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HomeMy WebLinkAboutRES 068 Draft 01 2012-2014 MVV^os h�� Go . • COUNTY OF HAWAII '�' �''�'����+ STATE OF HAWAII RESOLUTION NO. 68 13 RESOLUTION AUTHORIZING THE ABANDONMENT AND SALE OF THAT CERTAIN PARCEL KNOWN AS THE OLD CHLORINATOR SITE, TAX MAP KEY (3) 4-8-007-030 SITUATED AT KUKUIHAELE, DISTRICT OF HAMAKUA, COUNTY AND STATE OF HAWAII, TO SPENCER D. JACKSON. WHEREAS, the County of Hawai`i is the owner of the parcel known as the Old Chlorinator Site, situated at Kukuihaele, District of Hamakua, County and State of Hawai`i, Tax Map Key(3) 4-8-007-030 which encompasses approximately 14,736 square feet; and WHEREAS, Spencer D. Jackson by Agreement of Sale has interest in the lands surrounding the Old Chlorinator Site and by virtue of the Agreement of Sale is the sole property owner abutting the Old Chlorinator Site; and WHEREAS, Spencer D. Jackson has expressed a desire to acquire the Old Chlorinator Site; and WHEREAS, an independent appraisal has valued the Old Chlorinator Site at $3,100.00, see Exhibit"A"attached hereto; and WHEREAS, this parcel is no longer used by the County of Hawai`i and County Departments have no intent to use this site; and WHEREAS, the County of Hawai`i finds that this parcel is economically and physically unsuitable or undesirable for development or utilization as a separate unit by reason of its location, size and shape, and by definition is a remnant in accordance with Section 2-110, Hawai`i County Code; and WHEREAS, pursuant to Section 2-111 of the Hawai`i County Code, the Council may direct the Director of Finance to dispose of real property in fee simple; and WHEREAS, pursuant to Section 2-118, Hawai`i County Code, remnants or portions thereof may be disposed of without recourse to public auction and shall be first offered for sale to the abutting landowner; and WHEREAS, pursuant to Section 2-118(d), Hawai`i County Code, disposition costs may be added to the sales price; now, therefore, 3 BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that the Old Chlorinator site located in Kukuihaele, District of Hamakua, consisting of approximately 14,736 square feet, as depicted on Exhibit"A," is declared to be abandoned and otherwise discontinued use, that it is physically and economically unsuitable or undesirable for development or utilization as a separate unit by reason of its location, size and shape, and is hereby declared a remnant as set forth in Section 2-110, Hawai`i County Code, and pursuant to Hawai`i County Code Sections 2-111 and 2-118, authorizes the Director of Finance to dispose of this parcel by sale to Spencer D. Jackson, the adjoining landowner, without recourse to public auction subject to the following: 1) buyer to pay all costs of surveying, and subdivision; and 2) buyer to consolidate remnant with its property within one year. BE IT FINALLY RESOLVED that a copy of this resolution be forwarded to: (1) Mayor William P. Kenoi; (2) Director of Finance; (3) Craig T. Masuda, Deputy Corporation Counsel, Office of the Corporation Counsel; and (4) Spencer D. Jackson, 518 Byron Street, Palo Alto, California 94301. Dated at Kona , Hawai`i, this 28th day of March , 2013. INTRODUCED BY: 1/4k COUNCIL MEMBER, COUNTY OF HAWAI`I COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i EOFF X FORD X I hereby certify that the foregoing RESOLUTION was by ILAGAN X the vote indicated to the right hereof adopted by the COUNCIL of the KANUHA County of Hawaii on March 28, 2013 X KERN X ONISHI X ATTEST: POINDEXTER X 344 /OM WILLE X■ YOSHIMOTO X �i'�C=I 9 0 0 Reference: C-157/FC-46 COUNTY CLERK CHAIRPERSON& PRESIDING OFFICER RESOLUTION NO. 68 13 2 LAND APPRAISAL REPORT Ale No.LN12151 • Borrower JACKSON,Spencer D. Census Tract 0219.00 Map Reference 3/4-8-07-30 Property Address Loihi Road(per Tax Map)also referred to as Mud L ne • City Kukulhaele County Hawaii State Hawaii TpCade 96727 4 Legal Description Portion of Grant 932,Apana 2,to Kalama,Kukuihaele,Hamakua,Hawaii Sale Price$N/A Date of Sale N/A Loan Term N/A yrs. Property Rights Appraised X Fee Li Leasehold ❑De Minims PUD • Actual Real Estate Taxes S-0- (yr) Loan charges to be paid by seller$ N/A Otter sales concessions N/A Leuder/Cierd mincer D.Jackson Address 518 Byron Street,Palo Alto,Calefornia 94391 • Occupart Vacant Land Appraiser Robert K.Kurlansky,cGA,CRA Instructions to Appraiser Current Market Value Location LI Urban Suburban X Rural Good Avg. FE Poor Built Up El Over 75% LI 25%to 75% XJ Under 25% Employment Stabitly ❑ g ❑ ❑ . Growth Rate IT Fully Des. l_ Rapid Steady X Slow Convenience to Employment El Z II n Properly Values Li Increasing X Stable j Declining Convenience to Shopping ❑ Z I.Z ❑ Demand/Supply LI Shortage X In Balance .__I Oversupply Convenience m Schools L El ❑ ❑ marbling Time j'j]Under 3 Mas. X 4-6 Mos. ,_l Over 6 Mos. Adequacy of Public Transportation LI M [J ❑ Present Land Use 5%1 Family %2-4 Family _%Apts. _%Condo <1%Commercial Recreational Fealties () X Li L `o' %Industrial_ %Vacant 95% Agrlcufture/Vacant Adequacy of Utilities C XI LI ❑ o Change In Present Land Use .;Not UM X Ukely(•) I Taldng Place(') Property Compatibility ❑ M r I [] (•)From Vacant To Improved Protection from Detrimental Condtans Et Z I_ 0 I Predominant Occupancy X Owner ;Tenant <5 %Vacant Poke and Rre Protection ❑ Q9 ❑ ❑ — Single Family Price Range $ 60,000 to S.675,000 Predormnarrt Value$ 225,000 General Appearance of Properties ❑ X ( ❑ Single Family Age New yrs.to 60+ yrs. Predominant Age 40+yrs. Appeal to Market ® ® ❑ ❑ Comments Including those factors,favorable or untamable,affecting marketability(e.g.pudic parks,schools,view,noise): The subfect property Is situated In the Kukuihaele sector of the Hamakua distri which is rural in character. Prima land uses indude fermi • and ranchin..The area is some 8 miles W of Honokaa Town(neighborhood shopping&services,schools,police&fire stations,etc.),about 18 miles NW of Waimea(broader range of shopping,etc.)Land some 48 miles NW of Hilo,the capitol of Hawaii County. Dimensions Irregular(as per tax map) _ = 14,736 SF.Sq.Ft or Acres l I Comer Lot Zoning classification Agriculture,A-40a(40-acre minimum) Present Improvements k do El do not conform to toning regulations Highest and best use L_1 Present use t,OtheeSspeclly)Consolidation_with adlolninq parcel(3/4-8-07-32)owned by client . Pubic Other(Describe) , OFF SITE IM_PROVEMENTS Tope Gentle to steep slope/cliff Sec. X I keel Access _'Public X Private'Site Typical for the area Gas 'Surface Unpaved&paved !Shape Irregular , Water I ,Maintenance .Public X Private View Minimal owing to heavy overgrowth • San.Sewer i• ;; ; t Storm Sewer _Curb/Guaer Drainage Appears to be adequate/Flood Zone-X/CP#:OZQOC Underground Elect&Tel.! Sidewak t Street Lights In the property Witted In a HUD Identified Special Flood Hazard Area? X No L Yes Comneils(losable or unfavorable alluding any apparent adverse easements,encroachments,or other adverse conrhonsi: There are no apparent adverse easements _, or encroachments affecting the sublect site. -. SEE ADDENDUM FOR SPECIAL CONDITIONS/ASSUMPTIONS&ADDITIONAL SITE COMMENTS SECTIONS. :... The undersigned has recited three recent sales of properties mast similar and amino to subject and has considered these I the maket analysis.The description includes a dollar . adjustment reflecting market reaction to those hems of dgnlicard variation between the subject and comparable properties.If a dgniicant item in the comparable property Is superior to Of man Womble than the subject property,a minus I•)adjustment to made tiros reducing the Indicated value of subject It a etgnitcant item lA he comparable Is inferior to or less favorable than line subject property,a plus(+)adjustment Is made thus increasing the indicated value of the subject ITEM I SUBJECT PROPERTY COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Address Loihi Road TMK:4-8-07-30 P,.la, h Sub'ct 7;Y•`._s^l-' ..:F. :n Sales Price $ N/A '-t `°s.u ;r; s 4 rr r,; S ".g:. 'ir^;.:r, :d..$ Price @ SF $ N/A . .. 'Z,. .. f7 $ s e,i....;;i .w'; +' .ft 4 ziFnP.it F� Dale Source On-site Inspection z Date of Sale and DESCRIPTION DESCRIPTION 1+1-liAdust. DESCRIPTION I+f-ISAdust DESCRIPTION I+(-1$Adlust o Time Adjustment Current w Location Kukuihaele ,• T:, few 14 736 SF • CO-MP .c, l'i : , I, -11 T . Saks or financing Cash or Cash Cwtcessbns Equivalency • mauled Value 3 .r , < a E ,ti.s= °,77•'r i{ .` err. �G of Subject ...sti. _,, . :..r" .aNef.;%x % $ ..:' .Nef'?'.-*>,%,t..5 yNe .10$ Comments on Market Data SEE ADDENDUM. Comments and Conditions or Appraisal: AS stated in the following ADDENDUM. All sales reflect cash or cash equivalency transactions. Any seller-financed sales will be adjusted and discussed,if necessary. The Cost and Income Approaches were not employed,as they e are typically applicable to valuations of improved and/or Income produdng properties. As such,this Is considered to be a t Complete Appraisal-Summary Report. Rnal Recancilation: The Market Data(Sales Comparison)Analysis is deemed a reliable method of valuation,reflecting the actions of buyers and sellers within the marketplace. tt Assessed Value 2012 ; Land .5 300 , e esilmaru sue MARKET VALUE,as DEEDED,DP SUBJECT I; +:r''lJ7 . • September 28,2012 to be$ 3 100 CERTIFIED Robert K.Kurtansky,coA,cRA _ 7 Old Il Did Na Physically Inspect Property Appralser(s) at: j'..: ;;y:,, abi:, SKI der-Island Apr, at C (808j885.7742 FormlND—, Tr .r .ItNa, ,yala mode,inc.—1-E00-ALAMODE w Exhibit e� AIIV• O N o V p �o O '8 04 Q p 00 N Q z w V U! U!U A fA co W l/J H p� U) C9 e o 00000 $ M E Vim' �tl. u7 u)o 0O r CO ) m O w CO clN7 O IA'. (3.) Ui (43 IA Uf U!((A I- iY d 7 2 z 2 -16jr. C O D 4N O M W N •0 M 2 2 0 0 O o o O a a w di w O O W N 0 0 0 UN- o ..- OO .- Q 0 z J a. Z nN N NNNNO 0 W Cl) a 0 O o o 0 0 .- Q g z o CO 1.1.1 w 0 po pp r co ' 4 Q OO 'AtiO Fr .' r00 .- M 0 0 0 6q Q E` 4 z Q 'Z & U � N OOO- No 'W CC O Ct J �J Ce �p 0p Z iii cV Q 't 0 f■ 0 0 0 0 L" O P6 O O .- .- ,- .- et I 2 C�6 f) N f0/l CI) CO w E 0 e! .1. N .,- Q' N M N N N C0 - 0 In 0 o ' o ( v E V) h' C � o „ AI = v 0 W g `4 ss ' ° ° a ° Q u • � � 3 ee m m Q ti t M U 'c Z' m w Z ag g It N � � � joie = C7mmg LL. a CO Wm 2aaa0ce i� 'uc'. co Z Mrs .g aO N 0MO (AM 0 P y M N O) N O) CO CD .�w q1v ID.6 0 000iv ( J.r co '11 Y- 4 v w x3 fA EA ba,(' Vi fH X IA. W M N ° Cl) F C o m o ON- oo aO CD CO N D p S A 0 h Lii I"n; W UI F.-2 a N Q Z W' u. h Lo W N N N I- ON i W p 7 Owe a Qom . m. w J h a `- 0 Qcr) r+ coQ 1- a l0 � e W F ° 0 o o 0 o o 0 LULI co µµ�� - =y 2 h $ P,CI 7 ci ! O O N E 8 8 8 co a a vi i ui Q a W W h N 0 a U o A 0 A A U0 N C) N = O LU W rii Y o 0 II D 8 o ° o ^ u'F4 9 W o d 0 .0`- W vs ,-0 0 Z I--- N Cl XC? 0 Ob Ch b S 4 co J < v a v v a v v I- Q w N M V- U) CD h N C LL W • ADDENDUM -PAGE 1 OF 3 APPRAISER: Robert K. Kurlansky,cGA,cRA Certified General Appraiser-State of Hawaii License#: CGA-102-Expires 12/31/11 PURPOSE,TYPE OF APPRAISAL,IDENTITY OF CLIENT,INTENDED USE AND USER(S): The sole purpose of this summary appraisal report is to provide an opinion of the,herein identified; subject property's market value, under a fee simple context, as of September 28, 2012, for acquisition/negotiation from the County of Hawaii. The client and primary intended user is identified as Spencer D.Jackson. Other(secondary)intended users include agents and/or representatives of the County of Hawaii. APPRAISER'S DISCLOSURE: I disclose that I have not performed an appraisal or any services involving the subject property, over the three(3)years prior to the September 13,2012,date of acceptance for this assignment. APPRAISER'S ADDITIONAL CERTIFICATION IN ACCORDANCE WITH USPAP, STANDARDS RULE 2-3; I certify that,to the best of my knowledge and belief: • The statements of fact contained in this report are true and correct. • 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. • 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. • I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. • 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. • This report, as well as my analyses, opinions, and conclusions were developed and prepared in conformity with the Uniform Standards of Professional Appraisal Practice. • I have made a personal Inspection of the property that is the subject of this report. SUBJECT'S SALES HISTORY: Public records indicate that the subject has not been sold over the past 3 years. SCOPE OF WORK STATEMENT: The Scope of Work is the type and extent of research and analyses performed in an appraisal assignment that is required to produce credible assignment results, given the nature of the appraisal problem, the specific requirements of the intended user(s)and the intended use of the appraisal report. Reliance upon this report, regardless of how acquired, by any party or for any use,other than those specified in this report by the Appraiser, is prohibited.The Opinion of Value that is the conclusion of this report is credible only within the context of the Scope of Work, Effective Date, the Date of Report, the Intended User(s), the Intended Use, the stated Assumptions and Limiting Conditions, any Hypothetical Conditions and/or Extraordinary Assumptions,and the Type of Value,as defined herein.The appraiser,appraisal firm,and related parties assume no obligation, liability, or accountability, and will not be responsible for any unauthorized use of this report or its conclusions. • ADDENDUM- PAGE 2 OF 3 SPECIAL CONDITIONS/ASSUMPTIONS: 1. The methodology, selection of data, analyses and conclusions contained In this appraisal report remain the intellectual property of the undersigned appraiser and are pot transferable. This appraisal,or any portion thereof,may Late copied,disclosed,transferred(electronically or otherwise), or used in conjunction with the development of any products, services,or databases (electronic or otherwise), without my written consent. Further, the undersigned appraiser assumes no obligations, liability or accountability to any third party. If said appraisal report is placed in the hands of anyone but the client,said client shall make such party aware of all of the assumptions and limiting conditions of this assignment. 2. It Is assumed that the subject property, a currently unused water chlorinator site, is unaffected by any toxic substances, hazardous wastes or materials, as well as any soil contamination. 3. The subject site contains a partially collapsed and deteriorating metal drainage culvert, running westerly to easterly that bisects its northerly portion(see attached photographs). It Is assumed that said collapsed/deteriorating culvert has been either been replaced or removed by the County of Hawaii. If said culvert is removed and backfilled, it is assumed to no subsequent flooding to the subject site or surrounding properties will result from Its removal. 4, It Is assumed that the site's enclosed caged metal stairway (see photographs) has already been removed,as of the September 28,2012 date of valuation. 5. It is assumed that the subject site does not contain anything of historical, cultural or archaeological significance,which Includes burials. 6. It is appropriate to note that Hawaii County Real Property Tax Office records indicate that the subject site comprises a land area of 14,723 SF; while the State of Hawaii Tax Maps, a copy of the site's deed and a consolidation survey map by John D.Weeks, Inc,, dated September 12, 2010, all indicate an area of 14,736 SF. For purposes of this appraisal the subject's 14,736 SF land area was used. If the 14,736 SF area proves incorrect, the 1.3 SF difference in land area is considered to have minimal impact on the resulting value. 7. This appraisal report was prepared in compliance with the Home Valuation Code of Conduct(HVCC)and,if applicable, Fannie Mae(FNMA)guidelines. 8. Upon the advice of counsel, the appraiser limits his liability for this appraisal report to a period of 180 days past the date that the appraisal was signed. ADDITIONAL SITE COMMENTS: Again, the subject property exists as a remnant parcel, formerly used as a water chlorinator site; referred to as the Kukuihaele Water System Chlorinator Site Owing to its natural gentle to steep slope/cliff topography and steep access, it is questionable if the property's 14,736 SF land area could be used as a rural residential home site. Thus, the most likely potential interest in acquiring the site would be from the adjoining/surrounding property owner(TMK: 4-8- 07-32), such as the identified client and primary intended user of this appraisal report. Said assemblage would allow for consolidation and resubdivision of the two properties, resulting In greater utility. COMMENTS ON SALES(MARKET)DATA: Preliminary research was initially conducted to uncover recent and similar remnant site sales in the immediate Kukulhaere sector and other sectors of the Hamakua district. The scope of work was further expanded to include sales of rural resident/al use house lots for use In measuring and abstracting anticipated time adjustments. Other facets of the scope of work included inspecting the subject and its environs,as well as the market data uncovered,organizing and verifying the data gathered. Sources included Public Record Data (PRD), Multiple Listing Service (MLS), local real estate sales agents and professionals. The appraiser's files were also researched for data contained in a similar character appraisal assignment. In all, seven vacant land sales were selected for use In forming an opinion of value for the subject property. Four (Sales 1 — 4) are remnant character property sales that occurred between May 2005 through February 2011, In addition,two finished house lots(rural residential use) lots (Sales 5 & 6) were also cited and analyzed, as well as the recent sale of the adjoining/surrounding property: TMK: 48-07-32 (Sale 7). Eight additional remnant sales were also considered and studied, occurring August 199/ through April 2005. Of those, four are situated in the subject Hamakua district (April 1996 through March 2004), while the remaining four(August 1991 through April 2005)are located in the adjoining South Kohala district. ADDENDUM - PAGE 3 OF 3 COMMENTS ON SALES(MARKET)DATA(continued): Sale 1, situated in the Ahualoa Homesteads sector, reflects an assemblage situation, similar to the subject property. The sale reflects two contiguous road remnants(454 SF&9,892 SF)acquired by the adjoining/surrounding property owners(TMK: 4-6-09-94-6.454 acres)from the County of Hawaii. The-18%time adjustment reflects a continued declining market through late 2010. The subject's superior Kukulhaele location (desirability and marketability) is substantially offset by Sale l's superior(more moderate)topography. Sale 2,also situated in Ahualoa Homesteads,represents a road remnant,obtained by the County of Hawaii,subsequent to an adjacent realignment. Adjustments were also warranted to reflect time(-32%decline since mid-2005),the subject's superior location(+25%)and its inferior topography (-25%). This transaction was further verified by the undersigned with the seller's certified public accountant. Safe 3 is situated some ten-lots westerly of the subject property and reflects a court ordered quiet tide/partition auction that has a substantially larger land area,as compared to the subject. Again, a time adjustment(-25%)was made to reflect the declining market(prices and values), subsequent to the late-2005 market peak. This property has a superior moderate topography (-25%), as compared to the subject, and it enjoys a superior primary/main road paved access(-40%indudes proximity to utilities). Sale 4 reflects the most recent remnant property sale uncovered, having been conveyed on February 3, 2011. Public records indicate a consideration (safes price)of$1,001 on February 2, 2011, but Multiple Listing Service recited a $5,000 cash sales price on February 3, 2011. Efforts to verify the sale with the listor/buyer proved futile, as telephone voicemails were not returned. Further, the property could not be inspected, as roadway access was blocked by a locked gate. This property is situated in the Paauflo Mill area and the undersigned has passed by this site at previous times; thus, the area's topography is from memory. Again, the property is deemed equal to the subject in relative location and lot shape, but it Is also superior on the basis of relative topography (-25%). The subject's superior access is represented by the +25% adjustment. Sale 5, a finished house lot(readily buildable),is situated some 4 miles E of the subject property and deemed slightly inferior in relative location (+10% for desirability and marketability). The site is superior in all remaining categories of comparison. This transaction reflects an all cash conveyance with a recited 942-day market time. This listing started on July 17, 2008 at a $139,000 asking price with subsequent price reduction to$99,000 on August 15, 2011. A prior expired listing of the site by the same listor was uncovered over the period May 11, 2006 through June 30, 2008 @ $179,000. The previous information illustrates the soft market subsequent to its late-2005 peak. Sale 6 also reflects the recent conveyance of a finished house lot. This site is located in the Kaao Homesteads sector of Honokaa Town, some 8 miles E of the subject and deemed inferior in relative location (+25%). The site is superior to the subject in relative shape(-25%), topography(-25%)and access(-40%). This transaction also reflects an all cash conveyance with a recited 778-day market time. This listing started on March 3,2010 at a $179,000 asking price with three subsequent price reductions to $99,000 on July 15, 2011. Again, the previous information illustrates the softening market,subsequent to its late-2005 peak. Sale 7 represents the recent acquisition of the property adjoining/surrounding the subject, by the client and primary intended user of this appraisal report. Owing to its substantially larger land area,as compared to the subject,Sale 7 could also be considered a rural house site, like Sales 5&6(different market segment),though it is deemed equal to the subject in all categories of comparison (no physical adjustments made). This sale reflects a seller- financed agreement of sale with an approximate 20%cash down payment. In conclusion, only Sales 1 through 4 were weighted in determining the subject's final value opinion, as they reflect remnant parcel character conveyances (similar market segment to the subject). Greatest weight was placed on Sales 1 &2(45%each)with minimal weight given to Sales 3 (5%) & 4 (5%). Again, like the subject, Sale 1 reflects an assemblage type of situation; whereby, the adjoining/surrounding land owner acquired the two mad remnant lots property from the County of Hawaii. Sale 2 represents a road remnant acquisition by the County of Hawaii, after roadway realignment. Of the four weighted-sales, Sale 3 Is most proximate to the subject property, being some 10 lots westerly of the subject. Yet, Sale 4 reflects the most current date of sale (02/02/11). Bureau of Conveyance (recorded) documents were also reviewed(if available)to further verify each recited sale. The undersigned is cognizant that all four weighted sales deviate from optimal guidelines in one way or another, which Is common in the valuation of properties in a market segment where sales are scarce. Simply stated, more current and/or comparable sales were nonexistent and other transactions considered were older and/or in the adjoining South Kohala district. PHOTOGRAPHS OF Sl1BJECi PROP PROPERTY 4 TIAL FRONT VIEW OF SUBJECT (LEFT AN BOTTOM)OF ttOAfl �� a �'.m dq ti.a� i� � i � . 1 ff ;„ < X45 '*.._ x� a kSt�a,7.. .1` '�aia'it t: 1 .. ca 3 as °` s INTERIOR VIEW OF Sk1BTECT AT UPPER SECTOR OF SITE , Ate,N t � a it. a8 i• A c - INTERIOR VIEW OF SUBJECT AT APPROXIMATE MIDOLE 4 . �a „. t o ,,, � INTERIOR VIEW COF SITE AT LOWER SECTOR ARROWS SHOW COUAPSIN6 CULVERT <' �� F - VIEW FROM A PORTION OF 5t1 TEGT SITE p 4t CLOSE-DP VIEW t EXISTING C# IATOR STRUCTURE (RED SIGN READS "DAN&ER CHLORINE GAS KEEP AWAV"} * WATER LIME 4 CAGED STAIRWAY -•NO TRESPASSING" SIGN POSTED STREET VIEW ALONG LOIHI ROAD, FACING SUBJECT(NOT VISIBLE) - UPPER PORTION OF SALE 7(TMX: 4-8-07-32)ALONG LEFT STREET VIEW ALONG KUKIJIf4AELE ROAD, ARROW SNOWS LOIN! ROAD ACCESS COMPARABLE PHOTO6RAPH5 +: �� . '� -ilk i d p \ �� Y om`'`? as _ � 4 SALE 1 (SURVEY STAKES PARTIALLY VISIBLE) -. r SALE 2 A 411:1 SALE 3 ,;,&,1,.4.4 t �` e wawa k as a, d K +4�^FYd�4` x 'V $�.`-� , � A� Zak O SALE 4 xa ?;, SALE 6 MARKET DATA LOCATION MAP r®Z©e©co® ,e I ��; 1.1. � e I . a illi 'I 2 o it t1'k,,1' ' 1 i ; = x,. . ki It i,,' '�' d `x,.�9,1 ;f� 1 r 4 Y tee". '^xal�$ ' � , ... _t_,i3rtu}� a 444 i / :. a .O t v-001,f lj�t �•rt 3 Y1i' b ;,..76 lij v hi,4X - e (J O1� " T. � i 1:71,--- J T I^ •� r+ (90 L. __ U.....4 \y2 I 1 ...%:4S. 4 r / Y Q r °c'J o J/j 4. N ,:I � ati r� ,,` \ O ., �.o'"3 alt. i'J 1 0 ?-_ --4._ -• . ....._ k =f �.-j C.�'W \_ t. -0.....r. `'( �.. ', .� F '......,` 4'.'= ._: _ �.. a ,° ° ' z / - — Y t` // 4 ‘/ S !..3J 1 1. — a l { K ♦• I Y r 1�h --1. \z j 2� I ; 1 ",0 , . ., .4 \ 4 -' 4 r. fv •4. ,t...I... ..anwf•r4....,, .,,, . rer A. ..CI,wary [ w:t..a l Inter-Island Appraisal Co. SUBJECT SITE MAP ��_ r 01 o1 g • i ry 4 i� r,=: L-'� ��:� 1 lid i t. a( s ?1„, n r' Y t 1.:-• 33:3' le.: .,..q1 1— --\---N, ...,.. . . \ -e,2.#1 tea. \. ..\ ----- .."'4" -z- i,/+ °' m.- a Y\ .\\:),/, .,Ei / ,.. 0 / •4 • / `. • / °I ar. 0 \y r r, i f d1 a� 4 r * �J° �pru I v T • Aliel- { 4 i i Art IsJ • t L .. fi x. ' '.-7"> , - /\VIS ,'''♦� i y 'Q\ f a. ?F a, b r J t`L q T 4 14 • k. A �y>v v . J = k Q '.."''''''''...N.'•:\\\\ / i ti OF!' b:i•.ti°, !A s.f. .1 4 Inter-Island Appraisal Co. FLOOD MAP li. "EI § 2 ir. 2 0 . .0 aa ..F3 . 'F.: 0 2 S E '41 2 "> : 5 g e.s. -- E o 4 2 — E LI 1 § E • -ci=g21 'I t Lu i f'24 i- tl; 'i -,,...1 , 0. . ■C4 O., st e Cl.II)I 6 4. 0 tlii I „, _ g 1..,-,-; co „‘; 0 tii --0- —0..z..11.0 . 0 .i. t t , 4 „,,t :4 0 ''' :i'i ... „----- -. , „AL+' , 1 • 17/74,36”, at ''"'-'..,.„i, c,, IF,,,, g 1M & \Yt.?" " .,' ' .,,'','.' 1 04,0\\ i>0 4- • /, ) ' . 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L.) to ---, s,, --t-"..•:./ .1,—,..- ^0 C D • IP., \,,,k $,I,A,„', '',-,-..,- -,„„.„,,,,.... \'.,‘ o E + tN ,.... ° C) Inter- sla Appraisal Co.I nd Appraisa DEFINITION OF MARKET VALUE: The most probable price which a properly should bring in a competitive and open market under all cOrtitions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the pricers not affected by undue stimulus. Unpick in this definition rs the consummation of a sale as of a specgled dale and the passing of title from seller to buyer under conditions whereby: (1)buyer and seller are typicaty motivated;(2)both parties are well informed or well advised,and each acting In what he considers his awn best interest(3)a reasonable time is allowed for erasure 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 juice represents the normal consideration far the property sold unaffected by special or creative financing or sales concessions' granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative finking or sales concessions. No adjustments are necessary for those costs which are normaly paid by sellers as a result of ration or law In a market area; these costs are readly identifiable since the seller pays these costs In virtually at sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved is the property or transaction. My adjustment should not be calculated on a mechanical dolar for dolar cost of the financing or concession but the dolar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: • 1. The appraiser will not be responsible for matters of a legal nature that shed either the property being appraised or the life to t The appraiser assumes that the tale Is good and marketable and,Therefore, win not render any opinions about the tile. The property is appraised on the basis of I being under responsible ownership. 2. The appraiser teas provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is Included only to assist the reader of the report in visualubg the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood naps that are provided by the Federal Emergency Management Agency(or other data sources) and has noted in the appraisal report whether the subject stte is located in an identified Special Flood Hazard Area. Because the appraiser is rot a surveyor, he or she makes no guarantees,express or implied,regarding fits determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the properly in question.unless specific arrangements to do no have been made beforehand. 5. The appraiser has estimated the value at the land in the cost approach at its highest and best use and the improvements at their contributory value.These separate valuations of the land and improvements must not be used hi conjunction with any other appraisal and are invalid 1 they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence bf hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise slated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent candlmns of the property or adverse environmental conditions (including the presence of hazardous wastes,toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the properly. The appraiser will not be responsible for any such conditions that do exist or fa any engineering cc testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume resporsiblity for the accuracy at such Items that were furnished by other parties. 8. The appraiser wit not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that Is suubject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements wit be performed in a worlonanike manner. 10. The appraiser must provide his or her prior written consent before the lender/dent specified In the appraisal report can distribute the appraisal report [including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated)to anyone other than the borrower,the mortgagee or its successors and assigns;die mortgage Insurer, consultants; prelessiional appraisal organizations; any stale or federally approved financial institution: or any department agency, or instrumentality of the United States or any state or the District of Columbia;except that the lender/clerlt may distribute the property description section 01 the report only to data calecitmn or reporting servIce(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval most also be obtained before the appraisal can be conveyed by anyone to the pubic through adveNeing, public relations, news, sales, or other media. Freddie Mac Form 439 6.93 Page 1 of 2 Fannie Mae Form 10049 6-93 Inter-Island Appraisal Co.(808)885-7742 Form ACR—^WnTOTAL'appraisal software by a la mode,inc.—1-800-ALAMDCE APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that 1. I have researched the subject market area and have selected a minimum of three recent sales of properties mast similar and prmrnnate to the subject property for consideration in the sales comparison analysis and have made a dalar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property Is superior to,or mare favorable than,the subject property,I have made a negative adjustment to reduce the adjusted sales price of the comparable and,if a significant kern in a comparable property is inferior to,or less favorable than the subject property,I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value lo the appraisal report. I have not knowingly withheld any sigrfcant information from the appraisal report and I believe, to the best of my knowledge, that all statements and infammtian in the appraisal report are hue and ccrrecL 3. I stated in the appraisal report only my own personal,unbiased.and professional analysis,opinions,and conclusions,which are subject only to the corMingent and imiting cordgons speciled halts form, • 4. I have no present or prospective Interest in the property that is the subject to this report,and I have no present or prospective personal interest or bias with respect to the participants In the transaction.I did not base,either pariaiy or completely,my analysis and/or the estimate of market value in the appraisal report on the race,color.religion,sex,handicap,remittal status,or national origin of either the prospective owners or occupants of the subject properly or of the present owners or occupants of the properties in the vicintiy of the subject property. 5. I have no present or contemplated future interest in the subject property,and neither my current or future employment rear my compensation tar performing this appraisal is cnntngent an the appraised value of the property • 6. I was not required to report a predetermined value or drecibn in value that favors the cause of the dent or any related party,Me amount of Me value estimate, the attainment of a specific result,or the occurrence of a subsequent event in order to receive my compensation and/or employment for perbrening the appraisal.I did not base the appraisal report on a requested minimum valuation a specific valuation,or the need to approve a specific mortgage ban. 7. I performed this appraisal in conformity with the Uniform Standards of Prolessiaral Appraisal Pracice that were adopted and promuigated by the Appraisal Standards Board of The Appraisal Foundation and that were In place as of the effective date of this appraisal,with the exception of tie departure provision of those Standards,which does not apply.I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition In the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the recor:cilation section. 8. I have personally inspected the interior and exterior areas of the subject properly and the exterior of at properties toted as comparables in tie appraisal report. I further certify that I have rooted any apparent or known adverse conditions in the subject improvements,on the subject site,or on any site wChin the immedate vicinity of the subject property of which I are aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse condtions on the marketability of the subject property. 9. I personally prepared at conclusions and opinions about the reef estate that were set forth in the appraisal report. If I relied ore significant professional assistance from any irrdvidual or individuals in the perfomtance of the appraisal or the preparation of the appraisal report,f have named such incividual{s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I cerkty that any nuividual so named is qualified to perform the tasks.I have rot authorized anyone to make a change to any item in the report;therefore,I an unauthorized change is made to the appraisal report I wit take no responsiblity for d, 10. The undersigned Appraiser discloses that ter has out performed an appraisal or any services waiving the subject property,identified below,over the three(3)years prior to tie September 13,2012,date of acceptance for this assignment SUPERVISORY APPRAISER'S CERTIFICATION: 11 a supervisory appraiser signed the appraisal report.he or she certifies and agrees that I dimly supervise the appraiser who prepared The appraisal report have reviewed the appraisal report,agree with the statements and conclusions of the appraiser, agree to be bowed by the appraiser's certifications numbered 4 through 7 above,and am taking full responsbllly for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: Loihi Road(per Tax Map)also referred to as Mud Lane,KukuihaelejHawall 96727 APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: `- ' 7 ,paweore: Name: Robert K.Kurlansky,CGA,CRA Date Signed: October 12 2012 tied: State Certification#: CGA-102 ,:... r r r 1rollcatan #: or Slate License#: „J COA-102• , . .License#: State: Hawaii _ : Expiation Data at Certification or License: 12 31 13 . .ton Date of Certification or License: Did [ ; aid Not Inspect Property Freddie Mac Form 439 6-93 Pape 2 of 2 Fannie Mae Form 1004B 6-93 Farm ACR—101inTOTAL'appraisal software by a fa mode,tic.—1-800-ALAMODE