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03-C PEDC/Kammer Appearancer~ . . . , ~i, Mr. Kenny Kammer 6625 Pecan Place Place, TX 75462 November 26, 2001 . ~ ~I~m'Y ~ ~a . o 77 SJk.•. . . ~ A ~ Dear Mr. Kammer: As per your request your name has been placed on the Monday, December 10, 2001 Council Meeting Agenda under the Paris Economic Development Section. This matter was tabled by City Council at its meeting in October so Council will need to vote to bring this matter from the table. if they vote in favor of the motion then the established policy allows up to two minutes for presentations under this item. If the Council does not vote in favor of bringing it from the table no presentation can be made. The City Council meeting will begin promptly at 6:00 o'clock p.m. When your item is introduced, you will be asked to come forward to the podium and state your name(s) and address(es) for the record and then proceed with your presentation which you should limit to two minutes. If I may be of further assistance in this matter, please do not hesitate to contact me in the future. Sincerely, ~ Michael E. Malone City Manager MEMIas P.O. BOX 9037 • PARIS, TEXAS 75461-9037 •(903) 785-7511 • FAX (903) 785-8519 REQUEST FOR APPEARANCE AT CITY COUNCIL MEETING MAIL TO CITY MANAGER CITY OF PARIS P. O. BOX 9037 PARIS, TX 75461-9037 NAME Kenny Kammer ADDRESS 4~-~ ~~►S1 7-c- STREET ADDRESS TELEPHONE 7FV-7 ~ 7! REASON FOR APPEARANCE AT CITY COUNCIL MEETING: RECEIVED NOV 16 2001 CITY MANAGER PARIS, TEXAS DATE APPROVED: /l-'~W "0/ DATE DISAPPROVED: Manager 17aD B4oCK of` aAaHneK- 771R'uaN 70 na4PcE S~7. MINUTES OF THE ARIS ECONOMIC DEVELOPMENT CORPO TION SPECIAL MEETING O TOBER 17, 2001 The Paris Economic Develo ment Corporation met in special session on Wednesday, October 17, 2001, 4:00 P. M., at Heritage Hall, 1009 West Kaufman Street, Paris, Texas. Director Jay Guest called the meeting to order with the following Directors present: Don Wall, Mike Dunn, and Curtis Fendley. Also present were e-officio Board Members Bobby Walters, Mike Graxiola, Executive Director ary Vest, City Manager Michael E. Malone, and City Clerk Mattie Cunningh . Director Guest called for app oval of minutes from the previous meeting. A motion was made by Director endley, seconded by Director Wall, for approval of the minutes as presented. he motion carried unanimously. City Manager Malone advi September was not available the process of closing out the stated that the Finance Direc as soon as it was available. l that the financial report for the month of this time because the Finance Director was in cal year and has not completed the process. He would forward a financial report to the Board Director Guest called for consideration of and action on a recommendation to the City Council of the City o Paris on the tax abatement application from S. I. Management, Inc., and KG roperties, LLP. Gary Vest, Executive Dii Corporation, advised the Boa meeting and the Board did n Kammer, one of the principa LLP was here today to speak. Economic Development Cor could be placed back on the ~ ;tor of the Paris Economic Development that this request had been considered at the last take any action. Mr. Vest advised that Gary of S.I. Management Inc., and KG Properties, :enney Kammer who had visited with the Paris ration at the last meeting asked if this matter enda for reconsideration. Mr. Vest said that last mon nine incentives were requested. There was confusion about those incenti es. Mr. Vest advised that the companies have Minutes of Special Mee[ing PEDC Oc[ober 17, 2001 Page 2 withdrawn their request for all of the incentives except the tax abatement. Mr. Vest pointed out that one of e concerns that the PEDC had was about the financing. His understanding is they have 90 percent financing from HUD, which means they will have to do 10 percent ofthe financing locally. Mr. Vest advised that the PEDC has no done this type of taY abatement in the past. He said the other abatements t at have been given were for industrial type facilities. He stated that it 's allowed under state law because it is in an enterprise zone, and there is g odwill that could be established. Mr. Vest said he did not know if the City C uncil would go through with this tax abatement because of the perception of ast and West Paris. He advised that this would be a significant addition to W st Paris. Mr. Vest further advised that there are other things that they need to ook at if the PEDC is going to recommend a tax abatement of this type. Mr. V st said his recommendation to the Board would be to do the tax abatement on a phase-in basis for this type project. He said they would give 80 percent a atement for year one through three; year four would be reduced by 25 ercent; and then continue to reduce the taY abatement for years five, six, even. After seven years the property would be on the tax roll at one 100 per ent. Mr. Vest said that the propos 1 that he and City Attorney Schenk have been working on is still not refine , and it will come to the Board as soon as it is finished. He said the recom endation of this type of tax abatement phase-in would be based on the amoun of capital investment and job creation. He said for this project, the Board an Council could expect 2.7 million dollars for capital investment and 25 em loyees with a$400,000.00 annual payroll, so it would be a very significant in estment for the area of town where it would be located. Mr. Vest further advised that the PEDC can only make a recommendation to the City ouncil. Director Guest suggested thatlthe PEDC adopt a policy for use in the future. Mr. Gary Kammer came forw rd speaking on behalf of their request for a tax abatement. Mr. Kammer sai that they had chosen West Paris to attempt to Minutes of Special Meeting PEDC October 17, 2001 Page 3 develop the area. Mr. Kamm r advised that he was not aware of the enterprise zone, but that his brother as the one who researched the possibility of receiving a tax abatement. M. Kammer told the Board that he felt this was an excellent project. Mr. K mer said they would appreciate the PEDC recommending this project to the City Council for a taY abatement. Director Guest called for con ideration of and action on a recommendation to the City Council of the City o Paris on the tax abatement application from S.I. Management, Inc., and KG P operties, LLP. No motion was made and the litem died for lack of a motion. Mr. Vest reported that they h ve received eight inquiries in response to their advertising campaign. Mr. V st stated that, in light of the national economy, he thought the PEDC should top advertising until after the first of the year. Mr. Vest said they were spen ing between 70 to 90 thousand dollars a year in advertisement through the P DC, and he felt that they were not going to get any type of response from ad ertisement. Mr. Walters felt the PEDC should still utilize the internet be ause people go to the internet to look for opportunities to move to ce in places. Mr. Vest stated that they still have annual directories that the PE C is listed in, and they will still be working with the Department of Economic evelopment and TXiJ. Mr. Vest said on September 2, 2001, they had a prospect visit from a company that was looking at Paris, and hey showed the Oliver Rubber Plant along with a number of sites. He said the ompany is a relatively small operation requiring only thirty thousand square feet, and would employ approximately 35 employees. Mr. Vest advise that they made a proposal for a"build to suit" project, and they are consider ng that possibility at this time. Mr. Vest advised that they d have a company that has made an offer on the Oliver Building. The offer w s rejected by Cooper Tire, but he is hoping that they will get back together. I Minutes of Special Mee[ing PEDC October 17, 2001 Page 4 Mr. Vest told the Board that their annual conference in DE he and Eric attended that meei Development of Irving, Texa Texas Economic Development Council had from September 19' through the 21 S` , and They also had a meeting with the Economic Mr. Vest said that in 1998 the PEDC did a wage and benefit survey along with a labor survey and last year they talked about doing another. The Board instructed him to go out and g t bids from a number of firms before they hiring this company to do this servic . He said that as it turned out, they were trying to get regional service becau e they could get a regional labor survey at a considerably lower cost if th y did it themselves. After he proposed the contract to the Board, Greenv'lle, Commerce, and Sulphur Springs all decided not to do the survey. Mr. Ve t said they had a meeting on October 1, 2001, with Economic Developmen Services and it looked as if the company has Greenville, Commerce, and ulphur Springs lined up to do a labor survey along with a wage and benefit survey. . Mr. Vest advised that the labor survey will cost approximately $10,0 0.00 and the wage and benefit survey will cost approximately $4,500.00. Tvlr. Vest pointed out that there is $15,000.00 budgeted for the surveys. It s the consensus of the Board to go foneard with the surveys. Mr. Vest reported that the No heast Texas Regional Mobility Council is a new Council that has been formed to push for highway development in the region which includes Lamar, Delta, opkins, and Hunt Counties. He said there are two board members from each county along with one at-large, who is Jack Gray from Texas A& M Commerc . He said they have adopted a program of trying to get I-30 designated as a m ster corridor, Highway 24 four lane completed through Delta County, and ge ing Highway 19 as a super two lane. Mr. Vest furnished the Board embers with brochures regarding Proposition 15, which will allow TacDOT o issue bonds to finance highway construction. There being no further busine~s, the meeting was adjourned. Minutes of Speciat Meeung PEDC October 17, 2001 Page 5 JAY GUEST, DIRECTOR ATTEST: THOMAS E. HAYNES ASSISTANT CITY CLERK REQUEST FOR AP d ' I I P NAME ke/L)A)Y ADDRESS ( x 7s~ STREET ADDRESS II TELEPHONE 903 - 7,F~F- REASON FOR APPEARANCE A 2(5~2UP57 P EARANCE AT CITY COUNCIL MEETING MAIL TO CITY MANAGER CITY OF PARIS P. O. BOX 9037 RECEiVf ~RIS, TX 75461-9037 OCT 0 9 Z CITY 1VIANAI PAR[s, TEX~ 6 z ~ 97/ ~T CITY COUNCIL MEETING: aJFE o SiEnJ ~~f~2 1~~eYil rH-€ ,2Q/~E~4T ,1 r7ye~lwo)S7 F 19(910HAIeL A PcE S 7 rs` 26✓cazc.t Z, E.a C~6nssaRL 9~-r4 e- '00~ c[RPos~ D~ 6u c ~ S !I G/T DATE APPROVED: I II I ~ p ~ DATE DISAPPROVED: Michael E. Malone, City Manager 001 re~ ER ,s J cy INUTES OF THE r PARIS ECONOMI DEVELOPMENT CORPORATION S ECIAL MEETING S PTEMBER 12, 2001 The Paris Economic Devel( Tuesday, September 12, 20~ Technology Building, Rooc President Mike Rhodes ca Board Members present: Ja; officio Board Members Bob were Executive Director G Manager Michael E. Maloi Engineer Shawn Napier, an pment Corporation met in special session on 1, 4:00 P. M., Paris Junior College, Applied 1016, 2400 Clarksville Street, Paris, Texas. ed the meeting to order with the following Guest, Michael Dunn, and Curtis Fendley; ex- iy Walters, and Terry Christian. Also present try Vest, City Attorney Larry Schenk, City e, Director of Finance W. E. Anderson, City City Clerk Mattie Cunningham. President Rhodes called for pproval of minutes from the previous meeting. A motion was made by Dir ctor Guest, seconded by Director Fendley, for approval of the minutes as resented. The motion carried unanimously. President Rhodes City of Paris. President Rhodes asked I tinancial report for the i telling the Board that the their interest, other than regarding the expenditu payment to the World Ec you will see the usual rep Shawn Napier, the new City Engineer for the e Anderson, Director of Finance, to give the th of August. Mr. Anderson came forward rest amount is up because all of the CD's paid t, they would see the usual revenue. He said the line item, associations, represents the mic Development Alliance. Other than that, ve expenditures. A motion was made by Dir~ctor Fendley, seconded by Director Guest, for approval of the financial report as presented. The motion carried unanimously. II President Rhodes called i for consideration of and action on a recommendation to the 9ty Council of the City of Paris on the tax I I Paris Economic Development Corp. Y Sept.12,2001 Page 2 abatement application LLP. S. I. Management, Inc. And KG Properties, President Rhodes advised t at a few months ago it was agreed that all tax abatement requests would c me through the Paris Economic Development Corporation before they go o the City Council. Mr. Rhodes said this is our first request. ' Gary Vest, Executive Dir Corporation, reported that which will be located at 174 twenty-five people, and will capitai investment of $2,74, project would not be consi Living Center will be within tax abatement under the st: the Paris Economic Develop is to give tax abatements ti facilities. Mr. Vest said the project in West Paris. M: company asked for was a oi Mr. Vest said that he and t abatement policy which ha: Council. I t has a scale thal this board makes a recomr, would be that they go in w three years and reduce that so that after seven years th tax. actor of the Paris Economic Development this request is for an Assisted Living Center, 6 Bonham Street. He said it would employee have a$400,000.00 payroll. They will have a G,000.00. Mr. Vest said normally this type of 3ered for a tax abatement, but the Assisted the enterprise zone, and would be eligible for te tax abatement laws. Mr. Vest advised that nent Corporation's guidelines and procedures , manufacturing and warehouse distribution •e would be goodwill to be gained from a new Vest advised that the f"irst thing that this e hundred percent seven year tax abatement. ie City Attorney have been working on a tax not been presented to this board or the City calls for a graduated tax phase-in. He said if tendation to the City Council, his suggestion ith an eighty percent abatement for the first by twenty-five percent for the next four years :y will be paying one hundred percent of the Mr. Vest said the company as asked for a one hundred percent refund of Local Sales and Use Tax. his is the first time this has been requested. Mr. Vest advised that in oider for the PEDG to do this, they would also have to receive enterprise deesignation to qualify for this request. He said Paris Economic Development Corp. y Sept. 12, 2001 Page 3 it was really doubtful that The company was also aski Vest would not recommend Other requests were to pri give prompt consideration Waterworks and Sewer ~ improvements and the pal construction and financing Protection for this vulneral rates on Water and Wastem percent rate reduction ride seven years; and provide fui as needed. type project could receive enterprise status. for a Direct -Interest Loan package. Mr. I PEDC enter into such an incentive. iote economic development in the zone and i building permit request; utilization of the stem Revenue Bonds for the purpose of ient of professional services related to the f such projects; increase in Police and Fire e segment of our community; reduce utility ter by ten (10) percent, as well as the five (5) offered by TXU Electric and Gas, both for ing for improving of existing roads to the site Mr. Vest told the Board that the only thing he would recommend is the tax abatement using the tax pha e-in basis, which is a performance agreement, and they would not get a ta break if they do not perform. President Rhodes called for consideration of and action on a recommendation to the Ci Council of the City of Paris on the tax abatement application fro S.I. Management, Inc. And KG Properties, LLP. I No motion was made and Mr. Vest reported that they 1 One was from Outlook Maga from the World Economic ] Eric attended a show, which as an attendees to this show, cards. Mr. Vest explained 1 computer and will be able to item died for lack of a motion. ~ had oniy four leads since the last meeting. another from Area Development and two alopment Alliance. Mr. Vest said he and the Northeast Equipment Manufacturers, 7 passed out brochures, pens, and business they will place this information into the ~ct mail those manufacturers and continue Paris Economic Development Corp. r' Sept. 12, 2001 Page 4 to work with them. Mr. Vest showed the developing that will be Mr. Vest advised that yestei Texas Good Roads Associat the Board a proposed resolu TxDOT to issue bonds to f something that PEDC has 1 and warehouse distribution Mr. Vest reported that he a Oliver Rubber Building. He that it is something that he ) he felt that the PEDC may h; happen. Mr. Vest discussec company is a sister compan Flex-O-Lite product and usE Vest advised that this compa eventually go to three shifts. There being no further a sample of the postcard that they are ted in California. , in Austin, he attended a meeting with the At the next PEDC meetina he will bring to to support Proposition 15 which will allow ce highway construction. He said this is ioted to retain and attract manufacturers id Eric entertained a prospect today for the ;aid it is a good company and project and felt ill be visiting with the Board about, because ve to participate in some degree to make this the buiiding with the Board. He said this with Flex-O-Lite and they would take the it in a further manufacturing process. Mr. y would start with one shift of 15 people and the meeting was adjourned. MICHAEL RHODES, PRESIDENT ATTEST: MATTIE CUNNINGHAM City Clerk REQUEST FOR APPEARANCE AT CITY COUNCIL MEETING ' MAIL TO CITY MANAGER CITY OF PARIS P. O. BOX 9037 RIS, TX 75461-9037 NAME lq~15A).tJ~-I ~i?~1yy,2 ADDRESS .2-s O.9-d 1419- STREET ADDRESS TELEPHONE ~?'F' 7?7 REASON FOR APPEARANCE A17 CITY COUNCIL MEETING: > Ae-770.J o,J 7WE s DATE APPROVED: DATE DISAPPROVED: Michael E. Malone, City Manager FOR ZONE INCENTIVES BY THE CITY OF PARIS THE L~MAR COLONY An Assi d Living Community TABLE OF Ci 1. APPLICATIO II. PLATS and M III. LEGAL DES( A. LAND B. LAND IV. APPRAISAL V. PRELIMINAF with Attachment OF PROPERTIES previous owner - Phillip Nance current owner - Rance Merritt DRAFT OF MONTHLY CASH FLOW PROJECTION CATION THIS E PRIOR COAm 1. 2. 3. 4. 5. 6. 7. 8. CITY F PARI8, PARIS, TEXAS TAX ABATEMENT AN DI REIN'VLr8TMENT ZONE DESIGAATION APPLICATION LPPLiCATlON bifJST BE REC IVED BY THE CITY NOT LEBS THAN SIXTY (60) DAYS TO THE DATE THAT CONS RUCTION OF THE IWR09EMENTS IS EXPECTED TO :NCE. NAME OF APPLICANT FIRM S. I. Management, Inc. & KG Properties, LLP ADDRESS: 2485 Kessler Paris, TX 75460 TELEPHONE: (903) 784 7979 or (903) 783-5149 (Pager) PROJECT ADDRESS (if diffe ent from above): 1746 Bonham Street, Par' s, TX TYPE OF BUSINESS ORGA IZATION (corporation, etc.): Limited Liab.Partnershi (R.E. ownership) Texas Corporation (Operatio s) in the state of Texas NAME(S) OF PRINCIPAL O NERS OR OFFICERS: Gary W. Kammer Kenneth L. Kammer Leonard J. Kammer Jr. IS THIS BUSINESS SEASO AL IN NATURE: YES X NO NUMBER OF CURRENT EM LOYEES: in Enterprise Zone) 0 9. 10. 11. q~'v 12. 13. 14. 15. ( City of Paris) ( Lamar County) 0 CURRENT PAYROLL (in Ci of Paris): $ 0 NUMBER OF NEW JOBS P OPOSED: ZS LIST THE TYPE AND NU BER OF NEW JOBS TO BE CREATED AND THE PROJECTED SALARY FOR ACH JOB: ~ Manager(~3SK 101 1 Maintenance 3 Medical Aides'~10 /..l.oa. " 12 Persona e Asst. 1 Activity Director 3 Food Service Pi 1 Laundry Workerry9 2 Housekeeping rl 1 Office Managen PLEASE PROVIDE INFOR TION PERTAINING TO THE TRANSFER OF JOBS RELATED TO THE IMPROV MENTS OR EXPANSION: N/A TOTAL IMPACT ON PAYROL FROM NEW JOBS: $ 399,000 PRE-PROJECT MARKET V UES, AS DETERMINED FOR LOCAL PROPERTY TAXATION, OF THE EXISTI G FACILITY, SITE, TANGIBLE PERSONAL PROPERTY, AND INVENTORY: A. REAL PROPERTY: $ 45,000 B. TANGIBLE PERSON PROPERTY $ 0 GIVE A DETAILED DESC I IPTION OF THE PROPOSED IMPROVEMENTS OR EXPANSION (A1"fACH ADDI IONAL SHEETS, IF NECESSARY): ?/k r onnel /04.1... 16. 17. Construct a state lice sed 39 suite assisted living community, consisi of a 36,000 s.ft. str cture on a 6 8,460 s.ft. tract of land located in the reinvestment en erprise zone designated by the City of Paris. An adjacent lot would e purchased for future expansion. THE ESTIMATED DATE OF Januar , 2002 to March OMPLETION 2002 OF THE IMPROVEMENTS: THE ESTIMATED DATE OF April, 2002 to June 20 PERATION OF THE IMPROVEMENTS OR EXPANSION: 2 ing 18. ESTIMATES OF AMOUNTS~O BE INVESTED: A. PURCHASE OF LAN /BUILDING: B. NEW BUILDING C. BUILDING D. IMPROVEMENTS TO E. MACHINERY 8s F. FURNITURE & TOTAL IlYVESTMENT 19. TOTAL INVESTMENT ELIG] $ 2,744,000 20. LIST THE TYPE AND VF REQUESTED (I.E., TAX ABF OWNED PROPERTY, ETC.): See Attached BLDG. 45,000 + 55,000 (expansion) $ 2,484,000 $ 0 0 88.000 $ 72,000 2,744,000 FOR ABATEMENT: itema (please circle) 0 (B) C D EO FO OF ECONOMIC DEVELOPMENT INCENTIVES ENT, LOCAL SALES TAX REFUND, SALE OF CITY- 21. FOR TOTAL PERSONAL PR PERTY INVESTMENT INDICATED ABOVE IN ITEM 19, LINES E 8s F, SHOW PRO ECTED DOLLAR VALUE IN EACH DEPRECIATION SCHEDULE. K6 Properties, LlP SI MANA6EMENT, Inc. ~ TNE IAMIIR COLONY An Aasiatsd Csmmeniql 2485 Kesaler Paris, Tem 75460 USA September 04, 2001 RE: ITEM # 21 OF TfE APPLIC~ TfE TYPE AND VALUE OF FOR REINVESTMENT ZONE DESIGNATION : OMIC DEVELOPMENT INCENTIVES REQUESTED 1.) 100% Tax Abatement on $_2,744,000.00_; and 2.) 100% Refund of Local Sales 3.) Direct Low-Interest Loans/Pa land @ $36,000.00(re1 building construction ( machinery & equipmej furniture & fixtures @ working capital @ S-L to site and building for seven (7) years @ Use Ta3ces @ $ 100.000.00_; and ; aucc) & land @$55,000.00(purchase for ex ann sion) $ 1,987,200.00 @ $ 70 400.00 and 4.) Amend Zoning Ordinances in o~er to promote economic development in the zone; and 5.) Give prompt consideration to b lding permit requests; and 6.) Utilization of the Waterworks d 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 8.) Reduced Utility Rates on Wat, rate reduction rider offered by water and waste water electric and gas via T)S and for this wlnerable segment of our community; and and Waste Water by ten (10)%, as well as, the five (5)% XLJ Electric and Gas, both for seven (7) years: 500.00 @ 10% rate reduction =$50.00 ner monttL $2.23100 @ 5% rate redtction =$111.60 per month; 9.) Provide funding for improving Of existing roads to the site as needed; and I. (7 yr) 22.f II. (10 yr) _ III. (12yr)_ 22. STANDARD INDUSTRIAL 23. NAME, ADDRESS, AND THIS APPLICATION: Kenneth L. Kamer 6625 Pecan Place 24. INDICATE THE DATE CURRENT FACILITIES September, 2001 IV. (16 yr) V. (18 yr) VI. (20 yr) ~IFICATION (SIC) NUMBER: 623000 NUMBER OF CONTACT FOR THE PURPOSES OF 784-7979 or 783-5149 Paris, TX 75462 TIME THAT CI1'P OFFICIALS MAY INSPECT THE TO THE COMMENCEMENT OF CONSTRUCTION: - 25. IF APPLICABLE, THE NA E, ADDRESS, AND PHONE NUMBER OF ANY CONSULTANT/ FINANCIAL DVISOR ASSISTING YOU WITH THIS APPLICATION: Paul T. Wells, CPA (903) 785-8481 1323 Lamar Avenue, St. Paris, TX 75460 26. NAME AND TITLE OF PE ON WHO WILL HAVE AUTHORITY TO SIGN ANY AGREEMENTS RELATED T THIS APPLICATION: Kenneth L. Kammer or Ga y W. Kammer 27. DO YOU INTEND TO SUBM AN ENTERPRISE PROJEC'I' APPLICATION? No 28. PLEASE ATTACH THE 1. A PLAT SHOWING HE PRECISE LOCATION OF THE PROPERTY, ALL ROADWAYS WITHI 200 FEET OF THE SITE, AND ALL EXISTING ZONING AND LAN 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 APP ISAL HAS BEEN DONE, ATTACH THE SAME HERETO. OTHER ISE, ATTACH A COPY OF THE PRINTOUT FROM THE LAMAR COU TY APPRAISAL DISTRICT WHICH SHOWS THE VALUE OF THE PROPERTY. THIS PRINTOUT SHOULD BE AVAILABLE UPON EQUEST. IFICATIONS 1. 2 3. THE APPLICANT BEL] SUBMITTED HEREWITH OR HER KNOWLEDGE. THE APPLICANT CONSTRUCTION OF HAS NOT BEEN CO CERTIFIES THAT THE EXPANSION OR ,NTS THE SUBJECT OF THIS APPLICATION THE APPLICANT UNDERST DS THAT INITIATION OF THE PROJECT PRIOR TO RECEIVING FINAL L CAL APPROVAL MAY RESULT IN THE LOSS OF THE ABATEMENT. 4. THE APPLICANT UNDERST DS THAT, IF APPROVED, THE INFORMATION CONTAINED IN THIS APP ICATION WILL FORM THE BASIS FOR A SIGNED AGREEMENT BETWEEN THE APPLICANT FIRM AND THE CITY. STATE LAW AND LOCAL POLICY REQ IRE ANNUAL MONITORING FOR COMPLIANCE TO THAT AGREEMENT. FA LURE TO COMPLY MAY RESULT IN LOSS OF INCENTIVES. 5. THE APPLICANT HEREBY TAX OBLIGATIONS TO T] TIFIES THAT THE FIRM IS CURRENT IN ALL CITY OF PARIS. COMPANY: S.I. Management, Inc. By: P§ignatur64 Ndm2: Kenneth L. Tit12: President V S THE INFORMATION CONTAINED HEREIN AND IS COMPLETE AND CORRECT TO THE BEST OF HIS Date: 9-4-01 TS & MAPS - ADDENDA City Map Photographs of the Subject Plat Map Flood Map Appraisal Order Qualification Summary for the Looking north from church lot across Looking east on Maple, subject third (faz) dwelling, first two dwell street at the subject, dwelling on right to be razed ight starting at utility pole and eadending east just past to be salvaged (sold for move oft) faz dwelling to be razed ASSOCIATES Looking east on Bonham, si and Hicks Tire Looking northeast t on left; Immanuel Baptist Church on right Mu81er in background on right Bonhazn at west half of frontage ASSOCIATES . ~ Z c q ~ N< 10 ~ 0 C u u a 16Z4 ::i . • r 14 I 15 1 16 13 1 12 `o W 81. 1 -B 76 95.5 j - A ~ . , ~ ~ - , ~e , 76' ~ 69' ~ 681 iW z ' M~P ZONE milhCreek ~ 571 3 ' LE STREET it. 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We have piacetl . 11 }he amblem on tne mop ai ,0 ~ne rovta. , I . a TO FAT MAYS£ LAKE: 11 MNw 1Or1ft.4 i+Il 1WO 0n FMW! TO UKE CROOK: 9 M'1NI NMP N\OaIN ~OL 4MIP \ / ~ J E.\ \ \ ee ~ - MENi 271 ~ ~RS\i I ~ap~R E PflICEs E. ~ ~NOUF, 5 LFMRP ~ 62 RGAR T MA A xUBBAR ~ BFP 0 - , N 0 A AMAFFEY BB w LK Y)1 nBB 1 )A ~ &AQ CL4RkSVILLE c iIq ~ ~ _ ~ o I i i ~ i I V R9CTVlIMR9 . ~ I ~ ~ SCALE R ~ VISITORS CE and L.AEAAR LA CHAMBER O 1651 CL ~PARIS, TI i 11(214)78 , ~ ro: r41 u c c- N~ ~e-- ~~~;~G M°a~iNS OI ~ . 04 iA You are hereby engaged to provide appr isal services to FIRST FEDERAL COMMIJNITY BANK to facilitate the underwriting of a loan appli atioa You are to provide the appraisal service in compliance with the Appraisal Policies of FIRST F DERAL COMMl1N[TY BANK, a copy of which has been provided to you previously, and to provi e your services in a timely manner. 1-4 Family Dwelling : ` Limi[ed Complete Summary Residential tot/acreage - Narzat ve Report Attach flood zone map Investment Property - Income pproach required ~ Ll er( utm _ /,tp~~'3s1f SELLER: REALTOR CONTRACTOR ADDRESS:~ /'i8- / LEGAL: INSTRUCTIONS TO SEE HOU'. ATTACHED HEREWITH: Sales Contract Plans Specifications of material Lis[ of contrac[ors/sub-co Other. ,fu.c S ( FIlZST FEDERAL Community Bank AL ENGAGEMENT LETTER J4 SS6c . /S, /9, z o ( %Z o/- Lois3 4t 17 ) s with bids i First Federal Representative Date B A N K I N G C E N T E R S PARI3 PARIS - L OP MT. PLEASANT CLARKSVILLE 830 CLARKSVILLE ST. 3010 NE LOO 288 805 N. MADISON 203 W. WASHINGTON PARI3. TX 75480 PARIS. TX 7 460 MT. PLEASANf, TX 75455 CIAHKSVILLE. TX 75428 (903) 7840881 (903) 784-0 81 (903) 577-1118 (903) 427-3858 FAX (903) 784-8781 FAX (903) 7 -6781 FAX (903) 577-8511 FAX (903) 427-4038 MEMBER FEDERAq DEPOSIT INSURANCE CORPORA710N r~ Owner of Pat Murphy and Associates, ] appraising and managing residential, fan Oklahoma, with prior work experience commercial construction businesses. He agencies, lending institutions, lawyers, t addition to his appraisal and consultation for absentee owners, and resides on his c r. Murphy has been an independen[ fee appraiser since 1977, Iranch, and income producing properties in Texas, Kansas, and in farming, ranching, building material, and residential/light as appraised for a wide variety of clients including government le companies, insurance companies, and large corporations. In ,usiness, he also manages several ranches and income proper[ies m ranch outside of Paris in Lamar County, Texas. EDUCATION Mr. Murphy gradua[ed from Paris a Bachelor of Science degree in successfully passed over 13 appra Institute of Real Es[a[e Appraiser Independent Fee Appraisers; the Ar Appraisal Institute. In addition, he a wide variety of subjects pertaininj 3igh School in 1965 and from Texas A& M University with Agriwlture Economics in 1969. Mr. Murphy has taken and sal courses with formal examina[ions given by [he American , Society of Real Estate Appraisers; National Associstion of erican Society of Farm Managers and Rural Appraisers; and the ~as taken numerous seminars from these same appraisal groups on to property valuation. - State Certified General Real Estate State Certified General Real Estate Appraisal Institute - Member Appi American Society of Farm Manager Appraisal Institute - Senior Residei Texas Real Estate Commission - Bi PROFESSIONAL ACTIV ITIES ~ppraiser - Texas TX-1320215-G ~ppraiser - Oklahoma OK-10079 isal Institute, (MAI), #9495 and Rural Appraisers - Accredited Rural Appraiser, (ARA), # 948 ial Appraiser, (SRA) Former RM #1689 ,ker #274253 Director of the Texas Chapter of the American Society of Farm Managers and Rural Appraisers, 1993 to 1995, Vice resident - 1996, President Elect -1997, President - 1998 Member of the national Members ip Development Committee of the American Society of Farm Managers and Rural Appraisers, 1994 through 1997 Member of Ihe Regional Panel on E hics and Counseling of the Appraisal Insti[u[e, 1992 to presen[ Co-developer and course coordinato of the seminar "Appraising Rural Residential Properties" for [he American Society of Farm Mam gers and Rural Appraisers Certified Instructor for the America Society of Farm Managers and Rural Appraisers EXPERT TESTIMONY Mr. Murphy has tes[ified as an expert and County courts in Texas. regarding real estate valuation before various Federal, State, PAT MUIRPHY & ASSOCIATES DESCRIPTIONS Statement of Account NOTICE: This is a statement oi Taxes Paid & Due as of 08/13/2001 02:01:05Pk. based upon ihe tax recortls of the lax oftice. 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 LBgel D2SC: WqRREN ADDITION, BLOCK 1, LOT 19-20, 1749 1753 MAPLE Owner ID: 20433 ownership: 1 NANCE R C C/O PHILLIP NANCE 3610 GRAHAM ST PARIS, TX 75460-3500 Improvemeni HS: Improvement NHS: Land HS: Land NHS: Productivity Market: Productivity Use: Assessed Value Value Information Entity Description : Pct... Ex Code Description . . CAD Central Appraisal District 100.00 % CPA CITYOFPARIS 100.00% GLA LAMARCOU NTY 700.00% JCP PJC 700.00% SPA PARISISD 700.00% . Paid Bills Summary . Entity Year Statement ID Tax Paitl Utsc/P&I PaitlAtt. Fee Paitl Under/Over/Refund Posting Date CPA 1996 21681 126.53 0.74 28.09 0.00 01/31/2000 GLA 1996 21681 8622 1.39 19.14 0.00 01/31/2000 JCP 7996 21681 39.18 8.82 8.70 0.00 01/31/2000 SPA 1996 21681 372.71 1 8.90 82.74 0.00 01/31/2000 Total for Year 1996 CPA 1997 21874 13525 8.69 27.59 ' 0.00 01/31/2000 GLA 1997 21874 87.81 1.61 17.91 0.00 01/31/2000 JCP 1997 21874 4020 4.47 8.20 0.00 01/31/2000 SPA 1997 21874 370.02 1 321 75.48 0.00 01/31/2000 'otalfor Year 1997 :,PA 7998 21799 13525 2.46 25.16 0.00 01/31/2000 GLA 7998 21799 87.81 7.08 16.33 0.00 01/31/2000 JCP 1998 21799 41.57 9.98 7.73 0.00 01/31/2000 SPA 1998 21799 370.02 8.80 68.82 0.00 01/31/2000 Total tor Year 1998 CPA 1999 67373 126.58 0.00 0.00 0.00 01/3112000 GLA 7999 67373 77.61 0.00 0.00 0.00 01/31/2000 JCP 1999 67373 35.94 0.00 0.00 0.00 01/31/2000 SPA 1999 67373 327.03 0.00 0.00 0.00 01/31/2000 Total for Year 1999 CPA 2000 22904 91.32 0.00 0.00 0.00 01/08/2001 GLA 2000 22904 52.94 0.00 0.00 0.00 01/08/2001 JCP 2000 22904 24.51 0.00 0.00 0.00 01/08/2007 SPA 2000 22904 229.64 0.00 0.00 0.00 01/08/2001 Total for Year 2000 Total Paid: Unpaid Bills Summary ' . . No Information on File. . aidRefundSSummary No Information on File. *P` End of Statement'*` 6,970 0 8,000 0 0 0 14,970 Amount Paid 215.36 146.75 66.70 634.35 1,063.16 211.53 137.33 62.87 578.71 990.44 192.87 125.22 5928 527.64 905.01 126.58 77.61 35.94 327.03 567.16 91.32 52.94 24.51 229.64 398.41 3,924.18 NOTICE: This document is not a tax certificate and dces not absol e a 7axpayer from tax liability in any way. If this document is fountl to be Page 1 in error, it may be corrected by ihe Collection Office listetl above. esponsibility to pay the remaining taxes rests entirely with ihe Taxpayer, as outlined in the Tezas Property Tax Code. 7'"a""'"""1"'.'"`. Rment of Account LAMAR COUNTY APPRAISAL DISTRICT 521 BONHAM - PO BOX 400 'ARIS, TX 75461-0400 Owner ID: 20433 Ownership: NANCE R C C/O PHILLIP NANCE 3610 GRAHAM ST PARIS, TX 75460-3500 , NOTICE: This is a statement of Taxes Paid & Due as o/08/13/2001 02:00: 'basetl upon the tax records of the tax oHice. Property Information PropertylD: 20433 GeoID: 023010-00100-0040 Legal Acres: 0.0000 Legal DeSC: WqRREN ADDITION, BLOCK 1, LOT ALL 4-18 W 7/2 3-17, 1726 BONHAM Value Information Improvement HS: 4,390 Improvement NHS: 0 Land HS: 12,080 Land NHS: 0 Productivity Market: 0 Productivity Use: 0 Assessed Value 16,470 Entity Description CAD Ceniral Appra isal Disirict CPA CITY OF PARIS GLA LAMAR COU NTY JCP PJC SPA PARIS ISD Entity. . Year Statement ID Tax Paid CPA 1996 21679 56.79 GLA 1996 21679 49.29 JCP 1996 21679 26.87 ToW I for Year 1996 CPA 1997 21872 60.71 GLA 1997 21872 50.19 JCP 1997 21872 29.56 Total for Year 1997 .-CPA 1998 21797 60.77 iLA 1998 21797 50.19 JCP 1998 21797 30.57 Total for Year 1998 CPA 1999 67371 61.77 GLA ~7999 67371 48.65 JCP 7999 67371 29.19 Total for Year 1999 CPA 2000 22902 0.00 GLA 2000 22902 8.73 JCP 2000 22902 10.59 SPA 2000 22902 0.00 Total for Year 2000 . Pct.. 'ExCode Description . , . 100.00% HS HOMESTEAD 100.00% OV65 OVER65 100.00 % 100.00 % 100.00 % Paitl Bills Summary Paid Att. Fee Paid Under/Over/Refund Posting Date Amount Paid 725 12.61 0.00 01/37/2000 96.65 '.3.66 10.94 0.00 07/31/2000 83.89 3.83 6.40 0.00 01/37/2000 49.04 229.58 11.85 12.38 0.00 01/31/2000 94.94 8.08 1024 0.00 01/37/2000 78.57 0.64 6.03 0.00 01/31/2000 4623 219.68 4.56 11.29 0.00 01/31/2000 86.56 2.04 9.33 0.00 01/31/2000 71.56 7.32 5.68 0.00 01/31/2000 43.57 201.69 0.00 0.00 0.00 01/31/2000 61.77 0.00 0.00 0.00 01/31/2000 48.65 0.00 0.00 0.00 01/31/2000 29.19 139.61 0.00 0.00 0.00 01/08/2001 0.00 0.00 0.00 0.00 01/08/2001 8.73 0.00 0.00 0.00 01/08/2001 10.59 0.00 0.00 0.00 01/08/2001 0.00 19.32 Total Paid: 809.88 NO71CE: This document is not a tax certificate antl tloes not abso in error, it may be corrected by the Collection Ofiice listed above. as ou[lined in the 7exas PropertyTaz Code. Unpaid Bills Summary . No Information on File. ?aid.RefundsSummary ' . No Intormation on File. " End of Statement e a Taxpayer from tax liability in any way. N this document is fountl to be Page 1 lesponsibility to pay ihe remaining taxes rests entirely with the Taxpayer, Statement of Account LAMAR COUNTY APPRAISAL DISTRICT 521 BONHAM - PO BOX 400 'ARIS, TX 75461-0400 NOTICE: 7his is a statement of Taxes Paid & Due as of 08113/2001 02:00:55PM basetl upon the tax records of ihe taz oRice. Property Information PropertylD: 20434 GeoID: 023070-00100-0050 Legal Acres: 0.0000 Legal D2SC: WqRREN ADDITION, BLOCK t, LOT 5-6, 7746 BONHAM Value Information Owner ID: 20433 ownersnip: i NANCE R C C/O PHILLIP NANCE 3610 GRAHAM ST PARIS, TX 75460-3500 Entity Deseription CAD Central Appraisal District CPA CITY OF PARIS GLA LAMAR COUNTY JCP PJC SPA PARIS ISD Entity Year Statement ID. . TaxPaid CPA 1996 21680 72.69 GLA 1996 27680 49.53 JCP 1996 21680 22.51 SPA 1996 21680 214.11 Improvement HS: Improvement NHS: Land HS: Land NHS: Productivity Market: Productivity Use: Assessed Value 0 0 0 10,000 0 0 10,000 PcL Ex Code ' Description 100.00 % 100.00 % 100.00% 7 00.00 % 100.00 % Paid Bills Summary . 41 Patd -Att: Fee,Paitl . UnderlOver/Refund . . 4.89 . . 16.14 0.00 1 3.77 11.00 0.00 0.80 5.00 0.00 1 2.78 47.53 0.00 Posting Date 01 /31 /2000 01 /31 /2000 01 /31 /2000 01 /31 /2000 Amount Paid 123.72 84.30 38.31 364.42 610.75 121.53 78.90 36.13 332.45 569.01 11079 71.93 34.04 303.13 519.89 8227 50.44 23.36 212.56 368.63 61.00 35.36 16.37 153.40 266.13 Total for Year 7996 CPA 1997 21873 77.70 7.98 15.85 0.00 01/31/2000 GLA 1997 21873 50.45 8.16 10.29 0.00 01/31/2000 JCP 1997 21873 23.10 8.32 4.71 0.00 01/31/2000 ,SPA 1997 27873 212.57 6.52 43.36 0.00 01/31/2000 "otal for Year 7997 .:PA 1998 27798 77.70 8.64 14.45 0.00 01/31/2000 GLA 1998 21798 50.45 2.10 9.38 0.00 01/31/2000 JCP 1998 21798 23.88 5.72 4,44 0.00 01/31/2000 SPA 1998 21798 212.57 1.02 39.54 0.00 01/31/2000 Total for Year 1998 CPA 1999 67372 8227 0.00 0.00 0.00 01/31/2000 GLA 1999 67372 50.44 0.00 0.00 0.00 01/31/2000 JCP 1999 67372 23.36 0.00 0.00 0.00 01/31/2000 SPA 1999 67372 212.56 0.00 0.00 0.00 01/31/2000 Total for Year 1999 CPA 2000 22903 61.00 0.00 0.00 0.00 01/08/2007 GLA 2000 22903 35.36 0.00 0.00 0.00 01/08/2001 JCP 2000 22903 76.37 0.00 0.00 0.00 01/08/2007 SPA 2000 22903 153.40 0.00 0.00 0.00 01/08/2001 Total for Year 2000 Total Paid: . . . Unpaid BiIlsSummary . . , . No Information on File. i Retuntls: S4mmary Information on File. *End of Statement NOTICE: This tlocument is not a tax certificate antl does not absole e Taxpayer from tax liability in any way. If this document is tountl to be In error, it may be corrected by the Collection Olfice listed above. esponsibility to pay the remaining taxes rests entirely with the Taxpayer, as outlined in the Tezas PropertyTax Code. 2,334.41 Page 7 United Legal description of the land: Situated in the County of Lamar and SURVEY, being Lot number four (4), ar Addition to the City of Paris, Lamar Cou one-half of Lot number seventeen (17) i shown by the plat recorded in Book 70, Lots Nineteen (19) and twenty (20) o JARMAN SURVEY, according to plat of Deed Records. All those certain lots or parcels of lar (6) of the Warren Addition to the City of Book 76, Page 367, Lamar County Dee TLTA Commitment (PropeAy Description) Title Insurance Company LEGAL DESCRIPTION tate of Texas, a part of the ASA JARMAN HEADRIGHT the West one-half of Lot number three (3) of Warren's y, Texas, also Lot Number Eighteen (18) and the West the Plat of Warrens Addition to the City of Paris, Texas, as age 367, of the Lamar County Deed Records. Warren Addition to the City of Paris, a part of the ASA i addition, recorded in Book 70, Page 367, Lamar County I in Lamar County, Texas, described as Lots Five (5) and Six aris, according to map or plat of such addition recorded in Records. (014736ug.pfd/014736UG/11) r PROPER-TY 20432 R 'LegalDescription WARREN ADDITION, BLOCK 1, LOT ALL 2 161 /2 3 17.1710 BONHAM 023070-00100-0020 SITUS 1710 BONHAM UTILITIES U TOPOGRAPHY LEV ROAD ACCESS P ZONING SFR NEXT REASON PROPERTY APPRAISAL INFORMATION 2001 OWNERID NCE 106594 PAR BONHAM ' OWNERSHIP 100.00°k RefID2:R20432 Map ID 14 RIS,TX 75460 GENERAL LASTAPPR. BS,BM LASTAPPR.YR LAST INSP. DATE 03130/1999 NEXT INSP. DATE REMARKS DELETED 2 HOUSES FOR 1993. BUILDING PERMRS ISSUE DT PERMIT TYPE PERMIT AREA PERMIT VAL SALE DT PRICE GRANTOR DEED INFO 06/15/1986 MERRITT R4NCE & OT / 30 / 126 ACRES: SKETCH for Improvement #1 (RESIDENTIAL) i8' OP 8 Entities Values CPA 100°k IMPROVEMENTS 31,350 GLA 100°k Lp,ND MARKET + 16,250 JCP 100% MARKET VALUE = 47,600 SPA 100% pRODUCTIVITYLOSS - 0 APPRAISED VALUE = 47,600 HS CAP LOSS - 0 ASSESSED VALUE = 47,600 EXEMPTIONS HS HOMESTEAD SUBD: S31390 100.00% NBHD:S31390 IMPROVEMENT INFORMATION I# TYPE DESCRIPTION MTHD CLASS AREA UNIT PRICE BUILT EFF YR COND. VALUE PHYS ECON FUNC COMP ADJ ADJ VALUE MA MAINAREA R F3PC 1,936.0 23.76 47,370 50% 100% 100% 100% 0.45 21,320 CP CARPORT R ` 408.0 4.75 1,940 50% 700% 100% 100% 0.45 870 1. RESIDENTIAL STA7E CODE: Ai 2,440.0 Homeske: Y 49,770 22,400 SKETCH COMMANDS MA DU44,DR12,DU20,DR22,DD64,DL34 OP MR11,DD8,DR12,DU8,DL72 CP MU28,DL18,DU20,DR30,DD4,DL12,DD16 IMPROVEMENT FEATURES Plumbing 2 1,370 Construction Sryle CV 0 Foundation PI 0 InteriorFinish 5 0 Roof Style GS 0 Flooring CA 0 Heating/Cooling CHCA ~ 1,370 SUBD: 531390 100.00% NBHD:S31390 LAND INFORMATION IRR WeIIs:O Capacity: 0 IRRACres:O Oil WeIIS:O L# DESCRIPTION CL4SS STATE CD HS METH DIMENSIONS UNIT PRICE GROSS VALUE ADJ FCTR MASS ADJ VAL SRC MKT VAL AG APPLY AG CLASS AG TABLE AG UNIT PRC AG VALUE 1. RESIDENTIALSINGLEFAMIlYS373905 A1 Y SQ 14,040.0000 SQ .75 10,530 7.00 1.00 F 10,530 0.00 0 2. RESIDENTIALSINGLEFAMILVSPECIAL Ai Y 5o 13,950.0000 S4 .41 5,720 1.00 1.00 F 5,720 0.00 0 16,250 0 Page 1 of 4 1 Effective Date of Appraisal: January i' Date Printed: 06125/2001 01:25:49PM by MWALKER I 'ue Aulomation, Inc. PROPERTY 20432 R Legal Description WARREN ADDITION, BLOCK 1, LOTALL 2 16 1 /2 3 17,1710 BONHAM PROPERTY APPRAISAL INFORMATION 2007 OWNER ID MERRITf RANCE 106594 1770 BONFIAM PARIS, TX 75460 OWNERSHIP 100.00% Ref ID2: R20432 ACRES: 023010-00100-0020 Map ID 14 SITUS 1710 BONHAM PARIS, TX 75460 GENERAL UTILITIES U LASTAPPR. BS,BM TOPOGRAPHY LEV LASTAPPR.YR ROAD ACCESS P LAST INSP. DATE 03/30/1999 ZONING SFR NEXT INSP. DATE NEXT REASON REMARKS DELETED 2 HOUSES FOR 1993. BUILDING PERMITS ISSUEDT PERMITTYPE PERMITAREA PERMITVAL SALE DT PRICE GRANTOR DEED INFO 06115/1988 MERRITT RANCE & OT / 30 / 126 SKETCH for Improvement #2 (RESIDENTIAL) DG 2 24~ 24' S 6G 24 6 7 __.24' SUBD: S31390 100.00% NBHD:S31390 IMPROVEMENT INPORMATION I# NPE DESCRIPTION MTHD CL4S5 AREA UNIT PRICE BUILT EFF VR COND. VALUE PHYS ECON FUNC COMP ADJ ADJ VALUE DGF2 MAIN AREA R FL 576.0 8.71 5,020 60% 100Yo 50% 100% 0.15 750 . up„1G (-eoerFeor gp F?r. 576 ,0 177A q,aan f.ft% 1fH1% Sf1% if10W 015 1,490 2. RESIDENTIAL STATE CODE: A1 1,752.0 Homesite: Y 14,950 2,240 SUBD: 531390 L# DESCRIPTION SKETCHCOMMANDS DGF2 DD24,DL24,DU24,DR24 MA2G MR10,DD24,DR24,DU24,DL24 IMPROVEMENT FEATURES Construction Sryle CV Foundation PI E#erior Wall MS ..,:2^..or F'nlsh RoM Sryle GS 0 Flooring CA 0 Heating/Cooling OT 0 Plumbing 1 ~ 0 100.00% NBHD:S31390 LAND INFORMATION IRR Wells: 0 Capacity: 0 IRR Acres: o Oil Wells: 0 CLASS STATE CD HS METH DIMENSIONS UNIT PRICE GROSS VALUE ADJ FCTR MASS ADJ VAL SRC MKT VAL AG APPLV AG CLASS AG TABLE AG UNIT PRC AG VALUE Entities Values CPA 100°h IMPROVEMENTS 31,350 GLA 100% LqND MARKET + 16,250 JCP 100°k MARKET VALUE = 47,600 SPA 100% pRODUCTIVITY LOSS - 0 APPRAISED VALUE = 47,600 HS CAP LOSS - 0 ASSESSED VALUE = 47,600 EXEMPTIONS HS HOMESTEAD 0 0 0 Page 2 0( 4 1 EHeGive Date of Appreisal: January 1 ' Date Printed: 06252001 0125:49PM by MWALKER ' ~ie Automation, Inc. PROPERTY 20432 R OWNER iD LegalDescription 106594 WARREN ADDITION, BLOCK 1, LOT ALL 2 16 1 12 3 17,1710 BONHAM OWNERSHIP 100.00% RefID2:R204 32 023070-00100-0020 MapID 14 SITUS 1710 BONHAM PARIS, TX 75460 GENERAL UTILITIES U LASTAPPR. BS,BM TOPOGRAPHY LEV LAST APPR. YR ROAD ACCESS P L4ST INSP. DATE 03130/1999 ZONING SFR NEXTINSP.DATE NEXT REASON REMARKS DELETED 2 HOUSES FOR 1993. BUILDING PERMRS ISSUEDT PERMITTYPE PERMITARE4 PERMITVAL SALE DT PRICE GRANTOR DEED INFO 06115/1966 MERRITT RANCE & OT I 30 / 126 PROPERTY APPRAISAL INFORMATION 2001 MERRITT RANCE 1710 BONHAM PARIS, TX 75460 ACRES: SKETCH for Improvement #3 (RESIDENTIAL) 2 - Z~ 6 - I30' MA 30 &40' 28' - ~ Entities Values CPA 100°h IMPROVEMENTS 31,350 GLA 100% Lp,ND MARKET + 16,250 JCP 100% MARKET VALUE = 47,600 SPA 100°,6 pRODUCTIVITY LOSS - 0 APPRAISED VALUE = 47,600 HS CAP LOSS - 0 ASSESSED VALUE = 47,600 EXEMPTIONS HS HOMESTEAD SUBD: 531390 700.00% NBHD:S31390 IMPROVEMENT INFORMATION I# NPE DESCRIPTION MTHD CLASS AREA UNIT PRICE BUILT EFF YR COND. VALUE PHYS ECON FUNC COMP ADJ ADJ VALUE MA MAINAREA R F2C 840.0 20.11 76,890 35% 100% 100% 700% 028 4,730 3. RESIDENTIAL STATE CODE: A1 960.0 Homesi[e: Y 17,450 4,890 SUBD: 531390 100.00% NBHD:S31390 LAND INFORMATION IRR Wells: 0 Capacity:0 IRRACres: 0 Oil Wells: 0 L# DESCRIPTION CLASS STATE CD HS METH DIMENSIONS UNIT PRIGE GROSS VALUE ADJ FCTR MASS ADJ VAL SRC MK7 VAL AG APPLY AG CLASS AG TABLE AG UNIT PRC AG VALUE SKETCHCOMMANDS MA D128,DU30,DR28,D030 SP MU30,Ml4,DU6,DL20,DD6,OR20 IMPROVEMENT FEATURES Construclion Style CV ~ 0 P0g0 3 oF 4 ( ENective Dale of Appreisal: January U Date Pnnted: 06/25/2001 0125:49PM by MWALKER + ve Automation, Inc. PROPERTY 20432 R OWNER ID LegalDescription 106594 WARREN ADDITION, BLOCK 1, LOTALL2161 3 17,1710 BONHAM OWNERSHIP 100.00% RetID2: R20432 023010-00100-0020 MapID 14 SITUS 1710 BONHAM PARIS, TX 75460 GENERAL UTILITIES U LASTAPPR. BS,BM TOPOGRAPHY LEV L4ST APPR. YR ROAD ACCESS P LAST INSP. DATE 03/30/1999 ZONING SFR NEXT INSP. DATE NEXT REASON REMARKS DELETED 2 HOUSES FOR 1993. BUILDING PERMRS ISSUE DT PERMIT TYPE PERMIT AREA PERMIT VAL SALE DT PRICE GRANTOR DEED INFO 06/15I1988 MERRITT RANCE & OT / 30 / 126 PROPERTY APPRAISAL INFORMATION 2007 MERRITT RANCE 1710 BONHAM PARIS, TX 75460 ACRES: SKETCH for improvement ifd (RESIDENTIAL) MA 24 576' 24' ~ Entldes Values CPA 100°k IMPROVEMENTS 31,350 GL4 100% Lp,ND MARKET + 16,250 JCP 100% MARKET VALUE = 47,600 SPA 100°h pRODUCTIVITY LOSS - 0 APPRAISED VALUE = 47,600 HS CAP LOSS - 0 ASSESSED VALUE = 47,600 EXEMPTIONS HS HOMESTEAD SUBD: 531390 700.00% NBHD:S31390 IMPROVEMENT INFORMATION I# TYPE DESCRIPTION MTHD CLASS AREA UNIT PRICE BUILT EFF VR COND. VALUE PHVS ECON FUNC COMP ADJ ADJ VALUE MA MAINAREA R F2C 576.0 21.08 12,140 30% 100% 100% 100% 0.15 1,820 4. RE°o.BEP}TI,:~STATE . FN E7e~0 uw,,;.-ne:A..P'i 11,1en I a7n SUBD: 531390 L# DESCRIPTION 100.00% NBHD:831390 LAND INFORMATION IRR Wells: 0 Capacity: 0 IRR Acres: 0 Oil Wells: 0 CLASS STATE CD HS METH DIMENSIONS UNIT PRICE GROSS VALUE ADJ FCTR MASS ADJ VAL SRC MKT VAL AG APPLY AG CLASS AG TABLE AG UNIT PRC AG VALUE SKETCH COMMANDS MA DL24,DU24,DR24,DD24 IMPROVEMENTFEATURES Pege 4 Ot 4 ERective Date of Appraisal: January ~ Date Ptlnled: 06/25/2001 0125:50PM by MWALKER ' ve Automation, Inc. SAL ~ N APPRAISAL OF A 68,460 SF Lot 1726-174 Bonham & 1735-1753 Maple Pa is, Lamar County, Texas (Kammer) Prepared For Mr. Pat Bassano Federal Community Bank i30 Clarksville Street Paris, Texas 75460 File #Kammer.801 PAT MU~PHY & ASSOCIATES I ~h SUMMARY OF IM ORTANT FACTS AND CONCLUSIONS L,ocation: 1726-46 Bonham Street and 1735-53 Maple, Paris, Texas Buyer: Rights Appraised: Property Description: Highest and Best Use: Estimate of Property Value: Sales Comparison: Final Opinion of Value: Date of Value: L. Kammer Simple r old single family dwellings (no value) on an 68,460 SF mercial site vision for General Retail Use 55,000 14, 2001 PAT MURPHY & ASSOCIATES - Client: Mr. Pat Bassano First Federal Co 630 Clarksville Paris, TX 75460 A12oraiser: Pat Murphy and, 712 l9th SE Paris, TX 75460 Identification of the Propertv The subject was essentially six pl commercial land situated on the noi some 160' west of 17'h NW street in addresses were 1726 and 1746 Bont Historv of the Subject The ►ots have belonged to R. C Nanc have been rented but all were vacant the two others to be moved. The subjec a 210' x 156' facing Bonham and a 211 buyer offered $45,000 and the seller dedicated but undeveloped alley and tl June 22, 2001, the property was re-z ciosed. It will formally be closed on Se the petition and it has received approv, Engineer. The buyer offered $45,000 of any other contracts or offers to sell Purpose of the Appraisal The purpose of this appraisal was to as of Augus[ 14, 2001. Intended Use of the Appraisal Bank :d lots and two half lots comprising some 68,460 SF of side of Bonham street and the south side of Maple Avenue I western portion of Paris, Lamar County, Texas. The street I i street and 1735 through 1753 Maple Avenue, Paris, Texas. and his estate for many years. Some of the four dwellings the inspection. The buyer will raze two dwellings and sell has been listed for sale since December 1, 1999, as two lots, x 155' lot facing Maple for a total list price of $50,000. The ccepted the offec The two halves were separated by a IS' y were zoned Two Family. Since [he contract was signed on ned General Retail and the alley has been approved to be ember 6, 2001, but ail adjacent property owners have signed by the Director of Public Works, City Attorney, and the City id the seller accepted the offer. The appraiser was unaware ,r purchase the property. an opinion of the market value of the fee simple estate The intended use of this appraisal was to aid the client and intended user, First Federal Community Bank in underwriting a mortgage loan on the subject. Its use by others or for any other use was not intended by the appraiser. L,eeal Descri~t'~on - The subject is legally described as Lot 4, 5, 6 18, 19, 20 and the west half of Lots 3 and 17, Block 1, Warren Addition to the City of Pari . As a result of the 15' alley closing, the each lot will have an additional 7.5' of depth. PAT MUkPHY & ASSOCIATES 2 ~ Scone of the Aoaraisal The scope of an appraisal involves th 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 v lue 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 ractice. The old improvements have essential ly no value and the cost approach was omitted. The in ome approach is not relevant ro vacant land in this area and it too was omitted. Thus, the sales co parison approach was the only meaningful approach to use in appraising property of this type. The subject is essentially a large trac of vacant commercial land on one of the major corridors entering Paris. As such, the market re earch was limited to the Bonham street corridor. The appraiser has appraised numerous ~acant and improved tracts in Paris and on Bonham s[ree[ and no steps were necessary to fulfill the co petency provision of the Uniform Standards of Professional Appraisal Practice. During the conduct of [his appraisal, t e appraiser personally inspected the subject property and its neighborhood, conducted research in o the present land use trends, comparable land sales and listings, inspected those sales and li tings, confirmed the sales data with one of the principals involved, developed an analysis of hi hest and best use, analyzed the sales in comparison to the subject property, formed an opinion f value and produced this appraisal report. In the analysis of the area, neighborhood, highest and b st use, supply and demand, and the gathering of cotnparable data, the appraiser surveyed the b okers active in the local commercial market lenders; governmental statistics and public rec rds; several local commercial investors and property owners on this strip; as well as the files of Pa Murphy and Associates. The subject was inspected on the datel of value and the date of this report was August 25, 2001. No personal property was included in the opinion of value. PAT M RPHY & ASSOCIATES ~ This is a Summary Appraisal report w forth under Standard Rule 2-2 ( b) of a Summary Appraisal Report. As suc and analyses that were used in the ap The legal description was assumed ;h is intended to comply with the reporting requirements set : Uniform Standards of Professional Appraisal Practice for it includes summarized discussions of the data, reasoning, iisal process to develop the appraiser's opinion of value. No survey of the property has been ade by the appraiser and no responsibility is assumed in connection with such mat[ers. It shoul be noted that the metes and bounds calls from the description provided were not comple[e. Sketch s in this report are inciuded only ro assist the reader in visualizing the property. No responsibility is assumed for mal opinion of title rendered. The title is of a legal nature affecting title to the property nor is an med to be good and merchantable. Information furnished by others is assi been made to verify such information; appraiser. All mortgages, liens, encumbrances, within the repoR. The property is aF management. Unless otherwise stated in this repoi limitation, asbestos, polychlorinated h may or may not be present on the prop attention of, nor did the appraiser be appraiser has no knowledge of the exi: stated. The appraiser, however, is not of such substances as asbestos, urea f or environmental conditions may effe on the assumption that there is no suc that it would cause a loss in value. No expertise or engineering knowledge r It is assumed that there are no hidden which would render it more or less , for engineering which may be requin such things as foundation failure, a underground storage tanks, cemeteri It is assumed that there is full compli regulations and laws unless non-com It is assumed that all applicable zon to be true, correct, and reliable. A reasonable effort has ~ver, no responsibility for its accuracy is assumed by the and servitude have been disregarded unless so specified as though under responsible ownership and competent the existence of hazardous substances, including without phenyls, petroleum leakage, or agricultural chemicals, which rty, or other environmental conditions, were not called to the ome aware of such, during the appraiser's inspection. The ence of such materials on or in the property unless otherwise ualified to test such substances or conditions. If the presence rmaldehyde foam insulation, or other hazardous substances t the value of the property, the value estimate is predicated condition on or in the property or in such proximity thereto, esponsibility is assumed for any such conditions, nor for any to discover them. unapparent conditions of the property, subsoil, or structures uable. No responsibility is assumed for such conditions or to discover them. These items include but are not limited to -stos, radon gas, covered landfills or toxic dumping sites, and rare and endangered plants and animals. ce with all applicable federal, state and local environmental ance is stated, defined and considered in the appraisal report. use regulations and restrictions have been complied with, PAT MUIRPHY & ASSOCIATES unless a non-conformity has been stat~d, defined and considered in the appraisal report. It is assumed that ail required licenses, consents or other legislative or administrative authority from any local, state or national governm ntal or private entity or organization have been or can be obtained or renewed for any use on w ich 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 tha there is no encroachment or trespass unless noted within the report. The appraiser will not be required to g ve testimony or appear in court because of having made this appraisal, with reference to the propert in ques[ion, unless arrangements have been previously made therefor. A valuation relating to an estate in 1 nd that is ]ess than the whole fee simple estate related to a fractional interest only in the real esta e involved in the value for this fractional interest plus value of all other fractional interests may o may not equal the value of the entire fee simple considered as a whole. The distribution of the total valuation m this report between land and improvements applies only under the reported highest and best se of the property. The allocations of value for land and improvements must not be used in co junction with any other appraisal and are invalid if so used. One or more of the signatories of this Institute. The Bylaws and Regulations the use of distribution of each apprai except as hereinafter provided, the par copies of this appraisal report, in its er whom this appraisal report was prepa not be given to third parties without report. Further, neither all nor any part of by the use of advertising media, communications without the prior appraisal report is a Member or Candidate of the Appraisal Df the Institute require each member and Candidate to control al report signed by such Member or Candidate. Therefore, y for whom this appraisal report was prepared may distribute :irety, to such third parties as may be selected by the party for ed; however, selected portions of this appraisal reporC shall he prior written consent of the signatories of this appraisal appraisal report shall be disseminated to the general public lic relations media, sales media or other media for public tten consent of the signatories of this appraisal report. PAT MURPHY & ASSOCIATES 5 Definitions Market Value The most probable price which a pro conditions requisite to a fair sale, the assuming the price is not affected by of a sale as of a specified date and the a. Buyer and seller are typically n b. Both parties are well informed bes[ interests; c. A reasonable time is allowed f( d. Payment is made in terms of comparable thereto; and e. The price represents the norma creative financing or sales conces should bring in a competitive and open market under all and seller, each acting prudendy and knowledgeably and stimulus. Implicit in this definition is the consummation ng of tide from seller to buyer under conditions whereby: well advised, and acting in what they consider their own exposure in the open market; in U.S. dollars or in terms of financial arrangements consideration for the property sold unaffected by special or granted by anyone associated with the sale. I Fee 3imole An absolute fee; a fee without limitat'ons 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 L.eased Fee An ownership interest held by a landl yd with the right of use and occupancy conveyed by lease [o others; usually consists of the right t receive rent and the right of repossession at the termination of the lease. 3 Goiniz Concern Value The value created by a proven propert operation; considered as a separate entity to be valued with a specific business establishment. 4 Business Value A value enhancement that results t management skill, an assembled trademarks, contracts, ►eases, and 1 Department of Treasury, Office of 2 American Institute of Real Estate Chicago, Illinois: AIREA, 1984) p. I 3 Ibid, p. 179 4 Ibid, p. 160 5 Ibid, p. 44 items of intangible personal property such as marketing, and kforce, working capitol, trade names, franchises, patents, ating agreements. 5 Comptroller of the Currency, 12 CFR Part 34.42. praisers, Ist ed. The Dictionarv of Real Estate Appraisal PAT MURPHY & ASSOCIATES ~ 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, mployment, cultural and medical center for a trade area that exceeds 150,000 people and includes ome or all of the surrounding five counties in Texas and the [hree counties in southeastern Oklaho a. The city had a population of 25,998 persons according to the 2000 census which was a 4.8% g in in population from 1990 to 2000. The county as a whole grew 10.4% to 48,499 persons over th same period. The primary growth direction of the city is east and the most popular area of the co nry for residential rural growth is north and east. The city annexed some 10,000 acres mosdy to he north and east, between 1997 and 1999 and its population growth was primarily due to that anne ation. Paris and Lamar County have a stable economic future based on the diversity of jobs in the edical, industrial, retail, and agricultural fields coupled with a strong local financial base and a wid trade area. These factors insure a steady economy and a very siow but positive growth much like t ey have experienced in the past. The immediate neighborhood is defin d as a two block wide corridor from17'h street on the east to 19" street intersection on the west. his a mixed use with commercial, retail, multi family and ecclesiastical uses mixed with older ingle family dwellings. Zoning is mixed with Commercial, General Retail, Multi Family, Two F mily and Single Family in these twelve blocks. The subject has a]arge, old, single family dwelling just east on the Bonham street frontage and in both directions on Maple Avenue; there is a large auto obile repair and service center and a churchjust south across Bonham s[reet the church parking lotjust west on Bonham street with older residential uses to its north across Maple. The Hick Tire a d Muffler Center and the campus of the Immanuel Baptist Church are the largest land users in th immediate strip but several other churches are within three blocks. The traffic count in front of t e subject according to the last published survey (1999) was about 7,400 cars per day. The Iatest new construction include an ATM pad for Liberty National Bank on the corner of Bonham and 19'h street and a 32 unit s If storage facility in the 1800 Block of Bonham street in 1999 and a complete renovation of a five ay carwash at 19'h and Bonham in 2000. Just beyond the immediate strip, a twelve unit apartm nt complex comprising the first phase of a 36 unit complex of privately subsidized apartments wa, completed in late 1999 at the corner of Bonham and 25°i NW and seven units at Bonham and 23"' S were completed in 2000. An 18 unit complex is currendy planned just three blocks east at 13`h W and Bonham if financing can be arranged, and a two bay fast lube is soon to be bui]t 90' east o the subject at 17'" NW and Bonham. Overall, development along the strip usually Iags well behin the other major highways into Paris except for SH 19, and unlike the others, it is usually of mix d use. That trend should continue on the future. PAT MUIRPHY & ASSOCIATES 7 'J 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 3 6' of depth according to the city plat. Both streets were two lane, asphalt surfaced with concrete urb and gutter. There may have been some typical utility easements along the streets. It was at treet grade on both sides but sloped very gently to the north with most of the run off in that directio . None of the property was in the 100 year flood plain. I[ was almost entirely open but had a few The subject was zoned General Re classifications of office, neighbort specific side or set back requirem property line. It had a 40% lot covi 400 square feet of floor area for oi service uses. It is one of the most feasible uses for the subject. The dwellings at 1726 Bonham and ] dwelling at 1749 Maple was Iiveable four rooms, two bedrooms, and a sin paint, the shingled roof needed recov be sound enough to withstand a mo, exactly the same except that it me', perimeter. There was also an old de demand for these small dwellings to value of the land as now zoned. The F about offset the cost of razing the oC Ad Valorem Tax Data trees. which allows a wide variety of uses including all the lesser i service, and multi family. There is 20' front back but no ; except that a gasoline pump must be at least 12' off the e ratio. The general parking requirements are one space per s and one space per 200 square feet for retail and personal 'estrictive classifications available and should satisfy most 35 Maple were beyond feasible repair. A 28.2' x 28.2' frame ith some minor repairs. It was probably 50 years old and had ; bath, 6' x 6', added to a rear cornec Its wood siding needed ng and the interior finish needed updating but it appeared to to another site. The dwelling just west at 1753 Maple was ired 28.2 x 30.2 and had its single bath inside the main ;hed garage between the two that had no value. There is a ; moved to other sites but overall, they added nothing to the sible salvage value of $1,000 to $2,000 per house should just r two dwellings. Presently, the subject was assessed in three accounts. The total ]and was assessed at $30,080 with unit assessments ranging from $0.53 SF for the vacant land on Bonham to $0.43 PSF for the lots as residential tracts. The smaller com ercial zoned tract at I704 Bonham was assessed at $0.75 P5F and the 53,350 SF site across the str et 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 000 were $1,102. Next year, the improvements should e dropped and the land raised to reflect [he zoning change. This the land assessment was estimat d at $0.75 PSF or $51,345 which is very closer to market. The 2002 rate was estimated to be 404 higher or $2.77 for a total tax burden of $1,420. The tax assessments are based on m s appraisal techniques and are not necessarily indicative of market value and do not effect sales rices. PAT MUIRPHY & ASSOCIATES ~ i Hiehest and Best Use Highest and best use is defined as that easonable and probable use that supports the highest present value, as defined, as of the effective da e of the appraisal. This use must be physically possible, legal, financially feasible and result in the h ghest land value. As VacanC The General Retail zoning would leg Ily allow almost any feasible use and its size and desirable topography will accommodate many d fferent uses. The larger sales will show this trend. It probably has greater utility as one or two large I ts than as six smaller lots. The dual access is positive for its appeal. The immediate neighborhood has trad gradually giving way to retail and se concentrated on or near the l9'h street i when a lot of this size is developed in in the area and neighborhood analysis with multi family keeping pace with i involves a 2,000 SF to 4,000 SF meta type of owner occupied use. The typi small modesdy finished units. Given the planned construction of 18 units a for development inro some type of ret of vacant Iand in this strip; thus, iowner/occupant purchased the sites. :ionally been a mixed use strip with the older residential uses vice oriented businesses. Most commercial uses have been tersection but that development is slowly spreading. Usually, his strip, it has been for multi family use. The data presented howed that the type of new construction in this strip is varied ie odd commercial use. Most new commercial construction building with or without brick veneer, constructed for some al multi family project is a six ro twelve unit complex with he location and the characteristics of the neighborhood, and 13`h and Bonham, the subdivision of the subject into two lots il or service type use was most likely. There is a fair amount would most likely remain vacant until such time as an The subject has been purchased for ulti ate 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 competed with this same mixture of uses. PAT MUIRPHY & ASSOCIATES Sales Comparison Approach This approach is based on the principli by the prices generally obtained for si properties are compared to the subject on a price per square foot (PSF) b participants. The motivation for purch their business location. of substitution; that is, the value of the properfy is governed nilar properties. In this approach, various sales of similar ~nd adjusted for [he major differences. They were compared sis which is a commonly quoted indicator between the sers in this type property is usually from individuals desiring The most recent similar neighborhoo~sales in this size range are listed in the analysis below. The sales were all on Bonham street. All he sales were all cash or conventional financing; thus, no financing adjustment was warranted. hey were all arm's length transactions. No. Grantor Date Size/SF Sales Price SP/SF Zonine As Compared to Subject l 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 MP Corner 5 Stillwell/Clarkson 04/01 33,323 $25,000 $0.75 C Smaller, corner 6 Conrad/Miller 08/01 19,060 $30,000 $1.57 G217 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 1 through 2 are dated and sales'_ raw prices as do most of the more rece Copography. Other than time, it was si also had dual frontage on Bonham and in zoning but a similar size and had o in size. and 4 are slightly dated but all four show the same range of it sales. Sale 1 was a mush smaller, corner site with sloping perior to the subject. Sale 2 was a slightiy smaller tract that Vlaple. It was high sale for its time period. Sale 3 was inferior irner access. Sale 4 was a small corner lot that was superior Sale 5 was a recent sale of a larger co ner lo[ that had inferior topography. It was purchased as the site for 18 to 25 apartment units but t e financing for the overall project has not yet been arranged due to the low rent levels in compar son to the costs of construction. The sale was inferior in ropography with a sharp slope but it as also about half the size. Those two factors were offsetting and it indicated about $0.75 PSF for t e subject. Sale 6 is the last closed sale in [he ne strip at $ I.57 PSF. That price seemc demolition of a 320 SF inasonry build to its rear but for its intended use, a fa: offset by its demolition costs and the c it was -30%. It indicated about $1.10 ;hborhood. It was clearly in a price level all i[s own for this over market, especially when considering the cost of the ig and some concrete paving on the site. It had a sharp slope lube, the slope was not a detriment. The corner location was al access of the subject Size was its primary adjustment and - Sale 7 was the current contract on the subject's parent tracts. It is inferior to the actual subject due [o zoning and the 15' alley bisection. T e alley closing will add another 3,150 SF to this property and give it increased utility as a entirely u eable tract of ]and with dual access. Considering the added PAT MUIRPHY & ASSOCIATES 10 - utility of a raw site that is not for General Retail use, it was PSF. The majority of the sales data sug of that range or about $0.80 PSF was, in round figures, red by old improvements or bisected by an alley, and zoned about I S% or $0.10 PSF and the sale indicated about $0.79 a value between $0.75 and $ L 10 and a value in low center most reasonable. Thus, the estimated value of the subject $55,000 In this appraisal, the subject was value using the sales comparison approach. I[ estimated the value of the fee simple estate at $55,000 hich was a$1Q000 increase over the contract price. This increase was earned through the ad ed utility of closing the alley and re-zoning to a higher classification. Consequently, my opinion of the August 14, 2001 was, value of the fee simple estate in the subject properry as of FIFTY THOUSAND DOLLARS ($55,000) Exnosure Period The opinion of value assumed the su months prior to the date of value. was properly exposed to the market for nine to [welve Marketing Analysis The actual marketing history of some of the sales has been quite long as the subject itself shows. Propedy listed at $50,000 or wi[hin % of the sales price, it still took over 18 months to reach contract The present overall demand for real e! is plentiful and as new constructio entrepreneurial effort. Therefore, the command the appraised value was ata, exposed to the market. te in this strip is the best in several years, mortgage money rates show, numerous individuals are interested in an imated future marketing time necessary for the subject to t nine to twelve months from the date of value if properly PAT MUIRPHY & ASSOCIATES i i ~ CERTIFICATION I certify that, to the best of my The statements of fact contained in this The reported analyses, opinions, and conditions, and are my personal, imf and belief: are true and wrrect. isions are limited only by the reported assumptions and limiting and unbiased professional analyses, opinions, and conclusions. I have no present or prospective interes m the property that is the subject of [his report and I huve no personal interest or bias with respect to t e parties involved. I have no bias with respec[ [o the property~ that is the subject of this report or to the par[ies involved with this assignment. My engagement in this assignment, was not contingent upon developing or reporting predetermined results. My compensation for completing this ass gnment is not contingent upon the development or reporting of a predetermined value or direction in valu that favors the cause of the client, the amount of the opinion, the a[tainment of a s[ipulated result, or the oc urrence of a subsequent event direcdy related to the intended use of this appraisal. The appraisal assignmen[ was not base on a reques[ed minimum valuation, a specific valuation, or predicated in any way on the approval of the loan. My analyses, opinions, and conclusions ere developed, and this repor[ has been prepared, in conformity with the Uniform Standards of Professi nal Appraisal Practice; the Code of Professional Ethics and the Standards of Professional Practice of the ppraisal Institute; and the Code of Ethics of the American Society of Farm Managers and Rural Appraisers. The use of this report is subject to [he re uiremen[s of the Appraisal Institute and the American Society of Farm Managers and Rural Appraisers rela ing to review by its duly authorized representatives. As of the date of this report, W. P. Murphy has comple ed the requirements of the continuing education program of the Appraisal Institute. The American Socie y of Farm Managers and Rural Appraisers conducts a mandatory program of continuing education. W. P. 14urphy is current with the requiremen[s of [he program. The appraiser has made a personal No one provided significant My opinion of the market value of the FIFTY (v Y-v -C) L Date of the property that is the subject of this report. assistance to the person signing the report. property as of August 14, 2001, was THOUSAND DOLLARS ($55,000) W. P. (Pat) Murphy, TX-132021_` PAT MUIRPHY & ASSOCIATES 12 FLOW PRELIMINARY DRAFT MONTHLY CASH FLOW PROJECTION NAME OF BUSINESS: ADDRESS: OWNER: 7vaE OF BUSU+e55: PREPARED BY: DATE: The Lamar Colon 1746 Bonham St Paris TX KG LLP Assistetl Livin Kenn Kamer 9/4/2001 Pre-SWrtup MONTH: Position 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL VEAR MONTH Columns 1-12 Estimte Estimate Estimte Es[ima[e Eslimate Estimate Estimte Eslimate Estimte Es[imate Estimate Estimale Estimate Estimte 1. CASHONHAND 0 76,160 58,129 51,249 55,520 70,942 97,515 136,239 173,963 211,687 249,411 287,135 324,859 76,760 1 be innin of rtwnth 2. CASH RECEIPTS Z a. CashSales 62,000 74,400 86,800 99,200 111,600 124,000 124,000 124,000 124,000 124,000 124,000 124,000 1,302,000 a b. Cdlections from CreOit Accounts a 0 0 0 0 0 0 0 0 0 0 0 0 6 a Loan or O[her Cash in'eclion (SpecifyL 100,000 0 0 0 0 0 0 0 0 0 0 0 0 0 c 3. TOTAL CASH RECEIPTS 100,000 62,000 74,400 86,800 99,200 111,600 124,000 124,000 124,000 124,000 124,000 124,000 1 24,000 1,302,000 3 2a-2b+2c=3 4. TOTAL CASH AVAILABLE 100,000 138,160 132529 138,049 154,720 182,542 221,515 260,239 297,963 335,687 373,411 411,135 448859 1,378,160 4 Beforecashout 1+3 5. CASH PAID OUT 5 a. Purchases Merchantlise 4,000 6,245 7,494 8,743 9,992 17,241 12,490 12,490 12,490 12,490 12,490 12,490 12,490 131,145 a b. Gro55Wa es Excludeswdhtlrawals 14,400 33,250 33,250 33,250 33,2W 33,250 33,250 33,250 33,250 33,250 33,250 33,250 33,250 399,000 b c. Pa roll Ex nses axes, etc. 1,440 3,325 3,325 3,325 3,325 3,325 3,325 3,325 3,325 3,325 3,325 3,325 3,325 39,900 c d. Outsitle Services 500 500 500 500 SOU 500 500 500 500 500 500 500 6,000 d e. Su lies OficeBo ratin 1,000 1,500 1,500 7,500 7,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 e ( Re airs & Maintenance 0 0 o 0 0 0 1,000 1.000 1.000 1,000 1,000 1,000 6,000 f . Advertisin 1,000 1,000 1,000 1,000 1p00 1,000 0 0 0 0 0 0 0 5,000 h. Car, Delive ,&Trdvel 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 7,000 1,000 1 000 11000 12,000 h I. Accountin 8 Le al 800 300 300 300 300 300 300 300 300 300 300 300 300 3,600 1 Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 200 200 200 200 200 200 200 200 200 200 200 2400 k 1. Ulildies 1,200 2,732 2,732 2,732 2,732 ?732 2,732 2,732 2,732 2,732 2,732 2,732 2,732 32,784 I m.lnsurance 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 n rt Tazes Real Estate. etc 4.214 4,214 4,214 4.214 4.214 q214 4,214 4.214 4.214 4.214 4,214 50.568 m o. Inte2s[ 14,741 14,693 14 645 d 14,546 74,498 14,448 14,398 14,347 14,297 14,246 14,194 173,650 0 . Other Ex enses 5 ecifi each 0 Aurolease 950 950 950 950 950 950 9W 950 950 950 950 11,400 0 . Miscellaneous Uns ified 500 WO 500 500 500 500 500 500 500 500 500 6,000 c Subtolal 23,840 72957 74,158 75,359 77,758 77959 78909 78,859 78,808 78,758 78)07 78,655 927,447 r s. oan nnci a a men t Ca ifal Purchases (Specify) 0 t u. O[her5tart-u Costs 4 u v. Reserve and/or Excrow (Specify) 0 v w. Ownefs WrthArawal 0 w 6. TOTAL CASH PAID OUT 23,840 80,031 81,280 82,529 83j78 85,027 85,276 86,276 86,276 86,276 86,276 86,276 86,276 1,015,577 6 Tofal 5a ihru 5w 7. CASXPOSITION 76,760 58,129 51,249 55,520 70,942 97,515 136,239 173963 211,687 249,411 287,135 324,859 362,583 362,583 7 End of month 4 minus 6 ESSENTIAL OPERATING DATA (Nomcash flow infortnation) A. Sales Volume Dollars 62,000 74,400 86,800 99,200 111,600 124,000 124,000 124,000 124,000 124,000 124,000 124,000 1,302,000 A B. Accounis Receivable End of month 0 0 0 0 0 0 0 0 0 0 0 0 0 0 B C. Bad Debt Ena of monlh 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C D. InveMO on Hand End of monlh 4,000 4,000 4,000 4,000 4,000 4.000 4,000 4,000 4,000 4,000 6,000 4,000 4,000 4,000 D E. Accounts Pa able EiW o( month 0 0 0 0 0 0 0 0 0 0 0 0 0 0 E F. De reciation 0 a 0 0 0 0 0 0 0 0 0 0 0 0 F ASSUMPTIONS: Revenue: 29 Uni[s (03 2 Betls @$3500 70 Unils @ 1 BeA Q$2250 MONTHLV REVENUE AVAIIABLE Occupancy PercenWge 107,500 22.500 124,000 sai so o 70i eov soq ioa% iooi ioov ioo% iooi iooi iooi Financing Terms: Builtling $2,067,200 Q 8%for 15 years FuMEquip $128,000 Q 8% for 7 years