Exhibit E SOW Market Analysis.pdf

EXHIBIT "E"

STATEMENT OF WORK

FOR APPRAISAL SERVICES

Market Analysis and Feasibility Study (Commercial Concession Lease at Rough River Lake)

Introduction This statement of work addresses the U.S. Army Corps of Engineers (USACE) requirements for a fundamental market analysis and feasibility study for a campground at Rough River Lake, Kentucky in response to a Notice of Availability (NOA).

A fundamental market analysis and feasibility study is required to support the feasibility of such a venture by those applying in response to the NOA. The purpose of the market study is to assure that there is enough sustainable demand without adversely impacting the existing supply, to maintain a balanced overall market. The focus of the market study is on the overall demand within a defined market area, and of the proposed project’s ability to capture and sustain a share of the total (incremental demand). The study must identify and discuss any risks associated with longer-term changes in campground demand. In addition, the study must estimate the number of camp sites that the market could reasonably absorb over a specified forecast period, which is typically 3 years, taking into consideration competitive units in the existing inventory.

Any additional real estate (non-government) that is required for the applicant’s proposal must be directly identified and shown to be under control of the applicant.

Client: Unknown (Presumably any private entity responding to the NOA)

Intended User(s): To include the U.S. Army Corps of Engineers – Louisville District (USACE)

Intended Use: Interested parties responding to a NOA will be required to submit a fundamental market analysis and feasibility study to be reviewed by the USACE Review Appraiser. The fundamental market analysis and feasibility study will be considered as part of the review process of submitted applications for potentially awarding a Commercial Concession Lease to develop, maintain, and operate the property as a campground and related uses open to the public. The fundamental market analysis and feasibility study report will not be intended for any other use.

Provided Subject Property Information

If available, the following documents will be provided to the appraiser:

Location Map Plat of the Subject Property Other Maps and Exhibits

Appraisal Requirements and Instructions

Appraisal Format: The format of the completed assignment will be a written narrative report under the Appraisal Report option as described in the current edition of Uniform Standards of Professional Appraisal Practice USPAP, though it is recognized that this assignment will contain only certain components of an appraisal report, specifically a fundamental market analysis and feasibility study with conclusions based on the proposed use of the chosen property as a campground with related facilities. The assignment is to be based on a comprehensive study and analysis of the market that sets forth in detail, all the data, analyses, and conclusions of the appraiser.

This Statement of Work will guide the review process of the market analysis and feasibility study report to be submitted to USACE for review;

therefore, the contracted appraiser should consider this Statement of Work in developing their Scope of Work.

Effective Date: Unless otherwise instructed, the effective date of value will be the date of the property visit and inspection.

Environmental Unless notified in writing to the contrary, analysis Conditions: of the subject property in performing the market analysis will be based on the assumption that there are no environmental conditions adversely affecting the property and its use. Furthermore, the opinions and conclusions expressed should assume environmental compliance with all Federal, State, and Local regulations.

Appraisal Standards: The market study report is required to be prepared in accordance with the current edition and relevant sections of the USPAP. The market study report is NOT being performed in accordance with UASFLA (Yellow Book).

Market Analysis: The market analysis to be performed is a Level C Fundamental market analysis, which will include quantifiable data to support the opinions and conclusions. The six steps of a market analysis including property productivity analysis, market delineation, demand analysis, supply analysis, market equilibrium analysis, and capture analysis must be specifically addressed with sufficient detail as part of the market analysis report. The report must include opinions and conclusions as to the financial feasibility of developing, maintaining, and operating a campground and related facilities on the site by a private operator, and provide fundamental market data to support the opinions and conclusions.

As part of the market analysis, an opinion of the ideal improvements and physical characteristics of the site to compete in the market must be included.

Special Instructions

Prior to commencing work, the appraiser shall make full disclosure of any prior services as an appraiser or in any other capacity concerning the subject property and/or the client. Such disclosure must also be documented in the report.

The appraiser must have sufficient knowledge and previous experience appraising similar properties and/or appraisal problems described in this Statement of Work. Furthermore, the appraiser must be able to demonstrate they have geographic competency for the location of the subject property.

The opinions and conclusions must be reconciled with reasonable analysis and discussion regarding the rationale that led to the opinions and conclusions. The strengths and weaknesses of the market data, opinions and conclusions must be discussed sufficiently.

The contract appraiser must be a current and valid Certified General Real Estate Appraiser in the Commonwealth of Kentucky.

General Appraisal Requirements and Instructions

In order for the submitted report to be approved, the report, including the opinions and conclusions, must be credible, reasonable, and appropriately supported within the context of the report.

The report must include a statement similar to the following in the signed certification statement: “I, (appraiser’s name), do hereby certify that I have no present and no prospective interest in the subject property, that I have personally examined the subject property, that my fee for completing this assignment is not contingent upon the any predetermined conclusion nor upon any condition excepting the predetermined fee, that to the best of my knowledge and belief the statements and opinions in this report are correct, subject to the limiting conditions herein set forth, and that the report has been made in conformity with recognized appraisal procedures and applicable principles of law.”

The subject property will be assumed to be free and clear of encumbrances unless otherwise noted.

The appraiser’s Scope of Work must be sufficient to result in credible assignment results for the intended use.

This Statement of Work must be included within the addenda of the appraisal report.

An inspection by the appraiser(s) signing the report is required and must be documented in the report including the date of inspection.

The appraisal report will be technically reviewed for compliance with this Statement of Work and applicable USPAP Standards. Any non-compliance or inadequacies discovered by the USACE Review Appraiser will require revisions and/or clarification to the report.

Clear, appropriate, and credible analysis based on documented market research is required to support the stated opinions and conclusions in the report.

The data and analysis must provide sufficient detail for the client, intended user and the USACE Review Appraiser to understand the data, the analysis, and the logic of the appraiser’s opinions and conclusions.

Any use of statistical concepts like regression analysis for any analysis must include sufficient commentary and reasoning for support in interpretation of the validity of the results. Regression analysis may not be employed in the appraisal without prior discussion and concurrence with the USACE Review Appraiser.

Documentation of the market data utilized in the appraisal report must be included in the addenda.

A detailed description/analysis, with photographs of the subject property is required, which should include a plot plan, a description of any special features, description of the site including size and shape, topographical features, soil and subsoil conditions (if known), drainage and flood zone information, access to the site and ingress/egress, availability of utilities, the subject site’s relationship to neighboring properties, potential or existing nuisances or hazards, known easements, rights-of-way and/or encroachments, and overall functional adequacy of the site.

Maps displaying the location of all market data must be included. The maps should provide sufficient detail to show site identification and location so that market data can be located. All maps must include a north direction arrow.

Proposals to construct a commercial campground will include a Market Analysis and Feasibility study justifying the proposed development within the area to be leased, as well as any additional real estate required for said proposal.

The study will be in accordance with the suggested outline for developing market analysis:

SUGGESTED OUTLINE FOR DEVELOPING

MARKET ANALYSIS AND FEASIBILITY STUDY

• TABLE OF CONTENTS

• APPRAISER’S CERTIFICATION

• EXECUTIVE SUMMARY

Assignment Objective Extraordinary Assumptions Description of Market Area and Campgrounds around “Project” Lake (located ON or adjacent) Map of “Project” Lake – Campground Locations Identified Aerial Views of the Campgrounds around “Project” Lake Submarket Competition (if appropriate)

• LIMITING CONDITIONS AND ASSUMPTIONS

• SCOPE OF WORK

Purpose of the Market Analysis and Feasibility Study Client (Corporate or Partnership/Individual) Intended User – U. S. Army Corps of Engineers/Client Intended Use (include Letter of Interest/Client Proposal) Interviews and Discussions with related parties and Intended User(s) Extent of Data Research

• MARKET ANALYSIS

Map of the General Market Area - “Project Lake” Submarket map (if applicable) Climate and Seasonal Factors Population within “Project” market area Population Characteristics Employment Characteristics Income Characteristics Household Net Worth Characteristics Residential Housing Market Characteristics Consumer Spending Characteristics Relevant Recreational Characteristics

• SUMMARY OF FINDINGS

Overall supply/demand for campground rentals

SUBJECT “PROJECT’ CAMPGROUND MARKET SURVEY RESULTS AND

ANALYSIS

Supply-Occupancy and Vacancy (include all campground construction proposed/recently completed) Related Submarket Supply/Demand (campgrounds in close proximity) Launch Fees at public ramps Fees for private ramp Projected Income/Expense Rates Related Studies and Surveys (Summarize or place in addenda)

MARKET ANALYSIS AND FEASIBILITY CONCLUSIONS

EXHIBITS AND ADDENDA

List and maps of existing competition Campground Photos Appraiser’s Qualifications