Exhibit D.pdf

APPRAISAL REPORT ON

6 VACANT PARCELS – RUSK COUNTY

LADYSMITH, WISCONSIN

GREGORY CHRISTOFFEL

J.C. NORBY & ASSOCIATES, INC.

1107 REGIS COURT

SUITE 200

EAU CLAIRE, WISCONSIN

J. C. Norby & Associates, Inc.

Real Estate Valuation & Consultation

1107 Regis Court, Suite 200

Eau Claire, WI 54701

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

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

April 10, 2024

Rusk County

Attn: Ms. Ashley Heath

311 Miner Ave E

Ladysmith, WI 54848

RE: 6 Vacant Parcels – Rush County

Ladysmith, Wisconsin

Dear Ms. Heath:

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

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

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

I have observed the site, researched data, and considered matters pertinent to its value. The estimated market value of the subject, as of April 4, 2024, is stated as follows:

Contributory Value of the Parcel #246-03560-0000 ..........................................$250,000

Contributory Value of the Parcel #246-03658-0005 ..........................................$ 70,000

Contributory Value of the Parcel #246-03597-0000 ..........................................$ 75,000

Contributory Value of the Parcel #246-03596-0000 ..........................................$130,000

Contributory Value of the Parcel #246-03598-0000 & 246-03599-0000 ..........$305,000

Total .......................................................................................................................$830,000

EIGHT HUNDRED THIRTY THOUSAND DOLLARS

The above values include the contributory value of six individual parcels as well as the sum for the total estimated market value of the subject.

This appraisal includes the land only (real estate).

Per the Scope of Work provided by the client, each parcel is to be viewed as vacant land. Parcel #246-

03596-000 contains existing building improvements. However, per the Scope of Work, this parcel, and all other parcels, are valued as vacant land only. Any deviation from this hypothetical condition may have a significant effect on the value conclusion stated in the report.

The extraordinary assumptions included in this report are: there are no environmental conditions on or around the property that would have a negative impact on the overall utility, and hence value; and that all parcels have legal and typical means of ingress/egress. Any deviation from these extraordinary assumptions may have a significant effect on the value conclusions stated in the report.

mailto:info@jcnorby.com http://www.jcnorby.com/

RE: 6 Vacant Parcels – Rush County

Ladysmith, Wisconsin

April 10, 2024

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

Respectfully submitted, Gregory Christoffel

WI Certified General Appraiser #2690-10

Expiration Date: December 14, 2025

J. C. NORBY & ASSOCIATES, INC.

GC/tmf

Enclosure

F: \DATA\NARRATIVES FV\2024\24282FV 900 & 906 COLLEGE AVE W LADYSMITH

Copyright © 2024 by J. C. Norby & Associates, Inc. All rights reserved.

J. C. NORBY & ASSOCIATES, INC

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TABLE OF CONTENTS

PAGE

PURPOSE OF APPRAISAL

DEFINITION OF HYPOTHETICAL CONDITION

DEFINITION OF EXTRAORDINARY ASSUMPTION

INTEREST VALUED

FUNCTION OF APPRAISAL

INTENDED USE OF REPORT

ESTIMATED EXPOSURE & ;MARKETING TIME

EFFECTIVE DATE OF VALUE

INSPECTION DATE

DATE OF REPORT

SCOPE OF WORK

COMPETENCY STATEMENT

TYPE & CLASS OF PROPERTY

STATE MAP

CITY MAP

MARKET AREA DATA & NEIGHBORHOOD

SITE DATA

ENVIRONMENTAL CONDITIONS

ZONING

FLOOD PLAIN

FLOOD PLAIN MAP

ASSESSED VALUATION, LEGAL DESCRIPTION AND TAXES

PROPERTY HISTORY

HIGHEST AND BEST USE

SUBJECT PHOTOGRAPHS

VALUATION BY COST APPROACH

VALUATION BY INCOME CAPITALIZATION APPROACH

VALUATION BY SALES COMPARISON APPROACH

CORRELATION OF VALUE OPINIONS

FINAL OPINION OF VALUE

ASSUMPTIONS AND LIMITING CONDITIONS

CERTIFICATIONS

QUALIFICATIONS

ADDENDUM

CONTRACT

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APPRAISAL REPORT ON

6 VACANT PARCELS – RUSK COUNTY

LADYSMITH, WISCONSIN

CLIENT: Rusk County

311 Miner Ave E

Ladysmith, WI 54848

APPRAISER: Gregory Christoffel

J.C. NORBY & ASSOCIATES, INC.

1107 Regis Court, Suite 200

Eau Claire, WI 54701

SUBJECT: 6 Vacant Parcels – Rush County

Ladysmith, Wisconsin

PURPOSE OF THE APPRAISAL:

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

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

(1) buyer and seller are typically motivated;

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

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

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

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

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

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DEFINITION OF HYPOTHETICAL CONDITION:

A hypothetical condition is defined as follows:

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

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

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

DEFINITION OF EXTRAORDINARY ASSUMPTION:

An extraordinary assumption is defined as follows:

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

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

INTEREST VALUED: Fee Simple

Fee simple estate is defined as follows:

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

FUNCTION OF APPRAISAL:

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

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INTENDED USE OF REPORT:

This appraisal is intended to assist the client, Rusk County, in estimating the market value of the subject. The intended user of this report includes the client and its assigns only. This report is not intended for any other use or users.

ESTIMATED EXPOSURE AND MARKETING TIME:

The land sales indicated that exposure time (i.e., the length of time the subject property would have been exposed for sale in the market had it sold at the market value concluded in this analysis as of the date of this valuation) would have been approximately 2 to 18 months.

EFFECTIVE DATE OF VALUE: April 4, 2024

INSPECTION DATE: April 4, 2024

DATE OF REPORT: April 10, 2024

SCOPE OF WORK:

The scope of work includes a number of independent investigations and analysis, including an observation of the property on April 4, 2024. The physical observation of the subject included walking a portion of the subject. Other inspection items utilized were the county GIS Mapping software and topography mapping.

This appraisal includes the land only.

The subject’s site size was obtained from Rusk County records and utilizing a GIS measuring tool.

Research sources utilized to gather data regarding the subject includes the Rusk County Register of Deeds and Treasurer Offices; the City of Ladysmith Zoning and Assessor’s Offices; other public records; and from the personal observation as part of this appraisal assignment.

Research sources utilized to gather general market data include the Multiple Listing Service Agency (MLS), NorthStar Multiple Listing Service, the Wisconsin Department of Revenue sales database, CoStar sales database, county records, other real estate professionals located throughout the area, and the internal records database of this appraisal office.

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

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Appraisal Process:

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

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

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

▪ Cost Approach

▪ Sales Comparison Approach

▪ Income Capitalization Approach

In the Cost Approach, the component parts of the subject are analyzed and an estimate of what it would cost in the market to replace them with property of like utility and value is made. Land is broken into use classes, each evaluated on its value in the market. The value of the improvements are estimated based on cost new, less depreciation. Depreciation is defined as loss in value from any cause and may be physical wear, functional and/or external obsolescence. Although considered, the Cost Approach is not included in this appraisal assignment, as this valuation method does not apply when valuing vacant land such as the subject.

Therefore, this approach is omitted.

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

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

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

Income Capitalization Approach is also not included in this appraisal assignment.

The subject is not utilized to generate an income and there is insufficient market data available to adequately support a reasonable market rent for the property.

Therefore, this valuation method is also omitted from further consideration.

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The final step in the reconciliation process is to correlate the various valuation approaches utilized into a fee simple market value opinion for the property being appraised. In this case, the reconciliation process is diluted in that there is only one applicable valuation method for the property. The Sales Comparison Approach is the best valuation tool available when analyzing this type of real estate.

COMPETENCY STATEMENT:

The appraiser certifies that I am competent to perform this assignment. Pursuant to

USPAP, the appraiser has: the ability to properly identify the problem to be addressed; the knowledge and experience to complete the assignment competently; and recognition of, and compliance with, laws and regulations that apply to the appraisers or this assignment.

Per USPAP, competency may apply to factors such as, but not limited to, an appraiser’s familiarity with a specific type of property or asset, a market, a geographic area, an intended use, specific laws and regulations, or an analytical method.

(Source: 2020-2021 Uniform Standards of Professional Practice (USPAP) by the Appraisal Foundation)

TYPE AND CLASS OF PROPERTY:

The subject is six parcels of land located in the City of Ladysmith in Rusk County. In total, the subject contains about 12.74 acres or approximately 555,105 square feet. Each parcel is defined by its parcel number and is as follows:

Parcel # Size (SF)

246-03560-0000 250,841

246-03658-0005 29,427

246-03597-0000 25,032

246-03596-0000 47,209

246-03598-0000 &

246-03599-0000 202,596

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STATE MAP

SUBJECT

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CITY MAP

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MARKET AREA DATA & NEIGHBORHOOD:

The subject is located on the southwest side of the city of Ladysmith. It is located just west of the State Highway 27 corridor, which is primarily commercial oriented and the primary north/south traffic route through the city. The immediate vicinity surrounding the subject is best characterized as being within the stabilized neighborhood life cycle stage.

The city of Ladysmith is located in the central part of Rusk County in Northwestern

Wisconsin and is the County Seat. As of the 2020 Census, the city population was 3,192.

In 2021, the population is estimated at 3,126. The recent trend in a declining population in

Ladysmith began with the 2000 Census.

The city encompasses a total of 4.59 square miles, of which 4.22 square miles is land and

0.38 square miles is water. The Flambeau River does meander through the city of

Ladysmith.

As of the 2020 Census, the population density was 755 people per square feet mile. There were 1,557 households and 806 families residing in the city. There were also 1,682 housing units at an average density of 396 per square mile. The median age in the city was 47.9 years and the average household size was 2.0.

The estimated median household income in the city of Ladysmith was $49,973 , somewhat below the state average of $67,080. The estimated per capital income was $31,011.

The three most common employment industries in the city are Wood Products (13.3%), accommodation and food services (10.7%), and educational services (10.5%).

Adjacent to the north of the subject, improved commercial properties include and O’Reilly

Auto Parts retail store, a Walmart retail outlet, the Cobblestone Hotel & Suites lodging facility, and the Rusk County Highway Department shop buildings. Area further to the north is developed with commercial property along the State Highway 27 corridor. U.S.

Highway 8 is also located just north of the subject. Area north of U.S. Highway 8 is also an established commercial corridor along State Highway 27.

A paved parking lot associated with the Marshfield Medical Center – Ladysmith Hospital complex is located adjacent to the east of the subject. Also, just east of this parking lot is

State Highway 27. Improved properties east of Highway 27 include the Fairbridge Inn

Express motel complex and the Flambeau Village apartment complex. Area further to the east, along secondary neighborhood streets is an established residential neighborhood. Just to the northeast of the subject, across from State Highway 27, is the St. John’s Lutheran

Church property. Area further to the northeast is also residential oriented.

O J Falge Park and Corbett Lake are also just to the northeast of the subject. The downtown central business district of Ladysmith is also to the northeast of the subject along the U.S.

Highway 8 corridor.

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Just south of the subject is the Flambeau River. Area further to the south within the city limits of Ladysmith is residential oriented. The Ladysmith Industrial Park is also located just to the south of the subject.

The Indianhead Community Action Agency office building structure is located adjacent to the west of the subject. The Servants of Mary Convent residential property is also located just west of the subject. Area further to the west includes a small commercial building that could be utilized for either retail of office purposes. There is also a public park located just to the west of the subject as is the North Cedar Academy private school facility. Area further to the west turns more rural in nature.

Just to the northwest of the subject, behind the Walmart property, is undeveloped wooded acreage.

The trend for this area will most likely continue as its current use, consisting primarily of commercial development located along both sides of State Highway 27 and U.S. Highway

8, with residential development being predominant to the east and northeast of the subject along secondary neighborhood streets.

State Highway 27 is a heavily traveled north/south traffic route while U.S. Highway 8 is a heavily traveled east/west route. Both highways provide convenient access to employment and other services available throughout not only the city of Ladysmith, but the entire region in general.

According to the Wisconsin Department of Transportation, as of June 2021, there were approximately 5,500 vehicles per day that travel past the subject along State Highway 27.

The daily traffic volume along this stretch of State Highway 27 has remained fairly consistent over the past decade. There are no locational factors noted that would negatively impact the marketability of the subject neighborhood.

SITE DATA:

According to Rusk County records and other resources, the subject contains about 12.74 acres or approximately 555,105 square feet. Each parcel is defined by its parcel number and is as follows:

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Rusk County

Parcel # Size (SF)

246-03560-0000 250,841

246-03658-0005 29,427

246-03597-0000 25,032

246-03596-0000 47,209

246-03598-0000 &

246-03599-0000 202,596

A County GIS map and aerial photograph outlining the subject are included on the following pages:

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COUNTY GIS MAP

Parcel #6

Parcel #4

Parcel #5

Parcel #3

Parcel #2

Parcel #1

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AERIAL PHOTOGRAPH

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College Avenue West is a bituminous paved, two-way city street with a single lane of traffic in each direction. It is noted that College Avenue West does not cross State Highway

27. There is no concrete curb, gutter, or public sidewalk located along either side of

College Avenue West. Access to the subject is common and typical for the local market.

The property is developed at grade with the adjacent street and surrounding improvements.

Municipal water and sewer service is available to the subject parcel. Other public utilities available include natural gas, electricity, and telephone. The bearing qualities of the soil appear adequate, as there are no significant signs of settlement noted in the existing building or site improvements.

There are easements of record for public utilities. Other than the above-mentioned access easement, there were no other apparent easements, encroachments, or other conditions noted that would have a negative impact on the marketability of the site. However, a title search was not reviewed as part of this appraisal assignment. It is possible a title search could reveal certain easements, encroachments, or other encumbrances that may have a negative impact on the overall utility, and hence value of the property. If the client has a concern, a title search outlining the history of the property should be obtained.

ENVIRONMENTAL CONDITIONS:

The values estimated in this report are based upon the extraordinary assumption that the property is not affected by the existence of hazardous substances or detrimental environmental conditions. I am not an expert in the identification of hazardous substances or detrimental environmental conditions. A routine observation around the property did not develop any information that indicated the existence of any apparent significant substances or detrimental environmental conditions, which would affect the property negatively.

However, it is possible tests and inspections made by a qualified hazardous substance and environmental expert could reveal the existence of hazardous materials or environmental conditions on or around the property that would negatively affect its value. If the client has a concern, a qualified expert should be consulted to determine if environmental hazards do exist.

ZONING:

Per the City of Ladysmith zoning office, the subject is zoned R3 – Multi Family Residence

District and C – Commercial District.

FLOOD PLAIN:

According to the Federal Emergency Management Agency (FEMA) approved flood plain map for Rusk County, Panel #55017C 0503D effective date of March 17, 2014, the majority of the subject is located in Zone X, which is not within the 100-year flood hazard area. However, an area along the Flambeau River does contain some area in Zone AE which is within the 100-year floor hazard area. Below is a copy of the FEMA flood plain map:

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FLOOD PLAIN MAP

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ASSESSED VALUATION, LEGAL DESCRIPTION AND TAXES:

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PROPERTY HISTORY:

The subject has been under the ownership of the current owner for a period of time greater than three years. The appraiser is not aware of an arm’s length conveyance within time period.

I am not aware of any additional options, contracts, or listings regarding the subject.

HIGHEST AND BEST USE:

For Highest and Best Use of land as though vacant and property as improved, the use must meet four criteria. Those criteria are that the Highest and Best Use must be:

1. Physically Possible

2. Legally Permissible

3. Financially Feasible

4. Maximally Productive

These criteria should usually be considered sequentially, for only when there is a reasonable possibility that one of the prior unacceptable conditions can be changed is it appropriate to proceed with the analysis.

Highest and Best Use is defined as follows:

The reasonable, probable, and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value.

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

Implied in this definition is that the determination of Highest and Best Use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to the individual property owner. Therefore, in certain situations, the Highest and Best Use of land may be for parks, undeveloped green space, preservation, conservation, or wildlife habitat.

Highest and Best Use Analysis:

Land as Though Vacant:

The four questions about the property must be considered before a Highest and Best Use estimate can be reached. This is done after examining surrounding land uses and coming to a tentative use conclusion. In the case of the subject, the tentative use conclusion appears to conform to the most productive use allowed by the zoning code.

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Physically Possible:

Discussing the first criteria of Highest and Best Use, Physically

Possible, the subject can be utilized for a variety of uses. The soils appear to be satisfactory for a variety of uses. The subject has legal access, and it would be physically possible for development.

Legally Permissible:

Regarding the second criteria, Legally Permissible, it is legally permissible for the site to be utilized for a multi-family residential or commercial use per the zoning code.

Financially Feasible:

Regarding the third criteria, Financially Feasible, it appears the use as multi-family or commercial is appropriate. The property is located near established commercial neighborhoods.

Maximally Productive:

Regarding Maximally Productive, the subject is suitable for residential development use. The subject has adequate size for this use as well as space for onsite parking and any other residential type improvements.

Summary:

Based on the discussion of the Highest and Best Use of the subject as vacant land, it is concluded the Highest and Best Use is for multi-family residential or commercial use allowed by the current zoning code.

Highest and Best Use as Improved:

The subject is vacant land, thus an analysis of Highest and Best Use as improved is not applicable for this assignment.

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SUBJECT PHOTOGRAPHS

College Avenue Facing East

College Avenue Facing West

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Parcels #5 & #6

Parcels #5 & #6

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Parcel #4

Parcel #3

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Parcel #2

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VALUATION BY COST APPROACH:

Underlying the theory of the Cost Approach to Value is the principle of substitution which suggests that no prudent person will pay more for a property than the amount for which they can obtain, by purchase of a site and construction of improvements without undue delay, a property of equal desirability and utility. Consequently, current reproduction cost, prior to any deduction for accrued depreciation, plus land value, plus entrepreneurial profit, provide a measure against which prices for already improved properties may be judged.

For the Cost Approach to produce a valid indication of market value, it is necessary to consider the accrued depreciation evident in the property being appraised due to all causes;

physical, functional, and external.

The steps taken in deriving an indication of value through application of the Cost Approach are:

1. Estimate the value of the land as though vacant and available to be developed to its highest and best use.

2. Estimate the reproduction or replacement cost of the improvement on the effective appraisal date.

3. Estimate the amount of accrued depreciation in the improvements, categorized by three major types:

a. Physical Deterioration

b. Functional Obsolescence

c. External Obsolescence

4. Deduct the appropriate estimated depreciation from the reproduction or replacement cost of the improvements to derive an estimate of the improvements' contribution to total value.

5. Add the depreciated reproduction or replacement cost of the improvements to value allocation of the site improvements and land to obtain an estimated value by the Cost Approach.

Although considered, the Cost Approach is not included in this appraisal assignment, as this valuation method does not apply when valuing vacant land such as the subject.

Therefore, this approach is omitted.

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VALUATION BY INCOME CAPITALIZATION APPROACH:

Investment property includes real estate which is bought primarily on the basis of the income which is produced. In dealing with such properties, the value tends to be set by the quantity, quality, and durability of the net income to the property.

In the valuation of the property, the process begins by analyzing the existing and/or most probable gross income at the time of appraisal, plus miscellaneous and net service income, if any. Market rental is based on prevailing rental rates for comparable space. This may be more or less than the actual or contract rent.

In actual practice, most buildings cannot expect to be fully and continuously occupied.

Prudent investors make a deduction for anticipated vacancy and/or collection losses, which leaves an effective gross income. The next claims upon income are the various operating expenses, such as taxes, insurance, administration, utilities, repairs, reserve for replacements, and any other appropriate out-of-pocket expense.

Capitalization is the process of converting net income into value, either by dividing the net income by an appropriate rate, or multiplying it by a factor. There is no single way to capitalize income. The most commonly used methods have variable built-in assumptions.

Various income approaches to value may be used in an appraisal since, if properly used, each analysis helps to explain the characteristics important to real estate investments; and also they help to illustrate how different points of view can still result in similar value estimates.

Although considered, the Income Capitalization Approach is also not included in this appraisal assignment. The subject is not utilized to generate an income and there is insufficient market data available to adequately support a reasonable market rent for the property. Therefore, this valuation method is also omitted from further consideration.

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VALUATION BY SALES COMPARISON APPROACH:

In this approach, sales of similar unimproved land are analyzed, compared, and adjusted to derive an indication of value for the land being appraised. In applying the sales comparison approach, the appraiser follows a systematic procedure. The appraiser must always compare like properties. That is, the appraiser must adjust each comparable to the subject to impute an indicated value to the property. The steps of the procedure are as follows:

1. Research the market to obtain information about transactions and listings of other properties similar to the subject property.

2. Verify the information by considering whether the data is factually accurate, and the transaction reflects an arm's length market consideration.

3. Determine relevant units of comparison such as acres, square foot, and front foot, and develop a comparative analysis for each unit.

4. Compare the subject and comparable sales according to the elements of comparison and adjust the sales price of each comparable as appropriate.

5. Reconcile the multiple value indications that result from the adjustments into a single value indication.

The following sales of vacant lots were selected for comparison to the subject:

Sale

Location Sale Date Sale Price

Size

(SF)

SP / SF

314 W 8th St N

Ladysmith, WI Feb-23 $26,250 21,464 $1.22

Highway 8

Cameron, WI Oct-22 $60,000 76,666 $0.78

US Hwy 8 & Hwy 27

Ladysmith, WI Aug-19 $140,000 47,084 $2.97

Cedarcrest Dr

Rice Lake, WI Dec-21 $465,000 349,584 $1.33

The above sales are listed on the following adjustment chart. Adjustments are made to the comparable properties to reflect differences between them and the subject.

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SALE # Subject 6327 6116 6328 5808

DATE OF SALE Feb-23 Oct-22 Aug-19 Dec-21

PRICE $26,250 $60,000 $140,000 $465,000

SIZE (SF) Varies

21,464

76,666

47,084

349,584

FINANCING (%)

:AT MKT RATES YES YES YES YES

ADJUSTMENTS: %

SALE COND'S 0% 0% 0% 0%

CASH EQUIV'Y 0% 0% 0% 0%

NORMAL PRICE: $26,250 $60,000 $140,000 $465,000

MARKET COND'S 0.0% 0.0% 0.0% 0.0%

ADJUSTED PRICE: $26,250 $60,000 $140,000 $465,000

LOCATION Average 0% 0% 0% -20%

SIZE (SF) Varies 0% 0% 0% 20%

ACCESS Typical 0% 0% 0% 0%

TOPOGRAPHY Mostly Level 0% 0% 0% 0%

SHAPE Varies 0% 0% 0% 0%

VIEW/VISIBILITY Average-Good 0% 0% 0% 0%

UTILITIES Municipal 0% 0% 0% 0%

NET ADJUSTMENT 0% 0% 0% 0%

ADJ SALE PRICE: $26,250 $60,000 $140,000 $465,000

/SF $1.22 $0.78 $2.97 $1.33

AVERAGE PRICE:

/SF $1.58

Discussion:

The sales utilized in the above adjustment grid are the best sales at the time of inspection and are further detailed below:

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SUBJECT AND IMPROVED SALES LOCATION MAP

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Discussion:

The search for comparable market data includes sales of vacant parcels similar in market appeal when compared to the subject. Those considered most representative of the subject are included in the analysis. The sales bracket the subject, providing a balanced analysis.

Transactional Adjustments:

Transactional adjustments include differences in financing, cash equivalency, conditions of sale, and expenditures made immediately after the purchase.

Location:

Sale #5808 is located in the City of Rice Lake while the subject is located in the City of Ladysmith. Based on the Wisconsin Department of Revenue’s locational factors for rating municipalities, a property in the City of Rice

Lake has a higher locational rating than a property in the City of Ladysmith.

Therefore, a downward adjustment of 20% is warranted.

No further location adjustments are warranted.

Size:

Sale #5808 is adjusted upward for being significantly larger than the subject. Typically, as the size of a property increases, the price per unit equivalent decreases when all items of comparison are similar. In the inverse is true; as the size of a property decreases, the price per unit equivalent increases when all items of comparison are similar. This is based on market data as well as economic theory of Economies of Scale.

No further size adjustments are warranted.

The subject and comparable sales are considered mostly similar in all other aspects, and no further adjustments are warranted.

The adjusted comparable properties support a market value range of $0.78 to $2.97 per square foot. In a typical appraisal assignment, the next step in the valuation process would be to weigh each sale. However, given the fact that subject consists of six individual parcels, all of which vary in size and exposure, I must consider where each parcel falls within the above range.

Given the above discussion regarding size, the smaller parcels should be a unit equivalent near the high end of the range. In addition, each sale varies in its exposure to Highway 27. The parcels with the direct exposure should also be near

~ 38 ~ the high end of the range. As for the larger parcels and parcels with secondary exposure to Highway 27, something near the middle of the range is warranted.

Typically, secondary exposure and larger parcels would fall at the low end of the range. However, simply given each parcel’s proximity to anchor retailer Wal-Mart, something higher than the low end of the range is warranted for all parcels.

In my opinion, the market value of the subject, based on the Sales Comparison

Approach is calculated as follows:

Map

Label # Rusk Cty Parcel # Size (SF)

Unit

Equivalent

Opinion

Market

Value

Opinion

Rounded

1 246-03560-0000 250,841 $1.00 $250,841 $250,000

2 246-03658-0005 29,427 $2.40 $70,625 $70,000

3 246-03597-0000 25,032 $2.95 $73,844 $75,000

4 246-03596-0000 47,209 $2.80 $132,185 $130,000

5 & 6 246-03598-0000 &

246-03599-0000 202,596 $1.50 $303,894 $305,000

Total $831,389 $830,000

The market value of the subject, based on the Sales Comparison Approach, is estimated at

$830,000.

CORRELATION OF VALUE OPINIONS:

Valuation by Cost Approach .................................................................. No estimate

Valuation by Income Capitalization Approach ...................................... No estimate

Valuation by Sales Comparison Approach .................................................$830,000

FINAL OPINION OF VALUE:

The final step in the reconciliation process is to weigh each opinion of value accordingly. The estimated market value of the subject, as of April 4, 2024, is stated as follows:

Contributory Value of the Parcel #246-03560-0000 ..........................................$250,000

Contributory Value of the Parcel #246-03658-0005 ..........................................$ 70,000

Contributory Value of the Parcel #246-03597-0000 ..........................................$ 75,000

Contributory Value of the Parcel #246-03596-0000 ..........................................$130,000

Contributory Value of the Parcel #246-03598-0000 & 246-03599-0000 ..........$305,000

Total .......................................................................................................................$830,000

EIGHT HUNDRED THIRTY THOUSAND DOLLARS

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ASSUMPTIONS AND LIMITING CONDITIONS

1. The “Scope of Work”, as agreed upon by the client and appraiser, is the work the appraiser performed to develop the assignment results. Please refer to the “Scope of Work” section of this report.

2. This is an appraisal report which is intended to comply with the reporting requirements set forth under

Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an appraisal report.

As such, it includes full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report.

3. No responsibility is assumed for legal description, legal or title considerations. Title to the property is assumed to be good and marketable.

4. The property is appraised free and clear of any or all liens and encumbrances.

5. Responsible ownership and competent property management are assumed.

6. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

7. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.

8. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

9. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws.

10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with.

11. It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.

12. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report.

13. It is assumed that the utilization of the land is within the boundaries or property lines of the property described and that there is no encroachment or trespass.

14. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The appraiser's value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser's descriptions and resulting comments are the result of the routine observations made during the appraisal process.

~ 40 ~

ASSUMPTIONS AND LIMITING CONDITIONS

15. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property's value, marketability, or utility.

16. The total valuation in this report applies only under the stated program of utilization. The value allocations must not be used in conjunction with any other appraisal and is invalid if so used.

17. Possession of this report, or a copy thereof, does not carry with it the right of publication, in whole or in part. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only the proper written qualification and only in its entirety.

18. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.

19. The valuation of the property (i.e., Cost Approach, Sales Comparison Approach and Income Capitalization

Approach) is used in the appraisal to value only this property for the intended client. The appraised value, any parts of the appraisal, or valuation process must not be used for any other purpose or reason.

20. The client agrees that the appraisal firm does not by performing the services rendered, assume, abridge, abrogate, or undertake to discharge any duty of client to any other entity.

21. Any use of the appraisal report, by the client, is conditioned upon payment of all fees in accordance with the agreed terms.

22. In consideration for performing the services rendered at the fee charged, the appraisal firm expressly limits its liability to the amount of the fee. The appraisal firm expressly disclaims liability as an insurer or guarantor. Any persons seeking greater protection from loss or damage than is provided for herein, should obtain appropriate insurance. The client shall indemnity and hold harmless the appraisal firm and its employees, against all claims by any third party or any judgment for loss or damage relating to the performance of any services by the appraisal firm.

23. In the future, if the appraisal firm is compelled to produce documents or testify with regard to work performed, the client shall reimburse the appraiser for all costs and expenses incurred.

24. J. C. Norby & Associates and/or the appraisers are not qualified to render expert opinions regarding structural issues, water damage, environmental assessments (such as mold), engineering/mechanical issues, ADA and/or building code compliance, land planning, architectural experts, or soil conditions. If requested, J. C. Norby & Associates will recommend qualified experts in these fields to assist the client and/or the appraisal process.

22. 25. This appraisal report has been written for the intended use of the client listed in this appraisal.

Possession of this report, or a copy thereof, does not carry with it the right of publication (either in whole or in part), nor may it be used for any purpose other than the one stated in the Letter of Transmittal and the

Purpose of the Appraisal, without the express, written consent of the appraiser and client. Authorized copies of this report will be signed by the appraiser(s). Unsigned copies should be considered incomplete. All unauthorized or incomplete copies of this report should also be considered confidential, and as such, must be returned, in their entirety, to J. C. Norby & Associates, Inc.

~ 41 ~

CERTIFICATION

I certify that, to the best of my knowledge and belief:

- The statements of fact contained in this report are true and correct.

- The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.

- I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

- I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

- My engagement in this assignment was not contingent upon developing or reporting predetermined results.

- My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

- My analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice.

- I have made a personal inspection of the property that is the subject of this report.

- No one provided significant real property appraisal assistance to the person signing this certification.

- The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the

Appraisal Institute.

- As of the date of this report, I have completed the continuing education program for the state of Wisconsin.

- I have the appropriate knowledge of the specific market and relevant experience appraising properties similar in size and complexity to the property under consideration to complete this assignment with competence.

- I have performed no services as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.

Gregory Christoffel

WI Certified General Appraiser #2690-10

Signature Date: April 10, 2024

Expiration Date: December 14, 2025

~ 42 ~

QUALIFICATIONS OF GREGORY CHRISTOFFEL

J C NORBY & ASSOCIATES, INC.

EAU CLAIRE, WISCONSIN

EDUCATION:

Bachelor of Business Administration in Business Finance, University of Wisconsin-Eau Claire 2012-2016

General Appraiser Income Approach, McKossock Learning 2022-2023

General Appraiser Sales Comparison Approach, McKossock Learning 2022-2023

General Appraiser Site Valuation & Cost Approach, McKossock Learning 2022-2023

General Appraiser Market Analysis Highest and Best Use, McKossock Learning 2022-2023

General Report Writing & Case Studies, McKossock Learning 2022-2023

Residential Sales Comparison and Income Approaches, McKossock Learning 2021-2022

Residential Market Analysis and Highest & Best Use, McKissock Learning 2021-2022

Basic Appraisal Principles, McKissock Learning 2021-2022

Basic Appraisal Procedures, McKissock Learning 2021-2022

Residential Appraiser Site Valuation and Cost Approach, McKissock Learning 2021-2022

Residential Report Writing and Case Studies, McKissock Learning 2021-2022

2021-2022 15-Hr National USPAP Course, McKissock Learning 2021-2022

Corporate Valuation, University of Wisconsin-Eau Claire 2016

Strategic Management, University of Wisconsin-Eau Claire 2016

International Finance Management, University of Wisconsin-Eau Claire 2016

Financial Markets & Instruments, University of Wisconsin-Eau Claire 2015

Financial Investments, University of Wisconsin-Eau Claire 2015

Long Term Finanical Strategies, University of Wisconsin-Eau Claire 2015

Portfolio Management, University of Wisconsin-Eau Claire 2015

Business Operations Management, University of Wisconsin-Eau Claire 2015

Principals of Finance, University of Wisconsin-Eau Claire 2014

Intermediate Accounting II, University of Wisconsin-Eau Claire 2014

Intermediate Accounting I, University of Wisconsin-Eau Claire 2014

LICENSE INFORMATION

State of Wisconsin Certified General Appraiser - #2690-10

LENDING INSTITUTIONS

Alliance Bank, Associated Bank, Citizens Community Federal, Charter Bank, Citizens State Bank, Dairy State Bank, Farmers Merchants State Bank, First National Bank, First National Bank & Trust; First National Community Bank, Forward Bank, Frandsen Bank & Trust, Hiawatha National Bank, Independence State Bank, Lake Area Bank, Lake

Elmo Bank, Merchants Bank, Northwestern Bank, Oakwood Bank, Old National Bank, Peoples State Bank, Pillar

Bank, Prevail Bank, Royal Credit Union, Security Financial Bank, Sterling Bank, Unity Bank, Wauandee State Bank, WESTconsin Credit Union, WNB Financial

GOVERNMENT BODIES

Municipalities of Eau Claire, Altoona, Onalaska, Baldwin, Spring Valley; Small Business Administration;

PROFESSIONAL EXPERIENCE

Real Estate Appraiser – J.C. Norby & Associates, Inc., Eau Claire, Wisconsin

Owner – Casper KOA, Casper, Wyoming

Equity Partner – Casper East RV Park, Casper Wyoming

Portfolio Manager – Unity Bank, Augusta, Wisconsin

Mr. Christoffel is a Certified General Appraiser with experience in many different types of appraisals including campgrounds/RV Parks, multi-family properties, mobile home parks, office buildings, retail centers, neighborhood shopping centers, storage facilities, convenience stores, agricultural facilities, and various industrial properties.

A D D E N D U M

CONTRACT FOR PROFESSIONAL APPRAISAL SERVICES

(APPRAISAL CONTRACT)

AGREEMENT made on March 20, 2024, between Rusk County, hereinafter referred to as Client, and J.C. Norby and Associates, Inc. hereinafter referred to as Appraiser, agree as follows:

I – Identification:

Client hereby engages Appraiser, and Appraiser hereby agrees to prepare an appraisal report on the following parcels located in Ladysmith, Wisconsin:

1. 246-03596-000

2. 246-03597 000

3. 246-03598-000

4. 246-03599-000

5. 246-03658-005

6. 246-03560-000

It is noted, any building or site improvements currently present on any of these parcels will not be included in the valuation.

This is in essence a vacant land appraisal assignment.

II – Purpose of Report:

The purpose of the appraisal is to estimate market value for planning purposes.

The report will be in conformity with the Uniform Standards of Professional

Appraisal Practice (USPAP) of…