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HomeMy WebLinkAboutCOM 0585.001 1996-1998 VMtV ar p tP ~l.~l .,4. Stephen K. Yamashiro 1tu~ Harry A. Takahashi Mayor Director S. K. Schutte r..___ ~ _ Depaty County of Hawaii J ~ ' ~ i t, .l DEPARTMENT OF FINANC$-. M?Yr 25 Aupuni Strcet, Room 118 • Hilo, Hawaii Q'd~~2~ (808) 961-8234 (808)961-8248 December 3, 1997 The Honorable Aaron Chung, Committee Chairperson and Committee Members Committee On Finance Hawaii County Council Hilo, Hawaii Re: Resolution 187, Relating to Sale of Road Remnant Your Committee has deferred action on Resolution 187 pending further information. Attached is a letter from Glenn S. Hara, Attorney at Law, indicating that he represents Inventure Development, Corp. and that his client requests that it be allowed to acquire the road remnant which passes through their parcel. Contact should be done through Mr. Hara. Section 2-118 of the Hawaii County Code provides for the disposition of remnant parcels and it also provides that the independent appraisal, survey work and preparation of environmental assessment can be at the buyer's expense. Mr. Hara's client has taken the initiative to have the independent appraisal done and the market value of the 12,458 sq. ft. is $5,600. (See Attached.) The Real Property Tax Office has assessed valuations of $14,500/acre($.33/Sq. Ft.) for TMK 3-2- 3:16(4.781 acres), $16,200/acre($.37/Sq.Ft.) for TMK 3-2-3-:17(4.460 acres.) and 51;000 for 9,100 sq. ft.($5.60/Sq. Ft.) for TMK 3-2-3:38. It is noted that TMK 3-2-3:38 is actually 16,901 sq. ft. in size. However, a portion of it is not usable because of a gulch; as such, only 9,100 sq. ft. is used for valuation. Mr. Hara has indicated that he would like to be in attendance when this matter is brought up in Committee again. Please have your staff inform Mr. Hara when this matter is rescheduled. Should there be any further question, please feel free to call. Sincerely, ~ ~ ~ i C~~ Harry A. Takahashi Finance Director r Cow. )liw 7 cc: Gerald Takase, Deputy Corporation Counsel Fllo Ito._____ ~C>G Stanley Iwamoto fie P. ?o: [zEt. Date ~ 0 4 1997 ROEHRI ~ ROEHRIG, WILSON ~ HARA ATTORNEYS AT LAW KAMUELA STANLEY H. ROEHRIC 101 AUPUNI STREET, SUITE 124 CHRISTOPHER 1. ROEH RIG Auwsy law. A 6w Corponum Attorney a[ Law, A Law HILO, HAWAII 96720 CorFwration ANDREW P. WILSON Anarcy a law. A aw Corpon~w, (808) 969-1441 P.O. Box 998 GLENN S. HARA FACSIMILE• 808) 935-3945 Kamuele, Hawaii 96743 Auonrr.l law ( (808) 885-6614 Facsimile: (808) 885-5732 August 14, 1996 OF COUNSEL: SHERMAN S. HEE Mr. Gayland Kuba ..°°°cr.~law,Alawc°"°„~,m Public Works Department Engineering Division County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 Subject: Acquisition of Road Remnant abutting TMK (3)-3-2-3-parcels 16, 17, 38 Dear Mr. Kuba: I represent Inventure Development, Corp., the owner of the subject TMK parcels in Ninole, North Hilo, County and State of Hawaii. I have enclosed a portion of the relevant real property tax map showing these parcels in yellow. I have also marked a road remnant abutting these properties in Pink. Inventure is requesting that it be allowed to acquire the road remnant pursuant to Article 19, Chapter 2, of the Hawaii County Code. Given the location of the road remnant, it is highly unlikely that anyone other than Inventure will be interested in purchasing it. If the parcel went to public auction, it would be highly likely that the county would not realize as much as a negotiated sale. This should serve as sufficient reason for the Counsel to find that the public interest demands a sale by negotiation as required by section 2- 114 of the Hawaii County Code. Before proceeding with the procedures for disposing of this road remnant, would you please provide me information on the following matters: 1. Whether the road remnant is in fact County of Hawaii property subject to disposition under Article 19, Chapter 2 of the Hawaii County Code. 2. What would be the approximate cost of a disinterested appraiser required under section 2-117 of the Hawaii County Code based on the County's recent past experiences. GSH August 19, 1996 31(95) H:\CLIENTS\HURWZTZM\ROAD\LET2KUBA.1 1. 1 Mr. Gayland Kuba August 14, 1996 Page 2 3. What has been the approximate cost per square foot for similar acquisitions based on the County's recent past experiences. 4. Would you provide a description of the requirements and steps for completing the acquisition of the road remnant. Thank you for your cooperation and assistance. Please feel free to call me if you have any questions. e y tru you s, Encl: Portion of real estate t ap plat (3)-3-2-3 cc: Inventure Development Corp. GSH August 19, 1996 31(95) H:\CLIENTS\HURWIT ZM\ROAD\LET2KUBA.1 LAWRENCE APPRAISAL GROUP IIAWAII, INC. Pilo No. $2902KH0 APPRAISAL OF COMPLETE APPRAISAL -SUMMARY REPORT LOCATED AT: Government Road Remnant Ninole, HI 96773 FOR: Roehrig, Roehrig, Wilson & Hara Attorneys at Law IOl Aupuni Street, Suite 124 Hilo, HI 96720 AS OF: September 14, 1997 BY: Suzanne H. Han CRA X607 75-5791 LOPL'KA PLACC, KAILUA-KONA, Ht 96738, (80R) 329-390(1 FAX (808) 329-3555 r LAND APPRAISAL REPORT File No. S2 021010 Prope~t Address Government Road_Remnant census Trect 0221.00 LENDER DISCRETIONARY USE City Nlnole .Coon Hawaii State HI L Code 6 Sale Pdee E Legs) Description See Addendum Date owner/occupant Inventure Development Ma Reference SeeAdden Modgage Amount S _ „ Sele Price 3 n/a .Date of Sele n/a Properly f8ghls Apprelaed Mortgage Type _ - _ _ Lean ehe~esLeonceaslons to be paid by seller E n/a _ ® Fee Simple Dlacount Pointe and Other Concessions R.E. TexeaE unknown .Tax Year HOA S/Mo.0.00 ? Leeaehold Paid by Seller E Lende~Cllenl RO@hriQ. RO@hrlaiWllson 6_Hara ? Condominium (HUD/VA) _ Lawrence A raise Crou waii Inc. PUD source LOCATION Urban Suburban Rursl NEIGHBORHOOD ANALYSIS rood Rvg rain poor BUILT UP ? Over 75% ? 25-75% ®Under 25% Employment Stability ? ® ? ? GROWTH RATE ? Rapid ? Stable ®Slow Convenience to Employment ? ? PROPERTY VALUES ? Increasing ? Sleble ®Declining Corrvenlence to Shopping ? ? DEMAND/SUPPLY ? Shortage ? In Balance ®Over Supply Convenience to Schools ? ® ? ? MARKETING TIME Under 3 Mos. 3-6 Mos. Over 6 Mos. Adequacy of Public Transportation ? ® ? ? PRESENT LAND USE % LAND USE CHANGE PREDOMINANT SINGLE FAMILY HOUSING Recreation Fecilllies ? ® ? ? m Single Family 1 _ Not Likely ® OCCUPANCY PRICE AGE Adequacy of Utilities ? ? 2-/ Family Likely ? Owner ® E(DDD) (yra) Property Compatibility ? ? Multl-lamlly In process ? Tenant ? 2 Law 10 Protection Irom Detrimental Cond. ? ® ? ? Commercial To: Residential Vacant (0-5%) ® 12 High 0+ Police BFire Protection ? ® ? ? Indualrisl rOm VBCant lot Vecenl (over 5%) ? Predominant General Appearance of Properties ? ? ? Vacant 8 - 2 A a Ito arkat Hole: Rate or the racial composition of the neighborhood ere not considered reliable apprelael faetora. COMMENTS: Sub 1CCt perCel is lOCated_o_n_ the makai side of Hawaii Belt Roed between Nahaku and Kaieakea Points with Ninole the nearest _ town. The vast ma~o_rit~e of land in this area was owned and/or farmed_b~Hamakua_SI>7~a_r_COmpany until_cane fields were shutdown due_to their.bankruptcy., The_aree!s_general_economy is_slo_w with land rives still declinin Market a cal of a road remnant is e:tremel limited. DimenslonsIrregular _ Topogrephy Downslo in~from_hwy snearea 12228 SF ~.286_acres per plat)comerlot No size Smaller than,typic_al tolling Classificetlon Sae Addendlllll_______ Zoning Compliance See Addendum Shape IPregUlBr__ _ HIGHEST 8 BEST USE: Present Use See Addendum Other Use Drainage NO apparent probl_ ems UTILITIES Publlt Other SITE IMPROVEMENTS Type Public Private Vlew NOmi~ai_ Oceap _ _ _ - Elecldclty ®none street Crass ? ® Landscaping Natural tropical veg cos ?none-- curb/Goner none_ ? ? Driveway None_________--_____ wafer ? catchment sidewalk none ? ? ApparentEesementa Title not reviewed-__ Sanitary Sewer ?CBSS 001 Street Lights flOne ? FEMA Flood Hazard Yes' ____Na _n_X^_____ _ Storm Sewer none Alle none FEMA'Ma one 1 1660042 C COMMENTS (Apparent adverse easements, encroachments, sDaclal assessments, slide areas, etc.): Sub eCt parcel. 1S_a_30! fOOt_Wlde_ partially~aved roadway accessed from Memelahoa Highway with a locked sate approxim_etQly_50 feet south of the remnant's northerl bounder SEE ADDENDUM The undeuigned hoe reviled three recent setae al properties moat similiar and prasimala to aubjecl and has considered Iheaa in the market analysis. the description includes a dollar adjuslmenl. collecting market reaction to Ihose items of signilicanl variation between the subject and comparable propernm. II a aipnilicant item in the comparable properly is superior lo. ar more tavorable than. the aubjecl properly, a minus adjuslmenl is made. thus reducing the indicated value of aubjecl; n a signilicanl item in the comparable is inferior lo, or less favorable Man. the aubjecl properly, a plus adjuslmenl b made,lhus Inereefinp iha Inditalad value of the subjetl _ ITEM SUBJECT COMPARABLE N0.1 COMPARABLE N0.2 COMPARABLE N0.3 _ overnment R ld Mamalahoa Highway Road Remnant Road Remnant Address.-- inole 16 TMK•._3~_5? TMKs _3?~-1_~- _ Proxtmiytosubiecl 1 Miles South 12 M11es South _ 10 Miles South Sales Price EN/A S 10 000 E 10 000 E 15.000 _ Price/ $F - - 8 __N/A_ 0. 642 8 - - _3102 a 0.4~~8~---- Datasource_ _/Ins~ectn. S//83Q86/ -0 1 MLS ~ 410/ 160801 _ MLS /f7~1/45-0_3-2_345- _ VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION - f ~d~ Iment DESCRIPTI~d-)f aepalmsnt .DESCRIPTION . - f nd'mimenl _ Sales or Financing sh Cash Cash Concessions Date of Sde/Time /14/Q~ /`L/47 j _ 12/13/4~_~=0.031. 3/4/45 - _,___-0.0.65_ Location _ inole ieie Aleamei _ _ Onomea Slle/View 12458 SF/Nmn 1 24 SF/None ~ +0.008 32234 ~ +0.011 4412 ~ +0.012_ - wy Access.- one___________±0.112_ None______ +0.062 None___________;_ ±O.O4q___ __.VQ• Utility SS~er.Utilit+~~__-0.160 Infer.Utility ~ +0.0~ Ayg.- Uti_lit~_~__ - Net_Ad. tota~______,_ ~ - .S 0.040 + - 'E 0.12 ~ - ;E_ _-0.009 Indicated Value otsub ecl 0. 24 0.442 0.42 comments ofsaleacomperieon: The comperables used in this ana]_.ysis are. the most recent road remnant sales in the general Hilo area. Coco rabies 2 and 3 have been adjusted downward for time as land. values have declined since their sellin date. SEE ADDENDUM... CommenlsendCondiSonsolApprelsal: IL has been assumed that the surveyors map and description pr__o__vided by the client is accurate. FInal Reconcmanon The Sales Comparison Approach has been given sole consideration as it is the_most_ a ro riate method for the valuation of individual vacant lots. The Cost_end Income_~proaches - would not normall~_be_used by the typical appraiser working on vacant lots in this area..,.. - I (WE) ESTMATE T!E MAPofET VALUE. AS DEFR®, OF suBJECr PROPERrr As of September 14~_ te9~_ robe S _.-5~ 600 _ I We) ceril that b the best of m ) knowled e e the tads and date used herein ere true and correct: Ihet I we Dersonall and Inspected all comparehle s yelled In t i g d I (we) have noun Plpclosed Interest, p- prospective therein. y Inspected the sub)ecl properly Appraiser(s) SIGNATU Review A relser.SIGNATURE _ _ ®Did ? Did Nal NAME ~ U e H. Hart (if applicable) NAME Robert L8~, SRPA Inspect Property Proprietary Land Form 04/88 rM ram s.~m a, rk m.,„, rn... i „.,rams+~-• ~eon~ rr.-wen CRA pfi07, HI CGA pt94, HI Suzanne H. Hart LAWRENCE APPRAISAL GROUP HAWAII, INC. File No. $29o2i{iio PURPOSE AND FUNCTION OF REPORT: The purpose of this report is to estimate the fee simple market value of subject property as defined herein. This estimate is to be used solely by the client for negotiated a selling pace for subject parcel. SCOPE OF THE APPRAISAL: The following steps were taken to arrive at the final estimate of value: 1. A preliminary search of all available data resources was made to determine market trends and influences, as well as other significant factors pertinent to subject property and its estimate of market value. 2. A physical inspection of the site was performed as best of possible given the terrain and physical conditions on the site. Although due diligence was exercised during the inspection, the appraiser is not an expert in such matters as pest control, engineering, environmental or safety hazards, soil technology, or surveying. No warranty is implied for these items. The client should seek a professional for expert advice in these matters to ensure their security. 3. Research and collection of all data (closed or pending sales, listings, and other factual material) that is relevant to subject's estimate of market value was undertaken. The data is considered to be sufficient in quantity and quality to determine an opinion of value as defined herein. All data is either contained in this report or held in the working notes of this file. No data was knowingly omitted or was unobtainable that would have impacted the value of subject property. 4. An analysis of the relevant data was conducted using all of the appropriate recognized approaches to determine value. Each approach was reconciled, and then a final estimate of value was determined. The report was then completed, signed and rendered to the client in a professional and timely manner. APPRAISER'S CERTIFICATIONS: Suzanne Hart is licensed by the State of Hawaii as a certified residential appraiser, is a candidate member of the Appraisal Institute, and has the knowledge and experience necessary to complete this appraisal assignment. Robert Lawrence, SRPA, is licensed by the State of Hawaii as a certified general appraiser, is a member of the Appraisal Institute, and has the knowledge and experience necessary to complete a desk review of the appraisal report. We both certify that, to the best of our knowledge and belief, the reported analyses, opinions and conclusions were developed and this report has been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice. It should be noted that subject property does not meet USPAP minimum criteria as it is an unimproved lot. This appraisal is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. LEGAL DESCRH'TION: Parcel 31-B Government Road Remnant (S.D.R. 3(15), situated at Puuohoa 1st, North Hilo, Island of Hawaii. COMMENT ON ZONING AND HIGHEST AND BEST USE: Subject site appears to have no zoning classification since it is a county-owned road remnant. It has been assumed the parcel will be consolidated with the adjoining parcels, all of which are currently zoned A-20 (minimum 20-acre lot size). When consolidated into the adjoining TMK parcels 332-3-16, 332-3-17 and 332-3-38, the total combined acreage will still be less than the minimum 20-acre lot size. 75-5791 LOPEKA PLACE, KAILUA-KONA, HI 96738, (BOS) 329-3900 PAX (808) 329-3555 LAWRENCE APPRAISAL GROUP HAWAII, INC. Fila No. 52902KH0 COMMENT ON ZONING AND HIGHEST AND BEST USE: (continued) The highest and best use of subject site is to consolidate it with the adjacent parcels. SITE COMMENTS: Subject is an irregularly shaped government road remnant that is accessed from the main highway via a short paved asphalt driveway that belongs to the adjacent properties. Client indicates subject remnant is adjacent to Parcels 332-3-16, 332-3-17, and 332-3-38. The road remnant's square footage was taken from a map prepared on 2/7/97 and signed by Robert K.Y. Lee, a licensed surveyor (see attached). Subject property is located in Zone 8 of the Lava Flood Hazard Map. COMMENTS ON SALES COMPARISONS: Comparable 1 is considered to have superior utility as it was purchased by the adjacent property owner who combined it with a much smaller lot to greatly enhance the utility of the total property. Comparable 2 has inferior utility when compared to subject as a stream crossed the property. Comparable 3 is very similar to subject in terms of utility as the parcel was surrounded by land already owned by the buyer and there was only a marginal increase in the total property appeal and marketability when the purchased parcel was added. After adjusting for the differences in utility, land size and accessability, an adjusted range of $0.427 to $0.524 per square foot is indicated, with a reconciled value of $.045 per square foot well supported by the comparables. Based on the above data and analysis, the estimated market value for subject property is calculated to be $5600 (12458 SF ~ $0.45 SF rounded). 75-5791 LOPEKA PLACE, KAILUA-KONA, HI 96738, (SOS) 329-3900 FAX (808) 329-3555 o ' LAWRENCE APPRAISAL GROUP HAWAII, INC. File No. 52902KH0 PLAT MAP SHOWING SUBJECT AND SURROUNDING PARCELS a NI ;~e _ ! ~ ~ Zvi d • ui- _ _ ~ ~ ~ - . I a v~ 12 f r~ ~ i s t)!N! pW ~ ~ L 'II jj a6s y .Q .I fJ ~ t x~ li. t~ 1~ T. r I f 3, h ~ `v` i II t c ~ ~3 ~ f: n ~ v y ~ n f e'! t ~ ~ v f t~ ~ ~ ~ _Z ~ y ^ l~ ~ ~ ~ I 3 ' ° Q ~~ti ~ ~ r z ~1~ ; li w • ~ 4 L ~ i~~~ ~ e p Ci = , Q ~ ?3t ~ ~ e ~O r ~ { t i~ ~L..~- _ ~ ; ~ o ~ a N ~ ` ~ J n _ ~ a J r ~ / _ e u; ~ v- ~ i ~ ~ 3 N i S ~ _ , ~ , ` • ~ v u tl' t ,1m R a V N , ~ 0 - 9 ~ a h 4i ~ ~ L r ~ i~ y b r : ~ e e • ~ A 73-3791 LOPHKA PLACE, KAll.UA-KONA, HI 96738, (808) 329-3900 PAX (808) 329-3555 Q I LAWRENCE APPRAISAL GROUP HAWA,<i, INC. File No. 52902KH0 PLAT MAP OF SUBJECT SITE to m 7615' f- ~ r R • 15 D0' m Ul 7 1.75 E~ - ~ ~ _ f+l ~ 9 ~ ~ m LOT A Q 0.2'08° ~ y 8.65' I ~ R•I85y,g6,~- ~ .270'72'08" ~ - 30DB' +J Q s : - ~ i ~ ~ ~ 0 , ~ I K I j~ ~l - F I F- ' ~ O ~ ~~8 ~ I ~3~ ~ I I , o I. 0 ~ Lot B lof ~ ~ a ~ 8 I•' n Y 1~ I ~ ~ GRAPHIC SCALE _ I •n 0 50 100 Q I " a ~ T_~~' 3 I ~ !I Inch . 50 faaU Q I / f7 0>° Y mh = I Ip~-~ ~ ~ 78'36'46" - - -R . 185966' . I . ~'1 ,',f`~D t ~ Ill'39'52'~ ~ f 6156' _ 76'4158'; - ~ R.IB59b6' . , NO1E~ ll' 4tNmlb /.d cewdln/lw• ufwmd b •NdpW uv_n Owrolw• Ne vWClw Accw.. PwmiNwd '^I A _L. _6_. o.nol.. vWxl. me... P:wnl.d • ` Bw/d/ry follow. /low wlddlw 1 Of NIno4 EIreM / _ = 70517' A ~ -":!x7'79-r - _ PARCEL 31-8 GOVERNMENt ROAD REMNANt CS.D.R 3 ~ER7 K. V, (F BEING AL80 A PORTION OF a F • ww. w.. ~..~...d by LICENSED o vds. wy dw.cl .uprobien ('ROFESSM]NAL OLD MAMALAHOA NIGHWAT" uNO # SuRYEYOq y Situated at Puuohua IBt, No 5075 e,.~~ dl.~- North Hllo, island of Nawatl, Hawaii yq Q•' Rob«I KY. Lww k'All~ ll5' Llcsued Profa•.bn/I Bvvwyor lax Map Key: (3) 3-2-03 C«lNiul. Nwib«uoTs 75-5791 LOPEKA PLACE, KAILUA-KONA, HI 96738, (808) 329-3900 FAX (808) 329-3555 LAWRENCE APPRAISAL GROUP HAWAII, INC. File No. 52902f W 0 COMPARABLE LOCATION MAP .lrfi~Nrow..f NONON•• ]v0 v4NN1•X~ NOM•xAA Y• u', IL ~•0 IA 1 J~ ~p O XVALO• I I ti ( _ ~ I••UIIO 1 wfw m uD( ~ ~ f • ww xiwal t .r~ > J. ~o w• bv( ouae YAroY~nuean• ) ~ (v1 M(ImN. ~IV X(O• l•UI•xOINO[ LI IIxO(MOF/IY l a A•r I•Nl0 •V WUIVI l(Y IA J , wlLOw. x % ~ . ,NY(! ~e ~ e' Ieuuu lwxr " "NOR .(•N..Y } H O ,•..ee" " ( MV. WIMI.WNr iurowltr RlYwr! ~ e:Gr~~e' xoxDYu d'~µ e( , Nuw•au ~ .~:NI •xoa•oe Yrlula rover wlrroulnxWWN - ~nreexm I( rw rq MILO (OR(lr NIYRY! •le• YIf•WMI(OI C•YI 5ale 3 Sale 2 ((I~~Y•w0V . N•L[ M"Ir x .I M10~ Y aIe 1 roWb +.,,N .DUYn t.n SOUTH HILO w "'w"' (4 MILOUY MY ((([IWI IOINr ' IW Wf1 ~OlNl11•LLYWMi IC 1Y(I v" IYLD _,e IMILO.LMp11r1"~ a[AV!•N• I- fINOl4NONI0 r11 `l\~~tr "rr w( IIryI'•4I I 4:[ - (Ux.(O.rpw[]IR[fewv( UrylN w•Y.!•rW[(rw(]lwY[ v0\a(IJ wMl ° 4.1Y •Y , N[•'•Y •MLx I `IL, " O f1(O(Ilpxr MO! 'r Wwb ~ l,, ~ ` ' YOLKt~ ON XVRr']( a Y' •x1bbO1V•q Y ~+~1` l ' ~ row ~ •d . • i- fYRw ~xu o(.IrJ~' vi ~~IP,j d Rh •NI-" ~ •CMt `I _yJ~ .Y" ~,}r NONOIwV(INpIMO . / ~t / N•NI wILf III ` I < o1u•ao / nroron \ UYlR OI•• N•rulva<bm~\> ' bYW roam YYRn, ~ uxoouru' f•rox0 fVlIY _r.w. ~ ;~"•^DWLI•n~ ~~F a(exwooD r•NO• u]wrLD~H uroxD \ L xwaao RD ~ - " ~ ~ I~ Iowr IIIW / N'LN4x111Y muoe ..e' ~T. ~ - ~ ,~r' I nobs oorl~~ mLblgvD "l 4 <<< IVNA rowan Rutwrl : iinru a•ve ~ ~~N'N' ufw Nw,L Y ~ PUNA \ ' RN•w• mwxo \ j crown ` i C.LDIw. JIINIIUO l 1 \ ~ ~ V([NI NI M•NAII VOICAb[f \ 1 NINyfY ,1 IwN1 Q ~ NLINV ( ~w•I,Y•N• ~ IO fVI.I•V IwNr 1R•I•I•LA w•ncN ~ `J NINII41 .NpiNO (I O/ N Y.vL•1000 ISI[OI fI b. MINT 75-5791 LOPEKA PLACE, KAILUA-KONA, HI 96738, (SOS) 329-3900 FAX (BOB) 329-3555 LAWRENCE APPRAISAL GROUP HAWAII, INC. File No. 52902KH0 SURVEYOR'S DESCRIPTION OF PARCEL 31-B P71AC8[. 31-B OOTi>4t1~Pf R0J1D R>~111T {BDA 3 (15)) BE1'SO 11L80 7? PORTIOF Or OLD I~NDILi1B071 HIOBM]?Y 7?t Puuohua i~t, Nozth Hilo, iolaad of Bavaii, Havali Beginning at the Northwest corner of this parcel of land, the coozdinatea of said point of beginning zeferred to Government Survey Triangulation Station "Haiku", being 3,589.28 fee f. North and 231.75 feet Eaet, and running by azimuths measured clockwise from true South: 1. 220'22'08" 30.08 feet across the remainder of Goveznment Road, to the Southweatly aide of Lot A; 2. 306°10' 281.36 feet along Lota A and B, being portions of Grant 1354 to Wahamana; 3. 326°50' 165.17 feet along Lot B, being a portion of Grant 1354 to Wahamana, to the Northeasterly side of Hawaii Belt Road (SDR 3(15))s 4. Thence along the Northeasterly aide of Hawaii Belt Road (SDR 3(15)), on a curve to the right with a radius of 1,859.86 feet, the chord azimuth and distance being: 117°39'52" 61.56 feet) 5. 146°50' 105.95 feet along Parcel 30-B (SDR 3(15)), being ' also a portion of Grant 1354 to WahamanaJ 6. 126'10' 278.09 feet along the same, to the point of beginning, and containing an area of 0.286 Acres, more or leas. P0~~~7KV~FF LICENSED PROFESSK)NAL LAND SURVEYOR No. 5075 R.M. TOWILL CORPORATION P, Description Prepared by: ICU o~- 73.5574 Maiau Street Robert .Y. Lee Kailua-Kona, HI 96740 Licensed Professional Surveyor February 7, 1997 Certificate Number 5075 R.M. TOWILL CORPORATION CIYIL ERGIREERH • SURVEYORS 73-5574 MAIAU STREET, /118 • KA1lUA-KOIU, NAYAIt %740 75-5791 LOPBKA PLACE, KAILUA-KONA, HI 96738, (SOS) 329-3900 FAX (SOB) 329-3555 DEFINITION OF MARKET VALUE. The most probable price which a property show .ing in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, 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 he considers his own 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 temrs of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustmenis to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all 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 in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. 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 affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has 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 visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of 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 in conjunction with any other appraisal and are invalid ii they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of 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 pertorming the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions 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 property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or 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 responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will 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 subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a work+nanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client 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; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any slate or the District of Columbia; except that the lender/client may distribute the properly description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6-93 Page 1 of 2 Fannie Mae Form 10048 6-93 ~ • APPRAISERS CERTIFICATION: a Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of propertiesfiost similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjusbment when appropriate to reflect the market reaction to those items of significant variation. It a significant item in a comparable property is superior to , or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item 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 in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. . 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, end I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of Me present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of Me client or any related party, the amount of the 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 performing 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 loan. 7. I pertormed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated 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 the 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 reconciliation section. 8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am 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 conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in Me appraisal report. If I relied on significant'professional assistance from any individual or individuals in Me performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to pertorm the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no re~onsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly 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 bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: Government Road Remnant. Ninole HI a677z APPRAISER: SUPERVIS~OR~Y~APPRAISER (only M roqulrad) Signature: Signature: riz~_ Name: Suz ne H. Hart Name: Robert Lawrence. SRPA Date Signed: October 8. 1997 Data Signed: October 8. 1997 State Certification CRA #607 State Certification CGA 019q or State License or State License State: HI State: HI Expiration Date of Certification or License: 12-31-97 Expiration Date of Certification or License: 12-31-97 XQ Did ~ Did Not Inspect Properly Freddie Mac form 439 6-93 Pape 2 of 2 Fannie Mae Form 10046 6-93