C150379 Value of Shares - Laserfiche WebLink

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Mr. Brett Ginther January 17,2014 Page 3 Recent Comparable Share Transfers and Sales As described above, BBA's effort to develop an opinion of value for the subject FHL shares was based on comparable water rights transfers that have been completed in the recent past. We interviewed numerous individuals associated with recent sales, including buyers, sellers, and brokers of water rights on Clear Creek that included representatives from several municipalities, developers, private companies, and the FHL itself to develop a comparative value of the water. The attached Table 1 provides a summary of the most applicable comparable sales and share transfers selected for development of the current market value of FHL shares. Estimated Value of the Subject Shares As shown in Table 1, the value for FHL shares from the six sales we have verified from the past four years ranged from $280,000 to $800,000 dollars per share. The lowest value(Transaction No. 2) involved the sale of only 118th of a share from you to another irrigator under the FHL. The next two lowest values (Transactions Nos. 1 & 3) involved shares conveyed from developers to cities; these sales were actually trades of water in exchange for water service. The transaction value was set by the two cities(Arvada and Thornton). Therefore, since these sales were not cash transactions, they are less representative than the more recent cash sales. Additionally, Transaction Nos. 1 & 3 involved the largest blocks of shares out of the six sales, and there may have been some reduction in value per share due to the larger quantities. The three most recent values (Transaction Nos. 4 to 6) were all cash sales and probably are most representative of current values for your two shares. The average value per FHL share from the six sales is $575,778. The data indicate that values are trending up, and the recent values are therefore probably the best indicator. However, in order to provide a representative range of values based upon the data we have reviewed, we have used the average value of the last six sales as a lower limit and the value of the recent three sales as an upper limit. It is our opinion that the value of FHL shares at this time is between $575,000 and $800,000 per share. Thus, for the two shares under consideration for purchase by Wadley HOA,we estimate the current value to be between $1,150,000 and$1,600,000. Not included with this estimate are costs associated with any ditch company assessments or loan interest. If you have any questions,please don't hesitate to contact us. Very Truly Yours, BISHOP-BROGDEN ASSOCIATES, INC. A ss:%444 /1//, ¥Y. Austin Malotte, P.E. Michael A. Sayler,P.E. Project Manager—Water Resources Engineer Principal APM/jeb Enclosures 0227.01