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09-B-1&2 Kammer AppearanceNAME REQUEST FOR APPEARANCE AT CITY COUNCIL MEETING MAI L TO CITY MANAGER CITY OF PARIS P. O. BOX 9037 PARIS, TX 75461-9037 ADDRESS STREETADDRESS TELEPHONE REASON FOR APPEARANCE AT CITY COUNCIL MEETING: DATE APPROVED: DATE DISAPPROVED: Michael E. Malone, City Manager REQUEST FOR REINVESTMENT ZONE INCENTIVES OFFERED BY THE CITY OF PARIS THE LAMAR COLONY An Assisted Living Community TABLE OF CONTENTS I. APPLICATION with Attachment II. PLATS and MAPS III. LEGAL DESCRIPTION OF PROPERTIES A. LAND (refinance), previous owner - Phillip Nance B. LAND (purchase), current owner - Rance Merritt IV. APPRAISAL V. PRELIMINARY DRAFT OF MONTHLY CASH FLOW PROJECTION APPLICATION CITY OF PARIS, PARIS, TEXAS TAX ABATEMENT AND REINVESTMENT ZONE DESIGNATION APPLICATION THIS APPLICATION MUST BE RECEIVED BY THE CITY NOT LESS THAN SIXTY (60} DAYS PRIOR TO THE DATE THAT CONSTRUCTION OF THE IMPROVEMENTS IS EXPECTED TO COMMENCE. 1. NAME OF APPLICANT FIRM: S. I. Management, Inc. & KG Properties, LLP ~.. ADDRESS: 2485 Kessler Paris, TX 75460 3. TELEPHONE: (903) 784-7979 or (903) 783-5149 (Pager) 4. PROJECT ADDRESS {if different from above): 1746 Bonham Street, Paris, TX 5. TYPE OF BUSINESS ORGANIZATION {corporation, etc.): Limited Liab.Partnership (R.E. ownership) Texas Corporation (Operations) in the state of Texas 6. NAME{S) OF PRINCIPAL OWNERS OR OFFICERS: Gary W. Kammer Kenneth L. Kammer Leonard J. Kmmmer~ Jr. 7. IS THIS BUSINESS SEASONAL IN NATURE: YES x NO 8. NUMBER OF CURRENT EMPLOYEES: (in Enterprise Zone) 0 (in City of Paris) (in Lamar County) 0 9. CURRENT PAYROLL (in City of Paris): $. 0 10. NUMBER OF NEW JOBS PROPOSED: 25 11. LIST THE TYPE AND NUMBER OF NEW JOBS TO BE CREATED AND THE ~e~ PROJECTED SALARY FOR EACH JOB: /7\ ~ Manager~ ~5--[<~ 3~//Medical Aides ~ · ~ ~ ~ . . Maintenance ~/~ ~12 Person~S/~ Asst. ~1 Activity Director(~/~ < Food Service Pe~r~onnel · ! ~Laundry Worker~/~. ~ 2 Housekeeping ~,/~. ~. 1 Office ManagerG)~/~/~ 12. PLEASE PROVIDE INFORMATION PERTAINING TO THE TRANSFER OF JOBS RELATED TO THE IMPROVEMENTS OR EXPANSION: N/A 13. TOTAL IMPACT ON PAYROLL FROM NEW JOBS: $ 399,000 14. PRE-PROJECT MARKET VALUES, AS DETERMINED FOR LOCAL PROPERTY TAXATION, OF THE EXISTING FACILITY, SITE, TANGIBLE PERSONAL PROPERTY, AND INVENTORY: A. REAL PROPERTY: $ 45,000 B. TANGIBLE PERSONAL PROPERTY $. o 15. GIVE A DETAILED DESCRIPTION OF THE PROPOSED IMPROVEMENTS OR EXPANSION (ATTACH ADDITIONAL SHEETS, IF NECESSARY): Construct a state licensed 39 suite assisted living community, consisting of a 36~000 sq.ft, structure on a 68~460 sq.ft, tract of land located in the reinvestment enterprise zone designated by the City of Paris. An adjacent lot would be purchased for future expansion. 16. THE ESTIMATED DATE OF COMPLETION OF THE IMPROVEMENTS: January, 2002 to March 2002 17. THE ESTIMATED DATE OF OPERATION OF THE IMPROVEMENTS OR EXPANSION: April, 2002 to June 2002 18. ESTIMATES OF AMOUNTS TO BE INVESTED: A. PURCHASE OF LAND/BUILDING: $ 45,000 + 55,000 (expansio B. NEW BUILDING CONSTRUCTION: $. 2,484,000 C. BUILDING ADDITIONS: $ o D. IMPROVEMENTS TO EXISTING BLDG. $. o E. MACHINERY & EQUIPMENT: $. 88,000 F. FURNITURE & FIXTURES: $ 72,000 TOTAL INVESTMENT AMOUNT $. 2,744,000 19. TOTAL INVESTMENT ELIGIBLE FOR ABATEMENT: $ 2,744,000 from item~ (please circle) ~) ~ C D ~ (~) 20. LIST THE TYPE AND VALUE OF ECONOMIC DEVELOPMENT INCENTIVES REQUESTED (I.E., TAX ABATEMENT, LOCAL SALES TAX REFUND, SALE OF CITY- OWNED PROPERTY, ETC.): See Attached $ $ $ 21. FOR TOTAL PERSONAL PROPERTY INVESTMENT INDICATED ABOVE IN ITEM 19, LINES E & F, SHOW PROJECTED DOLLAR VALUE IN EACH DEPRECIATION SCHEDULE. KG Properties, LLP SI MANAGEMENT, Inc. TIlE LAMAN OOLONY An Assisted Living Community 2485 Kessler Paris, Texas 75460 USA Phone 903-783-5149 September 04, 2001 RE: ITEM # 21 OF THE APPLICATION FOR REINVESTMENT ZONE DESIGNATION · THE TYPE AND VALUE OF ECONOMIC DEVELOPMENT INCENTIVES REQUESTED 1.) 100% Tax Abatement on improvements to site and building for seven (7) years $_2,744,000.00_; and 2.) 100% Refund of Local Sales and Use Taxes @ $100.000.00_; and 3.) Direct Low-Interest Loans/Packages: land ~ $36,000.00(refinance) & land @ $55,000.00(purchase for expansion), building construction ~ $1,987,200.00 , machinery & equipment @ $ 70,400.00 furniture & fixtures ~ $ 57,600.00 , working capital ~ $100,000.00 ; and 4.) Amend Zoning Ordinances in order to promote economic development in the zone; and 5.) Give prompt consideration to building permit requests; and 6.) Utilization of the Waterworks and Sewer System Revenue Bonds for the purpose of improvements and the payment of professional services related to the construction and financing of such projects; and 7.) Increase Police and Fire Protection for this vulnerable segment of our community; and 8.) Reduced Utility Rates on Water and Waste Water by ten (10)%, as well as, the five (5)% rate reduction rider offered by TXU Electric and Gas, both for seven (7) years: water and waste water $500.00 ~ 10% rate reduction = $50.00 per month, electric and gas via TXU $_2,2322)_(l ~ 5% rate reduction = $111.60 per month; and 9.) Provide funding for improving of existing roads to the site as needed; and [ ATTACHMENT ] I. (7 yr) ~ IV. (16 yr) II. (10 yr) V. (18 yr) III. (12 yr) VI. (9.0 yr) 22. STANDARD INDUSTRIAL CLASSIFICATION (SIC) NUMBER: 623000 23. NAME, ADDRESS, AND PHONE NUMBER OF CONTACT FOR THE PURPOSES OF THIS APPLICATION: Kenneth L. Kamer 784-7979 or 783-5149 6625 Pecan Place Paris, TX 75462 24. INDICATE THE DATE AND TIME THAT CITY OFFICIALS MAY INSPECT THE CURRENT FACILITIES PRIOR TO THE COMMENCEMENT OF CONSTRUCTION: September, 2001 25. IF APPLICABLE, THE NAME, ADDRESS, AND PHONE NUMBER OF ANY CONSULTANT/ FINANCIAL ADVISOR ASSISTING YOU WITH THIS APPLICATION: Paul T. Wells, CPA (903) 785-8481 1323 Lamar Avenue, St. D Paris, TX 75460 26. NAME AND TITLE OF PERSON WHO WILL HAVE AUTHORITY TO SIGN ANY AGREEMENTS RELATED TO THIS APPLICATION: Kenneth L. Kammer or Gary W. Kammer 27. DO YOU INTEND TO SUBMIT AN ENTERPRISE PROJECT APPLICATION? No 28. PLEASE ATTACH THE FOLLOWING:' 1. A PLAT SHOWING THE PRECISE LOCATION OF THE PROPERTY, ALL ROADWAYS WITHIN 200 FEET OF THE SITE, AND ALL EXISTING ZONING AND LAND USES WITHIN 200 FEET TO THE SITE. 2. IF THE PROPERTY IS DESCRIBED BY METES AND BOUNDS, A COMPLETE LEGAL DESCRIPTION. 3. IF A RECENT APPRAISAL HAS BEEN DONE, ATTACH THE SAME HERETO. OTHERWISE, ATTACH A COPY OF THE PRINTOUT FROM THE LAMAR COUNTY APPRAISAL DISTRICT WHICH SHOWS THE VALUE OF THE PROPERTY. THIS PRINTOUT SHOULD 13E AVAILABLE UPON REQUEST. CERTIFICATIONS 1. THE APPLICANT BELIEVES THE INFORMATION CONTAINED HEREIN AND SUBMITTED HEREWITH IS COMPLETE AND CORRECT TO THE BEST OF HIS OR HER KNOWLEDGE. 2. THE APPLICANT HEREBY CERTIFIES THAT THE EXPANSION OR CONSTRUCTION OF IMPROVEMENTS THE SUBJECT OF THIS APPLICATION HAS NOT BEEN COb{MENCED. 3. THE APPLICANT UNDERSTANDS THAT INITIATION OF THE PROJECT PRIOR TO RECEIVING FINAL LOCAL APPROVAL M3kY RESULT IN THE LOSS OF THE ABATEMENT. 4. THE APPLICANT UNDERSTANDS THAT, IF APPROVED, THE INFORMATION CONTAINED IN THIS A~PPLICATION WILL FORM THE BASIS FOR A SIGNED AGREEMENT BETWEEN THE AJ?PLICANT FIRM AND THE CITY. STATE LAW AND LOCAL POLICY REQUIRE ANNUAL MONITORING FOR COMPLIANCE TO THAT AGREEMENT. FAILURE TO COMPLY FLAY RESULT IN LOSS OF INCENTIVES. 5. THE APPLICANT HEREBY CERTIFIES TN_AT THE FIRM IS CURRENT IN ALL TAX OBLIGATIONS TO THE CITY OF PA/{IS. COMPANY: S.I. Management, Inc. Mignatur~- Name: Kenneth L. Ka~er Title: President Date: 9-4-01 PLATS & MAPS ADDENDA City Map Photographs of the Subject Plat Map Flood Map Appraisal Order Qualification Summary for the Appraiser Photographs Looking north fi.om church lot across Bonham street at the subject, dwelling on right to be razed Looking east on Maple, subject on right starting at utility pole and extending east just past third (far) dwelling, first two dwellings to be salvaged (sold for move off) far dwelling to be razed PAT MURPHY & ASSOCIATES Photographs Looking east on Bonham, subject on left; Immanuel Baptist Church on right and Hicks Tire and Muffler in background on right Looking northeast across Bonham at west half of frontage PAT MURPHY & ASSOCIATES Photographs Looking south at 1753 Maple Looking south at 1749 Maple PAT MURPHY & ASSOCIATES ~ L tiro. lJ ZONE B ZONE TM 17 -IMl'r OF ZONE B ZONE A2 ~ATIONAL ~LOOO INSURANC[ PROGR ~ Lt. ~ FIRM 4 FLOOD INSURANCE RATE MAP ~ zor;,-~' 'E'r ~ A2 ClTT OF ~ ZONE PARIS, TEXAS ~ -ZONE B LAMAR COUNTY c~ PANEL 3 OF 8 ~.' Branch Tributary No. 10 B COMMUNI~-PANELNUMBER ,$33 480427 0003 B EFFECTIVE DATE: DECEMBER 15,1983 Federal Eme~ency Manasement Astency ~ LAKE 1'0 PAT MAYSE LAKE: i CROOK I II L "''''' ~°"'""' ~"' °" · ,~.oo~: ~, VISITORS ~ CH~BER ~NDU~TR~AL CLEMENT ~ ~ ~ ~ OAK AV ~ / ~ m~USTmXL I CAMPBELL I 61 Bn BROWN IND~TRIAL INDUSTRIAL / ~ITE ~A . , ~ .... FIELD ~, 'X~ ,/ I INOUSTRIAL · ~: ~ I . '" Tex~s. ~e o~ the ~ey st~ c'~ ~he ?:~' is P~ris c-: .~c ~ ~ k~p OOUn~. ~e bountiful P~t M.3~'se ~0~r a~g oe3utifu .......... ~,~' '-" ~' ~ ~ :mblem wiP ~ founo on out mop a;~n~ *~e Tra os hu~ds Of t~Cd~qas of ~oLqe travel soum fo vi? the [o~ Slot State The G"een Car~t ~oute is the ¢,onest. ~st ~enic route from the Mid~st fo the Gutf C~st Tulso ond the Ind~on No~iO~O~ Turnpike. We hove pioced the emblem ~ the mod otong the route ~CA FIRST FEDERAL Community Bank . APPRAISAL ENGAGEMENT LETTER You are hereby engaged to provide appraisal se~ices to FIRST FEDE~L COMMUNIIY BANK to hcilitate the unde~riting of a loan application. You are to provide the appraisal service in compliance with the Appraisal Policies of FIRST FEDERAL COMM~ITY BANK, a copy of which has been provided to you previously, and to provide your services in a timely manner. ~ 1-4 Family Dwelling: [ - Limited Complete Summa~ ~Residential loffacreage - Na~ative Repog Aaach flood zone map ~ Investment Prope~y - Income Approach required REALTOR: CONTRACTOR: INSTRUCTIONS TO SUE HOUSE: ~/~ m~ c ~ ~ ~_ /~Z e__ g ~ ATTACHED HEREWITH: ~es Contract Plans ~ Specifications of material __ List of contractors/sub-contractors with b.~.¢....~ First Federal Representative Date BANKING CENT ERS PARIS PARIS - LOOP ~. PL~SA~ C~RKSVlLLE ~ ~ARKSVILLE ST. 3010 NE L~P 286 805 N. ~DISON ~3 W. WA~INGT~ PARIS, ~ 754~ PARIS, ~ 75460 ~. PLEASA~, ~ 7~55 C~RKSVlLLE, ~ 7~ (~3) 7~1 (~3) 784~e81 (903) 5~-1118 (~3) 427-3~ F~ (~3) 7~-6781 F~ (~3) 7~-6781 FAX (~3) 5~-8511 F~ (~3) 427-~ MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION QUALIFICATION SUMMARY FOR W. P.(PAT) MURPHY Owner of Pat Murphy and Associates, Mr. Murphy has been an independent fee appraiser since 1977, appraising and managing residential, farm/ranch, and income producing properties in Texas, Kansas, and Oklahoma, with prior work experience in farming, ranching, building material, and residential/light commercial conslructio/~ businesses. He bas appraised for a wide variety of clients including government agencies, lending institutions, lawyers, title companies, insurance companies, and large corporations. In addition to his appraisal and consultation business, he also manages several ranches and income properties for absentee owners, and resides on his own ranch outside of Paris in Lamar County, Texas. EDUCATION Mr. Murphy graduated from Paris High School in 1965 and from Texas A & M University with a Bachelor of Science degree in Agriculture Economics in 1969. Mr. Murphy has taken and successfully passed over 13 appraisal courses with formal examinations given by the American Institute of Real Estate Appraisers, Society of Real Estate Appraisers; National Association of Independent Fee Appraisers; the American Society of Farm Managers and Rural Appraisers; and the Appraisal Institute. In addition, he has taken numerous seminars from these same appraisal groups on a wide variety of subjects pertaining to property valuation. MEMBERSHIPS, CERTIFICATIONS, DESIGNATIONS State Certified General Real Estate Appraiser- Texas TX-1320215-G State Certified General Real Estate Appraiser - Oklahoma OK-10079 Appraisal Institute - Member Appraisa~ Institute, (MAI), #9495 American Society of Farm Managers and Rural Appraisers - Accredited Rural Appraiser, (ARA), # 948 Appraisal Institute - Senior Residential Appraiser, (SRA) Former RM #1689 Texas Real Estate Commission - Broker #274253 PROFESSIONAL ACTIVITIES Director of the Texas Chapter of the American Society of Farm Managers and Rural Appraisers, 1993 to 1995, Vice President - 1996, President Elect -1997, President - 1998 Member of the national Membership Development Committee of the American Society of Farm Managers and Rural Appraisers, 1994 through 1997 Member of the Regional Panel on Ethics and Counseling of the Appraisal Institute, 1992 to present Co-developer and course coordinator of the seminar "Appraising Rural Residential Properties" for the American Society of Farm Managers and Rural Appraisers Certified Instructor for the American Society of Farm Managers and Rural Appraisers EXPERT TESTIMONY Mr. Murphy has testified as an expert witness regarding real estate valuation before various Federal, State, and County courts in Texas. PAT MURPHY & ASSOCIATES LEGAL DESCRIPTIONS Statement of Account NOTICE: This is a statement of Taxes Paid & Due as of 08/13/2001 02:01:05P;~', based upon the tax records of the tax office. LAMAR COUNTY APPRAISAL DISTRICT Property Information 521 BONHAM Property ID: 20442 Geo ID: 023010-00100-0190 PO BOX 400 Legal Acres: 0.0000 ~ARIS, TX 75461-0400 Legal Desc: WARREN ADDITION, BLOCK 1, LOT 19-20, 1749 1753 MAPLE I Value Information Improvement HS: 6,970 Improvement NHS: 0 Land HS: 8,000 Owner ID: 20433 Ownership: 100.00% Land NHS: 0 NANCE R C Productivity Market: 0 C/O PHILLIP NANCE Productivity Use: 0 Assessed Value 14,970 3610 GRAHAM ST PARIS, TX 75460-3500 Entity Description Pct, Ex Code Description CAD Central Appraisal District 100.00% CPA CITY OF PARIS 100.00% GLA LAMAR COUNTY 100.00% JCP PJC 100.00% SPA PARIS lSD 100.00% Paid Bills Summary Entity Year Statement ID Tax Paid Disc/P&l Paid Att, Fee Paid Under/Over/Refund Posting Date Amount Paid CPA 1996 21681 126.53 60.74 28.09 0.00 01/31/2000 215.36 GLA 1996 21681 86.22 41.39 19.14 0.00 01/31/2000 146.75 JCP 1996 21681 39.18 18.82 8.70 0.00 01/31/2000 66.70 SPA 1996 21681 372.71 178.90 82.74 0.00 01/31/2000 634.35 Total for Year 1996 1,063.16 CPA 1997 21874 135.25 48.69 27.59 0.00 01/31/2000 211.53 GLA 1997 21874 87.81 31.61 17.91 0.00 01/31/2000 137.33 JCP 1997 21874 40.20 14.47 8.20 0.00 01/31/2000 62.87 SPA 1997 21874 370.02 133.21 75.48 0.00 01/31/2000 578,71 -otal for Year 1997 990.44 CPA 1998 21799 135.25 32,46 25.16 0.00 01/31/2000 192.87 GLA 1998 21799 87.81 21.08 16.33 0.00 01/31/2000 125.22 JCP 1998 21799 41.57 9.98 7.73 0.00 01/31/2000 59.28 SPA 1998 21799 370.02 88.80 68.82 0.00 01/31/2000 527.64 Total for Year 1998 905.01 CPA 1999 67373 126.58 0,00 0.00 0.00 01/31/2000 126.58 GLA 1999 67373 77.61 0.00 0.00 0,00 01/31/2000 77.61 JCP 1999 67373 35.94 0.00 0.00 0.00 01/31/2000 35.94 SPA 1999 67373 327.03 0.00 0.00 0.00 01/31/2000 327.03 Total for Year 1999 567.16 CPA 2000 22904 91.32 0,00 0.00 0.00 01/08/2001 91.32 GLA 2000 22904 52.94 0.00 0.00 0.00 01/08/2001 52.94 JCP 2000 22904 24.51 0.00 0.00 0.00 01/08/2001 24.51 SPA 2000 22904 229.64 0.00 0.00 0.00 01/08/2001 229.64 Total for Year 2000 398.41 Total Paid: 3,924.18 Unpaid Bills Summary No Information on File. Paid Refunds Summary No Information on File. *** End of Statement *** NOTICE: This document is not a tax certificate and does not absolve a Taxpayer from tax liability in any way. If this document is found to be Page 1 in error, it may be corrected by the Collection Office listed above. Responsibility to pay the remaining taxes rests entirely with the Taxpayer, as outlined in the Texas Property Tax Code. Statement of Account NOTICE: This is a statement of Taxes Paid & Due as of 08/13/2001 02:00:43PM based upon the tax records of the tax office. LAMAR COUNTY APPRAISAL DISTRICT Property Information 521 BONHAM Property ID: 20433 Geo ID: 023010-00100-0040 PO BOX 400 Legal Acres: 0.0000 2ARIS, TX 75461-0400 Legal Desc: WARREN ADDITION, BLOCK 1, LOT ALL 4-18 W1/2 I 3-17, 1726 BONHAM Value Information Improvement HS: 4,390 Improvement NHS: 0 Land HS: 12,080 Owner ID: 20433 Ownership: 100.00% Land NHS: 0 NANCE R C Productivity Market: 0 C/O PHILLIP NANCE Productivity Use: 0 3610 GRAHAM ST Assessed Value 16,470 PARIS, TX 75460-3500 Entity Description Pct. Ex Code Description CAD Central Appraisal District 100.00% HS HOMESTEAD CPA CITY OF PARIS 100.00% OV65 OVER 65 GLA LAMAR COUNTY 100.00% JCP PJC 100.00% SPA PARIS lSD 100.00% Paid Bills Summary Entity Year Statement ID Tax Paid Disc/P&l Paid Att. Fee Paid Under/Over/Refund Posting Date Amount Paid CPA 1996 21679 56.79 27.25 12.61 0.00 01/31/2000 96.65 GLA 1996 21679 49.29 23.66 10.94 0.00 01/31/2000 83.89 JCP 1996 21679 28.81 13.83 6.40 0.00 01/31/2000 49.04 Total for Year 1996 229.58 CPA 1997 21872 60.71 21.85 12.38 0.00 01/31/2000 94.94 GLA 1997 21872 50.19 18,08 10.24 0.00 01/31/2000 78.51 JCP 1997 21872 29.56 10.64 6.03 0.00 01/31/2000 46,23 Total for Year 1997 219.68 CPA 1998 21797 60.71 14.56 11.29 0.00 01/31/2000 86.56 ~LA 1998 21797 50.19 12,04 9.33 0.00 01/31/2000 71,56 JCP 1998 21797 30.57 7.32 5.68 0.00 01/31/2000 43.57 Total for Year 1998 201,69 CPA 1999 67371 61.77 0.00 0.00 0.00 01/31/2000 61.77 GLA .,1999 67371 48.65 0,00 0.00 0.00 01/31/2000 48.65 JCP '~"1999 67371 29.19 0.00 0.00 0.00 01/31/2000 29,19 Total for Year 1999 139.61 CPA 2000' 22902 0.00 0.00 0.00 0.00 01/08/2001 0.00 GLA 2000 22902 8.73 0.00 0.00 0,00 01/08/2001 8.73 JCP 2000 22902 10.59 0.00 0.00 0.00 01/08/2001 10.59 SPA 2000 22902 0.00 0.00 0.00 0.00 01/08/2001 0.00 Total for Year 2000 19,32 Total Paid: 809,88 Unpaid Bills Summary No Information on File, Paid Refunds Summary No Information on File. *** End of Statement *** NOTICE: This document Is not a tax certificate and does not absolve a Taxpayer from tax liability in any way. If this document is found to be Page 1 in error, it may be corrected by the Collection Office listed above. Responsibility to pay the remaining taxes rests entirely with the Taxpayer, as outlined in the Texas Property Tax Code. T,~^~,~. ~ Statement of Account NOTICE: This is a statement of Taxes Paid & Due as of 08/13/2001 02:00:55P~' based upon the tax records of the tax office, LAMAR COUNTY APPRAISAL DISTRICT Property Information 521 BONHAM Property ID: 20434 Geo ID: 023010-00100-0050 PO BOX 400 Legal Acres: 0.0000 ~ARIS, TX 75461-0400 Legal Desc: WARREN ADDITION, BLOCK 1, LOT 5-6, 1746 BONHAM Value Information Improvement HS: 0 Improvement NHS: 0 Land HS: 0 Owner ID: 20433 Ownership: 100,00% Land NHS: 10,000 NANCE R C Productivity Market: 0 C/O PHILLIP NANCE Productivity Use: 0 3610 GRAHAM ST Assessed Value 10,000 PARIS, TX 75460-3500 Entity Description Pct, Ex Code Description CAD Central Appraisal District 100.00% CPA CITY OF PARIS 100.00% GLA LAMAR COUNTY 100.00% JCP PJC 100.00% SPA PARIS lSD 100.00% Paid Bills Summary Entity Year Statement ID Tax Paid Disc/P&l Paid Att. Fee Paid Under/Over/Refund Posting Date Amount Paid CPA 1996 21680 72.69 34.89 16.14 0.00 01/31/2000 123.72 GLA 1996 21680 49.53 23.77 11.00 0.00 01/31/2000 84.30 JCP 1996 21680 22.51 10.80 5.00 0.00 01/31/2000 38,31 SPA 1996 21680 214.11 102.78 47.53 0.00 01/31/2000 364.42 Total for Year 1996 610.75 CPA 1997 21873 77.70 27.98 15.85 0.00 01/31/2000 121.53 GLA 1997 21873 50.45 18.16 10.29 0.00 01/31/2000 78.90 JCP 1997 21873 23.10 8.32 4.71 0.00 01/31/2000 36.13 SPA 1997 21873 212.57 76.52 43.36 0.00 01/31/2000 332.45 'otal for Year 1997 569.01 OPA 1998 21798 77.70 18.64 14.45 0.00 01/31/2000 110.79 GLA 1998 21798 50,45 12.10 9,38 0.00 01/31/2000 71.93 JCP 1998 21798 23.88 5.72 4.44 0.00 01/31/2000 34.04 SPA 1998 21798 212,57 51.02 39,54 0.00 01/31/2000 303.13 Total for Year 1998 519.89 CPA 1999 67372 82.27 0.00 0.00 0.00 01/31/2000 82.27 GLA 1999 67372 50.44 0.00 0.00 0.00 01/31/2000 50.44 JCP 1999 67372 23.36 0.00 0,00 0.00 01/31/2000 23.36 SPA 1999 67372 212.56 0.00 0,00 0.00 01/31/2000 212.56 Total for Year 1999 368.63 CPA 2000 22903 61,00 0.00 0.00 0.00 01/08/2001 61.00 GLA 2000 22903 35.36 0.00 0.00 0.00 01/08/2001 35.36 JCP 2000 22903 16.37 0.00 0.00 0.00 01/08/2001 16.37 SPA 2000 22903 153.40 0.00 0.00 0.00 01/08/2001 153.40 Total for Year 2000 266.13 Total Paid: 2,334,41 Unpaid Bills Summary No Information on File. Paid Refunds Summary No Information on File. *** End of Statement *** NOTICE: This document is not a tax certificate and does not absolve a Taxpayer from tax liability in any way. If this document is found to be Page 1 In error, it may be corrected by the Collection Office listed above. Responsibility to pay the remaining taxes rests entirely with the Taxpayer, as outlined in the Texas Property Tax Code. United General Title Insurance Company LEGAL DESCRIPTION Legal description of the land: Situated in the County of Lamar and State of Texas, a part of the ASA JARMAN HEADRIGHT SURVEY, being Lot number four (4), and the West one-half of Lot number three (3) of Warren's Addition to the City of Paris, Lamar County, Texas, also Lot Number Eighteen (18) and the West one-half of Lot number seventeen (17) in the Plat of Warrens Addition to the City of Paris, Texas, as shown by the plat recorded in Book 70, Page 367, of the Lamar County Deed Records. Lots Nineteen (19) and twenty (20) of the Warren Addition to the City of Paris, a part of the ASA JARMAN SURVEY, according to plat of such addition, recorded in Book 70, Page 367, Lamar County Deed Records. All those certain lots or parcels of land in Lamar County, Texas, described as Lots Five (5) and Six (6) of the Warren Addition to the City of Paris, according to map or plat of such addition recorded in Book 76, Page 367, Lamar County Deed Records. TLTA Commitment (Property Description) (014736ug.pfd/014736UGI11 ) APPRAISAL AN APPRAISAL OF A 68,460 SF Lot 1726-1746 Bonham & 1735-1753 Maple Paris, Lamar County, Texas (Kmnmer) Prepared For Mr. Pat Bassano First Federal Community Bank 630 Clarksville Street Paris, Texas 75460 File #Kammer. 801 PAT MURPHY & ASSOCIATES SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Location: 1726-46 Bonham Street and 1735-53 Maple, Paris, Texas Buyer: Kenneth L. Kammer Rights Appraised: Fee Simple Property Description: Four old single family dwellings (no value) on an 68,460 SF commercial site Highest and Best Use: Subdivision for General Retail Use Estimate of Property Value: Sales Comparison: $55,000 Final Opinion of Value: $55,000 Date of Value: August 14, 2001 PAT MURPHY & ASSOCIATES Client: Mr. Pat Bassano First Federal Community Bank 630 Clarksville Paris, TX 75460 Appraiser: Pat Murphy and Associates 712 19th SE Paris, TX 75460 Identification of the Property The subject was essentially six platted lots and two half lots comprising some 68,460 SF of commercial land situated on the north side of Bonham street and the south side of Maple Avenue some 160' west of 17th NW street in the western portion of Paris, Lamar County, Texas. The street addresses were 1726 and 1746 Bonham street and 1735 through 1753 Maple Avenue, Paris, Texas. History of the Subject The lots have belonged to R. C Nance and his estate for many years. Some of the four dwelliugs have been rented but ali were vacant at the inspection. The buyer will raze two dwellings and sell the two others to be moved. The subject has been listed for sale since December 1, 1999, as two lots, a 210' x 156' facing Bonham and a 210'x 155' lot facing Maple for a total list price of $50,000. The buyer offered $45,000 and the seller accepted the offer. The two halves were separated by a 15' dedicated but undeveloped alley and they were zoned Two Family. Since the contract was signed on June 22, 2001, the property was re-zoned General Retail and the alley has been approved to be closed. It will formally be closed on September 6, 2001, but all adjacent property owners have signed the petition and it has received approval by the Director of Public Works, City Attorney, and the City Engineer. The buyer offered $45,000 and the seller accepted the offer. The appraiser was unaware of any other contracts or offers to sell or purchase the property. Purpose of the Appraisal The purpose of this appraisal was to develop an opinion of the market value of the fee simple estate as of August 14, 2001. Intended Use of the Appraisal The intended use of this appraisal was to aid the client and intended user, First Federal Community Bank in underwriting a ~nortgage loan on the subject. Its use by others or for any other use was not intended by the appraiser. Legal Description The subject is legally described as Lots 4, 5, 6 18, 19, 20 and the west half of Lots 3 and 17, Block I, Warren Addition to the City of Paris. As a result of the 15' alley closing, the each lot will have an additional 7.5' of depth. PAT MURPHY & ASSOCIATES 2 Scope of the Appraisal The scope of an appraisal involves the extent of the research and analysis necessary to arrive at a credible, supportable opinion of value. The scope may vary with the differences in complexity, size, types, and value sought. The final value estimate was developed as a Complete Appraisal and reported in this Summary Report format. This Complete Appraisal has been made in conformity with the Uniform Standards of Professional Practice. The old improvements have essentially no value and the cost approach was omitted. The income approach is not relevant to vacant land in this area and it too was omitted. Thus, the sales comparison approach was the only meaningful approach to use in appraising property of this type. The subject is essentially a large tract of vacant commercial land on one of the major corridors entering Paris. As such, the market research was limited to the Bonham street corridor. The appraiser has appraised numerous vacant and improved tracts in Paris and on Bonham street and no steps were necessary to fulfill the competency provision of the Uniform Standards of Professional Appraisal Practice. During the conduct of this appraisal, the appraiser personally inspected the subject property and its neighborhood, conducted research into the present land use trends, comparable land sales and listings, inspected those sales and listings, confirmed the sales data with one of the principals involved, developed an analysis of highest and best use, analyzed the sales in comparison to the subject property, formed an opinion of value and produced this appraisal report. In the analysis of the area, neighborhood, highest and best use, supply and demand, and the gathering of comparable data, the appraiser surveyed the brokers active in the local commercial market; lenders; governmental statistics and public records; several local commercial investors and property owners on this strip; as well as the files of Pat Murphy and Associates. The subject was inspected on the date of value and the date of this report was August 25,200 !. No personal property was included in the opinion of value. PAT MURPHY & ASSOCIATES Assumptions and Limiting Conditions This is a Summary Appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2 ( b ) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. As such, it includes summarized discussions of tile data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. The legal description was assumed correct. No survey of tile property has been made by the appraiser and no responsibility is assumed ill connection with such matters. It should be noted that the metes and bounds calls from the description provided were not complete. Sketches in this report are included only to assist the reader in visualizing the property. No responsibility is assumed for matters of a legal nature affecting title to tile property nor is all opinion of title rendered. The title is assurned to be good and merchantable. Information furnished by others is assumed to be true, correct, and reliable. A reasonable effort has been made to verify such information; however, no responsibility for its accuracy is assumed by the appraiser. All mortgages, liens, encumbrances, leases, and servitude have been disregarded unless so specified within the report. The property is appraised as though under responsible ownership and competent management. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation, asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of, nor did the appraiser become aware of such, during the appraiser's inspection. Tile appraiser has no knowledge of the existence of such materials on or in tile property unless otherwise stated. The appraiser, however, is not qualified to test such substances or conditions. If the presence of such substances as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions may effect the value of the property, the value estimate is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto, that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them. These items include but are not limited to such things as foundation failure, asbestos, radon gas, covered landfills or toxic dumping sites, underground storage tanks, cemeteries, and rare and endangered plants and animals. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless non-compliance is stated, defined and considered in the appraisal report. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, PAT MURPHY & ASSOCIATES 4 unless a non-conformity has been stated, defined and considered in the appraisal report. It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 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 within the report. The appraiser will not be 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 previously made therefor. A valuation relating to an estate in land that is less than the whole fee simple estate related to a fractional interest only in the real estate involved in the value for this fractional interest plus value of all other fractional interests may or may not equal the value of the entire fee simple considered as a whole. The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. One or more of the signatories of this appraisal report is a Member or Candidate of the Appraisal Institute. The Bylaws and Regulations of the Institute require each member and Candidate to control the use of distribution of each appraisal report signed by such Member or Candidate. Therefore, except as hereinafter provided, the party for whom this appraisal report was prepared may distribute copies of this appraisal report, in its entirety, to such third parties as may be selected by the party for whom this appraisal report was prepared; however, selected portions of this appraisal report shall not be given to third parties without the prior written consent of the signatories of this appraisal report. Further, neither all nor any part of this appraisal report shall be disseminated to the general public by the use of advertising media, public relations media, sales media or other media for public communications without the prior written consent of the signatories of this appraisal report. PAT MURPHY & ASSOCIATES Definitions Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably and assuming the price is not affected by undue stimulus, hnplicit 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: a. Buyer and seller are typically motivated; b. Both parties are well informed or well advised, and acting in what they consider their own best interests; c. A reasonable time is allowed for exposure in the open market; d. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e. 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. 1 Fee Simple An absolute fee; a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat; police power, and taxation. An inheritable estate. 2 Leased Fee An ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right of repossession at the termination of the lease. 3 Going Concern Value The value created by a proven property operation; considered as a separate entity to be valued with a specific business establishment. 4 Business Value A value enhancement that results from items of intangible personal property such as marketing, and management skill, an assembled workforce, working capitol, trade names, franchises, patents, trademarks, contracts, leases, and operating agreements. 5 1 Department of Treasury, Office of the Comptroller of the Currency, 12 CFR Part 34.42. 2 American Institute of Real Estate Appraisers, 1st ed. The Dictionary of Real Estate Appraisal Chicago, Illinois: AIREA, 1984) p. 123. 3 Ibid, p. 179 4 Ibid, p. 160 5 Ibid, p. 44 PAT MURPHY & ASSOCIATES 6 City and Neighborhood Description The subject is located in western Paris, the county seat and the principal metropolitan' area of Lamar County, Texas. The city is the retail, employment, cultural and medical center for a trade area that exceeds 150,000 people and includes some or all of the surrounding five counties in Texas and the three counties in southeastern Oklahoma. The city had a population of 25,998 persons accordiug to the 2000 census which was a 4.8% gain in population from 1990 to 2000. The county as a whole grew 10.4% to 48,499 persons over the same period. The primary growth direction of the city is east and the most popular area of the county for residential rural growth is north and east. The city annexed some 10,000 acres mostly to the north and east, between 1997 and 1999 and its population growth was primarily due to that annexation. Paris and Lamar County have a stable economic future based on the diversity of jobs in the medical, industrial, retail, and agricultural fields coupled with a strong local financial base and a wide trade area. These factors insure a steady economy and a very slow but positive growth much like they have experienced in the past. The immediate neighborhood is defined as a two block wide corridor from 17th street on the east to 19th street intersection on the west. This a mixed use with commercial, retail, multi family and ecclesiastical uses mixed with older single family dwellings. Zoning is mixed with Commercial, General Retail, Multi Family, Two Family and Single Family in these twelve blocks. The subject has a large, old, single family dwelling just east on the Bonham street frontage and in both directions on Maple Avenue; them is a large automobile repair and service center and a church just south across Bonham street; the church parking lot just west on Bonham street with older residential uses to its north across Maple. The Hick Tire and Muffler Center and the campus of the Immanuel Baptist Church are the largest land users in the immediate strip but several other churches are within three blocks. The traffic count in front of the subject according to the last published survey (1999) was about 7,400 cars per day. The latest new construction included an ATM pad for Liberty National Bank on the corner of Bonham and 19"' street and a 32 unit self storage facility in the 1800 Block of Bonham street in 1999 and a complete renovation of a five bay carwash at 19'~' and Bonham in 2000. Just beyond the immediate strip, a twelve unit apartment complex comprising the first phase of a 36 unit complex of privately subsidized apartments was completed in late 1999 at the corner of Bonham and 25"' NW and seven uuits at Bonham and 23r't SW were completed in 2000. An 18 unit complex is currently planned just three blocks east at 13'h NW and Bonham if financing can be arranged, and a two bay fast lube is soon to be built 90' east of the subject at 17'h NW and Bonham. Overall, development along the strip usually lags well behind the other major highways into Paris except for SH 19, and unlike the others, it is usually of mixed use. That trend should continue on the future. PAT MURPHY & ASSOCIATES 7 Property Description and Zoning The overall site including the closed alley Contained approximately 68,460 SF and had 210' of frontage on Bonham and Maple and 326' of depth according to the city plat. Both streets were two lane, asphalt surfaced with concrete curb and gutter. There may have been some typical utility easements along the streets. It was at street grade on both sides but sloped very gently to the north with most of the run off in that direction. None of the property was in the i 00 year flood plain. It was almost entirely open but had a few large trees. The subject was zoned General Retail which allows a wide variety of uses including all the lesser classifications of office, neighborhood service, and multi family. There is 20' front back but no specific side or set back requirements except that a gasoline pump must be at least 12' off the property line. It had a 40% lot coverage ratio. The general parking requirements are one space per 400 square feet of floor area for offices and one space per 200 Square feet for retail and personal service uses. It is one of the most unrestrictive classifications available and should satisfy most feasible uses for the subject. The dwellings at 1726 Bonham and 1735 Maple were beyond feasible repair. A 28.2' x 28.2' fi'ame dwelling at 1749 Maple was liveable with some minor repairs. It was probably 50 years old and had four rooms, two bedrooms, and a single bath, 6' x 6', added to a rear corner. Its wood siding needed paint, the shingled roof needed recovering and the interior finish needed updating but it appeared to be sound enough to withstand a move to another site. The dwelling just west at 1753 Maple was exactly the same except that it measured 28.2 x 30.2 and had its single bath inside the main perimeter. There was also an old detached garage between the two that had no value. There is a demand for these small dwellings to be moved to other sites but overall, they added nothing to the value of the land as now zoned. The possible salvage value orS 1,000 to $2,000 per house should just about offset the cost of razing the other two dwellings. Ad Valorem Tax Data Presently, the subject was assessed in three accounts. The total land was assessed at $30,080 with unit assessments ranging from $0.53 PSF for the vacant land on Bonham to $0.43 PSF for the lots as residential tracts. The smaller commercial zoned tract at ! 704 Bonham was assessed at $0.75 PSF and the 53,350 SF site across the street under the Hick's Muffler and Tire Shop was assessed at $0.73 PSF. The present improvements were assessed at $11,360. Thus, the total assessment was only $41,440 and the real estate taxes for 2000 were $1, i 02. Next year, the improvements should be dropped and the land raised to reflect the zoning change. This the land assessment was estimated at $0.75 PSF or $51,345 which is very closer to ~narket. The 2002 rate was estimated to be 4% higher or $2.77 for a total tax burden of $1,420. The tax assessments are based on mass appraisal techniques and are not necessarily indicative of market value and do not effect sales prices. PAT MURPHY & ASSOCIATES 8 Highest and Best Use Highest and best use is defined as that reasonable and probable use that supports the highest present value, as defined, as of the effective date of the appraisal. This use must be physically possible, legal, financially feasible and 'result in the highest land value. As Vacant: The General Retail zoning would legally allow almost any feasible use and its size and desirable topography will accommodate many different uses. The larger sales will show this trend. It probably has greater utility as one or two large lots than as six smaller lots. The dual access is positive for its appeal. The immediate neighborhood has traditionally been a mixed use strip with the older residential uses gradually giving way to retail and service oriented businesses. Most commercial uses have been concentrated on or near the 19th street intersection but that development is slowly spreading. Usually, when a lot of this size is developed in this strip, it has been for multi family use. The data presented in the area and neighborhood analysis showed that the type of new construction ir) this strip is varied with multi family keeping pace with the odd commercial use. Most new commercial construction involves a 2,000 SF to 4,000 SF metal building with or without brick veneer, constructed for sorne type of owner occupied use. The typical multi family project is a six to twelve unit complex with small modestly finished units. Given the location and the characteristics of the neighborhood, and the planned construction of 18 units at 13th and Bonham, the subdivision of the subject into two lots for development into some type of retail or service type use was most likely. There is a fair amount of vacant land in this strip; thus, it would most likely remain vacant until such time as an owner/occupant purchased the sites. The subject has been purchased for ultimate development into a 39 unit assisted living complex. The feasibility of that use is beyond the scope of this appraisal but when such centers have been constructed locally in the past, they have competed with this same mixture of uses. PAT MURPHY & ASSOCIATES Sales Comparison Approach This approach is based on the principle of substitution; that is, the value of the property is governed by the prices generally obtained for similar properties. In this approach, various sales of similar properties are compared to the subject and adjusted for the major differences. They were compared on a price per square foot (PSF) basis which is a commonly quoted indicator between the participants. The motivation for purchasers in this type property is usually fi'om individuals desiring their business location. The most recent similar neighborhood sales in this size range are listed in the analysis below. The sales were all on Bonham street. All the sales were all cash or conventional financing; thus, no financing adjustment was warranted. They were all arm's length transactions. No. Grantor Date Size/SF Sales Price SP/SF Zoning As Compared to Subject I Brown/Buster 01/95 18,527 $15,000 $0.81 C Corner, sloping 2 Ingram/St. Josephs 03/95 43,502 $44,400 $1.02 GR Similar 3 Ford/Pshigoda 03/99 74,705 $50,000 $0.67 MF Corner 4 Savage/Noble 08/99 12,520 $6,500 $0.52 MF Corner 5 Stillwell/Clarkson 04/01 33,323 $25,000 $0.75 C S~naller, corner 6 Conrad/Miller 08/01 19,060 $30,000 $1.57 C/2F Corner, old imprv. 7 Nance/Kammer 08/01 65,310 $45.000 $0.69 2F Interior, street to street Subject 08/01 68,460 GR Interior, street to street Sales I through 2 are dated and sales 3 and 4 are slightly dated but all four show the same range of raw prices as do most of the more recent sales. Sale I was a mush smaller, corner site with sloping topography. Other than time, it was superior to the subject. Sale 2 was a slightly smaller tract that also had dual frontage on Bonham and Maple. It was high sale for its time period. Sale 3 was inferior in zoning but a similar size and had corner' access. Sale 4 was a small corner lot that was superior in size. Sale 5 was a recent sale of a larger corner' lot that had inferior topography. It was purchased as the site for 18 to 25 apartment units but the financing for the overall project has not yet been arranged due to the iow rent levels in comparison to the costs of construction. The sale was inferior in topography with a sharp slope but it was also about half the size. Those two factors were offsetting and it indicated about $0.75 PSF for the subject. Sale 6 is the last closed sale in the neighborhood. It was clearly in a price level all its own for this strip at $1.57 PSF. That price seemed over market, especially when considering the cost of the demolition of a 320 SF masonry building and some concrete paving on the site. It had a sharp slope to its rear but for its intended use, a fast lube, the slope was not a detriment. The corner location was offset by its demolition costs and the dual access of the subject. Size was its primary adjustment and it was -30%. It indicated about $1. l0 PSF. Sale 7 was the current contract on the subject's parent tracts. It is inferior to the actual subject due to zoning and the 15' alley bisection. The alley closing will add another 3,150 SF to this property and give it increased utility as a entirely useable tract of land with dual access. Considering the added PAT MURPHY & ASSOCIATES utility of a raw site that is not encumbered by old improvements or bisected by an alley, and zoned for General Retail use, it was adjusted about 15% or $0.10 PSF and the sale indicated about $0.79 PSF. The majority of the sales data suggested a value between $0.75 and $1.10 and a value in Iow center of that range or about $0.80 PSF seems most reasonable. Thus, the estimated value of the subject was, in round figures, $55,000 Reconciliation and Final Value Estimate In this appraisal, the subject was valued using the sales comparison approach. It estimated the value of the fee simple estate at $55,000 which was a $10,000 increase over the contract price. This increase was earned through the added utility of closing the alley and re-zoning to a higher classification. Consequently, my opinion of the market value of the fee simple estate in the subject property as of August 14, 2001 was, FIFTY FIVE THOUSAND DOLLARS ($55,000) Exposure Period The opinion of value assumed the subject was properly exposed to the market for nine to twelve months prior to the date of value. Marketing Analysis The actual marketing history of some of the sales has been quite long as the subject itself shows. Properly listed at $50,000 or within 5% of the sales price, it still took over 18 months to reach contract. The present overall demand for real estate in this strip is the best in several years, mortgage money is plentiful and as new construction rates show, numerous individuals are interested in an entrepreneurial effort. Therefore, the estimated future marketing ti~ne necessary for the subject to command the appraised value was about nine to twelve months from the date of value if properly exposed to the market. PAT MURPHY & ASSOCIATES CERTIFICATION I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment, was not contingent upon developing or reporting predetermined results. My compensation for completing this assignrnent is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. The appraisal assignment was not based on a requested minimum valuation, a specific wduation, or predicated in any way on the approval of the loan. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conl:ormity with the Uniform Standards of Professional Appraisal Practice; the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute; and the Code of Ethics of the American Society of Farm Managers and Rural Appraisers. The use of this report is subject to the requirements of the Appraisal Institute and the American Society of Farm Managers and Rural Appraisers relating to review by its duly authorized representatives. As of the date of this report, W. P. Murphy has completed the requirements of the coutinuing education program of the Appraisal Institute. The American Society of Farm Managers and Rural Appraisers conducts a mandatory program of continuing education. W. P. Murphy is current with the requirements of the program. The appraiser has made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to the person signing the report. My opinion of the market value of the subject property as of August 14, 2001, was FIFTY FIVE THOUSAND DOLLARS ($55,000) ~ ~ ~)/, "~ O[ W.P.(Pat, M p y, AR ,~MAI Date ~//~("~ ur h~~~ TX- 1320215~,'~ / PAT MURPHY & ASSOCIATES 12