1992-04-06_GENERAL DOCUMENTS - C1981017

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Mid— Continent Resources May 19, 1988 Page — 6 — Carbondale. The comparable land and improved property data assembled for this appraisal revision indicate more loss in value in the Carbondale area than in other locations. As would be expected the effect of the national economic malaise affecting the steel industry had a greater impact on the Carbondale area than the remainder of the Roaring Fork Valley due to the concentration of related employment in the Carbondale area. The Glenwood Springs market place, in contrast, while showing value declines in many kinds of real estate tended toward stabilization in the commercial and industrial land categories. This is probably due to the severely restricted supply resulting from the more topographically Impacted area. The improving national economy, trade deficit, and fortunes of the national steel industry, together with interest rates which have trended downward in recent time, all point to a more optimistic future than has been evident over the last three or four years. REVISED COST APPROACH (5/19/88) I have carefully reviewed my file from the December 18, 1984 appraisal. On May 19, 1988 I re— inspected the property. Land sales data in the area including eight land sales and four land properties listed for sale were analyzed to indicate a revised land value. The eight sales took place from October 1985 to February 1988. Gross land areas ranged from 21,780 square feet to 94,961 square feet. Sales prices ranged from $40,000 to $220,000. Price per square foot ranged from $0.57 to 32.32 per square foot The land listings ranged from $1.24 to $2.23 per square foot with size ranging from 19,384 to 566,716 square feet. This data was far from ideal in terms of direct comparison to subject land. The reviewed data is less indicative than the sales data discussed in the original report, with the exception of the recent local downward trend. This data led the writer to adjusting the land value of the primary 10 acres downward from $45,000 per acre to $25,000 per acre. The remaining 7.6 acres was reduced in value from $750.00 per acre to 3500.00 per acre. Other sales in the area tended to confirm this unit value. My inspection revealed no significant outwardly visible changes in the property. Additional construction costs were reported by the Company accounting officer, Mr. LaGiglia. The additional costs totaled 3136,337. Utilizing the Marshall Valuation Service cost indexes as described on page 12 of the original report for cement manufacturing equipment, I re— calculated the reported original costs and subsequent additional costs into a present Applegate & Co. Real Estate Appraisers