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VALUATION SERVICES, INC._________________________________________________________________________________ 1

APPRAISAL REPORT

‘30TH AVENUE SCHOOL’ BUILDING

151 - 30TH AVENUE

COLUMBUS, MUSCOGEE COUNTY, GEORGIA

EFFECTIVE REPORT DATE: AUGUST 19, 2016

DATE OF REPORT: AUGUST 22, 2016

FOR: MUSCOGEE COUNTY SCHOOL DISTRICT

CONSTRUCTION DEPT. 2960 MACON ROAD

COLUMBUS, GA. 31906

BY:

SCOTT L. BOYCE WOODRUFF BROKERAGE CO.

P.O. BOX 7727 COLUMBUS, GA. 31908

(706) 615 - 9733


GENERAL ASSUMPTIONS AND LIMITING CONDITIONS 1. The property Identification used in the appraisal is assumed to be correct. No responsibility is assumed for matters of a legal nature affecting title to

the property nor are opinions of title rendered. Title of the property is assumed to be good and merchantable. 2. No survey of the property has been made by the appraiser and no responsibility Is assumed in connection with such matters. Exhibits submitted are included only to assist the reader in visualizing the property. It is assumed that

utilization of land and improvements are within the boundary and/or property lines of the property described and that there are no encroachments or trespass unless otherwise noted.

3. Information furnished by others is assumed to be correct, true, and reliable. A reasonable effort has been made to verify information; however, no responsibility for its accuracy is assumed by the appraiser. 3. All mortgages, liens, encumbrances, leases and servitudes have been disregarded unless so specified. The property is appraised as though under responsible ownership and competent management. 5. It is assumed that the property is in full compliance with all applicable federal,

state and local environmental laws and regulations - unless any non-compliance is stated and defined.

6. Unless otherwise stated in this report, the existence of hazardous substances,

including without limitation to asbestos, petroleum leakage, radon gas, chemicals, mold, fungus, and/or lead paint, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraiser become aware of such during the appraiser's

inspection. Also, any property constructed prior to 1978 should be aware that lead-based paint was common prior to that year. Likewise with asbestos containing materials, or ACMs, which were also common prior to 1979. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test such substances or conditions. If the presence of such substances or other potentially hazardous substances or environmental conditions may affect the value of the property, value estimated is predicated on the assumption that there are no such conditions on or in the property or in such proximity thereto that would cause any loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

7. It is assumed that all applicable zoning and use restrictions have been complied with, unless a non-conformity has been stated, defined and considered in this report.


ASSUMPTIONS AND LIMITING CONDITIONS - CON'D. 8. The Americans with Disabilities Act ("A D A") became effective in 1992. I have not made, nor am I qualified to make, a specific compliance survey and analysis of any property and any improvements to determine whether or not it is in conformity with the various detailed requirements of the "A D A". It is assumed in this appraisal that the improvements are in compliance.

I did not consider any possible non-compliance with "A D A" requirements in estimating the value of the property.

9. Unless stated otherwise in the report, the roof cover is assumed to be in good physical condition. The client is urged to retain a roofing expert for verification, if desired. Unless stated otherwise in the report, any artificial stucco construction is assumed to have been constructed in a workmanlike manner in accordance with the manufacturers requirements. An expert should be retained for verification. 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 therefore. 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 or parties to whom it is addressed, without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety.

12. Disclosure of the contents of this report are governed by the By-Laws and

Regulations of the Appraisal Institute. Neither all nor any part of the contents of the report - especially the identity of the appraiser or firm with which connected, or any reference to the Appraisal Institute, or to the MAI designation, or any conclusions as to value, - shall be disseminated to the public media, news media, sales media, or any other public means of communication, without prior written consent and approval of the appraiser.

13. Any distribution of the value of property in this report between land and

any improvements applies only under the reported highest and best use of the property, and any value allocations between land and improvements must not be used in conjunction with any other appraisal and are invalid if so used.

14. Acceptance of and/or use of this appraisal report will constitute acceptance of the foregoing stated general assumptions and limiting conditions.


PROPERTY IDENTIFICATION

Real estate located with frontage on the north side of 30th Avenue located in

Columbus, Muscogee County, Georgia. Property contains approximately 4.76 acres of land

improved with a former school building known as „30th Avenue School‟ and is numbered 151

- 30TH

AVENUE. The subject real estate is currently owned by Muscogee County School

District. The property is noted on Muscogee County Tax Map 042, in Tax Block 011, as

Parcel 049.

PURPOSE OF APPRAISAL

The objective of this Appraisal Report is to estimate the AS-IS Market Value of the

Fee Simple Interest of the identified real estate. The purpose of this report is to present the

data and reasoning that the appraiser has used to form an opinion of value. This report is

prepared for Kimberly Wright representing MUSCOGEE COUNTY SCHOOL DISTRICT

(MCSD) and for sole use by MCSD, and any authorized representative within the MCSD for

the purpose of analyzing the value of the subject property in conjunction with future

business planning purposes. The effective appraisal date is AUGUST 19, 2016, and the

report completion date is the date of the transmittal letter and is noted on the Certificate.

This appraisal assignment is not made, nor is the appraisal rendered on the basis of

a requested minimum valuation, specific valuation, or an amount which would result in

consummation of a real estate transaction, or approval of a loan. The appraiser certifies

that he has the knowledge and experience necessary to perform the appraisal of this

property in a competent and professional manner. This Appraisal Report is believed to be

prepared in conformance with the Uniform Standards of Professional Appraisal Practice and

FIRREA.


MARKET VALUE DEFINED

As published by the FDIC Rules and Regulations 12 CFR Part 323.2 Definitions (g),

the following definition of market value is used by agencies that regulate federally insured

financial institutions in the United States.

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 each acting

in what they consider their best interest;

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 sale concessions

granted by anyone associated with the sale.


COMMUNITY DATA

Muscogee County / Columbus is located in west-central Georgia bordering Alabama.

Phenix City, Alabama, is a "sister city" to the west and Fort Benning Military Reservation

borders Columbus to the south and southeast. Atlanta is 100 miles northeast, Macon is 95

miles east, and Montgomery, Alabama, is 80 miles southwest. Columbus is the retail trade,

medical, industrial and employment center for this central region of Georgia and Alabama.

The M S A covers Muscogee County (Columbus), Harris County (Hamilton), Chattahoochee

County (Fort Benning & Cusseta), Marion County (Buena Vista), and Russell County (Phenix

City), Alabama.

Muscogee County / Columbus has a consolidated government with mayor, council and

city manager administration. Schools, health services, utilities, planning, and other community

services are considered adequate. State and federal highways, bus lines, airlines, trucking

and railroads provide sufficient transportation needs.

Statistical data reflecting selected growth trends are taken from Georgia Department of

Labor, The Georgia County Guide, U. S. Census, and local services.

POPULATION 1990 2000 CHANGE 2010 CHANGE

M S A ( 5 COUNTY ) 266,452 281,768 + 5.75% 285,320 + 1.26%

MUSCOGEE / COLUMBUS 179,280 186,291 + 3.91% 187,046 + 0.41%

HARRIS COUNTY 17,788 23,695 +11.21% 29,073 +22.70%

MARION COUNTY 5,590 7,144 + 27.80% 7,024 - 1.68%

CHATTAHOOCHEE 16,934 14,882 - 12.12% 9,430 - 36.63%

RUSSELL, ALABAMA 46,860 49,756 + 6.18% 52,947 + 6.41%

PER CAPITA INCOME 2004 2006 CHANGE 2010 CHANGE

MUSCOGEE / COLUMBUS $29,460 $32,689 + 10.96% $37,229 + 13.89%

HARRIS COUNTY $33,498 $37,799 + 12.84% $39,127 + 3.51%

MARION COUNTY $23,696 $26,942 +13.70% $29,253 + 8.58%

CHATTAHOOCHEE $18,492 $20,576 + 11.27% N A N A

STATE OF GEORGIA $29,782 $32,648 + 9.62% $33,408 + 2.33%


COMMUNITY - CON'D.

RETAIL SALES ( $ 000 ‘ S ) 2005 2010 CHANGE

MUSCOGEE / COLUMBUS $3,218,734 $3,475,668 + 7.98%

HARRIS COUNTY $38,783 $62,733 + 61.75%

MARION COUNTY $68,133 $62,635 - 8.07%

CHATTAHOOCHEE $4,567 $4,360 - 4.53%

STATE OF GEORGIA $------- $------- + 16.64%

LABOR FORCE: NOV., ‘08 OCT., ‘09 JAN., ‘12

M S A ( 5 COUNTIES ) TOTAL: 128,656 126,797 132,452

M S A UNEMPLOYMENT RATE: 7.0% 9.6% 9.0%

GEORGIA UNEMPLOYMENT RATE: 7.1% 10.1% 9.2% The Labor Force numbers show the changes during the recent economic recession

2008 – 2012.

LABOR FORCE – JUNE, 2015 APRIL, 2016

GEORGIA: 6.1% 5.5%

COLUMBUS MSA: 7.4% 6.0%

COLUMBUS AVERAGE EMPLOYMENT 2012

TOTAL 96,340

FEDERAL, STATE, LOCAL GOVERNMENT 17,866 CONSTRUCTION 4,273 MANUFACTURING / GOODS PRODUCING 7,509 WHOLESALE / RETAIL 13,802 INFORMATION 5,640 FINANCE, REAL ESTATE, INSURANCE 7,969 PROFESSIONAL / SCIENTIFIC / TECHNICAL 4,144 HEALTH CARE 12,449 ACCOMMODATION / FOOD SERVICES 9,885 ADMINISTRATION & SUPPORT 6,009 OTHER SERVICES 6,765

The Muscogee County population is projected to gradually increase. Population in

Harris County, just north of Muscogee County, is rapidly increasing as outgrowth from

Columbus. Declining populations are projected for Marion County and Chattahoochee

County. Most new community growth in Columbus fans north and east from the downtown

business district because of restraints to the west (Chattahoochee River & Alabama) and

south (Fort Benning).


COMMUNITY - CON'D.

Muscogee County per capita income and retail sales are increasing. The economy is

primarily based on manufacturing, government (mainly Fort Benning), land minerals and

numerous service businesses. Columbus State University, a four-year institution with an

enrollment of over 8,000 students, has become very active in locating facilities in the

downtown district. The M S A labor force has recently fluctuated from 120,000 to over

131,000, but has declined in recent years. Most recent increases have been in various

service businesses. Manufacturing has declined, mainly due to textiles. Recent unemployment

rates have been high, but below the State average. Some major employment manufacturing

businesses are food products, metals, equipment, machinery and textiles.

The national economic and financial market meltdown began in early-2007. Many

banks, especially in Georgia, have closed. Real estate markets slowed, transactions have

declined, and many foreclosures have occurred, especially single family residential properties.

Financing and refinancing has become difficult, and many proposed developments of all types

have been deferred. It is anticipated the real estate market will soon improve. Most new

good quality, medium to high priced, single family residential developments are in northern

and northeastern sections of town, and outgrowth from Columbus is occurring further north

into Harris County. Also, most of the newer better quality apartment developments and

additions are located in northern sections of town.

The following Muscogee County new housing starts reflects the decline in interest,

activity and “soft” residential market conditions. However, there is evidence of a recent

increase in residential housing activity from the low in 2008.

YEAR PERMITS CHANGE (#)

2005 858 - - - -

2006 672 - 186

2007 472 - 200

2008 279 - 193

2009 290 + 11

2010 307 + 17

2011 317 + 10

2012 380 + 63

2014 330 - 50


COMMUNITY - CON'D.

Boost to the downtown district are the Total System Services, Inc. large $100 million

office development on a 54 acre campus, the $60+ million “RiverCenter for the Performing

Arts”, and numerous property acquisitions by Columbus State University for classrooms and

student housing. Investors are converting some former store buildings to loft apartments and

a former textile mill (Eagle & Phenix) has been converted to upper priced residential

condominiums. The influx of additional people living in the downtown district should cause

an increase in interest for retail developments. Major retail areas are in outlying locations

along or near major highways and arterials, primarily in northeastern and northern sections of

town. Prime new retail and office developments are occurring in the northern section of town.

Industrial companies are in scattered locations and continue to border the downtown district,

but major growth areas are in the outlying northeastern section of town.

Fort Benning, located south and southeast of Columbus, has a military reservation

covering over 180,000 acres. It is the home of the Army Infantry School, the largest in the

world, and also has an airborne school, ranger school and other training schools. This base

has experienced fluctuations in troops and employment, but is considered a permanent

facility. A substantial increase in troops, students and civilian employment is occurring

because of national base closings and the relocation of a tank division. New construction of

support facilities, training areas, new housing, renovated housing, new post exchange, and

roads will be totaling $2.9 billion. Completion was completed in 2012. The large 190,000

square foot National Infantry Museum and a 200 acre Patriot Park were recently completed

and they are anticipated to attract over 200,000 tourist per year from throughout the world.

Fort Benning now contributes over $100 million per month (2013) to the economy and

it is anticipated that there will be an additional $25 to $30 million per month when all new

troops arrive. Fort Benning has more of a direct economic impact on businesses and real

estate in the southern part of Columbus. Main concentrations of modern industrial facilities

are in Columbus East & Corporate Ridge Industrial Parks and Muscogee Technology Park

located in the northeastern section of town.


COMMUNITY - CON'D.

Total System Services and AFLAC Corporation have expanded in recent years.

AFLAC has a modern 95,000 square foot facility, recently finished another 165,000 square

foot building, and completed a third 100,000 square foot building. Its expansions created

an additional 2,000 jobs. FedEx completed in 2008 a 55,650 square foot building in

Muscogee Technology Park. Blue Cross / Blue Shield of Georgia has announced a 235,000

square foot facility to be completed in 2015 with 1,800 employees. This is from the

consolidation of two buildings. Kodak announced they plan a $15 million, 16,000 square

foot, addition to their existing plant. Precision Components has also announced a planned

expansion. NCR purchased a 340,179 square foot industrial building in Corporate Ridge in

2009 for manufacturing ATM machines. Grocery Supply Acquisition Corporation purchased

a 431,840 square foot building in 2009 for food distribution. Most new industrial

developments and expansions are situated in the northeastern part of Columbus.

Waggoner‟s Trucking Company has a regional transportation hub facility on several sites in

the southern part of town. Tom‟s Foods, located in the southern part of town, was

acquired by Lance Foods. Manufacturing closings include Russell Corporation (textiles), Swift

Galey (textile), Beaulieu of America (carpets), Johnson Industries (textiles), Matsushita

Battery, Lummus Industries, Bibb Company (textile), Meritas Yarns (textile), Pillowtex (textiles),

Cosmyl (goods), Char Broil (gas grills), Goody (hair products), and Cessna (aircraft parts).

Some other industries have had lay-offs. Several companies in the area, however, appear

to be absorbing some job losses. Samples of the larger employees in Columbus published by

Columbus Chamber of Commerce and Georgia Dept. of Labor:

FORT BENNING (Civilian only). 8,400.

MUSCOGEE COUNTY SCHOOL DISTRICT. EDUCATION. 6,000.

TOTAL SYSTEM SERVICES, INC. CREDIT CARD PROCESSING. 4,300.

COLUMBUS REGIONAL HEALTHCARE SYS. HOSPITALS, MEDICAL. 3,883.

A F L A C, INC. INTERNATIONAL INSURANCE. 3,700.

COLUMBUS CONSOLIDATED GOVERNMENT. 2,943.

BLUE CROSS / BLUE SHIELD. INSURANCE. 1,650.

ST. FRANCIS HOSPITAL. MEDICAL. 1,445.

COLUMBUS STATE UNIVERSITY (CSU). 1,010.

SYNOVUS. BANKING. 880.

PRATT – WHTNEY. JET AIRCRAFT ENGINES. 600.


COMMUNITY - CON'D.

The Columbus Visitors Bureau has announced that recent tourism in the area has

approximated 1,000,000. Attractions include the Coca-Cola Space Science Center, River

Center for the Performing Arts, Springer Opera House, and National Civil War Naval

Museum. Others in Columbus are the Civic Center (sports & entertainment), Memorial

Stadium (football), Golden Park (baseball), South Commons (7 Olympic softball fields),

Columbus Museum, and the large National Infantry Museum near Fort Benning. Attractions

within sixty miles include Callaway Gardens and Roosevelt State Park in Harris County,

Roosevelt Little White House in Warm Springs, Westville in Stewart County, President

Carter‟s birthplace in Plains, Andersonville prison in Sumter County, and several

impoundments along the Chattahoochee River (Lake Eufaula, Lake Oliver, Lake Harding,

Lake West Point) for recreation.

Overall real estate interest is currently estimated to be normal, but has been “soft”

during the past year in conformity with national economic conditions. The market in

Columbus is anticipated to improve slightly and become more active during 2016. Columbus

is considered to have the physical facilities to be competitive with comparable size cities.

But population and economic growth has been gradual and below some State averages, and

recent unemployment rates are high. It is anticipated that growth in the immediate future

will be at a gradual rate.


FORT BENNING

Fort Benning is the Army‟s largest training installation and has a significant

economic impact on the region - especially in the Columbus market. In 2005 the Base

Realignment Commission (BRAC) made several significant recommendations concerning the

future of Fort Benning Military Reservation. Based on Army documents and various

community agencies, the Department of Defense approved to increase the mission at Fort

Benning. This entailed the creation of the Maneuver Center of Excellence by combining the

existing Fort Benning Infantry School with the Armor School in Fort Knox, Kentucky with a

combined center to be located within Fort Benning. Full operating capability of the

combined forces was completed in late - 2012.

U.S. Census Bureau population numbers for the Columbus metro area, for the

period 2010 to 2012, indicate a population increase from the Base Realignment Commission

(BRAC) that shifted troops, civilians, and family members from Fort Knox, Kentucky to Fort

Benning, Georgia.

COLUMBUS METRO AREA: 2010 2012 Increase %

Muscogee County: 189,885 198,413 + 8,528 + 4.5%

Harris County: 32,024 32,550 + 526 + 1.6%

Chattahoochee County: 11,267 13,037 + 1,770 +15.7%

Russell Co. (Ala.): 52,947 57,820 + 4,873 + 9.2%

Calculations of U. S. Census from 2010 to 2012 indicated the Columbus metro are

grew by 15,666 people, rising from a population of 294,865 to 310,531, an increase of

5.4%. The metro area includes Muscogee, Harris, Chattahoochee, and Marion counties in

Georgia and Russell County in Alabama. Nearby Lee County (Alabama) had a population

increase of 7,000 and Troup County (Georgia), home of KIA auto assembly plant, grew

by 1,400 residents. Combining all the surrounding counties in the Columbus region shows

the area gained over 23,000 residents the past two years, an increase of 4.4%.


LOCATION

Subject property is located on the north side of 30th Avenue, bounded by Victory

Drive to the west and North Lumpkin Road to the east, approximately one mile southeast of

the downtown business district. The Main Post section of Fort Benning is three miles south.

Victory Drive (U. S. 80) is a major six-lane divided arterial through the southern part of

Columbus and is part of the South Georgia Parkway between Columbus and Brunswick. It is

also a four-lane highway from Columbus to Opelika, Alabama. 30th Avenue is a two-lane

residential street with light traffic. Victory Drive has moderate to heavy traffic that is

increasing.

Strip commercial uses along Victory Drive are local and franchise motels, restaurants,

manufactured home sales, new and used automobile sales, taverns, auto repair and service

businesses, banks, gas stations, retail businesses, shopping centers, and mini-storage

developments. New retail stores have been built in scattered locations and some older

centers are experiencing vacancies. Several industrial properties are northwest and southeast

on and off Victory Drive. A church, branch bank, and McDonald‟s Restaurant are on the

corner of Victory Drive and South Lumpkin Road. Along South Lumpkin Road are offices,

shopping centers, retail stores, taverns, gas stations, auto service, library, schools, and single

family homes.

Columbus River Walk, extending from the downtown district into Fort Benning, is west

of subject bordering the Chattahoochee River. The southern part of Columbus was

developed years ago. Most residential sections are over 50 years old and there is a high

ratio of apartments, duplex‟s, and mobile homes. Mobile home parks are in scattered

locations southwest of the subject. Most residents are in the middle - low and low income

class. Most commercial businesses cater to transit, military, and neighborhood trade.

Several commercial buildings in the area are old and in only fair condition, but some

have been refurbished. Demand and interest for commercial development in south-Columbus

has been only fair to average in comparison with more active northern growth sections.

Real estate activity appears to be normal, but activity increased following the Base

Realignment (BRAC) statements concerning increased levels of troops at nearby Fort Benning

Military Reservation. Groups of properties on major roads have been improved (3 hotels)

and / or refurbished. The prevailing economic character of property uses and residents in the

area will likely continue for many years.


LAND

A current survey was not furnished and the Muscogee County Tax Map is relied on

in approximating land dimensions and size. Subject inside land fronts approximately 440.00

feet on the north side of 30th Avenue and has a maximum depth of 558.50 feet. Property

has frontage along the western boundary of a small creek. Property is irregular shaped.

Based on furnished property data, subject land contains approximately 4.760 acres.

The land has mostly level topography with down slopes towards the southwest corner.

Land in the immediate area of the building is fairly level and mostly open. Drainage

appears to be good. Unless an engineering test is furnished indicating differently, subject's

soil texture is assumed not to have any adverse environmental hazards or adverse

conditions and is suitable for development. All public utilities (water, sewage, electricity,

natural gas, telephone) are available. There are no known easements or private use

restrictions on subject property.

The irregular shape of the subject land is considered to have adequate access, shape

and features for functional utility and is considered competitive with other large commercial

sites in the area.

According to Community Panel #135158-0045-D, approximately 30% of the subject

land, located in the northwestern quadrant, appears to be in a 100 year Flood Hazard

Zone.

BUILDING

Subject site improvements and building were originally developed in 1960 (56 years

ago) with numerous additions and renovations over the past 30 years. Subject is known as

the former “30th Avenue School” building. Access drives are located on the north side of

30th Avenue leading to an asphalt / gravel parking lot on the southern section of the

property. A gravel parking area is on the east side of the building.

It is recommended that an environmental audit be performed on the improvements to

ascertain the current physical state of the facility (asbestos, etc.) and any soil conditions or

containments.


PROPERTY DESCRIPTION - CON'D.

Grounds around the building are minimally landscaped. Site improvements are in

acceptable to fair condition and this includes some asphalt pavement and chain link fencing.

Concrete walks (covered) are located in the front section of the building.

Gross areas and construction features of the subject building, based on furnished

specifications from the MCSD, is 17,607 square feet.

Building has masonry foundation and framing with brick veneer exterior. Building has

covered entry with concrete walks. Widows are fixed metal casement. The flat roof has

membrane cover. Entire building has multiple HVAC systems (size unknown). Floors are

vinyl tile / concrete with concrete block / brick masonry walls and acoustical tile ceilings.

Rest rooms do not appear to meet current ADA Standards. See Limiting Conditions

on pages 1 and 2, especially #6 and #8 concerning handicap laws and environmental

issues.

Building was vacated by the Muscogee County School District over three years ago.

The building has been vandalized with several broken windows and peeling paint. Based on

inspection, subject is estimated to be in poor physical condition and would need extensive

repairs to upgrade and meet current mechanical, electrical, and ADA standards.

Property exhibits are on the following 8 pages.


VIEW EAST – 30TH

AVE. SUBJECT AT LEFT.

FRONT VIEW - 30TH

AVENUE SCHOOL.

VIEW - SUBJECT PROPERTY.


SIDE VIEW - SCHOOL (VACANT) BUILDING.

FRONT VIEW - SCHOOL BUILDING.

SCHOOL BUILDING.


VIEW - PROPERTY.

INTERIOR - SCHOOL BUILDING.

FRONT ENTRANCE.


ZONING

R M F - 1, Residential / Multi-Family District. Allowable uses include a number of

single family houses, small to medium unit multi-family development. No businesses are

allowed that emit obnoxious odors or excessive noises. As best determined, subject's land

and existing improvements legally conform with zoning and building requirements.

TAX DATA

Subject is currently owned by the Muscogee County School District and this entity

qualifies for ad valorem tax exemption. The assessor‟s office has placed a total tax value

on the property in the amount of $ 460,075.00

RECENT HISTORY

As of the effective date of this appraisal, subject is not known to be listed for sale

nor under contract to purchase. Building has been vacant for over three years. Muscogee

County School District has owned the property for over fifty years and has operated as the

public school known as “30th Avenue School.”


HIGHEST AND BEST USE

This is defined as, "The reasonably probable and legal use of vacant land or an

improved property, which 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, physically possibility, financial feasibility, and

maximum profitability". The Directory of Real Estate Appraisal, Third Edition, (Chicago:

Appraisal Institute, 1993) p. 171.

The highest and best use of a property is an economic concept the measures the

interaction of the four criteria. Highest and best use is estimated as if the property was

vacant and then as improved.

AS THOUGH VACANT.

1. LEGALLY PERMISSIBLE. Subject is located in an established residential /

commercial section of the City just east of Victory Drive. The school building was

originally completed over 50 years ago with numerous additions. Has good access

and exposure. It is zoned for industrial use like surrounding properties to the north,

and there is no known demand or movement in the market that would warrant

changing the zoning for general commercial use.

2. PHYSICALLY POSSIBLE. The land has good size, shape and features for utility

and all public utilities are available. Drainage appears to be good and the soil texture is

assumed to be suitable for improvements and/or development. Existing improvements show

subject is physically possible to use.

3. FINANCIALLY FEASIBLE. Commercial use is estimated to be financially feasible

and gives the owner maximum productivity as to highest net return on invested capital.


HIGHEST AND BEST USE

4. MAXIMUM PROFITABILITY. Redevelopment of the subject site, based on current

physical condition of the buildings would meet the previous three test and is considered to

be the most productive use of the land.

AS IMPROVED.

Subject land is already developed. The existing building and site improvements are

in poor condition and do not contribute value to the land. As previously reported, growth

in population, household income and retail sales in the community contribute to the success

of any commercial enterprise.

Subject improvements conform with zoning and are legally permissible.

Physical existence has already been proven.

Potential income to the owner is judged to support financial feasibility.

An alternative use for multi-family residential or general commercial use is

considered appropriate and give maximum productivity to the owner.

CONCLUSION.

The property as redeveloped is therefore concluded to represent the highest and

best use. This use meets all required test.


APPRAISAL PROCESS

The appraisal is done at the request of Kimberly Wright, representing MUSCOGEE

COUNTY SCHOOL DISTRICT. The appraiser inspected the subject property building on the

effective appraisal date, made notes, and took photographs. Public records and office files

were investigated for reporting market information concerning land sales and building sales

and rentals. Market data was confirmed as best as possible by the appraiser with sellers,

buyers, tenants and / or agents familiar with transactions.

The data is organized by type and presented in a format designed to produce a

logical value conclusion that is supported by the acquired data. Three techniques usually

processed by appraisers when valuing real estate are the Cost Approach, Income

Capitalization Approach and Sales Comparison Approach.

Cost Approach is based on the principal that one would not pay more than the cost

of producing a substitute property having the same utility as the subject. This analysis

involves the summation of vacant land value and the depreciated value contribution of

improvements to arrive at an indicated property value. Based on the age of subject facility

(50+ years), along with substantial judgment involved in estimating all forms of depreciation,

a Cost Approach is not processed.

Income Capitalization Approach is based on the principal of anticipated benefits to an

owner in the form of an acceptable return on and of invested funds commensurate with risk

and other economic factors. This analysis involves the direct capitalization of net income to

an indicated property value.

A discounted cash flow analysis is not processed based on numerous judgmental

factors involved in projecting future rental income, expenses, reversion value of property at

the end of an assumed projection period, and measuring future risk.


APPRAISAL PROCESS

Sales Comparison Approach is based on the principal that an informed person would

pay no more for a property than the cost of acquiring another property having the same

utility. Sales of similar use real estate reflect the reactions of the market. A market search

did not reveal any recent large commercial vacant land sales that are exactly comparable

with the subject, but samples of property sales are listed and used as a valuation guide.

In addition to comparing physical features, adjustments are made based on

differences in location, size, access and exposure.

Appraisal techniques are reviewed and then reconciled to the final estimate of the

MARKET VALUE of subject property in its present "AS IS" physical state on the effective

appraisal date.


SALE 1:

GRANTOR: Muscogee County School District. GRANTEE: Bright – Meyer Manchester, LLC. DB / PG: Deed Book: 11467, Page 306. PRICE: $1,200,000.00 DATE: March, 2015. SIZE: 8.41 Acres. LOCATION: Located north of subject property on the south side of Manchester Expressway. Bounded by River Road to the west and Veterans Parkway to the east. FEATURES: Former site of Daniel School – was demolished after purchase. Mostly level land. EASEMENTS: None. ZONING: G-C. Commercial. FLOOD ZONE: None. USE: Purchased for future site of Wal-Mart grocery center. Will include additional tenant spaces for development. BASIS: $142,687 Per Acre.


SALE 2:

GRANTOR: Columbus Park East, LLC. GRANTEE: Sundar Shyam, LLC. DB / PG: Deed Book: 11304, Page 110. PRICE: $625,000.00 DATE: July, 2014. SIZE: 4.564 Acres. LOCATION: Located northeast of the subject property on the north side of Whittlesey Boulevard. Bounded by Moon Road to the east and located within Columbus Park Crossing center. FEATURES: Vacant tract of land. Has rolling topography with up slopes to the rear boundary along J. R. Allen Parkway (no access). EASEMENTS: None. ZONING: G-C. Commercial. FLOOD ZONE: None. USE: Purchased for future commercial development. BASIS: $136,941 Per Acre.


SALE 3:

GRANTOR: Columbus Park East, LLC. GRANTEE: Medical Realty Group North, LLC. DB / PG: Deed Book: 11408, Page 292. PRICE: $895,000.00 DATE: July, 2014. SIZE: 7.280 Acres. LOCATION: Located north of the subject property on the south side of Whittlesey Boulevard. Bounded by Moon Road to the east and located within Columbus Park Crossing center. FEATURES: Vacant tract of land. Has rolling topography with down slopes to the rear boundary. EASEMENTS: None. ZONING: G-C. Commercial. FLOOD ZONE: None. USE: Purchased for future commercial development. BASIS: $122,940 Per Acre.


SALE 4:

GRANTOR: Muscogee County School District. GRANTEE: Waverly Terrace Senior Apts, LLC. DB / PG: Deed Book: 11447, Page 304. PRICE: $703,600.00 DATE: February, 2015. SIZE: 2.787 Acres. LOCATION: Located north of the subject property on the south side of 29

th Street with frontage along the east side of 11

th Avenue and

the west side of 12th Avenue.

FEATURES: Former „Columbus Industrial High School‟ – built 1906. Vacated building at time of sale. 64,916 square feet. In poor condition and needed extensive renovations to upgrade the facility to functional use. EASEMENTS: None. ZONING: G-C. Commercial. FLOOD ZONE: None. USE: Purchased for future senior living housing development. BASIS: $252,458 Per Acre.


SALE 5:

GRANTOR: Ellioitt Family Properties. GRANTEE: Bonnie Blue Company, Inc. DB / PG: Deed Book: 11486, Page 311. PRICE: $325,000.00 DATE: March, 2015. SIZE: 2.070 Acres. LOCATION: Located just south of the subject property on the west side of Victory Drive. FEATURES: Rectangular shape. Vacant and cleared site. EASEMENTS: None. ZONING: G-C. Commercial. FLOOD ZONE: None. USE: Purchased for future commercial development. BASIS: $157,005 Per Acre.


SALES APPROACH

PROPERTY SALE SUMMARY

SALE DATE SIZE PRICE / ACRE

1. 3/15 8.410 $142,687

2. 1/14 4.564 $136,941

3. 7/14 7.280 $122,940

4. 1/15 2.787 $252,458

5. 3/15 2.070 $157,005

SUBJECT 8/16 4.760 $ - - - - -

Sale 1 ($141,687 / Acre). Is a recent sale and is not adjusted for time. The land is

larger (+) in size with superior commercial location (--) along the south side of Manchester

Expressway. Land has superior (-) access and exposure (-). Net adjustment for differences

is -50% and indicates $70,853 per acre.

Sale 2 ($136,941 / Acre). is a recent sale not adjusted for time having similar market

conditions. Has superior (-) commercial location within Columbus Park Crossing center. Has

superior access and exposure (-). Land is similar in size. Has inferior (+) physical features

with sloping topography. Net adjustment for differences is -50% and indicates $68,471 per

acre for the subject.


SALES APPROACH

Sale 3 ($122,940 / Acre). is a recent sale not adjusted for time. Land is larger (+)

in size. Has superior commercial location (-) within Columbus Park Crossing center. Has

superior (-) access and exposure. Inferior physical features (+). Net adjustment for

differences is -50% and indicates $61,470 per acre for the subject.

Sale 4 ($252,458 / Acre). Is a recent sale not adjusted for time having similar market

conditions. Has superior (-) location in the mid-section of Columbus. Land is smaller in size

(-). Has similar physical features with mostly level topography. Has similar access and

exposure. Net adjustment for differences is -70% and indicates $75,737 per acre for the

subject.

Sale 5 ($157,008 / Acre). Is a recent sale not adjusted for time having similar market

conditions. Has superior (-) location along Victory Drive. Land is smaller in size (-). Has

similar physical features with mostly level topography. Has superior access and exposure.

Net adjustment for differences is -50% and indicates $78,504 per acre for the subject.

Adjusted improvement prices in this data sample range from $68,471 per acre to

$78,504 per acre with largest percentage adjustments made for differences in subject‟s

location and land size. Judgment is involved in measuring differences due to lack of similar

large former school building sales in secondary market locations. The former „30th

Avenue

School’ building was originally built in 1960. Building is vacant, has been vandalized, and

in poor physical condition.

After review, it is estimated that a value basis of $75,000.00 per acre for subject

property is estimated to be reasonably supported.

$ 75,000.00 PER ACRE x 4.76 ACRES = $ 357,000.00


RECONCILIATION AND FINAL VALUE ESTIMATE

SALES APPROACH ANALYSIS: $ 357,000.00

Subject building has been owner-occupied by Muscogee County School District and

does not have a history of market rental income nor expenses. Five local large commercial

land and property sales are used for analysis in the Sales Approach. Adjustments were

made comparing the sales to the subject based on land size, location, access and exposure.

All five sales took place in similar market conditions and a time adjustment was not made.

The indicated value by price per acre is judged to be realistic and weight is placed on the

Sales Approach reflecting market trends.

In the final analysis after reviewing all data and techniques, it is then estimated that

the MARKET VALUE of the subject property, in its "AS-IS" physical state, as observed

on the effective appraisal date of AUGUST 19, 2016, is reasonably supported to be:

THREE HUNDRED FIFTY - SEVEN

THOUSAND DOLLARS

( $ 357,000.00 )


EXPOSURE TIME

This is defined by USPAP as “the estimated length of time 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; a

retrospective opinion based on a analysis of past events assuming a competitive and

open market”.

Exposure time is not intended to be a prediction of a date of sale. Considerations

are given to historical information, identification of typical buyers and sellers, and typical

financing. It assumes reasonable exposure, reasonable marketing effort, reasonably priced

with typical motivations and no undue stimulus between parties. Considerations might also

be given to future income expectancy projected from the effective appraisal date.

For the type of subject real estate, it is believed a reasonable exposure time is six

to twelve months preceding the effective appraisal date at a value range closely

approximating the estimated market value.

MARKETING TIME

This is defined by USPAP as “an opinion of the amount of time it might take to

sell a real or personal property interest at the concluded market value level during the

period immediately after the effective date of the appraisal”.

Marketing time is not intended to be a prediction of a date of sale. The estimate

of marketing time uses some of the same data analyzed in the appraisal as to their

market time experience. Considerations are given to prevailing „tight‟ monetary conditions,

local „soft‟ real estate market conditions, and/or opinions of market participants. Market

conditions are not expected to change significantly in the short term (2016), and it is the

appraiser‟s opinion that if the subject property was to be immediately exposed and offered

for sale on the open market, a marketing time period of about 12 months could be

reasonably expected.


SCOTT L. BOYCE WOODRUFF BROKERAGE CO.

P.O. BOX 7727 COLUMBUS, GA. 31908

706 – 615 - 9733 EDUCATION: UNIVERSITY of GEORGIA B.S. DEGREE, ECONOMICS.

LICENSED: Georgia Certified General Real Estate Appraiser: #5324.

Actively engaged in the appraisal of real estate for over twenty years and have related experience in banking and finance. Professional territory includes Muscogee County, Harris County, Troup County, Talbot County, Taylor County, and Stewart County.

Samples of clients include Columbus Consolidated Government, Muscogee County Board of Education, Columbus State University, Columbus Bank & Trust, Synovus Trust Company, Regions Bank, Wells Fargo, SunTrust Bank, Certus Bank, Columbus Community Bank, Colony Bank, AFLAC, W C Bradley Co., LaGrange Banking, and various businesses, attorneys, accountants, and individuals.

PROPERTIES Appraised 2003 – 2015 (ytd):

150 Apartments.

350 Commercial Buildings.

350 Office Buildings.

40 Churches.

30 Subdivision Developments.

60 Retail / Shopping Centers.

60 Warehouse / Industrial Buildings.

CIVIC ACTIVITIES:

Trinity Episcopal Church - Vestry (1997 – 2000).

Overlook Community Preservation Society - President (1999 – 2002).

Historic Linwood Foundation – President / Board (2003 – Present).

Planning & Advisory Commission - Chairman / Board (2006 - 2011).

Muscogee County Tax Assessors - Board (2011).

The Do Good Fund - Trustee (2012 – Present).


SCOTT L. BOYCE P.O. BOX 7727

COLUMBUS, GEORGIA 31908

DATE: AUGUST 22, 2016

MUSCOGEE COUNTY SCHOOL DISTRICT

ATTN: CONSTRUCTION DEPT – Kimberly Wright.

P.O. BOX 2427

COLUMBUS, GA. 31906

FOR SERVICES RENDERED:

INVOICE: 0822 - 2016

BY: Scott L. Boyce

FOR: „30th

Avenue School‟ Building.

151 – 30th

Avenue

Columbus, Ga.

TOTAL FEE: $ 2,200.00

PURCHASE ORDER: P0018701

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