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Appraisal - Armada
Miami Outboard Club 1099 MacArthur Cswy Miami, Miami Dade County, Florida 33132 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 Special Purpose Property Appraisal Report —1 7-0180 Market Rent h Armada Appraisal. & Consulting Company 4w-� 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 Miami Outboard Club located at 1099 MacArthur Cswy, Miami, Miami Dade County, Florida 33132 Dear Mr. Tsigelma: 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. ARKET RENT' CONCLUSIONS citve Date May 5, 2017 Market Rent $13,000 Market Rent FA�erage $156,000 ross Sales -2016 $1,454,280 ctive Rate 10.73% oss Profits - 2016 $1,180,579 Effective Rate 13.21% 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: 1. 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. 10. 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. 1 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. 8. 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 MARKETVALUE DEFINED..... ............ ............ ................... ........ .................................... 3 MARKETRENT 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......................................................................................................5 FACTUALDESCRIPTIONS................................................................................ ...........................8 MARKET DESCRIPTION AND ANALYSIS..................................................................................8 SITEANALYSIS........................................................................................................................10 ZONING... .............. ........................................... ........... - ...... - ................... ........ .......... .... 12 ZONINGMAP...........................................................................................................................12 AERIALPHOTO........................................................................................................................13 SITEMAP...... ....... ......................... ..........................................................................................14 FLOODMAP..............................................................................................................................15 REAL ESTATE TAX INFORMATION.........................................................................................16 IMPROVEMENTS DESCRIPTION.... ..... - .............................. ................. ............. 17 ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER.......................................................20 HIGHEST AND BEST USE ANALYSIS......................................................................................20 SALES COMPARISON APPROACH — COMPONENTS..... .................. ......................................... 21 INCOME APPROACH - COMPONENTS......................................................................................24 FINAL MARKET RENT ESTIMATE.............................................................................................43 ADDENDA....................................................................................................................................46 SUBJECTPHOTOS..................................................................................................................46 ZONINGDATA ADDENDA........................................................................................................60 LEASED PREMISES EXHIBIT. .............................................................. ....... - ...... .............. 64 REGIONAL ANALYSIS...............................................................................................................70 PURCHASE ORDER.. ........... - .............. -- ...... -- ...... - .................................................... ....... - 78 APPRAISERS QUALIFICATIONS..............................................................................................79 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, superior waterfront location in Watson Island; a manmade island situated in Biscayne Bay between mainland Miami and the island of Miami Beach. It is within the jurisdiction of the City of Miami and it is owned by the municipality. Watson Island is crisscrossed by the MacArthur Causeway, a major thoroughfare in the area which connects the City of Miami with the City of Miami Beach. There are two similar not-for-profit operations in Watson Island; the Miami Yacht Club and the Miami Outboard Club. The subject property is operated by the Miami Outboard Club. As a not-for-profit, nevertheless, it is able to generate gross sales (gross revenues) from its various uses and activities, limited by 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 food, beverage and entertainment. Few operate and are regulated via contractual agreements like the Miami Outboard Club. 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 Miami Outboard Club and competitive revenue streams provided by the comparables analyzed. Furthermore, as a result of our analysis of various competitive income streams compared with the existing uses, we recommend that the Miami Outboard Club 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 11 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Client: Property Owner: Intended User: Property Address: Property Type: Inspection Date: Effective Date of Appraisal: Report Date: Property Rights Appraised: Classification of Report and Appraisal Land Size: Dry Land: Submerged Land Building Size AIC: Building Size Open/Utility: Highest and Best Use as Vacant: Highest and Best Use as Improved City of Miami City of Miami Miami Outboard Club 1099 MacArthur Cswy, Miami, Miami Dade County, Florida, 33132 Civic Space/Public Parks/Special Purpose May 05, 2017 May 06, 2017 July 24, 2017 Leased fee estate as to Market Rent Appraisal Report 9.81 Acres 6.88 Acres or 299,693 SF 2.93 Acres or 127,630 SF 9,347 SF 1,527 SF Civic Space/Parks/Open Space -- Marina Operations (Maximize Services) Civic Space/Parks/Open Space — Marina Operations (Maximize Services) MARKET RENT GONGLUSI4NS Effecitve Date May 5, 2017 Monthly Market Rent $13,000 Annual Market Rent $155,000 Average Gross Sales -2016 $1,454,280 Effective Rate 10.73% Average Gross Profits - 2016 $1,180,579 Effective Rate 13.21% Exposure Time — Is not considered applicable for this valuation assignment Page 12 EFFECTIVE DATE OF THE APPRAISAL/DATE OF THE REPORT INSPECTION DATE: May 05, 2017 EFFECTIVE DATE: May 06, 2017 DATE OF THE REPORT: July 24, 2017 PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market rent for the property, as of the appraisal date_ 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 4tn 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: 01-3231-000-0013 Legal Description: Please see attached survey. SALES HISTORY No transfers of title are known to have occurred over the past three years. Page 14 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.} SCOPE OF THE APPRAISAL In preparing this appraisal, the appraiser inspected the subject property and reviewed the Miami Outboard Club, Inc. Lease Agreement dated June 14, 1996; with an expiration date of March 31, 2016 containing two (2) subsequent and additional five (5) year periods. In addition we have reviewed Amendment No. 1 dated December 5th, 2000, Amendment No. 2 dated June 6"', 2005, Amendment No. 3 dated May 24th, 2011 and Amendment No. 4 dated June 4th 2013. Page 15 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. raisal Problem Defined and Addressed The property that is the subject of this report consists of an incomparable, superior waterfront site in Watson Island. The subject property is operated by the Miami Outboard Club, under lease agreement with the City of Miami, the lessor. The lessee — Miami Outboard Club — 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 over 70 years the Miami Outboard Club has operated from Watson Island. As of the time of inspection the Miami Outboard Club operated like 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 as well as food, beverage and entertainment. In addition, the Miami Outboard Club 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 on three (3) occasions, and three (3) others for public events as designated by the Miami City Commission, upon available dates. Making the facilities available for at least six (6) events per year permits the Miami Outboard Club to receive Community Service Credits, at $5,000 per event. The value of the six Community Service Credits shall be totaled and averaged over a period of one Lease Year to arrive at an "Average Monthly Community Service Credit", which amount is to be deducted from the Base Monthly Rent. The appraisal assignment is to estimate market rent pursuant to the current and existing uses present in the Miami Outboard Club operation. Given the context within which the current and existing uses are present within the demised premises, the Miami Outboard Club's operation is surmised to be a marina operation, in that it has components like marine storage and services as well as food, beverage and entertainment. The categorization of the Miami Outboard Club 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 Page 16 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 operations similar to 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, 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 17 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 geography 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 — 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 18 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 Name Address Folio Wet Slips Dry Slips Moorings Amenities Location Operator Loggerhear Marina Avanlura 3601 NE 207 Street 28-1235-0350040 100 0 Aventurd Loggerhead Minna hliamarma at Bayside 401 Syscayne Bluf 01-010D-000-0520 156 0 fart of Bayhont Park Rause Company Pelican Harbour Marina 126 75 NE 79 Street 01-3208-031-0010 139 0 Pelican Harbor Perk Miami Dade County Miami Yacrit Club 1001 MaArlhur Cswy 01-3231-NOi-0011 40 112 Watson Island Miami Yacht Club Miami Outboard Club 1099 MacArthur Cs%rry 01-3231-000-0013 59 140 Lb'alson island Miami Outboard Club Island Garden Deep Harbour 838 MacArthur Cs%,y 01-3231-000-0030 50 0 Restaurant N"atson Island Island Garden Deep Harbour Brikcell Place Manna 1909 Snckell Ate 01-4112-000-0010,20 70 D Leased Submerged Bnckeli P€ace Condo Coconut Grote Sailing CILIA 29W S Bayshore Drte 01-4121-040-0012 247 31 Leased Submerged Coconut Grow Sailing Club US Sailing CCub 2476 S Bayshore Dnte 014122-001-1591 11 44 Leased Upland VS Sailing Club Coral Reef Yacht Club 2484 S Bayshore Dnre 014122-001-1605 103 66 Leased Submerged Coral Reef Yacht Club Biscayne Bay Yacht Club 2540 S Bayshore Drive 01 -4122 -WO -0010 76 47 Leased Submerged Biscayne Bay Yacht Club Prime Manna 2546 S Bayshore Drize 014122-101-1630 149 0 Monty"s Leased Submerged Prime Manna Dinner Key 3500 Pan American Dr 01-0122-002-001fl 801 0 225 Dinner Key City Hall City of Miami Grote harbour Manna 2640 S Bayshore Dr 01-7122-012-0011 57 260 Dinner Key Leased Up -Sub Grote Barbour Manna Grove Key Maria 3385 Pan Amencan Dr 017122-002-3040 3 325 Dinner Key Leased Up -Sub Grote Key Marina Marine Stadium Marina 3501 Rickenbacker Csvey 01 -0217 -CCC W30 22 296 Virginia Key Leasers upland Marme Stadium Manna Rickenbacker Manna 3301 Rokenbacker Cs•,q 01-0217-000-0020 Virginia Key Leased Up -Sub Rickenbecker Marina Miami Beach Marina 344 Alton Road 024203.609-9210 416 0 MB Redewfopment Leased upland City of Miami Beach Matheson Hammock Mama MA 03-5105-0010-0310 259 71 Restaurant Coral Gables City of Canal Gables Snapper Creek Manna. 11150 Snapper Creek Lakes Rd 03-5107.ON-0290 36 31 Fuel Coral Gables Snapper Creek Lakes Club Key Biscayne Yacht Club 180 Haw Drive 24-4232-00"021 100 40 Key Biscayne Key Biscayne Yacht Club Bill Bird Manna at Haulover Parc 15609 Collins Ave 30-2214-008-0010 152 0 Hauloter Park Miami Davie County Crandon Park Marina 7263 Crandon Slue 30-4232-0Df-0010 311 130 Yes Restaurant Key Biscayne Miami Dade Bounty Black Point Manna 24775 SW 87 Atenue 30-6022-000-0030 196 300 Homestead Loggerhead Mina Homestead Baufront Paik Manna 9698 SSV 328 Street 30-7021-0001-0010 173 60 Homestead Miami Dade County Page 19 SITE ANALYSIS Address: Fonio Number: Land Area: Dry Land Area: Submerged Land Area: Total Land Area: Primary Road Frontage: Access: Shape: Corner Lot.- Visibility: ot:Visibility: Paved Street: Sidewalk: Curb And Gutter: Storrs Sewer: Utilities Public Electricity: Water Supply: Public Sewer.- Natural ewer: Natural Gas: Underground Utilities: Adequacy of Utilities: Street Lighting: Traffic Count: Landscaping: Topography: Flood Plain: 1099 MacArthur Cswy Miami, Miami Dade, Florida, 33132 01-3231-000-0013 (Dry) 299,693 SF 6.88 Acres 127,630 SF 2.93 Acres 427,323 SF 9.81 Acres MacArthur Cswy MacArthur Cswy. Irregular No MacArthur Cswy & Biscayne Bay. Yes No No Yes Yes Municipal Public Yes No Yes Average Yes 17,000 daily cars - 2016 Average Basically Level The Flood Insurance Rate Maps, published by the Federal Emergency Management Agency panel number 12O86CO316L 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 110 Earthquake Zone: No Irrigation Water: No Easements/Encumbrances: No Environmental Issues: UIK 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. Topographical and Soil Conditions: 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. Functional Utility: All 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: Site improvements, in addition to the structural footprints, include asphalt areas for vehicular maneuverability. Comments: The land(s) as reported herein are considered the correct figures, and emanate from the areas defined under Amendment No. 3, dated May 24th, 2011. Page 111 ZONING Zoning: CS, Civic Space Parks Legally Conforming: Yes Zoning Change Requested: No Likely: 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 CS s 1 I Page 112 Aerial Photo — Partial he area depicted above is pursuant to the public records of the Miami Dade County Property A raiser's Office, not as described in Amendment No. 3, dated May 24 2011. Page 113 Site Map — Partial i he area depicted above is pursuant to the public records of the Miami Dade County Property A raisers Office, not as described in Amendment No. 3, dated May 24 2011. Page 14 Flood Map ZONE E 32AEa Page 115 FIRM w l' 00 POLROCE PATE W :biz it€C-€b:k9�iroC€�Ci'�'1'SF. PANEL 31t O 1031 Y -,: MAP R f 12 0316L C, SEPTEMBER 11, ZW9 , -- - Fx,frr� k�arr� �.acrnt:xnrs' Page 115 REAL ESTATE TAX INFORMATION A summary of the assessment of the subject is provided in the following tables. ASSESSMENT & TAXES - TAX YEAR 2016 Parcel 1 Tax Parcel #. 01-=3231-000-0013 , Market Value i Assessed Land Value $1,246,686; Assessed Building Value $253,314 10therValue $0 Total Assessed Land Value $1,246,686 City Tax Rate 0,00000% County Tax Total Assessed Building Value ;$253,314 Rate 2.18250% Total Estimated Other Value `$0 Other Tax Rate 0.00000% Combined 218250% Total Assessment $1,500,000 Rate .....,...... ................ Assessment Ratio 45.45% Total Tax Amount $14,879 Total Assessment/GBA $1.59 Total-Assessment/Acre $3,119 he area described in the table is pursuant to the public records of the Miami Dade County PropertyA raiser's Office, not as described in Amendment No. 3, dated May 24' 2011. Page 116 GENERAL IMPROVEMENTS DESCRIPTION Property Type Special Purpose No. of Buildings 1 Gross Building Area 9,347 Generaf Property Class B Land to Building Ratio 2223:1 Effective Age 10 Economic Life 60 Depreciation 16.70°l Parking Type Surface Condition of Parking Average Bld Component Desc Bldg/Cum ponent 1 Year Built 1958 Effective Age 10 Total Economic Life 50 Rernaining Economic 40 Building Type Single Story Building Description CBS Stories t Building Area SF 9.347 Floor Coverings Vynif/Crmc Ceiling Height 12 Basement Use None Appeal and Appearance Average Condition Good Construction Detail Construction Class B Construction Quality Average Frame Type iViasonryFrame, Roof Type Flat Roof Cover Tar and Gravel EXterior wails Concrete Block Mechanical Detail Plumbing Average Heating Type Electric Cooling Type Package Units Electrical Average The subject property consists of one principal structure, which details are reported above, containing 9,347 square feet of gross building area (GBA) based on our measurements taken at the time of inspection. According to the records of the Miami-Dade County's Property Appraiser's Office, the subject property has a total of 9,530 adjusted square feet (ASF) of building area and is situated on 207,781 square feet of net land area, or 4.77 acres. The land as reported in the public records we know to be incorrect pursuant to Amendment No. 3, dated May 241h 2011. There were other structures on the premises, including a utility building containing bathrooms, as well as a repair shop and storage. There were assortments of covered open buildings like a fish cleaning station, cheekke huts, and dining areas. All together there was an additional 1,527 square feet of ancillary structures. In addition the subject property has a wood deck marina containing 50 wet slips for boat dockage on the submerged land which is under its lease agreement and amendments. Considerable sections of the dry land governed by the lease agreements is used and occupied for the purposes of dry storage, particularly the land mass that extends along and fronts the MacArthur Cswy. Page 117 Sketch of Building Improvements fh1h W' Page 18 Calculation of Building Improvements Page 119 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 club house building in the upland as well as the existing uses of the submerged land. 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 club house and related uses - renders an invaluable service to the community at large. AS VACANT and AS IMPROVED: Civic Space/Parks/Open Space — Restaurant (marine related food and alcohol service establishment). Page 120 SALES COMPARISON APPROACH TO VALDE 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 Miami Outboard Club operation. The Miami Outboard Club 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 and services as well as food, beverage and entertainment. As stated earlier, this categorization of the Miami Outboard Club operation as a marina — notwithstanding its riot -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 121 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 OBR 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%112017 Address County f=olio Wet Slips Dry Slips Land OER SP SP/Siip SPJAcr OAR 160INE 207 Street Miami Dade 28-1235-035-0040 100 0 16.71 18.88% $4,300,000 $43,000 $257,331 7.09% 2400 Marina Drive Sroward 5142-23-15-0330 190 0 9.0 40.41% $14,970,000 $78,789 $1,663,333 7.28% 3 32738 asseekey 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% 4870 . Dixie Hwy Palm Reach 40 43-44-34-030 0103 (3030 0 350 5.50 43.�3i � $12,800,000 $36,5711$2,327,273 7.21% 5 270C)Donald Ross Road Palm Beach 1.30 0 11.80 43.72% $9,310,000 $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 -OXO so 0 1.20 44.69% $3,200,000 $40,000 $2,666,66717.28% 8 24775 SW 87 Avenue Miami Dade 30-6022-000-0030 196 300 41.46 x1,0.67% $1.5,000,000 $30,242 $361,79517,05%, Page 122 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 items 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 I Leasehold No. Address County Name Gross Sales CDG Sold Gross Profits Lease Pymnt °/a LPyrnnt/Profits 1 3601 NE 207 Street Miami Dade Loggerhear Marina Aventura $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 4.835/o 3a 247755W 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 $G, 634,6651 $0 $6,634,6651 $493,776 7.44% Page 123 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 Miami Outboard Club is classified as a marina operation. Its operation includes components like marine storage and services as well as food, beverage and entertainment. As stated earlier, this categorization of the Miami Outboard Club 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 124 Analysis of Contract Rent — Subiect Tenancy - Contract Rent Arrangement and Actual Rents We have reviewed the Miami Outboard Club, Inc. Lease Agreement dated June 14, 1996; with an expiration date of March 31, 2016, and containing two (2) subsequent and additional five (5) year periods. In addition we have reviewed Amendment No. 1 dated December 5th, 2000, Amendment No. 2 dated June 6th, 2005, Amendment No. 3 dated May 24th, 2011 and Amendment No. 4 dated June 4th, 2013. In consideration for the permitted uses, pursuant to the compilation of the lease arrangements (lease agreement and amendments), the Miami Outboard Club, pays the City of Miami an initial minimum monthly rent payment of $5,417-1 the base monthly rent. In addition, the Miami Outboard Club is to pay the City of Miami 10% of the "gross restaurant revenues" in excess of $10,000 (base restaurant revenues). Gross restaurant revenues are defined in the lease agreement to mean: "...the entire amount of the revenues and/or percentages of revenues collected or accrued, from the sale of all food and beverages (excluding alcoholic beverages), conducted on the property". The Miami Outboard Club as a not-for-profit lessee is required to make the facilities available at least for six (6) events per year to provide recreational and educational activities. As a result of making the facilities available to the public, the Miami Outboard Club receives Community Service Credits, at $5,000 per event. The value of the six Community Service Credits totaled and averaged over a period of one Lease Year is the "Average Monthly Community Service Credit" — presently calculated at $2,500 per month - which amount is to be deducted from the Base Monthly Rent. Adjustment to both the base monthly rent and the community service credit were initially entertained to be subject to annual CPI adjustments, and later on through amendments such requirement was modified. The Miami Outboard Club provided historic gross revenue information for the last three fiscal years, commencing in April and ending in March 15 of the ensuing year. Annual gross revenues, as defined, have generated volumes of sales per line item. We have been provided for our review with actual monthly payment reports entitled Monthly Rent and also with actual monthly payment reports entitled Base Restaurant Revenue M Rent) for the Miami Outboard Club, for the use of the premises based on the terms of the lease agreement and subsequent modifications, and presumably currently in operation. A compilation of the payment made to the City of Miami is reported in the following table with the heading: Compilation of Payments Reported to City of Miami and Due per Independent Audits. Accordingly, the Miami Outboard Club has paid the lessor — City of Miami - monthly rent in the amount of $57,847.08 for the years ending in April 2015 and 2016 and $57,116.52 for the year ending in April of 2017. In addition, the Miami Outboard Club has paid the lessor based on 10% of the gross sales from the restaurant and non-alcoholic beverages in excess of $10,000, $23,035*, $26,127.55* and $27,802.18, respectively for the years ending in April 2015 through 2017 (*partially estimated). This last income stream has been independently audited, and the results were provided for review via Financial Statements prepared by Cervetta-Lapham & Associates for the year ending in March 31, Page { 25 2015 and Pribramsky & Company for the year ending March 31, 2016. According to the referenced audits the payments to the city were supposed to be $17,597 and $29,173 for the years ending at the end of March of 2015 and 2016, respectively. With minor differences, which were likely reconciled at some point, the audited figures supported those reported by the Miami Outboard Club to the city. In total the City of Miami, using the reports presented by the Miami Outboard Club for review, has received rents for the permitted use allowed the tenant within the demised premises in the amount of $80,882, $83,975 and $84,919, respectively, for the years ending in April 2015 through 2017. This is illustrated in the following tables, the columns to the left of the solid line are based on the monthly statements and the columns to the right of the solid line reflect the audited figures for the referenced years. Page 126 Compilation of Payments Reported to City of Miami and Due per Independent Audits Constants $10,000 10.00% $10,000 10.00°/ Monthly Tabulations Financial Statements Months P mnt Dt Period K $ Non -A Less Base P rant Eff % P mnt Dt Mnthly Rnt Rest+Mnthl K & Non -A Less Base P rnnt Eff % 4/17 4!6!2017 $4,729.27 12 3117 $35,000 $25,000 $2,500.00 3/212017 $4,729.27 $7,229.27 11 3124/2017 2117 $32,898.06 $22,898-06 $2.289.81 6.96% 2/1412017 $4,729.27. $7,019.08 10 2/16/2017 1117 $30,200.84 $20,200.84 $2,020.08'6.69% 1/9/2017 $4,729.27 $6,749.35 9 1/23/2017 12116 $44.014,70 $34,014.70 $3,401.47 7.7Y/ 1212612016 $4,729.27 $8,130.74 8 1123/2017 11116 $26,562.73 $16,56Z73 $1,656.27 6.24% 11/1712016 $4,729.27 $6,385.54 7 11/26/2016 10116 $36,485,21 $26,4B5.21 $2,648.52 7.26% 1011712016 $4,729.27' $7,377.79 6 1012412016 9116 $27,48298 $17,482.98 $1,748.30 6.36%u 9/1512016 $4,729.27; $6„477.57 5 10!17!2016 8116 $28.88332 $18,863.32 $1,888.33 6.54%u 8/15/2016 $4,729.27 $6,517.60 4 8!1512016 7116 $32.832.78 $22,832.78 $2,283.28 6.95% 7/7/2016 $4,820.69 $7,103.87 3 7/26/2016 6116 $28.24262 $18,242.62 $1,824.26 6.46%u 6/812016 $4,820.59 $6,544.85 2 712612016 5116 $37.082.14 $27,082.14' $2,708.21 7.30% 5/101156 $4,820.59 $7,528.80 1 7/21/2016 ! 4116 $38.336.39 $28,336.39. $2,833.64 7.39% 4/18/2016 $4,820.59 $7,654.23 12 Months 3117 - 4/16 Sub -Total -Rest A,mra a Restaurant $398,021.77 $278,021 77 $27,802.18 6.99% $33,168.48 $23,16848 $2,31685 699% Totat $57,116.52 $84,918.70 $7,077 12 7/21/2016 3116 $31,450,20 $21,450.20, $2,14902 6.82%u 31812016 $4,820.59 $6,965.61 $43,420.00 $33,420.00 $3 342.00 7.70% 11 7I21/241f 2116 $27,314,05. $17,314.05' $1,73141 6.34% 213/2016 $4,820.59 $6,552.00 $25,599.00 $15,599.00 $1,559.90 6.091/. 10 6122/2016 1116 $30,239,50: $20,239.50 $2,023-95 6.69% 1/5/2016 $4.820.59 $6,844.54 $35,123.00 $26,123.00 $2,612.30 7.23% 9 6122/2016 12/15 $38,024,48. $28,024.48 $2,802.45 7.37%u 12/2T2015 $4,820.59 $7,623.04 $38,024.00 $28,024.00 $2,802.40 7.37% 8 6114/2016 11115 $22.02602 $12,025.02' $1,20260 5.46% 11/9/2015 $4.820.59 $6,023.19 $22,586.00 $12,586.00 $1,258.60 5.571/. 7 3/29/2016 10115 $29,795.59 $19,795.59 $1,979.56 6,64%u 11/112015 $4,820.59 $6,800.15 $29,796.00 $19,796.00 $1,979,60 6.64% 6 11/912015 9115 $24,221,45 $14,221,45' $1,422.15 5.87%u 9/21/2015 $4,820.59 $6,242.74 $24,221.00 $14,221.00 $1,422,10 5.871/o 10/3012015 8115 $32,469,66' $22,459.66 $2,246.97 6,92% 8/2512015 $4,820.59 $7,067.56 $33,996.00 $23,996.00 $2,399.60 7.061/o 4 8/2612015: 7115 $36,936,52 $26,935.52 $2,693,65 7,29% $4,820.59 $7,514.24 $36,937.00 $26,937.00 $2,693.70 7.29% 3 7129/2015 6/15 $37,739.44 $27,739.44 $2,773.94 7.35% 611512015 $4,820.59 $7,594.53 $39,143.00 $29,143.00 $2,914.30 7,45% 2 5115 $35,000 $25,000 $2,500.00 5111/2015 $4,820.59 $7,320.59 $45,821.00 $35,821.00 $3,582.10 7,82%n 1 6122/2015 4/15 $36,058.55' $26,058.55 $2,605.86 7.23°/ 4116/2015 $4.820.59 57,426.45 $36.059.00 $26,059.00 $2,605.90 7,23% 12 Months 3116 - 4115 Sub -Total -Rest Average Restaurant $381,275,46 $31,77296 $261,275.46 $26,127.55 6.85% $21,772.96 $2,177.30 6.85% Total $57,847.08 $83,974.63 $6,998 $411,725.00 $291,725.00 $29,172.50 $34,310.42 $24,310.42 $2.431.04 7.09%n 7.09% 12 4116/2015 3115 $36,502.67 $26,502_(57 $2,650,27,7.26% 3110/2015 $4,820.59 $7,470.86 $36,503.00 $26,503.40 $2,650.30 7.26% 11 312312015 2115 $26,804.45 $16,804.45 $1,680,45 627% 2/1612015 $4,820.59 $6.501,04 $26,804.00 $16,804.00 $1,680.40 6.27%v 10 3/23/2015 1115 $30,692.53 $20,692.53 $2,069.25 674% 1115/2016. $4,B20.59 $6,889.84 $30,687.00 $20,687.00 $2,068.70 6,74% 9 2/1012015 12114 $31,897.59 $21,897.59 $2,18976 686% 12/812014 $4,820.59 $7,010.35 $35,028.00 $25,028.00 $2,502.80 7.15%u B 2/1012015 11114 $21,254.54 $11,254.54 $1,125.45 5.30%, 1112412014 $4,820.59 $5,946.04 $31,661.00 $21,661.00 $2,166.10 6,84%u 7 111512015 10114 $20,465.21 $10,46521 $1,046.52 5.11% $4,820.59 $5,867,11 $27,465.00 $17,465,00 $1,746.50 6.36% 6 111512015 9114 $20,107.02 $10,107,02 $1.010.70 5.03% $4,820.59 $5,831.29 $20,107.00 $10,107.00 $1,010.70 5,03% 5 1013112014 8114 $28,238.43 $18,238.43 $1.823,84 6,46% $4,820.59 $6,644.43 $28,328.00' $18,328,00 $1.832.80 6.470% 4 10!31/2014 7114 $29,385.67 $19.385.67 $1.938.57 6.60% $4,820.59 $6,759.16 $29,386.00 $19,386,00 $1,938.60 6,60% 3 5114 $35,000 $25,000 $2,500.00 $4,820.59 $7,320.59 $36,313.00 $26,313.00 $2.631,30 7,25% 2 5114 $35,000 $25,000 $2,500.00 $4,820.59 $7,320.59 $52,737.00 $42,737.00 $4,273.70 8,10% 1 4/14 $35,000 $25,000 $2,500.00 $4,820.59 $7.320.59 $33,358.00 $23,35800 $2,335.80 7.00% 9 Months 3115 - 4/14 Sub -Total -Rest Acer a Restaurant $350,348.11 $230,348.11 $23,034.81 6.57°! $29,195.68 $19,195.68 $1,919.57 6.570/ Total $57,847.08 $80,881,89 $6,740 $388,377.00 $175,969.00 $17,596.90 $32,364.75 $19,552.11 1 955.21 4.53% 6. A Page 127 One first point to note is that while the Miami Outboard Club pays the city reportedly on the basis of 10% of the gross restaurant revenues, because this applies only to the excess set by a prescribed threshold (base) of $10,000 per month, the true effective overage percentage rates for the years 2015 through 2017 were 6.57%, 6.85% and 6.99% respectively. For instance, for the year ending in March of 2017, from the total gross restaurant revenues of $398,022, the lessor received $27,802, or 6.99%. [Details of Calculations (1): $27,802 - $398,022 = 6.99% This of course is only when considering the sales derived from the kitchen operation and non- alcoholic beverages. Were we to consider all of the income generated from the operation of food and beverage on the demised premises, the percentage return is much less. Another point is that overage percentage rates are applicable only to gross restaurant revenues, which is defined as "...the sale of all food and beverages (excluding alcoholic beverages),.-" Other sources of revenues for which the lessee is allowed to collect for the use of the premises, does not entitle the lessor to receive percentages from the volume of sales. This is evident through a review of the above mentioned Financial Statements, which report income streams to the Miami Outboard Club for membership, bar, rental income (boat storage), parties & events in addition to restaurant. As can be seen in the table immediately below, for the years ending in March 2015 and 2016, the Miami Outboard Club, had sales volumes of $1,522,047 and $1,454,280, with gross revenues of $1,392,757 and $1,300,579, respectively, yielding overall effective rates to the city in rents of 5.81%a and 6.46% of the gross revenues. For instance, for the year ending in March of 2016, from total gross revenues of $1,300,579, the lessor received $83,975, or 6.46%. DetaHs of Ca[culations (2): $83,975 - $1,300,579 = 6.46% Payments to City versus Revenues per Financial Statements (Statements of Activities) Income Stream 3/31/2017 3/31/2016 3/31/2015 3/31/2014 Income Membership $416,552 $492,222 $446,075 Restaurant $339,433 $318,571 $348,625 Bar $237,763 $228,244 $260,028 Rental Income $361,202 $383,075 $391,047 Parties & Events $99,330 $99,935 $107,254 Sub -total $1,454.280 $1,522,047 $1,553,029 Credits Comm Sery $47,693 $47,693 $46,945 Contributions $106,008 $81,597 $64,015 Sub -total $153,701 $129,290 $110,960 Gross Revenues $1,300:579 $1.392,757 $1.442.069 Payments Rent Payments $84,919 $83,975 $80,882 % Rent Payments 6.46% 5.81% Page 128 The tables presented in the previous pages indicate that rent payments by the Miami Outboard Club to the City, have been about $7,000 per month, or 6.46% of the total gross revenues from all of the permitted uses and revenues streams in the leased premises. Details of Calculations (3): $83,975 � 12 = $6,998 The table immediately below is provided only as an accessory to illustrate the different sources of data and how they interrelate. For instance, for the year 2016, on the table presented on page 34 the total figure reported for the kitchen and non alcoholic beverage is $381,275. To this figure the allowance of $120,000 has to be deducted resulting in a figure of $261,275, when applying the nominal percentage rent rate of 10% the rent payment to the landlord — City of Miami — is determined to be $$26,128. In this way we can tie together the restaurant proceeds (kitchen and non-alcoholic beverages) based on the monthly reports, with the two figures presented in the financial statements. Year 3/31/2017 1 3/31/2016 3/31/2015 income Stream Monthly Tabulations Monthly Tabulations Income Statements Monthly Tabuiations Income Statements Schedule of % Rent Statement of Activities Schedule of % Rent I Statement of Activities per Reports per Reports per Reports Income Membership $416,552 $492, 222 Restaurant $398,022 $381,275 $411,725 $339,433 $350,348 $388,377 $318,571 Bar $237,763 $228.244 Rental Income $361,202 $383,075 Parties & Events $99,330 $99,935 Sub -t ata# $1,454,2801 $1,522,047 Credits Comm Sery $47,693 $47,693 Contributions $106,008 $81,597 Sub -total $153,701 $129,290 Gross Revenues $1,300,579 $1,392,757 Payments from Monthly Reports % Only $27,802 $26,128 $23,035 6.99% 6.85% 6.57% Payments from Monthly Reports %4 + Minimum Rent Payments $84,919 $83,975 $80,882 % Rent Payments 6.46%q 5.81% Page 129 Analysis of Market Rent Market rent is defined by The Dictionary of Real Estate Appraisal, 4`h 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 lease 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.- 1. hereby: 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 130 RENTAL COMPARABLES Rental 1 Property Name - Red Fish Grill 1 Hammack Marina Location Data Location: 9610 Old Cutler Road, 913012015 Coral Gables, FL 33156 County: Miami Dade Folio No: 03-5105-000-0010 Physical Data $55,475.91 Property Type: Special Purpose Usable Land Area NIA Rentable Area 3,375 Year Built: 19305 No. of Stories: One Property Condition: Good Lease Data Confidential Lease: No Confirmed By: AJA Confirmed With: Miami Dade County Comments Red Fish Grill 6% of Receipts Bait & Tackle Shop 6% of Receipts B & T Gasoline $0.051 Gln Period -12 Months 913012016 913012015 9130/2414 9/3012013 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 $1,889,418.33 Lease Percentage % 6.00% 6.00% 6.00% 6.00% Rent to Il+tiami Dade County $118,000.78 $131,256.78 $124,588.37 $113,365.10 Bait & Tackle Shop $85,450.68 $90,000.68 $88,05428 $79,373.54 Less Adjustments $18,560.47 '520,365.28 $29,477.14 $28,979.48 Total Gross Receipts $66,890.21 569,635.40 $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 l 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 $0.05 $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 / Totai GR 6.63% 6.55% 6.56% 6.55% Page 131 Rental 2 Property Name - Coconut Grove Sailing Club Location Data Location: County: Folio No Physical Data Property Type: Usable Land Area Rentable Area Year Built: No. of Stories: Property Condition Lease Data Confidential Lease Confirmed By! Confirmed With: Comments 2990 South Sayshore Drive, Miami, FL 33133 Miami Dade 01-4121-040-0012 Special Purpose 19.55 Acres 9,610 GBA 1981 Two Good No AJA City of Miami Membership Dues $348,397 Mooring/Boat Storage $532.5891 Bar $372,440 Kitchen $321.460 Facility Operations (FOM) $362,997 Committees $111.747 Income Year f Period Revenue Streams 2013/2014 2014/2015 2015/2016 201612017 Dues $244,180 $265,152 $371,346 $348,397 Facility Operations & Maintenance (I=OM) $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 $289,8891 $181,407 Effective Rate I 10.94% 1 11.49%1 14.04%1 8.82% Data derived from CGSC Revenue Table - Payments based on greater of minimum or percentage rent. Page 132 Property Name - Miami Yacht Club Location Data Location: 1001 MacArthur Cswy, Miami, FL 33132 County: Miami Dade Folio No: 01-3231-000-0011 Physical Data Property Type: Special Purpose Usable Land Area 2.7 Acres Rentable Area 7,713 ASF Year Built: 1947 No. of Stories: Two Property Condition: Average Lease Data Confidential Lease: No Confirmed By: AJA Confirmed With: City of Miami Comments Rental 3 Membership Dues Wet/Dry Boat Storage Restaurant & Beverages Meeting Room Rentals Income Year f Penod Income Stream 3131/2017 Membership 5220,183 Initiation Fees $26.815 Restaurant & bewrages 3491.944 Rental Income - Q Slips &111,675 Rentat Income - Wet Slips 5160,347 Rental Transient $8,576 Nietting Room Rentals $10.486 Parkin Fees $7.509 Ship Store Merchandise $341 Sub -total - Gross Sales $1.037,876 Payments from Percentage Monthly Tabluanons per Reports $1,037.876 Threshold Allowance S360,000 Gross Profits $657,876 Owrage Perctange 9.00% 0,,era a Payment 559.209 Effective Rate 5.74% Payments from Monthly Reports % Only Restaurant Owrage Payment $59,249 Effective Rate 5.70% Minimun. Rent Payments Annual€zed $48.545 Payments tram Monthly RepoRs % + Minimum Rent Payments Total Rent Payments $147,773 Effect % Total Rents! Gross Sales 10,38% Effect % Total Rentsl Gross Profits 16.37% Figures derived from Financial Statements / Statement of Activities $2800 & $1204 $13 & $8Jmnth/Ft. $491,944 $10,486 Page 133 Rental 4 Property Name - U.S. Sailing Center Location Data Dry Land Area Location: 2476 S. Bayshore Dr. N/A Miami, FL 33131 County: Miami Dade Folio No: 01-4122-001-1591 Physical Data Property Type: Special Purpose Dry Land Area 1.76 Acres Submerged Land N/A Rentable Area 5,562 ASF Year Built: 2002 No. of Stories: Two Property Condition: Good Lease Data 534,675 Confidential Lease.- Confirmed ease:Confirmed By: Confirmed With: Comments No AJA City of Miami Membership Dues Wet/Dry Boat Storage Food & Beverage Program Fees N/A $4.58 - $10.83 N/A $34,775 Page 134 Income Statements Summarized Summarized Summarized Income Stream 9/30/2017 9/3012016 9130/2015 9/30/2014 Income Subject to % tent Boat Stora e fees $179,030 $163,800 $155,707 Program Fees 534,675 $33,000 $32,918 Boat Rental $4,775 $5,750 $3,500 Soda Sales 5224 $475 $290 Miscetlanecus S8,991 _ $17,866 56,177 Sub -total a Gnus Sales $227,695 $220,890 $198,593 Threshold -584,000 -580,000 -$80,000 Sates Subject to Rent Grass 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% 6.380 5.97% Receipts Not Subject to % Rent Donations $12,200 $119,8co $14,506 Dividend 8 Interests 5391 5147 $0 Sub -total $12,591 $119,947 $14,505 Sales Subject to Rent S0 $0 $0 Payment from Monthd Re its Month! Minimum Rent P rants 51,022.841 $1,020.501 S1,130T141 5984 Minimum Rent Payments 1 $12,2741 $12,2461 $12.0861 $11,810 Rent Payment to City Total Rent Payments $27,0161 $26,175 $23,669 Effect % of Total Rents / Gross Safes 11.86% 11.85% 11.92% Effect % of Total Rents f Gross Profits 18.29%1 18.58%1 19.96% N/A $4.58 - $10.83 N/A $34,775 Page 134 Rental 5 Property Name - Black Point Marina Location Data Location: 24775 SW 87 Avenue, o, 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 7% 7.46°I° 7.44% Lease Data Confidential Lease: No Dry Storage $1,537,897 Confirmed By: AJA Restaurant Sales $4,996,010 Confirmed With: Miami Dade County B & T Gasoline $0.051 Gln Comments Income Year 1 Period Revenue Streams 9!30!2014 9130/2015 9!3012016 Boat Storage Revenue $1,374,501 $1,471,678 $1,537,897 Restaurant Sales $4:204,186 $4,761,458 $4,996,010 O#�cefShip Stare Re+�nue $100,758 Tota( 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 Diesi 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 dper Gallons $&G5 $0.05 $0,05 Fuei Sales Payment $8,798 $9,815 $10,254 Minimum Rent Paid $140,141 $143,635 $151,779 Total Payment to Miami Dade $427,$73 $464,947 $493,766 Effee Rate !Total Paymets 7.6 Figures reported based on financial statements. Rent is based on minimum guarantee plus percentage rent. Page 35 7% 7.46°I° 7.44% Market Derived Rental Data Discussions First and foremost, we have focused on market evidence (comparable rental data) from those activities permitted through lease/license agreements in similar operations like those found in the subject property (not -far -profit leasing public land). Namely these are initiation fees and annual membership fees, wet/dry storage and mooring, food, beverage and liquor sales. 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 furthermore includes 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. The following tables incorporate the comparable rent information obtained from our research of the market, to which the subject property and 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 Page � 36 noted that the under the current lease terms, the subject property's operator — tenant — is not paying the City of Miami - landlord — rent on the basis of percentages for some of the noted line items as comparables. The Miami Outboard Club pays only percentage rents from the gross receipts of the restaurant and non-alcoholic beverage sales in what appears to be, based on the comparables, an atypical arrangement; namely 10% of the gross receipts (gross restaurant revenues) in excess of $10,000 per month, which as noted on various occasions is tantamount to about 7% of the gross receipts (gross restaurant revenues). 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. Initiation and Annual Membership Fees Table 1 Name Miami Outboard Club Miami Yacht Club cocnut Grove Sailing Club Coral Reef Yatch Club* Key Biscayne Yacht Club* Initiation Fee 52.500 51:400-52.800 $600 510,000 $15,000 Annual Membership $960 $1,200 $350 $2,375 $1,700 Sales Volumes $418,552 $246.998 $348,397 Unavailable Unavailable The Miami Outboard Club initiation and membership fees have been compared with similar operations, marine related clubs, where initiation and membership fees are assessed to the members at large. These are outlined in Table 1 above. The Miami Outboard Club has current initiation fees and annual membership that translates respectively to $2,500 and $960. We have provided the initiation fees and annual membership fees for four waterfront, not -for profit clubs. Although all four operate as not-for-profit, two of the clubs are situated on privately held lands, and two are situated on public lands. Summary of Findings The two not-for-profit clubs on private land establish the upper end of the range for initiation and membership fees; $10,000 and $15,000. *These two are somewhat dated or historical figures but are nonetheless reported for comparison purposes. The two not-for-profit clubs on public land, establish a range of $600 and $2,800 for the initiation fees, and $350 and $1,200 for the membership fees. The Miami Outboard Club initiation fees as well as regular monthly fees as noted above are towards the upper end of the fees reported by other similar operations. In fact if we focus on volume of sales the Miami Outboard Club generates more revenues per year from this line item - $416,552 - than due the Coconut Grove Sailing Clue or the Miami Yacht Club, $348,397 and $246,998, respectively. The City of Miami as landlord is not currently entitled to receive compensation for membership fees due to the Miami Outboard Club from its members. Notwithstanding, The Miami Outboard Club initiation fees and membership fees reported above are reasonable based on similarly operated waterfront, non -far -profit clubs occupying public land. The Miami Outboard Club initiation and membership fees compete with those of the Coconut Grove Page 137 Sailing Club and the Miami Yacht Club. However the Miami Outboard Club does not pay an percentage on the sales volume for membership fees the landlord — City of Miami — is not entitled to any proceeds from this line item. Storage Fees (Wet/Dry Fees) Table 2 Name Miami Outboard Club Coconut Grove Sailing Miami Yacht Club US Sailing Club Pelican Habour _Dinner Key Marina Miami Beach Marina Monthly Wet S91mnthTl NA 513lmnthlFt N;A $445.40 5609.90 S321mnthfFt-28 N Specifies NIA NrA NIA NA S9-15imnihtft $19nnnthtFt 533.'mnth�Ft-313ft Monthly Dry 54.5rmntivFl S50+g7.27.10rmnthlFi $8.12.513lmnthrFt 54.58-10.83'mnTvFt NIA NIA WA Moorings N1A $70+$9,,mnll'Ft NIA N.:A NIA WA WA Saler Volume NSA Combined �viti Wet 5111,675 $179,030 NtA NIA WA The Miami Outboard Club rates for wet slips and 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. Three marinas are operated and managed on public land as profit centers for their respective governmental owners. They provide only wet slips. Overall, wet slips are rented from as low as $9 per linear foot per month to as high as $33 per linear foot per months for boats larger than 36 feet. Pelican Harbour rents wet slips for as low as $9 per month per linear foot. This rate is similar to that achieve at the Miami Outboard Club and represent the bottom of the rental rate. The best comparable to the Miami Outboard Club is of course the Miami Yacht Club due to location, which rents their wet slips for $13 per linear foot per month. For dry storage the Miami Outboard Club rates are $4.5 per linear foot per month. The U.S. Sailing Center rents dry storage from $4.58 to $10.83 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 Miami Outboard Club charges - the actual monthly fees - of course depend on the size of the boats. Both the wet slips and the dry storage charges by the Miami Outboard Club to its membership for boat storage are towards the lower end of the markets. The Miami Outboard Club should be encouraged to increase its fees for both wet and dry storage. Additionally, the landlord should be entitled to receive compensation from the Miami Outboard Club for charging its members for both wet and dry storage, like other similar operations Food and Beverage Revenues According to the lease agreement dated June 14, 1996, the Miami Outboard Club is to pay the City of Miami a minimum rent, payable monthly. In addition, the City of Miami is to receive 10% of the "gross restaurant revenues" in excess of $10,000 (base restaurant revenues). Gross restaurant revenues are defined to mean the all food and beverages excluding alcohol. This is significant to note that this is the only permitted use within the demised premises, among all other permitted uses allowed the Page 38 tenant, for which the landlord — City of Miami — is entitled to receive a percentage of the proceeds in the form of rent. Most marina operations be it for-profit on public land or even not-for-profit have restaurants (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 — Table 3a 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 3a Name Red Fish Grill Black Point CGSC MYC moc Period 9130/2016 913012016 201612017 3/3112017 3/15/2016 Source Financial Stmnts Financial Strnnts Revenue Tables Financial Strnnts Financial Stmnts Restaurant $4,996:010 $372,440 $491,944 $339,433 Bar-Alc $4,996,010 5321,460 $502,430 $237,763 Events $118,001 $111,747 $10,486 $99,330 Totals (a) $1,966,680 $4,996,010 $805,647 $502,430 $676,526 The Miami Outboard Club food and beverage operations have been compared with similar operations in waterfront, not -tor profit clubs on public lands; in particular the Coconut Grove Sailing Club and the Miami Yacht Club. Also we have compared the Miami Outboard Club food and beverage operation with the restaurant operations of for-profit entities on public lands; namely The Red Fish Grill (Hammock Marine Corp) and the Black Point Ocean Grill (Black Point Marina). Also we wanted to present a schedule — Table 3 b — where we would be able to identify for each of the not -for -profits as well the two for-profit restaurant operations, the effective percentage rate resulting from the rent received for said line item and the volume of sales due to activities associated with a restaurant operation (food and beverages). Table 3b Name Red Fish Grill Black Point CGSC MYC MOC Period 9/3012016 913012016 201612017 3131/2017 3115/2016 Source Financial Stmnts Financial Stmnts Revenue Tables Financia# Stmnts Financial Stmnts Totals (a) $1,966,680 $4,996,010 $805,647 $502,430 $676,526 Rents Pyd $118,001 $249,801 $80,565 $28,663 $26,128 °/a Rent Pya 6.00% 1 5M% 10.00% 5.700% 3.86% Summary of Findings 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 $1,966,689, for the year ending September 30, 2016. 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 point in presenting the volume of sale of these two for-profit restaurant operations on Page 139 public land is to illustrate that this activity can yield significant sales volume. This statement can be qualified by saying that such sales volumes depends on the physical facilities available. 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 for the Miami Outboard Club is within the range, somewhat towards the upper end at $676,526. Therefore in terms of volume of sales the Miami Outboard Club is performing adequately. The effective percentage rate paid for instances for either of the two for-profit restaurant operations is very straight forward 5% and 6% of all restaurant proceeds for the Black Point Ocean Grill and the Red Fish Grill, respectively. The Coconut Grove works similarly in that it pays rents on 10% of all restaurant proceeds. As such: $805,647 X 10% = 80,565. The effective rate is the same as the nomimal. In the case of the Miami Yacht Club it is more convoluted, because while a 9% nominal rate is applied to all revenues - income streams - permitted in the property, it is affected after reaching a threshold of $380,000. Accordingly, $502,430 is the gross revenues from the restaurant operation and events, or 48.4% of the total gross revenues of $1,037,876. We similarly prorated the $380,000 by the 48.4% that pertains to the restaurant operation and events resulting in a figure of $183,956. This figure is then deducted from the gross revenues from the restaurant operations and events - $502,430 - resulting in an amount of $318,510, which is subject to the 9% percentage rent. The rent in dollars due from the restaurant operation and events is $28,663. The effective percentage rate for the restaurant operation and events - volume of sales - is 5.7% ($28,663 - $502,430 = 5.7%). In the case of the Miami Outboard Club the formula is different but just as convoluted. The only income stream to which the landlord - City of Miami - is entitled to receive a percentage of the volume of sales in rent is for food and beverage, excluding alcohol sales. As such from the restaurant (food and beverages less alcohol) sales volume of $339,433, there is an allowed threshold of $120,000 ($10,000 per month) deduction, resulting in a figure of $219,443 which is subject to a 10%Q nominal rate. The rent in dollars due from the restaurant operations (food and beverage, no alcohol) is $21,944. We continue this analysis by interchanging this dollar rent amount to match that calculated percentage rent payment in page 34 of $26,128, because of the different sources of the gross revenues for this line item. from financial statements or tabulated from monthly reports. The effective percentage rate for the full restaurant operation (food and beverage, including alcohol, plus events is 3.86% ($26,128 = $676,526 = 3.86%4). The effective rate for the sales of food and beverage ranges from the high at 10% (CGSC) to the very lowest at 3.86% attained in the Miami Outboard Club. Therefore in terms of effective percentage rates from the sales of food and beverage the Miami Outboard Club reflects the lowest reported rate of return. The Miami Outboard Club should paw City of Miami - landlord - percentage rent payments comparable to the market. In recapping, the volume of sales for the restaurant in the Miami Outboard Club - food and beverage - is considered reasonable when compared to other volume of sales in not-for-profit marina operations with permitted uses that allow for restaurant operations. What is not acceptable is the Page 140 effective percentage of the volume of sales of food and beverage that is ultimately paid to the City of Miami as landlord. The definition of what constitutes restaurant sales has to be expanded to include the sale of alcohol and events, and the percentage to be applied has to be increase to market parameters for restaurant operations. 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 Watson Island of 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 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. Page 141 A quick glance at the tables above regarding the three most lucrative line items permitted in the product type — Initiation and Membership Fees, Storage Fees, and Food and Beverages — indicates that the Miami Outboard Club generally attains adequate levels of performance in all of the itemized permitted uses within the demised premises, with a few exceptions and of course with certain caveats. This can be observed in reviewing our earlier summaries of findings: 1,) The Miami Outboard Club initiation and membership fees compete with those of the Coconut Grove Sailing Club and the Miami Yacht Club. However the landlord — City of Miami — is not entitled to any proceeds from this line item. The landlord should receive compensation for this line item in the form of a percentage rent. 2.) The Miami Outboard Club should be encouraged to increase its fees for both wet and dry storage. The landlord should be entitled to receive compensation from the Miami Outboard Club for charging its members for both wet and dry storage, like other similar operations in the form of a percentage rent. 3.) In terms of the volume of sales for Food and Beverage the Miami Outboard Club is performing adequately, especially when adding the sales of alcohol. The Miami Outboard Club should pay the City of Miami — landlord - percentage rent payments comparable to the market. Finally, it is recognized that the Miami Outboard Club pays the city rent in the average of $7,000 per month ($84,919 - 12 = $7,077). This as noted repeatedly in various components of this report is the result of the minimum rent guarantee currently in place, subject to adjustments for CPI per lease arrangements, plus a percentage of the sales volume resulting only from food and beverage, excluding alcohol sales. For the year ending March 31, 2017, it is estimated, that minimum rent was $57,117. The overage rent is estimated to $27,802. Hence the $84,919, or $7,077 per month, noted immediately above ($57,117 + $27,802 = $84,919). More accurate figures are available for the year ending on March 31, 2016, because these emanate from financial statements provided for review. The minimum rent for this period was $57,847 and the overage was $26,128, for a total rent for the year of $83,975 ($57,847 + $26,128 = $83,975), or $6,668 per month. The nominal rate prescribed in the lease agreement is 10%© of the sales volume from the only permitted use subject to overage rent, namely Food and Beverage, less alcohol. It is affected after reaching a threshold of $120,000 or $10,000 per month. The effective rate when combining the minimum rent guarantee and the overage rent, that the Miami Outboard Club paid to the city was 5.77% of the gross sales and 7.11% of the gross profits for the year ending March 31, 2016, and 5.31 % of the gross sales and 6.35% of the gross profits for the year ending March 31, 2015. When comparing the Miami Outboard Club to other similar operations, it is evident that it pays the City as lessor — its landlord — the lowest percentage of their overall revenues than most other comparable operations. Please refer to the table in the following page. Page 142 Table of Comparison of Sales Volumes per Line Item, Effective Rates of Gross & Profit Sales Operation Miami Outboard Club CGSC 2015/2016 CGSC 201612017 Black Point Marina Black Point Marina & Grill Red Fish / Hammack Marina U.S. Sailing Club Miami Yacht Club Gross Sales $1.454.280 $2,064,673 $2.055.799 52,339,519 $6.634.685 52,117,121 $227,695 $1,037,876 Gross Profits $1.180,579 $2,064,673 52.055,799 $1,781,744 $6,634,685 $2,046,458 $147,695 $657,876 Nominal % 10.00% 10.00% 10.00%o 5.00% 6.00% 10.00% 9.00% Overage Payment S26.128 5134,903 $14.770 559,209 Effective Rate 7.70% 6.59% 6.49% 9,00% Minimum Rent Payment S57,847 512,246 548,505 Total Rent Payments $83,975 5289,889 $181,407 5151,779 $493,766 5134,903 $27,016 5107,713 Effect Rate /Gross Sales 5.77% 14.04% 8.82% 6.49% 7.44% 6.37% 11.86%o 10.38% Effect Rate 1 Gross Profits 1 7.11%, 14.04%1 8.82% 8.52% 7.44%a 6.59% 18.29%a 16.37% The Miami Outboard Club in terms of its total volume of sales is competitive to other similar not-for- profit operations; in performance. Its most recently reported total sales volume is $1,454,280, which is within the range established by the Miami Yacht Club of $1,037,876 and the Coconut Gove Sailing Club of $2,064,673. As stated previously, with some exceptions, the Miami Outboard Club performance is adequate. In regards to rent payments, when combining the minimum rent with overage rent, The Miami Outboard Club pays its landlord — City of Miami - 5.77% of gross revenues (sales) and 7.11% of gross profits (gross revenges less adjustments). These rates are at the bottom of the comparable range presented above, certainly for the gross sales volume. Only the Red Fish Grill which is a for-profit operation comes near. Compared with other similarly operated facilities, the effective rate for the gross volume of sales is about half of what others pay the City of Miami — landlord. The Miami Yacht Club pays 10.38% of its gross volume of sales, the U.S. Sailing Center pays 11.86% and the Coconut Grove pays, based on the two years reported above, between 8.82% and 14.04%. The situation is similar when considering gross profits (gross revenues less adjustments). Again, the Miami Yacht Club pays 16.37% of its gross profits sales, the U.S. Sailing Center pays 18.29 and the Coconut Grove pays, based on the two years reported above, between 8.82% and 14.04%. This very evident differential is attributed to two sources, one slightly below market rates for boat storage both dry and wet, but more significantly to the fact that overage rents is only received against the sale of food and beverage, not including alcohol, and all other permitted uses generating revenues are excluded. FINAL MARKET RENT ESTIMATE As such the Miami Outboard Club current rent levels are considered below market, particularly in view of its sales volumes for all permitted uses within the demised premises. Please refer to the table in the following page Page 143 Table of Comparison of Sales Volumes, Gross Versus Profits and Effective Rates Market rent for the Miami Outboard Club is thus concluded to be $13,000 per month or $156,000 per year, maintaining similar volume of sales for all of the permitted uses as in the past, and generally derived from the average and median effective rates for both gross sales (11.28 - 11.12%a) and grass profits (14.38 — 15.21%). This is illustrated in the following table. Market Rent Estimate Table Year Ending Nbrch 31, 2016 Entity Gross Sate Effective Rt Grass Profits Effective Rt Annual Rent Monthly Rent L) 8. Sailing Club 5227,695 11.86% $147,695 18.29% $27,010 $2,251 main[ Yacht Club $1,037.876 1035% $557,876 1637% $107713 $8.976 CGSC 20150016 $2 064.673 14 04% 52,064.673 1404°! $289.889 $24,157 CGSC 201612017 $2,055.799 8.82% 52.055,799 8.82% $181.407 $15117 Average 11.28% 14.38 Medran 11.12°! 15.21% Miami Outboard Club $1,454,280 5.17% 51,180,579 7.11% $83,975 $6,998 Market rent for the Miami Outboard Club is thus concluded to be $13,000 per month or $156,000 per year, maintaining similar volume of sales for all of the permitted uses as in the past, and generally derived from the average and median effective rates for both gross sales (11.28 - 11.12%a) and grass profits (14.38 — 15.21%). This is illustrated in the following table. Market Rent Estimate Table Year Ending Nbrch 31, 2016 Average Gross Sale 11.23% Gross Profits 14.381% Gross Annual Monthly Rent Profit Annual Monthly Rent Median 11.12% 15.21% Miami Outboard Club $1,454,280 10.00% $1,180,579 14.00% $145,428 $12,119 $165,281 $13,773 Please note that this estimate of market rent for the Miami Outboard Club is estimated based on the revenues reported for the year ending March 31, 2016 of $1,454,280 gross and $1,180,579 profit (gross revenues less allowances), which was a lower figure than in previous years; March 31, 2015 of $1,522,047 gross and $1,272,757 profit (gross revenues less allowances), and March 31, 2014 of $1,553,029 gross and $1,322,069 profit (gross revenues less allowances). The minimum rent could remain the same as present, subject to annual CPI increases, at $4,821, and the overage rent can increase when allowing for all permitted uses generating revenues to be subject to percentage rent. The easiest mechanisms is to pay the minimum rent or the percentage rent as described whichever is greater — this can be in the range of 10% of the gross volume of sales or 14% of the gross profit (gross sales after deducting threshold or base and other allowances such as credit for services, etc.) as long as the total rent paid to the City of Miami — landlord — per month is in the range of $13,000 per month, or $156,000 per year. Page 144 Also, the minimum rent can be increased to $9,000 per month, which is proportionally what the minimum rent represented from the total rent paid in the past. For instance for the year beginning March 2016, the minimum rent was $57,847 or 68% of the total rent paid for the year of $83,975 ($57,847 _ $83,975 = 69%). The additional $4,000 per month can be received by the City of Miami — landlord - in the form of an additional percentage rent based on 14% of the gross profits, which can be defined to allow appropriate discounts (threshold or base and/or credits). This conclusion emanates from the historic actual rents reported above under Analysis of Contract Rents - rent payments by the Miami Outboard Club, as well as comparable sales volume levels of typical permitted uses present in competitive operations. Please review table immediately below Market Rent Cocnlusion Gross sales Gross Profits Miami Monthfy Rent R Annual Rent $1.454.280 31,180,579 10.00% 14.00% Outboard Club $13,000 $156,000 $145128 $165,281 $12,119 $13,773 Comparable Rent Data Gross Sales Gross Profits U.S. Sailing $2,251 $27,012 $227,695 $$147,695 11.86% 18.29% Miami Yacht $8,976 $107,713 $1.037.876 $657,876 10.36% 16.37% CGSC 2016/2017 $15`117 $181,407 $2,055,799 $2055.799 8.82! 8.82% CGSC 2015/2016 $24,157 $289,889 $2.064.673 $2,064,673 14.04% 14.04% The market rent conclusion would result in an effective rate of return to the landlord or 10% and 14% based on the average volume of gross sales and gross profits, respectively, based on the revenues reported for 2016. MARKET RENT CONCLUSIONS Eifecitve Date May 5, 2017 Monthly Market Rent $13,000 Annual Market Rent $156,000 Average Gross Sales -2016 $1,454,280 Effective Rate 10.73°fg Average Gross Profits - 2016 $1,180,579 Effective Rate 13.21% Exposure Time — Is not considered applicable for this valuation assignment. Page 145 Subject Photographs Interior View Banquet Hall �Ypical Bathroom Facility from Ban uet Hall Page 147 Subiect Photographs �Meetinq Room Meeting Room Page 148 Subject Photographs IV iew of Sa Page [ 49 Submect Photographs Mew of Bar with Kitchen in Back round iew of Kitchen Page (5Q Subject Photographs iew of Kitchen iew of Kitchen Page � 51 E ow- : 5ubiect Photographs iew of Exterior Covered Terrac iew of Tot Lo Page 154 Subject Photographs r liiew of Deck Looking at Biscayne Ba Mew of Exterior Covered Terrace and Dec Page 155 Subject Photographs View of Marina iew of Marina Page 156 Subiect Phatowaphs iew of Marina iew of Hoist Page 157 Subiect Photographs iew of Fish Cleaning Station [View of Utility Building and Bathrooms Page l 58 Subiect Photographs - wff v iew of D Stora NNW iew of Dry Stora Page 159 ZONING CLASS DATA - ADDENDA MIAMI 21 ARTICLE 4 TABU= 3 BUILL) NG FUNCTION, USES A5 ADOPTED - MAY 2014 8 1 7s f6 OFWSFY {F WTUMM ACRE! 1 A 1i A7 M f6 f5 ki. t 'FA' F$@ tA0' (AlmATM t ._•_• dW E. 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'AE9F'7�MG #IGTftaF*vi7AFL.c% i @ANCR1[`/ 4CiT TiCR: fY i 7 �. 4 � x' i r t r+Ri?i6TtRiCRJS i17£fYiilt£S Rf i - a 5 x: A : a ._ _ .... ¢:......i WHlt f.1&%..RY ... k RF54": ---- e Tnslfsi: F#e8,'RES ..•_- .___. .� ��W� i E.. ET. W 1T� E 4 {� 'r i^� ,L�12iF 'Kf.CERglTa -YtiOiE rN#(K4gLifdOt E z C W 4Y ° E� T7" - E 4 i f11f,�41F # rPE�%AY. RMKYMGt aT'x:,.aPQIMe c 1, ...,.. i. • f i aU4pAE;10.'a:'D NiU'TRML �iTBt � j a 4 i .. t etasmn"M i R Sfswd#1A4R ti15s�ax4p�cS+tFEAx`+'fl.'k�iffi IN �gpwraAxReprfss^r :dtl: •:tgztlum^e. pr aBtf' nR3Av�i^.f Y -ii°InM -. t'iamaa-VRC. ae�,4�aai;���e5 E��.'�ardb f#+&BKft&�rT.d'Ad+'Alt SreWeE. EiSiAvk,9&Y�s#4lft}9K'F%LOh`eN+(gd�.. 6Yti �l�vir�ZantgS�a.�aa`R1 `. '.. flk .as¢ffffiaaiFsf � ti� R 9zs�89�si�#A�+FS`4Tt '°bT.:�ms�$4 �t9�pe4$ Page 160 MIAMI 21 ARTICLE 4. 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CIVIC SPACE TYPES AS ADOPTED - MAY 2014 Th" a dexnbes tta utards ccs ateaa as CVK Space SCS)Mw for pulck Pa*tww open swtprov*6 tft Ps Btmft* ftqrm VVK Spate TAM should bed ft gt,3um ievvi. lar&,capW vxy*; "iced apenio the sky *A sha bt Ww to ft pc tic_ Gig Space Types 11,1Y be p%VW� g7v&*v"d a Pack. A A Pw% may crag and dads, meadows weatimW spatsTiedf aM apen snei9eri Pants maybe Comewelvi b.Gr"rr AA0pvSpiK*,armee for unsIrwwedfevwbonxograms AGT*er maybe spahaiiv t 714n4acmict shag ccpsWofiapir and be" raunwocsOydamed Thvmrsrnur we shay be ane acre and x maarnum sN9 be 4 iKre5 c-SqLprt An Coen SWe "m4ble for unnPucti w rea eatwn ot ograns wig awc puqxtm Asqwrt is spabally defped by RUMN Frontages WO streets w 41'east or* Frontage ;'u andSCApe sha, r formallydpi;msed "sWuaressnaNixiot2�d�;Yfea 'tet en g _- 44l ofrDwaroThamurtafes The wmmm,%-*0ba 1f3 afire yr dry wuman shall be? dPUm An Op@n Spec, wa4bo fgw wqposes afpl pooWam-med advfvs, A RM shay— L *4*1y, defmc by BLoidr; F rortacps and may wAkde street FroMagesL Tie ntinimumscesoatItm 118 acre cindtJvaciwiftm sW be2acres CatrMrd lGarderk-AnOpen Space "ally defend byguichngs and v"! *jt�s, and e3dl, LI L ac:esI&e or -At S.0 to ft Its# - f PtoyVissmO An Open Space ksgned and ewisped k# 5)e rocrtakonotchurcen AP"fw'd 04ix ItrKeo anomay muft an open VL*Rm P"rownds areas and maybe ptaced anthr. a R*ck- Nangroustni rnar, be iu#udad w"In Paris and thwe ifti be no nfwrrum w mv,mum size J r I --"-j �M$-36 Tf,48 T"ll"T6,80 piedes1ranc Passage may be -aisted L—J L h Come woy Gar&n A 7ouving 44 garden plaft ansa fa "aO sca* ::*"vn genet &Vy to mte—s of end idw deWvg types w.ftLe Pnv& giarders oomnWrvty gerdens Shown accomplart '40wa, stxar steds N24 Page 662 NAMI 21 ARTICLE 5. SPECIFIC TO ZONES AS ADOPTED -MAY 2014 5.7 CIVIC SPACE ZONES (CS) AND CIVIC INS-nTU-nON ZONES (C) 5..7.11 Civic Space Zones (CS) 5.7.1.1 Development in a Civic Space Zone should have a minimum of fifty pertant (50,A) of its perimeter entonting a Thoroughfare, avic Space sates Shall be entered directly from a Tharoughtare. 5.7,1.2 Development in Civic Space Zones shall be consis:lent. with Me standards in Article 4, Tables 3, 4, and 7. 5-71.3 One or more 8d IdIngs may be built in each Civic Space. Building ft area shall rid exceed hveoty- five percent (' 215%i of the lot area of the Civic Space, and shall support the prinapal me of the Civic Space. 51,14 In Civic Spaces, Buildings, Fences and wafts shall cofform to regulations Of the most restrictive Abutting Transact Zone, except as sPown by City of Mlami's Parks and Public Spaces Master Plan. Other adjustments to the regulations shall be approved by process of Exception, SJ11 All Community facifity and Recreatorial Facility Uses shaft be goverrment owned or operated only 5.7.2 Civic Institution Zones (CI) 5.71.1 Development in a Civic insfiltition Zone "0 have a mirumurn of one (1) Frontage enfronling a Thaoughfare and should have its pfirnary entrance trom a Thcinxzghfare. 5.7.21 Development in QNic Institittion Zones shall be consistent with the standards in Article 4, Tables 3 and 4, 5.7.2.3 A Ovic linsutution Lot may have one ( 1) or more Buildings. 5-124 Civic tnslitution Development shall be pemiWed by pr ss of Exception and shag conform to the following regulations, a. Any property located within a Ci Zone may be, developed accordirig tothe regrulations of them" resldchveAbUnng Tranwt Zone with ail Frontage Setbacks considered a minimum - b. Development. in a CI Zone shall follow the reguiations of the Abutting Transect Zone, except that Height res-bi0onsshall be as foltows: 1, A 0 Zone entirely Abutting T3 shall be developed to no mme than the maximum Height al- lowed by T4, 2, ACI Zone predominantlyAbuthng T3 or T4, shall be devetoped tonomore than the maximum Height allowed by TS. 3 A Q Zone predominantly Abuftg T5, T6-8, 01, D2 or D3, shall be developed to no more than the maximurn Height of T" 4 ACI Zone entirelyAbutting T64 or higher, may conform tone maximum Height of any higher At utting Transact Zone - V43 Page 163 �r v �u a 0 1Z O Q Z W O Z in6 11 N1]J to Exhibit AQ W a r rm�er a mu rm .Nc ranrxw r p6tw! a ai.n ram aoo� tr ay.:.ae • emc N +vJr ru15 Ae rom r mwraq, erMee mNd IIPn 7'(L iMnnE wa et ett. �-. 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STA, 47 +16,98 ON THE OFh7CML MAP OF' LOCATION AND SURVEY Of A POR770H OF SECTION 6706, DESIGNATED AS A FART OF STATE' ROAD A -7 -A IN DADE COUNT FLORIDA, AS RECORDED IN MAP BOOK 56 AT PAGE 71 OF THE PUBLIC RECORDS OF DADE COUNTY, FLORIDA, SAID POINT BEING THE' POINT OF TANGENCY OF THE GENTE'R LINE OF THE MOST SOUTHERLY CURVE OF GENERAL. DOUS'W MCARTHUR CAUSEWAY RUNNING NORTHWESTERLY FROM 7NE SOUTHEASTERLY CORNER OF WAT50N ISLAND AND HAWAIG A RADIUS OF 1910-08 FEET AND A CENTRAL ANGLE OF 34'47'1.5'; THENCE N25'1035 ALONG THE RADIAL LINE OF THE ABOVE MEN770NED CURVE FOR A DISTANCE OF 65.00 FEET TO THE' POINT OF BEGINNING OF THE FOLLOWING DESCRIBED PARCEL OF LAD AND ALSO A POINT OF INTERSECTION WITH A NON -TANGENT CURVE, A RADIAL LINE TO SAID POINT BEARS 525'70'35 W SAID CURVE BEING THE NORTHERLY RIGMT=OF,_WAY LINE OF SAID GENERAL DOUGLAS MCARTHUR CAUSEWAY. • THENCE 740.96 FEE -1 ALONG SAID RIGHT-OF-WAY LIME; AN ARC OF A CURVE TO THE RICHT; SAID CURVE HAVING A RADIUS ,OF 1845.08 FEET AND A CENTRAL ANGLE OF 23OC'36" TO A POINT OF INTERSECTION WITH A NON TANGENT LINE; A RADIAL LINE TO S41D POINT BEARS 548' 10 J9 `VJ,' THENCE N49' 19'02 E FOR A DISTANCE OF 549.85 FEET; THENCE" 534 29'50 E FOR A DISTANCE OF 222 4J FE'El;' THENCE S0923,51 E FOR A DISTANCE OF 208.77 FEET' . THENCE SO 1'49'04"E FOR A DISTANCE OF 408.86 FEET 'T THE POINT OF BEG;'NMNG. CONTAINING. 255, 733 SOLIARE FEET, 5,87 ACRES, MORE OR LESS INCLUDING THE SLGlBM,-RGED LAPID EAST OF THS APPROX11WA7E EDGE' OF WATER LINE MEASURED IN AUGUST 16th, 2010 AT 10,07 AM. BEING MORE PARTICULARLY DESCRIBED AS F_OtLOKS' LEASE AREA I SU5MERGE'D LAND COMMENCE AT A POINT SHOWN AS P.T. STA. 47 x-16.98 ON THE OFFICIAL, ,VAP OF LOCATION AND SURVEY OE A PORTION OF SECTION 8706, DESIGNATED AS A PART OF 57AATE ROAD A -1-A IN DADE COUNTY, FLORIDA, AS RECORDED IN kpP BOOK 56 AT PAGE 71 OF THE PUBLIC RECORDS OF DADE COUNTY, FLORIDA, SAID POINT BEING THE POINT OF TANGENCY OF THE CENTER LINE OF THE' MOST SOUTHERLY CURVE OF GENERAL DOUGLAS MCAPiTHUR CAUSEWAY RUNNING NORTHWESTERLY FROM THF" SOUTHEASTERLY CORNER OF WATSON . iSLAND AND HAVdVG A RADIUS OF 1910.06 FEET AND A CENTRAL ANGLE" OF 34'47'15"; THEtJCE rV2 *10'35'E ALONG THE' RADIAL LINE OF TVE ABOVE MENPONED CURVE FOR A DISTANCE OF 65.00 FEET, A RADIAL LINE To SAID PC?INT SEARS S25'lO'35 W TO THE POINT OF BEGINNING OF THE FOLLOWING DESCRIBED PARCEL OF LAND,' THENCE 151.74 FEET NORTHWESTERLY ALONG THE NORTHERLY RIGHT-OF-WAY LINE OF SAID GENERAL DOUGLAS r1IACARWUR CAUSEWAY, SAID LINE BEING THEARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 1845.06 FEET AND A CENTRAL ANGLE OF 4°4244" TO A POINT OF INTERSEC77ON WITH A NON --TANGENT LINE A RADIAL LINE TO SAID POINT BEARS 529'5.3'19 W THENCE THE FOLLOWING nyEN1Y,(20) COURSES ALONG THE APPROXIMATE EDGE' OF WATER NO7'52'53"N FOR A DISTANCE OF 144.76 FEET,' THENCE I/78'14'13E FOR A DISTANCE OF 47.73 FEET' THENCE NO6'65 20 "W FOR A DISTANCE OF 47.97 FFE7; THENCE° S82 51 '1$ W FOR A DISTANCE OF 3(796 FEET, THENCE NI1325'04 E- FOP A DISTANCE OF 14.9$ FEET, THENCE N26'50 24 W FGF A DISTANCE Of .3.59 FEET;' THENCE- NO3' 15 51 "W FOR A DISTANCE OF 9.51 FEET'. THENCE N20'06 23'E FOR A DISTANCE* OF 12.66 FEET;• 7HENCE N22'29'291V FOR A DISTANCE OF 10.75 FEET,' THENCE N06'55'02V FOR A DISTANCE OF 94." FEE?• THENCE NtO'02'52'E FOR A DISTANCE OF 65.47 FEET; THENCE N05'47'IJ V FOR A DISTANCE OF 34.09 FEET,' THENCE N22'23'58"K' FOR A D15TANCE' OF 25.72 FEE" THENCE N3320'11 W FOR A OISTMCE OF 4609 FEE(,' THENCE N20'29'.25 "W FOR A DISTMCE OF 15.97 Fc -,Fr, THENCE N12'3253"W FOR A DISTANCE OF 113,64 FEET,' THENCE N05'53.23"W FOR A DISTANCE OF 69.07 FEET' THENCE N04 -0481E FOR A DISTANCE OF 24.06 FEET,' 7HENCE N3355'44"F FOR A DISTANCE OF 12.90 FEET THENCE N13'2744`W FOR A DISTANCE OF 30,07 FEET TO A POINT OF I MWSECTiON WITH THE NORTH LINE OF LEASE ARBA 1; THENCE N49'19'02'E ALONG SAID NORTH LINE FOR A DISTANCE OF 6.9.!%3 FELT; THENCE THE FOLLOWNG THREE (3j COURSES ALONG THE EAST BOUNDARY Of LEASE AREA 1;S342950 E FOR A DISTANCE OF 222.43 FEET; THENCE S09'28'51 "E FOR. A DISTANCE OF 208.77 FEET' THENCE SO1'49'04"E FOR A DISTANCE OF 4118.86 FEF{ TO THE POINT OF BEGINNING. CONTAINING lOa,132 St7UARE" FEET, 2.37 ACRES, MORE OR GESS. NO: ZDOB dJ DATE: i1-ACI--14CRAWN'B57 GHECKED;AS SCALE:AS 1+07101 LUDOVICI i& ORANGE LEASE AREA I LEGAL Ift CONSULTING ENGINFEERS, INC. DESCRIPTION 223 PALERMO AVENUE, CORAL GABLES, FLORIDA 33134 • 3451448,1800 • L8 1012 SHEET I OF 1 S}7EE'( Page 165 Exhibit H LEASE AREA 2 THAT POR7701V OF LAND LOCATED ON WATSON ISLAND, NORTHEASTERLY OF THE NORrHE45TERLY RIGHT OF WAY LINE OF STATE ROAD A- I A (MACARTHUR CAUSEWAY) AS SHOWN ON THE STATE OF FLORIDA STATE ROAD DEPARTMENT RIGHT OF WAY UAP FOR SEC77ON 87060-2117 FIL&9 FOR RECORD UNDER ROAD MAP BOOK fib. AT - PAGE 44, OF TIWE PU8Lc RECDRAS OF DADE COUNTY FLORIDA. LYING IN SEC77ONS 31 AND 32, TOWNSHIP 063 SOUTH, RANGE 42 EAST CITY GF MIAMI. MIAMI -LADE COUNTY F£ORfDA BE1N0 MORE PARTICULARLY DESCRIBED AS . FOLLOWS.' COMMENCE AT A POINT' SHOWN AS P.7 STA. 47 +1698 ON THE' OffMAL MAP OF LOCAL{ON AND SURVEY OF A PORTION OF SECTION 8706, DESIGNATED ASA PART OF STATE ROAD A- f A IN DADE COUNTY FLORIDA, AS RECORDED IN MAP ROOK 56 AT PAGE 71 OF THE" PUBLIC RECORDS OF WF COUNTY, FLORIDA, SAID POINT BEING THE POINT OF TANGENCY OF THE CENTER LINE OF THE, MOST SOUME°RLY CURVE OF GENERAL DOUGLAS MCARTHUR CAUSEWAY RUNNING NORTHWESTERLY FROM FIFE SOUTHEASTERLY CORNET,' OF iYATSON ISLAND AND HAVING A RADIUS OF 1910.08 FEET AVD A CENTRAL ANGLE OFF 3447'15; THENCE M25'10'35"E ALONG .THE RADIAL Lf It OF. THE ABOVE MEAMONED CURVE FOR A DISTANCE OF 65:00 -FEET TO THE POINT OF INTERSECTION WITH A NON -TANGENT CURVE, A RADLU LINE TO SAID POINT REARS S25'10'3.51W 5N,9 CURVE BEING THE NORTHERLY RIGHT-OF-WAY LINE OF SAID GENERAL DOUGLAS MCARTHUR CAUSE -WAY, • THENCE 710.98 FEET" ALONG SAID. RIGHT-OF-WAY L#VE AN ARC 1F A CURD TO ME RIGHT, 3ND CURVE MOND A RADIUS OF 1815.0& FEET AND k CENTRAL ANGLE OF 23500:36" TO A POINT OF IA7ERSE"CTAX W17H A NON -TANGENT LINE, A R40ML LINE TO S41D POINT BEARS 548'14'39' 1;' THENCE N4,9'19'02T FOR A DISTANCE OF 12.41 FEED TO THE POINT OF BEGINNING OF THE FOLLOWING DESCRIBED PARCEL OF LAND, ALSO A POINT OF IMIERSEC770M WITH A NON-TANGENT_CURVE, A RADIAL UNE TO SAID POINT BEARS S50'10'40'W,, THENCE 742,49 FEET ALONG THE ARC OF A CURVE TO THE RJ,- €T, SAID CURVE !WAVING A RADIUS OF 720.00 FEET AND A CENTRAL ANGLE OF 8802'07" TO A POINT OF TANGENCY,• THENCE N28'12'47"E FOR A DISTANCE OF 52.00 FEET TO A POINT OF CURVATURE' 1NENCE 6822 FETT ALONG THE ARC OF k CURVE TO THE LEFT, SAID CURVE HAVING A RADIUS OF 250.00 FEET AND A CEVTRAL ANGLE OF 157004" TO A POINT OF INTcRSECTfON WI7T A REVERSE CURVE A RADIAL LINT TO SAID POINT'HE'ARS S7725'17'E- THENCE 114,60 FEET ALONG THE ARC OF A CURVE TO THE RIGHT; SAID CURVE HAVING A RADIUS OF, 60.00 FEET AND A CENTRAL ANGLE OF 109'26'04" TO A. P0IN7'.OF TANGENCY,- THENCE 55756'11'6 FOR A D157ArVCE OF 120.75 Ft -:ET; THENCE N35'2742 E" FOR A DISTANCE" OF 110.62 FEET, THENCE N69'7 -08'E FOR A DISTANCE OF 12383 FEET TO A POINT ON THE WESTERLY LINE OF LEASE AREA t; THENCE 549'19'02`W ALONG SAID WES)7TRLY LINE FOP A 0STANCE OF 53744 r-= TO THE` POINT OF EEGINN.1NG. CONTAINING 44,138 SAUARE FEET 1.013 ACRES MORE OR LESS INCLUDING THE S'UBIAEROED LAND FAST OF THE APPROXIMATE EDGE OF WATER LINE MEASURED IN AUGUST 161h, 2010 AT ID.00 A.M. BEING MORE.PAR7TCULARLY DESCRIBED AS FOLLOW:: LEASE AREA 2 SUBMERGED LAND COMMENCE AT A POINT SHOWN AS P.7; STA. 47. +16.98 ON THE Olin QAL MAP OF LOCATION AND SURVEY OF A PORTION OF 5ECTTON 8706, DESIGNATED AS A PART OF STATE ROAD A -1-A IN LADE COUW Y, FLORIDA, AS RECORDED IN MAP BOOK 56 AT PAGE 71 OF THE PUBLIC RECORDS OF DADE COUNTY FLORIDA, SA1 POINT BEflIG TNE'POINT OF TANGENCY OF THE CENTER LINE OF THE MOST SOLtTERLY CURIE -OF GENERAL DOUGLAS MCARTHUR CAUSEWAY RUNNING NORTHWESTERLY FROM THE SOUTHEASTERLY 00AWD? OF WATSON ISLAND AND HAVING A RADIUS OF 11910,08 FEET AND A CENTRAL ANGLE OF 3447'15; THENCE N25'10'35 E'ALONG THE RADIAL LINE OF THE ABOVE MEN77CWE'D CURVE FOR A DISTANCE OF 65.00 FEc'T TO JW POINT OF INTERSECTION WITH A c. NUN -TANGENT CURVE, A RADIAL LINE TO SAID POINT SE4RS S25'10'35'WY SAID CURVE BEING THE NORTHERLY RIGHT -OF WAY UhE OF SAID GENERAL DOUGL4S MCAIRTHUR CAUSEWAY THENCE 740.98 FEET ALONG SAID R} rF-WAY LANE, AN ARC OF A CURVE TO THE mGHI; SAID .CURVE HAVING A RADIUS Of 1845.08 FEET AND A CENTRAL ANGLE" OF 23'1X}'36" TO A POINT OF 1WTERSECTION WITH A NON --TANGENT LINE; A ,RADIAL LINE TO SAID POINT BEARS S46'I0'397W' THENCE N49119'02 -C ALONG THE EASTERLY LINE OF LEASE AREA 2 FOR A DISTANCE OF 480.82 FEET rO THE POINT OF ,BEGINNING OF THE FOLLOWING DE 0'66D PARCEL OF LAND- THENCE N13:2744"W FOR 23.99 FEET ALONG THE APPROXIMATE EDGE OF WATER, THENCE N69'29't6 E FOR A DISTANCE OF 61.86 FEET. THENCE S49'19'021W FOR 68.03 FEET TO THE POINT OF BE67NNING. CONTAINING 736 SQUARE FEET 0.017 ACRES 44CRE OR LESS. 'RQJ. NO: 2008 DOT JDA -M 11-10--10 DRAWN: 83L CHECKED:AS ISCALE.,AS NOTED LUDO IOC'0 .ORANGE LEASE AREA 2 LEGAL ED CONSULTING EWNGINEFRS, INC. DESCRIPTION 929 PALE -RNA AVENUE, CORAL. GABLES, FLORIDA, 33134 • 3051448-1600 • LB 1012 SHEET I or, 1 SHE'j� Page 166 €�hibit B LEASE AREA J 5USMERGED LAND THAT FOR7701V OF LAND LOG470 ON wAT501V ISLAND LYING IN SECTION 32, TOWNSHIP 53 SOUTH, RANGE 42 EAST AND SE-c770N 5, TOWNSHIP 54 SOUTH, RANGE' 42 EAST, CITY OF MIAMI, MIAMI -DAVE COUNTY FLORIDA BEING MORE PAR77CULARLY DESCRIBED AS FOLLOWS: COMMENCE AT A, POINT SHOWN AS P. T STA. 47-t, 16,98 ON, THE OFFICIAL MAP OF LOCATION AND SURVEY OF A PORTION OF SECTION 8706, 'DESIGNATED AS A PART OF' STATE ROAD, A -1-A IN DADE COUNTY,, F40RIDA, AS RECORDSO hN MAP BOOK 56 AT PAGE 71 OF THE PUBLIC, RECORDS OF DARE COUN7y , FLORIDA, .SAID MNF BEING THE POINT OF TANGENCY OF THE CENTER LINE OF THE MOST SOUTHERLY CURVE OF GENER4L.,L)OUGLAS MCARTHOR . ' - CAUSEWAY RUNNING NORTHWESTERLY FROM THE SOUTHEASTERLY CORNER OF WATSON, ISLAND AND HAVING A g4DIVS OF 1910.08 FEET AND A 'CENTRAL ANGLE OF 3447'15", THENCE M25'1(3'J5`E ALONG THE RADIAL LINE OF THE AEOVE MENTIONED CURVE FOR A DISTANCE OF 65,00 FEET To THE POINT OF INTERSECTION WITH THE NORTHERLY RIGOT-OF-WAY LINE OF SAID GENERAL DOUGLAS kCARTHOR CAUSEWAY AND ALSO THE POINT OF BEGINNING OF 7HE FOLLOWING DESCRIBED PARCEL OF LAND; THENCE THE FOLLOWING THREE (3) COURSES ALONG THE EAS -1 BOUNDARY LINE OF LEASE AREA I SUEMERCED LAND,' THENCE No 1'49'04 V FOR A DISTANCE OF 408,81 FEET. FAIENCE , NCE N09'28'51'W FOR A DISTANCE OF 208,77 FEET; THENCE NJ42950"W FOR A DISTANCE OF 222 43 FEET THENCE 54 706'32 "E FOR A DISTANCE OF 196.27 FE. --T- mtvcE S11'52'531- FOR A Dls7NICE' OF 155.49 F=,- THENCE 509,001G41F FOR A. DISTANCE- OF 105, 01 FEET, THENCE 502* 12'2 1 'E - FOR A DISTANCEOF 299.70 FEET- THENCE E E7;-THE'NCE S 15'38'02'W FOR A DISTANCE OF I I J, 23 FEET TO NE POINT OF BEGINIVI'%'G. CONTAINING 2J,696 SQUARE FEET, a54 ACRES, MORE OR LESS, R0J. NO: 2008 MT 5 - E:1 7-�:lb 10 :D—RAWN.6BL ir-HECKED:AS 5,�;ALL:X� NUILU AT1 LUE)OVICI & ORANGE LEASE AREA 3 LEGAL C0NSULTING ENGINEERS, INC- DESCRIPTION Ift $29 PALERMO AVENUE. CQpAL 3ABLZ.S, FLORIDA 33534 - 308!44-1 60`0 - LB 1012 SHM 1 OF 1 SHEE Page 167 Page 168 Michibit SUBMERGED LAND MIAMI OUTBOARD CLUB- L EASE AREA LEGAL DESCRIPTION: SUBh(ERGED LAND EAST OF THE APPROXIMATE EDGE OF WATER LINE MEASURED IN AUGUST 16th •2010 AT 10.00 AM, . BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: (INCLUDING SUBMERGED LANDS LEASE AREAS -1 AND 3) COMMENCE AT A POINT SHOWN AS P.T. STA. 47 -t-16-93 ON THZi OF. iCiAL MAP OF LOCARON AND SURVEY OF A POR77ON OF SECTION 8706, DESIGNATED AS A PART OF STATE ROAD A-1-A IN DADE COUNTY, FLORIDA, AS RECORDED IN MAP BOOK ,56 AT PAGE 71 OF TR,E PUBLIC RECORDS CF DADE COUNTY, FLORIDA, SAID POINT BEING THE POINT OF TANGENCY OF 7HF CENT61? L/AlE OF THE MOST SOUTHERLY CURVE OF GENERAL. DOUGLAS' i MCARTHUR CAUSEWAY RUNNING NORTHWESTERLY FROM THE SOUTHEASTERLY CORNER OF WATSON ISLAND AND HAVING A RADIUS OF 1910.98 ,FEET AND A CENTRAL ANGLE OF 34'47'1,5" THENCE N25' 1C1'w5 "E ALONG THE RADIAL LIME OF THE ABOVE MENTIONED CURVE FOR A DISTANCE OF 65.00 FEET; A RADIAL LINE TO SAID POINT SEARS S25' 10'35"w TO 7HE POINT OF BEGINNING OF THE, FOLLOWING DESCRIBED PARCEL OF LAND,-. THENCE t51.74 FEET NORTHWESTERLY ALONG THE ,NORTHERLY RIGHT-OF-WAY LINE OF.SAID GENERAL DOUGLAS MACAPTHUR CAUSEWAY SAID LINE BEING THE ARC OF A CURVE TO THE RiGHT HAVING A RADIUS OF 7845.08 FEET AND A CENTPAL ANGLE OF 4`4244" FOR A DISTANCE OF 151.74 FEET TO A POINT OF INTERSECTION W77H A NON-TANGENT LINE, A RAD14L LINE TO SAID POINT BEARS S29'33'19`jv THENCE THE FOLLOWING TWENTY .(20) COURSES ALONG THE APPROXIMATE EDGE OF WATER N0752.63W FOR A DISTANCE OF 144.76 FEET' THENCE N78'14'13'E FOR A c015TANCE Or 41.73 FEE?;' THENCE NO6`5320"W FOR A DISTANCE OF 4797 FEET THENCE S8251`18"W FOR A DISTANCE OF 30.96 FEET, THENCE ND325'04'E � FOR A DISTANCE OF 14,96 FEET' THENCE N26'50'.24 W FOR A DISTANCE OF 3.59 .FEET; THENCE NG,715 51'W FOR A DISTANCE OF 9.51 FEET; THENCE N20'0623'E FOR A DISTANCE OF 12.66 FEET THENCE N2.22,929'W FOR A DISTANCE OF 10.75 Fr--T,' THENCE N06-56102W FOR A DISTANCE iJF 14.5, FEET,• THENCE N00. fI252"E FOR A DISTANCE OFF 68.47 FEET; THENCE N05.47'13"W FDR A DISTANCE OF 34,09 FEET' THENCE N2223'68"W" FOR A DISTANCE OF 25,72 FEET; THENCE A3320'1I FOR A DISTANCE OF 46.09 FEET° THENCE N20'29 25 W FOR A DISTANCE OF 15.97 FEETTHENCE N 12'32 :53 "W FOR A s I DISTANCE OF 113.64 FEE ,• THENCE N05'53'23"# FOR A DISTANCE OF 69.07 FEET; THENCE I N04'04'481E FOR A DISTANCE OF 24.06 FEET; THENCE N33'55'44'E FOR A DISTANCE OF 12.90 FEET; THENCE N 73'2744 "W FOR A DISTANCE OF 30.07 FEET TO A POINT OF INTERSECTION WITH THE NORTH LINE OF LEASE AREA 1; THENCE N13'2744TI FOR 2.3.99 FEET ALONG THE APPROXIMATE EDGE OF WATER,' THENCE N69`2978 E FOR A DISTANCE OF 61.86 FEET` THENCE S47'08 32 E FOR A DISTANCE OF .196.27 FEET, • THENCE 511'52 a3'E FOR A DISTANCE OF 155.49 FEET; THENCE S09'00'94'E FOR A DISTANCE OF .10.5.01 FEET,' THENCE S02'1221 'E" FOR A DISTANCE OF 299.70 FEET' THENCE S15 38'02 "W FOR A DISTANCE OF 17.3.2.3 FEET TO THE POINT OF BEGINNING. CONTAINING 127,565 SQUARE FEET, 2.93 ACRES, MORE. OR LESS. FROG. NO: 2GR8 017 ATE: DRAWN:83L CHECKED.-A5 SCALE: RS NOTED LUOOH/ ICI & GRANGE LEASE AREAS I &3 CONSULTING ENGINEERS, INC_ LiHMERC� D LAND jI 329 FALERMa AVENUE, CORAL GABLES, FLORIDA 33134 - 9061448-9600 - LB t012 SH1 O IHE' Al3pl^vtPSDn`.n15is¢Vi1".F+'nJcU4rAGelkkO�& 98Ntt �%T39sUD CI.UBFOVii18R0 Isis NIPif UUiH D CLU6-3-KV S'V9lcRZ dwg IVl6 FO E,25 :6 Pm EST Page 168 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 58,077 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 170 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) 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 Page 171 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. 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. Page 172 Employ 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. 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. Page 173 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 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 Page l 74 waterfront park in Coconut Grove; visiting galleries in Coral Gables or Miami Beach; hitting those unbelievably chic stores in Bal 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 $546 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 S 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. 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 Page 175 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 economic/populations 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 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 Page 176 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 177 Exhibits Visat dear websits #br si- xuaaov —s- - FOE. City Of Miami PURCHASE ORDEFZJRELEASE NUMBER Change e Unit jr-harige 1704216 NL"bef Data i Purchase Order0 .� � R 3i pa ie led at IG�f uacalhur CaL°Ysewa Department 6f P'�iE'G$13�a§bt Page i4F., ord'e Date ch5e:34r"+3d nct N66PiRiw v�A-t�6. X 3307,38 Miami, Ficsrreia`°,...i'-0°r @-."2`$¢3 Net is (306) 416-1922 Fax - () 435-1925 BUY- Taxpaff 110 SupOw No. TeieghmeNo. City v3 Miami - FIF - Asset Mw ager t S3,J9du�IM" 2W8 3 +W� {€�33 4444 5 46911Avre.. -3rd Floor Amr ada .baa" and Covisukmg €gay f.lzmartY Annaaa ml. FL 33130 ``"-•� PO $= 1247 :ouch Miarr{i. FL 33243 City,5f Wami - Fnanre - Gen" A=unt <&5,GCG - Skiis Purcitl-,e - PursLant to Contrwt498aro n 443 SW' Ave, dth Fier +�ffiFf� F�18r' GPEi� i 4bC&F+f KFC €®C%5r9rfl�lli k arr t 3313Q Customet Aciourt Number Fax - W5y 4€6-1 9K Ett t - t abi�slbwar-r x cern kaiB3W MG forWatO A copy oq ihj� trwvfte to the Sb43 To a"gas at{ow. Ei'crcee Stan Dasa Et due End Dale Lamt FOE. Cot rod4 Cafe Decr C'eI Daae e Unit ` nr? Pme Ex e d Pree i 'w ly � 3i pa ie led at IG�f uacalhur CaL°Ysewa 2:210I - OR - Knqht Cetete= Man en off Do9w e.i :. } reveeye s de t ect ase by reh-�rence beczrr* Net is z� Yvcomx or iha v -der e3A 'Number. Tat2l Arrmunt:. ``"-•� Oka {8r- <&5,GCG - Skiis Purcitl-,e - PursLant to Contrwt498aro n +�ffiFf� F�18r' GPEi� i 4bC&F+f KFC €®C%5r9rfl�lli Detc `cv--d# t�:ePC Rey, 4 2�b6` dwoe wdh Reso I"—fW. FOE. Requ-satin Number: 'Yeacbr `nsenaceas Desksnk .5< 52 1. Florida Tax Exe pa 0� GI -p epam"e t: ter es: Dqect lnvv s m Duocateto the dress gnwM abow- 2:210I - OR - Knqht Cetete= Man en off 3, Ter^rss and ons se=_ :n cur cx QLota.-on on the Payment Terris: Conrad Persmt reveeye s de t ect ase by reh-�rence beczrr* Net is z� Yvcomx or iha v -der e3A 'Number. 75i4t�14 ``"-•� Oka {8r- +�ffiFf� F�18r' GPEi� i 4bC&F+f KFC €®C%5r9rfl�lli Detc `cv--d# t�:ePC Rey, 4 2�b6` Page 178 EDUCATION EMPLOYMENT Appraiser's Qualifications Document Albert J. Armada, MAI, SRA PO Box 1247 South Miami, Florida 33243 Phone (306) 266-3930 Cell (786) 208-4983 albert[cD_armadaappraisal.com FLORIDA INTERNATIONAL UNIVERSITY Master of International Business, 1984 UNIVERSITY OF MIAMI Certificate of Middle Management, 1979 UNIVERSITY OF FLORIDA Bachelor of Arks, with Honors, 1974 MIAMI DADE JUNIOR COLLEGE Associate of Arts. 1972 LASALLE HIGH SCHOOL High School Diploma, 1970 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 appraisa regional and market/neighborhood analysis. reviewed appraisal work of subordinated certified and trainees. CITY OF MIAMI (6-7715-93), Miami, Florida I reports. Prepared/update Trained, supervised and staff appraisers, including Position: Property & Lease Manager Property & Lease Management Division G.S.A. Department, 11/92 — 611993 Department of Development, 1990 G.S.A. Department, 1986 Finance Department, 6184 -1986 Position: Acting Assistant Director Treasury Management Division Finance Department, 6183 — 6184 Position: Lease Manager Page 179 Property & Lease Management Division Finance Department, 1982 Position: Protects Supervisor APPRAISAL Administration Division FINANCIAL Community Development Dept., 1980 Position: Administrative Assistant TRAINING Administration Division Community Development Dept., 1979 Position: Personnel Officer Employment & Training Division Human Resources Dept., 1977 DECOR INTERNATIONAL (10-7619-77) Miami, Florida Position: Sales Representative MIAMI-DADE COUNTY (10-7611-77) Miami, Florida Position: Program Director / Unit Supervisor Department of Health & Human Resources STATE OF FLORIDA (10-74110-75) Miami, Florida Position: Youth Counselor Department of Health & Human Resources LATERAL VALUE ADJUSTMENT BOARD (2008 to 2014/2016 to Present) EMPLOYMENT Circuit and County Courts Miami -Dade County, Florida Position: Special Magistrate HEDG-PETH & GALLAHER, INC., (199712001) 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 Anafysis, C-102, 2006 TRAINING Financial Analysis, C-101, 2006 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 INTERNATIONAL PERSONNEL MANAGEMENT ASSOCIATION RESOURCES Job Analysis, 1984 TRAINING DUN & BRADSTREET Effective Supervisors, 1980 Effective Techniques for Personnel, 1978 UNIVERSITY OF MIAMI 1 NIDA Training for Trainers, 1976 STATE OF FLORIDA HRSIDYS 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, Personal Property and Intangible Business Assets, 2012 Valuation for Financial Reporting, 2009 Page 181 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 PROFESSIONAL APPRAISAL INSTITUTE ASSOCIATIONS 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. BUSINESS Miller Ludlam LLC - 2001-2008 VENTURES/ Shopping Center - Partner EXECUTIVE POSITIONS 4-6 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 - (3`d place) LICENSES 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 — 1 000073 -- (Relinquished 2013) Page { 82