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HomeMy WebLinkAboutBack-Up DocumentsU.S. Sailing Center, Inc 2476 South Bayshore Drive Miami, Miami Dade County, Florida 33131 Special Purpose Property Appraisal Report —17-0170 Market Rent Prepared for: Igor Tsigelman, Property Management Representative Department of Real Estate & Asset Management, City of Miami 444 SW 2 Avenue, 3rd Floor Miami, Florida 33130 Armada Appraisal & Consulting Company Armada Appraisal & Consulting Company PO Box 1247 South Miami , FL 33243 Telephone: 305-266-3930 Fax: 305-266-3935 July 24, 2017 Igor Tsigelman, Property Management Representative Department of Real Estate & Asset Management City of Miami 444 SW 2 Avenue, 3rd Floor Miami, FLorida 33130 RE: Appraisal Report of the U.S. Sailing Center, Inc. located at 2476 South Bayshore Drive, Miami, Miami Dade County, Florida 33131 Dear Mr. Tsigeiman: As requested, the above referenced property has been examined for factors deemed pertinent in arriving at market rent pursuant to its current and existing "As Is" use; the purpose of this appraisal. In order to carry out this assignment, a market study of real estate activity in the vicinity of the subject property has been conducted. This investigation included the collection and analysis of available economic data pertaining to similar and comparable developments and/or operations as of the recent past. The sources of this data included county deed records, our own data bank, other real estate brokers, appraisers, and knowledgeable individuals active in the area. Based upon our investigation, the following market rent emanates from those uses currently permitted and in existence within the premises which constitute the subject property, based on comparable developments and/or operations derived from the open market. These uses include operations such as a dry storage, special events, boat rentals and sales of Olympic and sailing merchandise. All concluded to be the subject property's "As Is" existing uses. MARKET RENT CONCLUSIONS Effecitve Date May 5, 2017 Monthly Market Rent $2,250 Annual Market Rent $27,000 Average Gross Sales - 3 Years $215,726 Effective Rate 12.52% Average Gross Profits - 3 Years $135,726 Effective Rate 19.89% The opinions of value stated above, as well as every other element of this appraisal, are qualified in their entirety by the Contingent and Limiting Conditions set forth in another part of this report which is an integral part of the appraisal. As part of the Contingent and Limiting Conditions, the value conclusion is subject to completion of an Americans with Disabilities Act (ADA) compliance survey of the property. It is possible that a compliance survey with a detailed analysis of the provisions associated with ADA could reveal that the property is not in compliance with one or more stipulations. If so, this fact could have an effect upon the value of the property. Since I have no direct evidence relating to the issue, I did not consider possible noncompliance with the requirements of ADA in estimating the value of the property. Exposure Time — Is not considered applicable for this valuation assignment. The appraiser(s) certify and agree that: The appraiser(s) have no present or contemplated interest in the property appraised and that neither the employment to make this appraisal nor the compensation for it is contingent upon the appraised value of the property. 2. The appraiser(s) 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. 3. He has 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. 4. Albert J. Armada, MAI, SRA has personally inspected the subject property. 5. According to the best of my knowledge and belief, all statements and information in this report are true and correct; and the appraiser(s) have not knowingly withheld any information. 6. 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. 7. The analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). 8. I certify that to the best of my knowledge and belief, the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. As of the date of this report, Albert J. Armada has completed the requirements of the continuing education program of the Appraisal Institute. 1D. No one provided significant professional assistance to the person signing this report Albert J. Armada, MAI, SRA has prepared all conclusions and opinions concerning the real estate that are set forth in the appraisal. 11. My compensation for completing this assignment was not contingent upon the development of reporting of a predetermined value or direction of value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or occurrence of a subsequent event directly related to the intended use of this appraisal. 12. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 13. Based on my experience, it is my opinion that I meet the qualifications to provide the following opinion of the subject property's value. 14. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. No changes of any item of the appraisal report shall be made by anyone other than the appraiser(s), and the appraiser(s) shall have no responsibility for any such unauthorized changes. This letter of transmittal and the pages that follow constitute my report, including the data and analyses utilized in forming an opinion of value. Should you have any questions concerning this report, please do not hesitate to call my office. Respectfully submitted, Albert J. Armada, MAI, SRA, CCIM State Certified General Real Estate Appraiser No. RZ 397 CONTINGENT AND LIMITING CONDITIONS The certification of the appraisers appearing in this appraisal report is subject to the following conditions and to such other specific conditions as are set forth by the appraisers in the report. 1. The appraisers assume no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor do the appraisers render any opinion as to the title, which is assumed to be marketable. The property is appraised as though under responsible ownership. 2. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. The appraisers have made no survey of the property. 3. The appraisers are not required to give testimony or appear in court because of having made this appraisal with reference to the property in question unless arrangements have been made therefore. 4. The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 5. The appraisers assume that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. The appraisers assume no responsibility for such conditions or for engineering which might be required to discover the factors. 6. Information, estimates, and opinions furnished to the appraisers and contained in this report were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the appraisers can be assumed by the appraisers. 7. Disclosure of the contents of this appraisal is governed by the by-laws and regulations of the professional appraisal organizations with which the appraisers are affiliated. Neither all nor any part of the contents of this report or copy thereof (including conclusions as to property value, the identity of the appraisers, professional designations, reference to any professional appraisal organizations, or the firm with which the appraisers are connected) shall be used for any purposes by anyone but the client or his assigns without the previous written consent of the appraisers, nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media without the written consent and approval of the appraisers. 9. On all appraisals involving proposed construction, the appraisal report and value conclusions are contingent upon completion of the proposed improvements, if any, in accordance with the plans and specifications. 10. Unless otherwise stated in this report, the existence of hazardous material, including, but not limited to, asbestos, polychlorinated biphenyls, petroleum leakage or agricultural chemicals, which may or may not be present on the property, were not called to the attention of, nor were they observed by the appraisers. The appraisers have no knowledge of the existence of such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The presence of substances as listed above, or substances such as asbestos, urea -formaldehyde foam insulation, chemical or toxic waste, or other potentially hazardous materials may affect the value of the property. The value opinion is predicted on the assumption that there is no such material on or in the property, or on or in adjoining properties that would cause a loss in value to the property being appraised. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required discovering them. The client is urged to retain an expert in this field, if desired. In the event that a conclusion is reached whereby corrective action will be required to clean up any environmental contamination, the appraisers will at that time retain the right to modify and/or change the value conclusions presented herein. 11. The values as concluded herein are entirely contingent upon the subject property not being within or subject to a federally designated potential Endangered Species area as defined by the U.S. Fish and Wildlife Service, which, as a result might otherwise limit, restrict, and/or prevent development of the subject to its highest and best use. 12. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 13. Responsible ownership and competent property management are assumed. 14. All engineering information, if any, is assumed to be correct. 15. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 16. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined, and considered in the appraisal report. 17. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value opinion contained in this report is based. 18. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 19. The forecasts, projections, or operating estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to change as a result of variations in the market. 20. The construction and condition of the improvements mentioned in the body of this report are based on observations. No engineering study has been provided which would assist in the discovery of any latent defects. No certification as to any of the physical aspects could be given unless a proper engineering study was made. 21. Possession of this report or a copy thereof does not carry with it the right of publication. It may not be used for any purpose by anyone other than the addressee or the Appraisal Institute without the previous written consent of the appraisers. TABLE OF CONTENTS Letter of Transmittal Title Page Page INTRODUCTION 1 PREAMBLE 2 SUMMARY OF SALIENT FACTS AND CONCLUSIONS 2 EFFECTIVE DATE OF THE APPRAISAL/DATE OF THE REPORT 3 PURPOSE OF THE APPRAISAL 3 INTENDED USE OF THE APPRAISAL 3 MARKET VALUE DEFINED 3 MARKET RENT DEFINED 3 PERCENTAGE LEASE, RENT & OVERAGE DEFINED 4 PROPERTY INTERESTS APPRAISED 4 PROPERTY IDENTIFICATION 4 EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS 5 SCOPE OF THE APPRAISAL 6 FACTUAL DESCRIPTIONS 9 MARKET DESCRIPTION AND ANALYSIS 2 SITE ANALYSIS 11 ZONING 13 ZONING MAP 13 AERIAL PHOTO 14 SITE MAP. 15 FLOOD MAP 16 REAL ESTATE TAX INFORMATION 17 IMPROVEMENTS DESCRIPTION 18 ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER 21 HIGHEST AND BEST USE ANALYSIS 21 SALES COMPARISON APPROACH — COMPONENTS 22 INCOME APPROACH - COMPONENTS 25 FINAL MARKET RENT ESTIMATE 42 ADDENDA 43 SUBJECT PHOTOS 43 ZONING DATA ADDENDA 55 LEASED PREMISES EXHIBIT 59 REGIONAL ANALYSIS 60 PURCHASE ORDER 68 APPRAISERS QUALIFICATIONS 70 INTRODUCTION PREAMBLE Considerable attention, analysis and research has been undertaken to address the appraisal problem; estimating market rent for the subject property. As a result of various irrefutable facts about the subject property and its operation, it is considered almost unique. Thus, in terms of the appraisal problem at hand, it is considered a limited market property. The subject property has an incomparable, waterfront location in Coconut Grove; adjacent to Kennedy Park with frontage along South Bayshore Drive. It is within the jurisdiction of the City of Miami and it is owned by the municipality. The subject property is operated by the U.S. Sailing Center, Inc. As a not -for -profit, nevertheless, it is able to generate gross sales (gross revenues) from its various uses and activities, limited by the governing lease agreement and its physical characteristics - the demised premises. There are many known waterfront marina operations for profit throughout South Florida, as well as a few not -for -profit operations similar to the subject property. The activities present in all operations are somewhat similar and include various combinations of marine storage and services, as well as ancillary uses. Few operate and are regulated via contractual agreements like the U.S. Sailing Center. In fact, the most similar, competitive locations and operations exist within the incorporated area which is the City of Miami. As such, the City of Miami creates the limited market within which the subject property can be said to belong and compete. This type of operation renders an invaluable service to the community at large. It extends the greater good offered and made available by governmental efforts for open spaces. Nevertheless, it is to be expected that a fair return to the landlord (City of Miami) is a necessary, integral component of the relationship. The appraisal assignment consists of addressing the existing (permitted) uses; there was no contemplation of a zoning change allowing higher intensity and density development. As such we have considered the highest possible return to the landlord in view of the existing uses, historical payments to the City by the U.S. Sailing Center and competitive revenue streams provided by the comparabies analyzed. Furthermore, as a result of our analysis of various competitive income streams compared with the existing uses, we recommend that the U.S. Sailing Center be assisted and encouraged to increase its sales volumes (gross revenues) as suggested by market evidence from other not -for -profit operations on public lands. Page E 1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Client: City of Miami Property Owner: City of Miami Intended User: U.S. Sailing Center Property Address: 2476 South Bayshore Drive, Miami, Miami Dade County, Florida, 33131 Property Type: Civic Space/Public Parks/Special Purpose Inspection Date: May 05, 2017 Effective Date of Appraisal: May 05, 2017 Report Date: July 24, 2017 Property Rights Appraised: Leased fee estate as to Market Rent Classification of Report and Appraisal: Appraisal Report Land Size: 1.76 Acres Dry Land: 1.76 Acres or 76,850 SF Submerged Land None Building Size A/C: 5,562 SF Building Size Open/Utility: 1,169 SF Highest and Best Use as Vacant: Civic Space/Parks/Open Space — Marina Operations (Maximize Services) Highest and Best Use as Improved: Civic Space/Parks/Open Space — Marina Operations (Maximize Services). MARKET RENT CONCLUSIONS Efecitve Date May 5, 2017 Monthly Market Rent $2,250 Annual Market Rent $27,000 Average Gross Sales - 3 Years $215,726 Effective Rate 12.52% Average Gross Profits - 3 Years $135,726 Effective Rate 19.89% Exposure Time — Is not considered applicable for this valuation assignment. Pagel 2 EFFECTIVE DATE OF THE APPRAISALIDATE OF THE REPORT INSPECTION DATE: May 05, 2017 EFFECTIVE DATE: May 05, 2017 DATE OF THE REPORT: duly 24, 2017 PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market rent for the property, as of the appraisal data INTENDED USE OF THE APPRAISAL The intended use of this appraisal is to assist the City of Miami in making a business decision on the subject property. MARKET VALUE DEFINED 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, 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. The foregoing definition of and the conclusions as to market value in this report refer to gross nominal values rather than net present values to the current owner and are based on market occupancy levels at the time of the appraisal. There are no discounts for the cost of selling the property, for the time to sell, or for carrying costs during marketing periods. MARKET RENT DEFINED "Market Rent" according to the 14th Edition of The Appraisal of Real Estate, a publication sponsored by the Appraisal Institute, is defined as: "Market rent is the rental income a property would probably command in the open Page 13 market. It is indicated by the current rents that are either paid or asked for comparable space with the same division of expenses as of the date of the appraisal Market rent is sometimes referred to as economic rent." And further: "The amount of data needed to support a market rent estimate for a subject property depends on the complexity of the appraisal problem, the availability of directly comparable rents, and the extent to which the pattern of adjusted rent indications derived from the comparables differs from the income pattern of the subject property. When sufficient, closely comparable rental data is not available, the appraiser should include other data, preferably data that can be adjusted. If an appraiser uses proper judgment in making adjustments, a reasonably clear pattern of market rents should emerge." PERCENTAGE LEASE, PERCENTAGE RENT & OVERAGE RENT DEFINED According to the 4th Edition of The Dictionary of Real Estate Appraisal, a publication sponsored by the Appraisal Institute, the following relevant terms are defined as: Percentage Lease. A lease in which the rent or some portion of the rent represents a specific percentage of the volume of business, productivity, or use achieved by the tenants. Percentage Rent. Rental income received in accordance with the terms of a percentage lease; typically derived from retail store and restaurant tenants and based on a percentage of their gross sales. Overage Rent. The percentage of rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of a sales in excess of a specified breakeven sales volume. PROPERTY INTERESTS APPRAISED Leased fee estate as to Market Rent PROPERTY IDENTIFICATION Folio Number: Legal Description: 01-4122-001-1591 Portions of Lots 14 & 15, Block 43 DESC BEG 33OFTSELY & 25FTSWLY OF NE COR OF LOT 14 CONT SWLY 78FT NWLY 43FT N93FT SWLY 68FT SELY 462FT NELY 183FT NWL Y390FT TO POB, RHODES AMD PLAT OF NEW BISCAYNE, according to plat thereof as recorded in Plat Book B, Page 16, of the public records of Miami Dade Cou nty. Page 14 The above legal description was obtained from the public record of the Miami Dade County's Property Appraiser's Office. It may not be entirely accurate and thus a survey is recommended. SALES HISTORY No transfers of title are known to have occurred over the past three years. EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS Extraordinary Assumption: This report does not rely on any extraordinary assumption. For clarification, Extraordinary Assumption is defined as "An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. (USPAP, 2002 ed.) Hypothetical Condition This report does not rely on any hypothetical condition. Hypothetical conditions are contrary to what exists, but the conditions are asserted by the appraiser for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment only if: • Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; • Use of the hypothetical condition results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions.(USPAP, 2002 ed.) Page 15 SCOPE OF THE APPRAISAL In preparing this appraisal, the appraiser inspected the subject property and reviewed the U.S. Sailing Center. Inc. Lease Agreement dated September 22, 1997 for an initial term of 15 years, with one 5 year option expiring on September 30, 2017. In addition we have reviewed Amendment No. 1 dated October 5th, 1998, Amendment No. 2 dated June 18`h, 2002, Amendment No. 3 dated August 19th, 2003 and Amendment No. 4 dated November 111h, 2011. The appraiser researched, confirmed, and analyzed data in defining the subject product -type, competitive product types, subject market including competitive uses and operations, as well as physical characteristics. As a part of the valuation process, the appraiser performed an appraisal process, as defined by the Uniform Standards of Professional Appraisal Practice, and consisting of a comprehensive description of the subject property and the specific and relevant market data, analyses, and conclusions necessary to arrive at an estimate of market rent for the subject property. The subject property is being analyzed on an "As Is" basis based on its current and existing use, not at its highest and best use. Appraisal Problem Defined and Addressed The property that is the subject of this report consists of an incomparable, superior waterfront site in Coconut Grove. The subject property is operated by the U.S. Sailing Center, Inc., under lease agreement with the City of Miami, the lessor. The lessee — U.S. Sailing Center, Inc. — is a not -for - profit. Nevertheless, it is able to generate gross sales (gross revenues) from its various marine related uses and activities, limited by its physical characteristics; the demised premises. For nearly 30 years the U.S. Sailing Center, Inc. has operated from its location in Coconut Grove. As of the time of inspection the U.S. Sailing Center, Inc. had operations that would be found similar to most marina operations throughout South Florida, either for profit or non-profit, although there are vastly more of the former than the latter. The activities present in all operations are somewhat similar and include various combinations of marine storage and services, and entertainment: special events. In addition, the U.S. Sailing Center as a not -for -profit lessee is required to enhance the public purpose and the benefit to residents in the water sport recreation facilities afforded under the use of the demised premises. More specifically, it must make the facilities available at least for six (6) events per year to provided recreational and educational activities with priority to inner city children of the City of Miami from a list of participants to be provided by the City of Miami Parks and Recreation and shall be limited to thirty (30) participants on any given day. At least two of these activities shall be boating excursions which shall occur within the months of June, July, and/or August. In performing such activities the U.S. Sailing Center would not have to incur in what otherwise would be a payment in default of $1,000 per event — "Community Service Fee". Page 16 The appraisal assignment is to estimate market rent pursuant to the current and existing uses present in the U.S Sailing Center, Inc. Given the context within which the current and existing uses are present within the demised premises, the U.S Sailing Center, Inc's operation is surmised to be a marina operation, in that it has components like marine storage and services as well as related special. The categorization of the U.S Sailing Center, Inc operation as a marina — notwithstanding its not -for -profit standing - is critical to the solution of the appraisal problem. It defines the subject product -type. And as a result, this categorization further defines the market to which the subject product -type belongs. Thus the subject market can be defined by its use — utility — and to a lesser degree also by geography, given its characteristic waterfront exposure. There are various examples of waterfront marina operations for profit throughout South Florida, as well as a few not -for -profit with operations that are similar to those found in the subject property. A thorough research and analysis of marina operations was undertaken, that can be considered to somewhat competitive with the subject product -type. The subject property is described in detail in the following text. The market surveys performed are discussed and analyzed, and an estimate of market rent for the property is concluded, as of the appraisal date. Estimating Market Rent The appraiser researched, confirmed, and analyzed data in defining the subject product -type, competitive product types, subject market and related supply and demand trends, physical characteristics, intangible characteristics, units of measurements and comparison, rental rates, leasing terms and applicable methodologies. Application of portions or components of both the sales comparison and income approaches were undertaken in order to arrive at a determination of market rent for the subject property. Broad descriptions of the applications follow. The Sales Comparison Approach relies heavily upon the principle of substitution. The most relevant and recent sales and current listings of competitive properties at the time of appraisal are identified. Then, a comparative analysis between the sales and listings, and the subject involves consideration for differences in time, terms of sale, location and physical characteristics. The reliability of the Sales Comparison Approach depends, to a large extent, upon the degree of comparability between the sales and the subject. The major strengths of this approach include the reflection of actual market transactions and the fact that common denominators are fairly easily determined. The potential weaknesses of this approach arise from the fact that the data is historical and ideal comparables are usually very difficult to obtain. The Income Capitalization Approach to value is predicated upon the relationship between income and value. Although all of the appraisal principles are involved in this approach, the principle of anticipation is particularly applicable. This appraisal technique converts anticipated annual net income into an indication of value. This process is called capitalization, and it involves multiplying the annual net income by a factor or dividing it by a rate that weighs such considerations as risk, time, Page 17 return on investment, and return of investment. The appropriateness of this rate or factor is critical, and there are a number of techniques by which it may be developed. The rate (or factor) is applied when using the direct capitalization approach to arrive at market rent. The applicability and reliability of each approach, or component thereof, is considered in the determination of the final opinion of value. This process is discussed in the reconciliation and final value conclusion. Page j 8 FACTUAL DESCRIPTIONS MARKET DESCRIPTION AND ANALYSIS Defining the market area was considered of primary importance, in order to subsequently identify similar and competitive product types to assist in the solution of the appraisal problem. Considerable investigation and analysis was undertaken in defining the subject property's market area. It was concluded that the subject property's market area can be defined both by geoqraphv and most importantly by use. "Market analysis examines the productive attributes of a property; the relationship of supply and demand, thereby delineating the market in which the property competes." "Market analysis makes it possible to identify the effective demand for and competitive supply of a particular property type (use) in a specific location (geography) at a specific time." Source: Market Analysis of Real Estate, Appraisal institute, 2005 The above descriptions, or definitions, regarding market analysis, in practical terms, point towards two specific areas of concentration; geography and use. As such a market analysis must focus on both use and geography, which can operate as if synonymous of one another, they can overlap in part or entirely, or they can be separate and distinct from one another. In the case of the subject the market area is geographically defined by water frontage. And its terms of use those activities currently present in the subject property are classified as a marina. The subject property is located within the incorporated area of the city of Miami, in Miami Dade County. The subject property is categorized as a marina. This product type categorization of the subject property is significant, especially in identifying similar and competitive product types. Similar and competitive product types — marina - were identified throughout South Florida and in Miami Dade County as well, and serve to define the subject market. These product types have certain specific characteristics in common. The shared characteristics consist of physical exposure, visibility, access to waterfronts. Additionally marinas have specific sources of revenue, such as marine storage — wet and/or dry — boat services — repairs, gasoline dispensing, launching — entertainment — special events, food and beverages, fishing related shops and facilities, membership. These physical characteristics and uses advertise to the customers, and attract and invite them to the premises. As such, the subject market area is defined as an expanded area that geographically includes, in this case, Miami Dade County and South Florida. Participants in this market are not defined by geographic proximity but primarily by utility. There are many known waterfront marina operations for profit throughout South Florida, as well as a few not -for -profit operations somewhat similar to the subject property. The activities present in all operations are somewhat similar and include various combinations of marine storage and services as Page 19 well as food, beverage and entertainment. Few operate and are regulated via contractual agreements in government owned lands as not -for -profit. In fact, the most similar, competitive locations and operations exist within the incorporated area which is the City of Miami. As such, the City of Miami creates the limited market within which the subject property can be said to belong and compete. The results of our investigation in the whole of Miami Dade County are reported in the following schedule. We have been able through our efforts to identify most major marina operations in Miami Dade County. Marina Operations in Miami Dade County Na me Loggerhear Marina Aventura Miernanna at Bayside Pelican Harbour Marina Miami Yacht Club Miami Outboard Club island Garden Deep Harbour Brikcell Place Manna Coconut Grove Sailing Club U5 Sailing Club Coral Reef Yacht Club Biscayne Bay Yacht Club Prime Manna ................ Dinner Key Grate Harbour Manna Grove Key Manna..... Marine Stadium Manna Rickenbacker Marina Miami Beach Manna Matheson Hammock Manna Snapper Creek Manna Key Biscayne Yacht Club Biii Bird Manna at Hauloter Park Crandon Palk Marina Black Point Manna Homestead Bavfront Park Manna Address Folio Wet Slips Dry Slips Moorings 3601 NE 207 Street 28-1235-035-0040 100 0 401 Byscayne BKd 01 0100-000-0520 156 0 126575 NE 79 Street 01-3208-031-0010 139 0 1031 MaAdhur Cswk 01 3231-002-0011 40 172 1099 MacArthur Csvy 01-3231.000-0013 59 140 838 MacArthur Csvey 013231-000-0030 50 0 1909 Brickell Are 01.4112-000-0010-20 70 0 2990 0 bayslwre Date 01-4121-040-0012 247 31 2476 S Bayshore Drive 01-4122-001-1591 11 44 2484 5 Bayshore Drive 01-4122-091-1605 103 66 2540 S Bayshore Drive 01-4122-000-0010 76 47 2546 5 Bayshore Drie 01-4122-001-1630 149 .......... 3500 Pan American Dr 01.4122-002-0010 806 2640 S Bayshore Dr 01-4122-002-0011 57 ......................... 3385 Pan American Dr 01-4122-002-0040 3 3501 Rickenbacker Cswy 01-42174100-0030 22 3301 Rickenbacker Csrry 01-4217-000.0020 344 Alton Road 02-203-409-9210 NiA 035105-000-0010 1190 Snapper Creek Lakes Rd 03-5107-004-0290 180 Harbor Dnse 24-4232-06-0021 15600 Collins Ave 30-2214-008-0010 7200 Crandon 6100 30-4232-001.0010 24775 SW 87 Asenue 30-6022- 7030 9698 SW 328 Street 30-7021-001-0010 Amenities Restaurant 0 Monly's ... 0 225 Dinner Key 260 Dinner Key 325 Dinner Key 296 Virginia Key Virginia Key 416 0 MB Redevetopmenl 259 71 Restaurant Location Operator Aventura Loggerhead Mona Pad of Bayfronl Park Rouse Company Pelican Harbor Park Miami Dade County Watson island Miami Yacht Club Watson Island Miami Outboard Club 'Watson Island Island Garden Deep Harbour Leased Submerged Brickell Place Condo Leased Submerged Coconut Grnre Sailing Club Leased Upland US Sailing Club Leased Submerged Coral Reef Yacht Club Leased Submerged Biscayne Bay Yacht Club Leased Submerged Prime Manna City Hall City of Miami Leased Up -Sub Grove Harbour Marina Leased Up -Sub Grove Key Manna Leased Upland Marine Stadium Marina Leased Up -Sub. . Rickenbecker Manna Leased Upland City of Miami Beach Coral Gables City of Coral Gables 36 31 Fuel Coral Gables Snapper Creek Lakes Club 100 40 Key Biscayne Key Biscayne Yacht Club 152 0 Healover Park Miami Dada County 311 130 Yes Restaurant Key Biscayne Miami Dade County 196 360 Homestead Loggerhead Mine 173 60 -_. Homestead Miami Dade County Page 10 SITE ANALYSIS Address: Folio Number: Land Area: Dry Land Area: Submerged Land Area: Total Land Area: Primary Road Frontage: Access: Shape: Corner Lot: Visibility: Paved Street: Sidewalk: Curb And Gutter: Storm Sewer: Utilities Public Electricity: Water Supply: Public Sewer: Natural Gas: Underground Utilities: Adequacy of Utilities: Street Lighting: Traffic Count: Landscaping: Topography: Flood Plain: 2476 South Bayshore Drive Miami, Miami Dade, Florida, 33131 01-4122-001-1591 (Dry) 76,850 SF Not applicable 76,850 SF South Bayshore Drive South Bayshore Drive. No South Bayshore Drive. Yes No No Yes 1.76 Acres 1.76 Acres Yes Municipal Public Yes No Yes Average Yes 16,300 daily cars - 2015 Average Basically Level The Flood Insurance Rate Maps, published by the Federal Emergency Management Agency panel number 12086C0476L dated September 11, 2009 , indicate the following: Zone AE. Special Flood Hazard areas subject to inundation by the 1 % annual chance flood. The 1% annual flood (100-year food), also known as the base flood, is the flood that has a 1 % chance of being equaled or exceeded in any given year. Areas of Special Flood Hazard include zone AE. Zone AE is described as Base Flood Elevations determined. Page j 11 Earthquake Zone: Irrigation Water: Easements/Encumbrances: Environmental Issues: Topographical and Soil Conditions: Functional Utility: Site Improvements: Comments: No No No U/K While it is beyond the appraiser's expertise to determine the presence or extent of any environmental contamination within the site, it is incumbent upon us to comment as to any visible evidence of contamination or any apparent source of potential contamination. Upon the normal course of inspection of the subject site the appraisers found no readily visible evidence of contamination. The inspection performed by the appraiser is limited to visible and accessible areas of the site only. This appraisal is subject to the extraordinary assumption that the subject site is free and clear of potential hazardous contamination. Should contamination be discovered in the future, such discovery could materially affect the value of the subject property and the undersign reserve the right to reconsider their value conclusion. Basically Level. A topographical survey was not provided; however, the land appeared to be relatively level and at grade with the adjoining public right-of-ways. We have no data on subsurface conditions, but due to improvements on this and adjoining parcels, it is apparent that the load bearing capacity of the site is sufficient to support improvements to the site. Ali utilities were present at the subject site. Electricity is provided by Florida Power and Light. Telephone service is provided by AT&T. Water and sewer services are provided by the Miami -Dade Water and Sewer Department. Site improvements, in addition to the structural footprints, include asphalt areas for vehicular maneuverability. The land(s) as reported herein are considered the correct figures, and emanate from the public records of the Miami Dade County's property Appraiser's Office. Page E 12 ZONING Zoning: Legally Conforming: Zoning Change Requested: Likely: CS, Civic Space Parks Yes No No The Civic Space/Parks (CS) zoning class is designated for public, philanthropic, educational and other institutional uses. Civic Spaces should be at the ground level, landscaped and/or paved, open to the sky and shall be open to the public. Please see addenda for additional information on zoning. Zoning Map Page 13 Flood Map PANEL. 047 FIRM FL000 INSURANCE RATE MAP 1t II-(ADE COCATV. . FLORIDA AND 1t('O!tIMt L r.19 t lily.. .t5 PANEL 476 OF 1031 AP ice;%rONT.IPMPht6ES LAYOUT] rat 'B F a1cL y *rm.. <xint; MAP NUMBER 12086C0476L. MAP REVISED SEPTEMBER 11, 2009 Page 116 REAL ESTATE TAX INFORMATION A summary of the assessment of the subject is provided in the following tables. The subject property is reported as tax exempt; no real estate taxes were levied. ASSESSMENT & TAXES - TAX YEAR 2016 Parcel 1 Tax Parcel #. 01-4122-001-1591 Market Value ,Assessed Land Value $3,074,0001 Assessed Building Value $10,000` Other Value $0 -Total Assessed Land Value •$3,074,000 City Tax Rate 0.00000% 1CountyTax Total Assessed Building Value $10,000 Rate 2.18250%' Total Estimated Other Value $0 Other Tax Rate 0.00000% 2.18250% Total Assessment Assessment Ratio Total Estimated Tax Amount Total Estimate/GBA Total Estimate/Acre Combined g$3,084,000 Rate 0.00%' so $0 OD so Page117 GENERAL IMPROVEMENTS DESCRIPTION Property Type No. of Buildings Gross Buifdinq Area General Property Class Land to Building Ratio Effective Age Economic Life Depreciation Parking Type Condition of Parking Special Purpose 1 5.562 B 37.36:1 10 60 16.70% Surface Average Bldg/Component Desc BldglComponent 1 Year Built Effective Age Total Economic Life Remaining Economic Building Type Building Description Stories Building Area SF First Floor Perimeter Floor Coverings Ceiling Height Basement Use Appeal and Appearance Condition Construction Detail Construction Class Construction Quality Frame Type Roof Type Roof Cover Exterior Walls Mechanical Detail Plumbing Heating Type Cooling Type Electrical 2002 5 50 45 Low Rise CBS 2 5,562 0 Vinyl 12 None Average Good B Good Poured Concrete Flat Tar and Gravel Concrete Block Average Electric Package Units Average The subject property consists of one structure, which details are reported above, containing 5,562 square feet of gross building area (GBA), based on our measurements taken at the time of inspection. The square footage reported was either under air-conditioning or was fully enclosed on all side except for entries used for pedestrian access, equipment storage or utility space. The sum total of the square footage is contained in the two floors, and is located in each floor towards the east and west facades; separated by a covered but open space, a form of large hallway leading from the entrance of the facility towards the rear and to the Biscayne bay. The covered but open space contained in total from both floors is 2,336 square feet; approximately 1,168 square feet per floor. There was one other structure on the premises: a small gazebo. According to the records of the Miami -Dade County's Property Appraiser's Office, the subject property has a total of 5,801 adjusted square feet (ASF) of building area situated on 76,850 square feet of net land area, or 1.76 acres. The land as reported is based on the public records as reported in the Miami Dade County's Property Appraiser's Office. It is suspected to be the same if not similarly to that "Lease Area" Page 118 noted and described in an almost illegible sketch of boundary survey provided as an exhibit in the Lease Agreement with the U.S. Sailing Center, Inc. and dated September 22nd, 1997. Sketch of Building Improvements First Floor Second Ftoor 22.3' .7' Bath Patio Bath 2.8 ato Off; c Office 28.7' 22,3' Page119 Calculations of Building improvements a la mode Sketch st Floor Total 1423.5: -3.6 x 23.7 Thncrete Pao Total Area 95 _9 5 95 .7..ancre.te Pato Total Area :---- 95 x 5 o5 Ploor Total Area = 1357.59 TQx2S9 1, 17 25,2 st Roof To'',31- Area 35769 /232.3 43 0.01 25.2 Pat Total Area = 1169,36 64.4 1103,85 1,12 -. Hoof Total Area = 1168,25 2.8 condF;xTot x 1423,52 64.4 110185 1423.52 Page 1 20 ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER HIGHEST AND BEST USE ANALYSIS Four criteria are examined in order to determine the highest and best use of the subject property. The criteria and their applicability to the subject, both "as vacant" and "as improved" are as follows: Physically Possible: the size, shape and topography affect the uses to which land may be developed. The utility of a parcel is dependent on its frontage and depth. Sites with irregular shapes may be more expensive to develop, and topography or subsoil conditions may make utilization too costly or restrictive. Highest and best use as improved also depends on physical characteristics such as condition and utility. Legally Permissible: a legally permissible use is determined primarily by current zoning regulations. However, other considerations such as long-term leases, deed restrictions, and environmental regulations may preclude some possible highest and best use. Financially Feasible: the use of the property is analyzed to make a determination as to the likelihood that the property is capable of producing a return which is greater than the combined income needed to satisfy operation expenses, debt service, and capital amortization. Any use that is expected to produce a positive return is classified as financially feasible. Maximally Productive: the use that provides the highest rate of return among financially feasible uses is the highest and best use. The use of the land must yield a profitable net return, and the quantity of land devoted to any specific use must be limited to that quantity which will yield a maximum return to each owner. The assignment consisted of addressing the existing uses to estimate market rent. There was no attempt to establish the highest and best use of the subject property based on such an extraordinary assumptions as would, for instances, contemplate the possibility of a zoning change allowing higher intensity and density development. It can be said that the highest and best of the property as of the date of inspection, based primarily on its current zoning - with the open space intent of its zoning class - was for some low density use that would be compatible with the existing sailing center building in the upland. Inherent in this conclusion is the greater good that is offered to the community at large by open spaces made available by governmental efforts. This type of operation — not -for -profit water oriented center and related uses - renders an invaluable service to the community at large. AS VACANT and AS IMPROVED: Civic Space/Parks/Open Space — Marina Operations (Maximize Services) Page 121 SALES COMPARISON APPROACH TO VALUE The Sales Comparison Approach draws heavily upon the principle of substitution. In essence, this principle states that a prudent purchaser will pay no more for any particular property than it would cost him to acquire an equally desirable alternate property. This approach consists of the comparison of similar property, which has recently sold or is currently being offered for sale. This comparison process involves making adjustments between the subject property and the comparable properties on an item -by -item basis. The factors considered in the comparison include date of sale, conditions of the sale (including financial terms), and physical characteristics. The subject property is the standard, and the adjustments are made to the sale price of the comparable property in order to arrive at an indication of value for the subject. The weakness of this approach includes the fact that there may be inadequate data in the marketplace to justify its use, the fact that it is based upon historical data rather than future expectations, and the fact that the conditions of comparability may not closely conform to the subject property. Its strength lies in the fact that it reflects actual market behavior of typical purchasers under current market conditions. In short, the reliability of this approach depends upon the comparability of the comparable properties, verification of sales data, the conditions under which the property is sold, and the date of the sale. This approach is applicable to both vacant and improved properties. The Miami Dade, Broward and Palm Beach Counties Deed Records were searched for recent comparable sales. In addition, real estate brokers were consulted for information on properties that would be in competition with the subject if it were offered for sale on the open market. The appraisal assignment is to estimate market rent pursuant to the current and existing uses present in the U.S. Sailing Center operation. The U.S. Sailing Center is classified to be a marina operation, given the context within which the current and existing uses are present within the demised premises. Its operation includes components like marine storage, related services, and special events. As stated earlier, this categorization of the U.S. Sailing Center operation as a marina — notwithstanding its not - for -profit standing - is critical to the solution of the appraisal problem. It defines the subject product - type and further defines the market to which the subject product -type belongs. The subject property and its market are defined by its use — utility — and to a lesser degree also by geography, given its characteristic waterfront exposure. There were no sales of not -for -profit marina operations to report. However there was one important transaction of multiple marina operations in South Florida that provides some insight in helping estimate the market rent for the subject property. Please refer to the following schedules. Page ( 22 Suntex Marina Investors LLC (Suntex), the premier owner and operator of best -in -class marina properties acquired the Loggerhead Marina portfolio. It is reported that Suntex paid $75 million for the six marinas in acquired in Palm Beach and Broward counties. The two acquisitions in Miami Dade were respectively for $4,300,000 in Aventura and $15,000,000 for Black Point Marina, which is a leased fee estate. The transaction is reported to have occurred as of April 1, 2017 pursuant to the recordation documents for some of the transactions already recorded. The total price was reported to be $131 million and included three other marinas located in Indian River, Volusia and Pinellas counties respectively. The acquisitions of all of these marina operations were based on a business consideration for each property and thus the amount allocated for each transaction was based on an estimate of the business value in addition to the real estate. We are not suggesting that the sales of these marinas are comparable to the subject property nor can they be considered indicators of market value for the subject property. All of these marinas are for profit and in that sense are different that the subject property, although most of the ongoing activities reflect those currently present and in existence in the subject. There is however some very interesting factors to consider. The sale prices per storage slip ranges between $28,267 and $86,000, with an average of $51,000 per slip. Seven of the marina operations report an OER between 34% and 48%, with an average of 42%, which illustrates the labor intensive, business nature of the operations. The overall rates (OAR) derived for eight reported sales range from 7.05% to 8.47% with an average of 7.34%. These figures are considered fairly uniform and represent true consideration for each of the transactions. Schedule of Marina Sales Suntex 4/1/2017 Address County Folio Wet Slips Dry Slips Land OER SP SP/Slip SP/Acr OAR 1 3601 NE 207 Street Miami Dade 28-1235-035-0040 100 0 16.71 18.88% $4,300,000 $43,000 $257,331 7.09% 2 1400 Marina Drive Broward 5142-23-15-0380 190 0 9.00 40.41% $14,970,000 $78,789 $1,663,333 7.28% 3 3238 Casseekey island Road Palm Beach 00-43-41-07-01-005-0010 (M) 0 352 5.30 47.92% $9,950,000 $28,267 $1,877,358 7.20% 4 870N. Dixie Hwy Palen Beach 40-43-44-34-00-003-0080 0 350 5.50 43.98% $12,800,000 $36,571 52,327,273 7.21% 5 2700 Donald Ross Road Palm Beach 130 0 11.80 43.72% $8,310,000 $63,923 $704,237 8.47% 6 2620 Lake Shore Drive Palm Beach 56-43-42-28-67-001-0010(M) 0 300 6.10 34.04% $25,800,000 $86,000 $4,229,508 7.18% 7 401 Moorings Drive Palm Beach 40-43-44-34-35-013-0000 80 0 1.20 44.69% $3,200,000 $40,000 $2,666,667 7.28% 8 24775 SW 87 Avenue Miami Dade 30-6022-000-0030 196 300 41.46 40.67% $15,000,000 $30,242 $361,795 7.05% Page j 23 items More significantly, three of the transactions involve land leases, not unlike the subject property; particularly Sale 8 which is a marina site owned by Miami Dade County. These operations are considered leasehold estates subject to underlying rental agreements. The following table reports these three operations and notes the yearly payment made to Land Lease, pursuant to individual line within detailed operating expenses for each of the marinas and known to the undersigned. As can be seen, the percentage of rent payments versus gross profits (sales — adjustments) ranges from 4.83% to 8.52%, with an average of 6.98% and midpoint (median) of 7.6%. As can be noted, the third operation is reported twice. For one (3a) it is reported from the operator's standpoint where rent payments are made to the landlord for the operation of the marina related permitted uses; it is understood strictly as a reflection of the minimum rent requirements for the permitted uses allowed and does not entertain revenues due to sub -leasing operations where ultimately payments to the landlord are pass-throughs. The second (3b) reports both the percentages due from the marine related operations as previously noted but also other uses permitted such as from the restaurant, and it is reflective of the landlord's perspective. Based on the data summarized above and illustrated in the table below, it would not be unreasonable to conclude that marina operations which include uses and activities presently found in the subject property should pay between 7,5% to 8,5% of their gross volume, less permitted adjustments (gross sales receipts or profits), as a return to the landlord. Schedule of Marina Land Payments / Leasehold No. Address County Name Gross Sales COG Sold Gross Profits Lease Pymnt % LPymnt/Profits 1 3601 NE 207 Street Miami Dade Loggerhear Marina Ave ntura $376,744 $1,096 $375,648 $28,531 7.60% 2 401 Moorings Drive Palm Beach Loggerhear Marina South Lantana $423,149 $1,875 $421,274 $20,366 4.83% 3a 24775 SW 87 Avenue Miami Dade Black Point Marina $2,339,519 $557,775 $1,781,744 $151,779 8.52% 3b 24775 SW 87 Avenue Miami Dade Black Point Marina & Ocean Grill $6,634,665 $0 $6,634,665 $493,776 7.44% Page 124 INCOME APPROACH TO VALUE The Income Approach to value presumes that no prudent buyer will pay more for the right to receive the future income stream for the subject property than an amount for which he can obtain the rights to a substitute future income stream, assuming similar quality, quantity, and durability of the income streams. The quality of the future benefits affects investment risk and the buyer's ability to receive a return on his initial investment, as well as, a return of his investment. The quantity of the future benefits reflects the amount of the future income stream plus potential appreciation or depreciation over the buyer's term of ownership. Durability relates to the amount of time that an investment will continue to provide positive benefits of ownership adequate to meet the investor's criteria. There are two accepted forms of the Income Approach, which can be employed for a project similar to the subject property. These methods are the Direct Capitalization and Discounted Cash Flow Analysis. The Direct Capitalization Technique is often used when a property is currently operating at or near a stabilized occupancy level or when a property is projected to have a relatively level income stream. Alternatively, a Discounted Cash Flow Analysis is used when multiple tenants are in -place and/or the income stream will vary throughout the holding period. The income approach incorporates the components an investor would consider when making a purchase price decision. In order to complete the income approach to value, the following components are required: • Income — contract rents and market rental rates • Vacancy and collection loss estimate • Projected operating expenses • Capitalization or Yield rates Ideally, data is derived from the market for each component and, when available, the operating history of the property — rents and expenses - is also analyzed. In the case of the subject, within this application, we have focused on income; contract rents and market rental rates. The assignment consisted of addressing the existing uses in order to establish market rent. The U.S. Sailing Center is broadly classified as a marina operation. Its operation includes components like marine storage, related services and special events. As stated earlier, this categorization of the U.S. Sailing Center operation as a marina — notwithstanding its not -for -profit standing - is critical to the solution of the appraisal problem. It defines the subject product -type and further defines the market to which the subject product -type belongs. The subject property and its market are defined by its use — utility — and to a lesser degree also by geography, given its characteristic waterfront exposure. Page 125 Analysis of Contract Rent — Subject Tenancy - Contract Rent Arrangement and Actual Rents We have reviewed the U.S. Sailing Center Inc. Lease Agreement dated September 22, 1997 for an initial term of 15 years, with one 5 year option expiring on September 30, 2017, In consideration for the uses permitted under the referenced lease arrangement, the U.S. Sailing Center, pays the City of Miami an initial minimum monthly rent payment of $540; the "Monthly Rent". In addition, the U.S. Sailing Center is to pay the City of Miami 10% of the "Gross Revenues" in excess of $80,000. Gross Revenues are defined in the lease agreement to mean: "...all revenue of nay nature derived by the Lessee, its licensees or concessionaires, directly from business conducted upon or from the Property, including, but not limited to, revenues derived from payment of boat storage, hoist fees, sale of Olympic and sailing merchandise and business made or performed by means of mechanical or other vending devices on the Property, advertising conducted on the Property, the naming of all or any portion of the Property or the Improvements and any parking revenue, whether such business shall be credit or cash sales or otherwise, whether the foregoing be collected or uncollected and shall include any finance charges or similar payments received by Lessee as a result of any of the forgoing. Gross Revenues shall not include (i) refunds actually paid to customers, provided the revenue was originally included in the Gross Revenues, (ii) the amount of any sales, use or gross receipts tax imposed by any federal, state or governmental authority directly on sale and collected from customers, provided that the amount is added to the selling price therein and paid by Lessee to such governmental authority, (iii) any revenue received from the naming of all or any portion of the Improvements if such revenues have been paid, received and utilized as a Capital Investment in the Property and/or the Improvements and (iv) regatta fees." The U.S. Sailing Center provided historic gross revenue information for the last three fiscal years, commencing in October and ending in September 30th of the ensuing year. We have been provided for our review the annual receipts for each year per line item, reflecting the volume of sales for each, The line items for which revenues are reported are those uses allowed and permitted within the demised premises, based on the terms of the lease agreement and subsequent modifications. A compilation of the payment made to the City of Miami is reported in the following table. Accordingly, the U.S. Sailing Center has paid the lessor — City of Miami — minimum rent ending in September 30th in the amount of $11,810 for the year 2014, $12,086 for the year 2015, $12,246 for the year 2016 and $12,274 for the year 2017. In addition, the U.S. Sailing Center has paid the lessor based on 10%© of the gross revenues after reaching, or in excess of, the $60,000 threshold, $11,859, $14,089 and $14,770, respectively for the years ending in September 2014 through 2016. In total the City of Miami, using the reports presented by the U.S. Sailing Center, has received rents for the permitted use of the subject property in the amount of $23,669, $26,175 and $27,044, respectively, for the years ending on September 30th 2014 through 2016. Page 126 Compilation of Contract Rent Payments Reported to City of Miami versus Revenues. Income Statements Summarized Summarized Summarized Income Stream 9/30/2017 9/30/2016 9/30/2015 9/30/2014 Income Subject to % Rent Boat Storage Fees $179,030 $163,800 $155.707 Program Fees $34.675 $33,000 $32,918 Boat Rental $4,775 $5,750 $3,500 Soda Sales $224 $475 $290 Miscellaneous $8,991 $17,866 $6,177 Sub -total (a) Gross Sales $227,695 $220,890 $198,593 Threshold -$80,000 -$80,000 -$80,000 Sales Subject to Rent Gross Profits $147,695 $140,890 $118,593 Applicable % 10% 10% 10% Rent Payments - Overage $14,770. $14,089 $11,859 Effect % Rent Payments 6.49%i 6.38% 5.97% Receipts Not Subject to % Rent Donations $12,200 $119,800 $14,506 Dividend & Interests $391 $147 $0 Sub -total $12,591 $119,947 $14,506 Sales s Subject to Rent $0 $0 $0 Payments from Mon hly Reports Monthly Minimum Rent Pymnts $1,022.84 $1,020.50 $1,007.14 $984 Minimum Rent Payments $12,274 $12,246 $12,086 $11,810 Rent Payment to City Total Rent Payments $27,016 $26,175 $23,669 Effect % of Total Rents / Gross Sales 11.86% 11.85% 11.92% Effect % of Total Rents / Gross Profits 18.29% 18.58% 19.96% The first point to note is that the U.S. Sailing Center pays the city reportedly on the basis of 10% of the gross revenues - as defined - applied only to the excess set by a prescribed threshold of $80,000 per year; in other words the overage applies only to that figure (gross profits) which results after deducting the $80,000 threshold. The true effective overage percentage rates for the years 2014 through 2016 were 5.97%, 6.38% and 6.49% respectively. For instance, for the year ending in September 30t ' 2016 - the most recent year reported - from the total gross revenues of $227,695 (gross sales), the lessor received $14,770, or 6.49%. Details of Calculations: $14,170 ÷ $227,695 = 6.49% A second, significant point is that overage percentage rates are applicable to gross revenues, as currently defined, which permits the following uses of the demised premises: Pagel 27 Boat storage I Hoist fees Sale of Olympic / sailing merchandise Sale from mechanical or vending devices Advertising Naming rights Parking As such, the gross revenues are all encompassing in terms of paying a percentage of the total of said revenues to the landlord — City of Miami — while limited only in the uses as noted above and of course subject to a threshold of $80,000 per year in sales, becoming gross profits. In other words the point is that there are no uses excluded from revenues emanating from the current permitted uses for the landlord not to receive a percentage of the sales volume. A third and final point is that when combining the minimum monthly payments plus the overage on the gross revenues, the U.S. Sailing Center paid landlord about $2,250 per month for the last full year reported which ended on September 30th 2016. The payments have increased every year due to the CPI adjustments to the minimum rent and also because the gross revenues have also increased per year. More significantly, the U.S. Sailing Center has paid the landlord, nearly 12% of the gross revenues as defined - nearly 12% of the total gross revenues from all of the permitted uses and revenues streams allowed in the leased premises. Moreover given the $80,000 threshold, the U.S. Sailing Center pays the city about 18% of the total gross profits — gross revenues less threshold. Detaifs of Calculations: $27,016 _ 12 = $2,251. $27,016 $227,695 = 11 86% $27,016 ± $147,695 = 18.29% The table presented in the previous page illustrates the rent payments by the U.S. Sailing Center to the City, and discussed herein. Analysis of Market Rent Market rent is defined by The Dictionary of Real Estate Appraisal, 4th Edition published by the Appraisal Institute as; The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the specified tease agreement including term, rental adjustment and revaluation, permitted uses, use restrictions, and expense obligations; the lessee and lessor each acting prudently and knowledgeably, and assuming consummation of a lease contract as of a specified date and the passing of the leasehold from lessor to lessee under conditions whereby: Page 28 1. Lessee and lessor are typically motivated. 2. Both parties are well informed or well advised, and acting in what they consider their best interests. 3. A reasonable time is allowed for exposure in the open market. 4. The rent payment is made in terms of cash in United States dollars, and is expressed as an amount per time period consistent with the payment schedule of the lease contract. 5. The rental amount represents the normal consideration for the property leased unaffected by special fees or concessions granted by anyone associated with the transaction. It has been suggested throughout this report that the uses permitted within the subject property by the City of Miami, through contractual agreements, is part of a limited market; within which the subject property can be said to belong and compete. This characterization is critical to the solution of the appraisal problem. It focuses on utility - uses. It defines the subject product -type. As a result, this categorization further defines the market to which the subject product -type belongs. The subject market is not defined by geography as much as it is defined by utility - use. A survey of market rentals was conducted primarily of club house uses whenever possible, marine related or water frontage operations, public or private, not -for -profit and for -profit in some cases, depending on the particular revenue (income) stream desired to be measured. The following are the most relevant comparable rental information identified in our research. Each comparable reported is primarily used to reflect market data on at least one of the uses permitted by contractual agreement in the subject property. As such, we have focused on comparables that offer the following revenue producing activities: (1) initiation fees and annual membership fees, (2) wet/dry storage and mooring, and (3) food, beverage and liquor sales. Page 29 RENTAL COMPARABLES Rental 1 Property Name - Red Fish Grill / Hammock Marina Location Data Location: 9610 Old Cutler Road, Coral Gables, FL 33156 County: Miami Dade Folio No: 03-5105-000-0010 Physical Data Property Type: Special Purpose Usable Land Area N/A Rentable Area 3,375 Year Built: 1930s No. of Stories: One Property Condition: Good Lease Data Confidential Lease: No Red Fish Grill Confirmed By: AJA Bait & Tackle Shop Confirmed With: Miami Dade County B & T Gasoline Comments 6% of Receipts 6% of Receipts $0.05 / Gln Period -12 Months 9/30/2016 9/30/2015 9/30/2014 9/30/2013 Red Fish Grill Restaurant $2,018,216.21 $2,243,088.88 $2,137,086.45 $1,940,597,64 Less Adjustments $51,536.53 $55.475.91 $60,613.70 $51,179.31 Total Gross Receipts $1,966,679.68 $2,187,612.97 $2,076,472.75 51,889,418.33 Lease Percentage (%) 6.00% 6.00% 6 00% 6.00% Rent to Miam Dade County $118,000.78 S131,256.78 $124,588.37 $113,365.10 Bait & Tackle Shop $85,450.68 590,000.68 $88,054.28 $79,373.54 Less Adjustments $18,560.47 $20.365.28 $29,477.14 $28,979.48 Total Gross Receipts $66,890.21 $69,635 40 $58,577.14 $50,394.06 Lease Percentage (%) 6.00% 6.00% 6.00% 6.00% Rent to Miami Dade County $4,013.41 $4,178.12 $3,514.63 $3,023.64 Bait & Tackle Fuel / Gal. 269078.6 258434.6 251397.3 222474,6 Less Adjustments 11310.8 11476.9 10964.7 8572 83 Total Gallons 257767.8 246957 7 240432.6 213901.77 per Gallos $0.05 $0.05 50.05 $0.05 Rent to Miami Dade County $12,888.39 $12,347.89 $12,021.63 $10,695.09 Total Rent to Miami Dade $134,903 $147,783 $140,125 $127,084 Total Gross Receipts $2,033,570 $2,257,248 $2,135,050 $1,939,812 Rate / Total GR 6.63% 6.55% 6.56% 6,55% Page 1 30 Rental 2 Property Name - Coconut Grove Sailing Club Location Data Location: County: Folio No: Physical Data 2990 South Bayshore Drive, Miami, FL 33133 Miami Dade 01-4121-040-0012 Property Type: Usable Land Area Rentable Area Year Built: No. of Stories: Property Condition: Lease Data Special Purpose 19.55 Acres 9,610 GBA 1981 Two Good Confidential Lease: Confirmed By: Confirmed With: Comments No AJA City of Miami Membership Dues Mooring/Boat Storage Bar Kitchen Facility Operations (FOM) Committees $348,397 $532.5891 $372,440 $321.460 $362,997 $111.747 Income Year / Period Revenue Streams 2013/2014 2014/2015 2015/2016 2016/2017 Dues $244,180 $265,152 $371,346 $348,397 Facility Operations & Maintenance (FOM) $236,956 $257,362 $354,607 $362,997 Moorings & Boat Starage $491,683 $504,258 $552,394 $532,589 Bar $313,725 $336,574 $374,347 $372,440 Kitchen $250,581 $284,937 $315,490 $321,460 Gift Shop $4,961 $6,881 $4,187 $6,169 Committees $129,849 $120,707 $92,302 $111,747 Gross Revenues - Totals $1,671,935 $1,775,871 $2,064,673 $2,055,799 Nominal % of Gross Revenues © 10% $167,194 $177,587 $206,467 $205,580 Minimum Rent - Less than % $75,324 $77,584 $79,911 $82,309 Reported Rent Paid to City $182,935 $204,094 $289,889 $181,407 Effective Rate 10.94% 11.49% 14.04% 8.82% Data derived from CGSC Revenue Table - Payments based on greater of minimum or percentage rent. Page131 Rental 3 Property Name - Miami Yacht Club Location Data Location: County: Folio No: Physical Data 1001 MacArthur Cswy, Miami, FL 33132 Miami Dade Property Type: Usable Land Area Rentable Area Year Built: No. of Stories: Property Condition: Lease Data Special Purpose 2.7 Acres 7,713 ASF 1947 Two Averag e Confidential Lease: Confirmed By: Confirmed With: Comments No AJA City of Miami Membership Dues Wet/Dry Boat Storage Restaurant & Beverages Meeting Room Rentals $2800 & $1200 $13 & $8/mnth/Ft. $491,944 $10,486 Income Year / Period Income Stream 3/31/2017 Membership $220,183 Initiation Fees $26,815 Restaurant & beverages $491,944 Rental Income - Dry Slips $111,675 Rental Income - Wet Slips $160,347 Rental Transient $8,576 Mettsng Room Rentals $10,486 Parking Fees $7,509 Ship Store Merchandise $341 Sub -total - Gross Sales $1 037.876 Payments from Percentage Monthly Tabluations per Reports $1,037.876 Threshold Allowance S380.000 Gross Profits $657.876 Overage Perctange 9.00 Overage Payment $59.209 Effective Rate 5.70% Payments fi0tri Monthly Reports % ©ni Restaurant Overage Payment $59,209 Effective Rate 5.7014 Minimun Rent Payments Annualized 548.5115 Payments tom Monthly Reports % * Minimum Rent Payments Total Rent Payments S107,713 Effect % Total Rents/ Gross Sales 10.38% Effect % Total Rents/ Gross Profits 16.37% Figures derived from Financial Statements / Statement of Activities Page 132 Rental 4 Property Name - Miami Outboard Club Location Data Location: County: Folio No: Physical Data 1099 MacArthur Cswy, Miami, FL 33132 Miami Dade 01-3231000-0013 Property Type: Dry Land Area Submerged Land Rentable Area Year Built: No. of Stones: Property Condition: Lease Data Special Purpose 2.88 Acres 2.93 Acres 9,347 ASF 1958 One Average Confidential Lease: Confirmed By: Confirmed With: Comments No AJA City of Miami Membership Dues Wet/Dry Boat Storage Kitchen & Non -alcohol Bar Parties & Events $2500 & $900 $9 & $4.5/mnth/Ft. $339,433 $237,763 $99,330 Income Income Stream Monthly Rpts Financial Statements Financial Statements Financial Statements Year( Period 3131/2017 3/31/2016 3/31/2015 3/31/2014 Membership $416,552 $492,222 $446,075 Restaurant (Gross Revenues) $398,022 $339,433 $318,571 5348,625 Bar $237,763 $228,244 5260,028 Rental Income $361,202 $383,075 $391,047 Parties & Events $99,330 599,935 $107,254 Sub -total - Gross Sales $1,454.280 $1,522.047 $1.553,029 Credits Comm Sery $47,693 $47,693 546,945 Contributions $106,008 $81,597 564,015 Threshold Allowance S120,000 .5120,000 $120.000 Sub -total $273,701 5249,290 $230,960 Gross Profits 51.180.579 $1,272,757 $1,322,069 Payments from Monthly Reports % Only Restaurant Overage Payment $27,802 $26,128 $23,035 N/A Effective Rate 6.99% 7.70% 7.23 % NIA Minimun Rent Payments Annualized $57,1347 $57,847 Payments from Monthly Reports % + in mum Rent Payments Total Rent Payments I $84,919 $83,9751 $80,882 N/A Effect % Total Rents / Gross Sales 5.77%. 5.31% Effect % Total Rents / Gross Profits 7.11%I 6.35% NIA Page 133 Rental 5 Property Name - Black Point Marina Location Data Location: 24775 SW 87 Avenue, Miami, FL 33032 County: Miami Dade Folio No: 30-6022-000-0030 Physical Data Property Type: Marina Dry/Submerged 41,46 Acres Rentable Area 64,296 ASF Year Built: 1990 No. of Stories: One Property Condition: Average Lease Data Confidential Lease: No Dry Storage Confirmed By: AJA Restaurant Sales Confirmed With: Miami Dade County B & T Gasoline Comments $1,537,897 $4,996,010 $0.05 / Gin 1 Income Year; Period Revenue Streams 9/30/2014 9/30/2015 9/30/2016 Boat Storage Revenue $1,374,501 $1,471,678 $1,537,897 Restaurant Sales $4,204,186 $4,761,458 $4,996,010 Office/Ship Store Revenue $100,758 Total Gross Receipts $5.578,687 $6,233,136 $6,634,665 Nominal % of Gross Receipts © 5% $278,934 $311,657 $331,733 Gasoline Sales Gallons 152,975.969 172,991.764 177,230.262 Diesl Sales Gallons 22,985.285 19,315.110 27,852.836 Total Fuel Sales in Gallons 175,961.254 192,306.874 205,083.098 per Gallons $0.05 $0.05 $0.05 Fuel Sales Payment $8,798 $9,615 $10,254 Minimum Rent Paid $140,141 $143,635 $151,779 Total Payment to Miami Dade $427,873 $464,907 $493,766 Effec Rate / Total Paymets 7.67% 7.46% 7.44% Figures reported based on financial statements. Rent is based on minimum guarantee plus percentage rent. Page34 Market Derived Rental Data Discussions First and foremost, we have focused on market evidence (comparable rental data) from those activities typically permitted through lease/license agreements in similar operations like those found in the subject property (not -for -profit leasing public land). Namely these are (1), boat storage (wet/dry storage or mooring), (2) Food and Beverage (food, beverage and liquor sales), and (3) membership fees (initiation fees and annual fees). There are other income generating activities found in similar and comparable operations such as special events (events, parties, meeting room rentals), and special merchandising (ship stores), but these are less significant in overall sales volumes than those three noted above. Again, use was the principal, overall consideration in selecting the rental comparables that would provide indications of market rent for the subject property. Typical leasing terms, for these types of operations, were generally defined by a minimum rent amount or a percentage of gross sales, whichever is greater. Or conversely a minimum rent amount payable on a monthly basis, plus a percentage of the sales volume of specific permitted uses; significantly in most instances a high percentage rate but subject to also a high sales threshold — a base or breakeven point. In other words, the rents for these types of not -for -profit operations are based on an established minimum rent amount which can be superseded — and generally is by an amount that results from a percentage of the volume of sales (gross revenues) emanating from the permitted uses. Or a minimum rent figure plus an amount which results from a high percentage of specific permitted uses after reaching a high dollar threshold. In any case to the owner of record, the landlord — whether the payments are a minimum rent or percentage of sale whichever is greater or a minimum rent plus percentage of sales for permitted uses — these payments establish rent levels or parameters on a triple net basis, since all operating expenses are the sole responsibility of the tenant. It is to be noted that the minimum rent can be as much as of the overage rent, and in other instances a fraction, resulting from percentages of actual sales volumes, irrespective of whether the application is affected when the volume of sales is greater than the minimum or plus the minimum. Also to be noted is the fact that any improvements are generally the sole responsibility of the lessee/licensee including development, major maintenance and repair items, as well as operational maintenance - such as utilities and minor maintenance and repairs, and also insurance. In the case of the subject property, the demised premises, it does not include real estate taxes. Secondly, we have also studied other operations, including for -profit enterprises in public owned land through license/contractual agreements. The focus on these two types of operations again was use. At least one use found in these operations was comparable to those permitted in the subject property. Leasing arrangements of for -profit operations using public owned lands also, and similarly, function under minimum rent requirements or percentages of gross sales, whichever is greater or again minimum rent plus percentage of gross sales. Page 135 The following tables incorporate the comparable rent information obtained from our research of the market, to which the subject property and its operation belong as defined in this report. Each of the major revenue (income) streams is reported in an individual table for easy comparison. It is to be noted that the under the current lease terms, the subject property's operator — tenant — is paying the City of Miami - landlord — rent on the basis of percentages for all of the currently permitted uses within the demised premises. The U.S. Sailing Center pays percentage rents from the gross revenues of the boat storage, boat rental, soda sales and miscellaneous fees (sales) in what appears to be - based on the comparabies - a somewhat typical arrangement; namely 10% of the gross revenues in excess of $80,000. In practical terms, gross revenues as defined in the lease agreement result in overage payments, as noted above, which are tantamount to paying an effective rate from sales of 5.97%, 6.38% and 6.49% respectively for years ending on September 30th for 2014, 2015, and 2016. So the nominal rate for the allowed uses in the demised premises is 10% but the effective is reduced to 6%. Revenue (income) streams are reported because they emanate from the market and set market standards. As a result they provide guidance as to the manner of operation that ought to occur in the subject property; market standards. Storage Fees (Dry Fees) Table 1 Name US Sailing Club Coconut Grove Salting Miami Yacht Ciub Miami Outboard Club Pelican Habour Dinner Key Marina Miami Beach Marina Monthly Wet N-A N/A S13rrnnth%Fl 59Imr4h/Ft $449.40 5609.90 S32-mnlhlFt-28 tt Specifics N,A N!A MA hli'A S9-15rrnnth/Ft $19;mnthVFt S33/mntlrf t-35ft Monthly Dry 54.58-10.83h01 Ft $501-57-27101mnth,Ft $8-12.58,`mnthiFl 54.5imnth;Ft N,A N!A N/A Moorings NA $70+59Imnth'Ft NIA NIA NIA N'A WA Sales Volume $179,030 Combined with Wet $111,675 NIA NiA N;A N/A. The U.S. Sailing Center rates for dry storage have been compared with similar operations, public marinas operated by local governmental entities or marinas open to the public operated for -profit on public lands. For dry storage the U.S- Sailing Center rates are $4.58 to $10.83 per linear foot per month. The Miami Outboard Club rents dry storage from $4.50 per linear foot per month. The Miami Yacht Club rents dry storage spaces from $8 to $12.56 per linear foot per month. And the Coconut Grove Sailing Club rents dry storage from $7 to 27.10 per linear feet per month plus an additional $50. Summary of Findings The rates charged for dry boat storage by the U.S. Sailing Center are within market norms, above those charged in the Miami Outboard Club and below those charged at the Coconut Grove Sailing Club. The U.S. Sailing Center has current charges for dry slips (storage) of $4.58 to as high as month per linear feet; the actual monthly fees of course depend on the size of the boats. no wet slips currently permitted in the subject property — which is likely not physically The dry storage charges by the U.S. Sailing Center for boat storage are towards the norm Since evidently this is the one income stream which appears to be currently the most for the U.S. Sailing Center, it should focus on this income stream. Page 136 $10.83 per There are possible. for the markets. profitable Food and Beverage Revenues According to the permitted uses within the demised premises pursuant to the lease agreement dated September 22, 1997, only the sale of foodstuff "...made or performed by means of mechanical or other vending devices..." is currently allowed. Most marina operations be it for -profit on public land or even not -for -profit have restaurant (kitchen & bar) facilities and provide, in some instances members only and in others to the general public, food and beverage. This is one of the most lucrative income streams available in marinas or marine related operations. This can be easily detected through the table presented immediately below, where the volume of sales for food and beverage is noted for both for -profit enterprises undertaken in public lands as well as not -for -profit endeavors in public lands. Table 2 Name Red Fish Grill Black Point CGSC MYC MOC Period 9/30/2016 9/3012016 2016/2017 3131/2017 3/1512016 Source Financial Stmnts Financial Stmnts Revenue Tables Financial Stmnts Financial Stmnts Restaurant $4,996,010 $372,440 $491,944 $339,433 Bar -Pic $321,460 $237,763 Events $111,747 $10,486 $99,330 Totals (a) $1,966,680 $4,996,010 $805,647 $502,430 $676,526 Food and beverage operations have been compared with other similar operations in waterfront, not - for profit clubs on public lands; the Coconut Grove Sailing Club, the Miami Yacht Club, and the Miami Outboard Club, and. Also we have compared food and beverage operations with the restaurant operations of for -profit entity on public lands; The Red Fish Grill (Hammock Marine Corp) and The Black Point Ocean Grill (Black Point Marina). The food and beverage sales volume generated by the Coconut Grove Sailing Club, the Miami Yacht Club, and the Miami Outboard Club has been compared with each other. The volume of sales for this line item for not -for -profit operations ranges between $502,430 and $805,647 annually, reasonably close to one another. The volume of sales in food and beverage for a for -profit operation is illustrated to be three to six times above what was reported for any of the three not -for -profit operations. The annual volume of sales generated and reported for the Black Point Ocean Grill established the upper end of the range at $4,996,010 followed by the Red Fish Grill with $1,966,680, for the year ending September 30, 2016. Still this line item is noted as an activity that would yield significant sales volume on behalf of the not -for -profit operation and likewise for the owner of record, the landlord — City of Miami. This statement can be qualified by saying that such sales volumes depends on the physical facilities available. Summary of Findings This income stream is considered to be among the most lucrative as evidenced by its predominant presence in such operations; marinas. The U.S. Sailing Center would be the beneficiary along with the landlord which would be entitled to receive portions of the proceeds in the form of a percentage of Page 137 the gross volume of sales. It would also allow for increased utilization of the improvements which as of the time of inspection appear to be somewhat underutilized with multiple rooms for meeting rooms and storage spaces that could be used for other purposes to the benefit of the sailing public as well as the public at large. Membership Fees The referenced lease agreement dated September 22, 1997, appears silent as to the U.S. Sailing Center having the right or allowed permission to charge membership fees in some form or another from the regular users of the facility. This appears to the purposeful intent on the part of the Center which would prefer to distinguish their operations from membership driven dubs. They want to be recognized as open to the public on a first come first serve basis. It may also have to do with the sponsoring national institutions such as the United State Olympic Committee (USOC) which is interested in the Center provide a home for the Olympic sailing team and in doing so must adhere to terms espoused by the national governing body for the sport of sailing. Notwithstanding, it appears that most not -for -profit marina operations on public land engage in assessing membership fees that usually consist of an initial, one time initiation fee followed by annual membership fees. This is another lucrative income stream available in not -for -profit marinas or marine related operations in use of public lands. This can be easily detected through the table presented immediately below, not only the initiation fees are reported but also annual membership fees, along with the volume of sales resulting from the annual collection of said line item. Table 3 Name Miami Outboard Club Miami Yacht Club Cocnut Grove Sailing Club Coral Reef Yacch Club" Key Biscayne Yacht Club" Initiation Fee $2,500 $1,400-$2,800 $600 S10,000 $15,000 Annual Membership $960 $1.200 $350 $2.375 $1,700 Sales Volumes $416,552 $246,998 $348.397 Unavailable Unavailable Summary of Findings This is an income stream that appears lucrative as evidenced by its predominant presence in not -for - profit marine related operations; marinas. The U.S. Sailing Center would be the beneficiary along with the landlord which would be entitled to receive portions of the proceeds in the form of a percentage of the gross receipts. Summary and Conclusions The question then becomes what is the market rent for the subject property given its permitted uses and existing improvements? While it is recognized that the subject property has an attractive, waterfront location in Biscayne Bay, it operates as a not -for -profit; rendering an invaluable service to the community at large. As a not -for -profit it is able to generate a total of gross sales volume from its Page 138 various permitted uses and activities, limited only by those same uses and the physical characteristics of the demised premises; the current uses and existing improvements. Generally a minimum rent guarantee is required from these operations. Concurrently and usually, a percentage of the gross sales volume from the different authorized and permitted uses, in the form of overage rent, is paid to the landlord. Which overage rents are payable if and when it exceeds minimum rents demanded by contract. Or conversely overage rents are paid in addition to a minimum rent guarantee, which could be a fraction of the minimum rent or as much as, if not exceed, the minimum rent. More specifically then the question is how does the existing improvements and the permitted uses compare and compete with purveyors of similar operations? We have thus undertaken a comparison not only of typical line items — permitted uses — but also volume of sales of those specifically permitted uses. In addition we have compared the percentage rates — the nominal rates - imbedded in the respectively lease agreements with the effective rate of return for the revenue source, for the total gross sales (the sum of sales of all of the permitted uses) as well as the rate emanating from total gross profits (the sum of the sales of all uses less allowances, breakeven points, thresholds and the like). Comparing the achieved sales per line item or income stream (per each permitted use) of comparable purveyors of similar operations is considered reasonable to determine market rent. We have done accordingly in our analysis above based on each comparable reported and for each revenue stream. Differences in elements of comparison may be expressed as percentage adjustments. Isolated percentage adjustments, if such measurable adjustments can be extracted or derived from differences in elements of comparison between selected comparables, are made through the use of quantitative analysis. Whenever differences in elements of comparison between comparables are unable to be isolated and measured, resulting in a percentage adjustment, qualitative analysis is undertaken. In comparison to the subject, superior characteristics in the comparable rentals are adjusted downward and inferior characteristics are adjusted upward. Various rating graphs have been provided to report the acceptability or inadequacy of the income streams analyzed when compared to market data. The results of these analyzes are summarized in the following tables. Boat Storage — Dry Slips Income Stream Comparables Subject Conclusion Recon-wnendations Dry Slips Rates $4.51mnth/Ft $50+$7-27.10/mnthlFt $4.58-10.83/mnth/Ft Acceptable lnrease Fee Moderately Page j 39 Food and Beverages Revenues Income Stream Food & Beverages Total For -Profit $1,966,680 Not -For -Profit $502,430 $676,526 Subject $224 Conclusion Unacceptable Recommendations Increase Food & Beverages Sales Membership Fees Initiation and Annual Fees Income Stream Private lands Public Lands Subject Conclusion Recommendations Initiation Fee $10,000 $15,000 $600 $2,800 $0 Unacceptable Investigate Feasibility Annual Merripership $1,700 $2,375 $350 $1,200 $0 Unacceptable 1.) The U.S. Sailing Center's storage fees are only for dry slips. We have reported above that the rates are range from $4.58 to $10.83 per linear foot per month. The Miami Outboard Club rents dry storage from $4.50 per linear foot per month, below the rates quoted at the U.S. Sailing Center. The Miami Yacht Club rents dry storage spaces from $8 to $12.56 per linear foot per month, above the rates quoted at the U.S. Sailing Center. And the Coconut Grove Sailing Club rents dry storage from $7 to 27.10 per linear feet per month plus an additional $50, again notably above the rates quoted at the U.S. Sailing Center. In volume of sales, the U.S. Sailing Center generated $179,030 in rental income for its dry storage, which is competitive to the rental income reported by the Miami Yacht Club for the dry storage alone. The U.S. Sailing Center is competitive in volume of sales with a similar operation. Notwithstanding, the U.S. Sailing Center should be encouraged to increase its fees slightly for dry storage, pursuant to market demands, and further increase its capacity to allow for more storage of boats. 2.) In the category of food and beverage the U.S. Sailing Center reported a volume of sales of only $224 for the year, since it is restricted to the sale only of foodstuff "...made or performed by means of mechanical or other vending devices..." It is strongly recommended that the U.S. Sailing Center be allowed to increment and expand its uses and operations in their facilities and within their improvements to allow for the sale of food and beverages. This can be accomplished even with the implementation of a moderate short order food preparation and service facility. Said income stream would be beneficial to both the operator of the demised premises — U.S. Sailing Center — but also to the owner or record or landlord — City of Miami. It may also have the additional benefit of increased utilization of the improvements and demised premises by the public at large. 3.) The modus operandi for the U.S. Sailing Center does not currently contemplate membership fess of any kind. However, initiation and membership fees are part of the sources of revenue for comparably operated non -for -profits entities occupying waterfront public land, and are considered Page 40 reasonable. It is strongly recommended that the U.S. Sailing Center be allowed to investigate the possibility to assessing membership fees for those in regular use of their facilities and improvements. Finally, it is recognized that the U.S. Sailing Center is paying the city in rent on the average of $2,500 per month ($27,016 = 12 = $2,251). This as noted above is the result of the minimum rent guarantee currently in place, after adjustments for CPI per lease arrangements, plus a percentage of the sales volume for the permitted uses. For the year ending September 30, 2016 the minimum rent was $12,246 or $1,021 per month. And the overage rent paid to the City for the same period was reported to be $14,770 or $1,231 on the average per month. While the nominal rate within the lease agreement is 10% of the sales from the permitted uses, given that there is a prescribed threshold of $80,000, the effective rate from the gross sales is 6.49% ($14,770 4- $227,695 = 6.49%). When the minimum rent guarantee is added to the overage payment, the U.S. Sailing Center is paying the city 11.86% of the gross sales and 18.29% of the gross profits. When comparing the U.S. Sailing Center to other similar operations, it is evident that it pays the City as lessor — its landlord - a higher percentage of their revenues than most comparable operations. Please refer to the following table. Table of Comparison of Sales Volumes per Line Item, Effective Rates of Gross & Profit Sales Operation U.S Sailing Club CGSC 2015/2016 CGSC 2016/2017 Black Point Marina Black Point Marina & Grill Red Fish / Hammock Marina Miami Outboard Club Miami Yacht Club Gross Sales $227,695 $2,064,673 32,055,799 $2,339,519 $6,634,685 $2,117,121 $1,454.280 $1,037,876 Gross Profits $147,695 $2,064,673 $2.055,799 $1,781,744 $6.634.685 $2,046,458 $1,180,579 $657,876 Nominal % 10.00% 10.00% 10.00% 5.00% 6.00% 10,00% 9.00% Overage Payment $14,770 $134,903 $26.128 $59.209 Effective Rate 6.49% 6.59% 7.70% 9.00% Minimum Rent Payment $12,246 557.847 $48,505 Total Rent Payments $27,016 $289,889 $181,407 $151,779 $493,766 $134,903 583,975 $107,713 Effect Rate / Gross Sales 11 86% 14.04% 8.82% 6 49% 7.44%0 6.37% 5.77% 10.38% Effect Rate / Gross Profits 18 29% 14.04% 8.82% 8.52% 7.44% 6.59% 7.11% 16.37% The U.S. Sailing Center pays in rent, when combining the minimum rent with the overage rent, 11.86% of gross revenues (sales) and 18.29% of gross profits (gross revenues less adjustments). Only the Miami Yacht Club comes close in terms of its effective rates of gross revenues and gross profits, with 10.38% and 16.37% respectively. However the U.S. Sailing Center pays 25% of the rent paid by the Miami Yacht Club. This is attributed to the fact that the U.S. Sailing Center is only able to generate about 22% of the gross sales and gross profits as the Miami Yacht Club. Details of Calculations. $27,016 - $107,713 = 25% Page I 41 $227,695 = $1,037,876 - 21.9% $147,695 = $657,876 - 22.4%, FINAL MARKET RENT ESTIMATE As such the U.S. Sailing Center current rent levels are considered at market, at $2,250 per month when combining minimum rent and overage rent. The minimum rent could be increased to $2,250 per month from the current minimum rent of $1,022,84 ($12,274 r 12 = $1,022.84). But then the rent structure should change to reflect payments of $2,250 per month in minimum rent or 12%0 of gross revenues (sales) whichever is greater. Or conversely the minimum rent can remain at the same current level, subject to continued annual CPI adjustments, plus percentage rents over sales volumes as currently prescribed, as long as when combined the minimum rent and overage rent reach about $2,250 per month. It would not be reasonable to increase the U.S. Sailing Center's minimum rent to $2,250 plus some percentage of certain revenue streams because then the rents paid would exceed all other market parameters in terms of effective rates of either gross sales or gross profits volume of sales. In order for the rents paid by the U.S. Sailing Center to increase, the uses of the demised premises should be intensified by allowing the Center to increment its gross sales volume beyond the current $227,695 per year. This can only be accomplished by following the above recommendations: increasing slightly the rental rates for dry space and permitting expansion of dry storage, permitting and expanding the food and beverage capacity to allow increases in sales, and permitting the assessment of membership fees. In other words find means for the uses of the demised premises to generate more gross sales, and in doing so increase the rents to the City of Miami as landlord. This conclusion emanates from the historic actual rents reported above under Analysis of Contract Rents - rent payments by the U.S. Sailing Center which were on the average $2,250 per month (year ending September 30, 2016), or $27,000 per year - from the list of currently permitted uses of the subject premises, as well as comparable sales volume levels of typical permitted uses present in competitive operations. The market rent conclusion would result in an effective rate of return to the landlord or 12.52% and 19.89% based on the average volume of gross sales and gross profits, respectively, averaged for the three last years. MARKET RENT CONCLUSIONS Effecitve Date May 5, 2017 Monthly Market Rent $2,250 Annual Market Rent $27,000 Average Gross Sales - 3 Years $215,726 Effective Rate 12.52% Average Gross Profits - 3 Years $135,726 Effective Rate 19.89% Page 1 42 Exposure Time — Is not considered applicable for this valuation assignment. Page I 43 ADDENDA Subject Photographs Front View Entrance US Sailing Center Rear View Building Page 1 44 Subject Photographs East Facade View of Building with Bay Doors West Facade View of Building with Single Bay Door Page 45 Subject Photographs View of Storage Area — Warehouse Bay View of Storage Area — Warehouse Bay Page 146 View of Storage f Work Area — Warehouse Bay View of Bathroom Facilities Subject Photographs View of Bathroom Facilities View of Bathroom Facilities Page 150 Subject Photographs View of Gazzebo View of Parking Area with South Bayshore Drive in Background Page 155 ZONING CLASS DATA - ADDENDA MIAFU 21 AS ADOPTED • MAY 2014 L 0 73 0 ARTICLE 4. TABLE 3 BUILDING FUNCTION: USES 13 33'1 333 1199 L 0 WI WW1 WWII KR *CRC $ 1 a I4 la 33 331 33 41 ,... - 3 - Bf 93000311. i ,_..j11 i. 1 : 4443,,,a au. ofEwtt4a, ;4'4RIR' R P4, 4 4 '03444.340-3 RERWERGE it -4:- 4" 13i" RIR,333 49131.t.4/3.3 13.11 ,R ii •R" a la ' 4 aaagt. 4..4104144E a .94/11, -4 '41.143C 94 4 13,3 1 1 0 31 -0333WRI34 4 4 "4433* 343333 /I9. 4,1314 R / 4 E743 ii'l 4-4 I . , ' ] 1 L .,..,1 4 , 3 4 / ;WOW. IREOLE43/04a1 401334 Off#13E r , COWilii0C3343.1. 1 A3/10-2,3.1333.70,1C31443,1%313, arm ,0330311.44tRaTE331*.,9310330 E3REI41/33401r W3344 **Lt.' 3E4443.1 esimr,smo SIEWERARE 3E45403- 3e43.344 031**33034 413343* 4074344 .144t - catatiA WW1 RaCE 43.* 4111413 41-0-REA310304. EVA& ; ;3,S11146L4i473"1,3.1 3,493113k34,133.13.31" ' ;RE-3,13303434 34447 ra f***03. WL-134311 34004.34; Oi Ca 03 a az ,3,33 14 10 - a 1 S 4 3' 4 4 Weirirr ICONWRICRIL4340334' KA! 4 a 4 a ,.„------- v. . „ • . , , **R143.11313TURE AW31,4L.T77.:. a 44' * .3344,3 41434344 FP& .1474313 334L13433.3. tot/cow i uaLOCARE :34.3WW413ARtielia ; ; E I99 I1,EAR*910 a* 4/014E 311101.t010301. laRE.30430( RE*44311, faal.'14 Li E;..E.; ,-*I*;: E " , R L i -, r i 1 , • i ..o.REIXTEII `.. 1 i WIR*33/413.3334WiR*334334153440 I , --....4 ......- WARE Rain* 340,100RAL • i , .I 4 4.---- tPotoutri 1 — 4a X; 001330443330434634.1111, ,,,,,,I I . I. _ j ; ' 34 amerea 0413344***1333nala-CRCEU3443040.33wwww 01143R0WW .3.1.33,44/ Et f.,33,330.3 31304 3ialong gilt.* 11 f 4.944 7P333•41.0. ric.479 LAPPelill um* 1403.99333331e34134111,136131kr1311.30l4133,3 4,4. f E E 9. E R e 1111 E R RI 94 4 E 44a a "C 1 4 17. , 'a 1.9 q 4 99 999 * A * bats 44#499.994 43413443, 44ws43433331013.34-44333 TX* -131.9.344334. 4:3333193.4AM ta4 Zaa Sae taf 1:40 Calaa ao..lort *WON 44.404 04443114t lont*Emo " Marro ehr•Stel cif Mert TS aro Are 34..*ataar 14431099S 311aregAILIONZar3t 0/. Page I 56 MIAMI 21 ARTICLE 4. TABLE 4 DENSITY, INTENSITY AND PARKING (CONTINUED] AS ADOPTED - MAY 2014 c•tic C4„MIS SpA4f I CI...CMC fRllfSt419M =Cle1EJ- CI' Meer HI At* DKtN£1 � iF +f irt�fkl Imo LFllAff'C Ui A611TLitff23ME 95a W1TOM ACRE M:t train. paAlywea!soleee i4pµgAwrrt 6a Rtatr fuel ? the ToIfi,FN$$$$.$AW Z$$$ PAW,/ =9.11.1.64...., ue w$.aai Pot** ,4.1...S ''s4ea was paerttespia as wye m Tear F ®rats by ' Onntin f I =nag swiss rt.. M 4 ss$ra .4= of Re411.11401 to € u+H!R9 ° 141a4&F. T$pa jd-bR9 AKA+ s al f Sarre al •e.� O�tpnq.one ?Paeal %mind Mli= 4. r ABee6eear.. SSW= edtiSp4411t4e4.eee MTwAraW' LOOMIS'tArarvn ..._....._m._._o._......m_.. a 9aef neau W 4wea ra •• ettlaveet2al ' IewWeE'iRrAt**4.'ErMRS ... 9Xiwtker a*a pe.T,n rs. xr.=t ea :r' a.a s • iyleeilra f t pltr'aff ape** awq I* ffa+af TN` a r4ea' M f *++f a4w aipap z `➢ M aeQftte.laPcp ten* E. l raeendeweiletasac a team.:. asta:iet=== tAAtAeef(f4ewan tegwY 51 14 s4=f eep6 mrr lee •.true+ 3-tha iNetql ,. paaeoitaer 94 prahws rife A?,.. a U., 14 OM L, Re and =sta k a arpenq+nrageaaae.,., hne e$MIEIKEPL we eewot l esf a1*law' arrant= has 're =rat.0 sr Ma., ems! . -• ' 'slaean or s afptrrg tiKrsf :aW§,±P; QST a -% *tea*wrote*.s wA xperee i a.liegweeltet M!h 0..1 fee :ntrant=f L'ar wa 141= lei:'LaMar .0.1igWn erewe Dire 1 4*bI[Ye4N -neePt1AaSM4.ai 9xai tr.., Moat _'Saw iia@!ng •l.�•..aee.o6% .Gse44 ;WV* $4.4 Vduclien$1' a m". $1 161R.A Spat.= 46tra .li 4/ 41 I .4 Weei'pt -ter OT**tett tre,tottry 6R'.$. f.4: '''''' Ci'YpLw prat. * 0F3v** Om al9 *Arty rfr* ytryy s rtott tt ttattW °'6 nom} vials. Kamen, ai•e4Vata) 4ath>¢3& ,,,• it.M411141 tiett**•4**rtr,YStoritEeer....... »'Y30.+St6 afl 9y Macaws Melees era eMncY eee 400 4 ?161 met A4 -*NiW * geigegletit 'S W. 4F IMI PAP.Wi 'ByeMra { e-IeraYla ;eye !boy tit •eelCae foe Awe Sear. F.c..7 ;eMm emet ofelieaweel UtewwwwwStWeeP aitras I P4w{a1A6iSf a} is ti kV* IeL ,r e.», be araelwg t iiYIDeep # 1 ,•." peewee!' spKa'rr &esY Wpm..•• OC.eo emaA uw Sat .1=== a TAB 6 Y 41'e4e fe pai.`+i4Ylr ap tilbtlw we r 1 ILhm U0.9 M 36EtNYYbes we Protege •n'e64 Y. ft 1iAnpfe9 d 1 #nAfi llece ke ereeey+ YA epOM411 +tiitrapro+§�d p'a'aena4.+er wfaP. eyacg areetelees�iy A 4Mewerad a peetinprnr.6'e etweSPfaarm . MOM Ggp4sea gaRz.. 4FRAi I` IAeAYel'Se4A?BgRi.T 4 ile rteratt*Ayr*** ter !eggnog aeetee*wageellt9AfeeneetelosI srteowsh w aaess, ***Yey aeAN. sa R+aa+C San=.= ine===f.i w4aa==.1.9 41 f+$.rrwe j • FS PI r 0.11 a4 Val... .....M tutt tmetty st a fenrn f 1 emag saw ftr =aat ler1..am5eZ { =14e iPt= . 01==m0aa itea j kfMS" d s lAtir9 e+: a tm awerr We Ss of k.knekt.1 r *PM" pe 1 lea+, :g wire era eww sop 00.0ya+q -; Wee+ kge 'etWa1*AI scree. ' area'4, sen..Fsnr =et .AA new+:af4.44rtaE44Wweg.1..EfNhRe2yr00.4...S`eats= f tad ii£s tpets$e*wee 751 ye*** ***I *Awed :yberrre eite ttet*AG'hh6 '', RBWtai44kee,,,, 5. Palealr rap•m4d af+tiaCi. Q?Ssr rS+Aa;• Peialrn== parsed MalmoQ, TS as Matti. M 'ewe,: 'g':5_g...!^g'.u"+ r" w i MCC. !91_.11Mr"Ptett7. ` ' -.iYq li4ioPdFT •ha 1:a,py = ....= wexmatsl�; sr Wm .1 Tabta 1,..: wrY4 §e tareidet re wee S f5.mA A:.vm eeett,dlg i�M*WeeheI-. aekMiwe eXpe,gefeeTheekr3et eweeeteleeppePeppewej-I. nil" 1 ►afpe 1 Cr* Sweet liftswf p4arAsuker ere aiya es eat .e WeigeefWe ea*yM4R wire I 4./ CAPIPPPVIItWel ere ".Va0.1IPPep-I pa¢Ars..... rgyr_ arm mf t m r=a e aas,Ti WPM . Rol*** tSras. f`$ *we*, *, f t germs tput lee a.e p ygm•a ... ¢CieYSaa /l;id.. pfSep,: Swe. AaiM 4 B S a.m.*e S^6R'.x'f#*SY . xewa D,ae«4' titeAtt f 1 wfaeit far eft. ", "Mt 1m sear t Cr9342A41>Mfia. _. .. ........................�m�a.m.e..,.e.m,,.,..m ®efa.fl.•w.rrer .;xa . pf"'rRtQkE #T 3fie n 'die 1.'Lrl#.e1wM Yrrlhll A'4 iMaabf`Ee alkia ,. Wt..= b 2 ewer. yoty tY a9' `:_ems $ el *Amoy, 9pen4 1 .N6AV%P V,* Hew. weefAev WW1: Corm*. teyer rn6161.91k @.le/:***wok _ . ,`+Msc retaAaa . ikar aw d , `iDae sn mire,, merr0ar 1 cue ti ew. w. wed a *1.u"f tawIw kw ..cq If 4.141 C4Fa`dre• ':. `: -:. . mw,.�.,.,.,.... .,..,.�•crcvcc.. ew... 1.n4e 4e ..RR.S6tl. i3 IPA 40 1 .a YeW.= I talphiar. WV • W mean of ? 6a'4n9 111l 1 i#a ran, t 4 �• Vit.6.3naA Ware • S6lreea- *vow r et t veal gwer* Neb eft w• ` ' '.✓ YP E6,Ceae!hrl Jle. Ana t+�j n*'..aa#sae 4 Tam ffi »-....-..-....- _ +Alt nswys. vettit, =am cats per .1.6=oa th, 1 mp x .e tv i Prniertt a inept It $ 4 76f Crerlit ASeas•9tSr Ciristsa ca[rlb=. 1iraaea Y 1 am= pit Ille s tirpaw t mint. = aaav [M t p•df ipfp #t y • ilwerewn ffw en Sse ege saA•tewrOiewt ewineepee' i._ � •_� .i NIS Page 57 MIAM12i AS ADOPTE MAY 2014 ARTICLE 4. TI BLE 7 CIVIC SPACE TYPES Pm fade dexnbes dad sfamires for sreas eared as- Corr Sam CS i. and 'Dr punt Pars% tee Open Space pre Critic Space Types dime be. at tit gourd eve landscaped andror Deed open t° the sty are de a De open t Oevaleey Deleted Open Spam requirements '°r each :one ate *sated ti Arttde 5 Park. A raga p+estrt asala ear arstr,ctured and strut Furest eecrmean prograq' A Park. may Ge .Mependere ace sr:rr°sncenq E urdng Frontages 'b itedsrape may oe Dabeatritit and cans, st s' pains and rats, rneamns wnaasand ;ones tea* and open *e ters Paris may °e Canyervvaoen Areas_ presteeng natter oridtons and Aar see may vary b. Gnarl- AS, Ober ,,cace. He water For: iere nrc3aedrenseinn program A. Omen may be spatraiy de!red ar Wrist tong ^seer don %tdrrnq Frontages b landscape shad carat of lanvn and Vets late entreaty. dopand. The svermian WM Ind be one we widths rear{n * seat be s noes. CSgwu.Ar©cenSpaDeere`.aWerz<rDeretaceaedseireternprogar,a��.�;:. sprrtsty *rued by 9rtierg Fmetiers wt°r streets de as toe crew F artage es an ape sea+ Ware cepa rernert.. fayrr s one bets %treaty disposed. Squares sRal be *sated at ter niierseret , °trepmtrtTheriaerbres The MINPI-Jtnsere shell he9f!and and :amarrnun*et de2acne, d PFaaa: An Gprcrr Space availebie ft et pt se a e F" xfram ntd aQta is a Mon shot or KiSktly defiedby Btiila4irsgFromt sanFd may re:. estneP Fronta s °d landscape snag. CORPS' cars a,"r .44 Paaanereandbees Picas sballbeistdeeatlEteinterest-bun anpartartPion:u hter•e. The *nssareum see sKil be t!B acre and tee mrennrase shall be 2 acres e Courtyard. i Gat Art t„per Saxe spreonf defined by Surdrgs are street Imes and revs y neatest* an xeside to nsn seer 7,} Delia 4.,drK Benefts crustier,.. sk Ctax space Testi may be teen -de re f. Playground: M 7pen d kr At recur#mn °e edd:en A Pla-,gr era shill be breed and mayndu3e an Dram s.'iein Pbe tamper seamen, nseerdeal areas and may be pinto natlm a t3eodt PHrygruurds may be rsivdesi Mgr Puke and Gireens t w-. ;Dees ne nornua of merman sae 9 Pedeeniai Passage Al 3per. Space Da:nettng caw put* spaces, tr at :a restated t braes hoar use and teemed veneerer access dt a:fle et'', man d :A feet &4&tg r i e fr i* ng PedesLian Passage doer hovel -regard doom and awednan tcTT&36 T6-48. T6-60 are T&812 a Pedesba n Passage may be mad h Coamudy Gando... residents d sere - -,.r_ Yrr ern* artommudate r.6vdcie stare* shed. li124 to 1T L r Page 158 MIAMI 21 ARTICLE 5 SPECIFIC TO ZON AS ADOPTED MAY 2014 5.7 CIVIC SPACE ZONES (CS) AND CIVIC INSTITUTION ZONES (CI) 5.7,1 Civic Space Zones (CS) 5.7.1.1 Development in a Civic Space Zone should have a minimum of fifty percent i50%) of its perimeter enfronting a Thoroughfare Civic Space sites shall be entered clrectly from a Thoroughfare, 5.7.1.2 Development in Civic Space Zones shall be COriststen1 with the standards in Article 4, Tables 3, 4, and 7 5.7,1.3 Ore or more ulngs may be built in each Civic Space. Building floor area shall not exceed twenty - live percent 125%1 of the tot area of the Civic Space. and Shall support the owl opal use of the Civic Space. 5.7.1.4 In Civic Spaces Buildings, Fences and walls shall conform to f egulatons of the most restrlrte Abutting Transect Zone, except as shown by Cty of Miarni s Parks anti Public Spaces Muster Plan Other adfustnents to the regulations Wall be approved by process of Exception 5.7.1,5 Ail Community facility and Recreational Facility uses shall be government owned or operated only. 5.7,2 Civic In ftution Zones (C1) 5.7.2.1 Development in a Civic Institution Zone shalt have a mtnititurn of one (1) Frontage erfront Thoroughfare and should have its primary entrance from a Thoroughfare. 5.7.22 Development in cc Institution Zones shall be consistent with the standards in Article 4, Tables 3 and 4 5.7.2.3 A avic Institution Lot may have one (1) or more Buildings 5.7.2.4 CMG lnstituticri Development srtati be permitted by process of Exceptiori and shali conform to the following regulations a. Any property located Within a CI Zone May be developed according to the regulations of the most restrictive Abutting Transect Zone with all Frontage Setbacks considered a minimum b. Development in a CI Zone shall follow the regulations ot the Abutting Transect Zone. except that Height restrictions shall be as foligiva 1. A Ci Zone entirely Abutting 73 shall be developed to no more than the maximum Height at - lowed by 74. 2 A CI Zone predominantly Abutting 13 or T4, shall be developed lona more than the maximum Heght Marred by 75 3, A CI Zone predominantly Abutting 75. T6-8, 01, 02 or D3, shall be developed to no more than the maximum Height of T6-8. 4. A CI Zone entirely Abutting T6-8 or higher, may conform to the maxlMum Height rainy higher Abutting Transect Zone. V 43 Page I 59 LEASE PREMESIS - AMENDMENT NO. 4 r .• • #4 ''' ,•••• •••• 1124 . tz••• • kt Sk • ; • • tatlialiWn ,,go.r.:..aat.leg7=4..taat • Are F-• rk-=. • i•••,•-•:„..., • At...A.M.P.Pareatof O co w as 0_ Regional Analysis - Economic Overview and Outlook FLORIDA - GEOGRAPHY The most southeastern state in the union is Florida; it juts out as a peninsula thus becoming a noticeable appendage to the United States mainland. Florida sits on the Floridian plateau, a platform that is 500 miles long and 250 to 400 miles wide. The Floridian Plateau has a core of metamorphic rocks buried under 4,000 feet of sedimentary rocks. It separates the deep waters of the Atlantic Ocean from the deep waters of the Gulf of Mexico. The Floridian Plateau has existed for millions of years where at times it has been either dry land or covered by shallow waters. This platform is distinguished as one of the most stable areas in the world. Therefore Florida is almost void of seismic activity. Florida's state boundaries are Georgia, directly to the north, and Alabama, to the northeast. The Atlantic Ocean and the Gulf of Mexico serve as natural boundaries to the east and west respectively. The state of Florida covers an area of 58,677 square miles of which 4,424 are water. Right in the middle of the state is Lake Okeechobee the largest freshwater lake located entirely in one state in forty-eight adjoining states. Recently the State Bureau of Geology discovered land elevated over 345 feet in Walton County thus making this the highest known elevation in the state. Florida is located in the Tropic of Cancer and is thus blessed with a great climate. Because no part of Florida is located more than 70 miles from salt water it benefits from the ocean breeze. One of these breezes is the Trade Winds which is swept from the warm Atlantic ocean. The Gulfstream's water is also a prevailing factor in Florida's climate. The Gulfstream can best be described as an underwater river that runs from the island of Cuba through the southeastern part of the United States. Florida's weather, long known as a haven for northerners in those cold winter months, is seldom out of the seventy to eighty degree range. The warmest months of July and August sometimes make southern Florida reach the ninety degree mark. Because of the weather, most Florida homes are equipped with air-conditioning to alleviate the hotter, humid days. Rain is plentiful in this peninsular state. The rain falls mainly in a four month period from June through September. These months are referred to as the rainy season. During these months rain can fall at any time from a previously clear sky. Even though at times days may start cloudy, it is seldom that Florida has a day without sunny skies. Because of the annual abundance of sunny days, Florida is known as the "Sunshine State". Unfortunately Florida is susceptible to some of nature's destructive powers. Florida has sometimes fallen prey to tornadoes tropical storms. The latter sometimes reaches hurricane proportion. Although warning of upcoming hurricanes is given with sufficient time to protect human life, it is sometimes impossible to make structures impervious to the high winds. The last major storm to hit Florida was Hurricane Andrew. Because of the damaged caused by its nearly 200 mile an hour winds, building codes were made stricter for family dwellings. Page 161 Florida's topography is uncomplicated. It is mostly a flat state with few variations. For the most part Florida is all coastal land. It is difficult to ignore the ocean's influence even in the most inland parts of the state. The many lakes and inlets make the state an ideal water sport state. In describing Florida's characteristics one cannot ignore its rich marine resources. The coral reefs that can be seen just minutes off the coast are considered natural wonders unparalleled. The estuaries that occur when salt water and fresh water meet thus forming a habitat for many creatures are magnificent. Florida is also home for various species of bird and plant life that are indigenous to this state. If there is truly a state that is nature friendly, it is Florida. SOUTHEAST FLORIDA Southeast Florida can be divided into two district topographical areas: (1) the Atlantic coastal ridge, and (2) the Everglades. The Atlantic coastal ridge is where Florida's major cities are situated. These cities include Ft. Lauderdale, West Palm Beach and, its best known city Miami. West of these major cities are bedroom communities, some of which are incorporated, such as Coral Spring, Weston and Pembroke Pines in Broward County, and Doral, Hialeah, and Hialeah Gardens, as well as unincorporated areas such as Kendall, in Miami -Dade County. Further west of these areas, in both Broward and Miami -Dade, is the Everglades. The Everglades which is now considered a national park has been the focus of much development in the past. A considerable amount of Florida's dry -land has been taken away from the swampy Everglades region. The Everglades has been eroding through many factors but its recession is predominantly due to human intervention. It has been known, only recently, that the depletion of this area may turn out to be very harmful to Florida's future. The Everglade's conservation is being very closely monitored by scientist and politicians alike. Currently great strides are being made to restore The Everglades. There are majors programs under way to acquired huge swabs of land, as well as specific engineering projects to increase water flows. MIAMI-DADE — (Geography — Climate) Miami Dade County is physically the largest county in the state of Florida. It is situated in the southeastern -most corner of the state. Its boundaries hold 1,955 square miles of land, and are bordered to the east by the Atlantic Ocean, to the west by Florida Everglades, to the north by Broward County and Monroe County to the south. Miami Dade County has 84 miles of Atlantic coastline, sixty- seven square miles of inland water areas, and nearly 633 thousand acres of protected national, state, and local community parks. Miami Dade County has a subtropical climate, with an average temperature of seventy-five degrees, about 60 inches of rainfall annually, relative humidity ranging from 80% in the morning to 60% in the early afternoon, and annual sunshine probability of 68%. OVERVIEW - (Political — Social — Economic) Page 162 Miami -Dade County consists of 33 municipalities and a vast unincorporated area. Each municipality has its own government and provides city services, such as police and zoning protection. The three largest cites in Miami -Dade County are Miami (365,204), Hialeah (211,201) and Miami Beach (94,012). The county's economy has become increasingly more diversified. The Miami -Dade County economy has a gross county product exceeding $80 billion. A traditional major economic sector driving the local economy is the tourism industry. Another major sector of the area's economic vitality is closely linked to Latin America and the Caribbean Basin. It is estimated that over 30% of the labor force in the Miami Dade County Area is directly involved with international trade and commerce. Miami -Dade County is the Business Center of the Americas, attracting businesses worldwide that choose to open their Latin American headquarters in South Florida. There are over 1,350 multinational corporations established in South Florida. Miami Dade County has a disproportional number of Edge Act Banks when compared to the rest of the country. Florida's increasing trade with Latin America and Europe helps to account for the large number of Edge Banks in Dade County. Wholesale and retail trade and services is also one of Miami-Dade's largest business sectors. Manufacturing is strongly promoted and is another important component of the area's economy. As Florida's number one manufacturing county, both in employment and number of establishments, Miami Dade County is home to manufacturers producing a wide array of products. The greatest concentration is in the apparel, printing and publishing and medical industries. More than 1.1 million people make up Miami -Dade County's labor force. The employment growth sectors in Miami -Dade County include professional and business services, health services, wholesale trade, and construction. In addition to the tourism industry, another fact that accounts for the local employment picture is the continued expansion of the Latin American economies is foremost. This has led to record levels of international trade, fueling the expansion of Miami-Dade's wholesale trade, transportation and financial activities. Also, Miami is succeeding in becoming a premiere global leisure travel destination and as the music and entertainment capital of Latin America. The Miami destination has enjoyed moderate growth with strong increases in room rates and occupancy levels at hotels and motels. This factor stimulates retail trade services and other consumer related activities. Page 163 Cost of living The cost of living in Miami -Dade County is below that of many other major cities such as Manhattan, Boston, Los Angeles, Washington, Philadelphia, and San Jose. Miami's sales tax is below the national average and there is no state income tax and no local income tax. Employment Miami -Dade County's workforce - its size, diversity and range of skills - is the heartbeat of its economy. There are several resources for workforce training. Miami -Dade County Public Schools offer customized training for businesses at minimal cost. Miami - Dade County has the fourth largest public school district in the United States, with more than 364,000 students. More than 80% of graduating seniors continue their education, and approximately 119,656 residents pursue vocational and adult education studies. Miami -Dade College (MDC) offers on -site training for businesses in the following areas: management, supervision, computers, foreign trade, professional development and corporate training, vocational and occupational training certificate programs and Associate degree programs. Miami -Dade County has many top private and public universities and the nation's largest community college. Approximately 113,509 college students are studying at institutions of higher learning. Currently the unemployment rate stands at 4.8% down from 5% for the month of May 2017. Miami Dade unemployment rate has fallen for the fifth straight month. Tourism/Visitor Industry More than 10 million Europeans, Latin Americans, North Americans, and Asians flock to Miami -Dade to savor the region's 15 miles of pristine beaches, and vibrant nightlife. The visitor industry is the county's number one moneymaker, employing approximately 14 percent of Miami -Dade County's workforce, and injecting $13.5 billion into the local economy each year. Countering the nationwide trend, Miami-Dade's tourist figures and dollars continue to rise. Demographic Data In June 2003 the U.S. Office of Management and Budget (OMB) announced a number of new metropolitan statistical areas (MSA) and divisions. The new South Florida metropolitan statistical area includes Broward, Miami -Dade and Palm Beach counties. The name of this new MSA is Miami - Fort Lauderdale -Miami Beach. The new Miami -Fort Lauderdale -Miami Beach MSA has over 5.2 million people. The Miami -Fort Lauderdale -Miami Beach MSA population ranks as the fifth largest MSA in the United States, trailing only Los Angeles, New York, Chicago and Philadelphia. Page 164 Miami -Dade County is a microcosm of America with a large diversity of languages, accents, foods and cultures. Miami -Dade has the highest percentage of Hispanics of any large county in the nation, outstripping even Bexar County, Texas - home to San Antonio - which took the title a decade ago. Immigrants, mostly racial and ethnic minorities, have streamed into Miami -Dade over the past 40 years. As of 2010 the total population was reported to be 2,496,435, a growth of nearly 11 % since 2000, or slightly over 1% per year. The County's growth is mostly because of immigration. That makes Miami -Dade the second-largest county on the East Coast. The population of this culturally diverse community is 21 percent non -Hispanic white, 21.6 percent black, and 57 percent Hispanic. While the Hispanic culture in Miami -Dade has traditionally been of Cuban background, significant changes have occurred. While Cubans remain by far the largest group, they are increasingly living alongside other Latin Americans. Since 1990, in Miami -Dade, immigrants from Paraguay increased 161 percent; Venezuelans were up by 119 percent; and Mexicans 65 percent. By comparison, Miami-Dade's Cuban population grew 15 percent. All told, the number of non -Cuban Hispanics in Miami -Dade is now roughly equal to the number of those with Cuban ancestry. Changes have affected South Florida's coastal retirement communities, turning them into family cities, as the median age dropped and the number of families with children rose sharply. The push to the suburbs continues as once isolated edges of Miami -Dade become sprawling suburbs in areas such as Aventura in the northeast and West Kendall and Doral to the West. International Trade Miami -Dade stands at the intersection of the Americas and the world, and is the meeting ground for more than 1,000 multinational corporations including Apple, Oracle Corp., IBM, Clorox, Burger King and Porsche. Miami-Dade's enviable proximity to Latin America and the Caribbean has made it the uncontested center of international trade with those pivotal regions. High percentages of all U.S. trade with Central America, the Caribbean and South America flowed through the Miami Customs District. The Miami Customs District is made up of all Florida seaports and airports south of Tampa. Miami International Airport, the Port of Miami and the city's highways and railways make up the infrastructure that feeds the region's thriving international trade. The top exports flowing out of the Miami Customs District were electrical and electronic machinery and equipment, aircraft parts and medical equipment, bound for Latin American or Caribbean countries. Top imports include accessories and apparel. Leisure Page f 65 Miami -Dade is one of the most multiethnic and multicultural areas in the world, bringing with it the music of the many languages that are spoken here. This is a melting pot in the truest, most wonderful sense of the word - no matter where you come from, you will feel not just accepted, but embraced. Leisure opportunities such as year-round sports, entertainment, cultural activities, and shopping are often mentioned as key reasons for being based here. The possibilities are endless — sunning on the white sands along the coast; an airboat ride through the Everglades; taking the kids biking at a waterfront park in Coconut Grove; visiting galleries in Coral Gables or Miami Beach; hitting those unbelievably chic stores in Bel Harbour; a romantic dinner for two; or golfing and fishing. With an average annual temperature of 75 degrees (23 degrees Celsius), a low cost of living, a diverse and welcoming population, wonderful neighborhoods, excellent schools, an endless array of leisure and cultural activities, and easy access to and from Latin America and the Caribbean, it is no surprise that so many call Miami -Dade home. Transportation Miami -Dade County has a comprehensive transportation network, designed to meet the needs of residents, travelers and area businesses. A public mass transportation system, known as the Metrorail is a 20.5 mile elevated rapid transit system. Presently, and nearing completion, a new leg to the Metrorail system is under construction. The Metrorail Extension Project is a 2.4 mile extension that will run from the exiting Earlington Heights station to the Miami Intermodal Center (MIC). At a cost of $506 million, this project will provide connections between the Miami International Airport and rapid transit. The Metromover is a free and convenient way to get around downtown Miami -Dade County. Riding on rubber tires, the automated trains cover a 4.4 mile loop around downtown Miami, the Brickell financial district and Biscayne Bay. Passengers are treated to a scenic view from the elevated height of the single car train as it winds past the business districts. The Metromover connects with the Metrorail at two stations, taking passengers on a 21.5 mile aboveground route northwest to Hialeah and south through Coconout Grove and Coral Gables to Kendall. The extensive Metrobus network connects all corners of the County. Amtrak trains run out of Miami, while the 65 mile Tri-Rail connects Miami International Airport to Hollywood, Fort Lauderdale, Boca Raton and West Palm Beach. With the third highest international passenger traffic in the United States, Miami International Airport is commonly known as the "Hub of the Americas," serving as a vital gateway between the United States and Latin America. More than 100 airlines fly passengers each year. The bustling airport is in the process of billions of dollars in expansion programs to accommodate more passengers. Massive cruise ships leisurely make their way out to the sea from Florida's largest port, the Port of Miami, which saw 3.3 million passengers last year. Approximately 8 million tons of cargo passes through the busy port each year, and a five-year, $171 million capital improvement program has resulted in the renovation of existing structures and facilities and the construction of new ones. Page 66 Summary and Conclusion Over the last four decades, Miami Dade County's growth has been explosive in comparison with the nation as a whole. With time the area has matured, its economy has diversified and gained importance as an international trade and finance center. This diversification and increased independence from tourism is a trend which can be expected to continue in the long term. The national economy as of late experienced an intense and widely visibly recession. Recovery began slowly and over time. The residential real estate market suffered significant declines in the volume of transactions and in many in prices (values). The commercial real estate markets also experienced a similar slow down in volume and in more isolated cases declines in prices (values) — albeit at a slower pace than residential product types. The slowdown, correction and reversion in the real estate markets were widespread, coupled with the credit crunch. This is was due to the financial credit markets exhibiting a significant decrease in the amount of capital available for real estate transaction both in the residential and commercial sectors. In particular Miami Dade County experienced a significant correction in the real estate market for all product types — but especially for the housing sectors — generally considered more acute than in most parts of the country. Miami was at one point reported to be the most oversupplied housing market in the nation, by the National Association of Realtors; most of the vacant inventory consisted of condominiums. Miami was also reported to suffer from one of the highest foreclosure rates in the nation. Miami and Miami Dade County, it must be noted are very resilient. Before the great recession, the area experience incredible changes, both natural and man-made, but it still continued to thrive. Major employers in the area such as Eastern Airlines and Pan Am have ceased to exist, yet Miami and Miami Dade County maintained relative strength. Hurricanes have taken their toll in the past, and yet the area bounces back. It is widely recognized that Miami and Miami Dade, ultimately fared better than most national economiclpopulations hubs as a result of its ties to the Caribbean and South America. The area will likely continue to benefit from international trade and tourism. Also, the sustained population growth over the last four decades can only continue to force economic growth. Commencing in 2012 the national economy began to experience a period of growth, after the last national recession. The national economy began to experience notable upticks - even if on an intermittent basis - via different national measurements, which were in turn reflected in South Florida as well. Since 2013, especially in South Florida, real estate markets have improved. This was translated into real estate markets for all product types. Continued reasonable strengthening is palpable at present and is expected into the foreseeable future. Property values for commercial properties continue to show signs of movement towards stabilization, with 2012 establishing the Page 167 lowest threshold ever reported for the area in terms of average sales prices as well as volume of transactions. Today all real estate product types illustrate increased strengths. Property values for commercial income producing properties are increasing, with the housing market currently experiencing an increasing resurgence. The broad strength is palpable in most markets, defined by property types and geographic areas, with continued reasonable gains into the future expected. With increased demand, pricing (value) is in the increase. Commercial rental rates for all product types have also increased but they have been followed with mixed signs on vacancy levels. Given the economic, social, governmental, environmental and locational influences at play, the subject property, and the market area, is poised to benefit from potential growth in the future - steady and continued strength — albeit tempered from the height of the market. Property values for all commercial properties are expected to remain stable, with upward pressures on prices and values. All commercial real estate product types are expected to illustrate reasonable strength in the future. A growing population base, an excellent climate, a diversifying economic base, and an extensive transportation system all contribute to the desirability of the South Florida area. The desirability of the broader area coupled with the expectations of continued strength for all commercial real estate product types, appears to be both the cause and effect, attributed in particular to being the recipient of the considerable influx of capital flight into South Florida from South America and to a lesser extend Europe; a phenomenon that has assisted the entire South Florida area in its economic revival since the last national economic recession; often now referred to as the Great Recession. Page 168 Vlsx City of Miami Purchase Order Dapariment Purettasing P-0, Box 334708 Marro, P3ariCa 33233-I3708 1305} 416«1x322 Fax • {305) 416-1925 opportunities atw.,vor.namigov convprocurome PURCHASE ORDER:RELEASE NUMBER C-P.ors1r >l:har9e 170409T 3Fsrmber 'pate Sir... ha n.ert,. as 41 +---, mm.+s. aN ,00wne Mem+. 1 1055,QQ20" 7 age Na. Date 9k1 Ceestrara haimbrt 2 OaPa t 0i Main -France - General Ac >c + $'N 2nJ Ave. *pf100r nwan., Et 33130 Fa' 5305) 418&15e7 miatueservarncov n-gr PiHM IWO Mewed a Austvy or me usreice ea the SAKI T4 e I atov-e. Page 69 Appraiser's Qualifications Document Albert J. Armada, MAI, SRA PO Box 1247 South Miami, Florida 33243 Phone (305) 266-3930 Cell (786) 208-4983 al be rtarmadaa ppraisa I.com EDUCATION FLORIDA INTERNATIONAL UNIVERSITY Master of International Business, 1984 UNIVERSITY OF MIAMI Certificate of Middle Management, 1979 UNIVERSITY OF FLORIDA Bachelor of Arts, with Honors, 1974 MIAMI DADE JUNIOR COLLEGE Associate of Arts, 1972 LASALLE HIGH SCHOOL High School Diploma, 1970 EMPLOYMENT ARMADA APPRAISAL CO. (12-92/Present), Miami, Florida Position: Principal/Appraiser/Consultant Established and managed residential (simple to complex) and commercial (owner occupancy to investment grade) appraisal business. Promoted and marketed real estate appraisal business to banks, lenders, mortgage brokers, developers, investors/owners, attorneys and accountants. Conducted and performed inspections, researched and analyzed (sales, rents, operating expenses, rates, yields, highest and best use and feasibility studies), valuations and appraisal reports. Prepared/update regional and market/neighborhood analysis. Trained, supervised and reviewed appraisal work of subordinated staff appraisers, including certified and trainees. CITY OF MIAMI (5-77/5-93), Miami, Florida Position: Property & Lease Manager Property & Lease Management Division G.S.A. Department, 11/92 — 5/1993 Department of Development, 1990 G.S.A. Department, 1986 Finance Department, 6/84 -1985 Position: Acting Assistant Director Treasury Management Division Finance Department, 6183 — 6/84 Page ( 70 LATERAL EMPLOYMENT Position: Lease Manager Property & Lease Management Division Finance Department, 1982 Position: Projects Supervisor Administration Division Community Development Dept., 1980 Position: Administrative Assistant Administration Division Community Development Dept., 1979 Position: Personnel Officer Employment & Training Division Human Resources Dept., 1977 DECOR INTERNATIONAL (10-76/9-77) Miami, Florida Position: Sales Representative MIAMI-DADE COUNTY (10-75/1-77) Miami, Florida Position: Program Director / Unit Supervisor Department of Health & Human Resources STATE OF FLORIDA (10-74/10-75) Miami, Florida Position: Youth Counselor Department of Health & Human Resources VALUE ADJUSTMENT BOARD (2008 to 2014/2016 to Present) Circuit and County Courts Miami -Dade County, Florida Position: Special Magistrate HEDG-PETH & GALLAHER, INC., (1997/2001) Miami, Florida Position: Staff Appraiser BLAZEJACK & COMPANY (1-88/7/89) Miami, Florida Position: Staff Appraiser THE REPUBLIC APPRAISAL CO. (9-86/12-87) Miami, Florida Position: Staff Appraiser REAL ESTATE CCIM INSTITUTE APPRAISAL Investment Analysis, C-104, 2010 FINANCIAL User Decision Analysis, C-103, 2008 INVESTMENT Market Analysis, C-102, 2006 TRAINING Financial Analysis, C-101, 2006 Page71 APPRAISAL INSTITUTE Advanced Income Capitalization, 2001 Standard of Professional Practice C, 1999 Report Writing and Valuation Analysis, 1996 Advanced Sales Comparison & Cost Approaches, 1994 (Continued) Standard of Professional Practice B, 1994 Standard of Professional Practice A, 1994 Case Studies in Real Estate Valuation, 1990 Basic Valuation Procedures, 1989 Capitalization Theory & Technique B, 1987 Capitalization Theory & Technique A, 1986 Real Estate Appraisal Principles, 1986 NATIONAL SOCIETY OF FEE APPRAISERS, 1980 Miami Dade Community College Residential Appraisal, 1980 BERT ROGERS SCHOOL OF REAL ESTATE Real Estate Brokers License Course, 1987 Real Estate License Course, 1983 HEAVENER, OGIER SCHOOL OF REAL ESTATE Principles and Practice of Real Estate, 1982 NORTHWEST CENTER Leasing Commercial Real Estate, 1986 COMMUNITY US DEPARTMENT OF HUD & FLORIDA COMMUNITY DEVELOPMENT DEVELOPMENT EDUCATION CONSORTIUM TRAINING Florida Community Development Administration Curriculum, 1981 HUMAN RESOURCES TRAINING INTERNATIONAL PERSONNEL MANAGEMENT ASSOCIATION Job Analysis, 1984 DUN & BRADSTREET Effective Supervisors, 1980 Effective Techniques for Personnel, 1978 UNIVERSITY OF MIAMI / NIDA Training for Trainers, 1976 STATE OF FLORIDA HRS/DYS Public Relations, 1975 Interviewing Techniques, 1975 REAL ESTATE APPRAISAL INSTITUTE APPRAISAL Developing a Supportable Work -file, 2016 SEMINARS Tightening The Appraisal, 2016 USPAP-Florida Law/Update, 2016 Analyzing Operating Expenses, 2014 Fundamentals of Separating Real Property, Page 172 PROFESSIONAL ASSOCIATIONS BUSINESS VENTURES/ EXECUTIVE POSITIONS LICENSES Personal Property and Intangible Business Assets, 2012 Valuation for Financial Reporting, 2009 Real Estate Finance Statistics & Valuation Modeling, 2009 Uniform Appraisal Standards for Federal Acquisitions, 2003 Case Studies in Commercial Highest & Best Use, 2001 Understanding & Testing DCF Valuation Models, 2001 Apartment Buildings, 1999 Small Hotel/Motel Valuation, 1998 Alternative Residential Reporting Forms, 1997 Dynamics of Office Building Valuation, 1995 Understanding Limited Appraisals — General, 1994 Introduction to Revised URAR (FNMA 1004), 1993 Appraisal Reporting of Complex Residential Properties, 1993 Condemnation, Legal Rules and Appraisal Practices, 1991 Rates, Ratios, and Reasonableness, 1990 APPRAISAL INSTITUTE Member Appraisal Institute, MAI, SRA Member No. 11838 AMERICAN SOCIETY OF APPRAISERS, ASA, Urban, relinquished - 2012 CERTIFIED COMMERCIAL INVESTMENT MEMBER CCIM, No. 18488, relinquished - 2016. Miller Ludlam LLC - 2001-2008 Shopping Center - Partner 4-B Warehouses, LLC — 2006-2012 Multitenant Warehouse — Managing Partner Collins Tower Condominium — 2006-2014 President Appraisal Institute South Florida Chapter President 2015 Vice President— 2014 Secretary 2012 and 2013 Treasurer 2011 Director — 2009 — 2016 Candidate for Miami Dade County Appraiser August 26, 2014 - (3rd place) State of Florida Certified General Real Estate Appraiser No. RZ — 0000397 State of Florida Real Estate Broker No. BK — 01411206 State of Florida General Real Estate Appraiser Instructor No. GA — 1000073 — (Relinquished 2013) Page 1 73 B APPRAISAL REPORT (MARKET RENT STUDY) US Sailing Center 2476 S. Bayshore Drive Miami, Miami -Dade County, FL 33133 Job # A-03-17-010 PREPARED FOR Mr. Igor Tsigelman Property Management Representative City of Miami, Department of Real Estate & Asset Management 444 SW 2nd Avenue, Third Floor Miami, FL 33130 PREPARED BY Joseph J. Blake and Associates, Inc. 4000 Ponce De Leon Boulevard Suite 410 Coral Gables, FL 33146 JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 4000 Ponce De Leon Boulevard, Suite 410 l Coral Gables, FL 33146 l Phone: (305) 448-1663 l Fax: (305) 448-7077 j www.josephjblake.com September 19, 2017 Mr. Igor Tsjgelman Property Management Representative City of Miami, Department of Real Estate & Asset Management 444 SW 2nd Avenue, Third Floor Miami, FL 33130 Re: US Sailing Center 2476 S. Bayshore Drive Miami, FL 33133 Dear Mr. Tsigeiman: As requested, we have prepared an appraisal of the property referenced above presented in the attached Appraisal Report (Market Rent Study). The purpose of the appraisal is to develop an opinion of the fair market rent of the subject as of August 9, 2017. Briefly described, the subject consists of a property utilized as a US Olympic sailboat training center and on - site sailboat storage. There is a two-story CBS office/storage building with a gross building area of 7,786 SF and a net enclosed area of 5,093 SF, constructed in 2002. The site contains only upland areas and most of it is utilized for boat storage. The US Sailing Center is a privately -operated, non-profit, facility under an existing lease from the City of Miami. This tenant has been at the subject property since 1986 and is one of ten official US Olympic training sites in the United States. The subject's site consists of approximately 76,850 SF or approximately 1.76 acres of land. The site is irregular in shape and is level and at street grade. The report contains 51 pages plus related exhibits. The appraisal and the attached Appraisal Report (Market Rent Study) have been prepared in conformity with and are subject to the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP). The appraisal is subject to the attached Assumptions and Limiting Conditions and Definition of Market Value. Corporate Headquarters: Regional Offices: Blake s<Sanyu Alilance: September 19, 2017 Mr. Igor Tsigelrnan Page 2 of 3 After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the fair market rent of the subject, as of August 9, 2017, is: Projected Annual Revenue Projected Revenue Percentage Rent Factor Estimated Rent/Yr. Base Rent $30,000/Yr. Revenues Boat Storage Fees $190,000 15% $28,500 Program Fees (Regattas, clinics, etc.) $35,700 10% $3,570 Boat Rental $5,000 10% $500 Sales Tax Discount $300 10% $30 Soda Safes $235 10% $24 Office Space Rentals $9,430 10% $943 Total (Revenues) $240,665 $33,567 FINAL MARKET RENT CONCLUSION - THE GREATER OF: Base Rent Percentage Rent $30,000/Yr. $33,567/Yr. Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $30,000, with annual CPI escalations. The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent. Rental rates for ground leases are typically adjusted every five years in the market. The majority of the comparables surveyed have a rental rate that is the greater of percentage rent or base rent. Once a natural breakpoint in base rent is surpassed, the subject is projected to pay a market rent equivalent to the percentage rent indicated in the chart above. Should revenues from storage and other operations fall below the natural breakpoint, base rent is applied. This appraisal is not based on any extraordinary assumptions. This appraisal is not based on any hypothetical conditions. The opinion(s) of value are based on exposure times of 6 to 12 months, assuming the property was properly priced and actively marketed. The attached Appraisal Report (Market Rent Study) summarizes the documentation and analysis in support of our conclusions. If you have any questions, please contact the undersigned. We thank you for retaining the services of our firm. September 19, 2017 Mr. Igor Tsigelrnan Page 3 of 3 Respectfully submitted, JOSEPH J. BLAKE AND ASSOCIATES, INC. Ted Allen, MAI, MRICS Managing Partner Florida -State -Certified General Real Estate Appraiser No. RZ426 Expires: November 30, 2018 tal len @josephjblake.com Aldo Garcia Assistant Director Florida -State -Certified General Real Estate Appraiser No. RZ2267 Expires: November 30, 2018 US Sailing Center 17-297-02 TITLE PAGE TRANSMITTAL LETTER TABLE OF CONTENTS EXECUTIVE SUMMARY 1 PHOTOGRAPHS OF THE SUBJECT 3 CERTIFICATION 5 GENERAL ASSUMPTIONS & LIMITING CONDITIONS 7 PURPOSE OF THE APPRAISAL 9 INTENDED USER AND USE OF THE APPRAISAL 9 PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT 9 EXPOSURE TIME 9 SCOPE OF THE APPRAISAL 9 IDENTIFICATION OF THE PROPERTY 10 CURRENT USE OF THE SUBJECT 10 HISTORY OF THE SUBJECT 11 AREA ANALYSIS 12 NEIGHBORHOOD ANALYSIS 17 DESCRIPTION OF THE SITE 22 DESCRIPTION OF THE IMPROVEMENTS 24 ZONING 27 TAXES 28 HIGHEST AND BEST USE 29 MARKET ANALYSIS 31 RECONCILIATION AND FINAL VALUE 51 ADDENDA Zoning Information Building Plans Operating Statements Appraisal Engagement Contract Glossary of Terms Qualifications of the Appraisers JOSEPH . LAKE AND ASSOCIATES. INC PEAL ESTATE V FLUATAND CONSULTING US Sailing Center 17-297-02 PROPERTY SUMMARY PROPERTY APPRAISED US Sailing Center PROPERTY ADDRESS 2476 S. Bayshore Drive Miami, FL 33133 PARCEL/TAX ID PROPERTY LOCATION PURPOSE OF THE APPRAISAL EXECUTIVE SUMMARY 01-4122-001-1591 The subject is located on the south or east side of South Bayshore Drive, between SW 22nd Avenue and SW 27th Avenue, in the Coconut Grove area of the City of Miami, The purpose of the appraisal is to develop an opinion of the fair market rent of the subject as of August 9, 2017. PERTINENT DATES DATE OF INSPECTION August 9, 2017 DATE OF REPORT September 19, 2017 DATE OF "AS IS" VALUE August 9, 2017 HIGHEST AND BEST USE AS IMPROVED The current improvements AS IF VACANT A marina facility PROPERTY DATA IMPROVEMENT DATA SITE DESCRIPTION CURRENT USE ZONING OCCUPANCY CENSUS TRACT Briefly described, the subject consists of a property utilized as a US Olympic sailboat training center and on -site sailboat storage. There is a two-story CBS office/storage building with a gross building area of 7,786 SF and a net enclosed area of 5,093 SF, constructed in 2002. The site contains only upland areas and most of it is utilized for boat storage. The US Sailing Center is a privately -operated, non-profit, facility under an existing lease from the City of Miami. This tenant has been at the subject property since 1986 and is one of ten official US Olympic training sites in the United States. The subject's site contains 76,850 SF or 1.76 acres of land. As of the date of the value apinion(s), the subject was being used as sailboat storage. For the purposes of this report, the subject is valued as sailboat storage. "CS," Civic Space under the jurisdiction of the City of Miami. 100% 12-086-0068.01 PH J. LAKE AND ASSOCIATES, INC. 3TATE VALUATION AND I?NSUILTIND US Sailing Center 17-297-02 MARKET RENT SUMMARY EXECUTIVE SUMMARY Projected Annual Revenue Projected Revenue Percentage Rent Factor Estimated Rent/Yr. Base Rent $30,000/Yr. Revenues Boat Storage Fees $190,000 15% $28,500 Program Fees (Regattas, clinics, etc.) $35,700 10% $3,570 Boat Rental $5,000 10% $500 Sales Tax Discount $300 10% $30 Soda Sales $235 10% $24 Office Space Rentals $9,430 10% $943 Total (Revenues) $240,665 $33,567 FINAL MARKET RENT CONCLUSION -THE GREATER OF: Base Rent Percentage Rent $30,000/Yr. $33,567/Yr. Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $30,000, with annual CPI escalations. The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent. Rental rates for ground leases are typically adjusted every five years in the market. The majority of the comparables surveyed have a rental rate that is the greater of percentage rent or base rent. Once a natural breakpoint in base rent is surpassed, the subject is projected to pay a market rent equivalent to the percentage rent indicated in the chart above. Should revenues from storage and other operations fall below the natural breakpoint, base rent is applied. JOSEP REAL ESTA BLAKEANDASSOCIATESJNC VALUATION AND CONSULTING 2 US Sailing Center 17-297-02 SUBJECT SITE & IMPROVEMENTS SUBJECT IMPROVEMENTS (FRONT VIEW) SECOND FLOOR BREEZEWAY PHOTOGRAPHS OF THE SUBJECT SUBJECT SITE SUBJECT IMPROVEMENTS (SIDE VIEW) TYPJCAL OFFICE SPACE (2"° FLOOR) JOSEPD . B .AKE AND ASSOCIATES< INC, REAL ESTATE VALU TION AND CONSULTING 3 US Sailing Center 17-297-02 TYPICAL OFFICE SPACE (2 FLOOR) TYPICAL STORAGE BAY (1ST FLOOR} HOIST ALONG BISCAYNE BAY PHOTOGRAPHS OF THE SUBJECT FIRST FLOOR BREEZEWAY SUBJECT SITE PARKING AREA JOSEPH .. BLAKE AND ASSOCIATES, I UAL €STAT€ vALaA7i4N AND CQNSIILTING 4 US Sailing Center 17-297-02 CERTIFICATION We, the undersigned, certify that, to the best of our knowledge and belief: • Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report. Aldo Garcia has made a personal inspection of the property that is the subject of this report. • As of the date of this report, Ted Allen, MAI, MRICS has completed the continuing education program for Designated Members of the Appraisal Institute. • 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 our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • We 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. • We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • Our 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. • The Appraisal Report is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. In addition, our engagement was not contingent upon the appraisal producing a specific value and neither engagement, nor employment, nor compensation, is based upon approval of any related loan application. • Our analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, • The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • No one provided significant real property appraisal assistance to the persons signing this certificate. • The use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • The appraisers 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 the date of acceptance of this assignment. JOS P Je BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AND SUSIft.TIU 5 US Sailing Center 17-297-02 CERTIFICATION After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the fair market rent of the subject, as of August 9, 2017, is: Projected Annual Revenue Projected Revenue Percentage Rent Factor Estimated Rent/Yr. Base Rent $30,000/Yr. Revenues Boat Storage Fees $190,000 15% $28,500 Program Fees (Regattas, clinics, etc.) $35,700 10% $3,570 Boat Rental $5,000 10% $500 Sales Tax Discount $300 10% $30 Soda Sales $235 10% $24 Office Space Rentals $9,430 10% $943 Total (Revenues) $240,665 $33,567 FINAL MARKET RENT CONCLUSION - THE GREATER OF: Base Rent Percentage Rent $30,000/Yr. $33,567/Yr. Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $30,000, with annual CPI escalations. The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent. Rental rates for ground leases are typically adjusted every five years in the market. The majority of the comparables surveyed have a rental rate that is the greater of percentage rent or base rent. Once a natural breakpoint in base rent is surpassed, the subject is projected to pay a market rent equivalent to the percentage rent indicated in the chart above. Should revenues from storage and other operations fall below the natural breakpoint, base rent is applied. This appraisal is not based on any extraordinary assumptions. This appraisal is not based on any hypothetical conditions. The opinion(s) of value are based on exposure times of 6 to 12 months, assuming the property was properly priced and actively marketed. Respectfully submitted, JOSEPH J. BLAKE AND ASSOCIATES, INC. Ted Allen, MAI, MRICS Managing Partner Florida -State -Certified General Real Estate Appraiser No. RZ426 Expires: November 30, 2018 tallen@josephjblake.com Aldo Garcia Assistant Director Florida -State -Certified General Real Estate Appraiser No. RZ2267 Expires: November 30, 2018 JOSEPH Jw BLAKE AND ASSOC ATES, INC. REAL ESTATE VALUATION ANQ CONSOETtRQ 6 US Sailing Center 17-297-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS This Appraisal Report is subject to underlying assumptions and limiting conditions qualifying the information contained in the Report as follows: The valuation opinions(s) apply only to the property specifically identified and described in the ensuing Report. Information and data contained in the report, although obtained from public record and other reliable sources and, where possible, carefully checked by us, is accepted as satisfactory evidence upon which rests the final opinion(s) of property value. We have made no legal survey, nor have we commissioned one to be prepared, and therefore, reference to a sketch, plat, diagram or previous survey appearing in the report is only for the purpose of assisting the reader to visualize the property. It is assumed that all information known to the client and/or the property contact and relative to the valuation has been accurately furnished and that there are no undisclosed leases, agreements, liens or other encumbrances affecting the use of the property, unless otherwise noted in this report. Ownership and management are assumed to be competent and in responsible hands. No responsibility beyond reasonableness is assumed for matters of a legal nature, whether existing or pending. We, by reason of this appraisal, shall not be required to give testimony as expert witness in any legal hearing or before any Court of Law unless justly and fairly compensated for such services. By reason of the Purpose of the Appraisal and the Intended User and Use of the Report herein set forth, the value opinion(s) reported are only applicable to the Property Rights Appraised, and the Appraisal Report should not be used for any other purpose. Disclosure of the contents of this Appraisal Report is governed by the By -Laws and Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially any opinions as to value, our identity, or the firm with which we are connected, or any reference to the Appraisal Institute or to the MAI Designation) shall be reproduced for dissemination to the public through advertising media, public relations media, news media, sales media or any other public means of communication without our prior consent and written approval. We have not been furnished with soil or subsoil tests, unless otherwise noted in this report. In the absence of soil boring tests, it is assumed that there are no unusual subsoil conditions or, if any do exist, they can be or have been corrected at a reasonable cost through the use of modern construction techniques. This appraisal is based on the conditions of local and national economies, purchasing power of money, and financing rates prevailing at the effective date(s) of value. We are not engineers and any references to physical property characteristics in terms of quality, condition, cost, suitability, soil conditions, flood risk, obsolescence, etc., are strictly related to their economic impact on the property. No liability is assumed for any engineering -related issues. Unless otherwise stated in this report, we did not observe the existence of hazardous materials, which may or may not be present on or in the property. The presence of substances such as asbestos, urea - formaldehyde foam insulation, or other potentially hazardous materials, may affect the value of the property. The value opinion is predicated on the assumption that there is no such material on or in the property that would cause a loss in value or extend their marketing time. No responsibility is assumed for any such conditions, or for the expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALIJATIEH AND CONSULTING 7 US Sailing Center 17-297-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS Toxic and hazardous substances, if present within a facility, can introduce an actual or potential liability that may adversely affect marketability and value. Such effects may be in the form of immediate clean-up expense or future liability of clean-up costs (stigma). In the development of our opinion(s) of value, no consideration was given to such liabilities or their impact on value. The client and all intended users release Joseph J. Blake and Associates, Inc., from any and all liability related in any way to environmental matters. Possession of this report or a copy thereof does not imply right of publication, nor use for any purpose by any other than the client to whom it is addressed, without our written consent. Cash flow projections are forecasts of estimated future operating characteristics and are based on the information and assumptions contained within the Appraisal Report. The achievement of the financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may well vary from the projections contained herein. We do not warrant that these forecasts will occur. Projections may be affected by circumstances beyond our current realm of knowledge or control. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements for the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Unless otherwise stated in this report, we have no direct evidence relating to this issue and we did not consider possible non-compliance with the requirements of the ADA in forming the opinion of the value of the property. EXTRAORDINARY ASSUMPTIONS This appraisal is not based on any extraordinary assumptions. HYPOTHETICAL CONDITIONS This appraisal is not based on any hypothetical conditions. JOSEPI J. BLAKE AND ASSOCIATES, INC. REAL EStATE VALUATION AtiU CONSULT U G 8 US Sailing Center 17-297-02 INTRODUCTION PURPOSE OF THE APPRAISAL The purpose of the appraisal is to develop an opinion of the fair market rent of the subject as of August 9, 2017. INTENDED USER AND USE OF THE APPRAISAL The intended user of this appraisal is the client, City of Miami, Department of Real Estate & Asset Management. We assume any affiliates, successors and assigns noted herein have the same intended use, knowledge and understanding as the original named client. The intended use of this appraisal is to assist the client with financial reporting purposes. This appraisal is not intended to be used by any other parties, for any other reasons, other than those which are stated here. Non -identified parties are not intended users of this report. PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT This Appraisal Report, with its analyses, conclusions and final opinions of market value, is specifically applicable to the following pertinent dates: DATE OF INSPECTION DATE OF REPORT DATE OF "AS IS" VALUE August 9, 2017 September 19, 2017 August 9, 2017 DEFINITION OF FAIR MARKET RENT The most probable rent that a property should bring in a competitive -and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (Tls). Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) EXPOSURE TIME To form an opinion of exposure time, we considered the exposure times of properties similar to the subject in the same or similar sub -markets that have recently sold and/or conversations with local market participants. Based on our research, we are of the opinion that 6 to 12 months is a reasonable exposure time, assuming the property was reasonably priced and actively marketed. PROPERTY RIGHTS APPRAISED The subject is appraised on the basis of a leased fee estate. SCOPE OF THE APPRAISAL The scope of an appraisal assignment is relative to the intended use of the appraisal. The following outlines the extent of property inspection, market data collection, verification and analysis performed for this assignment. ............................. . In spection Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report. Aldo Garcia has made a personal inspection of the property that is the subject of this report. This inspection included the interior and exterior of the subject. The inspection was visual in nature, to assess the economic condition of the property, in order to effectively compare it to other properties in the market. We are not engineers, and we did not assess the property from the standpoint of its structural integrity, or to determine whether any latent defects (water leaks, plumbing or electrical problems, etc.) were present. 1QSEPH 1. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CO SittTlEtE 9 US Sailing Center 17-297-02 INTRODUCTION Subject Physical and Economic Characteristics The types of information obtained and the sources providing such information are detailed in the following table. Information Sources Information Type Received? Total Gross Building Area Legal Description Zoning Information Hood Map Tax information Site Plan Operating Statements Lease Yes Yes Yes Yes Yes Yes Yes Yes Source Tenant Tenant City FEMA County Tenant Tenant Tenant Type of Analysis Applied The client has requested a market rent study be performed on the property for upcoming lease renewal negotiations. As such the Cost, Sales Comparison Approach and Income Capitalization Approaches to value were not performed as a market value for the subject was not requested. It is noted that the study is to result in specific conclusions regarding the market rent under the previously described scenario. Extent of Data Research General economic data and market data were reviewed. Market data compiled for this report include a variety of rent comparables. These data are a result of research specific to the market and pertinent to the subject. The data were verified by buyers, sellers, brokers, managers, government officials or other sources regarded as knowledgeable and reliable. A rental survey of competing properties was conducted, and we provide photographs of the comparable rentals, where available. Information specific to the subject was provided by the client, owner, tenant, andjor representatives of the owner, and is assumed to be correct. Other information, such as zoning and tax records, was obtained from governmental sources. Specific estimates concerning market rent, expenses, vacancy, etc., reflect our judgment based on interpretation of the market data. The reasoning behind such estimates is illustrated throughout the report. IDENTIFICATION OF THE PROPERTY The property is commonly known as: US Sailing Center 2476 S. Bayshore Drive Miami, FL 33133 The property is also identified by the Miami -Dade County Tax Assessor's Office as tax parcel number 01- 4122-001-1591. The legal description of the property is assumed to be correct. We have not commissioned a survey, nor have we had one verified by legal counsel. Therefore, we suggest a title company, legal counsel, or other qualified expert verify this legal description before it is used for any purpose. CURRENT USE OF THE SUBJECT As of the date of the value opinion(s), the subject was being used as sailboat storage. For the purposes of this report, the subject is valued as sailboat storage. JOSEPH ! BLAKE ANC ASSOCIATES INC. REAL ESTATE VAL ATll7 ANif CONSULTING 10 US Sailing Center 17-297-02 INTRODUCTION HISTORY OF THE SUBJECT The subject is currently owned by City of Miami and is utilized as a US Olympic sailboat training center and on -site sailboat storage. The site is leased to the US Sailing Center, which is a privately -operated, non-profit, facility. This tenant has been at the subject property since 1986 and is one of ten official US Olympic training sites in the United States. No membership fees are permitted at the property or fuel sales. The most recent lease from the City of Miami to the US Sailing Center was for 10 years with a 5-year option. Inclusive of the option, which was exercised, the lease dates are from October 1, 1997 to September 30, 2017. The lease is up for renewal and is in negotiations stage. Per the existing subject lease, the tenant pays a current base rent amount of $1,023/Month, or $12,274/Year during the 2016/2017 fiscal year. Rent increases annually based on CPI growth. Iri addition, the tenant pays 10% of gross revenues in excess of $80,000, not including donations or dividend and interest. The latest percentage rent payment, for 2015/2016, was $14,797/year. Thus, the latest total rent payment that was due to the City of Miami, was $27,071/Year ($12,274 base rent + $14,797 percentage rent). We are not aware of any listings, real property transactions, or ownership transfers pertaining to the subject in the three years prior to the date of the "as is" value opinion, other than that which is reported here. JOSEPH J. B ,AKE AND ASSOCIATES, INC. REAL ESTATE t. TtRR AND CUNSULTU Ui 11 unSailing Center 17-297-02 7yl|omi -`w'xt`� / . K tmdal | xSOLAm Monitstead � � INTRODUCTION xty Mi an� B-uch AREA ANALYSIS � i ' The Miami -Fort Lauderdale -West Palm Beach Metropolitan Statistical Area (MSA)encompayses Brow/ard, Miami'Dade, Monroe and Palm Beach counties. The subject is located in Miami -Dade County Florida. Miami -Dade County is located in the southeast portion ofFlorida's east coast and is the southernmost county situated on Florida's mainland. Miami is the county seat of Miami -Dade County' which includes many other incorporated areas such as Miami Beach, Key Biscayne, Coral Gables, South Miami' Pinecrest, Aventura'Hialeah and Homestead. Miami -Dade County boasts an excellent geographic location, allowing it to serve as a gateway to the Caribbean and Latin America. Atourist destination in itself, it is also within a day'u drive to some of Florida's major tourist destination cities. jOSEPW J. BL&KE AND ASSOCIATES, INC. REAL ESTATE VALUATION A#0cONSUUIW8 12 US Sailing Center 17.297-02 AREA ANALYSIS Development and growth in Miami -Dade County are often attributed to the climate, which draws the northern United States tourist trade during the winter months. Miami -Dade County is a recognized banking and finance center, with over 120 financial institutions featuring a growing community of international banks serving Latin America. This international activity has emerged due to the more than 150 multi- national firms that have established their offices in Miami -Dade in order to direct their Latin American, Caribbean and in some cases, worldwide operations. The growth in business relations between Latin America and Miami -Dade County has been accompanied by ongoing growth in tourism from Latin America. Latin American tourists who enjoy shopping in the United States represent a major demand segment in Miami -Dade County's lodging and retail markets. The concurrency provision in the 1985 Growth Management Act requires that all water, sewer, roads, schools, parks and storm water facilities necessary to support existing improvements be in place before new construction is permitted. Thus, if a location is deficient in one or more categories, the affected infrastructure component must be expanded to support any new construction. A developer may choose to provide the various facilities and/or services necessary to support their project. However, in some cases the expense associated with offsite improvements may render a project economically unfeasible. Transportation Miami International Airport is the largest gateway between the United States and Latin America, and is one of the largest airline hubs in the United States, owing to its proximity to tourist attractions, local economic growth, large local Latin American and European populations, and strategic location to handle connecting traffic between North America, Latin America, and Europe. The Port of Miami is a leader in the maritime industry and home to nearly a dozen of the world's most distinguished cruise lines. The port offers more cargo sailings to more destinations in the Western hemisphere than any other port, and offers access to virtually every port in the world. Metrorail is a 21-mile rapid transit system on an elevated railway providing access to Downtown Miami from portions of both south and north Miami -Dade County. It connects with Metromover, a 30-station, five -mile system, that loops through the center of Downtown Miami's CBD. Metrobus provides the feeder system to Metrorail and bus service to all other parts of Miami -Dade County. A network of 5,640 miles of roadway serves Miami -Dade County, of which 1-95, 1-75, Florida's Turnpike, and the Palmetto Expressway (SR-826) are the most utilized north/south highways, while SR-112, SR-826 and SR-836 are the most utilized east/west expressways. US-1 and SR-AIA are also components of this network. Other primary thoroughfares include 1-395 (east/west), 1-195 (east/west), SR-9, SR-94, SR-874, US-27, US-41 and US-441. Education Miami -Dade County is served by more than 900 public and private secondary and elementary schools. Seven colleges and universities are located in the county. Miami -Dade College currently offers more than 175 programs and 1,500 courses, with enrollment of over 160,000 students. The University of Miami in Coral Gables has more than 15,000 degree -seeking students and offers 150 undergraduate and 192 graduate degree programs. Florida International University, with two campuses, 36,000 students and more than 800 full-time faculty, received the nation's fifth largest philanthropic gift in the history of public higher education —the Wolfsonian Museum on Miami Beach, with 70,000 artifacts worth an estimated $75 million. It was donated to the college in 1997 and features a wide array of objects ranging from high art to pop culture. Four-year degree programs are also available at Barry University, St. Thomas University, Florida Memorial College and Miami Christian College. JOSEPH J. H .AKE AN O ASSOCIATES, INC. REAL ESTATE y la A ION tiSULTIN3 13 US Sailing Center 17-297-02 AREA ANALYSIS Tourism/Recreation Known mainly for its trendy nightclubs and oceanfront resorts, Miami -Dade County is also a recognized center for the fine arts and the performing arts, offering an array of enriching cultural activities. These include the Miami Art Museum, Museum of Contemporary Art, Miami Art Central, Wolfsonian-FIU, and the Lowe Art Museum, which are filled with collections and exhibitions from all parts of the world. Broadway plays, the Repertory Theater, the Philharmonic, the Opera Guild, and a large number of historical attractions and exhibits are also favorites. Every year, numerous art festivals make their homes in Miami, including the world-renowned Coconut Grove Arts Festival and Art Basel. The Miami Beach Symphony Orchestra and the Greater Miami Opera Association both offer top-notch performances throughout the year. In addition, the Coconut Grove Playhouse, the Actor's Playhouse and the Gusman Center features a variety of plays and dance pieces from local, regional and national troupes. Medical According to the Greater Miami Chamber of Commerce, Miami -Dade County boasts two major medical networks: the Jackson Health System and Baptist Health South Florida. Jackson Health System, the largest group of medical services in the Southeastern United States, is assembled in a medical complex just west of Downtown Miami. At its hub is the University of Miami School of Medicine/Jackson Memorial Medical Center, ranked in the top 10 of more than 8,000 hospitals in the nation and situated in the city limits of Miami. In Miami -Dade County alone, there are more than 29,000 health care professionals and 28 hospitals. The extensive network of community hospitals includes: Mount Sinai Medical Center, Columbia Cedars Medical Center, Hialeah Hospital, Baptist Hospital, Jackson Memorial Hospital, Mercy Hospital and Miami Children's Hospital. AREA DEMOGRAPHIC AND INCOME DATA The following data was obtained from MOODY'S ANALYTICS Precis® U.S. Metro South, November 2016. The full report is located in the Addenda, and contains additional information about the social, economic, governmental and environmental forces that influence value. Gross metro product [C$8) %change Total employment (ths) % change Unemployment rate (%) Personal income growth (%) Median household income ($ ths} Population (ths) % change Single-family permits Multifa Fully permits FHFA house price (1995Q1=100) Moody's Source for Charts 2010 2011 2012 2013 2014 2015 2016 2017 104.1 104.4 106.3 198.4 111.1 113.8 115.9 121.3 (0.5306) 0.24% 1.85% 1.969E 2.47% 2.42% 1.91% 4.63% 985.1 1,007.3 1,031.3 1,056.7 1,089,4 1,123,4 1,142.2 1,166.4 (0.35%) 2.25% 2.38% 2.46% 3.10% 3.12% 1.68% 2.12% 11.1051 9 40% 8.35% 7.60% 6.94% 6.14% 5.31% 4.55% 8.88% 4.59% 3.17% (0.42%) 6.78% 6.22% 4.87% 5.96% 42.0 41.7 42.0 42.4 42.9 43.8 15.3 47.0 2,508.2 2,580.1 2,611.2 2,641.9 2,668.9 2,693.1 2,728.7 2,767.0 1.8051 2.87% 1.21% 1.18% 1.02% 0.91% 1.32% 1.41% 941.0 962.0 1,819.0 2,266.0 2,077.0 2,800.0 3,344.6 5,557.1 2,262.0 1,656.0 3,250.0 8,050.0 5,6540 9,817.0 5,671.5 7,408.9 $195.70 518297 518595 5207.70 $233.55 $25742 5282.04 $296.31 Source: MOODY'SANALYTiCS Precise U.S. Metro South, November 2016 2018 127.0 4.71% 1,189.8 2.02% 3.87% 7.30% 49.2 2,806.8 1.44% 7,033.1 7,924.9 $300.32 2019 132.3 4.14% 1,212.8 1.93% 3.46% 7.15% 51.3 2,847.1 1.43% 7,630.5 7,079.7 $292,55 1,228.8 1.32% 3.36% 5.99% 53.0 2,887.4 1.42% 7,182.7 6,000.2 $ 284.74 2020 2021 136.8 141.4 3.43% 3.39% 1,235.3 0.53% 3.71% 539% 54.6 2.926-5 1.35% 6,978.3 6,330.0 $281.83 JOSEPH J. B PEAL ESTATE VAL A AT E AND ASSOCIATES, INC N ANt' COI S81TINGi 14 US sailing Center 17-297-02 1,400 1,200 1,000 800 600 400 200 0 AREA ANALYSIS Total Employment (ths) % Change in Employment Nr titi titi ti� NyZ. ti`' ti° tit ti� Nr ° ti° 1r �° y° L° A,. �° 'La ,L ti n° 12.00% 10.00% -_ 8.00% - 6.00% 4.00% 2.00% $60 $50 $40 $30 $20 $10 $0 Unemployment Rate Median Household Income (ths) LO G 'L° 'L° LO � LO 'V 'I, La 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0,50% (0.50%) (1.00%) y0 Nr yL D �' Yy` ti� ,y'i yb N,r La L> ° ° Lo ° `1, tia y° ,ya La tia 1., ° 10.00% -. 8.00% 6.00% 4.00% 2.00% $350 $300 $250 $200 $150 $100 $50 $0 Personal Income Growth Ya yv yL ti'L ya tih �° '\ Yob ti� ti0 . Existing Home Price (ths) Nr Nty �1 1� �D tih �(° Y1 tiR) N, ya `1, JOSEPH Ja DLAKE AND ASSOCIATES, INC REAL ESTATE YAIUT H AND CONSULT NG 15 US Sailing Center 17-297-02 2,750 2,700 2,650 2,600 2,550 2,500 2,450 2,400 Historic Population Growth (ths) a'sa yati� ya,L ©tip L9�� 10,000 _m_.._.. 8,000 - 6,000 4-- 4,000 2,000 -a-- - 0 Single -Family Permits 10 by 'sr ti� tiD by tia 1 ti� ti� o 1� ti0 0 '1, 1, 'ya �O �O �O "V La LQ ,1, 2,950 2,900 2,850 2,800 2,750 2,700 2,650 2,600 12,000 10,000 8,000 6,000 4,000 2,000 0 AREA ANALYSIS Projected Population Growth (ths) '\ a Doti r\eCLI'Yryoti Kati Multi -Family Permits '\, , , , 1t v 10 }o ti0 o La o LO CONCLUSION An analysis of South Florida and more specifically, Miami -Dade County, demonstrates that the area has historically been on a path of growth. Previous population growth is primarily due to in -migration, with the majority of the migrants coming from within the state, as well as New York, Georgia and international sources. With the recession receding, the values of the County's office, industrial, commercial and residential properties have recovered substantially, with decreased vacancies appearing in office complexes, industrial neighborhoods, and shopping centers, and homes increasing in value. Despite the effects of the recent recession, many of the factors that led to Miami -Dade County's historical success remain in place. Therefore, the county will likely continue to grow. Jos PH J. LAKE AN STATE V LL,1iil i AND C A S S iI L' IVIES, 1 N C 16 usSailing Center 17-297-02 `�eranoo� £cnun/�r � NEIGHBORHOOD MAP vn, � .___�_,__,__,��� & Gardens ~ -' � NEIGHBORHOOD ANALYSIS � y INTRODUCTION A property is an integral part ofits surroundings and must not be treated as an entity separate and apart from its surroundings. The value of a property is not found exclusively in its physical characteristics; physical, economic, political and sociological forces in the area interact togive value toa property. In order to determine the degree of influence extended by these forces on a property, their past and probable future trends are analyzed. Therefore, in order to form an opinion mfthe value of property, an analysis is made of the area in which the property under study is found. This area is referred to as a neighborhood. JOSEPH J. BLAKE AND ASSOCIATES, INC, MEALI]T8Tt VALUATION AH0CQNS8L7/WG 17 US Sailing Center 17-297-02 NEIGHBORHOOD ANALYSIS A neighborhood can be a portion of a city, a community or an entire town. It is usually an area which exhibits a fairly high degree of homogeneity as to use, tenancy and certain other characteristics. Homogeneity is a state of uniform structure or composition throughout. Therefore, in real estate terminology, a homogeneous neighborhood is one in which the property types and uses are similar. A neighborhood is more or less a unified area with somewhat definite boundaries. As a neighborhood's boundaries serve to limit the physical area that exerts germane influences on a property's value, the boundaries may indeed run concurrent with variations in prevailing land uses or physical characteristics. LOCATION The subject is located on the south or east side of South Bayshore Drive, between SW 22nd Avenue and SW 27th Avenue, in the Coconut Grove area of the City of Miami. The subject is situated within the Coconut Grove area of Miami, Miami -Dade County, Florida. We defined the neighborhood based on the prevailing land uses in the area. Generally, the subject's neighborhood is bordered by U5-1 to the north, Le Jeune Road to the west and Biscayne Bay to the south and east, The neighborhood is easily accessible from all parts of Miami -Dade County through an extensive highway network. US-1, located several blocks north of the subject, is a major north/south thoroughfare through the area and connects with Interstate-95, approximately two miles east of the subject and the Palmetto Expressway approximately six miles west of the subject. ACCESSIBILITY The subject site's primary frontage is along the south or east side of South Bayshore Drive. However, the subject does not contain direct frontage along this roadway but is situated one parcel to the east, with an access easement provided to the site. The site also has water frontage along Biscayne Bay. The subject site has access from South Bayshore Drive. South Bayshore Drive is the primary thoroughfare through Coconut Grove. DEVELOPMENT Coconut Grove is one of the oldest, if not the oldest permanent settlement in Miami -Dade, getting its start in the late 1800's before being annexed by the City of Miami in 1925. Coconut Grove is a neighborhood within the City of Miami that is primarily an upper-class residential area that is known for its festivals, as well as its art galleries, nightclubs, sports bars, shopping, and wide variety of restaurants. The Coconut Grove Arts Festival is a nationally recognized, juried art show that attracts internationally known artists. Other amenities in the area include: the Wyndham Grand Bay Hotel (a four - star hotel), Cocowalk (a 143,000± SF shopping facility), Mayfair (a hotel and 204,000± SF of shopping), the Coconut Grove Convention Center, the Coconut Grove Playhouse, and the Dinner Key Marina. The 250-room Ritz Carlton Hotel located at SW 27th Avenue, Tigertail Avenue and Cornilia Drive is one of the newest developments within the neighborhood. This five-star hotel occupies 11 floors of a 20-story building, with the top floors containing luxury condominiums. Grovenor House, located at 2627 South Bayshore Drive, is another new project within the neighborhood. This is a 32-story, luxury high-rise condominium building that was built by the developer of the Santa Maria and Bristol Tower. This project was completed in 2006. The overall quality and condition of the improvements are considered to be average to good. The subject is surrounded by boating and marine related developments including the Coconut Grove Sailing Club to the south, Coral Reef and Biscayne Bay yacht clubs, Grove Harbor Marina, Grove Key Marina (dry storage only) and Prime Marina, which is a part of the Monty's Restaurant and office/retail complex. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALOAT ati AND CONSULTING 18 US Sailing Center 17-297-02 NEIGHBORHOOD ANALYSIS Grove Harbor Marina has more than 50 boat slips for vessels up to 150 feet. The dry storage facility has storage for 260 vessels up to 55 feet in length. There is also a full -service boat yard and maintenance facility. One of the original airplane hangars on the property has been converted into a Fresh Market food store that provisions many of the boats in the surrounding marinas. DEMOGRAPHICS The Site To Do Business is a service that provides demographic data, including historical, current and forecasted population estimates for a specified region. Patterns of development, density and migration are reflected in the population estimates. A survey of the subject area's population and growth rate is summarized in the following charts, followed by a map of the surveyed area. Demographics 2017 2022 Summary 1 mile 2 mile 3 mile 1 mile 2 mile 3 mile Population 18,055 69,488 181,038 19,141 73,457 191,147 Households 8,307 27,879 73,836 8,756 29,363 77,739 Families 4,345 16,723 43,110 4,576 17,595 45,307 Average Household Size 2.17 2.48 2.42 2.18 2.49 2.43 Owner occupied Housing Units 4,107 12,019 25,643 4,314 12,566 26,754 Renter Occupied Housing Units 4,200 15,860 48,194 4,442 16,797 50,985 Median Age 42.0 42.2 42.1 42.9 42.9 43.1 Population by Age 1 mile 2 mile 3 mile 1 mile 2 mile 3 mile 0-4 5.1% 5.0% 5.0% 5.0% 5.0% 5.0% 5 - 9 4.4% 4.8% 5.0% 4.7% 4.7% 4.8% 10 -14 4.0% 4.7% 4.8% 4.4% 4.9% 5.0% 15 - 19 3.7% 4.4% 4.7% 3.8% 4.6% 4.9% 20 - 24 5.4% 5.9% 5.9% 4.8% 5.3% 5.4% 25 - 34 16.5% 14.8% 14.4% 15.1% 14.3% 13.4% 35 - 44 15.3% 14.2% 14.1% 15.3% 14.1% 14.0% 45 - 54 13.4% 14.0% 14.0% 13.1% 13.1% 13.2% 55 - 64 13.3% 12.7% 12.6% 12.4% 13.0% 13.0% 65 - 74 10.8% 10.2% 10.2% 12.0% 11.2% 11.1% 75 - 84 5.6% 6.2% 6.3% 6.7% 6.9% 7.1% 85+ 2.6% 3.0% 3.0% 2.7% 3.0% 3.0% Householdsbylncome 1 mile 2 mile 3 mile 1 mile 2 mile 3 mile <$15,000 10.90% 14.20% 20.00% 9.50% 12.70% 18.50% $15,000 - $24,999 8.60% 11.60% 13.70% 7.30% 9.90% 12.20% $25,000 - $34,999 9.10% 10,30% 11.30% 7.40% 8.60% 9.80% $35,000 - $49,999 13.40% 13.50% 12,50% 11.10% 11.40% 11.00% $50,000 - $74,999 15.10% 16.30% 13.80% 15.00% 16.50% 14.20% $75,000 - $99,999 9.50% 9.20% 7.50% 11,20% 11.40% 9.50% $100,000 - $149,999 12.60% 11,40% 9.40% 14.60% 13.80% 11.30% $150,000 - $199,999 6.80% 5.60% 4.60% 7.80% 6.50% 5.30% $200,000+ 13.90% 7.90% 7.20% 16.10% 9.20% 8.10% Median Household Income $60,838 $50,385 $39,993 $74,356 $59,009 $47,394 Average Household income $105,647 $82,685 $74,971 $122,882 $96,533 $86,293 Per Capita Income $48,648 $33,315 $30,804 $56 238 $38,707 $35,314 Source: Site To Do Business JOSEPH REAL EMT LAKE AND ASSOCIATES, INC, ALUATION AND CONSULTI U 19 US Sailing Center 17-297-02 NEIGHBORHOOD ANALYSIS Trends: 2017 - 2022 Annual Rate 1 mile Radius Area State National Population 1,18% 1.36% 0.83% Households 1.06% 1.30% 0.79% Families 1.04% 1,25% 0.71% Owner HHs 0.99% 1.19% 0.72% Median Household Income 4.09% 2.13% 2.12% 2 mile Radius Area State National Population 1.12% 1.36% 0.83% Households 1.04% 1.30% 0.79% Families 1.02% 1.25% 0.71% Owner HHs 0.89% 1.19% 0.72% Median Household Income 3.21% 2.13% 2.12% 3 mile Radius Population Households Families Owner HHs Median Household ncome Area State National 1.09% 1.36% 0.83% 1.04% 1.30% 0.79% 1.00% 1.25% 0.71% 0.85% 1.19% 0.72% 3.45% 2.13% 2.12% Source: Site To Do Business Source: Site To Do Business LIFE CYCLE A neighborhood's life cycle usually consists of four stages: J SEPH J. CAKE AND ASSDNAILS, INC N STATE VALUATION AND CO SUITING. 20 US Sailing Center 17-297-02 NEIGHBORHOOD ANALYSIS • Growth - a period during which the neighborhood gains public favor and acceptance • Stability - a period of equilibrium without marked gains or losses • Decline - a period of diminishing demand • Revitalization - a period of renewal, redevelopment, modernization, and increasing demand Source: The Appraisal of Real Estate, 14th Edition The neighborhood is currently in its stability stage, a period known as equilibrium without marked gains or losses. This is evidenced by the lack of land available for new development, as the subject's neighborhood is approximately 98% developed with very little vacant land available. NEIGHBORHOOD ANALYSIS CONCLUSION We researched germane influences that could possibly affect the value of the property in the area. This research did not produce any factors that could be negative or undesirable. In fact, just the opposite was found. The subject and the surrounding neighborhood appear to be operating in a stabilized environment with no rapid changes currently taking place. Several factors have combined for the success of the district, of which accessibility and location have had the most positive influence. Finally, we are of the opinion that the neighborhood should experience continued stability building upon the solid foundation it has established as a commercial and residential district. JOSEP1 J, BLAKE AND ASSOCIATES, INC REAL ESUTE VALUATION NO CONSULTING 21 US Sailing Center 17-297-02 DESCRIPTION OF THE SITE Land Summary Gross Land Gross Land Parcel ID/Tax ID Area (Acres) Area (SF) Topography Type Shape Type 01-4122-001-1591 1.76 76,850 Level and at street grade Irregular in shape SITE DETAILS ADDRESS 2476 S. Bayshore Drive, Miami, Miami -Dade County, FL 33133 PARCEL NUMBER 01-4122-001-1591 LEGAL DESCRIPTION Addenda LOCATION The subject is located on the south or east side of South Bayshore Drive, between SW 22nd Avenue and SW 27th Avenue, in the Coconut Grove area of the City of Miami. LOCATION TYPE Urban MAP LATITUDE/LONGITUDE 25.7329555/-80.230644 CENSUS TRACT 12-086-0068.01 SIZE 76,850 SF or 1.76 acres USABLE LAND 76,850 SF or 1.76 acres ZONING The parcel is zoned "CS," under the jurisdiction of the City of Miami. PRIMARY FRONTAGE STREET S. Bayshore Drive PRIMARY FRONTAGE COMMENTS The subject site's primary frontage is along the south or east side of South Bayshore Drive. However, the subject does not contain direct frontage along this roadway but is situated one parcel to the east, with an access easement provided to the site. ADJACENT PROPERTIES - NORTH City Park ADJACENT PROPERTIES - SOUTH Coral Reef Yacht Club ADJACENT PROPERTIES - WEST City Parking & 5. Bayshore Drive ADJACENT PROPERTIES - EAST Biscayne Bay WATER FRONTAGE Biscayne Bay EFFECTIVE WATER FRONTAGE 198' VIEW Average ACCESS The subject site has access from South Bayshore Drive. INGRESS/EGRESS The subject site has ingress/egress from one point on South Bayshore Drive. POINTS OF INGRESS/EGRESS 1 SITE VISIBILITY Average STREET LIGHTING Public STREET CONDITION Paved with asphalt SIDEWALKS None LANDSCAPING The subject's landscaping is typical for the area. TOPOGRAPHY The subject's topography is level and at street grade. SHAPE The subject site is irregular in shape. REQUIRED SITE WORK Typical dear and grade SOIL CONDITIONS AND DRAINAGE The soil conditions observed at the subject appear to be typical of the region and adequate to support development. FLOOD ZONE The site lies within Zone VE. This information was obtained from the National Flood Insurance Rate Map Number 12086 C0476L dated September 11, 2009. JOS REAL PH BLAKE AND ASSOCIATES; INC. STATE VAiiIATiAN ANO CO SET NO 22 US Sailing Center 17-297-02 DESCRIPTION OF THE SITE FLOOD ZONE DEFINITION Coastal areas with a 1% or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones. In communities that participate in the NFIP, mandatory flood insurance purchase requirements apply to this zone. OTHER HAZARDS None noted ENCUMBRANCES AND EASEMENTS There are no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions. ENVIRONMENTAL HAZARDS There are no known adverse environmental conditions on the subject's site. Please reference Limiting Conditions and Assumptions. WETLANDS AND WATERSHEDS No wetlands were observed during our site inspection. ADEQUACY OF UTILITIES The subject's utilities are typical and adequate for the market area. PUBLIC ELECTRICITY FPL WATER SUPPLY TYPE City water SEWER TYPE City sewer POLICE AND FIRE PROTECTION City of Miami WATER/PORT ACCESS Biscayne Bay CONCLUSION The subject site is considered well -suited to functionally support its current use. AERIAL PHOTOGRAPH 1. BLAKE AND ASSOCIATES. INC REAL ESTATE VALUATION AND CONSOLTU 6 23 US Sailing Center 17-297-02 Building Name/ID Year Built USSailing Club 2002 DESCRIPTION OF THE IMPROVEMENTS Building Summary Number of Gross Building Floors/Stories Area 2 7,786 Net Rentable Area 5,093 Current Occupancy Percent Office 100.00% 25.72% GENERAL DETAILS DESCRIPTION Briefly described, the subject consists of a property utilized as a US Olympic sailboat training center and on -site sailboat storage. There is a two-story CBS office/storage building with a gross building area of 7,786 SF and a net enclosed area of 5,093 SF, constructed in 2002. The site contains only upland areas and most of it is utilized for boat storage. The US Sailing Center is a privately -operated, non-profit, facility under an existing lease from the City of Miami. This tenant has been at the subject property since 1986 and is one of ten official US Olympic training sites in the United States. MARSHALL VALUATION SERVICE CLASS MARSHALL VALUATION SERVICE QUALITY BUILDING CLASS CONDITION YEAR BUILT EFFECTIVE AGE TOTAL ECONOMIC LIFE REMAINING ECONOMIC LIFE CONSTRUCTION TYPE CURRENT OCCUPANCY STABILIZED OCCUPANCY LAND TO BUILDING RATIO FLOOR AREA RATIO PARKING TYPE CONDITION OF PARKING LOT PARKING SPACES PARKING RATIO PARKING DESCRIPTION The second floor of the improvements consists of 1,310 SF of office space and 1,199 SF of restroom/shower space. The first floor consists of 2,584 SF of storage bays with six roll -up doors. The remaining space consists of central breezeways, elevator, stairs, and mechanical/equipment rooms. C Average C Average 2002 15 45 30 Concrete Block with Stucco 100% 100% 15.09 0.07 Paved open surface parking Average 22 4.32 spaces per 1,000 SF The subject's parking is located on the north/west side of the improvements. TENANT TYPE Single -Tenant DEFERRED MAINTENANCE From an inspection of the property, no visible items of deferred maintenance were noted. DESIGN AND FUNCTIONAL UTILITY The overall layout of the improvements on the parcel is considered to be average. NUMBER OF BUILDINGS 1 JOSEPN 1. SLAKE AND ASSOCIATES; ANC REAL. ESTATE VALUATION AND CONSiiLTINa 24 US Sailing Center 17-297-02 DESCRIPTION OF THE IMPROVEMENTS BUILDING DETAILS BUILDING NAME US Sailing Club BUILDING DESCRIPTION Office/Storage BUILDING CLASS C CONDITION Average YEAR BUILT 2002 EFFECTIVE AGE 15 TOTAL ECONOMIC LIFE 45 REMAINING ECONOMIC LIFE 30 GROSS BUILDING AREA 7,786 NET RENTABLE AREA 5,093 LAND TO BUILDING RATIO 15.09 FLOOR AREA RATIO 0,07 BUILDING EFFICIENCY RATIO 65.4% CURRENT OCCUPANCY 100% STABILIZED OCCUPANCY 100% TENANT TYPE Single -Tenant APPEAL AND APPEARANCE Average DESIGN AND FUNCTIONAL UTILITY The overall layout of the improvements on the parcel is considered to be average. DEFERRED MAINTENANCE From an inspection of the property, no visible items of deferred maintenance were noted. CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE C CLASS MARSHALL VALUATION SERVICE Average QUALITY CONSTRUCTION TYPE Concrete Block with Stucco NUMBER OF STORIES 2 FOUNDATION Poured concrete slab EXTERIOR WALLS/FINISH Stucco WINDOWS Aluminum -framed insulated glass ROOF TYPE flat and arched ROOF COVER Tar and Gravel and metal FLOOR COVERING Carpet, Tile, Polished Concrete INTERIOR WALLS Painted drywall CEILING COVER Drywall INTERIOR LIGHTING Fluorescent fixtures RESTROOMS There are separate men's and women's restrooms. The restrooms have tiled floors, tiled or painted walls and contain fixtures that are commercial quality. HVAC Package Units UTILITIES All necessary utilities are available to the subject improvements, including public water & sewer, electricity, and telephone. ELECTRICAL Assumed to be in compliance with prevailing code requirements. PLUMBING Assumed to be in compliance with prevailing code requirements. FIRE SPRINKLER No JOSEP 1 1. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANG CiINSULTING 25 US Sailing Center 17-297-02 DESCRIPTION OF THE IMPROVEMENTS NUMBER OF ELEVATORS 1 ELEVATOR DESCRIPTION One small passenger elevator DOCK HIGH No OVERHEAD BAY DOORS 6 BAY DOOR RATIO 11.78 per 10,000 SF % OFFICE 25.72% % UNDER AC 25.72% PARKING DETAILS PARKING TYPE Paved open surface parking CONDITION OF PARKING LOT Average PARKING SPACES 22 PARKING RATIO 4.32 spaces per 1,000 SF PARKING DESCRIPTION The subject's parking is located on the north/west side of the improvements. SUMMARY COMMENTS The subject is strictly utilized for the promotion of sailboats, specifically for the training of Olympic racers and for introducing the community to sailing. No motor boats are stored on the property. Since all storage consists of ground pods, the capacity depends on the sizes of the sailboats being stored at the time. Year-round capacity is typically 100 sailboats, except for short- term regattas and other events, where up to 180 12' to 13' sailboats are made to fit on the site. BSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATIQ AfiI) CONSULTA 26 US Sailing Center 17-297-02 ZONING The subject is zoned "CS," Civic Space, under the jurisdiction of the City of Miami. The civic zone consists of public use space and facilities that may contrast in use to their surroundings while reflecting adjacent setbacks and landscape. ZONE DETAILS ZONING AUTHORITY City of Miami ZONING CODE CS ZONING DESCRIPTION Civic Space PERMITTED USES Marinas, by right. Uses permitted by warrant include: food service establishments; open air retail; community, recreational, and religious facilities; infrastructure and utilities. Uses permitted by exception include: general commercial; marine - related commercial establishments; childcare and learning centers. Based on a review of the subject in relation to the CS zoning district, it appears the subject is a legal and conforming use of the site. However, we are not experts in determining if a property is fully in compliance with all aspects of the zoning code. We suggest interested parties obtain a letter of zoning compliance from the City of Miami to determine if the subject is zoning compliant. JDSEP I J. BLAKE AND ASSDC ATES, INC REAL ESTATE VALUATAN it UJ I;UNSULTIN0 27 US Sailing Center 17-297-02 TAXES The subject is assessed by the Miami -Dade County property appraiser's office, and is taxed by the City of Miami and Miami -Dade County. According to public records, it appears there are no unpaid taxes as of the date of this report. The following table summarizes the subject's assessment and taxes: Parcel ID Assessment Year Tax Authority Land Value Tax Authority Improvements Value Tax Authority Other Value Total Assessed Value Total Tax Rate Total Taxes Since the subject is owned by the City of Miami and is leased property. 01-4122-001-1591 2016 $3,074,000 $10,000 $0 $3,084,000 $21.8256 $0 to a non-profit entity, no taxes are due on the JOSEPH J, Rill. ESTATE VA LAKE AND ASSOCIATES, INC, UATIRN Nil C©NSULTlNG 28 US Sailing Center 17-297-02 HIGHEST AND BEST USE In determining the highest and best use of the property, consideration was given to the economic, legal, and social factors that motivate investors to develop, own, buy and sell, manage, and lease real estate. In forming an opinion of the highest and best use of a vacant parcel of land, there are essentially four stages of analysis: • Physically Possible Use: What uses of the site in question are physically passible? • Legally Permissible Use: What uses are permitted by zoning and deed restrictions on the site in question? • Financially Feasible Use: Which possible and permissible uses will produce a gross return to the owner of the site? • Maximally Productive: Among the feasible uses, which will produce the highest return or highest present worth of the site in question? The following tests must be met in estimating the highest and best use of a vacant parcel: the potential use must be physically possible and legally permissible, there must be a profitable demand for such a use, and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject's site and are discussed as follows: PHYSICALLY POSSIBLE The site is on S. 8ayshore Drive, in Miami, FL. The underlying site consists of 76,850 SF or 1.76 acres. The subject's topography is level and at street grade. As noted in the Assumptions and Limiting Conditions, we know of no environmental or engineering study that has been conducted on the site to determine subsoil conditions. Upon analysis of all physical aspects, space, size, shape, terrain, location and others the most supportable highest and best uses of the site, as it relates to physical properties, are boat -related uses similar to surrounding properties on Biscayne Bay. LEGALLY PERMISSIBLE The subject's site is zoned "CS," Civic Space, under the jurisdiction of the City of Miami, FL. Reference is made to the Zoning section of this report. Permitted uses include marinas, by right. Uses permitted by warrant include: food service establishments; open air retail; community, recreational, and religious facilities; infrastructure and utilities. Uses permitted by exception include: general commercial; marine - related commercial establishments; childcare and learning centers. Upon analysis of the permitted uses, the most supportable highest and best uses of the site, as it relates to what is legally permissible, are boat -related uses similar to surrounding properties on Biscayne Bay. FINANCIALLY FEASIBLE Analysis for financially feasible uses for the site, as if vacant, involves consideration of several criteria. Unlike the physically possible and legally permissible aspects of the highest and best use analysis, many external economic factors serve to prove or disprove financial feasibility. The cost of acquisition, sources of capital, forecast of potential revenue/expenses, reversionary price forecast, property tax implications and measures of risk and yield are all determinant to this analysis. The above financial measures serve to eliminate the uses that would not provide a reasonable return to the land based on an investor's expectations. The cost of land and its development limits the highest and best use of the site, generally to only those uses that are financially feasible. JOSEPD J REAL EMTE BLAKE AND ASSOCIATES, INC, ALOATION AND CONSULTING 29 US Sailing Center 17-297-02 HIGHEST AND BEST USE We conclude that financially feasible uses of the site that are physically possible and legally permissible are to maximize the utility of the site in relation to the zoning. MAXIMALLY PRODUCTIVE We considered those uses, as aforementioned, to meet the physically possible, legally permissible and financially feasible tenets of the highest and best use definition. The final criteria for full compliance within the highest and best use of the subject, as vacant, is that of a maximally productive use. We conclude the maximally productive use of the site is to maximize the utility of the site in relation to the zoning. HIGHEST AND BEST USE, AS IF VACANT A final reconciliation of the analysis leads to the conclusion that the highest and best use of the site, as if vacant, is boat -related uses similar to surrounding properties on Biscayne Bay. HIGHEST AND BEST USE, AS IMPROVED We must also determine the highest and best use of the subject, as improved, by analyzing occupancy levels of various surrounding improvements, as well as the general needs within the area. Based on the current conditions of the subject's market, there appears to be no alternative use that would justify the removal or substantial alteration of the existing improvements. As such, the highest and best use of the subject, as improved, is the current improvements. JOSEP 1 REAL ESTAT LAKE AND ASS DCIATES, INC AL.DDATION AND CONSULTlEi 30 US Sailing Center 17-297-02 MARKET ANALYSIS MARINA MARKET ANALYSIS The purpose of this discussion is to provide an overview of the economic vitality of the recreational marina marketplace influencing the subject. The industry will be briefly considered on a national basis before detailing the subject's local, competitive market. In the course of the research of the recreational marina marketplace, we interviewed a variety of industry experts, including real estate professionals, marina developers, owners of marinas and local officials. We also consulted with the industry's trade associates and trade publications, including the International Marina Institute, the National Marine Manufacturers Association, and the Boating Industry Magazine. Interviews were conducted and factual material was gathered to ascertain historical, current and projected market conditions. Data includes industry revenue figures, slip occupancy and rental rates, availability of financing and environmental concerns, Industry Snapshot The U.S. marina industry includes about 3,800 establishments (single -location companies and units of multi - location companies) with combined annual revenue of about $4 billion. Demand is driven by ownership rates for power boats and sailboats. The profitability of an individual marina depends on location and good marketing. Large companies have the resources to advertise and negotiate better prices with suppliers, builders, and maintenance firms. Small companies can compete by offering customized services or preferred locations. The US industry is highly fragmented: the top 50 companies account for about 15% of industry revenue. More than 90% of US marina operators have only one location. According to FirstResearch the primary driver of revenue at nearly every marina is the slip rentals. The main business of marinas is renting slips (dockside spaces) and moorings (anchored buoys). Marinas also sell fuel and other items and provide maintenance services. About 40% of industry revenue comes from slip and storage fees, 15% from maintenance, and 10% from fuel sales. Other sources of revenue include sales of food (5%) and marine equipment (5%). Revenue by Product - US Census Bureau 0 Source: FirstResearch JOSEPH J. HKE AND ASSOCIATES, INC REAL ESTATE VAI.IiATION AND CONSULTING 31 US Sailing Center 17-297-02 MARKET ANALYSIS A typical marina has 50 to 150 slips, but some very large marinas, such as Dana Point Marina in Orange County, California, can have more than 1,000 slips. The major operating activities of a marina are similar to those of a hotel, and revolve around managing rentals, managing personnel, maintaining the property, and supplying services. Occupancy rates and rental rates are a constant source of attention for managers. Many marinas use specialized computer programs to manage reservations and billings, Marinas increasingly use websites as marketing and booking tools. According to the 2014 Recreational Boating Statistical Abstract, published by the National Marine Manufacturers Association in 2015, recreational boating continues to be an important factor to the U.S. economy, contributing $35.4 billion in direct sales of products and services in 2014, a 3.5% decrease from 2013. • Of the 242.5 million adults living in the United States in 2014, 35.7% or 87.3 million people participated in recreational boating at least once during the year, relatively unchanged from 2013. Since 2011, boating participation has ranged from 34.8% to 37.8% of the population. • Annual retail sales of new boats, engines & marine accessories in the U.S. totaled $16.4 billion in 2014. • New boat sales were up 0.5% to 534,500 units in 2014. • New traditional powerboat sales increased 6.4% to 171,500 units in 2014, • New sailboats sold at retail increased 33.9% to 7,500 units. • New personal watercraft sales increased 21.6% to 47,900 units. • New boat imports totaled $2.3 billion, up 7.2% in 2014; units were up 17.7% to 794,174. • New boat exports totaled $2.1 billion, down 0.6% in 2014; units were down 6.7% to 208,532. • Total engine sales, including topline, outboard, inboard and sterndrive engines, were 243,200 units, up 3.4% in 2014. • Outboard engines sales were up 4.5% to 218,400 units; retail sales reached $2.5 billion, up 8.6%. • Aftermarket accessory sales totaled $5.6 billion in 2014, an increase of 14.7%. • Americans are taking to the water: 35.7% of the U.S. adult population-87.3 million Americans - participated in recreational boating at least once in 2014. • Boats are uniquely made in America: 94.9% of powerboats sold in the U.S. are made in the U.S. • There were an estimated 12 million registered boats in the U.S. in 2014. • 95% of boats on the water (powerboats, personal watercraft, and sailboats) in the U.S. are Tess than 26 feet. • An estimated 940,500 pre -owned boats (powerboats, personal watercraft, and sailboats) were sold in 2014. Boating Demographics and Participation Boating is primarily a middle-class lifestyle as 71.5% of American boat owners have a household income less than $100,000. Of the 242.5 million adults living in the United States in 2014, 35.7% or 87.3 million people participated in recreational boating at least once during the year, relatively unchanged from 2013. Since 2011, boating participation has ranged from 34.8% to 37.8% of the population. 1 SEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSIILTING 32 US Sailing Center 17-297-02 MARKET ANALYSIS OF ADULTS GOING O 18+ WHO TING PILLIONS) WENT BOATING 2 2C0 2C1 2C€72 2003 a04 2 05 2LYi5 2 2X10 2010 2011 2012 2013 2814 67:4 36.5% 67 ..2 X.3 61 9 X.1% fib l 36 2 , 69,6 70.0 351% 7t . 7 X 71.3 E.0 2,16% 61.5 62.1 2P 2% &-c 28.E 63.A 28.8% 579 260% 0_2 26 G% ia8..1 29_ 7.1 3_ 65.9 28 7' 75,0 ,A V. 3.5 r t,';, 87.3 35.7% Source: National Marine Manufacturers Association, Market Statistics Department, 2015 The following chart summarizes the number of adults in the US involved in boating activities: Millions of adut participants '90 '1l1 '92 'I?, `94 ■ % f t, . WHOYClit ENO ADULTS GOING BOAT `87 '9€l '99 'o0 ,U '07 `(18 `09 '10 '11 Source: National Marine Manufacturers Association, Market Statistics Department, 2015 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION APB CONSULTING 33 US Sailing Center 17-297-02 MARKET ANALYSIS Boating Registrations Boat registrations were up 1.65% in 2014, rising to a total of 12.3 million, compared to 12.1 million the previous year. However, the total number of recreational boats in use during 2014 declined 0.6% to 15.8 million. The following charts summarize the number of registered and non -registered boats: REGISTERED/DOCUMENTED NON -REGISTERED 1OTAL YEAR BOATS (MILLIONS1 WAS cMILLIONS) 1989 118 414 45.7 1%0 11.0 5.0 16 0 1991 11.1 5 2 16.3 I992 111 5 ! 163 1993 11.3 49 16.2 1994 11.4 4 8 ta 2 1995 11.7 36 15,4 IW6 121 3.8 12.4 3.8 1998 12 7 3 7 1999 12.8 36 t6 5 12.9 4.0 18,8 2001 13.0 4,0 '17 D 2002 129 4,2 11 2 2002 12,9 4.3 1? 2 2004 12.9 4.5 17 4 2005 13.0 3.8 171 2006' 12.8 4,0 16.2 2007 110 4,0 16..9 21)38. 12.8 3,7 16 5 20912 12,8 3.8 16.6 2010 123 3.7 16.2 201 12.3 3 7 16.0 20', 2 12.2 2.8 16' 0 2014 nt 1/3 3.6 15.8 Source: Nation& Marine Manufacturers Association, Market Statistics Department, 2014 JOSEPH J. BLAKE AND ASSOCIATES, INC, REAL ESTATE VALUATION AND CO SULTANS 34 US Sailing Center 17-297-02 .a weinaai ..cai�..x '91 '93 '35 I7 '99 ' & Y. 7 100 MARKET ANALYSIS t7S.1S Source: National Marine Manufacturers Association, Market Statistics Department, 2014 Sales by State Consumers spent $16,4 billion on new powerboats, outboard engines, boat trailers and aftermarket accessories collectively in 2014, up 12.3% from 2013. Florida again ranked first in total expenditures for new powerboats, outboard engines, trailers and aftermarket accessories. Spending in Florida increased 22.5% in 2014 compared to 2013. JOSEPH Js REAL ESTATE VA AKE AND ASSOCIATES, INC, ATM AND CONSULTING 35 US Sailing Center 17-297-02 MARKET ANALYSIS The distribution of new powerboat, engine, trailer and accessory purchases by state are shown on the following chart: 1E1r CtIVEMAC rr r£ PAtilk r€rc 0 ra 516111255 &Id 24113 T0'FM. TOTAt ! 1I1 U S {MOM mamma 621 614 PA 20 22 14 9)4,11 i,x 1d Stu y.,4 a' sm, 1,2re 514,118,212 3 sh;_:1l1 71 51.1,a64,4),3 x Sr1.1,934 $1 s" . 9 V-11,a s" "45-,2 S1'LD?144 9 at $1,233 51,151,411 5- 2 dad$610MAZI 1,1:MS.N.SA WilS2,612 7.5 VI,3>,::' tom.: +7,7, 42 43 2 ..... T +,1.W=W tg 3 sF w.i ... s?a1,§ 4 42, 2 1 tin 21 la: to 19 24 2467,724744 1158,804.017 1172427.819 2284:926924 5646.774.476 5111.51a.i17 1136,2822M 3543,740027 12W.613 12,318,081, 3 1448.48Z 1S 1127,061,W S158.018108 5334,911,742 1232,21 a 799 5175,4711,.47 573;814.973 3 ' 5178.55614.5 5529,8611469 StS A2t152 1269,561.722 5224,170252 1762.391,729 $601, 481.682 1191.691761 S349.612.907 5127.961. 122 S89,7':fl —1 S64.752961 Si 73.357866 V12,7 87 555 121671410 S591,774397 5680,200.746 5147,936951 22 8,325 V37,861,648 5186,118.9F7 $290.50t129 167.627 820 1415,726 738 187,518,940 1381.611.6 Si 286.802396 284,304.156 136.607,165 1340.565 719 1440.311536 S58,452.679 5660276247 $36.966.417 c 116,391,953.E V1E 12. 9.s 22.E i:2 a, 8. .4 E a2 22.2 . : S�12<- 1:a2°r2 S5`2-2 1.:7.42 S `22. 5£ 22277 i 1:3% tt64,281.`.3i >.?48,11,223 24 m 1»^S-i.111 aA 1 `224222 s,1 ' 13222; can 11.9% V.• ,-018, 8 SF.rfA i,17G 3_ ,777,331 snt,191"a; 5-9224 it34322 14,2% pm.mam1 ttifk522 2 3 .&17;21f4 irn2.311:141- 18_K,SFi,:Tah..29 ,4,2%. 18,'1,335, a 2' 2541.56E3ia 123% s140,m,119 a-imrze aaar z.aroriau tour Source: National Marine Manufacturers Association, Market Statistics Department, 2014 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATIQN AN1} CONS41LT1Nd 36 US Sailing Center 17-297-02 MARKET ANALYSIS LOCAL MARINA MARKET The State of Florida had a total of 793,113 registered boats as of February 2015. Miami -Dade County had the most registered vessels in the state with 48,754, Monroe County had 22,877, while Broward County had 41,722. The large number of registered vessels provides the basis for the area's marina industry. Boats registered in other states and foreign countries in the winter months join these vessels. However, the total number of vessels has declined over the last few years. in order to determine an appropriate market rent to apply to the subject's sailboat storage, we surveyed the following comparables in the subject's market. Since the subject only has on -site dry storage, which is rare in the area, we have compared this to outside storage of all types, including racks. Name: Location: Rates: Ground Pods - Transient - Occupancy: Average Boat Length: Maximum Boat Length: Maximum Boat Draft: Fuel: Repair Facilities: Amenities: Comments: Subject — US Sailing Center US Sailing Center 2476 S. Bayshore Drive, Miami, Florida $5.00/LF/Month - $12.00/LF/Month $6.25/LF/Month - $15.00/LF/Month Or $12.00/Day - $18.00/Day 95% 12' 24' 5' currently (6' when newly dredged) None No Restrooms, showers, 3-ton hoist The subject is strictly utilized for the promotion of sailboats, specifically for the training of Olympic racers and for introducing the community to sailing. No motor boats are stored on the property. Since all storage consists of ground pods, the capacity depends on the sizes of the sailboats being stored at the time. Year- round capacity is typically 100 sailboats, except for short-term regattas and other events, where up to 180 12' to 13' sailboats are made to fit on the site. #DS P Je BLAKE AND ASSOCIATES, INC fAl STA' VALUATION M CO SULTi 8 37 US Sailing Center 17.297-02 Name: Location: Rates: Wet Slips - Outside Racks - Ground Pods - Jet Ski Storage - Transient - Additional Live Aboard - Occupancy: Average Boat Length: Maximum Boat Length: Maximum Boat Draft: Dock Style: Fuel: Repair Facilities: Amenities: Comments: MARKET ANALYSIS Marina Comparable 1 Rickenbacker Marina 3301 Rickenbacker Causeway, Miami, Florida $35.00/LF/Month - $40/LF/Month $30/LF/Month $960/Month $380/Month - $450/Month $5.00/LF/Day - $8.00/LF/Day $145/Month - $545/Month 100% 45' 100' 9' Wood and Concrete Gas, No Diesel No Restaurant, security, ship's store, showers, laundry facilities, Internet access, located on Virginia Key Rates incorporate haul out services. This property is located on Virginia Key near the upscale residential community of Key Biscayne. The property contains Whiskey Joe's restaurant and is adjacent to the Rusty Pelican restaurant. JOSEPB J4 BLAKE AND A REAL ESTATE VALUATION A 4 GU#Sii C i A 1 E S, INC NtT 38 US Sailing Center 17-297-02 Name: Location: Rates: Wet Slips - Ground Pods - Occupancy: Average Boat Length: Maximum Boat Length: Maximum Boat Draft: Dock Style: Fuel: Repair Facilities: Amenities: Comments: MARKET ANALYSIS Marina Comparable 2 Miami Outboard Club 1099 MacArthur Causeway, Miami, Florida $9.00/LF/Month (Min. 30' length) $4.50/LF/Month (Min. 25' length) 100% wet slips; 92% ground pods 33' wet 40' N/A Wood No No Restaurant Slips are rented to members, and rates are kept fixed for transient, monthly, and seasonal renters. The property is currently operated as a non-profit, and the ground pods are situated in an asphalt paved parking lot, a portion of which abuts an off -ramp to the MacArthur Causeway. PSI J. SLAKE AND ASSOCIAT STATE VALUATION AN G CONSULTING S, INC 39 US Sailing Center 17-297-02 Name: Location: Rates: Outside Racks - lnside Hangars - Ground Pods - MARKET ANALYSIS Marina Comparable 3 Grove Key Marina 3385 Pan American Drive, Miami, Florida $24.00/LF/Month $30,00/LF/Month $26.00/LF/Month Occupancy: 90% Average Boat Length: 34' dry, 48' wet Maximum Boat Length: 41' Maximum Boat Draft: 5' Dock Style: Wood Fuel: Yes No Diesel Repair Facilities: Yes Amenities: Restaurant, security, and repairs Comments: Rates incorporate haul out services. JOSEPH J. DLAKE AND ASSOCIATES, INC REAL ESTATE V LDATION ANC CONSULT 40 US Sailing Center 17-297-02 Name: Location: Rates: Wet Slips - Outside Racks - Transient - MARKET ANALYSIS Marina Comparable 4 Grove Harbor Marina 2640 South Bayshore Drive, Miami, Florida $35/LF/Month $27.84/LF/Month - $30.73/LF/Month $4.50/LF/Day Occupancy: 100% Average Boat Length: 53' Maximum Boat Length: 150' Maximum Boat Draft: 6' Dock Style: Wood and Concrete Fuel: Gas and Diesel Repair Facilities: Yes Amenities: On -site Fresh Market, security, ship's store, showers, laundry facilities, Internet access, located in Coconut Grove Comments: Rates incorporate haul out services. The upland area is improved with a 276-dry slip storage facility (200 outdoor racks and 76 indoor racks), a commercial building with a Fresh Market and retail/office bays. The submerged land area consists of a 58-wet slip marina with concrete docks and concrete pilings. JOSEPB 9. BLAKE AND ASSOCIATES; INC, REAL ESTATE VALUATION AND CONS LTI t3 41 US Sailing Center 17-297-02 Name: Location: Slip Rates: Outside Racks - Inside Racks - Occupancy: Average Boat Length: Maximum Boat Length: Maximum Boat Draft: Dock Style: Fuel: Repair Facilities: Amenities: Comments: MARKET ANALYSIS Marina Comparable 5 North Beach Marina 724 NE 79th Street, Miami, Florida $16.00/LF/Month - $25.00/LF/Month $21.00/LF/Month -- $30.00/LF/Month 100% 27' dry, 59' wet 43' N/A Wood Yes No Diesel Yes Ship's store, fish cleaning station, and marine supplies This property is located just east of Biscayne Boulevard, on the south side of NE 79th Street. Rates incorporate haul out services. 1 SPH i. SLAKE AND A READ ESTATEVAL€ ION AND CONS SDC1ATES, NC. INN 42 US Sailing Center 17-297-02 MARKET ANALYSIS SUMMARY The comparable marinas are summarized on the following chart. Since the subject only consists of ground pods for storage, only these storage options are summarized and analyzed below, along with outside dry rack storage for those comparables that do not contain ground storage. Monthly Transient Rate/LF/Mo. Rate/LF/Day Subject $5.00 - $12.00 (pod) $6.25 - $15.00 $12.00/Day - $18.00/Day 1 $30.00 (rack); $960/Mo.(pod) $5.00 - $8.00 2 $4,50 (pod) 3 $24.00 (rack); $26.00 (pod) 4 $27.84 - $30.73 (rack) $4.50 5 $16.00 — $25.00 (rack) The comparables give a good estimate of the rates that are achievable in the market. Adjustments The comparable slips have a wide rental rate range. In order to better determine the rates at which the subject's slips would lease, we adjusted the comparables for the following factors: Location Quality and Condition Draft and Maximum Boat Length Amenities Location The adjustment for location realizes that areas of active growth and development, as well as those easily accessible and well protected from weather and tidal elements usually rent for more per LF than properties in areas that do not offer these attributes, with all other factors held constant. As stated, the subject is located on the south side of South Bayshore Drive, in the Coconut Grove area of Miami. The subject has unobstructed access to Biscayne Bay and the Atlantic Ocean and is in a tourist location with hotels, restaurants and night life. All of the comparables are located within Miami -Dade County and their locations are summarized in the following chart: Comparable Location Access Development Overall Adjustment 1 Virginia Key/Key Biscayne Similar Similar Similar None 2 Watson Island Similar Inferior Inferior Upward 3 Coconut Grove Similar Similar Similar None 4 Coconut Grove Similar Similar Similar None 5 NE Miami Inferior Similar Inferior Upward In terms of location, Comparables 2 and 4 are adjusted upward as it is inferior to the subject in terms of surrounding development or overall access. No other adjustments are made to the comparables in terms of location. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION Aiiti CUNSULTUU& 43 US Sailing Center 17-297-02 MARKET ANALYSIS Quality and Condition The subject's improvements are of average quality construction and are in average condition, Each comparable's quality and condition is listed below. Comparable Quality Condition Overall Adjustment 1 2 3 4 5 Good Average Average Good Good Good Average Average Good Good Good Average Average Good Good Downward None None Downward Downward Draft and Maximum Boat Length The draft and maximum boat length of each of the comparables is listed below. Comparable Draft Max. Boat Length Overall Adjustment Subject 1 2 3 4 5 5` N/A 5' 5' 6' N/A 24' 100' 40' 41' 150' 43' Superior Downward Superior Downward Superior Downward Superior Downward Superior Downward Amenities The number and quality of available amenities at a marina tend to make it more or less desirable to patrons. In terms of an amenities adjustment, it is typically found that marinas with higher quality and a greater number of amenities typically rent for more per LF than those which do not offer these features, with all other factors held constant. The subject's amenities include restrooms/showers, and 3-ton hoist. Most of the comparables contain a restaurant. The comparables' dock and upland amenities were listed in each marina write-up. The chart depicts how each comparable's amenities compare to the subject's. Comparable Amenities Adjustment 1 2 3 4 5 Superior Downward Superior Downward Superior Downward Superior Downward Similar None JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALliAT1OEN Atte CONSUiTfNG 44 US Sailing Center 17-297-02 MARKET ANALYSIS MARINA RENT COMPARABLE CONCLUSION The comparables are adjusted to reflect overall slip rental rates in comparison to the subject. Marina Rent Comparable Adjustment Grid 1 2 3 4 5 Location = + _ = + Quality & Condition = = Draft/Max. Boat Length - Amenitiies - = Overall Adjustment - - The subject offers sparse amenities. According to the dockmaster, the current rate being charged for the subject's ground pods is $5.00/LF/Month to $12.00/LF/Month. The subject is currently operated as a non- profit, the goal of which is to operate on a break-even profit margin. Therefore, if the subject's operations were assumed by a for -profit occupant, the market rental rates for the boat storage would be more akin to those indicated by the comparables. The subject is utilized as a US Olympic sailboat training center and on -site sailboat storage. The site is leased to the US Sailing Center, which is a privately -operated, non-profit, facility. This tenant has been at the subject property since 1986 and is one of ten official US Olympic training sites in the United States. The subject is strictly utilized for the promotion of sailboats, specifically for the training of Olympic racers and for introducing the community to sailing. No motor boats are stored on the property. Since all storage consists of ground pods, the capacity depends on the sizes of the sailboats being stored at the time. Year- round capacity is typically 100 sailboats, except for short-term regattas and other events, where up to 180 12' to 13' sailboats are made to fit on the site. All but one of the comparables offer dry rack storage, which is more common than ground pods, whereas the subject offers only ground pod storage more similar to parking spaces. Members can self -tow. Based on the type of entity that the subject is, the property's storage rates are at the low end of the range of the comparables' rates. Overall, we conclude that the subject's current rates are reasonable for its use as a non-profit to promote sailboat use. We conclude to the following average market storage fees for the subject: Monthly Transient Rate/LF/Mo. Rate/LF/Day Subject $13.00 $7.00 O EPN 3, BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION XNI) GUMS 1T1NG 45 US Sailing Center 17-297-02 MARKET ANALYSIS Occupancy/Business Mix Conclusions We were not provided with the subject's historical occupancy rates. According to the dock master, the property is typically to capacity, or 100% occupied with sailboats. We estimate that the subject's occupancy should be within the 90% to 100% percentile range based on the comparables in the market. The marina business is very sensitive to the national economy, and typically, when the economy is doing well, marinas also do very well. Currently, the national economy is considered to be stable. The occupancy level amongst marinas is strong. This is the result of the lack of new marina construction within the South Florida area. The permitting process associated with the construction of new marinas is virtually impossible as a result of environmental issues. As such, there is a limited supply of slips available within the area with a continued strong demand for slips and boat storage as population within the area continues to increase. Therefore, we have applied an overall occupancy rate of 95%. The subject does not keep records as to its business mix between annual, seasonal, monthly and daily fees, and only quotes rates based on monthly and transient rates for sailboats. Therefore, we analyzed the performance of comparable marinas. According to these comparables, daily or transient slip rental comprises the lowest percentage occupancy within a marina, typically between 2% to 5%. We have applied the upper end of this range to the subject. The majority of occupancy within the marinas surveyed is generated by annual occupants, with the additional slips filled by seasonal/monthly renters. Therefore, in determining an appropriate business mix for the subject, we have concluded to 95% as the monthly business mix, and 5% as the transient business mix. Ground Pods Monthly $13.00 95.00% $12.35 Transient $7.00 5.00% $0.35 $12.70 As mentioned, since all storage at the subject consists of ground pods, the capacity depends on the sizes of the sailboats being stored at the time. Year-round capacity is typically 100 sailboats, except for short-term regattas and other events, where up to 180 12' to 13' sailboats are made to fit on the site. In addition, the maximum sailboat length is 24'. The average rate is calculated to be $12.70/month for the subject's ground pods. We assume an overall average capacity of 100 sailboats at any one time, and an average sailboat length of 13'. Therefore, the potential gross revenue would be $12.70/LF/Mo. X 13' x 12 months x 100 pods = $198,120 per year. The total revenue that is projected to be generated by the subject is shown on the charts that follow: Potential Revenue Occupancy $198,120 95% Boat Storage Revenue $188,214 Rounded $190,000 The subject's historical sailboat storage revenues are shown on the chart below: Gross Revenue Subject Subject Subject 2013-2014 2014-2015 2015-2016 Boat Storage Revenue $155,707 $163,800 $179,030 JDSEPH J. BLAKE AND ASSOCIATES, INC. Ri Al< ESTATE AisUAT1ON AND 0NSULTi?Vi3 46 US Sailing Center 17-297-02 MARKET ANALYSIS Percentage Rent With regards to the rental rate for the subject, it is noted that a number of marina and restaurant facilities in Miami -Dade County are leased with the property's rental rate stipulated on a base amount, base amount plus percentage rent, percentage rent or the greater of percentage rent or base rent. Detailed below is information regarding several marina/restaurant comparables within the market: Comparable Base Rent % Rent Confidential Bayshore — Monty's Miami Yacht Club Coconut Grove Sail Club Grove Harbour Marina Rickenbacker $320,000 $277,586 $49,080 $30,000 or $550,000 or $360,000 10% of gross receipts 15% of gross receipts 9.0% of gross revenue in excess of $380,000 7.5% of gross revenues 15% of gross revenue for marina 10% of gross revenue for boatyard 10% of gross revenue for restaurants 5% of gross revenue for service/fuel 15.00% of gross revenues for wet slips 12.00% of gross revenues for dry slips Increasing by 1% after 4.5 years For many of the comparables, the natural breakpoint has been passed and they are paying a percentage of revenues to the city. Per the existing subject lease, the tenant pays a current base rent amount of $1,023/Month, or $12,274/Year during the 2016/2017 fiscal year. Rent increases annually based on CPI growth. In addition, the tenant pays 10% of gross revenues in excess of $80,000, not including donations or dividend and interest. The latest percentage rent payment, for 2015/2016, was $14,797/year. Thus, the latest total rent payment that was due to the City of Miami, was $27,071/Year ($12,274 base rent + $14,797 percentage rent). The following chart details the subject's historical base rental rate: Base Rent Subject Subject 2013-2014 2014-2015 Subject Subject 2015-2016 2016-2017 Annualized Monthly Rent $11,810 $12,086 $12,246 $12,274 The following chart details the subject's historical percentage rent paid to the City: Percentage Rent Subject Subject 2013-2014 2014-2015 Subject Subject 2015-2016 2016-2017 Annual % Rent $11,886 $14,115 $14,797 Not Yet Avail. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION Aid COt4SULTIN6 47 US Sailing Center 17-297-02 MARKET ANALYSIS The details of how the percentage rent was calculated and the individual income categories for the subject are shown on the chart below, along with our projections of revenue for each category based on the historicals: Gross Revenue Subject Subject Subject Subject Categories 2013-2014 2014-2015 2015-2016 Projection Boat Storage $155,707 $163,800 $179,030 $190,000 Program Fee $32,918 $33,000 $34,675 $35,700 Boat Rental $3,500 $5,750 $4,775 $5,000 Sales Tax Discount $271 $257 $285 $300 Soda Sales $290 $475 $224 $235 Office Space Income $6,177 $17,866 $8,981 $9,430 Total $198,863 $221,148 $227,970 $240,665 According to financial statements provided by the client, the lease provides for annual increases to the base rent based on CPI. We have applied a 3% increase to the subject. The following chart details the current percentage rent amounts applied to each category under a current confidential lease for a marina located in Coconut Grove: Category % Rent Wet Storage 15% Dry Storage 12% Subleases 40% Fuel Dock 5% Other Revenue 5% We have also detailed several comparables below that indicate that the rental revenue at a marina is tied into the base rental rate unless sales at the facility reach a natural breakpoint in which case percentage rent takes effect. Detailed below are the percentage amounts which would take affect for the ancillary revenue components at comparable facilities: Comparable A Category Boatyard: > of Base Rent @ $320,000 or % rent @ 10% of Gross Receipts Marina Service: > of Base Rent @ $320,000 or % rent @ 10% of Gross Receipts Marine Fueling: $0.02/Gallon on Fuel Comparable B Category Boatyard: Marina Service: Marine Fueling: N/A > of Base Rent @$277,586 or % rent @10%-15%of Gross Receipts N/A JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION A ii GUNSUt,TIRO 48 US Sailing Center 17-297-02 Comparable C Category MARKET ANALYSIS Boatyard: 9% of Gross revenues in Excess of $380,000 Marina Service: 9% of Gross revenues in Excess of $380,000 Marine Fueling: 9% of Gross revenues in Excess of $380,000 Comparable D Category Boatyard: > of Base Rent @ $360,000 or % rent @ 10% of Gross Receipts Marina Service: > of Base Rent @ $360,000 or % rent @ 5% of Gross Receipts Marine Fueling: > of Base Rent @ $360,000 or % rent @ 5% of Gross Receipts For many of the comparables, the natural breakpoint has been passed and they are paying a percentage of revenues to the city. With consideration to the comparables a base rental rate for the facility should be set such that a rental rate for revenue from a boatyard or marina service facility is the greater of the base rent or percentage rent at a rate of 5.00% to 15.00% of gross receipts for revenue for these categories. Given the subject's location, available land area and amount of income -generation, we believe a 15% percentage rent factor for the subject's boat storage is appropriate, versus the current factor of 10%. In terms of the remaining income categories at the subject, such as program fees, boat rental, etc., the subject's current lease requires the payment of 10% of revenues, which is considered reasonable based on the comparables. Under the current lease structure, percentage rent is only assessed in excess of $80,000. This should be restructured to simply be the greater of a base rent amount or percentage rent on all income categories, with no deductions. Based on income projections, first year rent would be either $30,000 or $33, 567. This is shown below: CONCLUSION The subject's market rent estimate is calculated as follows: Projected Annual Revenue Projected Revenue Percentage Rent Estimated Factor Rent/Yr. Base Rent 530,000/Yr. Revenues Boat Storage Fees $190,000 15% $28,500 Program Fees (Regattas, clinics, etc.) $35,700 10% $3,570 Boat Rental $5,000 10% $500 Sales Tax Discount $300 10% $30 Soda Sales $235 10% $24 Office Space Rentals $9,430 10% $943 Total (Revenues) $240,665 $33,567 FINAL MARKET RENT CONCLUSION - THE GREATER OF: Base Rent Percentage Rent $30,000/Yr. $33,567%Yr. JOSEPH 1. BLAKE AND ASSOCIATES, INC, REAL ESTATE VALUATION AND CONSULTlllS 49 US Sailing Center 17-297-02 MARKET ANALYSIS As mentioned, per the existing subject lease, the tenant pays a current base rent amount of $12,274/Year. In addition, the latest percentage rent payment was $14,797/year. Thus, the latest total rent payment that was due to the City of Miami, was $27,071/Year ($12,274 base rent + $14,797 percentage rent). Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $30,000, or a straight percentage rent on all revenues, with no deductions, of $33,567, and with annual CPI escalations, The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent, Rental rates for ground leases are typically adjusted every five years in the market. The majority of the comparables surveyed have a rental rate that is the greater of percentage rent or base rent. Once a natural breakpoint in base rent is surpassed, the subject is projected to pay a market rent equivalent to the percentage rent indicated in the chart above. Should revenues from storage and other operations fall below the natural breakpoint, base rent is applied. JOSEPH J. B ,AKE AND ASSOCIATES, INC. REAL ESTATE VALIE IION ANA 6R#SULTIUG 50 US Sailing Center 17-297-02 RECONCILIATION AND FINAL VALUE After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the fair market rent of the subject, as of August 9, 2017, is: Projected Annual Revenue Projected Revenue Percentage Rent Factor Estimated Rent/Yr. Base Rent $30,000/Yr. Revenues Boat Storage Fees $190,000 15% $28,500 Program Fees (Regattas, clinics, etc.) $35,700 10% $3,570 Boat Rental $5,000 10% $500 Sales Tax Discount $300 10% $30 Soda Safes $235 10% $24 Office Space Rentals $9,430 10% $943 Total (Revenues) $240,665 $33,567 FINAL MARKET RENT CONCLUSION - THE GREATER OF: Base Rent Percentage Rent $30,000/Yr. $33,567/Yr. Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $30,000, with annual CPI escalations. The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent. Rental rates for ground leases are typically adjusted every five years in the market. The majority of the comparables surveyed have a rental rate that is the greater of percentage rent or base rent. Once a natural breakpoint in base rent is surpassed, the subject is projected to pay a market rent equivalent to the percentage rent indicated in the chart above. Should revenues from storage and other operations fail below the natural breakpoint, base rent is applied. This appraisal is not based on any extraordinary assumptions. This appraisal is not based on any hypothetical conditions. JOSEPH{ J. BLAKE AND ASSOCIATES, INC, REAL ESTATE VALU TI0N AND CD SULTUNi# 51 US Sailing Center 17-297-02 ADDENDA JOSEPH J. BLAK E AND ASSOCIATES, INC. EAL ESTATE VALUATION AND CONSULTING ARTICLE 4. TABLE 1 TRANSECT ZONE DESCRIPTIONS AS ADOPTED - APRIL 2013 THE NATURAL ZONE consists of lands approximat- ing a wilderness condition, permanently set aside for conservation in an essentially natural state. THE RURALZONE consists of lands in open or cultivated state or sparsely settled. These include woodland, grassland and agricultural land, THE SUB -URBAN ZONE consists of low -Density areas: primarily comprised of Single -Family and Two Family residential units with relatively deep Setbacks, Streetscapes with swales, and with or without Side- walks. Blocks may be large and the roads may be of irregular geometry to accommodate natural and historic conditions. THE GENERAL URBAN ZONE consists of a Mixed -Use but primarily residential urban fabric with a range of Building types including rowhouses. small apartment Buildings, and bungalow courts. Setbacks are short with an urban Streetscape of wide Sidewalks and trees in planters. Thoroughfares typically define medium- sized blocks. THE URBAN CENTER ZONE consists of higher Density Mixed -Use Building types that accommodate retail and office Uses, rowhouses and apartments. Anetworkof small blocks has Thoroughfares with wide Sidewaiks. steady street tree planting and Buildings set close to the Frontages with frequent doors and windows. T6 THE URBAN CORE ZONE consists of the highest Density and greatest variety of Uses, including Civic Buildings of regional importance. A network of small blocks has Thoroughfares with wide Sidewalks. with steady tree planting and Buildings set close to the Frontage with frequent doors and windows. THE CIVIC ZONE consists of public use space and facilities that may contrast in use to their surroundings while reflecting adjacent Setbacks and landscape. THE DISTRICT ZONE consists of the least regulated Building and accommodates commercial and industrial Uses of a scale and with a Streetscape that facilitate vehicular access_ IV.5 ARTICLE 4. TABLE 3 BUILDING FUNCTION: USES AS ADOPTED - APRIL 2013 DENSITY (UNITS PER ACRES RESIDENTIAL SINGLE FAMILY RESIDENCE COMMUNITY RESIDENCE ANCILLARY UNIT TWO FAMILY RESIDENCE MULTI FA..irLY HOUSING DORMITORY HOME OFF -ICE. LIVE -WORK WORK -LE LO GING BED & BREAKFAST HOTEL OFFICE Ot FtCE COMMERCIAL AUTO -RELATED COMMERCIAL ESTAB ENTERTAINMENT ESTABLIS:IMEN ENTERTAiNMENTESTAB -ADULT FOOD SERVICE ESTABLISHMENT AiCL)FOL BEVERAGE SERV',CE ESTAB GENERALCOMMERCIAL 'AR9NE RELATED COMMERCIAL ESTAB. OPEN AIR RETAIL PLACE DE ASSEMBLY ECREATIONAL ESTABUSHMENT CIVIC CCMMIJIAT' FACILITY RECREATIONAL FACILITY RELIGIOUS FACILITY REGIONAL ACTIVITY COMPLEX CIVIL SUPPORT COMMUNITY SUPPORT FACILITY INFRASTRUCTURE AND UTILITIES MAJOR FACILITY MARINA PUBLIC PARKING RESCUE MISSION TRANSIT FACILITIES EDUCATIONAL CHILDCARE COLLEGE UNIVERSITY ELEMENTARY SCHOOL LEARNING CENTER MIDDLE! HIGH SCHOOL PRE-SCHOOL RESEARCH FACTUTY SPECIAL TRAINING +VOCATIONAL INDUSTRIAL AUTO-RELATED,'NCUSTRIAL ESTBL_ MANUFACTURING AND ?ROCESSING MARINE RELATED INDUSTRIAL ESTUL. PRODUCTS AND SERVICES STORAGE! DISTRIBUTION FACILITY T3 SUB -URBAN R L 0 9 9 16 MIEN- - -EWEN MENNEN -EMEM --MENEM - T4 URBAN GENERAL R L 0 36 36 36 --- ENEN oENEN 0EN EMMEN MI -- - NE --- INE E R R ,v R R R R R E =®_ EIKE ©IEEN -- R �VV w --- EMEI --- MENEM EMEMEEI —NINE LV E T5 URBAN CENTER 65 65 R R 65 R ENEN —oEN - R R TY R E R R w w R R R R W TV --- ©®® =IEEE Ell -0® R Ar R R R Allowed By Right WAllowed By Warrant: Administrative Process - CRC 'Coordinated Review Committee) E Allowed By Exception: Public Hearing - granted by PZAB {Planning: Zoning & Appeals Board) Boxes with no designation signify Use prohibited T6 URBAN CORE R L 0 150` 150* R R 150' R R R R c CIVIC CS CI CI -HD WA AZ" 150` R EMMEN I R R R R Al !4r R R -- EV EN —MEM w w sV El --- MENZIEN ENEE -- R W R R W w rN R W R --- E E. E I E R W E W E R E E --- -© EMMEN R -- R --- EIRE El -EN R R R DISTRICTS ❑1 D2 D3 36 NIA N/A NE — Ell R R R R R E El R R ENEN® R --- R R R W --- R R W oNNEN EMEMEI KENN R I Yd R --- MENIE IEEE R W Uses may be further modified by Supplemental Regulaions State Regulations, or ether provisions of this Code See City Code Ctrepter 4 for regulations related to Alcohol Beverage Service Estab ' Additional densil=es n sorne TS zones are illustrated in Diagram 9. "AZ: Density of lowestAbutting Zone (V.a ARTICLE 4. TABLE 4 DENSITY. INTENSITY AND PARKING (CONTINUED) AS ADOPTED - APRIL 2013 CS -CIVIC SPACE CI - CIVIC INSTmJ11ON C - CIVIC CI -HD - CIVIC INSTITUTION HEALTH DISTRICT [DENSITY (UPA) J WA DENSITY OFABUTTING ZONE 150 UNITS PER ACRE RESIDENTIAL A(f ntensdy, parking and loading regulations to match that of the most resbttive Abutting zone. • Parking requirement may be reduced according to the Shared Parking Standard, Article 4, Tabe 5. • Minimum of 1 Bicycle Rack Space for every 20 vehicular spaces requ ed. Uses are permissible as listed in T able 3, limited by compliance with • Densily and al intensity, parking and loading regulations to match that of the most restrictive Abutting zone. • Minimum of 1 parking space for every 800 square feet of Residential Use. • Leading - See Article 4. Table 5 LODGING • of Residence! rn 1 parking space for every 800 square feet of Residential Use. • Loading - See Article 4, Table 5 OFFICE Office Uses are perm ssible as listed in Table 3. • M.nimurn of 3 parking spaces for every 1e000 squar feet of Office Use • Minimum of one Bike space tar every 20 vehicular spaces required (before any reductions) • Pacing ratio may be reduced according to the shared parking standard. • Parking may be provided offsite in CI, D. T5 or TO within 500 feet through a parking management planizone. • Minimum of 1 parking space for every 800 square feel of Office Use. • Loading - See Article 4. Table 5 COMMERCIAL Commercial Uses are permissible as listed in Table 3 • Minimum of 3 parking spaces for every 1,000 sf of coat- space. • Minimum ofore Bike space for every 20vehicular spaces required (before any reductions). • Parking ratio may be reduced according to the shared parking standard. • Loading - See Article 4, Table 5_ • Loading needs, including maneuvering, shall be emcee- modeled on site_ Commercial Uses are permissible as listed in Table 3 limited by compliance with: • Building area allowed for Commercial Use on each lot shallheless than 25aBuilding floorarea toia1 • Minimum of 3 park:no spaces for every 1,000 sf of corn- mercial space • Minimum of 1 parking space for every 7 seats in a Major Sports Facility ' Mini'eumofone Bike space for every 20 vehicular spaces required (before any reductions), • Parking ratio may be reduced according to the shared parking standard. • Parking ratio may be reduced For Major Sports Facility within 1 mile of a Metrorail, Melromover Station, or mass transit facility by up to 10%_ • Loading - See .Article 4, Table 5 • Loading needs. including maneuveri',g. shall ee accom- modated on site. • Minimum of 1 parKing space for every 800 square feet at Comore€clef Use.mercial • Loading - See Article 4, Table 5 CIVIC Civic Uses are permissible as :fisted in Table 3. • Minimum of 1 parking space for every 5 seats ofessembly uses. - Minimum of1parkivgspace for every 1 000 sfof exhibition or recreation space. and parking spaces for other Uses as required. - Minimum of 1 parking space for every staff member for recreational uses. • Minimum at 1 parking space for every 500 sf of Building area for recreational uses. •Minimumef me Bike space for every 20 vehicular spaces required (before any reductions). • Park:eg may be provided offsite in CI, D, T5 or T£'within 500 feet through a parking management plan/zone, Ow c Uses are permissible as fisted in Table 3 • Mimmumof1parking space for every 5sealsofassembly uses. • Minimum oflparking space lerevery 1.000sfcfexhibition or recreation space, and parking spaces for other Uses as required. • Minimum of 1 parking space for every staff member for recreational uses_ • Minimum of 1 parking space for every 500 sf of Suild:,ng area for recreational uses. • kl inire um of one Bike space forever/ 20 vehicular spaces required (before any redact€oast. = Parking may be provided offsite in CI.0, T5 orTe within 500 feet through a parking management planzosne. • Minimum of 1 parking space for every 800 square feet nfCivicUse. • Loading - See Article 4. Table 5 CIVIL. SUPPORT Civil Support Uses are permissible as listed in Table 3, limited by compliance wt. • For Civil Support, areiMmumof1parking space for every 1,000 sf. • For Marine Uses, a minimum of 1 parking space for every 5 slips. Civil Support Uses are permissible as listed in Table 3. invited by Pe -whence with • For Civil Suppsit, amine -aim of1parking space forevery 1,000 sf. • Far Assembly uses, a nenin,um el 1 parking space for every 5 seats • For Marine Uses, a minimum of 1 parking space for every 5 slips_ • Adult Daycare - Minimum of 1 specs per staff member and 1 space ter owner. • Minimum ot 1 parking space for every 800 square feet of Civil Support Use. •Loading - See Article 4. Table 5 EDUCATIONAL Educational Uses are permissible as listed in Table 3. limited by compliance with • Minimum of 2 parking spaces for every 1,000 of of educational space • Minimum of one Bike space for every 20 vehicular spaces required (he€ore any reductions)_ • Childcare Facilities - Minimum of 1 spaceper staff member. 1 space for owner and 1 drop-off space for every 10 clients cared for Educational Uses are permissible as listed in Table 3 limited by compliance with: • Minimum of 2 parking spaces for every 1.000 sf of educational space • Schools - Minimum of 1 parking space for each faculty or staff member. 1 visitor parking space per 100 students. 1 parking space per 5 students in grades 11 and 12 or Ccllege:University. • Childcare Facilities - Minimum of 1 space per staff € member. 1 space for owner and 1 drop-off space for every 10 clients cared for • Minimumafone Bee specelerevery 20vehicular spaces required (before any reductions). • Minimum of 1 parking space for every 800 square feet of Educational Use. • Loading - See Article 4, Table 5 IV, 18 AS ADOPTED - APRIL 2013 5.7 CIVIC SPACE ZONES (CS) AND CIVIC INSTITUTION ZONES (CI) 5.7.1 Civic Space Zones (CS) 5.7.1.1 Development in a Civic Space Zone should have a minimum of fifty percent (50%) of its perimeter enfronting a Thoroughfare. Civic Space sites shall be entered directly from a Thoroughfare. 5.7.1.2 Development in Civic Space Zones shall be consistent with the standards in Article 4, Tables 3, 4, and 7. 5.7.1.3 One or more Buildings may be built in each Civic Space. Building floor area shall not exceed twenty- five percent (25%) of the lot area of the Civic Space, and shall support the principal use of the Civic Space. 5.7.1.4 In Civic Spaces, Buildings, Fences and walls shall conform to regulations of the most restrictive Abutting Transect Zone, except as shown by City of Miami's Parks and Public Spaces Master Plan. Other adjustments to the regulations shall be approved by process of Exception. 5.7.1.5 All Community facility and Recreational Facility Uses shall be government owned or operated only. 5.7.2 Civic Institution Zones (CI) 5.7.2.1 Development in a Civic Institution Zone shall have a minimum of one (1) Frontage enfronting a Thoroughfare and should have its primary entrance from a Thoroughfare. 5.7.2.2 Development in Civic Institution Zones shall be consistent with the standards in Article 4, Tables 3 and 4. 5.7.2.3 A Civic Institution Lot may have one (1) or more Buildings. 5.7.2.4 Civic Institution Development shall be permitted by process of Exception and shall conform to the following regulations: a. Any property located within a CI Zone may be developed according to the regulations of the most restrictive Abutting Transect Zone with all Frontage Setbacks considered a minimum. b. Development in a CI Zone shall follow the regulations of the Abutting Transect Zone, except that Height restrictions shall be as follows; 1. A CI Zone entirely Abutting T3 shall be developed to no more than the maximum Height al- lowed by T4. 2. A CI Zone predominantly Abutting T3 orT4, shall be developed to no more than the maximum Height allowed by T5. 3. A CI Zone predominantly Abutting T5, T6-8, D1, D2 or D3, shall be developed to no more than the maximum Height of T6-8. 4. A CI Zone entirely Abutting T6-8 or higher, may conform to the maximum Height of any higher Abutting Transect Zone. V.43 ARTICLE 6. TABLE 13 SUPPLEMENTAL REGULATIONS (CONTINUED) AS ADOPTED • APRIL 2013 CS — CIVIC SPACE CI —CMG INSTITUTION C - CIVIC CI -HD— CIVIC INSTITUTION HEALTH DISTRICT DENSITY (UPA) N/A DENSITY OF ABUTTING ZONE 150 UNITS PER ACRE BOATS HOUSEBOAT HOUSE BARGE Occupancy of private pleasure crafts and houseboats r Occupancy of private pleasure crafts and houseboats or house barges shall not be allowed except for those I or house barges shall not be allowed except for those specifically grandfathered and regulated by Ordinance I specifically grandfathered and regulated by Ordinance #10932, adopted October 24,199F. 1 #10932, adopted October 24, 1991 _ Occupancy of private pleasure crafts and houseboats or house barges shall not be allowed except for those specifically grandfathered and regulated by Ordinance #10932, adopted October 24, 1991,. DOCKS PIERS Extension of docks and Piers into Biscayne Bay are limited to 35 feet However, by Exception a 600 feet maximum extension of docks and Piers into Biscayne Bay may be allowed. Extension of docks and Piers into other waterways is limited to 10 feet or 10% of the width of the waterway. whichever is less. However, by Exception further extension may be approved, subject to approval from all applicable agendas. I Extension of docks and Piers into Biscayne Bey are l limited to 35 feet However, by Except€oo a 600 feet ; maximum extension of docks and Mere into Biscayne Bay may be allowed_ Extension of dodos and Piers into other waterways is limited to 10 feel ar 10% of the width sf the waterway, whichever is less However, by Exception 'loaner extension may be approved. subject to approval from all applicable agencies Extension of docks and Piers into Biscayne Bay are limited to 35 feet However, by Excepticn a 600 feat maximum extension of docks and piers into Biscayne Bay may be allowed. Extension of docks and Piers into other waterways is limited to 10 feet ar 1015 of the width of the waterway, whichever is less. However, by Exception further extension may be approved. subject to approval from all applicable agencies. OPEN AIR RETAIL Subject to the following additional requirements: I Subject to the fallowing additional requirements: Access to site must be from a major Thoroughfare. I Access to site must be from a major Thoroughfare. Distance separation of any open air retail shall be a I Distance separation of any Open Air Retail shall be a minimum of 75 feet measured from any property within minimum of 75 teat measured (rem any property within T3. T4-R. T5-R. or T6-R Zone. i T3, T4-R, T5-R, or T6-R Zone_ Operation limited to weekends and legal holidays for a I Operation limited to weekends and =eca'i holidays tar a maximum of 3 consecutive days between the hours of j maximum of 3 consecutive days between the hours of TOO AM and 7:00 PM. I 7:00 AM and 7:00 PM. •Provision of paving striping for stalls and parking Provision of paving striping for stalls and parking :spaces. ' spaces. Provision of on -site restroom facilities. Provision of on -site restroom facritiee. Subject to the requirements of Section 6.3.4 ADULT DAYCARE For 6 to 9 adults. film€mum of 350 square feet of indoor activity area, For 10 or more adults.: Minimum of 35 square feet ofindeor activity area per adult For 6 to 9 adults, Minimum of 350 square feet of indoor activity area. Fir 10 ar more adults'_ Minimum of 35 square feet of indoor activity area per adult. COMMUNITY SUPPORT FACILITY Assisted Living Facilities: Allowed by Exception and are subject to the following additional requirements: Minimum distance requirement of 2,500 feet between proposed facility and another existing facility_ Minimum distance requirement of 1000 feet between proposed facility and any T3 or T4-R Zone. PERSONAL WIRELESS SERVICE FACILITY Subject to the requirements of Section 6-4. Subject to the requirements of Section 6.4. Subject to the requirements of Section 6.4,. HELICOPTER LANDING SITE Helicopter landing sites as regulated by federal and state law may be permitted by Warrant subfectto the following additional, requirements: Mayonly beused for the landing and takeoff ofhelicopters dropping off and picking up passengers and cargo. and may not include fueling. repair. or 101g term parking or storage of helicopters. Unless used for emergency operations (police, fire, and hospital), landings and takeoffs shall be restricted to Monday through Friday from 9:00 AM to 5 PM an parcels Abutting T3, T4. T5-R, and T6-R Zones. Ground level sites shall be located away from Buildings, trees, or significant terrain features to avoid possible air turbulence. Rooftop sites shall be given pnority over ground level sites in congested areas. Helicopter tending sites asregulated byfederal and state € e rney be permitted by Warrant subleet to the following additional requirements: , Mayoniybeused for the landingand takeoff ofhelicopters ; dropping off and picking up passengers and cargo_ and I may not include fueling, repair. or long term parking er I storage of helicopters_ I Unless used for emergency operations (police. fire. and I hospital) landings and takeoffs snail be restricted to I Monday through Friday from 9:00 AM to 5 PM on parcels I Abutting T3. T4. T5-R, and T6-R Zones. I Ground level sites shall be located away from Buildings, trees, or significant terrain features to avoid possible air turbulence, Rooftop sites shall be given priority over ground level ; sites in congested areas. Helicopter landing sites asregulated by fro deraland slate law maybe permitted by Warrant subject to the fcilowing additional requirements, May only beused tor the landingandtakeoffofhelicopters dropping off and picking up passengers and cargo, and may not include fueling, repair, or long term parking or storage of helicopters. Unless used fcr emergency operations (police_ tire, and hospital) landings and takeoffs shall be restricted to Monday through Friday from 9.00 AM to 5 Phi on parcels Abutting T3- T4 75-R. and T6-R Zones. Ground level sites shall be located away from Buildings. trees, or significant terrain features to avoid possible air turbulence Rooftop sites shall be given priority over wand level sites in congested areas CHILDCARE Minimum of 35 square feet of usable indoor floor space per child on license. Minimum of 45 square feet of usable outdoor play area per child. A minimum outdoor play area shall be provided for one half of license capacity In no event shall any outdoor play area be less than 450 square feet. The minimum standard of outdoor play area does not apply for children under one year of age. Minimum of 35 square feet of usable indoor floor space 1 per child on license. Minimum of 45 square feet of usable outdoor play area per child. A minimum outdoor play area shall be provided for one half of [cense capacity In no event shall any outdoor play area be less than 456 square feet. The minimum standard of outdoor play area does not apply for children under one year of age Vehicular entrance mustbe within 300 feet of arterial read. Minimum of 35 square feet of usable indoor floor space per child on license. Minimum of 45 square feet of usable outdoor play area per chid A mirinwm outdoor play area shalt be provided for one half of license capacity. In no even( shall any outdoor play aria be less than 450 square feel The minimum standard of outdoor play area does not apply for children under one year of age. Vehicular entrance roust be within 300 feetof arterial road MAJOR SPORTS FACILITY Medificatonsir Setbaeksupto4maxi mum oflttypercent ! (50%) of the required Setbacks may be approved ey Waiver when Liner Uses are provided along parking Structures. CommercialUsesmay exaeedtwenty-five percent (25%) of the Building aria by Warrant {ai (al i44:uiJ:f n.,uv htajrad I n'r ca!! 5wscc SECTION A N. first floor_plan a z: c Re vo-:ts, FL. PEG. ARC EC YTM r �(Iry�yw AA0003925 9ii() ) ;(,,•2 g.,2q,P, k • : .. ':. 1...,1 1 , r ,!" kki., • second floor• plan V.V14Y,9.k: Fj Tam A,3 FL REG, ARCHITECT 10T8T4 EXHIBIT I U.S. Sailing Center, Inc. Agreed Upon Procedures and Findings October 1, 2015 - September 30, 2016 1. Procedure: Obtain and schedule a listing of Annual Gross Revenues far the period of October 1, 2015 -September 30, 2016, and accounts as follows: Boat Storage Fees, Program Fee, Boat Rental, Sales Tax Discount, Soda Sales, and Miscellaneous. Findingst Annual Gross Revenue noted of the US Salting Center. inc. for the foilnwing general ledger accounts were as follows: Boat Storage Fees S 179,030 Program Fee 34,575 (Clinics, Regattas, etc.) Boat Rental 4,775 Sales Tax Discount 285 Soda Sales 224 M iscelianeous 8.931 Total 3_2az,SZC Z. Procedure Trace 38 invoices for the period and note any exceptions. Findings: nvoices and findings sefectert for testing are indicated an Schedule A.4 3. Procedure dentify other revenue that is not included in the Gross Revenue noted in Procedure 1. firrdnSs_ Tne following accounts and balances were not included_in the Gross' Revenue noted per Procedure I, and tier? not subjected to agreed -upon procedures testing noted in Procedure 2. Donations Dividend & Interests Page 1 of 1 S 12.20C 391 EXHIBIT U.S. Sailing Center, Inc. Agreed Upon Procedures and Findings October 1, 2014 - September 30, 2015 1. Procedure: Obtain and Schedule a listing of Annual Gross Revenues for the perod of October 1, 2014 —September 30. 2015, and accounts as follows: Boat Storage Fees, Program Fee, Boat Rental, Sales Tax Discount, Soda Sales, and Miscellaneous. Findings: Annual Gross Revenue noted of the US Sailing Center, Inc. for the lollcswing general ledger accounts were as follows: PeatStarage Fees $ 163,799.87 Program Fee 33,000.00 (Clinics, Regattas, etc.) Boat Rental 5, 75C.00 Sales Tax Discount 257.46 Suda Saes 474.55 Miscellaneous 17,8(6,07 Tota I11, 9, 2. Procedure Trace 35 invoices for the period and note any exceptions. Findings: Invoices and findings selected for testing are indicated on Schedule A." 3- Procedure Identify other revenue that Is not included in the Gross Revenue noted in Procedure. I. Findings: The ffoilevAng accounts and balances were not €ncluded_in the Gross Revenue noted per Procedure S, and were not subjected to agreed upon procedures testing noted in Procedure 2. Donations $ 119,800.00 Dividend & interests 147.37 5ag'1of1 EXHIBIT I U.S. Sailing Center, Inc, Agreed Upon Procedures and Findings October 1, 2013 - September 30, 2014 1. Procedure: Obtain and schedule a listing of Annual Gross Revenues for the period of October 1, 2013 —September 30, 2014, and accounts as follows: Boat Storage Fees, Program Fee, Boat Rental, Sales Tax Discount, Soda Sales, and Miscellaneous. Findings: Annual Gross Revenue noted of the US Sailing Center, Inc. for the following general ledger accounts were as follows: Boat Storage Fees $155,707.47 Program Fee 32,918.36 (Clinics, Regattas, etc.) Boat Rental 3,500.00 Sales Tax Discount 270.82 Soda Sales 290.23 Miscellaneous 6,177.28 Total 64 2, Procedure Trace 35 invoices for the period and note any exceptions. Findings: Invoices and findings selected for testing are indicated on Schedule A.' 3. Procedmrg Identify other revenue that is not included in the Gross Revenue noted in Procedure 1, Findings: The fallowing accounts and balances were not included in the Gross Revenue noted per Procedure .I, and were not subjected to agreed -upon procedures testing noted in Procedure 2, Donations13 5 3 3/13/2017 City of Miami REQUEST FOR APPRAISAL QUOTE You are invited to submit a quote to prepare an appraisal report based on the Appraisal Assignment attached herewith as Exhibit "A". Please complete the information requested at the bottom of this page. The quote and below information must be received by the Department of Real Estate and Asset Management by 3:00 p.m.. Monday. March 20. 2017. You inay submit your proposal via email or by mail to: Igor 'isigelman Property Management Represemative Department or Real Estate and Asset Management City of Miami 444 SW 2 Avenues, 3ta Floor Miami, FL 33130 (:305)416-1401 itsiaelman@mkunlizov.eorn ADDRESS FOLIO JOB No. 2476 S BAYSHORE DR 01-4122-001-1591 A-03-17-010 Fees; Comprehensive total fee to perform appraisalls: Hourly fee in the event expert testimony is required: Appraisal Company: Joseph J Blake & Assoc Inc Telephone/Extension; 305.448,1663 By: Ted Allen -"; Date: 3/13/2017 Sign: $ 4,750 $ 4,750 $ 275 • NOTE: When sending a quote, our comEntny must comply with the completion due date. If selected, your company must provide a Certificate of Insurance in the manner prescribed in Exhibit "C" below. Page 1 of 5 3113/2017 City of Miami EXHIBIT "A" APPRAISAL ASSIGNMENT Job Number: A-03-17-010 Fiscal Year: 2016-17 Location: 2476 S BAYSHORL DR Folio No.: 01-4122-001-1591 Lot Size: 76,850 square feet Adjusted Area: 5,801 square feet Improvements: US Sailing Club Purpose of Appraisal; To determine Fair Market Rent in order to negotiate a lease agreement for possible lease of property. Property Rights Appraised. Fee Simple Current Zoning: CS Civic Space Zone (under the Vflami 21 Zoning Cod Type of Appraisal: Narrative. Time to Complete: The appraisal report must be completed no later than fifteen (15) days after authorization. Number of bound copies: Four, (signed and certified). City Contact Person: Igor Isigelman, Property Management Representative T: (305) 416-1401 E-mail: itsittelmarqmiarniov.com Resolution Reference: None. Date of the Valuation: Date of the appraisal report. Fee: Full payment upon completion of the assignment, subject to revisions by the City of Miami and any other review appraiser should there be any discrepancies in the appraisal reports. TILE APPRAISAL REPORT SHOULD INCLUDE THE FOLLOWING: Page 2 of 5 3 13/2017 City of Miami 1. The appraisal report shall be performed in compliance with the professional services agreement with the City for appraisal services as applicable. 2. The appraisal report must consider all three approaches to value and provide an explanation to the weight given to eachapproach in arriving at the final reconciliation of value. In the event an approach is nut used, please provide justification. Please provide evidence for not using the Cost Approach. calculating the Market Data. the appraiser should analyze and provide current local market data and submit adjustment tables of compara.bles. 4. If utilizing a Land Sales Comparable Table to calculate Safes Price per Square Foot, please provide line nein adjustments in a matrix format ibr a better understanding of the Summary and Land Value Correlation conclusion. 5. Provide source and proof of capitalization rate for the income approach to value in local market versus other market when applicable. 6. Provide Market Data as if taxable property. 7. The appraisal report should be in compliance with the current Uniform Standard of Professional Appraisal Practice (LISPAP) according to Section 473, Part II, of the Florida Statutes. The City of Miarni reserves the right to review the appraisal report and submit its comments. The final report will be due five days after the appraisal is reviewed by City's staff. Note: All calculations must be explicit. Show all steps used to arrive at any conclusions provided. All data in this sheet must be verified by the appraiser, if any discrepancy, please call this office at 305-416-1401. Page 3 of 5 3/13/2017 CityofMiami EXHIBIT "IV' INSURANCE REQUIREMENTS (I) Commercial General Liability (Primary & Non Contributory) A, Limits Bodily injury and Property Damage Liability Each OcCUITiMCC $1.000.000 General Aggregate .Limit $2.000..000 Products/Completed Operations $1,000,000 Personal and Advertising Injury $1.000,000 R. EndorsementReeuired City of Miami included as an additional insured Contingent Liability (Independent Contractors Coverage) Contractual Liability Premises & Operations Liability Primary Insurance Clause (I) Business Automobile Liability A. Limits of Liabilio. Bodily Injury and Property Damage Liability. - Combined Single Limit Any Auto/Owned Autos/Scheduled Including Hired, Borrowed or Non-thvned Autos Any One Accident $ 1,000,000 B. Endorsements Required City of Miami included as an Additional Insured (III) Worker's Compensation A. Limits of Liability Statutory -State of Florida Waiver of subrogation (IV) Employer's Liability A. Limits of Liability $100,000 for bodily injury caused by an accident, each accident. $100,000 for bodily injury caused by disease, each employee $500,000 for bodily injury caused by disease, policy limit (V) Professional Liability/Error's & Omissions A. Limits of Liability Combined Single Limit Each Claim $1,000.000 General Aggregate Limit $1,000,000 Retro Date Included Page 4 or 5 3;13/2017 City of M iami BINDERS ARE UNACCEPTABLE. "The above policies shall provide the City of tvliami ith written notice of cancellation or material change from the insurer in accordance to policy provisions. Companies authorized to do business in the State of Florida, with the following qualifications, shall issue all insurance policies required above, and must meet the fblowing requirements: The company must be rated no less than "A-- as to management, and no less than "Class V" as to Financial Strength, by the latest edition of Best's insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent. All policies and !or certificates of insurance are subject to review and verification by Risk Management prior to insurance approval, Certificates will indicate no modification or chanic in insurance shall be made -without thirty,' 00) days written advance notice- to lite certificate holder. The Bidder shalt be responsible for assuring that the insurance certificates required in conjunction with this Section remain in 'force for the duration of the contractual period; includine, any and all option terms that may be granted to the Bidder. In the event that expired certificates are not replaced with new or renewed certificates which cover the contractual period, the City shall have the option to: (1) Suspend the contract until such time as the new or renewed certificates are received by the City in the manner prescribed in the Request for Appraisals Quote; or (2) The City may, at its sole discretion, terminate this contract for cause and. seek re -procurement damages from the Bidder in conjunction with the General and Special Terms. and Conditions of the I3id. The insurance coverage required shall include those classifications, as limed in standard liability insurance manuals, which most nearly reflect the operations of the bidder, Compliance with the foregoing requirements shall not relieve the bidder of his liability and obligation under this section or under any other section of this Agreement. Page 5 of 5 Client#: 2449 JOSEJBLA ACORD, CERTIFICATE OF LIABILITY INSURANCE DATE (NRAILIONYYY) 02/13/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: if the certificate KOcier is an ADDITIONAL INSURED. the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsements). PRODUCE NFP P & C Services Inc. 45 Executive Drive Plainview, NY 11803 516 327.2700 INSURED Joseph J. Blake & Associates, Inc 425 Broad Hollow Rd,Ste 429 Melville, NY 11747 CONTACT NAME' PHONEt, E0), 516 327-2700 FAcX . 516-327-2800 E-MAIL ADDRESS: INSURER(S) AFFORDING COVERAGE msuRER A , Indian Harbor Insurance Company INSURER S INSURER C: _ INSURER 0 INSURER E ; INSURER F ; NAIC 36940 COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERT& rHAr THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED ro T14E NSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CER [IF ICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS EXCLUSIONS AND CONDI .142,NS. OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS NSR ADOL SUER . rR rYPE OF INSURANCE INSR XXV() POLICY NUMBER POLICY EFT ' POUCY EXP AVDDYYY Y) IPAPAIDO/YYYTI__ LIMITS A COMMERCIAL GENERAL 1JABILrfY • ' , _ CLAIM.5-MADE OCCUR GNL AGGRECATE LIMIT APPLIES PER: 5TEC/- Poucr ,IECT LOC OTHER. AUTOMOBILE LIABILITY ANY A1fTL ALL OWNED AIMS HIRED AUTOS SCHEDULED AUTOS NON-OWNE0 AUTOS •, UMBREUA LAB OCCUR EXCESS LAB CLAIMS -MADE DED RETENTION 5 WORKERS COMPENSATION AND EMPLOYERSLIABILITY Y I N ANY PROPRIETORMARTNERIEXECUTI OFFICER/MEMBER EXCLUDED? Nt A (Mandatory In NH) It yes, descnbe under DESCRIPTION OF OPERATIONS Wove Professional Liability MPP002947507 DESCRIPTION OF OPERATIONS LOCATIONS 1 VEHICLES (ACORD WI. Ad Evidence of Insurance EACH OCCURRENCE ilEtWEA}EqENTT .ncel 5 MED EXP !eAny one oeTson) 5 PERSONAL & ADV NJURY GENERAL AGGREGATE mooticTs -COMPIOP AGG COMBINED SINGLE IEa acadent) BODILY INJURY per ped.ob) 5 BODILY INJURY (Per accielspq PROPERTY DAMAGE Apar acadenD _ • occuRRENcE. AGGREGATE PER E L. EACH ACCIDENT E t.„ DISEASE - EA EMPL YEE L. DISEASE POLICY WAIT 2/2017 $1,000,000 Lirnit e Schedule, may be adzchchi more space is required CERTIFICATE HOLDER CANCELLATION City of Miami Public Facilities Dept. Asset Management 444 SW 2nd Avenue, 3rd Ffoor Miami, FL 33130 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE c7r1 Cld.../.4.,z.v 5)19ea-2o14ACORD CORPORATION. All rights reserved. ACORD 25 {2014/01) 1 of 1 The ACORD name and logo are registered marks of ACORD #S430827/M398655 JACOH Client#: 2449 JOSEJBLA ACORD.. CERTIFICATE OF LIABILITY INSURANCE DATE (MM(DO(YYYY 2/13/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: if the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER NFP P&C Services, Inc 45 Executive Drive Plainview, NY 11803 516 327-2700 INSURED _... .. Joseph J. Slake & Associates. Inc 425 Broad Hollow Rd.Ste 429 Melville, NY 11747 CONTACTNAME: (Ali Exll. 516 327-2700 E-MAIL ADDRESS 'FAX 516-327-2800 (AEC, Nnt INSURER'S' AFFORDING COVERAGE INSURER A Mitsui Sumitomo Ins. Co. of Ame INSURER B INSURER C INSURER D INSURER E INSURER F NAIL = 20362 COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REOUIREMEN1 TERM OR CONDITION OF ANY CONTRACT DR OTHER DOCUMENT WITH RESPECT TO WHICH TH.: CERTIFICATE MAY BE ISSUED OR MAY PERTAIN THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS EXCLUSIONS AND CONDITIONS OF SUCH POLICIES LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS INSR _ . AODL SUER POLCY EFF5 POLICY EXP ...._ ..................... LTR TYPE OF INSURANCE plgRVryD - POLICY NUMBER J IMRIDIYYYYj 'IMMIDOIYYYY) LIMITS A x COMMERCIAL GENERALLtAB0.TTY Y Y PKG3126559 02/1012017 02/10/2018 EACRIaccgvRRENCE s1,000,000 Ci..AIM .MADE X OCCUR. PRMISES EaEo scree' S 1,000,QOO MEO EXP (Any ona permnl S 10,000 PERSONAL 8 ADV INJURY _ l S 1,000,000 CiN't AGGRECATE. LIMIT APPLIES P.ER GENERAL AGGREGATE s2,000,000 -. X POLICY 1 JE`r --- LOC PRODUCTS -COMPIOPAGG i 52,000,000 OTHER S q. AUTOMOBILE LIABILITY BVR8406231 02/10/2017 0211012018 faMBINc011SINGLE LIMIT 51,000,000 BODILY INJURY IPir peraun) 1 S ANY AUTO ALL OWNED AUTOS __X HIRED AUTOS SCHEDULED AUTOS xNON -OWNED ..T AUTOS A I x UMBRELLA LIAR x OCCuR IEXCESS LIAR CLAIMS.MADE DED X. RETENTION S10000 A WORKERS COMPENSATION ANO EMPLOYERS' LIABILITY ANY PROPRIETOPARTNERIEXECUTIVE Y 1 N P' OFFICER MEMBER EXCLUDED" N . N 1 A (Mnndalla,y In NMI —.... i Y. deecnbe under DESCRIPTION OF OPERATIONS below UMB5700103 WCP9112775 02110/2017 BODILY INJURY (Per accident? S PROPERTY DAMAGE -...... _.s _LPer accident] S 02./10/2018 EACH OCCURRENCE 1_s5,000,000 AGGREGAT'� s5,000,000 '5 12/10/2016 2/10/2017 )1 1TALum [©g" El. EACH ACCIDENT s1,000,000 E.L. DISEASE- EA EMPLOYEEjJ s1,000,000 E.L. DISEASE -POLICY LIMIT 1 51,000,000 DESCRIPTION OF OPERATIONS! LOCATIONS ? VEHICLES (ACORD 101. Addlllon,E Remarks Schedule, may be attached it more apace is required) City of Miami is listed as Additional Insured with respect to General Liability and Automobile Liability arising out of the operations of the Named Insured. All coverages Ii8sted above shall be on a primary and non-contributory basis. CERTIFICATE HOLDER CANCELLATION City of Miami Public Facilities Dept.; Asset Management 444 SW 2nd Avenue, 3rd Floor Miami, FL 33130 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE '. 14,2-, J 1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) 1 of 1 The ACORD name and logo are registered marks of ACORD #S4308241M429674 CABRA US Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Term Definition Source Air Rights The right to undisturbed use and control of designated Appraisal Institute, The air space above a specific land area within stated Dictionary of Real elevations. Air rights may be acquired to construct a Estate Appraisal, 6th building above the land or building of another or to Ed. (Chicago: Appraisal protect the light and air of an existing or proposed Institute, 2015) structure on an adjoining lot. Air rights do not always include development rights. See also transferable development right (TDR). As Is Market Value The estimate of the market value of real property in its Appraisal Institute, The current physical condition, use, and zoning as of the Dictionary of Real appraisal date. (Interagency Appraisal and Evaluation Estate Appraisal, 6th Guidelines) Note that the use of the "as is" phrase is Ed. (Chicago: Appraisal specific to appraisal regulations pursuant to FIRREA Institute, 2015) applying to appraisals prepared for regulated lenders in the United States. The concept of an "as is" value is not included in the Standards of Valuation Practice of the Appraisal Institute, Uniform Standards of Professional Appraisal Practice, or International Valuation Standards. Band of Investment A technique in which the capitalization rates attributable Appraisal Institute, The to components of an investment are weighted and Dictionary of Real combined to derive a weighted -average rate attributable Estate Appraisal, 6th to the total investment (i.e., debt and equity, land and Ed. (Chicago: Appraisal improvements). Institute, 2015) Condominium A multiunit structure, or a unit within such a structure, Appraisal Institute, The with a condominium form of ownership. Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service Appraisal Institute, The (DCR = NOI/IM), which measures the relative ability of a Dictionary of Real property to meet its debt service out of net operating Estate Appraisal, 6th income; also called debt service coverage ratio (DSCR). A Ed. (Chicago: Appraisal larger DCR typically indicates a greater ability for a Institute, 2015) property to withstand a reduction of income, providing an improved safety margin for a lender. Deferred Maintenance Depreciation is the difference between the market value Appraisal Institute, The of an improvement and its reproduction or replacement Appraisal of Real cost at the time of appraisal. The depreciated cost of the Estate, 14th Ed improvement can be considered an indication of the (Chicago, Illinois: improvement's contribution to the property's market Appraisal Institute; value. 2013) PH J. BLAKE AND ASSOCIATES, INC T TE VALJATION ARO CON ULTIttl3 U5 Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Term Definition Source Effective Gross Income (EGI) The anticipated income from all operations of the real Appraisal Institute, The estate after an allowance is made for vacancy and Dictionary of Real collection losses and an addition is made for any other Estate Appraisal, 6th income. Ed. (Chicago: Appraisal Institute, 2015) Effective Gross Income Multiplier (EGIM) The ratio between the sale price (or value) of a property Appraisal Institute, The and its effective gross income. Dictionary of Real Estate Appraisal, 6th 1 Ed. (Chicago: Appraisal Institute, 2015) Entrepreneurial Profit 1. A market -derived figure that represents the Appraisal Institute, The amount an entrepreneur receives for his or her Dictionary of Real contribution to a project and risk; the difference Estate Appraisal, 6th between the total cost of a property (cost of Ed. (Chicago: Appraisal development) and its market value (property Institute, 2015) value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. 2. In economics, the actual return on successful management practices, often identified with coordination, the fourth factor of production following land, labor, and capital; also called entrepreneurial return or entrepreneurial reward. See also entrepreneurial incentive. Equity Capitalization Rate (RE) An income rate that reflects the relationship between Appraisal Institute, The one year's equity cash flow and the equity investment; Dictionary of Real also called the cash -on -cash rate, cash flow rate, cash Estate Appraisal, 6th throw -off rate, or equity dividend rate. (RE - IE/VE, or Pre- Ed. (Chicago: Appraisal Tax Cash Flow/Equity Invested) Institute, 2015) Equity Ratio The ratio between the down payment paid on a property Appraisal Institute, The and its total price; the fraction of the investment that is Dictionary of Real unencumbered by debt. Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATIQN AND CONSULTING US Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Term Definition Source Excess Land Land that is not needed to serve or support the existing Appraisal Institute, The use. The highest and best use of the excess land may or Dictionary of Real may not be the same as the highest and best use of the Estate Appraisal, 6th improved parcel. Excess land has the potential to be sold Ed. (Chicago: Appraisal separately and is valued separately. Institute, 2015) Exposure Time Estimated length of time that the property interest being Uniform Standards of appraised would have been offered on the market prior Professional Appraisal to the hypothetical consummation of a sale at market Practice, 2016-2017 Ed. value on the effective date of the appraisal. External Obsolescence A type of depreciation; a diminution in value caused by Appraisal Institute, The negative external influences and generally incurable on Dictionary of Real the part of the owner, landlord, or tenant. The external Estate Appraisal, 6th influence may be either temporary or permanent. Ed. (Chicago: Appraisal Institute, 2015) Extraordinary Assumption An assumption, directly related to a specific assignment, Uniform Standards of as of the effective date of the assignment results, which, Professional Appraisal if found to be false, could alter the appraiser's opinions Practice, 2016-2017 Ed. or conclusions. Comment: Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. Fee Simple Estate Absolute ownership unencumbered by any other interest Appraisal Institute, The or estate, subject only to the limitations imposed by the Dictionary of Real governmental powers of taxation, eminent domain, Estate Appraisal, 6th police power, and escheat. Ed. (Chicago: Appraisal Institute, 2015) Gross Building Area (GBA) 1. Total floor area of a building, excluding Appraisal Institute, The unenclosed areas, measured from the exterior of Dictionary of Real the walls of the above -grade area. This includes Estate Appraisal, 6th mezzanines and basements if and when typically Ed. (Chicago: Appraisal included in the market area of the type of Institute, 2015) property involved. 2. Gross leasable area plus all common areas. 3. For residential space, the total area of all floor levels measured from the exterior of the walls and including the superstructure and substructure basement; typically does not include garage space. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTIND US Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Term Definition Source Gross Leasable Area (GLA) Total floor area designed for the occupancy and Appraisal Institute, The exclusive use of tenants, including basements and Dictionary of Real mezzanines; measured from the center of joint Estate Appraisal, 6th partitioning to the outside wall surfaces. Ed, (Chicago: Appraisal Institute, 2015) Highest and Best Use 1. The reasonably probable use of property that Appraisal Institute, The results in the highest value. The four criteria that Dictionary of Real the highest and best use must meet are legal Estate Appraisal, 6th permissibility, physical possibility, financial Ed. (Chicago: Appraisal feasibility, and maximum productivity, institute, 2015) 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) Hypothetical Condition 1. A condition that is presumed to be true when it Appraisal Institute, The is known to be false. (SVP) Dictionary of Real 2. A condition, directly related to a specific Estate Appraisal, 6th assignment, which is contrary to what is known Ed. (Chicago: Appraisal by the appraiser to exist on the effective date of Institute, 2015) the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP, 2016-2017 ed.) Insurable Value A type of value for insurance purposes. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, NC. REAL. ESTATE VALUATION AND CONSULTUII US Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Term Definition Source Internal Rate of Return (IRR) The annualized yield rate or rate of return on capital that is generated within an investment or portfolio over a period of ownership. Alternatively, the indicated return on capital associated with a projected or pro forma income stream. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Leasehold Interest The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease, Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Loan -to -Value Ratio (M) The ratio between a mortgage loan and the value of the property pledged as security, usually expressed as a percentage; also called loan ratio or LTV. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Marketing Time An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Market Rent The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (Tls). Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING US Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Terre Definition Source Market Value "A type of value that is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined, such as the following. 1. The most widely accepted components of market value are incorporated in the following definition: The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under duress. 2. Market value is described, not defined, in the Uniform Standards of Professional Appraisal Practice (USPAP) as follows: A type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. Comment: Farming an opinion of market value is the purpose of many real property appraisal assignments, particularly when the client's intended use includes more than one intended user. The conditions included in market value definitions establish market perspectives for development of the opinion. These conditions may vary from definition to definition but generally fall into three categories: 1. the relationship, knowledge, and motivation of the parties (i.e., seller and buyer); 2. the terms of sale (e.g., cash, cash equivalent, or other terms); and 3. the conditions of sale (e.g., exposure in an competitive market for a reasonable time prior to sale). Appraisers are cautioned to identify the exact definition of market value, and its authority, applicable in each appraisal completed for the purpose of market value. (USPAP, 2016-2017 ed.) USPAP also requires that certain items be included in every appraisal report. Among these items, the following are directly related to the definition of market value: • Identification of the specific property rights to be appraised. • Statement of the effective date of the value opinion. • Specification as to whether cash, terms equivalent to cash, or other precisely described financing terms are assumed as the basis of the appraisal. • If the appraisal is conditioned upon financing or other terms, specification as to whether the financing or terms are at, below, or above market interest rates and/or contain unusual conditions or incentives, The terms of above- or below -market interest rates Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING US Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Term Definition Source and/or other special incentives must be clearly set forth; their contribution to, or negative influence on, value must be described and estimated; and the market data supporting the opinion of value must be described and explained. 3. The following definition of market value is used by agencies that regulate federally insured financial institutions in the United States: 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: • Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their own best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and •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. (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994) 4. The International Valuation Standards Council defines market value for the purpose of international standards as follows: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arms length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. (IVS) 5. The Uniform Standards for Federal Land Acquisitions defines market value as follows: Market value is the amount in cash, or an terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal. (Uniform Appraisal Standards for Federal Land Acquisitions)" JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING US Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Term Definition Source Mortgage Capitalization Rate (RM) The capitalization rate for debt; the ratio of the annual Appraisal Institute, The debt service to the principal amount of the mortgage Dictionary of Real loan. The mortgage capitalization rate (Rn,,) is equivalent Estate Appraisal, 6th to the periodic (monthly, quarterly, annual) mortgage Ed. (Chicago: Appraisal constant times the number of payments per year on a Institute, 2015) given loan on the day the loan is initiated. RM = Annual Debt Service/Mortgage Principal Mortgage Debt Service (Ir) The periodic payment for interest on and retirement of Appraisal Institute, The the principal of a mortgage loan; also called total Dictionary of Real mortgage debt service. Generally, the abbreviation Inn Estate Appraisal, 6th refers to the total debt service, whereas mortgage debt Ed. (Chicago: Appraisal service can be used to refer to either the periodic Institute, 2015) payment or the total of the payments made in a year. Net Income Multiplier (NIM) The relationship between price or value and net Appraisal Institute, The operating income expressed as a factor; the reciprocal of Dictionary of Real the overall capitalization rate. Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Net Operating Income (NOI or lo) The actual or anticipated net income that remains after Appraisal Institute, The all operating expenses are deducted from effective gross Dictionary of Real income but before mortgage debt service and book Estate Appraisal, 6th depreciation are deducted. Note: This definition mirrors Ed. (Chicago: Appraisal the convention used in corporate finance and business Institute, 2015) valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization). Net Rentable Area (NRA, Rentable Area) For office or retail buildings, the tenant's pro rata portion Appraisal Institute, The of the entire office floor, excluding elements of the Dictionary of Real building that penetrate through the floor to the areas Estate Appraisal, 6th below. The rentable area of a floor is computed by Ed. (Chicago: Appraisal measuring to the inside finished surface of the dominant Institute, 2015) portion of the permanent building walls, excluding any major vertical penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice. Overall Capitalization Rate (Ro) The relationship between a single year's net operating Appraisal Institute, The income expectancy and the total property price or value Dictionary of Real (Ro = to /Vo)• Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTIN$ U5 Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Term Definition Source Prospective Market Value "As Completed" and "As Stabilized" A prospective market value may be appropriate for the Appraisal Institute, The valuation of a property interest related to a credit Dictionary of Real decision for a proposed development or renovation Estate Appraisal, 6th project. According to USPAP, an appraisal with a Ed. (Chicago: Appraisal prospective market value reflects an effective date that Institute, 2015) is subsequent to the date of the appraisal report. Prospective value opinions are intended to reflect the current expectations and perceptions of market participants, based on available data. Two prospective value opinions may be required to reflect the time frame during which development, construction, and occupancy will occur. The prospective market value —as completed —reflects the property's market value as of the time that development is expected to be completed. The prospective market value —as stabilized —reflects the property's market value as of the time the property is projected to achieve stabilized occupancy. For an income -producing property, stabilized occupancy is the occupancy level that a property is expected to achieve after the property is exposed to the market for lease over a reasonable period of time and at comparable terms and conditions to other similar properties. (See USPAP Statement 4* and Advisory Opinion 17.) (Interagency Appraisal and Evaluation Guidelines) Prospective Opinion of Value A value opinion effective as of a specified future date. Appraisal Institute, The The term does not define a type of value. Instead, it Dictionary of Real identifies a value opinion as being effective at some Estate Appraisal, 6th specific future date. An opinion of value as of a Ed. (Chicago: Appraisal prospective date is frequently sought in connection with Institute, 2015) projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Replacement Cost The estimated cost to construct, at current prices as of a Appraisal Institute, The specific date, a substitute for a building or other Dictionary of Real improvements, using modern materials and current Estate Appraisal, 6th standards, design, and layout. Ed. (Chicago: Appraisal Institute, 2015) Replacement Cost for Insurance Purposes The estimated cost, at current prices as of the effective Appraisal Institute, The date of valuation, of a substitute for the building being Dictionary of Real valued, using modern materials and current standards, Estate Appraisal, 6th design, and layout for insurance coverage purposes Ed. (Chicago: Appraisal guaranteeing that damaged property is replaced with Institute, 2015) new property (i.e., depreciation is not deducted). JOSEPH J. BLARE AND ASSOCIATES, INC. REAL ESTATE VALUATION AN0 CONS'ULTIN& US Sailing Center 17-297-02 GLOSSARY OF VALUATION TERMS Term Definition Source Reproduction Cost The estimated cost to construct, at current prices as of Appraisal Institute, The the effective date of the appraisal, an exact duplicate or Dictionary of Real replica of the building being appraised, using the same Estate Appraisal, 6th materials, construction standards, design, layout, and Ed. (Chicago: Appraisal quality of workmanship and embodying all the Institute, 2015) deficiencies, superadequacies, and obsolescence of the subject building. Retrospective Value Opinion A value opinion effective as of a specified historical date. Appraisal Institute, The The term retrospective does not define a type of value. Dictionary of Real Instead, it identifies a value opinion as being effective at Estate Appraisal, 6th some specific prior date. Value as of a historical date is Ed. (Chicago: Appraisal frequently sought in connection with property tax institute, 2015) appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., "retrospective market value opinion." Sandwich Lease A lease in which an intermediate, or sandwich, Appraisal Institute, The leaseholder is the lessee of one party and the lessor of Dictionary of Real another. The owner of the sandwich lease is neither the Estate Appraisal, 6th fee owner nor the user of the property; he or she may be Ed, (Chicago: Appraisal a leaseholder in a chain of leases, excluding the ultimate Institute, 2015) sublessee. Sum of the Retail Values The sum of the separate and distinct market value Appraisal Institute, The opinions for each of the units in a condominium, Dictionary of Real subdivision development, or portfolio of properties, as of Estate Appraisal, 6th the date of valuation. The aggregate of retail values does Ed. (Chicago: Appraisal not represent the value of all the units as though sold Institute, 2015) together in a single transaction; it is simply the total of the individual market value conclusions. Also called the aggregate of the retail values or aggregate retail selling price. Surplus Land Land that is not currently needed to support the existing Appraisal Institute, The use but cannot be separated from the property and sold Dictionary of Real off for another use. Surplus land does not have an Estate Appraisal, 6th independent highest and best use and may or may not Ed. (Chicago: Appraisal contribute value to the improved parcel. Institute, 2015) Terminal Capitalization Rate (RN) The capitalization rate applied to the expected net Appraisal Institute, The income for the year immediately following the end of the Dictionary of Real projection period to derive the resale price or value of a Estate Appraisal, 6th property. Also called a going -out, exit, residual, or Ed. (Chicago: Appraisal reversionary capitalization rate. Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING US Sailing Center 17-297-02 QUALIFICATIONS OF THE APPRAISER TED ALLEN, MAI Mr. Allen currently holds the position of Managing Partner with the Miami office of Joseph J. Blake and Associates, Inc., at 4000 Ponce de Leon Boulevard, Suite 410, Miami, Florida. Previous positions include Principal (1986 to 2011), Regional Manager Southeast Region (1984 to 1986), Senior Appraiser (1982 to 1983) and Associate Appraiser (1979 to 1981). University of Texas - Austin, Texas Bachelor of Business Administration FORMAL EDUCATION PROFESSIONAL AFFILIATIONS Affiliation Number Florida State -Certified General Real Estate Appraiser No. RZ 426 Georgia State -Certified General Real Property Appraiser No. CG 1855 Appraisal Institute, Designated Member No. 6949 Royal Institution of Chartered Surveyors No. 6329062 CURRENT RESPONSIBILITIES Responsibilities include the preparation and direction of a variety of full narrative real estate appraisals and consulting studies prepared on a national basis. Mr. Allen supervises all staff appraisers and consultants and directs all major assignments throughout the southeastern United States and the Caribbean. APPRAISAL EXPERIENCE Mr. Allen has prepared and directed numerous appraisal and consulting assignments which include mixed - use properties, multifamily developments, proposed and existing condominiums and conversions, office buildings, motels, hotels, industrial properties, regional malls, shopping centers, mobile home parks, market studies, feasibility studies, and investment analyses on a variety of institutional and non - institutional grade real property in over 15 states and 10 Caribbean nations. He has appraised and has supervised appraisals, as well as prepared consulting studies of properties for a variety of public pension funds, large institutional investors, pension fund advisors, insurance companies and banks. Mr. Allen has qualified as an expert witness for Federal Bankruptcy Court in the State of Florida and the State of Georgia and has given oral and written testimony in each. He has also been qualified in Florida State and County Courts. LEADERSHIP AND ADDITIONAL EXPERIENCE Mr. Allen is currently one of three executive committee members managing the operations of Joseph J Blake and Associates. This position oversees all aspects of the firms operations throughout the US. His duties including accounting oversight, IT oversight, marketing, short and long range planning, personnel staffing and budgeting. Positions held at the Appraisal institute include: former service on Chapter Admissions Committee Member, former service on National Admissions Committee, and former service on National Ethics Com mittee. Additional real estate activities include NCREIF and Mortgage Bankers Association functions and service as Special Magistrate Miami Dade County Value Adjustment Board for the 2014 tax year, US Sailing Center 17-297-02 CERTIFICATION RiCst SCOTT. GOVERNOR QUALIFICATIONS OF THE APPRAISER KEN LAWSO i, SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under the prowsrans Or Chapter 475 FS. Explratian date NOV 30 2018 ALLEN. ED EUGENE 4000 PONCE DE LEON BLVD STE 41 CORAL GABLES FL 33146 ISSUED: ttz?t 1e DISPLAY AS REQUIRED BY LAW usSailing Center 1r'zpr-0z QUALIFICATIONS OF THE APPRAISER ALQ0GARCIA Mr. Garcia holds the position of Assistant Director with the Miami office of Joseph J. Blake and Associates, |nc,at4UO0Ponce deLeon Boulevard, Suite 4IC\Miami, Florida. FORMAL EDUCATION University ofFlorida Gainesville, Florida Bachelor of Business Administration REAL ESTATE APPRAISAL EDUCATION Course Name Provider Real Estate Principles and Practices University ofFlorida Real Estate Financial Analysis University ofFlorida Real Estate Valuation University of Florida Real Estate Feasibility University of Florida Real Estate Investment Analysis University ofFlorida Appraisal Techniques & Core Law State ofFlorida Advanced Applications || Appraisal Institute Report Writing and Valuation Analysis Appraisal Institute PROFESSIONAL AFFILIATIONS Affiliation F|oridaState'Certified General Real Estate Appraiser Number No. RZ>267 APPRAISAL EXPERIENCE Responsibilities include preparation of full narrative appraisal and market study reports for a wide variety of property types and purposes, including, but not limited to business parks, office 6u{|6inQx, industrial buildings, shopping centers, traditional and low-income multi -family projects, and vacant land. CERTIFICATION RICK noor\GOVERNOR KEN uwwoowSECRETARY STATE OrFLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL RD LICENSE HUNIONA The CERTIFIED GENERAL APPRAISER Narned below IScsRnF[po Under Mhopnavisionsn/Chanm,47npn Expi,o*�ondote: NOV 3V.zn1w ALDO PONCE4000 LEON BLVD STE 410 CORAL GABLES FL 3.3146 msoeo� 11129t2015