An Appraisal Assignment The Second Floor of Located

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An Appraisal Assignment Estimating the Market Value of

The Second Floor of

204 South Galena St Aspen, CO

Located COA Block 94 Lots A, B & C

Prepared at the Request of City of Aspen

Steve Barwick, City Manager 130 S Galena St

Aspen, CO 81611

Effective Date of Appraisal October 10, 2018

Date of Report

October 11, 2018

Appraised By David Ritter, MNAA

The Appraisal Office - Aspen Ltd 210 S Galena St Ste 29

Aspen, CO 81611

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Letter of Transmittal The Appraisal Office - Aspen Ltd

210 S GALENA ST STE 29 ASPEN, COLORADO 81611 Real Estate Appraisals - Feasibility Studies - Investment Analysis - Consultation Services

October 11, 2018 Steve Barwick, City Manager 130 S Galena Street City Hall, 2nd Floor Aspen, CO 81611

RE: 2nd Floor of 204 S Galena St Aspen, CO 81611 Original City & Townsite of Aspen Block 94 Lots A, B & C

To Whom It May Concern:

Pursuant to your request, I herewith submit for your review this appraisal report, the purpose of this appraisal report is to estimate the Market Value of the Fee Simple Estate interest in the described property as of effective date of appraisal. This appraisal was completed based on the hypothetical condition that the subject property has been remodeled as per Option C – 517/204 second level floor plan which can be found in the addendum to this appraisal report.

A physical description of the property is contained in the body of the appraisal report. The methods I have used in arriving at my value conclusion and all pertinent supporting data gathered in my investigation are included in this report. Please pay special attention to the section entitled Scope of the Assignment and hypothetical condition contained in this appraisal report which discusses more fully the types and sources of data used and the potential limitations of the analyses contained herein.

The body of this report contains 31 pages and the addendum contains 17 pages. This appraisal report should not be considered complete without all of them.

I certify that I have physically inspected the property and have personally assembled all the data in support of this estimate of value. I further certify that I have no present or contemplated future interest in this property beyond this estimate of value. This appraisal was completed in conformity with the Uniform Standards of Professional Appraisal Practice Standards and the Code of Ethics of the USPAP and the National Association of Appraisers.

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Final Estimate of Fair Market Value

After considering all of the information and analyses in this report, I have arrived at a final estimate of Market Value for the 2nd Floor of 204 S Galena Street Aspen, Colorado of October 8, 2018 base on the hypothetical condition that the subject property has been remodeled as per Option C – 517/204 second level floor plan. Based on the hypothetical condition, as of the effective date of appraisal, I concluded that the Market Value of 2nd Floor of 204 S Galena Street Aspen, Colorado was;

Seven Million Dollars

($7,000,000.00)

This value estimate is subject to the Certification, to the Contingent and Limiting Conditions, the Scope of Assignment and the Hypothetical Conditions contained herein.

Based upon commercial activity in the Aspen marketplace and assuming no significant changes in marketplace conditions, tenancy and rental rates in the Aspen commercial core area marketplace, it is my opinion that at or near the appraised market value, the marketing time and exposer time for the subject property would be the same twelve to twenty-four months.

Respectfully Submitted,

_____________________ David Ritter, MNAA Appraisal License – CG #315907 Expiration Date - 12/31/2018

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Table of Contents

CERTIFICATION ........................................................................................................................................ 6

CONTINGENT & LIMITING CONDITIONS, AND GENERAL UNDER LYING ASSUMPTIONS . 7

COPY RIGHT NOTICE .............................................................................................................................. 9

CLIENT RELATIONSHIP ......................................................................................................................... 9

PURPOSE OF APPRAISAL ....................................................................................................................... 9

USE OF APPRAISAL .................................................................................................................................. 9

ESTATE INTEREST APPRAISED ............................................................................................................ 9

EFFECTIVE DATE OF APPRAISAL ....................................................................................................... 9

DATE OF APPRAISAL REPORT ............................................................................................................. 9

SCOPE OF THE ASSIGNMENT ............................................................................................................. 10

IDENTIFICATION OF SUBJECT PROPERTY .................................................................................... 10

SALES HISTORY ...................................................................................................................................... 11

LISTING HISTORY .................................................................................................................................. 11

CONTRACT TO BUY ............................................................................................................................... 11

ASSESSED VALUE, TAXES AND SPECIAL ASSESSMENTS ........................................................... 11

FF&E - PERSONALTY ............................................................................................................................. 11

AREA ANALYSIS - THE ASPEN REGION ........................................................................................... 11

CURRENT OVERALL MARKET CONDITIONS - ASPEN REGION .. ............................................. 15

MARKET CONDITIONS – ASPEN’S COMMERCIAL MARKETPLACE ....................................... 15

SUMMARY COMMENTS ........................................................................................................................ 16

SUBJECT PROPERTY’S ECONOMIC NEIGHBORHOOD ............................................................... 16

SITE ANALYSIS ........................................................................................................................................ 16

IMPROVEMENTS ANALYSIS ................................................................................................................ 18

MARKET COMPETITION ...................................................................................................................... 19

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HIGHEST AND BEST USE ANALYSIS ................................................................................................. 20

CONCLUSION HIGHEST AND BEST USE ..................................................................................................... 21

UNIT OF COMPARISON ......................................................................................................................... 21

THE APPRAISAL PROCESS ................................................................................................................... 21

THE COST APPROACH TO VALUE .............................................................................................................. 21 Conclusion of Market Value - Cost Approach .................................................................................... 21

THE MARKET APPROACH TO VALUE ........................................................................................................ 22 Comparable Sales Analysis ................................................................................................................. 22

THE INCOME APPROACH TO VALUE ......................................................................................................... 23 Conclusion of Market Value - Income Approach ................................................................................ 27

RECONCILIATION OF THE APPROACHES ...................................................................................... 27

FINAL ESTIMATE OF MARKET VALUE .................... ....................................................................... 28

PERTINENT DEFINITIONS .................................................................................................................... 29

ADDENDUM

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Certification

I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported

assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.

3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

5. My engagement in this assignment was not contingent upon developing or reporting predetermined results.

6. My 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.

7. I have not performed previous appraisal or a professional service of the subject property within the three years prior to this assignment.

8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the National Association of Appraiser.

9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

10. The use of this report is subject to the requirements of the NAA relating to review by its duly authorized representatives.

11. I have made a personal inspection of the property that is the subject of this report. 12. No one provided significant real property appraisal assistance to the person signing

this certification. 13. As of the date of this report, I have completed the continuing education program of

the State of Colorado Department if Regulatory Agencies Division of Real Estate, and the National Association of Appraisers.

_____________________ David Ritter, MNNA Appraisal License - CG # CG1315907 Expiration Date - 12/31/2018

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Contingent & Limiting Conditions, and General Underlying Assumptions

1. The appraiser has made no survey of the property, and no responsibility is assumed in connection with such matters. The copy of the subject property’s plans in the addendum to this report are included only to assist the reader in visualizing the property.

2. No responsibility is assumed for matters of a legal nature affecting title to the property nor is an opinion of title rendered. The title is assumed to be good and marketable.

3. Information furnished by others is assumed to be true, correct, and reliable. A reasonable effort has been made to verify such information; however, the appraiser assumes no responsibility for its accuracy.

4. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so specified within the report. The property is appraised as though under responsible ownership and competent management.

5. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. No responsibility is assumed for such conditions due to the appraiser’s acknowledged lack of the engineering expertise, which may be required to discover such factors.

6. Full compliance with all applicable federal, state, and local environmental regulations and laws is assumed unless noncompliance is stated, defined, and considered in the appraisal report.

7. Full compliance with all applicable zoning and use regulations and restrictions is assumed unless nonconformity has been stated, defined and considered in the appraisal report.

8. It is assumed that all required licenses, consents, or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

9. It is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted within the report.

10. The appraiser will not be required to give testimony or appear in court because of having made this appraisal, with reference to the property in question, unless arrangements have been previously made.

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11. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in the case of any such event only with proper written qualification and only in its entirety.

12. The distribution of the total valuation in this report between land and improvements applies only under the reported Highest and Best Use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used.

13. Neither all nor any part of the contents of this report, or a copy thereof, shall be conveyed to the public through advertising, public relations, news, sales, or any other media without the written consent and approval of the appraiser. Nor shall the appraiser, firm, or any professional organization of which the appraiser is a member be identified without the written consent of the appraiser.

14. Environmental Disclaimer: The value estimated in this report is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions. The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. While the appraiser’s routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively, it is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous materials and environmental conditions on or around the property that would negatively affect its value. Thus, if the client wishes to be certain as to the condition of the subject property with respect to environmental hazards, he should have an expert in the field inspect the property. It should thus be noted that this appraisal does not constitute an expert inspection of the property with regard to hazardous substances or detrimental environmental conditions and it should not be relied upon as to whether or not environmental hazards actually exist on the subject property.

15. ADA Disclaimer as property exists at the time of appraisal: The subject property was built after to the enactment of ADA. It is assumed that the subject property will meet ADA requirements after its proposed remodeling project. However, since the appraiser is not an expert in ADA compliancy it is his recommendation that an expert in this field be retained to determine if the subject property compliances with all ADA regulations. The valuation herein does not take into account any such contingent liability.

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Copy Right Notice

Possession of this report, or a copy thereof, does not carry with it the right of publication or reproduction. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in the case of any such event only with proper written qualification and only in its entirety. Please note that David Ritter and The Appraisal Office – Aspen, Ltd., Aspen, Colorado, copyright all of the contents of this report.

Client Relationship

This appraisal report has been prepared for the exclusive benefit of the City of Aspen, my sole client. It may not be used or relied upon by any other party, regardless of whether that other party pays the appraisal fee, either directly or indirectly. Any party who uses or relies upon any information in this report without the preparer’s written consent does so at his or her own risk.

Purpose of Appraisal

The purpose of this appraisal is to estimate the market value of the subject property as of effective date of appraisal based upon the hypothetical conditions stated in this appraisal report.

Use of Appraisal

It is the understanding that the use of the appraisal is for due diligence pursuant to the existing contract.

Estate Interest Appraised

The estate interest appraised will be the fee simple estate interest.

Effective Date of Appraisal

The effective date of estimated of value is October 10, 2018.

Hypothetical Conditions

This appraisal was completed based on the hypothetical condition that the 204 South Galena Street Building has been condominiumized. This appraisal was completed based on the hypothetical condition that the subject property has been combined with the proposed 517 East Hopkins Building second floor into one economic unit as per Option C – 517/204 second level floor plan. However, this appraisal will be estimating the market value of the second level of the second floor of the 204 South Galena Street building only and does not include the market value of the second floor of the 517 East Hopkins Street Building.

Date of Appraisal Report

The date of appraisal report is October 11, 2019

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Scope of the Assignment

The Scope of this appraisal is to estimate the Market Value (as defined) of the Fee Simple interest in the subject property utilizing — as applicable — the Cost Approach, the Market or Sales Comparison Approach and the Income Approach, all according to the Uniform Standards of Professional Practice of the appraisal profession, as the property exists on effective date of appraisal.

Due to the subject property being a condominium unit the cost approach was deemed not applicable. Due to the lack of resent sales and current listings of large single-user commercial office spaces in Aspen’s Central Business District the Market or Sales Comparison Approach was deemed minimally applicable in estimating the market value of the subject property.

The Income Approach was deemed to be the most applicable approach in estimating the market value of the subject property.

The valuation of the subject has been based on a physical inspection of the interior and exterior of the subject property and a physical inspection of the interior and exterior of all comparable rental properties cited in the appraisal report. Income and expense information for the subject property was provide to the appraiser from the subject property’s representative. Income and expense information for comparable properties in the Aspen Central Business District was obtained through conversations with management companies, property owners and from prior appraisals of commercial property completed by the appraiser and other appraisers in the Aspen marketplace.

Identification of Subject Property

The subject of this appraisal report is the second floor of the 204 South Galena Street Building only.

Legal Description

To Be Determined

Address

204 South Galena Street Aspen, CO 81611

Parcel Number

To Be Determined

Account Number

To Be Determined

Owner of Record

204 S Galena St LLC

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Census Tract Number

Pitkin 08 097 0001.0

Map Reference

Not Mapped

Sales History

According to Pitkin County public records the subject property has not sold during the past 5 years

Listing History

According to Aspen's MLS the subject property has not been listed for sale over the past 5 years.

Contract to Buy

The subject property is part of the Amended and Restated Contract to Buy and Sell Real Estate (Commercial) date July 12, 2018. The sellers are 517 East Hopkins Aspen, LLC and 204 South Galena Street, LLC and the buyer is City of Aspen. The purchase price for 517 East Hopkins 2nd level is $23,000,000 and the purchase price for the subject property, 204 South Galena St 2nd floor, is $9,500,000 includes remodeling costs and the cost of combining the two units into one economic unit as per Option C – 517/204 second level floor plan floor plan which can be found in the addendum to this appraisal report. The subject of this appraisal report is 204 South Galena Street 2nd floor only.

Assessed Value, Taxes and Special Assessments

To Be Determined

FF&E - Personalty

No FF&E – personalty has been included in the market value estimate for the subject property.

Area Analysis - The Aspen Region

Brief History of Aspen

Archaeologists recently discovered that ancient people made their homes in the mountains near Aspen, Colorado 8,000 years ago. Ute Indian tradition says that these Shining Mountains have always been their homeland. First silver and later near perfect snow conditions enticed more recent settlers to the Roaring Fork Valley.

Leadville was the second largest city in Colorado in 1879, when prospectors from Gothic and Leadville crossed the Continental Divide into the Ute’s summer hunting territory to

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discover one of the richest silver lodes the world had ever known. They named their Camp Ute City, but by spring the name had been changed to Aspen.

Many mining camps were temporary settlements; however Aspen had the winning combination of rich silver ores, two competing railroads and ample investment from wealthy Victorian capitalists such as Jerome B. Wheeler, President of Macy’s department store and Cincinnati lawyer and businessman David Hyman. Aspen quickly became an urban, industrialized community with impressive architecture, leaving Independence, Ashcroft, Ruby and other camps to become ghost towns.

By 1891 the production of Aspen’s silver fields had surpassed even rival Leadville, making it the nation’s largest single silver producing mining district. By 1893 Aspen’s 12,000 residents had six newspapers, two theaters, an opera house and a very small brothel district.

Aspen’s fortunes fell with the U.S. Government’s repeal of the Sherman Silver Act and the return of the gold standard in 1893. Ironically, one of the largest nuggets of native silver ever found was mined in 1894 in Aspen weighting in at almost 2,200 pounds. As mining declined, Aspen survived as a rural county seat and ranching center

Just 700 people called Aspen home in 1935 when international outdoorsmen came to the Roaring Fork Valley in search of the ideal location for a ski resort. They hired the famous Swiss avalanche expert Andre Roch to develop a ski area based in the ghost town of Ashcroft but had to cancel their plans with the outbreak of World War II. Meanwhile, Mr. Roch and the enthusiastic Aspen Ski Club cut a race course on Aspen Mountain served by a “boat tow” – two massive sleds pulled up the hill by an old mine hoist and a gas motor.

While plans for a ski resort were delayed by WWII, later ski development was actually enhanced by the presence of the Army’s 10th Mountain Division training in nearby Camp Hale. Many soldiers skied in Aspen while on leave. Some, including Austrian Friedl Pfeifer, planned to return in peace time.

Pfeifer teamed up with Chicago industrialist Walter Paepcke and his art patron wife Elizabeth. The Paepckes were interested in the community’s potential as a summertime cultural center; Pfeifer hoped to build a ski resort on a par with Europe’s best.

In 1947 Aspen Mountain opened with the world’s longest ski lift. In 1949 Paepcke with the University of Chicago masterminded the Goethe Bicentennial Convocation in Aspen celebrating the great humanist’s 200th birthday with international leaders, artists and musicians. Aspen’s role as a cultural center was consumed by the music, art, dance, theater and international studies program which developed for the Convocation. Shortly after this, Aspen became the first ski resort in America to host an international competition, precursor to today’s World Cup Races.

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Three more mountains – Buttermilk (1958), Aspen Highlands (1958) and Snowmass (1968) – added to Aspen’s reputation as a premiere international resort and Aspen flourished in summertime with the combination of climate, recreation, history and culture. The unanticipated growth of an appealing community based on world class skiing and culture spurred a concerned local population to turn to zoning and later to adopt controversial growth control measures.

From hunting territory to mining city through “The Quiet Years” as an agricultural center to the present, the history of Aspen is a story of a town with a changing economy with a distinct mix of locals and visitors, recreation and culture, landscape and sport.

Source: Aspen Historical Society, September 6, 2006

Regional Data

Local and regional factors play important roles in any real estate market, so they need to be addressed.

Geographic Location

Aspen is the commercial and governmental center of the eastern Roaring Fork River Valley, which embraces most of Pitkin County (of which Aspen is the county seat) and portions of Eagle and Garfield Counties. It is approximately 160 miles southwest of Denver and 130 miles southeast of Grand Junction. It is just west of the continental divide (at Independence Pass). Commercially, Aspen either serves or affects an economic base area extending west approximately seventy miles to Rifle, an area that houses many of the people who work in Aspen on a year-round basis.

Transportation Links

Access to Aspen by road is limited to two main routes, one of which, Independence Pass, the easterly approach, is open only in the summer months. The westerly approach, State Route 82 from Glenwood Springs, 42 miles northwest, provides year-round access and is itself accessed from Interstate 70 between Denver and Grand Junction. Access by air is possible through the Pitkin County Airport (Sardy Field), which is served by several commuter airlines and is readily accessible to general aviation. Passenger Rail transportation is limited to Amtrak daily service at Glenwood Springs.

Economic Bases, Population Growth and Governmental Factors

The economy of Aspen today is clearly based upon tourism – skiing in the winter and a mixture of cultural events, conferences, and mountain scenery in the summers. To support this primary industry (tourism) the Aspen area has developed a bed count, or, more technically, a pillow count, base totaling approximately 13,300 (7,300 in Aspen and 6,000 in Snowmass). The limited growth control policies in force in Aspen and Pitkin County have severely limited additions to this base. This factor has assured higher

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occupancy and average daily room rate (ADR) figures than might occur in less-controlled situations, such as those found in other resort communities across the country. The growth of tourism in the Aspen area has, of course, led to corresponding increases in population, especially since 1960. However, since the 1980s, the restrictive growth policies of the City of Aspen and Pitkin County have limited growth over the past 3 decades.

Population

Pitkin County % of Change City of Aspen % of Change

1960 Census 2,381 Unavailable 1970 Census 6,185 10.20% 2,437 1980 Census 12,100 6.94% 3,678 4.20% 1990 Census 12,661 0.45% 5,049 3.22% 2000 Census 14,872 1.62% 5,914 1.59% 2010 Census 17,148 1.43% 6,658 1.19% While it needs to be pointed out that commercial expansion and building permit figures were both limited by the costly, stringent, complex, subjective, highly discretionary and political growth control policies established by the City of Aspen and Pitkin County in the mid-1970s, the significance of all of these statistics is that the growth of population and economic activity in the Aspen area has far exceeded what might be attributed solely to increased skier visits and inflation. This is not to deny the importance of skiing to the Aspen economy, but only to say that other factors are increasing in the Aspen marketplace and they are serving to give the economy some greater measure of stability than is typically found in totally skiing-based economies.

Summary Comments

Clearly, the Aspen economy has undergone significant growth during the last 15 to 25 years and has reached a level of economic activity and stability that very few ski towns enjoy. Some measure of Aspen’s success in this regard may be seen in the fact that even when there is a decline in skier visit days to the area, sales tax collections actually show an increase. Also, given the types of custom homes now being built in the area; the investment in modern luxury hotel facilities; the extensive resort amenities the area now offers, other than alpine skiing; and the area’s growing professional population; it can only be expected that this trend away from dependence on alpine skiing will continue and probably accelerate into the foreseeable future.

Perhaps the primary negative economic force affecting Aspen is the lack of affordable housing for its employees. Very simply put, the normal worker (even doctors and lawyers) in the area cannot afford a home in Aspen and there are not enough affordable housing units available in the area for the number of employees needed to service the more affluent visitor. It appears that Pitkin County and City of Aspen need to see a

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wholesale construction of housing units that truly are affordable for its workers to keep the area fully competitive with other international resorts.

Current Overall Market Conditions - Aspen Region

Residential

The limited growth policies in effect in the Aspen – Pitkin County area since the mid 1970’s and the increased demand for real estate forced real estate prices to rise during the 1980s through 1990s. The real estate marketplace in the area saw a period of stabilization of sales prices from early 2001 until mid-2003 when the demand for real estate increased sharply and we saw sharply increasing sales prices and increasing sale volumes. Some knowledgeable people went so far as to say we saw a feeding frenzy for real estate which resulted in irrational exuberance and non-rational behavior in the Aspen marketplace in 2005 through mid-2008. In the late summer of 2008 sale prices the real estate marketplace in Aspen started to softening somewhat. In the fall of 2008 following the sharp downturn in the stock market and the collapse of the financial marketplace in October sales activity and sale prices of real estate plummeted. The real estate marketplace continued its downward slide in 2009 through 2012. In 2013 and 2015 started to show signs of recovery which continued through 2016. 2016 sales volume declined a tad in 2016 and in 2017 sales volume increased a tad. However during the first two quarters of 2018 the sale volume has declined a tad.

Market Conditions – Aspen’s Commercial Marketplace

Due to limited growth policies in Aspen since the mid-1970s and the increased demand for commercial real estate in the area real estate sale prices and rental rates have risen. This is partly due to Aspen’s costly, stringent, complex, subjective, highly discretionary and political use code and related approval system, which imposes strict growth management guidelines on new development of any kind. Even expansion of an existing building to the maximum building size allowed under the land use code is not guaranteed by right, but may be allowed only upon review of the application in relation to growth management guidelines and some mysterious land use guidelines which are dependent upon the individual project. Due to the economic down-turn in the fall of 2008 the commercial market in Aspen saw a sharp downturn due to the financial collapse. Commercial vacancy rate have escalated from almost zero to approximately ten percent since several businesses in every sector have gone out of business. As a result of the increase in vacancy rates many commercial landlord have lower their rental rates and while having the ability to increase rental rates based on CPI clauses it their leases, most landlords were not increasing rents rather they are many cases the landlords, several landlords were giving rent concessions to existing tenants in the area of as much as twenty percent or more just to try to keep their tenants businesses economically viable and their spaces occupied and generating income.

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However, in today’s marketplace we are seeing a much different picture in the commercial marketplace in Aspen. During an interview with one of the leading commercial real estate broker in Aspen stated that the commercial marketplace has seen a major recovery which resulted in rental rates and occupancy rates increasing again in Aspen’s CBD to what they were at the height of the market some ten to eleven years ago. As a result vacancies in Aspen’s CBD, prime commercial locations, are not staying vacant very long and commercial.

Comments Regarding Occupancy Trends

Demand for commercial space in Aspen’s CBD marketplace has increased over the past 4 years. According to the Aspen MLS in Aspen’s Commercial Core Area in 2015 46 commercial spaces in Aspen’s CBD were leased and in 2016 31 commercial spaces. Also in Aspen’s CBD the vacancy rate decreased from 10% in the fall of 2010 to less than 5% in 2017.

Summary Comments

Clearly, the Aspen economy has undergone significant growth during the last 20 to 35 years and has reached a level of economic activity and stability that very few resort towns have enjoyed. However, due to the global economic down-turn and Aspen being an international destination resort, the rental rates and occupancy rates were negatively impacted. Nevertheless, it is my opinion that since Aspen was one of the last economies to see the down-turn and is seeing an increase in both rental rates and occupancy rates in Aspen’s Commercial Core area the economic outlook is brighter.

Subject Property’s Economic Neighborhood

The subject property’s economic neighborhood is somewhat abstract: all commercial properties adjacent to Aspen’s Central Business District.

Site Analysis

Location

The subject site is located in Aspen’s Central Business District, CBD, in the 200 block of South Galena Street on the on southeast corner of South Galena Street and East Hopkins Street. Aspen’s CBD is an area consisting of approximately 20 city blocks located south of East Main Street; north of Durant; east of between Aspen Street and west Original Street. The heart of Aspen’s Central Business District is generally between South Monarch Street to the west, South Hunter Street to the east, East Main Street to the north and East Dean Street to the south.

Shape, Topography, and Area

The subject site is rectangular in shape. The subject site is primary level. According to Pitkin County Public Records the subject site is 9,000 +/- square feet

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Soil, Subsoil Conditions/Drainage and Flood Hazards

There are no known adverse soil or subsoil conditions on the subject site. According to FEMA Map Number 080143-0001B (12/4/85), the subject site is not within a designated flood hazard area. At the time of appraisal, the drainage appeared adequate for the area.

Hazards and/or Nuisances

There were no known or observed hazards or nuisances near the subject at the time of appraisal.

Easements

Since I was not provided a recent survey this appraisal was completed based upon the assumption that there are no adverse easements encumbering the subject property.

Utilities

The subject property is serviced by the following public utilities; Electric - City of Aspen Natural Gas – Black Hills Energy Phone - CenturyTel Water – City of Aspen Sewer - City of Aspen

Zoning

According to Aspen’s Community Development Department GIS online zoning map, the subject property is in the CC - Commercial Core – zone district.

City of Aspen's Inventory of Historic Site and Landmarks

The subject property does not appear on the current City of Aspen's Inventory of Historic Site and Landmarks.

City of Aspen’s Historic Overlay District

The subject property is located within the City of Aspen’s Historic Overlay District.

Application to Assignment

It is my opinion that since all properties in Aspen CBD are in Aspen’s Historic Overlay District the subject property is not negatively impacted by the encumbrance of being in Aspen’s Historic Overlay District.

Landscaping

Since the subject site is in the Heart of Aspen’s CBD the subject site’s landscaping is limited to a small area in between the sidewalk and the street.

Parking

Like the vast majority of commercial properties in Aspen’s CBD the subject building lacks off-street parking.

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Improvements Analysis

The 204 South Galena Street Building is a two story commercial building with subterranean basement. Area PitCo Pub Rec

Sq. Ft. Subject Property Lease Plan Sq. Ft.

Basement Warehouse 1,532 Basement Finished 3,625 1st Floor 8,229 2nd Floor - Subject 5,014 5,292 Total 18,400 Deck 3,468

General Structural Notes

The 204 South Galena Building is a concrete block structure with concrete foundation and membrane roof.

Because the appraiser is not a structural, mechanical or electrical engineer he cannot determine if there are any structural problems with the building. This appraisal is based upon the assumption that there are no structural or mechanical problems.

Configuration

At time of appraisal the subject property was a restaurant. This appraisal was completed based on the hypothetical condition that the subject property has been combined with 517 East Hopkins second floor into one economic unit as per Option C – 517/204 second level floor plan. However as stated this appraisal will be estimating the market value of the second level of the 204 South Galena building only. 204 South Galena Option C – 517/204 second level floor plan. After the proposes remodeling the subject property will have a large common multi-purpose room, common kitchen, two common bathrooms, a common mechanical room, the community development break room, the engineering conference room, the community development copy room, the community development conference room, five community development private offices, a common coffee room, a common storage room and a common collaboration room. The subject property also has a large open air deck, a fire staircase, public access staircase and an elevator.

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Quality of Remodel

This appraisal was completed based upon the assumption that the quality of interior finish will be similar to the new City of Aspen Police Station and remodeled Pitkin County building.

Current Standards of Functional Adequacy

In a market where many of the buildings are 90 to 100 years old, functional adequacy is certainly a relative concept, especially when current law protects these buildings from being razed for more modern, larger buildings that might have greater functional utility. Thus, when discussing functional utility in Aspen, it is often important to compare historic buildings to other historic buildings and modern buildings to other modern buildings.

Condition, Effective Age, and Estimate of Remaining Economic Life

The effective age of a structure is a comparative concept and considers the structure in relation to “the age of a similar structure of equivalent utility, condition, and remaining life expectancy as distinct from chronological age; the years of age indicated by the condition and utility of the structure.” Thus, if “a building has had better than average maintenance, its effective age may be less than the actual age; if there has been inadequate maintenance, it may be greater” (Society of Real Estate Appraisers, Real Estate Appraisal Terminology, Revised Edition, Compiled and Edited by Byrl N. Boyce, Ballinger, 1984, pages 87-88).

According to Pitkin County public records the 204 South Galena Building was built in 2013 and it meets the requirements of quality demanded in the Aspen marketplace. Therefore this appraisal was completed base on the assumption that the second floor of the 204 South Galena Building is very good condition.

In estimating the effective age and remaining economic life of the subject, it is important to keep in mind the fact that effective age is a function of maintenance and continuing functional utility, and remaining economic life is primarily a function of continuing utility. Taking into consideration the extent of the remodeling of the subject property it is my conclusion that based on the hypothetical condition the second floor of the 204 South Galena Building effective age is estimated to be 75 years against a total economic life of 80 years.

Market Competition

There are virtually no remaining sites for new construction of commercial properties in the City of Aspen today. As a result, the likelihood of ruinous competition from newly developed commercial complexes is extremely unlikely.

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Highest and Best Use Analysis

Highest and Best Use is defined as that reasonable and probable use which will support the highest present value, as defined, as of the effective date of the appraisal. Alternately, it is that use, from among reasonable, probable, and legal alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in the highest value. CC Commercial Core Minimum Lot Area – No Requirement

Legally Permissible

By Right – Basement Retail Restaurant Office Building elements necessary and incidental to use on other floors By Right – Ground Level Retail Restaurant Building elements necessary and incidental to use on other floors Offices are prohibited except for 40 Foot minimum set back from a street Parking is also prohibited as sole use on Ground Floors By Right – Upper Levels Retail Restaurant Offices Lodges Timeshares Affordable Multi-family Housing Free Market Multi-family Housing Home Occupations By Right – All Levels Retail Restaurant Neighborhood Commercial Uses Service Uses Arts Cultural Public Uses Academic Uses Civic Uses Recreational Uses Child Care Center

21

Academic Uses Accessory Uses and Structures Storage accessory to a Permitted Use Uses ad building elements necessary and incidental to use on other floors including parking accessory to permitted use, Farmers Market Conditional Uses Gasoline Service Station Commercial Parking Facility

Conclusion Highest and Best Use

While an alternative uses such as a restaurant or the like may result in a higher market value for the subject property. However, since this appraisal was completed based on the hypothetical condition that the subject property has been remodeled into professional offices, as per Option C – 517/204 second level floor plan, determining the highest and best use of the subject property is not required.

Unit of Comparison

The most common unit of comparison for commercial properties in the Aspen marketplace is dollars per square foot of usable space.

The Appraisal Process

The process of estimating the Market Value of real property is a systematic process in which the appraisal problem is defined, the work necessary to solve the problem is planned, and the data necessary to solve the appraisal problem is assembled and analyzed to the end of producing an estimate of Market Value. Sound and accepted appraisal practice calls for this process to employ three methods of estimating value: the Cost Approach, the Market or Sales Comparison Approach, and the Income Approach.

The Cost Approach to Value

Due to the subject property being a condominium unit the cost approach was deemed not applicable.

Conclusion of Market Value - Cost Approach

The Cost Approach was deemed not an applicable approach in estimating the market value of the subject property.

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The Market Approach to Value

Due to the lack of resent sales and current listings of large single-user commercial office spaces in Aspen’s Central Business District the Market or Sales Comparison Approach was deemed minimally applicable in estimating the market value of the subject property. Address Legal Location Use Sale Date Sale Price Floor

Area $'s per sf

625 East Main Street Aspen, CO

625 Main Street Condo Unit 204 Commercial

2nd Floor

6 Offices, a Conference room, a Kitchen & a Bath with shower

13-Jan-15 $2,485,000 2,172 $1,144

230 East Hopkins 223 & 230 E Hopkins Ave / 117 S Monarch St Minor Sub Adj Parcel A

3 Levels Professional Offices & 1 Residential Apartment

11-Jul-17 $11,275,000 7,820 $1,442

Comparable Sales Analysis Address Legal Floor

Area $'s per sf

Location Design Adjusted $'s per sf

Subject Area sf

Indicated Value

625 East Main Street Aspen, CO

625 Main Street Condo Unit 204 Commercial

2,172 $1,144 Inferior Similar $1,373 5,292 $7,260,000

230 East Hopkins

223 & 230 E Hopkins Ave / 117 S Monarch St Minor Sub Adj Parcel A

7,820 $1,442 Similar Similar $1,442 5,292 $7,630,000

Conclusion of Market Value – Market Approach

The indicated market value of the subject property via the market approach range is $7,260,000 to $7,630,000.

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The Income Approach to Value

The Income Approach was deemed to be the most applicable approach in estimating the market value of the subject property.

Income & Expenses

On the following page you will find an analysis of recent long-term leasing of professional offices in commercial core area of Aspen. Due to confidentially requirements support documentation of the comparable leased properties has been retained in my work file.

Location Level Leasable Area

Lease Date

Annual Rent $'s per sf CAMAs - HOA Dues

$'s per sf

E Durant 2nd 557 2018 $25,065 $45.00 $11,700 $21.01

E Durant 2nd 557 2018 $25,065 $45.00 $11,703 $21.01

E Durant Plaza 756 2018 $38,556 $51.00 $17,196 $22.75

E Main 1st 852 2017 $44,304 $52.00 $15,660 $18.38

E Durant 2nd 893 2017 $35,720 $40.00 $18,753 $21.00

E Durant 2nd 893 2017 $35,720 $40.00 $18,753 $21.00

E Durant 2nd 897 2018 $40,365 $45.00 $18,837 $21.00

E Hopkins 2nd 900 2018 $37,800 $42.00 $10,800 $12.00

E Hopkins 2nd 925 2017 $32,375 $35.00 $11,100 $12.00

E Hyman 2nd 1,101 2017 $53,145 $48.27 $18,717 $17.00

E Hopkins 2nd 1,145 2016 $37,075 $32.38 $23,198 $20.26

S Mill 2nd 1,475 2018 $87,025 $59.00 $24,338 $16.50

S Mill 2nd 1,475 2018 $87,025 $59.00 $24,338 $16.50

S Spring 1st 1,700 2017 $100,300 $59.00 $18,700 $11.00

E Cooper 2nd 1,900 2017 $127,205 $66.95 $41,800 $22.00

Mean 1,068 $47.97 $18.23

Median 900 $45.00 $20.26

Wtged Avg. $50.34 $17.82

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Location Level Leasable

Area Lease Date


$'s per sf

S Monarch 2nd 813 2017 $48,000 Gross Lease

$59.04 $0 $0.00

Location Level Leasable Area

Lease Date


$'s per sf

E Hyman 2nd 1,101 2017 $53,145 $48.27 $18,717 $17.00

E Hopkins 2nd 1,145 2016 $37,075 $32.38 $23,198 $20.26

S Mill 2nd 1,475 2018 $87,025 $59.00 $24,338 $16.50

S Mill 2nd 1,475 2018 $87,025 $59.00 $24,338 $16.50

S Spring 1st 1,700 2017 $100,300 $59.00 $18,700 $11.00

E Cooper 2nd 1,900 2017 $127,205 $66.95 $41,800 $22.00

Mean 1,466 $54.10 $17.21

Median 1,475 $59.00 $16.75

Wtged Avg. $55.91 $17.18

Location Level Leasable

Area Lease Date


$'s per sf

E Hyman 2nd 1,101 2017 $53,145 $48.27 $18,717 $17.00

S Mill 2nd 1,475 2018 $87,025 $59.00 $24,338 $16.50

S Mill 2nd 1,475 2018 $87,025 $59.00 $24,338 $16.50

Mean 1,382 $55.42 $16.79

Median 1,475 $59.00 $16.75

Wtged Avg. $56.08 $16.64

Conclusion Market Rental Rate

Based upon the subject property usable space being 5,292 square feet and lack of panoramic views it is my conclusion that $55 per square foot is a reasonable rental rate for the subject property based on the hypothetical condition that the subject property has been remodeled as per Option C – 517/204 second level floor plan. It should be noted that according to the commercial real estate broker I interviewed stated that even exterior dining decks in restaurants are not included in the rental rate calculations.

25

Projected Income & Expenses

Commercial Office Market Rental Rates & Expenses

Leasable Area $'s per sf Annual Income

Gross Rent Income 5,292 $55.00 $291,060.00

Other Income $0.00

Potential Gross Income $291,060.00

Stabilized Vacancy & Credit Loss 5.00% $14,553.00

Effective Gross Income $276,507.00

Total Recoverable Expenses % of EGI $'s per Sq Ft Expenses

CAMAs 38.28% $20.00 $105,840.00

Loss Due to V & C 5.00% $1.00 $5,292.00

Total Recoverable Expenses Not Recovered 1.91% $5,292.00

Non Recoverable Expense % of EGI Expenses

Bank Charges 0.25% $0.13 $691.27

Management 5.00% $2.61 $13,825.35

Legal & Accounting 2.00% $1.05 $5,530.14

Capital Reserve Fund 0.96% $0.50 $2,646.00

Total Non-Recoverable Expenses 8.21% $4.29 $22,692.76

Total Expenses 10.12% $5.29 $27,984.76

Net Operating Income 89.88% $46.96 $248,522.24

Selection of Overall Capitalization Rate

Capitalization is the process of estimating the present value of anticipated future income by discounting this income. The factor utilized in the discounting process is generally called the Overall Capitalization Rate, which is simply defined as “the direct ratio between Annual Net Operating Income . . . and Value or Sales Price” (source: Society of Real Estate Appraisers, Real Estate Appraisal Terminology, Revised Edition, Compiled and Edited by Byrl N. Boyce, Ballinger, 1984, page 179).

Development of Overall Capitalization Rate

In the Aspen marketplace there have been very few sales of income producing properties which one can extract an Overall Capitalization Rate (OCR).

Market Extracted - Overall Capitalization Rate

On the following page is a summary of the recent sales commercial income producing properties in Aspen’s Central Business District from which an overall market driven capitalization rate can be extracted.

26

Building Address Rented Floor Area

Sale Date

Sale Price $'s per sf OCR

Duvike Bldg 420 E Hyman 5,197 May-17 $8,250,000 $1,587 3.70%

Linder Bldg 401 E Hyman 3,018 Aug-17 $5,900,000 $1,955 4.00%

North of Nell 555 E Durant 3,217 Mar-17 $6,325,000 $1,966 4.00%

William Hall Bldg 228 S Mill 3,978 Jul-16 $5,400,000 $1,357 2.40%

Mtn Forge Bldg 230 E Hopkins 7,820 Jul-16 $8,500,000 $1,087 3.60%

Aspenhof RB-1 520 E Cooper 3,726 Feb-17 $3,400,000 $913 6.70%

Mean 4.07%

Median 3.85%

The market extracted OCR range is 2.40% to 6.70%.

Alternative Overall Capitalization Rate Built-up - Overall Capitalization Rate

One of the most reliable alternative overall capitalization rates as the traditional Built-up Overall Capitalization Rate in the income approach analysis. Built-Up OCR

Safe Rate - 5 year US Bond 3.061%

Risk Rate - Corporate Bond Rate AAA – BBB 0.950% 4.110% 5.060%

Illiquidity Rate 5 Year US Bond - 30 Year US Bond 0.322% 3.061% 3.383% Management Rate 0.250%

Discount Rate 4.583%

Improvement Recapture Rate 1.000%

Overall Built-up Rate 5.833%

Source: Formula - Assessment Administration pg. 268-269 Rates - Wall Street Journal October 9, 2018

Application to Assignment

The market extracted OCR range is 2.40% to 6.70%. The Built-up OCR of 5.83%. Based on the forgoing it is my opinion that the OAR range of 3.50% to 4.0% is reasonable for the Aspen marketplace at time of appraisal.

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NOI $248,522.24 NOI $248,522.24 OCR 4.00% OCR 3.50% Indicated MV $6,213,056.06 Indicated MV $7,100,635.43

$6,210,000.00 Rounded $7,100,000.00 $’s per Sq Ft $1,173.47 $’s per Sq Ft $1,341.65

Conclusion

The indicated market value of the subject property via the income approach range is $6,210,000 to $7,100,000.

Conclusion of Market Value - Income Approach

It is my conclusion that the Estimated Value of the Subject Property via the Income Approach range is $6,210,000 to $7,100,000.

Reconciliation of the Approaches

Rarely do all of the approaches used in an appraisal give the same results. By way of review, the applicable approaches I used in this appraisal gave the following indications:

Based upon having only two comparable sales of larger professional office space the Income Approach was given the most amount of weighting.

Approach Indicated Value

Cost N/A

Market $7,260,000 to $7,630,000

Income $6,210,000 to $7,100,000

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Final Estimate of Market Value

After considering all of the information and analyses in this report, I have arrived at a final estimate of Market Value for the 2nd Floor of 204 S Galena Street Aspen, Colorado of October 8, 2018 base on the hypothetical condition that the subject property has been remodeled as per Option C – 517/204 second level floor plan. Based on the hypothetical condition, as of the effective date of appraisal, I concluded that the Market Value of 2nd Floor of 204 S Galena Street Aspen, Colorado was;

Seven Million Dollars

($7,000,000.00)

This value estimate is subject to the Certification, to the Contingent and Limiting Conditions, the Scope of Assignment and the Hypothetical Conditions contained herein.

Based upon commercial activity in the Aspen marketplace and assuming no significant changes in marketplace conditions, tenancy and rental rates in the Aspen commercial core area marketplace, it is my opinion that at or near the appraised market value, the marketing time and exposer time for the subject property would be the same twelve to twenty-four months.

.

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Pertinent Definitions

Appraisal

(n) The act or process of developing an opinion of value; an opinion of Value. (Adj.) Of or pertaining to appraising and related functions such as appraisal practice or appraisal service. (Source: The Dictionary of Real Estate Appraisal, Fourth Edition, Appraisal Institute, 2002 page 14)

Assumption

That which is taken to be true (Source USPAP, 2016-2017, page 2)

Capitalization

The conversion of income into value. (Source: The Dictionary of Real Estate Appraisal, Fourth Edition, Appraisal Institute, 2002 page 41)

Extraordinary Assumption

An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, of found to be false, could alter the appraiser’s opinions or conclusions.

Comment: 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 integrity of data used in the analysis. (Source USPAP, 2018-2019, pg. 4)

Fee Simple Estate

A Fee Simple Estate is: “An interest in land that, being the broadest property interest allowed by law, endures until the current owner dies without heirs. An estate of infinite or potentially infinite duration” (Source: Black’s Law Dictionary, Abridged Seventh Edition, West Group, 2000, pp. 499-500)

Highest and Best Use

The Highest and Best Use of a Property is: The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and results in the highest value. The four criteria the highest and best use must meet are legally permissibility, physically possibility, financial feasibility and maximum productivity. (Source: The Dictionary of Real Estate Appraisal, Fourth Edition, Appraisal Institute, 2002, page 135

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Hypothetical Condition

A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser on exists on effective date of the assignment results, but is the purpose of analysis.

Comment; Hypothetical conditions are contrary to known facts about physical, legal or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. (Source USPAP, 2018-2019, page 4)

Leased Fee Estate

A Leased Fee Interest is: “An ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; the rights of lesser (the leased fee owner) and the leased fee are specified by contract terms contained within the lease.” (Source: The Dictionary of Real Estate Appraisal, Fourth Edition, Appraisal Institute, 2002, page 161)

Market Value: A type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal.

Comment: Forming an opinion of market value is the purpose of many appraisal assignments, particularly when the client’s intended use includes more than one intended user. The conditions included in market value definitions establish market perspectives for the development of the opinion. These conditions may vary from definition to definition but generally fall into three categories:

1. the relationship, knowledge and motivation of the parties (i.e., seller and buyer) 2. the terms of sale (e.g. cash, cash equivalent, or other terms) and 3. the conditions of sale (e.g., exposure in a competitive market for reasonable time

prior to sale)

Source USPAP, 2018 – 2019 Edition, page 4

Overall Capitalization Rate

An income rate for a total real property interest that reflects the relationship between a single year's net operating income expectancy and the total property price or value (R=I/V) (The Dictionary of Real Estate Appraisal, Fifth Edition, Appraisal Institute, pg. 141)

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Unit of Comparison

The components into which a property may be divided for purpose of comparison, e.g. price per square foot, front foot, cubit foot, room, bed, seat, apartment unit. (Source: The Dictionary of Real Estate Appraisal, Fourth Edition, Appraisal Institute, 2002 page 301).

Zoning The public regulation of the character and extent of real estate use through police power; accomplished by establishing districts or areas with uniform restrictions relating to improvements; structural height, area and bulk; density of population; and other aspects of the use and development of private property. (Source: The Dictionary of Real Estate Appraisal, Fourth Edition, Appraisal Institute, 2002, page 36.)

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The Appraisal Office - Aspen Ltd.Subject Photographs

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408 East Cooper AveAspen Pitkin CO 81611

Barnett - Fyrwald Holdings Inc 500 President Clinton Ave # 310 Little Rock AR 722011

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Qualifications of Appraiser

David Ritter, NMAA The Appraisal Office – Aspen, Ltd 210 South Galena St Suite 29 Aspen, CO 81611 Phone: (970) 920-1002 Fax: (970) 925-3603 E-mail: [email protected] Federal Tax ID Number: 84-1459914 Profession: Real Estate Appraiser since 1978 State of Colorado - Certified General Appraiser - License # 1315907 Expiration Date: 12/31/2018 Real Estate & Appraisal Experience: 1994- Fee Appraiser and Consultation, Aspen, CO 1991-93 Chief Appraiser Pitkin County Assessor’s Office, Aspen, CO 1986-90 Appraiser III Pitkin County Assessor’s Office, Aspen, CO 1984-86 Appraiser II Eagle County Assessor’s Office, Eagle, CO 1982-84 Fee Appraiser, Grand Junction, CO 1978-82 Fee Appraiser, Cedar Falls, IA 1976-78 Norman W. Ritter Realtors, Marketing Real Estate, Cedar Falls, IA Real Estate Appraisal Experience: Single-Family, Townhouses, Condominiums, Income Properties, Vacant Land, Development Properties, Hotel and Motels, Commercial Industrial, Office, Warehouse, Retail Properties, Conservation Easements, Condemnation & Eminent Domain, Estate & Tax Planning, Percent Complete Inspections and General Consultation Regarding Real Estate matters Expert Witness: State Board of Equalization (Colorado) State Board of Assessment (Colorado) County Board of Equalization (Eagle, San Miguel & Pitkin Counties, Colorado) State District Court – Eagle, Garfield, Pitkin Colorado Routt Counties United States District Court – District of Colorado Federal Bankruptcy Court - District of Colorado County State of Colorado Arbitration Hearing Valuation Trial to Jury Commission – CDOT - State of Colorado Superior Court of California – San Francisco, San Obispo, Ventura Counties, Oakland County Circuit Court – Michigan 310th District Court Houston Texas Past and Present Appointments or Panels: Panel of Binding Arbitrators - Eagle, Pitkin & Summit Counties, Colorado Condemnation of Right of Way - Colorado Department of Transportation Hearing Officer, County Board of Equalization - Eagle & Pitkin Counties, Colorado Founding Board Member Aspen Curling Club – Aspen Colorado

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Professional Education & Affiliations

American Institute of Real Estate Appraisers: Course VIII - Single Family Residential Appraisal 1-4 American Society of Farm Managers and Rural Appraisers: Valuation of Conservation Easements Certification Program Appraisal Institute:

Interagency Appraisal and Evaluation Guidelines Business Practices & Ethics Uniform Standards of Professional Appraisal Practice Uniform Standards of Professional Appraisal Practice -annual Updates Uniform Residential Appraisal ReportThe Real Estate Appraiser as aConsultantResidentialAppraisal Review Uniform Appraisal Standards for Federal Land Acquisitions Course 520 – Highest & Best Use and Market Analysis Course 700 - Condemnation Appraisal: Principles & Applications

Course 720 - Condemnation Appraising: Advanced Topics & Applications Course 705 - Litigation Appraising: Specialized Topics & Applications

Course 710 - The Appraiser as an Expert Witness: Preparation & Testimony USPAP 2014-15 and the New Reporting Options CLE International (Continuing Legal Education): Eminent Domain Conference Conservation Easements Seminar International Association of Assessing Officers: Course 004 Assessment Administration Course 202 Advance Income Approach to Value Course 302 Mass Appraisal of Income Producing Property Course 305 CAM Modeling Building Residential Course 619 Professional Standards & Ethics International Right of Way Association: Course 401 Appraisal of Partial Acquisitions McKissock Real Estate and Appraisal School Expert Witness for Commercial Appraisers

Expert Witness Testimony Fannie Mae Appraisal Guidelines

Complex Appraisal Assignments Deriving and Supporting Adjustments

Introduction to Regression Analysis Land and Site Valuation

Northern Michigan University Residential Design - Modules 1, 2 & 3 UAD Webinar Series - Modules 1 & 2 RNMI - CCIM – DIVISION: Course - Introduction, 101, 102, 103 Society of Real Estate Appraisers: Appraisal of Condo Conversion State of Colorado Department Local Affairs - Division of Property Taxation Introduction to Assessments

Cost Approach to Value Real Estate Court Decisions State of Colorado Department of Regulatory Agencies (DORA) Conservation Easement Appraiser 7 hours Update Course

Conservation Easement Appraiser 2 hours Update Course State of Colorado Department of Transportation Introduction to Eminent Domain University of Colorado: USPAP - Update Commercial Case Study Various Seminars:

Conservation Easements, Condemnation, Estate Planning, Trail Componets, Marshall Cost Valuation, USPAP 2014-15 and the New Reporting Options and The Like

Real Estate Affiliations: Member – National Association of Appraisers Member - Aspen Board of Realtors - Aspen, Colorado

Appraisal Professional Designation MNNA – National Association of Appraisers

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Partial List of Clients: Non Lenders Allstate Insurance Company Aspen Center for Environmental Studies Aspen Consolidated Sanitation District Aspen Educational Research Foundation, Inc Aspen / Pitkin County Housing Authority Aspen Valley Hospital District Aspen Valley Land Trust Aspen Institute, The Brush Creek Water District Buttermilk Metropolitan District CentryTel City of Aspen, Colorado Eagle County, Colorado Eagle County Regional Trail System Federal Aviation Administration (FAA) Federal Deposit Insurance Corporation (FDIC) FirstBank Data Corporation Garfield County, Colorado Holy Cross Electric Association Internal Revenue Service (IRS) John P. McBride Moore Family Partnership – Tom Moore Music Associates of Aspen, Inc. Nature Conservancy, The Pitkin County, Colorado Pitkin County Title Company Rocky Mountain Institute Roaring Fork Railroad Holding Authority Roaring Fork School District Roaring Fork Transportation Authority (RFTA) Roaring Fork Valley Conservancy State of Colorado Board of the Great Outdoors Trust Fund (GOCO) State of Colorado Department of Parks and Wildlife Stewart Guarantee Title Corporation Summit County, Colorado The Tenth Mountain Division Hut Association, Inc. Town of Snowmass Village, Colorado Town of Basalt, Colorado Town of Carbondale, Colorado Yamaph Alternative High School, Glenwood Springs Colorado Lenders ANB - Various Locations in Colorado Bank of Colorado - Western Slope Bank of New York – New York NY BNY Mellon, N.A. – Boston MA City National Bank – Los Angeles, CA Citigroup Private Bank - Long Island City NY Colorado Federal Savings Banks Colorado National Banks Gibraltar Private Banking, Coral Gables FL Nations Bank Timberline Bank – Grand Junction & Aspen Colorado Vectra Bank of Colorado - Various Locations in Colorado Western Banks, Los Angeles, CA

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An Appraisal Assignment The Second Floor of Located

Documents

Transcript of An Appraisal Assignment The Second Floor of Located