CT2015-164 Anderson Land Appraisal 01/05/2012

• Contract/PO #: CT2015-164
• Contract/PO #: C150328
• Contract/PO #: C150328A
• Contractor Name: Two Rivers Water and Farming Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

` 1Main Ale No.11-22061 Page#3l
LAND APPRAISAL SUMMARY REPORT RieNo.: 11-2206
My research X did ❑did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal.
> Data Source(s): Court House Records;Owner
O 1st Prior Subject Sale/Transfer Analysis of sale/transfer history and/or any current agreement of sale/listing: The prior sale of the subject property included
I--• Date: 08/31/2011 five non-contiguous parcels containing approximately 1,120 acres with some supporting improvements. Extensive
E Price: $400,000 improvements have been completed to the acreage for irrigation efficiency since the prior sale. In addition,the
w Source(s):Crt Hse;Owner;Contract subject property was not known to be exposed to the open market. Any previous sales of the subject property
co 2nd Prior Subject Sale/Transfer and/or comparable sales have no affect on the current opinion of market value. The subject property has not been
• Date: None listed for sale since acquired,or known to be under contract.
- Price: None
Source(s):Court House Refer to the following page for the comparable sales transfer history.
FEATURE I SUBJECT PROPERTY COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3
Address 39327 Harbour Rd 6265 Huerfano Rd 17961 County Road T 1696 US Highway 96
Avondale,CO 81022 Avondale,CO 81022 Rush,CO 80833 Fowler,CO 81039
Proamity to Subject 4.87 miles SE 56.31 miles NE 20.86 miles E
Sale Price $ $ 400,000 $ 485,000 $ 200,000
Price/Acre $ $ 1,176.47 $ 1,515.63 $ 692.04
Data Source(s) Court House/Owner PARMLS#106678;DOM 475 PARMLS#117062;DOM 1183 PARMLS#125255;DOM 586
Verification Source(s) Inspection Exterior Inspection;Assessor;Clerk.Agent;Court House Exterior Inspection;Assessor;Clerk
VALUE ADJUSTMENT DESCRIPTION DESCRIPTION +(-)%Adjust DESCRIPTION +(-)%Adjust DESCRIPTION +(-)%Adjust
Sales or Financing N/A ArmLth ArmLth ArmLth
s Concessions N/A Cony;0 Cony;0 1031Exchange:0
a Date of Sale/Time N/A s06/09/2008 0 s08/02/2011 0 s03/04/2011 0
ix Rights Appraised Fee Simple Fee Simple Fee Simple Fee Simple
a Location Avondale/Boone Avondale/Boone 0 Punkin Center 0 Fowler
Q Site Area(in Acres) 158.7 Acres 340 Acres +5 320 Acres +5 289 Acres +5
o Irrigation HCIC Ditch Available HCIC Ditch Available Rights+Augmentation -25 Adj.Wells(Partial) 0
• Zoning Agricultural Agricultural Agricultural Agricultural
a Improvements Dwelling/MiscOutbldg LgDwelling/Outbldgs_ -20 DwIg/OBs/4PivSystm -20 Outbuilding +5
2 Topography Slightly Sloping Huerfano River -10 Slightly Sloping Rugged Areas . +10
o Additional Consideration Farm/Ranch Hobby Farm/Ranch 0 Farm/Ranch Hobby Ranch
to w Net Adjustment(Total,in$) ❑+ ® - $ -294.12_ El+ ® - $ -606.25 ®+ ❑ - $ 138.41
Q Net Adjustment(Total,in%of$/Acre) Net 25.0% 1-25%of$/Acre) Net 40.0% (-40%of$/Acre) Net 20.0% 120%of%Acre)
o)Adjusted Sale Price(in$/Acre) Gross 35.0%$ 882.35 Gross 50.0%$ 909.38 Gross 20.0%$ 830.45
Summary of Sales Comparison Approach It is imperative to understand that comparable acreage sales similar to the subject property are extremely limited at
this time. Consequently,some less than ideal comparable sales were analyzed that required larger than desired adjustments and/or are located many miles
from the subject property. However,the nine comparable properties utilized in this appraisal report share many similarities to the subject property,and they
provide support for a credible value range conclusion. Comparable sale#1 includes superior improvements(dwelling and outbuildings)in comparison to the
subject. In addition,this property is bisected by the Huerfano River which warrants further consideration for premium river bottom frontage. Comparable
sale#2 includes irrigating water rights with augmentation,and four pivot systems. Comparable sale#3 required the appropriate adjustments for inferior
improvements and topography. The quantitative adjustments applied to the comparable sales in the comparison analysis grid are rounded percentage
adjustments based on my opinion of qualitative variances between the comparable sales and subject property. The applicable adjustments have been
rounded to a 5%variance increment based on rating and/or market extracted trend indicators. The adjustments essentially consider the appropriate
percentage variances of price per acre paid between the comparable sales and subject property. Additional information is retained in the work file.
PROJECT INFORMATION FOR PUDs(if applicable) ❑The Subject is part of a Planned Unit Development.
o Legal Name of Project:
a Describe common elements and recreational facilities:
Refer to the additional comparable properties on the following pages for further support of the opinion of market value.
Indicated Value by:Sales Comparison Approach$ 139,700 or$ 880 per Acre
Final Reconciliation The subject property has an adjusted value range from$805 to$1,008 per acre which has been resolved to$880 per acre as applicable to
p the subject acreage. Comparable sales#1 and#6 are most comparable to the subject property and given most weight due to location.
This appraisal is made®"as is",or ❑ subject to the following conditions: The Indicated Value by Sales Comparison Approach shown above has been
n rounded to$140,000 as the final opinion of market value applicable to the subject property. The Cost Approach and the Income Approach to value have not
z been developed in this report as agreed upon by myself and the client. The subject improvements have an estimated contributory value of$45,000.
o 17 This report is also subject to other Hypothetical Conditions and/or Extraordinary Assumptions as specified in the attached addenda.
o
Lir Based upon an inspection of the subject property,defined Scope of Work,Statement of Assumptions and Limiting Conditions,and Appraiser's Certifications,
ce my (our) Opinion of the Market Value (or other specified value type), as defined herein, of the real property that is the subject of this report is:
$ 140,000 ,as of: 12/21/2011 ,which is the effective date of this appraisal.
If indicated above,this Opinion of Value is subject to Hypothetical Conditions and/or Extraordinary Assumptions included in this report. See attached addenda.
± A true and complete copy of this report contains 24 pages,including exhibits which are considered an integral part of the report.This appraisal report may not be
a properly understood without reference to the information contained in the complete report,which contains the following attached exhibits: M Scope of Work
{- H Limiting Cond./Certifications ❑Narrative Addendum ®Location Map(s) ®Flood Map Addendum ®Additional Sales&Listings
Q ®Photo Addenda ®Parcel Maps n Hypothetical Conditions ❑Extraordinary Assumptions ❑DCF Analysis
Client Contact Wayne Harding Client Name: Two Rivers Water Company
E-Mail: wharding t.2riverswater.com Address: 2000 S Colorado Blvd,Annex Bldg Suite 200,Denver,CO 80222
APPRAISER SUPERVISORY APPRAISER(If required)
or CO-APPRAISER(If applicable)
co Supervisory or
' Appraiser a John M.Andersen Co-Appraiser Name:
Company: Andersen Appraisals Company:
I Phone: [phone] Fax: [phone] Phone: Fax:
u? E-Mail: andappraisalsta7,aol.com E-Mail:
rn Date of Report(Signature): 01/05/2012 Date of Report(Signature):
License or Certification#: CG40019884 State: CO License or Certification#: State:
Designation: Certified General Appraiser Designation:
Expiration Date of License or Certification: 12/31/2014 Expiration Date of License or Certification:
Inspection of Subject: ®Did Inspect ❑Did Not Inspect(Desktop) Inspection of Subject ❑Did Inspect ❑Did Not Inspect
Date of Inspection: 12/21/2011 Date of Inspection:
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