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4762 Ordinance - Appendix B Exhibit G
EAST UGA EXPANSION LID E/S North Rd 68 N/S Powerline Rd Pasco, WA, Washington 99301 APPRAISAL REPORT Date of Report: February 7, 2025 Colliers File #: LAS240237 Client File #: East UGA Expansion LID 24-026 PREPARED FOR Brandon Lane EIT Engineer II City of Pasco 525 N. Third Avenue Pasco, WA 99301 PREPARED BY COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LETTER OF TRANSMITTAL Colliers International Valuation & Advisory Services, and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 500+ offices throughout more than 68 countries worldwide. COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 6795 Agilysys Way, Suite 210 Las Vegas, NV 89113 USA MAIN +1 702 735 5700 FAX +1 702 731 5709 WEB www.colliers.com/valuationadvisory February 7, 2025 Brandon Lane EIT Engineer II City of Pasco 525 N. Third Avenue Pasco, WA 99301 RE: East UGA Expansion LID E/S North Rd 68 N/S Powerline Rd Pasco, WA, Washington 99301 Colliers File #: LAS240237 Client File #: East UGA Expansion LID 24-026 Mr. Lane: This appraisal report satisfies the scope of work and requirements agreed upon by City of Pasco and Colliers International Valuation & Advisory Services. At the request of the client, this appraisal is presented in an Appraisal Report format as defined by USPAP Standards Rule 2-2(a). My appraisal format provides a detailed description of the appraisal process, subject and market data and valuation analyses. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: LETTER OF TRANSMITTAL LETTER OF TRANSMITTAL CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES It is our understanding that the City of Pasco is proposing a Local Improvement District to construct and extend sewer infrastructure in the newly annexed areas of the City on the northcentral and northeast areas of the UGA. The subject is a 999.69-acre site at E/S North Rd 68 N/S Powerline Rd in Pasco, WA, Washington with agricultural, low and medium density residential and industrial zoning. The support and approval from property (individual parcel owners) and associated developers was unanimous and for this reason the LID construction project was designed, bid, and constructed in four consecutive phases. All phases have been constructed, and final, as-built construction costs are included in our cost analysis. The subject parcels are mostly raw land farm acreage that are currently being used for nonconforming, agricultural uses with prospective development, and many of these parcels are in varying stages of development as follows: VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $24,890,000 $/ Acre $24,897.72 LAND VALUATION Parcels with LID $73,470,000 Value/Acre $73,492.78 Parcels without LID $48,580,000 Value/Acre $48,595.06 Name Parcel No.Land Use / Planning Acres Developmental Status SINGH (ETUX), JASBIR 115130046 Low Density Residential 10.17 COLE, SHARON K 115130055 Low Density Residential 10.17 COLUMBIA WATERS FARM LLC 115010032 Low Density Residential Medium Density Residential Commercial 223.74 DARIGOLD, INC 124680044 Industrial 137.29 Near end of Construction FARM 2005 LLC 114250018 Low Density Residential 133.08 Preliminary-Plat Submitted, SEPA Submitted, Grading Plan Submitted Big Sky Developers (Previously: J-13, LLC)114330051 (Was: 114330045)Low Density Residential 40.31 SEPA Submitted Big Sky Developers (Previously: J-13, LLC)114330052 (Was: 114330048)Medium Density Residential 29.76 SEPA Submitted Big Sky Developers (Previously: J-13, LLC)114330053 (Was: 114330048)Medium Density Residential 6.03 SEPA Submitted Big Sky Developers (Previously: J-13, LLC)114330054 (Was: 114330048)Medium Density Residential 6.19 SEPA Submitted J-14, LLC (Previously: OLBERDING, ALLEN & CHERYL)114330031 Low Density Residential 158.15 STRIZHAK'S HAVEN RANCH LLC (Previously: J-12, LLC & OLBERDING, ALLEN & CHERYL)114330041 Low Density Residential 41.22 Preliminary-Plat Submitted, SEPA Submitted Pro Made Construction (Previously: OLBERDING, ALLEN & CHERYL)114330042 Low Density Residential 40.89 Preliminary-Plat Submitted, SEPA Submitted GS Cattle RANCH, LLC (Previously: J-12, LLC, and earlier: OLBERDING, ALLEN & CHERYL)114330043 Low Density Residential Medium Density Residential 40.65 Preliminary-Plat Submitted, SEPA Submitted PASCO SCHOOL DISTRICT NO. 1 114330059 (Was: 114330046)Public Quasi-Public 14.32 PASCO SCHOOL DISTRICT NO. 1 114330060 (Was: 114330047)Public Quasi-Public 60.26 Near end of Construction PUD #1 (FRANKLIN COUNTY)124680038 Industrial 6.70 SG LAND MANAGEMENT LLC 114330044 Low Density Residential Medium Density Residential 40.76 Preliminary-Plat Submitted, SEPA Submitted 999.69 LETTER OF TRANSMITTAL LETTER OF TRANSMITTAL CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES The analyses, opinions and conclusions communicated within this appraisal report were developed based upon the requirements and guidelines of the current Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The report is intended to conform to the appraisal guidelines of City of Pasco. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. USPAP defines an Extraordinary Assumption as, “an assignment specific-assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions”. USPAP defines a Hypothetical Condition as, “that which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis”. The Extraordinary Assumptions and/or Hypothetical Conditions that were made during the appraisal process to arrive at my opinion of value are fully discussed below. I advise the client to consider these issues carefully given the intended use of this appraisal, as their use might have affected the assignment results. EXTRAORDINARY ASSUMPTIONS It is an extraordinary assumption that the preliminary zoning and planned density for each parcel will be approved, and the entitlements will be granted for each intended use as indicated above. HYPOTHETICAL CONDITIONS This Appraisal Report is not contingent on any hypothetical conditions. RELIANCE LANGUAGE The Appraisal is for the sole use of the Client; however, Client may provide only complete, final copies of the Appraisal report in its entirety (but not component parts) to third parties who shall review such reports in connection with loan underwriting or securitization efforts. Colliers International Valuation & Advisory Services is not required to explain or testify as to appraisal results other than to respond to the Client for routine and customary questions. Please note that our consent to allow the Appraisal prepared by Colliers International Valuation & Advisory Services or portions of such Appraisal, to become part of or be referenced in any public offering, the granting of such consent will be at our sole and absolute discretion and, if given, will be on condition that Colliers International Valuation & Advisory Services will be provided with an Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to Colliers International Valuation & Advisory Services, by a party satisfactory to Colliers International Valuation & Advisory Services. Colliers International Valuation & Advisory Services does consent to your submission of the reports to rating agencies, loan participants or your auditors in its entirety (but not component parts) without the need to provide Colliers International Valuation & Advisory Services with an Indemnification Agreement and/or Non-Reliance letter. Colliers International Valuation & Advisory Services hereby expressly grants to Client the right to copy the Appraisal and distribute it to other parties in the transaction for which the Appraisal has been prepared, including employees of Client, other lenders in the transaction, and the borrower, if any. My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. LETTER OF TRANSMITTAL LETTER OF TRANSMITTAL CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES The signature below indicates my assurance to the client that the development process and extent of analysis for this assignment adhere to the scope requirements and intended use of the appraisal. If you have any specific questions or concerns regarding the attached appraisal report, or if Colliers International Valuation & Advisory Services can be of additional assistance, please contact the individuals listed below. Sincerely, COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Evan Ranes, MAI, ASA, R/W-AC Managing Director Certified General Real Estate Appraiser State of Washington License #1102235 +1 702 836 3749 evan.ranes@colliers.com TABLE OF CONTENTS TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES REPORT ORGANIZATION PROPERTY AND ASSIGNMENT OVERVIEW Executive Summary _____________________________________________________________________ 1 Area Analysis _________________________________________________________________________ 10 Local Area Analysis ____________________________________________________________________ 16 Proposed Improvements ________________________________________________________________ 19 Zoning Analysis _______________________________________________________________________ 20 MARKET ANALYSIS _____________________________________________________________________ 22 Market Analysis - Agricultural _____________________________________________________________ 28 VALUATION ___________________________________________________________________________ 32 Valuation Methods _____________________________________________________________________ 32 Sales Approach _______________________________________________________________________ 33 CERTIFICATION ASSUMPTIONS & LIMITING CONDITIONS ADDENDA Engagement Letter Parcel Appraisals Comparable Sale Data Sheets Valuation Glossary Qualifications of Appraiser Qualifications of Colliers International Valuation & Advisory Services EXECUTIVE SUMMARY TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco, WA State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco SITE INFORMATION Land Area Acres Square Feet Usable 999.69 43,546,496 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 999.69 43,546,496 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low and Medium Density Residential and Commercial E/S North Rd 68 N/S Powerline Rd Land - Right-of-Way HIGHEST & BEST USE As Vacant As Improved EXPOSURE TIME & MARKETING PERIOD Exposure Time Six to Nine Months Marketing Period Six to Nine Months N/A Develop A Mixed Density Residential Project With One Parcel An Industrial Use EXECUTIVE SUMMARY EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 2 Na m e Pa r c e l N o . La n d U s e / P l a n n i n g Ac r e s De v e l o p m e n t a l St a t u s Ap p r a i s a l As I s Va l u e Pe r A c r e V a l u e Ap p r a i s a l w/ L I D Pe r A c r e V a l u e Ap p r a i s a l Sp e c i a l Be n e f i t V a l u e SIN G H ( E T U X ) , J A S B I R 11 5 1 3 0 0 4 6 Lo w D e n s i t y R e s i d e n t i a l 10 . 1 7 $6 0 0 , 0 0 0 $ 5 0 , 0 0 0 T o $ 6 0 , 0 0 0 $9 0 0 , 0 0 0 $8 0 , 0 0 0 t o $ 9 0 , 0 0 0 $3 0 0 , 0 0 0 CO L E , S H A R O N K 11 5 1 3 0 0 5 5 Lo w D e n s i t y R e s i d e n t i a l 10 . 1 7 $6 5 0 , 0 0 0 $ 5 5 , 0 0 0 t o $ 6 5 , 0 0 0 $9 5 0 , 0 0 0 $8 5 , 0 0 0 t o $ 9 5 , 0 0 0 $3 0 0 , 0 0 0 CO L U M B I A W A T E R S F A R M L L C 11 5 0 1 0 0 3 2 Lo w D e n s i t y R e s i d e n t i a l Me d i u m D e n s i t y R e s i d e n t i a l Co m m e r c i a l 22 3 . 7 4 $4 , 6 3 0 , 0 0 0 $ 2 0 , 0 0 0 t o $ 2 5 , 0 0 0 $9 , 2 7 0 , 0 0 0 $3 5 , 0 0 0 t o $ 4 0 , 0 0 0 $4 , 6 4 0 , 0 0 0 DA R I G O L D , I N C 12 4 6 8 0 0 4 4 In d u s t r i a l 13 7 . 2 9 Ne a r e n d o f Co n s t r u c t i o n $8 , 2 4 0 , 0 0 0 $ 5 0 , 0 0 0 t o $ 6 0 , 0 0 0 $1 2 , 3 6 0 , 0 0 0 $8 0 , 0 0 0 t o $ 9 0 , 0 0 0 $4 , 1 2 0 , 0 0 0 FA R M 2 0 0 5 L L C 11 4 2 5 0 0 1 8 Lo w D e n s i t y R e s i d e n t i a l 13 3 . 0 8 Pr e l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d , Gr a d i n g P l a n S u b m i t t e d $7 , 7 5 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 6 5 , 0 0 0 $1 0 , 9 7 0 , 0 0 0 $8 0 , 0 0 0 t o $ 8 5 , 0 0 0 $3 , 2 2 0 , 0 0 0 Bi g S k y D e v e l o p e r s 11 4 3 3 0 0 5 1 Lo w D e n s i t y R e s i d e n t i a l 40 . 3 1 SE P A S u b m i t t e d $2 , 8 2 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $4 , 0 3 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 , 2 1 0 , 0 0 0 Bi g S k y D e v e l o p e r s 11 4 3 3 0 0 5 2 Me d i u m D e n s i t y R e s i d e n t i a l 29 . 7 6 SE P A S u b m i t t e d $2 , 0 8 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $2 , 9 8 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $9 0 0 , 0 0 0 Bi g S k y D e v e l o p e r s 11 4 3 3 0 0 5 3 Me d i u m D e n s i t y R e s i d e n t i a l 6. 0 3 SE P A S u b m i t t e d $6 0 0 , 0 0 0 $ 8 0 , 0 0 0 t o $ 1 0 0 , 0 0 0 $8 4 0 , 0 0 0 $1 2 0 , 0 0 0 t o $1 4 0 , 0 0 0 $2 4 0 , 0 0 0 Bi g S k y D e v e l o p e r s 11 4 3 3 0 0 5 4 Me d i u m D e n s i t y R e s i d e n t i a l 6. 1 9 SE P A S u b m i t t e d $6 2 0 , 0 0 0 $ 8 0 , 0 0 0 t o $ 1 0 0 , 0 0 0 $8 7 0 , 0 0 0 $1 2 0 , 0 0 0 t o $1 4 0 , 0 0 0 $2 5 0 , 0 0 0 J- 1 4 , L L C 11 4 3 3 0 0 3 1 Lo w D e n s i t y R e s i d e n t i a l 15 8 . 1 5 $3 , 9 5 0 , 0 0 0 $ 2 0 , 0 0 0 t o $ 2 5 , 0 0 0 $7 , 1 2 0 , 0 0 0 $4 0 , 0 0 0 t o $ 4 5 , 0 0 0 $3 , 1 7 0 , 0 0 0 ST R I Z H A K ' S H A V E N R A N C H L L C 11 4 3 3 0 0 4 1 Lo w D e n s i t y R e s i d e n t i a l 41 . 2 2 Pr e l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d $2 , 8 9 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $4 , 1 2 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 , 2 3 0 , 0 0 0 Pr o M a d e C o n s t r u c t i o n 11 4 3 3 0 0 4 2 Lo w D e n s i t y R e s i d e n t i a l 40 . 8 9 Pr e l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d $2 , 8 6 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $4 , 0 9 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 , 2 3 0 , 0 0 0 G S C a t t l e R A N C H , L L C 11 4 3 3 0 0 4 3 Lo w D e n s i t y R e s i d e n t i a l Me d i u m D e n s i t y R e s i d e n t i a l 40 . 6 5 Pr e l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d $2 , 8 5 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $4 , 0 8 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 , 2 3 0 , 0 0 0 PA S C O S C H O O L D I S T R I C T N O . 1 11 4 3 3 0 0 5 9 Pu b l i c Q u a s i - P u b l i c 14 . 3 2 Ne a r e n d o f Co n s t r u c t i o n PA S C O S C H O O L D I S T R I C T N O . 1 11 4 3 3 0 0 6 0 Pu b l i c Q u a s i - P u b l i c 60 . 2 6 Ne a r e n d o f Co n s t r u c t i o n PU D # 1 ( F R A N K L I N C O U N T Y ) 12 4 6 8 0 0 3 8 In d u s t r i a l 6. 7 0 Po w e r S u b s t a t i o n $5 0 0 , 0 0 0 $ 7 0 , 0 0 0 t o $ 7 5 , 0 0 0 $6 4 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 4 0 , 0 0 0 SG L A N D M A N A G E M E N T L L C 11 4 3 3 0 0 4 4 Lo w D e n s i t y R e s i d e n t i a l Me d i u m D e n s i t y R e s i d e n t i a l 40 . 7 6 Pr e l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d $3 , 0 7 0 , 0 0 0 $ 6 5 , 0 0 0 t o $ 7 5 , 0 0 0 $4 , 2 9 0 , 0 0 0 $1 0 0 , 0 0 0 t o $1 0 5 , 0 0 0 $1 , 2 2 0 , 0 0 0 To t a l s 99 9 . 6 9 $4 8 , 5 8 0 , 0 0 0 $7 3 , 4 7 0 , 0 0 0 $2 4 , 8 9 0 , 0 0 0 $4 , 4 7 0 , 0 0 0 $ 5 0 , 0 0 0 t o $ 6 0 , 0 0 0 $5 , 9 6 0 , 0 0 0 $7 5 , 0 0 0 t o $ 8 0 , 0 0 0 $1 , 4 9 0 , 0 0 0 PROPERTY & ASSIGNMENT OVERVIEW TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 3 AERIAL PHOTOGRAPH Utility Alignment Preliminary Development Layout PROPERTY & ASSIGNMENT OVERVIEW EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 4 PROPERTY IDENTIFICATION The subject is the East UGA LID with proposed improvements includes the new design and construction of approximately 18,000 linear feet of trunk sewer piping as depicted in the map on the previous page that shows the preliminary sewer alignment. It is our understanding that there are eight een (18) parcels for the proposed NW Sewer Area Local Improvement District (LID) Sewer Extension Project. The subject area is newly annexed portions of the City on the northcentral and northeast areas of the UGA. The subje ct is a 999-acre site at E/S North Rd 68 N/S Powerline Rd in Pasco, WA, Washington with low and medium density residential zoning, with limited commercial zoning, currently being used for agricultural. SCOPE OF WORK The scope of work for this appraisal assignment is outlined below: • The appraiser analyzed the regional and local area economic profiles including employment, population, household income, and real estate trends. • The appraiser confirmed and analyzed legal and physical features of the subject, and how they impact the functionality and overall competitive position of the property. • The appraiser completed a land supply/demand market analysis of the Tri-County Market and Pasco sub- market. Conclusions were drawn regarding the subject property’s competitive position given its physical and locational characteristics, the prevailing economic conditions and external influences. • The appraiser conducted Highest and Best Use analysis and conclusions were drawn for the highest and best use of the subject property As-Vacant and As-Improved. • The appraiser confirmed and analyzed financial features of the subject property. This information, as well as trends established by confirmed market indicators, was used to forecast performance of the subject property. • Selection of the valuation methods was based on the identifications required in USPAP relating to the intended use, intended users, definition and date of value, relevant property characteristics and assignment PROPERTY & ASSIGNMENT OVERVIEW EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 5 conditions. This appraisal developed the Sales Comparison Approach to value, which were adjusted and reconciled as appropriate. • Reporting of this appraisal is in an Appraisal Report format as required in USPAP Standard 2. The appraiser’s analysis and conclusions are fully described within this document. • I understand the Competency Rule of USPAP and the author of this report meets the standards. • No one provided significant real property appraisal assistance to appraiser signing this certification. SOURCES OF INFORMATION The following sources were contacted to obtain relevant information: SUBJECT PROPERTY INSPECTION The following table illustrates the Colliers International professionals involved with this appraisal report and their status related to the property inspection. CLIENT IDENTIFICATION The client of this specific assignment is City of Pasco. PURPOSE The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. INTENDED USE The intended use of this appraisal is to assist the client in making internal business decisions related to this asset. INTENDED USERS City of Pasco is the only intended user of this report. Use of this report by third parties and other unintended users is not permitted. This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone. SOURCES OF INFORMATION ITEM SOURCE Tax Information Franklin County Tax Assessor Zoning Information City of Pasco, WA Zoning Code Site Size Information Franklin County Tax Assessor Building Size Information Franklin County Tax Assessor New Construction City of Pasco, WA / Franklin County Flood Map InterFlood Demographics Pitney Bowes/Gadberry Group - GroundView® Comparable Information See Comparable Datasheets for details Legal Description Grant Deed from RealQuest Other Property Data Franklin County Property Records SUBJECT PROPERTY INSPECTION APPRAISER INSPECTED EXTENT DATE OF INSPECTION Evan Ranes, MAI, ASA, R/W-AC Yes Site Only October 16, 2024 PROPERTY & ASSIGNMENT OVERVIEW EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 6 ASSIGNMENT DATES PERSONAL INTANGIBLE PROPERTY No personal property or intangible items are included in this valuation. DEFINITIONS OF VALUE Given the scope and intended use of this assignment, the definition of Market Value is applicable. The definition of Market Value, along with all other applicable definitions for this assignment, is located in the Valuation Glossary section of the Addenda (see Interagency Guidelines definition). PROPERTY RIGHTS APPRAISED The property rights appraised constitute the fee simple interest. VALUE SCENARIOS The valuation scenarios developed in this appraisal report include the As-Is Market Value of the subject property’s fee simple interest. DEFINITION OF LOCAL IMPROVEMENT DISTRICT An LID is a defined geographical area with a specific public improvement which provides a special benefit to the real property within its boundaries (and is different from the value provided to the entire community). The increase in market value of each ownership provides for a portion of the cost of improvements to be paid by the owners of the benefited property over a period of time, usually 10 to 20 years. DEFINITION & DISCUSSION OF SPECIAL BENEFIT Special benefit is defined as: “The difference in the fair market value of the property without the improvement and the fair market value of the property with the improvement (commonly called “before and after, more properly called ‘without and with’” (Local Road Improvement Districts Manual for Washington State. Sixth Edition. 2009.) A special benefit is defined as a specific, measurable increase in value of certain real property in excess of enhancement to the general area (and benefitting the public at large) due to a public improvement project. It is measured as the difference, accruing by reason of the LID project, between the market value of each parcel studied, without the LID project, and market value of the same parcel with the LID project completed and as of the same date. For this analysis, the date of valuation is May 29, 2020, the date of inspection. Enabling legislation providing authority to levy assessments by an LID is statutory in Washington State. All assessments must meet two criteria: (1) the amount of an assessment on a particular parcel may not materially exceed the special benefit to that parcel and (2) all assessments within the district must be fair and in rough proportion to all other assessments. REPORT CRITERIA The special benefit study uses mass appraisal techniques and is reported in a summary format including narrative and tabular presentation. This report is intended to comply with Standard 6 of the Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Foundation for a summary mass appraisal report. As such, it includes limited discussions of the data, reasoning and analyses utilized in the valuation process; supporting documentation is retained in the appraisers’ files. Date of Report February 7, 2025 Date of Inspection October 16, 2024 Valuation Date - As-Is October 16, 2024 PROPERTY & ASSIGNMENT OVERVIEW EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 7 The depth of discussion is specific to the needs of the client, the City of Pasco, and for the intended use stated herein. The report conforms to the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which includes USPAP, as well as additional reporting requirements discussed. The aggregate conclusions presented are subject to specific assumptions and limiting conditions. The first estimate is of market value without the project and the second is with the project assumed completed as of the same date. The increase in value, if any, is the special benefit accruing to that parcel due to the project. Special benefit accrues to affected properties due to the project by enhancing the neighborhood's access, traffic flow, aesthetic appeal and character and creates a more desirable location for residential and commercial property owners. Special benefit to the property is reflected in the underlying land value. Recent sales of comparable commercial and residential land were researched. Supply and demand information, as well as vacancy rates and absorption costs pertaining to the local commercial and residential markets, were considered. Developers of some projects proposed (or underway) in the subject vicinity were interviewed to obtain (when possible) perspective on the LID project and its influence on property values. WASHINGTON STATE DEFINITION OF MARKET VALUE "Fair Market Value" is the amount in cash which a well-informed buyer, willing but not obliged to buy the property, would pay, and which a well-informed seller, willing but not obligated to sell it would accept, taking into consideration all uses to which the property is adapted and might in reason be applied (Washington Pattern Instruction 150.08). Based on Washington State law, the fee sim p le interest in each individual parcel is estimated herein. HIGHEST AND BEST USE Highest and best use is the most fundamental premise upon which estimations of market value are based. According to "The Appraisal of Real Estate" (Fourteen Edition, 2013), highest and best use is defined as: "The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Alternatively, the probable use of land or improved property - specific with respect to the user and timing of the use - that is adequately supported and results in the highest present value." The primary reason for estimating the highest and best use of land as vacant is to estimate land value. If there is an existing improvement on the site, the land is viewed as though vacant. A conclusion is then reached as to what use creates the highest residual to the land or the highest land value. It is then possible to identify comparable sales of vacant land. Highest and best use of property as improved considers the existing improvements and estimates whether they represent the maximally productive use or create the highest market value. If not, a decision must be made as to whether the improvements should be expanded, renovated, converted or razed to make way for that use which produces the highest return to an investor. The analysis presented herein is based on the under lying raw land and any existing improvements are not part of this valuation. Market sale prices often indicate that an increase in the value of real property within the LID boundary occurs as a result of a proposed project. This anticipatory increment in value is called project enhancement and, as in eminent domain procedures, is not included in the estimate of value without, or before, the LID project. The market value estimate with the LID project assumed completed within a reasonable time recognizes changes in locational characteristics, intensity of use and value resulting from the project. PROPERTY & ASSIGNMENT OVERVIEW EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 8 ANTICIPATORY USE AND MARKET VALUE In some instances, highest and best use of a parcel of land or an improved property may be anticipatory investment. Anticipatory highest and best use of unimproved land would be to remain vacant until development is justified by market demand, which occurs frequently when real estate markets are oversupplied. For many parcels, however, achieving the highest and best use requires some change or improvement which may be provided by the LID project. Within this analysis, anticipatory use reflects the current market's anticipation of intensity of use as measured by buyers and sellers in the marketplace both without and with the LID project. Market value for an anticipatory use is not an estimate of projected future value but reflects the current market for real estate based on its highest and best use. Anticipatory use resulting in project enhancement is not recognized in the valuation of real estate under the "without LID" premise. REGIONAL MAP EXECUTIVE SUMMARY LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 9 REGIONAL MAP COMPARABLE KEY REGIONAL ANALYSIS EXECUTIVE SUMMARY LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 10 REGIONAL ANALYSIS In the southeastern portion of Washington State at the confluence of the Columbia, Snake, and Yakima Rivers is an area commonly known as the “Tri- Cities”. The Tri-Cities are comprised of the cities of Richland, Kennewick, both in Benton County, and Pasco in Franklin County across the Columbia River. The two counties, Benton and Franklin, also make up the Kennewick -Pasco- Richland MSA. The subject is located in the city of Pasco, in Franklin County. DEMOGRAPHIC ANALYSIS The following is a demographic study of the region sourced by Pitney Bowes/Gadberry Group - GroundView®, an on-line resource center that provides information used to analyze and compare the past, present, and future trends of geographical areas. Please note it is likely the forecast projections incorporate the impacts of Covid. Population The following is a demographic study of the region sourced by Pitney Bowes/Gadberry Group - GroundView®, an on-line resource center that provides information used to analyze and compare the past, present, and future trends of geographical areas. Population According to Pitney Bowes/Gadberry Group - GroundView®, a Geographic Information System (GIS) Company, the Kennewick-Richland metropolitan area had a 2023 total population of 314,926 and experienced an annual growth rate of 1.1%, which was higher than the Washington annual growth rate of 0.4%. The metropolitan area accounted for 4.0% of the total Washington population (7,816,676). Within the metropolitan area the population density was 104 people per square mile compared to the higher Washington population density of 115 people per square mile and the lower United States population density of 93 people per square mile. mile. The 2023 median age for the metropolitan area was 34.52, which was 12.45% younger than the United States median age of 38.82 for 2023. The median age in the metropolitan area is anticipated to grow by 0.56% annually, increasing the median age to 35.5 by 2028. REGIONAL AREA DEMOGRAPHICS YEAR US WA CBSA YEAR US WA CBSA POPULATION NUMBER OF HOUSEHOLDS 2020 Total Population 331,511,481 7,724,031 304,556 2023 129,837,191 3,044,531 108,146 2023 Total Population 334,487,687 7,816,676 314,926 2028 134,514,493 3,183,732 111,292 2028 Total Population 342,734,214 8,142,724 335,235 CAGR 0.7%0.9%0.6% 2020 - 2023 CAGR 0.3%0.4%1.1%AVERAGE HOUSEHOLD SIZE 2023 - 2028 CAGR 0.5%0.8%1.3%2023 2.51 2.52 2.87 POPULATION DENSITY 2028 2.49 2.51 2.98 2023 Per Square Mile 93 115 104 CAGR (0.21%)(0.06%)0.69% 2028 Per Square Mile 95 120 111 HOUSING UNITS MEDIAN AGE Owner Occupied 81,813,679 1,883,807 73,628 2023 38.82 38.16 34.52 Renter Occupied 48,023,512 1,160,724 34,518 2028 39.66 38.95 35.50 AVERAGE HOUSEHOLD INCOME CAGR 0.43%0.41%0.56%2023 $106,372 $122,114 $111,800 MEDIAN HOME VALUE 2028 $129,361 $146,350 $136,315 2023 $244,554 $396,052 $276,551 CAGR 4.0%3.7%4.0% PER CAPITA INCOME MEDIAN HOUSEHOLD INCOME 2023 $42,322 $48,514 $38,888 2023 $74,269 $88,635 $81,861 2028 $52,008 $58,320 $45,803 2028 $91,864 $107,640 $99,586 CAGR 4.2%3.8%3.3%CAGR 4.3%4.0%4.0% Source: Pitney Bowes/Gadberry Group - GroundView® REGIONAL ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 11 Education The Kennewick-Richland, WA MSA is home to Washington State University Tri-Cities. The campus in Richland has an annual enrollment of approximately 1,900 students, and an endowment of $650 million. Household Trends The 2023 number of households in the metropolitan area was 108,146. The number of households in the metropolitan area is projected to grow by 0.6% annually, increasing the number of households to 111,292 by 2028. The 2023 average household size for the metropolitan area was 2.87, which was 14.38% larger than the United States average household size of 2.51 for 2023. The average household size in the metropolitan area is anticipated to grow by 0.69% annually, raising the average household size to 2.98 by 2028. The Kennewick- Richland metropolitan area had 31.92% renter occupied units, compared to the higher 38.12% in Washington and the higher 36.99% in the United States. Income Trends The 2023 median household income for the metropolitan area was $81,861, which was 10.2% higher than the United States median household income of $74,269. The median household income for the metropolitan area is projected to grow by 4.0% annually, increasing the median household income to $99,586 by 2028. As is often the case when the median household income levels are higher than the national average, the cost of living index is also higher. According to the American Chamber of Commerce Researchers Association (ACCRA) Cost of Living Index, the Yakima, WA MSA’s cost of living is 97.9 compared to the national average score of 100. The ACCRA Cost of Living Index compares groceries, housing, utilities, transportation, health care and miscellaneous goods and services for over 300 urban areas. Consumer Spending Comparison Apparel, 7.48% Computers, 2.67% Education, 5.10% Entertainment, 15.37% Food at Home, 22.11% Eating Out, 12.82% Health Care, 22.57% Hsld Furnishings, 11.51% Auto Maint., 0.37% Consumer Spending Kennewick-Richland $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Consumer Spending Comparison Average Household United States Washington Kennewick-Richland REGIONAL ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 12 EMPLOYMENT Total employment has increased annually over the past decade in the state of Washington by 1.8% and increased annually by 2.1% in the area. From 2022 to 2023 unemployment decreased in Washington by 0.0% and decreased by 0.2% in the area. In the state of Washington unemployment has increased over the previous month by 0.3% and increased by 0.6% in the area. The preceding chart depicts unemployment trends in the region, Washington, and the U.S. Overall levels of unemployment in the region experienced a major increase throughout the past three months. By the end of July 2024, unemployment in the region was 0.1% higher than Washington’s and 0.6% higher than the national average. EMPLOYMENT & UNEMPLOYMENT STATISTICS 2014 - 2023 TOTAL EMPLOYMENT UNEMPLOYMENT RATE Washington Year Total % ∆ Yr Ago Total % ∆ Yr Ago 2014 3,287,904 1.8%118,121 0.9%6.2%5.9%7.5% 2015 3,361,249 2.2%121,884 3.2%5.3%5.4%6.7% 2016 3,459,527 2.9%125,456 2.9%4.9%5.2%6.5% 2017 3,554,754 2.8%130,439 4.0%4.4%4.6%5.7% 2018 3,645,992 2.6%133,607 2.4%3.9%4.4%5.5% 2019 3,794,004 4.1%139,990 4.8%3.7%4.2%5.6% 2020 3,560,168 (6.2%)133,250 (4.8%)8.1%8.5%8.4% 2021 3,667,123 3.0%137,475 3.2%5.3%5.2%5.9% 2022 3,806,848 3.8%141,981 3.3%3.6%4.1%5.1% 2023 3,860,883 1.4%142,558 0.4%3.6%4.1%4.9% CAGR 1.8%-2.1%---- Source: U.S. Bureau of Labor Statistics *Unadjusted Non-Seasonal Rate United States* Kennewick-Richland, WA Metropolitan Statistical Area Washington Kennewick- Richland, WA Metropolitan Statistical Area 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% UNEMPLOYMENT RATES Aug 2023 Sep 2023 Oct 2023 Nov 2023 Dec 2023 Jan 2024 Feb 2024 Mar 2024 Apr 2024 May 2024 Jun 2024 Jul 2024 USA 3.9%3.6%3.6%3.5%3.5%4.1%4.2%3.9%3.5%3.7%4.3%4.5% Washington 4.3%4.0%4.2%4.3%4.6%5.4%5.6%5.1%4.4%4.6%4.7%5.0% Area 4.9%4.2%4.6%5.0%5.9%6.4%7.0%6.0%4.9%4.8%4.5%5.1% REGIONAL ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 13 The preceding chart depicts the top employers in Franklin County. Principal employers are spread throughout diverse sectors including wholesale/retail trade, healthcare/social assistance, and manufacturing. Pasco Processing LLC. is the largest employer. Based in Pasco, the company specializes in the processing of potatoes and other vegetables. Lourdes Health is the second largest employer. The company provides health care services for the communities of Pasco, Kennewick, and Richland. Lamb Weston Inc., a ma nufacturer of frozen potato, appetizer, and vegetable products, is the third largest employer. Lamb Weston operates a plant in Pasco. TRI CITIES AIRPORT The Tri Cities Airport, located in Pasco, underwent a major renovation and expansion beginning in 2014. The new main concourse opened in February 2017. The $36 million project doubled the size of the airport terminal, in anticipation of continued long-term growth. Views of the new terminal are shown below. The airport is owned by the Port of Pasco. The expansion of the airport has resulted in additional flights being added. In 2019, enplanements at the airport were up about 11% over 2018. The data for 2020 reflect a large decline due to Covid. Travel rebounded in 2021, but enplanements were below pre-Covid years. The most recent year’s data is from 2022 and shows a year- over-year 12.5% increase in enplaned passengers. I assume that this upward trend has continued, commensurate with air travel nationwide. The Tri-Cities Airport is part of a thriving port system. The Columbia River facilitates trade by highway, rail, and barge. Burlington Northern Santa Fe railroad offers service to Tacoma and Seattle. TOP EMPLOYERS EMPLOYER NAME EMPLOYEES INDUSTRY Pasco Processing LLC.700 Wholesale/Retail Trade Lourdes Health 600 Healthcare/Social Assistance Lamb Weston Inc.500 Manufacturing Corrections Department 400 Public Administration Rotschy Inc.350 Construction Pasco High School 300 Education Sagemoor Farms 300 Agriculture/Forestry Community Health Center La Clinic 270 Healthcare/Social Assistance Columbia Basin College 250 Education Resers Fine Foods 230 Manufacturing Source: https://www.franklinmo.org TRI-CITIES AIRPORT (PSC) YEAR ENPLANED PASSENGERS % CHG 2012 329,833 - 2013 327,419 (0.7%) 2014 329,087 0.5% 2015 348,988 6.0% 2016 374,301 7.3% 2017 376,044 0.5% 2018 395,348 5.1% 2019 438,015 10.8% 2020 190,322 (56.5%) 2021 347,438 82.6% 2022 390,762 12.5% Source: U.S. Department of Transportation REGIONAL ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 14 HANFORD NUCLEAR RESERVATION The United States Department of Energy’s Hanford Site is located on 586-square-miles outside of the Tri-City area in the desert of southeastern Washington State where the community of Hanford once stood. The area is home to nine former nuclear reactors and their associated processing facilities that were built starting in 1943. The reactors were used to produce plutonium, a man-made, radioactive, chemical element which was needed for atomic weapons associated with America’s defense program during World War II and throughout the Cold War. In 1987 the weapons production reactors were decommissioned, but the manufacturing process left behind 53 million U.S. gallons (204,000 m³) of high-level radioactive waste that remains at the site. This represents two- thirds of the nation's high-level radioactive waste by volume and today, Hanford is the most contaminated nuclear site in the United States and is the focus of the nation's largest environmental cleanup. In response to this in 1989, the “Tri-Party Agreement” (DOE, EPA, and Washington State Department of Ecology) was executed, and it began the movement towards environmental restoration at the Hanford site and provided a stimulus to the economy with environmental restoration and waste management/clean-up technology. This agreement was updated in 1993 after a lengthy public process. A solution to the cleanup effort was created by an entrepreneur and former Hanford Battelle employee, Jeff Surma. He created the technology for a Plasma-Enhanced Melter that burns various waste products including household garbage, hazardous chemicals, and nuclear waste in a 60,000-pound stainless steel cooker. The melter heats the waste to 10,000 degrees to create environmentally safe and usable byproducts, including iron, glass, and clean-burning hydrogen gas. The process is known as vitrification, and its glass byproduct can be used to tile sidewalks and streets or ground into sand to sandblast ship hulls and building exteriors. In the case of the Hanford wastes, the materials would be turned into glass rods and stored elsewhere for thousands of years. The process is also commonly referred to as “glassification”. In December 12, 2000, Bechtel National, Inc. was awarded the contract to move forward with construction of the Hanford Tank Waste Treatment and Immobilization Plant (WTP), also known as the Vit Plant. The cost estimate at the time was $5.8-billion. After years of delays and design changes, the project cost is now estimated at about $15 billion. Combined with the cost to actually operate the plant and clean up the waste it is now estimated that the cost to clean up the Hanford site fully will be $50 billion and will not be completed until at least 2035. The “vit plant” is really a 65-acre complex which includes three major nuclear facilities and a laboratory for analyzing, sorting and treating waste, plus 21 smaller support buildings and onsite power and water treatment plants. Once completed, the largest building will stand 12 stories tall with the length and width of two football fields. About 1,500 construction workers work at the site and another 1,600 people work on the project in offices in nearby Richland. The goal of the vit plant is to eliminate the environmental threat posed by 56 million gallons of radioactive and chemical waste currently stored at the Hanford Site. While most of the current activity at the site is related to the cleanup project, Hanford also hosts a commercial nuclear power plant (the Columbia Generation Station) and various centers for scientific research and development, such as the Pacific Northwest National Laboratory and the LIGO Hanford Observatory. Decades of federal investment created a community of highly skilled scientists and engineers. As a result of this concentration of specialized skills, the Hanford site was able to diversify its operations to include scientific research, test facilities, and commercial nuclear power production. Though there are less than 500 federal government employees who staff the three Department of Energy offices at Hanford, there are thousands of other workers at the site who are employed by contractors or subcontractors REGIONAL ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 15 of the three offices. Overall, Hanford’s $2.2 billion budget is more than one -third of the $5.3 billion total budget for nuclear waste cleanup nationally. In closing, while delays have pushed back the timeline for completion of the “Vit plant” and remediation of the overall site, the DOE is legally obligated to clean up the Hanford site. The vitrification plant and related Hanford contracts are clearly important to local economy, given the dollars that funnel through the Tri Cities and the number of associated jobs. The existence of Hanford has also made the area a hub for nuclear research, thanks in part to the large presence the Battelle National Laboratory has at its campus in north Richland. This nuclear research has attracted a number of scientists to the area for the associated high wage jobs. SUMMARY The Tri-Cities regional area has experienced a strong recovery from Covid. Although the region's employment has been historically dependent on agriculture, it continues to transition towards industrial, commercial and residential development, making it an increasingly economically diversified region. Overall, the region’s outlook is favorable. LOCAL AREA ANALYSIS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 16 LOCAL AREA ANALYSIS In this section of the report, I provide details about the local area and describe the influences that bear on the real estate market as well as the subject property. Below are insights into the local area based on fieldwork, interviews, demographic data and experience working in this market. LOCAL AREA PROFILE The subject property is located in Pasco, WA, Washington, within Franklin County. Pasco is one of the three cities (the others being Kennewick and Richland) that make up Washington state’s Tri-Cities region, a mid-sized metropolitan area of approximately 303,622 people. As Pasco is located in Southeastern Washington, the city lies in the rain shadow of the Cascade Range. The Columbia River borders the south side of the city, separating it from the neighboring cities of Richland and Kennewick. The property is situated adjacent to the northern boundary of the City of Pasco in unincorporated Franklin County. This area is adjacent the Tri-Cities Airport and heavily influenced by for it specifically and the city in general. DEMOGRAPHIC PROFILE Below is a demographic study of the area, sourced by Esri, an on-line resource center that provides information used to analyze and compare the past, present, and future trends of properties and geographical areas. Please note that our demographics provider sets forth income projections in constant dollars which, by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation. A simple comparison of projections for a similar market area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodolo gy(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures. LOCAL AREA ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 17 Transportation Routes Major traffic arteries are shown in the chart below: Economic Factors Pasco is home to the Tri-Cities Airport, a regional commercial and private airport served by several airlines with direct flights to 10 US cities. Due to the agricultural region in which it sits, several large food processing companies have a presence in the city of Pasco which includes Lamb Weston (the subject), Reser’s Fine Foods, and Twin City Foods. In recent years, the region has become a major player in Washington state’s booming wine industry. LOCAL AREA DEMOGRAPHICS DESCRIPTION 1 MILE 3 MILES 5 MILES DESCRIPTION 1 MILE 3 MILES 5 MILES POPULATION AVERAGE HOUSEHOLD INCOME 2010 Population 3,564 25,754 65,390 2024 $115,853 $140,571 $121,551 2020 Population 5,743 39,296 82,342 2029 $141,907 $166,888 $143,331 2024 Population 6,099 42,309 87,819 Change 2024-2029 22.49%18.72%17.92% 2029 Population 6,386 44,695 92,290 MEDIAN HOUSEHOLD INCOME Change 2010-2020 61.14%52.58%25.92%2024 $87,300 $104,701 $89,179 Change 2020-2024 6.20%7.67%6.65%2029 $104,540 $122,042 $104,126 Change 2024-2029 4.71%5.64%5.09%Change 2024-2029 19.75%16.56%16.76% NUMBER OF HOUSEHOLDS PER CAPITA INCOME 2010 Households 1,135 8,504 22,660 2024 $36,828 $45,249 $41,323 2020 Households 1,804 12,473 27,797 2029 $45,610 $54,296 $49,167 2024 Households 1,929 13,614 29,877 Change 2024-2029 23.85%19.99%18.98% 2029 Households 2,042 14,539 31,682 HOUSEHOLDS BY INCOME (2022) Change 2010-2020 58.94%46.67%22.67%Less than $15,000 3.95%3.33%5.27% Change 2020-2024 6.93%9.15%7.48%$15,000 - $24,999 0.94%3.80%6.20% Change 2024-2029 5.86%6.79%6.04%$25,000 - $34,999 6.50%4.14%5.35% HOUSING UNITS $35,000 - $49,999 9.89%9.12%9.42% Owner Occupied 1,343 11,002 20,768 $50,000 - $74,999 27.96%17.36%17.89% Renter Occupied 586 2,612 9,109 $75,000 - $99,999 12.90%13.71%15.29% HOUSING UNITS BY YEAR BUILT $100,000 - $149,999 26.79%25.48%20.31% Built 2020 or Later 24 197 324 $150,000 - $199,999 2.95%10.15%9.91% Built 2010 to 2019 481 3,432 4,577 $200,000 or More 8.12%12.91%10.37% Built 2000 to 2009 945 5,592 7,070 HOUSING BY UNITS IN STRUCTURE Built 1990 to 1999 258 1,686 3,165 1, Detached 1,580 10,315 20,364 Built 1980 to 1989 1 266 1,056 1, Attached 12 382 1,160 Built 1970 to 1979 84 588 4,744 2 32 96 619 Built 1960 to 1969 7 152 2,670 3 or 4 62 309 937 Built 1950 to 1959 24 231 2,546 5 to 9 46 229 1,066 Built 1940 to 1949 1 101 2,043 10 to 19 35 365 1,135 Built 1939 or Earlier 0 109 563 20 to 49 0 204 973 HOME VALUES 50 or More 9 154 1,437 Average $362,407 $426,611 $431,965 Mobile Home 50 277 1,007 Median $333,251 $387,317 $392,365 Boat, RV, Van, etc.0 23 60 Source: Esri ArcGIS® MAJOR ROADWAYS & THOROUGHFARES HIGHWAY DIRECTION FUNCTION DISTANCE FROM SUBJECT U.S. 395 Tom Foley Mem. Hwy.north-south U.S. 12 White Pass Scenic Byway east-west SURFACE STREETS DIRECTION FUNCTION DISTANCE FROM SUBJECT N. 4th Ave./N. Glade Ave.north-south W. Argent Rd.east-west N. Rd. 68 north-south N. Oregon Ave.north-south Primary Arterial This is within 2 miles of the subject property. The subject property fronts this street. Primary Arterial This is within 4 miles of the subject property. Primary Arterial This is within 3 miles of the subject property. This is within a mile of the subject property. Primary Arterial This is within 2 miles of the subject property. Local Highway Local Highway LOCAL AREA ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 18 According to an article by the Tri-City Herald dated August 5, 2024, Amazon Inc., Darigold Inc., and Local Bounti Inc., have all confirmed plans to collectively invest nearly $1 billion in new business facilities in Pasco. Amazon has constructed one of two warehouses near Sacajawea State Park and began operating in late July hiring 1,000-1,500 employees in the process. Local Bounti Inc., an ag-tech startup company headquartered in Montana, plans to make Pasco one the first outposts for its commercial greenh ouse business and is in the process of preparing their site for a 242,000 SF greenhouse. Darigold Inc., the Seattle -based dairy company, acquired a site in the port of Pasco to develop their $600 million dairy plant, as part of the subject, that will turn 8 million pounds of milk per day into butter and milk powder for infant formula and other uses. The project is on track to be billed as the largest private investment in Pasco history. Community Services Community services and facilities are readily available in the surrounding area. These include public services such as fire stations, hospitals, police stations, and schools (all ages). IMMEDIATE AREA PROFILE This section discusses uses and development trends in the immediate area that directly impact the performance and appeal of the subject property. Predominant Land Uses Significant development in the immediate area consists of industrial and agricultural uses along major arterials that are interspersed with single-family residential development removed from arterials. New Proposed Development Varney Lane (The Landing) – This is for the proposed development of a one-story multi-tenant retail building. The property will be comprised of a GBA totaling 9,305 SF on a 0.93-acre lot. The building will be located within the Tri-Cities Airport. There is currently no construction commencement date scheduled. 3210 N Rainier Ave – This is for the development of a one-story industrial building. The property will be comprised of a GBA totaling 11,369 SF on a 4.93-acre lot. Construction for the project commenced in April 2024 and its estimated completion date is October 2024. 3106 N Rainier Ave – This is for the development of a one-story industrial building with a GBA totaling 13, 421 SF. Construction for the project commenced in April 2024 and its estimated completion date is November 2024. 3002 N Rainier Ave – This is for the development of a one-story industrial building with a GBA totaling 13,568 SF. Construction for the project commenced in April 2024 and its estimated completion date was September 2024. SUMMARY The city of Pasco has shown tremendous growth in the last 20 years and there continues to be on-going industrial, commercial, and residential development. The general outlook for the subject’s market area is positive. Continued new industrial development is anticipated to serve the expanding population base. Over the long term this will be an area of long-term stability and viability for commercial real estate. This is a good location within Tri Cities. LOCAL AREA ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 19 PROPOSED IMPROVEMENTS We were provided with actual final, as-built costs for the LID improvements with a 4-Phase installation. The total for all four phases of construction is $14,718,547.78. The actual costs for each phase of construction were as follows. PHASE 1 $3,178,063 PHASE 2 $1,496,859 PHASE 3 $3,755,585 PHASE 4 $6,344,953 The final project cost information also includes indirect cost not allocated above. Below are the indirect costs as the final component of the LID assessments: LOCAL AREA ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 20 ZONING ANALYSIS The above map reference indicates the proposed location of the gray de-marked sewer infrastructure lines. The initial phases of sewer infrastructure construction will follow the construction timeline of the various parcels under construction as super pads. Many of the residential zoned parcels are in the pre -platting process and the industrial parcels have permitted projects that are already into the construction phase. The northwestern located parcels will be used and held as agricultural land until residential and/or commercial development, as applicable, is warranted by demand. According to the client, construction of the project has already been completed and therefore, we have relied upon as-built construction costs in the prior pages as our indication of the benefit cost without land value. We have analyzed zoning for each of the parcels impacted by the LID in our valuation section. We considered each parcel in terms of zoning and highest and best use relative to the valuation before the LID and after the LID. Higher prices have been paid for industrial land and medium density residential land. Also, the development timing weighs heavily on value with near term developable parcels having the higher range in value. LOCAL AREA ANALYSIS CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 21 MARKET ANALYSIS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 22 INTRODUCTION The market analysis section provides a comprehensive study of supply/demand conditions, examines transaction trends, and interprets ground level information conveyed by market participants. Based on these findings and an analysis of the subject property, c onclusions are drawn with regard to the subject’s competitive position within the marketplace. Below is a list of the various sections covered in the following Industrial Market Analysis: › Kennewick-Richland - WA Industrial Market › Inflation Impact / Macroeconomy Overview › Impact of Treasury Rate Changes › Broker / Market Participant Interviews KENNEWICK-RICHLAND - WA INDUSTRIAL MARKET The following is an analysis of supply/demand trends in the Kennewick-Richland - WA Industrial Market using information provided by CoStar, widely recognized as a credible source for tracking market statistics. The table below presents historical data for key market indicators. Over the past ten years the Kennewick-Richland - WA Industrial market fundamentals have been extremely strong. Market inventory significantly increased by 26.3% with significant positive absorption (28.4% change), decrease in the vacancy rate (-5.1% change) and considerable increase of the asking average rent (114.3% change). Over the past four quarters the Kennewick-Richland - WA industrial market has experienced an increase of supply. This may have been the cause of slight negative net absorption, increase of vacancy rates and decrease of asking rent in the marketplace. KENNEWICK-RICHLAND - WA HISTORICAL STATISTICS (LAST TEN YEARS) PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2014 9,643,942 SF 438,267 SF 413,925 SF 5.9%$4.67/SF 2015 10,360,561 SF 716,619 SF 798,291 SF 5.4%$4.70/SF 2016 10,439,776 SF 79,215 SF 259,393 SF 3.7%$4.55/SF 2017 10,623,644 SF 183,868 SF 165,646 SF 3.0%$5.03/SF 2018 10,818,144 SF 194,500 SF 294,343 SF 2.4%$5.77/SF 2019 11,167,237 SF 349,093 SF 91,432 SF 3.7%$5.91/SF 2020 11,417,964 SF 250,727 SF 232,319 SF 4.3%$5.93/SF 2021 11,512,310 SF 94,346 SF 344,165 SF 2.4%$6.98/SF 2022 11,347,271 SF 54,961 SF 28,143 SF 0.9%$5.64/SF 2023 11,520,331 SF 173,060 SF 109,299 SF 0.8%$10.01/SF CAGR 1.8%---7.9% *Supply numbers based on information which is amended/updated on an on-going basis by Costar. Source: Costar® KENNEWICK-RICHLAND - WA TRAILING FOUR QUARTER PERFORMANCE PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2023 Q3 11,479,831 SF 28,486 SF 35,091 SF 0.8%$10.61/SF 2023 Q4 11,520,331 SF 40,500 SF 18,080 SF 1.0%$11.41/SF 2024 Q1 11,587,491 SF 67,160 SF (96,082) SF 2.4%$9.65/SF 2024 Q2 11,592,491 SF 5,000 SF (27,649) SF 2.7%$10.33/SF Source: Costar® MARKET ANALYSIS – INDUSTRIAL LARGER PARCEL EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 23 Key supply/demand statistics for the most recent quarter, last year and historical averages are summarized below. Vacancy The Q2 2024 vacancy rate (2.7%) is higher than last year (0.8%) and slightly lower than the average vacancy over the past ten years (3.3%). The historic vacancy trend indicates stable long-term demand for industrial space in the Kennewick-Richland - WA market. The most recent vacancy trends demonstrate slightly superior market conditions in comparison to the historic trend and suggest continued stability moving forward. Supply The inventory grew by 0.0% during Q2 2024, whereas the growth rate was 1.5% last year. Over the past ten years the Kennewick-Richland - WA industrial market grew at a CAGR of 1.8%. The historic trend demonstrates a nominal rate that was generally supported. The most recent trends show slightly inferior market conditions in comparison to the historic trend in reaction to the current economic conditions. Absorption During Q2 2024 net absorption was -0.2% and net absorption was 0.9% over the last year. The Kennewick- Richland - WA industrial market has established an overall trend of stable absorption (2.4%) over the past ten years. The historic absorption trend indicates stable long-term demand for industrial space in the Kennewick- Richland - WA market. The most recent absorption trends demonstrate slightly inferior market conditions in comparison to the historic trend and suggest continued stability moving forward. Kennewick-Richland - WA Market Conclusion Based on the preceding analysis, the Kennewick-Richland - WA Industrial market has a stable construction growth rate and increasing rents. Overall, the Kennewick-Richland – WA Industrial market is poised for continued growth due to sustained, increased demand. INFLATION IMPACT / MACROECONOMY OVERVIEW Over the past two years, macroeconomic conditions have slowed commercial real estate activity and tightened debt markets. GDP growth has moderated. CPI trends indicate a continued but slower pace of inflation, reflecting the impact of tighter monetary policy. Inflation reached a high of 9.1% in June 2022 and declined to 3.0% in July 2024. Although above the goal of 2.0% targeted as normal for a healthy economy, the inflation break has paved the way for a shift in interest rates. With employment growth sl owing, the unemployment rate has increased to 4.3% in July 2024. Macroeconomic changes of this nature suggest a softening economy or the potential for recession. Bond markets are pricing at a level that suggests a federal funds rate cut may be imminent. Some analysts have predicted an emergency inter-meeting federal funds rate cut may occur prior to the scheduled KENNEWICK-RICHLAND - WA MARKET TREND ANALYSIS TRAILING FOUR QUARTERS TREND ANALYSIS Q2 2024 2023 Last 10 Total SF 11,592,491 11,520,331 10,885,118 Vacant SF 310,529 95,619 354,202 Market Vacancy 2.7%0.8%3.3% Construction Growth Rate 0.0%1.5%1.8% Absorption Rate (0.2%)0.9%2.4% Average Asking Rent/SF $10.33 $10.01 $5.92 Source: Costar® KENNEWICK-RICHLAND - WA INDUSTRIAL CONSTRUCTION ACTIVITY SUMMARY STATUS NO. OF PROJECTS SIZE (SF)% OF SUPPLY Under Construction 7 130,854 1.1% Source: Costar® MARKET ANALYSIS – INDUSTRIAL LARGER PARCEL EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 24 September meeting. Likewise, many economists believe the certainty of multiple rate cuts in 2024 has increased. The following charts summarize the current inflation rates in the United States. Federal Funds Effective Rate In the July 2024 meeting, the Federal Reserve announced that it would keep its benchmark interest rate unchanged at 5.25% to 5.5%. However, statements from the Chair suggested a September rate cut was being considered. The higher cost of capital weighed on investment decisions in the real estate market from midyear 2022 through early 2024. As rates have moderated back downward to prompt more transaction activity in the form of recapitalizations, refinancing, and outright sales transactions, investment activity is expected to increase. The market for commercial real estate is still responding to these changes and their impact is not yet fully understood. IMPACT OF TREASURY RATE CHANGES As of August 5, 2024, the 10-Year Treasury was at 3.768%. This shift marks a decrease from a high of 5% in the 4th Quarter of 2023 and a trend in the 4.25 to 4.5% range through most of 2024. The August 2024 rapid decline of the 10-year treasury reflect the lowest levels since June 2023. MARKET ANALYSIS – INDUSTRIAL LARGER PARCEL EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 25 The following table reflects changes in the US Treasury note over the past 30 days, illustrating the 50-basis point drop in the last week. While it remains unclear as to how the market will react overall, the expectation is that the drop will be a catalyst for transaction volume. Initial feedback from investors conveys that the lower 10-year treasury reflects the market’s anticipation of what the Federal Reserve will do relative to the Federal Funds Rate. Nonetheless, the 10-year Treasury is a benchmark for lending and has resulted in lower lending rates in the past week, which is anticipated to have an influence on buyer/seller actions. The outcome of those actions is likely to spur industrial development as financing for construction loans becomes more affordable. This, in turn, may free up the market by enabling owners to market their properties as they trade up or divest. BROKER / MARKET PARTICIPANT INTERVIEWS Interviews with brokers and other market participants were conducted to put previously discussed trends and data into context. Industrial Brokers Todd Sternfield, Broker, NAI Tri-Cities Commercial • The broker stated that the HBU would be for light industrial development due to an increased demand for 10-20K SF industrial buildings and the subject’s area is turning into a manufacturing and distribution hub. • If 2-10-acre sites at the subject are marketed for industrial development and are vacant and entitled, they could sell for $8-$12/SF. MARKET ANALYSIS – INDUSTRIAL LARGER PARCEL EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 26 Travis Davis, Broker, Coldwell Banker Tomlinson • The broker stated that the subject’s HBU for land is light industrial due to being near the airport and train tracks and the airport noise wouldn’t be an issue being industrial. If marketed for industrial development, as vacant and unentitled, 2-5 acre sites could sell for $6.50-$9.00/SF. • The broker stated that there has been no softening in industrial land values, in fact, he thinks the values have started to go up due to nearby developments from Amazon, building a warehouse, and Darigold who is developing a $600M dairy farm facility. Rob Ellsworth, Broker, SVN | Retter & Company • The broker stated that the subject’s HBU would be for light industrial development as it is near the train tracks but doesn’t have access to water and sewer and would need a septic tank and wells. He stated that the land as vacant and marketed for industrial development could sell for $2.00-$2.50/SF. If the land had water and sewer access, it could sell for somewhere in the $5.00/SF range. • The lot size that is in demand is 2-5 acres and the depth is 150-200 feet. • Industrial land sales volume has declined since 2022, but there has been no softening in values. Tucker Kellogg, Broker, Kellogg & Company • The broker stated that the typical industrial lot size that is in demand is around 10 acres. Kirt Shaffer and Charles Laird, Broker, Tippett Company of Washington • The broker stated that 2–10-acre industrial sites in the subject’s area that has access to utilities, already zoned for industrial development, and is within the Pasco city limits or within the Urban Growth Boundary with plans to be annexed into the city limits could sell for $7-$9/SF. • The industrial lot sizes in demand are 2-5 acres or 20-40 acres depending on the buyer’s development plans. • Typical lot depth is similar to the industrial lots along Commercial Ave and Garland St. (around 350 feet). • Larger residential parcels are in high demand and could sell between $50k to over $100K per acre given approvals and entitlements for low to medium density residential. Scott Howell, Broker, SVN Retter & Company • The broker stated that the subject’s land, if marketed for industrial could sell for $7-$10/SF. • There has been no softening in land values since the interest rate hikes that began in early 2022. This is due to lack of inventory. • Larger agricultural parcels without utilities sell from $20,000 per acre to $40,000 per acre depending on location and future access to utilities and growth patterns. MARKET ANALYSIS – INDUSTRIAL LARGER PARCEL EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 27 Relative to the new home market in Pasco and the Tri-County area, Zillow research indicates a median sale price of $416,000 and a relatively low inventory of 148 units. The list to sale time is typically 45 days and an upward pricing trend appears to be appropriate for the subject resale market. The new home market appears to be stable as well with national home buildings purchasing larger land parcels and new permits exp ected to continue to increase. MARKET ANALYSIS EXECUTIVE SUMMARY LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 28 INTRODUCTION The market analysis section provides a comprehensive study of supply/demand conditions and examines transaction trends. Based on these findings and an analysis of the subject property, conclusions are drawn with regard to the subject’s competitive position within the marketplace. WASHINGTON AGRICULTURE INDUSTRY Over the last 30 years Washington has been transitioning from a resource-based economy to a more mixed manufacturing and marketing economy, particularly emphasizing the technology sector. This change was spurred by an economic downturn in the early 1970s, heavily impacting the timber, fishing and agriculture industries. Technology in Washington is centered in Seattle and the surrounding counties, leaving much of the rural state outside of the new economic center. Agricultural production has since recovered and contributes more than $5 billion in industry annually, making it the second largest economic driver in the state. Washington leads the apple industry, producing 70% of the apples distributed in the U.S. The state’s top agricultural commodities are apples, milk, wheat, potatoes, cattle, cherries, hay, hops, grapes, and eggs. The industry is highly dependent on trade, with wheat, apples, and hay being among their top five exports, with contributing more than a total of $1.5 billion annually. The state can be divided into three primary growing regions, the temperate maritime climate in the west, the irrigated lands in the central areas, and the dryland region in the east. The subject is located in Franklin County, which is largely an agricultural area. Much of the rural land is actively used for growing crops, feeding livestock, and providing mineral resources. The predominant agricultural land use in Franklin County is cropland (73%) and 23% pastureland as of the 2017 Census of Agriculture. The most commonly grown crops are vegetables, melons, potatoes, and sweet potatoes, and fruits, tree nuts, and berries. Overall, considering the subject soil and topography, the subject is adequately suited for crop or pastureland. The following is an excerpt from the March 2024 Northwest Farm Credit Services “Market Snapshot – Land Values”. Northwest Region Trends High interest rates, water concerns and lower commodity prices are three drivers that may influence land values in 2024. Land values are reportedly stable to slightly increasing, with demand frequently outpacing the available inventory. Market participants for land include a combination of local operators, absentee operators and institutional investors. Developers remain a player in the market, but acquisitions for development have decreased due to ongoing elevated interest rates. Some areas are reporting slightly longer listing times for properties. Land Value Considerations Interest rates – During Q1 2024, high interest rates were one of the most frequently reported deterrents to land acquisition. Greater instances of creative financing such as owner-carried notes have been reported. Residential – The housing market in most areas continues to cool, largely due to high interest rates. A cooling market may lead to fewer developments and alleviate upward price pressure on agricultural lands, particularly those surrounding population centers. Lower prices have yet to be seen as agricultural lands remain in high demand. Availability – Inventories of agricultural land are low in much of AgWest’s territory, which continues to bolster values despite elevated interest rates. The exception is California, where reports indicate that supply is outpacing demand. MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 29 Farm income/commodity prices – USDA forecasts average 2024 net farm income on a national level will fall 25% year over year to $116 billion. While this may disincentivize prospective buyers, the relationship between land values and commodity prices in recent years has been weak as many perceive land as a stable, long-term investment. The outlook for commodities is mixed. Little if any negative impacts on agricultural land values have been seen by verified sales, except in certain isolated regions. Water Supply – CA and AZ – California Central Valley growers banked millions of acre-feet of water in 2023, replenishing over-drafted aquifers (when groundwater use exceeds recharge). The Sustainable Groundwater Management Act may lead to strict pumping restrictions and hefty fees in certain regions. Falling water levels at Lake Mead and limited flow on the Colorado River led to severe shortage declarations in 2023. All Colorado River user states and Native American tribes continue with contentious negotiat ions over water rights and use cutbacks under pressure of looming federal intervention by the U.S. Bureau of Reclamation. Water supply uncertainty and rising interest rates are reducing activity in the speculative/investment market for agricultural land, although the full effect cannot be determined yet. Drought – Snowpack and precipitation levels in the West are mixed. Most states show fewer areas under abnormally dry, moderate, severe and extreme drought conditions compared with a year ago (see map below). While strong winter storms alleviated drought concerns throughout much of AgWest’s territory, year-to-date precipitation is well below average across Washington, northern Idaho, Montana and parts of Arizona. As of March 14, 2024, California’s snowpack reached 100% of its April 1 average, although there is some concern about premature melting due to a shorter winter and rising average temperatures. Extended drought conditions have the potential to negatively impact land values as farm profitability is challenged. State Trends The graph below illustrates farmland sizes from transactions included in Northwest FCS’ proprietary real estate sales database by state. MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 30 Current Considerations for Washington Agricultural Land: • Agricultural land remains in strong demand as low inventories limit transaction levels; however, more properties are being sold through listings rather than word of mouth, which may be an early indicator of a slowing market. When sales occur, they indicate stable to slightly increasin g prices. • The Columbia Basin Irrigation Project is gaining nationwide attention, attracting out-of-area buyers looking for investment in quality farm ground with reliable water availability and a diversity of crop options. • Year-to-date precipitation levels are below average, which may increase drought stress and reduce yields during the 2024 growing season. Reliable water availability remains a top priority for market participants as extended drought conditions could negatively impact annual returns and land values. • In areas where a recreational market exists, few sales have occurred and listing prices have seen reductions. Extended listing times are common. • The rural residential market has slowed significantly due to increasing interest rates; however, demand still exists for good-quality properties outside of larger communities. There is upward pressure on farmland surrounding population centers. Crop Production Many factors play a role in land productivity, including precipitation, irrigation rights, soil type, general climate (temperature), and elevation. Annual rainfall in Washington averages 38.78 inches. As of September 2024, much of the state is in drought monitoring conditions, with Franklin County falling in D0 (abnormally dry) and D1 (moderate drought). Franklin County typically receives 9” of precipitation each year, which is below state and national levels (both approximately 38”). Generally, years of higher precipitation led to a higher crop yield and lower costs to produce. There are two types of water rights: surface and groundwater. Groundwater is located underground and is usually drawn up by wells. Surface water is found in lakes, rivers, and streams. Washington water laws for surface water are based on appropriation. In times of water crisis, the most senior water rights get their needs met before any with junior water rights, causing them to be more valuable than junior water rights. As noted previously, soil types are classified from Class 1 to Class 8, ranging from most to least suitable for crop production. The best soils in Washington are in Northwest Washington and Northeast Valley, a fertile area that was influenced by volcanic ash. Considering the surrounding uses and historical use of the subject, combined with terrain, the most probable agricultural use is crop or pastureland. MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 31 EXPOSURE TIME & MARKETING PERIOD Exposure time is best established based the recent history of marketing periods for comparable sales, discussions with market participants and information from published surveys. The following table summarizes the information that was taken into consideration to develop an estimate of exposure time and marketing period for the subject property: The comparable sale information generally supports an exposure time range from 6 to 12 months for raw land parcels. The availability of acquisition financing also factors into exposure time and marketing period. My review of the local capital market indicate that adequate financing options would be more difficult for larger land parcels; however, there appears to be sufficient demand from cash buyers or investors removed from lending restrictions. Exposure Time Conclusion Six To Nine Months Marketing Period Conclusion Six To Nine Months VALUATION METHOD TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 32 VALUATION METHOD The following presentation of the appraisal process deals directly with the valuation of the subject property. The paragraphs below describe the standard approaches to value that were considered for this analysis. Washington State law, the fee simple interest in the market value of each individual parcel is estimated herein and will be broken out per tax parcel that is legally recorded as of the date of this report. Valuation of the eight subject lots is summarized herein. Summary data used in the valuation analysis in contained in the Addenda of this report with supplemental information retained in the appraisers' files. Procedure: Recent sales of similar and competing properties are selected for comparison with the subject property. An appropriate unit of comparison is determined (e.g., entire property, price per square foot, price per room, etc.), and adjustments are made to each comparable sale in order to account for value differences between these properties and the subject. The adjustments are made for such property and transaction characteristics as financing terms, conditions of sale, date of sale, location, and phy sical attributes. The result of appropriate adjustments applied to sales of comparable properties should be a relatively narrow indicated value range. From within this range, a specific estimate of the subject’s value is selected. The search period included the past several years which covered the subject’s area. A thorough research for recent land sales in the subject and competing neighborhoods was completed. The land sales selected for analysis are summarized in the valuations of each of the eight subject properties. In comparing the subject properties with the comparable sale properties, the most prevalent indicator for a rural acreage site can be either the price acre, the price per acre or the price per potential lot. Finally, a conclusion regarding the subject’s land market value by the sales comparison approach is formulated for both the “Without Sewer” and “With Sewer valuations. Land Valuation Characteristics specific to the subject property warrant that a site value is developed. Development of the subject site value is a specific scope requirement of this assignment. Due to land value trends in the subject market area, the subject site is valued to test highest & best use considerations. Within the Site Valuation section, the subject is valued as one marketable economic site. Reconciliation of Value Conclusions The Sales Comparison approach is used to value the subject property, which will be reconciled into the final opinion of market value in the Analysis of Value Conclusions section. SALES COMPARISON APPROACH TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 33 SALES APPROACH The Sales Comparison Approach analyzes comparable sales by applying transactional and property adjustments to bracket the subject property within an appropriate unit value comparison. The most relevant unit of comparison is the price per acre, as it best reflects the analysis used by buyers and sellers in this market for vacant land properties with similar utility. I completed a thorough search for similar improved sales in terms of property type, location, physical characteristics, and date of sale. Overall, the sales selected represent the best comparables available for this analysis. We have applied the sales comparison methodology to each of the properties as listed below and have provided the best available land sales without impact from the LID and with impact for the planned LID. The conclusion for each parcel is presented in the following table. Each of the parcels are appraised individually and presented in the addenda. SALES COMPARISON APPROACH EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 34 Na m e Pa r c e l N o . La n d U s e / P l a n n i n g Ac r e s De v e l o p m e n t a l St a t u s Ap p r a i s a l As I s Va l u e Pe r A c r e V a l u e Ap p r a i s a l w/L I D Pe r A c r e V a l u e Ap p r a i s a l Sp e c i a l Be n e f i t V a l u e SIN G H ( E T U X ) , J A S B I R 11 5 1 3 0 0 4 6 Lo w D e n s i t y R e s i d e n t i a l 10 . 1 7 $6 0 0 , 0 0 0 $ 5 0 , 0 0 0 T o $ 6 0 , 0 0 0 $9 0 0 , 0 0 0 $8 0 , 0 0 0 t o $ 9 0 , 0 0 0 $3 0 0 , 0 0 0 CO L E , S H A R O N K 11 5 1 3 0 0 5 5 Lo w D e n s i t y R e s i d e n t i a l 10 . 1 7 $6 5 0 , 0 0 0 $ 5 5 , 0 0 0 t o $ 6 5 , 0 0 0 $9 5 0 , 0 0 0 $8 5 , 0 0 0 t o $ 9 5 , 0 0 0 $3 0 0 , 0 0 0 CO L U M B I A W A T E R S F A R M L L C 11 5 0 1 0 0 3 2 Lo w D e n s i t y R e s i d e n t i a l Me d i u m D e n s i t y R e s i d e n t i a l Co m m e r c i a l 22 3 . 7 4 $4 , 6 3 0 , 0 0 0 $ 2 0 , 0 0 0 t o $ 2 5 , 0 0 0 $9 , 2 7 0 , 0 0 0 $3 5 , 0 0 0 t o $ 4 0 , 0 0 0 $4 , 6 4 0 , 0 0 0 DA R I G O L D , I N C 12 4 6 8 0 0 4 4 In d u s t r i a l 13 7 . 2 9 Ne a r e n d o f Co n s t r u c t i o n $8 , 2 4 0 , 0 0 0 $ 5 0 , 0 0 0 t o $ 6 0 , 0 0 0 $1 2 , 3 6 0 , 0 0 0 $8 0 , 0 0 0 t o $ 9 0 , 0 0 0 $4 , 1 2 0 , 0 0 0 FA R M 2 0 0 5 L L C 11 4 2 5 0 0 1 8 Lo w D e n s i t y R e s i d e n t i a l 13 3 . 0 8 Pre l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d , Gra d i n g P l a n S u b m i t t e d $7 , 7 5 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 6 5 , 0 0 0 $1 0 , 9 7 0 , 0 0 0 $8 0 , 0 0 0 t o $ 8 5 , 0 0 0 $3 , 2 2 0 , 0 0 0 Big S k y D e v e l o p e r s 11 4 3 3 0 0 5 1 Lo w D e n s i t y R e s i d e n t i a l 40 . 3 1 SE P A S u b m i t t e d $2 , 8 2 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $4 , 0 3 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 , 2 1 0 , 0 0 0 Big S k y D e v e l o p e r s 11 4 3 3 0 0 5 2 Me d i u m D e n s i t y R e s i d e n t i a l 29 . 7 6 SE P A S u b m i t t e d $2 , 0 8 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $2 , 9 8 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $9 0 0 , 0 0 0 Big S k y D e v e l o p e r s 11 4 3 3 0 0 5 3 Me d i u m D e n s i t y R e s i d e n t i a l 6.0 3 SE P A S u b m i t t e d $6 0 0 , 0 0 0 $ 8 0 , 0 0 0 t o $ 1 0 0 , 0 0 0 $8 4 0 , 0 0 0 $1 2 0 , 0 0 0 t o $1 4 0 , 0 0 0 $2 4 0 , 0 0 0 Big S k y D e v e l o p e r s 11 4 3 3 0 0 5 4 Me d i u m D e n s i t y R e s i d e n t i a l 6.1 9 SE P A S u b m i t t e d $6 2 0 , 0 0 0 $ 8 0 , 0 0 0 t o $ 1 0 0 , 0 0 0 $8 7 0 , 0 0 0 $1 2 0 , 0 0 0 t o $1 4 0 , 0 0 0 $2 5 0 , 0 0 0 J- 1 4 , L L C 11 4 3 3 0 0 3 1 Lo w D e n s i t y R e s i d e n t i a l 15 8 . 1 5 $3 , 9 5 0 , 0 0 0 $ 2 0 , 0 0 0 t o $ 2 5 , 0 0 0 $7 , 1 2 0 , 0 0 0 $4 0 , 0 0 0 t o $ 4 5 , 0 0 0 $3 , 1 7 0 , 0 0 0 ST R I Z H A K ' S H A V E N R A N C H L L C 11 4 3 3 0 0 4 1 Lo w D e n s i t y R e s i d e n t i a l 41 . 2 2 Pr e l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d $2 , 8 9 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $4 , 1 2 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 , 2 3 0 , 0 0 0 Pr o M a d e C o n s t r u c t i o n 11 4 3 3 0 0 4 2 Lo w D e n s i t y R e s i d e n t i a l 40 . 8 9 Pr e l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d $2 , 8 6 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $4 , 0 9 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 , 2 3 0 , 0 0 0 G S C a t t l e R A N C H , L L C 11 4 3 3 0 0 4 3 Lo w D e n s i t y R e s i d e n t i a l Me d i u m D e n s i t y R e s i d e n t i a l 40 . 6 5 Pr e l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d $2 , 8 5 0 , 0 0 0 $ 6 0 , 0 0 0 t o $ 7 0 , 0 0 0 $4 , 0 8 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 , 2 3 0 , 0 0 0 PA S C O S C H O O L D I S T R I C T N O . 1 11 4 3 3 0 0 5 9 Pu b l i c Q u a s i - P u b l i c 14 . 3 2 Ne a r e n d o f Co n s t r u c t i o n PA S C O S C H O O L D I S T R I C T N O . 1 11 4 3 3 0 0 6 0 Pu b l i c Q u a s i - P u b l i c 60 . 2 6 Ne a r e n d o f Co n s t r u c t i o n PU D # 1 ( F R A N K L I N C O U N T Y ) 12 4 6 8 0 0 3 8 In d u s t r i a l 6.7 0 Po w e r S u b s t a t i o n $5 0 0 , 0 0 0 $ 7 0 , 0 0 0 t o $ 7 5 , 0 0 0 $6 4 0 , 0 0 0 $9 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 $1 4 0 , 0 0 0 SG L A N D M A N A G E M E N T L L C 11 4 3 3 0 0 4 4 Lo w D e n s i t y R e s i d e n t i a l Me d i u m D e n s i t y R e s i d e n t i a l 40 . 7 6 Pr e l i m i n a r y - P l a t Su b m i t t e d , SE P A S u b m i t t e d $3 , 0 7 0 , 0 0 0 $ 6 5 , 0 0 0 t o $ 7 5 , 0 0 0 $4 , 2 9 0 , 0 0 0 $1 0 0 , 0 0 0 t o $1 0 5 , 0 0 0 $1 , 2 2 0 , 0 0 0 To t a l s 99 9 . 6 9 $4 8 , 5 8 0 , 0 0 0 $7 3 , 4 7 0 , 0 0 0 $2 4 , 8 9 0 , 0 0 0 $4 , 4 7 0 , 0 0 0 $ 5 0 , 0 0 0 t o $ 6 0 , 0 0 0 $5 , 9 6 0 , 0 0 0 $7 5 , 0 0 0 t o $ 8 0 , 0 0 0 $1 , 4 9 0 , 0 0 0 CERTIFICATION 3 TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 35 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 of the signer are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. • The signer of this report has no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • Evan Ranes, MAI, ASA, R/W-AC has provided real property valuation services as an appraiser for the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • The signer is not biased with respect to the property that is the subject of this report or to the parties involved with this assignment. • The engagement in this assignment was not contingent upon developing or reporting predetermined results. • The compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • Evan Ranes, MAI, ASA, R/W-AC inspected the property that is the subject of this report. • Richard Koldewyn of Colliers Valuation provided significant valuation assistance to the appraiser signing this certification. CERTIFICATION EXECUTIVE SUMMARY 0CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report Evan Ranes, MAI, ASA, R/W-AC completed the continuing education program for Designated Members of the Appraisal Institute. February 7, 2025 Date Evan Ranes, MAI, ASA, R/W-AC Managing Director Certified General Real Estate Appraiser State of Washington License #1102235 +1 702 836 3749 evan.ranes@colliers.com ASSUMPTIONS & LIMITING CONDITIONS TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 37 This appraisal is subject to the following assumptions and limiting conditions: • The appraiser may or may not have been provided with a survey of the subject property. If further verification is required, a survey by a registered surveyor is advised. • We assume no responsibility for matters legal in character, nor do we render any opinion as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, under responsible ownership, and competent management. • The exhibits in this report are included to assist the reader in visualizing the property. We have made no survey of the property and assume no responsibility in connection with such matters. • Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations existing in the subject property. • The appraiser assumes no responsibility for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise noted herein. • Information presented in this report has been obtained from reliable sources, and it is assumed that the information is accurate. • This report shall be used for its intended purpose only, and by the party to whom it is addressed. Possession of this report does not include the right of publication. • The appraiser may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made therefore. • The statements of value and all conclusions shall apply as of the dates shown herein. • There is no present or contemplated future interest in the property by the appraiser which is not specifically disclosed in this report. • Without the written consent or approval of the author neither all, nor any part of, the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media. This applies particularly to value conclusions and to the identity of the appraiser and the firm with which the appraiser is connected. • This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the author no portion of the report stands alone. • The valuation stated herein assumes professional management and operation of the buildings throughout the lifetime of the improvements, with an adequate maintenance and repair program. • The liability of Colliers International Valuation & Advisory Services, its principals, agents, and employees is limited to the client. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraiser is in no way responsible for any costs incurred to discover or correct any deficiency in the property. • The appraiser is not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated with the property or any adjacent properties, has made no investigation or analysis as to the presence of such materials, and expressly disclaims any duty to note the degree of fault. Colliers International Valuation & Advisory Services and its principals, agents, employees, shall not be liable for any costs, expenses, assessments, or penalties, or diminution in value, property damage, or personal ASSUMPTIONS & LIMITING CONDITIONS EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES injury (including death) resulting from or otherwise attributable to toxic or hazardous substances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, solids or gasses, waste materials or other irritants, contaminants or pollutants. • The appraiser assumes no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA). Colliers International Valuation & Advisory Services, its principals, agents, and employees, shall not be liable for any costs, expenses, assessments, penalties or diminution in value resulting from non-compliance. This appraisal assumes that the subject meets an acceptable level of compliance with ADA standards; if the subject is not in compliance, the eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the magnitude and time of the cost were known today, they would be reduced from the reported value conclusion. • An on-site inspection of the subject property was conducted. No evidence of asbestos materials on -site was noted. A Phase 1 Environmental Assessment was not provided for this analysis. This analysis assumes that no asbestos or other hazardous materials are stored or found in or on the subject property. If evidence of hazardous materials of any kind occurs, the reader should seek qualified professional assistance. If hazardous materials are discovered and if future market conditions indicate an impact on val ue and increased perceived risk, a revision of the concluded values may be necessary. • A detailed soils study was not provided for this analysis. The subject's soils and sub-soil conditions are assumed to be suitable based upon a visual inspection, which did not indicate evidence of excessive settling or unstable soils. No certification is made regarding the stability or suitability of the soil or sub-soil conditions. • This analysis assumes that the financial information provided for this appraisal, including rent rolls and historical income and expense statements; accurately reflect the current and historical operations of the subject property. ADDENDA TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 39 Engagement Letter Parcel Appraisals Comparable Sale Data Sheets Valuation Glossary Qualifications of Appraiser Qualifications of Colliers International Valuation & Advisory Services PARCEL 124-680-038 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.307236 Longitude -119.114544 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 6.70 291,852 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 6.70 291,852 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Industrial AC (Industrial AC) 124-680-038 8618 N Railroad Ave Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 15, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $140,000 $/ Acre $20,895.52 LAND VALUATION Parcel with LID $640,000 Value/Acre $95,522.39 Parcel without LID $500,000 Value/Acre $74,626.87 PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 124-380-038 PARCEL 124-380-038 PARCEL 124-380-038 PARCEL 124-380-038 PARCEL 124-380-038 PARCEL 124-380-038 PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject a 6.70-acre site at 8618 N Railroad Ave in Pasco, Franklin County, Washington. The assessor’s parcel number is: 124-680-038. The legal description of the subject property is as follows: PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of PUD #1 of Franklin County who acquired title to the property on August 28, 2023 as land for $350,000, as recorded in Franklin County Deed Records. Three-Year Sales History This sale appears to have been under private ownership prior to 2023 and was developed with a power substation thereafter. PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 291,852 SF (6.70 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being N Railroad Ave. is a major transportation arterial within proximity to the subject, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a major arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 6.70 291,852 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 6.70 291,852 Shape Irregular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 124-680-038 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s N Railroad Ave Primary Street two-way two-lane major arterial ✓✓ Frontage The subject has adequate frontage for property access. PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0715B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a major arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES FLOOD MAP PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is currently being used for an electrical substation, which is an industrial use. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Industrial AC (Industrial AC) Permitted Uses Current Use Electrical Power Substation, which is the current use. The City is not aware of any proposed industrial facility. Permit history above indicates grading permit for construction of new entrance to the property. Is Current Use Legally Permitted?Yes Zoning Change Not Likely Proposed Use N/A Is Proposed Use Legally Permitted?Yes Permitted uses within this zoning district primarily include industrial development. PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s Industrial AC (Industrial AC) zoning were listed in the Zoning Analysis section and include industrial development. The potential use that meets the requirements of the legal permissibility test is industrial development. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject is surrounded by commercial development, industrial development and single-family development. Given the subject’s location and surrounding uses, the subject site is desirable for commercial development. Of the outright permitted uses, physical and locational features best support develop and industrial use based on market demand for the site’s highest an d best use as-vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop and industrial use based on market demand. AS-IMPROVED ANALYSIS The subject is currently being utilized as an electrical power substation. See Photographs and permit history presented previously and also refer to aerial photograph. We believe the highest and best use as improved is for continued use as an electrical substation which is an industrial use. PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. SALES COMPARISON APPROACH The Sales Comparison Approach is based on the principle of substitution, which asserts that no one would pay more for a property than the value of similar properties in the market. This approach analyzes comparable sales by applying transactional and property adjustments in order to bracket the subject property on an appropriate unit value comparison. The sales comparison approach is applicable when sufficient data on recent market transactions is available. Alternatively, this approach may offer limited reliability because many properties have unique characteristics that cannot be accounted for in the adjustment process. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name East UGA Expansion LID Farm Land Industrial Land Low Density Land Low Density Residential Low Density Residential Industrial Land Address 8618 N Railroad Ave 661 Sun Harbor Dr 8411 Postma Road 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd 2711 Sunnyside Mabton Road City Pasco Burbank Moxee Kennewick Benton City Pasco Sunnyside State WA WA WA WA WA WA WA Zip 99301 99323 98936 99338 99320 99301 98944 County Franklin Walla Walla Yakima Benton Benton Franklin Yakima APN 124-680-038 Portion 320919330004 191336-4201 127881000018 13406100000200 1 123-220-102 220901-41404 PHYSICAL INFORMATION Acres 6.70 45.00 75.28 21.82 59.55 32.40 39.45 Location Average Average Average Average Average Average Average Exposure Average Average Average Average Average Average Average Access Average Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Irregular Irregular Rectangular Site Utility Rating Average Average Average Average Average Average Average Zoning Industrial AC Ag L I Ag --M - 1 SALE INFORMATION Date 10/3/2024 6/28/2023 8/2/2024 5/20/2024 1/25/2024 4/1/2023 Status Recorded Recorded Recorded Recorded Recorded Pending Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $475,000 $2,200,000 $500,000 $1,800,000 $631,800 $2,958,750 Analysis Price $475,000 $2,200,000 $500,000 $1,800,000 $631,800 $2,958,750 $/Acre $10,556 $29,224 $22,915 $30,227 $19,500 $75,000 PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -8618 N Railroad Ave, Pasco, WA -6.7 291,852 - No. 1 13.6 Miles 661 Sun Harbor Dr, Burbank , WA 10/3/2024 45.0 $10,556 No. 2 63.3 Miles 8411 Postma Road, Moxee, WA 6/28/2023 75.3 3,279,208 $33,433 No. 3 13.6 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 20.4 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $30,529 No. 5 9.0 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $19,890 No. 6 42.4 Miles 2711 Sunnyside Mabton Road, Sunnyside, WA 4/1/2023 39.5 1,718,442 $78,750 PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name East UGA Expansion LID Farm Land Industrial Land Low Density Land Low Density Residential Low Density Residential Industrial Land Address 8618 N Railroad Ave 661 Sun Harbor Dr 8411 Postma Road 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd 2711 Sunnyside Mabton Road City Pasco Burbank Moxee Kennewick Benton City Pasco Sunnyside APN 124-680-038 Portion 320919330004191336-4201 127881000018 134061000002001123-220-102 220901-41404 Acres 6.70 45.00 75.28 21.82 59.55 32.40 39.45 Location Average Average Average Average Average Average Average Exposure Average Average Average Average Average Average Average Access Average Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Irregular Irregular Rectangular Site Utility Rating Average Average Average Average Average Average Average Zoning Industrial AC Ag L I Ag Ag Ag M - 1 SALE INFORMATION Date 10/3/2024 6/28/2023 8/2/2024 5/20/2024 1/25/2024 4/1/2023 Status Recorded Recorded Recorded Recorded Recorded Pending Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $475,000 $2,200,000 $500,000 $1,800,000 $631,800 $2,958,750 Price/Acre $10,556 $29,224 $22,915 $30,227 $19,500 $75,000 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0%0% Financing 0%0%0%0%0%0% Conditions of Sale 0%10%0%0%0%0% Expenditures After the Sale 0%0%0%0%0%0% Market Conditions¹0%4%1%1%2%5% Subtotal Transactional Adj Price $10,556 $33,433 $23,144 $30,529 $19,890 $78,750 PROPERTY ADJUSTMENTS Location Inferior Inferior Inferior Inferior Inferior Similar Size Larger Larger Larger Larger Larger Larger Exposure Similar Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Inferior Similar Shape Similar Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Similar Zoning Inferior Similar Inferior Inferior Inferior Similar TOTAL ADJUSTED PRICE $10,556 $33,433 $23,144 $30,529 $19,890 $78,750 STATISTICS UNADJUSTED ADJUSTED LOW $10,556 $10,556 HIGH $75,000 $78,750 MEDIAN $26,069 $26,836 AVERAGE $31,237 $32,717 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/15/24 PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment for property characteristics. This agricultural land sale has an inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. The overall sale adjustment is upward consideration to the subject’s value. Comparable 2 (Inferior/Acre adjusted) required a total upward transaction adjustment of 14%. This comparable is adjusted upward for improving market conditions. From our sale research, a minimum 3% appreciation factor is realized in the sales data. The seller priced the property below the market for quick sale. This comparable required a total upward adjustment for property characteristics. This sale has similar zoning and use potential and inferior location outside of Yakima. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment for property characteristics. This sale has similar use potential to the subject and similar site characteristics.. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $78,750/Acre, with a median of $26,836/Acre and an average of $32,717/Acre. Based on the results of the preceding analysis, Comparable 6 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. Given the access and industrial zoning we concluded to the upper value range. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $10,556 0%$10,556 Inferior SECONDARY 2 $29,224 14%$33,433 Inferior SECONDARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $30,227 1%$30,529 Inferior SECONDARY 5 $19,500 2%$19,890 Inferior SECONDARY 6 $75,000 5%$78,750 Similar PRIMARY LOW $10,556 AVERAGE $32,717 HIGH $78,750 MEDIAN $26,836 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 6.70 x $75,000 =$500,000 ¹Cumulative ²Additive Rounded to nearest $10,000 PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Amazon's Site DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address 8618 N Railroad Ave 5700 North Capitol Avenue SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Pasco Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99301 99301 98926 98837 99301 County Franklin Franklin Franklin Kittitas Grant Franklin APN 124-680-038 113-130-451 115-210-038, 115-210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 6.70 27.86 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning Industrial AC I - 1 Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 2/28/2024 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $3,750,300 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $3,750,300 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $134,612 $153,294 $122,289 $87,100 $56,228 PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -8618 N Railroad Ave, Pasco, WA -6.7 291,852 - No. 1 2.1 Miles 5700 North Capitol Avenue, Pasco, WA 2/28/2024 27.9 1,213,581 $109,844 No. 2 6.3 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 83.0 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 56.7 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 2.4 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Amazon's Site DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address 8618 N Railroad Ave 5700 North Capitol Avenue SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Pasco Pasco Ellensburg Moses Lake Pasco APN 124-680-038 113-130-451 115-210-038, 115-210-061158133, 916833, 698633, 528633, 70863391121653113-130-450 Acres 6.70 27.86 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning Industrial AC I - 1 Med Density Res LI LI Formerly AP-20 Utilities Yes Yes Yes Yes Yes Yes Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 2/28/2024 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $3,750,300 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $134,612 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale -20%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹2%4%4%5%15% Subtotal Transactional Adj Price $109,844 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Superior Similar Similar Inferior Similar Size Larger Larger Larger Larger Larger Exposure Similar Similar Similar Inferior Similar Access Similar Similar Similar Inferior Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Similar Similar Similar Similar Utilities Similar Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $109,844 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $56,228 $64,662 HIGH $153,294 $127,541 MEDIAN $122,289 $101,745 AVERAGE $110,705 $99,049 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/15/24 PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Superior/Acre adjusted) required a total downward transaction adjustment of -18%. This comparable is adjusted upward for improving market conditions. From our sale research, we realized a minimum 3% appreciation factor for several land sale transactions. We believe the subject price is impacted by buyer motivation with an amazon tenant impacting the condition of sale. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Similar/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, exposure and access. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Similar/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale while a dated transaction represents a similar site with superior utility access compared to the subject without utilities. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $64,662 to $127,541/Acre, with a median of $101,745/Acre and an average of $99,049/Acre. Based on the results of the preceding analysis, Comparable 5 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. Given the smaller size, access and industrial zoning, we concluded in the upper range of the comparables. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. PARCEL 124-680-038 CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $134,612 -18%$109,844 Superior SECONDARY 2 $153,294 -16%$127,541 Similar SECONDARY 3 $122,289 -16%$101,745 Similar SECONDARY 4 $87,100 5%$91,455 Inferior SECONDARY 5 $56,228 15%$64,662 Similar PRIMARY LOW $64,662 AVERAGE $99,049 HIGH $127,541 MEDIAN $101,745 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 6.70 x $95,000 =$640,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 15, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $140,000 $/ Acre $20,895.52 LAND VALUATION Parcel with LID $640,000 Value/Acre $95,522.39 Parcel without LID $500,000 Value/Acre $74,626.87 PARCEL 124-680-044 TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.304876 Longitude -119.113628 Number Of Parcels 1 Assessor Parcels Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 137.35 5,982,966 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 137.35 5,982,966 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Industrial AC (Industrial AC) 124-680-044 8201 N Railroad Ave Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 15, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $4,120,000 $/ Acre $29,996.36 LAND VALUATION Parcel with LID $12,360,000 Value/Acre $89,989.08 Parcel without LID $8,240,000 Value/Acre $59,992.72 PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 124-680-044 PARCEL 124-680-044 PARCEL 124-680-044 PARCEL 124-680-044 PARCEL 124-680-044 PARCEL 124-680-044 PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject a 137.35-acre site at 8201 N Railroad Ave in Pasco, Franklin County, Washington. The assessor ’s parcel numbers are: 124-680-038, 124-680-044. The legal description of the subject property is as follows: PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Darigold who acquired title to the property on July 1, 2021 as land for $2,998,001 or $21,827 per acre, as recorded in (Book/Page) of the Franklin County Deed Records. Three-Year Sales History This sale appears to have been under private ownership in 2021 and is now under construction with an industrial facility. VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Site Description The subject site consists of a single parcel. As noted below, the subject site has 5,982,966 SF (137.35 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being N Railroad Avenue is a major transportation arterial within proximity to the subject, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a major arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Assessor Parcels Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 137.35 5,982,966 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 137.35 5,982,966 Shape Irregular Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 124-680-044 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s N Railroad Ave Primary Street two-way two-lane major arterial ✓✓ Frontage The subject has adequate frontage for property access. PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0715B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a major arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES FLOOD MAP PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use as an industrial facility. The subject is under construction with an industrial use and was formerly improved with a cell tower and center pivot for an agricultural use. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Industrial AC Permitted Uses Current Use Proposed Industrial facility Is Current Use Legally Permitted?Yes Zoning Change Not Likely Proposed Use Is Proposed Use Legally Permitted?Yes Permitted uses within this zoning district primarily include industrial development. PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant and As- Improved. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s Industrial AC zoning were listed in the Zoning Analysis section and include industrial development. The potential use that meets the requirements of the legal permissibility test is industrial development. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject is surrounded by commercial development, industrial development and single-family development. Given the subject’s location and surrounding uses, the subject site is desirable for commercial development. Of the outright permitted uses, physical and locational features best support develop, and industrial use based on market demand for the site’s highest and best use as-vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop and industrial use based on market demand. AS-IMPROVED ANALYSIS The subject is currently being utilized as an industrial use. See Photographs and permit history presented previously. We believe the highest and best use as improved is for continued use as an industrial facility. PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES VALUATION INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. SALES COMPARISON APPROACH The Sales Comparison Approach is based on the principle of substitution, which asserts that no one would pay more for a property than the value of similar properties in the market. This approach analyzes comparable sales by applying transactional and property adjustments in order to bracket the subject property on an appropriate unit value comparison. The sales comparison approach is applicable when sufficient data on recent market transactions is available. Alternatively, this approach may offer limited reliability because many properties have unique characteristics that cannot be accounted for in the adjustment process. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name East UGA Expansion LID Farm Land Industrial Land Low Density Land Low Density Residential Low Density Residential Industrial Land Address 8201 N Railroad Ave 661 Sun Harbor Dr 8411 Postma Road 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd 2711 Sunnyside Mabton Road City Pasco Burbank Moxee Kennewick Benton City Pasco Sunnyside State WA WA WA WA WA WA WA Zip 99301 99323 98936 99338 99320 99301 98944 County Franklin Walla Walla Yakima Benton Benton Franklin Yakima APN 124-380-044 Portion 320919330004 191336-4201 127881000018 13406100000200 1 123-220-102 220901-41404 PHYSICAL INFORMATION Acres 137.35 45.00 75.28 21.82 59.55 32.40 39.45 Location Average Average Average Average Average Average Average Exposure Average Average Average Average Average Average Average Access Average Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Irregular Irregular Rectangular Site Utility Rating Average Average Average Average Average Average Average Zoning Industrial AC Ag L I Ag --M - 1 SALE INFORMATION Date 10/3/2024 6/28/2023 8/2/2024 5/20/2024 1/25/2024 4/1/2023 Status Recorded Recorded Recorded Recorded Recorded Pending Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $475,000 $2,200,000 $500,000 $1,800,000 $631,800 $2,958,750 Analysis Price $475,000 $2,200,000 $500,000 $1,800,000 $631,800 $2,958,750 $/Acre $10,556 $29,224 $22,915 $30,227 $19,500 $75,000 PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -8201 N Railroad Ave, Pasco, WA -137.4 5,982,966 - No. 1 13.5 Miles 661 Sun Harbor Dr, Burbank , WA 10/3/2024 45.0 $10,556 No. 2 63.4 Miles 8411 Postma Road, Moxee, WA 6/28/2023 75.3 3,279,208 $33,433 No. 3 13.5 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 20.5 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $30,529 No. 5 9.2 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $19,890 No. 6 42.4 Miles 2711 Sunnyside Mabton Road, Sunnyside, WA 4/1/2023 39.5 1,718,442 $78,750 PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name East UGA Expansion LID Farm Land Industrial Land Low Density Land Low Density Residential Low Density Residential Industrial Land Address 8201 N Railroad Ave 661 Sun Harbor Dr 8411 Postma Road 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd 2711 Sunnyside Mabton Road City Pasco Burbank Moxee Kennewick Benton City Pasco Sunnyside APN 124-380-044 Portion 320919330004191336-4201 127881000018 134061000002001123-220-102 220901-41404 Acres 137.35 45.00 75.28 21.82 59.55 32.40 39.45 Location Average Average Average Average Average Average Average Exposure Average Average Average Average Average Average Average Access Average Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Irregular Irregular Rectangular Site Utility Rating Average Average Average Average Average Average Average Zoning Industrial AC Ag L I Ag Ag Ag M - 1 SALE INFORMATION Date 10/3/2024 6/28/2023 8/2/2024 5/20/2024 1/25/2024 4/1/2023 Status Recorded Recorded Recorded Recorded Recorded Pending Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $475,000 $2,200,000 $500,000 $1,800,000 $631,800 $2,958,750 Price/Acre $10,556 $29,224 $22,915 $30,227 $19,500 $75,000 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0%0% Financing 0%0%0%0%0%0% Conditions of Sale 0%10%0%0%0%0% Expenditures After the Sale 0%0%0%0%0%0% Market Conditions¹0%4%1%1%2%5% Subtotal Transactional Adj Price $10,556 $33,433 $23,144 $30,529 $19,890 $78,750 PROPERTY ADJUSTMENTS Location Inferior Inferior Inferior Inferior Inferior Similar Size Similar Similar Similar Similar Similar Similar Exposure Similar Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Inferior Similar Shape Similar Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Similar Zoning Inferior Similar Inferior Inferior Inferior Similar TOTAL ADJUSTED PRICE $10,556 $33,433 $23,144 $30,529 $19,890 $78,750 STATISTICS UNADJUSTED ADJUSTED LOW $10,556 $10,556 HIGH $75,000 $78,750 MEDIAN $26,069 $26,836 AVERAGE $31,237 $32,717 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/15/24 PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This agricultural land sale has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. The overall sale adjustment is upward consideration to the subject’s value. Comparable 2 (Inferior/Acre adjusted) required a total upward transaction adjustment of 14%. This comparable is adjusted upward for improving market conditions. From our sale research, a minimum 3% appreciation factor is realized in the sales data. The seller priced the property below the market for quick sale. This comparable required a total upward adjustment of for property characteristics. This sale has similar zoning and use potential and inferior location outside of Yakima. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $78,750/Acre, with a median of $26,836/Acre and an average of $32,717/Acre. Based on the results of the preceding analysis, Comparable 6 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $10,556 0%$10,556 Inferior SECONDARY 2 $29,224 14%$33,433 Inferior SECONDARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $30,227 1%$30,529 Inferior SECONDARY 5 $19,500 2%$19,890 Inferior SECONDARY 6 $75,000 5%$78,750 Similar PRIMARY LOW $10,556 AVERAGE $32,717 HIGH $78,750 MEDIAN $26,836 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 137.35 x $60,000 =$8,240,000 ¹Cumulative ²Additive Rounded to nearest $10,000 PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Amazon's Site DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address 8201 N Railroad Ave 5700 North Capitol Avenue SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Pasco Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99301 99301 98926 98837 99301 County Franklin Franklin Franklin Kittitas Grant Franklin APN 124-380-044 113-130-451 115-210-038, 115-210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 137.35 27.86 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning Industrial AC I - 1 Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 2/28/2024 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $3,750,300 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $3,750,300 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $134,612 $153,294 $122,289 $87,100 $56,228 PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -8201 N Railroad Ave, Pasco, WA -137.4 5,982,966 - No. 1 1.9 Miles 5700 North Capitol Avenue, Pasco, WA 2/28/2024 27.9 1,213,581 $109,844 No. 2 6.3 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 83.1 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 56.9 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 2.3 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Amazon's Site DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address 8201 N Railroad Ave 5700 North Capitol Avenue SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Pasco Pasco Ellensburg Moses Lake Pasco APN 124-380-044 113-130-451 115-210-038, 115-210-061158133, 916833, 698633, 528633, 70863391121653113-130-450 Acres 137.35 27.86 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning Industrial AC I - 1 Med Density Res LI LI Formerly AP-20 Utilities Yes Yes Yes Yes Yes Yes Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 2/28/2024 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $3,750,300 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $134,612 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale -20%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹2%4%4%5%15% Subtotal Transactional Adj Price $109,844 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Superior Similar Similar Inferior Similar Size Similar Similar Similar Similar Similar Exposure Similar Similar Similar Inferior Similar Access Similar Similar Similar Inferior Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Similar Similar Similar Similar Utilities Similar Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $109,844 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $56,228 $64,662 HIGH $153,294 $127,541 MEDIAN $122,289 $101,745 AVERAGE $110,705 $99,049 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/15/24 PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Superior/Acre adjusted) required a total downward transaction adjustment of -18%. This comparable is adjusted upward for improving market conditions. From our sale research, we realized a minimum 3% appreciation factor for several land sale transactions. We believe the subject price is impacted by buyer motivation with an amazon tenant impacting the condition of sale. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Similar/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, exposure and access. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Similar/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale while a dated transaction represents a similar site with superior utility access compared to the subject without utilities. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $64,662 to $127,541/Acre, with a median of $101,745/Acre and an average of $99,049/Acre. Based on the results of the preceding analysis, Comparable 5 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. PARCEL 124-680-044 CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $134,612 -18%$109,844 Superior SECONDARY 2 $153,294 -16%$127,541 Similar SECONDARY 3 $122,289 -16%$101,745 Similar SECONDARY 4 $87,100 5%$91,455 Inferior SECONDARY 5 $56,228 15%$64,662 Similar PRIMARY LOW $64,662 AVERAGE $99,049 HIGH $127,541 MEDIAN $101,745 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 137.35 x $90,000 =$12,360,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 15, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $4,120,000 $/ Acre $29,996.36 LAND VALUATION Parcel with LID $12,360,000 Value/Acre $89,989.08 Parcel without LID $8,240,000 Value/Acre $59,992.72 IPARCELS 114-330-060 &59 DENTIFICATION OF APPRAISAL ASSIGNMENT TABLE OF CONTENTS LAS240237 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.288901 Longitude -119.170708 Number Of Parcels 2 Assessor Parcels Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 74.55 3,247,398 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 74.55 3,247,398 Topography Level at street grade Shape Rectangular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Public Quasi-Public (PQP) 114-330-060, 114-330-059 6091 Burns Road Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,490,000 $/ Acre $19,986.59 LAND VALUATION Parcel with LID $5,960,000 Value/Acre $79,946.34 Parcel without LID $4,470,000 Value/Acre $59,959.76 IPARCEL 114-330-060 &59 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 PARCEL 114-330-060 PARCEL 114-330-060 PARCEL 114-330-060 PARCEL 114-330-060 PARCEL 114-330-060 PARCEL 114-330-060 IPARCEL 114-330-060 &59 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 PROPERTY IDENTIFICATION The subject is a 74.55-acre site at 6091 Burns Road in Pasco, Franklin County, Washington. The assessor’s parcel numbers are: 114-330-060, 114-330-059. The legal description of the subject property is as follows: IPARCEL 114-330-060 &59 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 CLIENT IDENTIFICATION The client of this specific assignment is City of Pasco. PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of the Pasco School District No. 1 who acquired title to the property on January 18, 2023 as land for an undisclosed amount. Three-Year Sales History This sale appears to have been under private ownership and transferred in 2023 for an undisclosed amount. The property is underway with construction of a high school to service the northern area of Pasco and without the public use the property would zone for low to medium density residential. VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 IPARCEL 114-330-060 &59 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 5 Site Description The subject site consists of 2 parcels. As noted below, the subject site has 3,247,398 SF (74.55 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size a nd characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Powerline Road. Major transportation arterials within proximity to the subject include Powerline Road, Clark Road and S Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a minor arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent MULTIPLE PARCEL SITE DESCRIPTION GRID USABLE TOTAL FRONTING FLOOD PARCEL SF AC SF AC STREET SHAPE ACCESS EXPOSURE PLAIN 114-330-060 2,623,619 60.23 2,623,619 60.23 Burns Road Rectangular Average Average Zone C 114-330-059 623,779 14.32 623,779 14.32 Roberta Rd alignment Rectangular Average Average Zone C TOTAL 3,247,398 74.55 3,247,398 74.55 Assessor Parcels Number Of Parcels 2 Land Area Acres Square Feet Primary Parcel 74.55 3,247,398 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 74.55 3,247,398 Shape See Multiple Parcel Chart For Breakdown Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site See Multiple Parcel Chart For Breakdown Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Powerline Road Secondary Streettwo-way two-lane minor arterial ✓ Frontage The subject has adequate frontage for property access. IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a minor arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES FLOOD MAP IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES INTRODUCTION Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is under construction by the School District with a new high school as a special use property. Otherwise, we would consider the zoning to conform to low to medium density residential. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Public Quasi-Public (PQP) Permitted Uses Current Use Public High School for the Pasco School District Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development;however,the future zoning detail map indicates a public use as a school. IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s PQP (Public Quasi-Public) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is special use as public school. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular in shape and has level topography with average access and average exposure. The subject is surrounded by public service uses, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is desirable for single-family development; however, the Pasco School District has purchased the land for development of a community special use as a public high school. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a low density residential project based on future demand or public use as entitled. AS-IMPROVED ANALYSIS The subject has been improved with a school district property for the benefit of the community as a public use, which is considered the highest and best use as improved. IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address 6091 Burns Road SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99301 99352 99338 99320 99301 County Franklin Franklin Benton Benton Benton Franklin APN 114-330-060, 114- 330-059 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 PHYSICAL INFORMATION Acres 74.55 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning PQP Med Density Res Single Family Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 $/Acre $153,294 $39,184 $22,915 $30,227 $19,500 IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -6091 Burns Road, Pasco, WA -74.6 3,247,398 - No. 1 3.4 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $119,569 No. 2 9.5 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 3 11.1 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $34,716 No. 4 17.8 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $45,793 No. 5 9.8 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $29,835 - IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address 6091 Burns Road SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco APN 114-330-060, 114-330-059115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 Acres 74.55 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning PQP Med Density Res R-1 Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Price/Acre $153,294 $39,184 $22,915 $30,227 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale -25%0%50%50%50% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹4%10%1%1%2% Subtotal Transactional Adj Price $119,569 $43,103 $34,716 $45,793 $29,835 PROPERTY ADJUSTMENTS Location Inferior Similar Inferior Inferior Inferior Size Smaller Larger Smaller Smaller Smaller Exposure Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Inferior Shape Similar Similar Similar Similar Similar Site Utility Rating Superior Sl. Superior Similar Similar Similar Zoning Superior Superior Inferior Inferior Inferior TOTAL ADJUSTED PRICE $119,569 $43,103 $34,716 $45,793 $29,835 STATISTICS UNADJUSTED ADJUSTED LOW $19,500 $29,835 HIGH $153,294 $119,569 MEDIAN $30,227 $43,103 AVERAGE $53,024 $54,603 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Superior/Acre adjusted) required a total downward transaction adjustment of -21%. We applied a market conditions adjustment for stronger market conditions in 2024. This comparable required a total upward adjustment of for property characteristics. This sale demonstrates the impact of entitlements and approvals with improved utilities in place. We adjusted downward for the subject's lack of utilities at 25%. The mode rate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar medium density zoning without a commercial portion. The location and access is similar but the utilities were more proximate compared to the subject. The moderate level of gross adjustments required for this comparable indicates that it can be ad equately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 51%. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 51%. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 52%. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $153,294 -21%$119,569 Superior PRIMARY 2 $39,184 10%$43,103 Similar PRIMARY 3 $22,915 51%$34,716 Inferior PRIMARY 4 $30,227 51%$45,793 Inferior PRIMARY 5 $19,500 52%$29,835 Inferior PRIMARY LOW $29,835 AVERAGE $54,603 HIGH $119,569 MEDIAN $43,103 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 74.55 x $60,000 =$4,470,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address 6091 Burns Road NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 114-330-060, 114- 330-059 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 74.55 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning PQP Single Family Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -6091 Burns Road, Pasco, WA -74.6 3,247,398 - No. 1 9.5 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 2 3.4 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 81.5 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 57.9 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 4.1 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address 6091 Burns Road NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 114-330-060, 114-330-059Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 74.55 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning PQP Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹10%4%4%5%15% Subtotal Transactional Adj Price $43,103 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Smaller Larger Smaller Smaller Exposure Similar Similar Similar Similar Similar Access Similar Similar Superior Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Similar Superior Superior Superior Utilities Similar Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $43,103 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $43,103 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,701 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. Adjustment is necessary for larger size. The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is smaller requiring downward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior access, larger size, and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequa tely relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicabi lity for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicabi lity for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $43,103 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,701/Acre. Based on the results of the preceding analysis, Comparable 1 (Inferior/Acre adjusted), Comparable 2 (Superior/Acre adjusted), Comparable 3 (Superior/Acre adjusted), Comparable 4 (Superior/Acre adjusted) and Comparable 5 (Superior/Acre adjusted) are given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCELS 114-330-060 & 59 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 10%$43,103 Inferior PRIMARY 2 $153,294 -16%$127,541 Superior PRIMARY 3 $122,289 -16%$101,745 Superior PRIMARY 4 $87,100 5%$91,455 Superior PRIMARY 5 $56,228 15%$64,662 Superior PRIMARY LOW $43,103 AVERAGE $85,701 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 74.55 x $75,000 =$5,590,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,490,000 $/ Acre $19,986.59 LAND VALUATION Parcel with LID $5,960,000 Value/Acre $79,946.34 Parcel without LID $4,470,000 Value/Acre $59,959.76 PARCEL 114-330-044 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.287437 Longitude -119.160895 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 40.88 1,780,733 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 40.88 1,780,733 Topography Level at street grade Shape Rectangular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Medium Density Residential (MDR) 114-330-044 NW Corner of Burns Rd & Road 52 North alignment Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,220,000 $/ Acre $29,843.44 LAND VALUATION Parcel with LID $4,290,000 Value/Acre $104,941.29 Parcel without LID $3,070,000 Value/Acre $75,097.85 IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES COMPARABLE KEY IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 114-330-044 PARCEL 114-330-044 PARCEL 114-330-044 PARCEL 114-330-044 PARCEL 114-330-044 PARCEL 114-330-044 IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject is a 40.88-acre site at NW Corner of Burns Rd & Road 52 North alignment in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-044. PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of SG Land Management, LLC and was purchased for $3,312,629 on June 22, 2021 from Allen & Cheryl Olberding. Three-Year Sales History This property appears to have been under private ownership prior to 2021 with an agricultural use, and has received preliminary plat approval for a 690 -lot subdivision. Given development in the area, the parcel was consolidated with three other parcels (042, 043, and 041) in order to receive approvals for the 690-lot subdivision. VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Site Description The subject site consists of 1 parcel. As noted below, the subject site has 1,780,733 SF (40.88 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Burns Road. Major transportation arterials within proximity to the subject include Burns Rd, Clark Rd and North Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a connector street. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 40.88 1,780,733 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 40.88 1,780,733 Shape Rectangular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 114-330-044 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Burns Road Secondary Streettwo-way two-lane connector street ✓✓ Frontage The subject has adequate frontage for residential property access. IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a connector street. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES FLOOD MAP IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES INTRODUCTION Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is currently planned for the development of a medium-density residential subdivision with approvals and entitlement underway as part of a larger, multi-parcel site with approvals for 690 lot subdivision. The impact of the LID will be greater for this site because we assume the development will progress in the near future. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Medium Density Residential (MDR) Permitted Uses Current Use Vacant Land Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s MDR (Medium Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, commercial development and mixed-use development. Given the subject’s location and surrounding uses, the subject site is desirable for residential development. Of the outright permitted uses, physical and locational features best support develop a medium density residential project for the site’s highest and best use as-vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a medium density residential project. AS-IMPROVED ANALYSIS The subject is currently planned for a 690-lot medium-density residential subdivision as a component of a larger site including parcels 041, 042, 043 with approvals and entitlements for a 690 lot subdivision. Given that permitted use of the subject is for MDR (Medium Density Residential) zoning, the highest and best use as improved/proposed is for Medium Density Residential. IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES VALUATION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address NW Corner of Burns Rd & Road 52 North alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99301 99352 99338 99320 99301 County Franklin Franklin Benton Benton Benton Franklin APN 114-330-044 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 PHYSICAL INFORMATION Acres 40.88 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Med Density Res Single Family Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 $/Acre $153,294 $39,184 $22,915 $30,227 $19,500 IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -NW Corner of Burns Rd & Road 52 North alignment, Pasco, WA -40.9 1,780,733 - No. 1 3.9 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $119,569 No. 2 9.8 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 3 11.2 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $34,716 No. 4 18.3 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $45,793 No. 5 9.9 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $29,835 - IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address NW Corner of Burns Rd & Road 52 North alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco APN 114-330-044 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 Acres 40.88 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Med Density Res R-1 Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Price/Acre $153,294 $39,184 $22,915 $30,227 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale -25%0%50%50%50% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹4%10%1%1%2% Subtotal Transactional Adj Price $119,569 $43,103 $34,716 $45,793 $29,835 PROPERTY ADJUSTMENTS Location Similar Similar Inferior Inferior Inferior Size Smaller Larger Smaller Larger Smaller Exposure Similar Similar Similar Similar Similar Access Similar Similar Inferior Similar Inferior Shape Similar Similar Similar Similar Similar Site Utility Rating Superior Sl. Superior Similar Similar Similar Zoning Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $119,569 $43,103 $34,716 $45,793 $29,835 STATISTICS UNADJUSTED ADJUSTED LOW $19,500 $29,835 HIGH $153,294 $119,569 MEDIAN $30,227 $43,103 AVERAGE $53,024 $54,603 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Superior/Acre adjusted) required a total downward transaction adjustment of -21%. We applied a market conditions adjustment for stronger market conditions in 2024 This comparable required a total upward adjustment of for property characteristics. This sale demonstrates the impact of residential entitlements and approvals with utilities in place. We adjusted downward for the subject's lack of utilities at 25%. The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (inferior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. From our sale research, a minimum 3% to 5% annual appreciation factor is realized in the sales data. This comparable required a total upward adjustment of for property characteristics. This sale has similar medium density zoning. The location and access is similar but the utilities were more proximate compared to the subject. The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 51%. This comparable required a total upward adjustment of for property characteristics. The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 51%. This comparable required a total upward adjustment of for property characteristics. The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 52%. This comparable required a total upward adjustment of for property characteristics. The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $153,294 -21%$119,569 Superior PRIMARY 2 $39,184 10%$43,103 inferior PRIMARY 3 $22,915 51%$34,716 Inferior PRIMARY 4 $30,227 51%$45,793 Inferior PRIMARY 5 $19,500 52%$29,835 Inferior PRIMARY LOW $29,835 AVERAGE $54,603 HIGH $119,569 MEDIAN $43,103 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 40.88 x $75,000 =$3,070,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address NW Corner of Burns Rd & Road 52 North alignment NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 114-330-044 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 40.88 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Single Family Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -NW Corner of Burns Rd & Road 52 North alignment, Pasco, WA -40.9 1,780,733 - No. 1 9.8 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $41,535 No. 2 3.9 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 82.0 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 58.0 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 3.7 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address NW Corner of Burns Rd & Road 52 North NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 114-330-044 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 40.88 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹6%4%4%5%15% Subtotal Transactional Adj Price $41,535 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Similar Larger Similar Larger Exposure Similar Similar Similar Similar Similar Access Similar Similar Superior Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Similar Superior Superior Superior Utilities Inferior Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $41,535 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $41,535 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,388 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. From our sale research, we realized a minimum 3% to 5% appreciation factor for several land sale transactions. This comparable required a total upward adjustment of for property characteristics. Adjustments are offsetting with larger size (upward) and inferior zoning (upward) The total gross adjustment applied to this comparable was inferior overall. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valua tion of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and meduim density approval. This comparable required a total upward adjustment of for property characteristics. The property is smaller requiring downward consideration and has entitlements with utilities at the site. The total gross adjustment applied to this comparable wassuperior overall. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior access, smaller size, and superior commercial zoning. The total gross adjustment applied to this comparable was superior rated. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The total gross adjustment applied to this comparable was superior rated. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The total gross adjustment applied to this comparable was superior rated. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $41,535 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,388/Acre. Based on the results of the preceding analysis, Comparable 2 (Superior/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-044 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 6%$41,535 Inferior SECONDARY 2 $153,294 -16%$127,541 Superior PRIMARY 3 $122,289 -16%$101,745 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY 5 $56,228 15%$64,662 Superior SECONDARY LOW $41,535 AVERAGE $85,388 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 40.88 x $105,000 =$4,290,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,220,000 $/ Acre $29,843.44 LAND VALUATION Parcel with LID $4,290,000 Value/Acre $104,941.29 Parcel without LID $3,070,000 Value/Acre $75,097.85 PARCEL 114-330-043 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.287770 Longitude -119.165743 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 40.77 1,775,941 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 40.77 1,775,941 Topography Level at street grade Shape Rectangular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Medium Density Residential (MDR) 114-330-043 NE Corner of Burns Rd & Road 60 North alignment Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,230,000 $/ Acre $30,169.24 LAND VALUATION Parcel with LID $4,080,000 Value/Acre $100,073.58 Parcel without LID $2,850,000 Value/Acre $69,904.34 IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES COMPARABLE KEY IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 114-330-043 PARCEL 114-330-043 PARCEL 114-330-043 PARCEL 114-330-043 PARCEL 114-330-043 PARCEL 114-330-043 IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject a 40.77-acre site at NE Corner of Burns Rd & Road 60 North alignment in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-043. PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of GS Cattle Ranch LLC and was purchased for $2,996,595 on July 27, 2023 from Allen & Cheryl Olberding. Three-Year Sales History This property appears to have been under private ownership prior to 2023 with an agricultural use, and has received preliminary plat approval for a 690 -lot subdivision. Given development in the area, the parcel was consolidated with three other parcels (041, 042, and 044) in order to receive approvals for the 690-lot subdivision. IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 1,775,941 SF (40.77 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Burns Road. Major transportation arterials within proximity to the subject include Burns Rd, Clark Rd and North Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a connector street. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 40.77 1,775,941 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 40.77 1,775,941 Shape Rectangular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 114-330-043 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Burns Road Secondary Streettwo-way two-lane connector street ✓✓ Frontage The subject has adequate frontage for residential property access. IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a connector street. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES FLOOD MAP IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is currently planned for development of a medium-density residential subdivision with approvals and entitlement underway as part of a larger, multi-parcel site with approvals for 690 lot subdivision. The impact of the LID will be greater for this site because we assume the development will progress in the near future. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Medium Density Residential (MDR) Permitted Uses Current Use Agricultural Use in path of residential development Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low to medium density single family development. IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s MDR (Medium Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, commercial development and a mixed-use development. Given the subject’s location and surrounding uses, the subject site is desirable for residential development. Of the outright permitted uses, physical and locational features best support develop a medium density residential project for the site’s highest and b est use as-vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a medium density residential project. AS-IMPROVED ANALYSIS The subject is currently planned for a 690-lot medium-density residential subdivision as a component of a larger site including parcels 041, 042, 044 with approvals and entitlements for a 690-lot subdivision. Given that permitted use of the subject is for MDR (Medium Density Residential) zoning, the highest and best use as improved/proposed is for Medium Density Residential. IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES VALUATION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address NE Corner of Burns Rd & Road 60 North alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99301 99352 99338 99320 99301 County Franklin Franklin Benton Benton Benton Franklin APN 114-330-043 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 PHYSICAL INFORMATION Acres 40.77 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Med Density Res Single Family Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 $/Acre $153,294 $39,184 $22,915 $30,227 $19,500 IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -NE Corner of Burns Rd & Road 60 North alignment, Pasco, WA -40.8 1,775,941 - No. 1 3.7 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $119,569 No. 2 9.7 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 3 11.1 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $34,716 No. 4 18.1 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $45,793 No. 5 9.9 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $29,835 - IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address NE Corner of Burns Rd & Road 60 North alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco APN 114-330-043 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 Acres 40.77 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Med Density Res R-1 Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Price/Acre $153,294 $39,184 $22,915 $30,227 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale -25%0%50%50%50% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹4%10%1%1%2% Subtotal Transactional Adj Price $119,569 $43,103 $34,716 $45,793 $29,835 PROPERTY ADJUSTMENTS Location Similar Similar Inferior Inferior Inferior Size Smaller Larger Smaller Larger Smaller Exposure Similar Similar Similar Similar Similar Access Similar Similar Inferior Similar Inferior Shape Similar Similar Similar Similar Similar Site Utility Rating Superior Sl. Superior Similar Similar Similar Zoning Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $119,569 $43,103 $34,716 $45,793 $29,835 STATISTICS UNADJUSTED ADJUSTED LOW $19,500 $29,835 HIGH $153,294 $119,569 MEDIAN $30,227 $43,103 AVERAGE $53,024 $54,603 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Superior/Acre adjusted) required a total downward transaction adjustment of -21%. We applied a market conditions adjustment for stronger market conditions in 2024. This comparable required a total upward adjustment of for property characteristics. This sale demonstrates the impact of residential entitlements and approvals with utilities in place. We adjusted downward for the subject's lack of utilities at 25%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (inferior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. From our sale research, a minimum 3% to 5% annual appreciation factor is realized in the sales data. This comparable required a total upward adjustment of for property characteristics. This sale has similar medium density zoning. The location and access is similar but the utilities were more proximate compared to the subject. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 51%. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 51%. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 52%. This comparable required a total upward adjustment of for property characteristics. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $153,294 -21%$119,569 Superior PRIMARY 2 $39,184 10%$43,103 inferior PRIMARY 3 $22,915 51%$34,716 Inferior PRIMARY 4 $30,227 51%$45,793 Inferior PRIMARY 5 $19,500 52%$29,835 Inferior PRIMARY LOW $29,835 AVERAGE $54,603 HIGH $119,569 MEDIAN $43,103 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 40.77 x $70,000 =$2,850,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address NE Corner of Burns Rd & Road 60 North alignment NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 114-330-043 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 40.77 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Single Family Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -NE Corner of Burns Rd & Road 60 North alignment, Pasco, WA -40.8 1,775,941 - No. 1 9.7 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $41,535 No. 2 3.7 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 81.8 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 57.9 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 3.9 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address NE Corner of Burns Rd & Road 60 North NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 114-330-043 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 40.77 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹6%4%4%5%15% Subtotal Transactional Adj Price $41,535 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Similar Larger Similar Larger Exposure Similar Similar Similar Similar Similar Access Similar Similar Superior Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Similar Superior Superior Superior Utilities Inferior Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $41,535 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $41,535 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,388 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. From our sale research, we realized a minimum 3% to 5% appreciation factor for several land sale transactions. This comparable required a total upward adjustment of for property characteristics. Adjustments are offsetting with larger size (upward) The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is smaller requiring downward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and is a larger site (upward adjustments). It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $41,535 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,388/Acre. Based on the results of the preceding analysis, Comparable 2 (Superior/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-043 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 6%$41,535 Inferior SECONDARY 2 $153,294 -16%$127,541 Superior PRIMARY 3 $122,289 -16%$101,745 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY 5 $56,228 15%$64,662 Superior SECONDARY LOW $41,535 AVERAGE $85,388 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 40.77 x $100,000 =$4,080,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,230,000 $/ Acre $30,169.24 LAND VALUATION Parcel with LID $4,080,000 Value/Acre $100,073.58 Parcel without LID $2,850,000 Value/Acre $69,904.34 IPARCEL 114-330-042 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.296312 Longitude -119.173518 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 40.90 1,781,604 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 40.90 1,781,604 Topography Level at street grade Shape Rectangular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low Density Residential (LDR) 114-330-42 South Side of Roberta Rd alignment West side of Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,230,000 $/ Acre $30,073.35 LAND VALUATION Parcel with LID $4,090,000 Value/Acre $100,000.00 Parcel without LID $2,860,000 Value/Acre $69,926.65 IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 114-330-042 PARCEL 114-330-042 PARCEL 114-330-042 PARCEL 114-330-042 PARCEL 114-330-042 PARCEL 114-330-042 IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject is a 40.90-acre site at South Side of Roberta Rd alignment West side of Road 52 North in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-42. The legal description of the subject property is presented in the Addenda. PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Pro Made Construction, LLC. who acquired title to the property on June 28, 2022 as land for $3,156,458. Three-Year Sales History This property appears to have been under private ownership prior to 2022 with an agricultural use, and has received preliminary plat approval for a 690 -lot subdivision. Given development in the area, the parcel was consolidated with three other parcels (041, 043, and 044) in order to receive approvals for the 690-lot subdivision. IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 1,781,604 SF (40.90 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as only fair. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Dirt Access. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a connector street. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 40.90 1,781,604 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 40.90 1,781,604 Shape Rectangular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities LID will make available to site 114-330-42 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Dirt Access one-way one-lane connector street ✓ Frontage The subject has no improved street frontage for property access. IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a connector street. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is currently planned for the development of a medium-density residential subdivision with approvals and entitlement underway as part of a larger, multi-parcel site with approvals for 690 lot subdivision. The impact of the LID will be greater for this site because we assume the development will progress in the near future. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Low Density Residential (LDR) Permitted Uses Current Use Agricultural Land in the path of future residential development. Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s LDR (Low Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is desirable for single-family development. Of the outright permitted uses, physical and locational features best support develop a low-density residential project based on future demand. for the site’s highest and best use as- vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a low density residential project based on future demand.. AS-IMPROVED ANALYSIS The subject is currently planned for a 690-lot medium-density residential subdivision as a component of a larger site including parcels 041, 043, 044 with approvals and entitlements for a 690 lot subdivision. Given that permitted use of the subject is for MDR (Medium Density Residential) zoning, the highest and best use as improved/proposed is for Medium Density Residential. IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address South Side of Roberta Rd alignment West side of Road 52 North SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99301 99352 99338 99320 99301 County Franklin Franklin Benton Benton Benton Franklin APN 114-330-42 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 PHYSICAL INFORMATION Acres 40.90 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Med Density Res Single Family Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 $/Acre $153,294 $39,184 $22,915 $30,227 $19,500 IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -South Side of Clark East of Road 68 North, Pasco, WA -40.9 1,781,604 - No. 1 3.4 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $119,569 No. 2 9.7 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 3 11.4 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 17.7 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $30,529 No. 5 9.3 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $19,890 - IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address South Side of Roberta Rd alignment West side of Road 52 North SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco APN 114-330-42 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 Acres 40.90 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Med Density Res R-1 Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Price/Acre $153,294 $39,184 $22,915 $30,227 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale -25%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹4%10%1%1%2% Subtotal Transactional Adj Price $119,569 $43,103 $23,144 $30,529 $19,890 PROPERTY ADJUSTMENTS Location Similar Similar Inferior Inferior Inferior Size Similar Larger Smaller Larger Similar Exposure Similar Similar Similar Similar Similar Access Superior Similar Similar Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Superior Superior Similar Superior Similar Zoning Inferior Similar Inferior Inferior Inferior TOTAL ADJUSTED PRICE $119,569 $43,103 $23,144 $30,529 $19,890 STATISTICS UNADJUSTED ADJUSTED LOW $19,500 $19,890 HIGH $153,294 $119,569 MEDIAN $30,227 $30,529 AVERAGE $53,024 $47,247 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Superior/Acre adjusted) required a total downward transaction adjustment of -21%. We applied a market conditions adjustment for stronger market conditions in 2024. This sale demonstrates the impact of residential entitlements and approvals with utilities in place. We adjusted downward for the subject's lack of utilities at 25%. This comparable required a total upward adjustment of for property characteristics. Site has superior access and site utility. The moderate level of gross adjustments r equired for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar medium density zoning without a commercial portion. The location and access is similar but the utilities were more proximate compared to the subject. The moderate level of gross adjustments required for this comparable indicates that it can be ad equately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and superior access. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and inferior low-density zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. We also considered the recent sales price of the subject at $77,175 per acre. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $153,294 -21%$119,569 Superior PRIMARY 2 $39,184 10%$43,103 Similar PRIMARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $30,227 1%$30,529 Inferior SECONDARY 5 $19,500 2%$19,890 Inferior SECONDARY LOW $19,890 AVERAGE $47,247 HIGH $119,569 MEDIAN $30,529 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 40.90 x $70,000 =$2,860,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address South Side of Roberta Rd alignment West side of Road 52 North NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 114-330-42 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 40.90 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -South Side of Clark East of Road 68 North, Pasco, WA -40.9 1,781,604 - No. 1 9.7 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 2 3.4 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 81.1 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 57.3 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 4.4 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address South Side of Roberta Rd alignment West side of Road 52 North NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 114-330-42 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 40.90 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹10%4%4%5%15% Subtotal Transactional Adj Price $43,103 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Similar Larger Similar Larger Exposure Similar Similar Similar Similar Similar Access Superior Superior Superior Superior Superior Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Inferior Superior Superior Superior Utilities Similar Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $43,103 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $43,103 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,701 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. Adjustments are offsetting with larger size (downward) and superior access (downward). The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is smaller requiring downward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior access and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied up on for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and superior access and zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and superior access and zoning. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $43,103 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,701/Acre. Based on the results of the preceding analysis, Comparable 1 (Inferior/Acre adjusted) and Comparable 2 (Superior/Acre adjusted) are given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-042 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 10%$43,103 Inferior PRIMARY 2 $153,294 -16%$127,541 Superior PRIMARY 3 $122,289 -16%$101,745 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY 5 $56,228 15%$64,662 Superior SECONDARY LOW $43,103 AVERAGE $85,701 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 40.90 x $100,000 =$4,090,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,230,000 $/ Acre $30,073.35 LAND VALUATION Parcel with LID $4,090,000 Value/Acre $100,000.00 Parcel without LID $2,860,000 Value/Acre $69,926.65 IPARCEL 114-330-041 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.290674 Longitude -119.165728 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 41.23 1,795,979 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 41.23 1,795,979 Topography Level at street grade Shape Rectangular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low Density Residential (LDR) 114-330-041 South Side of Roberta Road alignment East of Road Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,230,000 $/ Acre $29,832.65 LAND VALUATION Parcel with LID $4,120,000 Value/Acre $99,927.24 Parcel without LID $2,890,000 Value/Acre $70,094.59 IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 114-330-041 PARCEL 114-330-041 PARCEL 114-330-041 PARCEL 114-330-041 PARCEL 114-330-041 PARCEL 114-330-041 IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject is a 41.23-acre site at South Side of Roberta Road alignment East of Road 60 North alignment in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-041. The legal description of the subject property is as follows: PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Strizhak's Haven Ranch LLC. who acquired title to the property on July 24, 2024 as land for $2,886,100 or $70,000 per acre. IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Three-Year Sales History This property appears to have been under private ownership prior to 2024 with an agricultural use, and has received preliminary plat approval for a 690 -lot subdivision. Given development in the area, the parcel was consolidated with three other parcels (042, 043, and 044) in order to receive approvals for the 690-lot subdivision. VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 1,795,979 SF (41.23 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as only fair. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Dirt Access. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 41.23 1,795,979 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 41.23 1,795,979 Shape Rectangular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities LID will make available to site 114-330-041 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Dirt Access one-way one-lane connector street ✓ Frontage The subject has no improved street frontage for property access. IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Exposure The subject has average exposure, as it is located along a connector street. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a connector street. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is currently planned for the development of a medium-density residential subdivision with approvals and entitlement underway as part of a larger, multi-parcel site with approvals for 690 lot subdivision. The impact of the LID will be greater for this site because we assume the development will progress in the near future. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Low Density Residential (LDR) Permitted Uses Current Use Agricultural Land in the path of future residential development. Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s LDR (Low Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is desirable for single-family development. Of the outright permitted uses, physical and locational features best support develop a low-density residential project based on future demand. for the site’s highest and best use as- vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a low density residential project based on future demand.. AS-IMPROVED ANALYSIS The subject is currently planned for a 690-lot medium-density residential subdivision as a component of a larger site including parcels 042, 043, 044 with approvals and entitlements for a 690 lot subdivision. Given that permitted use of the subject is for MDR (Medium Density Residential) zoning, the highest and best use as improved/proposed is for Medium Density Residential. IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address South Side of Roberta Road alignment East of Road 60 North alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99301 99352 99338 99320 99301 County Franklin Franklin Benton Benton Benton Franklin APN 114-330-041 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 PHYSICAL INFORMATION Acres 41.23 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Med Density Res Single Family Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 $/Acre $153,294 $39,184 $22,915 $30,227 $19,500 IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -South Side of Roberta Road alignment East of Road 60 North alignment, Pasco, WA-41.2 1,795,979 - No. 1 3.7 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $119,569 No. 2 9.8 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 3 11.3 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 18.1 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $30,529 No. 5 9.7 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $19,890 - IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address South Side of Roberta Road alignment East of Road 60 North alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco APN 114-330-041 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 Acres 41.23 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Med Density Res R-1 Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Price/Acre $153,294 $39,184 $22,915 $30,227 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale -25%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹4%10%1%1%2% Subtotal Transactional Adj Price $119,569 $43,103 $23,144 $30,529 $19,890 PROPERTY ADJUSTMENTS Location Similar Similar Inferior Inferior Inferior Size Similar Larger Smaller Larger Similar Exposure Similar Similar Similar Similar Similar Access Superior Similar Similar Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Superior Superior Similar Superior Similar Zoning Inferior Similar Inferior Inferior Inferior TOTAL ADJUSTED PRICE $119,569 $43,103 $23,144 $30,529 $19,890 STATISTICS UNADJUSTED ADJUSTED LOW $19,500 $19,890 HIGH $153,294 $119,569 MEDIAN $30,227 $30,529 AVERAGE $53,024 $47,247 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Superior/Acre adjusted) required a total downward transaction adjustment of -21%. We applied a market conditions adjustment for stronger market conditions in 2024. This sale demonstrates the impact of residential entitlements and approvals with utilities in place. We adjusted downward for the subject's lack of utilities at 25%. This comparable required a total upward adjustment of for property characteristics. Site has superior access and site utility. The moderate level of gross adjustments r equired for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar medium density zoning. The location and access is similar but the utilities were more proximate compared to the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and low density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and superior access. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and inferior low-density zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. We also considered the recent sales price of the subject at $70,000 per acre. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $153,294 -21%$119,569 Superior PRIMARY 2 $39,184 10%$43,103 Similar PRIMARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $30,227 1%$30,529 Inferior SECONDARY 5 $19,500 2%$19,890 Inferior SECONDARY LOW $19,890 AVERAGE $47,247 HIGH $119,569 MEDIAN $30,529 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 41.23 x $70,000 =$2,890,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address South Side of Roberta Road alignment East of Road 60 North alignment NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 114-330-041 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 41.23 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -South Side of Roberta Road alignment East of Road 60 North alignment, Pasco, WA-41.2 1,795,979 - No. 1 9.8 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 2 3.7 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 81.7 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 57.7 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 3.9 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address South Side of Roberta Road alignment East of Road 60 North alignment NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 114-330-041 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 41.23 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹10%4%4%5%15% Subtotal Transactional Adj Price $43,103 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Similar Larger Similar Larger Exposure Similar Similar Similar Similar Similar Access Superior Superior Superior Superior Superior Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Inferior Superior Superior Superior Utilities Similar Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $43,103 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $43,103 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,701 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. Adjustments are offsetting with larger size (downward) and superior access (downward). The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is smaller requiring downward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior access and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied up on for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and superior access and zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and superior access and zoning. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $43,103 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,701/Acre. Based on the results of the preceding analysis, Comparable 1 (Inferior/Acre adjusted) and Comparable 2 (Superior/Acre adjusted) are given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-041 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 10%$43,103 Inferior PRIMARY 2 $153,294 -16%$127,541 Superior PRIMARY 3 $122,289 -16%$101,745 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY 5 $56,228 15%$64,662 Superior SECONDARY LOW $43,103 AVERAGE $85,701 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 41.23 x $100,000 =$4,120,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,230,000 $/ Acre $29,832.65 LAND VALUATION Parcel with LID $4,120,000 Value/Acre $99,927.24 Parcel without LID $2,890,000 Value/Acre $70,094.59 IPARCEL 114-330-031 DENTIFICATION OF APPRAISAL ASSIGNMENT TABLE OF CONTENTS LAS240237 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.296312 Longitude -119.173518 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 158.19 6,890,756 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 158.19 6,890,756 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low Density Residential (LDR) 114-330-031 South Side of Clark East of Road 68 North Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $3,170,000 $/ Acre $20,039.19 LAND VALUATION Parcel with LID $7,120,000 Value/Acre $45,009.17 Parcel without LID $3,950,000 Value/Acre $24,969.97 IPARCEL 114-330-031 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 PARCEL 114-330-031 PARCEL 114-330-031 PARCEL 114-330-031 PARCEL 114-330-031 PARCEL 114-330-031 PARCEL 114-330-031 IPARCEL 114-330-031 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 PROPERTY IDENTIFICATION The subject is a 158.19-acre site at South Side of Clark East of Road 68 North in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-031. The legal description of the subject property is as follows: PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of J-14, LLC. who acquired title to the property on December 27, 2022 as land for an undisclosed amount. Three-Year Sales History This sale appears to have been under private ownership and transferred in 2022 for an undisclosed amount. The property has yet to be improved and the future zoning map allows for low density residential. VALUE SCENARIOS As-Is Value (Before and After LID) The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 S PARCEL 114-330-031 ITE DESCRIPTION TABLE OF CONTENTS LAS240237 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 6,890,756 SF (158.19 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Clark Rd. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a minor arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 158.19 6,890,756 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 158.19 6,890,756 Shape Irregular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 114-330-031 Street Improvements Street Direction No. Lanes Street Type Cur b s Side w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Clark Rd Primary Street two-way two-lane minor arterial ✓ Frontage The subject has adequate frontage for property access. SPARCEL 114-330-031 CONTINUED LAS240237 Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a minor arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-031 TABLE OF CONTENTS LAS240237 PLAT MAP IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 ZONING MAP IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 FLOOD MAP PARCEL 114-330-031 MARKET ANALYSIS TABLE OF CONTENTS LAS240237 ZONING ANALYSIS Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is not currently planned for development but could support low to medium residential development within the next few years. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Low Density Residential (LDR) Permitted Uses Current Use Irrigated Agricultural use and is in the path of future residential development. Agricultural use may continue as either a nonconforming use of via an Unclassified Use Permit. Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 114-330-031 TABLE OF CONTENTS LAS240237 HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s LDR (Low Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is desirable for single- family development. Of the outright permitted uses, physical and locational features best support develop a low density residential project based on future demand. for the site’s highest and best use as-vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be development of a low density residential project based on future demand. IPARCEL 114-330-031 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 11 INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address South Side of Clark East of Road 68 North 661 Sun Harbor Dr NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Burbank Kennewick Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99323 99352 99338 99320 99301 County Franklin Walla Walla Benton Benton Benton Franklin APN 114-330-031 Portion 320919330004 Multiple Retired 127881000018 134061000002001 123-220-102 PHYSICAL INFORMATION Acres 158.19 45.00 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Ag Single Family Ag Res Res SALE INFORMATION Date 10/3/2024 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $475,000 $15,345,000 $500,000 $1,800,000 $631,800 Analysis Price $475,000 $15,345,000 $500,000 $1,800,000 $631,800 $/Acre $10,556 $39,184 $22,915 $30,227 $19,500 IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -South Side of Clark East of Road 68 North, Pasco, WA -158.2 6,890,756 - No. 1 16.1 Miles 661 Sun Harbor Dr, Burbank , WA 10/3/2024 45.0 $10,556 No. 2 9.7 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 3 11.4 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 17.7 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $30,529 No. 5 9.3 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $19,890 - IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address South Side of Clark East of Road 68 North 661 Sun Harbor Dr NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Burbank Kennewick Kennewick Benton City Pasco APN 114-330-031 Portion 320919330004 Multiple Retired 127881000018 134061000002001 123-220-102 Acres 158.19 45.00 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Ag R-1 Ag Res Res SALE INFORMATION Date 10/3/2024 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $475,000 $15,345,000 $500,000 $1,800,000 $631,800 Price/Acre $10,556 $39,184 $22,915 $30,227 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%10%1%1%2% Subtotal Transactional Adj Price $10,556 $43,103 $23,144 $30,529 $19,890 PROPERTY ADJUSTMENTS Location Inferior Similar Inferior Inferior Inferior Size Similar Larger Smaller Smaller Smaller Exposure Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Inferior Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Superior Similar Similar Similar Zoning Inferior Superior Inferior Inferior Inferior TOTAL ADJUSTED PRICE $10,556 $43,103 $23,144 $30,529 $19,890 STATISTICS UNADJUSTED ADJUSTED LOW $10,556 $10,556 HIGH $39,184 $43,103 MEDIAN $22,915 $23,144 AVERAGE $24,476 $25,444 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This agricultural land sale has inferior location, access and potential for low density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar medium density zoning without a commercial portion. The location and access is similar but the utilities were more proximate compared to the subject. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indic ator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall, this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $10,556 0%$10,556 Inferior SECONDARY 2 $39,184 10%$43,103 Superior PRIMARY 3 $22,915 1%$23,144 Inferior PRIMARY 4 $30,227 1%$30,529 Inferior PRIMARY 5 $19,500 2%$19,890 Inferior SECONDARY LOW $10,556 AVERAGE $25,444 HIGH $43,103 MEDIAN $23,144 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 158.19 x $25,000 =$3,950,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address South Side of Clark East of Road 68 North NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 114-330-031 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 158.19 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Entitled No No No No No No Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -South Side of Clark East of Road 68 North, Pasco, WA -158.2 6,890,756 - No. 1 9.7 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 2 3.4 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 81.1 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 57.3 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 4.4 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address South Side of Clark East of Road 68 North NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 114-330-031 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 158.19 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹10%4%4%5%15% Subtotal Transactional Adj Price $43,103 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Smaller Smaller Smaller Smaller Exposure Similar Similar Similar Similar Similar Access Similar Similar Superior Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Similar Superior Superior Superior Utilities Similar Similar Similar Similar Similar Entitled Superior Superior Superior Superior Superior Approvals Superior Superior Superior Superior Superior TOTAL ADJUSTED PRICE $43,103 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $43,103 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,701 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Similar/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. Adjustments are offsetting with larger size (downward) and inferior zoning (upward). The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary con sideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is smaller requiring downward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior access, smaller size, and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequ ately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicabi lity for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicabi lity for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $43,103 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,701/Acre. Based on the results of the preceding analysis, Comparable 1 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-031 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 10%$43,103 Similar PRIMARY 2 $153,294 -16%$127,541 Superior SECONDARY 3 $122,289 -16%$101,745 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY 5 $56,228 15%$64,662 Superior SECONDARY LOW $43,103 AVERAGE $85,701 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 158.19 x $45,000 =$7,120,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $3,170,000 $/ Acre $20,039.19 LAND VALUATION Parcel with LID $7,120,000 Value/Acre $45,009.17 Parcel without LID $3,950,000 Value/Acre $24,969.97 IPARCEL 11 5-330-054 TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.286173 Longitude -119.174037 Number Of Parcels 1 Assessor Parcel Total Taxable Value $858,700 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 6.19 269,636 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 6.19 269,636 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Medium Density Residential (MDR) 114-330-054 N Side of Burns Road East of Convention Drive Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $250,000 $/ Acre $40,387.72 LAND VALUATION Parcel with LID $870,000 Value/Acre $140,549.27 Parcel without LID $620,000 Value/Acre $100,161.55 IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 114-330-054 PARCEL 114-330-054 PARCEL 114-330-054 PARCEL 114-330-054 PARCEL 114-330-054 PARCEL 114-330-054 IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject is a 6.19-acre site at N Side of Burns Road East of Convention Drive in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-054. The legal description of the subject property is as follows: PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Big Sky Developers who three parcels 052, 053 ,054 in one transaction for $3,358,400 or $80,000 per acre. IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Three-Year Sales History This sale appears to have been under private ownership and transferred in October 2022 for $80,000 / acre. The property has yet to be redeveloped and is currently an agricultural use. The future zoning map allows for medium density residential development. VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 269,636 SF (6.19 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Burns Road. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 6.19 269,636 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 6.19 269,636 Shape Irregular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 114-330-054 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Burns Road Secondary Streettwo-way two-lane minor arterial ✓ Frontage The subject has adequate frontage for property access. IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Exposure The subject has average exposure, as it is located along a minor arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a minor arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING ANALYSIS Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is not currently planned for development but could support low to medium residential development within the next few years. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. The as vacant premise allows for the appraiser to determine the highest and best use without regard to any improvements. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s MDR (Medium Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is desirable for single- ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Medium Density Residential (MDR) Permitted Uses Current Use Agricultural Land in the path of future residential development. Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES family development. Of the outright permitted uses, physical and locational features best support develop a medium density residential project based on future demand. for the site’s highest and best use as -vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a medium density residential project based on future demand. AS-IMPROVED ANALYSIS The subject is currently an agricultural use and is in the path of residential development. The highest and best use as improved is for future medium density residential development. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Low Density Residential Address N Side of Burns Road East of Convention Drive 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 6907 Kau Trail City Pasco Burbank Pasco Kennewick Pasco Pasco State WA WA WA WA WA WA Zip 99301 99323 99301 99338 99301 99301 County Franklin Walla Walla Franklin Benton Franklin Franklin APN 114-330-054 Portion 320919330004 110175061 127881000018 110175061 115-130-046 PHYSICAL INFORMATION Acres 6.19 45.00 5.00 21.82 4.78 10.00 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning MDR Ag Single Family Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 12/16/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $475,000 $400,000 $500,000 $210,444 $1,750,000 Analysis Price $475,000 $400,000 $500,000 $210,444 $1,750,000 $/Acre $10,556 $80,000 $22,915 $44,026 $175,000 IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -N Side of Burns Road East of Convention Drive, Pasco, WA -6.2 269,636 - No. 1 16.0 Miles 661 Sun Harbor Dr, Burbank , WA 10/3/2024 45.0 $10,556 No. 2 10.3 Miles 502 Green Road, Pasco, WA 7/11/2024 5.0 $80,000 No. 3 10.8 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 10.7 Miles 781 Decker Rd, Pasco, WA 3/27/2024 4.8 $44,906 No. 5 0.5 Miles 6907 Kau Trail, Pasco, WA 12/16/2022 10.0 $185,500 - IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Low Density Residential Address N Side of Burns Road East of Convention Drive 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 6907 Kau Trail City Pasco Burbank Pasco Kennewick Pasco Pasco APN 114-330-054 Portion 320919330004 110175061 127881000018 110175061 115-130-046 Acres 6.19 45.00 5.00 21.82 4.78 10.00 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning MDR Ag R-1 Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 12/16/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $475,000 $400,000 $500,000 $210,444 $1,750,000 Price/Acre $10,556 $80,000 $22,915 $44,026 $175,000 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%0%1%2%6% Subtotal Transactional Adj Price $10,556 $80,000 $23,144 $44,906 $185,500 PROPERTY ADJUSTMENTS Location Inferior Similar Inferior Inferior Similar Size Larger Similar Larger Similar Larger Exposure Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Inferior Inferior Similar Similar Similar TOTAL ADJUSTED PRICE $10,556 $80,000 $23,144 $44,906 $185,500 STATISTICS UNADJUSTED ADJUSTED LOW $10,556 $10,556 HIGH $175,000 $185,500 MEDIAN $44,026 $44,906 AVERAGE $66,499 $68,821 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This agricultural land sale has inferior location, access and potential for low density residential zoning The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This sale has low density zoning as a single-family home. The location and access is similar but the utilities are inferior with no access to city water and sewer. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and larger site area. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a v alue indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and access. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and access with similar zoning potential. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $10,556 0%$10,556 Inferior SECONDARY 2 $80,000 0%$80,000 Similar PRIMARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $44,026 2%$44,906 Inferior SECONDARY 5 $175,000 6%$185,500 Inferior PRIMARY LOW $10,556 AVERAGE $68,821 HIGH $185,500 MEDIAN $44,906 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 6.19 x $100,000 =$620,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Residential DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address N Side of Burns Road East of Convention Drive 6907 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake State WA WA WA WA WA Zip 99301 99301 99301 99301 98837 County Franklin Franklin Franklin Franklin Grant APN 114-330-054 115-130-046 115-210-038, 115- 210-061 113-130-450 91121653 PHYSICAL INFORMATION Acres 6.19 10.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning MDR Single Family Med Density Res Formerly AP-20 LI Entitled Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes SALE INFORMATION Date 12/16/2022 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $1,750,000 $7,260,000 $3,076,800 $3,813,242 Analysis Price $1,750,000 $7,260,000 $3,076,800 $3,813,242 $/Acre $175,000 $153,294 $56,228 $87,100 IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -N Side of Burns Road East of Convention Drive, Pasco, WA -6.2 269,636 - No. 1 0.5 Miles 6907 Kau Trail, Pasco, WA 12/16/2022 10.0 $192,500 No. 2 3.3 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 4.3 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $61,851 No. 4 58.0 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 - - IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Residential DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address N Side of Burns Road East of Convention Drive 6907 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake APN 114-330-054 115-130-046 115-210-038, 115- 210-061 113-130-450 91121653 Acres 6.19 10.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning MDR Single Family Med Density Res Formerly AP-20 LI Utilities Yes Partial Yes Yes Yes Entitled No No Yes Yes Yes Approvals No No Yes Yes Yes SALE INFORMATION Date 12/16/2022 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $1,750,000 $7,260,000 $3,076,800 $3,813,242 Price/Acre $175,000 $153,294 $56,228 $87,100 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0% Financing 0%0%0%0% Conditions of Sale 0%-20%0%0% Expenditures After the Sale 0%0%0%0% Market Conditions¹10%4%10%5% Subtotal Transactional Adj Price $192,500 $127,541 $61,851 $91,455 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Size Larger Larger Larger Larger Exposure Similar Similar Similar Similar Access Similar Similar Superior Similar Shape Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Zoning Similar Superior Superior Superior Utilities Inferior Similar Similar Similar Entitled Similar Superior Superior Superior Approvals Similar Superior Superior Superior TOTAL ADJUSTED PRICE $192,500 $127,541 $61,851 $91,455 STATISTICS UNADJUSTED ADJUSTED LOW $56,228 $61,851 HIGH $175,000 $192,500 MEDIAN $120,197 $109,498 AVERAGE $117,906 $118,337 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Similar/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics.. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is larger requiring upward consideration and has entitlements with utilities at the site.. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. The property has superior access, larger size, and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a larger site. It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $61,851 to $192,500/Acre, with a median of $109,498/Acre and an average of $118,337/Acre. Based on the results of the preceding analysis, Comparable 1 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $175,000 10%$192,500 Similar PRIMARY 2 $153,294 -16%$127,541 Superior SECONDARY 3 $56,228 10%$61,851 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY LOW $61,851 AVERAGE $118,337 HIGH $192,500 MEDIAN $109,498 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 6.19 x $140,000 =$870,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-054 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $250,000 $/ Acre $40,387.72 LAND VALUATION Parcel with LID $870,000 Value/Acre $140,549.27 Parcel without LID $620,000 Value/Acre $100,161.55 IPARCEL 114-330-053 TABLE OF CONTENTS LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.286289 Longitude -119.177495 Number Of Parcels 1 Assessor Parcel Total Taxable Value $1,585,400 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 6.03 262,667 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 6.03 262,667 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Medium Density Residential (MDR) 114-330-053 NEC of Burns Road & Convention Drive alignment Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $240,000 $/ Acre $39,801.00 LAND VALUATION Parcel with LID $840,000 Value/Acre $139,303.48 Parcel without LID $600,000 Value/Acre $99,502.49 IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 114-330-053 PARCEL 114-330-053 PARCEL 114-330-053 PARCEL 114-330-053 PARCEL 114-330-053 PARCEL 114-330-053 IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject is a 6.03-acre site at NEC of Burns Road & Convention Drive alignment in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-053. The legal description of the subject property is as follows: PROPERTY SALES HISTORY Current Owner The subject title is currently recorded in the name of Big Sky Developers who three parcels 052, 053 ,054 in one transaction for $3,358,400 or $80,000 per acre. IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Three-Year Sales History This sale appears to have been under private ownership and transferred in October 2022 for $80,000 per acre. The property was an agricultural use with single family residence and the future zoning map allows for medium density residential development. VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 262,667 SF (6.03 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Burns Road. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 6.03 262,667 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 6.03 262,667 Shape Irregular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 114-330-053 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Burns Road Secondary Streettwo-way two-lane minor arterial ✓ Frontage The subject has adequate frontage for property access. IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Exposure The subject has average exposure, as it is located along a minor arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a minor arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING ANALYSIS Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is not currently planned for development but could support low to medium residential development within the next few years. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. The as vacant premise allows for the appraiser to determine the highest and best use without regard to any improvements. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s MDR (Medium Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is desirable for single- ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Medium Density Residential (MDR) Permitted Uses Current Use Agricultural Land in the path of future residential development. Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES family development. Of the outright permitted uses, physical and locational features best support develop a medium density residential project based on future demand. for the site’s highest and best use as -vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a medium density residential project based on future demand. AS-IMPROVED ANALYSIS The subject is currently an agricultural use with a single family residence and is in the path of residential development. The highest and best use as improved is for future medium density residential development. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Low Density Residential Address NEC of Burns Road & Convention Drive alignment 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 6907 Kau Trail City Pasco Burbank Pasco Kennewick Pasco Pasco State WA WA WA WA WA WA Zip 99301 99323 99301 99338 99301 99301 County Franklin Walla Walla Franklin Benton Franklin Franklin APN 114-330-053 Portion 320919330004 110175061 127881000018 110175061 115-130-046 PHYSICAL INFORMATION Acres 6.03 45.00 5.00 21.82 4.78 10.00 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning MDR Ag Single Family Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 12/16/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $475,000 $400,000 $500,000 $210,444 $1,750,000 Analysis Price $475,000 $400,000 $500,000 $210,444 $1,750,000 $/Acre $10,556 $80,000 $22,915 $44,026 $175,000 IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -NEC of Burns Road & Convention Drive alignment, Pasco, WA -6.0 262,667 - No. 1 16.1 Miles 661 Sun Harbor Dr, Burbank , WA 10/3/2024 45.0 $10,556 No. 2 10.4 Miles 502 Green Road, Pasco, WA 7/11/2024 5.0 $80,000 No. 3 10.7 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 10.9 Miles 781 Decker Rd, Pasco, WA 3/27/2024 4.8 $44,906 No. 5 0.4 Miles 6907 Kau Trail, Pasco, WA 12/16/2022 10.0 $185,500 - IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Low Density Residential Address NEC of Burns Road & Convention Drive alignment 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 6907 Kau Trail City Pasco Burbank Pasco Kennewick Pasco Pasco APN 114-330-053 Portion 320919330004 110175061 127881000018 110175061 115-130-046 Acres 6.03 45.00 5.00 21.82 4.78 10.00 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning MDR Ag R-1 Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 12/16/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $475,000 $400,000 $500,000 $210,444 $1,750,000 Price/Acre $10,556 $80,000 $22,915 $44,026 $175,000 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%0%1%2%6% Subtotal Transactional Adj Price $10,556 $80,000 $23,144 $44,906 $185,500 PROPERTY ADJUSTMENTS Location Inferior Similar Inferior Inferior Similar Size Larger Similar Larger Similar Larger Exposure Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Inferior Inferior Similar Similar Similar TOTAL ADJUSTED PRICE $10,556 $80,000 $23,144 $44,906 $185,500 STATISTICS UNADJUSTED ADJUSTED LOW $10,556 $10,556 HIGH $175,000 $185,500 MEDIAN $44,026 $44,906 AVERAGE $66,499 $68,821 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This agricultural land sale has inferior location, access and potential for low density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This sale has low density zoning as a single-family home. The location and access is similar but the utilities are inferior with no access to city water and sewer. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and larger site area. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a v alue indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and access. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and access with similar zoning potential. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $10,556 0%$10,556 Inferior SECONDARY 2 $80,000 0%$80,000 Similar PRIMARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $44,026 2%$44,906 Inferior SECONDARY 5 $175,000 6%$185,500 Inferior PRIMARY LOW $10,556 AVERAGE $68,821 HIGH $185,500 MEDIAN $44,906 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 6.03 x $100,000 =$600,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Residential DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address NEC of Burns Road & Convention Drive alignment 6907 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake State WA WA WA WA WA Zip 99301 99301 99301 99301 98837 County Franklin Franklin Franklin Franklin Grant APN 114-330-053 115-130-046 115-210-038, 115- 210-061 113-130-450 91121653 PHYSICAL INFORMATION Acres 6.03 10.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning MDR Single Family Med Density Res Formerly AP-20 LI Entitled Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes SALE INFORMATION Date 12/16/2022 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $1,750,000 $7,260,000 $3,076,800 $3,813,242 Analysis Price $1,750,000 $7,260,000 $3,076,800 $3,813,242 $/Acre $175,000 $153,294 $56,228 $87,100 IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -NEC of Burns Road & Convention Drive alignment, Pasco, WA -6.0 262,667 - No. 1 0.4 Miles 6907 Kau Trail, Pasco, WA 12/16/2022 10.0 $192,500 No. 2 3.1 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 4.4 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $61,851 No. 4 58.0 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 - - IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Residential DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address NEC of Burns Road & Convention Drive alignment 6907 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake APN 114-330-053 115-130-046 115-210-038, 115- 210-061 113-130-450 91121653 Acres 6.03 10.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning MDR Single Family Med Density Res Formerly AP-20 LI Utilities Yes Partial Yes Yes Yes Entitled No No Yes Yes Yes Approvals No No Yes Yes Yes SALE INFORMATION Date 12/16/2022 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $1,750,000 $7,260,000 $3,076,800 $3,813,242 Price/Acre $175,000 $153,294 $56,228 $87,100 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0% Financing 0%0%0%0% Conditions of Sale 0%-20%0%0% Expenditures After the Sale 0%0%0%0% Market Conditions¹10%4%10%5% Subtotal Transactional Adj Price $192,500 $127,541 $61,851 $91,455 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Size Larger Larger Larger Larger Exposure Similar Similar Similar Similar Access Similar Similar Superior Similar Shape Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Zoning Similar Superior Superior Superior Utilities Inferior Similar Similar Similar Entitled Similar Superior Superior Superior Approvals Similar Superior Superior Superior TOTAL ADJUSTED PRICE $192,500 $127,541 $61,851 $91,455 STATISTICS UNADJUSTED ADJUSTED LOW $56,228 $61,851 HIGH $175,000 $192,500 MEDIAN $120,197 $109,498 AVERAGE $117,906 $118,337 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Similar/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics.. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is larger requiring upward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. The property has superior access, larger size, and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a larger site. It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $61,851 to $192,500/Acre, with a median of $109,498/Acre and an average of $118,337/Acre. Based on the results of the preceding analysis, Comparable 1 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $175,000 10%$192,500 Similar PRIMARY 2 $153,294 -16%$127,541 Superior SECONDARY 3 $56,228 10%$61,851 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY LOW $61,851 AVERAGE $118,337 HIGH $192,500 MEDIAN $109,498 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 6.03 x $140,000 =$840,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-053 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $240,000 $/ Acre $39,801.00 LAND VALUATION Parcel with LID $840,000 Value/Acre $139,303.48 Parcel without LID $600,000 Value/Acre $99,502.49 IPARCEL 114-330-052 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.296685 Longitude -119.186025 Number Of Parcels 1 Assessor Parcel Total Taxable Value $2,688,800 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 29.76 1,296,346 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 29.76 1,296,346 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Medium Density Residential (MDR) 114-330-052 SE Corner Kau Trail Rd & Convention Dr alignment Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 15, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $900,000 $/ Acre $30,241.94 LAND VALUATION Parcel with LID $2,980,000 Value/Acre $100,134.41 Parcel without LID $2,080,000 Value/Acre $69,892.47 IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 114-330-052 PARCEL 114-330-052 PARCEL 114-330-052 PARCEL 114-330-052 PARCEL 114-330-052 PARCEL 114-330-052 IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject is a 29.76-acre site at SE Corner Kau Trail Rd & Convention Dr alignment in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-052. The legal description of the subject property is presented below. IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Big Sky Developers, LLC who acquired title to the property on October 13, 2022 as land for $3,358,400, as recorded in the Franklin County Deed Records. Three-Year Sales History This sale appears to have been under private ownership in 2022 and has yet to be improved; however, the approvals and entitlements for medium density subdivision development is close to being finalized. We believe that the purchase included the two adjacent south parcels for a total acreage of 41.98 acres and purchase price of $80,000 per acre. IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Site Description The subject site consists of 1 parcel. As noted below, the subject site has 1,296,346 SF (29.76 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Convention Dr alignment. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a connector street. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 29.76 1,296,346 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 29.76 1,296,346 Shape Irregular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 114-330-052 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Convention Dr alignment two-way two-lane connector street ✓✓ Frontage The subject has no frontage for property access and is accessible off of a residential street Kau Trail. IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a connector street. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is not currently planned for development but could support medium to high density residential development within the next few years. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Medium Density Residential (MDR) Permitted Uses Current Use Agricultural Use Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include medium to high density single family development with minimal commercial. IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES INTRODUCTION The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s MDR (Medium Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, commercial development and a mixed-use development. Given the subject’s location and surrounding uses, the subject site is desirable for residential development. Of the outright permitted uses, physical and locational features best support develop a medium to high density residential project. for the site’s highest and best use as-vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a medium to high density residential project.. AS-IMPROVED ANALYSIS The subject is currently an agricultural use and the highest and best use as improved is for a for a medium to high density residential use. IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Low Density Residential Single Family Low Density Land Low Density Residential Medium Density Res Address SE Corner Kau Trail Rd & Convention Dr alignment 6907 Kau Trail 781 Decker Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd NEC Burns & Rd 60 N City Pasco Pasco Pasco Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99301 99301 99338 99320 99301 County Franklin Franklin Franklin Benton Benton Franklin APN 114-330-052 115-130-046 110175061 127881000018 134061000002001 114-330-043 PHYSICAL INFORMATION Acres 29.76 10.00 4.78 21.82 59.55 40.77 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Irregular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning MDR Single Family -Ag Res Res SALE INFORMATION Date 12/16/2022 3/27/2024 8/2/2024 5/20/2024 7/27/2023 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $1,750,000 $210,444 $500,000 $1,800,000 $2,996,595 Analysis Price $1,750,000 $210,444 $500,000 $1,800,000 $2,996,595 $/Acre $175,000 $44,026 $22,915 $30,227 $73,500 IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -SE Corner Kau Trail Rd & Convention Dr alignment, Pasco, WA -29.8 1,296,346 - No. 1 0.5 Miles 6907 Kau Trail, Pasco, WA 12/16/2022 10.0 $185,500 No. 2 11.4 Miles 781 Decker Rd, Pasco, WA 3/27/2024 4.8 $44,906 No. 3 11.2 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 17.1 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $30,529 No. 5 1.1 Miles NEC Burns & Rd 60 N, Pasco, WA 7/27/2023 40.8 $76,440 - IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Low Density Residential Single Family Low Density Land Low Density Residential Medium Density Res Address SE Corner Kau Trail Rd & Convention Dr 6907 Kau Trail 781 Decker Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd NEC Burns & Rd 60 N City Pasco Pasco Pasco Kennewick Benton City Pasco APN 114-330-052 115-130-046 110175061 127881000018 134061000002001 114-330-043 Acres 29.76 10.00 4.78 21.82 59.55 40.77 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Irregular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning MDR Single Family R-1 Ag Res Res SALE INFORMATION Date 12/16/2022 3/27/2024 8/2/2024 5/20/2024 7/27/2023 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $1,750,000 $210,444 $500,000 $1,800,000 $2,996,595 Price/Acre $175,000 $44,026 $22,915 $30,227 $73,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹6%2%1%1%4% Subtotal Transactional Adj Price $185,500 $44,906 $23,144 $30,529 $76,440 PROPERTY ADJUSTMENTS Location Similar Inferior Inferior Inferior Similar Size Smaller Smaller Similar Larger Larger Exposure Similar Similar Similar Similar Similar Access Similar Similar Similar Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Inferior Inferior Inferior Inferior Inferior TOTAL ADJUSTED PRICE $185,500 $44,906 $23,144 $30,529 $76,440 STATISTICS UNADJUSTED ADJUSTED LOW $22,915 $23,144 HIGH $175,000 $185,500 MEDIAN $44,026 $44,906 AVERAGE $69,133 $72,104 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/15/24 IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. From our sale research, a minimum 3% to 5% appreciation factor is realized in the sales data. This comparable required a total upward adjustment of for property characteristics. This sale is smaller (downward adjustment) and inferior zoning (upward adjustment). The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. From our sale research, a minimum 3% appreciation factor is realized in the sales data. This comparable required a total upward adjustment of for property characteristics. This sale is inferior in located further from city services and has inferior zoning and smaller size. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and inferior lower density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and low density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 4%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has lower density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $175,000 6%$185,500 Inferior SECONDARY 2 $44,026 2%$44,906 Similar SECONDARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $30,227 1%$30,529 Inferior SECONDARY 5 $73,500 4%$76,440 Inferior PRIMARY LOW $23,144 AVERAGE $72,104 HIGH $185,500 MEDIAN $44,906 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 29.76 x $70,000 =$2,080,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address SE Corner Kau Trail Rd & Convention Dr alignment NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 114-330-052 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 29.76 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Single Family Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -SE Corner Kau Trail Rd & Convention Dr alignment, Pasco, WA -29.8 1,296,346 - No. 1 9.3 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $41,535 No. 2 2.8 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 80.6 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 57.3 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 5.0 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address SE Corner Kau Trail Rd & Convention Dr NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 114-330-052 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 29.76 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning MDR Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹6%4%4%5%15% Subtotal Transactional Adj Price $41,535 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Larger Larger Larger Larger Exposure Similar Similar Similar Similar Similar Access Similar Similar Superior Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Inferior Similar Superior Superior Superior Utilities Similar Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $41,535 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $41,535 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,388 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/15/24 IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. From our sale research, we realized a minimum 3% to 5% appreciation factor for several land sale transactions. This comparable required a total upward adjustment of for property characteristics. Adjustments are offsetting with larger size (downward) and inferior zoning (upward) The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is larger requiring upward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior access, larger size, and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequ ately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is larger in site (upward adjustment). It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and is larger in size (upward adjustments). It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $41,535 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,388/Acre. Based on the results of the preceding analysis, Comparable 1 (Inferior/Acre adjusted), Comparable 2 (Superior/Acre adjusted), Comparable 3 (Superior/Acre adjusted), Comparable 4 (Superior/Acre adjusted) and Comparable 5 (Superior/Acre adjusted) are given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-052 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 6%$41,535 Inferior PRIMARY 2 $153,294 -16%$127,541 Superior PRIMARY 3 $122,289 -16%$101,745 Superior PRIMARY 4 $87,100 5%$91,455 Superior PRIMARY 5 $56,228 15%$64,662 Superior PRIMARY LOW $41,535 AVERAGE $85,388 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 29.76 x $100,000 =$2,980,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 15, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $900,000 $/ Acre $30,241.94 LAND VALUATION Parcel with LID $2,980,000 Value/Acre $100,134.41 Parcel without LID $2,080,000 Value/Acre $69,892.47 IPARCEL 114-330-051 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.290749 Longitude -119.176476 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 40.32 1,756,339 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 40.32 1,756,339 Topography Level at street grade Shape Rectangular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low Density Residential (LDR) 114-330-051 South Side of Deseret Dr alignment East side of Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,210,000 $/ Acre $30,009.92 LAND VALUATION Parcel with LID $4,030,000 Value/Acre $99,950.40 Parcel without LID $2,820,000 Value/Acre $69,940.48 IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 114-330-051 PARCEL 114-330-051 PARCEL 114-330-051 PARCEL 114-330-051 PARCEL 114-330-051 PARCEL 114-330-051 IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject is a 40.32-acre site at South Side of Deseret Dr alignment East side of Convention Dr alignment in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-051. The legal description of the subject property is as follows: IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Big Sky Developers LLC. who acquired title to the property on April 25, 2024 as land for $3,225,600 or $80,000 per acre. Three-Year Sales History This sale appears to have been under private ownership and transferred in 2024. The property has yet to be improved and the future zoning map allows for low density residential. VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 1,756,339 SF (40.32 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as only fair. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Dirt 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 40.32 1,756,339 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 40.32 1,756,339 Shape Rectangular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities LID will make available to site 114-330-051 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Dirt Access one-way one-lane connector street ✓ Frontage The subject has no improved street frontage for property access. IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Access. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a connector street. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a connector street. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is currently planned for development and could support low to medium residential development within the next few years. The developers have submitted the SEPA documentation. The State Environmental Policy Act (SEPA) process identifies and analyzes environmental impacts associated with governmental decisions. These decisions may be related to issuing permits for private projects, constructing public facilities, or adopting regulations, policies, and plans. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Low Density Residential (LDR) Permitted Uses Current Use Agricultural use in the path of future residential development. Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s LDR (Low Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is desirable for single-family development. Of the outright permitted uses, physical and locational features best support develop a low-density residential project based on future demand. for the site’s highest and best use as- vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a low density residential project based on future demand. AS-IMPROVED ANALYSIS The subject is currently an agricultural use and the highest and best use as improved is for a for a low density residential use. IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address South Side of Deseret Dr alignment East side of Convention Dr alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99301 99352 99338 99320 99301 County Franklin Franklin Benton Benton Benton Franklin APN 114-330-051 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 PHYSICAL INFORMATION Acres 40.32 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Med Density Res Single Family Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 $/Acre $153,294 $39,184 $22,915 $30,227 $19,500 IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -South Side of Deseret Dr alignment East side of Convention Dr alignment, Pasco, WA-40.3 1,756,339 - No. 1 3.2 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $119,569 No. 2 9.4 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 3 11.0 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 17.6 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $30,529 No. 5 9.7 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $19,890 - IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address South Side of Deseret Dr alignment East side of Convention Dr alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco APN 114-330-051 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 Acres 40.32 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Med Density Res R-1 Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Price/Acre $153,294 $39,184 $22,915 $30,227 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale -25%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹4%10%1%1%2% Subtotal Transactional Adj Price $119,569 $43,103 $23,144 $30,529 $19,890 PROPERTY ADJUSTMENTS Location Similar Similar Inferior Inferior Inferior Size Similar Larger Smaller Larger Smaller Exposure Similar Similar Similar Similar Similar Access Superior Superior Similar Superior Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Superior Superior Similar Superior Similar Zoning Inferior Similar Inferior Inferior Inferior TOTAL ADJUSTED PRICE $119,569 $43,103 $23,144 $30,529 $19,890 STATISTICS UNADJUSTED ADJUSTED LOW $19,500 $19,890 HIGH $153,294 $119,569 MEDIAN $30,227 $30,529 AVERAGE $53,024 $47,247 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Superior/Acre adjusted) required a total downward transaction adjustment of -21%. We applied a market conditions adjustment for stronger market conditions in 2024. This sale demonstrates the impact of residential entitlements and approvals with utilities in place. We adjusted downward for the subject's lack of utilities at 25%. This comparable required a total upward adjustment of for property characteristics. Site has superior access and site utility. The moderate level of gross adjustments r equired for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar medium density zoning without a commercial portion. The location and access is similar but the utilities were more proximate compared to the subject. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and low density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and superior access. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and low density zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. We also gave considerable weight to the recent sales price of the subject at $80,000 per acre. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $153,294 -21%$119,569 Superior PRIMARY 2 $39,184 10%$43,103 Similar PRIMARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $30,227 1%$30,529 Inferior SECONDARY 5 $19,500 2%$19,890 Inferior SECONDARY LOW $19,890 AVERAGE $47,247 HIGH $119,569 MEDIAN $30,529 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 40.32 x $70,000 =$2,820,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address South Side of Deseret Dr alignment East side of Convention Dr alignment NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 114-330-051 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 40.32 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -South Side of Deseret Dr alignment East side of Convention Dr alignment, Pasco, WA-40.3 1,756,339 - No. 1 9.4 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 2 3.2 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 81.2 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 57.7 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 4.4 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address South Side of Deseret Dr alignment East side of Convention Dr NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 114-330-051 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 40.32 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹10%4%4%5%15% Subtotal Transactional Adj Price $43,103 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Similar Larger Similar Larger Exposure Similar Similar Similar Similar Similar Access Superior Superior Superior Superior Superior Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Inferior Superior Superior Superior Utilities Similar Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $43,103 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $43,103 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,701 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. Adjustments are offsetting with larger size (downward) and superior access (downward). The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is smaller requiring downward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior access and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied up on for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and superior access and zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and superior access and zoning. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $43,103 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,701/Acre. Based on the results of the preceding analysis, Comparable 1 (Inferior/Acre adjusted) and Comparable 2 (Superior/Acre adjusted) are given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-330-051 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 10%$43,103 Inferior PRIMARY 2 $153,294 -16%$127,541 Superior PRIMARY 3 $122,289 -16%$101,745 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY 5 $56,228 15%$64,662 Superior SECONDARY LOW $43,103 AVERAGE $85,701 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 40.32 x $100,000 =$4,030,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $1,210,000 $/ Acre $30,009.92 LAND VALUATION Parcel with LID $4,030,000 Value/Acre $99,950.40 Parcel without LID $2,820,000 Value/Acre $69,940.48 IPARCEL 114-250-018 DENTIFICATION OF APPRAISAL ASSIGNMENT TABLE OF CONTENTS LAS240237 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.289965 Longitude -119.152373 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 129.09 5,623,160 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 129.09 5,623,160 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low Density Residential (LDR) 114-250-018 SW Corner Roberta Rd & Road 44 North alignment Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $3,220,000 $/ Acre $24,943.84 LAND VALUATION Parcel with LID $10,970,000 Value/Acre $84,979.47 Parcel without LID $7,750,000 Value/Acre $60,035.63 I IPARCEL 114-250-018 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 COMPARABLE KEY I IPARCEL 114-250-018 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 PARCEL 114-250-018 PARCEL 114-250-018 PARCEL 114-250-018 PARCEL 114-250-018 PARCEL 114-250-018 PARCEL114-250-018 I IPARCEL 114-250-018 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 PROPERTY IDENTIFICATION The subject is a 129.09-acre site at SW Corner Roberta Rd & Road 44 North alignment in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-250-018. PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Farm 2005 LLC with no record of the original purchase. Three-Year Sales History This sale appears to have been under private ownership prior to 2005 and has yet to be improved to the uses allowed by the future zoning map, which allows low density residential. The property ownership is in the process of seeking approvals and entitlements for development of low density subdivision VALUE SCENARIOS As-Is Value (Before and After LID) The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 S PARCEL 114-250-018 ITE DESCRIPTION TABLE OF CONTENTS LAS240237 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 5,623,160 SF (129.09 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Road 44 North alignment. Major transportation arterials within proximity to the subject include Burns Rd, Clark Rd and N Glade Rd, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a connector street. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 129.09 5,623,160 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 129.09 5,623,160 Shape Irregular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 114-250-018 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Road 44 North alignment Secondary Street two-way two-lane connector street ✓✓ Frontage The subject has adequate frontage for residential interior property access. SPARCEL 114-250-018 CONTINUED LAS240237 Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a connector street. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing use, which is agricultural. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. I SPARCEL 114-250-018 TABLE OF CONTENTS LAS240237 PLAT MAP I PARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 ZONING MAP I PARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 FLOOD MAP SPARCEL 114-250-018 MARKET ANALYSIS TABLE OF CONTENTS LAS240237 ZONING ANALYSIS Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is a permitted use that could be rebuilt subject to an Unclassified Use Permit. The subject is currently planned for development of a low-density residential subdivision with approvals and entitlement underway. The impact of the LID will be greater for this site because we assume the development will progress in the near future based on the availability of sewer from the LID. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Low Density Residential (LDR) Permitted Uses Current Use Agricultural Land Is Current Use Legally Permitted?Yes, per Unclassified Use Permit Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. I PARCEL 114-250-018 TABLE OF CONTENTS LAS240237 HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s LDR (Low Density Residential) zoning were listed in the Zoning Analysis section. The potential use that meets the requirements of the legal permissibility test is low density residential development. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, agricultural development and public use development. Given the subject’s location and surrounding uses, the subject site is desirable for residential development. Of the outright permitted uses, physical and locational features best support develop a low-density residential project for the site’s highest and best use as-vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a low density residential project. AS-IMPROVED ANALYSIS The subject is currently an agricultural use which is in the path of future residential development and the highest and best use is concluded to be development of a low density residential project. PARCEL 114-250-018 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 12 VALUATION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s agricultural land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address SW Corner Roberta Rd & Road 44 North alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99301 99352 99338 99320 99301 County Franklin Franklin Benton Benton Benton Franklin APN 115-010-032 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 PHYSICAL INFORMATION Acres 129.09 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Med Density Res Single Family Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 $/Acre $153,294 $39,184 $22,915 $30,227 $19,500 IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -SW Corner Roberta Rd & Road 44 North alignment, Pasco, WA -129.1 5,623,160 - No. 1 4.3 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $119,569 No. 2 10.3 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $43,103 No. 3 11.6 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $34,716 No. 4 18.7 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $45,793 No. 5 9.8 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $29,835 - IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID DH Horton Sub Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address SW Corner Roberta Rd & Road 44 North alignment SEQ of Burns Rd & Dent Rd NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Pasco Kennewick Kennewick Benton City Pasco APN 115-010-032 115-210-038, 115- 210-061 Multiple Retired 127881000018 134061000002001 123-220-102 Acres 129.09 47.36 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Med Density Res R-1 Ag Res Res SALE INFORMATION Date 8/9/2023 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $7,260,000 $15,345,000 $500,000 $1,800,000 $631,800 Price/Acre $153,294 $39,184 $22,915 $30,227 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale -25%0%50%50%50% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹4%10%1%1%2% Subtotal Transactional Adj Price $119,569 $43,103 $34,716 $45,793 $29,835 PROPERTY ADJUSTMENTS Location Similar Similar Inferior Inferior Inferior Size Smaller Larger Smaller Smaller Smaller Exposure Similar Similar Similar Similar Similar Access Similar Similar Inferior Similar Inferior Shape Similar Similar Similar Similar Similar Site Utility Rating Superior Sl. Superior Similar Similar Similar Zoning Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $119,569 $43,103 $34,716 $45,793 $29,835 STATISTICS UNADJUSTED ADJUSTED LOW $19,500 $29,835 HIGH $153,294 $119,569 MEDIAN $30,227 $43,103 AVERAGE $53,024 $54,603 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/15/24 IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Superior/Acre adjusted) required a total downward transaction adjustment of -21%. We applied a market conditions adjustment for stronger market conditions in 2024. This comparable required a total upward adjustment of for property characteristics. This sale demonstrates the impact of residential entitlements and approvals with improve of utilities in place. We adjusted downward for the subject's lack of utilities at 25%. The total gross adjustment applied to this comparable was a superior rati ng . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. From our sale research, a minimum 3% appreciation factor is realized in the sales data. This comparable required a total upward adjustment of for property characteristics. This sale has similar medium density zoning without a commercial portion. The location and access is similar but the utilities were more proximate compared to the subject. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 51% for market conditions and lack of entitlements. This comparable required a total upward adjustment of for property characteristics. The total gross adjustment applied to this comparable was an inferior rating. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indic ator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 51% (market conditions and entitlements). This comparable required a total upward adjustment of for property characteristics. The total gross adjustment applied to this comparable was and inferior rating. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 52% for market conditions and lack of entitlements. This comparable required a total upward adjustment of for property characteristics. The total gross adjustment applied to this comparable was an inferior rating. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indic ator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $153,294 -21%$119,569 Superior PRIMARY 2 $39,184 10%$43,103 inferior PRIMARY 3 $22,915 51%$34,716 Inferior PRIMARY 4 $30,227 51%$45,793 Inferior PRIMARY 5 $19,500 52%$29,835 Inferior PRIMARY LOW $29,835 AVERAGE $54,603 HIGH $119,569 MEDIAN $43,103 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 129.09 x $60,000 =$7,750,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address SW Corner Roberta Rd & Road 44 North alignment NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 114-250-018 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 129.09 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -SW Corner Roberta Rd & Road 44 North alignment, Pasco, WA -129.1 5,623,160 - No. 1 10.3 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $41,535 No. 2 4.3 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 82.2 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 57.8 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 3.3 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address SW Corner Roberta Rd & Road 44 North NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 114-250-018 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 129.09 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹6%4%4%5%15% Subtotal Transactional Adj Price $41,535 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Smaller Smaller Smaller Smaller Exposure Similar Similar Similar Similar Similar Access Similar Similar Superior Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Similar Superior Superior Superior Utilities Inferior Similar Similar Similar Similar Entitled Similar Similar Similar Similar Similar Approvals Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $41,535 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $41,535 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,388 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. From our sale research, we realized a minimum 3% to 5% appreciation factor for several land sale transactions. This comparable required a total upward adjustment of for property characteristics. Adjustments are offsetting with larger size (upward) and inferior zoning (upward) The total gross adjustment applied to this comparable was inferior. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is smaller requiring downward consideration and has entitlements with utilities at the site. The total gross adjustment applied to this comparable was superior. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior access, smaller size, and superior commercial zoning. The total gross adjustment applied to this comparable was superior. The moderate level of gross adj ustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The total gross adjustment applied to this comparable was superior. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The total gross adjustment applied to this comparable was superior. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $41,535 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,388/Acre. Based on the results of the preceding analysis, Comparable 1 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 114-250-018 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 6%$41,535 Inferior PRIMARY 2 $153,294 -16%$127,541 Superior PRIMARY 3 $122,289 -16%$101,745 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY 5 $56,228 15%$64,662 Superior SECONDARY LOW $41,535 AVERAGE $85,388 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 129.09 x $85,000 =$10,970,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $3,220,000 $/ Acre $24,943.84 LAND VALUATION Parcel with LID $10,970,000 Value/Acre $84,979.47 Parcel without LID $7,750,000 Value/Acre $60,035.63 S PARCEL 115-010-032 ITE DESCRIPTION TABLE OF CONTENTS LAS240237 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.296685 Longitude -119.186025 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 231.74 10,094,594 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 231.74 10,094,594 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low and Medium Residention and Commercial Corner 115-010-032 SW Corner Clark & Road 68 North Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 15, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $4,640,000 $/ Acre $20,022.44 LAND VALUATION Parcel with LID $9,270,000 Value/Acre $40,001.73 Parcel without LID $4,630,000 Value/Acre $19,979.29 SPARCEL 115-010-032 CONTINUED LAS240237 PARCEL 115-010-032 PARCEL 115-010-032 PARCEL 115-010-032 PARCEL 115-010-032 PARCEL 115-010-032 PARCEL 115-010-032 SPARCEL 115-010-032 CONTINUED LAS240237 PROPERTY IDENTIFICATION The subject is a 231.74-acre agricultural site at SE Corner Clark & Road 68 North in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 115-010-032. The legal description of the subject property is presented below. PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Columbia Waters Farm, LLC. who acquired title to the property on April 26, 2005 as land as recorded in the Franklin County Deed Records. Three-Year Sales History This sale appears to have been under private ownership prior to 2005 and has yet to be improved. The future zoning map allows for mixed use commercial, low and medium density residential. SPARCEL 115-010-032 CONTINUED LAS240237 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 10,094,594 SF (231.74 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from two streets, with the main entrance and primary point of ingress/egress being Road 68 North. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a major arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 231.74 10,094,594 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 231.74 10,094,594 Shape Irregular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 115-010-032 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Road 68 North Primary Street two-way two-lane major arterial ✓✓ Clark Rd Primary Street two-way two-lane major arterial ✓✓ Frontage The subject has adequate frontage for property access. SPARCEL 115-010-032 CONTINUED LAS240237 Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a major arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 115-010-032 TABLE OF CONTENTS LAS240237 PLAT MAP IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 ZONING MAP IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 FLOOD MAP PARCEL 115-010-032 MARKET ANALYSIS TABLE OF CONTENTS LAS240237 INTRODUCTION Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, use of the subject property for commercial agricultural use is permitted as continuation of a nonconforming use and/or pursuant to an unclassified use permit under PMC 25.45.040(6) and 25.200.020(12). The subject is not currently planned for development but could support low to medium residential development within the next few years. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Low and Medium Residential and Commercial Corner (LDR, MDR, C) Permitted Uses Current Use Irrigated commercial agricultural use Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low to medium density single family development with minimal commercial. IPARCEL 115-010-032 TABLE OF CONTENTS LAS240237 HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s LDR, MDR, C (Low and Medium Residential and Commercial Corner) zoning were listed in the Zoning Analysis section. The potential use that meets the requirements of the legal permissibility test is low and medium residential development, with limited commercial at the corner of Road 68 and Clark Road. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, commercial development and mixed-use development. Given the subject’s location and surrounding uses, the subject site is desirable for residential development. Of the outright permitted uses, physical and locational features best support develop a mixed density residential project with potential future commercial for the site’s highest and best use as-vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a mixed density residential project with potential future commercial. AS-IMPROVED ANALYSIS The subject is currently an agricultural use which is in the path of future residential development and the highest and best use is concluded to be development of a mixed density residential project. IPARCEL 115-010-032 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 11 INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address SE Corner Clark & Road 68 North 661 Sun Harbor Dr NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Burbank Kennewick Kennewick Benton City Pasco State WA WA WA WA WA WA Zip 99301 99323 99352 99338 99320 99301 County Franklin Walla Walla Benton Benton Benton Franklin APN 115-010-032 Portion 320919330004 Multiple Retired 127881000018 134061000002001 123-220-102 PHYSICAL INFORMATION Acres 231.74 45.00 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR, MDR, C Ag Single Family Ag Res Res SALE INFORMATION Date 10/3/2024 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $475,000 $15,345,000 $500,000 $1,800,000 $631,800 Analysis Price $475,000 $15,345,000 $500,000 $1,800,000 $631,800 $/Acre $10,556 $39,184 $22,915 $30,227 $19,500 IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -SW Corner Clark & Road 68 North, Pasco, WA -231.7 10,094,594 - No. 1 16.7 Miles 661 Sun Harbor Dr, Burbank , WA 10/3/2024 45.0 $10,556 No. 2 9.3 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $41,535 No. 3 11.2 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 17.1 Miles 23133 W Orcutt Rd, Benton City, WA 5/20/2024 59.6 $30,529 No. 5 9.3 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $19,890 - IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Medium Density Subdivision Low Density Land Low Density Residential Low Density Residential Address SE Corner Clark & Road 68 North 661 Sun Harbor Dr NEC Southgate Way &E Reata Rd 99126 E Bastian Pr SE 23133 W Orcutt Rd 3006-3026 Elm Rd City Pasco Burbank Kennewick Kennewick Benton City Pasco APN 115-010-032 Portion 320919330004 Multiple Retired 127881000018 134061000002001 123-220-102 Acres 231.74 45.00 391.61 21.82 59.55 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR, MDR, C Ag R-1 Ag Res Res SALE INFORMATION Date 10/3/2024 11/10/2022 8/2/2024 5/20/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $475,000 $15,345,000 $500,000 $1,800,000 $631,800 Price/Acre $10,556 $39,184 $22,915 $30,227 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%6%1%1%2% Subtotal Transactional Adj Price $10,556 $41,535 $23,144 $30,529 $19,890 PROPERTY ADJUSTMENTS Location Inferior Similar Inferior Inferior Inferior Size Similar Similar Similar Similar Similar Exposure Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Inferior Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Superior Similar Similar Similar Zoning Inferior Inferior Inferior Inferior Inferior TOTAL ADJUSTED PRICE $10,556 $41,535 $23,144 $30,529 $19,890 STATISTICS UNADJUSTED ADJUSTED LOW $10,556 $10,556 HIGH $39,184 $41,535 MEDIAN $22,915 $23,144 AVERAGE $24,476 $25,131 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/15/24 IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This agricultural land sale has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. From our sale research, a minimum 3% appreciation factor is realized in the sales data. This comparable required a total upward adjustment of for property characteristics. This sale has similar medium density zoning without a commercial portion. The location and access is similar but the utilities were more proximate compared to the subject. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and low-density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall, this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $10,556 0%$10,556 Inferior PRIMARY 2 $39,184 6%$41,535 Similar PRIMARY 3 $22,915 1%$23,144 Inferior PRIMARY 4 $30,227 1%$30,529 Inferior PRIMARY 5 $19,500 2%$19,890 Inferior PRIMARY LOW $10,556 AVERAGE $25,131 HIGH $41,535 MEDIAN $23,144 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 231.74 x $20,000 =$4,630,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address SE Corner Clark & Road 68 North NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco State WA WA WA WA WA WA Zip 99301 99352 99301 98926 98837 99301 County Franklin Benton Franklin Kittitas Grant Franklin APN 115-010-032 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 PHYSICAL INFORMATION Acres 231.74 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR, MDR, C Single Family Med Density Res LI LI Formerly AP-20 Entitled Yes Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 $/Acre $39,184 $153,294 $122,289 $87,100 $56,228 IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -SW Corner Clark & Road 68 North, Pasco, WA -231.7 10,094,594 - No. 1 9.3 Miles NEC Southgate Way &E Reata Rd, Kennewick, WA 11/10/2022 391.6 $41,535 No. 2 2.8 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 80.6 Miles 805 Anderson Rd, Ellensburg, WA 7/13/2023 118.5 5,160,524 $101,745 No. 4 57.3 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 No. 5 5.0 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $64,662 - IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Medium Density Subdivision DH Horton Sub Winco Foods Site Group 14 Tech. Site Reser's Fine Food Site Address SE Corner Clark & Road 68 North NEC Southgate Way &E Reata Rd SEQ of Burns Rd & Dent Rd 805 Anderson Rd 13184 Wheeler Road Northeast 5526 N Capitol Ave City Pasco Kennewick Pasco Ellensburg Moses Lake Pasco APN 115-010-032 Multiple Retired 115-210-038, 115- 210-061 158133, 916833, 698633, 528633, 708633 91121653 113-130-450 Acres 231.74 391.61 47.36 118.47 43.78 54.72 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Irregular Irregular Irregular Generally Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR, MDR, C Single Family Med Density Res LI LI Formerly AP-20 Utilities Yes Partial Yes Yes Yes Yes Entitled No No Yes Yes Yes Yes Approvals No No Yes Yes Yes Yes SALE INFORMATION Date 11/10/2022 8/9/2023 7/13/2023 3/21/2023 6/17/2021 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $15,345,000 $7,260,000 $14,487,500 $3,813,242 $3,076,800 Price/Acre $39,184 $153,294 $122,289 $87,100 $56,228 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%-20%-20%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹6%4%4%5%15% Subtotal Transactional Adj Price $41,535 $127,541 $101,745 $91,455 $64,662 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Similar Size Larger Smaller Smaller Smaller Smaller Exposure Similar Similar Similar Similar Similar Access Similar Similar Superior Similar Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Inferior Similar Superior Superior Superior Utilities Similar Similar Similar Similar Similar Entitled Similar Superior Similar Similar Similar Approvals Similar Superior Similar Similar Similar TOTAL ADJUSTED PRICE $41,535 $127,541 $101,745 $91,455 $64,662 STATISTICS UNADJUSTED ADJUSTED LOW $39,184 $41,535 HIGH $153,294 $127,541 MEDIAN $87,100 $91,455 AVERAGE $91,619 $85,388 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/15/24 IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Similar/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. From our sale research, we realized a minimum 3% appreciation factor for several land sale transactions. This comparable required a total upward adjustment of for property characteristics. Adjustments are offsetting with larger size (downward) and inferior zoning (upward). The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is smaller requiring downward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. The Winco property likely created buyer motivation given the national tenant status. This co mparable required a total upward adjustment of for property characteristics. The property has superior access, smaller size, and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequ ately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicabi lity for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 5 (Superior/Acre adjusted) required a total upward transaction adjustment of 15%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and is a smaller site (downward adjustments). It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicabi lity for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $41,535 to $127,541/Acre, with a median of $91,455/Acre and an average of $85,388/Acre. Based on the results of the preceding analysis, Comparable 1 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 115-010-032 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $39,184 6%$41,535 Similar PRIMARY 2 $153,294 -16%$127,541 Superior SECONDARY 3 $122,289 -16%$101,745 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY 5 $56,228 15%$64,662 Superior SECONDARY LOW $41,535 AVERAGE $85,388 HIGH $127,541 MEDIAN $91,455 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 231.74 x $40,000 =$9,270,000 ¹Cumulative ²Additive Rounded to nearest $10,000 VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 15, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $4,640,000 $/ Acre $20,022.44 LAND VALUATION Parcel with LID $9,270,000 Value/Acre $40,001.73 Parcel without LID $4,630,000 Value/Acre $19,979.29 IPARCEL 11 5-130-055 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.290273 Longitude -119.180959 Number Of Parcels 1 Assessor Parcel Total Taxable Value $478,000 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 10.00 435,600 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 10.00 435,600 Topography Level at street grade Shape Rectangular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low Density Residential (LDR) 115-130-055 6805 Kau Trail Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $300,000 $/ Acre $30,000.00 LAND VALUATION Parcel with LID $950,000 Value/Acre $95,000.00 Parcel without LID $650,000 Value/Acre $65,000.00 IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 11 5-130-055 PARCEL 115-130-055 PARCEL 115-130-055 PARCEL 115-130-055 PARCEL 115-130-055 PARCEL 115-130-055 IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject is a 10.00-acre site at 6805 Kau Trail in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 115-130-055. The legal description of the subject property is as follows: PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Sharon Cole who purchased the property for $65,000 or $6,500 per acre on 10/18/1984. Three-Year Sales History This sale appears to have been under private ownership and transferred in 1984 for $65,000. The property has yet to be improved and the future zoning map allows for low density residential. VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 435,600 SF (10.00 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Kau Trail. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a minor arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 10.00 435,600 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 10.00 435,600 Shape Rectangular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 115-130-055 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Kau Trail Secondary Street two-way two-lane minor arterial ✓ Frontage The subject has adequate frontage for property access. IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a minor arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING ANALYSIS Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is not currently planned for development but could support low to medium residential development within the next few years. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. INTRODUCTION The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s LDR (Low Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is desirable for single-family development. Of the outright permitted uses, physical and locational features best ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Low Density Residential (LDR) Permitted Uses Current Use Vacant Land in the path of future residential development. Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES support develop a low density residential project based on future demand. for the site’s highest and best use as- vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a low density residential project based on future demand.. AS-IMPROVED ANALYSIS The subject is currently an agricultural use Given that permitted use of the subject is for MDR (Medium Density Residential) zoning, the highest and best use as improved/proposed is for Medium Density Residential. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Medium Density Land Address 6805 Kau Trail 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 6615 Burns Rd City Pasco Burbank Pasco Kennewick Pasco Pasco State WA WA WA WA WA WA Zip 99301 99323 99301 99338 99301 99302 County Franklin Walla Walla Franklin Benton Franklin Franklin APN 115-130-055 Portion 320919330004 110175061 127881000018 110175061 114330053, 054, 052 PHYSICAL INFORMATION Acres 10.00 45.00 5.00 21.82 4.78 40.00 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Rectangular Rectangular Rectangular Rectangular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning LDR Ag Single Family Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 10/13/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $475,000 $400,000 $500,000 $210,444 $3,358,400 Analysis Price $475,000 $400,000 $500,000 $210,444 $3,358,400 $/Acre $10,556 $80,000 $22,915 $44,026 $83,960 IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -6805 Kau Trail, Pasco, WA -10.0 435,600 - No. 1 16.3 Miles 661 Sun Harbor Dr, Burbank , WA 10/3/2024 45.0 $10,556 No. 2 10.7 Miles 502 Green Road, Pasco, WA 7/11/2024 5.0 $80,000 No. 3 10.9 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 11.1 Miles 781 Decker Rd, Pasco, WA 3/27/2024 4.8 $44,906 No. 5 0.4 Miles 6615 Burns Rd, Pasco, WA 10/13/2022 40.0 $88,998 - IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Medium Density Land Address 6805 Kau Trail 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 6615 Burns Rd City Pasco Burbank Pasco Kennewick Pasco Pasco APN 115-130-055 Portion 320919330004 110175061 127881000018 110175061 114330053, 054, 052 Acres 10.00 45.00 5.00 21.82 4.78 40.00 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Rectangular Rectangular Rectangular Rectangular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning LDR Ag R-1 Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 10/13/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $475,000 $400,000 $500,000 $210,444 $3,358,400 Price/Acre $10,556 $80,000 $22,915 $44,026 $83,960 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%0%1%2%6% Subtotal Transactional Adj Price $10,556 $80,000 $23,144 $44,906 $88,998 PROPERTY ADJUSTMENTS Location Inferior Similar Inferior Inferior Similar Size Larger Similar Larger Smaller Larger Exposure Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Inferior Inferior Similar Inferior Superior TOTAL ADJUSTED PRICE $10,556 $80,000 $23,144 $44,906 $88,998 STATISTICS UNADJUSTED ADJUSTED LOW $10,556 $10,556 HIGH $83,960 $88,998 MEDIAN $44,026 $44,906 AVERAGE $48,291 $49,521 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This agricultural land sale has inferior location, access and potential for low density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This sale has low density zoning as a single-family home. The location and access is similar but the utilities are inferior with no access to city water and sewer. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and larger site area. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a v alue indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and access. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Similar/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and access with superior zoning potential. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $10,556 0%$10,556 Inferior SECONDARY 2 $80,000 0%$80,000 Similar PRIMARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $44,026 2%$44,906 Inferior SECONDARY 5 $83,960 6%$88,998 Similar PRIMARY LOW $10,556 AVERAGE $49,521 HIGH $88,998 MEDIAN $44,906 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 10.00 x $65,000 =$650,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Land DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address 6805 Kau Trail 6820 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake State WA WA WA WA WA Zip 99301 99301 99301 99301 98837 County Franklin Franklin Franklin Franklin Grant APN 115-130-055 115-160-013 115-210-038, 115- 210-061 113-130-450 91121653 PHYSICAL INFORMATION Acres 10.00 5.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Rectangular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning LDR Low Density Land Med Density Res Formerly AP-20 LI Entitled No No Yes Yes Yes Approvals No Yes Yes Yes Yes SALE INFORMATION Date 3/13/2024 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $230,000 $7,260,000 $3,076,800 $3,813,242 Analysis Price $230,000 $7,260,000 $3,076,800 $3,813,242 $/Acre $46,000 $153,294 $56,228 $87,100 IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -6805 Kau Trail, Pasco, WA -10.0 435,600 - No. 1 0.1 Miles 6820 Kau Trail, Pasco, WA 3/13/2024 5.0 $55,200 No. 2 2.9 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 4.6 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $61,851 No. 4 57.8 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 - - IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Land DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address 6805 Kau Trail 6820 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake APN 115-130-055 115-160-013 115-210-038, 115- 210-061 113-130-450 91121653 Acres 10.00 5.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Rectangular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning LDR Low Density Land Med Density Res Formerly AP-20 LI Utilities Yes Partial Yes Yes Yes Entitled No No Yes Yes Yes Approvals No No Yes Yes Yes SALE INFORMATION Date 3/13/2024 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $230,000 $7,260,000 $3,076,800 $3,813,242 Price/Acre $46,000 $153,294 $56,228 $87,100 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0% Financing 0%0%0%0% Conditions of Sale 0%-20%0%0% Expenditures After the Sale 20%0%0%0% Market Conditions¹0%4%10%5% Subtotal Transactional Adj Price $55,200 $127,541 $61,851 $91,455 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Size Smaller Larger Larger Larger Exposure Similar Similar Similar Similar Access Similar Similar Superior Similar Shape Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Zoning Similar Superior Superior Superior Utilities Inferior Similar Similar Similar Entitled Similar Superior Superior Superior Approvals Similar Superior Superior Superior TOTAL ADJUSTED PRICE $55,200 $127,541 $61,851 $91,455 STATISTICS UNADJUSTED ADJUSTED LOW $46,000 $55,200 HIGH $153,294 $127,541 MEDIAN $71,664 $76,653 AVERAGE $85,656 $84,012 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 20%. The property will have the expense after purchase of connecting to utility lines. This comparable required a total upward adjustment of for property characteristics. This property is adjacent west of the Big Sky Development properties and will have good access to new utilities. The zoning is inferior and the size is smaller. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and meduim density approval. This comparable required a total upward adjustment of for property characteristics. The property is larger requiring upward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. The property has superior access, larger size, and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a larger site. It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $55,200 to $127,541/Acre, with a median of $76,653/Acre and an average of $84,012/Acre. Based on the results of the preceding analysis, Comparable 1 (Inferior/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $46,000 20%$55,200 Inferior PRIMARY 2 $153,294 -16%$127,541 Superior SECONDARY 3 $56,228 10%$61,851 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY LOW $55,200 AVERAGE $84,012 HIGH $127,541 MEDIAN $76,653 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 10.00 x $95,000 =$950,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 11 5-130-055 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $300,000 $/ Acre $30,000.00 LAND VALUATION Parcel with LID $950,000 Value/Acre $95,000.00 Parcel without LID $650,000 Value/Acre $65,000.00 IPARCEL 11 5-130-046 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.290273 Longitude -119.180959 Number Of Parcels 1 Assessor Parcel Total Taxable Value $478,000 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 10.00 435,600 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 10.00 435,600 Topography Level at street grade Shape Rectangular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low Density Residential (LDR) 115-130-046 6907 Kau Trail Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $300,000 $/ Acre $30,000.00 LAND VALUATION Parcel with LID $900,000 Value/Acre $90,000.00 Parcel without LID $600,000 Value/Acre $60,000.00 IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PARCEL 11 5-130-046 PARCEL 115-130-046 PARCEL 115-130-046 PARCEL 115-130-046 PARCEL 115-130-046 PARCEL 115-130-046 IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PROPERTY IDENTIFICATION The subject is a 10.00-acre site at 6907 Kau Trail in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 115-130-046. The legal description of the subject property is as follows: PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Jasbir Singh who purchased the property for $1,750,400 or $175,000 per acre. Three-Year Sales History This sale appears to have been under private ownership and transferred in 2022 for an above market amount. The property has yet to be improved, and the future zoning map allows for medium density residential. IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 435,600 SF (10.00 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Kau Trail. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a minor arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 10.00 435,600 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 10.00 435,600 Shape Rectangular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 115-130-046 Street Improvements Street Direction No. Lanes Street Type Cur b s Sid e w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Kau Trail Secondary Street two-way two-lane minor arterial ✓ Frontage The subject has adequate frontage for property access. IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a minor arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES PLAT MAP IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING MAP IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ZONING ANALYSIS Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. The subject is not currently planned for development but could support low to medium residential development within the next few years. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. HIGHEST AND BEST USE The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s LDR (Low Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Low Density Residential (LDR) Permitted Uses Current Use Single Family and agricultural use in the path of future residential development. Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES desirable for single-family development. Of the outright permitted uses, physical and locational features best support develop a low-density residential project based on future demand. for the site’s highest and best use as- vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a low density residential project based on future demand. AS-IMPROVED ANALYSIS The subject is currently an agricultural use with a single family residence and the highest and best use as improved is for a for a low density residential use. IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Medium Density Land Address 6907 Kau Trail 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 6615 Burns Rd City Pasco Burbank Pasco Kennewick Pasco Pasco State WA WA WA WA WA WA Zip 99301 99323 99301 99338 99301 99302 County Franklin Walla Walla Franklin Benton Franklin Franklin APN 115-130-046 Portion 320919330004 110175061 127881000018 110175061 114330053, 054, 052 PHYSICAL INFORMATION Acres 10.00 45.00 5.00 21.82 4.78 40.00 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Rectangular Rectangular Rectangular Rectangular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning LDR Ag Single Family Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 10/13/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $475,000 $400,000 $500,000 $210,444 $3,358,400 Analysis Price $475,000 $400,000 $500,000 $210,444 $3,358,400 $/Acre $10,556 $80,000 $22,915 $44,026 $83,960 IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -6907 Kau Trail, Pasco, WA -10.0 435,600 - No. 1 16.3 Miles 661 Sun Harbor Dr, Burbank , WA 10/3/2024 45.0 $10,556 No. 2 10.7 Miles 502 Green Road, Pasco, WA 7/11/2024 5.0 $80,000 No. 3 10.9 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 11.1 Miles 781 Decker Rd, Pasco, WA 3/27/2024 4.8 $44,906 No. 5 0.4 Miles 6615 Burns Rd, Pasco, WA 10/13/2022 40.0 $88,998 - IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Medium Density Land Address 6907 Kau Trail 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 6615 Burns Rd City Pasco Burbank Pasco Kennewick Pasco Pasco APN 115-130-046 Portion 320919330004 110175061 127881000018 110175061 114330053, 054, 052 Acres 10.00 45.00 5.00 21.82 4.78 40.00 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Rectangular Rectangular Rectangular Rectangular Rectangular Rectangular Site Utility Rating Average Average Average Average Average Average Zoning LDR Ag R-1 Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 10/13/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $475,000 $400,000 $500,000 $210,444 $3,358,400 Price/Acre $10,556 $80,000 $22,915 $44,026 $83,960 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%0%1%2%6% Subtotal Transactional Adj Price $10,556 $80,000 $23,144 $44,906 $88,998 PROPERTY ADJUSTMENTS Location Inferior Similar Inferior Inferior Similar Size Larger Similar Larger Smaller Larger Exposure Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Similar Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Inferior Inferior Similar Inferior Superior TOTAL ADJUSTED PRICE $10,556 $80,000 $23,144 $44,906 $88,998 STATISTICS UNADJUSTED ADJUSTED LOW $10,556 $10,556 HIGH $83,960 $88,998 MEDIAN $44,026 $44,906 AVERAGE $48,291 $49,521 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This agricultural land sale has inferior location, access and potential for low density residential zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This sale has low density zoning as a single-family home. The location and access is similar but the utilities are inferior with no access to city water and sewer. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location, access and larger site area. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a v alue indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and access. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 5 (Similar/Acre adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has similar location and access with superior zoning potential. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $10,556 0%$10,556 Inferior SECONDARY 2 $80,000 0%$80,000 Similar PRIMARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $44,026 2%$44,906 Inferior SECONDARY 5 $83,960 6%$88,998 Similar PRIMARY LOW $10,556 AVERAGE $49,521 HIGH $88,998 MEDIAN $44,906 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 10.00 x $60,000 =$600,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Land DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address 6907 Kau Trail 6820 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake State WA WA WA WA WA Zip 99301 99301 99301 99301 98837 County Franklin Franklin Franklin Franklin Grant APN 115-130-046 115-160-013 115-210-038, 115- 210-061 113-130-450 91121653 PHYSICAL INFORMATION Acres 10.00 5.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Rectangular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning LDR Low Density Land Med Density Res Formerly AP-20 LI Entitled Yes Yes Yes Yes Yes Approvals Yes Yes Yes Yes Yes SALE INFORMATION Date 3/13/2024 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $230,000 $7,260,000 $3,076,800 $3,813,242 Analysis Price $230,000 $7,260,000 $3,076,800 $3,813,242 $/Acre $46,000 $153,294 $56,228 $87,100 IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -6907 Kau Trail, Pasco, WA -10.0 435,600 - No. 1 0.1 Miles 6820 Kau Trail, Pasco, WA 3/13/2024 5.0 $55,200 No. 2 2.9 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 4.6 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $61,851 No. 4 57.8 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 - - IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Land DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address 6907 Kau Trail 6820 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake APN 115-130-046 115-160-013 115-210-038, 115- 210-061 113-130-450 91121653 Acres 10.00 5.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Rectangular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning LDR Low Density Land Med Density Res Formerly AP-20 LI Utilities Yes Partial Yes Yes Yes Entitled No No Yes Yes Yes Approvals No No Yes Yes Yes SALE INFORMATION Date 3/13/2024 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $230,000 $7,260,000 $3,076,800 $3,813,242 Price/Acre $46,000 $153,294 $56,228 $87,100 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0% Financing 0%0%0%0% Conditions of Sale 0%-20%0%0% Expenditures After the Sale 20%0%0%0% Market Conditions¹0%4%10%5% Subtotal Transactional Adj Price $55,200 $127,541 $61,851 $91,455 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Size Smaller Larger Larger Larger Exposure Similar Similar Similar Similar Access Similar Similar Superior Similar Shape Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Zoning Similar Superior Superior Superior Utilities Inferior Similar Similar Similar Entitled Similar Superior Superior Superior Approvals Similar Superior Superior Superior TOTAL ADJUSTED PRICE $55,200 $127,541 $61,851 $91,455 STATISTICS UNADJUSTED ADJUSTED LOW $46,000 $55,200 HIGH $153,294 $127,541 MEDIAN $71,664 $76,653 AVERAGE $85,656 $84,012 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) required a total upward transaction adjustment of 20%. The property will have the expense after purchase of connecting to utility lines. This comparable required a total upward adjustment of for property characteristics. This property is adjacent west of the Big Sky Development properties and will have good access to new utilities. The zoning is inferior and the size is smaller. The moderate level of gross adjustments required for this comparable indicates that it can b e adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is larger requiring upward consideration and has entitlements with utilities at the site. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. The property has superior access, larger size, and superior commercial zoning. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a larger site. It is also zoned industrial with utilities available. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $55,200 to $127,541/Acre, with a median of $76,653/Acre and an average of $84,012/Acre. Based on the results of the preceding analysis, Comparable 1 (Inferior/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $46,000 20%$55,200 Inferior PRIMARY 2 $153,294 -16%$127,541 Superior SECONDARY 3 $56,228 10%$61,851 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY LOW $55,200 AVERAGE $84,012 HIGH $127,541 MEDIAN $76,653 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 10.00 x $90,000 =$900,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 11 5-130-046 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $300,000 $/ Acre $30,000.00 LAND VALUATION Parcel with LID $900,000 Value/Acre $90,000.00 Parcel without LID $600,000 Value/Acre $60,000.00 IPARCEL 114-330-030 DENTIFICATION OF APPRAISAL ASSIGNMENT TABLE OF CONTENTS LAS240237 Error! Bookmark not defined. GENERAL INFORMATION Property Name Property Type Address City Pasco State Washington Zip Code 99301 County Franklin Core Based Statistical Area (CBSA)Yakima, WA Market Pasco Submarket Pasco Latitude 46.299423 Longitude -119.177369 Number Of Parcels 1 Assessor Parcel Total Taxable Value $0 Census Tract Number 206.08 SITE INFORMATION Land Area Acres Square Feet Usable 6.58 286,625 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 6.58 286,625 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone C Seismic Zone Moderate Risk East UGA Expansion LID Low Density Residential (LDR) 114-330-030 2801 Clark Road Land - Right-of-Way VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $100,000 $/ Acre $15,197.57 LAND VALUATION Parcel with LID $630,000 Value/Acre $95,744.68 Parcel without LID $530,000 Value/Acre $80,547.11 IPARCEL 114-330-030 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 PARCEL 114-330-030 PARCEL 114-330-030 PARCEL 114-330-030 PARCEL 114-330-030 PARCEL 114-330-030 PARCEL 114-330-030 IPARCEL 114-330-030 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 PROPERTY IDENTIFICATION The subject is a 6.58-acre site at 2801 Clark Road in Pasco, Franklin County, Washington. The assessor ’s parcel number is: 114-330-030. The legal description of the subject property is presented in the Addenda. CLIENT IDENTIFICATION The client of this specific assignment is City of Pasco. PURPOSE The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. INTENDED USE The intended use of this appraisal is to assist the client in making internal business decisions related to this asset. INTENDED USERS City of Pasco is the only intended user of this report. Use of this report by third parties and other unintended users is not permitted. This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone. ASSIGNMENT DATES Date of Report November 3, 2024 Date of Inspection October 16, 2024 Valuation Date - As-Is October 16, 2024 IPARCEL 114-330-030 DENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAS240237 PERSONAL INTANGIBLE PROPERTY No personal property or intangible items are included in this valuation. PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Blake and Michelle Olberding who acquired title to the property on November 22, 2022 as land for an undisclosed amount. Three-Year Sales History This sale appears to have been under private ownership and transferred prior to 2022 for an undisclosed amount. The property has yet to be improved and the future zoning map allows for low density residential. DEFINITIONS This section summarizes the definitions of value, property rights appraised, and value scenarios that are applicable for this appraisal assignment. All other applicable definitions for this assignment are located in the Valuation Glossary section of the Addenda. DEFINITIONS OF VALUE Given the scope and intended use of this assignment, the following definition of value is applicable: 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. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 PROPERTY RIGHTS APPRAISED The property rights appraised constitute the fee simple interest. Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.2 VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.3 1 Interagency Appraisal and Evaluation Guidelines, December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472 2 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 3 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 S PARCEL 114-330-030 ITE DESCRIPTION TABLE OF CONTENTS LAS240237 Site Description The subject site consists of 1 parcel. As noted below, the subject site has 286,625 SF (6.58 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from one street, with the main entrance and primary point of ingress/egress being Clark Rd. Major transportation arterials within proximity to the subject include Clark, N Railroad Ave and S Road 68, providing linkage to the surrounding area. Exposure The subject has average exposure, as it is located along a minor arterial. The project's exposure rating takes into account its average visibility and its average traffic count. Seismic The subject is in Moderate Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Assessor Parcel Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 6.58 286,625 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 6.58 286,625 Shape Irregular - See Plat Map For Exact Shape Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site 114-330-030 Street Improvements Street Direction No. Lanes Street Type Cur b s Side w a l k s Stre e t l i g h t s Cen t e r L a n e Gut t e r s Clark Rd Primary Street two-way two-lane minor arterial ✓ Frontage The subject has adequate frontage for property access. SPARCEL 114-330-030 CONTINUED LAS240237 Flood Zone Zone C. This is referenced by Community Number 5300044, Panel Number 0695B, dated May 01, 1980. Zone C is a Non-Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along a minor arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. IPARCEL 114-330-030 TABLE OF CONTENTS LAS240237 PLAT MAP IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 ZONING MAP IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 FLOOD MAP IPARCEL 114-330-031 TABLE OF CONTENTS LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 10 ZONING ANALYSIS Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use. The subject is not currently planned for development but could support low to medium residential development within the next few years. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. INTRODUCTION The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s LDR (Low Density Residential) zoning were listed in the Zoning Analysis section and include single-family homes. The potential use that meets the requirements of the legal permissibility test is single-family development. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject is surrounded by residential development, single -family development and undeveloped land. Given the subject’s location and surrounding uses, the subject site is desirable for single- family development. Of the outright permitted uses, physical and locational features best support develop a low density residential project based on future demand. for the site’s highest and best use as-vacant. ZONING SUMMARY Municipality Governing Zoning City of Pasco Planning & Zoning Department Current Zoning Low Density Residential (LDR) Permitted Uses Current Use Agricultural Land in the path of future residential development. Is Current Use Legally Permitted?Yes Zoning Change Yes Permitted uses within this zoning district primarily include low density single family development. IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as -vacant is concluded to be develop a low density residential project based on future demand. AS-IMPROVED ANALYSIS The subject is currently an agricultural use which is in the path of future residential development and the highest and best use is concluded to be development of a low density residential project. IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Due to the characteristics of the subject LID assignment and beneficial value to the LID improvements, we have prepared two land comparable datasets. The following land valuation is segmented into two analyses: First approach values the subject’s vacant land without city utilities that increase development timing and use potential and the value of the subject with the benefit of city utilities. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. The subject is currently an agricultural use that, prior to the LID, lacked sewer and other utility infrastructure. We searched the Tri-County area for the best comparables with similar infrastructure. The comparables selected for the “Without LID” analysis are primarily residential acreage with no utilities. It is noted that these comparables were agricultural at one time and parceled off for eventual development of a single-family residence with septic since no utilities are available. These comparables offer the best indication of value of the subject property in the “Without LID” condition. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of enviro nmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. In our review of several historical sales and we have found annual appreciation in land values for industrial properties from 3% to 5% and higher. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Because of the lack of recent sales activity in the city of Pasco and Franklin County, expanded our search to nearby counties with vacant land parcels without utilities and those with city utilities nearby or fronting the site comparables. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of October 2024 (As-Is)3% LAND SALES SUMMATION TABLE (W/O LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Low Density Residential Address 2801 Clark Road 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 3006-3026 Elm Rd City Pasco Burbank Pasco Kennewick Pasco Pasco State WA WA WA WA WA WA Zip 99301 99323 99301 99338 99301 99301 County Franklin Walla Walla Franklin Benton Franklin Franklin APN 114-330-030 Portion 320919330004 110175061 127881000018 110175061 123-220-102 PHYSICAL INFORMATION Acres 6.58 45.00 5.00 21.82 4.78 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Ag Single Family Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $475,000 $400,000 $500,000 $210,444 $631,800 Analysis Price $475,000 $400,000 $500,000 $210,444 $631,800 $/Acre $10,556 $80,000 $22,915 $44,026 $19,500 IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -2801 Clark Road, Pasco, WA -6.6 286,625 - No. 1 16.3 Miles 661 Sun Harbor Dr, Burbank , WA 10/3/2024 45.0 $10,556 No. 2 10.6 Miles 502 Green Road, Pasco, WA 7/11/2024 5.0 $80,000 No. 3 11.5 Miles 99126 E Bastian Pr SE, Kennewick, WA 8/2/2024 21.8 $23,144 No. 4 11.1 Miles 781 Decker Rd, Pasco, WA 3/27/2024 4.8 $44,906 No. 5 9.1 Miles 3006-3026 Elm Rd, Pasco, WA 1/25/2024 32.4 $19,890 - IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name East UGA Expansion LID Farm Land Single Family Low Density Land Single Family Low Density Residential Address 2801 Clark Road 661 Sun Harbor Dr 502 Green Road 99126 E Bastian Pr SE 781 Decker Rd 3006-3026 Elm Rd City Pasco Burbank Pasco Kennewick Pasco Pasco APN 114-330-030 Portion 320919330004 110175061 127881000018 110175061 123-220-102 Acres 6.58 45.00 5.00 21.82 4.78 32.40 Location Average Average Average Average Average Average Exposure Average Average Average Average Average Average Access Average Average Average Average Average Average Shape Irregular Rectangular Rectangular Rectangular Rectangular Irregular Site Utility Rating Average Average Average Average Average Average Zoning LDR Ag R-1 Ag Res Res SALE INFORMATION Date 10/3/2024 7/11/2024 8/2/2024 3/27/2024 1/25/2024 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $475,000 $400,000 $500,000 $210,444 $631,800 Price/Acre $10,556 $80,000 $22,915 $44,026 $19,500 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Financing 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%0%1%2%2% Subtotal Transactional Adj Price $10,556 $80,000 $23,144 $44,906 $19,890 PROPERTY ADJUSTMENTS Location Inferior Similar Inferior Inferior Inferior Size Larger Similar Larger Similar Larger Exposure Similar Similar Similar Similar Similar Access Inferior Similar Inferior Inferior Inferior Shape Similar Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Similar Zoning Similar Similar Similar Similar Similar TOTAL ADJUSTED PRICE $10,556 $80,000 $23,144 $44,906 $19,890 STATISTICS UNADJUSTED ADJUSTED LOW $10,556 $10,556 HIGH $80,000 $80,000 MEDIAN $22,915 $23,144 AVERAGE $35,399 $35,699 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ANALYSIS Discussion of Adjustments Comparable 1 (Inferior/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This agricultural land sale has inferior location, access and potential for low density residential zoning The total gross adjustment applied to this comparable was inferior. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 (Similar/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of for property characteristics. This sale has low density zoning as a single family home. The location and access is similar but the utilities are inferior with no access to city water and sewer. The total gross adjustment applied to this comparable was rated similar. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 3 (Inferior/Acre adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior locationand . The total gross adjustment applied to this comparable was inferior. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and access. The total gross adjustment applied to this comparable was . The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 5 (Inferior/Acre adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and access. The total gross adjustment applied to this comparable was inferior. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 6 (Similar/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This sale has similar use potential to the subject and similar site characteristics. The total gross adjustment applied to this comparable was . The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $10,556 to $41,535/Acre, with a median of $23,144/Acre and an average of $25,131/Acre. Based on the results of the preceding analysis Comparable 2 is given slightly higher emphasis. IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. CALCULATION OF LAND VALUE (No Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED COMPARISON 1 $10,556 0%$10,556 Inferior SECONDARY 2 $80,000 0%$80,000 Similar PRIMARY 3 $22,915 1%$23,144 Inferior SECONDARY 4 $44,026 2%$44,906 Inferior PRIMARY 5 $19,500 2%$19,890 Inferior SECONDARY LOW $10,556 AVERAGE $35,699 HIGH $80,000 MEDIAN $23,144 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 6.58 x $80,000 =$530,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUATION TWO PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. The subject will have the benefit of access to sanitary sewer constructed through an LID. We searched the Tri-County area for the best comparables with similar utility infrastructure. Some of the comparables are commercial uses (which we have adjusted for), while other comparables are residential uses. The primary consideration in selecting a comparable in the “with LID” condition is the availability of sewer and other utilities similar to the subject parcels. LAND SALES SUMMATION TABLE (with LID) COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Residential DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address 2801 Clark Road 6907 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake State WA WA WA WA WA Zip 99301 99301 99301 99301 98837 County Franklin Franklin Franklin Franklin Grant APN 114-330-030 115-130-046 115-210-038, 115- 210-061 113-130-450 91121653 PHYSICAL INFORMATION Acres 6.58 10.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning LDR Single Family Med Density Res Formerly AP-20 LI Entitled No No No No No Approvals Yes Yes Yes Yes Yes SALE INFORMATION Date 12/16/2022 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $1,750,000 $7,260,000 $3,076,800 $3,813,242 Analysis Price $1,750,000 $7,260,000 $3,076,800 $3,813,242 $/Acre $175,000 $153,294 $56,228 $87,100 IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/ACRE SUBJECT -2801 Clark Road, Pasco, WA -6.6 286,625 - No. 1 0.6 Miles 6907 Kau Trail, Pasco, WA 12/16/2022 10.0 $192,500 No. 2 3.2 Miles SEQ of Burns Rd & Dent Rd, Pasco, WA 8/9/2023 47.4 2,063,002 $127,541 No. 3 4.6 Miles 5526 N Capitol Ave, Pasco, WA 6/17/2021 54.7 $61,851 No. 4 57.1 Miles 13184 Wheeler Road Northeast, Moses Lake, WA 3/21/2023 43.8 1,907,057 $91,455 - - IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name East UGA Expansion LID Low Density Residential DH Horton Sub Reser's Fine Food Site Group 14 Tech. Site Address 2801 Clark Road 6907 Kau Trail SEQ of Burns Rd & Dent Rd 5526 N Capitol Ave 13184 Wheeler Road Northeast City Pasco Pasco Pasco Pasco Moses Lake APN 114-330-030 115-130-046 115-210-038, 115- 210-061 113-130-450 91121653 Acres 6.58 10.00 47.36 54.72 43.78 Location Average Average Average Average Average Exposure Average Average Average Average Average Access Average Average Average Average Average Shape Irregular Rectangular Irregular Irregular Generally RectangularSite Utility Rating Average Average Average Average Average Zoning LDR Single Family Med Density Res Formerly AP-20 LI Utilities Yes Partial Yes Yes Yes Entitled No No Yes Yes Yes Approvals No No Yes Yes Yes SALE INFORMATION Date 12/16/2022 8/9/2023 6/17/2021 3/21/2023 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $1,750,000 $7,260,000 $3,076,800 $3,813,242 Price/Acre $175,000 $153,294 $56,228 $87,100 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0% Financing 0%0%0%0% Conditions of Sale 0%-20%0%0% Expenditures After the Sale 0%0%0%0% Market Conditions¹10%4%10%5% Subtotal Transactional Adj Price $192,500 $127,541 $61,851 $91,455 PROPERTY ADJUSTMENTS Location Similar Similar Similar Inferior Size Similar Larger Larger Larger Exposure Similar Similar Similar Similar Access Similar Similar Superior Similar Shape Similar Similar Similar Similar Site Utility Rating Similar Similar Similar Similar Zoning Similar Superior Superior Superior Utilities Similar Similar Similar Similar Entitled Similar Superior Superior Superior Approvals Similar Superior Superior Superior TOTAL ADJUSTED PRICE $192,500 $127,541 $61,851 $91,455 STATISTICS UNADJUSTED ADJUSTED LOW $56,228 $61,851 HIGH $175,000 $192,500 MEDIAN $120,197 $109,498 AVERAGE $117,906 $118,337 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 10/16/24 IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND SALES TWO ANALYSIS Discussion of Adjustments Comparable 1 (Similar/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. The total gross adjustment applied to this comparable was similar. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 (Superior/Acre adjusted) required a total downward transaction adjustment of -16%. This comparable is adjusted upward for improving market conditions. We believe the national home builder buyer was motivated given the subject location and medium density approval. This comparable required a total upward adjustment of for property characteristics. The property is larger requiring upward consideration and has entitlements with utilities at the site. The total gross adjustment applied to this comparable was superior. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 (Superior/Acre adjusted) required a total upward transaction adjustment of 10%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. The property has superior access, larger size, and superior commercial zoning. The total gross adjustment applied to this comparable was superior rated. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 (Superior/Acre adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of for property characteristics. This property has inferior location and is a larger site. It is also zoned industrial with utilities available. The total gross adjustment applied to this comparable was superior rated. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. CALCULATION OF LAND SALES VALUE TWO The comparable land sales indicate an adjusted value range from $61,851 to $192,500/Acre, with a median of $109,498/Acre and an average of $118,337/Acre. Based on the results of the preceding analysis, Comparable 1 (Similar/Acre adjusted) is given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. CALCULATION OF LAND VALUE (With Utility LID) ANALYSIS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED Rating COMPARISON 1 $175,000 10%$192,500 Similar PRIMARY 2 $153,294 -16%$127,541 Superior SECONDARY 3 $56,228 10%$61,851 Superior SECONDARY 4 $87,100 5%$91,455 Superior SECONDARY LOW $61,851 AVERAGE $118,337 HIGH $192,500 MEDIAN $109,498 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE TOTAL PROPERTY 6.58 x $95,000 =$630,000 ¹Cumulative ²Additive Rounded to nearest $10,000 IPARCEL 114-330-030 EXECUTIVE SUMMARY CONTINUED LAS240237 © 2024 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE OCTOBER 16, 2024 FINAL VALUE CONCLUSION ESTIMATED SPECIAL BENEFIT $100,000 $/ Acre $15,197.57 LAND VALUATION Parcel with LID $630,000 Value/Acre $95,744.68 Parcel without LID $530,000 Value/Acre $80,547.11 Colliers International Group Inc. PSA #: 24-026 East UGA LID Special Benefit Analysis Services – Project Number No. 21295 Version 05.11.24 Page 1 of 9 PROFESSIONAL SERVICES AGREEMENT East UGA LID Special Benefit Analysis Services Agreement No. 24-026 THIS AGREEMENT is made and entered into between the City of Pasco, a Washington Municipal Corporation, hereinafter referred to as “City”, and Colliers International Group Inc., hereinafter referred to as “Consultant” on _____________________________________. [date of execution] RECITALS WHEREAS, the City desires to have certain services and/or tasks performed as set forth below requiring specialized skills, training, equipment, and other supportive capabilities; and WHEREAS, the Consultant represents that it is qualified and possesses sufficient skills, experience, equipment, and necessary capabilities, including: technical and professional expertise, when required, to perform the services and/or tasks as set forth in this Agreement upon which the City is relying. WHEREAS, the City has, consistent with RCW 39.80, published an announcement related to its need for Architectural and Engineering services, evaluated Consultant’s current performance data, and has determined that Consultant is the most highly qualified firm to perform the Architectural and Engineering services related to the East Urban Growth Area (UGA) Local Improvement District (LID) project; and WHEREAS, the City’s Public Works Director finds that the Agreement with Consultant is both fair and reasonable in light of the duties to be performed, the Consultant’s performance data, and the nature and complexity of the project. NOW, THEREFORE, in consideration of the mutual covenants, and performances contained herein, the parties agree as follows: 1. Scope of Services. The Consultant shall perform such services and accomplish such tasks, including the furnishing of all labor, materials, facilities and equipment necessary for full performance thereof, as identified and designated as Consultant’s Responsibilities throughout this Agreement, and as more particularly described in Scope of Work detailed in Exhibit A, attached hereto and incorporated herein (the “Project”). 2. Term. This Project shall begin on the execution date listed above and promptly be completed by 12/31/2025. 9L10L2024 Colliers International Group Inc. PSA #: 24-026 East UGA LID Special Benefit Analysis Services – Project Number No. 21295 Version 05.11.24 Page 2 of 9 3. Compensation and Payment. 3.1 Payment for services provided hereunder shall be made following the performance of such services. Such payment shall be full compensation for work performed or services rendered, and for all labor, materials, supplies, equipment, and incidentals necessary to complete the Project. 3.2 No payment shall be made for any services rendere d by the Consultant except for services identified and set forth in this Agreement except as may be authorized by a written supplemental agreement approved by the City. 3.3 The City shall pay the Consultant for work performed under this Agreement upon timely submitted invoices detailing work performed and expenses for which reimbursement is sought. The City shall approve all invoices before payment is issued. Payment shall occur within thirty (30) days of receipt and approval of an invoice. 3.4 The City shall pay the Consultant for all work performed and expenses incurred under this Agreement, as follows. ☒ Hourly (Multiple Rate): Such rates as identified on Exhibit A plus actual expenses incurred as provided under this Agreement, but not to exceed a total of $31,500.00 without the prior written authorization by the City. 4. Reports and Inspections. 4.1 The Consultant at such times and in such forms as the City may require, shall furnish to the City such statements, records, studies, surveys, reports, data, and information as the City may request pertaining to matters covered by this Agreement. 4.2 The Consultant shall, at any time during normal business hours and as often as the City or the Washington State Auditor may reasonably deem necessary, make available for examination all of its records and data with respect to all matters covered, directly or indirectly, by this Agreement and shall permit the City, or its designated authorized representative to audit and inspect other data relating to all matters covered by this Agreement. The City shall receive a copy of all audit reports made by the agency or firm as to the Consultant’s activities. The City may, at its discretion, conduct an audit at its expense, using its own or outside auditors, of the Consultant’s activities which relate, directly or indirectly, to this Agreement. Consultant shall be provided a copy of such reports. 4.3 The Consultant, during the term of this Agreement, shall obtain all permits and registration documents necessary for the performance of its work and for the execution of services at its own expense, and shall maintain its validity. Upon request, the Consultant shall deliver to the City copies of these licenses, registration documents, and permits or proof of their issuance or renewal. 4.4 Consultant shall maintain books, records and documents, which sufficiently and properly reflect all direct and indirect costs related to the performance of this Colliers International Group Inc. PSA #: 24-026 East UGA LID Special Benefit Analysis Services – Project Number No. 21295 Version 05.11.24 Page 3 of 9 Agreement and shall maintain such accounting procedures and practices as may be necessary to assure proper accounting of all funds paid pursuant to this Agreement. These records shall be subject, at all reasonable times, to inspection, review, or audit as provided above. 4.5 The Consultant shall retain all books, records, documents, or other material relevant to this Agreement for three (3) years after its expiration. Consultant agrees that the City, or its designee, shall have full access and right to examine any of said materials at all reasonable times during this period. 5. Ownership and Use of Documents. 5.1 All research, tests, surveys, preliminary data, information, drawings, and documents made, collected, or prepared by the Consultant for performing the services subject to this Agreement, as well as any final product, collectively referred to as “work product,” shall be deemed as the exclusive property of the City, including copyright as secured thereon. Consultant may not use them except in connection with the performance of the services under this Agreement or with the prior written consent of the City. Any prior copyrighted materials owned by the Consultant and utilized in the performance of the services under this Agreement, or embedded in with the materials, products and services provided thereunder, shall remain the property of the Consultant subject to a license granted to the City for their continued use of the products and services provided under this Agreement. Any work product used by the Consultant in the performance of these services which it deems as “confidential,” “proprietary,” or a “trade secret” shall be conspicuously designated as such. 5.2 In the event of Consultant’s default, or in the event that this Agreement is terminated prior to its completion, the work product of the Consultant, along with a summary of the services performed to date of default or termination, shall become the property of the City, and tender of the work product and summary shall be a prerequisite to final payment under this Agreement. The summary of services provided shall be prepared at no additional cost, if the Agreement is terminated through default by the Consultant. If the Agreement is terminated through convenience by the City, the City agrees to pay Consultant for the preparation of the summary of services provided. 6. Public Records. 6.1 Consultant acknowledges that the City is an agency subject to Chapter 42.56 RCW “Public Records Act.” All preliminary drafts or notes prepared or gathered by the Consultant, and recommendations of the Consultant are exempt prior to the acceptance by the City or public citation by the City in connection with City action. 6.2 If the Consultant becomes a custodian of public records of the City and request for such records is received by the City, the Consultant shall respond to the request by the City for such records within five (5) business days by either providing the records, or by identifying in writing the additional time necessary to provide the records with a description of the reasons why additional time is needed. Such additional time shall not exceed twenty (20) business days unless extraordinary good cause is shown. Colliers International Group Inc. PSA #: 24-026 East UGA LID Special Benefit Analysis Services – Project Number No. 21295 Version 05.11.24 Page 4 of 9 6.3 In the event the City receives a public records request for protected work product of the Consultant within its possession, the City shall, prior to the release of any protected work product or as a result of a public records request or subpoena, provide Consultant at least ten (10) business days prior written notice of the pending release and to reasonably cooperate with any legal action which may be initiated by the Consultant to enjoin or otherwise prevent such release. 7. Independent Contractor Relationship. 7.1 The parties intend that an independent contractor relationship is created by this Agreement. The City is interested primarily in the results to be achieved; subject to the scope of services and the specific requirements of this Agreement, the implementation of services will lie solely with the discretion of the Consultant. No agent, employee, officer or representative of the Consultant shall be deemed to be an employee, agent, officer, or representative of the City for any purpose, and the employees of the Consultant are not entitled to any of the benefits or privileges the City provides for its employees. The Consultant will be solely and entirely responsible for its acts and for the acts of its agents, employees, officers, subcontractors or representatives during the performance of this Agreement. 7.2 In the performance of the services provided in this Agreement, Consultant is an independent contractor with full authority to control and direct the performance of the details of the work, however, the results of the work contemplated herein must meet the approval of the City and shall be subject to the City’s general rights of inspection and review to secure the satisfactory completion thereof. 7.3 The Consultant shall comply with all State and Federal laws including, but not limited to: 7.3.1 The definition requirements of RCW 50.04.140 (Employment Security). 7.3.2 RCW 51.08.195 (Industrial Insurance). 7.3.3 Obtain a City of Pasco business license. 7.4 The City may, at its sole discretion, require the Consultant to remove any employee, agent or servant from employment on this Project who, in the City’s sole discretion, may be detrimental to the City’s interest. 8. Indemnification. 8.1 The Consultant shall defend, indemnify, and hold harmless the City, its officers, officials, employees, and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. 8.2 However, should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the Colliers International Group Inc. PSA #: 24-026 East UGA LID Special Benefit Analysis Services – Project Number No. 21295 Version 05.11.24 Page 5 of 9 concurrent negligence of the Consultant, and the City, its officers, officials, employees, and volunteers, the Consultant’s liability, including the duty and cost to defend, hereunder shall be only to the extent of the Consultant’s negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant’s waiver of immunity under Industrial Insurance, Title 51 RCW, solely for purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 8.3 No liability shall attach to the City by reason of entering into this Agreement except as expressly provided herein. 8.4 This indemnification shall include damages, penalties and attorney fees sustained as a result of Consultant’s delayed or failed performance of Section 6 above. 9. Insurance. The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees, or subcontractors. The Consultant’s maintenance of insurance as required by the Agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwi se limit the City’s recourse to any remedy available at law or in equity. 9.1 Minimum Scope of Insurance. Consultant shall obtain insurance of the types and coverage described below: 9.1.1 Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be at least as broad as Insurance Services Office (ISO) form CA 00 01. 9.1.2 Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop-gap independent contractors and personal injury and advertising injury. The City shall be named as an additional insured under the Consultant’s Commercial General Liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO endorsement form CG 20 26. 9.1.3 Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 9.1.4 Professional Liability insurance appropriate to the Consultant’s profession. 9.2 Minimum Amounts of Insurance. Consultant shall maintain the following insurance limits: 9.2.1 Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 9.2.2 Commercial General Liability insurance shall be written with limits no less than: Colliers International Group Inc. PSA #: 24-026 East UGA LID Special Benefit Analysis Services – Project Number No. 21295 Version 05.11.24 Page 6 of 9 ☒ $2,000,000 each occurrence; and ☒ $2,000,000 general aggregate; 9.2.3 Professional Liability insurance shall be written with limits no less than: ☒ $2,000,000 per claim; and ☒ $2,000,000 policy aggregate limit; 9.3 Other Insurance Provision. The Consultant’s Automobile Liability, Professional Liability, and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance as respect the City. Any insurance, self-insurance, or self-insured pool coverage maintained by the City shall be excess of the Consultant’s insurance and shall not contribute with it. 9.3.1 The Consultant’s insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 9.4 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. 9.5 Verification of Coverage. Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including, but not necessarily limited to, the additional insured endorsement, evidencing the insurance requirements of the Agreement before commencement of the work. 9.6 Notice of Cancellation. The Consultant shall provide the City with written notice of any policy cancellation within two (2) business days of their receipt of such notice. 9.7 City Full Availability of Consultant Limits. If the Consultant maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Consultant, irrespective of whether such limits maintained by the Consultant are greater than those required by this Agreement or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Consultant. 9.8 Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five (5) business days notice to the Consultant to correct the breach, immediately terminate the Agreement or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Consultant from the City. 10. Nondiscrimination. In the performance of this Agreement, the Consultant will not discriminate against any employee or applicant for employment on the grounds of race, creed, color, national origin, sex, marital status, age or the presence of any sensory, mental or physical handicap; provided that the prohibition against discrimination in employment Colliers International Group Inc. PSA #: 24-026 East UGA LID Special Benefit Analysis Services – Project Number No. 21295 Version 05.11.24 Page 7 of 9 because of handicap shall not apply if the particular disability prevents the proper performance of the particular worker involved. The Consultant shall ensure that applicants are employed, and that employees are treated during employment in the performance of this Agreement without discrimination because of their race, creed, color, national origin, sex, marital status, age or the presence of any sensory, mental or physical handicap. Consultant shall take such action with respect to this Agreement as may be required to ensure full compliance with local, State and Federal laws prohibiting discrimination in employment. 11. Covenant Against Contingent Fees. The Consultant warrants that it has not employed nor retained any company, firm, or person, other than a bona fide employee working exclusively for the Consultant, to solicit or secure this Agreement; and that it has not paid or agreed to pay any company, person or firm, other than a bona fide employee working exclusively for the Consultant, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, the City shall have the right to terminate this Agreement. 12. Assignment and Subcontracting. 12.1 The City has awarded this Agreement to the Consultant due to its unique qualifications to perform these services. The Consultant shall not assign (or subcontract other than as specifically identified in Exhibit A) its performance under this Agreement or any portions of this Agreement without the prior written consent of the City, which consent must be sought at least thirty (30) days prior to the date of any proposed assignment. 12.2 Any work or services assigned or subcontracted hereunder shall be subject to each provision of this Agreement including Section 6, Public Records; Section 10, Nondiscrimination; proper bidding procedures where applicable; and all local, State and Federal statutes, ordinances and guidelines. 12.3 Any technical or professional service subcontract not listed in this Agreement, must have prior written approval by the City. 13. Termination. 13.1 Termination for Convenience. Either party may terminate this Agreement for any reason upon giving the other party no less than ten (10) business days written notice in advance of the effective date of such termination. 13.2 Termination for Cause. If the Consultant fails to perform in the manner called for in this Agreement, or if the Consultant fails to comply with any other provisions of this Agreement and fails to correct such noncompliance within five (5) business days of written notice thereof, the City may terminate this Agreement for cause. Termination shall be effected by serving a notice of termination on the Consultant setting forth the manner in which the Consultant is in default. The Consultant will only be paid for services and expenses complying with the terms of this Agreement, incurred prior to termination. 14. General Provisions. Colliers International Group Inc. PSA #: 24-026 East UGA LID Special Benefit Analysis Services – Project Number No. 21295 Version 05.11.24 Page 8 of 9 14.1 For the purpose of this Agreement, time is of the essence. 14.2 Notice. Notice provided for in this Agreement shall be sent by: 14.2.1 Personal service upon the Project Administrators; or 14.2.2 Certified mail to the physical address of the parties, or by electronic transmission to the e-mail addresses designated for the parties below. 14.3 The Project Administrator for the purpose of this Agreement shall be: For the City: For the Consultant: Brandon Lane, EIT, or designee Engineer II 525 N 3rd Ave Pasco, WA, 99301 laneb@pasco-wa.gov Evan Ranes, MAI, ASA, R/W-AC, or designee Managing Director | Las Vegas 6795 Agilysys Way #210 Las Vegas, NV 89113 Evan.Ranes@colliers.com 15. Dispute Resolution. 15.1 This Agreement has been and shall be construed as having been made and entered into and delivered within the State of Washington and it is agreed by each party hereto that this Agreement shall be governed by the laws of the State of Washington. 15.2 In the event of a dispute regarding the enforcement, breach, default, or interpretation of this Agreement, the Project Administrators, or their designees, shall first meet in a good faith effort to resolve such dispute. In the event the dispute cannot be resolved by agreement of the parties, said dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended, with both parties waiving the right of a jury trial upon trial de novo, with venue placed in Pasco, Franklin County, Washington. The substantially prevailing party shall be entitled to its reasonable attorney fees and costs as additional award and judgment against the other. 16. Nonwaiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other similar event or other provision of this Agreement. 17. Integration. This Agreement between the parties consists in its entirety of this document and any exhibits, schedules or attachments. Any modification of this Agreement or change order affecting this Agreement shall be in writing and signed by both parties. Colliers International Group Inc. PSA #: 24-026 East UGA LID Special Benefit Analysis Services – Project Number No. 21295 Version 05.11.24 Page 9 of 9 18. Authorization. By signature below, each party warrants that they are authorized and empowered to execute this Agreement binding the City and the Consultant respectively. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above. CITY OF PASCO, WASHINGTON Maria L. Serra, PE – Public Works Director COLLIERS INTERNATIONAL GROUP INC. Evan Ranes, MAI, ASA, R/W-AC ATTEST: Debra C. Barham, City Clerk APPROVED AS TO FORM: Kerr Ferguson Law, PLLC, City Attorney Colliers International Valuation & Advisory Services, and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 400+ offices throughout more than 62 countries worldwide. Colliers International Valuation & Advisory Services 6795 Agilysys Way, Suite 210 Las Vegas, NV 89113 MAIN +1 702.735.5700 WEB www.colliers.com August 22, 2024 Evan Ranes, MAI, ASA, R/W-AC Managing Director | Las Vegas 702-241-4313 evan.ranes@colliers.com Brandon Keith-Lane, EIT CIP – Engineer II City of Pasco 525 N Third Avenue Pasco, WA 99301 509-544-4128 laneb@pasco-wa.gov Re: East UGA LID – Special Benefits Analysis: 18 Parcels, Pasco, WA Dear Mr. Keith-Lane, Colliers International is pleased to provide a proposal for appraisal services regarding the East UGA LID – Special Benefits to 18 parcels. The parcels are as follows: 114-250-018 114-330-053 114-330-031 114-330-054 114-330-030 114-330-059 114-330-041 114-330-060 114-330-042 115-010-032 114-330-043 115-130-046 114-330-044 115-130-055 114-330-051 124-680-038 114-330-052 124-680-044 1.The report will include 18 individual Special Benefits values. 2.Delivery is 8 weeks from engagement (end of October). 3.Our fee is $31,500. 4.I have no conflicts of interest on this assignment I look forward to working with you on this project. Respectfully, Colliers International Valuation & Advisory Services Evan Ranes, MAI ASA R/W-AC Managing Director | Las Vegas Dir +1 702 241 4313 evan.ranes@colliers.com EXHIBIT A LAND SALES WITHOUT CITY UTILITIES &203$5$%/E /2&$7,21,1)250$7,21 Name Farm Land Address 661 Sun Harbor Dr City, State, Zip Code Burbank , WA, 99323 County Walla Walla APN Portion 320919330004 6$/E,1)250$7,21 Buyer Angelica and Angel Torres Seller John Rada Transaction Date 10/3/2024 Transaction Status Recorded Transaction Price $475,000 Analysis Price $475,000 Recording Number 5748 )$50/$1' Rights Transferred Fee Simple $1$/<6,6,1)250$7,21 3+<6,&$/,1)250$7,21Price $/Acre $/SF $/Unit Location Average Gross $10,556 $475,000 Site Size (Net)45.00 Acres (0 SF) Net $10,556 $475,000 Site Size (Gross)45.00 Acres (0 SF)&21),50$7,21 Zoning Ag Name Costar / Public Records Shape Rectangular Company Confidential Access Average Source Costar / Public Records Exposure Average Date / Phone Number 10/28/2024 Corner No 5E0$5.6 Property sold as portion of larger 129 acre property and has no city utilities other than electric COMPARABLE 2 LOCATION INFORMATION Name Industrial Land Address 8411 Postma Road City, State, Zip Code Moxee, WA, 98936 County Yakima APN 191336-4201 SALE INFORMATION Buyer Roy Farms Seller Industrial Properties Transaction Date 06/28/2023 Transaction Status Recorded Transaction Price $2,200,000 Analysis Price $2,200,000 Recording Number E040706 INDUSTRIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Financing All Cash Price $/Acre $/SF $/Unit Conditions of Sale Arms-Length Gross $29,224 $0.67 $2,200,000 PHYSICAL INFORMATION Net $29,224 $0.67 $2,200,000 Intended Use Industrial Land CONFIRMATION Location Average Name Fred Brader Site Size (Net)75.28 Acres (3,279,208 SF)Company Local Investor Site Size (Gross)75.28 Acres (3,279,208 SF)Source Knowledgeable Third Party Zoning L I Date / Phone Number 05/24/2024 +1 509 307 3902 Shape Rectangular REMARKS Topography Level Access Average Exposure Average Corner No Utilities Yes This large property appears to have an irrigation canal running east-west through the south half. Colliers verified this sale information with the Yakima Assessor records.We also asked local broker Bill Almon about the sale but he said his office was not involved. Fred Brader owns the property to the south and commented: Ithink the property was converted to a failed cannabis business and sold in distress. Roy Farms may plant hops there. Lester is known to buy property when distressed at low prices so that makes sense. COMPARABLE 3 LOCATION INFORMATION Name Low Density Land Address 99126 E Bastian Pr SE City, State, Zip Code Kennewick, WA, 99338 County Benton APN 127881000018 SALE INFORMATION Buyer Gavel, Theodore & Jodi Seller Livingston Conor Paul Transaction Date 08/2/2024 Transaction Status Recorded Transaction Price $500,000 Analysis Price $500,000 Recording Number 183676 LOW DENSITY LAND Rights Transferred Fee Simple ANALYSIS INFORMATION PHYSICAL INFORMATION Price $/Acre $/SF $/Unit Location Average Gross $22,915 $500,000 Site Size (Net)21.82 Acres (0 SF) Net $22,915 $500,000 Site Size (Gross)21.82 Acres (0 SF)CONFIRMATION Zoning Ag Name Costar / Public Records Shape Rectangular Company Assessor Access Average Source Costar / Public Records Exposure Average Date / Phone Number 10/30/2024 REMARKS Property is former farm land to be rezoned to low density residential. There are no wet utilites in service to this area. COMPARABLE 4 LOCATION INFORMATION Name Low Density Residential Address 23133 W Orcutt Rd City, State, Zip Code Benton City, WA, 99320 County Benton APN 134061000002001 SALE INFORMATION Buyer Knobbs, Karl Robert Seller Mooers Cleveland Transaction Date 05/20/2024 Transaction Status Recorded Transaction Price $1,800,000 Analysis Price $1,800,000 Recording Number 20240104453 LOW DENSITY RESIDENTIAL Rights Transferred Fee Simple ANALYSIS INFORMATION PHYSICAL INFORMATION Price $/Acre $/SF $/Unit Location Average Gross $30,227 $1,800,000 Site Size (Net)59.55 Acres (0 SF) Net $30,227 $1,800,000 Site Size (Gross)59.55 Acres (0 SF)CONFIRMATION Shape Irregular Name Costar / Public Records Access Average Company Assessor Exposure Average Source Costar / Public Records Date / Phone Number 10/31/2024 REMARKS Property has an older home and some farm support buildings but not city utilities COMPARABLE 6 LOCATION INFORMATION Name Industrial Land Address 2711 Sunnyside Mabton Road City, State, Zip Code Sunnyside, WA, 98944 County Yakima APN 220901-41404 SALE INFORMATION Buyer Confidential (pending) Seller Sunnyside Port District Transaction Date 04/1/2023 Transaction Status Pending Transaction Price $2,958,750 Analysis Price $2,958,750 Recording Number N/av. (pending)INDUSTRIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Financing All Cash Price $/Acre $/SF $/Unit Conditions of Sale Arms-Length Gross $75,000 $1.72 $2,958,750 PHYSICAL INFORMATION Net $75,000 $1.72 $2,958,750 Intended Use Industrial Land CONFIRMATION Location Average Name Jay Hester Site Size (Net)39.45 Acres (1,718,442 SF)Company Sunnyside Port District Site Size (Gross)39.45 Acres (1,718,442 SF)Source Seller Zoning M - 1 Date / Phone Number 02/22/2023 +1 509 391 0804 Shape Rectangular REMARKS Topography Level Access Average Exposure Average Corner No Utilities Yes Mr. Hester said that as a condition of the sale, the Port would be obligated to provide infrastructure, including a new access road off Sunnyside Mabton Road, and water and sewer utilities. COMPARABLE 2 LOCATION INFORMATION Name Medium Density Subdivision Address NEC Southgate Way &E Reata Rd City, State, Zip Code Kennewick, WA, 99352 County Benton APN Multiple Retired SALE INFORMATION Buyer Badger Communities, LLC Seller Nor Am Inv Dr White Transaction Date 11/10/2022 Transaction Status Recorded Transaction Price $15,345,000 Analysis Price $15,345,000 Recording Number 35332 MEDIUM DENSITY SUBDIVISION Rights Transferred Fee Simple ANALYSIS INFORMATION PHYSICAL INFORMATION Price $/Acre $/SF $/Unit Location Average Gross $39,184 $15,345,000 Site Size (Net)391.61 Acres (0 SF) Net $39,184 $15,345,000 Site Size (Gross)391.61 Acres (0 SF)CONFIRMATION Zoning Single Family Name Costar / Public Records Shape Irregular Company Confidential Access Average Source Costar / Public Records Exposure Average Date / Phone Number 10/29/2024 REMARKS This property sold in Kennewick in the path of development and was rezoned to low to medium density residential. The access is good but city utilities required extension. COMPARABLE 5 LOCATION INFORMATION Name Low Density Residential Address 3006-3026 Elm Rd City, State, Zip Code Pasco, WA, 99301 County Franklin APN 123-220-102 SALE INFORMATION Buyer Machugh, Timothy Randall Transaction Date 01/25/2024 Transaction Status Recorded Transaction Price $631,800 Analysis Price $631,800 Recording Number 2024.198239 Rights Transferred Fee Simple LOW DENSITY RESIDENTIAL PHYSICAL INFORMATION ANALYSIS INFORMATION Location Average Price $/Acre $/SF $/Unit Site Size (Net)32.40 Acres (0 SF) Gross $19,500 $631,800 Site Size (Gross)32.40 Acres (0 SF) Net $19,500 $631,800 Shape Irregular CONFIRMATION Access Average Name Costar / Public Records Exposure Average Company Confidential Source Costar / Public Records Date / Phone Number 11/1/2024 Confidential REMARKS Property is irregular shape farm with no city utilities LAND SALES WITH CITY UTILITIES &203$5$%/E /2&$7,21,1)250$7,21 Name Medium Density Subdivision Address NEC Southgate Way &E Reata Rd City, State, Zip Code Kennewick, WA, 99352 County Benton APN Multiple Retired 6$/E,1)250$7,21 Buyer Badger Communities, LLC Seller Nor Am Inv Dr White Transaction Date 11/10/2022 Transaction Status Recorded Transaction Price $15,345,000 Analysis Price $15,345,000 Recording Number 35332 0E',80'E16,7<68%',9,6,21 Rights Transferred Fee Simple $1$/<6,6,1)250$7,21 3+<6,&$/,1)250$7,21Price $/Acre $/SF $/Unit Location Average Gross $39,184 $15,345,000 Site Size (Net)391.61 Acres (0 SF) Net $39,184 $15,345,000 Site Size (Gross)391.61 Acres (0 SF)&21),50$7,21 Zoning Single Family Name Costar / Public Records Shape Irregular Company Confidential Access Average Source Costar / Public Records Exposure Average Date / Phone Number 10/29/2024 Confidential 5E0$5.6 This property sold in Kennewick in the path of development and was rezoned to low to medium density residential. The access is good but city utilities required extension. COMPARABLE 2 LOCATION INFORMATION Name DH Horton Sub Address SEQ of Burns Rd & Dent Rd City, State, Zip Code Pasco, WA, 99301 County Franklin APN 115-210-038, 115-210-061 SALE INFORMATION Buyer DR Horton, Inc Seller Big Sky Developers Transaction Date 08/9/2023 Transaction Status Recorded Transaction Price $7,260,000 Analysis Price $7,260,000 Recording Number 1977182 DH HORTON SUB Rights Transferred Fee Simple ANALYSIS INFORMATION Financing Cash at Settlement Price $/Acre $/SF $/Unit Conditions of Sale Arms-Length Gross $153,294 $3.52 $7,260,000 PHYSICAL INFORMATION Net $153,294 $3.52 $7,260,000 Intended Use Subdivision Land CONFIRMATION Location Average Name Confidential Site Size (Net)47.36 Acres (2,063,002 SF)Company Confidential Site Size (Gross)47.36 Acres (2,063,002 SF)Source DR Horton, Inc Zoning Med Density Res Date / Phone Number 10/23/2024 Confidential Shape Irregular REMARKS Topography Level Access Average Exposure Average Corner No Utilities Yes Site was purchase with utilities along Burns for development of 145 homes with 5,000 SF lots and priced between $390,000 and $490,000. COMPARABLE 3 LOCATION INFORMATION Name Winco Foods Site Address 805 Anderson Rd City, State, Zip Code Ellensburg, WA, 98926 County Kittitas APN 158133, 916833, 698633, 528633, 708633 SALE INFORMATION Buyer WINCO FOODS LLC Seller MTA HOLDINGS LLC Transaction Date 07/13/2023 Transaction Status Recorded Transaction Price $14,487,500 Analysis Price $14,487,500 Recording Number 2023-1074 WINCO FOODS SITE Rights Transferred Fee Simple ANALYSIS INFORMATION Financing Assumed Debt Price $/Acre $/SF $/Unit Conditions of Sale Arms-Length Gross $122,289 $2.81 $14,487,500 PHYSICAL INFORMATION Net $122,289 $2.81 $14,487,500 Intended Use Vacant Land CONFIRMATION Location Average/Good Name Public Record Flood Zone Not in Flood Hazard Area Company Kittitas County Assessor Site Size (Net)118.47 Acres (5,160,524 SF)Source CoStar Site Size (Gross)118.47 Acres (5,160,524 SF)Date / Phone Number 09/22/2024 Confidential Zoning LI REMARKS Shape Irregular Topography Generally Level Access Good Exposure Average/Good Corner No Utilities Yes 118.47 AC site that is made up of 5 contiguous tax parcels. Has LI zoning. Utilities are available to the site. 118.47 AC site with LI zoning purchased by Winco Foods. According to local news,and documents filed with the city, the buyer has plans of developing the 5-parcel site with a distribution warehouse >1MM SF, along with several other warehouses including a roughly 47,000- square-foot truck returns warehouse, a nearly 800-square-foot driver waiting building and an almost 400-square-foot check-in building,an on-site gas station and parking areas. COMPARABLE 4 LOCATION INFORMATION Name Group 14 Tech. Site Address 13184 Wheeler Road Northeast City, State, Zip Code Moses Lake, WA, 98837 County Grant APN 91121653 SALE INFORMATION Buyer Group14 Technologies Inc Seller Central Terminals, LLC Transaction Date 03/21/2023 Transaction Status Recorded Transaction Price $3,813,242 Analysis Price $3,813,242 Recording Number 1484364 GROUP 14 TECH. SITE Rights Transferred Fee Simple ANALYSIS INFORMATION Financing Assumed Debt Price $/Acre $/SF $/Unit Conditions of Sale Arms-Length Gross $87,100 $2.00 $3,813,242 PHYSICAL INFORMATION Net $87,100 $2.00 $3,813,242 Intended Use Vacant Land CONFIRMATION Location Fair/Average Name Kim Foster Flood Zone Not in Flood Hazard Area Company ASPI Site Size (Net)43.78 Acres (1,907,057 SF)Source Knowledgeable Third Party Site Size (Gross)43.78 Acres (1,907,057 SF)Date / Phone Number 09/9/2024 +1 425 264 1000 Zoning LI REMARKS Shape Generally Rectangular Topography Generally Level Access Average Exposure Fair/Average Corner No Utilities Yes Utilities available in Wheeler Road. 43.78-Acre Industrial Site in the City of Moses Lake. 43.78-acre industrial site purchased by Group 14 Technologies, Inc for development of Manufacturing Facility. Parcels is Rear-lying. The buyer is a Seattle-based company manufacturing advanced nano-structured materials for next-generation energy storage breakthroughs for advanced silicon-carbon composite anode materials for lithium-ion batteries COMPARABLE 5 LOCATION INFORMATION Name Reser's Fine Food Site Address 5526 N Capitol Ave City, State, Zip Code Pasco, WA, 99301 County Franklin APN 113-130-450 SALE INFORMATION Buyer Reser's Fine Food Inc. Seller Cox Family Land , LLC Transaction Date 06/17/2021 Transaction Status Recorded Transaction Price $3,076,800 Analysis Price $3,076,800 Recording Number 32602 RESER'S FINE FOOD SITE Rights Transferred Fee Simple ANALYSIS INFORMATION Financing All Cash Price $/Acre $/SF $/Unit Conditions of Sale Arms-Length Gross $56,228 $3,076,800 PHYSICAL INFORMATION Net $56,228 $3,076,800 Intended Use Industrial Land CONFIRMATION Location Average Name Public Record Flood Zone No Company Franklin County Assessor Site Size (Net)54.72 Acres (0 SF)Source CoStar Site Size (Gross)54.72 Acres (0 SF)Date / Phone Number 09/22/2024 Zoning Formerly AP-20 REMARKS Shape Irregular Topography Level Access Average Exposure Average Corner No Utilities Yes Site was formerly ag farmwith pivot and zoned AG-20 with good frontage on US 395 North and good access fromCapital Lane.Transaction was the historic land sale for development of the Reser Fine Food manufacturing / cold storage facility. Utilities were nearby at time of site purchase. COMPARABLE 1 LOCATION INFORMATION Name Amazon's Site Address 5700 North Capitol Avenue City, State, Zip Code Pasco, WA, 99301 County Franklin APN 113-130-451 SALE INFORMATION Buyer Amazon.com Services LLC Seller Pasco Processing Center Transaction Date 02/28/2024 Transaction Status Recorded Transaction Price $3,750,300 Analysis Price $3,750,300 Recording Number 75876 AMAZON'S SITE Rights Transferred Fee Simple ANALYSIS INFORMATION Financing All Cash Price $/Acre $/SF $/Unit Conditions of Sale Arms-Length Gross $149,952 $3.44 $3,750,300 PHYSICAL INFORMATION Net $134,612 $3.09 $3,750,300 Intended Use Industrial Land CONFIRMATION Location Average Name Confidential Site Size (Net)27.86 Acres (1,213,581 SF)Company Confidential Site Size (Gross)25.01 Acres (1,089,435 SF)Source Assessor Zoning I - 1 Date / Phone Number 03/2/2024 Confidential Shape Rectangular REMARKS Topography Level Access Average Exposure Average Corner No Utilities Yes This site along US 395 is zoned Light Industrial. Amazon will build a $25 m "last mile" distribution facility, which will employ 1,650, according to the Tri Cities Herald. Valuation Glossary 2023 Valuation & Advisory Services Direct: +1 206 695 4200 Fax: +1 206 682 7938 colliers.com 601 Union Street Suite 4800 Seattle, WA 98101 United States Absolute Net Lease A lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long-term lease to a credit tenant. (Dictionary) Ad Valorem Tax A real estate tax based on the assessed value of the property, which is not necessarily equivalent to its market value. (15th Edition) Arm’s-length Transaction A transaction between unrelated parties who are each acting in his or her own best interest. (Dictionary) As-Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. (Dictionary) Assessed Value The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value. (Dictionary) Average Daily Room Rate (ADR) In the lodging industry, the net rooms revenue derived from the sale of guest rooms divided by the number of paid occupied rooms. (Dictionary) Band of Investment A technique in which the capitalization rates attributable to components of an investment are weighted and combined to derive a weighted-average rate attributable to the total investment. (Dictionary) Cash-Equivalent Price The sale price of a property that is equivalent to what a cash buyer would pay. (Dictionary) Common Area The total area within a property that is not designed for sale or rental but is available for common use by all owners, tenants, or their invitees, e.g., parking and its appurtenances, malls, sidewalks, landscaped areas, recreation areas, public toilets, truck and service facilities. (Dictionary) Contract Rent The actual rental income specified in a lease. (15th Edition) Cost Approach A set of procedures through which a value indication is derived for the fee simple estate by estimating the cost new as of the effective date of the appraisal to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive; deducting depreciation from the total cost; and adding the estimated land value. The contributory value of any site improvements that have not already been considered in the total cost can be added on a depreciated-cost basis. Adjustments may then be made to the indicated value of the fee simple estate in the subject property to reflect the value of the property rights being appraised. (Dictionary) Curable Functional Obsolescence An element of depreciation; a curable defect caused by a flaw involving the structure, materials, or design, which can be practically and economically corrected. (Dictionary) Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service, which measures the relative ability of a property to meet its debt service out of net operating income; also called debt service coverage ratio (DSCR). (Dictionary) Deferred Maintenance Items of wear and tear on a property that should be fixed now to protect the value or income-producing ability of a property. (Dictionary) Depreciation In appraisal, a loss in the value of improvements from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the value of the improvement on the same date. (Dictionary) Direct Costs Expenditures for the labor and materials used in the construction of improvements; also called hard costs. (Dictionary) Unless specified otherwise, these definitions were extracted from the following sources or publications: The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 (Dictionary). Uniform Standards of Professional Appraisal Practice, 2020-2023 Edition (USPAP). The Appraisal of Real Estate, Fifteenth Edition, Appraisal Institute, Chicago, Illinois, 2020 (15th Edition). Discounted Cash Flow (DCF) Analysis The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate. (Dictionary) Discount Rate A rate of return on capital used to convert future payments or receipts into present value. (Dictionary) Disposition Value The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider their best interests. 7. An adequate marketing effort will be made during the exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. 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. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Easement The right to use another’s land for a stated purpose. Access or right-of-way easements may be acquired by private parties or public utilities. Governments may be the beneficiaries of easements placed on privately owned land that is dedicated to conservation, open space, or preservation. (15th Edition) Economic Life The period over which improvements to real estate contribute to property value. (Dictionary) Effective Age The age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age. (Dictionary) Effective Date The date on which the appraisal or review opinion applies (SVP) (Dictionary) Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income. (Dictionary) Effective Gross Income Multiplier (EGIM) The ratio between the sale price (or value) of a property and its effective gross income. (Dictionary) Effective Rent The total base rent, or minimum rent stipulated in a lease, over the specified lease term minus rent concessions - e.g. free rent, excessive tenant improvements, moving allowances, lease buyouts, cash allowances, and other lease incentives. (15th Edition) Eminent Domain The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property. (Dictionary) Entrepreneurial Incentive The amount an entrepreneur expects or wants to receive as compensation for providing coordination and expertise and assuming the risks associated with the development of a project. Entrepreneurial incentive is the expectation of future reward as opposed to the profit actually earned on the project. (Dictionary) Entrepreneurial Profit A market-derived figure that represents the amount an entrepreneur received for his or her contribution to a past project to compensate for his or her time, effort, knowledge, and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. (Dictionary) Excess Land Land that is not needed to serve or support the existing use. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. (Dictionary) Excess Rent The amount by which contract rent exceeds market rent at the time of the appraisal; created by a lease favorable to the lessor and may reflect superior management, a lease execution in an earlier, stronger rental market, or an agreement of the parties. Due to the higher risk inherent in the receipt of excess rent, it may be calculated separately and capitalized or discounted at a higher rate in the income capitalization approach. (15th Edition) Expense Stop A clause in a lease that limits the landlord's expense obligation, which results in the lessee paying any operating expenses above a stated level or amount. (Dictionary) Exposure Time An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. (USPAP) Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. (USPAP) External Obsolescence A type of depreciation; a diminution in value caused by negative external influences and generally incurable on the part of the owner, landlord, or tenant. The external influence may be either temporary or permanent. There are two forms of external obsolescence: economic and locational. (Dictionary) Fair Market Value In nontechnical usage, a term that is equivalent to the contemporary usage of market value. As used in condemnation, litigation, income tax, and property tax situations, a term that is similar in concept to market value but may be defined explicitly by the relevant agency or interpreted differently by court precedent. (Dictionary) Feasibility Analysis A study of the cost-benefit relationship of an economic endeavor. (USPAP) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. (Dictionary) Floor Area Ratio (FAR) The relationship between the above-ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. (Dictionary) Functional Obsolescence The impairment of functional capacity of improvements according to market tastes and standards. (Dictionary) Functional Utility The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms. (Dictionary) Furniture, Fixtures, and Equipment (FF&E) Business trade fixtures and personal property, exclusive of inventory. (Dictionary) Going-concern An established and operating business having an indefinite future life. (Dictionary) Going-concern Value An outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business. (Dictionary) Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. (Dictionary) Gross Leasable Area (GLA) Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces. (Dictionary) Gross Living Area (GLA) Total area of finished, above-grade residential space area; calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. (Finished basements and attic areas are not generally included in total gross living area. Local practices, however, may differ.) (Dictionary) Highest & Best Use The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid (IVS). (Dictionary) Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP) Income Capitalization Approach In the income capitalization approach, an appraiser analyzes a property’s capacity to generate future benefits and capitalizes the income into an indication of present value. The principle of anticipation is fundamental to this approach. Techniques and procedures from this approach are used to analyze comparable sales data and to measure obsolescence in the cost approach. (15th Edition) Incurable Functional Obsolescence An element of depreciation; a defect caused by a deficiency or superadequacy involving the structure, materials, or design that cannot be practically or economically corrected as of the effective date of the appraisal. (Dictionary) Indirect Costs Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract. Indirect costs may include administrative costs, professional fees, financing costs and the interest paid on construction loans, taxes and the builder's or developer's all-risk insurance during construction, and marketing, sales, and lease-up costs incurred to achieve occupancy or sale. Also called soft costs. (Dictionary) Interim Use The use contemplated by the market participants that the subject real estate can be put to while waiting for certain subsequent factors to occur. (Dictionary) Investment Value The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. (Dictionary) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversion right when the lease expires. (Dictionary) Leasehold Estate The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (Dictionary) Legal Nonconforming Use A use that was lawfully established and maintained, but no longer conforms to the use regulations of its current zoning; sometimes known as a legally nonconforming use. (Dictionary) Liquidation Value The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing effort is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. 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. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Market Area The geographic region from which a majority of demand comes and in which the majority of competition is located. Depending on the market, a market area may be further subdivided into components such as primary, secondary, and tertiary market areas, or the competitive market area may be distinguished from the general market area. (Dictionary) Market Rent The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. (Dictionary) Market Study An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area. (Dictionary) Market Value (Most Common Non-FRT) The most probable price, as of a specific date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue distress. (Dictionary) Market Value (Interagency Guidelines) The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Interagency Appraisal and Evaluation Guidelines, Federal Register, December 10, 2010. Marketability Analysis The study of how a specific property is expected to perform in a specific market. A marketability analysis expands on a market analysis by addressing a specific property. (Dictionary) Neighborhood Analysis The objective analysis of observable or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property values; focuses on four sets of considerations that influence value: social, economic, governmental, and environmental factors. (Dictionary) Net Net Net Lease An alternative term for a type of net lease. In some markets, a net net net lease is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management. Also called NNN lease, triple net lease, or fully net lease. (Dictionary) Net Operating Income (NOI) The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted. Note: This definition mirrors the convention used in corporate finance and business valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization). (15th Edition) Obsolescence One cause of depreciation; an impairment of desirability and usefulness caused by new inventions, changes in design, improved processes for production, or external factors that make a property less desirable and valuable for a continued use; may be either functional or external. (Dictionary) Off-site Costs Costs incurred in the development of a project excluding on- site costs such as grading and construction of the building and other improvements; also called common costs or off- site improvement costs. (Dictionary) On-site Costs Costs incurred for the actual construction of buildings and improvements on a particular site. (Dictionary) Overage Rent The percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of a specified breakeven sales volume. (15th Edition) Overall Capitalization Rate (OAR) The relationship between a single year’s net operating income expectancy and the total property price or value. (Dictionary) Parking Ratio The ratio of parking area or parking spaces to an economic or physical unit of comparison. Minimum required parking ratios for various land uses are often stated in zoning ordinances. (Dictionary) Potential Gross Income (PGI) The total income attributable to property at full occupancy before vacancy and operating expenses are deducted. (Dictionary) Potential Gross Income Multiplier (PGIM) The ratio between the sale price (or value) of a property and its annual potential gross income. (Dictionary) Present Value (PV) The value of a future payment or series of future payments discounted to the current date or to time period zero. (Dictionary) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not achieved sellout or a stabilized level of long- term occupancy. (Dictionary) Qualitative Adjustment An indication that one property is superior, inferior, or similar to another property. Note that the common usage of the term is a misnomer in that an adjustment to the sale price of a comparable property is not made. Rather, the indication of a property’s superiority or inferiority to another is used in relative comparison analysis, bracketing, and other forms of qualitative analysis. (Dictionary) Quantitative Adjustment In the application of the sales comparison and income capitalization approaches, a numerical (dollar or percentage) adjustment to the sale price, rent, or expense amount of a comparable property to account for the effect on value of a difference between each comparable property and the subject property. (Dictionary) Rentable Area The amount of space on which the rent is based; calculated according to local practice. (Dictionary) Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. (Dictionary) Replacement Cost for Insurance Purposes The estimated cost, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design and layout for insurance coverage purposes guaranteeing that damaged property is replaced with a new property (i.e., depreciation is not deducted). (Dictionary) Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same or similar materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. (Dictionary) Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.” (Dictionary) Sales Comparison Approach The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered vacant when an adequate supply of comparable sales is available. (Dictionary) Scope of Work The type and extent of research and analysis in an appraisal or appraisal review assignment. Scope of work includes, but is not limited to: The extent to which the property is identified; The extent to which tangible property is inspected; The type and extent of data researched; and The type and extent of analysis applied to arrive at opinions or conclusions. (USPAP) Shopping Center Types Neighborhood Shopping Center: The smallest type of shopping center, generally with a gross leasable area of between 30,000 and 100,000 square feet. Typical anchors include supermarkets. Neighborhood shopping centers offer convenience goods and personal services and usually depend on a market population support of 3,000 to 40,000 people. Community Shopping Center: A shopping center of 100,000 to 400,000 square feet that usually contains one junior department store, a variety store, discount or department store. A community shopping center generally has between 20 and 70 retail tenants and a market population support of 40,000 to 150,000 people. Regional Shopping Center: A shopping center of 300,000 to 900,000 square feet that is built around one or two full-line department stores of approximately 200,000 square feet each plus small tenant spaces. This type of center is typically supported by a minimum population of 150,000 people. Super-Regional Center: A large center of 600,000 to 2.0 million square feet anchored by three or more full-line department stores. This type of center is typically supported by a population area of 300,000 people. (15th Edition) Sum of the Retail Values The sum of the separate and distinct market value opinions for each of the units in a condominium; subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as sold together in a single transaction; it is simply the total of the individual market value conclusions. An appraisal has an effective date, but summing the sales prices of multiple units over an extended period of time will not be the value on that one day unless the prices are discounted to make the value equivalent to what another developer or investor would pay for the bulk purchase of the units. Also called the aggregate of the retail values or aggregate retail selling price. (Dictionary) Superadequacy An excess in the capacity or quality of a structure or structural component; determined by market standards. (Dictionary) Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. (Dictionary) Tenant Improvements (TIs) 1. Fixed improvements to the land or structures installed for use by a lessee. 2. The original installation of finished tenant space in a construction project; subject to periodic change for succeeding tenants. (Dictionary) Usable Area The area that is actually used by the tenants measured from the inside of the exterior walls to the inside of walls separating the space from hallways and common areas. (Dictionary) Useful Life The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed. (Dictionary) Vacancy and Collection Loss A deduction from potential gross income (PGI) made to reflect income deductions due to vacancies, tenant turnover, and nonpayment of rent; also called vacancy and credit loss or vacancy and contingency loss. (Dictionary) Yield Capitalization A method used to convert future benefits into present value by (1) discounting each future benefit at an appropriate yield rate, or (2) developing an overall rate that explicitly reflects the investment's income pattern, holding period, value change, and yield rate. (Dictionary) Managing Director | Las Vegas Valuation & Advisory Services evan.ranes@colliers.com Direct: +1 702 836 3749 Mobile: +1 702 241 4313 colliers.com 6795 Agilysys Way Suite 210 Las Vegas, NV 89113 United States Evan Ranes, MAI, ASA, R/W-AC Area of Expertise Evan Ranes is the Managing Director of the Las Vegas Office for Colliers Valuation & Advisory Services. He began his appraisal career in 1992 in Las Vegas and has performed valuations and consulting services on a wide variety of property types and property rights. Valuation expertise is with a variety of assignments including mortgage lending, going concerns, condemnation (right-of- way), conservation easements, land leases, minority and fractional ownership interest. Property types include hospitality, senior housing, multifamily, office, retail, industrial, agricultural, and subdivision. Mr. Ranes has extensive gaming and hotel experience having appraised numerous hotel casinos in states that include Nevada, California, New Jersey, Washington, New Mexico, Iowa, and Nebraska. Notable assignments include Wynn & Encore Resort Las Vegas, Showboat Hotel Casino Atlantic City, Harrah’s Hotel Casino Reno, Warhorse Hotel Casino Racetrack Lincoln Nebraska, and Prairie Meadows Altoona Iowa. Hospitality experience includes hotel, motel, resort, casino, racino, golf course, water parks and amusement parks. Senior housing experience includes independent living, assisted living facilities, memory care, skilled nursing, congregate care, and fair market value rent studies for Stark & Anti-Kickback Laws. Litigation experience includes tax appeal, condemnation, right-of-way, landlord tenant disputes, divorce, estate valuation, and bankruptcy. Mr. Ranes has testified as an Expert Witness in the following jurisdictions: Clark County District Court, San Diego County Superior Court, San Diego County District Court, Utah District Court. Nevada District Court, Los Angeles Superior Court, Orange County Superior Court, Mohave County Superior Court, U.S. Bankruptcy Court, Iowa District Court, and Arbitration Los Angeles – JAMS. Affiliations or Memberships MAI, Designated Member of the Appraisal Institute ASA, Accredited Senior Appraiser, American Society of Appraisers R/W-AC, International Right of Way Association Clark County Board of Equalization – 2023 to present Appraisal Institute – Public Relations Chairman 1999 to 2000 Las Vegas Chapter Professional Background Managing Director | Las Vegas, Colliers International Valuation & Advisory Services 2018 to present First Vice President | Las Vegas, Newmark Knight Frank Valuation & Advisory Services, 2017 to 2018 Managing Director | Western U.S., Healthcare Practice Leader, Newmark Knight Frank Valuation & Advisory Services, 2014 to 2017 Managing Director | Las Vegas, Newmark Knight Frank Valuation & Advisory, Services, 2012 to 2014 Senior Appraiser, Grubb & Ellis/Landauer, 2011 to 2012 Associate Appraiser, Lubawy & Associates, 1995 to 2011 Appraiser Intern, George A. Smith & Associates, 1992 to 1995 Education or Qualifications M.B.A., University of Nevada, Las Vegas B.S. Portland State University State Certifications Arizona California Hawaii New Mexico Nevada Oregon Utah Washington State of Washington DEPARTMENT OF LICENSING APPRAISER PROGRAM PO Box 9021 Olympia, WA 98507-9021 EVAN RANES 6795 S AGILYSYS WAY LAS VEGAS NV 89113-2324 CERTIFIED GENERAL REAL ESTATE APPRAISER EVAN RANES 6795 S AGILYSYS WAY LAS VEGAS NV 89113-2324 1102235 01/03/2023 02/03/2024 License Number Issue Date Expiration Date Accelerating success. Valuation & Advisory Services Real estate valuations play a pivotal role in today’s business climate. An accurate and well supported opinion of property value can mean the difference between reaching a critical goal—securing a loan, closing a sale, reporting to investors, choosing the best asset—or failing to achieve it altogether. 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This secure, centralized production system generates a wide range of reports and high volume portfolio orders without delays. Information Today’s business climate places valuation in a more pivotal position than ever before. All our appraisals are evaluated and approved by an experienced review team to ensure our clients receive concise and timely appraisals. With clear, prompt reporting and a comprehensive, big picture approach, Colliers’ valuation and advisory reports give our clients the information they need to make better business decisions. Real estate advisors in 501 offices in 65 countries. 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