reports having had all permitted; It is an extraordinary assumption that the building area as described has been permitted or could be and thus would continue in the future. The use of this extraordinary assumption may have affected assignment results. Also, see standard limiting conditions and assumptions contained in the appendix.

My opinion of market value for the property as of August 12, 2020, is:

As Is, Fee Simple, Real Estate Only: $270,000.

Please call if you have any questions regarding the following appraisal report. Thank you for the opportunity to be of service.

Sincerely, Paul D. Hendricks, MAI Arizona Certified General Real Estate Appraiser 30197

6571 E Tanque Verde, Page 3

HENDRICKS APPRAISAL & COUNSELING

TABLE OF CONTENTS

COVER PAGE

Letter of Transmittal

TABLE OF CONTENTS

PREFACE & SUMMARY

PURPOSE OF THE APPRAISAL

INTENDED USE OF THE APPRAISAL

NTEREST(s) APPRAISED

PROPERTY IDENTIFICATION

MARKET VALUE DEFINED *

EXPOSURE PERIOD

MARKETING TIME

EFFECTIVE DATE OF APPRAISAL, REPORT DATE

APPRAISAL DEVELOPMENT AND REPORTING PROCESS (SCOPE)

PROPERTY OWNERSHIP; RECENT MARKETING HISTORY

AREA OVERVIEW

MARKET AREA (NEIGHBORHOOD) ANALYSIS

SITE DESCRIPTION

IMPROVEMENT ANALYSIS

HIGHEST AND BEST USE

Real Estate Markets; Market Analysis:

Market Interviews:

Highest and Best Use As Improved

VALUATION METHODOLOGY

COST APPROACH

SALES COMPARISON APPROACH

INCOME APPROACH

RECONCILIATION AND CONCLUSIONS

STATEMENT AND CERTIFICATION OF APPRAISER

APPENDIX

LIMITING CONDITIONS AND ASSUMPTIONS

SUBJECT PHOTOS & EXHIBITS

Floor Plan Replacement Cost Estimate (Building Only) Engagement-letter

CONSULTANT’S QUALIFICATIONS

6571 E Tanque Verde, Page 4

HENDRICKS APPRAISAL & COUNSELING

PREFACE & SUMMARY

APPRAISAL REFERENCE: 2020159 BOW 6571 E Tanque Verde

PROBLEM IDENTIFICATION: The following 7 parameters are considered, client, intended users, intended use, type of opinion, effective date, relevant subject characteristics and assignment conditions:

CLIENT: Bank of the West Attn: Mr. Timothy J Lindsey, MAI

APPRAISER: Paul D. Hendricks, MAI AZ Certified General Real Estate Appraiser 30197

PURPOSE, INTENDED USE: The purpose of the appraisal is to opine market value As Is, Fee Simple of the subject property described. The intended use is for underwriting of a federally regulated loan as well as for underwriting of an SBA federally insured loan.

INTENDED USERS: Bank of the West and US Small Business Administration

SUBJECT CHARACTERISTICS: The subject is vacant office/retail use; site size is indicated to be 12,030sf per assessor’s record, improved with a building of approximately 1,839sf and related site improvements. It is zoned C-2 Commercial Zone; Flood zone X.

TAX CODE: 113-16-008A

INTEREST CONSIDERED: See Below.

EFFECTIVE DATE OF

VALUATION: August 12, 2020

DATE OF APPRAISAL REPORT: August 20, 2020

TYPE OF APPRAISAL REPORT: Report

OPINIONS OF VALUE: $270,000 As Is, Fee Simple Market Value, Real Estate Only.

ASSIGNMENT CONDITIONS: The property is currently under contract to sell at $273,000 (with $3,000 seller contribution to buyer’s closing costs). There is an Extraordinary Assumption described in letter of transmittal; the use of this assumption may affect assignment results; additionally, please see standard limiting conditions and assumptions contained in the appendix.

6571 E Tanque Verde, Page 5

HENDRICKS APPRAISAL & COUNSELING

PURPOSE OF THE APPRAISAL

The purpose of the appraisal is to form an opinion of “As Is” market value of the fee simple of the subject property described.

INTENDED USE OF THE APPRAISAL

The opinion of value will be used by Bank of the West and US Small Business Administration for underwriting of a federally regulated loan as well as for underwriting of an SBA federally insured loan

NTEREST(s) APPRAISED

The Fee Simple Interest, defined as Fee Simple is defined as “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” and the easement interest, defined as “The right to use another’s land for a stated purpose.”

PROPERTY IDENTIFICATION

The subject parcel is described as being located at 6571 E Tanque Verde Road, Tucson, Arizona 85715.

Legal description as from assessor’s record is as follows:

Parcel# 133-16-008A: ELY PTN SW4 LOT 3 LYG N & ADJ TANQUE VERDE RD .28 AC SEC 6-14-15 (Pima County, Arizona

MARKET VALUE DEFINED *

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

(1) Buyer and seller are typically motivated;

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

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

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

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

Source: Rules and Regulations, Federal Register, Vol. 55, No. 165, Page 34696, as of Friday, August 24, 1990; CFR Federal Regulation 12 CFR, Part 1608, Uniform Appraisal Instructions to the Appraisers by the RTC, effective September 21, 1990, Title XI FIRREA (1989)

6571 E Tanque Verde, Page 6

HENDRICKS APPRAISAL & COUNSELING

EXPOSURE PERIOD

Exposure time, always presumed to precede the effective date of the appraisal, is defined as follows: “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; a retrospective estimate based upon an analysis of past events assuming a competitive and open market”.

Exposure time estimated from review of comparable sales and from discussions with active market participants is estimated for the subject property to be approximately 4 to 12 months.

MARKETING TIME

Marketing time is defined as follows:

1. The time it takes an interest in real property to sell on the market sub-sequent to the date of an appraisal.

2. Reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal; the anticipated time required to expose the property to a pool of prospective purchasers and to allow appropriate time for negotiation, the exercise of due diligence, and the consummation of a sale at a price supportable by concurrent market conditions.

Again, from analysis of the sales, discussions with market participants an opinion of marketing time for the property around 4 months to 12 months is considered reasonable.

EFFECTIVE DATE OF APPRAISAL, REPORT DATE

The effective date of the appraisal is August 12, 2020, the date of site visit. The transmittal date of the report is August 20, 2020.

APPRAISAL DEVELOPMENT AND REPORTING PROCESS (SCOPE)

In preparing this appraisal, the appraiser:

Received a request for appraisal and further information relating to problem identification including client and intended users, intended use, type of value and specific assignment instructions (see appendix).

Contacted the property contact to request additional information relative to the assignment and schedule property inspection.

Reviewed site plat, zoning and flood zone and topography maps, indicating physical suitability of the parcel.

Researched sales and rentals of similar properties with an emphasis on use, utility, zoning, size and location.

Visited the subject property on August 12, 2020, measuring improvements, verifying occupancies and developing relevant subject characteristics.

Inspected, by drive by all comparables used.

Attempted confirmation of comparable sales and rentals with a party familiar with the property/transaction (when confirmation was not available, public records/information was relied upon).

Applied the sales comparison, income and cost approaches to form an opinion of As Is market value of the subject property.

Completed a building replacement cost indication for the buildings.

Any other components of scope including the 7 parameters, client, intended users, intended use, type of opinion, effective date, relevant subject characteristics and assignment conditions are considered to be included in/as scope.

6571 E Tanque Verde, Page 7

HENDRICKS APPRAISAL & COUNSELING

PROPERTY OWNERSHIP; RECENT MARKETING HISTORY

According to preliminary title report, the property ownership is indicated to be Kathleen Michelle Corner, Trustee f the Corner Family Revocable Trust. The property is currently in escrow to sell at $273,000 (with $3,000 to be paid for purchaser’s closing costs); it has been listed on the market for sale since 8/28/2019 at $360,000, reduced to $330,000 1/9/2020 and then $300,000 6/22/2020; it became active contingent (in escrow) 7/6/2020 (313 days).

AREA OVERVIEW

The purpose of this section of the report is to identify and analyze the social, economic, governmental, and environmental forces that can influence property values in the vicinity of the subject. The primary area of influence is the neighborhood, defined as a group of complimentary land uses; a residential neighborhood may contain residential uses along with ancillary commercial uses that provide services for the residents. A district, on the other hand, has one predominate land use such as apartments, commercial, industrial, or agricultural.

ARIZONA

Arizona is in the southwestern area of the United States within the Sunbelt Region and ranks sixth in the nation in terms of size with 113,417 square miles. The state can be divided into three geographical areas, each with its own distinct topography and climate. The northeastern portion of the state is a high plateau, which tends to be cool and dry. Most of this area is within the boundaries of the Navajo Nation, the largest Native American reservation in the United States.

The mountainous region, extending diagonally across the state from northwest to southeast, offers cool summertime temperatures and winter sports opportunities, attracting visitors to this area year round. The remaining half of the state, south and west of the mountainous region, consists of desert valleys divided by low desert mountain ranges and is home to most of the state's population; about 80 percent of the state population resides in the Tucson and Phoenix.

6571 E Tanque Verde, Page 8

MARKET AREA (NEIGHBORHOOD) ANALYSIS

A property is an integral part of its surroundings. The character and features of the surrounding area directly affect the use of a property which is a primary factor in the property's value. In order to estimate the value of a property, an analysis of the surrounding area must be made. This surrounding area is referred to as a neighborhood.

The subject property is located in an eastern portion of the Tucson Metro Area classified as East Tucson by Costar, area boundaries are essentially the Rillito/Tanque Verde washes on the north to Golf Links Road on the south, from Craycroft Road on the west to Saguaro National Park on the east; the subject is in the northwest portion of this market area.

6571 E Tanque Verde, Page 9

HENDRICKS APPRAISAL & COUNSELING

The market area is characterized as being residential on the interior and retail and commercial districts on the traffic arterials (primarily retail and office). More significant shopping opportunities include: Sahuaro Vista Shopping center at the southwest corner of Speedway and Pantano with a Fry’s grocery, Dollar Tree, Warehouse Vitamins, Brakemax. At the Southeast corner of Speedway and Kolb there’s a Walmart with adjacent office and retail parks including Gateway Plaza directly east and Gateway Center to the southeast. At the northwest corner of Tanque Verde, Grant and Kolb there are Target and Albertsons Stores. Walmart Neighborhood grocery is located at the southwest corner of Broadway and Camino Seco with a number of other smaller retail stores. Broadway Plaza at the northwest corner of Broadway and Pantano have a Home Depot and Kohls Department store.

Morris K Udall Park is located at the southeast corner of Tanque Verde and Sabino Canyon, it has a community center with exercise and meeting room facilities as well as numerous outdoor fields and walking tracks. Smaller neighborhood parks include Jesse Owens Park southeast of Pantano and Broadway and Case Park southeast of Broadway and Harrison.

Davis Monthan Air Force Base, a key air combat command installation is located on the market area southern boundary. Davis Monthan is responsible for the combat readiness of eight active-duty wings in the western United States and Panama, with more than 35,000 personnel and 450 aircraft. Over 13,000 military retirees currently reside in the Tucson area. Davis-Monthan Air force base and the Tucson International Airport Environ Zones which are part of the Tucson Zoning Ordinance also affect the subject market area. The zones regulate the type of buildings permitted, their height, and their use in areas close to airport runways.

Significant portions of the market area, widening southeast of the Davis Monthan runway, are impacted by DM restricted height zones, Approach-Departure corridors (2 and 3), Noise Control Zones (A & B)

Demographic characteristics of the subject area (1mile radius), and the subject market area are compared to county averages following; as indicated: the surrounding 1 mile radius and market area are projected to grow at lower rate than the surrounding metro area (Pima County) indicating the area to be more fully developed.

Median household income levels in the surrounding radius and market area are slightly less than the surrounding metro area but per capita incomes moderately above; median home value is moderately below metro area averages. Percentage of owner occupied housing in the surrounding 1 mi radius and market area are slightly to significantly (surrounding radius) below average, percent of vacant housing brackets metro area averages (radius above average, market area below).

Variable

6571 E Tanque

Verde (1 mi)

Tucson East

MA

Pima County, AZ

2020 Total Population 10,287 117,507 1,066,136

2020-2025 Population: Annual Growth Rate 0.83% 0.59% 0.86%

2020 Total Households 5,326 53,002 423,733

2020 Per Capita Income $32,532 $31,487 $30,827

2020 Median Household Income $43,237 $51,753 $54,382

2020 Population Age 25+: Graduate/Professional Degree 1,303 11,459 103,348

2020 Owner Occupied Housing Units 2,207 29,455 261,248

Percent Owner Occupied 35.9% 50.4% 55.0%

2020 Vacant Housing Units 817 5,435 51,286

Percent Vacant Housing Units 13.3% 9.3% 10.8%

2020 Total Housing Units 6,143 58,437 475,019

2020 Median Home Value $218,314 $204,903 $226,625

2020 Average Home Value $258,918 $245,014 $273,471

2018 Housing: Mobile Homes 14 1,421 47,173

Percent Mobile Homes 0.2% 2.4% 9.9%

2018 Median Contract Rent (Households Paying Cash Rent) $728 $736 $737

2020 Population Density (Pop per Square Mile) 3,277.1 3,463.5 116.0

6571 E Tanque Verde, Page 10

HENDRICKS APPRAISAL & COUNSELING

Access within the market area is considered to be average; there are no interstates or parkways, traffic flows most notably along section line arterials with traffic signals typically at section and mid-section lines. The following exhibit indicates traffic volumes within the subject market area for each major thoroughfare; In Tucson, east-west arterials (Grant, Speedway, Broadway) are typically stronger in traffic volume than north-south arterials; however in this market area there are some very strong north-south arterials including Wilmot/Tanque Verde and Kolb Road:

(source ESRI 2020 Kalibrate Technologies)

The market area is served police and fire protection by City of Tucson with all utilities also provided including electricity by Tucson Electric Power, water by the City of Tucson, sewer by Pima County Wastewater, gas by Southwest Gas and telephone by CenturyLink. The subject market area lies within the boundaries of Tucson Unified School District. Public Transportation available on the traffic arterials in the market area including Speedway, Broadway, Tanque Verde, Pantano, portions of Harrison and Houghton.

Conclusion: The subject market area is primarily made up of urban density residential development with commercial development on significant east-west and north-south traffic arterials. There are adequate shopping facilities in the area; while more significant employment centers are 6-7 8 miles west (U of A and downtown), there are ample employment opportunities in the retail and office establishments within the market area. Demographics demonstrate surrounding areas bracketing metro area income levels, moderately below average median home values.

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SITE DESCRIPTION

Location: The north side of Tanque Verde Road west of Grant/Kolb.

Site Size: 12,030sf per assessor’s record.

Access & Visibility: The site has 1 curb cut on Tanque Verde Road, a 6 lane traffic arterial with a reported 30,434vpd traffic counts in this vicinity (PAG).

Ingress/egress: Average.

Shape/Utility: Rectangular, 60’ frontage on Tanque Verde by depth of approximately 200’;

average utility.

Topography: Generally level at approximately 2,502’-2,504’, slightly below street grade, indicated to be 2,506’ (all elevations by Pima County Mapguide).

Flood Hazard: According to the FEMA Digital Flood Insurance Rate Map, panel 04019C2301L, effective December 2, 2011, the subject is not in the flood zone (zone X).

Earthquake: According to USGS, the Santa Cruz County area appears to have a 4-8%g, where more active areas such as California and Alaska are indicated to be 32+%g.

Easements: There appear to be no easements or other significantly restricting site utility.

Hazardous Materials/ Contamination: The appraiser is not an expert in hazardous material contamination, none were observed. This appraisal assumes that the subject is free of hazardous material contamination.

Utilities: Utilities are generally available from the following sources;

Water: City of Tucson Sewer: Pima County Wastewater Electricity: Tucson Electric Natural Gas: Southwest Gas Telephone: Centurylink Telecommunications

Public Safety: City of Tucson

Surrounding Land Uses: Retail shopping center to the east with Target Department Store and Albertsons grocery with restaurant pads, an iconic Trail Dust Town (western) with well known local steak house to the north and west, retail to the south across Tanque Verde.

Zoning: The subject is zoned C-2, City of Tucson Commercial Zone; C-2 provides for general commercial uses that serve the community and region.

Development requirements include (for commercial uses): no minimum site size, no maximum site coverage, 40’ building height and side yard setbacks varying depending on adjacent uses (non-residential to non-residential is 0); for residential use the maximum density is 44 units per acre and maximum lot coverage of 70%.

Site Analysis Conclusion: The site is commercially zoned, located on a mid-block location, is rectangular, relatively small and with narrow frontage to depth but considered to have average utility; it is not located in the flood zone.

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IMPROVEMENT ANALYSIS

Current Use: Vacant former Veterinarian office

The building has a front reception area with reception desk; there are three former exam rooms that could be used for office, a number of smaller storage rooms on the building west side including a records desk/storage, former dark room and heater closet. There is lab space around one exam room, a larger lab/break room and an open work area. On the building north end is former open work area (pet grooming?) and a kennel room. There is a chain link and wall enclosed rear porch with an enclosed storage/office room with room air conditioner. This storage/office is only accessible through the porch and is not considered to be part of the main building finished rentable area.

Building: Approximately 1,839sf by personal measurement; there is a chain link/wall enclosed rear porch and 77sf storage/office. Assessor’s record and plan indicates building size at 1,528sf; it appears that there was an addition/extension on the building front (south side) that was not picked up by the assessor. Per the agent, Tyler Jeffrey, the owner reports having had all permitted but that the assessor lost some of the records. It is an extraordinary assumption that the building area as described has been permitted or could be and thus would continue in the future.

Functional Utility: Considered to be average to below average, a number of rooms are relatively small and of limited utility, the lab surrounding exam room 2 and the fenced, raised former kennel areas are specialized to the former user and have below average utility for use in the open market.

Quality of Improvements Average; the building is of mixed construction, mostly painted block and block stucco with the front (addition) apparently being frame stucco.

Interior finishes are mixed, predominately painted drywall ceilings but an older acoustical tile in one room; floor finishes vary from ceramic tile to vinyl tile, to painted concrete and no floor finish in the rear former kennel/cage area.

Other Improvements: A 8’x16’ wood storage building on wood floor, a front overhang and parking area, currently not striped but with parking bumpers.

Physical Condition: Average to fair; the building exterior is in average condition. On the interior there are some cracked floor tiles, damaged ceiling areas from former roof issues (the roof was reportedly re-sealed and now has a 5 year warranty);

generally walls and ceilings are in need of re-painting, there is a missing HVAC vent cover in the records storage room. The roof air conditioning unit is in-operable having been damaged/stolen. The surrounding site area has been paved but would not appear to have been resurfaced for a long while, particularly all but the area in front of the office, is so worn that it is indistinguishable from a graded dirt area.

Building Age: Built 1962 per assessor, 58 years.

Economic Life: Typically approximately 50 years.

Effective Age: Approximately 30-35 years.

Remaining Economic Life: Approximately 15-20 years is indicated by the math; however, given consistent future maintenance and renovation, a reduced effective age and remaining economic life of 30+ years is quite reasonable.

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Real Estate Tax Analysis

The following information is available from the county treasurer’s office.

Subject current FCV and taxes do not reflect the addition of approximately 311sf; the above projected taxes ($6,042.82) are based on a similar valuation per square foot of building area for the addition.

133-16-008A 2020 2021

FCV Land $144,360 $144,360

FCV Impr $61,920 $74,523

Total FCV $206,280 $218,883

2019 Tax $5,694.89 $6,042.82

Delinquent $0.00

Site Size, sf 12,030 12,030

Impvt Size, Sf 1,528 1,839

Year Built 1962

FCV Impr /sf $40.52 $40.52

Tax/Total FCV $0.02761 $0.02761

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HIGHEST AND BEST USE

Highest and best use is defined by the Appraisal Institute in The Dictionary of Real Estate Appraisal, 6th Edition, as:

The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.

Also implied is that the determination of highest and best use results from the appraiser's judgment and analytical skill, i.e., that the use determined from analysis represents an opinion, not a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which value is based.

In the context of most probable selling price (market value), another appropriate term to reflect highest and best use would be most probable use. In the context of investment value, an alternative term would be most profitable use. The four criteria for the estimate of highest and best use that result in the highest land value are that the use be, legally permissible, physically possible, financially feasible, and maximally productive.

HIGHEST AND BEST USE, AS IF VACANT:

Legally Permissible The subject is zoned C-2, Commercial. C-2 provides for general commercial uses that serve the community and region. Development requirements include (for commercial uses): no minimum site size, no maximum site coverage, 40’ building height and side yard setbacks varying depending on adjacent uses (non-residential to non-residential is 0); for residential use the maximum density is 44 units per acre and maximum lot coverage of 70%.

Physically Possible: The subject parcel is 12,030sf with moderate frontage (60’) to depth (200’). Though moderately below street level, it is not located in the flood zone. Utilities necessary for development are available.

Financially Feasible: The financial feasibility of the subject site is market derived. The following analysis indicates that Arizona, prior to the current “Covid19 crisis” was stabilizing into moderate growth, though at significantly lower rates to those prior to the last economic downturn.

Real Estate Markets; Market Analysis:

The following information is taken from Arizona Economy Spring 2020 issue published by the University of Arizona / Eller College of Management, published March 1, 2020. This analysis/outlook, was in the early stages of the Corona Virus market impacts, such impacts have been significantly more sweeping, more discussion following; however, it is important to recall these conditions, largely before Covid-19 economic impacts, to which we anticipate return following lessening impact of the virus, success in vaccine development and implementation, etc.

Arizona is carrying significant momentum into 2020, with solid job, income, and population gains last year. State growth far exceeded the nation on each of those indicators in 2019 and looks set to do so again in 2020. Labor markets continue to tighten, and that is putting upward pressure on wages. Steady population gains mean housing is in demand, but low inventories, falling mortgage rates, and rising costs are putting upward pressure on prices and driving down affordability.

The Arizona labor market finished strong in 2019 according to the preliminary data. The state added 76,900 jobs over the year in the fourth quarter, for 2.6% growth. Arizona outpaced national job growth in the fourth quarter, at 1.4%. As usual, the Phoenix Metropolitan Statistical Area (MSA) generated most state job gains in the fourth quarter, with an over-the-year increase of 63,400 jobs. That translated into 2.9% growth, more than double the national rate. The Tucson MSA also generated job gains in the final three months of 2019, adding 7,600 jobs for 1.9% growth.

Arizona’s population rose at a solid pace in 2019, reaching 7,187,990 residents, according to the latest estimates from the Arizona Office of Economic Opportunity. The state added 111,791 residents from July 1, 2018 to July 1, 2019, which translated into 1.6% growth. That was the same growth rate as in 2018.

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Arizona house prices rose at a rapid pace in 2019. According to the all-transactions data from the Federal Housing Finance Agency (FHFA), Arizona house prices rose 5.9% over the year in the third quarter of 2019. That was faster than the national rate of 4.6%. Phoenix MSA house prices increased by 5.6% over the year, while Tucson house prices rose by 6.6%. Tucson house price increases beat the Phoenix rate for the second time so far in 2019; reversing a trend of faster price gains in Phoenix that held from 2012 to 2018.

Arizona personal income rose by 5.4% over the year in the third quarter of 2019, beating the national pace of 4.4%.

Outlook: The Arizona forecast depends on projections for U.S. and global growth, which come from IHS Markit and were completed in January 2020. The clouds surrounding the national outlook in recent quarters have parted, although growth is still expected to slow in coming years. Recession risks have receded to the background, for now, but will remain in the picture going forward. Overall, confidence in continued U.S. growth through 2020 and beyond has significantly increased.

Real Gross Domestic Product (GDP) is expected to rise by 2.1% in 2020 and 2021, down slightly from the 2.3% rate last year. Gains further decelerate to 1.7% in 2022 and 1.5% in 2023. Overall, the forecast calls for the above-trend growth during 2017-2019 to decelerate to below-trend growth by 2022.

Real consumption spending remains strong in the near term, rising by 2.8% in 2020 and 2.7% in 2021, before slowing to 2.3% and 2.2% in 2022 and 2023, respectively. Strong gains in wealth (equity markets and house prices) accompanied by solid income growth drive household spending forward during the forecast.

The forecast calls for Arizona to sustain solid job gains in 2020, after strong growth in 2019. The state is expected to add 74,700 jobs in 2020, which translates into 2.5% growth. That is more than double the expected national growth rate of 1.2%.

Job gains also contribute to solid net migration into Arizona, which will become an even more important source of population gains for the state. Arizona is forecast to add 106,600 new residents in 2020 for 1.5% growth. Population growth rates decline during the next decade, as demographic aging puts downward pressure on births and upward pressure on deaths.

Forecast tables:

The following discussions are from updated Arizona’s Economy 2nd Quarter 2020 analysis, titled “A Clearer View of a major Downturn”, published June 5, 2020, providing more recent projections from within the Corona virus crisis.

There is still a huge amount of uncertainty about the future of the outbreak and the economic impacts associated with it, but we do have the first hard data points. The forecast assumes that the worst of the outbreak is over and that there will be no major resurgence in the fall.

Forecasts for Arizona, Phoenix, and Tucson have been marked up from the April projections but the outlook still calls for a major downturn. The magnitude is now expected to be similar to that of the 2008-

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HENDRICKS APPRAISAL & COUNSELING

2009 recession. The recovery is forecast to begin later this year. The level of economic activity is expected to return to pre-outbreak levels by early 2022. I characterize this as a “Nike-swoosh” type recovery.

Arizona nonfarm payroll jobs experienced a huge decline of 232,000 jobs over the year in April, according to the preliminary estimate. That translated into a decline of 7.9%, which was less than the national decline of 12.9%. From February 2020, which appears to be the peak in the seasonally-adjusted data, Arizona has now lost 310,000 jobs. Arizona’s seasonally-adjusted unemployment rate (U3) spiked up significantly in April, reaching 12.6%. That was below the national rate of 14.7%.

Arizona Outlook: For the current Arizona forecasts, the baseline projections are assigned a 45% probability. The pessimistic scenario has a 35% probability and the optimistic scenario has a 20% probability.

The current baseline projections put the magnitude of the coming downturn at about the same size as the 2008-2009 recession but much shorter in duration. Under current assumptions, it is a short, sharp shock (restricted to the second quarter-7/15/20 update). Total nonfarm employment in Arizona declines by 386,000 from the first quarter to the second quarter of 2020. That translates into a peak-to trough decline of 11.3% (revised 7/15/20 to 295,000 jobs lost, -9.9%). For comparison, Arizona lost 305,000 jobs from peak to trough (quarterly) during the Great Recession. That was an 11.4% drop. The state unemployment rate surges to 17.0% by the third quarter of 2020, but then begins a gradual decline.

Taxable retail sales decline this year, as job, income, and wealth declines (and social distancing) take a toll on consumers. Sales at restaurants and bars gets hit harder, given the more severe headwind from social distancing. Population growth slows, with reduced net migration, and that generates lower levels of housing permit activity.

Once we get past the shock this year, the recovery should be steady. Arizona was in very good shape before the outbreak and once the outbreak is under control, growth will accelerate significantly.

However, it will take time to get back to pre-outbreak levels of economic activity. The forecast calls for the level of employment to return to its first quarter 2020 level by the first quarter of 2022.

The 7/15/2020 update notes that State and national labor market performance improved in May.

Arizona jobs (establishment survey) were down by 230,000 from February to May 2020. That translated into a 7.7% decline. Employment, as measured by the household survey, was down by 222,000 jobs from February to May, for a drop of 6.4% (the household survey includes the self-employed, who are not included in the establishment survey). Arizona’s seasonally-adjusted official (U3) unemployment rate declined in May, to 8.9%, from 13.4% in April. Arizona’s rate remained below the national rate, at 14.7% in April and 13.3% in May.

Arizona Outlook: For the June U.S. and Arizona forecasts, the baseline projections are assigned a 50% probability. The pessimistic scenario has a 25% probability and the optimistic scenario has a 25% probability.