HomeMy WebLinkAboutPR 15236: CONDEMNATION OF PROPERTY (SABINE PASS) - COMMUNITY CENTERP. R. No. 15236
06/23/09 gt
RESOLIITION NO.
A RESOLIITION AS IT PERTAINS TO THE
CONDEMNATION OF PROPERTY IN SABINS PASS FOR A
COMMIINITY CENTER
WHEREAS, the City Council considers it a public necessity to
condemn a portion of Park Plaza in Sabine Pass for a Community
Center as to better serve the citizens of Sabine Pass.
WHEREAS, the City has obtained an appraisal attached hereto as
Exhibit "A" which delineates the value of the property at $45,000.
NOW THEREFORE, BE IT RESOLVED BY THS CITY COIINCIL OF THE CITY
OF PORT ARTHIIR:
Section 1. That the facts and opinions in the preamble
are true and correct.
Section 2. That the City Attorney is authorized to make a
final offer of $45,000 for the portion of Park Plaza to be used for
a community center and to also take such action, if necessary as to
condemn this property.
Section 3. That Jefferson County will be requested to
contribute what ever monies that they receive for their interests
to the City for the community center and to fully cooperate with
the City.
Section 4. That a copy of the caption of this Resolution
be spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this day of
z.pr15236
A.D., 2009, at a Meeting of the City Council of
the City of Port Arthur, by the following vote: AYES:
Mayor
Councilmembers
NOES:
MAYOR
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM:
D~ i~~~-
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
APPROVED AS TO AVAILABILITY OF FIINDS
AY~~L42~ ~~
DIRECTOR OF FINANCE
z.pr15236
EXHIBIT ~~A"
EXHIBIT KB"
A Summary Appraisal Report of a
tract of land at the corner of
Gulfway and Broadway (Tracts 116 & 128)
Sabine Pass, Texas 77655
FOR
Mr. Mazk Sokolow
City Attorney
City of Port Arthw
P.O. Box 1089
port Arthur, Texas 77641
AS OF
May 14, 2009
BY
BISHOP REAL ESTATE APPRAISERS, INC.
Timmy W. Bishop MAT, SRA
4749 Odom Road, Suite 101
Beaumont, Texas 77706-6908
BISHOP REAL ESTATE APPRAISERS, INC.
June 24, 2009
Mr. Mazk Sokolow
City Attorney
City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77641
RE: A Summary Appraisal Report ofa tract of land at the corner of Gulfway and Broadway
(Tracts 116 & 128) Sabine Pass, Texas 77655.
Dear Mr. Sokolow,
Pursuant to your request, I have personally inspected and analyzed the above captioned property for
the purpose of estimating its Market Value, excluding minerals. Please refer to the Scope of Work
on Page 6 for an outline of the appraisal process utilised for this analysis.
Based primarily on the facts and analyses contained in this report, it is my opinion tt~eaMazket Value
of the property, assuming no environmental issues aze present, as of May 14, 2009,
FORTY FIVE THOUSAND ($45,000) DOLLARS
This report is subject to the Certification, General Limiting Coeditioasa ade e ep rt containing
Assumptions outlined therein. Presented on the following pag
pertinent descriptive and market data considered in the estimate.
If I can be of any further assistance, please contact me.
Respectfully submitted,
BISHOP REAL ESTATE APPRAISERS, INC.
~W•`a' 0
Jimmy W. Bishop MAI, SRA
State Certified #TX-1320188-G
General Real Estate Appraiser
4749 Odom Road, Suite 101, Beaumont, Texas 77706 * 409/898-8800 * 4091898-8988
AERIAL PHQTOGRAPH
(Taken in late 2005)
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The black lines were added to the photo only to depict the general shape and location of the
land and are not intended to represent exact boundary line locations.
EXECUTIVE SUD~IlVIARY
SUMMARY OF SALIENT FACTS AN'D CONCLUSIONS
APPRAISAL TYPE: Summary Appraisal Report
PROPERTY LOCATION: The property is located at the comer of Gulfway Drive and
Broadway (JCAD Tracts 116 & 128), Sabine Pass, Texas 77655
ESTATE APPRAISED: Fee Simple Estate less any mineral interests
CLIENT: City of Port Arthur
LAND DESCRIPTION: According to Jefferson County Appraisal District records, the land has
an azea of 22,500 SF with 150' along Broadway and 150' along Gulfway Drive (Hwy 87). The
land is near level and at street grade. Both streets are two-lane, two-way asphalt paved. There
are 4-way stop signs at their intersection. According to the attached FEMA Map, the tract is in
Zone - A. It has all public utilities available and is zoned for commercial uses with an LC
classification. There are the remnants of an older masonry building and the concrete foundation
from a second structure along the Broadway frontage. The preceding aerial photo depicts a
couple structures on the northerly part of the tract. However, those structures were apparently
destroyed by Humcane Ike or possibly by Hurricane Rita in September 2005. Either way, the
only remaining improvements include the masonry shell of a building and the slab of a second
structure. The improvements offer no measurable contributory value and tend to serve as
somewhat of a detriment to the re-development of the land.
HIGHEST AND BEST USE: Local commercial uses
RECONCILED MARKET VALUE ESTIMATE :................ $45,000
EFFECTIVE DATE OF APPRAISAL: May 14, 2009
DATE OF REPORT: June 24, 2009
SALES HISTORY: There is apparently some dispute as to the ownership history of the property
with both the City of Pt. Arthur, the George Welch Estate and Billy Williams claiming all or part
ownership to the real estate. It does not appear to be actively offered for sale and I was not
advised of a pending sale. Therefore, no recent sales history was available for review and
analysis.
EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS: I was not
provided a current survey of the real estate and was instructed to rely on information from the
Jefferson C.A.D. records as to the shape and size of the land. The Scope of Work for this
assignment was to combine Tracts 116 & 128 as a single parcel of real estate as the City of Pt.
Arthur contends they have ownership of both.
VALUATION REPORT
-SUMMARY FORMAT-
DATE: June 24, 2009
TO: Mr. Mazk Sokolow
City Attorney
City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77641
FROM: Jimmy W. Bishop MAI, SRA
Bishop Real Estate Appraisers, Inc.
4749 Odom Road, Suite 101
Beaumont, Texas 77706-6908
PROPERTY IDENTIFICATION:
Legal: No metes and bounds description was provided. For proposes of this analysis, I have
identified the property as Tracts 116 & 128, Jno. McGaffey Survey, A-167, Jefferson County, Texas
Local Address: I could not accurately identify the street address.
Census Tract: 48245-0116.00
PROPERTY RIGHTS/LEGAL CONSTRAINTS: The property rights being valued are fee
simple.
Fee Simple Estate, as defined in The Dictionary of Real Estate Appraisal, Fourth Edition, Page
113, is:
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations
imposed by the governmental powers of taxation, eminent domain, police power and escheat. No
mineral interest was included in this analysis.
INTENDED USE AND INTENDED USER: The purpose of this appraisal is to develop an
opinion of the Market Value of the Fee Simple Estate, assuming no environmental issues are
present and without consideration to any mineral interests that may or may not exist.
The report is to be used as a value basis in a dispute over the ownership of all or part of the real
estate. The intended user and the client is Mr. Mark Sokolow, City Attorney, on behalf of the
City of Port Arthur, Texas.
VALUE DEFINITION: The value definition employed in this valuation is "Market Value".
Market Value, as defined in FIRREA, 12 C.F.R., Part 34, is:
The most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller each acting prudently and 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 acting in what they consider their
own best interests;
3. a reasonable time is allowed far exposure in the open market;
4. payment is made in terms of cash in US. dollars or in terms offinancial arrangements
comparable thereto; and
5. the price represents the normal consideration for the property sold unaffected by
special or creative frnancmg or sales concessions granted by anyone associated with
the sale.
EFFECTIVE/DELIVERYbATE:
Date property was visited - 5/14/2009
Effective Date of appraisal - 5/14/2009
Date of Report - 6/24/2009
Date range report was prepared - 5/10/2009 - 6/1/2009 & 6/20/2009 - 6/24/2009
Date report was signed and delivered - 6/24/2009
6
COMPETENCY PROVISION: The USPAP contains a requirement that an appraiser have the
knowledge and experience to complete an assignment competently. Jimmy W. Bishop MAI,
SRA has over 30 years of commercial property appraisal experience. During that period, he has
appraised dozens of similar type properties, primarily in the Southeast Texas market. This
experience, together with knowledge gained through Appraisal Institute courses, complies with
Competency Provision. Qualifications are attached for your review.
SCOPE OF THE ASSIGNMENT: As defined by the Uniform Standazds of Professional
Appraisal Practice, this is a real estate appraisal presented in Summary Format. This appraisal
involves the use of all applicable approaches to value and concludes with an estimate of market
value based on an unconditioned defmition. It has been my intention to prepare this appraisal in
conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the
Appraisal Foundation and the Code of Ethics and Standards of Professional Practice of the
Appraisal Institute. Please refer to the EXTRAORDINARY ASSUMPTIONS &
HYPOTHETICAL CONDITIONS outlined on Page 3 as the part for these analyses and
valuations.
This is the appraisal of a 22,500 SF tract of land with remnant improvements at the comer of
Gulfway Drive and Broadway, Sabine Pass, Texas. This analysis will include use of the Direct
Sales Comparison Approach since this is the most commonly utilized approach in the analysis
and valuation of this type property.
I visited the property and viewed (via driving the area) the characteristics of the immediate and
general market area. My visit to the Subject Property included viewing the property and relying
on aerial photos, plats and maps that were available in my office files and on-line. I also
discussed with the client the parameters for the valuations. My search for mazket data for use in
the applicable approaches utilized the local MLS, local brokers, investors and other area
appraisers. My market search included the entire Southeast Texas Market and I commenced my
searches for data beginning about five years ago.
Texas is anon-disclosure state. It is important that the intended users of this appraisal
understand that in Texas, there is no legal requirement for grantors or grantees to disclose any
information relative to a transfer of real property, other than the recordation of the deed itself. In
Texas, the deed contains no information about the transaction, including the purchase price. As a
result, no data source provides absolute coverage of all transactions. It is possible that there are
sales of which I am unaware. My data sources provide all the data typically available to
appraisers in the ordinary course of business.
This appraisal is not a property condition report, and should not be relied upon to disclose any
conditions present in the property. It does not guarantee that the property is &ee of defects. I am
not a licensed inspector, and I did not make an "inspection" of the property as defined by TREC
Rule 535.227-535.231 for real estate inspectors. I visited the property and developed
impressions of physical chazacteristics based on my observation of apparent, not unapparent
conditions. Nor am I qualified to detect or identify hazardous substances, which may, or may
7
not, be present on, in, or neaz the subject property. The presence of hazardous materials may
negatively affect market value. I have no reason to suspect the presence of hazazdous
substances, and I valued the subject assuming that none are present. No responsibility is
assumed for any such conditions or for any expertise or engineering required to detect or
discover them. I urge the user of this report to obtain the services of specialists for the purpose
of conducting inspections, engineering studies, or environmental audits.
I did not perform a title search or survey of the subject property. Engineering studies, ADA
determinations, surveys, title reports, and environmental audits are beyond the scope of work, as
I am not qualified to detect or identify structural or mechanical deficiencies present in the
improvements, nor hazardous substances that may, or may not, be present on, in, or near the
subject property.
REGIONAL/CITY/NEIGHBORHOOD DATA: The property is located at the comer of
Gulfway Drive (SH 87) and Broadway. This is the main intersection in Sabine Pass and it is
locally known as the "four way stop". Sabine Pass is a small community that was annexed by
Port Arthur many years ago and is subject to their zoning regulations. Sabine Pass is identified
as an industrial azea due to the development along the Sabine-Neches Ship Channel that includes
base stations for industrial off-shore operations, marine service businesses, ship, barge and boat
repair facilities and some fishing/shrimping businesses. The ship channel offers the most direct
access to the Gulf of Mexico and in tum from the Gulf inland to the Intracoastal Canal, the Port
of Port Arthur, the Port of Beaumont via the Neches River and the Port of Orange via the Sabine
River. There is also significant industrial development along these water fronts and these vessels
pass Sabine Pass in route to these destinations. The Sabine Pass location offers more ease of
access than further inland. The upper Gulf Coast was devastated by Hurricane Rita in late 2005
and Hurricane Ike in September 2008. These storms did major structural damage to
improvements in Sabine Pass as well as further inland. Many homes and businesses were totally
destroyed by the humcanes and recovery has been slow. Many home owners are re-building
with elevated structures. The national recession has also had a negative impact on the area
industry. With the fall in natural gas and oil prices over the last several months, many businesses
have closed down or significantly reduced their work force and some projects have been put on-
hold until some recovery occurs. Many small businesses that catered to the industry employees
have closed due to a lack of business.
In conclusion. Sabine Pass has been devastated by recent hurricanes and, although the citizens
are aggressively trying to re-build, the process is expected to be slow, at best. Among the
exhibits is a Neighborhood Map.
8
TAX AND ASSESSMENT DATA: Values, for ad valorem tax purposes, are assessed by the
Jefferson County Appraisal District. A copy of their 2008 print-out is on Pages 27-28. The 2009
Tax Roll has not yet been certified. One account (Tract 128) is also in the name of George Eazl
Welch. The other (Tract 116) is in the name of Billy Williams. They are presented primarily as
the basis for the property description.
Accoun_ t_# Land~Value Improvements Total
300167 (Tract 116) $3,750 0 $3,750
300167-165000-5(128) $2,500 0 $2,500
LAND DESCRIPTION: According to Jefferson County Appraisal District records, the land has
an azea of 22,500 SF with 150' along Broadway and 150' along Gulfway Drive (Hwy 87). The
land is near level and at street grade. Both streets are two-lane, two-way asphalt paved. There
are 4-way stop signs at their intersection. According to the attached FEMA Map, the tract is in
Zone - A. It has all public utilities available and is zoned for commercial uses with an LC
classification. There are the remnants of an older masonry building and the concrete foundation
from a second structure along the Broadway frontage. The preceding aerial photo depicts a
couple structures on the northerly part of the tract. However, those structures were apparently
destroyed by Humcane Ike or possibly by Hurricane Rita in September 2005. Either way, the
only remaining improvements include the masonry shell of a building and the slab of a second
structure. The improvements offer no measurable contributory value and tend to serve as
somewhat of a detriment to the re-development of the land.
FURNITURE, FIXTURES AND EQUIPMENT: None was included in this analysis and
valuation.
SALES HISTORY: USPAP requires the appraiser to report and analyze any sales of the
Subject Property over the last three years. Any current listings and/or pending sales should also
be disclosed and discussed.
There is apparently some dispute as to the ownership history of the property with both the City
of Pt. Arthur, the George Welch Estate and Billy Williams claiming all or part ownership to the
real estate. It does not appeaz to be actively offered for sale and I was not advised of a pending
sale. Therefore, no recent sales history was available for review and analysis.
HIGHEST AND BEST USE is defined in The Appraisal of Real Estate, Eleventh Edition,
AppraisaZlnstitute, P. 297, as:
" .....The reasonably probable and legal use of vacant land or an improved property which is
physically possible, appropriately supported, financially feasible, and that results in the highest
value". Some of the following explanations aze also out of that publication.
The purpose of this appraisal is to estimate the value of the fee simple interest. To accomplish this,
the Highest and Best Use must be estimated.
The procedure used in this report to estimate the Highest and Best Use of the subject tract was to
consider, in sequence, the site's legal uses, its physically possible uses, its feasible uses and, finally
the optimum or maximum profitability. Data collected and analyzed for purposes of studying the
neighborhood and particularly the site was useful in amving at a fmal decision.
The following primary factors were considered in estimating the Highest and Best Use of the
subject property.
Legal Permissibility: Deed restrictions, zoning, building code requirements, and environmental
regulations can limit or dictate uses of a site. The land is believed to be zoned for commercial uses
with a Light Commercial (LC) classification by the City of Part Arthur. This is a broad class that
allows most general commercial and light industrial uses. However, any planned use should be pre-
approved by the City as not all commercial uses are allowed.
Physically Possible: The configuration of the property, its topography and availability of utilities
are major components to this analysis. The site has a comer location at the primary intersection
in Sabine Pass. It has adequate size and shape and ample public utilities are available.
Financial Feasibility: Economically, a property use is expected to produce a positive retum to the
investment. If it does, then it can be assumed to be a feasible or proper use. Factors dictating which
uses aze feasible include the previously outlined possible and legal uses. The location, access,
shape, area development, competing properties and general azea characteristics help determine what
returns could be anticipated from various possible uses. The commercial zoning and the comer
location at the "four way stop" are factors conducive for some type of commercial development.
However, the recent devastation from humcanes has had a severe negative impact on area growth
and neazly every improvement was at least partially damaged by either Rita or Ilse. Although
expected to be somewhat short term in nature, the national recession has also had a negative impact
on industrial businesses in Sabine Pass and all of Pt. Arthur as well as most of the balance of the
country. Businesses that would tend to locate in Sabine Pass would tend to be local commercial in
nature and cater to industry employees and the permanent population that has been significantly
reduced since late 2005.
Maximum Profitability: The most profitable use should conform to neighborhood trends and be
consistent with existing land uses. The use that results in maximum profitability is beyond the
scope of the "land only" valuation. It is critical to the analysis of improved properties and
represents that use which provides the maximum return to the investment.
10
After analyzing the above factors, the Highest and Best Use of the subject property, as of the
effective date of this appraisal, was: Local commercial uses
VALUATION PROCEDURES: The three standard approaches to value aze as follows: 1) Cost
Approach: if improved, the appraiser estimates the cost to reproduce/replace the improvements,
then estimates the accrued depreciation (physical, functional, or external) that may be present
and deducts that from the cost new. The land, as if vacant, is then valued and added to the
depreciated cost of the improvements. 2) Direct Sales Comparison Approach includes the
accumulation, review and direct compazison of other improved properties that have recently sold
or aze offered for sale. Consideration is given to locational and physical differences between the
sales and the subject. 3) The Income Approach is an analysis whereby actual rents/leases are
analyzed or rents are estimated based on available market data. Appropriate deductions are made
for anticipated vacancies and expenses to estimate a net operating income that is then capitalized
into a value indication.
The value estimates indicated by the three approaches are then correlated into a final estimate of
value. In this instance, the only applicable analysis is the Direct Sales Comparison Approach. The
Cost Approach was not applicable due to the poor condition of the improvements and there was not
ample rental data available for similar pazcels of land and the Income Approach could not be
utilized. The Direct Sales Comparison Approach is presented on the following page.
11
DIRECT SALES COMPARISON APPROACH
Mazket data sheets aze on Pages 20 - 25. The mazket indicates properties of this type are most
often traded on the basis of sales price per square foot and that will be the basis for this analysis.
My analysis included searching the Beaumont MLS, the Mid-County A~II,S, the Orange MLS and
the Galveston County MI,S for meaningful data. I also focused on sale dates after Hurricane
lke. However, no sales were in any of these data bases far that time frame. Therefore, I relied
on two sales in Sabine Pass after Hun'icane Rita and four sales in Pt. Arthur that occurred in
2008 but prior to Hurricane Ike as this was the best data that was available. They are not
necessarily presented in their order of importance to this analysis. They are compared to the
subject on the following grid:
COMPARABLE LAND SALES SUMMARY TABLE
No. Location Sale Date Price Size in SF Price/ SF
I. Broadwa ,Sabine Pass 08/10/2006 $24,000 90,000 $0.27
2. 5020 Broadwa Street, Sabine Pass 12/04/2006 $28,000 19,500 $1.44
3. Gulfwa Drive 4900 Black , PA 09/30/2008 $30,000 11,250 52.67
4. Gulfwa Drive 2301 , PA 01/09/2008 $94,000 47.045 $2.00
5. Gulfwa Drive 6370 , PA 06/11/2008 529,000 26.000 $1.12
6. W. Pt. Arthur Rd 6400 Block , PA 05/23/2008 562,000 52,272 $1.19
*** An FFiCTViFNT rRiil***
sSALE#~~ ~Sub'ect ~1>~ ~2 ~~ i_~3r-~ ~ do' s 5~i i 6bi
SALES PRICE 50.27/SF $1.44/SF $2.67/SF $2.00/SF $1.12/SF $L19/SF
FINANCING Cash Cash Cash Cash Cash Cash
Ad'ustment 0
8/2006 0
12/2006 0
9/2008 0
1/2008 0
6/2008 0
5/2008
DATE OF SALE
Ad'ustment 0
27/SF
$0 0
44/SF
$1 0
52.67/SF 0
52.00/SF 0
S 1.12/SF 0
51.19/SF
ADIUSTED SALES PRICE
LOCATION Gulfwa Brdu .
Broadwa -I .
Broadwa -I Gulfwa -S Gulfwa -C Gulfwa -I W PA Rd-C
Ad'ustment +$0.50lSF +$0.50/SF -$0.50/SF 0 +$0.50/SF 0
SIZE 22,500 SF 9Q,000 SF-1 19.500 SF 11,250 SF 47,045 SF-I 26,000 SF 52,272 SF-I
Ad'ustment +$0.50/SF 0 0 +$0.25/SF 0 +$0.25/SF
TOPONTll.ITY LevcVAde uate Com Com Com Com Com Com
Ad'ustmen[ 0 0 0 0 0 0
INDICATED VALUE $1.27lSF $1.94/$F 52.17/SF $2.25/SF $1.62/SF S136/5F
Comments: Sales 1 & 2 are one block east of the subject property fronting Broadway. These are
inferior locations with respect to commercial development potential. Sale 1 was larger in size.
There is an inverse relationship between size and price per square foot. This adjustment is
necessary to help reflect what it would likely have sold for if smaller and more similar in size
with the subject property. Sale 3 fronts Gulfway Drive and has a superior retail location next to
a Walgreens Pharmacy. Sale 4 has a comparable comer location along Gulfway Drive and only
required positive adjustment for its larger size. Sale 5 had an inferior location along Gulfway
Drive in an older section of the city. Sale 6 had a comparable comer location along W. Pt.
Arthur Road in Pt. Acres. It only required some adjustment for size difference. No other
measurable adjustments were indicated.
12
Conclusion: There is a broad range of adjusted values and that is typical of azeas where sales
data is sparse. There has been a recent storm that somewhat de-stabilizes property values as
sellers ofren develop different attitudes about their property and/or sell somewhat under duress.
That is why I felt it important to seek out sales after Humcane Ike but none were available. I
then relied on sales data after Hurricane Rita as it was the best available. Based primarily on the
preceding analysis, I am of the opinion that a unit value of $2.00/SF is considered reasonable.
This calculates to the following indication of value for the subject site:
22,500 SF x $2.00/SF = $45,000 (all of Tracts 116 & 128)
RECONCILIATION: I was of the opinion the data that was available was the best from the
market place. It clearly indicated a somewhat unstable market due to the disparity in prices paid
for somewhat similar properties. However, I do believe the data provided a value range that is
within reason and I felt comfortab]e forming an opinion of value for each.
Based on the data presented herein, as well as other data reviewed and retained in my files, I am
of the opinion that as of May 14, 2009, the value indication was:
FORTY FIVE THOUSAND ($45,000) DOLLARS
13
CERTIFICATION
This is a Summary Appraisal Report that is intended to comply with the reporting requirements
set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice
for a Summary Appraisal Report. As such, it might not include full discussions of the data,
reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion
of value. Supporting documentation concerning the data, reasoning, and analyses is retained in
the appraiser's file. The information contained in this report is specific to the needs of the client
and for the intended use stated in this report. The appraiser is not responsible for unauthorized
use of this report.
I certify that, to the best of my knowledge and belief
1. The statements of fact contained in this report are true and correct.
2. 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.
3. 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.
4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this
assignment.
5. My engagement in [his assignment was not contingent upon developing or reporting predetermined results.
6. 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.
7. The reported analyses, opinions and conclusions were developed, and this report has been prepazed, in
conformity with the requirements of the Code of Ethics & Standards of Professional Practice of the Appraisal
Institute, which include the Uniform Standards of Professional Appraisal Practice.
8. The use of this report is subject [o the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.
9. I have made a personal inspection of [he property that is the subject of this report.
10. No one provided significant real property appraisal assistance to the person signing this certification.
11. As of the date of this report, Jimmy W. Bishop has wmpleted the continuing education program of the
Appraisal Institute.
W . ~.~
6/24/2009
Jimmy W. Bishop MAI, SRA Date
14
GENERAL LINIITING CONDITIONS
This report is subject to the following General Limiting Conditions:
1. The appraiser will not be required to give testimony or appeaz in court because of having
made this appraisal, with reference to the property in question, unless arrangements have
been previously made therefore.
2. Possession of this report, or a copy thereof, does not carry with it the right of publication. It
may not be used for any purpose by any person other than the party to whom it is addressed
without the written consent of the appraiser, and in any event only with proper written
qualification and only in its entirety.
3. The distribution of the total valuation in this report between land and improvements applies
only under the reported highest and best use of the property. The allocations of value for
land and improvements must not be used in conjunction with any other appraisal and aze
invalid if so used.
4. Neither all nor any part of the contents of this report, or copy thereof, shall be conveyed to
the public through advertising, public relations, news, sales, or any other media without the
written consent and approval of the appraiser. Nor shall the appraiser, firm, or professional
organization of which the appraiser is a member be identified without written consent of the
appraiser.
GENERAL UNDERLYING ASSUMPTIONS
The legal description used in this report is assumed to be correct.
2. No survey of the property has been made by the appraiser and no responsibility is assumed
in connection with such matters. Sketches in this report are included only to assist the
reader in visualizing the property.
3. No responsibility is assumed for matters of legal nature affecting title to the property nor is
an opinion of title rendered. The title is assumed to be good and merchantable.
4. Information furnished by others is assumed to be tme, correct, and reliable. A reasonable
effort has been made to verify such information; however, no responsibility for its accuracy
is assumed by the appraiser.
15
5. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so
specified in the report. The property is appraised as though under responsible ownership
and competent management.
6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures which would render it more or less valuable. No responsibility is assumed for
such conditions or for engineering which may be required to discover such factors.
7. It is assumed that there is full compliance with all applicable federal, state, and local
environmental regulations and laws unless noncompliance is stated, defined, and considered
in this appraisal report.
8. It is assumed that all applicable zoning and use regulations and restrictions have been
complied with, unless anon-conformity has been stated, defined, and considered in this
appraisal report.
9. It is assumed that the utilization of the land and improvements is within the boundaries or
property lines of the property described and that there is no encroachment or trespass unless
noted within the report.
16
QUALIFICATIONS OF JIMMY W. BISHOP MAI, SRA
State Certified # TX-1320188-G
General Real Estate Appraiser
PROFESSIONAL AFFILIATIONS AND ACTIVITIES
MEMBER: Appraisal Institute
MEMBER: Beaumont Board of Realtors.
MEMBER: Texas Association of Realtors.
MEMBER: National Association of Real Estate Boards.
EDUCATIONAL BACKGROUND
Educated in the public schools in San Antonio, Texas. Graduated in 1974 from Lamar University
with a Bachelor of Business Administration degree in Marketing. Received Associate of Applied
Science Degree in Real Estate, Lamar University, 1983.
Seminars and courses attended in recent years include:
Understanding Limited Appraisals Seminaz, Houston, Texas, 1996. Ranch Valuation, Austin,
Texas, 1996. Standards of Professional Practice, Part B, Beaumont, Texas, 1996. Real Estate
Continuing Education (MCE), 1997. Standards of Professional Practice, Part C, Beaumont, TX,
1998. Defending and attacking an appraisal in litigation, Beaumont, TX, 1999. FHA and the
Appraisal Process, Houston, TX, August, 1999. Special Purpose Properties, Beaumont, TX,
October, 1999. Outlook for Texas Rural Lands, College Station, TX, March, 2000. Standards of
Professional Practice, Part A, Houston, TX, Mazch, 2001; Outlook for Texas Rural Lands,
College Station, TX, April 2001; Standards of Professional Appraisal Practice of the Appraisal
Institute, Part C, Beaumont, TX, April 2002. USPAP Update, Beaumont, TX 2004. Outlook for
Texas Rural Lands, College Station, Texas, May, 2005. R22982- Future of Appraising and Cool
Tools, Appraisal Institute, Shreveport, LA, November 2005. Fair Housing -Virtual Classroom,
December, 2005. Outlook for Texas Rural Lands, College Station, TX, April, 2006. Real Estate
Broker MCE, College Station, TX, April, 2006. USPAP, Course 400, Houston, TX, September
2006. 17`s Annual Outlook for Texas Land Markets, San Antonio, Texas, April 2007. Mandatory
Continuing Education, Legal, San Antonio, Texas, April 2007. 18`h Annual Outlook for Texas
Land Markets, San Antonio, Texas, April 2008. Mandatory Continuing Education, Ethics, San
Antonio, Texas, Apri12008. National USPAP Update, Houston, Texas, January 2009.
17
Qualifications of Jimmy W. Bishop, Page Two (Continued)
EMPLOYMENT HISTORY
11/84- Present: Self employed as Fee Appraiser
3/82 - 10/84: Staff Appraiser with Cook & Associates
Real Estate Appraisers
3/77 - 2/82: Staff Appraiser with American Real Estate Corporation, Appraisal
Department
Active in the Real Estate Appraisal business since 1975 and afull-time fee appraiser since the
Spring of 1977 having completed appraiser assignments on residential, commercial, and
industrial properties for numerous individuals, estates, attorneys, corporations, and various
governmental agencies.
Approved by the Texas Real Estate Commission to teach various Real Estate Courses. Texas
Real Estate Broker License #220094. Qualified as an expert witness in various County and State
District Courts as well as Federal Court.
18
TEXAS APPRA[SER LICENSING AND CL-RTIFICATION BOARD
R£ 1T KA`O N4\' TNAT
JIMMY VVAYNE BISHOP
/IAI2?'G PROt'fDED SATA'FAC'TOR I' F.ITD/e,\'CF.' OP Tl/L QCALII~/CAT/Dd'S RfQCfR1iD
Ri' TI/F. TF\'ASAPPRAlS1iR L/CE:\'.Sb~'l: AAD CFRTIF%CAY/OVA(T.
TET'AS OCCGPAT/2\'S CODE. (%IAPTF.R f10?.
IS AETlIOR!]£D TO [iSE TRIi T1T/l:'
- STATECERTIHIED
GENERAL REAL ESTATE APPRAISER
Vumber: TX-1320185-G
Climon P. $a~ rre, Chair
?lalmlm J. Ueasun
Uune $, Scurn
Date of Issue: Fcbruan• G. 2009
Datc of F.cpiration: iNarch 31, 2011
Lr N'imro' Thereof
Chafr
~ L(Ilmm~ P
$nyrn
I .
.
A
TfirolA. fi. lni:rc. Pnmmlvivner
JamervR. RvIIiR. \'iye-Choi. ?ian:\.?IC:\nallr. crcremn_
?~"illiam A. F'vulk. Jr. Lvrn D. Rokel
Shirley J. \\'ard
19
PARTIAL LIST OF CLIENTS
Bishop Real Estate Appraisers, Inc.
4749 Odom Road, Suite 101
Beaumont, Texas 77706
Allied Home Mortgage Capital
AgriLand Farm Credit
Bank of America
Beaumont Housing Authority
Bridge City State Bank
Capital One National Bank
Cendant Mobility/STARS
Chase Mortgage
ChevronTexaco
Citizens Bank
City of Beaumont
City of Bridge City
City of Kountze
City of Nederland
City of Silsbee
City of Vidor
CommunityBank of Texas
Compass Bank
CU Members Mortgage
Diocese of Beaumont
DuPont Beaumont Federal Credit Union
Entergy Services, Inc.
Executive Relocation
Express Financial Services, Inc.
First Bank & Trust, Jasper
First National Bank of Newton
Five Point Credit Union
Ford Motor Credit
Frost Bank
GMAC Mortgage
Guaranty Bank
Hamshire-Fannett ISD
Jefferson County Appraisal District
Jefferson County Drainage District #6
Jefferson County Drainage District #7
Kountze ISD
Lamar University
Lower Neches Valley Authority
Lumberton Municipal Utility District
MCT Credit Union
Memorial Hermann Baptist Hospital
MidSouth Bank
Mobiloil Federal Credit Union
Neches Huntsman Federal Credit Union
Nederland Economic Development Corp.
Orange Savings Bank
PNB Financial/McAfee Mortgage
Port Neches Economic Development Corp.
Premcor Refining Group, Inc.
Safeguard Properties, Inc.
Silsbee Economic Development Corp.
Smithcorp Real Estate Services
Superior Mortgage
Texas Department of Transportation
Texas First Bank
Texas Workforce Commission
The Church of Christ of Latter Day Saints
The Mortgage Corner
Valuation Administrators
Wachovia Bank, National Association
Wal-Mart Realty Appraisal
Wells Fargo Bank
20
Land Sale No. 1
Property Idenfiticafion
Record ID 1225
Property Tvpe Vacant Land, Residential
Address Broadway. Sabine Pass, Jefferson County, 77655
Location Broadway and 5th
Legal Description Lots 1-12, Block 5 Range 5 of Sabine Pass
Deed Reference FC # 2006033290
Sale Data
Grantor Samuel Hazold Lester
Grantee Travis J. Berg
Sale Date August 1 Q, 2006
Property Rights Fee
Marketing Time Less than one year
Conditions of Sale Norma] - no cash equivalency necessary
Financing Cash to seller
Sale History No sale in prior 3 years per JCAD
Mineral Interests None included
Verification Grantee; Confnmed by Tim Bishop
Sale Price $24,000
Land Data
Zoning Residential
Topography Near level and cleared
Otilities All available
Dimensions 300' x 300'
Shape Near square
Fencing None
Flood Info Zone - A 12
Land Size Information
Gross Land Size 2.066 Acres or 90,000 SF
2.066 Acres or 90,000 SF , 100.00%
Front Footage 300 ft Broadway & Tremont;300 ft 5th Avenue
Indicators
Sale Price/Gross Acre $11,616
Sale Price/Gross SF 50.27
Sale Price/ Acre 511,616
Sale Price/ SF 50.27
Remarks
This is a mostly cleared vacant tract that was purchased for construction of an RV park.
21
Land Sale No. 2
Property Idenfification
Record ID 1296
Property Type Improved. Vacant Land
Address 5020 Broadway Street, Sabine Pass, Jefferson County, Texas'77655
Location Comer of Broadway and 5th Ave. ROW
Legal Description Lots 5 & 6 + 30'x150' of abandoned 5th Ave ROW
Deed Reference FC # 2006048181
Sale Data
Grantor Harvey Hudspeth
Grantee Joseph C. Bailleaux, Jr.
Safe Date December 04, 2006
Property Rights Fee
Marketing Time 150 days
Conditions of Sale Normal - no cash equivalency necessary
Financing Cash
Sale History No sale in prior 3 years per JCAD
Mineral Interests None included
Veriticafion MLS 49555 & Agent-P. Holmes; 983-3400, Confirmed by Jim Bishop
Sale Price 528.000
Land Data
Zoning Residential
Topograph}' Near level and mostly cleared
Utilities All available
Dimensions 130' x 150'
Shape Near rectangulaz
Flood Info Zone - A
Land Size Information
Gross Land Size
Useable Land Size
Front Footage
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Sale Price/Useable Acre
Sale Price/Useable SF
0.448 Acres or 19,500 SF
0.448 Acres or 19,500 SF , 100.00%
130 ft Broadway
$62,548
$1.44
$62,548
$1.44
Remarks
This is the sale of 2 platted lots that had the remnants of a residence destroyed by Hurricane Rita plus 1/2
the adjoining 5th Avenue right-of--way that was no[ improved. Asking price when sold was $28,000 and
the purchaser indicated they plan to build a home on the land.
22
Land Sale No. 3
Property Identification
Record ID 1670
Property Type Vacant Land, Commercial
Address Gulfway Drive (4900 Block), Port Arthur, Jefferson County, Texas
77640
Location Next to Walgreen's
Tax ID 3175050-0 & 500-2
Legal Description W/2 Lot 9, Lot 10, Ippolito Subdivision
Deed Reference FC # 2008033504
Sale Da[a
Grantor Diocese of Beaumont
Grantee Manuel Cavazos
Safe Date September 30, 2008
Property Rights Fee
Marketing Time 31 days
Conditions of Sale Normal - no cash equivalency necessary
Financing Cash
Sale History No sale in prior 3 years per JCAD
Verification MLS 54437 & AREC; 727-3196, Confirmed by Jim Bishop
Sale Price $30.000
Land Da[a
Zoning Light Commercial
Topography Near level and cleared
Utilities All available
Dimensions 75' x 150'
Shape Near rectangular
Landscaping Native grass
Flood Info Zone - B
Land Size Information
Gross Land Size 0.258 Acres or 11,250 SF
Front Footage 75 fr Gulfway
Indicators
Sale Price/Gross Acre $116,160
Sale Price/Gross SF $2.67
Remarks
Asking price when sold was $35,000. Days on market = 31.
23
Land Sale No. 4
Prooerty Identification
Record ID 1671
Property Type Cotmercial, Industrial
Address Gulfway Drive (230]), Port Arthur, Jefferson County, Texas 77640
Location Gulfway, Bluebonnet & 17th Street
Tax ID 53400-389100-7 & 389200-5
Legal Descripfion Lots 7 & 8, Block 345, City of Pt Arthur
Deed Reference FC # 2008004478
Sale Data
Grantor Mazk Fred Miller et ux
Grantee Houma Dollar Partners, LLC
Sale Date January 09; 2008
Property Rights Fee
Marketing Time 104 days
Conditions of Sale Normal - no cash equivalency necessary
Financing Cash to seller
Sale History No sale in prior 3 years per JCAD
Verification MLS 52365 & Blount; 721-5533, Confirmed by Jim Bishop
Sale Price $94,000
Land Data
Zoning Commercial
Utilities All available
Dimensions +/- 330.3 x 150
Shape Near rectangular
Flood Info Zone - B
Land Size Information
Gross Land Size 1.080 Acres or 47,045 SF
Front Footage 330 fr Gulfway
Indicators
Sale Price/Gross Acre $87,037
Sale Price/Gross SF $2.00
Remarks
Asking price when sold was $99,000. There were a couple old stmctures [hat were demolished afrer the
sale closed to make way for the proposed Dollar Store.
24
Land Sale No. 5
Property Idenfi£ication
Record ID 1674
Property Type Commercial, Commercial
Address Gulfway Drive (6370), Port Arthur, Jefferson County, Texas 77640
Legal Description Lots 32-35, Block 2, Manchester Addition
Deed Reference FC # 2008020900
Sale Data
Grantor Estate of Virginia Bonura
Grantee Wesley Johnson, et al
Sale Date June 11,2008
Property Rights Fee
Conditions of Sale Normal - no cash equivalency necessary
Financing Cash to seller
Sale History No sale in prior 3 years per JCAD
VeriScation Grantee & deed; Confirmed by Jim Bishop
Sale Price 529;000
Land Data
Zoning Industrial
Topography Near level and cleared
Utilities All available
Dimensions 200' x 130'
Shape Near rectangular
Flood Info Zone - B
Land Size Information
Gross Land Size 0.597 Acres or 26,000 SF
Front Footage 200 fr Gulfway
Indicators
Sale Price/Gross Acre $48,586
Sale Price/Gross SF $1.12
Remarks
A railroad right-of--way adjoins the rear property line.
zs
Land Sale No. 6
Pronerty Identi5cation
Record ID 1585
Property Type Vacant Land, Commercial
Address W. Pt. Arthur Road (6400 Block), Port Arthur, Jefferson Counry, Texas
77640
Location Comer of W. Pt. Arthur Rd & 64th Sheet
Tax ID 53350-7100-6, et al
Legal Description Lo[s 5-9 Blcok 7. Pt. Acres Terrace Addition
Deed Reference FC # 2008020235
Sale Data
Grantor Perissos Ministries. Inc.
Grantee Thuy T. Nguyen
Sale Date May 23, 2008
Property Rights Fee
Marketing Time 29 days
Conditions of Sale Normal - no cash equivalency necessary
Financing Cash
Sale History Last sold in 2002 per JCAD records
Verification MLS 53704 & Agent-Remax 1st; Confirmed by Jim Bishop
Sale Price $62.000
Land Data
Zoning Commercial
Topography Near level and cleared
Ufilities All available
Shape Slightly irregular
Flood Info Zone - B
Land Size Information
Gross Land Size 1.200 Acres or 52,272 SF
Indicators
Sale Price/Gross Acre $51,667
Sale Price/Gross SF 31.19
Remarks
Asking price when sold was $68,000. This tract was near level, mowed and ready for development. I
relied on the MLS print-out for the land size of 1.20 acres.
26
~.. -
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27
Jcffelsun County Appraisal District
2008 Certified Values
f Account Number. 300187-000-154000-00000$
Ownef Name: WILLIAMS BILLY C
Property Address: GULFwAV S DR
Owner Address: PO BOX 168
SABINE PASS TX 776550168
Legal Description: 50x150 PARK
SQ TR 116
167 JNO MCGAFFEY .17
ABSTRACT 30D167
Deedlndex:
Property Use Code: C1
Taxing Entities: SABINE PASS i5D
SABINE PA55 PORT
SAB-NEC WATfNAv
JEFFERSON COUNTY
PORT ARTHUR C1TY
FARM AND LATL RD
Homestead:
Over ti5:
Disabled Vet:
Disabled:
Value Information
Total Improvement Value: 50.00
Total Land Value: X3,750.00
Productlvity Value: 40.00
Total Value: 53,750.00
Average Depth: 150.00
Frontage: 50.00
Acreage:
Square Footage:
Structure A Class Siding Stories Conditan Age Area Net Value
Maln Building V 0 $D.00
Garage 1 50.00
Garage 2 50.00
Foundation Adjustment: 50.00
Marke[ Modifier': 0.00 % 50.00
Additional Depreciation: 0-00 % 50.00
Percent Complete: 100.00 %
Page I of i
'Market Modifiers are methods of adjusting vsWe ID~+E~ « negative) based °" oomparabk sales to acwratey reMct curcenl market raWe as d January t
of each year.
28
lzfferson County Apprais:.il District
2008 Certified Values
Account Number: 300167-000-165000-00000-5
Owner Name: WELCH GEORGE EARL
Property Address: 52aa GULFWaY 5 DR
Owner Address: ~~ NE PASS TX 77655038a
Legal Description: PT TR IZ8
267 )NO MCGAFFEY
ABSTRACT 300167
LOT IZ8
Deed Index:
Property Use Code: C1 ~- ~~ ~
Taxing Entities: SABiNE PASS ISD I
SAB?NE PASS PORT Tf ~`~
SAB-NEC ti^!AT/NAV
]EFFERSON COUNTY
PORT ARTHUR CITY
FARM ANb LATL RD
Homestead:
Over 65:
Disabled Vet:
Disabled:
Value Information
Total Improvement Value: SO.oo
Total Land Value: sZ,5o0.00
Productivity Value: s0.0o
Total Value: S2,Sa0.00
Average Depth::30.00
Frontage: 100.00
Acreage:
Square Footage:
Structure A Class Siding Stories Condition Age Area Net Value
Main Building V 0 50.00
50.00
Garage i
Garage 2 50.00
Fpundatio~ Ad)ustment: $0.00
Flarket Modifier': 0.00 °h 50.00
Addawnal Depreciation: 0.00 °k 50.00
Percent Complete: 100.00 °p
'Market Mod~[!rs are methods of ad~usJing value (Posdive a nega:rvel based on comparabkt asks to accura:ery reflect currHnl market v8ix
as of Jahuary ~ of each year
29
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